23rd AnnuAl RepoRt 2016 - 2017164.100.158.138/WriteReadData/LINKS/AR-2016-17-NMDFC Englishe… · 23rd AnnuAl RepoRt 2016 - 2017 national Minorities Development & Finance Corporation

N M D F C

NATIONAL MINORITIES DEVELOPMENT & FINANCE CORPORATION1

23rd AnnuAl RepoRt

2016 - 2017

national Minorities Development & Finance Corporation(A Govt. of India Undertaking, Ministry of Minority Affairs)

Core-1, 1st Floor, Scope Minar, Laxmi Nagar, Delhi - 110092

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InDeX

SI. particulars page no. no.

1. CHAIRMAN’S SPEECH 3

2. BOARD OF DIRECTORS 6

3. STATUTORY NOTICE 8

4. DIRECTORS’ REPORT 16

5. COMMENTS OF COMPTROLLER AND 58 AUDITOR GENERAL OF INDIA

6. FINANCIAL STATEMENTS AND REPORTS

A. STANDALONE

(i) AUDITOR’S REPORT 60

(ii) BALANCE SHEET 70

(iii) INCOME AND EXPENDITURE ACCOUNT 71

(iv) CASH FLOW STATEMENT 72

(v) NOTES FORMING PART OF FINANCIAL STATEMENTS 74

B. CONSOLIDATED

(i) AUDITOR’S REPORT 128

(ii) BALANCE SHEET 132

(iii) INCOME AND EXPENDITURE ACCOUNT 133

(iv) CASH FLOW STATEMENT 134

(v) NOTES FORMING PART OF FINANCIAL STATEMENTS 136

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ChAIRMAn’S SpeeCh

Respected Share holders and Colleagues,

“Good Afternoon”

I extend a warm welcome from core of my heart to each one of you to 23rd Annual General Meeting of your Corporation. Your presence is indeed, a reflection of your keen involvement in your Company’s progress. On behalf of Board of Directors and on my personal behalf, I thank you for joining us today.

The Annual Report covered through Director’s Report and Audited Annual Accounts for the Financial Year ending 31.3.2017 has already been circulated in advance and with your permission I take them as read.

As you would have assessed from Annual Report Card, your Corporation has been continuing on path of enforcing financial discipline and fiscal consolidation. Obtaining ‘Nil’ comments from C&AG definitely corroborate this aspect.

I feel happy and privileged to share with you that your Corporation has been graded “Excellent” by Govt. of India based on achieving targets fixed for F.Y. 2015-16. The evaluation for F.Y. 2016-17 is under process.

I shared with you during 22nd AGM that your Corporation has been making untiring efforts to recover long overdues from dormant/non-functional SCAs and bring them back on the path of revival. It is very enravishing to inform you that the SCA in the State of UP has paid back the overdues amounting to Rs.64.22 crores. Endeavors are being made to put such SCAs on functional tracks.

Financial performance highlights

Few significant highlights of your Company for F.Y. 2016-17 are delineated below:-

Share Capital : It increased from Rs.1367.20 crores to Rs.1587.96 crores thereby registering an increase of Rs.220.76 crores.

Surplus : It increased from Rs.22.60 crores to Rs.48.38 crores.

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Despite highest ever disbursement, interest on surplus funds increased to Rs.13.16 crores from previous year’s figure of Rs.8.41 crores.

You would feel glad to know that the Corporation has received highest ever equity contribution from State Govts./UT administration to the tune of Rs.80.76 crs. It is a matter to applaud that States like Kerala, Jammu & Kashmir, Tripura, Delhi, Rajasthan and Karnataka have made 100% contributions of their share of equity contribution in your Company.

The cumulative repayments from SCAs of your Corporation under Term Loan has improved to 94.75% as compared to 89.32% during F.Y. 2015-16. Whereas in respect of micro financing, it is marginally less i.e. 98.89% than 99.26% (2015-16). Moreover, recoveries made from the beneficiaries by six SCAs are more than 90% whereas 10 SCAs have been making recoveries in the range of 70% to 90%. There is improvement in these figures in comparison to last financial year.

new Initiatives

Your Corporation, in order to increase accessibility and visibility as well as to enhance outreach, has launched Toll Free IVRS & Mobile App about NMDFC schemes. Further to meet up the capital requirements of artisans and crafts persons new scheme with title VIRASAT has been launched. A compilation of success stories of beneficiaries namely “Kaamyabiyan” has been released.

tasks assigned by the Ministry

Apart from other works given by the Ministry, the task of organizing important mega events with the title of Hunar Haat were assigned. Your Corporation organized two such events – (i) from 14th to 27th November, 2016 at prestigious globally acclaimed India International Trade Fair at Pragati Maidan. Over 170 artisans from 24 States/UTs were provided opportunity to showcase and sell their exquisite handloom and handicraft products. (ii) The second such event was organized from 11th to 26th February, 2017 at Baba Kharak Singh Marg, New Delhi. A unique inclusion in the second Hunar Haat was of traditional foods which the persons from minority communities prepare and the event was aptly christened “Crafts aur Cuisines Ka Sangam”. During this exhibition 100 artisans from 22 States/UTs and 30 culinary experts from 14 States participated. These Hunar Haats were highly successful as acclaimed by visitors, exhibitors while electronic and print media had reported it as grand success. In fact Hunar Haat

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became iconic brand in the market. The participants achieved sales to the tune of Rs.2.17 crores during IITF-2016 and Rs.1.81 crores in the second Hunar Haat. Not only that many of them got handsome booking orders.

Governance bedrock & CSRYour Company has been upholding highest standards of transparent and ethical governance practices while creating value to the Stakeholders. The Corporation further has been complying with stipulated requirements of Corporate Governance. Board level CSR Committee has been constituted and areas as well as activities have been identified. Shortly your Corporation would plunge into CSR arena and discharge its Corporate Sector Responsibilities.

together We grow……Efforts are being made to look after the backbone of the Corporation – its employees. The proposal to create Pension Trust as per instructions of Government has been duly resolved by the Board and submitted to Administrative Ministry for the nod. Likewise, the Corporation would also be implementing ‘PRP’as envisaged and instructed by Government.

Acknowledgements

I have the privilege to thank all of you and esteemed Shareholders for your conviction, trust and continued patronage to NMDFC. I take this opportunity to convey my deepest gratitude to our Hon’ble Minister for constant support and encouragement. My heartfelt thanks and I express gratefulness for unflinching support, guidance and help extended by Secretary, Ministry of Minority Affairs. I am indebted to colleagues on the Board for their spirited support and invaluable contributions. I place on record my sincere gratitude for continued cooperation and support extended by Central Govt., State Govts/UT Administrations, SCAs, C&AG, DPE, Statutory & Internal Auditors of NMDFC and Bankers of Corporation.

Finally on behalf of Board and on my personal behalf I express my sincere appreciation for the valuable services of the employees of your Company in shaping NMDFC’S achievements.

Sd/-(Mohd.Shahbaz Ali)

Chairman-cum-Managing Director

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*As on the date of Annual General Meeting

nAMe oF the DIReCtoRS*

1 Md. Shahbaz Ali Chairman-cum-Managing Director National Minorities Development & Finance Corporation

2 Shri. Siddharth Kishore Devverman Director Addl. Secretary Ministry of Minority Affairs

3 Shri Lalit Kishore Meena Director Executive Director RashtriyaMahilaKosh

4 Shri Javed Ahmad Siddiqui Director Deputy General Manager Small Industries Development Bank of India 5 Dr. Naheed Soz Director Managing Director, J&K State Women Development Corporation 6 Shri Kanakkil Thotton Balabhaskaran Director Managing Director Kerala State Backward Classes Development Corporation 7 Shri Sunil Namdeo Rankhambe Director Managing Director Maulana Azad Alpsankhyak Aarthik Vikas Nigam

8 Ms. Pekruzeu Daisy Mezhur Director Secretary Nagaland State Social Welfare Board

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Shri Anantha Venkata Krishnan Company Secretary M/s. Vijay Sehgal & Co. Statutory Auditors Chartered Accountants

M/s. K.K. Chanani & Associates Internal Auditors Chartered Accountants Punjab National Bank Bankers

Core-1, 1st Floor, Scope Minar, Laxmi Nagar, Registered Office Delhi-110092

Telephones : 22441436 Fax : 22441441 Toll Free No. : 14402

Website: www.nmdfc.org Email:[email protected]

CIN-U74899DL1994NPL061852

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notICe

NOTICE is hereby given that the Twenty Third Annual General Meeting of the Members of National Minorities Development & Finance Corporation will be held on Monday, the Eighteenth day of September, 2017 at 4.00 P.M. in Board Room, National Minorities Development and Finance Corporation (NMDFC), First Floor, Core-1, Scope Minar, Laxmi Nagar, Delhi-110092 to transact the following business:

AS oRDInARY BuSIneSS:

1. ToReceive,ConsiderandAdoptfinancialStatements To Receive, Consider and Adopt the Audited Balance Sheet and the Audited

Income and Expenditure Account for the period ended 31st March, 2017 together with Reports of the Directors, Auditors and Comments of Comptroller & Auditor General of India thereon.

2. to Fix Remuneration of Auditors for the Financial Year 2017-18

To fix the Remuneration of auditors and for that purpose to pass with or without modification, the following Resolution as an Ordinary Resolution:-

“ReSolVeD thAt the Board of Directors/Committee of Board, be and are hereby authorized to fix the remuneration, out of pocket expenses and other ancillary expenses of auditors to be appointed by the Comptroller and Auditor General of India for the Financial Year 2017-18.”

AS SpeCIAl BuSIneSS:

3. To consider and, if thought fit to pass, with or without modification(s), the following resolution as a Special Resolution:-

“ReSolVeD thAt pursuant to the provisions of section 14 and other applicable provisions, if any, of the Companies Act, 2013 (including any statutory modification(s) or re-enactment thereof for the time being in force), read with Memorandum and Articles of Association of the Company and rules, Regulations, Circular, Notifications, etc. issued thereunder, the consent of the members of the Company be and is hereby accorded to amend the Articles

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of Association of the Company, if and to the extent necessary, meaning of Channelizing Agency under Article No.1 of the Articles of Association, of the Company be substituted by the following meaning:-

“Channelizing Agency means the State level Minorities Finance and Development Corporations or any other State Corporation nominated by the respective State Governments/ Union Territory Administrations or Bank/RRBs/IppBs for routing the funds/benefits/assistance of the Company to one or more Members of Minorities’.”

“ReSolVeD FuRtheR thAt CMD or /and CS, be and are hereby authorised to obtain all such approvals as are considered necessary, sign, file the requisite documents and to do all such acts, deeds and things as may be required or considered necessary or incidental thereto.”

(By order of the Board of Directors)

Sd/-place: new Delhi (A.V Krishnan)Date: 09/09/2017 Company Secretary

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note

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND THE MEETING AND VOTE INSTEAD OF HIMSELF/HERSELF. THE PROXY NEED TO BE A MEMBER OF THE COMPANY.

2. An Explanatory Statement pursuant to section 102 of Companies Act, 2013 is annexed hereto and forms part of this notice.

3. Members who have not registered their e-mail address so far are requested to register their e-mail address for receiving all communication including Annual Report, Notices, Circulars etc. from the Company electronically.

4. Members / proxies should being their Attendance slip duly filled in for attending the meeting.

5. All documents referred to in the accompanying notice are available for inspection at the Registered Office of the Company on all working days during business hours upto the date of the Annual General Meeting.

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eXplAnAtoRY StAteMent

Item no.2

Pursuant to section 142 of the Companies Act, 2013 the remuneration to Auditors shall be fixed at the Annual General Meeting (AGM) or in such manner as the Company in General Meeting may determine.

The Members may authorize the Board of Directors/Committee of Board to fix the Remuneration of Auditors for the year 2017-18. Hence, this resolution for the consideration of the Annual General Meeting (AGM).

None of the Directors is concerned or interested in the resolution.

Item no.3

Over a period of time, it is observed that State Channelizing Agencies (SCAs) in the states of Assam, Bihar, Andhra Pradesh, Telangana, Uttar Pradesh, Madhya Pradesh, Orissa, etc. has been engaging the attention of NMDFC due to being non-functional. Presently, there are about 10 SCAs which are non-functional apart from 8 SCAs which are yet to become operational. In the absence of operational/functional SCAs the lending programmes of NMDFC in these states have been stalled or not taken off. The associated result of this is that the prospective beneficiaries of the minority communities are deprived of from the financial assistance of Central Govt. schemes.

Hence, sincere efforts were made to explore the possibility of available alternatives to start programme of Corporation in the above mentioned states. Corporation has found two options namely Regional Rural Banks and India Post Payments Banks for using their network. They could be made as channelizing Agency of NMDFC. Corporation shall enter into requisite MoU with the Regional Rural Banks and India Post Payments Banks.

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existing Article proposed Article

“Channelizing Agency means the State level Minorities Finance and Development Corporations or any other State Corporations nominated by the respective State Governments/ Union Territory Administrations for routing the funds/benefits/assistance of the Company to one or more Members of Minorities.”

“Channelizing Agency means the State level Minorities Finance and Development Corporations or any other State Corporation nominated by the respective State Governments/ Union Territory Administrations or Bank/RRBs/IppBs for routing the funds/benefits/assistance of the Company to one or more Members of Minorities.”

None of the Directors is concerned or interested in the resolution.

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Form no. MGt-11proxy form

[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014]

Name of the company nAtIonAl MInoRItIeS DeVelopMent & FInAnCe CoRpoRAtIon

Registered Office SCOPE MINAR, CORE-1, Ist FLOOR, LAXMI NAGAR, NEW DELHI-110092

Name of the Member(s) Registered Office E-mail IdFolio No /Client IDDP ID

I/We, being the member(s) of ____________shares of the NATIONAL MINORITIES DEVELOPMENT & FINANCE CORPORATION, hereby appoint

Name :

Address:

E-mail Id:

Signature , or failing him

Name :

Address:

E-mail Id:


Name :

Address:

E-mail Id:


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as my/ our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Twenty third Annual General Meeting of the company, to be held on the Monday, the Eighteenth day of September, 2017 at 4.00 p.m. in Board Room, National Minorities Development and Finance Corporation (NMDFC), First Floor, Core-1, Scope Minar, Laxmi Nagar, Delhi-110092 and at any adjournment thereof in respect of such resolutions as are indicated below: I wish my above Proxy to vote in the manner as indicated in the box below:

Resolution number

Resolution For Against

ordinary Resolution :1. To Receive, Consider, and Adopt Financial

Statements 2. To fix remuneration of Auditors for Financial

Year 2017-18Special Resolution:3. To Consider & Approve Amendment in Articles

of Association

Signed this _____day of _____2017

Signature of Shareholder………………

Signature of Proxy Holder(s)……………..

notes:1. This form of proxy in order to be effective should be duly completed and

deposited at the Registered Office of the company, not less than 48 hours before the commencement of the Meeting.

2. A Proxy need to be a member of the Company.3. This is only optional. Please put a ‘X’ in the appropriate column against the

resolution indicated in the Box. If you leave the ‘For or against’ column blank against the resolution your proxy will be entitled to vote in the manner as he/she thinks appropriate.

4. Appointing a proxy does not prevent a member from attending the meeting in person if he so wishes.

5. Please complete all details including details of member(s) in above box before submission.

Affix Revenue Stamps

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AttenDAnCe SlIp

NATIONAL MINORITIES DEVELOPMENT & FINANCE CORPORATIONCIN: U74899DL1994NPL061852

Registered Office: SCOPE Minar, Core-1, 1st Floor, Laxmi Nagar, Delhi 110092E-mail: [email protected], Website: www.nmdfc.org

PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL.

