NEDFi

1 | Annual Report 2009-10
Since its incepon in August 1995, North East

Development Finance Corporaon Limited
(NEDFi) has been playing a crucial role in
catalyzing the development of the North East
economy. NEDFi is a development bank of the
North East and for the North East with a mandate
to be a paceseer in the economic development
of the region. Over the past 15 years, NEDFi has
been instrumental in the growth of industries,
infrastructure, agri-horculture and allied
sectors, small enterprises and micro finance to
the needy at the grassroots in the region.
NEDFi's booms up approach towards framing CMD’s Statement 4
its policies has reaped huge dividends for the Financial Highlights 8
economies and consequently the people of the
Performance Highlights 9
eight states of the region.
NEDFi Offers 11
The cover celebrates the journey of NEDFi since
1995. Over the last 15 years, it has achieved Catalyzing Growth 12
exponenal growth – having sanconed more
Nurturing Entrepreneurship 19
than 2000 projects with an exposure of Rs.
1627 crores. The decade and a half has seen the Towards Inclusive Growth 23
corporaon cross milestone aer milestone, as Giving Life to Ideas 25
it makes its way into the heart of the people.
Its achievements have endeared NEDFi to the Board of Directors 31
people of the region. It is jusfiably a cause for Directors’ Report 32
celebraon, a reason to feel proud.
Auditors’ Report 44
Financial Accounts 48
Photo Gallery 69
Annual Report 2009-10 | 2

Mission Statement
NEDFi aims to be a dynamic and responsive organization to catalyse economic
development of the North East by identifying, financing and nurturing
eco-friendly and commercially viable industrial, infrastructure and agro-
horticultural projects in the region.
Quality Policy
“We are committed to enhance customer satisfaction by providing timely and
effective financial solutions including promotional, development and support
services to entrepreneurs by continuously improving the effectiveness of the
Quality Management System and employee development”.

From the desk of the Chairman
and Managing Director
The year 2009-10 has been a year of revival and renewal of confidence in the Indian
economy. The strength and rapidity of India’s recovery from the adverse impact of the
global financial and economic turmoil, reiterates the overall potential for sustained high
economic growth in India. The high growth rates of the economy during the last decade
have increased the resources earmarked by the central government to the North Eastern
(NE) region. The Central Ministries/Departments have been mandated to allocate at
least 10% of their plan funds for the development of NE region and any shortfall in the
actual expenditure is transferred to the Non Lapsable Central Pool of Resources (NLCPR)
which is again used for funding specific programmes for economic and social upliftment
of the NE states. Accordingly, the central government investments in the region have
increased substantially particularly on infrastructure like road, railways, civil aviation,
inland waterways, power and telecommunication, etc.

Also, the policy initiatives on development The Corporation's credit portfolios are well
of industries by the Central and the State diversified with a view to spread the credit risk
Governments, and in particular the subsidies and over various sectors and industries. An effective
fiscal incentives under the NEIIPP 2007, coupled Credit Monitoring System has been put in place
with an improving law and order position in to identify and track stressed accounts early and
most part of the region, have attracted sizable initiate corrective steps as required. The gross
investments from private investors in sectors Non Performing Assets (NPA) of the Corporation
like cements, power, steel, infrastructure, as a per cent of gross Loans & Advance reduced
healthcare, higher and technical education, to 14.01% during the year from 17.42% during
tourism and hospitality, etc. Increased spending the previous year while the net NPA to net Loans
by the centre and the state governments & Advances reduced to 2.47% from 3.73%. The
has created substantial space for private Corporation’s focus on vigorous follow up, cash
investments. recoveries through recovery drives, settlement
through One Time Settlement (OTS), recoveries
During the year 2009-10, our sanctions registered
proceeding through Lok Adalats and early
an increase of 25% to Rs. 333.41 crore while
resolution of disputes through Debt Recovery
disbursements increased by 13% to Rs.208.08
During the year 2009-10, our sancons registered an increase of

25% to Rs. 333.41 crore while disbursements increased by 13% to
Rs.208.08 crore. Our net profit has also increased by 12 % to Rs 33.25
crore while our asset size grew by 24% to Rs. 526.37 crore. Looking
back with pride on our stellar growth from a humble beginning, we
note that while it took us ten years to reach a disbursement figure of
Rs.100 crore in a year, we have taken only four years to surpass the
yearly disbursement of Rs. 200 crore.
Tribunal (DRT) have resulted in reduction of
crore. Our net profit has also increased by 12 %
both gross and net NPAs.
to Rs 33.25 crore while our asset size grew by
24% to Rs. 526.37 crore. Looking back with pride Financial Inclusion is an integral part of our
on our stellar growth from a humble beginning, corporate strategy. Our model for financial
we note that while it took us ten years to reach a inclusion involves channelizing of micro-credit
disbursement figure of Rs.100 crore in a year, we through utilization of local resources to reach
have taken only four years to surpass the yearly the grassroots. As the skewed geography and
disbursement of Rs. 200 crore. Similarly, it took difficult terrain make most parts of the Region
us the initial ten years to reach the sanction inaccessible, we have evolved innovative
of Rs. 100 crore and just a four-year period strategies for channelizing our micro credit
to surpass the Rs. 300 crore per year mark. In through traditional and community level
line with the business growth, our income and organizations. This has proved to be a great
profits have also increased substantially over vehicle to reach the masses. To make further
the years.

inroads, considerable leverage has been awareness about the Region and its inherent
accorded to introduction of eco friendly investment potential. We have also taken various
livelihood possibilities via training and technical steps to promote North East and its potential
inputs along with credit in a systematic manner. across the borders to encourage private and
Under our Microfinance scheme, the total foreign investment, technology transfer, etc in
number of beneficiaries has crossed one lakh the Region.
(108,169), out of which around three-fourth
It will be worthwhile to mention here that we
(76%) are women.
have taken up the challenge to carry the mission
The demand for services like Consultancy & envisaged in the ‘Vision 2020’ document for the
Advisory is growing in the Region, especially Financial Services group in the North Eastern
from the Central & State Governments, who Region. The main objective is to bring together
are increasingly looking to set up projects in all Banks, financial institutions, the government
the Public Private Partnership (PPP) model. and the intelligentsia to chalk out workable
The Central and State Governments are also strategies for development in key sectors in
looking for Third Party Monitoring for their the states. With our initiatives, the process has
infrastructure projects like roads & bridges. already begun in Mizoram and Sikkim and it will
Our Consultancy and Advisory Division, in a subsequently be taken up in all the eight states
short span of time, has been awarded several of the Region.
prestigious assignments. It has been awarded
As the premier development financial
Third Party Monitoring of projects under Special
institution in the North Eastern region, we have
Plan Assistance and Border Area Development
a presence in all spectrums of the industrial
Program in the state of Arunachal Pradesh. More
landscape viz., Micro Finance, Micro Small
assignments are expected from other states. It
and Medium Enterprise (MSME), Infrastructure,
has won a prestigious PPP project for creating
Agri-Horticulture and Service sectors. We have
the first IT Park of the NER at Guwahati. NEDFi
initiated various support and extension services
is empanelled with Asian Development Bank
including business development programmes
for providing consultancy services and has bid
for promotion of entrepreneurship and credit
for two ADB assisted projects in Shillong and
absorption capacity in the region. At NEDFi,
Agartala. The demand for Corporate Advisory
we judge ourselves not just by the levels of
services such as loan syndication, evaluation
our sanctions and disbursements but by the
of joint ventures, debt restructuring etc. is
investment catalyzed, by the creation and
also growing with the increase in the level of
development of entrepreneurship, by increasing
industrialization. NEDFi expects its Consultancy
effectiveness of government schemes like NEIIPP,
and Advisory Services to be a major growth area
by image building of NE region, by improving
in the coming years.
efficiency of project implementation through
We try to create national and international proper monitoring, etc.
linkages to unleash productive synergy for
In the last two years, we have increased our
catalyzing and supporting economic growth in
geographical coverage considerably by opening
the Region. At the national level, a series of
eight new branches/ Representative Offices
business to business investment meets will be
in Assam, Tripura and Meghalaya. Our primary
held at various cities in the country to create

focus has been on future expansion of our central government, there is high potential for
network and on strengthening our branches and undertaking contract finance. Plastic industry
empowering them to reduce turn around time in could also witness a boom with the coming up
decision making by rationalizing processes and of the Assam Gas Cracker project in the North
procedures. Eastern Region. North East has unexplored
potential in the tourism sector in the form of
We have constantly tried to strengthen our
adventure, cultural and business tourism. Other
organizational structure to handle the business
growth areas are hotels, power generation,
and regulatory demands of the changing and
infrastructure, real estate, service sectors,
competitive environment. Our growing business
educational institutions, agri-horticulture,
along with expanding activities propel us to
construction equipment, transport, knowledge
take a relook at our manpower planning and
based industries, etc. With such opportunities,
accordingly we have initiated the process of
there is great expectation that NEDFi will
expanding our manpower base to create a
undertake the exciting challenge to fulfill its
competent pool to respond to the emerging
mandate of being a pacesetter in the economic
needs. Towards this end, we have engaged a
development of the Region.
Hyderabad based Consultancy Firm, ‘CORD
– M’, to develop a complete HR Policy for the The coming decade is a decade of unprecedented
organization. opportunities for the NE region and its people.
We, at NEDFi are focused on capitalizing on
We understand the need to build managerial
the immense industrial and infrastructural
capabilities and skills to enable us to tap
growth opportunities in the region. We have a
unutilized potential, assist new ventures both
young and inspired team that is committed to
at the macro and micro levels, build business
develop the economy of the Region. Our people
confidence and usher in investment and support
are the best asset that we possess. We are also
developmental activities. In our drive to fulfill
fortunate to have an eminent and professional
our objectives, we have not lost sight of the
Board that takes the lead in guiding and
fact that we were set up to be a catalyst in
directing the strategies. The state governments
industrial development of the Region; to provide
and the ministries at the Centre have also been
the links amongst institutions and organizations
supportive in our endeavour.
in the development chain in the North Eastern
Region. Together, I look forward to maintaining the
momentum and taking NEDFi to greater
As our business has increased and is expected
heights.
to increase manifold in the emerging market
scenario, it is now imperative on the Corporation
Warm Regards,
to explore new options to augment future capital
and funding requirements.
The present economic and industrial climate is B Paul Muktieh

buoyant with supportive government policies
and incentives and promises good business
opportunity for the Corporation. With the
infrastructure development proposed by the

Financial Highlights
(Rs. Crore)
Financial Year 2008-09 2009-10 % Change
Loan Outstanding 425.71 526.37 23.6
Interest on Loans 29.95 44.06 47.1
Total Income 52.83 61.76 16.9
Total Expenditure 10.96 10.56 -3.7
Profit Before Tax 41.87 51.20 22.3
Profit After Tax 29.68 33.25 12.0
Net worth 308.08 340.46 10.5
Total Assets 608.12 731.09 20.2
2009-10 2008-09
2009-10 2008-09
Interest on Loans Total Income Total Expenditure Profit Before Tax Profit After Tax Loan Outstanding Net worth Total Assets
Operating Result 2008-09 2009-10

Interest income as percentage to average working funds (%) 8.43 9.56
Non-interest income as percentage to average working funds (%) 2.27 1.03
Operating profit as a percentage to average working funds (%) 8.48 8.79
Return on average assets (%) 5.78 5.44
Earnings Per Share (in Rs.) 2.97 3.32
(In Rs.
Net profit per employee 0.38 0.37
Crore)
Capital to Risk (Weighted) Assets Ratio (CRAR) (%) 70 61
2009-10 2008-09
Interest income Non-interest income Operating profit Return on Earnings Per Share Net profit Capital to Risk (Weighted)
as % to average as % to average as a % to average average assets per employee Assets Ratio (CRAR)
working funds working funds working funds

Performance Highlights
SANCTIONS
Total Sancons, Disbursements and Number of Projects Sanconed (As on March 31, 2010)
STATE-WISE AMOUNT SANCTIONED (Rs. in lakh)
Grand
State 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Total
Arunachal
0 518 235 38 418 291 136 942 762 1593 780 1230 1254 4750 12947
Pradesh
Assam 682 1164 2198 1725 3945 3166 3401 2639 4084 7053 8545 16588 21351 22370 98911
Manipur 0 66 49 263 350 80 59 76 65 50 109 519 540 308 2534
Meghalaya 0 0 173 772 2659 2582 2114 4607 3458 2874 3122 8510 1994 2143 35008
Mizoram 0 25 51 208 156 45 114 152 40 102 362 350 88 68 1761
Nagaland 0 110 34 234 490 124 80 102 63 167 258 195 432 943 3232
Sikkim 0 0 0 0 0 0 0 97 358 75 389 159 713 191 1982
Tripura 0 40 58 255 306 16 460 355 102 1218 307 394 318 2569 6398
Total 682 1923 2798 3495 8324 6304 6364 8970 8932 13132 13872 27945 26689 33341 162771
DISBURSEMENTS
STATE-WISE AMOUNT DISBURSED (Rs. in lakh)
Grand
State 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Total
Arunachal
0 9 24 150 206 397 246 341 778 610 725 118 415 3881 7900
Pradesh
Assam 615 227 1062 932 3360 2472 2170 2964 2285 5342 6680 8872 13071 13512 63564
Manipur 0 39 31 153 285 152 68 70 105 50 69 106 498 508 2134
Meghalaya 0 - 4 62 618 1467 2404 1349 1542 3199 1320 1405 3833 2365 19568
Mizoram 0 - 25 30 60 192 87 96 85 70 115 539 42 22 1363
Nagaland 0 80 34 41 323 259 97 175 152 32 105 252 321 230 2101
Sikkim 0 - - - - - - 14 88 128 355 103 76 78 842
Tripura 0 0 37 95 194 140 38 200 200 1000 55 249 153 212 2573
Total 615 355 1217 1463 5046 5079 5110 5209 5235 10431 9424 11644 18409 20808 100045
PROJECTS
STATE-WISE NUMBER OF PROJECTS SANCTIONED
Grand
State 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10
Total
Arunachal
0 2 2 1 4 4 10 11 21 37 55 16 17 17 197
Pradesh
Assam 2 12 13 25 37 49 69 91 129 110 98 66 73 72 846
Manipur 0 2 4 12 20 7 9 8 10 8 15 18 28 25 166
Meghalaya 0 0 2 3 7 12 20 19 19 16 14 10 9 22 153
Mizoram 0 1 3 5 12 3 7 48 5 45 17 1 18 16 181
Nagaland 0 1 3 12 19 9 11 8 9 8 19 20 7 16 142
Sikkim 0 0 0 0 0 0 0 12 36 23 27 18 9 17 142
Tripura 0 1 1 2 2 2 5 7 9 38 55 20 12 26 180
Total 2 19 28 60 101 86 131 204 238 285 300 169 173 211 2007

Cumulave State-wise and Scheme-wise sancons and disbursements (as on March 31, 2010)

NEDFi Offers
Our charter mandates that we, as a corporaon, extend financial services with a focus
on industrial projects, infrastructure, agri-horculture and allied industries and small
enterprises. With our operaonal area consisng of the 8 states of India’s North East,
we have devised our products which are tailor made for the region. This is primarily
because, we know that smaller and start-up businesses need more than just finance
at lower interest rates – they need a partner to help them sustain throughout the
inial period.
Our Project Term Loan provides long term finance for establishing new industrial units
and infrastructure projects and also expansion, diversificaon and modernizaon
of exisng units. Our Equipment Finance helps in the acquision of equipment by
financing as much as 70% of the cost. We assist units facing problems due to lack of
working capital with our Working Capital Finance schemes. Under our North East
Entrepreneurs Development Scheme (NEEDS) we help new projects, especially
first generaon entrepreneurs in the ny and SSI sectors. Our recent Iniave for
Development of Entrepreneurs in Agriculture (IDEA) encourages agriculture based
entrepreneurs with mely, adequate finance at reasonable interest rates. Our
Microfinance Scheme develops and supports NGOs, JLGs, CBOs and MFIs and also
builds capacity through training, workshops and exposure visits. On the same line as
NEEDS, are our special need based schemes: Women Entrepreneur Development
Scheme (WEDS) to help women entrepreneurs, Jute Enterprise Development
Scheme (JEDS) to assist ny new and exisng units in the jute sector and Scheme for
North East Handloom & Handicras (SNEHH) to help designers, manufacturer and
exporters in the handloom and handicras sector.
We also go beyond finance. To facilitate the tapping of the huge potenal of medicinal
& aromac plants, we have set up a Research and Development Centre at Khetri.
We disseminate economic informaon on various sectors through our NE Databank
and the published NEDFi Databank Quarterly. Our Techno-Economic Development
Fund (TEDF) finances the feasibility studies for industry and infrastructure projects
suitable for the North East. We conduct design and skill upgradaon programmes to
provide new designs, product diversificaon avenues, training arsans, introducing
beer producon techniques and providing linkages. Our special Business Facilitaon
Programme boosts the SME sector by targeng the first generaon entrepreneurs. To
promote the products of the region, we have set up NEDFi Haat and also facilitate the
parcipaon of the region’s units in various naonal and internaonal trade fairs and
exhibions. In addion, we provide fee-based Advisory and Consultaon Services
and funcon as a nodal agency to disburse Central Government Subsidies.

