IDFC Long Term Infrastructure Bond Tranche 2 Application Form 2012

 

C K

INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED

2 E H C N A R T D N

   E    R    E    H      R    A    E    T

OB A R F NI D E TI MI L Y N A P M O C E C N A NI F T N E M P O L E V E D E UR T C U R T S A R F NI

APPLICATION FORM

(FOR RESIDENT INDIVIDUALS / HUFs ONLY) (Infrastructure Development Finance Company Limited (the “Company”), with CIN L65191TN1997PLC037415, incorporated in the Republic of India with limited liability under the Companies Act, 1956, as amended (the “Companies Act”)) ISSUE OPEN S ON : WEDNESDAY, JANUARY 11, 2012 Registered Office: KRM Tower, 8th  Floor, No.1, Harrington Road, Chetpet, Chennai 600 031 Tel: Tel:   (9144) 4564 4000; SATURDAY, Y, FEBRUARY 25, 2012** Fax: Fax:   (91 44) 4564 4022; Corporate Office: Naman Chambers, C-32, G-Block, Bandra-Kurla Complex Bandra (East), Mumbai ISSUE CLOSES ON: SATURDA 400 051; Tel: Tel:   (91 22) 4222 2000; Fax: Fax:   (91 22) 2654 0354; Compliance Officer and Contact Person: Person: Mahendra N. Shah, Application No. 72004048 Company Secretary E-mail: E-mail:   [email protected] ; Website: Website:   www.idfc.com PUBLIC ISSUE BY INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED (“COMPANY”OR “ISSUER”) OF LONG TERM INFRASTRUCTURE BONDS OF FACE VALUE OF  `  5,000  5,000 EACH, IN THE NATURE OF SECURED, REDEEMABLE, NON-CONVERTIBLE DEBENTURES, HAVING BENEFITS UNDER SECTION 80CCF OF THE INCOME TAX ACT, 1961 (THE “BONDS”), NOT EXCEEDING  `   50,000.0 50,000.0 MILLION FOR THE FINANCIAL YEAR 2011 – 2012 (THE “SHELF LIMIT”). THE BONDS WILL BE ISSUED IN ONE OR MORE TRANCHES SUBJECT TO THE SHELF LIMIT FOR THE FINANCIAL YEAR 2011-2012 UNDER THE SHELF PROSPECTUS FILED WITH THE ROC, STOCK EXCHANGES AND SEBI ON SEPTEMBER 29, 20 11 AND THE RESPECTIVE TRANCHE PROSPECTUS. THE SECOND TRANCHE OF BONDS (THE “TRANCHE 2 BONDS”) FOR AN AMOUNT NOT EXCEEDING  `  44,000.0  44,000.0 MILLION SHALL BE ISSUED ON THE TERMS SET OUT IN THE SHELF PROSPECTUS AND THE PROSPECTUS – TRANCHE 2 (THE “ISSUE”). The Issue is being made pursuant to the provisions of Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008, as amended (the “SEBI Debt Regulations”). CREDIT RATING : “(ICRA)AAA” from ICRA and “Fitch AAA(ind)” from Fitch  Broker’s Name & Code

Bank Branch Stamp

Sub-Broker’s/ Agent’s Code

KSBL 23/07701-38

 

Date of Receipt

Bank Branch Serial No.

10109

To, The Board of Directors, INFRASTRUCTUREDEVELOPMENT FINANCECOMPANY LIMITED

DearSirs, Havin Havingread,understoodandagreedtothe gread,understoodandagreedtothe contentsandtermsand contentsandtermsand conditiionsofInfrastruct onsofInfrastructureDevelopmentFinanceCompa ureDevelopmentFinanceCompanyLimited’ nyLimited’sProspectus-Tranch sProspectus-Tranche2 e2 datedJanu datedJanuary3,2012,(“Prosp ary3,2012,(“Prospectusectus-TTranche-2”)alongwiththeShelfProspect ranche-2”)alongwiththeShelfProspectusfilledwithROC,StockExchangesandSEBIon usfilledwithROC,StockExchangesandSEBIon Septe September29,2011,I/Weherebyapplyforallotmenttome/usof mber29,2011,I/Weherebyapplyforallotmenttome/usof theundermentionedTranche2 theundermentionedTranche2 Bondsoutofthe Issue.Theamountpayableonapplicatioonforthe nforthe below mentioned Tranche 2 Bonds is remitted herewith. I/We hereby agree to accept the Tranche 2 Bonds ap plied for or such lesser number as may be allotted to me/us in accordance with the contents of the Prospectus-Tranche 2 subject to applicable statutory and/ or regulatory requirements. I/We irrevocably give my/our authority and consent to IDBI Trusteeship Services Limited, to act as my/our trustees and for doing such acts and signin g such documents as are necessary to carry out their duties in such capacity. I/We confirm that : I am/We are Indian National(s) resident in India and I am/ we are not applying for the said Tranche 2 Bonds Issues as nominee(s) of any person resident outside India and/or Foreign National(s). Notwithstandinganythingcontai thstandinganythingcontainedinthis nedinthis formandthe attachm attachmentshereto,I/weconfir entshereto,I/weconfirm thatI/wehavecarefullyreadandunderstoodthecontents thatI/wehavecarefullyreadandunderstoodthecontents,termsand ,termsand conditioonsof nsof theProspectusTranche2,in usTranche2,in theirentiretyandfurtherconfirmthatin makin makingmy/our gmy/ourinvestmentdecision,(i)I/Wehavereliedonmy/our on,(i)I/Wehavereliedonmy/ourown examin examinationofthe ationofthe Comp Companyandthe anyandthe termsoftheIssue,includingthe merits andrisks involv involved, ed,(ii) my/ourdecisionto makethis applic application ation is solely based on the disclosures contained in the Prospectus Tra nche 2, (iii)my/our app lication for Tranche 2 Bonds under the Issue is subject to the applicable s tatutory and/or regulatory requirements in connection with the subscription to Indian securities by me/us, (iv) I/We am/are not persons resident outside India and/or foreign nationa ls within the meaning thereof under the Income Tax Act, 1961, as amended and rules regulations, notifications andcircularssissuedthereunder issuedthereunder,and ,and (v)I/Wehaveobtainedthenecessarystatutooryand/orregulat ryand/orregulatorypermissi orypermissioons/consents/ ns/consents/aapprovalsinconnectionwithapplyin pprovalsinconnectionwithapplyingfor,subscribingto,orseekingallotmentofTranche2Bondspursuanttothe gfor,subscribingto,orseekingallotmentofTranche2Bondspursuanttothe Issue.;

Please fill in the Form in English using BLOCK letters

Date

d d / m m / 2012

APPLICANTS’ DETAILS AGE

NAME OF SOLE/FIRST APPLICANT Mr./Mrs./Ms.

years

ADDRESS (of Sole / First Applicant) Pin Code (Compulsory)

City

Telephone

E-mail

SECOND APPLICANT Mr./Mrs./Ms. THIRD APPLICANT Mr./Mrs./Ms. PERMANENT ACCOUNT NUMBER (Mandatory)

SOLE/FIRST APPLICANT

SECOND APPLICANT

THIRD APPLICANT

See Instruction no. 22 (h) & 23 (9)

OTHER DETAILS OF SOLE/FIRST APPLICANT CATEGORY (Please ✓) Resident Indian individuals [no minors can apply]

HUF through the Karta

OPTION TO HOLD THE BONDS IN DEMATERIALISED FORM. DEPOSITORY PARTICIPANT DETAILS (Mandatory if opted for Tranche 2 Bonds in dematerialised form) Depository Name (Please

✓)

National Securities Depository Limited

Central Depository Services (India) Limited  

Depository Participant Name I

DP - ID

N (16 digit beneficiary A/c. No. to be mentioned above)

Beneficiary Account Number

OPTION TO HOLD THE BONDS IN PHYSICAL FORM

NOMINATION

(If this option is selected, the KYC Documents as mentioned in Instruction No. 31 are mandatory) In terms of Section 8(1) of the Depositories Act, 1996, I/we wish to hold the Tranche 2 Bonds in physical form. I/We hereby confirm that Name of the Nominee : the information provided in “APPLICANTS’ DETAILS” is true and correct. I/We enclose herewith as the KYC Documents, self attested copies In case of Minor, Guardian : of PAN Card , Proof of Residence Address and a cancelled cheque of cheque of the bank account to which the amount pertaining to payment of  refunds, interest and redemptions as applicable should be credited. Bank Details for payment of Refund / Interest / Maturity Amount

  So Sole/First Applicant

Second Applicant

Third Applicant

Bank Name :

Branch :

 Account No.:

IFSC Cod e :

INVESTMENT DETAILS Tranche 2 Bonds Series Frequency of Interest payment Face Value & Issue Price (  `   per Tranche 2 Bond) (A)

1

2

 Annual

Cumula tive

 `   5,000/-

Minimum Application

 

COMMON TERMS OF THE ISSUE: Issuer Rati n ng g Security

: Infrastrructure ucture Dev Development elopment Financ Financee Company Limited : “(I CR CR A) A) AA AAA ”fr om om ICR A an an d“ Fi Fi tc tc h A AA AA( ind ))”” fr om om Fi Fi tc tc h : F ir sstt pari passu   floating charge over the Secured Assets and first fixed pari passu charge over specified immovable properties of the Company more particularly as detailed in the section entitled “Terms of Issue Security” on page 121 of Prospectus – Tranche 2. Security Cover : 1.0 time the outstaanding nding T Tranche ranche 2 - Bonds at an anyy point of time. Listing : NS NSE E and and BSE Debenture Trustee : IDBI Trusteesh rusteeship ip Services Limited Depositories : National Secur Securities ities Depositoory ry Limited and Centra Centrall Depository Serv Services ices (India) Limited Mode of Payment : 1. Electronic 1. Electronic Clearing Services;2. Services; 2. At  At par cheques; 3. Demand 3. Demand drafts Issuance : Demateria Dematerialized lized form or Phy Physical sical form* as sp specified ecified by the Applic Applicant ant in Application Form herein. Trading : Demateriaalized lized form only follow following ing expiry of the Lock Lock-in -in Period Deemed Date of Allotment : The Deemed Date of Allotm Allotment ent shall be the date as may be determined determined by the Board of the Company and notified to the Stock Exchanges. The actual allotment may occur on a date other than the Deemed Date of Allotment. Redemption/MaturityDate : 10 years from the Dee Deemed med Date of Allo Allotment tment Lock In Period : 5 years from the D Deemed eemed Date of Allotme Allotment nt BuybackDate : The date falling fiv fivee years and one day from the Dee Deemed med Date of Allotment. SUBMISSION OF APPLICATION FORM: All Application Forms duly completed and accompanied by account payee cheque/demand draft for the amount payable on application (and the KYC Documents in case of Applicants who wish to subscribe to the Tranche 2 Bonds in physical form) must be delivered before the closing of the subscription list to any of the Bankers to the Issue during the Issue Period. No separate receipts shall be issued for the money payable on the submission of Application Form. However, the collection centre of the Bankers to the Issue will acknowledge the receipt of the Application Forms by stamping and returning to the Applicants the acknowledgement slip. This acknowledgement slip will serve as the duplicate of the Application Form for the records of the Applicant. Every applicant should hold valid Permanent Account Number (PAN) and mention the same in the Application Form. BASIS OF ALLOTMENT : The Company shall finalise the Basis of Allotment in consultation with the Designated Stock Exchange. The executive director (or any other senior official nominated) of the Designated Stock Exchange along with the Lead Managers, Co- Lead Managers and the Registrar shall be responsible for ensuring that the Basis of Allotment is finalised in a fair and proper manner. (For further details, about the basis of allotment, please see the section entitled “Procedure for Application-Basis of Allotment” on page 134 of the Prospectus Tranche 2).

`   5,000/-

Two (2) Tranche 2 Bonds and in multiples of one (1) Tranche 2 Bond thereafter. For the purpose fulfilling the requirement of minimum subscription of two (2) Tranche 2 Bonds, an Applicant may choose to apply for two (2) Tranche 2   Bonds of the same series or two (2) Tranche 2 Bonds across different series.

Buyback Facility

 

Whether, Buyback Facility opted (Please

Yes

✓)

Buyback Date

Date falling five years and one day from the Deemed Date of Allotment

Buyback Amount per Tranche 2 Bond Buyback Intimation Period

`   5,000/-

 

Maturity Date Interest

10 years from the

Rate

`   7,590/-

Deemed Date of of Allotment

8.70% p.a.

Maturity Amount per Tranche 2  2   Bond  Yield on

 

The period beginning not before nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date

 

`   5,000/-

N.A.  

`  

11,515/-

Maturity

8.70%

8.70% compounded annually

 Yield on Buyback

8.70%

8.70% compounded annually

Series 1

Series 2

No of Tranche 2 Bonds applied for (B) Amount Payable ( ` ) (A x B) Total Number of Tranche 2 Bonds (1 + 2) Grand Total (1+2)

*In terms of Regulation 4(2)(d) of the SEBI Debt Regulations, the Company will make public issue of the Tranche 2 Bonds in the dematerialised  form. However, in terms of Section 8 (1) of the Depositories Act, the Company, at the request of the Applicants who wish to hold the Tranche  2 Bonds in physical form, will fulfill such request 

( ` )

PAYMENT DETAILS (See General Instruction no. 27) Total Amount Payable ( `   in words)

( ` ` `    in figures)  ` 

 

Cheque / Demand Draft No. ____________________________ Dated ____________________/ 2012 Drawn on Bank _____________ _________________________________________ _________________  Branch ___________________________________________________ ______________________________________________________________________________ ________________________________  _____ 

 Please

Note :  Cheque / DD should be drawn in favour of “IDFC of  “IDFC Infra Bonds - Tranche 2” by all applicants. It should be crossed “A/c Payee only”.   Please write the sole/first Applicant’s name, phone no. and Application no. on the reverse of Cheque/DD.  Demographic details will be taken from the records of the Depositories for purpose of refunds, if any In case of Applications for Tranche 2 Bonds in physical form the demographic details will be as per the KYC documents submitted along with the Application Form

SOLE/FIRST APPLICANT

SECOND APPLICANT

THIRD APPLICANT

SIGNATURE(S)

** The Issue shall remain open for subscription during banking hours for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board subject to necessary approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through newspaper advertisements on or before such earlier or extended date of Issue closure. TEAR HERE

INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED

ACKNOWLEDGEMENT ACKNOWLEDGEMEN T SLIP

   T   T    N   N    E   A    M    C    E   I    G   L    D   P    E   P    L   A    R    W    O    O   F    N    K   P    C   I    L    A      S

d d / m m / 2012 Date Registered Office: KRM Tower, 8th  Floor, No.1, Harrington Road, Chetpet, Chennai 600 031 Tel: Tel: (9144)  (9144) 4564 4000; Fax: Fax:   (91 44) 4564 4022; Corporate Office: Naman Chambers, C-32, G-Block, Bandra-Kurla Complex Bandra (East), Mumbai 400 051; Tel: Tel:   (91 22) 4222 2000; Application No. 72004048 Fax: Fax: (91  (91 22) 2654 0354; Compliance Officer and Contact Person: Person : Mahendra N. Shah, Company Secretary E-mail: E-mail:   [email protected] ; Website: Website:   www.idfc.com

Note : Tranche 2 - Bonds eligible for benefit under section 80CCF of the Income Tax Act, 1961 Received From Series

Face Value (A)

1

 

`   5,000/-

2

 

`   5,000/-

No. of Tranche 2  Bonds applied for (B)

Grand Total (1+2) Acknowledgement is subject to realization of Cheque / Demand Draft.

Amount Payabl e ( ` ) (A x B)

Cheque/Demand Draft No.

Dated

2012

Bank's Stamp & Date

Drawn on (Name of the Bank and Branch)

All future communication in connection with this application should be addressed to the Registrar to the Issue KARVY COMPUTERSHARE PRIVATE LIMITED :Unit: LIMITED :Unit: IDFC-Infrabond (Tranche 2), Plot no. 17-24, Vithalrao Nagar Madhapur, Hyderabad 500 081, Tel: Tel: (91  (91 40) 4465 5000, Fax: Fax: (91  (91 40) 2343 1551 , Email: [email protected], Email:  [email protected], Investor Grievance  Grievance Email: [email protected] mail: [email protected] , Website: Website: www.karvy.com,  www.karvy.com, Contact Person: Person: Mr. M. Murali Krishna SEBI Registration No.: INR000000221 No.: INR000000221 Quoting full name of Sole/First Applicant, Application No., Type of options applied for, Number of Tranche Tranche 2 Bonds applied for, Date, Bank and Branch where the application was submitted and Cheque/Demand Draft Number and name of the Issuing bank.

C K

 

IN THE NATURE OF FORM 2A - MEMORANDUM MEMORANDUM CONTAININ G S ALIEN T F EATURES OF THE PROSPE PROSPECTUS CTUS - TRANCH TRANCHE E2 THE NATURE GENERAL INSTRUCTIONS 7.2 Underwriting: Theissueof Tranche2Bondsisnot beingunderwriten.  Applican  Appl icants tsar aree ad advi vised sed tore read adth thee Prospe ospect ctus us-T -Tra ranc nche he2 an andd th thee Gen ener eral alIn Inst struct ructions ionsco cont ntai ained ned inth this is onor beforesuchearlier or extendeddateof Issueclosure. 7.2 Theproceedsof edsof theIssueshallbeuti be utilizedtowards' edtowards'infrastructurel frastructurelending' asdefinedbytheRBI inthe application ati on formcareful form carefull y and tosatisfy themselves of the disclosures before making anapplication ati on for  8. Utilization of the proceeds: Theproce regullationsissuedby suedby itfromtimeto timee..Theend-useshallbedul be dulyreportedi reportedin theannualreporttsandother sand otherreportssubmi reportssubmittedby tedbythe the subscription. Unless otherwise specified, all the terms used in this application formhave the same meaning regu

and/orsecuredbytheBondholderstoitssatisfaction), givenoticetotheCompanyspecifyingthat theTranche2Bondsand/oranyparticular  SeriesofTranche2Bonds,inwholebutnotinpartareandhavebecomedueandrepayableattheEarlyRedemptionAmountonsuchdate asmaybespecifiedinsuchnoticeinteraliaif anyoftheeven theeventsltslistedin15.2(eachan"Eventof Defa Defaulult")belowoccurs.15.2 Thelistgiven

as in the Prospectus -Tranche 2. For a copy of the Prospectus -Tranche 2, the applicant may request Company and/or the Lead Managers. Further, investors are advised to retain the copy of the Prospectus Tranche 2/Abridged Prospectus -Tranche 2 for their future reference. Please fil in the Formin English using BLOCK letters. Investors should carefully choose the Option(s) they wish to apply for. Please refer to “Terms of the Issue” on page 111 in the Prospectus -Tranche 2 for details. The8.70percent,non-cumulativeTranche2Bondswithabuybackfacility(the“Series Series 1Tranche2 Bonds”)andthe8.70percent,cumulative Tranchhe2 e2 Bond Bondswi swithaabuybac buybackfkfacility(the“ e “Series 2Tranche2 Bonds”)(theSeries1Tranche2BondsandtheSeries2Tranche2 s2Tranche2 Bond Bondsare sare togetherreferredtoasthe“Tranche2Bonds ”)foranaggregateamountnotexceeding  `  4 ,000.0milionforthefinancialyear2011-2012 year2011-2012..The `  44, Tranchhe2 e2 Bond Bondsarei sarein eachcaseconstitutedbyadebenturetrustdeed(the“DebentureTrustDeed”)tobeenteredintobetweentheCompany andIDBITrust rusteeshipSe ServirvicesLimited(initscapacityasthe“DebentureTrust reTrustee”,whichexpre hexpressi ssionshallincludeitssuccessor(s))astrusteeforthe holdersoftheTranche2Bonds(the“Bondholders Bondholders”).KarvyComputersharePrivateLimitedhasbeenappointedastheregistrartotheissue(the “Registrar ””or“ or“Registrar Registrar to theIssue”)pursuanttotheregistrartotheissueagreement/leterwithKarvyComputersharePrivateLimited(as ame amendedand/ ndedand/orsupplement mentedand/orrestatedfromtimetotime,the“RegistrarAgreement”).TheTranche2Bondsareclassifiedas“longterm infrastructurebonds”andarebei urebonds”andarebeingissuedintermsofSection80CCFoftheIncomeTaxActandtheNotificatation.Inaccordancewi ewithSection80CCF oftheIncomeTaxAct,theamou eamountnt,notexceeding  `  00,,paidordepositedassubscriptiontolong-terminfrastrruct ucturebondsduringtheprevious `  20,000 yearrelevanttotheassessmentyearbeginningApril01,2012shallbedeductedincomputingthetaxab xablleincomeofaresidentindividualorHUF.In

Companytotheregulatoryauthorityconcerned,andspecificallycertifiedbythestatutoryauditoroftheCompany.TheCompanyshallalsofile suchreportsalongwiththetermsheetstotheInfrastructureDivision, Department of EconomicAffairs, Ministryof Financewithin3(three) monthsfromtheendof financial year. 9. Interest :9.1 Annual Payment of Interest: Subject tobuybackof theTranche2Bondsasspecifiedinthesection10.3below, forSeries 1Tranche2Bonds,interestattherateof8.70percent.perannumwil bepaidannuallycommencingfromtheDeemedDateofAllotment. Forfurtherdetails regardingCumulativePaymentofInterest,DayCount Day CountConventionandInterestonApplicationandRefundMoney,please refer sectiontitled“Termsof theIssue–Interest” onpage116of theProspectusTranche2. 10. Redemption: 10.1 Unlesspreviously redeem redeemedasprovi edasprovidedundert edunder theDebentureTrustDeed,theCompanyshal eCompanyshall redeemtheTranche 2BondsontheMaturityDate.10.2 10.2 ProcedureforRedemptionbyBondholders :For further detailsonProcedurefor Redemptionby Bondholders, pleaserefer sectiontitled“Termsof theIssue–Redemption” onpage116of theProspectusTranche2. 10.3 Buyback of  Tranche 2 Bonds :10.3.1 10.3.1 AnApplicant subscribingtotheSeries1Tranche2Bondsand/or theSeries2Tranche2Bonds, shall at thetime ofsubm submiittingtheAppl gtheApplicationFormi mindicatehisor herprefereencefor nceforutilizingthebuybackfaci gthebuybackfacilityofferedbytheCompanyfor yofferedbytheCompanyfortheSeries1 Tran Tranche2Bondsand/or che2Bondsand/ortheSeries2Tran s2 Tranche2 che2Bon Bondsby dsbyopti optingforit intheApplicationFormandcompleetitingallform formalalitiesasmaybe prescribedtherein.10.3.2 TheCompanyshalldispatchtheBuybackIntimationRequestatleast15dayspriortr tothecommencement ecommencementofthe BuybackIntimationPeriod, requestingbuybackconfirmationfromtheBondholdersasspecifiedbelow. ABondholder mayrespondtothe BuybackIntimationRequest at anytimeduringthecurrencyof theBuybackIntimationPeriodbyinformingtheCompanyinwritingof the

belowisanindicativelist of eventsof default andacompletelist of event of default anditsconsequencesshall bespecifiedintheDebenture TrustDeed.Eventsofdefaultshallincludebutnotbelimitedtothefolowing: (i) Defaultismadeinanypayme any paymentntofthepri e principalamountdue inrespect of Series1Tranche2Bondsand/orSeries2Tranche2Bondsandsuchfailurecontinuesforaperiodof 3WorkingDays;(ii) Default ismadeinanypaymentofanyinstalmentofinterestinrespectofSeries1Tranche2Bondsorinthepaymentofcumulativeinterestonthe Series2Tranche2Bondsor anyof themandsuchfailurecontinuesfor afor aperiodof 30days; (iii) Defaultismadeinanypaymentofany other sumdueinrespect of Series1Tranche2Bondsand/or Series2Tranche2Bondsor anyof themandsuchfailurecontinuesfor afor  aperiodof 15(fifteen)days;(iv) TheCompanydoesnot performor complywithoneor moreof itsother material obligationsinrelationtothe Tranche2Bondsor theDebentureTrust Deedwhichdefault isincapableof remedyor, if intheopinionof theDebentureTrusteecapableof  remedy, isnot remediedwithin30daysafter writennoticeof suchdefault shall havebeengiventotheCompanybytheDebentureTrustee andwhichhasamaterial adverseeffect ontheCompany; (v) TheCompanyis(or isdeemedbylawor acourt tobe) insolvent or bankrupt or unabletopay(intheopinionof theDebentureTrustee) amaterial part of itsdebts, or stops, suspendsor threatenstostopor suspend paymentofallor(intheopinionoftheDebentureTrustee)amaterialpartof(orofaparticulartypeof)itsdebts;or (vi) Anyencumb Anyencumbrancert rancertakes possessionoranadministrativeorotherreceiveroranadministratorisappointedof thewholeor(intheopinionof theDebentureTrustee)any substantialpartofthepropert eproperty,assetsorrevenuesoftheCompany(asthecasemaybe)andisnot ecasemaybe)andi snotdischargedwithin45days.15.3 Forfurther  detailsonthesame, pleaserefer sectiontitled“Termsof theIssue–Eventsof Default ” onpage122of theProspectusTranche2. 16. Bondholder’s Rights, Nomination Etc. :16.1 Bondholder Not a Shareholder: TheBondholderswil not beentitledtoanyof the