Joint shareholders may obtain additional attendance slip at the venue.

Name of shareholder/proxy :

Address of the registered Shareholder :

Client Id / Regd. Folio :

Email Id. :

No. of Share(s) held :

I/We hereby record my/our presence at the 23rd Annual General Meeting of the Company, to be held on Monday, the Eighteenth day of September, 2017 at 4.00 P.M. in Board Room, National Minorities Development and Finance Corporation (NMDFC), First Floor, Core-1, Scope Minar, Laxmi Nagar, Delhi-110092

Signature of the shareholders / proxy ……………………..(To be signed at the Time of handing the slip)

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DIReCtoRS’ RepoRt

Dear Shareholders,

Your Directors are pleased to present the 23rd Annual Report and audited accounts of your Corporation for the year ended 31st March, 2017.

1. FInAnCIAl ReSultSDuring the year 2016-17, your Corporation has earned revenue from operations of Rs.4832.81 lakhs as against Rs.4742.58 lakhs in the previous year. The excess of Income over Expenditure for the period is Rs.4838.09 lakhs. The summarised statement of Excess of Income over Expenditure is given below:

(Rs. in lakhs)

particulars 2016-17 2015-16Revenue from operations 4832.81 4742.58Other Income 1361.11 841.48total Income 6193.92 5584.06Employees benefit expenses 492.30 476.94Depreciation 43.29 60.96Other Expenses 819.31 823.95Allowance for doubtful loan and interest - 2125.41CSR Expenses - -total expenses 1354.90 3487.26Excess of Income over Expenditure before Exceptional Items and Tax

4839.02 2096.80

Exceptional Items - 157.34Tax expenses - -excess of Income over expenditure for the period from continuing operations

4839.02 2254.14

other Comprehensive Income - Items that will not be reclassified to Income & Expenditure Statement

(0.93) 5.90

excess of Income over expenditure and other Comprehensive Income for the period

4838.09 2260.04

Earnings Per Equity Share BasicDiluted

32.9031.95

16.9016.77

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2. the StAte oF CoMpAnY AFFAIRS As you are aware, the targeted National Minority Communities of the Corporation are Muslims, Sikhs, Christians, Buddhists, Parsis & Jains. Recently, economic eligibility criteria of the targeted communities is on the verge of change under Credit Line-1 from the existing income limit of Rs.81,000/- per annum - to Rs.98,000/- per annum in respect of rural areas and from Rs.1,03,000/- per annum to Rs.1,20,000/- per annum in respect of urban areas, since poverty line income limit has accordingly been changed by Planning Commission. The matter for revision of income eligibility criteria is under consideration of the Administrative Ministry.

Your Corporation is a National level Apex financing body and has two channels to reach the ultimate beneficiaries; (i) State Channelizing Agencies (SCAs) nominated by respective State/UT Governments; and (ii) network of SHGs and NGOs identified by SCAs for implementation of micro-credit Schemes.

At present your Corporation is operating / implementing its programs through 37 operational State Channelizing Agencies (SCAs) in 24 States & 3 UTs nominated by the respective State Governments/UT Administration. Further 15 States have setup exclusive Minority Development & Finance Corporations.

As on date, a total of 45 SCAs in 28 States and 7 UTs have been nominated by the respective State Governments/UTs. The Government of Telangana has so far not nominated any agency & the SCAs, nominated in the States / UTs, of Arunachal Pradesh, Meghalaya, Goa, Sikkim, A&N Islands, Daman & Diu, Lakshadweep, D&N Haveli are yet to become operational.

3. CApItAl InFuSIonThe decision of Govt. of India for doubling the Authorised Share Capital of Corporation from Rs.1500.00 crores to Rs.3000.00 crores in the year 2014-15 has resulted in uninterrupted flow of equity contribution from Central Govt. It has resulted in enhancing the outreach of schemes of your Corporation.

During the period under review, Ministry of Minority Affairs has released Rs.14000 lakhs as equity capital contribution in the Share capital of the Corporation. The States have released Rs.3436.67 lakhs as equity contribution to the Corporation. Share Certificates of Rs.17436.67 lakhs (17,43,667 equity shares) have been issued and Rs.4814.00 lakhs is lying as share application money pending allotment. The paid up share capital as on 31.03.2017 is Rs.153982.27 lakhs.

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While enhancing the equity of your Corporation, the Government of India directed for restructuring the Business Model of your Corporation. For this purpose, M/s Infrastructure Leasing & Financial Services (ILFS) Trust Company Ltd. has been identified as the Consulting Organisation. They have submitted their report on 31/05/2017.

4. tRAnSFeR to ReSeRVeDuring the period under review, a sum of Rs.4838.09 lakhs, being 100% of excess of income over expenditure has been transferred to General Reserve of the Corporation.

5. MAnAGeMent oF SuRpluS FunDS / tReASuRY & InVeStMent opeRAtIonSYour Corporation invested its surplus funds (i.e., the funds which are not immediately required for carrying-out the disbursements to the SCAs for the purpose of implementing its Schemes & Programs) as short term deposits with Banks, as per the guidelines issued by the Department of Public Enterprises. During the year, your Corporation could generate an income of Rs. 1,312.07 lakhs out of surplus funds prudently invested by it.

6. CoRpoRAte SoCIAl ReSponSIBIlItY (CSR)For the year 2016-17, your Corporation earmarked an amount of Rs.2.04 crores (2% of average of Excess of Income over Expenditure of previous 3 years). Further, the Corporation as being a Section 8 Company under Companies Act, 2013, sought clarification from DPE about applicability of CSR on Section 8 Company. The DPE has since clarified in Feb. 2016 that the CSR is applicable on Your Corporation. Your Corporation could not spend the amount earmarked for CSR due to question of applicability of CSR provisions on it, which has since been clarified by DPE, as mentioned above. However, once the clarification was received, the Corporate Social Responsibility (CSR) Committee was formulated and it has recommended the CSR Policy to the Board, indicating the activities which can be undertaken by the Corporation. The CSR Policy has since been approved by the Board. The CSR Policy may be accessed on the Corporation’s website at the link: http://www.nmdfc.org. The Corporation has identified the activity to be undertaken under CSR and its implementation at the field level is being finalised.

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7. InDIAn ACCountInG StAnDARDS (InD-AS) ADoptIonAs per Notification dated 16.02.2015 issued by the Ministry of Corporate Affairs, Companies have been directed to prepare their financial statements in accordance with Indian Accounting Standards (IND AS) for the accounting periods beginning on or after 1st April 2016. Based on the criteria of Net worth which is more than Rs.500 crores, your Corporation is required to comply with the IND AS for the period 2016-17. Hence, the financial statements for the period have been prepared in line with IND AS which are comparable with the International Reporting Format.

8. opeRAtIonAl hIGhlIGhtSa. Allocation: The Corporation had allocated financial assistance of Rs.725.60

crores during the year 2016-17 against the MoU target of Rs.650.00 crores. During the year, allocation was made to 27 states/UTs.

b. Disbursement: The Corporation disbursed an amount of Rs.503.32 crores during the year which is 5.97% higher than the previous year’s achievement of Rs.473.29 crores. The disbursement includes release of Rs.278.22 crores to 18,548 beneficiaries under Term Loan scheme and Rs.225.10 crores to 90,040 beneficiaries under Micro Credit Scheme. The total disbursement would economically benefit 1,08,588 Minority beneficiaries. The disbursement during the year is the highest since inception of your Corporation.

c. term loan: A loan amount of upto Rs.20.00 lacs under Credit Line-1 and upto Rs.30.00 lacs under Credit line -2 is extended at 6% p.a. & 8% p.a. respectively with a concession of 2% p.a. to women beneficiaries under Credit Line-2. Under this Scheme, your Corporation could allocate Rs.443.09 crores to 29,538 number of beneficiaries and could disburse an amount of Rs.278.22 crores for the upliftment of over 18,548 beneficiaries belonging to Minority communities in 13 States /UTs covering 19 SCAs.

d. educational loan Scheme: The objective is to facilitate job oriented education for the eligible persons. Under Credit Line-1, Loan of upto Rs.15.00 lakhs (Rs. 20.00 lakhs for courses abroad) is available at an interest rate of 3% p.a. for pursuing “technical & professional courses” of duration not exceeding 5 years. Higher Education Loan of upto Rs.20.00 lakhs (Rs.30.00 lakhs for courses abroad) is available under Credit Line-2, at an interest rate of 8% p.a. for Male beneficiaries & 5% p.a. for Female beneficiaries. Your Corporation could disburse Rs.19.23 crores to 974 number of students under the scheme.

Recently, the loan limit has been enhanced in respect of Credit Line-1 and brought at par with Credit Line-2 as follows:-

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“In respect of domestic courses, loan limit has been increased from Rs.15.00 lakhs to Rs.20.00 lakhs and in respect of foreign courses, the loan limit has been increased from Rs.20.00 lakhs to Rs.30.00 lakhs.”

e. Micro-Credit Scheme: Micro Credit is extended to the members of the Self Help Groups (SHGs), especially the women belonging to Minority communities scattered in remote villages and urban slums, who are not able to take advantage of the formal banking credit. The Scheme requires that the beneficiaries are organized into SHGs and get into the habit of thrift & credit, however small. Under the Scheme, a loan of upto Rs.1.00 lac / Rs.1.50 lac under credit Line-1 & 2 with an interest rate of 7% & 10% p.a. respectively is provided. Concession of 2% is extended to women beneficiaries under Credit Line-2.Under the scheme, an amount of Rs.225.10 crores was disbursed to 90,040 beneficiaries belonging to Minority communities in 6 States/UTs covering 7 SCAs.

f. Mahila Samridhi Yojana (MSY): This is a unique scheme wherein Micro-credit is provided with training to the women members in the trades such as tailoring, cutting and embroidery, etc. Training is given to a group of around 20 women for a maximum of 6 months in any craft activity. Training expenses of upto Rs. 1,500 p.m. / trainee is given as grant for trainees formed into SHGs and each member can avail micro-credit upto Rs.1.00 lakh with an interest of 7% p.a. after the training. Stipend per trainee of Rs. 1,000 p.m. is also provided. This is an exclusive scheme meant for economic empowerment of women belonging to Minority communities. Under this scheme, Rs.7.50 lakhs were disbursed to assist 50 women beneficiaries in J&K.

g. promotional Schemes

i) Vocational training Scheme: The aim is to impart skill training leading to self/wage employment of the trainees from the target group. The SCAs organise the training programme in their States with the help of local Government owned / recognized training institutes in trades having potential for self/wage employment. The cost of the training programme is upto Rs.2000/- per candidate per month for a maximum of 6 month duration course. Stipend per trainee is Rs.1000/- per month. The SCAs/Training Institutes have to ensure placement of at least 80% trainees in wage/ self-employment. During the year under report, your Corporation could provide assistance of Rs.85.50 Lakhs to train over 575 beneficiaries in 3 States.

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ii) Marketing Assistance Scheme: The Scheme is for individual crafts-persons/beneficiaries/SHGs. Your Corporation provides grant to SCAs for organizing State/District level exhibitions at selected locations. In these exhibitions, handloom /handicraft products of Minority crafts-persons are exhibited and sold. Such exhibitions also serve the purpose of organizing “Buyer Seller Meet”. During the year under consideration, exhibitions were organised by the SCAs located in the States of J&K (JKWDC), Kerala (KSBCDC) & West Bengal (WBMDFC). The total expenditure of Rs.35.46 lacs was incurred involving 320 artisans.

iii) Grant in Aid Assistance Scheme (GIA): This scheme of Ministry of Minority Affairs is to support SCAs of your Corporation in strengthening their infrastructure and credit delivery mechanism under the GIA scheme, the SCAs can incur expenditure on Awareness Campaigns, improving credit delivery system, loan recovery, etc. However, TA & DA for staff and officers of SCAs is limited to 5% of total sanctioned amount. Till date of the report, your Corporation disbursed Rs.155.30 lakhs to 21 SCAs.

h. Repayments: As on 31.3.2017, the cumulative repayment from SCAs of your Corporation is 94.75% under Term Loan and Micro-Credit Scheme is 98.89%.

i. utilization of Funds: During the year, the SCAs could utilize the funds to the extent of Rs.464.15 crores as against Rs.418.94 crores in the last year. The cumulative utilization of funds by channelizing agencies as on 31.03.2017 is 85.92% as against 82.45% in the previous year.

j. RecoveriesfromBeneficiaries: As on 31.3.2017, only 6 SCAs are maintaining recovery of over 90% from beneficiaries; 10 SCAs are recovering in the range of 70% - 90%; 4 SCAs have recovery ranging between 50% - 70%, while other SCAs are not reporting their grass root level recovery status.

k. partnership with new Agencies: Your Corporation entered into agreement with J&K Financial Corporation as an additional SCA in the state of J&K.

l. 12th plan performance: During the 12th Plan Period, your Corporation has cumulatively disbursed Rs.2104.04 crores. This assistance has benefited Rs.4.81 lakhs Minority beneficiaries of which nearly 61.97% are women beneficiaries.

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m. Mou performance: A Memorandum of Understanding is signed every year between your Corporation and Administrative Ministry i.e. Ministry of Minority Affairs through which performance targets are set. MoU for the year 2016-17 was signed on 27th September, 2016.

The MoU rating for the financial year 2016-17 is projected as “excellent” which is the same as previous year’s achievement. The targets and achievements of major MOU parameters are given below:-

Mou 2016-17: targets and Achievement upto 31/03/2017Sr. no.

evaluation Criteria unit Weightage

(in %)

Mou target Achieve-ment upto 31/03/2017 (Audited)

excellent (100)

V. Good (80) Basic

target(i)

Capacity utilization:

Loans Sanctioned Rs. Crore

10 650.00 550.00 650.00

(ii) A EfficiencyParameters:

Average time taken for dispos-al of Loan Application

No. of Days

10 28 30 26

(ii) B technology up-gradation:

Award of Contract for Imple-mentation of Loan Manage-ment System Software

Date 5 31/01/2017 15/02/2017 NIL

(iii) leveraging net Worth:

Disbursement / Total Funds Available

%age 15 90 88 90.51

(iv) Monitoring parameter:

NPA/ Loan Assets %age 5 8.00 8.20 4.09

(v) turnover from operations:

Revenue from Operations Rs. In Cr

10 46.50 46.00 44.05

(vi) OperatingProfit/Surplus:

Surplus before Tax (excluding Other Income, Extraordinary and Exceptional items)

Rs. In Cr

10 16.95 16.62 34.77

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(vii) early signs of weakness:

Restricting the No. of Claims against the Company not ac-knowledged as debt. Claims raised by - CPSE & Others

Nos. 5 0 1 0

(viii)

Marketingefficiencyratios:

A. Disbursement / Loan Sanc-tioned

%age 5 86.00 85.00 77.43

(Disbursement of Funds) 559.00 467.50 503.32

B. Overdue loans to Loan As-sets

%age 5 10.00 10.20 7.54

(ix) Return on Investment:

Surplus/ Average Net Worth %age 10 1.25 1.21 2.64

(x)

Sector/ CPSE specific tar-gets:

Equity from States Rs. In Cr

10 25.00 24.00 52.09

total 100

n. performance since inception at a glance: Plan wise details of funds disbursed is given in Appendix-1

9. AWAReneSS CAMps: 12 SCAs had organised 68 awareness camps during the year 2016-17. These Awareness Camps have not only helped to disseminate information about Schemes of your Corporation but also helped in receipt of large number of applications for availing benefit under these schemes. This has also helped to finance needy beneficiaries from distant places.