Catalyzing Growth...
NEDFi always strives to make a difference in the lives of the people of the North East. It
is a philosophy that has prompted the corporaon to pick up projects that have a direct
impact on the lives of the people connected – and also an indirect impact in enhancing
the economic scenario of the region. The following pages present some of the successful
enterprises that have benefied from NEDFi’s assistance and have become self-sustaining
in their own right.
Hotel Rendezvous, Gangtok, Sikkim

A paradise for tourists, Gangtok, has seen a rising demand for the hospitality sector in
the recent years. Hotel Rendezvous located in Gangtok, Sikkim is a spacious centrally
located hotel offering facilies like indoor parking, banquet hall and a host of comfortable
deluxe rooms with a homely touch. NEDFi assisted the company in its expansion and up
gradaon with a rupee term loan of Rs. 122 lakhs. Another rupee term loan of Rs. 60
lakhs was provided for the takeover of a loan from the state bank of India which was
taken for its first expansion. The hotel has since upgraded by adding eight suite rooms,
two presidenal suites and renovated the exisng forty five deluxe rooms, besides
undertaking a new construcon that will house a restaurant, coffee shop and bakery.

BISCON, Amingaon, Assam
M/s Brahmaputra Iron & Steel Co. Pvt. Ltd., popularly known as BISCON (by its brand
name), is an associate concern of C K Jaiswal group. The Company has been in the
business of manufacturing bars and rods for more than 20 years. The Company also
undertakes job work of conversion of billet into TMT bars for Steel Authority of India Ltd
(SAIL). The company has an installed Capacity of - 30000 MT of TMT and has availed a
Term loan of Rs. 1000 lakhs under NEDFi’s Corporate Loan Scheme.
Regional Instute Of Science & Technology

(RIST), Meghalaya
With the growing demand for good technical instutes in the region, ERD foundaon
(Educaon Research & Development Foundaon), a trust with years of dedicated service

in the field of professional educaon, has established an Engineering College under the
name of “REGIONAL INSTITUTE OF SCIENCE & TECHNOLOGY (RIST)” at Baridua, Raid
Marwet, Killing Road, 9th Mile, Meghalaya, about 5 km away from Ganeshguri point on
the G S Road, Guwaha. The College imparts educaon in several branches of engineering,
Management, MCA & vocaonal training in various fields. The intake capacity is 60 seats
for each branch of engineering and the total intake capacity per annum will be 480 seats.
NEDFi has sanconed a term loan of Rs. 1000 lakh towards seng up this centre of
excellence in the field of educaon in this region.
Nam Nang Commercial Complex, Gangtok

Promoted by The Royal Orchid Pvt. Ltd., Nam Nang Commercial Complex is a project for
construcon of a hotel and mulpurpose commercial building measuring 27,720 square
feet on a land of 2.39 acres. Located below Chintan Bhawan at Namnang Road in Gangtok,
Sikkim, the project was later modified to be a commercial building only at the end of MG
Road in Gangtok. NEDFi provided financial assistance of Rs. 1.95 crores and the project is
nearing compleon. With leased agreements completed with Pantaloon Retail India Ltd.
to establish a “Big Bazaar”, the complex, already housing the ICFAI University, it is slated
to be the first of its kind in Sikkim.
Assam Air Products Pvt. Ltd., Bongaigaon, Assam

The company has set up an oxygen gas boling unit of 7,20,000 cum capacity at New
Bongaigaon Industrial Estate, Bongaigaon at an esmated project cost of Rs 499 lakh. It
has been assisted to the tune of Rs 300 lakh under the term loan scheme of NEDFi. Assam
Air Products Pvt. Ltd. has been engaged in the area of boling of Industrial and medical
gases like Oxygen and Nitrogen. This unit is the fourth such unit under the company
across the state of Assam and all the previous units were successfully established with
assistance from NEDFi. The main applicaon of the products being in the core sector oil

industries for crude oil producon, industrial and medical users, research laboratories
and State Vety. Department, commercial establishments etc., it has been a necessity in
the region.
Residency Tourist Resort, Guwaha, Assam

A proprietorship firm of Mrs. Adi Dass, having its establishment at Dispur, Guwaha,
has been sanconed an amount of Rs. 50 lakh to set up this high end guest house having
a total installed capacity of eight Guest rooms, one Suite and one Restaurant. Guwaha,
being the hub of the Northeast and a Centre point for inflow of people from the other
states of the region for various reasons like educaon, transit, medical care, etc, the
need for guest houses providing adequate care and comfort has increased. This Guest
House which is ideally located in the heart of Guwaha is funconing well and provides
all the facilies required for a high end guest house in the city.

Joypur Mechanized Bricks (P) Ltd.
Sibsagar, Assam
The mechanized bricks industry in the Northeastern region holds good potenal due
to the commencement of several large central and state governmental developmental
acvies and private sector construcon works. Mechanised bricks have significant
quality advantages over convenonal bricks in terms of finish, size, consistency and
strength which makes them the first choice for construcon use. Promoted by Shri
Prameer Gogoi, a young entrepreneur of Sibsagar, M/s. Joypur Mechanised Bricks Pvt.
Ltd. was sanconed a term loan of Rs.190 lakhs for seng up a mechanized bricks
manufacturing unit with an installed capacity of 144 lakh bricks per annum at Rajmai
near Demow in Sibsagar district of Assam.
Sarda Plywood Industries Ltd., Tinsukia, Assam

Sarda Plywood Industries Ltd., promoted by Chitlangia group, a well established group
from Kolkata with existence for last five decades was sanconed a term loan of Rs.630
lakhs for seng up a plywood manufacturing unit at Jeypore, Dist. Tinsukia, Assam.
The main business of the Company is manufacturing of plywood and allied products.
Pursuant to an order of the Hon’ble Supreme Court of India in the year 1996 banning
felling and cung of trees in the North-Eastern region and operaon of wood based
industries, the company was forced to stop operaons. However, since the last few years,
the Government of India has allowed controlled felling of trees with proper replanng
plan and therefore has started giving licenses to companies involved in manufacturing
wood based products. With this development, the industry is on a path of revival.
Hotel Cimorb, Kohima, Nagaland

Hotel Cimorb, a 3 star category hotel located at Old Minister Hill, Kohima is promoted
by Mr. Curzo Tunyi, an upcoming businessman from Kohima. The hotel has 37 rooms
consisng of deluxe Rooms, super deluxe rooms and royal Suites, in addion to a
restaurant, party hall and conference hall. Tour Guidance and separate Gents and Ladies
Beauty Parlours are also available for guests. NEDFi assisted the project with a term loan
of Rs. 50 lakhs against the total project cost of Rs. 681 lakhs.
The hotel is on of the premier hotels in Kohima with modern facilies and ambience. It
also provides a direct employment to about 37 persons.
Winmark Diagnosc Services, Agartala, Tripura

M/s Winmark Diagnosc Services, a partnership firm located at Agartala Govt. Medical
College and GBP Hospital was financed by NEDFi under its Equipment Finance Scheme

for Rs. 119.00 lakh. The firm is running a MRI unit at Agartala Govt. Medical College and
Hospital now under the PPP Model. Running successfully and rendering yeoman service
to society, the Govt. of Tripura recently awarded this firm for seng up a CT scan unit at
AGMC & GBP Hospital, Agartala.
Protech View, Guwaha, Assam

The city of Guwaha is presently witnessing an increasing demand for residenal flats/
units. NEDFi has forayed into financing this sector. Protech Realtors Pvt. Ltd. is a private
limited Company which has started construcon of a residenal complex viz. Protech
View at an ideal locaon at Hengrabari, in the heart of the city with NEDFi’s assistance
of Rs. 250.00 lakh. It consists of 18 simplex and duplex flats with a total built-up area of
31924.92 sq .

Nurturing Entrepreneurship...
D.D. Readymade Garments, Itanagar, Arunachal Pradesh
Encouraging women entrepreneurs to be self sufficient has been an effort of NEDFi and an example of
this is this unit of readymade garments set up in Itanagar, Arunachal Pradesh. The promoter Ms. Cheng
Lhamu Philley had been
running a readymade
garment unit for the last
4 years on a small scale.
She had an inherent
desire to expand her
unit keeping different
branded clothes and
accessories to meet the
tastes of customers. She
approached NEDFi for
financial help and was
granted an assistance of
Rs. 4.25 lakhs under the
WEDS scheme.
T.B. Citronella Oil Industry, Assam

T.B. Citronella Oil Industry is a proprietorship unit of
Sri Churamoni Sarmah dealing with culvaon and
processing of Citronella and other medicinal and
aromac crops at Kamargaon, Burigang in district
Sonitpur, Assam. The unit is processing Citronella oil
and markeng it through their exisng network.
Highly experienced in this field, the firm was assisted

with a term loan of Rs. 7.25 lakh and NEEF so loan
of Rs. 3.75 lakh by NEDFi to part finance the project
of culvang 10 hectare citronella crop and seng
up a disllaon unit of 7 quintal capacity of fresh
herb per batch. The project is located at Nizbaghmari
and is being set up in an economically backward area
to harness the potenal and rich natural resources.
The unit has enriched the local farmers as there is
a sizeable demand of citronella from both the local
and export markets and it has also created rural
employment.

Bholagiry Industry, North Tripura
Located at Kailashahar in North Tripura,
Bholagiry Industry is promoted by Prasenjit
Debnath, a young local entrepreneur. The
unit manufactures checker les and water
filters which have a good demand in the
local and surrounding markets. Financed
by NEDFi under its NEEDS Scheme with
an amount of Rs. 4.25 lakhs, the firm
today supplies its finished goods not only
to the local market but also to the State
Government’s departments. A highly
successful unit which is growing day by
day, it also provides direct employment
to many local workers who have become
skilled in this trade.
Zoram Handloom
Weaving Industry,
Mizoram
This unit is located at Bawngkawn,
Aizawl. The promoter was assisted with
Rs. 4.25 lakh under NEEDS by NEDFi for
a handloom unit. The unit has been able
to purchase the essenal handloom
machineries with the finance and has
since then been able to produce various
designs of Mizo ‘Puan’ for sale in the
local market. The repayment from the
unit is regular and it has been able to
service the local demand.
Rupalim Traders,
Sonapur, Assam
Set up with an assistance of Rs.21.84
lakhs under the IDEA scheme of the
Corporaon, this unit is located in
Barni, Sonapur Mouza, Assam. The
loan was for seng up a poultry farm
with capve feed mill. The unit is
spread on an area of 5 bighas land.

Jyo Industries, Dergaon, Assam
M/s Jyo Industries set up in Dergaon, Golaghat District of Assam is a bamboo scks manufacturing unit
(used in Agarbathi manufacturing industries) having an installed capacity of Round sck 72 TPA. The
promoter was assisted by NEDFi in this venture through a Term Loan of Rs.6.00 lakh and NEEF So Loan
of Rs. 3.75 lakh to part finance the project. The unit is progressing well as the resource is readily available
and the workers are skilled in this trade.
Home Grown, Meghalaya

M/s Home Grown is
involved in making
Handloom &
Handicra items from
naturally available
materials such as
Cane, Bamboo and
tradionally designed
texles. Raw materials
are procured locally
from villagers and
some of her products
include Body Loofahs,
Mulpurpose Baskets,
Wine Bole Holders,
Magazine Rack, Trays,
Runners for Tables and Beds and Placemats for Tables, curtains etc. Besides supplying the products to
major departmental stores in and around Shillong, the promoter, Smt A. Mynsong also parcipates in
trade fairs and exhibions all over the country. She has a thorough knowledge and experience about
the business and markeng of products. With her immediate plans of producing contemporary products
for the export market, she has been assisted in her endeavour with a loan of 4.25 lakh under the WEDS
scheme of the corporaon.

Naturally Northeast, Meghalaya
This unit located in Shillong is being run by Smt Saihun Phanbuh, and is in the business of grinding spices,
packaging and markeng them in Shillong, Guwaha, New Delhi and Bangalore. Understanding the
potenal of handicras and gi items, the promoter decided to expand her business to include products
made of broomgrass, Christmas decoraons etc. The unit parcipated at the NEDFi-EPCH program on
design and product development and has parcipated in exhibions and trade fairs at NEDFi Haat, IITF
etc. This flourishing venture was assisted with an amount of Rs.2.27 lakh under the WEDS scheme.
Akshay Urja Shop, Mizoram

The unit located at Zarkawt,
Aizawl is unique in the
sense that it deals in trading
of solar equipments in the
local market and in repairing
of these equipments and
is the first of its kind in
the state. The promoter
had approached NEDFi for
financial assistance and
was granted an amount of
Rs. 4.25 lakh under NEEDS
for its Urja shop. The unit
is funconing well and is
also engaged in distribung
its products in the rural
markets through its retail
networking.

Towards Inclusive Growth
– Micro Finance
The poor are credit worthy – with this firm belief, NEDFi has forayed into the micro finance sector trying
to reach the un-reached in every corner of the North East. Having a rich experience of 11 years from 1999
when NEDFi first started providing micro credit, the corporaon presently is also involved in capacity
building of the NGOs and VOs through which it on lends to the SHGs, JLGs, individuals, etc for the purpose
of beer credit delivery and wider outreach. As on 31st March, 2010, it has sanconed about Rs.68 crore
under this scheme covering more than 1,00,000 people, out of which 76% are women.
Among its numerous success stories across the North East, Women’s Voluntary Organisaon from
Manipur and The Women’s Group & Handicra Mulpurpose Co-operave Society Limited from
Meghalaya are standing examples.
The Women’s Voluntary Organisaon

Registered in 1992 the Women’s
voluntary Organizaon (WVO)
in West Manipur is a non-
profit, non-governmental,
non-sectarian and non-polical
organizaon devoted to
working with the vulnerable
secons, advocang social
commitment through people
oriented planning and acon.
During the past 15 years,
WVO has taken up measures
to strengthen Community
Based Organizaons (CBOs),
re-formaon of women
organizaons, formaon of
credit groups, credit support to the groups, etc.
The Women’s Voluntary Organizaon undertakes its microfinance programme in villages, rural, semi
urban and urban areas in the state of Manipur. They work in areas where there is a concentraon of
unemployed and a large demand for microfinance services. Their methodology has been to first mobilize
and sensize the masses and then provide financial assistance to individuals of the SHG groups, based
on the strength of the group’s assurance. Along with this, inclucang strong savings behaviour, providing
technical assistance for capacity building of potenal clients in resource-poor areas, introducon of
beneficiaries to formal or semiformal market-oriented industrial environment and creang forward &
backward linkages have been their forte.
To lend support to their endeavour, the organizaon has been ably assisted by NEDFi several mes (five
loans), the first in 2001 for an amount of Rs.3 lakhs only. Because of their excellent track record of
ulizaon and mely repayment, they are presently servicing their 4th and the 5th loans for Rs.20 lakh and
Rs.48 lakh respecvely given for various income generang acvies.

M/s Women’s Group & Handicra Mulpurpose
Co-operave Society Limited
The Women’s Group & Handicra
Mulpurpose Co-operave Society
Limited having its registered office
at Madankynsaw, Mawkyndeng,
Jaina Hills District, Meghalaya was
set up with the main objecve of
upliing the economic acvies of
the rural women, helping them to
become independent by earning a
living for themselves. The society
was sanconed the first financial
assistance of Rs.1.50 lakhs from
NEDFi in May 2004 for various income
generang acvies under the micro
finance scheme.
The society was given a second round of assistance for a Common Facility Centre (CFC) for installaon of
machinery for the use of local arsans and for purchase of raw materials in the year 2009. The Society
is one of the leading groups in Meghalaya who has organised themselves into SHG’s and clusters to
produce handicra
items, which are made
from locally available
raw materials like cane,
bamboo, wild flowers
etc under the leadership
of Smt. Isabella Pakma,
Secretary of the society.
They have been acvely
parcipang in various
State, Regional, Naonal
and Internaonal
exhibions through NEDFi
and other government
agencies to promote the
sale of their items and
over the years have established themselves as one of the groups that has the capacity to take large
orders and execute them successfully.
Having earned a good reputaon for their dedicated service for the welfare of the masses, the society
has been able to implement a number of development projects with help from Government agencies,
like KVIC, Industries Department, Agriculture Department, SIDBI, NABARD, NRHM, DRDA etc. The society
has achieved recognion for their efforts in the form of: a) State Award of recognion, b) North Eastern
Excellence personality Award and Gold Medal form Friendship Forum of India, c) Great Indian Achiever
Award and d) Vocaonal Award from Rotary Club.

Giving Life to Ideas...
Steps Forward
There is an old proverb which says, “Give a man a fish and you feed him for a day; teach
him to fish and you feed him for life.” At NEDFi we believe that the best way to catalyze
socio-economic development is to help people help themselves. That is why we have
taken and connue to take iniaves that expose, train and upgrade the skills of the
people in different areas of economic producvity. A number of such steps taken by
NEDFi have borne fruit – new entrepreneurs have entered the sectors, producvity has
increased from the exisng units and they have been able to market their products more
effecvely. We recount some of the iniaves taken during the year 2009-10.
Designer lamps
With an intenon to focus on new areas, the art of making Designer Candles was
popularized among the hill states of the North East. While the general candles have
an exisng market, designer candles too have great market potenal in the region
especially during the fesve seasons of Christmas, Diwali, Easter etc. It can also be
marketed as corporate gis and birthday & anniversary gis. With four refineries in
the region, good quality of raw material is always available. NEDFi organized capacity
building programmes on Designer Candles at Aizawl in Mizoram, Shillong, Jowai and
Tura in Meghalaya, Jorhat and Margherita in Assam, Khonsa and Itanagar in Arunachal
Pradesh, Kohima and Dimapur in Nagaland and Imphal in Manipur. Over 200 arsans
were trained, while some of them were also extended credit facilies to establish their
own units. To create market linkage for the arsans, a Catalogue on Designer Candles
has been published.