 `  tavai heevent anyApplicicant heTranche2Bondsi   20,in0vest 00inmthent eyearof xbeneffitshallbe lablethtoatsuchAppl antappl onlieysftoothrteext ent of  20,000innexcessof theyearof . investment,theaforestatedtaxbene

folowifineg:din(a)sectABond ABondhol eerr ofSeries1Tran s1nfoTranche2 Bondsand/or dsand/or buybacki naama manner nner as speci ion10.hol 3.1dabovemayi rmthche2Bon eCompanyof theirSeri inteents2Tranche2Bondswhohasoptedfor ionnot toutilizethebuybackfacilityofferedbyt heCompany; or(b) ABondholder of Series1Tranche2Bondsand/or Series2Tranche2Bondswhohasnot optedfor buybackinamanner asspecifiedin section10.3.1abovemayinformtheCompanyof formtheCompanyof theirinten tentitionto ntouti utilizethebuybackfacilityofferedbytheCom yofferedbythe Company pany;; 10.3.3 Forthe avoidanceof doubt, theBondholdersmaynotethat noactionwil berequiredontheir part for thefolowing: (a) IncaseofBondholderswho haveoptedintheApplicationFormfor thebuybackfacilityandintendtocontinuewiththesame; and(b) Incaseof Bondholderswhohave notopted,intheApplicationForm,forthebuybackandintendtocontinuewiththesame.10.3.4 ThebuybackoftheSeries1Tranche2Bonds s1 Tranche2Bonds and/or theSeries2Tranche2Bondsfromtheir respectiveBondholdersshall beeffectedbytheCompanybypayment of theBuyback Amo Amount untontheBuybackDate,subjecttothet e termssetforthherein:(a) Tranche Tranche2Bondsheldindematerializedform: Noactionwil berequired onpartof theBondholder.er.Uponreceivinginstructionsfr omtheCompany, eCompany,theRegistrarwouldundertakeappropriatecorporateactiontoeffect thebuyback. (b) Tranche Tranche 2 Bonds held in physical form: Noactionwouldordinarilyberequiredonpart of theBondholder ontheBuyback DateandtheBuybackAmount eBuybackAmountwouldbepaid tothoseBondholderswhosenamesappearfirstin theRegisterofBondholders.Howeve However,r,the CompanymayrequiretheBondholder todulysurrender theConsolidatedTranche2BondCertificatetotheCompany/Registrar for the buyback30WorkingDayspriortotheBuybackDate. 10.3.5 Nonoticeorleteroranyotherwriteninstrument sent totheCompanypursuant tosection10.3.2aboveshall beacceptedbytheCompanyif it hasbeenreceivedafter thelapseof theBuybackIntimationPeriod. 10.3.6 UponpaymentntoftheBuybackAmount Uponpayme eBuybackAmountson onttheBuybackDate,theprincipalamountsoftheTranche2 eTranche2Bondsshal Bondsshallbedeemedtohavebeen repaidtotheBondholdersof theSeries1Tranche2Bondsand/or Series2Tranche2Bondsandall other rightsof theBondholdersshall terminateandnointerestshallaccrueonsuchTranche2Bonds.10.3.7 Subjecttotheprovi e provisionsoftheCom e Compani paniesAct,wheretheCompan eCompanyy hasbought backanyTranche2Bond(s), theCompanyshall haveandshall bedeemedalwaystohavehadtheright tokeepsuchTranche 2Bondsalivewithoutextinguishmentforthepurposeofresaleandinexercisingsuchright,theCompanyshallhaveandbedeemedalways tohavehadthepower toresell suchTranche2Bonds. 11. Payments: 11.1 Payment of Interest: PaymentofinterestontheTranche2Bondswil bemadetothoseBondholders,whosename appearsfirstintheRegisterofBondholdersmaintainedbytheDepositoriesand/ortheCompanyand/ortheRegistrar,asthecasemaybeas, ontheRecordDate.11.2 Record Date: TherecorddateforthepaymentofinterestortheBuybackAmountortheMaturityAmountshallbe 15dayspriortothedateonwhichsuchamount hsuchamountisdueandpayable("RecordDate").11.3 Effect of holidays on payments: If thedate ofpaymentofinterestorprincipaloranydatespecifieddoesnotfal onaWorkingDay,thenthesucceedingWorkingDaywil beconsidered astheeffectivedateforsuchpayment suchpaymentof interest terestor principal,asthecasemaybe(the as thecasemaybe(the"Effective Date"). Interest andprincipal or other  amounts,ifany,wil bepaidontheEffectiveDate.Foravoidanceofdoubt,incaseofinterestpaymentonEffectiveDate,interestforperiod betweenactualinterestpaymentdateandtheEffectiveDatewil bepaidinnormalcourseinnextinterestpaymentdatecycle.Paymentof  interestwil besubjecttothedeductionoftaxasperIncomeTaxActoranystatutorymodificationorre-enactmentthereofforthetimebeing inforce. IncasetheMaturityDatefalsonaholiday, thepayment wil bemadeonthenext WorkingDay, without anyinterest for theperiod overdue.11.4 11.4 Payment on Redemption or Buyback: Themannerofpayment paymentonMaturityor Buybackissetout below:-11.4.1 Tranche  2Bonds Bondshe held ldineleectr ctronic onicform form:: OntheMaturityDateor theBuybackDateasthecasemaybe, theMaturityAmount or theBuyback Amount asthecasemaybewil bepaidinamanner asdetailedinthesectionentitled"- Modesof Payment"below.Thesepaymentswil be aspertheDepositories' recordsontheRecordDatefixedforthispurpose. Noactionisrequiredonthepart of Bondholders.11.4.2Tranche  2Bonds Bondshe held ldinphysi physical calform form:: Paymentswithrespect tomaturityorbuybackof Tranche2Bondswil bemadebywayof chequesorpay ordersorelectronically.However,iftheComp e Companysorequi anysorequires,paymentsonmaturitymaybemadeonsurrenderof theConsolidatedTranch dTranchee 2BondCertificate(s).Dispatchofchequesor chequesorpayordersi payordersin respectofpaymentswithrespecttoredemptionswil bemadeontheMaturityDate orBuyb BuybackDate(i ackDate(ifsorequestedbytheComp sorequestedbytheCompanyi anyinthisregard)withinaperi a periodof30daysfromthedateofreceiptofthedulydischarged charged ConsolidatedTranche2BondCertificate. 11.5 TheCompany'sliabilitytotheBondholdersincludingfor payment or otherwiseshall stand extinguishedfromtheMaturityDateortheBuybackDateorupondispatchof theMaturityAmount AmountsortheBuybac e BuybackAmount kAmounts,asthecasemay be,totheBondholders.Further,theCompanywilnotbeliableto payanyinterest,incomeorcompensationofanykindfromtheMaturityDate. 12. Manner and Mode of Payment :12.1 Manner of Payment: All paymentstobemadebytheCompanytotheBondholdersshall be madeinanyof thefolowingmanners:12.1.1ForTranche2Bondsappliedorheldinelectronicform: Thebankdetailswil beobtained fromtheDepositoriesfor payments. Investorswhohaveappliedor whoareholdingtheTranche2Bondinelectronicform, areadvisedto immediatelyupdatetheir bankaccount detailsasappearingontherecordsof DepositoryParticipant. Pleasenotethat failuretodosocould result indelaysincredit of thepaymentstoinvestorsat their soleriskandneither theLeadManagersnor theCo-LeadManagersnor the Companyshall haveanyresponsibilityandundertakeanyliabilityforsuchdelaysonpart of theinvestors. 12.1.2ForTranche2Bondsheld  inphysicalform:Thebankdetailswil beobtainedfromtheRegistrar for effectingpayments. 12.2 Mode of Payment: Allpaymentstobe madebytheCompanytotheBondholdersshall bemadethroughanyof thefolowingmodes: 12.2.1 Cheques or Demand drafts : By chequesordemanddraftsmadeinthenameof theBondholderswhosenamesappearintheRegisterof Bondholdersasmaintainedbythe Companyand/or asprovidedbytheDepositories. Chequesor demanddrafts, asthecasemaybe, shall besent byregisteredpost at the Bondholder'ssolerisk. 12.2.2 NationalElectronic Clearing System("NE System("NECS" CS"):): ThroughNECSforApplicantshavinganaccountatany ofthecentersnotifiedbytheRBI.Thismodeofpaymentwil besubjecttoavailabilityofcompletebankaccountdetailsincludingtheMagnetic InkCharacterRecognition("MICR")codeasappearingonachequeleaf, fromtheDepositories. Pleasenotethat theCompanyshall not be responsiblefor anydelaytotheBondholder receivingcredit of interest or refundor BuybackAmount or MaturityAmount solongasthe Companyhasinitiatedtheprocessintime.12.3 12.3 Printing of Bank Particulars: Asamatter of precautionagainst possiblefraudulent encashment of ConsolidatedTranche2BondCertificatesduetolossor misplacement, theparticularsof theApplicant'sbankaccount are mandatorilyrequiredtobeprovidedforprintingontheConsolidatedTranche2BondCertificate. Applicationswithout thesedetailsareliable

16.2, except Rightsasprovi of Bondholders: ge savai tothe equidyyandprefe tersareasf and preferenceshare holdeersof rsof theCom theCompany panyl.not Someof the, sirigghtsandpri nificant rivgilhtegesavai savai labllaebltoethtotheequi eBondhol orencesharehol lows:(a) TheTranche2Bondsshal  TheTranche2Bondsshal dedintheCompani esAct conferupontheholdersthereof anyrightsorprivilegesavailabletomembersof theCompanyincludingtheright toreceivenoticesorannual reportsof,ortoattendand/orvote,attheCompany'sgeneralmeeting(s).However,ifanyresolutionaffectingtherightsoftheBondholders istobe beplplacedbeforetheshareholders,thesaidresolutionwil firstbeplacedbeforetheconcernedregisteredBo redBondhol ndholdersf ersforrttheirconsideration.n. Intermsof Section219(2) of theCompaniesAct, holdersof Tranche2Bondsshall beentitledtoacopyof thebalancesheet onaspecific requestmad m Cm T T B m m w w m T B w S R m B Cm w m m T B m Cm T B w m R B T B w m m B mm B w m T B m m B T B m w w m T B w S R m B w SEB D R T Cm m T B B w T B m T B w D T D Cm w D T R m B m T B F S Nm F B Tm R B P T D F m Tm D T P T M F T B P T B R R T B S m N D C T B C F B w Tm M P T ROC DUR OR C ON T A P A m m A Am w A F mT S P P T A Fm w m m C O m M C M m B A F mw m NSE BSEw T B m m NSE BSE mA m A B WHOC N T w w m m m H U F m HUF m K T A A m m HUF A F m w Nm S F A XYZH U Fm PQR w PQR m K A HUF w w m NR OC

twioberej ctedatrectthlesol edihseDeposi cretionof n oftothrieeCompany. eCompan Howeve r,inrelationnttodAppl icatcioalnsfform, ordemat erialisedTranche2Bonds, thesepart ulars l betaekendi yfromt s.Incaseofy.However, Tranche2Bondshel inphysi theBondhol dersareadvisedtosubmi ttheiircbank accountdetailswiththeRegistrarbeforetheRecordDatefailingwhichtheamou e amountntswilbe bedidispatchedtothepostaladdressoftheBondholders asheldintherecordsof theBank. Bankaccount particularswil beprintedontheConsolidatedTranche2BondCertificateswhichcanthen bedepositedonlyintheaccount specified. 13. Taxation : Accordingtosection80CCF, anamount not exceedingRupeestwentythousandinvestedinlongterminfrastructurebonds shall beallowedtobedeductedfromthetotal incomeof anIndividual or HinduUndividedFamily.Thisdeductionshall beavailableover and abovetheaggregatelimit of `   `  1,00,000asprovidedundersections80C,80CCCand80CCDreadwithsection80CCE.Forfurtherdetails pleaserefer tothepageno. 60 of theProspectusTranche2. 14. Security :14.1 Theprincipalamount amountoftheTranche2Bondstobeissuedupontheettermscontainedhereintogetherwithallinterest,costs, charges,fees,remunerationofDebentureTrusteeandexpensespayabl eandexpensespayablein respectthereof(the"Secured Obligations")shall besecured infavour of theDebentureTrusteeinthefolowingmanner:14.1.1 14.1.1Bywayof afirst floatingpari passuchargeover thecertainreceivablesof  theCompanyarisingoutofits:a) investments;and/or b) infrastructureloans;and/or c)c) currentassets,loansandadvances,asappearingin theCompany'sbalancesheet fromtimetotimetotheextent of 1.0timesof theoutstandingSecuredObligations(the"SecuredAssets"), providedhoweverthattheSecuredAssetsshallnotincludethefolowing(a) anyreceivablesoftheCompanyarisingfrom:(i) anyloanordebt gran grantedbytheComp tedbytheCompanytoi anytoitssubsidiariesandaffiliatespresent tespresentorinthefuture;or(ii) anyinvestmentsinequityand/ or preferenceshare capital orinvestment throughanyotherinstrument madebytheCompanyin, itssubsidiariesandaffiliateswhetherpresentlyor inthefuture); an andd(b) PermitedLiens."PermittedLiens" for thepurposeof theabovemeanssecurityongovernment securitiesor corporatebondsof  theCompanyt eCompanytosecureshorttermdebtoflesst ss than365daydurationincurredby curredbyttheCompanyundert eCompanyundertheCollaterizedBorrowingandLending Operationsof ClearingCorporationof IndiaLimitedorunderanyrepoorrepurchasefacility.14.1.2 TheSecuredObligationsarealsosecured byfirst fixedpari passuchargeover immovablepropertyof theCompanybeingflat number 311/312at 2A, RahejaClassique, NewLink Road,Andheri(West),Mumbai-400053. - 400053.14.2 TheCompanyagreestomaintainanasset cover of at least 1.0timesof theoutstanding amountofTranche2Bonds,atalltimes,til theTranche2Bondsarecompletelyredeemed.Incaseofreductionofsecuritycoverbelow1.0 timesfor anyreasonwhatsoever, theCompanyagreestomake-upthedeficiencywithequivalent amount of receivables, freefromany chargeof whatsoever nature, soastomaintaintheminimumasset cover of 1.0times. 14.3 Forfurtherdetai detailsonsecuritycreatedbythe Company, pleaserefer sectiontitled“Termsof theIssue–Security” onpage121of theProspectusTranche2. 14.4TheCompanyshall ensu ensurethat rethatthecreationofsecu securirityas yasconte contempl mplatedin thissectionandall nece necessaryform ssaryformalalitiesincludidingexecutionof releva vantntsecurity documentsinrelationtheretoarecompletedwithinaperiodof 90daysfromtheDeemedDateof Allotment of theTranche2Bonds. 14.5 No prior consent for creationof SecurityisrequiredfromIDBI TrusteeshipServicesLimitedinitscapacityasdebenturetrusteefor theexisting debenturesof theCompanyandIDBI TrusteeshipServicesLimitedinitscapacityassecuritytrusteefor theexistingloansof theCompany. 15. Events of Defaults :15.1 TheDebentureTrusteeat itsdiscretionmay, or if sorequestedinwritingbytheholdersof not lessthan75per  cent.inprincipalamountoftheTranche2BondsthenoutstandingorifsodirectedbyaSpecialResolutionshall(subjecttobeingindemnified

C ON ORM O R C D m N H R CORD W H wH D ON OR H m G N R N RUC ON D C m A m T B P Fm R m A Fm m PAN m A m m E D P m A m T B m mT m D P m A w w T B m mA A w D P A Fm A T B m m S A A T B m HUF K A m A A F m XYZH U Fm PQR w PQR m K A B A D T T B m m mT R w A m D m m m m A Fm m mT A m m m m A D P DP m D P m m m A Fm R w m A DPA A T A DPA w T A T B m A Fm w m m w P A A M C M Cm R B R m A Pw A U Cm w m Cm m m A m Pw A Pw A w A Fm R m w m A Fm m A w A m m A Fm m w w C Dm D Nm w C Dm D w w

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TERMS OF THE ISSUE: 1. Authority for the Issue: TheBoardof Directors, at itsmeetingheldonApril 29, 2011, hasapprovedtheissue, inoneor more

tranches, of secured, redeemable, non-convertibledebentureshavingbenefitsunder Section80CCFof theIncomeTaxAct of  facevalueof `   50,000.0milionfor thefinancial year 2011-2012(the "ShelfLimit").  `  5,000each,foranamountnotexceeding `  50, Thefirst trancheof theBonds(the "Tranche 1 Bonds") wasissuedbytheCompanyinDecember, 2011onthetermsset out in theShelf ProspectusandtheProspectus- Tranche1for anaggregateamount of  ` `  5,  5,326.2milionout of theoverall limit of `   `  50,0 50,000.0mi 00.0milion.n. TheTra TheTranche2 nche2Bon Bondsshal dsshallbe issuedon suedon thetermssetout in theProsp theProspectu ectuss -Tranche2 Tranche2 foranam an amoun ountt not exceeding `   44,000.0milion. Intermsof theNotification, theaggregatevolumeof issuanceof longterminfrastructurebonds (havingbenefits underSection80CCFof theeIIncomeTaxAct) bytheeComp Company anyduri duringthe financial yyear ear 2011-2012shal 2011-2012shall not exceed25percent of theincremental infrastructureinvestment madebytheCompanyduringthefinancial year 2010-2011. For  thepurposeof calculatingtheincremental infrastructureinvestment, theaggregategrossinfrastructureinvestmentsmadebythe Companyduringthefinancial year 2010-2011wasconsideredwhichwere ` 251,125 251,125.9mi .9milionandhencethelimit fortheIssue is `   50,000.0milion.  `  50, Tranche2 he2 Bondsof theCompa eCompany nynot not exceeding `  44,  44,000.0 2. Issue, Status of Tranche 2 Bonds: 2.1 Thepublic Issueof Tranc milion.n. Thesetermsand Thesetermsandcond condiitionsare nsarefor for theTranch theTranchee 2 Bonds Bondsiissued sued under under the theShe Shellf Prospe Prospectusand ctusandtheProspe theProspectusctusTranche2. 2.2 TheTranche2Bondsareconstituted,issuedandsecuredpursuant i ssuedandsecuredpursuanttoaDeben a DebenttureTrustDeed.TheBondh TheBondhololders areentitledtothebenefitof theDebe theDebentureTru ntureTruststDeedandareboundbyandare Deedandareboundbyandaredee deemedtohavenoti medtohavenoticeofall theprovisionsof  theDebentureTru theDebe ntureTrustst Dee Deed.d.TheCompan TheCompanyy isissui i ssuingtheTra gthe Tranche2Bondsi nche2Bondsin accordan accordancewi cewithand handpurs pursuan uantt tothe totheNoti Notificationn.. TheTranche2BondsissuedbytheCompanymaybeclassifiedas'longterminfrastructurebonds' for thepurposesof Section 80CCFof 80CCFof theIncomeTaxAct.2.3 2.3 TheTranc TheTranche he22 Bonds Bondsarei areissued suediin theformof theform of secureed,d, rede redeem emabl able, nonconverti nonconvertible debentures. TheTranche2Bondsconstitutedirect andsecuredobligationsof theCompanyandshall rankpari passuinter se andwithout anypreferenceor priorityamongthemselves. Subject toanyobligationspreferredbymandatoryprovisionsof the lawprevailingfromtimetotime, theTranche2Bondsshall also, asregardstheprincipal amount of theTranche2Bonds, interest andall other moniessecuredinrespect of theTranche2Bonds, rank pari passu withall other present andfuturedebenture holdersof theCompany. Thesecuritydescribedinsection14of thesectionentitled"- Security" onpage121of theProspectus Tranche2shall bepari passu withall thepresen thepresentt andfutureborro andfutureborrowiwingsgs oftheComp theCompanyfromvari anyfromvariouuslslend enders(al ers(althoughsuch houghsuch lendersdonot havethebenefit of anysecurityover immovableproperty). Theclaimsof theBondholdersshall besuperior tothe claimsof theunsecuredcreditorsof theCompany(subject toanyobligationspreferredbymandatoryprovisionsof theapplicable lawprevailingfromtimetotime). 3. Form, Face Value, Title and Listing, etc: 3.1 Form : 3.1.1 Theallotment of theTranche2Bondsshall beinadematerialized form(fungiibleand form(fung andrepre represen sentedby tedby thestateme thestatementntissuedthroughtheelectronicmod mode)e)or in phy physisicalformasi formas indicaatedi tedin the ApplicationFormbyanApplicant.TheCompanyhasmadedepositoryarrangementswithNationalSecuritiesDepositoryLimited ("NSDL" ) andCentral DepositoryServices(India) Limited("CDSL", andtogether withNSDL, the"Depositories") for issueof  theTranche2 theTranc he2 Bondsi Bondsin ademateri adematerializedformpursu edformpursuant anttothetri to thetripartiteagree eagreeme mentnt between between:: (i) theCompany, NSDLandthe RegistrardatedDecember13,2004;and (ii) theCompany,CDSLandtheRegistrardatedDecember21,2004.(togetherthe "Tripartite Agreements" )TheCompanyshalltakenecessarystepstocredittheDepositoryParticipantaccountoftheApplicants withthenumber of Tranche2Bondsalloted. TheBondholdersholdingtheTranche2Bondsindematerialisedformshall deal withtheTranche2 htheTranche2Bon Bondsi dsin accordan accordancewi cewiththeprov hthe proviisionsof theDepo theDeposisitoriesAct and/or and/orrulesasnotifiedbythe dbytheDep Deposi ositories fromtimetotime.IntermsofRegulation4(2)(d)oftheSEBIDebtRegulations,theCompanywil makepublicissueoftheTranche 2Bondsinthedematerialisedform.However,intermsofSection8(1)oftheDepositoriesAct,theCompany,attherequestofthe ApplicantswhowishtoholdtheTranche2Bondsinphysical form, wil fulfil suchrequest.3.1.2 TheBondholdersmayrematerialize theTranche2Bondsissuedindematerializedformat anytimeafterallotment, inaccordancewiththeprovisionsof theDepositoriesAct and/ orrulesasnotifiedbytheDeposi dbytheDepositoriesfromtimetotimee..3.1.3 Incaseof Tranche2Bondsthat areallotedor heldinphysical formor upon rematerialization,theCompanywil issueonecertificatetotheBondholderfortheaggregateamountoftheTranche2Bondsthatareheldby suchBondholder (eachsuchcertificatea"Consolidated Tranche 2 Bond Certificate"). TheCompanyshall dispatchtheConsolidated Tranche2BondCertificatetotheaddressof theApplicant mentionedintheApplicationFormwithintwo(2) WorkingDaysfromthedateof  AllotmentoftheTranche2Bonds.3.1.4 Inrespect of theConsolidatedTranche2BondCertificate(s), theCompanywil, uponreceipt of a requestfromtheBondholderwi erwithin30daysof 30 daysofsuchrequest,split suchConsolidatedTranche2BondCertificate(s)intosmallerrdenom denominations inaccordancewiththeArticlesof s ofAssociationn,,subjecttoaminimumdenomi umdenominationofoneTranche2Bond.Nofeeswil bechargedforspl r spliting anyConsolidatedTranche2 dTranche2BondCert BondCertificate(s)but,stampduty,ifpayable,wilbepaidby byttheBondholdeer.r.Therequesttospli taConsolidated Tranche2BondCertificateshall beaccompaniedbytheoriginal ConsolidatedTranche2BondCertificatewhichwil, uponissuanceof the split ConsolidatedTranche2BondCertificates, becancelledbytheCompany.3.2FaceValue: Thefacevalueof eachTranche2Bondis   Tranche2Bondsheldinthedematerializedform, thepersonforthetimebeingappearingintheregister  ` 5,000. 3.3Title:3.3.1 Incaseof: (i) Tranche2Bondshel ofbeneficialownersmaintainedbytheDepository;and(ii) theTranche2Bondheldinphysical form, thepersonforthetimebeingappearing intheRegisterof r ofBondho BondholldersasBondholder,shallbetreatedforralallpurposesbytheeCom Company, pany,theDeben eDebenttureTrustee,theDepositoriesand all other personsdealingwithsuchpersonastheholder thereof anditsabsoluteowner for all purposeswhether or not it isoverdueand regardlessof anynoticeof ownership, trust or anyinterest init or anywritingon, theft or lossof theConsolidatedTranche2BondCertificate issuedinlrespect ofethssandunt eTranche2Bondsandnopersonwi beliabledfoersor r sotrtheateregi ingtshteeBondhol  Notransf of titlehofeDeposi aTranche2 Bondwi bevalidunl il enteredontheRegister oflBondhol r of benefdicer.ial3.3.2 ownersmai ntaeinredbyt tory priortotheRecordDate.Intheabsenceoftransferbeingregistered,interest,BuybackAmountand/orMaturityAmount,asthecasemaybe, wil bepaidtotheperson,whosenameappearsfirstintheRegisterofBondholdersmaintainedbytheDepositoriesand/ortheCompanyand/ or theRegistrar, asthecasemaybe. Insuchcases, claims, if any, bythepurchasersof theTranche2Bondswil needtobesettledwiththe selleroftheTranche2BondsandnotwiththeCompanyortheRegistrar.Theprovisionsrelatingtotransferandtransmissionandotherrelated mattersinrespect of theCompany'ssharescontainedintheArticlesof Associationof theCompanyandtheCompaniesAct shall apply, mutatismutandis(totheextent applicable)totheTranche2Bond(s)aswell.3.4 3.4 Listing: TheTranche2BondswilbelistedonNSEandBSE d onNSEandBSE.. 3.5 Market Lot: 3.5.1 TheTranche2Bondsshallbeallotedindematerialisedformandinphysicalform.ThetradingoftheTranche2Bonds ontheStockExchangesshall beindematerialisedformonlyinmultiplesof oneTranche2Bond("Market Lot").3.5.2 3.5.2 Fordetailsofallotment refertochapterentitled"ProcedureforApplication"beginningonpage127oftheProspectusTranche2.3.6 3.6 Procedure Procedure for Rematerialisation of Tranche 2 Bonds: BondholderswhohavebeenallotedTranche2BondsindematerializedformandwishtoholdtheTranche2Bonds inphysical formmaydosobysubmitinghisor her request tohisor her DepositoryParticipant inaccordancewiththeapplicableprocedure stipulatedbytheDepositoryParticipant. 3.7 Procedure for Dematerialisation of Tranche 2 Bonds: Bondholderswhohavebeenalloted Tranche2Bondsinphysical formandwishtoholdtheTranche2Bondsindematerializedformmaydosobysubmitinghisor her request tohisor her DepositoryParticipant inaccordancewiththeapplicableprocedurestipulatedbytheDepositoryParticipant. 4. Transfer of the Tranche 2 Bonds, Issue of Consolidated Tranche 2 Bond Certificates etc.: For further detailsregardingLock-in Period, Transfer of theTranche2Bonds, Issueof ConsolidatedTranche2BondCertificates, Registration, etc., pleaserefer sectiontitled “Term “Termsof sof theIssue” onpage114-115 onpage114 -115 oftheProspectusTranche2. s Tranche2. 5. Debenture Redemption Reserve (“DRR”): TheCompanyshallcreateDRRof50percentofthevalueofTranche2Bondsissuedand allotedintermsofthisShelfProspectus,fortheredemptionoftheTranche2Bonds.TheCompanyshallcreditadequateamountstoDRR fromitsprofitseveryyear until theTranche2Bondsareredeemed. TheamountscreditedtotheDRRshall not beutilizedbytheCompany for anypurposeother thanfor theredemptionof theTranche2Bonds. 6. Deemed Date of Allotment: TheDeemedDateof Allotment for theTranche2Bondsshall bethedateasmaybedeterminedbythe BoardoftheCompanyandnotifiedtotheSt e StockExchanges.Al benefitsundertheeTranche2Bondsi Tranche2Bondsincludingpaymentofinterestwil accrue totheBondholdersfromtheDeemedDateofAllotment.Theactualallotmentmayoccuron mayoccuronadat adateotherertthantheDeemedDateofAllotment. 7. Subscription: 7.1 Period of Subscription: TheIssueshall remainopenfor: Issue Opens on : January11,2012 Issue Closes on: February25,2012 TheIssueshall remainopenfor subscriptionduringbankinghoursfor theperiodindicatedabove, except that theIssuemaycloseonsuch earlier dateor extendeddateasmaybedecidedbytheBoardsubject tonecessaryapprovals. Intheevent of anearlyclosureor extension of theIssue, theCompanyshall ensurethat noticeof thesameisprovidedtotheprospectiveinvestorsthroughnewspaper advertisements 4