10. SpeCIAl InItIAtIVeS

i) Cluster Visits: In order to assess the crafts being practised by the artisans belonging to Minority Communities and take stock of their marketing arrangements, the officers of NMDFC had visited craft clusters of Indore, Bhopal, Ahmedabad, Kachchh, Nagaland, Jaipur, Makrana, Sikar and Aligarh between August, 2016 to March, 2017. Clusters of Saudagiri Block Printing, Mashroo Cloth, Patola (Patan), Pen Knife, Kachchh Bandhni, Mutva Embroidery, Metal Bells, Bhujodi etc. in Gujarat were also visited from 1st to 5th October, 2016. The team had visited the clusters of Lac Bangles, Jewellery, Juttis and decorative items (Jaipur), Marble products (Makrana), Bandhej & Lac Bangles (Sikar) from 10th to 12th January, 2017.

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A team of officers had also visited Dimapur, during the Hornbill Festival and identified Minority artisans engaged in Cocoon decorated items, Naga handloom, loin loom wood Carving, Macreme Crafts, etc. from 6th December to 8th December, 2016. The clusters of Blackstone Pottery, Clay object, Kauna Baskets etc. were visited by the team in Manipur from 16th March to 19th March, 2017.

ii) organizing of “hunar haat” exhibitions by nMDFC under the aegis of Ministry of Minority Affairs: Your Corporation has organized two Hunar Haat Exhibitions as per the directions from the Ministry of Minority Affairs, Govt. of India.

1. hunar haat during IItF-2016: The first Hunar Haat was organized during the India International Trade fair -2016, at Pragati Maidan, from 14th to 27th November, 2016. Over 170 artisans from 24 States were provided opportunity to showcase & sell their finest handloom & handicrafts products. Hunar Haat Exhibition was jointly inaugurated by Sh. Piyush Goyal, Hon’ble Minister of State, (Independent Charge) for Power, Coal, New and Renewable Energy and Mines, Sh M. J. Akbar, Hon’ble Minister of State for External Affairs and Sh. Mukhtar Abbas Naqvi, Hon’ble Minister of State (Independent Charge) for Minority Affairs and Parliamentary Affairs on 15th November, 2016. During the exhibition, the artisans were able to register direct sale of products worth Rs. 2.17 Cr. (Rs. 0.76 Cr. under Craft Products & Rs. 1.40 Cr. under Textile Products categories). These artisans were also able to get firm orders from buyers in India & abroad.

2. hunar haat at the Baba Kharak Singh Marg, new Delhi: The second Hunar Haat was organized from 11th to 26th February, 2017 at Baba Kharak Singh Marg, Connaught Place, New Delhi which was given the name “Crafts aur Cuisines Ka Sangam”. During this Hunar Haat exhibitions, 100 artisans from 22 States and 30 culinary experts from 14 States got the opportunity to participate in the exhibition to exhibit exquisite handmade products and serve finest traditional cuisines. The Hunar Haat was inaugurated by Sh. Mukhtar Abbas Naqvi, Hon’ble Minister of State (Independent Charge) for Minority Affairs and Parliamentary Affairs on 11th February, 2017. Several esteemed dignitaries i.e. Sh. Jitendra Singh, Minister of State for Development of North Eastern States (I/C) and

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Minister of State for Prime Minister Office, Personnel, Public Grievances and Pension, Department of Atomic Energy & Department of Space Government of India, Comedian Raju Srivastav, Ghazal Singer Peenaz Masani and Sufi Singer Hans Raj Hans visited the Hunar Haat exhibition. During the exhibition, the artisans / culinary experts were able to register sale of products worth Rs. 1.81 Cr. (Rs. 1.37 Cr. by Artisans and Rs. 0.44 Cr. by Culinary experts).

Reports on the Hunar Haat organized during the IITF 2016 & BKS Marg from 11th to 26th February, 2017 were submitted to your Board of Directors in its 102nd meeting held on 14th March 2017. The Hunar Haat exhibitions were highly successful as acclaimed by visitors, exhibitors while electronic and print media had reported it as a grand success. Several news channels and newspapers covered the event with full appreciation of the Hunar Haat Exhibition and products brought by the artisans & Culinary Experts. The Hunar Haat Exhibition recorded commendable footfall due to wide publicity, while variety of arts, crafts & cuisines had attracted visitors in large numbers.

The artisans & culinary experts who had set up their stalls conveyed their gratitude to the Ministry & your Corporation for this unique initiative of participating in the prestigious India International Trade Fair & organizing the event at Baba Kharak Singh Marg. They also expressed their happiness from the core of their hearts for giving them such a platform to market their products. Detailed reports on both the Hunar Haats has since been furnished to the Ministry of Minority Affairs.

iii) Swachh Bharat Abhiyan: In compliance of instructions received from Ministry of Minority Affairs from time to time, your Corporation undertook various activities for achieving the mission “Swacch Bharat Abhiyaan” including printing of logo in the letter heads and envelopes. Auction of the obsolete items were carried out and the obsolete publicity materials were discarded and remaining items were organised properly. Cleaning Abhiyan was carried out on 16.12.2016 wherein all the employees including CMD took part in cleaning the nearby areas adjacent to office building. One important initiative taken by your Corporation was that the staff & members were motivated to bring belongings from their homes which are not being used by them. These items were got distributed through an NGO to needy poor persons in nearby areas.

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iv) Vigilance Awareness Week: As per the instructions received from the Ministry of Minority Affairs vide letter dated 13.11.2016 and in continuation to the CVC circular dated 26.9.2016, the Corporation had organised the Vigilance Awareness Week from 31st October to 5th November, 2016. The theme of the vigilance awareness week was public participation in promoting the integrity and eradicating corruption. A Workshop was organised on 3.11.2016 wherein guest lecture was organised on the topic for the employees of the Corporation.

v) Incorporating urdu section in ‘parwaz’ Magazine: During the year, your Corporation introduced Urdu section in the Parwaz magazine in its August, 2016 issue. This redesigned magazine, having Hindi, English and Urdu sections, was released by Shri. Mukhtar Abbas Naqvi, Hon’ble Minister of State for Minority Affairs, during the Annual Conference of State Channelizing Agencies held on 26th September, 2016. This will help in disseminating information about the schemes & programmes of your Corporation, among the target group reading Urdu language.

vi) launching of toll Free IVRS: As a unique initiative by National Minorities Development & Finance Corporation (NMDFC), the Interactive Voice Response System (IVRS) in Hindi & English was launched by Shri Mukhtar Abbas Naqvi Hon’ble Minister of State for Minority Affairs (Independent Charge) & Parliamentary Affairs, in New Delhi on September 27, 2016. The IVRS is accessible from toll free telephone number 14402. NMDFC is the 1st Social Sector Apex Corporation to have started its IVRS system that is expected to help the persons from the target groups to know about the schemes and also guide them in availing assistance under schemes of NMDFC.

vii) Release of Fund under pre Matric, post Matric & Merit-cum-Means Scholarships Schemes of MoMA by nMDFC: Ministry of Minority Affairs had nominated your Corporation as the Project Implementing Agency (PIA) for the Ministry, for disbursement of scholarship for the year 2015-16 and 2016-17. Ministry signed the MOU with your Corporation for onward transfer of funds through Direct Benefit Transfer (DBT) mode. Rs.936.91 crores was released by MOMA to NMDFC on 31/03/2016 and on 7/04/2017, while an amount of Rs.228.44 cores was refunded in the account of Ministry of Minority Affairs as per the direction of the ministry.

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viii) Motivational training for staff on the eve of Foundation Day: Your Corporation had celebrated its 23rd foundation day on 30th September, 2016 at its Corporate Office. On the occasion, Chairman-cum-Managing Director, Shri Md. Shahbaz Ali congratulated all the employees of the Corporation for having contributed in meeting the objective of the Corporation to bring about a change in the lives of the poor persons from the targeted Minority groups.

As part of the celebration, a motivational talk was delivered by Sh. Shankar Goenka, followed by lunch for all the employees of the Corporation.

ix) Release of “Kaamyabiyan”: A Compilation of success stories of beneficiaries of your Corporation was released by the Hon’ble Minister during the Annual conference held on 08/07/2017. This was well received by the audiences who expressed view that such efforts would go a long way in motivating prospective beneficiaries.

x) launching of Mobile App: An app, based on the schemes of your Corporation was also launched by the Hon’ble Minister during the Annual Conference. Your Corporation is the first Social Sector Apex Corporation releasing such a mobile app which will help the target group to be aware about the Schemes of your Corporation and avail assistance under these schemes.

11. huMAn ReSouRCeS a. Manpower: The manpower of your Corporation as on 31.03.2017 was 32,

out of which 11(34.38%) belong to SC, 1(1.13%) belong to ST, 6(18.75%) belong to OBC and 3(9.38%) belong to Minority Communities. The representation of women employees in the Corporation was 4(12.5%). Cordial relations prevailed between the Management and the employees of your Corporation throughout the year.

b. training programmes during the year: One official of the Corporation had attended a 5 day Professional Development Training program at Indian Institute of Public Administration (IIPA), Delhi.

c. International Woman’s Day Celebration: The International Women’s day has been celebrated on 08.03.2017, where Professor (Dr.) Ms. Krishna Menon of Ambedkar University, Delhi had delivered a lecture on Family & Career-A balancing act for successful women”. All the regular employees and contractual staff had attended the said lecture.

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d. International Yoga Day celebration: International Yoga day was observed for the employees of your Corporation on 21st June, 2017. Instructors from Bapu Nature Care Hospital & Yogashram had conducted the Yogic practices for the employees and also explained to them about the importance of practising Yoga in day-to-day life.

12. pRoGReSSIVe IMpleMentAtIon oF oFFICIAl lAnGuAGe

In compliance with Official Language Policy, your Corporation carried out the following activities during the year 2016-17:

a. Meetings of the Official Language Implementation Committee have been organised regularly under the Chairmanship of CMD of your Corporation;

b. The quarterly progress reports and half yearly reports about progressive use of official language Hindi submitted to the Ministry of Minority Affairs.

c. Many documents of the Corporation and standard forms were translated into Hindi to ensure the compliance of Section 3(3) of the Official Language Act, 1963,

d. Implemented Hindi incentive allowance scheme for Stenographers and Typist to motivate them in doing their official work in Hindi, in addition to English.

e. “hindi pakhwada” was organised successfully from 01.09.2016 to 15.09.2016 in your Corporation. During this period, the employees of the Corporation enthusiastically participated in Noting/Drafting, Essay writing, quiz competitions and did their maximum official work in Hindi. Hindi Diwas was celebrated on 30th September, 2016 and cash prizes were distributed among the participants who performed well in these competitions;

13. eXtRACt oF AnnuAl RetuRnIn compliance to provisions of Section 134(3) (a) read with provisions of sub-section (3) of Section 92 of the Companies Act, 2013, extract of annual return is given at Appendix-2

14. BoARD MeetInGSDuring the year, three Board Meetings were held on 04/08/2016, 02/09/2016 and 14/03/2017.

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15. SuBSIDIARY CoMpAnIeS, JoInt VentuReS & ASSoCIAte CoMpAnIeSAs required under the proviso to sub-section (3) of Section 129 of the Companies Act, 2013, a separate statement containing the salient features of the financial statements of the Associate in form AOC-1 is annexed to the Financial Statements and forms part of the Annual Report, which covers the performance and financial position of the Associate Company.

16. ConSolIDAteD FInAnCIAl StAteMent

The Audited Consolidated Financial Statement for the financial year ended March 31, 2017, based on the financial statement received from associate company, as approved by their Board of Directors have been prepared in accordance with Indian Accounting Standards (Ind-AS).

17. outlooK FoR 2017-18

MoU for 2017-18 has been executed between Shri Ameising Luikham, Secretary of Ministry of Minority Affairs & Shri Shahbaz Ali, CMD of your Corporation on 08/07/2017 during the Annual Conference of your SCAs held at Hyderabad. It is pertinent to mention that an amount of Rs.525.00 crores is likely to be disbursed for up-liftment of over 1,15,000 beneficiaries during the financial year 2017-18.

During the conference, two MoUs for 2017-18 were also executed between your Corporation & SCAs of JKWDC & NIDC for implementation of your Corporation schemes by the respective SCAs. On the same lines, MoUs were also being signed by the respective Managing Directors of other State Channelizing Agencies (SCAs) with NMDFC.

18. pReSent StAtuS WIth DeFAultInG SCAs

In order to recover the long pending overdues, the matter has been constantly followed-up with the respective State Governments and their SCAs. In response, Corporation could realize overdues of Rs.123.25 crores from 10 SCAs i.e. Karnataka (KMDC), Punjab (BACKFINCO), Manipur (MTDC), Jharkhand (JSCTDC), Madhya Pradesh (MPBCMFDC), Gujarat (GMFDC), Haryana (HBCKN), Odisha (OBCFDC), J&K (JKSCSTDC) & Uttar Pradesh (UPMFDC). Major amount of Rs.64.22 crores has been realized from UPMFDC during 2016-17.

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Further, your Corporation is making all-out efforts to recover the remaining overdues of Rs.54.60 crores (approx.) as on 31.03.2017 from 7 more defaulting SCAs namely Assam (AMDFC), Bihar (BSMFC), Chhattisgarh (CSASVVN), Gujarat (GBCDC), Mizoram (ZIDCO), Nagaland (NIDC) & Nagaland (NHHDC) as per OTS scheme approved by your Board of Directors.

It is expected that remaining overdues of Rs.54.60 crores will be extinguished gradually with serious efforts of your Corporation.

19. DIReCtoRS’ ReSponSIBIlItY StAteMent

Pursuant to Section 134(3)(c) read with sub - section 5 of Section 134 of the Companies Act, 2013, your Directors state that:

a. In the preparation of the annual accounts, the applicable accounting standards had been followed and there are no material departures from same;

b. The Accounting policies as selected have been applied consistently. Reasonable and prudent judgments and estimates were made so to give a true and fair view of the state of affairs of the Corporation at the end of March 31, 2017 and the Income and Expenditure of the Corporation for the year ended on that date;

c. Proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Corporation and for preventing and detecting fraud and other irregularities;

d. The annual accounts have been prepared on a going concern basis;

e. Statement to be given under this clause is not applicable as NMDFC is not a listed Company;

f. Proper systems to ensure compliances with the applicable legal provisions have been devised and such systems were adequate and operating effectively.

20. StAteMent on DeClARAtIon oF InDepenDent DIReCtoRS

Provision of Section 134 (3)(d) read with sub-section (6) of Section 149 of the Companies Act, 2013 (requiring a statement on declaration given by independent Directors), is not applicable to Section 8 Companies) by virtue of notification dated 05.06.2015 issued by the Ministry of Corporate Affairs.

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21. DISCloSuRe

a. Disclosure on Company’s policy on Directors’ appointment and remuneration: It is to report that the requirements of disclosing Company’s policy on Directors’ appointment and remuneration including the criteria for determining qualifications, positive attributes, independence of a Director and other matters provided under sub-section (3) of Section 178 of the Companies Act, 2013 are not applicable.

b. Explanations or comments by the Board on every qualification etc.:The auditors’ report does not contain any qualification which warrants any explanation, comments by your Board of Directors.