Magic of Banana Bark
To promote eco-friendly handicra products, NEDFi took up a project to promote products
made from Banana Bark. An Integrated Design and Skill Development Programme on producing
handicra items from Banana Bark was iniated at Kathalcherra in Dhalai District of Tripura from
1st to 16th August 2009. 20 parcipants parcipated in the programme and learned the techniques
of processing banana bark and using it for making products like mats, gi boxes, bags, baskets, etc.
from a five member team from Industree Cras, Bangalore. The integrated course also included
techniques of using a variety of tools like metal frames, ra machine, loom and crotchet. The
products were launched during the North East Handloom and Handicra Fair 2009 held at NEDFi
Haat from 20th to 27th August 2009.
From social frustraon to producvity

Gramya Vikash Mancha (GVM), Nalbari, a NEDFi assisted NGO had prepared a Parcipatory
Vulnerability Analysis Report in village Chatra under Barigog Banbhag block of Nalbari District. The
study revealed that among the Socially Vulnerable group of the Bodo women living in the village, the
key issues which affected their lives were high level of social violence, conflict among communies,
producon and sale of country liquor which was the main source of income for most of the families,
low level of educaon among the women, feeling of alienaon amongst the villagers and an absence
of infrastructure for any alternave source of livelihood. On analysis of the issues and aer discussion

with the stakeholders, it was decided to iniate an approach to enhance capacity and need based
skill for alternave sustainable livelihood, provide support to establish infrastructure for alternave
source of livelihood and organize the women on a common plaorm to raise their voices, share
experiences and fulfill their dreams.
About 30 Bodo women from the village were imparted a month’s training on Design Development
on Weaving at ITI, Nalbari under the Centre for Praccal Livelihood Training (CPLT) iniave. As a
follow-up of the programme, an exposure visit was arranged to Bongaigaon and Kokrajhar, where
they could meet similar women groups working in an organized manner in the handloom sector.
The group started their work with 2 handlooms and they formed the Bagurumba Weaving Society.
NEDFi provided 10 looms, warping drum and other accessories including working capital support for
3 months so that the project could become self sustaining. GVM with the help of NEDFi constructed
a temporary shed for the Common Facility Centre and to further strengthen their capability, NEDFi
trained some of the women from the group on the use of indigenous variees of natural dyes at the
Corporaon's R&D Centre, Khetri. Today, the Society uses natural dye for their handloom products
which are being exported to Bhutan.
One Village One Product – Lemon

The “One Village One Product” Movement was advocated by Dr. Morihiko Hiramatsu, in 1979 in
Japan. The success of the OVOP model in countries like Japan, Thailand and Malawi has encouraged
us at NEDFi to concentrate on a single product from a single village. The village of Arara was a prime
locaon for NEDFi to adopt the model. Gramya Vikash Mancha (GVM), a NEDFi assisted NGO took
the iniave to organize the farmers ito the "Rangman Farmers Club" and introduced them to
lemno culvaon in their surplus lands. The willingness of the farmers to grow more lemon plants
and availability of the surplus land parcularly in their backyard gardens provided an opportunity
for NEDFi to show the way for the farmers to earn some addional income from their fallow lands.
NEDFi provided 10000 saplings to the 425 farmers along with accessories like pruning knife and
sprayers and also facilitated a one-me funding for the inial requirement of manure & inseccide.
Engaging a technical adviser as Mentor to the project, two local youths of the village were also sent
to a progressive nursery to facilitate on-the-job training. The NEDFi R&D Centre, Khetri will take-up
capacity building programmes, from me to me, for the farmers to update them with the latest

techniques for culvaon pracces. The Rangman Farmers Club now proposes to set-up their own
nursery for lemon saplings, so that they can meet their own demand for expansion and also can
supply to nearby villages.
NEDFi believes that such efforts can be replicated in other parts of the North East with acve
parcipaon of the stakeholders.
Creang linkages overseas

During the North East Business Summit held
at Guwaha on 15th & 16th September 2008,
a delegaon from the Bhutan Chamber of
Commerce & Industry (BCCI) interacted with
officials from NEDFi and the idea of linkage
for mutual co-operaon was conceived.
To develop the linkage, NEDFi facilitated
the parcipaon of entrepreneurs for the
North East in the exhibions organized by
BCCI.
The co-operaon built-up between BCCI

and NEDFi has resulted in the invitaon of
the Bhutanese business delegaon to the
North East from 22nd to 26th March 2010.
When offered the opportunity from the Ministry of DoNER for extending an invitaon to a foreign
business delegaon, Bhutan was the first choice, not only because it shares common boundary but
also because of the linkage developed between NEDFi and BCCI over the years. Recognizing tourism,
educaon and health as major sectors for mutual business relaonship, a series of meengs were
held in which the delegaon interacted with representaves from the tourism sector and medical
instuons. A wrap up meeng with NEDFi chalked out the priority areas and follow-up acon plan
which formed the guidelines for future iniaves of bilateral co-operaon.

And more steps to facilitate our entrepreneurs in the markeng
of their exquisite products

NER Vision 2020
– The Way Forward
Recognizing the need for new industrial opportunies, the Ministry of DoNER
and NEC have prepared the NER Vision 2020 document in consultaon with
all state governments, with the purpose to take the North East to a posion of
economic reckoning, to spread development to the grassroot and to ensure
that the region plays a prominent role in the country’s Look East Policy.
Among the various themac groups formed by the Ministry of DoNER, one
group is on Financial Services (Banking, Public Finance & Private Investment),
where the Ministry of Finance, Govt. of India, is the Convener and NEDFi is
the Co-convener. In pursuance of the mission envisaged in the ‘Vision 2020’
document, NEDFi took the iniave and organized the first consultave
workshop on “NER Vision 2020 – The Way Forward” in Aizawl, Mizoram on
the 19th of January, 2010. Inaugurated by Chief Minister of Mizoram, Mr.
Lal Thanhawla, the workshop was aended by Minister of Industries Mr.
S Haito, Minister of Trade & Commerce Mr. Lalrinliana Sailo, Member NEC
Mr. P P Srivastava and a host of dignitaries from various departments of the
state government, banks & financial instuons, NGOs, entrepreneurs and
intellectuals.
Specific acon points on strategies adopted for meeng the targets for the
State by 2020, constraints faced and intervenons required emerged from
the discussion.

Sri B. Paul Muktieh
Mr. B. Paul Muktieh, Chairman & Managing Director of NEDFi has 24 years of rich commercial and
development banking experience in diverse and varied areas of Financial system. Prior to joining NEDFi,
B Mr. Muktieh was heading the Small and Medium Enterprises Division of IDBI Bank as its Chief General
Manager at its Corporate office in Mumbai. He has also had the opportunity to serve in the North
East Region for a period of about seven years during his tenure with the Bank. A B.Tech (Electrical &
O Electronics) with a management degree from IIM, Ahmedabad, he has also been trained overseas in the
Bank of America in Hongkong, the Industrial Finance Corporation of Thailand, the Bangkok Bank and on
SME financing in Tokyo, Japan.
A
Besides serving as member on the Board of Directors of NEDFi from 2006 to 2008, Mr.Muktieh was also
on the Board of Directors of West Bengal Financial Corporation, West Bengal Consultancy Organization,
Rashtriya Gramin Vikash Nidhi and many large Industrial Corporates.
R Sri R. K. Garg
The CGM of SBI, NE Circle, joined as
Sri P. K. Biswas
He is the Regional Head, Agri-Business
a Probationary Officer in 1975, and Group, IDBI Bank Ltd., East & North
D has held, with distinction, a variety of

critical and challenging assignments in
the Bank. He is a Management Graduate
East Circle, Kolkata. Prior to this, he
was the General Manager, North East
from BHU. Prior to this assignment, he Zonal Office, Guwahati.
was Chief General Manager (Corporate
Strategy & New Businesses) at SBI
Corporate Office, Mumbai.
o Sri R. R. Dash Dr. D. N. Borthakur

An eminent agricultural scientist of
The Zonal Manager, Life Insurance
f Corporation of India, Kolkata. Prior to

this posting, he was Executive Director
(Inspection) at the Central Office,
national repute and retired as the Vice
Chancellor of the Assam Agricultural
University. Dr. Borthakur is well-known
Mumbai. for his outstanding contribution in
research & development in the field of
agriculture.
D Sri Lalthara, IAS Sri Surender Kumar, IAS

He is the Director, Ministry of
I The Chief Secretary, Government of

Nagaland who belongs to the Indian
Administrative Service (1975 Batch
Development of North Eastern Region
(DoNER), New Delhi. He belongs to
Indian Forest Service (1985 Batch).
- Nagaland Cadre). Earlier he was
R Additional Chief Secretary to the

Government of Nagaland.
Earlier he served as Chief Conservator
of Forests, Government of Tripura.
E Sri U K Sangma, IAS Sri V K Dev, IAS
C He is the Secretary, North Eastern

Council. He belongs to the Indian
Administrative Service (1978 Batch).
The Development Commissioner
(Finance), Government of Arunachal
Pradesh who belongs to Indian
Prior to joining this assignment, he Administrative Service (1987 Batch).
T was Principal Secretary, Social Welfare

Department, Government of Jharkhand.
O
Dr. R.K. Baisya Dr. R.B. Barman
R He is an eminent academician and
Professor in the Department of
He is an eminent economist and banker
of national repute and retired as the
Management Studies at Indian Institute
S of Technology (IIT), Delhi. He is also

the Director, of Booker India Pvt. Ltd.
(subsidiaries of Booker Group Plc., UK).
Executive Director of the Reserve Bank
of India. Dr. Barman is well-known for
his outstanding contribution in research
31 | Annual Report 2009-10 & development in the field of banking.
directors' Report
The Directors of your Company have pleasure in presenting their Annual Report and
Accounts for the year ended 31st March, 2010.
FINANCIAL REVIEWS
The financial results of the year are highlighted below:
Working Results (Rs. Crore)

Financial Year 2008-09 2009-10
Gross Income 52.83 61.76
Expenditure 8.81 7.78
Provisioning 2.15 2.78
Profit Before Tax 41.87 51.20
Profit After Tax 29.68 33.25
Earnings Per Share (in Rs.) 2.97 3.32
Dividend 3.00 3.00
Interest income as percentage to average working
funds (%) 8.43 9.56
Non-interest income as percentage to average
working funds (%) 2.27 1.03
Operating profit as a percentage to average
working funds (%) 8.48 8.79
Return on average assets (%) 5.78 5.44
Net profit per employee 0.38 0.37
Capital to Risk (Weighted) Assets Ratio (CRAR) (%) 70 61
Financial Position
Authorised Capital 500.00 500.00
Paid up Capital 100.00 100.00
General Reserve 16.00 15.00
Net worth 308.08 340.46
Total Assets 608.12 731.09
Sanctions 266.89 333.41
Disbursements 184.09 208.08
Loan Outstanding 425.71 526.37
Recovery (%) 73.80 73.64
SURGING AHEAD
Over the past fifteen years, the Corporation has established itself as the premier
development financial institution of the North-East and with its limited outreach
and manpower has made significant progress and growth in a region with difficult
topography and vast diversity. With cumulative loan sanctions of Rs. 1627.72 crore as

at the end of March 2010, the Corporation has surged REVIEW OF OPERATIONS
ahead, gathering momentum year after year, and has
made a significant contribution to the economy of the During the year under review-
NE Region. • The Corporation had cumulative book size i.e.,
During the year, the Corporation has reached new net portfolio of loans and other credit facilities
heights in key parameters such as gross income, profits, aggregating Rs. 526.37 crore. This is 24% higher
sanctions, disbursements and outstanding. Steady and as compared to Rs. 425.71 crore as at 31st March,
healthy growth in sanctions and disbursements in the 2009. Credit exposure to five emerging sectors
past few years are translating into rising revenue – contract finance, cement, iron & steel, power
and higher earnings. To view this growth in the right generation and micro finance – constituted around
perspective, it is necessary to observe the sanctions Rs. 270 crore which is 51.3% of the loan book.
and disbursements during the past five years along • An amount of Rs. 333.41 crore was sanctioned to
with cumulative performance as on 31st March, 2010: 211 new and viable projects and disbursement
was 13% higher at 208.08 crore. More significantly,
(Rs. Crore) overdues were reduced, and the recoveries totalled
Year Sanctions Disbursements Rs. 148.98 crore (an increase of over 24%).
2005-06 131.31 104.31
• The recovery of loans at 74% was almost same with
2006-07 138.72 94.24 the year-end figure of 74% in the last fiscal.
2007-08 279.45 116.44
• Out of the 38 sectors financed by the Corporation,
2008-09 266.89 184.09
the maximum recovery has been from the
2009-10 331.41 208.08
industries engaged in beverages, cement, ferro-
(Rs. Crore) alloy and industrial gases, all at 100%, followed
Cumulative by educational & training institute (99.36%), drug
Year As on As on & pharmaceuticals (97.59%), power (97.23%), iron
31.03.2009 31.03.2010 & steel (97.13%), jute based industries (96.24%),
Sanctions 1294.31 1627.72 real estate industry (95.21%), equipment finance
Disbursements 792.37 1000.45 (94.95%) and contract finance (91.75%).
No. of Projects 1796 2007 • Lowest recovery has been in sectors such as textiles
Capital Investment & yarns (4.79%), agri & allied (23.45%), rubber
Facilitated in NER 4576 6129 based industries (25.98%), handloom & handicraft
No. of Employment (28.56%), capital goods (31.27%), bamboo & wood
Generated 58445 60098 based industries (33.93%), tea processing (34.52%),
The operating efficiency of the Corporation has medical equipments & diagnostic (37.97%),
also been improving from year to year. For the year petroleum products (38.18%) and paper & paper
2009-10, operating profit as a percentage to average products (38.48%).
working funds was 8.79% as compared to 8.48% in the • Net NPAs to net loans & advances stood at 2.47% as
previous year. Return on average assets was 5.44% in at 31st March 2010 and gross NPA stood at 14.01%,
the year under review as compared to 5.78% in 2008- much lower than 3.73% and 17.42% respectively as
09. Net profit was Rs. 33.25 crore as against Rs. 29.68 at 31st March, 2009.
crore in 2008-09, an improvement of 12% over the • The reduction in gross NPA was facilitated by the
previous year. Capital Adequacy Ratio is 61% as against Corporation’s focus on cash recoveries through
last year’s 70%. consistent recovery drives, settlements under OTS
and early resolution of disputes through DRT.
During the current financial year Rs 15 crore was
transferred to General Reserve of the company, • Recovery proceedings through Lok Adalats have
Rs 1 crore to Reserve for Market & Entrepreneurial proved to be an effective instrument for smaller
Development, Rs 6.65 crore to Statutory Reserve under loans of below Rs. 10 lakh. Further, the Corporation
RBI Act, 1934 and Rs 7.26 crore to Special Reserve u/s has made provision on NPAs of Rs. 278.28 lakh
36(1) (viii) of I.T Act, 1961. as mandated under the prudential norms of the
Reserve Bank of India.
The Board of Directors of the Corporation has
recommended a dividend of Rs. 0.30 per share for the The Corporation has also taken due consideration of the
financial year 2009-10. The payout ratio is 7.6% of the genuine needs of the entrepreneurs for restructuring/
net profit and total outgo on account of dividend and reschedulement of loans whenever necessary, to
tax thereon is Rs. 350.99 lakh. ensure continued viability of the assisted projects for
maintenance of the growth momentum.