 

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THE NATURE N THE NATURE OF FORM 2A MEMORANDUM MEMORANDUM CONTA N N G S AL EN T F EATURES OF THE PROSPE PROSPECTUS CTUS TRANCH TRANCHE E2 m m A A m A A m w w m A m GRN m GR m PAN PAN A w C m w A Fm T SEB A DPD C D PANm m m AA Fm m m w A Fm m m m B P N m DPDC D PA PANN w T P Fm P T A A m A F mHw B w w A A m A m

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maybemadeinsingleorjointnames(notexceedingthree).InthecaseofjointApplications,allpaymentswil bemadeoutinfavourofthefirst Applicant. All communicationswil beaddressedtothefirst namedApplicant whosenameappearsintheApplicationFormat theaddress mentionedtherein.12. Appl   Applicantsarerequestedtowritetheir namesandApplicationserial number onthereverseof theinstrumentsby whichthepaymentsaremade.13. Category:AllApplicantsarerequestedtoticktherelevantcolumn"CategoryofInvestor"intheApplication Form.14. Ensuret  Ensurethat youhavespecifiedtheseriesof theTranche2Bondsthat youwishtosubscribeto. TheApplicationFormswhichdo not indicatetheseriesfor whichtheApplicant hasappliedshall beallotedSeries1of Tranche2Bonds. 15. Ensurethattheappropriatebox withrespect hrespecttothebuybackfacilityisduly ticked.16. Ensurethat EnsurethattheApplccati i ationnsare saresubm submittedtotheBankerstotheIssueor collecctition centre(s)/ agentsasmaybespecifiedbeforeIssueClosingDate;17. I Incaseof ApplicationFormsfor subscriptionof Tranche2Bondsin dem demateri aterialisedform,ensu ensurethat rethat thename(s) thename(s)givenintheApplicaatitionFormisexactlythesameasthename(s)inwhichthebeneficiary account isheldwiththeDepositoryParticipant. IncasetheApplicationFormissubmitedinjoint names, ensurethat thebeneficiaryaccount isalsoheldinsamejointnam namesandsuchnam esandsuchnamesarei esareinthesameseque thesamesequencei nceinwhichtheyapp htheyappear earintheApplicationForm. Don'ts: 1. Donot makeanapplicationforlowerthantheminimumApplicationsize.2. DonotpaytheAppl payt heApplicationAmount nAmountincash,bymoney by money orderorbypostalorderorbystockinvest. 3. Donot  Donot sendApplicationFormsbypost; insteadsubmit thesametoaBanker totheIssueonly. 4. Donot   Donot submit theGIRnumber insteadof thePANastheApplicationFormisliabletoberejectedonthisground. 5. Donot submit the ApplicationFormswithout theful ApplicationAmount. 6. Donot providethe etheDepo DeposisitoryParticipantdetailsin theApplicationFormsfor  nFormsfor  subscriptionof Tranche2Bondsinphysical form.For further instructions, pleasereadtheApplicationFormcarefuly.

FormsbystampingandreturningtotheApplicantstheacknowledgement slip. Thisacknowledgement slipwil serveastheduplicateof the ApplicationFormfor therecordsof theApplicant. 29. Online Applications: TheCompanymaydecidetooffer anonlineApplicationfacilityfor theTranche2Bonds, asandwhenpermited byApplicableLaws, subject tothetermsandconditionsprescribed. 30. Tranche 2 Bonds in dematerialised form with NSDL or CDSL: TheAllotment of Tranche2BondsinthisIssueshall alsobeindematerialisedform, (i.e., befungibleandberepresentedbythestatement issuedthroughtheelectronicmode). Asper theprovisionsof the DepositoriesAct, theTranche2Bondscanbeheldinadematerialisedform, i.e., theyshall befungibleandberepresentedbyastatement issuedthroughelectronicmode. Inthiscontext: (i) Thefolowingtwotripartiteagreementshavebeensignedamongst theCompany, the respectiveDepositoriesandtheRegistrar:"Tripartite AgreementdatedDecember13, dDecember13,2004betweenus,theRegi e RegistrarandNSDLforoffering depositoryoptionto theBondholders. "Tripartit eAgreement dat datedDecember 21, 2004bet 2004betweenus, theRegi e Registrar andCDSLfor offering depositoryoptiontotheBondholders.(ii)(ii) Al Ap Applplicants canseek Allotmentin dematerialisedmode.Applicationsseeking allotmentin dematerializedformandwithout relevant detailsof hisor her depositoryaccount areliabletoberejected. (iii) AnApplicantapplyingforthe Tranche2BondsindematerializedformmusthaveatleastonebeneficiaryaccountwitheitheroftheDepositoryParticipantsofeitherNSDL orCDSLpriortomakingtheApplication. (iv) TheApplicantapplyingfortheTranche2Bondsindematerializedformmustnecessarilyfil inthe details(includingtheBeneficiaryAccount NumberandDepositoryParticipant'sidentificationnumber)appearingintheApplicationForm.(v) Allotment toanApplicant wil becreditedinelectronicformdirectlytothebeneficiaryaccount (withtheDepositoryParticipant)of theApplicant. 24. Tax Deduction at Source: (vi) Persons(ot h er t h ancompani e sandf i r ms) resi d ent i n I n di a cl a i m i n gi n t e rest onbondswi t h out deduct i o nof    NamesintheApplicationFormshouldbeidentical tothoseappearingintheaccount detailsintheDepository. Incaseof joint holders, the taxat sourcearerequiredtosubmit Form15G/Form15Hat thetimeof submitingtheApplicationForm, inaccordancewithandsubject to namesshoul dnecessarilybeinthesamesequenceastheyappear intheaccount detailsintheDepository.(vii) Ifincompleteorincorrect theprovisionsof theIncomeTaxAct. Other Applicantscansubmit acertificateunder section197of theIncomeTaxAct. For availingthe detailsaregivenunder theheading'ApplicantsDepositoryAccount Details' intheApplicationForm, it isliabletoberejected. (viii) exemptionfromdeductionof taxat sourcefrominterest onTranche2BondstheApplicant isrequiredtosubmit Form15G/ 15H/ certificate TheApplicant isresponsibleforthecorrectnessof hisorherDemographicDetailsgivenintheApplicationFormvis-à-visthosewithhisorher  unde underr section197of theIncom theIncomeTaxAct/ eTaxAct/validproofof exemptionn,, asthecasemaybe asthecasemaybealalongwiththenameofthesol the sole/firstApplicant, DepositoryParticipant.(ix)  Tranche2Bondsinelectronicformcanbetradedonlyonthestockexchangeshavingelectronicconnectivitywith Bondhol BondholdernumberandthedistinctivenumbersofTranche2Bondsheldto usonconfirmationofAllotment.Applicantsarerequiredtosubmit NSDLandCDSL.NSEandBSE,wheretheTranche2Bondsareproposedt eTranche2Bondsare proposedtobeli bel isted,haveelectronicconnectivity withNSDLandCDSL. Form15G/15H/certificateundersection197oftheIncomeTaxAct/validproofofexemptioneachfinancialyear.Pleasenotethatincaseof  (x) ThetradingoftheTranche2Bondsshallbeindematerialisedformonly.Aloteeswil havetheoptiontore-materialisetheTranche2Bonds Tranche2Bondsheldinphysicalform,thewithholdingtaxattheapplicableratewouldbedeductedontheinterestpaymentifsuchpayment soAllotedindematerializedformasper theprovisionsof theCompaniesAct andtheDepositoriesAct. isinexcessof `  ,500i0inaafifinan ancicialye year. ar.Forfurther details pleaserefer sectionttiitledTaxDeducti TaxDeductionat natSou Sourceon rceonpage130 ofthe 31. Tranche 2 Bonds in Physical Form: SEBI throughitsclarificationdatedOctober 8, 2010(the "SEBI Letter")hasstatedthatthe  `  2,50 Prospectus - Tranche 2. Applicant(s)whowishtosubscribeto, orhold, theBondsinphysical formcandosointermsof Section8(1)of theDepositoriesAct, 1996and 25. Multiple and Partial Applications: (a)  AnApplicant isrequiredtosubmit onlyoneApplication(andnot morethanone) for thetotal theCompanyi eCompanyis obligatedtofulfil suchrequestoftheApplicant(s).Accordingglly,anyApplicantwhowishestosubscribetotheeTranche2Bonds Tranche2Bonds number of Tranche2Bondsrequired. Twoor moreApplicationsinsamenameswil bedeemedtobemultipleApplicationsif thesole/first inphysical formshall undertakethestepsasspecifiedintheProspectus-Tranche2. AnyApplicant whowishestosubscribetotheTranche Applicant isoneandthesame. Multipleapplicationsshall beaggregatedbasedonthePANof theApplicant andshall beconsideredfor  2Bondsinphysical formshall providethefolowingdocuments: (a) Self-attestedcopyofthePANcard;(b) Self-attestedcopyoftheproofof  allotmentas asper pertheproce the proceduredetai duredetailedin thesectionentitled"- Basi Basisof Alloment"on tment"onpage134of page134oftheProspe theProspectusTranc ctusTranche2. he2. (b) T  The he residence. Anyof thefolowingdocumentsshall beconsideredasaverifiableproof of residence: rationcardissuedbytheGovernment of  Companyreserve panyreservesthe stheririghttotorej reject,inits soleandabsolutediscreti cretion,all oranymul any mulitpleApplicatiationsin any/all categ categori ories.(c) Inan India;or  validdrivinglicenseissuedbyanytransport authorityof theRepublicof India; or  electricitybil (notolderthan3months);or  landline ApplicationForm, anApplicant hastheoptiontoseekAllotment of Tranche2Bondsineither electronicor physical mode. Incaseof partial telephonebil (not older than3months); or validpassport issuedbytheGovernment of India; or Voter'sIdentityCardissuedbythe application(s) intheApplicationForm, theCompanyshall allot all suchTranche2Bondsindemat mode. Government Governm entofIndia; or pass passbookor bookor latestbankstatementissuedbyabankoperati suedby abankoperatinginIndia; or leaveandlicenseagreement or  PAYMENT INSTRUCTIONS agreementforsaleorrentagreementorflatmaintenancebil;or aletterfromarecogni fromarecognizedpublicauthori authorityorpublicservant servantverifyingthe 26.EscrowMechanism :TheCompanyshallopenEscrowAccount(s)withoneormoreEscrowCollectionBank(s)inwhosefavourtheApplicants identityandresidenceof theApplicant.(c) Self-attestedcopyof acancelledchequeof thebankaccount towhichtheamountspertainingto shallmakeou makeoutthechequeordemanddraftinrespectofhisorherApplication.Cheq hequesordemanddra uesordemanddrafftsreceivedfortheApplicationA nAmou mountntfrom paymentofrefunds,interestandredemption,asapplicable,shouldbecredited.TheApplicantshallberesponsibleforprovidingtheabove ApplicantswouldbedepositedintheEscrowAccount.TheEscrowCollectionBankswil actintermsoftheShelfProspectus,theProspectus- informationaccurately. Delaysorfailureincredit of thepaymentsduetoinaccuratedetailsshall beat thesoleriskof theApplicantsandneither  Tranche2andt he2andtheEscrowAgreement.TheEscrowCol heEscrowColectionBanks,forrandonbehal andonbehalfoftheApplicants,shallmainaait inthemoniesintheEscrow theLeadManagersnortheCo-LeadManagersnortheCompanyshall haveanyresponsibilityandundertakeanyliabilityforthesame. The Accou AccountntuntilthecreationofsecurityfortheTranche2Bon eTranche2Bonds. ds.TheEscrowCollectionBanksshal nBanksshallnotexerciseanylienwhatsooeverovert everoverthemonies App Appllicationns,s,of theApplicantswhowi antswhowishtosubscri h tosubscribefor theTranche theTranche 2Bondsin physicalform,whichare notaccompani accompaniedwithhthe the depositedthereinandshal andshal holdthemoni emoniesthereinintrustfortheApplicants.OntheDesigna nattedDate,theEscrowCol rowCollectionBanksshalltransferthe aforestateddocumentsmayberejectedat thesolediscretionof theCompany. Incaseof Tranche2Bondsthat areissuedinphysical form, fundsrepresent ndsrepresentedbyAllotmentoftheTranche2Bondsf eTranche2BondsfromtheEscrowAcco eEscrowAccount unt,asperthetermsoftheEscrowAgreement,intothePublicIssue theCompanywil issueonecertificatetotheBondholder for theaggregateamount of theTranche2Bondsthat arealloted(eachsuch Accou AccountntmaintainedwiththeBankerstotheIssue.Theamou sue. TheamountntrepresentingtheApplicaattionsthathavebeenrejectedshall betransferredtothe certificatea"ConsolidatedTranche2BondCertificate"). TheCompanyshall dispatchtheConsolidatedTranche2BondCertificatetothe RefundAccount ndAccount.Payment aymentsofrefundtotheApplicantsshallbemadefromtheRe eReffundAcco ndAccount untasperthetermsoftheEscrowAgreementandthe addressof theApplicant providedintheApplicationFormwithintwo(2) WorkingDaysfromthedateof Allotment of theTranche2Bonds. Prospect Prospectus-Tranche2.TheApp heAppllicantsshouldnotethattheescrowmechani eescrowmechanismisnotprescribedbySE edbySEBI BIortheStockExchangesandhasbeen ckExchangesandhasbeen PLEASE NOTE THAT, SUBJECT TO THE LOCK-IN PERIOD, TRADING OF TRANCHE 2 BONDS ON THE STOCK EXCHANGES establishedasanarrangementbetweentheCompany,theLeadManagers,theCo-LeadManagers,theEscrowCollectionBanksandtheRegistrar  SHALLBEIN DEMATERIALISEDFORMONLYINMULTIPLEOFONETRANCHE2BOND. tofacilitatecollectionfromtheApplicants. 32. Communications: All futurecommunicationsinconnectionwithApplicationsmadeintheIssueshouldbeaddressedtotheRegistrar  27. Payment into Escrow Account: EachApplicantshalldrawachequeordemanddraftfortheApplicationAmountasperthefolowing totheIssue, quotingall relevant detailsregardingtheApplicant/Application. Applicantsmayaddressour ComplianceOfficer aswell asthe terms:(a) All Applicantswouldberequiredtopaytheful ApplicationAmount at thetimeof thesubmissionof theApplicationForm.(b) TThehe contactpersonsoftheLeadManagers,theCo-LeadManagersandtheRegistrartotheIssueincaseofanypre-Issuerelatedproblemssuch Applicantsshall,withthesubmi e submissionoftheApplicationForm,drawapaymentinstrumen umenttfortheeAppl ApplicationAmount nAmountinfavourof theEscrow asnon-receipt of letersof Allotment/credit of Tranche2BondsintheDepositary'sbeneficiaryaccount/refundorders, etc. Account andsubmit thesametoBankerstotheIssue. If thepayment isnot madefavouringtheEscrowAccount alongwiththeApplication 33. Rejection of Applications: TheCompanyreservesitsful, unqualifiedandabsoluteright toaccept or reject anyApplicationinwholeor  Form, theApplicationshall berejected.(c) Thepayment instrumentsfor payment intotheEscrowAccount shouldbedrawninfavour of  inpart andin either her casewithout houtassigninganyreasonthereof. ganyreasonthereof. Incaseof App Appllicationnss whe wherethe retheApp AppllicationFormhas nFormhasnot notbeenduly "IDFC Infra Bonds - Tranche 2" . (d) ThemoniesdepositedintheEscrowAccount wil beheldfor thebenefit of theApplicantsuntil the completed, theCompanyreservesthesoleright at itsabsolutediscretiontoreject theApplicationForm. Applicationwouldbeliabletobe DesignatedDate.(e) OntheDesignatedDate, theEscrowCollectionBanksshall transfer thefundsfromtheEscrowAccount asper the rejectedononeormoretechnicalgrounds,includingbutnotrestrictedto:  Numberof Tranche2Bondsappliedforislessthantheminimum termsof theEscrowAgreement intothePublicIssueAccount withtheBankerstotheIssue. TheEscrowCollectionBankshall alsotransfer  Applicationsize; Applicationsnot dulysignedbythesole/joint Applicants; Applicationamountpaidnottalyingwiththenumberof e numberofTranche Tranche allamountspayabletoApplicantswhoseApplicationshavebeenrejectedbytheCompanytotheRefundAccountwiththeRefundBank.The 2Bondsappliedfor; Applicationsfor anumber of Tranche2Bondswhichisnot inamultipleof one; Investorcategorynotticked; Bank RefundBankshall refundall theamountstotheApplicantsintermsof theEscrowAgreement.(f) Payment aymentsshouldbemadebycheque, be madebycheque,or  accountdetailsnotgiven; ApplicationsbypersonsnotcompetenttocontractundertheI e IndianContractAct,1872,asamended, asamended,includinga ademanddraft drawnonanybank(includingaCo-operativebank), whichissituatedat, andisamemberof orsub-memberof thebankers' minorwithoutaguardianname; IncaseofApplicationsunderPowerof nsunder PowerofAttorneywhererelevantdocumen documenttsnotsubmited; Applicationby clearinghouselocatedat thecentrewheretheApplicationFormissubmitedi.e. at designatedcollectioncentres. Outstationcheques/bank ●