By virtue of provisions of Section 204 of the Companies Act, 2013 read with Rule 9(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2013, your Corporation is not required to obtain Secretarial Audit Report for the period under review.

c. particulars of loans, guarantee or investments: Pursuant to provisions of Section 186 of Companies Act, 2013, the details of investment made by your Corporation are provided in Standalone Financial Statements under Notes 5.1 & 5.2.

d. particulars of contracts or arrangements with related parties: The Company has entered into related party transaction. The particulars of contract or arrangements entered into by the Company with Related Parties referred in Section 188(1) of the Companies Act, 2013, in the prescribed Form No.AOC-2 given at Appendix-3.

e. Dividend: Your Corporation is a Company registered under Section 25 of the Companies Act, 1956 now covered under Section 8 of the Companies Act, 2013 and in terms of Section 8(1)(b) & Section 8(1)(c) ploughs back its excess of income over expenditure to its business and prohibited from declaring dividend.

f. Material Changes and Commitments: No material changes and commitments affecting the financial position of your Corporation have occurred after the end of the financial year 2016-17 and till the date of this report.

g. Conservation of energy, technology Absorption and Foreign exchange earnings and outgo: Information and details regarding conservation of energy, technology absorption and foreign exchange earnings are NIL.

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h. Risk Management policy: Regarding Risk management, the policy was approved by the Board in its 85th meeting held on 10/05/2013. In the opinion of the Board, in your Corporation, the purpose of Enterprise Risk management is to create, protect and enhance member value and the Corporation’s viability by managing the uncertainties that could influence achieving its objectives.

i. performance evaluation of Board, Committees & Individual Directors: In pursuance to Notification dated 5th June, 2015 issued by the Ministry of Corporate Affairs, provisions of Section 134(3)(p), formal annual evaluation made by the Board of its own performance and that of its committees and individual Directors, are not applicable to your Corporation.

22. BoARD CoMMItteeS

a. CSR Committee: In pursuance to the provisions of Section 135 of the Companies Act, 2013 read with rule 5 of Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors vide Resolution by circulation dated 31st March, 2017 constituted CSR Committee comprising of four directors namely Shri Javed Ahmed Siddiqui, Dr. Naheed Soz, K.T. Balabhaskaran and S.N. Rankhambe. One meeting of CSR Committee was held during the year.

b. Audit Committee: The provisions of Section 177 of the Companies Act, 2013 read with Rule 6 of Companies (Meetings of Board and its Powers) Rules, 2014 specifying the classes of Companies to constitute Audit Committee are not applicable on your Corporation. However, the Board of Directors of your Corporation has constituted an Audit Committee in its Board Meeting held on 04/08/2016 for seeing the Annual Accounts.

c. nomination and Remuneration Committee and Stakeholders Relationship Committee: Provisions of Section 178 of the Companies Act, 2013 read with Rule 6 of Companies (Meetings of Board and its Powers) Rules, 2014, your Corporation is not required to constitute a Nomination and Remuneration Committee of the Board. However, the Board of Directors of your Corporation has constituted a Committee in its Board Meeting held on 03/08/2017 to examine the proposal of PRP as per guidelines approved by the Board and put up their recommendations to the Board of Directors, for payment of PRP as per the approval.

d. Vigil Mechanism: As per provisions of sub-section (9) of Section 177 of

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the Companies Act, 2013 read with Rule 7(1) of Companies (Meetings of Board and its Powers) Rules, 2014, your Corporation is outside the purview of formation of Vigil Mechanism. However, the employees are encouraged to report unethical behaviour, actual or suspected fraud, if any, to the higher authorities.

23. BoARD oF DIReCtoRS

Since the last report, following changes took place in the Board of Directors of your Corporation:-

• Sh. Rakesh Mohan, Joint Secretary, MOMA vacated the office on 29/08/2016. Sh. K.C. Samria, Joint Secretary, MOMA took over as Director of NMDFC w.e.f. 23/11/2016. Later on, Sh. Siddharth Kishore Dev Verman, Joint Secretary, MOMA took over as Director in place of Sh. K.C. Samria w.e.f. 30/01/2017.

• Smt. Rashmi Saxena Sahni, Joint Secretary in the Ministry of Women and Child Development vacated the office on 8/05/2017. Later on, Sh. L.K. Meena, Joint Secretary, MWCD was appointed ED of RMK in place of Smt. Rashmi Saxena Sahni w.e.f. 12.07.2017.

• Shri Sibin. C, ED, Punjab State Backward Classes Land Development & Finance Corporation vacated the office as a Director w.e.f. 24/03/2017.

24. CoRpoRAte GoVeRnAnCe

Your Corporation is committed to maintain highest standards of Corporate Governance Guidelines for CPSEs issued by DPE vide its order dated 14.05.2010. A detailed report on Corporate Governance as stipulated under DPE Guidelines is enclosed with the Annual Report given at Appendix-4. A Certificate from the practicing Chartered Accountant regarding compliance of applicable provisions of DPE Guidelines has been obtained and annexed at the end of the Corporate Governance Report.

25. AuDItoRS

The Auditors’ of your Corporation is appointed by the Comptroller and Auditor General of India (CAG). M/s. Vijay Sehgal & Co. Chartered Accountants, New Delhi, are the Auditors appointed for the year 2016-17 by the office of CAG.

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26. AuDItoRS’ RepoRt

Auditors’ Report on the financial statements for the year 2016-17 together with the notes thereon is attached. A perusal of the statement reflects that it certifies true and fair view of the state of affairs of the Company and is self-explanatory

27. oBSeRVAtIon oF C&AG

The Company has submitted the financial statement for the year 2016-17 together with the report of the Auditors to the office of C&AG for their review and comment, if any. The Company will circulate to the members, the comments, if any, given by C&AG and also to place before the AGM in the same manner as the Audit Report in conformity with the Proviso to Section 142 (6)(b) of the Companies Act, 2013.

28. otheR DISCloSuRe

The details of other disclosure or reporting with regard to following matters are not required, as there were no transactions on these items during the year:-

a. Details relating to deposits as stipulated in Chapter V of the Companies Act, 2013.

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

c. Issue of shares (including sweat equity shares) to the employees of the Corporation under any scheme.

d. No significant material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and operations of the Corporation.

29. pRoCuReMent FRoM MSes

With reference to Public Procurement Policy for Micro & Small Enterprises (MSEs) Order, 2012, 20% of the total procurement is to be made from MSEs. During the year, your Corporation procured Rs.2990.13 lakhs from MSEs out of total procurement of Rs.5490.07 lakhs which constitute 54.46% of total procurement. The procurement of SC/ST enterprises is 0% of MSEs procurement.

30. DISCloSuRe unDeR the SeXuAl hARASSMent oF WoMAn At WoRKplACe (pReVentIon, pRohIBItIon AnD ReDReSSAl) ACt, 2013

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In compliance to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, citing out the requirements by every Corporation regarding disclosure in its Annual Report of any instance or case received under the Act, during the year under review, there were no cases received under this Act. A meeting was held on 16.12.16 wherein the outside officer Ms. Anu Bhogal, Company Secretary, NSFDC had participated in the meeting and further preventive issues were discussed. The recent guidelines have also been forwarded to women employees of the Corporation.

31. InFoRMAtIon plACeD on WeBSIte

As per statutory requirements, Company is required to place various policies/ documents/ information on its website i.e. www.nmdfc.org. Corporation has a functional website and all the requisite information is uploaded thereat.

32. RepReSentAtIon oF MInoRItY CoMMunItIeS In CoMMItteeS

In the constituted committees, your Corporation has ensured Minority representation by way of nominating one of the officers namely Sh. Javedul Hasan, Deputy Manager (Skill Development).

33. IMpleMentAtIon oF RIGht to InFoRMAtIon ACt 2005

As per the Right to Information Act 2005, the Corporation has nominated one Public Information Officer, one Asstt. Public Information Officer and also an Appellate Authority. The information required to be disclosed under clause 4(1) (b) of RTI Act has already been placed on the website, along with the Annual status of receipt and disposal of the RTI Applications and Appeals. The quarterly and Annual Report on implementation of RTI Act are also being submitted to the Central Information Commission through the Ministry of Minority Affairs by the Corporation. During the year, a total number of 17 no of applications under RTI were received and all have been disposed off.

34. pARtICulARS oF eMploYeeS u/S 134(3) oF the CoMpAnIeS ACt, 2013

None of the employees of the Corporation, was drawing a remuneration in excess of Rs.2,00,000/- p.m. if employed for a part of the year or in excess of Rs. 24,00,000/- p.a. if employed for whole of the year 2016-17.

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35. ACKnoWleDGeMentS

The Board gratefully acknowledges the support, help and guidance received from the Ministry of Minority Affairs, Ministry of Corporate Affairs, Comptroller and Auditor General of India, Department of Public Enterprises and cooperation extended by the State Level Corporations and other Channelizing Agencies of NMDFC. Your Directors are also grateful to various Government Departments and other Agencies, Auditors for continued guidance, advice and assistance rendered by them. Your Directors express gratitude to SIDBI, Public Sector Banks, Sister Corporations and other undertakings for their support. Your Directors wish to place on record their appreciation for the committed services of the employees of your Corporation during the year.

For and on behalf of the Board of Directors of nMDFC

Sd/-(MD. ShAhBAZ AlI)

place: new Delhi Chairman-cum-Managing DirectorDate: 09/09/2017 (DIn-03282551)

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peRIoD AChIeVeMentS teRM loAn MICRo FInAnCeFInAn-CIAl

phYSI-CAl

pRoGRAMMe pRoGRAMMe

In Rs/CRoReSVIII th plAn (1992-97)

1994-95 30.03 9570 30.03 9570

1995-96 6.49 4797 6.49 4797

1996-97 44.23 10749 44.23 10749

totAl ‘A’ 80.75 25116 80.75 25116

IXth plAn (1997-02)

1997-98 23.41 4932 23.41 4932

1998-99 59.82 17614 59.39 14333 0.43 3281

1999-2000 61.30 29869 60.78 22510 0.52 7359

2000-2001 73.44 31672 72.44 20274 1.00 11398

2001-2002 96.84 46038 92.06 21489 4.78 24549

totAl’B’ 314.82 130125 308.08 83538 6.74 46587

Xth plAn (2002-07)

2002-2003 73.94 23888 71.04 16348 2.90 7540

2003-2004 86.66 27599 82.24 18184 4.42 9415

2004-2005 139.01 46586 130.72 35552 8.29 11034

2005-2006 108.12 34301 98.10 23408 10.02 10893

2006-2007 112.75 47783 99.58 22301 13.17 25482

t o t A l ‘C ‘ 520.49 180157 481.68 115793 38.81 64364

Appendix-1

nAtIonAl MInoRItIeS DeVelopMent & FInAnCe CoRpoRAtIonAmount in Rs. Crores

as on 31/3/2017

YeAR-WISe FInAnCIAl & phYSICAl AChIeVeMentS DuRInG VIIIth, IXth, Xth, XIth & XIIth plAn peRIoDS

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peRIoD AChIeVeMentS teRM loAn MICRo FInAnCeFInAn-CIAl

phYSI-CAl

pRoGRAMMe pRoGRAMMe

In Rs/CRoReS

XIth plAn (2007-12)

2007-2008 144.12 47733 130.90 31574 13.22 16159

2008-09 130.73 51198 114.79 34985 15.94 16213

2009-10 197.75 104595 139.02 30892 58.73 73703

2010-11 233.27 158510 129.48 28768 103.79 129742

2011-12 271.37 105874 111.99 17172 159.38 88702

t o t A l ‘D ‘ 977.24 467910 626.18 143391 351.06 324519

XIIth plAn (2012-17)

2012-2013 370.77 102302 184.07 19328 186.70 82974

2013-2014 325.46 75966 202.50 21318 122.96 54648

2014-2015 431.20 108752 244.40 25731 186.80 83021

2015-2016 473.29 86103 309.64 20643 163.65 65460

2016-2017 503.32 108588 278.22 18548 225.10 90040

t o t A l ‘e ‘ 2104.04 481711 1218.83 105568 885.21 376143

t o t A l A + B + C+ D+e

3997.33 1285019 2715.52 473406 1281.81 811613

TOTAL UNDER TERM LOAN PROGRAMME

2715.52 473406

TOTAL UNDER MICRO FINANCE PROGRAMME

1281.81 811613

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Sl. no.

name & Description of main products/services

nIC Code of the product /service

% to total turnover of the company

1 Loan and other Assistance to Mi-norities people

649 100%

Appendix-2

FORM NO. MGT 9eXtRACt oF AnnuAl RetuRn

as on financial year ended on 31.03.2017Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the

Companies (Management & Administration ) Rules, 2014.

I. ReGIStRAtIon & otheR DetAIlS:

i CIN U74899DL1994NPL061852ii Registration Date 30/09/1994iii Name of the Company NATIONAL MINORITIES DEVELOPMENT

AND FINANCE CORPORATIONiv Category/Sub-category of the

CompanyCOMPANY LIMITED BY SHARES/Govt. Com-pany

v Address of the Registered office & contact details

1ST FLOOR CORE-1, SCOPE MINAR, LAXMI NAGAR, NEW DELHI-110092

vi Whether listed company NOvii Name , Address & contact de-

tails of the Registrar & Transfer Agent, if any.

NA

II. pRInCIpAl BuSIneSS ACtIVItIeS oF the CoMpAnY All the business activities contributing 10% or more of the total turnover of the

company shall be stated

Sl. no

name & Address of the Company

CIn/Gln holDInG/ SuBSIDIARY/ ASSoCIAte

% oF ShAReS

helD

ApplICA-Ble

SeCtIon1 National Waqf

Development Cor-poartion Ltd.

U74999DL-2013GOI262924

Associate 45.58 2(6)

III. pARtICulARS oF holDInG , SuBSIDIARY & ASSoCIAte CoMpAnIeS

N M D F C


C

ateg

ory

of

Shar

ehol

ders

no.

of S

hare

s he

ld a

t the

be

ginn

ing

of th

e ye

arn

o. o

f Sha

res

held

at t

he

end

of th

e ye

ar%

cha

nge

in

shar

e ho

ld-

ing

durin

g th

e ye

arD

emat

phys

ical

tota

l%

of

tota

l Sh

ares

Dem

atph

ysic

alto

tal

% o

f to

tal

Shar

esA

. Pro

mot

ers

(1)

Indi

an

NA

N

A

a) In

divi

dual

/HU

F

b) C

entr

al G

ovt.o

r S

tate

Gov

t.1,

36,5

4,50

51,

36,5

4,50

510

0.00

1,53

,98,

172

1,53

,98,

172

100.

00N

IL

c) B

odie

s C

orpo

rate

s-

--

--

--

--

d) B

ank/

FI

--

--

--

--

-

e) A

ny o

ther

5555

0.00

5555

0.00

NIL

SU

B T

OTA

L:(A

) (1

)1,

36,5

4,56

01,

36,5

4,56

010

01,

53,9

8,22

71,

53,9

8,22

710

0N

IL

(2)

Fore

ign

N

A

NA

N

A

NA

N

A

NA

a) N

RI-

Indi

vidu

als

b) O

ther

Indi

vidu

als

c) B

odie

s C

orp.

d) B

anks

/FI

e) A

ny o

ther

…

SU

B T

OTA

L (A

) (2

)N

ILN

ILN

ILN

ILN

ILN

ILN

ILN

IL

IV.