Micro Finance Enabling environment
The Micro Finance Scheme, an effective instrument The present industrial climate is buoyant with supportive
for financial inclusion, was launched to meet the government policies and incentives. The Minister for
needs of smaller entrepreneurs in the interior areas DoNER has periodically reviewed the progress made
of the Region. Through this Scheme, NEDFi supports in streamlining mandatory allocation/spending by
Central Ministries in the North Eastern Region (NER).
Non Government Organisations (NGOs) for on-lending
The Ministry’s initiative to promote tourism in the
to their beneficiaries (preferably Self-Help Group or
North East through several relaxations has lead to the
individuals) for taking up productive activities. During
rapid development of tourism infrastructure. One of
the financial year, loans sanctioned under the scheme the main constraints for preparation of infrastructure
aggregated Rs. 17.12 crore covering 28 projects and development plans in the region is lack of adequate
24802 beneficiaries. Till the FY 2009-10, cumulative data. In this regard, the Ministry has taken up steps
sanctions and disbursements were Rs. 67.84 crore and for computing district level infrastructure indices
Rs. 55.60 crore respectively to 401 NGOs/MFIs/CBOs for the North Eastern States. The States have been
from 8 North Eastern States, to reach out to 108169 requested to provide district-wise data on 16 broad
beneficiaries, of which 76% are women. indicators relating to infrastructure.
(Rs. Crore) The Ministry is also making efforts to capitalize on the

advantages offered by the strategic location of the
Micro Finance 2008-09 2009-10
North-East Region as a bridgehead to the countries
Sanctions 15.10 17.12 of South and Southeast Asia for the Region’s own
Disbursements 12.29 16.96 economic development as well as that of the rest of
the country. It has also taken measures to finalize new
No. of Projects 20 28
guidelines for NLCPR, enhancing connectivity in the
No. of SHGs/ JLGs
Groups assisted 3147 3904 NER and translating NER Vision 2020 into reality.
No. of beneficiaries 23638 24802 After the announcement of North Eastern Industrial
No. of women and Investment Promotion Policy (NEIIPP), 2007 which
beneficiaries 21253 22370 created an enabling climate for investments and the
large allocations under the 11th Plan Period to the
Notable activities of the Corporation under
infrastructure and other sectors in the Region, the
Microfinance Scheme: Corporation has tried to focus on the comparative
• 4 Workshops cum Training Programs on “Managing advantage in each state. The Corporation has been
Micro Finance” were conducted in Tura and continuing its efforts in promoting the NEIIPP’ 2007
by printing and circulating updated book on NEIIPP’
Shillong in Meghalaya, Dharmanagar in Tripura
2007 along with latest guidelines, conducting various
and Guwahati. Under these programmes, a total
consultative workshops to disseminate the benefits
number of 71 participants from 39 NGOs were
under it and keeping close liaison within the Industries
imparted training. Departments of the States. Since the inception of
• Awareness seminars on micro finance were NEIIPP’ 2007 till March 2010, the DIPP has received
conducted in areas where people were unaware of enquiries based on IEM & LOI for 210 projects for the
Region with an aggregate investment outlay of Rs.
micro finance and its significance. NEDFi conducted
22766 crore.
two such programmes, one in Gangtok and another
in Tinsukia. The response was overwhelming BUSINESS DEVELOPMENT
with a total number of 76 participants from 44
organizations.
INITIATIVES
To fulfill its mandate to promote entrepreneurship in
• An improvised module of the awareness seminars
a region where development of infrastructure and
was developed where, in addition to theoretical
industrial growth within the region is uneven and the
discourse on micro credit, the participants were capacity for absorption of credit is at different
made to work together and interact by sharing stages of maturity in the states, the Corporation has
their experiences and need for interventions. One initiated various business development programmes,
such awareness generation seminar cum workshop promotional activities, research & development
was initiated in Gangtok in which 34 participants programmes and promotional and other socially
from 25 organizations attended. relevant activities. Some of them are mentioned
below:

• During the North East Business Summit held at Services group formed to expedite the progress of
Guwahati from 15th to 16th September, 2008, a the Region as envisaged in the ‘NER Vision 2020’
delegation of Bhutan Chamber of Commerce Document, has organized one day Workshop on
& Industry (BCCI) interacted with the Officials “NER Vision 2020 – The Way Forward” at Aizawl
of NEDFi and the linkage for mutual co- (Mizoram) on 19th January, 2010 and planning
operation was conceived. As a follow up of that to organize the same by September 2010 in the
collaboration, during FY 2009-10 NEDFi facilitated remaining states of NER. The basic objective of
the participation of entrepreneurs of NER in the organizing this Workshop is to bring together
following exhibitions organized by BCCI: all stakeholders, concerned institutions and
organizations of the each State on a common
- SAARC FAIR, Thimphu from 11th to 14th
platform to chalk out the workable strategies for
September, 2009.
all states for achieving the task outlined in the
- Bhutan India Regional Friendship Trade Fair, Vision Document.
Gelephu, Bhutan during 8th to 12th January,
2010. TEDF STUDIES
• CMD, NEDFi gave a presentation on the possible
The Corporation conducts various techno economic
linkage that can be developed between North
studies on the request of the Governments of the North
East & Bhutan at a Seminar held during the SAARC
Eastern States. Over the years NEDFi has completed
Fair. This facilitated the identification of potential
62 studies. Some of the important studies which have
areas of partnership between Bhutan & North
been completed during the year 2009-10 are:
Eastern Region.
• To bolster the friendship and co-operation, NEDFi 1. Feasibility Study for setting up of Banana &
invited the Bhutanese Business Delegate as well as Pineapple Fibre based units in Tripura.
the Exhibitors to NER. With the financial assistance 2. Preparation of DPRs for assessment of Soil Erosion,
from the Ministry of DoNER, NEDFi facilitated its Nature and Extent and Suitable Control Measures
the visit of 30 member delegations (19 Business for 7 districts of Assam viz. Dhemaji, Dibrugarh,
delegates and 11 Exhibitors) led by Mr. Chen Chen Goalpara, Jorhat, Kamrup, Nalbari and Sonitpur.
Dorji, Vice President, BCCI from 22nd to 26th March,
3. Study on River Erosion Controlling by Use of Bio
2010.
System in River Dikrong, Lakhimpur Dist.
• The Delegation attended a Seminar at Guwahati
on 23rd March and another Seminar at Shillong on Ongoing Studies:
24th March, 2010. Apart from the seminars, they 1. Feasibility Study for involvement of the local
met Hon’ble Minister of DoNER, Govt. of India and community in the Kaziranga National Park
the Hon’ble Minister of Industries & Commerce,
Govt. of Assam and held a series of meetings with 2. Feasibility Study on Mechanized Process of
various entrepreneurs. A wrap-up meeting was Manufacturing Muga Silk Fabric
held on 26th March, 2010 with NEDFi to work out 3. Study and Action Plan on Post Bird Flu Scenario of
the priority areas and follow-up action plan, which Poultry Sector in Assam
will work as the guidelines for future initiatives
of bilateral co-operation. It was observed that 4. Study to Assess and Evaluate the Impact of
Tourism, Education and Health are the major NEIIPP 2007- with support from the North Eastern
sectors that can be immediately taken up for Council.
mutual business relationship. The Corporation is in NEDFi has also initiated a Study and action plan for
the process of preparing a directory of the major Promoting Fruit and Vegetable Processing Industries in
educational institutes and health care facilities the State of Arunachal Pradesh on request from the
available in Shillong, Guwahati and in and around Govt. of Arunachal Pradesh.
areas adjoining the border areas of Bhutan.
The Study and Action Plan prepared by NEDFi on the
• Bhutan Trade Show was also organized at NEDFi
Assam Gas Cracker Project has been accepted by the
Haat from 23rd to 25th March, 2010 where 8 units
Govt. of Assam and various steps including skill building
displayed their products including Bhutan Board
of workforce, setting up of Plastic parks, planning for
Products Ltd, Bio Bhutan, Army Welfare Project,
plastic machinery fair have been initiated. As a follow-
Bhutan Steel Pvt. Ltd., Bhutan agro Industries Ltd.
up of the study NEDFi brought out a compendium of
etc.
27 project profiles which can guide first generation
• NEDFi, being the Co-Convener of the Financial entrepreneurs for taking up of the project. These

project profiles dealing with downstream products of can meet their own demand for expansion and also
the gas cracker unit have generated a lot of interest can supply to nearby villages.
among entrepreneurs in the plastic sector.
Special Initiative: Empowering women through
ALTERNATIVE LIVELIHOODS INITIATIVE value addition to a natural skill
Initiative on a readily available resource: Banana NEDFi has set up a Common Facility Centre (CFC) at
Bark Chatra Village, Nalbari for 30 Bodo women (formed
into a society, ‘Bagurumba Weaving Society’) who
To promote eco-friendly handicraft products,
were imparted training on design development in
NEDFi took up a project to promote products made
weaving through the Centre for practical livelihood
from Banana Bark. An Integrated Design and Skill
training. The community development approach was
Development Programme on producing handicraft
based on the following:
items from Banana Bark was initiated at Kathalcherra
in Dhalai District of Tripura from 1st to 16th August, • Enhancing capacity and need based skill for
2009. 20 participants attended the programme and alternative sustainable livelihood
learned the techniques of processing banana bark
• Providing support to establish infrastructure for
and using it for making products like mats, gift boxes,
alternative source of livelihood
bags, basket etc. The integrated course included
techniques of using varieties of tools like metal frames, • Organizing women in a common platform to raise
ratt machine, loom and crotchet. A five member their voices, sharing experience and fulfill their
team of Industree Crafts, Bangalore was engaged to dreams
provide the training to the artisans. The products
NEDFi’s support through the CFC includes 10 nos. of
were launched during the North East Handloom and
looms, Warping Drum, and other accessories including
Handicraft Fair 2009 held at NEDFi Haat from 20th to
a working capital support of 3 months so that the
27th August, 2009.
project can run by itself. The CFC was inaugurated on
Capacity Building of Artisan: Water Hyacinth Craft 3rd November, 2009.
NEDFi started promotion of making handicraft Focus on new areas: Designer Candle
products from water hyacinth in August 2008 in a
With an aim to focus on new areas, the art of making
small way. Over the period NEDFi experimented with
Designer Candles was popularized among the Hill
different product techniques and have also helped in
states of the North Eastern Region. The designer
skill building capacity of over 130 artisans. During the
candles have great market potential in the Region
period, unique Open Workshops were conducted at
especially during the festive seasons of Christmas,
NEDFi Haat from 16th to 19th November, 2009 and 18th
Diwali, Easter, etc. Capacity building programmes
to 22nd January, 2010 to popularize the crafts among
on Designer Candles were held at Aizawl (Mizoram),
the masses and to create awareness about it among
Shillong, Jowai and Tura (Meghalaya), Jorhat and
the common people. NEDFi has now taken-up a project
Margherita (Assam), Khonsa and Itanagar (Arunachal
for next three years with the financial assistance from
Pradesh), Kohima and Dimapur (Nagaland), Imphal
North Eastern Council, Shillong to build capacity of
(Manipur). More than 200 artisans were trained during
1000 artisans in Water Hyacinth Craft.
the programmes. Apart from publishing a Catalogue on
Initiative to improve income level of marginal and Designer Candles and circulating among the artisans,
small farmers: One Village One Product (OVOP) NEDFi has also extended credit facilities to some of
model the artisans to establish their own unit.
The success of OVOP model in countries like Japan, Aggressive International

Thailand, Malawi, etc. has encouraged NEDFi to take
the initiative to reciprocate the model in Assam. NEDFi Marketing Programme (AIMP)
has carried out the experiment in the agrarian village Workshop on Export Procedure & Documentation:
of Arara with the help of its assisted NGO, Gramya In the year 2009-10, altogether 4 programmes were
Vikas Manch (GVM) for cultivation of lemon fruit. conducted in the states of Mizoram, Nagaland,
The NEDFi R&D Centre, Khetri has taken up capacity Arunachal Pradesh and Manipur where 163 participants
building programmes for the farmers to update them attended the programmes. During the one-day
with the latest techniques for cultivation practices. event, the entrepreneurs were imparted knowledge
The farmers have been grouped into a society “The on the various issues related to export oriented
Rangman Krishak Gosthi” which now proposes to set- documentations.
up their own nursery for lemon saplings, so that they

Providing Marketing Linkages Entrepreneurs from all the 8 North Eastern States
participated in these programmes.
During the year 2009-10, twenty six fairs were
organized at the NEDFi Haat at Ambari and facilitated Specific Product Design Programme: A total of
sale of products worth Rs. 2.50 crore. NEDFi Haat 18 specific product design programmes were also
mostly provides support to the unorganised sector organized during the year. Product and design
of the industry. Artisans from the rural areas are upgradation training for Banana Bark, Water Hyacinth,
provided with a platform to market their traditional Kauna Craft and Candles were organized under this
and indigenous products during the various fairs project.
organized at the NEDFi Haat.
Entrepreneurs selected from the programmes are
NEDFi Haat celebrated the organizing of the 200th facilitated by providing marketing linkage through
Fair on 19th December, 2009 with the inauguration participation in the Indian Handicraft and Gift Fair
of Gramya Mela co-organised by DRDA Morigaon and held twice a year at the Indian Exposition Mart at
DRDA Udalguri. Greater Noida.
NEDFi participated in the India International Trade During the year, NEDFi organized 17 Awareness Programmes
Fair (IITF) 2009 organized at Pragati Maidan, New on System of Rice Intensification (SRI) at various locations
Delhi from 14th to 27th November, 2009. All together 36 of the Region. NEDFi also organized exposure visits of the
units from the eight North Eastern States participated farmers. More than 1000 farmers were imparted training
in the event. Sale of Rs. 65 lakh was recorded from on the important features of SRI.
the NEDFi Pavilion apart from other business tie-ups
and linkages. This annual affair has become a much CENTRE FOR PRACTICAL
awaited marketing event among the unorganized
sectors who want to promote the rural products at a
LIVELIHOOD TRAINING
national level. Centre for Practical Livelihood Training (CPLT) Nalbari
NEDFi have been providing assistance to the artisans (Assam), a RUDSETI type institute, which was set up
of Handloom and Handicraft Industry in the Region in by the Corporation to directly help rural unemployed
terms of design and sourcing markets for the products. youth to get trained, to avail bank finance and
Accordingly, selected entrepreneurs from the region eventually become self-employed, conducted twelve
are given a chance to participate in Indian Handicraft training programmes during the year in trades like
and Gift Fair (IHGF) held at India Expo Mart, Greater welding, LMV driving, steel fabrication, plumbering,
Noida twice a year. More than 5000 buyers representing two wheeler repairing, motor mechanic and beautician
various buying houses of national and international programme, where 221 rural youth were trained. Till
repute visited the fair. 24 entrepreneurs from the date, CPLT has conducted 19 training programmes
Region participated in the 28th IHGF-Autum 2009 held where 357 rural youth were imparted training. The
from 10th to 13th October, 2009 and made a business institute has tied-up with local NGOs to facilitate the
of around Rs. 60 lakh. Products made from Water forward and backward linkages.
Hyacinth and Banana Bark was introduced for the 1st
time during the fair and received a great response. R & D CENTRE ACTIVITIES
During the 29th edition of IHGF-Spring 2010 held from The centre is running 3 research projects sponsored by
20th to 23rd February, 2010 NEDFi participated with the Dept. of Bio-Technology (DBT), Dept. of Science
24 entrepreneurs from the region and generated a & Technology (DST) and National Medicinal Plants
business of about Rs. 1.50 crore. Board (NMPB), viz.
The SAARC FAIR was held at Thimphu, Bhutan from (i) Multi-location field trial of high yielding cultivar of
11th to 14th September, 2009 and NEDFi facilitated Patchouli in N.E. India,
participation of 7 units.
(ii) Replication of bio-fuel plants developed at JJS
NEDFi also facilitated 12 units from the North East to Academy of Technical Education, Bangalore and
participate in Bhutan India Regional Friendship Trade
Fair which was held at Gelephu, Bhutan during 8th to (iii) Network project on RET medicinal plants
12th January, 2010 conservation and sustainable utilization in South and
N.E. India.
Skill Upgradation
The centre is also a partner for National Agricultural
Skill Development Programme: A total of 4 Innovative project (NAIP), under ICAR, operated by
programmes were conducted during the year in the Assam Agricultural University for micro-financing the
states of Tripura, Assam, Meghalaya and Mizoram. beneficiaries of the scheme.

Training 18th October & 1st November, 2009 for creating
awareness on MAP.
During the period under report the NEDFi R & D
Centre undertook 44 training programmes both on- 2. Two days Training Programme on Cultivation of
campus and off-campus for officers of the government Patchouli & other Aromatic crops was organized
departments, entrepreneurs, farmers and NGOs. The at R&D Centre on 7-8 November. 32 numbers of
centre has organized two National seminars, two EDP farmers attended the training programme, which
programmes, one buyers seller meet and took part in was inaugurated by the Director of Horticulture,
10 numbers of exhibitions in and outside the state. Govt. of Tripura.
3. R&D Centre was invited as resource centre for a
Research activities
Workshop on Tribal medicines and its practices
Research activities of the centre have been organized by the Tribal Welfare Department.
concentrated on agro- technologies, comparative
4. The Project-in-charge visited the South Tripura
productivity trails of medicinal and aromatic plants,
District on 14th December along with Deputy
studies on systematic development of agro-technology,
Member Secretary of Dept. of Biotechnology for
intercropping trials, studies on organic manures on
the proposed project on “Nutritional & Medicinal
yield performance of MAPs, etc.
crops in Rural Tripura” for selection of site and
Extension activities beneficiaries.
More than 5 lakh seedlings of MAPs were supplied to 5. R&D Centre participated in Five days State Level
the farmers, besides offering technical guidance to Science Fair organized by Govt. of Tripura from
the entrepreneurs, farmers and other stakeholders. 26th to 30th December, 2009 at Agartala.
Field visits and advisory systems were also carried out
6. R&D Centre was attended the ATMA fair organized by
side by side as extension activities.
the Dept. of Agriculture, Govt. of Tripura at Khowai
R & D publications Subdivision of West Tripura, where the activities of
the centre was displayed for common people.
• Hand Book on Medicinal & aromatic plants (Package
of practices) CORPORATE SOCIAL
• Investment opportunities in Medicinal & Aromatic RESPONSIBILITY
Plant species
NEDFi’s mission to create an enabling climate for
• Medicinal plants of North East India (Ed.) community development and its commitment for
socio economic development in the region is reflected
• Promotion of selected RET Medicinal Plants for Ex-
in its CSR activities. The social support fund created
situ conservation in field Gene Bank
under CSR has been rendering yeoman service in areas
• Leaflets on Jatropha and Patchouli cultivation. which need focus and up-liftment, earning goodwill
and establishing the essence of good corporate
Activities to be undertaken governance. During the year under review, a few
• Setting up of Bio-control laboratory for commercial initiatives under CSR are listed below:
production of bio- fungicides and pesticides.
The Corporate has made contributions
• A pilot scale Fractional column for isolation of
to the following institutions
derivatives of essential oils.
• Pratishruti Foundation to promote the traditional
• Trial and demonstration of high demand temperate
art of Satriya Dance in the United Kingdom.
MAP like Chirata, Kutki,Costus, Jatamansii, Paris
and Daruhaldu and subtropical crop –sukchini/ • Rotary Club, Guwahati West, for training of its
dupchini. members for Community development.
• Screening of elite variety of Pongamia from wild • Don Bosco Past Pupil Association to organize Assam
source. Ranking Table Tennis Championship among the
youth of Assam.
Main activities of R & D centre,
• Indian Council for Child Welfare for welfare of
Nagichera, Agartala, Tripura orphanage and street children on children’s day
1. Herbal Health camp was conducted at R&D Centre
• Tezpur University for promoting the Shakardeva
by the Doctor’s of AYUSH department on 4th, 9th,
Lecture