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event, if anyTranche2Bond(s) appliedfor is/arenot alloted, theApplicationmoniesof suchTranche2Bondswil berefunded, asmaybe permitedunder theprovisionsof applicablelaws. 34.Basis of Allotment : TheCompanyshall finalisetheBasisof Allotment inconsultationwiththeDesignatedStockExchange. The executivedirector(oranyotherseniorofficial)oftheDesignatedStockExchangealongwiththeLeadManagers,theCo-LeadManagersand theRegistrar shall beresponsiblefor ensuringthat theBasisof Allotment isfinalisedinafair andproper manner. Subject totheprovisions containedintheProspectus-Tranche2, s- Tranche2,theArticlesofAssociationoftheCompanyandtheapprovaloftheDesignatedStockExchange,the Boardwil proceedtoAllot theTranche2Bondsunder theProspectus- Tranche2inthefolowingorder of priority: (a) Full Allotment of  Tranche2BondstotheApplicantsonafirst comefirst basisuptotheIssueClosingDatefortheProspectus-Tranche2orthedatefalingone dayprior totheOversubscriptionDate, whichever isearlier. If therearemultipleApplicationsmadebyanApplicant, all thevalidApplications receivedwil beaggregatedtodeterminethecategoryinwhichsuchApplicant fals. All suchApplicationswil individuallybeconsideredfor  allotmentonafirstcomefirstservebasiswithinthecategory.(b)F  orApplicationsreceivedontheOversubscriptionDate,theTranche2Bonds shall beAllotedinthefolowingorder of priority:(i) Allotment totheApplicantsforSeries1Tranche2Bonds(ii) Alotment enttotheAppl e Applicantsfor  Series2Tranche2Bonds. Provided, however, that intheevent of oversubscriptioninanyseriesof Tranche2Bondsmentionedin(i) or (ii) above, theTranche2Bondsshall beAllotedproportionatelyinthat respectiveseries(subject theMinimumApplicationsize), subject tothe overalllimitof ` 44,000.0milionandtheApplicationsfor theTranche2Bondsinsubsequent seriesshall berejected. (c) AllApplications receivedafter theOversubscriptionDateshall berejectedbytheCompany. 35. Letters of Allotment/ Refund Orders: TheCompanyreserves, initsabsoluteandunqualifieddiscretionandwithout assigningany reasonthereof, theright toreject anyApplicationinwholeor inpart. Theunutilisedportionof theApplicationmoneywil berefundedtothe Applicantbyanaccountpayeecheque/demanddraft.Incasethechequepayableatparfacilityisnotavailable,wereservetherighttoadopt anyothersuitable modeofpayment.TheCom TheCompanyshal panyshallcredittheallotedTranche2Bondst d Tranche2Bondstothererespect espectivebeneficiaryaccounts/dispatch theLetter(s)ofAllotmentorLetter(s)ofRegret/RefundOrders,asthecasemaybe,byregisteredpostattheApplicant'ssolerisk,within10 weeksfromthedateof closureof theIssue. Further,(a) Allotment of theTranche2Bondsshall bemadewithin30daysof theIssueClosing Date;(b) credittodematerialisedaccountsordispatchoftheConsolidatedTranche2BondCertificate,asapplicable,wil bemadewithintwo (2)WorkingDaysfromthedat e dateofAllotment ent;(c) theCompanyshallpayinterestat15percent 15per cent.perannumiftheAllotmenthasnotbeenmade and/ or theRefundOrdershavenot beendispatchedtotheApplicantswithin30daysfromthedateof theclosureof theIssue, for anydelay beyond30days. TheCompanywil provideadequatefundstotheRegistrar totheIssue, for thispurpose. 36. Filing of the Prospectus – Tranche 2 with the RoC: AcopyofthePros the Prospectu pectus-s- Tran Tranche2 che2has hasbeenfiledwi d withtheRegistrar trarof  Companies,TamilNaduintermsofSections56and60oftheCompaniesAct. 37. Pre-Issue Advertisement: Subject toSection66of theCompaniesAct, theCompanyshall, onor beforetheIssueOpeningDate, publishapre-Issueadvertisement,intheformprescribedbyt edby theSEBIDe DebtbtRegulations,inonenationaldailynewspaperwithwidecirculation. 38. IMPERSONATION: Attention of the Applicants is specifically drawn to the provisions of sub-section (1) of Section 68 A of  the Companies Act, which is reproduced below: "Any person who: (a) (a) makes in a fictitious name, an application to a company for  (b) otherwise induces a company to allot, or register any transfer of shares, therein to him, acquiringor subscribingfor,anysharestherein,or o r (b) or any other person in a fictitious name, shall be punishable with imprisonment for a term which may extend to five years." 39. Issue of Letter of Allotment: Letter(s)ofAllotmentwil bedispatchedatthesoleriskoftheApplicant,throughregisteredpost,within10 weeksfromthedateof closureof theIssue, or suchextendedtimeasmaybepermitedunder ApplicableLaws. 40.Listing: TheTran TheTranche2Bondswi che2Bondswil belistedonNSEandBSE donNSEandBSE.. NSEwilbetheDesignatedStockExchangewithwhichtheBasisofAlotment wilbefinalised.If theTranch eTranche2Bondsaref e2Bondsareforranyreasondeni anyreasondeniedpermissionstodealin andforanofficialquotationoftheTranche2Bondsarenot grantedbytheStockExchanges,weshall forthwithrepay,withoutinterest,al suchmoneysreceivedfromtheApplicantsinpursuanceofthe Prospectus-Tranche2.Ifsuchmoneyisnotrepaidwithineightdaysafterwebecomesliabletorepayit(i.e.fromthedateofrefusalorwithinseven daysfromtheIssueCl sueClosingDa gDatte,whicheveri heverisearlier),thentheCompanyandeveryDirect ectoroftheCompanywhoi eCompanywhoisanofficerindefaultshall,onand fromsuchexpiryofeightdays,beliabletorepaythemoney,withinterestatherateof15percent.p.a.onapplicationmoney,asprescribedunder  Section73oftheCompaniesAct.TheCompanyshallensurethatalstepsforthecompletionofthenecessaryformalitiesforlistingandcommencement oftradingattheStockExchangesaretakenwithinseven(7)WorkingDaysfromthedateofAlotment. 41. Utilisation of Application Money: ThesumsreceivedinrespectoftheIssuewil bekeptintheEscrowAccountandwewil haveaccess t42. osuchf undsafter bycreat nof securi tyfor theTranche2Bondsasdi sedinthaeProspect us-nrespect Tranche2. Undertaking theioIssuer: TheCompanyundert akesthat:(a) (a)s t clthoecompl intsreceivedi of theIssueshall beattendedtoby theCompanyexpeditiouslyandsatisfactorily; (b) theCompanyshall takenecessarystepsfor thepurposeof gettingtheTranche2Bonds listedintheconcernedstockexchang theconcernedstockexchange(s) e(s)withinthespecifiedtime;(c) thefundsrequiredfor dispatchof refundorders/Alotment leters/ certificatesbyregisteredpost shall bemadeavailabletotheRegistrar totheIssuebytheCompany;(d) necessarycooperationtothecredit ratingagency(ies)shall beextendedinprovidingtrueandadequateinformationtil thedebt obligationsinrespect of theTranche2Bondsare outstanding;(e) theCom theCompanyshal panyshallforwardthedetailsofutilisationof thefundsraisedthrou edthroughtheTranch ghtheTranche2 e2Bon Bondsdul dsdulycertifiedbyits statutoryauditors, totheDebentureTrusteeat theendof eachhalf year;(f) theCompanyshall disclosethecompletenameandaddressof  theDebentureTrusteeinitsannual report;(g) theCompanyshall provideacompliancecertificatetotheDebentureTrustee(onyearlybasis) inrespect of compliancewiththetermsandconditionsof issueof Tranche2BondsascontainedintheProspectus- Tranche2. FOR FURTHER DETAILS, PLEASE REFER TO THE PROSPECTUS - TRANCHE 2

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ISSUE MANAGEMENT TEAM REGISTRAR TO THE ISSUE

LEAD MANAGERS TO THE ISSUE

KARVY INVESTOR SERVICES LIMITED

701, Hallmark Business Plaza, SantDyaneneshwarMarg, Off Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Tel:  (91 22) 6149 1500 Fax:  (91 22) 6149 1515 Email : [email protected] Investor Grievance Email: [email protected] Website :  www.karvy.com Contact Person :  Mr. Lokesh Singhi Madhusudhann Rao Compliance Officer:  Mr. VVMadhusudha

HD C N M D

m B D T W AW F Km M Cm S B M w P W Mm @

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SEBI Registration No.: INM000008365

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JM FINANCIAL CONSULTANTS PRIVATE LIMITED

Investor Grievance Email:

Investor Grievance Email:

SEBI Registration No.:  INM000011179

SEBI Registration No.:  INM000010361

ICICI Centre H.T. Parekh Marg Churchgate, Mumbai 400 020 Tel : (91 22) 2288 2460 Fax :  (91 22) 2282 6580 Email :   [email protected] @

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ICICI SECURITIES LIMITED

m [email protected] Website :   www.icicisecurities.com Contact Person :  Mr. Amit Joshi Compliance Officer:  Mr. Subir Saha

CO - LEAD MANAGERS TO THE ISSUE

IDFC CAPITAL LIMITED*

NamanChambers,C-32 G-Block, Bandra- Kurla Complex Bandra (East), Mumbai 400 051 Tel: (91 22) 6622 2600 Fax:  (91 22) 6622 2501 E-mail: [email protected] Investor Grievance Email:  [email protected] Website: www.idfccapital.com Contact Person: Cyril Paul Compliance Officer:  Pritesh Dedhia

141 Maker Chambers III, Nariman Point, Mumbai - 400021 Tel : (91 22) 6630 3030 Fax : (91 22) 2204 2137 Email :   [email protected]

[email protected] Website :  www.jmfinancial.in Contact Person : Ms.LakshmiLakshmanan Compliance Officer:  Mr. Chintal Sakaria COMPLIANCE OFFICER

KARVY COMPUTERSHARE PRIVATE LIMITED

Plot no. 17-24, Vittalrao Nagar  Madhapur, Hyderabad 500 081 Tel: (91 40) 4465 5000 Fax:  (91 40) 2343 1551

Investor Grievance Email:

[email protected] Website: http://karisma.karvy.com Contact Person:  Mr. M. Murali Krishna SEBI Registration No.: INR000000221

SEBI Reg. No. :INM000011336

DEBENTURE TRUSTEE

IDBI Trusteeship Services Limited: AsianBuilding,GroundFloor,17,R. KamaniMarg,BallardEstate,Mumbai 400001, Tel: (91 22) 4080 7000/ (91 22) 4080 7004 - 22, Fax:  (91 22) 6631 1776, E-mail:  [email protected] CompanySecretary Naman Chambers Investor Grievance E-mail: [email protected], Contact Person:  Mr. Srikkanth S., SEBI Reg. No. RR INVESTORS CAPITAL SERVICES PRIVATE LIMITED SMC CAPITALS LIMITED BAJAJ CAPITAL LIMITED IND000000460 C-32, G-Block, Bandra-Kurla Complex 133A, Mittal Tower  3rd Floor, A-Wing, Laxmi Tower, Mezzanine Floor, Bajaj House AlltherightsandremediesoftheBondholdersunder underthisIIssue ssueshallvestinandshall beexercisedbytheappointed Bandra (East), Mumbai 400 051 Nariman Point, Mumbai 400 021 Bandra Kurla Complex, Bandra (East), Mumbai 400 051 97, Nehru Place, NewDelhi 110 019 Debenture Deben ture Trustee for thi s Issue wi t hout havi n g i t referred to the Bondhol Bondholders,subjectto thetermsoftthe heDebenture Tel : (91 22) 4222 2000  (91 22) 22886627/28 (91 22) 6138 3838 Tel: Tel:  (91 11) 6616 1111 Tel: Trust Deed. Al l i n vestors under thi s Issue are deemed to have i r revocabl y gi v en thei r authori t y and consent to the Fax: (91 22) 2654 0354 Fax: (91 22) 2285 1925 Fax: (91 22) 6138 3899 Fax:  (91 11) 6660 8888 Debenture Trustee so appointed by the Company for this Issue to act as their trustee and for doing such acts and Email: [email protected] Email:  [email protected] Email: [email protected] Email: [email protected] signing such documents to carry out their duty in such capacity. Any payment by the Company to the Bondholders Investor Grievance Email: [email protected] Investors may contact the Registrar to the Investor Grievance Email: [email protected] Investor Grievance Email:  [email protected] Issue or the Compliance Officer in case of  /DebentureTrustee, Trustee,asthe t hecasemaybe,shall,fromthe f romthetitime meofmakingsuchpayment, payment,completelyandirrevocably Website: www.rrfcl.com Website: www.smccapitals.com Website: www.bajajcapital.com any pre-Issue or post Issue related issues discharge the Company pro tanto fromany liability to the Bondholders. For details on the terms of the Debenture Contact Person: Brahmdutta Singh Contact Person:  Sanjeev Barnwal Contact Person:  Mr. Surajit Misra such as non-receipt of letters of allotment, Trust Deed, please refer to the section entitled “Terms of the Issue” on page 111 of the Prospectus Tranche 2. Compliance Officer: Mr.SandeepMahajan Compliance Officer: SanjeevBarnwal Compliance Officer:  Mr. P. Janardhan demat credit or refund orders. SEBI Registration No.: INM000007508 SEBI Registration No:  MB/ I N M000011427 SEBI Registration No.:  INM000010544 . * IDFCCapital Limited, which is a subsidiary of the Company, shall only be involved in marketing of the Issue. STATUTORY STATUTOR Y A UDITOR : Deloitte Haskins & Sells, Chartered Accountants, 12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai 400 018, Tel: (91 22) 6667 9000, Fax:  (91 22) 6667 9100 CREDIT RATING AGENCY: ICRA Limited, Electric Mansion, 3rd Floor, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, Tel: (91 22) 3047 0000, Fax:  (91 22) 2433 1390, Email: [email protected], Website: www.icra.in , Contact Person: Karthik Srinivasan; Fitch Ratings India Private Limited, ApeejayHouse, 6th Floor, 3 DinshawVachha Road, Churchgate, Mumbai 400 020, Tel:  (91 22) 4000 1700, Fax:  (91 22) 4000 1701, Email: [email protected], Website: www.fitchindia.com, Contact Person: Rajesh Patel, Chief Operating Officer  LEGAL ADVISOR TO THE ISSUE :Amarchand & Mangaldas & Suresh A. Shroff & Co. , 5th Floor, Peninsula Chambers, Peninsula Corporate Park, Ganpatrao KadamMarg, Lower Parel, Mumbai 400 013, Tel: (91 22) 2496 4455, Fax: (91 22) 2496 3666 BANKERS TO THE ISSUE:  AXIS BANK LIMITED, BKCBranch, Fortune 2000, C Wing, Ground Floor, Bandra-Kurl Bandra-Kurla Complex, Bandra (East), Mum Mumbai bai 400 051, Tel: (91 22) 61483101 61483101/11/22, /11/22, Fax: (91 22) 3062 0069, Email: Kedarsing.thakur@axi [email protected]/m bank.com/muneeb.tungek uneeb.tungekar@axi ar@axisban bank.com, k.com, Investor Grievance Email: [email protected], Website: www.axisbank.com, Contact Person: Kedarsing Thakur/ Muneeb Tungekar/ Ranjeet Kumar, SEBI Reg. No.: INBI00000017, HDFC BANK LIMITED, HDFCBank Limited, FIG-OPSDepartment, Lodha, I Think Techno Campus, O- 3 Level, Next to Kanjurmarg Railway Station, Kanjurmarg (East) Mumbai 400 042 Tel: (91 22) 3075 2928, Fax: (91 22) 2579 9801, Email: [email protected], Investor Grievance Email: [email protected], Website: www.hdfcbank.com, Contact Person: Deepak Rane, SEBI Reg. No.: INBI00000063; ICICI BANK LIMITED, Capital Market Division, Raja Bahadur Mansion, 30, Mumbai Samachar Marg,Fort, Mumbai 400 001, Tel: (91 22) 6631 0322, Fax: (91 22) 6631 0350, Email: anil.gadoo@i [email protected],Investor Grievance Email: bticompliance@i [email protected],Website:www.icicibank.com,Contact Person: Anil Gadoo, SEBI Reg. No.: INBI00000004; IDBI BANK LIMITED, Unit No.2, Corporate Park, Near Swastik Chambers, Sion-Trombay Road, Chembur, Mumbai 400 071, Tel (91 22) 6690 8402/6658 8264, Fax (91 22) 6690 8424, Email ipoteam@i [email protected], Website www.idbibank.com, Contact Person: V. Jayananthan, SEBI Reg. No.:  INBI00000076; DHANLAXMI BANK LIMITED,Ground Floor, Janmabhoomi Bhavan, Janmabhoomi Marg, Mumbai 400 001, Tel: (91 22) 6154 1700, Fax:(9 (911 22) 22871637/ 22028208, Email: Venka Venkataraghava [email protected] [email protected],Investor Investor Grievance Email: [email protected], Website: www.dhanbank.com, Contact Person: Venkataraghavan T.A., SEBI RReg. eg. No.: INBI00000025; INDUSIND BANK LIMITED, Cash Management Services, Solitaire Corporate Park, No. 1001, Building No. 10, Ground Floor, Guru Hargovindji Marg, Andheri (East), Mumbai 400 093, Tel: (91 22) 67 67723901 - 3917, m @ mW www mC S V R N NB NG N M D P N C GB B K C m Mahendra N. Shah

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INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED

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liabilitiesor con contitingen genciciesrelatingto theacquireded com compan panyy or business.Furth Further, er,suchinvestmentsin strate strategigicalliancesand acquisitionsmaybelong-terminnatureandmaynot yieldreturnsintheshort tomediumterm. Wemayfromtimetotimeevaluate andchangeour strategiesrelatedtosuchinvestments. Thus, our inabilityinmanagingalliancesandacquisitionsmayhavean adverseimpact onbusiness, liquidityandresultsof operations. 6. Our access to liquidity is susceptible to adverse conditions in the domestic and global financial markets.:Sincethe secondhalf of 2007, theglobal credit marketshaveexperienced, andmaycontinuetoexperience, significant dislocationsand liquiditydisrupti ruptions ns,, which hav haveori eoriginatedfromtheliquiditydisruptionsin theUnitedState edStatess andtheEurop andtheEuropeancredi eancreditandsubprimeresidential mortgagemarkets. Duringfiscal 2009, wehadtooperateinaliquiditycrunch, especialyduringSeptember, October andNovember 2008, andhadfewer opportunitiestofinanceor provideservicestotheinfrastructuresector, resultingin aconsiderableslowdowninour businessactivitiesduringfiscal 2009. Theseandother relatedevents, suchasthecollapseof a number of financial institutions, havehadandcontinuetohaveasignificant adverseimpact ontheavailabilityof credit andthe confidenceof thefinancial marke markets,ts, globbalally aswell asi as in India. The Thererecanbe canbe noassurancethat noassurancethat we wewiwil beable tosecu to securere 1.Infrastructurefinancingcarriescertainriskswhich,totheextenttheymaterialize,couldadverselyaffectourbusinessand  add addiitionalfinanci ancingrequiredbyuson edby uson ade adequa quateteterm termss orat all.In resp responseto onsetosuchdeve suchdevellopments, pments,legislatorsandfi torsand financi ancial result in our loans andinvestments declining in value.: Ourbusinessconsistsprimariarily ofproject finance ance,, principaall investments, regulatorsintheUnitedStatesandother jurisdictions, includingIndia, haveimplementedanumber of policymeasuresdesigned assetmanageme managementnt,financialmarketsandinvestment entbankingand gandadvi advisoryservi oryservices,principalaly relatingto theinfrastructuresectorin toadd toaddstabi stabilitytothefi ytothe finan ancicialmarkets. markets. How However ever, theoverallimpact pact of thes theseand eandothe otherr legislativeandregulatotoryeffortson ryeffortsonthe the India. Infrastructurefinancingischaracterizedbyproject-specificrisksaswell asgeneral risks. Theserisksaregenerallybeyondour  global financial marketsisuncertain, andtheymaynot havetheintendedstabilisingeffects. Furthermore, pre-emptiveactions control,andinclude:  political, regulatory andlegal actionst ns that mayadverselyaffect project viability; interrup rrupttionnorordidisruptionin domest domesticororiinternat rnationalfinancialmarkets,whetherforequi r equityorordebt debtfunds; changesinourcreditratings; changesingovernment andareducti takenbytheRBIonininpol responset icyrates, yrateso,tmaynot hemarketconti condi nuei ueitionnsithefutureandtherecanbenoassu thefutureandtherecanbeno nthesecondhalf of fiscal 2009, assuranc especi rancethat ethat alythwewi eprovil sbeabl ionof eliqtotoacce uidaccessthe itysupport ssthe andregulatorypolicies; delaysinimplement mentationof gove governme rnmentntplansandpolicies; delaysinobtainingregulatoryapproval ryapprovalsfor, and financial marketsfor liquidityif needed. Intheevent that thecurrent dificult conditionsintheglobal credit marketscontinueor if  theconstructionandoperat nandoperationof, projects; adverssechangesi echangesinmarketdema demandor ndorpripricesfortheeprodu productctsororservi serviceeststhat theproject, thereare therearechan changesi gesin statu statutoryl torylimitationson the theam amoun ountt of liquidityywemust wemust mai maintainor if thereis anysignifican antt financi ancial whencomplpleted,isexpectedtoprovide; theunwilingnessor whencom gnessoriinabilityof consu consumerst merstopayforriinfrastruct uctureservices; shortaggesof esof, or  disruption, suchconditionscouldhaveanadverseeffect onour business, prospects, resultsof operationsandfinancial condition. adversepricedevelopmentsfor, rawmaterialsandkeyinputssuchasmetals, cement, steel, oil andnatural gas; unavailabilityof  7.Wehavesignificantexposuretocertainsectorsandtocertainborrowersandifcertainassetsbecomenon-performing, financingat favourabl vourable terms, rms, ororatat all; potentntial defaults under under financingarrangemen garrangementts with ourlenders ndersandi andinvestors; potential the quality of our asset portfolio may be adversely affected.:As Asofof November November 30, 2011, 2011, our three reellargest sector-wise defaultsunderf under financingarrangements with ourborrow our borrowers ersorortthef e failureof re of thirdpart d partiesto performtheir contrac acttual obligations; ns; exposureswereintheenergy, telecommunicationsandtransportationsectors, whichintheaggregateconstituted89.0per cent. emergenceof emergenceofstrongorlargecompetitorsseleligibleforrbene beneffitsthat wearenoteligible for; adversedevelopmentsintheoverall economic ofourtotalexposureof ` 654,949.6milion, folowedbythecommercial andindustrial infrastructuresectors, whichconstituted11 environment inIndia; adversel seliquidity,interestrateororcurren currencyexchang cyexchangerat eratefluctuationsorchangesinfinanciaorort l taxregulationns;s;and per cent. Additionally, our concentrationwithinthesesectorswasalsosignificant. Anynegativetrendsor adversedevelopments econ economi omic,politicalandsocialinstabilityororoccurre occurrencessuchasnat ncessuchasnaturaldisasters,armedconflictandterroristattacks,particularlywhere intheenergy, transportation, telecommunicationsandthecommercial andindustrial infrastructuresectors, particularlythosethat pro projjectsarelocated cated orin themark themarketstheyare etstheyareiintende tendedd toserve.Tothe Totheexte extentnt these these orotherrisksrelating toour toouracti activitiesin the mayaffectourlargeborrowers, rgeborrowers,couldincreasethel creasethe levelofnon-perform non-performiingassetsi gassets in ourportfo portfollio andadvers andadverselely affect affectour  infrastructureresect sectormaterialize, thequality of ou ourr assetportfolioand ourbusiness, pro prospect spects,resultsof operationnss andfi nancial businessand financial performance. rmance. For theefforeseeablefuture, we we expectto continueto uet o havea significant concentrationof  conditioncouldbeadverselyaffected. assets assetsiin thes thesee sectors sectorsandto andto certai certain borro borrowers wers.. Furth Further, er,asof as ofNovember November30,2011,ourtenl ten largest rgestsingle borro borrower wers in the  2. The The private vateinfrrastr astruuctu cture re deve develo lopm pmen entt inndust dustry ry in InIndiais diais stillllat arelat atiivel vely ea early stage of de deve velo lopm pmen entt and and is aggregateaccountedfor 25.0per cent. of our total exposureandour tenlargest borrower groupsintheaggregateaccountedfor  linked to the continued growth of the Indian economy, the sectors on which we focus, and stable and experienced  41.9per cent. of our total exposure. Credit lossesonour significant singleborrower andgroupexposurescouldadverselyaffect regulatory regimes.: Altho houghi ughinfrastructurei frastructureis a rapidly grow growiingsectorin India, webelievethat thefurtherdeveloppme mentntof  our businessandfinancial performanceandthepriceof our Tranche2Bonds. Inaddition, at present amajorityof our incomeis India’sinfrastructureisdependent upontheformulationandeffectiveimplementationof programsandpoliciesthat facilitateand intheformof interest incomereceivedfromour borrowers. Anydefault byour largeborrowersmayhaveanadverseimpact on encourageprivatesector investment ininfrastructure. Manyof theseprogramsandpoliciesareevolvingandtheir successwil our liquiditypositionandresultsof operations. dependonwhether theyaredesignedtoproperlyaddresstheissuesfacedandareeffectivelyimplemented. Additionally, these 8. As aconsequence of our being regulated as an NBFC and an IFC, we will have to adhere to certain individual and  programswil needcontinuedsupport fromstableandexperiencedregulatoryregimesthat not onlystimulateandencouragethe borrower group exposure limits under RBI regulations and any material changes in the Indian regulations could  continuedmovem ued movement ent of private capital into infrastructureredevel developm pment ent, but alsol o leadt ad to increased creasedcompe compettition, appropri appropriate materi materiallyaffectourbusiness ess..; Inadditiontobeingapublicfinancial institutionunder theCompaniesAct, sinceAugust 2006 allocationof risk, transparency, effectivedisputeresolutionandmoreefficient andcost-effectiveservicestotheendconsumer. ourCompan Companyy hasbeenregulatedbytheRBI tedby theRBIas anNBFCandas anNBFCand asaa systemi systemicalaly important portantnon-dep non-deposi ositaccep acceptitingNBFC Theavailabilityof privaatecapi tecapitalandthecontinue uedgrowthof dgrowthof theinfrastru frastructuredeve cturedevellopm pment entindu i ndustryi stryin Indiaarealsolinkedto pursuant toanotificationdatedDecember 13, 2006. Wearealsosubject totheregulationspassedbySEBI inrespect of certain continuedgrowthof theIndianeconomy. Manyspecificfactorswithineachindustrysector mayalsoinfluencethesuccessof the activitiesthat wecarryon.Inaddi In addition,we wearesubj aresubjectgen general erallytochangesi tochangesin Indianlaw,aswellastochan asto changesi gesinregulationand projects ctswiwithinthosesectors,includidingchan g changesi gesin policies, regul regulatoryframew toryframeworksand orksandma market rket struc structures tures.. Anysudden Anysudden and government policiesandaccountingprinciples. Wealsoreceivecertainbenefitsfrombeingnotifiedasapublicfinancial institution adversechang adversechangeiein thepoliciesrelatingto sectors, sectors,inwhichwe hweiintendto tendtoiinvest, vest, mayleaveuswithunutilizedcapi edcapital andinterest terest und underer theCompani theCompaniesAct andby andbyvivirtueof ope operati ratingin theinfrastructuresecto frastructuresector.r. Interm In termss of theNon-Banki theNon-Banking Financi ancial(Nonanddebt obligationstofulfil. Whiletherehasbeenprogressinsectorssuchasenergy, transportationandtelecommunications Deposit Accept Acceptinggoror Holding) Compani CompaniesPrudential Norms(ReserveBank) Norms(Reserve Bank) Directions, 2007, 2007, asamend as amended ed(t(thee“Pruden “Prudenttial andinformationtechnology, other sectorssuchaswater andsanitation, irrigationinfrastructure, havenot progressedtothesame Norms Norms Reg Regululationns”) s”)ourCompanywas Companywasrequ requiiredto change changethemanne themannerrof calcululatingits exposurel exposurelimits.In thepas the past,t,our  degreee.e.Further, sinceinfrastructureservi frastructureserviceess in Indiahavehistoricallybeenprovidedby edbythecentral thecentral andstategove andstate governm rnments ents Companyhadexceededtheexposurelimitsfor individual andborrower groupsincertaincasesandaleter toensurecompliance without chargeor at alowchargetoconsumers, thegrowthof theinfrastructureindustrywil beaffectedbyconsumers’income withtheexposurenormswasissuedtoour CompanybytheRBI. Further, onJune23, 2010, our Companyhasbeenclassified levelsandtheextent towhichtheywouldbewilingtopayor canbeinducedtopayfor infrastructureservices. Thiswoulddepend, asanIFCbytheRBI, whichclassificationissubject tocertainconditionsincluding75.0per cent. of thetotal assetsof suchNBFC toalargeextent, onthequalityof servicesprovidedtoconsumers. If thequalityof infrastructureservicesprovidedtoconsumers, beingdeployedininfrastructureloans(asdefinedunder thePrudential NormsRegulations), net ownedfundsof ` 3,000.0milion over whichwehavenocontrol, arenot asdesired, incomefrominfrastructureserviceswoulddecline. Thiswouldleadtoa ormore,aminimumcreditratingof“A”oranequivalentcreditratingofCRISIL,FITCH,CAREorICRAoranyotheraccrediting decreaseindemandfor infrastructurefinancing, whichinturncouldadverselyaffect our businessandoperations. If thecentral ratingagencyandacapital torisk-weightedasset ratioof 15.0per cent (of whichtier I capital isover 10.0per cent). AsanIFC, our  andstategovernments’ initiativesandregulationsintheinfrastructureindustrydonot proceedinthedesireddirection, or if there singleborrower limit for infrastructurelendingis25.0per cent. comparedto20.0per cent. for anNBFCthat isnot anIFC, andour  isanydownturninthemacroeconomicenvironment inIndiaor inspecificsectors, our business, prospects, resultsof operations singlegrouplimitforinfrastructurel frastructurelendingis 40.0percent.compare comparedd toto25.0per 25.0percent.foranNBFCthatis notanIFC.Our  andfinancial conditioncouldbeadverselyaffected. Compan Company’y’s inabilityto continue uebei beingclassifiedas anIFC mayimpact our growth growthandexpansi andexpansion plansby affecting our   3.As part partofou ourr ggro rowwthstraattegy, egy,wehavedivversif ersified iedou ourr bu busin sines esss op oper eratio tions nstoincre increaasethe theempha phasis onfe feee-base based  d  competitivenessinrelationtoour Company’scompetitors. Intheevent that our Companyisunabletocomplywiththeexposure revenue streams such as asset management, financial markets, and investment banking and advisory services. Our  normswithinthespecifiedtimelimit, or at all, wemaybesubject toregulatoryactionsbytheRBI includingthelevyof finesor  diversificationledgrowthinitiativesaresusceptibletovariousris ks tha thattmaylimitourggrowth rowthand anddiversification.O: ur  penaltiesand/or thecancellationof n of our registrationasanNBFCor nasan NBFCor IFC. Our Companycannot Companycannot assureyou assureyoutthat it maynot breach businessstrategyinvolvessubstantial expansionof our current businesslines, aswell asdiversificationintonewbusinessareas. theexposurenormsinthefuture. Anylevyof finesor penaltiesor thecancellationof our registrationasanNBFCor IFCbytheRBI Ouraimis topreserveourmarke markett positionas aninfrastru frastructurel cturelende nderr ofchoiceandto alsoincrea creasethe sethenon non-i-interest estandfee- duetothebreachof exposurenormsmayadverselyaffect our business, prospects, resultsof operationsandfinancial condition. earningaspectsof our business. Our growthinitiativescarryexecutionrisks, andfactorsthat maylimit thesuccessof our growth At present, certainof our businessandexpansionplansarecontingent uponour IFCstatus, andcouldbeaffectedintheevent anddiversificationinclude: significantdemandsonourmanagementaswell asourfinancial, accountingandoperatingresources. weareunabletomaintainIFCstatus. Further, asanIFC, wewil havetoconstantlymonitor our Company’scompliancewiththe Aswegrowanddiversify, wemaynot beabletoimplement our businessstrategieseffectivelyandour newinitiativescoulddivert necessaryconditions, whichmayhinder our futureplanstodiversifyintonewbusinesslines. Pursuant tocurrent regulationson management resourcesfromareasinwhichtheycouldbeotherwisebetter utilized; ourinabilitytoidentifysuitaablbleprojectsi ctsin the prud prudenti entialnorms norms issued sued by bytheRBI, theRBI,our Compan Companyy is requ requiiredto compl complywith other other norms suchascap suchas capiitaladequa adequacy, cy,credit future, particularlyfor our principal investments, privateequity, project equityandinfrastructuredevelopment businesses. ou our r  concentrationanddisclosurenormsalongwithreportingrequirements. Wecannot assureyouthat wewil beabletocontinueto limitedexperienceinthesenewbusinesses,whichmaypreventusfromcomp usf romcompetetingeffectivelywith establishedandnewcomp hedandnewcompetetitors complywithsuchnorms, andnon-compliance, if any, maysubject ustoregulatoryaction. Further, anyamendmentsor other  intheseareas. Wewil facesignificant competitionfromcommercial banks, investment banks, privateequityandventurecapital changestotheregulationsgoverningusmayrequireustorestructureour activitiesand/or incur additional expensesincomplying firmsandestablishedinfrastructuredevelopers. Asweseektodiversifyour businessoperations, wewil facetheriskthat some withsuchlawsandregulationsandcouldmaterialyandadverselyaffect our business, financial conditionandresultsof operations. ofourcompetitorsmaybemoreexperiencedinorhaveadeeperunderstandingofthesebusinessesorhavebetterrelationships TheRBI isintheprocessof institutingseveral changesinregulationsapplicabletoNBFCs, includingincreaseinrisk-weights on withpotential clients; and diversifiedbusinessoperationsmaymakeforecastingrevenueandoperatingresultsdificult, which certain categoriesof s of loansf ans for comput computation of capital adequacy, increase creaseiin general provisioningrequi g requiremen ementts for various impairsour abilitytomanagebusinessesandshareholders’ abilitytoassessour prospects. If weareunabletoovercomethese categoriesof assets, changei changein capital requi requirements,accountingnormsf gnorms for securi securitization, increasein regulatedinterest rates, obstaclesandareunsuccessfulinexecutingourdiversificationandgrowthstrategy,ourbusiness,prospects,resultsofoperations changeinlimitsoninvestmentsingroupcompanies, singlepartyandgroupexposurelimitsonlending/investment anddirected andfinancialconditioncouldbeadverselyaffected.Further,onJune23,2010,theRBIclassifiedourCompanyasanInfrastructure lendingrequirements. TheCompetitionAct, 2002, aseffective, mayimpact alsoour business. FinaanceComp nceCompany any,, orIFC.In order orderto maintainsuch suchstatu status,s,wearerequi we arerequireedd tokee to keepp a minimumpercen umpercentageof tageof totalassets 9. We are affectedbyvolatilityin interest rates for both our lending andtreasuryoperations, which couldcause our net  continuouslydeployedininfrastructureloans. Thismayrestrainusfromdiversifyinginanddevelopingother businesssegments. interest income to decline and adversely affect our return on assets and profitability.:Our Our busi businessi ess is depende dependentnt on 4. If we are unable to manage our rapid growth effectively, our business, prospects, results of operations and financial interest incomefromour infrastructureloans. Accordingly, weareaffectedbyvolatilityininterest ratesinour lendingoperations. condition could be adversely affected.:Our businesshasgrownrapidlysincewebeganoperationsin1997. Fromfiscal 2009 Being a non non-dep -deposi ositaccepting NB NBFC, FC,our Compan Companyy is exposedto exposedto grea greater terinterestrateri rate riskcompa kcomparedto redto banks banks ordeposit tofiscal 2011, our balancesheet, total incomeandprofit after taxonaconsolidatedbasisincreasedat acompoundedannual acceptingNBFCs. Interest ratesarehighlysensitivetomanyfactorsbeyondour control, includingthemonetarypoliciesof the growtchcoul hratedofpla26.cesi4per 16.5per cent., and30. y. Weihnerteinndtternal ocontrisinkcont uetogrowour , deregulationof thefinancial sector inIndia, domesticandinternational economicandpolitical conditionsandother factors. whi gnificcent ant.,demandsonour operat7ioper nal,cent credi.,trespect , financiiavell andot rols. Ourbusi growtnessrapi hmayaldslyo, RBI Duetothesefactors, interest ratesinIndiahavehistoricallyexperiencedarelativelyhighdegreeof volatility. If interest ratesrisewe exert pressureont pressureon theeadequa adequacycyofof our capitalization, maki makingmanag g management ement ooff asset quality increasingly important. Our Our asset mayhav mayhavegreater egreaterdifficuulltyin maintaininga loweffectivecost ecost offund fundscompa scomparedto redtoour ourcompeti competitoorswhi rswhichmayhaveacces hmayhaveaccessto sto grow growththwiwil be bepri primarilyfundedby theissuance suance ofnew newdeb debttandocca and occasisional naly,newequity.Wemayhave Wemayhavedidifficuulltyyobta obtaiining low-cost deposit funds. Further, incaseour borrowingsarelinkedtomarket rates, wemayhavetopayinterest at ahigher rateas fundingonsuitabletermsor at all. Asweareasystemicallyimportant non-deposit acceptingNBFCanddonot haveaccessto comparedtoother lenders. Fluctuationsininterest ratesmayalsoadverselyaffect our treasuryoperations. Inarisinginterest rate deposits, our liquidityandprofitabilityaredependent ontimelyandadequateaccesstocapital, includingborrowingsfrombanks. environment, especialyif theriseweresuddenor sharp, wecouldbeadverselyaffectedbythedeclineinthemarket valueof our  Incre Increasei asein deb debtt wou woulldleadtol ad toleverag veragiingthebalanceshee ncesheet,t, exerti exertingpress gpressureonthe ureonthefifinanci ancialcovenan covenantsthat tsthat wearerequired securitiesportfolioandother fixedincomesecurities. Inaddition, thevalueof anyinterest ratehedginginstrumentswemayenter  tomaintainunder under ourvariousloanagreem anagreements ents.. Wecann Wecannotot assureyou assureyouthat thatwewou we woulld conti continuetobei ueto bein com complplianncewi cewithhlloan intoin thefuturewouldbeaffectedby beaffectedbychan changesi gesiniintere ntereststrates rates.. Wh Wheni eninterest terest ratesdecline,wearesubjecttotogrea greater terrepricing agreement agreements’condi ’ conditions. Anydefault undera loanagreem an agreement ent mayl mayleadt eadtoo anadversei an adverseimpact mpacton onour our financial condi conditionnand and andprepayment risksasborrowerstakeadvantageof theattractiveinterest rateenvironment. Whenassetsarerepriced, our  results of operations.Theexposure Theexposure(bot (both lendingand g andiinvestmen entt, includingoff balannce cesheet sheet exposure exposures)s) of a bankt banktoo IFCs spre spreadon adon our loan ans,s, whichis thedifference ference betw betweenour eenour averageyi averageyield onloans ansandour andour averagecost averagecost of funds, cou coulld be cannot exceed15.0per cent. (the“SpecifiedExposureLimit”) of thebank’scapital fundsasper suchbank’slast auditedbalance affected. Duringperiodsof lowinterest ratesandhighcompetitionamonglenders, borrowersmayseektoreducetheir borrowing sheet.Banksmay,however,assumeexposu assumeexposurest resto IFCsupto 20.0percent.provided,however, however,thataabank bank’’sexposurein excessof  cost byaskinglenderstorepriceloans. If werepriceloans, our resultsmaybeadverselyaffectedintheperiodinwhichthe theSpecifiedExposureLimitisonaccountoffundson-lentbytheIFCstotheinfrastructuresector.Banksmayalsofixinternallimitsfor  repricingoccurs. If borrowersprepayloans, thereturnonour capital maybeimpairedasanyprepayment premiumwereceive theiraggregat aggregateexposuretoall NBF NBFCs(i Cs(includingIFCs)putttoget ogether.Althou ought ghtheSpecifiedExposureLi dExposureLimitisin excessofthepermited maynot fulycompensateusfor theredeployment of suchfundselsewhere. Further, themajorityof theloansprovidedbyusare bankexposurel bankexpo surelevelstoNBFCsthatarenot IFCs,therestrictionsapplicabletousmayimpactourability toobtainadequat adequatefundingfrom long-terminnatureandmaynot haveescalationclausesandmaybeonafixedratebasis. Anyincreaseininterest ratesover the Indianbanks. nbanks. Furtheer,r,ourgrowthalsoincreasest creasesthechal e challengesi ngesinvolvedinpreservingauniformculture,valuesandworkenviron onmen mentt; dura duratitionof suchloansmayresultin uslosinggiintere tereststincome come.. Ourinabi abilityytotoeffec effectitivelyandeffi and efficientlymanag managee intere tereststrate anddevelopingandi gand improvi provingour interna rnall admi administrativeeiinfrastruc uctture.Addressi Addressingthe challeng nges esariarisingfrom omourgrowt ourgrowth entails variationsmayadverselyaffect our result of operationsandprofitability. substantialseniorrllevelmanage managemen mentt timeandresour eand resourccesandwoul esand wouldput significan antt demandson demandsonourmanage ourmanagemen mentt teamandother  10.Wecannotassureyouthatwewillbeabletoadequatelymanageourinterestrateriskinthefuture,andourinability  resources. ces.Aswegrowanddiversify,wemaynotbeabl be ableto implement,man manageorexecut ageorexecuteour ourststrategyef gyefficiently inaattimelymanner  manner  todosomayhave haveanadverse adverseeffectonournetinterest ter estincome. Wecouldface faceasset-liabi asset-li abilitymis matches,whichcould  orat all, whichcouldadversel adversely affectourbusiness,prospe prospectcts,resultsof operat operations,financialconditionandreputation. affect our liquidity position.:Ourasset-liabilitymanagement policycategorizesall interest ratesensitiveassetsandliabilitiesinto  5.Our Our gro growwthstrategy tegy incl includes udespu pursu rsuiningg stra strate tegic gicalliianc ances esandacqui cquissitio itions, ns,which chmay prove ovedifffificcult ulttomanage nageor  varioustimeperiodcategoriesaccordingtocontractedresidual maturitiesoranticipatedrepricingdates, asmayberelevant ineach may not be successful.: Part of our growthstrategyincludespursuingstrategicacquisitionsandalliances. For instance, we case. Thediferencebetweenthevalueof assetsandliabilitiesmaturing, orbeingrepriced, inanytimeperiodcategoryprovidesthe haveinthele lastfewyearsacqui wyearsacquiredcapab edcapabiilitiesis ininvestmentbanking,institutionalbrokerageandpublicmarketsassetmanagem management ent measuretowhichweareexposedtotheriskof potential changesinthemarginsonneworrepricedassetsandliabilities. Despitethe throughinorganicacquisitions. Although, asof thedatehereof, wehavenot enteredintoanyleter of intent, memorandumof  existenc nceof eof suchmeasures, suchmeasures,ourliquidity positioncouldbeadverselyaffectedby dbytthedevelopmentof anasset-liabilitymisma mattch,which understan understandidingor othe otherr contrract actfor anysuchacquisition or alliance, nce, wecontinueue toseek toseeksuchstrateg suchstrategiic acqui acquisitionsin future future.. couldhaveanadverseeffectonourbusi on ourbusiness,prospect prospects,resultsof operat operations,financialconditionandassetquality. However, wecannot assureyouthat wewil beabletoconsummateacquisitionsor alliancesontermsacceptabletous, or at all. 11. The infrastructure financing industry is becoming increasingly competitive and our growth will depend on our  Inparticular, anacquisitionor allianceoutsideIndiamaybesubject toregulatoryapprovalswhichmaynot bereceivedinatimely abilitytocompeteeffectively.:Compet Competitionin ourindustrydependson,amongotherthings,theeongoi ongoingevolutionofGovernment Government manner, or at all. Inaddition, wecannot assureyouthat theintegrationof anyfutureacquisitionswil besuccessful or that the policiesrelatingtotheindustry, theentryofnewpa newpartirticipaantsi ntsintotheindustryandtheextent dustryandtheextenttowhichthereisconsol consolidationam namong ong expectedstrateg expectedstrategiic ben benefiefitsor synergi synergiesof anyfutureacquisitionsor ns orallianceswil berealized.Acqu Acquiisitionsor allianc nces esma mayy banks, financial institutionsandNBFCsinIndia. Our primarycompetitorsarepublicsector banks, privatebanks(includingforeign involveanumber of special risks, including, but not limitedto: outflowof capital asconsiderationof acquisitionandtemporary banks), financial institutionsandother NBFCs. Manyof our competitorsmayhavelarger resourcesor balancesheet sizesthan unavai lity ofsincapi carelpiatatilontfoor ftihnecont ancinigoperat gnuioperat ions; adverseshort-termeffectson adve rseshort-termeffectsonour our reportedoperati reportedoperati resu resullts;inheri higher than  banks. us. AddiOur tionalabily,lisityntoceour rictedaccesst comparihofsontour o anticipatlaebidcost ngsupport anddevel opment of acquiredcompani esor businngesses; tanceof competCompanyi eeffectivelsyanon-deposi isdependentt accept onourinabigNBFC, litytomaiwemayhaverest ntainaloweffectivecost of funds.ocapi Wittahlthinegrowt only risks that we currently face. Additional risks and uncertainties not known to us or that we currently believe to be immaterial may also have an adverse effect on our business, results of operations and financial condition. If any of the following or any other  risks actually occur, our business, prospects, results of operations and financial condition could be adversely affected and the price of, and the value of your investment in, the Tranche 2 Bonds could decline and you may lose all or part of your investment. The financial and other related implications of risks concerned, wherever quantifiable, have been disclosed in the risk factors mentioned below. However, there are certain risk factors where the effect is not quantifiable and hence has not been disclosed in such risk factors. The numbering of risk factors has been done to facilitate the ease of reading and reference, and does not in any manner indicate the importance of one risk factor over another. You should not invest in this Issue unless you are prepared to accept the risk of losing all or part of your investment, and you should consult your tax, financial and legal advisors about the particular consequences to you of an investment in the Tranche 2 Bonds. Unless otherwise stated, our financial information used in this section is derived from our audited consolidated financial statements under Indian GAAP. RISKS RELATING TO OUR BUSINESS

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competitors, wemaynot beabletooffer competitiveinterest ratesfor our infrastructureloans. Thisisasignificant challengefor us, astherearelimitstothe s totheexten extenttto whichhigher hercostsof fundscan fundscanbepasse bepassedon dontoborrow toborrowers, ers,thuspoten thuspotentitialyaffectingournet interestincome i ncome.. Wealsof o facesignificant compet competitionin thepublicmarketsassetmanagemen managementt,iinvest nvestmentbankingandinstitutional brokerageandi brokerageandinfrastructuredevelopmentbusinesseswhi esseswhichwehaveacquiredorestablishedovert hedoverthele lastfewyears.Ourcomp Ourcompetetitors inthesebusinessesmaybesubst essesmaybesubstantialylargerandmayhavecon rgerandmayhaveconsisiderabl erablygreaterfinancingresou gresourcest rcesthanthoseavailabblleto us.Also, someof someof ourcomp ourcompetetitorsmayhavegrea rsmayhavegreattertechnical,mark marketetingandotherresourc erresourcesandgreat esandgreaterexperienceinthesebusinesse esses.s.Such compet competitorsalsocompetewithus usfformanage rmanagemen mentt andotherhumanresourccesandoperat esandoperationalresourcesandcapi resourcesandcapital. 12.Wemakeequityinvestments,whichcanbevolatileandmaynotberecovered.: AsofNovember30,2011,thebook valueof our quotedequityinvestmentsaccountedfor 0.7per cent. of our total assets. Thevalueof theseinvestmentsdepends onthesuccessof theoperationsandmanagement andcontinuedviabilityof theinvesteeentities. Wemayhavelimitedcontrol over theoperationsor management of theseentitiesandsomeof theseinvestmentsareunlisted, offeringlimitedexit options. Therefore, our abilitytorealizeexpectedgainsasaresult of our equityinvestmentsishighlydependent onfactorsoutsideof our  control. Write-offs or wwririte-downs -downsiin respect of our our equi equity portfolio could adversely affect oourur busi business, pprospect rospects, results of  operations, financial conditionandasset quality. 13. If the level of non-performing assets in our portfolio were to increase, our business will be adversely affected.: As of November 30, 2011, our grossandnet non-performingloanswere ` 775.5milionand ` 361.5milion, respectively. These represent 0.2per cent and0.1per cent. of our total loanassets, respectively. Our provisionfor contingenciesof 1.6per cent. of  total loanassetsasof November 30, 2011maynot beindicativeof theexpectedqualityof our asset portfolioif risksaffectinga significantportionofourexposureweretomaterializeorgeneraleconomicconditionsdeteriorate.Weexpectthesizeofourasset ass wm m w w m

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INFRASTRUCTURE  DEVELOPMENT FINANCE COMPANY LIMITED

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anumberofreasons,suchasourinabilitytoformulateanappropriateinvestmentstrategy,incorrectpresumptionaboutrisksand benefits, underperformancerelativetomarket indices, competitionor other factors. If our investment strategiesweretogoout of  favour withour clients, it couldpotentialycauseour clientstoreducetheassetsthat wemanagefor them. However, it shouldbe notedthat theclientsmakefirmcommitmentsandcandefault inpayment of their contributions, inwhichcasetheCompanyhas theabilitytoforfeit unitsalreadysubscribedbythemandallot thebalanceunsubscribedunitstoother eligibleinvestor(s), subject toCompanyfindingsuchinvestor(s). Our inabilitytoformulatenewinvestment strategiesor offer newproductspromptlyif market conditionschangeornewopportunitiesarisealsomayadverselyaffectthegrowthofourAUM.AdecreaseinourAUMmayhave amaterial adverseeffect onour business, prospects, resultsof operationsandfinancial condition.