Sh

AR

eho

lDIn

G p

Atte

Rn

(e

quity

Sha

re c

apita

l Bre

ak u

p as

% to

tota

l equ

ity)

i) C

AteG

oRY

WIS

e Sh

AR

eho

lDIn

G

N M D F C


Tota

l Sha

reho

ldin

g of

P

rom

oter

(A

)= (

A)(

1)+(

A)(

2)

1,36

,54,

560

1,36

,54,

560

100

NIL

1,53

,98,

227

1,53

,98,

227

100

NIL

B. P

UB

LIC

SH

AR

E-

HO

LDIN

GN

ILN

ILN

ILN

ILN

ILN

ILN

ILN

ILN

IL

(1)

Inst

itutio

ns

a) M

utua

l Fun

ds

b) B

anks

/FI

C)

Cen

ntra

l gov

t

d) S

tate

Gov

t.

e) V

entu

re C

apita

l F

und

f) In

sura

nce

Com

pa-

nies

g) F

IIS

h) F

orei

gn V

entu

re

Cap

ital F

unds

i) O

ther

s (s

peci

fy)

SU

B T

OTA

L (B

)(1)

:N

ILN

ILN

ILN

ILN

ILN

ILN

ILN

ILN

IL

C

ateg

ory

of

Shar

ehol

ders

no.

of S

hare

s he

ld a

t the

be

ginn

ing

of th

e ye

arn

o. o

f Sha

res

held

at t

he

end

of th

e ye

ar%

cha

nge

in

shar

e ho

ld-

ing

durin

g th

e ye

arD

emat

phys

ical

tota

l%

of

tota

l Sh

ares

Dem

atph

ysic

alto

tal

% o

f to

tal

Shar

es

N M D F C


(2)

Non

Inst

itutio

ns

a) B

odie

s co

rpor

ates

i) In

dian

ii) O

vers

eas

b) In

divi

dual

s

i) In

divi

dual

sha

re-

hold

ers

hold

ing

nom

-in

al s

hare

cap

ital u

pto

Rs.

1 la

khs

ii) In

divi

dual

s sh

are-

hold

ers

hold

ing

nom

-in

al s

hare

cap

ital i

n ex

cess

of

Rs.

1 la

khs

c) O

ther

s (s

peci

fy)

SU

B T

OTA

L (B

)(2)

:N

ILN

ILN

ILN

ILN

ILN

ILN

ILN

ILN

IL

Tota

l Pub

lic S

hare

-ho

ldin

g (B

)= (

B)(

1)+(

B)(

2)

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

C. S

hare

s he

ld b

y C

usto

dian

for

G

DR

s &

AD

Rs

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

Gra

nd T

otal

(A

+B+C

)1,

36,5

4,56

01,

36,5

4,56

010

0N

IL1,

53,9

8,22

71,

53,9

8,22

710

0N

IL

C

ateg

ory

of

Shar

ehol

ders

no.

of S

hare

s he

ld a

t the

be

ginn

ing

of th

e ye

arn

o. o

f Sha

res

held

at t

he

end

of th

e ye

ar%

cha

nge

in

shar

e ho

ld-

ing

durin

g th

e ye

arD

emat

phys

ical

tota

l%

of

tota

l Sh

ares

Dem

atph

ysic

alto

tal

% o

f to

tal

Shar

es

N M D F C


ii)

Sh

AR

e h

olD

InG

oF

pRo

Mo

teR

S

Sl

no.

Shar

ehol

ders

nam

eSh

areh

oldi

ng a

t the

be

ggin

ning

of t

he y

ear

Shar

ehol

ding

at t

he

end

of th

e ye

ar

no.

of

shar

es

% o

f tot

al

shar

es

of t

he c

om-

pany

% o

f sha

res

pled

ged

enc

umbe

red

to

tota

l sha

res

no

of

shar

es

1P

resi

dent

of

Indi

a11

2500

0582

.390

Nil

1265

0005

2Jo

int S

ecre

tary

, MO

MA

10.

000

Nil

1

3G

over

nor

of U

ttar

Pra

desh

and

MD

7000

60.

513

Nil

7000

6

4G

over

nor

and

MD

of

karn

atak

a16

2245

1.18

8N

il16

2245

5M

D A

ndhr

a pr

ades

h S

tate

6343

70.

465

Nil

6343

7

6G

over

nor

Ker

ala

2866

972.

100

Nil

2866

97

7G

over

nor

And

hra

prad

esh

1000

00.

073

Nil

1000

0

8G

over

nor

and

MD

Bih

ar20

7243

1.51

8N

il20

7243

9G

over

nor

of H

P56

700.

042

Nil

5670

10T

he A

dmin

istr

atio

n C

hand

igar

h39

050.

029

Nil

3905

11T

he S

ecre

tary

Cha

ndig

arh

8500

00.

623

Nil

8500

0

12T

he S

ecre

tary

Dad

ar a

nd N

agar

hav

eli

145

0.00

1N

il14

5

13G

over

nor

Har

yana

2112

00.

155

Nil

2527

0

14G

over

nor

Guj

rat

1017

070.

745

Nil

1117

07

15G

over

nor

oris

sa11

158

0.08

2N

il11

158

16G

over

nor

Miz

oram

9960

0.07

3N

il99

60

17G

over

nor T

ripur

a18

818

0.13

8N

il18

818

18G

over

nor

and

Add

. Dire

ctor

Raj

asth

an11

7133

0.85

8N

il23

4200

19G

over

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Del

hi48

033

0.35

2N

il48

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20G

over

nor

Mah

aras

tra

2357

751.

727

Nil

2432

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21G

over

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Nag

alan

d22

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0.16

1N

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N M D F C


22G

over

nor

Wes

t Ban

gal

4336

763.

176

Nil

5836

76

23G

over

nor

MP

2973

60.

218

Nil

2973

6

24G

over

nor

Pun

jab

7600

00.

557

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7600

0

25G

over

nor

Pon

dich

erry

2619

0.01

9N

il26

19

26G

over

nor

Ass

am16

3200

1.19

5N

il16

3200

27G

over

nor

Uttr

akha

nd65

000.

048

Nil

6500

28G

over

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Man

ipur

2500

0.01

8N

il25

00

29G

over

nor

J&K

1332

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976

Nil

1832

50

30G

over

nor

Jhar

khan

d57

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0.42

1N

il62

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31 S

h. K

K M

anch

anda

100.

000

Nil

10

32G

over

nor

Cha

ttisg

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1946

60.

143

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1946

6

33S

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brar

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mt.

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veen

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6545

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3982

27

Sl

no.

Shar

ehol

ders

nam

eSh

areh

oldi

ng a

t the

be

ggin

ning

of t

he y

ear

Shar

ehol

ding

at t

he

end

of th

e ye

ar

no.

of

shar

es

% o

f tot

al

shar

es

of t

he c

om-

pany

% o

f sha

res

pled

ged

enc

umbe

red

to

tota

l sha

res

no

of

shar

es

N M D F C


iii

) C

hA

nG

e In

pR

oM

ote

RS’

Sh

AR

eho

lDIn

G (

SpeC

IFY

IF t

heR

e IS

no

Ch

An

Ge)

Sl.

no.

Dat

eR

easo

nIn

crae

se/d

ecre

ase

in

Shar

ehol

ding

Cum

ulat

ive

Shar

ehol

ding

du

ring

the

year

no.

of

Shar

es%

of t

otal

sh

ares

of

the

Com

-pa

ny

no.

of

shar

es

% o

f tot

al

Shar

es o

f the

C

ompa

ny

1P

resi

dent

of

Indi

a4-

Aug

-16

Allo

tmen

t 14

0000

010

.253

1265

0005

82.1

5234

78

2G

over

nor

of M

ahar

astr

a4-

Aug

-16

Allo

tmen

t 74

500.

055

2432

251.

5795

6497

2

3G

over

nor

of G

ujar

at4-

Aug

-16

Allo

tmen

t 10

000

0.07

311

1707

0.72

5453

651

4G

over

nor

of J

&K

4-A

ug-1

6A

llotm

ent

5000

00.

366

1832

501.

1900

7207

8

5G

over

nor

of W

est B

enga

l4-

Aug

-16

Allo

tmen

t 15

0000

1.09

958

3676

3.79

0540

301

6G

over

nor

of R

ajas

than

4-A

ug-1

6A

llotm

ent

1170

670.

857

2342

001.

5209

5432

8

7G

over

nor

of H

arya

na4-

Aug

-16

Allo

tmen

t 41

500.

030

2527

00.

1641

0980

3

8G

over

nor

of J

hark

hand

4-A

ug-1

6A

llotm

ent

5000

0.03

762

500

0.40

5890

886

N M D F C


iv

) Sh

areh

oldi

ng p

atte

rn o

f top

ten

Shar

ehol

ders

(oth

er th

an D

ireco

rs, p

rom

oter

s &

hol

ders

of

G

DR

s &

AD

Rs)

Sl.

no

For e

ach

of th

e to

p 10

Sh

areh

olde

rs

Shar

ehol

ding

at t

he e

nd o

f the

ye

arC

umul

ativ

e Sh

areh

oldi

ng

durin

g th

e ye

arn

o.of

sha

res

% o

f tot

al

shar

es o

f the

co

mpa

ny

no

of

shar

es%

of t

otal

sha

res

of th

e co

mpa

ny

1A

t the

beg

inni

ng o

f th

e ye

ar

nIl

2D

ate

wis

e in

crea

se/d

ecre

ase

in P

ro-

mot

ers

Sha

re h

oldi

ng d

urin

g th

e ye

ar

spec

ifyin

g th

e re

ason

s fo

r in

crea

se/

decr

ease

(e.

g. a

llotm

ent/t

rans

fer/

bo-

nus/

swea

t equ

ity e

tc)

3A

t the

end

of

the

year

(or

on

the

date

of

sep

arat

ion,

if s

epar

ated

dur

ing

the

year

)

N M D F C


v)

Sha

reho

ldin

g of

Dire

ctor

s &

KM

p

Sl.

no

For e

ach

of th

e D

irect

ors

& K

Mp

Shar

ehol

ding

at t

he e

nd

of th

e ye

arC

umul

ativ

e Sh

areh

oldi

ng

durin

g th

e ye

ar

no.

of

shar

es%

of t

otal

sh

ares

of t

he

com

pany

no

of s

hare

s%

of t

otal

sh

ares

of

the

com

-pa

ny1

At t

he b

egin

ning

of

the

year

NIL

2D

ate

wis

e in

crea

se/d

ecre

ase

in P

rom

oter

s S

hare

ho

ldin

g du

ring

the

year

spe

cify

ing

the

reas

ons

for

incr

ease

/dec

reas

e (e

.g. a

llotm

ent/t

rans

fer/

bonu

s/sw

eat e

quity

etc

)3

At t

he e

nd o

f th

e ye

ar

N M D F C


V) InDeBteDneSS

Indebtedness of the Company including interest

outstanding/accrued but not due for payment

Secured loans

excluding deposits

unse-cured loans

Deposits total Indebt-edness

Indebtness at the beginning of thefinancialyeari) Principal Amount Nil Nil Nil Nilii) Interest due but not paid Nil Nil Nil Niliii) Interest accrued but not due Nil Nil Nil Niltotal (i+ii+iii) nil nil nil nil

Change in Indebtedness during thefinancialyearAdditions Nil Nil NilReduction Nil Nil Nil Nilnet Change nil nil nil nilIndebtedness at the end of the financialyeari) Principal Amount Nil Nil Nil Nilii) Interest due but not paid Nil Nil Nil Niliii) Interest accrued but not due Nil Nil Nil Nil

total (i+ii+iii) nil nil nil nil

N M D F C


vi) ReMuneRAtIon oF DIReCtoRS AnD KeY MAnAGeRIAl peRSonnel

A. Remuneration to Managing Director, Whole time director and/or Manager:

Sl.no.

particulars of Remuneration name of the MD/WtD/Manager

total Amount

1 Gross salary Managing Director(NMDFC)

(a) Salary as per provisions contained in section 17(1) of the Income Tax. 1961.

42,84,000 42,84,000

(b) Value of perquisites u/s 17(2) of the Income tax Act, 1961

(c ) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961

2 Stock option Nil Nil3 Sweat Equity Nil Nil4 Commission Nil Nil

as % of profit Nil Nilothers (specify) Nil Nil

5 Others, please specify Nil Niltotal (A) 42,84,000 42,84,000Ceiling as per the Act 10% of Net Profit of the Company

as per Section 198 of company Act 2013

N M D F C


B.

Rem

uner

atio

n to

oth

er d

irect

ors:

Sl.

no

part

icul

ars

of R

emun

erat

ion

nam

e of

the

Dire

ctor

s to

tal A

mou

nt

(a)

Fee

for

atte

ndin

g bo

ard

com

mitt

ee m

eetin

gs

NIL

(b)

Com

mis

sion

(c )

Oth

ers,

ple

ase

spec

ify

Tota

l (1)

2.O

ther

Non

Exe

cutiv

e D

irect

ors

"(a)

Fee

for

atte

ndin

g

boar

d co

mm

ittee

mee

tings

"

(b)

Com

mis

sion

(c )

Oth

ers,

ple

ase

spec

ify.

Tota

l (2)

Tota

l (B

)=(1

+2)

Ove

rall

Cie

ling

as p

er th

e A

ct.

1% o

f th

e N

et P

rofit

of

the

Com

pany

Cal

cula

ted

as p

er

sect

ion

198

of th

e C

ompa

ny A

ct 2

013

Tota

l Man

ager

ial R

emun

erat

ion

11%

of

Net

pro

fit o

f th

e co

mpa

ny c

alcu

late

d as

per

Sec

-tio

n 19

8 of

the

com

pany

Act

201

3

N M D F C


C. ReMuneRAtIon to KeY MAnAGeRIAl peRSonnel otheR thAn MD/ MAnAGeR/WtD

Sl. no.

particulars of Remuneration Key Managerial personnel total

1 Gross Salary Ceo Company Secretary

CFo total

(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961.

Nil 20,50,000 Nil 20,50,000 20,50,000

(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961

NIl NIl

(c ) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961

Nil Nil

2 Stock Option Nil Nil Nil Nil Nil

3 Sweat Equity Nil Nil Nil Nil Nil

4 Commission Nil Nil Nil Nil Nil

as % of profit Nil Nil Nil Nil Nil

others, specify Nil Nil Nil Nil Nil

5 Others, please specify Nil Nil Nil Nil Nil

total 20,50,000 20,50,000 20,50,000

VII penAltIeS/punIShMent/CoMppounDInG oF oFFenCeStype Section of

the Com-panies

Act

Brief De-scription

Details of penalty/punishment/

Compounding fees imposed

Authority (RD/nClt/

Court)

Appeall made if

any (give details)

A. CoMpAnYPenalty

nilPunishment

Compounding

B. DIReCtoRSPenalty

nilPunishment

Compounding

C. otheR oFFICeRS In DeFAultPenalty

nilPunishment

Compounding

N M D F C


Appendix-3FoRM no. AoC.2

(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arms length basis: nil

(a) Name(s) of the related party and nature of relationship (b) Nature of contracts/arrangements/transactions (c) Duration of the contracts/arrangements/transactions (d) Salient terms of the contracts or arrangements or transactions including the

value, if any (e) Justification for entering into such contracts or arrangements or transactions (f) date(s) of approval by the Board (g) Amount paid as advances, if any: (h) Date on which the special resolution was passed in general meeting as required

under first proviso to section 188

2. Details of material contracts or arrangement or transactions at arms length basis

(a) Name(s) of the related party and nature of re-lationship:

National Waqf Development Corporation Limited

(b) Nature of contracts/arrangements/transac-tions

Property given on Lease Agree-ment

(c) Duration of the contracts/arrangements/trans-actions

07/02/2014 to 21/01/2017

(d) Salient terms of the contracts or arrange-ments or transactions including the value, if any

Rs.3.98 lakhs

(e) Date(s) of approval by the Board, if any 14/03/2017(f) Amount paid as advances, if any Nil

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Appendix-4

RepoRt oF DIReCtoRS on CoRpoRAte GoVeRnAnCe

1. Corporate Governance : philosophy

Over the years, your Corporation has shown strong commitment towards efficient Corporate Governance practices as envisaged in the Memorandum & Articles of Association of the Corporation. The main elements of Corporate Governance are fairness, transparency, accountability and responsibility. It comprises a unique blend of legal compliances, and regulations, political and economic climates, values, cultures and voluntary practices and disclosures. Boards are responsible to the Shareholders for the Corporation’s performance. A Corporation cannot prosper without the involvement and support of their Shareholders.