• Vaani – Deaf Children Foundation ISO 9001:2008 CERTIFICATION TO
• Assistance for AAROHAN – NEDFi provided Financial NEDFi
support of Rs. 2 lakh to Dr Bhabendra Nath Saikia
Children Welfare Trust which is exclusively engaged NEDFi has obtained ISO 9001:2008 Certification for
for giving quality learning to the children in the its operations and services with effect from 2nd April,
filed of co-curricular activities, through free 2009 by Det Norske Veritas AS (DNV), Netherlands.
training in drawing and painting, dance, drama, The Corporation’s Quality Policy says:
tabla and computer to children belonging to below
poverty line families. “We are committed to enhance customer satisfaction
by providing timely and effective financial solutions
CSR activities organized during NEDFi’s including promotional, developmental and support
Incorporation Month of August at Head services to entrepreneurs by continuously improving
the effectiveness of the Quality Management System
office and at Branches
and employee development.”
• Head Office: Free Pediatric check up for orphanage
Earlier NEDFi was certified as ISO 9001:2000 for its
Sishu Griha and Kalyani Shelter Home for Girl
Project Finance, HRD & Admin and Finance & Accounts
Child, eye check up for old age home “Amar Ghar”
Dept. only. Now, NEDFi has extended its scope for ISO
and free magic show and lunch for Jalukbari Sishu
Certification to include Micro Finance Dept. and R&D
Kalyan Sadan (Orphanage).
Centre, Khetri besides Project Finance, HRD & Admin
• Shillong Branch: Assistance for furniture for and Finance & Accounts Dept. With the implementation
Mentally Challenged and Cerebral Palsy school of the new standards of ISO 9001:2008, NEDFi expects
Students. to further improve the satisfaction levels of its
• Gangtok Branch: Donation of old computers and customers.
purchase of books, dictionaries, maps etc.
CONSULTANCY AND ADVISORY
• Agartala Branch: Donation of gas stove and two
ceiling fans to orphanages.
SERVICES
Fee-based services form a significant proportion of the
• Aizawl Branch: Organized one day entrepreneurship
business income of a present-day Financial Institution.
training with Mizoram Entrepreneur Network.
The plan is to make stable non-interest income to
• Tinsukia Branch: Donated 10 nos. of steel bed with form a major part of NEDFi’s operating income. The
mattress, bed sheet, pillow & cover for blind girl demand for fee-based services like Consultancy &
child in blind school, Moran. Advisory is growing especially from the Central & State
Governments who are increasingly looking to set up
NODAL AGENCY ROLE projects in the Public Private Partnership (PPP) model.
Corporate Advisory services such as loan syndication,
The Central Government in the Budget of 1998-99
evaluation of joint ventures, debt restructuring etc.
appointed NEDFi as the nodal agency for disbursement
can assume importance in the North East, provided the
of Central Government subsidies under its Industrial
level of industrialization goes up significantly. Central
Policies for the North Eastern Region. Cumulative
and State Governments are also looking at Third Party
disbursement of the subsidies as on 31st March, 2010
Monitoring for their infrastructure projects like roads
stood at Rs.1429.70 crore.
& bridges.
(Amount in Rs. Crore) (As on March 31, 2010)
In view of the above, NEDFi has started a Consultancy
Subsidy No. of Amount and Advisory Division which has been awarded several
Claims disbursed prestigious assignments. Assignments which have
Central Transport Subsidy been completed successfully so far are:
7086 1209.49
(CTS)
1. NCEUS (National Commission for Enterprises in the
Central Investment Subsidy
1040 125.03 Unorganised Sector) – completed two studies for
(CCIS)
Central Interest Subsidy (CIS) 1169 89.06 Meghalaya and Manipur;
Central Comprehensive 2. “Asset Valuation of GMC” - jointly with SREI;
463 6.12
Insurance Subsidy 3. DPR for NECTAR with Construction Industry
Total 9758 1429.70 Development Council;
4. Cashew Processing Unit at Mankachar - Consultancy

Project for NERAMAC; new systems recommended in the report.
5. Ginger Processing Unit at Byrnihat - Consultancy • Promotion Scheme for Service Staff framed and
Project for NERAMAC; their service conditions and leave rules applicable
6. Structuring of proposal to takeover Modern Food to them were reviewed and a better package was
Industries unit at Silchar - Consultancy Project for worked out for them.
NERAMAC;
• The last pay revision in NEDFi came into effect
7. Bid process management for a Solid Waste from 2006 and as such the next pay revision is
Management Project for Guwahati Municipal likely to be due in 2011. Accordingly work related
Corporation; to pay revision has been initiated.
8. Rural Development Plan of Assam for UNICEF &
• Training need of the officers have been identified
Govt. of Assam;
and based on it the training plan has been
9. Status of Self Help Groups in Assam for UNICEF & prepared.
Govt. of Assam.
• Industrial Dearness Allowance (IDA) was introduced
Some of the on-going assignments are and is being paid to regular employees on the Basic
Pay w.e.f. 1st April 2010.
“Financial Restructuring of Guwahati Municipal
Corporation” - jointly with SREI; As on 31st March, 2010, the Corporation had 87 staff
members on its roll. Employees from all the North
“Pre Investment Feasibility Report for developing
Eastern states make NEDFi a mini North East where
three tourism properties” for Govt. of Meghalaya;
the people from remotest corner of the Region feel
IT Park at Guwahati in association with SREI; at home.
Third Party Monitoring of infrastructure projects for In order to improve the capability of the organisation
Govt. of Arunachal Pradesh. in the face of its specialized developmental role
and competitive business atmosphere, and to keep
More projects are expected from other States and
its employees abreast of the latest developments,
NEC. NEDFi is empanelled with Asian Development
the staff at all levels are sent for training programs,
bank for providing consultancy services and has bid
conferences, seminars and workshops conducted at
for two ADB assisted projects in Shillong and Agartala.
various centers in the country covering all related fields
NEDFi expects many more consultancy assignments
of activity. It is to be noted that 27 employees were
to be awarded to it in the near future as it gains
nominated for 17 numbers of training programmes,
experience and starts qualifying to bid for projects
workshops, seminars & conferences conducted in
on its own.
reputed institutions like IIMs, EDI, ASCI, NPC, etc. The
HRD INITIATIVES team at NEDFi forms a cohesive group and has made
remarkable efforts to carry the organization to high
People in an organisation are its greatest asset. For levels of performance. They remain the core strength
long term growth and stability of the Corporation, of the Corporation.
NEDFi recognizes the need to periodically review
and refine its HR Policy, and attune it to current Shri K.N. Hazarika Chairman & Managing Director of
requirements. It tries to build capacities and the Corporation received during the year remuneration
strengthen its organizational structure to handle in excess of limit prescribed under Section 217 (2A) of
the administrative and regulatory demands of the the Companies Act, 1956.
changing and competitive environment. On the basis
of on-going manpower planning exercise, the under-
NEDFi’s permanent office
mentioned recruitment programmes have been NEDFi has shifted to its permanent office building,
initiated during the year: ‘NEDFi House’, located at G.S.Road, Dispur, Guwahati
and has started its operations from the new building
• As part of the recruitment plan, 8 Management
w.e.f. 26th July 2010. The new premises not only
Trainees were recruited from various NE
provides office space to meet NEDFi’s own growing
universities.
needs, but also provides a centre for hosting industry
• CORD – M, the Hyderabad based Consultancy Firm and commerce related activities such as exhibitions,
that was hired to develop a complete HR Policy for trade shows, seminars and conferences, as well as
NEDFi including R & D Centre at Khetri submitted state-of-art office space for corporate and industrial
their report and the organization is in the process houses.
of implementing the changes and adopting various

New Thrust Areas other than lack of integrity of promoter and deliberate
default
Capital Augmentation: In our priorities list, the
capital augmentation of the Corporation occupies the b) there is prima facie scope of restoring the
top most priority. After the announcement of North viability of the business to generate adequate surplus
Eastern Industrial and Investment Promotion Policy for repayment of the unit’s dues to banks/FI.
(NEIIPP), 2007, and the large allocations under the Initiative under “Vision 2020”: NEDFi has taken the
11th Plan Period to the infrastructure and other sectors initiative as the co-convenor of the Thematic Group
in the Region, the Corporation needs to augment on Financial Services to organise the consultative
its resource base substantially by tapping market workshops on the same in all the North Eastern states.
resources to make the most of these opportunities. The challenges are enormous as the vision document
The Corporation is exploring various avenues for envisages the execution of a six pronged strategy
raising its resources. for fulfillment of the vision; inclusive governance,
Network expansion and branch strengthening is creation of development opportunities, developing
our another priority areas. We have increased our sectors with comparative advantage, capacity
geographical coverage considerably by opening eight development of people and institutions, creating a
new branches/ Representative Offices in Assam, hospitable investment climate and ensuring public
Tripura and Meghalaya, during last two years. We and private investment. Therefore to achieve these
are focusing further expansion of our network and on objectives, the corporation has made a humble effort
strengthening our Branches further and empowering to bring together all the stake holders, to make the
them to reduce turn around time in decision making goals under the vision more focused and actionable
by rationalizing processes and procedures. and to supplement the state government’s efforts
towards achieving the vision for the people of each
Business Networking: We believe that the national state.
and international linkages to the Region will provide
the necessary impetus in harnessing its untapped IT Road Map: The Corporation is in the process on
potential. In this connection, at national level, a preparing IT Road Map with the help of a reputed
series of business investment meets at various cities consultant, Price Waterhouse and Coopers (PwC)
in the country is planned, starting with Ahmedabad, based on its future requirements. NEDFi is working on
to create awareness about the Region’s inherent to make the existing MIS more efficient and at the
investment potential. Like previous years, we also plan same time also exploring the possibility of installing
to create linkages with our neighbouring countries to new and more suitable MIS for the Corporation.
promote the North East and its potential across the
border to encourage private and foreign investment,
Board of Directors
technology transfer, etc. NEDFi’s Board has 11 (eleven) Directors of which all
except one are Non-Executive Director. In the last
Food Processing Sector: NEDFi has identified the
Annual General Meeting held on 15th September 2009.
food processing sector (which is presently facing the
Sri U.K. Sangma and Dr. D.N. Borthakur retired as
twin constraints of inadequate credit flow and lack
Director by rotation and were re-appointed at the
of awareness among entrepreneurs) as a thrust area
same meeting. In the same meeting Sarbasri P.K.
for economic development of this agro-horticultural
Biswas, A.K. Deb and Surender Kumar were appointed.
rich region. It has organized business facilitation
Sri A.K. Deb and Sri K.N. Hazarika relinquished their
programmes in all the States for creating awareness
office as Director and Chairman & Managing Director
about the food processing industry as a viable
with effect from 26th June 2010 and 1st July 2010
economic activity and is eager to extend financial
respectively.
support to entrepreneurs for setting up new food
processing units. Dr. R.B. Barman, Former Executive Director, Reserve
Bank of India, has been appointed as Director of
Rehabilitation of Sick Units: In its attempt to revive
the Company with effect from 28th March 2010 and
potential business ventures, the corporation has
will hold office up to the date of ensuing Annual
also taken the initiative to implement the principles
General Meeting of the Company. In the meantime,
applicable for rehabilitation of sick units. It is a very
the Company has received a notice from IDBI Bank
important measure for securing up-gradation and
Ltd. (member) signifying its intention to propose
recovery of an impaired asset without calling up the
the candidature of Dr. R.B. Barman for the office of
loan specially in cases where -
Director. Necessary resolution in this regard has been
a) the loan has become an NPA due to factors incorporated in the notice for the Fifteenth Annual

General Meeting. under review, six Directors’ Committee Meetings were
held.
Dr. R.K. Baisya, Department of Management Studies, IIT
Delhi, has been appointed as Director of the Company
Corporate Credit Committee
with effect from 28th March 2010 and will hold office
up to the date of ensuing Annual General Meeting In conformity with the principle of delegation of
of the Company. In the meantime, the Company financial and administrative powers, the Corporate
has received a notice from IDBI Bank Ltd. (member) Credit Committee (I) and Corporate Credit Committee
signifying its intention to propose the candidature of (II) have been constituted for speedy disposal of
Dr. R.K. Baisya for the office of Director. Necessary proposals. Credit Proposals having loan component
resolution in this regard has been incorporated in the upto (i) Rs.2 crore and (ii) Rs.25 Lakh are placed
notice for the Fifteenth Annual General Meeting. before Corporate Credit Committee (I) and Corporate
Credit Committee (II) respectively. Eight Corporate
Sri R.K. Garg, Chief General Manager, State Bank of
Credit Committee (I) meetings and eleven Corporate
India, Local Head Office, NE Circle, Guwahati has
Credit Committee (II) meetings were held during the
been appointed as Director of the Company with
year.
effect from 26th June 2010 and will hold office up to
the date of ensuing Annual General Meeting of the Directors’ Responsibility
Company. In the meantime, the Company received a
notice from SBI (member) signifying its intention to Statement
propose the candidature of Sri R.K. Garg for the office To the best of their knowledge and belief and according
of Director. Necessary resolution in this regard has to the information and explanations furnished to them,
been incorporated in the notice for the Twelfth Annual your Directors make the following statement in terms
General Meeting. of Section 217 (2AA) of the Companies Act, 1956.
Sri B.P. Muktieh was appointed as Chairman and a. That in the preparation of the Balance Sheet and
Managing Director of the Company with effect from Profit & Loss Account for the year ended 31st March,
1st July 2010 subject to approval of shareholders in 2010, the applicable Accounting Standards issued
General Meeting. Necessary resolution in this regard by the Institute of Chartered Accountants of India
has been incorporated in the notice for Fifteenth have been followed;
Annual General Meeting.
b. That appropriate accounting policies have been
As per provisions of Section 256 of the Companies selected and applied consistently and judgments
Act, 1956, Sarbasri Lalthara, IAS, and V.K. Dev, IAS, and estimates that are reasonable have been made
will retire by rotation at the ensuing Annual General so as to give a true and fair view of the state of
Meeting. affairs and of the profit of the Company as at the
end of the financial year;
Audit Committee
c. That proper and sufficient care has been taken
An Audit Committee comprising of non-executive for the maintenance of accounting records in
Directors of the Company provides direction to the accordance with the provisions of the Companies
audit and risk management function of the Corporation. Act, 1956 for safeguarding the assets of the
The responsibilities of the Audit Committee comprises, Company and for preventing and detecting fraud
among others, overseeing the Company’s financial and other irregularities. To ensure this, the
reporting process to ensure proper disclosure of Company has established internal control systems,
financial statements, reviewing financial statements consistent with its size and nature of operations,
before submission to the Board, reviewing adequacy subject to the inherent limitations that should be
and compliance of internal control systems, reviewing recognized in weighing the assurance provided
findings of the internal investigation and discussions by any such system of internal controls. These
with external auditors. Four Audit Committee Meetings systems are reviewed and updated on an ongoing
were held during the year. basis. Periodic internal audits are conducted to
provide reasonable assurance of compliance of
Directors’ Committee these systems;
The sanction and approval of loan proposals in
d. That the annual accounts for the year ended
excess of specific limits are vested with Directors’
31st March, 2010 have been prepared on a going
Committee. All the credit proposals having loan
concern basis.
component above Rs. 2 crore are placed before the
Directors’ Committee for approval. During the year

Auditors Appreciation
On the advice of the Comptroller and Auditor General NEDFi is grateful to its promoters, IDBI, SBI, SIDBI,
of India, Messrs O. P. Bhansali & Co., Chartered IFCI, ICICI, Administrator of specified undertaking of
Accountants, Guwahati, were appointed by the Unit Trust of India, LIC, GIC and its subsidiaries for the
Department of Companies Affairs, Ministry of Law, support and encouragement extended by them since
Justice and Company Affairs, GOI as Auditors for the its inception. The Corporation is also indebted to the
year 2009-2010 under Section 619(2) of the Companies office of His Excellency the President of India, Prime
Act, 1956. They hold office till the end of the ensuing Minister’s Office, Ministry of Development of North
Annual General Meeting. Eastern Region, Government of India, the Banking
Division, Department of Economic Affairs, Ministry of
Conservation of energy, technology Finance, Ministries of Industry, Commerce, Ministry of
absorption, foreign exchange income MSME, and other departments of Central Government,
and outgo the State Governments and all India institutions,
Reserve Bank of India, commercial banks etc. for the
Being a financial institution, energy consumption at
magnanimous support it has received from all of them.
NEDFi is negligible. The organization, meanwhile,
NEDFi has considerably benefited from their support,
has been in the process of adopting the latest
cooperation and guidance for its sustainable economic
information technology to provide the best facilities
growth.
to its customers. There has been no foreign exchange
income and outgo during the year.
By order of the Board
Guwahati (B P Muktieh)
Chairman and Managing Director

auditors' Report
required by law have been kept by the company
so far as appears from our examinaon of the
The Members of the Company,
books.
North Eastern Development Finance Corporaon Limited,
c) the Balance Sheet , Profit & Loss Account and
Guwaha
Cash Flow Statement dealt with by this report are
1. We have audited the aached Balance Sheet of NORTH in agreement with the books of account;
EASTERN DEVELOPMENT FINANCE CORPORATION
d) in our opinion & according to the informaon
LIMITED, GUWAHATI as at 31st March, 2010, the
and explanaons given to us and subject to
Profit & Loss Account and the Cash Flow Statement
significant accounng policies disclosed in the
for the year ended on that date, annexed thereto.
notes on accounts, the Balance Sheet, Profit &
These financial statements are the responsibility of
Loss Account and the Cash Flow Statement dealt
the Company’s Management. Our responsibility is
with by this report comply with the accounng
to express an opinion on these financial statements
standards referred to in secon 211(3C) of the
based on our audit.
Companies Act, 1956;
2. We conducted our audit in accordance with auding
e) according to the informaon and explanaons
standards generally accepted in India. Those standards
given to us and on the basis of wrien
require that we plan and perform the audit to obtain
representaons received from the directors and
reasonable assurance about whether the financial
taken on record by the Board of directors, none of
statements are free of material misstatement. An
the directors is disqualified as on 31st March,2010
audit includes examining, on a test basis, evidence
from being appointed as director in terms of
supporng the amounts and disclosure in the financial
secon 274(1) (g) of the Companies Act,1956.
statements. An audit also includes assessing the
accounng principles used and significant esmates f) In our opinion and to the best of our informaon
made by the Management, as well as evaluang the and according to the explanaons given to us, the
overall financial statement presentaon. We believe said accounts read with the accounng policies
that our audit provides a reasonable basis for our and notes appearing in the schedule annexed
opinion. thereto, give the informaon required by the
Companies Act, 1956 in the manner so required
3. As required by the Companies (Auditor’s Report) order,
and give a true and fair view in conformity with
2003, issued by the Central Govt. of India in terms of
the accounng principles generally accepted in
Secon 227(4A) of the Companies Act, 1956, we give
India.
in the Annexure a statement on the maers specified
in paragraphs 4 and 5 of the said order to the extent i) in the case of the Balance Sheet , of the state
applicable to the company. of affairs of the company as at 31st March,
2010;
4. Further to our comments in the Annexure referred to
in paragraph 3 above we report that: ii) in the case of the Profit & Loss Account,
of the PROFIT of the company for the year
a) we have obtained all the informaon and
ended on that date.
explanaons which to the best of our knowledge
and belief were necessary for the purpose of our iii) in the case of Cash Flow Statement, of the
audit; cash flows for the year ended on that date
b) in our opinion , proper books of account as
For O.P. BHANSALI & CO.