19. We have alimited history with respect to acting as an infrastructure developer and we are subject to all of the business risks and uncertainties associated with commencing anewbusiness in general, and with infrastructure development in particular.:WeestablishedIDFCProjectsLimitedin2007, toact asaninfrastructuredeveloper. However, we

haveverylimitedexperienceindevelopinginfrastructureprojectsand, asof thedateof the Prospectus- Tranche2, wehavea maj majorityinteres terestt inacom a compan panywhi ywhichis settingupa1,050MWcoa gupa1,050MWcoall-firedpow edpowererplantnt inChhattisgarhanda26per cent.stakein acompanywhichhasenteredintoaconcessionagreement withNHAI for thefour laningof theJetpur-Somnathsectionof the NH-8DinGujarat foradistance nceststretchingto 127.6kmon kmonaBOTbasi aBOTbasis. Oursuccessasan successasaniinfrastructuredeveloperwil dep depend, end, amongother amongother thinggs,s, onour on our ab abiility toattrac to attractt andretai and retaintalentedand ntedandexpe experirienced nced personne personnell and andtotobui buildrelationshi nshipsswiwith partnersandco-developers. Wemaynot havecontrol over joint venturesincorporatedfor undertakinginfrastructureprojects.

Limited(HTIL ) for theacquisitionof acontrollingstakeinHutchisonEssar Limited(HEL), anorganizationcalledtheTelecom Watchdogfiledacivil writ petitionbeforetheHighCourt of Delhi allegingbreachof the74per cent. sectoral capfor foreigndirect investmentbyVodafoneinHEL.TheGovernment,alongwith21otherentities,includingourCompanyweremaderespondents under thiswrit petition. Thepetitioner hasallegedthat SMMSInvestmentsPrivateLimited(whichwasheld49per cent. bythe Company, 49per cent. byIDFand2per cent. bySSKI CorporateFinanceLimited(nowIDFCCapital Limited)) holdsits54.21 per cent. investment inOmegaTelecomHoldingsPrivateLimited(whichinturnheld5.11per cent. equityinterest inHEL) asa nomineeof HTIL. OnMay7, 2007, theMinistryof Finance, Government approvedtheacquisitionof acontrollingstakeinHELby Vodafone. However onMay10, 2007TelecomWatchdogfiledanapplicationbeforetheHighCourt of Delhi for therevival of the civil writ petition. TheHighCourt of Delhi issuedrevival noticeandgrantedlibertytoTelecomWatchdogtoamendthewrit petition. TelecomWatchdogfiledwrit petitioninvolvingVodafonealsoasaparty. Thematter ispending. Further, inthepast, IDFCCapital LimitedandIDFCSecuritiesLimitedhavereceivedshow-causenoticesfromtheSEBI andincometaxauthorities. For further  details, pleaseseethesectionentitled“OutstandingLitigationsandDefault” onpage102of theProspectusTranche2.  26  26.. We have havede debt btagre greem emen entsts which chco cont ntainrestr restriict ctiive vecove covena nantss,, placin cingg limita imitations tions onus.: us.:Somedebt Somedebt agreements ente enteredi redinto by bytheCompa theCompany nycont contaaiin restrictiveecove covenan nantstsiincludidinggcerta certaiin restrictionsrelatingto g tothedi thediversification of our  business. Theserestrictionsmayimpedethegrowthof our business. Wehaverecentlysecuredour outstandingborrowingsby afloatingchargeover our receivables. Anyinabilitytocomplywiththeprovisionsof our debt agreementsandanyconsequent actiontakenbyour lenders, includinganenforcement of thesecurity, mayadverselyaffect our business, prospects, resultsof 

Bonds.: InitsUnionBudget for Fiscal Year 2010, theGovernment proposedtwomajor reformsinIndiantaxlaws, namelythe

goodsandservicestaxandthedirect taxescode, whichareproposedtobeeffectivestarting1April 2011and1April 2012, respectively. Subsequently, intheUnionBudget for Fiscal Year 2011, theeffectivedatefor thegoodsandservicestaxhasbeen deferredbyoneyear. Thegoodsandservicestaxwouldreplacetheindirect taxesongoodsandservicessuchascentral excise duty,servicetax,customsduty,centralsalestax, surcharg surchargeandcesscurrent eandcesscurrentlybeingcollectedby dbytthecentralandstate Government Governments. Thedirecttaxescodewasi taxescodewas introd troduce ucedd in Parliament mentin August August2010 2010..It aims toredu to reducedi cedistortionsin taxstructure taxstructure,,introduc troducee modera moderateltelevelsof taxati taxationandexpan nandexpandthe dthetaxbase. taxbase.Thecodeal Thecodealsoai o aimsto provi providegreater egreater taxclarityandstabilityto ytoiinvestors vestors whoinvest inIndianprojectsandcompanies. It seemstoconsolidateandamendlawsrelatingtoall direct taxeslikeincometax, dividenddi enddistributiontax, fringeben gebenefiefit taxandwealthtaxandfacilitatevoluntarycompl ntarycompliance. nce. Asthetaxationsyste nsystemi mis goingto undergosignificant overhaul, itslong-termeffectsontheCompanyareunclear asof thedateof the Prospectus- Tranche2and therecanbenoassurancethat sucheffectswouldnot adverselyaffect theCompany’sbusinessandfuturefinancial performance. RISKS RELATING TO THE TRANCHE 2 BONDS

 37  37.. The TheTraanch nchee2Bon Bonds dsareclassified iedas “Lo Long ngTermInfra mInfrastr structu ucture reBonds” Bonds”aandeligible igiblefor for ta taxx be bene nefit fits unde underr Se Sect ctioionn 80CCFoftheIncomeTaxActuptoanamountnotexceeding`  20,000intheyearofinvestment.Intheeventthatyour  investment in the Tranche 2 Bonds exceeds`  20,  20,000 in the year of investment, you shall be eligible for benefits under   Se  Sect ction ion80 80CCF CCFofthe theInInco com meTaxActon onlylyfor for anamou ount ntupto`  20,000intheyearofinvestment.:TheTranche2Bonds

areclassifiedas“LongTermInfrastructureBonds” andarebeingissuedintermsof Section80CCFof theIncomeTaxAct andthe

` 20,000,paidor depositedas Addistiokthat wearesubj ect etoveour all of obj thebusi nessrithisnksanduncert aintiemsassoci essent erpri incluodipnor  g  27 Notificatpiotion.ntInoaccordancewi ion80CCFofntgtheIheprevi ncomeTaxAct notexceedingyear operat inioanci condiAStiorn.eepor theri knalthatly, wewi l notachi ectiveswi the theesti estimatedti eperioad,teordwiatthalanynewbusi l.Anyinabilintyto effec effecti tivelse,ydevel long-terminfrastthrSect ucturebondsduri ousyear,relanamount evant toth,eassessment beginningApril 01, 2012  27. . OOur urionsandf transittion n toalIND portting ing ccou ould ldhave haveama amate teria riall adver dversseeefffect ectonou ourr repo reporte rtedd resu resultlts ofof op oper erations tions or  subscri operatetheprojects, whichwearedevelopingor expect todevelop, couldadverselyaffect our business, prospects, resultsof   fina  financ nciaiallco cond nditiition.: on.: OnFebruary25,2011,theMinistryofCorporateAffairs,Government,ofIndia(“MCA”),notifiedthattheIND shall bedeductedincomputingthetaxableincomeof aResident Individual or HUF. Intheevent that anyApplicant appliesfor the operationsandfinancial condition. ASwil beimplementedinaphasedmanner. It wasalsomentionedthat thedateof implementationof INDASwil benotifiedby Tranche2Bondsinexcessof ` 20,000intheyear of investment, theaforestatedtaxbenefit shall beavailabletosuchApplicant  20.  20.Any Anyinfra infrastr struuctu cture reproje project cts wedeve develo loppwillre requ quire iresignific significaantca capipittalalexpe expend nditu iture refo forr which chwewillrequ require ireadd dditiitiona onal theMCAat alater date. Asof thedateof the Prospectus- Tranche2, theMCAhasnot yet notifiedthedateof implementationof  onlytotheexte tothe extentntof` 20,000intheyear of investment. capital. If we are unable to obtain the necessary funds on acceptable terms, our growth plans could be adversely  INDAS. Additionally, INDAShasfundamental diferenceswithIFRSandhencefinancial statementspreparedunder INDAS  38  38.. Ther Thereha hass bee beennnopriioror pub publilic market rket for for the heTra ranc nche he2Bonds Bondsanditmay no nott de deve velo loppinth theefutu future re,, andth theeprice ice affected.: Our fundingrequirementsfor infrastructureprojectsthat weseektodevelopthroughIDFCProjectsLimitedarelikely ma volatitile.: TheTranche2Bondsunder the Prospectus- Tranche2havenoestablishedtrading mayy besubstanti besubstantialydifferentfromfinanci ancial state stateme mentsprepare ntspreparedd und underer IFRS. IFRS. There Therecanbe canbenoassuran noassurancethat cethat thefinancial oftheTranche2Bonds maybevola tobesubstantial, andour abilitytofinancetheseplansaresubject toanumber of risks, contingenciesandother factors, someof  condition, resultsof operations, cashflowor changesinshareholder‘sequityof theCompanywil not appear materialydiferent market. Moreover, theTranche2BondsissuedinthisIssuearesubject tostatutorylock-infor aminimumperiodof fiveyearsfrom whicharebeyondour control, includingavailabilityof liquidity, general economicandcapital marketsconditionsandour abilityto under INDASthanunder IndianGAAP. Asour CompanyadoptsINDASreporting, it mayencounter dificultiesintheongoing thedateof Allotment. Notradingmarket wouldexist or beestablishedfor theTranche2BondsissuedinthisIssuefor theLockobta obtaiin finan ancicingon gonacce acceptab ptablle term terms,s,in a timelely manne manner,r,or atall. Furth Furtherm ermore, ore,adve adversedevel rsedeveloppmen mentstsiin theIndiancredit processof implementingandenhancingitsmanagement informationsystems. Moreover, thereisincreasingcompetitionfor the InPerioddespitetheTranche2BondsbeinglistedonNSEandBSE. Evenafter theexpiryof theLock-inPeriod, therecanbeno marketsor marketsor a redu reducedpercep cedperceptitionin thecreditmarketsof ourcreditwworthi orthinesscouldincreaseourdebtservicecostsandthe ecostsand the small number of INDAS-experiencedaccountingpersonnel availableonceIndiancompaniesbegintoprepareINDASfinancial assurancethat apublicmarket for theTranche2Bondswoulddevelop. Theproposedtaxchangestotheincometaxregimeby overallcostofourfunds.Additionally,duetothenumberoflargescaleinfrastructureprojectscurrentlyunderdevelopmentinIndia statements. Therecanbenoassurancethat theadoptionof INDASbytheCompanywil not adverselyaffect itsreportedresults introductionof thedraft Direct TaxCode(“DTC”) mayresult inextinguishment of benefitsavailableunder Section80CCFof the andincreasedlendingbybanksandfinancial institutionstosuchprojects, wemaynot beabletoreceiveadequatedebt funding of operationsor financial conditionandanyfailuretosuccessfulyadopt INDASinaccordancewiththeprescribedtimelinescould IncomeTaxAct. Thismayresult innofurther issuanceof theTranche2Bondsafter DTCisapprovedbytheGovernment of India. oncommercialyreasonableterms. Wecannot assureyouthat debt or equityfinancingor our internal accrualswil beavailable haveamaterial adverseeffect onour financial positionandresultsof operations. Althoughanapplicationhasbeenmadetolist theTranche2BondsonNSEandBSE, therecanbenoassurancethat anactive or sufficient tomeet our capital expenditurerequirements. Our abilitytoobtaintherequiredcapital onacceptabletermsissubject RISKS RELATING TO THE INDIAN ECONOMY publicmarket for theTranche2Bondswil develop, andif suchamarket weretodevelop, thereisnoobligationonustomaintain toavarietyof uncertainties, including:  limitationsonour abilitytoincur additional debt, includingasaconsequenceof regulatory  28 sucha markket. et.Theliquidityandmarke yandmarkettpricesof theTranc theTranche2 he2 Bondscan Bondscanbeexpecte beexpectedd tovarywi tovary withchang hchangesi esin market marketand  28.. A slo slowwdow down inec econ onom omic grow growthinIndi Indiacoul acouldcause causeour our busi businness ess to beadver dversely selyaffect ffecteed.:d.:Weandmost Weandmost of our  suchamar andcontractualrestrictionsandprospectivelenders’evaluationsofourcreditworthinessandpursuanttorestrictionsonincurrence sub subsisidiariesare sareiincorpporatedi oratedin India, andsubstanti andsubstantialyall ofourassetsandemployeesarelocatedi catedin India. Asaresu Asa resullt, weare economicconditions, our financial conditionandprospectsandother factorsthat generallyinfluencemarket priceof Tranche2 of debt inour existingandanticipatedcredit facilities; limitationsonour abilitytoraisecapital inthecapital marketsandconditions highhlly dep Bonds.Suchfluctuationsmaysignifican antltly affec affectt theliquidityand yandmar market ketpriceof e ofthe theTra Tranche2 nche2Bon Bonds, ds,whichmaytrade hmaytradeatata depend endent entonprevailing econom economiic con condiditionsin Indiaandour resu resulltssofof operati operationnss aresignifican antltly affectedby affectedbyfacto factorsrs Bonds. of theIndian, U.S. andother capital marketsinwhichwemayseektoraisefunds; and our futureresultsof operations, financial influencingtheIndianeconomy. AnyslowdownineconomicgrowthinIndiacouldadverselyaffect us, includingour abilitytogrow discount tothepriceat whichyoupurchasetheTranche2Bonds. Moreover, thepriceof theTranche2BondsontheNSEand condi conditionandcashflows ws..Anyinab abiilityto raisesufficientcapitalal, oranydelaysiysin raisingcapital,tofundourinfras frastructu tructureproj reprojects our asset portfolio, thequalityof our assets, andour abilitytoimplement our strategy. Inrecent years, Indiahasbeenoneof the theBSEmayfluctuateafter thisIssueasaresult of several other factors. couldadverselyaffect our business, prospects, resultsof operationsandfinancial condition.  39.. The Thele lega gall reegigime in respe respect ct of issue issue of lo long ng ter erminf minfrrastr astructu ucture re bo bond ndss ha has bee beenn recen ecentltly intro introdu duce cedd andits fastest growingmajor economiesintheworld, recordingaGDPgrowthrateat factor cost of 8.0per cent. in2009-10and8.6per   39  21.  21. Wearesubje subject cttocre credidit,t,marke rkett andliqquidi uidity tyrisks, risks, andifanysu such chrisk riskss wer weretomate teria rialilizze,e, our our cre credidit ratin ratings gs and  cent. duringtheyear 2010-11. Thecurrent challengesfor theeconomyarehighoil andother commoditypricesandinflation, efficiencyis yettobeesta establi blished.:Thelegal gal regimein relationtoi nto issueoflongterminfra frastruc structurebon turebondswasi dswasintrod troducedi ucedinthe our cost of funds could be adversely affected.: Totheextent anyof theinstrumentsandstrategiesweusetohedgeor  whichfolowedbyRBI’santi-inflationarymonetarystance, hasthepotential tomoderategrowth. Aslowdownintherateof growth FinanceBil of 2010, alongwiththetaxbenefitsuponinvestment, initialyfor thefinancial year endingMarch31, 2011andwas othe otherwi rwisemanageour emanageourexposureto exposuretomar markketetorcreditrisks ksarenot arenoteffectivee,, wemaynotbe abletomi to mitigaateeffecti teeffectivelyourrisk intheIndianeconomycouldresult inlower demandfor credit andother financial productsandservicesandhigher defaults. Any subsequent subsequently extendedfor theeffinancial ye yearar endingMarch31, g March31, 2012pursuant tothe FinanceBil of 20 2011. 11. Pursuant Pursuant tothe exposuresinparticular market environmentsor against particular typesof risks. Our tradingrevenuesandinterest rateriskare slowwdow anceissuedtermsandconditionnss requi requiredfor issuanceof suanceof longterminfrastruc frastructurebonds turebonds.. We downinin thegrowthorneg negatiativegrowthhofof sectorswherewehavea sectorswherewehavea relativelyhigherexposur exposureecoul couldadverse adverselly impact pact our  Notification,n, theMinistryof Financei depend dependent entuponour abilityto properl properlyidentify,andmarkto market, market,chang changesi esin thevalueof finan ancicialinstrumentscausedby strumentscausedby performance. Anysuchslowdowncouldadverselyaffect our business, prospects, resultsof operationsandfinancial condition. cannot cannot assureyou assureyouthat thatthe thetaxbenefi taxbenefitsoffered soffered for investme vestmentnt in longterminfrastru frastructurebond cturebondss woul would becontinuuedi edin future future.. changesinmarketpricesorrates.Ourearningsaredependentupontheeffectivenessofourmanagementofmigrationsincredit  29  29.. Inncre creaase sedd vola volatil tiliity tyor ininflflatio tionn ofcom commodity oditypriices ces inIndiaco Indiacoul uld adver dversely selyaffect fectthe the Com Compa pany ny’’s busi businness.: ess.:In her, wecannotassu assurereyouthat youthatany anyothe otherr compan companyy woul would beissuinginfrastructurebond frastructurebondss in future andthata market marketfor  In Further qualityandriskconcentrations, theaccuracyof our valuationmodelsandour critical accountingestimatesandtheadequacyof  recent months, consumer andwholesalepricesinIndiahaveexhibitedmarkedinflationarytrends, withparticular increasesinthe infras frastructu tructurebondswoul rebondswouldbedevelopin future future.. our allowancesfor loanlosses. Totheextent our assessments, assumptionsor estimatesproveinaccurateor arenot predictive pricesof foodandcrudeoil. InflationmeasuredbytheWholesalePriceIndexdecreasedfrom10.4per cent. at March31, 2010 40. There is no guarantee that the Tranche 2 Bonds issued pursuant to this Issue will be listed on Stock Exchanges in ofactualresults,wecould incurhigherthananticipatedlosses. dl osses.Thesuccessfulman managem agement entofcredit,marketandoperationalrisk to9.7per cent. at March31, 2011. Anyincreasedvolatilityor rateof inflationof global commodityprices, inparticular oil metalsand ati atimely melym manner, anner,oratall.:InaccordancewithIndianlawandpractice, permissionsfor listingandtradingof theTranche2Bonds ●

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iagenci s ani an imes.portant poRat rtantingagenci consi considerati on in managi managiningour yintriesntkbeca kiobecausei useit affects affectstheeval theeval cre credidiet,rati nggss tby byrati esmayreduceor dicateliqthuieidrityri ntoreducet heratingsat anytuimatie.onof Forour exampl oneof heratratiinngg agenci agencieshaddown shaddowngrad gradedour edour debt debt gradi gradingfromAAAtoAA+in July, 2009 2009 andtherecanbe andtherecanbenoassura noassurancethat ncethat wemaynot experi experienncesuchdowng cesuchdowngradei radeinthe thefutur future.e. Theratingagen gagenciciescanalsodecideto etowiwithdrawthei hdrawtheirratinggsal saltogether, ogether,whichmay hav havee thesameeffectas a reducti reductionin ourratinggs.s.Anyreduction in ourratinggss (orwithd hdrawa rawallof ratinggs)s)mayincrease crease our  borrowingcosts, limit ouraccesst accesstoo capital market markets andadversely affect ourability to sell or market ou ourr product products, engagei engageinn businesstransactions, particularlylonger-termandderivativestransactions, or retainour customers. This, inturn, couldreduce our liquidityandnegativelyimpact our operatingresultsandfinancial condition. Inaddition, asanIFC, banks’ exposurestousare risk-w k-weieightedi htedin accordan accordancewi cewith theratingsassigned ned totheComp to theCompanyby anyby theratingagencies registeeredwi redwithhtheSEBI theSEBIand accreediditeedd bytheRB bythe RBI.I. Ourclassificationas nasanIFC anIFCiis depende dependentntuponthe uponthecred crediit ratingweobtainand andma maiintain. Altho houghwe ughwe believethat wehaveadequateri wehaveadequateriskma k manag nageme ementnt policies andproce andprocedure duress in place, ce, wemaystil beexposedto beexposedtouni unidenti entifiedor  unanticipatedrisks, whichcouldleadtomaterial losses.  22.  22. Our Our conso consolid lidaated tedcont contingen ingentt liabillitities ies not notproovide videddfo forr co coul uldadv dver ersely selyaffect ect ou ourr fiina nanc nciaiallco cond nditiition.: on.:Asof AsofMarch 31, 2011, wehadconsolidatedcontingent liabilitiesnot providedfor of ` 23,536.4milion, including ` 7,288.9milionof capital commitmentsand` 12,344.5milionof financial guarantees. Wealsohad ` 1,184.8milionof contingent liabilitiesasonMarch 31, 2011whichincreasedto ` 1,194.1milionof contingent liabilitiesonaccount of incometaxdisputesasonNovember 30, 2011. If thesecontingent liabilitiesfulymaterialize, our financial conditioncouldbeadverselyaffected. For further detailsof our  contingent liabilities, pleaseseethesectionentitled“Financial Statements” beginningonpageF-1of theProspectusTranche2.