2. Mission Statement

The main objective of the Corporation is to promote economic and development activities for the benefit of “backward sections” amongst the minorities, preference being given to the occupational groups and women. Since inception, your Corporation has been practicing the principles of good Corporate Governance. An effective Corporate Governance established a core set of values of fairness, kindness, efficiency and effectiveness. The values determine the principles of organisation which in turn determine the course of action of each employee in every sphere of activity. For your Corporation, Corporate Governance has always been a self discipline code.

3. Board of Directors: Composition

Under the provisions of Articles of Association of the Corporation, number of Directors shall not be less than four and not more than thirteen. The Board was comprised of nine Directors as on 31.03.2017. These directors include one whole time Director i.e. Chairman-cum-Managing Director Shri. Md. Shahbaz Ali and other Part Time/Non-Executive/Government Directors who bring in a wide range of skills, experience and expertise on the Board. The post of Chairman was held by Sh. D.S Bist till 14.07.2016. Vide order dated 14.07.2016 issued by D.O.P.T., the post of Managing Director, NMDFC was

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re-designated as Chairman-cum-Managing Director. Accordingly, Shri Md. Shahbaz Ali took over the charge of the post w.e.f 15.07.2016.

4. Responsibilities

The Board has a formal schedule of matters reserved for its consideration, action and decision which includes reviewing Corporate Performance, ensuring adequate accountability of financial resources and reporting to Shareholders.

5. Board Meetings

The meeting of the Board of Directors are generally held at Conference Room of NMDFC, 1st Floor, Core-1, Scope Minar, Laxmi Nagar, Delhi. Three Board meetings were held during the Financial Year ending 31.03.2017.

Attendance of Directors in Board Meetings

Sl. no.

Official designation name of the Directors

100th

04.0

8.20

16

101st

02

.09.

2016

102nd

14.0

3.20

17

1 Chairman- cum- Managing Director

Sh. Md. Shahbaz Ali P P P

2 JS, MOMA-Director Sh. Rakesh Mohan P VACANT S.K. D. Verman (P)

3 MD, KSBCDCDirector

Sh. K.T. Balabhaskaran P P P

4 ED, BACKFINCO-Di-rector

Shri. Sibin. C P A A

5 SecretaryNSSWB Director

Ms. Daisy Mehzur A P A

6 MD,JKWDC -Director

Dr.Naheed Soz

P P P

7 GM NABARD-Director VACANT VACANT VACANT VACANT 8 DGM, SIDBI-Director Mr. Javed Ahmed Siddiqui P P P

9 ED, RMK-Director Rashmi Saxena Sahni P A A 10 MD,

MAAVANShri. S.N. Rankhambe A A A

p=present; A=Absent

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6. Remuneration Committee

Remuneration Committee and appointment of independent Director is not applicable to your Corporation as NMDFC does not fall under such class of company as mentioned in Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014 read with Section 149 (4) and (5) along with Section 178. Hence, your Corporation shall not be required to constitute Nomination and Remuneration Committee as well as appointment of independent Director.

7. Audit Committee The Corporation is registered U/s 8 of Companies Act, 2013, as a Company

not for profit. It is neither a Public Company nor a subsidiary of a Public Company. It is a private Government Company and not listed on any Stock Exchange. Since the Corporation does not fall under the definition of listed Public Company, the provision of constitution of Audit Committee does not apply to the Corporation, as per Companies Act. However, on 30.12.2010 Board of Directors of your Corporation adopted the guidelines issued by Department of Public Enterprises (DPE) vide O.M. No.18(8)/2005-GM dated 14th May 2010 for implementation & necessary Action.

A committee comprising of three Directors were constituted. Due to the requirement of a Director having good knowledge of accounting and related management expertise, one more Director was inducted into the Committee. The committee could not meet due to non-adequate membership. Committee has been reconstituted during the current year. However, a revised audit committee for the purpose of seeing the final accounts before the same is placed and approved by the Board has been constituted.

8. Annual General Meetings Annual General Meetings are held at the State in which registered office of

the Corporation is situated. The location, date & time for the last four AGMs are as under:-

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1. 2012-13 New Delhi 27.09.2013 11.00 A.M. 2. 2013-14 New Delhi 30.09.2014 03.00 P.M. 3. 2014-15 New Delhi 23.09.2015 03.30 P.M. 4.a) 2015-16 New Delhi 02.09.2016 04.00 P.M. 4.b) 2015-16 New Delhi 26.09.2016 11.00 A.M. (Adjourned)

9. Attendance at last AGM The 22nd AGM was chaired by Sh. Shahbaz Ali, CMD, NMDFC and four other

members of the Board of Directors namely i) Sh. Daisy Mehzur ii) Sh. K.T. Balabhaskaran iii) Dr. Naheed Soz iv) Sh. Javed Ahmed Siddiqui attended the Annual General Meeting. Besides, Sh. Anurag Bajpai, Director, MOMA representing President of India and 12 other members also attended the Annual General Meeting.

10. Shareholdings

The Paid up Capital of the Corporation was Rs.1539,82,27,000 as on 31.03.2017. The Corporation has received budgetary support of Rs.140,00,00,000 from the Central Government during the year 2016-17. The States in turn provided a contribution of Rs.34,36,67,000 crores as on 31.3.2017. 17,43,667 Equity shares were allotted and share certificate have since been issued.

11. Means of Communication

Shareholders were apprised of the working performance of the Corporation at the Annual General Meetings. The Administrative Ministry on the basis of monthly reports reviews Monthly/quarterly progress of the Corporation, from time to time.

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CeRtIFICAte on CoRpoRAte GoVeRnAnCe

TO THE MEMBERS

nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIonnew Delhi

We have examined the compliance of conditions of corporate Governance by National Minorities Development Finance Corporation (NMDFC) for the year ended 31st march, 2017.

The compliance of conditions of corporate Governance is the responsibility of the company’s Management. Our examination has been limited to a review of the procedure and implementation thereof, adopted by the corporation for ensuring the compliance of the guidelines of Corporate Governance, issued by Department of Public Enterprises. It is neither an audit nor an expression of opinion on the financial statements of the company.

In our opinion and best to the information and accordingto the explanation given to us and according to the records and documents maintained by the corporation, we certify that the company has complied with the condition of corporate governance, as stipulated in guidelines on Corporate Governance, Issued by Department of Public Enterprises {DPEs) for Central Public Sector Enterprises (CPSEs) except the following:-a. Risk Management Policy is not reviewed by the management.b. Compliance of Laws are not reviewed by the management.c. Training to the new Board members is not provided.

We further state that such compliance is neither in assurance as to the future viability of the corporation nor the efficiency or effectiveness with which the management has conducted the affairs of the corporation.

For VIJAV SehGAl & Co.Chartered Accountants

Firm’s Registration NoV374N

Sd/-Place : New Delhi CA S.V. Sehgal, PartnerDated : 8th Sep, 2017 Membership No. 080329

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CoMMentS oF the CoMptRolleR AnD AuDItoR GeneRAl oF InDIA unDeR SeCtIon 143 (6)(b) oF the CoMpAnIeS ACt, 2013 on the FInAnCIAl StAteMentS oF nAtIonAl MInoRItIeS DeVelopMent & FInAnCe CoRpoRAtIon FoR the YeAR enDeD 31 MARCh 2017.

The preparation of financial statements of National Minorities Development & Finance Corporation for the year ended 31 March 2017 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditor/auditors appointed by the Comptroller and Auditor General of India under section 139(5) of the Act is/are responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 3rd August 2017.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6)(a) of the Act of the financial statements of NATIONAL MINORITIES DEVELOPMENT & FINANCE CORPORATION for the year ended 31 March 23017. The 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.

For and on the behalf of the Comptroller and auditor General of India

Sd/-(l. Siddhartha Singh)

place: new Delhi principal Director of Commercial Audit &Date:15.09.2017 Ex-OfficioMember,AuditBoard-IV

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CoMMentS oF the CoMptRolleR AnD AuDItoR GeneRAl oF InDIA unDeR SeCtIon 143(6)(b) ReAD WIth SeCtIon 129 (4) oF the CoMpAnIeS ACt, 2013 on the ConSolIDAteD FInAnCIAl StAteMentS oF nAtIonAl MInoRItIeS DeVelopMent & FInAnCe CoRpoRAtIon FoR the YeAR enDeD 31 MARCh 2017The preparation of consolidated financial statements of National Minorities Development & Finance Corporation for the year ended 31 March 2017 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditor appointed by the Comptroller and Auditor General of India under section 139(5) read with section 129(4) of the Act is/are responsible for expressing opinion on the financial statements under section 143 read with section 129(4) of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 3rd August 2017.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6)(a) read with section 129(4) of the Act of the consolidated financial statements of National Minorities Development & Finance Corporation for the year ended 31 March 2017. We conducted a supplementary audit of the financial statements of National Minorities Development & Finance Corporation, but did not conduct supplementary audit of the financial statements of National Waqf Development Corporation for the year ended on that date. 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.

For and on the behalf of the Comptroller and auditor General of India

Sd/-(l. Siddhartha Singh)

place: new Delhi principal Director of Commercial Audit &Date:15.09.2017 Ex-OfficioMember,AuditBoard-IV

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Independent Auditors’ ReportTo the Members of

nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIon

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIon (“the company”), which comprises of the Balance Sheet as at March 31, 2017, Income and Expenditure account (including other Comprehensive Income), the Cash flow statement and the statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other Comprehensive Income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.

This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting the frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

VIJAY SehGAl & Co.CHARTERED ACCOUNTANTS

H.0.:100.New Rajdhani Enclave. Delhi-110 092 Ph.:2202-5054 e-mail :[email protected]. :B-5. Nizamuddin East, New Delhi-110 013 e-mail : [email protected] Website :www.vsandco.com

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Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.

In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind As financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the Standalone Ind As financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company’s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS; of the state of affairs of the Company as at 31st March

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2017 and its surplus, total other comprehensive income and its cash flows and the changes in equity for the year ended on that date.

emphasis of Matter

We draw attention to the following matters in Notes to Financial statements:

a) Note No. 38.12, which states that all the expenditure amounting Rs.1,41,50,820 and advances amounting Rs.41,79,77324 incurred by the Company for Maulana Azad National Academy for Skill (MANAS) has been booked as receivable from MANAS but the Terms and Condition between the Company and the MANAS are not being finalized. Also, the company has not charged any interest on advances given to MANAS till the date of this report.

b) Note No. 38.4, which states that the balances of loans to State Channelizing Agencies (SCAs)/NGOs and interest accrued and due from them as on 31st March, 2017 are subject to confirmation and reconciliation.

c) Note No. 38.22, which states that the company has been utilizing the funds for implementing the respective schemes of Ministry and does not get any additional fund to meet administrative expenses in this regard. Therefore, the interest earned on the funds is treated as Income of the corporation and is utilised for meeting administrative costs.

Our opinion is not modified in respect of these matters.

Report on other legal and Regulatory Requirements

1) The company is registered under section 25 of the Companies Act, 1956 (now section 8 of Companies act, 2013); the companies (Auditor’s Report) Order, 2016 (‘the order’) issued by the central Government of India in terms of sub-section (11) of section 143 of the Act, the said order is not applicable to the company.

2) As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

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b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, Income & Expenditure Account including other comprehensive Income, Cash Flow Statement and the statement of changes in equity dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.

e) Being a Government company, pursuant to the notification No.GSR.463(E) dated 05.06.2015, issued by the Ministry of Finance, Department of Company Affairs, Government of India, provisions of section 164(2) of the Companies Act,2013, are not applicable to the Company.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in ‘Annexure-A’; and

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us.

i.) The Company has disclosed the impact of pending litigations. However, they do not have any financial impact as the required provisions have been made in the relevant years, Refer Note No. 38.20

ii.) The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

iii.) There were no amounts which were required to be transferred to the Investor Education and Protection Fund.

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iv.) The Company had provided requisite disclosures in its Standalone Ind AS Financial Statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of accounts maintained by the Company- Refer Note No. 39 to the Standalone Ind AS Financial Statement.

3.) In terms of directions issued u/s 143(5), refer to our separate report in Annexure – ‘B’

For Vijay Sehgal & Co.Chartered Accountants

Firm’s Regn. No. 000374N

Sd/- CA. S.V. SehgalPlace: New Delhi PartnerDate: 3rd August 2017 Membership No. 080329

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Annexure-A to the Independent Auditors’ Report

Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”).

We were engaged to audit the internal financial controls over financial reporting of National Minorities Development and Finance Corporation (“the Company”) as of March 31, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.


Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over



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Financial Reporting (the ‘Guidance Note’) and the Standards on Auditing, issued by ICAI and prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles including the Indian Accounting Standards (Ind As) prescribed under section 133 of the Act. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with generally accepted accounting principles including the Indian Accounting Standards (Ind As) prescribed under section 133 of the Act, and that receipts and expenditures of the company are being made only in

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accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the standalone Ind As financial statements.

Inherent limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

opinion

According to the information and explanation given to us, the company is generally operating as per norms provided under GFR (General Financial Rules 2005) for expenses/tendering purposes etc. The Company works under the guidance of its Board and for day to day affairs, it has full time functional Director i.e. Managing Director. Company follows guidelines issued by the Department of Public Enterprises of ministry of industry, being applicable to all PSUs. The Company has framed its own rules which are approved by its board as service rules, leave rules, House Building Advance rules, General Purpose Advance rules, Festival Advance rules etc. Further the company has established delegation of administrative and financial powers at various levels. The Company has not established its internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2017.

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We have considered this as reported above in determining the nature, timing, and extent of audit tests applied in our audit of the standalone Ind AS financial statements of the Company, and this does not affect our opinion on the standalone Ind AS financial statements of the Company.

For VIJAY SehGAl &Co., Chartered Accountants

Firm’s Regn. No.: 000374N

Sd/-CA. S.V. SehGAl

Place: NEW DELHI PartnerDate: 3rd Aug 2017 Membership No. 080329

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Annexure – ‘B’

RepoRt u/S 143(5) the CoMpAnIeS ACt,2013

M/S nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIon FInAnCIAl YeAR enDeD 31st MARCh 2017

Directions Replies(1) Whether the company has clear title/

lease deeds for freehold and lease-hold respectively? If not please state, the area of freehold and leasehold land for which title/lease deeds not available?

The Company does not own any land - either Leasehold or Freehold.

The Title deed of Leasehold building situated at Core 1, first floor, Scope Minar, having an area of 1400 Sq. Mtrs, purchased on sub lease, is pending for transfer of title/sublease.