Chartered Accountants
(O.P. BHANSALI)
GUWAHATI Partner
28th June 2010 M. No. 51532
FRN. 314051E

Annexure to Audit Report
(Referred To In Paragraph 3 of Our Report of Even Date) 6. The company has not accepted any deposit from the
public.
1. In respect of its fixed
fixed assets:
a) The Company has maintained proper record 7. The Company has an internal audit system which
showing full parculars including quantave broadly commensurate with the size of the company
details and situaon of fixed assets on the basis of and the nature of its business. However no system
available informaon. informaon audit was conducted during the year.
b) As explained to us the fixed assets of the 8. As informed to us the Central Government has not
Company have been physically verified by the prescribed maintenance of Cost record U/s 209 (i) (d)
management during the year which in our of the Companies Act 1956.
opinion is reasonable having regard to the size of
the company and nature of its assets. According 9. In respect of statutory dues:
to the informaon and explanaons given to us by
the management, no material discrepancies where a) as per the informaon and explanaon given to us
noced on such physical verificaon. by the management and according to the record of
the company, undisputed statutory dues including
c) In our opinion the company has not disposed off
Provident Fund, Investors educaon and protecon
substanal part of fixed assets during the year and
fund, employees state insurance, Income Tax, Sale
the going concern status of the company is not
tax, Wealth Tax, service tax, Custom Duty and
affected.
excise duty, cess, and other material statutory
2. Since the company does not carry any inventory, clause dues have been generally regularly deposited
4(ii) of the Companies (Auditor’s Report) Order 2003 is with the appropriate authories. According to
not applicable to the company the explanaons and informaon given to us no
undisputed amount payable in respect of aforesaid
3. a) The company have not granted or taken loan to/
dues were outstanding, as at :: 31-03-2010 for a
from Companies, firms or other pares covered
period of more than 6 months from the date they
in the register maintained under Sec. 301 of the
become payable.
Companies Act 1956.
b) The company has given loans to other pares in b) According to the record of the Company and as per
the normal course of business of lending. the informaon and explanaon given to us , no
disputed amount payable in respect of the dues
c) The company has taken a loan of Rs.60.00 crore of Sale Tax / Custom duty / Wealth Tax / Service
from Government of India during the year which Tax / Excise Duty / Cess were outstanding as at
is interest free and its terms & condions are 31.03.2010, except a sum of Rs. 10,503,099/- in
not prima facie prejudicial to the interest of the respect of Income Tax for the Financial Year 2007
company and repayments of loans taken has not – 08 under the Income Tax Act, 1961 against which
fallen due yet. an appeal is pending before the Commissioner of
4. a) In our opinion and according to the explanaons Income Tax (Appeals), Guwaha.
and informaon given to us, there are reasonable
10. The Company has no accumulated losses and has
internal control system commensurate with the
not incurred any cash losses during the financial year
size of the company and the nature of its business
covered by our audit or in the immediately preceding
with regard to the purchase of fixed assets and
financial year.
with regard to the sale of services.
11. Based on our audit procedures and according to the
5. In respect of transacons covered under Sec. 301 of the
informaon and explanaon given to us the Company
Companies Act 1956:
has no dues to financial instuons, banks or debenture
According to the informaon & explanaons given to us holders.
there are no contracts or arrangements parculars of
which need to be entered into the register maintained 12. According to the informaon and explanaon given to
under Sec. 301 of the Companies Act 1956. Consequently us no loans and advances have been granted by the
the requirement of clause (V)(b) of paragraph 4 of the Company on the basis of security by way of pledge of
order is not applicable. shares, debentures and other securies.

13. According to the informaon and explanaon given to and those raised during the year were applied for the
us, the Company is not a chit fund or a nidhi / mutual purpose for which they were raised.
benefit fund / society. Therefore, clause 4 (xiii) of 17. According to the informaon & explanaon given to us
the Companies (Auditor’s Report) Order, 2003 is not and on an overall examinaon of the Balance Sheet of
applicable to the Company. the company, we report that there are no funds raised
14. According to the informaon and explanaon given on short term basis that have been used for long term
to us, the company does not deal or trade in shares, investment.
debentures, Securies & Other investments .The share, 18. According to the informaon & explanaons given to us,
debentures and other investments have been held by the company has not made any preferenal allotment
the company under investment porolio and are in its of shares during the year to pares and companies
own name. covered in the Register maintained under secon 301
15. According to the informaon and explanaon given to of the Companies Act, 1956.
us, the company has not given any guarantee for loans 19. As informed to us, the company has not raised any
taken by others from banks or financial instuons. debentures.
16. The company has raised interest free term loan from 20. As informed to us, the company has not raised any
Central Government. The term loan has been applied for money by way of public issue during the year.
the purpose of which it was raised. Pending ulizaons
the funds were temporarily invested in short term 21. According to the informaon and explanaons given to
investments and placed as fixed deposits with banks. us, no material fraud on or by the company has been
The term loans outstanding at the beginning of the year noced or reported during the year.
For O.P. BHANSALI & CO.

(O.P. BHANSALI)
GUWAHATI Partner
28th June 2010 M. No. 51532

Comments of the Comptroller and Auditor General of India
under section 619 (4) of the Companies Act, 1956 on the
Accounts of North Eastern Development Finance Corporation
Limited, Guwahati for the year ended 31 March 2010.
The preparation of financial statements of North Eastern Development Finance Corporation Limited,
Guwahati for the year ended 31 March 2010 in accordance with the financial reporting framework
prescribed under the Companies Act, 1956 is the responsibility of the management of the company.
The Statutory Auditors appointed by the Comptroller and Auditor General of India under Section
619(2) of the Companies Act, 1956 are responsible for expressing opinion on these financial statements
under Section 227 of the Companies Act, 1956 based on independent audit in accordance with the
Auditing and Assurance Standards prescribed by their professional body, The Institute of Chartered
Accountants of India. This is stated to have been done by them vide their Audit Report dated 28
June 2010.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary
audit under Section 619(3) (b) of the Companies Act, 1956 of the financial statements of North
Eastern Development Finance Corporation Limited, Guwahati for the year ended 31 March 2010.
This supplementary audit has been carried out independently without access to the working papers
of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company
personnel and a selective examination of some of the accounting records. On the basis of my audit,
nothing significant has come to my knowledge which would give rise to any comment upon or
supplement to Statutory Auditors' Report under Section 619 (4) of the Companies Act, 1956.
For and on behalf of the
Comptroller & Auditor General of India
Place : Kolkata
Date : 29 July 2010
(Nandana Munshi)
Principal Director of Commercial Audit
& Ex-officio Member, Audit Board-I, Kolkata

BALANCE SHEET AS AT 31st MARCH 2010
As at As at
Sch. 31.03.2010 31.03.2009
Rs. Rs.
SOURCES OF FUND
Shareholders' Fund
a) Share Capital A 1,000,000,070 1,000,000,070
b) Reserve & Surplus B 2,404,600,107 2,080,833,778
c) Techno Economic C 266,878,495 3,671,478,672 262,126,717 3,342,960,565
Development Fund
Loan Funds
Interest Free Unsecured
Loan from Govt. of India 2,891,100,000 2,291,100,000
Deferred Tax Liability 39,661,062 15,084,864
TOTAL 6,602,239,734 5,649,145,429
APPLICATION OF FUND
Fixed Assets D
a) Gross Block 69,312,877 64,723,501
b) Less : Depreciation 36,533,382 33,572,992
c) Net Block 32,779,495 31,150,509
d) Capital Work in Progress 232,961,615 123,980,020
265,741,110 155,130,529
Investment E 414,995,907 479,032,405

Loans and Other Credit Facilities F 4,640,871,508 3,651,900,830
Current Assets, Loans & Advances G
a) Cash and Bank Balances 1,631,027,434 1,446,851,822
b) Other Current Assets 138,905,914 131,696,323
c) Loans & Advances 220,388,837 216,565,447
TOTAL 1,990,322,185 1,795,113,592
Less : Current Liabilities and Provisions H

a) Liabilities 474,187,015 248,156,249
b) Provisions 235,503,961 183,875,678
709,690,976 432,031,927
NET CURRENT ASSETS 1,280,631,209 1,363,081,665
TOTAL 6,602,239,734 5,649,145,429
Significant Accounting policies and
notes to the Accounts K 0
Schedules annexed hereto form

part of the Accounts.
For and on behalf of the Board of Directors In terms of our Audit Report of even date
For O.P.Bhansali & Co
(K.N.Hazarika) (D.N.Barthakur) (S.K. Baruah) (O.P. Bhansali)

Chairman cum Managing Director Director Company Secretary Partner
Guwahati M. No, 51532
the 28th day of June, 2010 FRN. 314051E

Profit & Loss Account For The Year Ended 31st March 2010
Year ended Year ended
31.03.2010 31.03.2009
Sch No. Rs. Rs.
INCOME
Income from sale of Investment (Other than Trade Investments) 32,797,639 96,826,589
Interest on loans 440,607,564 299,488,917
Interest on Fixed Deposits and Bonds 117,070,537 116,652,042
Upfront Fees 14,051,814 10,316,130
Rental Income 2,144,016 1,971,554
Miscellaneous Receipts 9,920,931 1,976,907
Consultancy charges received 407,978 756,498
Dividend 600,000 300,000
TOTAL 617,600,479 528,288,637
EXPENDITURE
Establishment expenses I 42,351,489 39,756,292
Administrative expenses J 28,529,782 24,074,543
Depreciation 2,960,388 2,859,072
Loans written off 2,794,040 20,871,027
Consultancy charges paid 393,189 492,996
Provision on Loans, credit facilities and Advances & Investments 27,827,689 1,495,640
Floating Provision 0 20,000,000
TOTAL 104,856,577 109,549,570
PROFIT BEFORE TAXATION 512,743,902 418,739,067
Prior Period Adjustment 744,626 244,683
Fringe Benefit Tax of Earlier Year (72,730) 3,020
Income Tax of Earlier Year 3,320,436 807,304
Provision for Taxation :
Deferred Tax Liability 24,576,198 13,987,861
Provision for Income Tax 151,681,838 105,900,996
Provision for Fringe Benefit Tax 0 1,014,218
PROFIT AFTER TAXATION 332,493,534 296,780,985
Balance brought from previous year 4,513,564 6,050,425
Profit available for Appropriations 337,007,098 302,831,410
Appropriations
General Reserve 150,000,000 160,000,000
Statutory Reserve under RBI Act, 1934 66,498,707 59,356,197
Special Reserve U/s 36 (1)(viii) of the Income Tax Act, 1961 72,578,473 43,863,148
Proposed Dividend 30,000,000 30,000,000
Additional Tax On Dividend 4,982,625 5,098,500
Reserve for Market & Entrepreneurial Development 10,000,000 0
Social Support Fund 0 0
Balance Carried Forward 2,947,294 4,513,564
Significant Accounting policies and notes to the Accounts K
Schedules annexed hereto form part of the Accounts.


Cash Flow Statement for the year ended 31.03.2010
As at As at
31.03.2010 31.03.2009
(Rs. in .000) (Rs. in .000)
Cash flows from Operating activities

Net profit before income tax 511,999 418,494
Adjustment for:
Depreciation charge for the year 2,960 2,859
Loans written off 2,794 20,871
Provision for unrealised rent 244 244
Loan loss provisions 27,584 21,496
Dividend received (600) (300)
Provision for Gratuity and Leave Encashment (532) 5,149
Net income/(expenditure) of Social Support Fund 793 (437)
Operating profit before working capital changes 545,243 468,376
Adjustments for:
(Increase) / Decrease in Advances (1,009,630) (978,215)
(Increase) / Decrease in Other Current Assets & Advances (26,906) (42,953)
Increase / (Decrease) in Other liabilities and Provisions 20,620 (1,320)
Cash Flow from operations (470,673) (554,112)
Direct Taxes paid (net of refund received) (94,290) (126,938)
Net cash flow / (used in) from operating activities (564,963) (681,050)
Cash flows from Investing activities

(Increase) / Decrease in Investment 264,263 180,737
Increase in Capital Work in Progress (88,421) (28,440)
Purchase of fixed assets (4,589) (1,643)
Dividend Received 600 300
Net cash flow / (used in) from Investing activities 171,852 150,954
Cash flows from Financing activities — —

Dividend and Dividend Tax paid (35,099) (35,099)
Increase / (Decrease) in Borrowings 600,000 600,000
Net cash flow / (used in) from financing activities 564,902 564,902
Net increase in cash and cash equivalents from

Operating, Investing and Financing Activities 171,791 34,806
Cash flows from Nodal Agency and Implementing Agency Activities

Net Income / (Expenditure) of TEDF 4,752 11,194
Increase / (Decrease) in Growth Centre, Central Subsidy and other
Central Funds 207,859 194,407
Net Increase in cash & cash equivalent from Nodal Agency activities 212,611 205,601
Net increase in cash and cash equivalents 384,402 240,407
Cash and cash equivalents at beginning of period

- Own funds 1,063,377 1,026,900
- Nodal Agency and Implement Agency funds 480,744 276,815
Cash and cash equivalents at end of period

- Own funds 1,250,412 1,063,377
- Nodal Agency and Implement Agency funds 678,111 480,744

As at As at
31.03.2010 31.03.2009
(Rs. in .000) (Rs. in .000)
Note 1
Cash and cash equivalents consist of cash in hand and balances
with banks, and investments in mutual funds.
Cash and cash equivalents included in the cash flow statement
comprise the following balance sheet amounts:
Units of mutual funds 297,496 97,270
Cash and bank balances
Cash in hand 158 11
Balance at Bank
With Scheduled Bank
(i) In Current Account 381,026 132,805
(ii) In Fixed Deposits 1,110,000 1,181,615
Balance at Bank (TEDF)
With Scheduled Bank
(i) In Current Account 9,843 2,420
(ii) In Fixed Deposits 130,000 130,000
1,928,523 1,544,122


Schedules Annexed to and forming part of the Annual Accounts
for the year ended 31-03-2010.
As at As at
31.03.2010 31.03.2009
Rs. Rs.
SCHEDULE A: SHARE CAPITAL
Authorised Capital
(500000000 Nos of Equity Shares of Rs. 10/- each) 5,000,000,000 5,000,000,000
Issued,Subscribed,Called up & Paid up capital
(100000007 Nos of Equity Shares of Rs. 10/- each,fully paid up) 1,000,000,070 1,000,000,070
SCHEDULE B : RESERVES & SURPLUS
General Reserve:
Balance brought forward from previous year 1,684,130,768 1,524,130,768
Add : Transferred from Profit and Loss Account 150,000,000 160,000,000
1,834,130,768 1,684,130,768
Reserve for Market & Entrepreneurial Development
Balance brought forward from previous year 11,927,914 11,927,914
Add : Transferred from Profit & Loss Account 10,000,000 0
Less : Utilised During the Year 1,475,574 20,452,340 0 11,927,914
Social Support Fund
Add : Transferred from Profit & Loss Account 0 0
Add : Income 1,244,330 1,016,674
31,473,970 31,683,095
Less : Utilised During the Year 451,044 31,022,926 1,453,455 30,229,640
North East Equity Fund
Balance brought forward from previous year (total fund) 79,870,500 79,870,500
Less : Provisions against Soft Loans under NEEDS 34,910,021 44,960,479 37,363,729 42,506,771
NHB-Strengthening R & D and Training Facility 1,262,000 178,000
India Exposition Mart Stalls Reserve 23,400,000 -
Statutory Reserve under RBI Act, 1934
Add: Transferred from Profit & Loss Account 66,498,707 259,982,680 59,356,197 193,483,973
Special Reserve created and maintained u/s 36(1)(viii)
of the Income Tax Act, 1961
Balance brought forward from previous year 43,863,148 0
Add: Transferred from Profit & Loss Account 72,578,473 116,441,621 43,863,148 43,863,148
Venture Capital Fund
Profit & Loss Account 2,947,294 4,513,564
2,404,600,107 2,080,833,778
SCHEDULE C :
TECHNO ECONOMIC DEVELOPMENT FUND
Balance brought forward 262,126,717 250,933,155
Add: Receipts and income from investments
during the year 24,256,378 21,756,600
286,383,095 272,689,755
Less : Utilised during the year 19,504,599 10,563,038
266,878,495 262,126,717

SCHEDULE D: FIXED ASSETS
Rs.