 23.  23. Our Our ssuc ucce cess ss is depe depend nden entt up upon onou ourr managemen entt tea teama mand ndskilled ledperso personn nnel elandour our abillitity toattract ractandreta retainin  such  suchperso persons. ns.: Our futureperformancewil beaffectedbythecontinuedserviceof our management teamandour abilityto

attract andretainskiledpersonnel. Wealsofaceacontinuingchallengetorecruit andretainasufficient number of suitablyskiled personnell, pa personne partrticularly as asweut weuti lizet e theexperi e experiencedunderstandingof ou ourr managemen managementt of risksksandopport andopportunitiessassoci associated withour business,and andcon contitinuetogrowandbroa ueto growandbroadenour denourbusinessactivities.Our diversisification strate strategywi gywithhiitssemp emphas hasiis on principalinvestments,loansyndication, institutionalbrokerage,assetmanagement managementandinvest andi nvestmen enttbanking,and andcorporat corporateand advisoryservices, requireshighlyqualifiedandskiledpersonnel. Thereissignificant competitioninIndiafor suchpersonnel, and it maybedifficultto attrac attract,t, ade adequa quateltelycompensa compensateandretai teandretainthe thepers personn onnelel weneedin thefuture.Wedonot ma maiintaina“key man” man”insuranc surancee policy.y. Inab Inabiility totoattrac attractt andretain approopri priatema te manage nageririalpersonn personnelel,or the thellossof keypersonnel keypersonnelcould adverselyaffect our business, prospects, resultsof operationsandfinancial condition.  24.  24. Fo Fore reign igncurre currenc ncyy lend lendiningg oorr bo borro rrowwiningg wil willexpo expose seustofluctu uctuat atiions onsinfo fore reign ignexch exchaangerate rates.: s.:Weareaf Weareaffectedby adversemovementsinforeignexchangeratestotheextent theyaffect our borrowersnegatively, whichmayinturnadversely affect thequalityof our exposuretotheseborrowers. Asof November 30, 2011, wehadforeigncurrencyborrowingsof U.S.$ 937.6 937.6mi milion.n. Wh Whiile wecurrentlyseek seektotohedg hedgee foreign curre currencyexposu ncyexposures, res, asour businessgrows essgrowsandwe andweseekgreate seekgreater r  amountsof foreigncurrencyfunds(for example, asanIFC, wehavegreater accesstoexternal commercial borrowings), we couldbeexposedtoagreater extent tofluctuationsinforeigncurrencyrates. Volatilityinforeignexchangeratescouldadversely affect our business, prospects, resultsof operationsandfinancial condition.

met alproduct dadversel yafafetectdsect theComp e Company’ sborrowersandcont ractualcountsebusi rpart rpartnieess, s.Thisfinmayl mayleadt oslotwdown inthegrowt hofsprithceies,nfrcoul astruct ureandrel orscoulany’dadversel yimpact theCompany’ anciaeadt l condi ionand resultsof operations.

thisIsdocument suewil notsaut begrant after theTranche2Bondshavebeenal Approvaldfobeaf r listainilgandt adianyg wiissuedpursuant l requireall reletovant horisinegtdunt heiisl suanceof Tranche2Bondstobesubmilotteed.d.Therecoul ureorrdel inlistingtheTranche2BondsontheStockExchanges.

miliontonnesofcrudeoil.Crudeoilpricesarevolatileandpriceshaveriseninrecentyearsduetoanumberoffactorssuchasthelevel ofglobalproduct productionanddemandand nanddemandandpol politicalfactorssuchaswarandot rssuchaswar andotherconflicts,particularlyintheeMi MidddlleEast.In June2010,the Governme Governmentnteliminatedsubsidiesonpet son petroleumproducts, whichwil significantlyincreasethepriceof e of gasol gasoline, dieselandkerosene. Anysignificant antincreas creaseiein oilpricescouldadve adversel rselyaffecttheIndianeconomy neconomy,,includingtheinfrastruct ucturesector,andtheIndianbanking andfinancialsystem.Pricesofotherkeyrawmaterials,forexamplesteel,coalandcement,havealsoriseninrecentyearsandifthe pricesofsuchrawmaterialsapproachlevelsthatprojectdevelopersdeemunviable,thiswil resultinaslowdownintheinfrastructure sectorandtherebyreduceourbusinessopportunities,ourf our financialperformanceandourabi rmanceandourability toimpl i mplement ment ourstrategy gy.. Inaddition, natural gasisasignificant input forinfrastructureprojects, particularlythoseintheenergysector. Indiahasexperienceddelaysinthe availabbiility ofnaturalgaswhichhascauseddificultiesintheseprojects.Continueddificultiesinobtainingreliable,timelysupplyofnatural gascould adversel adversely affectsom somee of theeproj projectswef we financeandcoul anceand couldimpact theequal qualityof our our assetportfolioand andourbusi ourbusiness, prospect prospects,results ofoperat operationsandfi nanc nanciial cond condiition.  31  31.. FFininaanc nciaiall ininsta stabiliity tyin othherer cou count ntrries ies ccou ould lddisrupt sruptour our busi businness.: ess.:TheIndi TheIndianmarket nmarket andtheIndianeconom neconomyy are influencedbyeconomicandmarket conditionsinother countries. Althougheconomicconditionsarediferent ineachcountry, investors’reactionstodevel nst odevelopmentsinonecountrycanhaveadverseeffectsontheeconom eeconomyas yasawhol awhole,in othercoun ercounttries,including India.Alossof investorconfidenceinthefinancialsystemsof otheremergi eremergingmark gmarketetsmaycausevolatilityinIndianfinancialmark marketetsand indirectly,intheeIIndianeconomyi neconomyingeneral.Anyworldwidefinancialinstabilitycouldalsohaveanegativeimpacton onttheIndianeconomy, includingthemovementofexchangerat exchangeratessandi andinterestratesin India.Intheevent e eventthatthecurrentdificultconditionsinthegl e globalcredit mark marketetscontinueorif therecoveryyiis slowe wertrthanexpectedorif thereanysignificant antfinancialdisruption,n,thiscouldhaveanadverseeffect onour onourcost costofffundi undingg,,lloanport oanportfolio,business,prosp prospect ects,resultsof operat operationsandfi nancialcondi condition.

Bondsand/or theprincipal amount outstandingfromtimetotimeinconnectiontherewithwouldbesubject tovariousfactors, inter  alia, includingour financial condition, profitabilityandthegeneral economicconditionsinIndiaandintheglobal financial markets.

 30  30.. Signifi Significcant antshor shorta tage gess inth thesu esupp pplylyofcrudeo crudeoililornatu tura rallga gas,s,andothheer rawm rawmaate teria rialsls,, co coul uldadver dversely selyaffectth theIn eIndidian 41. You may not be able to recover, on atimely basis or at all, the full value of the outstanding amounts and/or the economy and theinfrastructuresector, which could adversely affect us.:In fiscal2010,India importedapproximaattely159.26 interest accrued thereon in connection with the Tranche 2 Bonds.:Ourabi abilityytopay topayiintere tereststaccrue accruedd ontheTra onthe Tranch nchee 2

 32  32.. Polit Politiical cal innststabiliity ty or ch chaange ngess in th thee GGov over ernnm men entt ccou ould ldadvers dversel ely aaffffect ect eeco cono nom mic con condit ditions ions in Ind Indiaan iaand  d  consequently consequ ently, ourbusiness.: ess. : TheGove TheGovernm rnment enthastraditional nallyexercisedandcontinuesto uesto exercicisea significantinflueence nce

over manyaspects of theeeconom economy.y. Since1991, ce 1991,successivegovernmentshavepursuedpol have pursuedpolicies of economi economic andf and financial sector liberalisationandderegulationandencouragedinfrastructureprojects. Thecurrent Government, whichcametopower in Ma Mayy 2009, 2009, is a coalition of several severalpolitical parties.Although hough thepreviousGovernm usGovernmentshad entshadann announc ouncedpol edpoliciesandtaken s andtaken initiativesthat supportedtheeconomicliberalisationprogrammepursuedbypreviousgovernments, thepoliciesof subsequent Go Govern vernmen mentstsma mayy changethe changetherateof rateof eco econom nomiic libera erallisation.n. Asignificant ant cha changei ngein theGovernment’ nment’spoliciesin thefuture, particularlyin resp respect ectof thebankingandfinanceindustryand dustryandthei theinfrastructuresector, frastructuresector,couldaffect busi businessandeconom essandeconomiic conditionsinIndia. Thiscouldalsoadverselyaffect our business, prospects, resultsof operationsandfinancial condition.

 33  33.. Ifregio regiona nalhosti hostilliities, ties, te terro rrorist ristattacks tacksorsoc sociaiallunre unreststinIndiain Indiaincre creaase ses,s, ou ourr busin busines esss co coul uldbeadver dversely selyaffecte ected.d.:

Indiahasfromtimetoti eto timeexperi eexperienc ncedsoci edsocialandcivil unre unrestst andhostilities withinitselfandwithneighbouri hbouringcountriess.. India

 25.  25. Weareinvo involvlved edincerta certainlega legall pro proce ceed edinings gs thhat, at,if dete determ rminined edaga gaininstst us,coul couldadver dverssely elyim impa pact ctour our busi businness ess has hasalalsooexperi experiencedterrorist attacksin cksi n someparts of the country.In Novem November ber 2008, several coordinatedterrorist attacks and financial condition.: Wearesubject tocertainsignificant legal proceedingsthat couldadverselyimpact our businessand occurredacrossMumbai, India’sfinancial capital, whichresultedinthelossof life, propertyandbusiness. Thesehostilitiesand

financial condition. These Theseiinclude: We areinvolvedin a number numberof disputespendi putespendingwiththe Inco IncomeTa meTaxx Dep Departm artment entwith respect to incometax assessm assessment ents for theassessm e assessment ent years1997-199 years 1997-1998,8, 1999-200 1999-2000,0, 2000-2001 2000-2001,, 2001-2002, 2001-2002, 2002-2003, 2002-2003, 2003-2004, 2004-2005, 2005-2006, 2006-2007, 2007-2008and2008-2009. Theaggregateincometaxliabilityindisputeis ` 1,194.1milionasonNovember 30, 2011. Infiscal 2004, wesanctionedanddisbursedaloanof `  300.0miliontoDataAccess (India) Limited(“DAIL”) for useinconnectionwithitsInternet serviceprovider business. Asaresult of apromoter disputeanda windinguppetitionfiledbyoneof DAIL’spromoters, theHighCourt of Delhi onNovember 18, 2005awardedawindinguporder  against DAILandappointedanofficial liquidator (the“Official Liquidator”) totakechargeof DAIL’sassets. Assecurityagainst the loan, weholdanumber of sharesinDAIL. However, agroupof newinvestorsfiledasuit against usseekingtoprevent usfrom sellingDAIL’ssharesheldbytheCompany, andtheMadrasHighCourt subsequentlypassedatemporaryorder preventingus fromdisposingof our shareholdinginDAIL. Thematter isstil pendingbeforetheMadrasHighCourt. OnAugust 26, 2005, the Compan Companyy fileda reco recoverypeti verypetitionin theDebtRecove RecoveryryTri Tribunal unal, NewDelhiagainstst theguaran theguarantorsunder torsunderthe thelloanto DA DAIL, IL, namelySiddharthRayandSPAEnterprisesLimitedforrecoveryofanamountaggregatingto` 314.1milion.TheCompanyhas filedits evidencei encein thematter. Therecoveryappl Therecoveryapplicaatitionwil betakenup betakenupfor forargume argumentsbeforetheDebt ntsbeforetheDebt Rec Recover overy Tribuna unall. In ●

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tensionsand/or theoccurrenceof similar terrorist attackshavethepotential tocausepolitical or economicinstabilityinIndiaand adverselyaffect our businessandfuturefinancial performance. Further, Indiahasalsoexperiencedsocial unrest insomeparts of thecountry. If suchtensionsoccur inother partsof thecountry, leadingtooverall political andeconomicinstability, it couldhave anadverseeffect onour business, prospects, resultsof operationsandfinancial condition.

andseverityofthesenat ese naturaralldisastersdeterminetheirimpactontheeIIndianeconomy.In previousyears, usyears,manypartsof Indiareceived significan anttly lessthan annorm normalalrainfal.Asa result,theagriculturalsectorrecordedminimaallgrowth.Prolongedspells ofbelownormal rainfal inthecountryorothernaturalcalamitiescouldhaveanegativeimpactontheIndianeconomy,therebyaffectingourbusiness.

 35  35.. DDiffiffiicult cultiieses face cedd by othherer ba banks, nks, fiina nanc nciaiall innststiituti tutions ons oror NBFC NBFCss oror thheeInIndidian fina inancia nciall sect sector or ge gene nera ralllly cou could  ld  cause our business to be adversely affected.:Weareexposedto eareexposedtotheri therisksof theIndianfinanci ancialsectorwhichin turnmaybe

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providingof servicesinrelationtoor inconnectionwithsettingup, development, construction, operation, maintenance, modernisation, expansionandimprovement provementofanyinfrastructureprojectorf or facilityincl i ncludingroads,highways,railways,airways,waterways,ports,transport systems,bridges,tele-communicationandothercommunicationsystems,systemsforgenerationorstorageortransmissionordistribution ofpower,irrigationandirrigationsystems,sewerage,watersupply,sanitation,health,tourism,education,oil&gas(excludingexploration), foodandagriculultureinfrastruuctureandsetti ctureandsettingupof indus dustritrialareas. areas. 3. Tocarryont  Tocarryonthebusinessof providing, whether inIndiaor abroad, guaranteesandcounterguarantees,letersofcredit, indemni demnitiesandotherformofcreditenhancem nhancement entstocompaniesengagedindevelopment or financingof infrastructureworkor activity, whether bywayof personal covenant or bymortgagingor chargingall or anypart of the undertaking, propertyor assetsof thecompany, bothpresent andfuture, wherever situatedor inanyother manner andinparticular to guaranteethepaymentofanyprincipalmoneys,interestsorothermoneyssecuredbyorpayableundercontracts,obligations,debentures, bonds,debenturestocks,mortgages, ages,charges,repaymentofcapitalmoneysandthepaymentsofdividendsin respectofstocksandshares cksand shares ortheperformanceof anyotherobligationsbysuchcompanies.4. Tomobilisecapitalfromfinancialinvestorsandto managetheinvestment of suchfundsininfrastructureprojects.5. Tocarryont  Tocarryonthebusinessof negotiatingloansandadvancesof all nature, toformulateschemesfor  thepurposeofmobilisationofresourcesandextensionofcreditforinfrastructuredevelopmentprojectsandtoactasunderwriterstotheissue ofstocks,shares,bonds,debenturesandsecurityofeverydescriptionof compani companiesengagedwhollyorin partintheedevel developmentorfinancing ofinfrastructuredevelopmentworkoractivity. 6. Topromotethedevelopmentofprimaryandsecondarymarketforsharesandsecuritiesof  variouskindsincludingequity, debt, quasi equity, subordinateddebt, derivativesandsuchothersecuritiesasmaybepermissible, issuedby companiesengagedininfrastructuredevelopment workorprojectsandtoprovideassistanceinplacement of sharesandsecuritiesbysuch compani oreignandl investors, tossubscri etotheesharesandsecuri tiesbeingissuedbytehsandensuri emandtogeneral tiesand ent er intoealswi l kithnfdsof financioacall arrangement soastobenabl mobilisingof fundsbysuchcompani ngliquidlyidoal tyforl tact heiinvivest ors investinginsharesandsecuritiesissuedbysuchcompanies. 7. Tocarryonall oranyofthebusi e businessofproducers,man manufufacturers,generators, suppliers,distributors,transformers,converters,transmiters,processors,devel developers,storers,procurers,carriersrsanddeal anddealersin electricity,all formsofenergyandanysuchproductsandby-productsderivedfr omsuchbusinessincludingwithoutlimitation,steam,fuels,ash,conversion of ashintobricksandanyproduct derivedfromor connectedwithanyother formof energy, including, without limitationtoconventional sourcessuchasheat sourcessuchas heat,thermal,hydeland/orfromnon-conventional nalsourcessuch sourcessuchast astidalwave,wind,solar,geothermal,biological,biogas andCBMoranyofthebusi e businessofpurchasers,creators,generators,manufacturers,producers,procurers,suppliers,distributors,converters, processors, developers, storers, carriersanddealersin, designorotherwiseacquiretouse, sell ortransferorotherwisedisposeof electricity, steam, oil, gas, hydroor tidal, water, wind, solar, hydrocarbonfuels, fuel handlingequipmentsandmachineryandfuel handlingfacilities theretoandanyproductsorby-productsderivedfromanysuchbusiness(includingwithout limitationdistilatefuel oil andnatural gaswhether  inliquifiedor vaporizedform), or other energyof everykindanddescriptionandstoves, cookers, heaters, geysers, biogas, plants, gasand steamturbines,boilers,generators,alternators,dieselgenerat generatingsetsandotherenergydevi er energydevicesandappliancesofeverykindand danddescri description. 8. Toprovide,develop,own,maintain,operate,instruct,execute,carry out,improve,construct,repair,work,administer,manage,control, transferonaBui rona Build,OperateandTransfer(BOT),orBuild,Own,OperateandTransfer(BOOT)orBuild,Operate,LeaseandTransfer(BOLT) basisor otherwise, maketenders, applyor bidfor, acquire, transfer tooperatingcompaniesintheinfrastructuresector, anyinfrastructure facilitiesinIndiaorabroad,includingbutnotlimitedtopower,roads,bridges,airports,ports,waterways,railsystem,highwayprojects,water  supplyprojects, pipelines, sanitationandseweragesystems, telecommunicationfacilities, ITparks, urbaninfrastructure, housingprojects, industrialparks,commercialrealestateprojects,tourism,healthcare,education,oilandgas,retaillogisti cs,SpecialEconom EconomiicZone(SEZ), mining,warehouses, warehouses,factories,godowns,watertreatmentsystems,solid wastemanagementsystem ms,s,steel,cement,otherworksor  works or  conv conveni eniennceof ceof publicorprivateuti eutilityiy involvingpublicor privateefifinancialparticipation,eithe herr directlyorthrou throughanysubsi ghanysubsidiaryorgroup company, andtocarryout thebusinessoncontractual basis, assign, convey, transfer, lease, auction, sell, theright tocollect anyrent, tol, compensation,chargesoreitherincomefrominfrastructureprojectsundertakenbytheCompanyeitherindividuallyorasjointventure,with anyothercompany/firm/individual/consultant,whetherinIndiaorabroad. 9.  Tocarryont Tocarryonthebusinessof arrangingor providingfinancial assistanceindependentlyorinassociationwithanypersoninIndiaorabroad,Governmentoranyotheragencies,whetherincorporatedor  not, intheformof lendingor advancingmoneybywayof aloan(includinglongtermloan), workingcapital finance, overdraft, cashcredit, refinancing, equityor quasi-equityfinancingor inanyother form, whether withor without securitytoinstitution, banks, bodiescorporate (whetherornotincorporated),firms,associationsauthorities,bodies,trusts,agencies,societiesoranyotherpersonor person orpersons,engagedin thebusinessof infrastructureof anynatureor kindwhatsoever, includingthosereferredtointhemainObject Clause, retail business, media andentertainmentbusiness,equipmentmanufacturerofanykind,explorati onofoiland andgas, gas,steel,cement,miningactivitiesand sandiinsearch, production,refining,processingetc.ofcoal,tin,ore,oilorothermineralsferrousandnonferrousortheirproducts,co-products,by-products, alloyandderivativesthereof. 10. Tocarryont  Tocarryonthebusinessof arrangingor providingfinancial assistanceindependentlyor inassociationwith anyperson,GovernmentoranyotheragenciesinIndiaorabroad,whetherincorporatedornot,intheformoflendingoradvancingmoneyby wayof aloan(includinglongtermloan), workingcapital finance, overdraft, casecredit, refinancing, equityor quasi-equityfinancingor inany otherform,whetherwithorwithoutsecurityto institution,banks,bodiescorporate(whetherornotincorporated),firms,associationsauthorities, bodies, trusts, agencies, societiesor anyother personor persons, engagedinthebusinessof retail logistics, SEZ, media, broadcasting, telecasting, relaying, transmitingor distributinginanymanner, anyaudio, videoor other programmersor software, communicationand dubbing,recording,sellingthesameinanyform.11. Toact,whetherin Indiaorabroad, asAssetManage Management mentCompanyand/ Companyand/orTrusteesfor  anytypeofinvest i nvestmentfund nds,s,mutualfundsandforthatpurposeto setup,promote,spon sponsor, sor,settleandexecut and executetrusts,deviseand eandmanage manage variousschemesfor raisingfundsinanymanner frompersons, bodiescorporate, Trusts, Societies, Associationof personsandtodeploy, whether inIndiaor abroad, fundsraisedandearnreasonablereturnsontheir investmentsandtodeal with, engageinandcarryout all other  functions,incidental entalthere theretoandsuchother toandsuchother activitiesas ma maybe ybeappro approvedbythe vedbytheSec Securi uritiesandExcha sandExchangeBoar ngeBoarddofof Indiaand/or and/or other  regulatoryauthoritiesandtoundertakeandcarryonthefunctions, duties, activitiesandbusinessof Asset Management Companyand/or  Trusteesandto Trusteesandtounde undertakeandexecut rtakeandexecutetrustsof etrustsof allkinds,whether whetherpublicorprivate, ate, includidingdeclaringthecompanyi gthecompanyitselfasanAsset Management Companyand/or TrusteesinIndiaor abroadandtocarryout businessof formulating, marketing, raisingfunds, plansand schemes,includingmutualfundsschemes,andtoarrangeforthesale,redemption,cancellation,revocationoftheunitsandtodistributethe proceedsthereof amongtheother unit holdersor investors, beneficiariesor all personsentitledtothesameperiodicallyor otherwisein furtheranceof anytrust directions, discretionor other obligationor permissionandgenerallytocarryonwhat isusuallyknownastrustee businessandinparticularandwithout limitingthegeneralityof above, toact asTrustees.12. Tocarryonbusinessoffinanceandinvestment broking,underwriting,sub-underwri sub-underwritingandasconsul gandas consultantsforandt rand topurchase,acquire,hold,sell,buy,invest,trade,exchange,deal deal,barter, borrow,lend,guarantee,givecomfortforpledge,hypothecate,chargeanddealininvestmentinstrumentsofallkindsandtypeswhether  securitiesornot sor notincludingshares,stocks,debentures,bonds,cumu cumullativeconvertible preferenceshares,certificatesofdeposits,commercial papers,participationcertificates,othersecuritiesbyoriginalsubscription,coupons,warrants,optionsandsuchotherderivatives,andother  mutualal fundsoranyothersecuritiesissuedbytheCom e Compani panies,Gove overnmen rnmentts,Corporations,Co-op o-operat eratives,Firms,Trusts,Societies,Authorities, whether situatedinIndiaor abroad, andtocarryonfinancial operationsof all kindsincludingcredit rating, bought-out dealsplacement of  shares, hedging.Also, to carryon carry ontthebusi e businessof portfolio management managementservices, Merchant BankersandAdvi Bankersand Advisors orsonal onalll asp aspect ects of  CorporateFinancialandCommercialmatters,whetherinIndiaorabroad.Themainobjectsclauseandtheobjectsincidentalorancilaryto themainobjectsof our Memorandumof Associationenableustoundertakeour existingactivitiesandtheactivitiesfor whichthefundsare beingraisedthroughthisIssue.For further detailson“MainObjectsof theCompany” pleaserefer topage81of theProspectusTranche2. CREDITRATING&RATIONALE :ICRAhasvideitsleterno.2011-12/MUM/418datedAugust17,2011andrevalidatedthroughitsleter  datedNovember8,201assignedaratingof(ICRA)AAAtotheTranche2BondsproposedtobeissuedbytheCompany,pursuanttotheShelf  Prosp Prospect ectusandtheProspec eProspectus-Tranche2.ThisratingoftheTranch eTranche2Bondsi e2Bondsindicatesstableoutlookandisthehighestcredi reditqualityratingassigned ned byICRA.Fordetailsinrelationtotherationaleforthecreditrating,pleaserefertotheAnnexuretotheProspectus-Tranche2.Fitchhasvideitsleter  datedAugust16,2011assignedaratingofFitchAAA(ind)totheTranche2BondsproposedtobeissuedbytheCompany,pursuanttotheShelf  ProspectusandtheProspectus-Tranche2.ThisratingoftheTranche2Bondsindicatesalongtermstableoutlook.Fordetailsinrelationtothe rational naleforthecreditrating,pleaserefertotheAnnexuretotheProspectus-s-Tran Tranche2. che2.ThisratingoftheTra eTranche2Bon nche2Bondsi dsindicatesalongtermstable outlook.Theaboveratingsarenotarecommendationtobuy,sellorholdsecuritiesandinvestorssho rsshouldtaketheirowndeci w si T m w w m P A P T UMM R O U N O wW w w m m W w m m w W m mm w mm Ww m E S A F w E S w m m w m m S m m E S m m w w m m w w w m m m E S m m m N m w m m w S CCF mT A W m F m M D m w m T B m S P P T T G m m T E F Y P F m US G m w m m PPPW PPPW w w m w m m w RB F C m FCw m w w w m w W w m w w w C