(2) Whether there are any cases of waiv-er /write off of debts/loan/interest etc. if yes, the reason there for and amount involved?

During the year, the company had written off penal interest in respect of Uttar Pradesh Minorities Development and Finance Corporation (UPMDFC) amounting Rs. 27.67 Crore under one-time settlement Scheme.

(3) Whether proper records are main-tained for inventories lying with third parties & assets received as gift/grant from the govt. or other authorities?

No inventory is lying with third party as on 31stMarch 2017 and no assets have been received as gift/grant from the government or other authority.

For VIJAY SehGAl &Co., Chartered Accountants

Firm’s Regn. No.: 000374N

Sd/-CA. S.V. SehGAl

Place: NEW DELHI PartnerDate: 3rd Aug 2017 Membership No. 080329



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nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIon(CIn no. u74899Dl1994npl061852)

notes forming part of Standalone Financial Statements for the year ended 31st March, 2017

note :- 1 Corporate Information National Minorities Development & Finance Corporation is not for profit company domiciled in India and was incorporated on 30th September 1994 under Section 8 of the Companies Act, 2013. The Company is functioning as Apex Corporation under the administrative control of Ministry of Minority Affairs, Govt of India. The mandate of the corporation is to promote economic and developmental activities for benefit of “Backward Section” amongst the notified minorities. Artisans and women find special focus under the scheme of NMDFC. Notified minorities originally comprised of Muslims, Christians, Sikhs, Buddhists and Parsis as per the National Minorities Commission Act 1992. Latest entrant is the Jain community amongst the group of notified minorities. The registered office of the company is located at 1st floor, Core-I, Scope Minar, Laxmi Nagar, Delhi-110092. Note:-2SignificantAccountingPolicies a) Statement of Compliance The financial statements as at and for the year ended March 31, 2017

have been prepared in accordance with Indian Accounting Standards (Ind-AS) notified under section 133 of the Companies Act 2013 as companies (Indian Accounting Standards) Rules, 2015, 2016 and Companies (Indian accounting standards) Amendment Rules 2017. For all periods, up to and including the year ended March 31, 2016, the company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013 (Indian GAAP). These financial statements for the year ended March 31, 2017 are company’s first IND AS financial statement.

b) Basis of Measurement: The financial statements have been prepared under the historical cost convention and on an accrual basis, except for the following Items that have been measured at fair value as required by relevant Ind-AS.

(i) Defined benefit Plan and other long term employee benefits (ii) Certain financial assets and liabilities measured at fair value.

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c) use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of financial statements and the reported amount of income and expenses. Examples of such estimates include estimated useful life of property, plant and equipment, intangible assets and future obligation under employee benefit plan. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a going concern basis. Future results could differ due to changes in these estimates and difference between the actual result and the estimates are recognized in the period in which the results are known /materialize.

d) All financial information presented in Indian rupees and all values are rounded to the nearest lakhs upto two decimals except where otherwise stated.

e) StatementofCashflow

Cash flows are reported using the indirect method, whereby Income / (Expenditure) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

For the purposes of statement of cash flow, cash and cash equivalents include cash in hand, cash at banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand are considered part of the Company’s cash management system.

f) Foreign Currency transactions

Items Included in the Financial Statements are measured using the currency of primary economic environment in which the Company operates (Functional Currency) The financial statements are presented in Indian Rupee (INR), which is functional as well as presentation currency of company.

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• Transactions in foreign currency are recorded at the rate of exchange prevailing at the time of the transactions are affected. Exchange differences arising on settlement of foreign currency transactions are recognized in the Statement of Income and Expenditure.

• Monetary items denominated in foreign currency are restated and converted into Indian rupees using the exchange rate prevailing at the date of the Balance Sheet and the resulting exchange difference is recognized in the Income and Expenditure Account.

g) Revenue recognition

on loan Disbursed After 01-04-2014 Interest income on loans given and short term deposits made is recognized

on a time proportion basis taking into account the amount outstanding and the rate applicable, using Effective Interest Rate method.

(i) Compound interest on delay in repayments: - At the normal rate of interest on outstanding dues for the delay period.

(ii) Liquidated damage charges on default in repayments:- At the rate of 5% p.a. less normal rate of interest on defaulted amount on quarterly basis.

(iii) For utilised part of loan: -Interest on loans is calculated at effective rate of interest on reducing balance method right from the time of utilization/disbursement of loans respectively

(iv) For unutilized part of loan: -On quarterly installment basis till it is utilised at effective rate of interest.

(v) Penal interest on delay in utilization of funds : - At the rate of 8% p.a. on unutilized part till it is refunded or utilised.

on term loan Disbursed Before 01-04-2014

(i) For the disbursements made before 01.04.1998:- On equated quarterly installment basis from the date of disbursement at

the prescribed rate of interest.

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(ii) For the disbursements made after 01.04.1998:-

• For utilized part of loan:- On equated quarterly installment basis from the date of utilization at prescribed rate of interest.

• For unutilized part of loan :- On quarterly installment

basis till it is utilised at prescribed rate of interest. (iii) Compound interest on delay in repayments:- At the normal rate of interest on outstanding dues for the delay period. (iv) liquidated damage charges on default in repayments:- At the rate of

5% p.a. less normal rate of interest on defaulted amount on quarterly basis. (v) penal interest on delay in utilization of funds :- At the rate of 8% p.a. on unutilized part till it is refunded or utilised.

on Micro Credit:

(i) For Micro Credit to nGos/SCAs - for funds disbursed before 31/12/2014:-On equated quarterly installment basis from the date of disbursement at the prescribed rate of interest.

(ii) For funds disbursed under Micro Finance after 01/01/2015:- On equated quarterly installment basis from the date of utilization at prescribed rate of interest.

(iii) For Interest Free loan to nGos:- No Interest is charged as the loan is interest free and adjusted as grant subject to satisfaction of conditions.

(iv) penal Interest on delay in utilisation of funds:- At the rate of 8% per annum on un-utilised part till it is refunded or utilised.

(v) Compound interest on delay in repayments:- At the normal rate of interest on outstanding dues for the delay period.

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other Income

Interest incomes on FDR’s and Bank deposits are recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable using Effective Interest Rate Method.

As per the policy, the utilization report is accounted for the previous month as against the month in which it is received and irrespective of the month to which it pertains. i.e. If a report has been received in the month of October it will be considered for the month of September even if it states that the utilization report is for the month of June.

This policy has since been revised in its 94th BoD meeting held on 13/03/2015 and as per the revised policy, whenever information about any quantum of funds utilised by the SCAs, reaches NMDFC, the actual utilisation of funds shall be considered to have taken place on 1st day of the month in which utilisation information is received in NMDFC.

h) Income taxes

In view of the exemption available to the Corporation under section 10 (26BB) of the Income Tax Act, 1961, the provision for income tax liability is not considered necessary. Consequently the provisions of the Indian Accounting Standard 12 (Ind AS-12) on Income tax, issued by the Institute of Chartered Accountant of India, about deferred taxes and income tax computation and disclosures standards issued by CBDT are not applicable to the Corporation. i) property, plant and equipment

(a) Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any

Cost of asset includes the following:

i. Cost directly attributable to the acquisition of the assets

ii. Present value of the estimated costs of dismantling & removing the items & restoring the site on which it is located if recognition criteria are met.

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(b) Cost of replacement, major inspection, repair of significant parts is capitalized if the recognition criteria are met.

(c) An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from continued use of assets. Any gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in the Income and Expenditure Account.

Depreciation

Depreciation on Property, plant and Equipment is provided on written down value method over the useful life of the assets as specified in Schedule II of the Companies Act, 2013, however 100% depreciation on library/briefcase items is provided.

Depreciation methods, useful life and residual values are reviewed at each reporting date, with the effect of change in estimate accounted for on a prospective basis

For transition to IND-AS, the company has elected to continue with the carrying value of all its property, plant & equipment recognised as on April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date of such property, plant & equipment.

j) Intangible assets

Intangible assets are recognized, when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at acquisition cost less accumulated amortization and impairment loss, if any. Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognized as income or expense in the Income & Expenditure Account.

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Intangible assets are amortised over their estimated useful life as determined by management which are provided below.

Computer Software:- 3 Years

The amortisation period and the amortisation method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortisation period is changed accordingly For transition to IND-AS, the company has elected to continue with the carrying value of all its intangibles assets recognised as on April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date. k) Impairment

(i) Impairment of Financial Assets

The company assesses at each date of balance sheet whether a financial asset is impaired. Ind AS-109 requires expected credit losses (ECL) to be measured through a loss allowance.

For all Financial Assets other than contract assets/ Trade receivables, expected credit losses are to be measured at an amount equal to 12 months expected credit losses or at an amount equal to the life time ECL’s if credit risk on the financial asset has incurred significantly since its initial recognition.

ECL’s impairment loss allowance (or reversal) recognised during the period as income/ expense in income & expenditure Account. (ii) Impairment of non-Financial Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired If any such indication exists, the Company estimates the recoverable amount of the asset If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of Income and Expenditure.

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Reversal of Impairment loss

If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

l)EmployeeBenefits

i) Provision for Leave Encashment and Gratuity is made on the basis of actuarial valuation and accounted for on accrual basis on the assumption that benefit is payable to the employees at the end of the accounting year. The expenses are recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains or losses are recognized in other comprehensive income.

ii) Contribution made by the Corporation towards employees’ provident fund under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 is charged to the Income & Expenditure Account.

iii) Leave Travel Concession to Staff is accounted for as and when it is claimed. No provision of expenditure is made in anticipation of future claims.

m) earnings per Share

In determining basic earnings per share, the company considers the Excess of Income over Expenditure attributable to equity shareholders. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. In determining diluted earnings per share, the Excess of Income over Expenditure attributable to equity shareholders and weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

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n) provisions, Contingent liabilities and Contingent Assets

a) Provisions are recognized in respect of liabilities which can be measured only by using a substantial degree of estimates when:

i) The Company has a present obligation as a result of a past event.

ii) Probable outflow of resources embodying economic benefits will be required to settle the obligation; and

iii) The amount of the obligation can be reliably estimated. Provisions are reviewed at each Balance Sheet date.

Discounting of provisions

Where the effect of the time value of money is material the amount of a provision shall be the present value of the expenditure expected to be required to settle the obligation.

o) Contingent liabilities and Contingent Assets

i. A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation; or

ii. A reliable estimate of the present obligation cannot be made; or

iii. A possible obligation, unless the probability of outflow of resource is remote.

- Contingent assets are disclosed where an inflow of economic benefits is probable.

p) Financial instruments:-

Initial recognition and measurement

Financial Instruments recognized at its fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial instruments.

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Subsequent Recognition

(i) Financial Asset at Amortized Cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets measured at amortised cost using effective interest rate method less impairment, if any. The EIR amortisation is included in finance income in the income & expenditure account.

(ii) Financial Assets at fair value through other comprehensive income (FVtoCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the Income & Expenditure account. On de-recognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to Income & Expenditure Account. Interest earned is recognised using the EIR method.

(iii)FinancialAssetsatFairvaluethroughProfit&Loss(FVTPL) FVTPL is a residual category for financial Assets. Any financial assets, which

does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the company may elect to designate financial asset, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. If doing so reduces or eliminates a measurement or recognition inconsistency.

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Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the Income & Expenditure account.

iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest rate method.

The company has not designated any financial liabilities at FVTPL

v) Investment in Associates:-

Investment in Associates is carried at cost in the separate financial statements. Any gain or losses on disposal of these investments are recognised in the Income & Expenditure Account.

De-recognition

Financial Asset

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized only when the contractual rights to the cash flows from the asset expires or it transfers the financial assets and substantially all risks and rewards of the ownership of the asset. Financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the Income & Expenditure Account.

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q) Standard issued but not yet effective for the Financial Year 2016-17

IND AS 115 Revenue from Contracts with Customers

MCA had notified Ind AS 115 on Revenue from Contracts with Customers in Feb 2015. The standard establishes a new five step model that will apply to revenue arising from Contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in Ind AS 115 provide a more structured approach to measuring and recognizing revenue. The new revenue standard is applicable to all entities and will supersede all current revenue recognition requirements under Ind AS. The effective date of Ind AS 115 is annual periods beginning on or after 1st January 2018, with early adoption permitted. The Company is required to adopt the standard by the Financial Year commencing 1st April 2018. The Company is currently evaluating the requirements of Ind AS 115 and has not yet determined the impact on the financial statements.

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nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIon(CIN No. U74899DL1994NPL061852)

Notes forming part of Standalone Financial Statements for the year Ended 31st March, 2017

note :- 3 property, plant & equipment (ppe) (Rs. in Lakhs)

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note no:- 3.1:- Furniture & Fixtures which was accounted at Rs. 70.33 Lakhs in 2011-12; Building at Rs. 129.42 Lakhs in 2011-12 and Rs. 24.00 Lakhs in 2012-13 on the basis of Abstract of Cost received from Central Public Works Department (CPWD). During the year 2015-16 there had been final settlement of Bills with CPWD, consequent to this settlement and on the basis of bills received from CPWD, Building costing Rs. 161.44 Lakhs and Furniture and fixture costing Rs. 49.68 Lakhs is now accounted for in the books. Depreciation of Rs. 12.95 Lakhs which has been charged till date of settlement has now being considered in Statement of Income and Expenditure.

note no:- 3.2:- During the F.Y 2015-16 PPE Costing Rs. 2.77 Lakhs relating to Chennai office was accounted for in the books. Office was closed during the F.Y. 2015-16 and Depreciation of Rs. 0.62 Lakhs was charged till the date of close. All the Assets were sold at Rs. 2.64 Lakhs and Rs. 0.49 Lakhs had been considered in Statement of Income and Expenditure as profit on sale of asset.

note no :-3.3:- The company had purchased 1400 sq. mt. area at Core 1, 1st Floor, SCOPE Minar on 15/02/2007. The SCOPE Minar has been constructed on the land purchased by SCOPE from the Delhi Development Authority (DDA) on perpetual lease.

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note :- 4 other Intangible Assets (Rs. in Lakhs)

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note :- 5.1 Investments (Rs. in Lakhs)

note :- 5.2 loans (Rs. in Lakhs)

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Notes forming part of Standalone Financial Statements for the year Ended 31st March, 2017(iii) Financial Risk Management

“The Company’s principal financial liabilities comprise other payables. The main purpose of these financial liabilities is to finance the company’s operations and to provide guarantees to support its operation. The Company’s principal financial assets include Loans to SCA’s, NGO and staff that derive directly from its equity. The loans to SCA’s are disbursed against State Govt. Guarantee.

The Company is required to expose market risk, credit risk and liquidity risk. The company’s financial risk activities are governed by appropriate policies and procedures and those financial risks are identified, measured and managed in accordance with the companies policies and risk objectives. The board of directors review and agree on policies for managing each of these risk, which are summarised below:-”

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk. Financial instruments affected by market risk includes loan and advances, deposits and other non derivative financial instruments.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company is not exposed to interest rate risk as interest rate is fixed by government .

c) Credit risk

Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s loans receivables from SCA’s, NGO & Staff The company is exposed to credit risk from its financial activities of loans given to SCA’s, NGO & Staff.

The company assesses and manages credit risk based on company’s internal policies. The company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward looking information. Especially the following indicators are incorporated.

- Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees.

- Significant changes in the expected performance and behaviors of the borrower (SCA’s), including changes in the payments status of the borrowers ( SCA’s) in the group and changes in the operating results of the borrower (SCA’s).