GROSS BLOCK DEPRECIATION NET BLOCK
Particulars Opening Additions Sale/disposal As at Depreciation Set on/off Depreciation Adjusted on Total as at As At As At
Balance During During 31.03.2010 up to During the During the Sale/disposal 31.03.2010 31.03.2010 31.03.2009
the period the period 31.03.2009 period period 31.03.2010
Interior Furnishing
& Fittings 6,390,312 2,132,516 0 8,522,828 4,722,320 0 448,524 0 5,170,844 3,351,984 1,667,992
Computers 9,612,842 1,370,732 0 10,983,574 8,446,901 0 699,122 0 9,146,023 1,837,551 1,165,941
Electrical Installation 5,125,729 0 0 5,125,729 3,247,711 0 261,232 0 3,508,943 1,616,786 1,878,018
Furniture & Fixture 9,060,295 258,564 0 9,318,859 6,347,880 0 530,006 0 6,877,886 2,440,974 2,712,417
Freehold Land 16,969,592 0 0 16,969,592 0 0 0 0 0 16,969,592 16,969,592
Machineries 12,034,746 371,522 0 12,406,268 7,494,595 0 667,230 0 8,161,825 4,244,443 4,540,151
Office Equipments 4,900,042 456,041 0 5,356,083 2,806,240 0 322,534 0 3,128,774 2,227,309 2,093,802
Vehicle 629,944 0 629,944 507,347 0 31,740 0 539,087 90,857 122,597
Total: 64,723,502 4,589,375 0 69,312,877 33,572,994 0 2,960,388 0 36,533,382 32,779,495 31,150,509
Figures for the
previous year 63,080,446 1,643,056 0 64,723,502 30,713,920 0 2,859,072 0 33,572,992 31,150,509 32,366,525
Schedules to the Accounts (Contd.)
As at As at
31.03.2010 31.03.2009
Rs. Rs.
SCHEDULE E: INVESTMENTS
Other Investments
A. In Fully Paid up Shares-Non Trade
Quoted
Premier Cryogenics Ltd.
Quoted at Cost'
(Fair value Rs.70,78,000/- Not traded -2009-10)
(2,00,000 shares of Rs. 10/- each) 2,000,000 2,000,000
Unquoted
Gauhati Neurological Research Centre Ltd. 2,500,000 2,500,000
(Unquoted at cost 250000 shares @ 10/- per share,
fair value Rs.44,92,500/-)
Konoklota Mahila Urban Co-Op Bank Ltd. 500,000 500,000
(Unquoted at cost 5000 shares @ 100/- per share,
fair value Rs.774,900/-)
Exotic Juices Ltd.
(Formerly: Good Samaritan Social Service Association) 1,000,000 1,000,000
(Unquoted at cost 100000 shares @ 10/- per share
Less: Provision for diminution in value of investments 1,000,000 0 1,000,000 0
DSS eContact Ltd.
(Unquoted 6,60,000 Equity Shares of Rs.10/- each) 6,600,000 6,600,000
Less : Provision for diminution in value of investments 6,600,000 0 6,600,000 0
B. In units of Bonds
IDBI Omni Bonds (TEDF) 100,000,000 100,000,000
(100 bonds @ Rs.10.00.000/- per bond, FY 2009-10 Not traded)
IDBI Omni Bonds 2005A 0 50,000,000
(50 bonds @ Rs.10,00,000/- per bond, FY 2009-10 Not traded)
C. In units of Mutual Funds
UTI -Treasury Advantage Fund 64,488,551 0
(53287.6870 units, Value as on 31.03.2010 Rs.65,910,933/-)
UTI -Treasury Advantage Fund (Others) 7,636,605 224,262,574
UTI -Floating Rate Fund (Others) 120,000,000 0
SBIMF - Capital Protection Oriented Fund 2,500,000 2,500,000
(250000 units, Value as on 31.03.2010 Rs.2,631,200/-)
UTI Mutual Fund - Bond Fund (TEDF) 5,242,106 5,242,106
UTI Mutual Fund - Fixed Maturity Plan (TEDF) 10,000,000 0
(1000000 units, Value as on 31.03.2010 Rs10,040,700./-)
UTI Mutual Fund - Capital Protection Fund (TEDF) 0 5,000,000
(500000 units, Value as on 31.03.2009 Rs.5,501,900/-)
Reliance Mutual Fund - Money Manager Fund 31,444,447 0
Reliance Mutual Fund - Money Manager Fund (Others) 68,684,198 87,027,725
414,995,907 479,032,405

As at As at
31.03.2010 31.03.2009
Rs. Rs.
SCHEDULE F: LOANS AND OTHER CREDIT FACILITIES

Term Loans 5,205,552,234 4,197,422,097
Soft Loan under NEEDS 58,182,356 59,720,428
5,263,734,590 4,257,142,525
Less :Provision 622,863,082 605,241,695
4,640,871,508 3,651,900,830
SCHEDULE G: CURRENT ASSETS, LOANS & ADVANCES

A. CURRENT ASSETS
a. Cash and Bank Balances
Cash in hand 157,862 11,029
Balance at Bank
-With Scheduled Bank
(i) In Current Account 381,025,965 132,805,281
(ii) In Fixed Deposits 1,110,000,100 1,181,615,394
1,491,026,065 1,314,420,675
Balance at Bank (TEDF)
-With Scheduled Bank
(i) In Current Account 9,843,506 2,420,018
(ii) In Fixed Deposits 130,000,000 130,000,100
139,843,506 132,420,118
Total (a) 1,631,027,434 1,446,851,822
b. Other Current Assets

Interest Receivable (Loan) accrued and due 39,482,650 32,897,984
Interest Receivable (Loan) accrued and not due 0 0
39,482,650 32,897,984
Interest Receivable on Fixed Deposits 84,606,677 79,100,628
Interest Receivable on Fixed Deposits(TEDF) 8,940,333 15,763,704
Interest Receivable (Staff) 2,790,757 1,968,407
Interest Receivable (Social Support fund)) 3,085,497 1,965,600
Total (b) 138,905,914 131,696,323
c. Loans and Advances

(Recoverable in cash or in kind or for value to be received
-unsecured but considered good)
Advance to others 11,719,030 3,282,552
Advance to staff 536,671 654,226
Advance Income Tax 128,000,000 106,000,000
Advance Fringe Benefit Tax 0 506,610
Security Deposit 180,856 36,635
Loan to staff 25,686,043 16,862,956
TDS Receivable 16,756,559 29,362,492
Income Tax Refundable 32,736,123 57,496,506
Other Receivables 1,144,262 528,432

SCHEDULE G: (Contd.)
As at As at
31.03.2010 31.03.2009
Rs. Rs.
UNDP A/c 186,714 186,714

216,946,258 214,917,123
Rent / Electricity charges receivable (Recoverable
in cash or in kind or for value to be received
-considered good/doubtful) 8,077,182 6,039,399
Less : Provision 4,634,603 4,391,075
3,442,579 1,648,324
Total (c) 220,388,837 216,565,447
TOTAL (a+b+c) 1,990,322,185 1,795,113,592
SCHEDULE H: CURRENT LIABILITIES & PROVISIONS
A. CURRENT LIABILITIES
Sundry creditors (for expenses) 2,119,190 3,090,353
Sundry creditors (for capital expenditure) 20,604,416 0
Other liabilities 19,338,953 24,445,882
NE Trade Expo Fund 43,768 43,768
Security Deposit 3,584,372 330528
MEFC- R & D Training Fund 1,628,187 1,628,187
Central Subsidies 426,868,129 218,617,530
TOTAL (A) 474,187,015 248,156,249
B. PROVISIONS
Provision for Leave Encashment 10,135,431 10,111,732
Provision for Gratuity 600,257 1,155,485
Provision for Standard Assets 18,103,811 10,594,747
Floating Provision against advances 20,000,000 20,000,000
Provision for Income Tax 151,681,838 105,900,996
Provision for Fringe Benefit Tax 0 1,014,218
Proposed Dividend 30,000,000 30,000,000
Additional Tax On Dividend 4,982,625 5,098,500
TOTAL (B) 235,503,961 183,875,678
TOTAL (A+B) 709,690,976 432,031,927

As at As at
31.03.2010 31.03.2009
Rs. Rs.
SCHEDULE I: ESTABLISHMENT EXPENSES

Salaries (Director) 3,635,974 1,298,329
Salaries(Others) 25,677,916 23,634,626
Employer's Provident Fund 2,363,173 1,843,738
Medical Reimbursement 1,642,488 1,080,461
Recruitment expenses 494,033 451,665
Local Conveyance 424,847 395,078
Vehicle Maintenance Reimbursement 2,141,438 1,652,735
Leave Travel Allowance 2,267,407 1,805,530
House Rent (117,300) (93,400)
Leave Encashment 1,108,754 4,380,815
Gratuity 287,217 1,629,149
Staff welfare 2,425,542 1,677,566
Total 42,351,489 39,756,292
SCHEDULE J: ADMINISTRATIVE EXPENSES

Advertisement & Publicity 1,702,397 1,040,263
Audit Expenses 298,595 330,612
Bank charges 156,621 150,941
BOD Meeting expenses 654,459 336,347
Books & Periodicals 233,519 191,074
Business Promotion 1,148,508 1,833,417
Car hire expenses 2,932,595 2,175,601
Conveyance 62,735 68,563
Databank Expenses 125,465 0
Donations 0 1,000
Electricity Charges & Electrical Expenses 1,107,797 775,613
Filing Fees 1,000 0
Honararium 20,000 2,500
India Exposition Mart Expenses (29,675) 0
Insurance charges 126,799 289,513
Legal & professional fees 2,979,947 1,654,587
Licence & Registration fees 2,000 0
Misc expenses 74,836 207,549
Printing & Stationery 1,688,842 1,707,672

As at As at
31.03.2010 31.03.2009
Rs. Rs.
Rent (Premises) 3,686,677 3,232,030

Repairs & Maintenance (Machine) 1,271,415 1,153,099
Repairs & Maintenance (Security Service Charges & Others) 2,631,261 1,671,119
Seminar & Conference expenses 707,032 418,492
Software Maintenance Charges 314,844 313,412
Service Tax Paid 11,769 12,000
Telephone charges & Postage 1,573,399 1,533,556
Training expenses 916,497 1,109,869
Travelling expenses(Director) 456,523 723,946
Travelling expenses(Others) 3,514,657 2,998,380
Internal Audit fees 82,060 66,180
Auditors' Remuneration:
Tax Audit Fees 11,030 11,030
Statutory Audit Fees 66,180 66,180
Total 28,529,782 24,074,543

Schedule-K: SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
A. Significant Accounting Policies
Basis of Preparation
The financial statements are prepared on the historical cost convention, on the accrual basis
of accounting and conform to statutory provisions and practices prevailing in India and in
accordance with the generally accepted accounting principles.
The preparation of financial statements requires the management to make estimates and
assumptions considered in the reported amount of assets and liabilities as on the date of financial
statements and the reported income and expenses for the reporting period. Management
believes that the estimates used in the preparation of the financial statements are prudent and
reasonable. Future results could differ from these estimates. Any revision in the accounting
estimates is recognized prospectively in the current and future period.
Revenue Recognition:
i) Interest income and charges on loan and other assistance portfolio is accounted for on
accrual basis except where interest and/or instalment of principal is due for more than 90
days as on the date of Balance Sheet, as per RBI Prudential norms for income recognition
applicable to banks / financial institutions. Interest income and other charges in respect
of such loans is taken credit on actual receipt basis.
ii) Upfront Fees, Loan Syndication Charges, Appraisal Fees, Dividend, and other miscellaneous
receipts are accounted for on cash basis.
iii) All other incomes and expenses except, interest on refund of tax or on demand tax, rates,
taxes & insurance, are accounted for on accrual basis.
iv) The income from Techno Economic Development Fund and Social Support Fund are
accounted on cash basis except interest on fixed deposit and appropriated to that account
resulting in appreciation of fund.
Advances and Provisions thereof
As per prudential norms for advances issued by RBI from time to time, assets representing
loans and other assistance portfolios are classified based on record of recovery as standard, sub
standard, doubtful and loss assets and provision is made for assets as per the said guidelines as
applicable to banks / financial institutions.
A general provision of 0.40% is made against Standard Assets.
Advances are stated net of provisions made for non performing assets except general provisions
for standard advances and floating provisions. Interest on non performing advances is netted off
and not recognized in the profit & loss account until actually received. Provision for standard
assets and floating provisions is included under “Other Liabilities”. Creation of floating provisions
are considered by the Corporation as approved by the Board of Directors. Floating provisions
are not reversed by credit to Profit & Loss Account and can be used only for contingencies
under extra ordinary circumstances for making specific provisions in impaired accounts after
obtaining Board approval.
Prior Period Adjustments
Prior period items have been accounted for separately as per accounting norms.

Investments
Investments are valued at lower of the cost or quoted / fair value on an individual investment
basis. Provision for permanent diminution in the value of investments is accounted in the year of
such diminution. Fair Value is computed in accordance with AS 13 issued by the ICAI. Cost includes
brokerage, fees and duties, if paid, on acquisition of such investments.
Fixed Assets and Depreciation
Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost
comprises the purchase price and any attributable cost of bringing the assets to its working
condition for its intended use.
Depreciation on Fixed Assets is provided on Written Down Value Method at the rates and in the
manner specified in Schedule XIV to the Companies Act, 1956. Depreciation on the fixed assets
added / disposed off during the year is provided on pro rata basis with reference to the date of
addition / disposal.
Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An
impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified
as impaired. The impairment loss recognized in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount.
Retirement Benefits
Retirement benefit in the form of Provident Fund is charged to the Profit and Loss Account on
accrual basis. Gratuity liability is covered by a scheme with Life Insurance Corporation of India.
The Corporation’s annual contribution under the said scheme is based on LIC’s actuarial valuation.
Leave Encashment is provided on the basis of actuarial valuation at the year-end.
Segment Reporting
The Corporation operates in two segments of business:”Lending and Financing Activities” and
“Management of Surplus Funds”.
The segments have been identified and reported taking into account the nature, returns and risks
involved. The organization structure and internal reporting structure are taken into account for
the purpose of determining segment results.
The revenues reported under “Lending and Financing Activities” segment include interest income
and other charges on lending. The said segment being the major segment of business of the
Corporation, all expenses of the Corporation are classified as expenses against the aforesaid
segment.
The revenues reported under “Management of Surplus Funds” segment consist of interest income
and profit / (Loss) on sale of investments of surplus funds.
Government Grants
Government grants are recognized as and when it is actually received. Revenue grants are
recognized in the Profit and Loss Account. Other grants are credited to the fund accounts to
which it pertains against which expenses and provisions & losses for diminution in value of assets
representing the fund is charged.

