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HDFC Ltd
Background
HDFC Ltd is one of the leading and oldest company in the housing financing business operating in India., which has got a PAN India presence apart from soe of the overseas branches, where it offers similar products. Amongst the overseas branches, the company has established its presence in some of the middle-east countries, US and Canada, and some of the neighbouring Asian pacific countries for its NRI clients seeking housing options in India.

Highlights
Sales Turnover: Rs 21147 crore
PAT: Rs 4834 crore
Net worth: 25000 crore
Business Lines: Housing Finance & Allied Activities
Website: http://www.hdfc.com/

Striking features of the report
HDFC Ltd has an impressive theme, pointing towards the company’s ultimate objective to allow India population to have their own. This is well represented through flying birds, and the punch line of “Onward, Upward and Homeward Bound”. This is striking, considering the growing urban habitation of population of country. The company has given due importance in its theme pages by the four paged amplification with different kind of birds and narratives, to highlight the eagle eye it keeps on the changing requirements of customers, and the company’s moves to allow easier housing financing facilities for its customers. The company’s Annual Report carries simplified index followed by useful corporate information. The Financial highlights of the company are well showcased in an effective manner. Apart from same, it has given a 10 years report card of financial performance and ratios in tabular form, though not in a vertical format.
The company’s chairman message tries to highlight how the housing finance in the country has grown and evolved in the country since the birth of HDFC 36 years back, when no regulations or credit rating system was in place, and buying own homes was a distinct reality, in absence of access to housing financing facilities from banks and NBFCs.
However, at the same time, the chairman’s message also reminds the stakeholders on the dark side of increasing upcoming housing units coming up across the urban areas, and proposed land acquisition act, which may make land acquisition difficult and expensive for builders.
It also gives a last paragraph dedicated to representing the reasons why it has chosen the theme “Onward, Upward and Homeward Bound” justifying the company’s journey since incorporation, and how quickly it has evolved according to the changing environment to cater to housing finance, to sustain the growth.
The MDA of company discusses at length the macro-economic environment of the country and the issues it faced in the past financial year, apart from monetary changes brought in pace by RBI to balance the inflation and put the country back on growth track. The fiscal environment has also been discussed, the initiatives already taken to bring down the fiscal deficit have also been discussed.
The company’s MDA gives an analysis of all SBU’s, giving a clear idea of all the products falling under the each of the SBU and the revenues derived from same, apart from key geographies. The MDA also gives financial performance and key highlights of the required ratios. The company also makes a reference to some of the risks it may be exposed to, like its peers in the FMCG sector. It has also taken the initiative to publish its “Business Responsibility Statement” within the annual report.
The MDA also discusses the loan portfolio of the company and approvals it has made in FY 13. It subsequently talks about the initiatives like dual interest rate home loans which it introduced, in line with those offered by some of the peers in housing finance, to sustain its leadership in the housing finance segment. It also highlights the sources of borrowings/ funds from various sources, and risks it faces in the sector and the mitigations in place. Detailed financial highlights have also been discussed in the MDA. In view of the number of subsidiaries which the company has, its detailed annual report spreads over 752 pages and is cumbersome to read. It also includes the Business Responsibility Report.
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