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partnershihips,governmenttransactionadvi nadvisoryservicesandcorporat esandcorporatesocialresponsibilityinitiatives.Thesebusinesspl essplatformsaresuppo rmsaresupportrtedbya sharedservicesplatformthatincludesinformat rmationtechnology,humanresources,legalandcompliance,secretarialservices,riskmanagement, financeandfacilities.OurclientsincludeprominentparticipantsininfrastructuredevelopmentinIndiaandourproductportfoliocaterstothediverse need needsof softheseclientsacrossallayersofthecapitalstructure.Ourm urmaiainfocushasbeenont cushasbeenontheenergy,transportationandtheteleco comm mmunicationsand informationtechnol chnologysectors,andweexpecttoseecontinuedgrowthandsi handsignifican anttfinancingopportunitiesinthesesectors.Inviewofourhistorical andintendedgrowthandtheincreasinglglyinterconnectednatureofourbusinesses,infiscal2010welaunchedt unchedthe'OneFirm'initiative,whichseeks toforgeouridentityandbrandacrossourvari andbrandacrossourvariousplatformsandbusi rmsandbusinesses. esses.Webelievethatthisinitiativewilenableustoemergeasabet emergeasabetteraligned andintegrat gratedfirmthatpresentsaunifiedvaluepropositiontoourclients.Forfurtherdetails,pleaserefer“OurBusi r“OurBusiness”beginningonpage63ofthe ProspectusTranche2. CAPITAL STRUCTURE Detailsofsharecapital ThesharecapitaloftheCompanyas theCompanyasatatthedateoftheProspe the Prospectusctus-Tranche2is setforthbelow: Amount  `   in million)  (`  in Authorised share capital\ 4,000,000,000EquitySharesof` 1 100each 40,000.0 100,000,000PreferenceSharesof` 1  1000each 10,000.0 Issued, subscribed and paid up share capital 1,463,5 1,463,537,336 37,336 EquitySharesof ySharesof ` 1  100each,ful ypaidup 14,635.3 84,000,000compul 84,000,0 00compulsoriorilyconvertiblecumulativePreferenceSharesof ePreferenceSharesof` 100each,ful y papaidup 8,400.0 Securitiespremiumaccount asonNovember 30,2011 44,788.3 ForfurtherdetailsonourCapitalStructure,pleaseseesectiontitled“CapitalStructure”beginningonpage44oftheProspectusTranche2. OUR MANAGEMENT Deepak S. Parekh,Designation:  Non-ExecutiveChairman;Occupation: Professional; Bimal Julka, Designation:  Non-Executive Director, nomineeof Government of India; Occupation:  Servi Service; S. S. Kohli, Designation:Non-ExecutiveDirector, nomineeof  Government of India; Occupation: Prof  Professional Abdul Rahim Abu Bakar , Designation:Non-E Non-Executi xecutiveDirector,nomineeof  DomesticInstitutionsandForeignInvestors;Occupati Occupation: Prof  Professional; MarianneØkland, Designation:  Independent Director; Occupation:  Professional;S.H. Khan,Designation: IndependentDirector;Occupation:  Professional;Gautam Kaji, Designation: Independent Director;Occupation: Prof  Professional;DonaldPeck,Designation:  Independent Director;Occupation: Prof  Professional; Shardul Shroff, Designation:  Independent Director; Occupation: Prof  Professional;Omkar Goswami, Designation: Independent Director; Occupation: Prof   Professional; Rajiv B. Lall, Designation:  ManagingDirectorandChief Executi ExecutiveOfficer; Occupation: CompanyExecutive; Vikram Limaye,Designation:   Whole-timeDirector;Occupation: CompanyExecut  CompanyExecutive. ForadditionaldetailsonourBoardofDirectors,pleaserefersectiontitled“OurManagement”onpage84oftheProspectusTranche2. SELECTED FINANCIAL INFORMATION STATEMENT OF CONSOLIDATED PROFITS, AS RESTATED  `    `   in Million For the For the For the For the For the f in anan cici alal f in anan cici alal f in aann cici alal f in aann cici alal f in aann cicial year year ende endedd year year ende endedd year year eende ndedd year year en ende dedd year year eende ndedd 31st Mar chch, 31st M  Mar arch, c h, 31st M  Maarch, rch, 31st M  Mar arch, c h, 31st March, 2007 2008 2009 2010 2011 Income

Operating Income Other Income Total Expenditure

15,660.7 27,951.3 36,261.7 40,330.4 49,167.4 51.9 113.6 104.0 296.1 162.9 15,712.6 28,064.9 36,365.7 40,626.5 49,330.3

Interest &Ot &Other Charges

8,554.6 14,829.0 20,812.1 19,534.7 23,875.3

SEtsataffbEExlisxhpmenesnetsExpenses Other EExxpenses Provisions and Contingencies Depreciation and Amortisation

43891.87 1,618363.7 255.2 638.4 175.0 700.4 44.3 72.9 9,5550. 50.6 18 18,0 ,061 61.1 .1

Prof it b eeff ore TTaax at io n

6,162.0

Less: Provision for Taxation Current Tax Less: Deferred Tax Add: Fringe Benefit Tax Profit after Taxation (before share of  prof it f rom Ass oci at es

and adjustment for Minority Interest) Add: Dilution effect due to change in holding in an Associate Add / (Less): Share of Net Profit / (Loss) fromAssociates (E (Equity mmeethod) Less: Share of Profit of Minority Less: Pre-acquisition profits of a Subsidiary

1,732882.47 1,316.0 1,531.8 238.1 26,0 26,009 09.1 .1

3,048036.70 1,630.3 1,282.5 405.7 26,3 26,342 42.9 .9

2,935651.93 1,601.6 2,346.1 401.7 31,5 31,541 41.9 .9

10,003.8 10,356.6 14,283.6 17,788.4

1,292.5 62.8 11.3 1,241.0

2,484.8 112.7 108.3 2,480.4

3,206.3 3,999.6 5,724.2 450.5 333.9 726.7 25.9 2,781.7 3,665.7 4,997.5

4,921.0

7,523.4

7,574.8 10,617.9 12,790.9

-

47.9

-

-

-

118.3 -

(2.0) 112.5 35.2

15.6 42.3 50.1

10.8 1.0 4.6

22.3 (3.4) -

Prof it af t er Taxat ion 5,039.3 7,421.6 STATEMENT OF CONSOLIDATED ASSETS AND LIABILITIES, AS RESTATED As at As at 31st Mar chch, 31st M  Mar arch, c h, 2007 2008 A. Fixed x ed Ass Assetets GrossBlock 794.0 858.6 Less:Depreciationa nanndAmortisation 304.6 367.2 NetBlock 489.4 491.4 Add: Capital Work-in-Progress 3,358.5 Add: Pre-operativeExpenses pendingcapitalisation 489.4 3,849.9 B. Goodwillll on Consolidation idation (0.0) 2,867.6 C. Inve Investstments m ents 24,914.2 52,393.6 D. Infrastruc r astructure ture Loa Loans ns 13 139, 9,1184. 84.3 19 1999,0 ,050 50.9 .9 E. Deferr Deferred e d Tax Tax As Asset set 856.9 972.1 F. CurrentAssetss,, Loa Loans ns andAdvanc Advances es IncomeaccruedonInvestments 308.8 345.8 Interest aacccruedo donI nInfrastructureL eLooans 846.4 1,644.4 SundryDebtors 177.3 379.3 CashandBankbalances 10,802.5 18,084.0 LoansandAdvances 6,068.0 9,379.8 18,203.0 29,833.3 Totala lAs Asse setsts (A+B (A+B+C +C+D +D+E +E+F +F)) 183, 183,647. 6 47.8 288, 288,967. 9 67.4 G. Liabilities itiesand Provision Provisionss LoanFunds: Secured (Under CB CBLO) 4,980.3 1,649.2 Unsecured 144,279.7 222,384.8 Curre renntLiabilitie iesa sanndP dPro rovvisions 4,911.8 8,759.2 15 154, 4,1171. 71.8 23 232, 2,793 93.2 .2 H. Minorit Minority InIntere terestst 241.2 I. Defer Deferred r ed Tax Tax Liabi a billitity 0.0 0.1 J. Netw Networ orth th 29,4 ,4776.0 55,932.9 K. Repres Represent ented e d by ShareCapital 11,259.3 12,943.0 ShareApplicationMoney Reserves aanndSurplus 18,216.7 42,989.9 Networth 29,476.0 55,932.9

7,498.1 10,623.1 12,816.6  `  in  in Million As at As at As at 31st M  Maarch, rch, 31st M  Mar arch, c h, 31st March, 2009 2010 2011

5,111.6 612.5 4,499.1 44.4

5,184.2 907.4 4,276.8 54.6

5,329.6 1,204.3 4,125.3 6.4

83.7 337.3 4,543.5 4,415.1 4,469.0 10,691.8 11,596.3 11,638.0 65,496.0 46,554.0 69,611.5 20 205, 5,9962. 62.4 25 250, 0,310 10.6 .6 37 376, 6,5523. 23.2 1,425.0 1,766.2 2,495.4 255.9 454.8 689.6 2,498.0 3,598.2 5,441.2 331.5 859.1 621.7 8,254.5 2,714.7 11,049.1 7,542.1 25,830.2 10,628.6 18,882.0 33,457.0 28,430. 30 307, 7,0000. 00.7 34 348, 8,0099. 99.2 49 493, 3,1167. 67.2 - 354,350.1 235,481.2 265,438.7 8,689.3 9,475.9 12,482.9 17,626.4 24 244, 4,9957. 57.1 27 277, 7,921 21.6 .6 38 380, 0,6665. 65.8 281.1 63.2 1.7 3.8 11.1 15.3 61,758.7 70,103.3 112,484.4 12,952.8 0.5 48,805.4 61,758.7

13,006.1 23,009.5 2.6 41.4 57,094.6 89,433.5 70,103.3 112,484.4

STOCK MARKET DATA FOR EQUITY SHARES AND DEBENTURES OF THE COMPANY I. Equity Shares: TheCom TheCompany’ pany’sEquitySharesarelistedontheBSEandNSE tedon theBSEandNSE..As AstheCompa theCompany’ ny’ssharesareactively tradedon

INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED

Year ended Mar ch 31

High Dat e o f Volum e on Low Date of Volum e on Average  `   date of (no. date of (n o . pr ice for the  `   (` ) High;  (` ) Low high of shar es) of shar es) year  `   (` ) 2011 218.25 November 88,,2010 5,84 ,843,84 ,845 115.45 .45 Febru ruaary ry99,2011 19,64 ,644,49 ,495 173.72 .72 2010 178.00 November18,2009 11,574,838 57.60 April1,2010 9,071,380 139.81 2009 180.70 May2, y2, 20 2008 7,602,559 44.80 March1 h122, 20 2009 10,650,948 90.52 Source: www.nseindia.com; www.nseindia.com; The average price has been computed based on the daily closing price of Equity Shares. BSE: Year ended High Dat e o f Volum e on Low Date of Volum e on Average Mar ch 31  `   date of (no.  `  date of (n o . pr ice for the  (` ) High;  (` ) Low high of shar es) of shar es) year  `   (` ) 2011 218.20 November 88,, 202010 964,694 115.90 Febru ruaary9, y9, 20 2011 2,395,025 173.63 2010 177.40 November18,2009 2,079,930 57.55 April1,2010 2,375,552 139.76 2009 179.90 May2, y2, 20 2008 2,185,415 44.70 March1 h122, 20 2009 16,117,046 90.53 Source: www.bseindia.com; The average price has been computed based on the daily closing price of Equity Shares. b. Thehighandlowpricesandvolumeof EquitySharestradedontherespectivedatesduringthelast sixmonthsareasfollows: NSE Month, Year High Dat e o f Vo lu me o n Low Date of Volum e o n Average date of (no. of  `  date of (n(no. of p rriice for the  `   (` ) High;  (` ) Low high Equity Shares) Equity Shares) year  `   (` ) De Dece cem mbe ber,r,20 20111 119 19.3 .355 De Dece cem mber ber 7,20 20111 6,6671, 71,885757 90 90.9 .900 Dece Decem mbe berr 330, 0,20 2011 11 6,3397, 97,1124 24 104. 104.2277 No Nove vem mbe ber,r,20 20111 13 135. 5.9955 No Nove vem mber ber 2,201 2011 5,4477, 77,005959 10 101. 1.2255 No Nove vem mbe berr23,20 2011 11 10 10,2 ,230 30,3 ,399 99 115 15.7 .755 Octoober ber2011 13 135. 5.0000 Octoobeber 31, 31,20 20111 5,7716, 16,522 10 107. 7.0000 Octoobeber 44,,20 20111 4,6630, 30,554343 12 1211.99 .99 Septe Septem mbe berr20 2011 11 118 18.4.455 Sept Septeembe mberr9,20 2011 11 9,2260,4 60,467 67 10 106.6.55 55 Sept Septeembe mberr23 23,,20 2011 11 59 59,6,69,9,012 012 111.8822 August 20 2011 130.30 .30 August 1,1, 20 2011 8,461,06 ,067 103.25 August 26 26, 20 2011 9,330,747 116.47 .47 July2 ly2011 145.00 July25 y 25,2011 3,415,855 122.40 July29 y 29,2011 16,441,945 136.33 Source: www.nseindia.com; Theaveragepricehas beencomputedbasedonthedaily closingpriceof Equity Shares. BSE : Month, Year High Dat e o f Vo lu me o n Low Date of Volum e on Average  `  date of (no. of  `  date of (n(no. of p rriice for the  (` ) High;  (` ) Low high Equity Shares) Equity Shares) year  `   (` ) De Dece cem mbe ber,r,20 20111 119 19.4 .400 De Dece cem mber ber 7,20 20111 84 842, 2,117777 91 91.2 .200 De Dece cem mbe berr30 30,,20 2011 11 1,1144, 44,7746 46 10 104. 4.2266 No Nove vem mbe ber,r,20 20111 13 135. 5.6600 No Nove vem mber ber 22,, 201 20111 76 767, 7,336666 10 101. 1.3355 No Nove vem mbe berr 223, 3,20 2011 11 1,8885, 85,2204 04 115.7 15.799 Octob tober 220011 134.70 Octob tober 31 31, 20 2011 431,02 ,026 106.55 Octob tober 44,, 202011 747,25 ,259 121.91 .91 Sep epte tem mbe berr20 2011 11 118 18.4 .400 Sept Septeembe mberr9,2201 0111 1,3381, 81,881414 10 106. 6.55 55 Sep epte tem mbe berr23 23,,201 2011 94 947, 7,223333 111.7733 August 20 2011 130.35 .35 August 1,1, 20 2011 1,627,03 ,032 103.20 August 26 26, 20 2011 1,113,744 116.50 .50 July20 y 2011 144.60 July25 y 25,2011 678,695 122.85 July29 y 29,2011 1,949,899 136.37  Source: Source: www.bseindia.com; Theaveragepricehas beencomputedbasedonthedaily closingpriceof Equity Shares. II. Debentures: Deb Debtt securitiesissuedbytheComp suedby theCompany any,, whichare harellistedonNSE,arei are infreq frequentl uentlytradedwi tradedwithhllimiteedor dor novolumes. mes. Consequently, therehasbeennomaterial fluctuationinpricesor volumesof suchlisteddebt securities. Thelongterminfrastructurebonds havingbenefitsunderSection80CCFoftheIncomeTaxAct comeTaxAct,1961issuedbyt suedby theCompan eCompanyduri yduringthef e financialyear2010-11havebeenlisted ontheNSEandtheBSE. Therehasbeennotradinginsuchbondssincetheirlistingsincethereisalock-inrequirement of minimum5years. OTHER REGULATORY AND STATUTORY DISCLOSURES Eligibility to come out with the Issue :TheCom TheCompanyhasnot panyhasnotbeenrestraineed,d,prohibitedordebarredbySEBIfromaccessingthe securitiesmarket or dealinginsecuritiesandnosuchorder or directionisinforce. Expert Opinion: ExcepttheletterdatedAugust datedAugust16,2011issuedby suedbyFiFitchandthe chandthellettersdatedAugust17,201 2011and 1andNovem November8, 201 2011i1issuedby ICRAinrespect respectof thecreditratingfor theTranche2 theTranche2Bond Bonds,s,andthereport andthe reportonour financialstatementsandstateme statementsandstatementnt

ofMinimum taxbenefi tax benefiSubscription: tsissuedbytheStatutoryAudi tor,IDebt theComp theCompanyhasnot edanyexpert opinicioisns. IntermsoftheSEB the SEB Regulanyhasnot ations ns,,anissuer ani obtai ssuernunderta undertaki kingapubl sueof debtsecuritiesisrequiredto disclosetheminimumamount umamountofsubscriptionthatit propose proposesto sto raisethroughthei ethroughtheissuei ssuein theofferdocume document. nt.Intheevent Inthe eventthatan issuer doesnot receivetheminimumsubscriptiondisclosedintheoffer, all applicationmoneysreceivedinthepublicissueare requiredtoberefundedforthwith. SEBI has, bywayof leter no. IMD/DF1/OW/29786/2011datedSeptember 19, 2011hasexempted theCompanyfromspecifyingtheminimumlevel of subscriptionfor theissueof Bonds. Consequently, thereisnominimumsubscription amount for theTranche2Bonds. Previous Public or Rights Issues by the Company during last five years Otherthanfollowing,g,theCom the Companyhasnot panyhasnotundertakenanypublicorrightsissueduringthe gthellastfiveyears: (a) thepublicissueoflong terminfrastructurebondshavingbenefit under Section80CCFof theIncomeTaxAct inNovember, 2010under thefirst trancheonthe termsset out inprospectus- Tranche1datedSeptember 23, 2010for anamount aggregatingto` 4,710.4milion; (b) thepublicissue oflongtermi ngterm infrastructurebonds frastructurebondshavi havingbenefitunderSection80CCFof theIncomeTaxActin Februa February, ry,2011underthesecond trancheonthetermssetoutin prospectu prospectus-s- tranche2datedJanuary4,2011foranamountaggre aggregati gatingto` 7,572.9milion;(c) (c) thhee publicissueof longterminfrastructurebondshavingbenefitunderSection80CCFof theIncomeTaxAct theIncomeTaxActin March March,,2011underthe thirdtrancheonthetermsset dtrancheonthe termssetoutinprospectus-tranche3datedFebrua tranche3 datedFebruary21, ry21,2011foranamo an amount untaggregati aggregatingto `2  ,234.3milion; an andd (d) thepublicissueof theTranch theTranche1 e1Bond Bondsisin December,2011,onthetermssetoutin theShelfProspe ProspectusandtheProspectus ctusandtheProspectus -Tranche1for anamountaggregati aggregatingto ` 5,326.2milion. As on the date of the Prospectus - Tranche 2, there has been no default in payment of principal or interest on any termloan or debt security issued by the Company in the past. Details regarding the capital issue during the last three years by listed companies, which may be considered under the same management with the Company, within the meaning of section 370(11B) B) of  the Act: None of the companies under the same management with the Company, within the meaning of section

370(1B) of the Companies Act, are listed.

Change in auditors of the Company during the last three years :TheCompanyhasnotchangeditsStatutory Statut ory Auditors during the last three years. Revaluation of assets: The Company has not revalued its assets in the last five years.

Utilisation of Proceeds :StatementbytheBoardofDirectors: (i) Al moniesreceivedoutoftheIssueoftheTranche2Bondstothe publicshallbetransferredtoaseparatebankaccoun betransferredtoa separatebankaccounttotherthanthebankaccountrefe referredto rredtoiinsub-section(3)ofsection73ofthe CompaniesAct; (ii) Detailsof all moniesutilisedout of theIssuereferredtoinsub-item(i) shall bedisclosedunder anappropriate separa separateheadi teheadinour balanc ncesheet esheetindicatingthepurposeforwhichsuchmoni hsuchmonieswereutilised ed;;and(iii) Detailsof all unutilisedmonies outoftheIssuereferredtoi theIssuereferredto insub-item(i),if any,shallbedisclosedunde sedunderran anapprop appropririateseparateheadi teseparateheadin ourbalancesheetindicatiating theforminwhichsuchunutilisedmonieshavebeeninvested. vested. Thefundsraisedbyusfrompreviousbondsissueshavebeenutilised forourbusinessasstatedi essas statedintherespectiveofferdocuments. Disclaimer clause of NSE, BSE, RBI:Forful particularsofdisclaimerclausesofNSE,BSEandRBI,pleasereferpages105–106ofthe ProspectusTranche 2. Dividend : ThefollowingtablesetsforthcertaindetailsregardingthedividendpaidbytheCompanyontheEquitySharesfor Fiscal 2009, 2010and2011:   (In`  million,except exc eptpersharedata): Particulars Fiscal 2009 Fiscal 2010 Fiscal 2011 FacevalueofEquityShares(` pe  per share) 10 10 10 InterimdividendonEquityShares(` per share) FinaldividendofEquityShares(` per share) 1.2 1.5 2.0 Total didividendonEquityShares 1,555.5 1,951.3 2,925.1 Dividendtax(gross) 196.4 222.1 450.7 Mechanism for redressal of investor grievances :KarvyCom KarvyComputersha putersharePri rePrivateLimitedhasbeenappointedas tedastheRegi theRegistrarto theIssuetoensurethatinvesto vestorr grievan vancesarehandl cesarehandledexpedi dexpeditiousl uslyandsatisfactorilyandtoeffecti andtoeffectivelydealwithinvesto vestorr compl complaints. TheMoUbetweentheRegi TheMoUbetw eentheRegistrartotheIssueandtheComp totheIssueand theCompanywi anywil provideforretentionofrecordswithhtheRegi theRegistrartotheIssuefor  aperiodofatleastthreeyearsfromthel threeyearsfrom thelastdateofdespatchofthelettersofallotment,demat dematcreditandrefundorderstoenablethe investorsto approa approach chtheRegi theRegistrar totheIssuefor tothe Issuefor redressalof thei their grieva vances. nces.All grievancesrelatingto g totheIssue theIssueshoul shouldbe addressedto addresse dto theRegistrartotheIssuegi tothe Issuegivingfulldetails oftheApplican ant,t,numbe numberrofTranche2Bondsappliedfor,amountpa paiidon applicationandthebankbranchorcollectioncentrewheretheappl ncentrewherethe applicationwassubm nwassubmiittedetc. MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION : Forl For list of Material ContractsAnd AndDocum Document entsFor Inspection, pleaserefer aserefer page145of page145of theProspectusTran theProspectusTranche2. che2. The Thesecontractsandal secontractsandalsothe othedocu documen mentsfor tsfor inspe spectictionmaybeinspectedat the CorporateOfficeof theCompanysituatedatNamanChambers,C-32,G-Block,Bandra-KurlaComplex,Bandra(East),Mumba Mumbaii400 400051, 051, from10.00a.m. to1.00p.m., fromthedateof theProspectusTranche2unt s Tranche2until thedate of closureof theissue sueofof Tranche2 ranche2Bonds. Bonds. DECLARATION: NostatementsmadeinthisProspectus- Tranche2shall contravenerelevant provisionsof theCompaniesAct andthe SEBI Debt Regulations. All thelegal requirementsconnectedwiththesaidIssueasalsotheguidelines, instructionsetc. issuedbySEBI, Governmentandanyothercompetentauthorityinthis behalfhavebeendulycompliedwith.WeconfirmthattheProspectus-Tranche2does notomitdisclosureofanymaterialfactwhichmaymakethestatementsmadetherein,inlightofcircumstancesunderwhichtheyweremade, misleading. Wefurther certifythat all statementsintheProspectus- Tranche2aretrueandcorrect. Yours faithfully, Deepak DeepakS. S. Parekh, BiBimal Julka, S.S. KKohl ohli, Abdul RahimAbuBakar, Marianne nneØkl Økland, S.H. Khan, Khan, GautamKaji, Donald Peck, Shardul Shroff, Omkar Goswami, RajivB. Lall, VikramLimaye Place:Mumbai Date : January 03,2012 FOR FURTHER DETA LS PLEASE REFER REFERTO TO THEPROSPECTUS THE PROSPECTUS TRANCHE 2