Taxation
Provision for current tax is made after taking into consideration benefits admissible under the
provisions of the Income Tax Act, 1961.
Deferred tax resulting from “timing differences” between taxable and accounting income is
accounted for using the tax rates and laws that are enacted or substantively enacted as on the
balance sheet date. The deferred tax assets is recognized and carried forward to the extent that
there is a virtual certainty that the assets will be realized in future.
Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there
is a present obligation as a result of past events and it is probable that there will be an outflow
of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent
Assets are neither recognized nor disclosed in the financial statements.
B. Notes on Accounts forming part of the accounts for the year ended 31st March 2010
1. 1. In compliance with the Accounting Standard relating to ‘Accounting for Taxes on Income’ (AS-
22) issued by the ICAI, the major components of Deferred Tax Liability are:
Particulars 31.03.2010 31.03.2009
Depreciation 70,911 171,394
Special Reserve u/s 36(1)(viii) of the I.T. Act, 1961 39,590,151 14,913,470
Total 39,661,062 15,084,864
2. Total amount of Directors' remuneration charged in the accounts is set out below:
31.03.2010 31.03.2009
Whole time Director:
Salary 3,089,053 1,298,329
Contribution to PF & other perquisites 306,060 195,791
Other Retirement benefits 190,487 79,463
Total 3,585,600 1,573,583
There was a revision in salary during the year to Whole time Director w.e.f. 01/01/2007. The
above salary includes a sum of Rs.1,063,131/- in respect thereof.
3. Payment to Auditors
31.03.2010 31.03.2009
Statutory Audit fees 66,180 66,180
Tax Audit fees 11,030 11,030
Total 77,210 77,210
4. Loan due from Directors Rs. NIL and the maximum outstanding thereof at any time during the
year was Rs.Nil (Previous Year: Rs.2.00 Lacs). The maximum amount outstanding at any time
during the year for loans to staff was Rs.257.02 Lacs (Previous Year: Rs. 173.70 Lacs).
5. The estimated amount of contracts remaining to be executed on capital account and not
provided for is Rs .761 Lacs during the year (Previous Year Rs.891 Lacs).
6. The breakup of Capital Work in progress is as under:
Particulars 31.03.2010 31.03.2009
Construction of Office Building & Civil Works at
212,284,599 123,863,384
Guwahati
Industrial Park at Guwahati 116,636 116,636
Stalls at India Exposition Mart, Noida 20,560,380 -
Total 232,961,615 123,980,020

7. In respect of shares / scrips / bonds quoted in recognized stock exchange, latest quotation nearest
to the balance sheet date is taken to ascertain the market value. Where the scrip is not trade
during the year or no quotation is available, fair value is ascertained in respect of shares and cost is
taken for debt instruments as fair value. In respect of unquoted shares / scrips / bonds, fair value
is ascertained by dividing the net worth with the number of shares. In case of investment in mutual
funds, fair value is taken as the declared NAV of the said scheme / fund, nearest to the balance
sheet date.
8. The Corporation is a nodal disbursing agency for Growth Centre funds and Central Subsidies, and
the fund received from Govt. of India is shown in the Current Liabilities to the extent of undisbursed
amount.
9. The Corporation does not have any related parties, save and except Sri Kashinath Hazarika, Chairman
and Managing Director, as key managerial personnel to whom a total sum of Rs.3,585,600/- was paid
as remuneration.
10. The Corporation reports basic earnings per equity shares, which is computed by dividing net income
by the weighted average number of equity shares outstanding for the period, in accordance with
AS 20 issued by the ICAI.
11. Special Reserve has been created and maintained in terms of section 36 (1) (viii) of the Income Tax
Act, 1961.
12. Summary of the investment of the Corporation:
(Rs. in Crores)
31.03.2010 31.03.2009
Gross value of Investment 42.26 48.66
Less: Provision for diminution in value 0.76 0.76
Net book value 41.50 47.90
13. The Income Tax assessments of the Corporation have been completed up to Assessment Year 2008 –
09. The disputed demand outstanding up to the said Assessment Year is Rs.10,503,099/-. Based on
the decisions of the Appellate authorities and the interpretations of other relevant provisions, the
Corporation has been legally advised that the demand is likely to be either deleted or substantially
reduced and accordingly no provision has been made.
14. Previous year figures have been regrouped / rearranged / reclassified, wherever necessary.
15. As required under AS 17, the segment reporting is as under:
(Rs. in Crores)
1. Segment Revenue 2009 – 10 2008 – 09

Lending and Financing Activities 45.46 30.98
Management of Surplus Funds 15.05 21.38
Total 60.51 52.36
2. Segments Results
Total 50.06 41.45
Unallocated Income 1.25 0.47
Unallocated Expenses 0.11 0.07
3. Operating Profit 51.20 41.85
Income Tax 17.95 12.17

4. Net Profit 33.25 29.68
5. Other Information
Segment Assets
Total 661.82 560.39
Unallocated Assets 69.27 47.73
Total 731.09 608.12
Segment Liabilities
Management of Surplus Funds 0 0
Unallocated Liabilities 83.97 65.30
Total 405.23 303.06
Net Capital Employed 325.86 305.06
16. Additional information is disclosed in terms of RBI guidelines vide DBS. FID No.c-18/01.02.2000-01
issued on 23.03.2001.
Rs. In Crores
A. Capital
a) CRAR CORE CRAR & Supplementary CRAR 61.08%
b) The amount of subordinated debt raised and
outstanding as TIER -II capital Nil
c) Risk weighted assets -separately for on-and-off On the Balance Sheet: Rs. 526.11
balance sheet items. Off the Balance Sheet: Nil
d) The Shareholding pattern as on 31.03.2010 Equity shares:
No of Shares %
FI’s 55,000,004 55
Bank 15,000,001 15
Insurance Co. 20,000,001 20
Mutual Fund 10,000,001 10
Total 10,000,007 100
B. Asset quality and credit concentration
e) Percentage of net NPA’s to net loans & advances, 2.47%
(floating provisions of Rs.2 Crore has not been
netted from Gross NPA to arrive at net NPA)
f) Amount and percentage of net NPA’s to Category %
net advances under the prescribed asset Sub Standard Assets 6.63 1.46
classification categories Doubtful debts 4.85 1.07
Loss assets Nil
g) Amount of provisions made during the Standard Assets 0.75
year towards standard assets, NPA’s Loans & NPA Loans incl. 2.01
investments (other than those in the nature of Soft loan Assistance (-)0.25
an advance), in income tax Investments Nil
Income Tax 15.17

h) i) Movement in NPAs (Gross) of loans including Opening Balance 74.15
soft loans Deletions incl. upgradation 7.75
Additions during the year 7.36
Closing Balance 73.76
ii) Movement of Provisions for NPAs against loans Opening Balance 60.52
including soft loan assistance Less: write off/waiver/
Write back 5.10
iii) Movement of Provisions for Investments Opening Balance 0.76
i) Restructured Accounts
Total amount of standard assets which have been
subjected to restructuring / rescheduling 57.43
Total sub standard assets which have been
subjected to restructuring / rescheduling 0.71
Total 58.08
j) Credit exposure as percentage to capital funds
and as percentage to total assets, in respect of:
% to Capital Funds % to Total Assets
The largest single borrower 13.90 6.16
The largest borrower group 13.90 6.16
The 10 largest single borrowers
No.1 13.90 6.16
No.2 6.76 2.99
No.3 6.18 2.74
No.4 5.09 2.25
No.5 4.31 1.91
No.6 4.22 1.87
No.7 3.00 1.33
No.8 2.98 1.32
No.9 2.60 1.15
No.10 2.36 1.05
The 10 largest borrower groups
No.1 13.90 6.16
No.2 6.77 3.00
No.3 6.18 2.74
No.4 5.09 2.25
No.5 4.93 2.18
No.6 4.31 1.91
No.7 4.29 1.90
No.8 4.22 1.87
No.9 3.76 1.66
No.10 2.36 1.05

k) Credit exposure to the five largest industrial 1. Contract Finance 14.76
sectors (if applicable) as percentage to total 2. Cement 13.25
loan assets 3. Iron & steel 8.70
4. Power Generation 7.91
5. Micro Finance 6.65
C. Liquidity
l) Maturity pattern of Rupee assets & liabilities w.r.t. investments incl. Fixed Deposits (in Crores)
Items Less than or More than 1 More than 3 More than 5
equal to 1 year year up to 3 years years up to 5 years years up to 7 years
Rupees Asset 117.59 0.00 0.25 Nil
Total Assets 117.59 0.00 0.25 Nil
Total Liabilities Nil Nil Nil Nil
m) Maturity pattern of foreign currency assets & liabilities Nil
D Operating results
n) Interest income as percentage to average working funds 9.56%
o) Non-interest income as a percentage to average working funds 1.03%
p) Operating profit as a percentage to average working funds 8.79%
q) Return on average assets 5.44%
r) Net profit per employee (Rs. In Crores) 0.37
17. Additional information as required in terms of paragraph 13 of Non Banking Financial (Non Deposit
accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007
(Rs. in lakhs)
Particulars
Liabilities side:
1. Loans and advances availed by the non- banking financial
company inclusive of interest accrued thereon but not paid: Amount outstanding Amount overdue
(a) Debentures : Secured
: Unsecured
(other than falling within
the meaning of public deposit*) NIL NIL
(b) Deferred Credits
(c) Term Loans
(d) Inter-corporate loans and borrowing NIL NIL
(e) Commercial Paper
(f) Other Loans (specify nature) – GOI Loan 28911 NIL
* Please see Note 1 below

Assets side: Amount outstanding
2. Break-up to Loans and Advances including bills receivable
other than those included in (4) below] :
(a) Secured 46409
(b) Unsecured
3. Break up of Leased Assets and stock on hire and other assets
counting towards AFC activities NIL
(i) Lease assets incl. lease rentals under sundry debtors:
a) Financial lease
b) Operating lease
(ii) Stock on hire including hire charges under sundry debtors NIL
a) Assets on hire
b) Repossessed Assets
(iii) Other loans counting towards AFC activities
a) Loans where assets have been repossessed
b) Loans other than (a) above
4. Break-up of Investments:
1. Quoted:
(i) Shares : (a) Equity 20
(b) Preference
(ii) Debentures and Bonds 1000
(iii) Units of mutual funds 3100
(iv) Government Securities
(v) Others (please specify)
2. Unquoted:
(i) Shares : (a) Equity 30
(b) Preference
(ii) Debentures and Bonds
(iii) Units of mutual funds
(iv) Government Securities
(v) Others (please specify)
4150
5. Borrower group-wise classification of assets financed as in (2) and (3) above:

Please see Note 2 below
Category Amount net of provisions
Secured Unsecured Total
1. Related Parties **
(a) Subsidiaries
(b) Companies in the same group
(c) Other related parties
2. Other than related parties 46409 46409
Total 46409 46409

6. Investor group-wise classification of all investments in shares and securities (both quoted and
unquoted): Please see note 3 below
Category Market Value/ Break Book Value
up or fair value or NAV (Net of Provisions)
1. Related Parties** NIL NIL
(a) Subsidiaries NIL NIL
(b) Companies in the same group NIL NIL
(c) Other related parties NIL NIL
2. Other than related parties 111 50
` Total 111 50
**As per Accounting Standard of ICAI
7. Other information
Particulars Amount
(i) Gross Non-Performing Assets
(a) Related parties —
(b) Other than related parties 7376
(ii) Net Non-Performing Assets
(a) Related parties —
(b) Other than related parties 1148
(iii) Assets acquired in satisfaction of debt —
8. Exposure to Real Estate Sector (Rs. in Crores)
Items March 31, 2010 March 31, 2009
a) Direct Exposure
(i) Residential Mortgages 2.14 1.28
[all individual housing loans upto Rs.15 Lacs]
(ii) Commercial Real Estate 71.42 59.46
(iii) Investments in Mortgage Backed Securities (MBS)
and other securitized Exposures:
a) Residential NIL NIL
b) Commercial NIL NIL
b) Indirect Exposure
Fund based and non fund based exposures on NIL NIL
National Housing Bank (NHB) and Housing
Finance Companies (HFCs).
Total Real Estate Exposure 73.56 60.74

18. Information pursuant to Part IV of Schedule VI to the Companies Act. 1956:
a. Registration Details
Registration No. 4 5 2 9 Date of Registration 0 9 0 8 9 5
State Code 0 2 Balance Sheet Date 31st March, 2010
b. Capital Raised during the year
Public Issue N I L Right Issue N I L
Bond Issue N I L Private Placement N I L
c. Position of Mobilization and Deployment of Funds (Amount in thousands).

Total Liabilities Total Assets
7 3 1 0 9 3 1 7 3 1 0 9 3 1
Sources of funds: Application of funds:
Paid -Up capital Net Fixed Assets
1 0 0 0 0 0 0 0 2 6 5 7 4 1
Reserves and surplus, others Loans & Investments
2 6 7 1 4 7 9 5 0 5 5 8 6 8
Secured Loans Net Current Assets & Advances
N I L 1 2 8 0 6 3 1
Unsecured Loans Misc Expenditure
2 9 3 0 7 6 1 N I L
d. Performance of Company (Amount in Rs. thousand)
Turnover Total Expenditure Profit Before Tax Profit After Tax
6 1 7 6 0 0 1 0 5 6 0 1 5 1 1 9 9 9 3 3 2 4 9 4
Earnings per share (Rs) Dividend Rate [%]
3 . 3 2 3 . 0 0
e. Generic Names of three Principal Products/Services of the Company
Item Code (ITC Code) Not Applicable
Product Description Project Financing
Product Description Financial Advisory and Consultancy Services.
Schedules annexed hereto form part of the Accounts


Guwahati M. No. 51532

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Agartala-799001, Tripura, Telefax : 0381 2216848
Dharmanagar
Aizawl M. B. Unit Complex, Rajbari, Dharmanagar,
1st Floor, A-59, Zarkawt, Aizawl-796001, Mizoram North Tripura-799250, Mobile: 096121 55421
Ph : 0389 2347782, Fax : 91-389 2347783
Udaipur
Dimpaur Dhajanagar Industrial Estate, Udaipur,
2nd Floor, "Kuknalim", Circular Road South Tripura-799 114
Dimapur-797112, Nagaland, Telefax : 03862 235030 Mobile : 98560 34157
Imphal Kohima
Babupara, Opp. Telephone Bhawan, Imphal-795001, Manipur Nagaland Voluntary Health Associaon, 2nd Floor, NST Building,
Ph : 0385 2443385, Telefax : 0385 2445927 Midland, Kohima, Nagaland - 797 001
Ph : 0370 229 1378, Mobile: 094360 05654
Itanagar
NH-52A, Main Road, E-Sector Sivasagar
Itanagar-791 111, Arunachal Pradesh, Telefax : 0360 2217694 MMS Consultancy Associaon Pvt. Ltd., Near K. P. M. Hall,
A. T. Road, Sivasagar, Assam-785640
Shillong
Ph: 03772 224688, 222 451, Mobile: 94350 57549
Cresens Buildings, 1st Floor, Opp. Main Secretariat,
M. G. Road Shillong-793001, Meghalaya Dergaon
Ph : 0364 2504815/2504814 (Telefax) North East Centre for Rural Livelihood Research (NECR),
Ward No. 10 (In front of Dergaon Municipal Board), Dergaon,
Gangtok
Dist. Golaghat, Assam-785614
Near Super Market Complex, Development Area
Ph.: 0376 2380824, Mobile: 94357 38533
Gangtok-737101, Sikkim Telefax : 03592 208269
Tura
Tinsukia
Achik Evangelical Associaon, Ringrey,
Makum Road, Udyog Nagar, Tinsukia - 786 125, Assam,
Tura, West Garo Hills District, Meghalaya - 794001
Ph : 0374 235 2115, Mobile: 9854057430
Ph: 03651 224031 (O), Mobile: 094363 06138
Silchar
Agia
Silchar Cachar Market, 3rd floor, Netaji Subhas Avenue,
Agia Social Circle, Vill-P.O. - Agia, Dist.-Goalpara, Assam-783120
P. S. Rangirkhari, Silchar-788005, Telefax : 03842-226707
Ph. : 03663 285078, 084 (Fax), Mobile : 94357 25238

ISO 9001:2008 Company
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North Eastern Development Finance Corporation Limited
Registered Office
NEDFi HOUSE
G. S. Road, Dispur, Guwahati-781 006, Assam
Ph : 91-361 6115555 (30 channels),
Fax : 91-361 6115556, 6115566, 2229933
Email : mail@nedfi.com
www.nedfi.com

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What are NEDFi's mission and vision statements?

What are NEDFi's mission and vision statements?

What are some of NEDFi's achievements over the past 15 years?

What are some of NEDFi's achievements over the past 15 years?

1 | Annual Report 2009-10

Since its incepon in August 1995, North East

Annual Report 2009-10 | 2

3 | Annual Report 2009-10

Annual Report 2009-10 | 4

During the year 2009-10, our sancons registered an increase of

5 | Annual Report 2009-10

Annual Report 2009-10 | 6

The present economic and industrial climate is B Paul Muktieh

7 | Annual Report 2009-10

Operating Result 2008-09 2009-10

Annual Report 2009-10 | 8

9 | Annual Report 2009-10

Annual Report 2009-10 | 10

11 | Annual Report 2009-10

Hotel Rendezvous, Gangtok, Sikkim

Annual Report 2009-10 | 12

Regional Instute Of Science & Technology

13 | Annual Report 2009-10

Nam Nang Commercial Complex, Gangtok

Assam Air Products Pvt. Ltd., Bongaigaon, Assam

Annual Report 2009-10 | 14

Residency Tourist Resort, Guwaha, Assam

15 | Annual Report 2009-10

Sarda Plywood Industries Ltd., Tinsukia, Assam

Annual Report 2009-10 | 16

Hotel Cimorb, Kohima, Nagaland

Winmark Diagnosc Services, Agartala, Tripura

17 | Annual Report 2009-10

Protech View, Guwaha, Assam

Annual Report 2009-10 | 18

T.B. Citronella Oil Industry, Assam

Highly experienced in this ﬁeld, the ﬁrm was assisted

19 | Annual Report 2009-10

Annual Report 2009-10 | 20

Home Grown, Meghalaya

21 | Annual Report 2009-10

Akshay Urja Shop, Mizoram

Annual Report 2009-10 | 22

The Women’s Voluntary Organisaon

23 | Annual Report 2009-10

Annual Report 2009-10 | 24

25 | Annual Report 2009-10

From social frustraon to producvity

Annual Report 2009-10 | 26

One Village One Product – Lemon

27 | Annual Report 2009-10

Creang linkages overseas

The co-operaon built-up between BCCI

Annual Report 2009-10 | 28

29 | Annual Report 2009-10

Annual Report 2009-10 | 30

D has held, with distinction, a variety of

o Sri R. R. Dash Dr. D. N. Borthakur

f Corporation of India, Kolkata. Prior to