Financial Instruments and Cash Deposits Credit risk from balances with banks and financial institutions is managed in accordance with the company’s policy. Investment of surplus are made only with approval with counterparty on the basis of the financial quotes received from the counterparty.

d) liquidity Risk

Ultimate responsibility for liquidity risk management rest with the Board of Directors. The company manages maintaining adequate banking facilities by continuously monitoring forecast & actual cash flows and by matching the maturities of financial liabilities.

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In respect to loans/dues payable by the SCAs, which are adequately covered by the State Government Guarantee, no provision is made.

For SCAs (Where State Government Guarantee is not available)

(a) 100% provision on the amount due for payment but outstanding for the period of 3 years and above

(b) 50% provision on the amount due for payment but outstanding for the period of 2 years and above but less than 3 years.

(c) 25% provision on the amount due for payment but outstanding for the period of 1 year and above but less than 2 years.

(d) No provision on the amount due for payment but outstanding for the period less than 1 year.

(1) For Micro Credit(a) 100% provision on the amount due for payment but outstanding for the period of 1 year and above.

(b) 25% provision on the amount due for payment but outstanding for the period of 6 months and above but less than 1 year.

No provision on the amount due for payment but outstanding for the period less than 6 months.

(2) For Interest Free loan 100% provision on the amount of interest free loan outstanding for the period above 3 years and not

adjusted as grant.

In addition a general provision @ 0.25% on the Non-Current Assets (Except Fixed Assets – Tangible/Non-Tangible and Investment) is made in the accounts.

This amount of General Provision shall further be increased by an amount equal to 0.10% of the previous year’s General Provision on yearly basis.

note :- 27 prior period ItemsImpact on Equity (increase/(decrease) in equity)

(Rs. in Lakhs)

particulars As at 31st March 2016 As at 1st April 2015Creditor For Expenses 0.06 (4.33)

Funds from Ministry - 20.67

Other Advances & Employees advances (3.10) (0.43)

Long term loans and advances (248.55) (248.55)

Provision (124.68) (99.78)

Building (1.23) -

net Impact on equity (377.50) (332.42)



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Impact on Income & expenditure Account (increase/(decrease) in income)(Rs. in Lakhs)

particulars As at 31st March 2017 As at 31st March 2016Exceptional Items - (16.12)

Post Retirement Contribution 124.68 (24.91)

Training Expenses 248.55 -

Depreciation on Building 1.23 (1.23)

Other Expenses 3.04 (2.81)

377.50 (45.07)Attributable to Equity Holders 377.50 (45.07)

Impact on basic and diluted earnings per share (EPS) (increase/(decrease) in EPS)

particulars As at 31st March 2017 As at 31st March 2016earnings per share for continuing operationBasic, profit from continuing operations 2.57 (0.34) attributable to equity holders

Diluted, profit from continuing operations 2.49 (0.34)

attributable to equity holders

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Independent Auditors’ Report on Consolidated Ind AS Financial Statements

To the Member of

nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIon

Report on the Consolidated Ind AS Financial Statements

We have audited the accompanying Consolidated Ind AS Financial Statements of nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIon (herein referred to as “the Holding Company”) and its associate, National Waqf Development Corporation Limited (NAWADCO),comprising of the Consolidated Balance sheet as at 31st March, 2017, the Consolidated Income and Expenditure (including other comprehensive income), the Consolidated Cash Flow Statement and the consolidated statement of changes in equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the Consolidated Ind AS Financial Statements”).

Management’s responsibility for the Consolidated Ind AS Financial Statements

The Holding Company’s Board of Directors is responsible for the preparation of these Consolidated Ind AS Financial Statements in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as “the Act”) that give a true and fair view of the Consolidated Financial Position, Consolidated Financial Performance including other comprehensive income, Consolidated Cash Flows and Consolidated Statement of changes in equity of the Holding Company, and its associate in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.

The respective Board of Directors of the Holding Company and of its associate are responsible for maintenance of adequate accounting records in accordance with



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the provisions of the Act for safeguarding the assets of the Holding Company and of its associate and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated Ind AS Financial Statements by the Directors of the Holding Company, as aforesaid.

Auditors’ responsibility

Our responsibility is to express an opinion on the Consolidated Ind AS Financial Statements based on our audit. While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the consolidated Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Consolidated Ind AS Financial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Consolidated Ind AS Financial Statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the Consolidated Ind AS Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the HoldingCompany’s preparation of the Consolidated Ind AS Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Holding Company’s Board of Directors, as well as evaluating the overall presentation of the Consolidated Ind AS Financial Statements.

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We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditor in terms of their reports referred to in “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for ouraudit opinion on the Consolidated Ind AS Financial Statements.

opinion

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of report of other auditor of the associate company (National Waqf Development Corporation Limited) the aforesaid Consolidated Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Indian Accounting Standards, of the consolidated state of affairs of the Holding Company and its associate as at 31st March, 2017, and their consolidated surplus including other comprehensive income, their consolidated cash flows and their consolidated changes in equity for the year ended on that date.

emphasis of Matter

We draw attention to the following matters in Notes to Ind AS Consolidated Financial statements:

In Respect of holding Company:

a) Note No. 38.12, which states that all the expenditure amounting Rs.1,41,50,820 and advances amounting Rs.41,79,77,324 incurred by the Company for Maulana Azad National Academy for Skill (MANAS) has been booked as receivable from MANAS but the Terms and Condition between the Company and the MANAS are not being finalized. Also, the company has not charged any interest on advances given to MANAS till the date of this report.

b) Note No. 38.4, which states that the balances of loans to State Channelizing Agencies (SCAs)/NGOs and interest accrued and due from them as on 31st March 2017 are subject to confirmation and reconciliation.

c) Note No. 38.22, which states that the company has been utilizing the funds for implementing the respective schemes of Ministry and does not get any additional fund to meet administrative expenses in this regard. Therefore, the

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interest earned on the funds is treated as Income of the corporation and is utilised for meeting administrative costs.

In Respect of Associate Company

The matters stated under paragraph “Basis for qualified opinion” and “Emphasis of Matter” in Independent Auditor’s report dated 1st August 2017 issued by Associate Company Auditor, does not affect its profit for the year ended 31st March 2017.

Our opinion is not modified in respect of these matters.

other Matters

The Consolidated Ind AS Financial Statements includes the Holding Company’s share of net profit of Rs. 28.52 Lakhs/-for the year ended 31st March 2017, as considered in the Consolidated Ind AS Financial Statements, in respect of above referred associate (NationalWaqf Development Corporation Limited), whose Financial Statements / financial information have not been audited by us. This Financial Statements / financial informationhas been audited by other auditor whose report have been furnished to us by the Management and our opinion on the Consolidated Ind AS Financial Statements, in so far as it relates to the amounts and disclosures included in respect of associate, and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, insofar as it relates to the aforesaid associate, is based solely on the report of the other auditor.

Our opinion on the Consolidated Ind AS Financial Statements, and our “Report on Other Legal and Regulatory Requirements” below, is not modified in respect of the above matters with respect to our reliance on the work done and the report of the other auditor and the Ind AS Financial Statements / financial information certified by the Management.

Report on other legal and Regulatory Requirements

1. As required by section 143(3) of the Act, based on our audit and on the consideration of the report of the other auditor on respective financial statements and the other financial information of the associate company (National Waqf Development Corporation Limited), we report that:

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(a) We have sought andobtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Consolidated Ind AS Financial Statements.

(b) In our opinion proper books of account as required by law relating to preparation of the aforesaid Consolidated Ind AS Financial Statements have been kept so far as it appears from our examination of those books and the report of the other auditor.

(c) The Consolidated Balance Sheet, the Consolidated Income and Expenditure Account including other comprehensive income, the Consolidated Cash Flow Statement and consolidated statement of changes in equity dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the Consolidated Ind AS Financial Statements.

(d) In our opinion, the aforesaid Consolidated Ind AS Financial Statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.

(e) Being a government company, pursuant to notification No. GSR.463(E) dated 05.06.2015, issued by the Ministry of Finance, department of company Affairs, Government of India, provisions of Section 164(2) of the companies Act,2013 are not applicable to the HoldingCompany and on the basis of report of the statutory auditor of its associate none of the directors is disqualified as on 31st March,2017 from being appointed as a director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Holding company and its associate, which is a company incorporated in India and the operating effectiveness of such controls, refer to our separate report in ‘Annexure A’; and

(g) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

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i. The Holding Company has disclosed the impact of pending litigations. However, they do not have any financial impact as the required provisions have been made in the relevant years,refer note 38.20. The associate company does not have any pending litigations which would impact its financial position.

ii. The Holding Company and its associate did not have any long-term contracts, including derivative contracts, for which there were any material foreseeable losses and

iii. There were no amounts which were required to be transferred to the investor Education and Protection Fund by the Holding Company and its associate.

iv. The Holding Company and Associate Company, which is a company incorporated in India had provided requisite disclosures in their Ind AS Financial Statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on audit procedures performed, the representations provided to us by the management and based on the consideration of report of other auditor on the respectiveInd AS Financial Statements of the Associate Company referred above, we report that the disclosure are in accordance with the relevant books of accounts maintained by the Company. Refer Note No. 39 to the Consolidated Ind AS Financial Statements.

Sd/-For VIJAY SehGAl &Co.,

Chartered AccountantsFirm’s Regn. No.:000374N

Sd/-CA. S.V.SehGAl

Place : New Delhi PartnerDate : 3rd August 2017 Membership No. 080329

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Annexure-A to the Independent Auditors’ Report on the Consolidated Ind AS Financial Statement

Report on the Internal Financial Controls over Financial Reporting under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

We were engaged to audit the internal financial controls over financial reporting of National Minorities Development and Finance Corporation (herein referred to as “the Holding Company”), and its associate as of 31stMarch 2017 in conjunction with our audit of the Consolidated Ind AS Financial Statements of the Holding Company, and its associate,(the Holding Company and its associate are together referred to as “Indian Enterprise”) for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Respective Board of Directors of the Indian Enterprise, are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Indian Enterprise considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Indian Enterprise’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act, 2013.


Our responsibility is to express an opinion on the Indian Enterprise’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls



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over Financial Reporting (the ‘Guidance Note’) and the Standards on Auditing, issued by ICAI prescribed under Section 143(10) of the Companies Act,2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated Ind AS Financial Statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Indian Enterprise’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

The Indian Enterprise’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Ind AS Financial Statements for external purposes in accordance with generally accepted accounting principles including the Indian Accounting standards (Ind AS) prescribed under section 133 of the Act. The Indian Enterprise’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Indian Enterprise; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Consolidated Ind AS Financial Statements in accordance with generally accepted accounting principles including the Indian Accounting standards (Ind

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AS) prescribed under section 133 of the Act, and that receipts and expenditures of the Indian Enterprise are being made only in accordance with authorizations of management and directors of the Indian Enterprise; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Indian Enterprise’s assets that could have a material effect on the Consolidated Ind AS Financial Statements.

Inherent limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

opinion

According to the information and explanation given to us, the Holding company is generally operating as per norms provided under GFR (General Financial Rules 2005) for expenses/tendering purposes etc. The Holding Company works under the guidance of its Board and for day to day affairs, it has full time functional Director.i.e. Managing Director. Holding Company follows guidelines issued by the Department of Public Enterprises of ministry of industry, being applicable to all PSUs. The Holding Company has framed its own rules which are approved by its board as service rules, leave rules, House Building Advance rules, General Purpose Advance rules, Festival Advance rules etc. Further the Holding company has established delegation of administrative and financial powers at various levels.In respect of associate, the company is generally operating as per norms provided under GFR (General Financial Rules 2005) for expenses/tendering purposes etc. The approval and routing of transactions is under the overall control of the ED/CEO and Board of Directors of the Company. However, except the appointment of the Executive Director who is a regular employee on the deputation from Rajya Sabha secretariat, the Company has employed rest of the staff on contract basis.The Holding Company and its associate has not established its internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on audit of Internal

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Financial Control Over Financial Reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our Opinion whether the Holding company and its associate had adequate financial control over financial reporting and whether such financial controls were operating effectively as at March 31, 2017.

We have considered this as reported above in determining the nature, timing, and extent of audit tests applied in our audit of the consolidated Ind AS Financial Statements of the Holding Company, and this does not affect our opinion on the consolidatedInd AS Financial Statements of the Holding Company.

other Matters

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to oneassociate company, which is a company incorporated in India, is based on the corresponding report of the auditor of such company.

Sd/-For VIJAY SehGAl &Co.,

Chartered AccountantsFirm’s Regn. No.:000374N

Sd/-CA. S.V.SehGAl

Place : New Delhi PartnerDate : 3rd August 2017 Membership No. 080329

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nAtIonAl MInoRItIeS DeVelopMent AnD FInAnCe CoRpoRAtIon(CIn no. u74899Dl1994npl061852)

noteS on ConSolIDAteD FInAnCIAl StAteMentS FoR the YeAR enDeD 31St MARCh, 2017

Note:-1SignificantAccountingPoliciesofconsolidatedAccounts a) Statement of Compliance

The Consolidated Financial Statements (CFS) have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified under section 133 of the Companies Act 2013 as The Companies (Indian Accounting Standards) Rules, 2015, 2016 and The Companies (Indian Accounting Standards) Amendement Rules, 2017. Group had prepared CFS for all periods up to and including the year ended 31 March, 2016 in accordance with Indian GAAP, including Accounting Standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements for the year ended 31 March 2017 are prepared in accordance with Ind AS 101 ‘First Time Adoption Of Ind AS’.

The CFS have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:

• Certain financial assets and liabilities measured at fair value• Defined benefit plans

The CFS are reported in Indian rupees and all values are rounded to the nearest lakhs with two decimal points except where otherwise stated.

b) Basis of Consolidation

Associate is the entity over which NMDFC does not have control but have significant influence. Investments in the associate company have been accounted under the equity method of accounting. The investement is initially recognised at cost and the carrying amount is increased or reduced by the amount of share in Income & Expenditure of Investee after the date of acquisition. Investment in associate includes Goodwill identified at the time of acquisition.

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Name of the Associate : National Waqf Development Corporation (NAWADCO)

Ownership Interest : 45.58% (Previous year 49%)

Country of Incorporation : India

c) use of estimatesThe preparation of CFS is in conformity with Ind AS, which requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, disclosure of contingent assets and liabilities at the date of financial statements and the reported amount of income and expenses. Examples of such estimates include estimated useful life of property, plant and equipment, intangible assets and future obligation under employee benefit plan. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Future results could differ due to changes in these estimates. Difference between the actual result and the estimates are recognized in the period in which the results are known /materialize.

Note:-2OtherSignificantPoliciesThese are set out in the separate financial statements of National Minorities Development and Finance Corporation and its associate.

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Notes forming part of Consolidated Financial Statements for the year Ended 31st March, 2017(iii) Financial Risk Management

“The Company’s principal financial liabilities comprise other payables. The main purpose of these financial liabilities is to finance the company’s operations and to provide guarantees to support its operation. The Company’s principal financial assets include Loans to SCA’s, NGO and staff that derive directly from its equity. The loans to SCA’s are disbursed against State Govt. Guarantee.

The Company is required to expose market risk, credit risk and liquidity risk. The company’s financial risk activities are governed by appropriate policies and procedures and those financial risks are identified, measured and managed in accordance with the companies policies and risk objectives. The board of directors review and agree on policies for managing each of these risk, which are summarised below:-”

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk. Financial instruments affected by market risk includes loan and advances, deposits and other non derivative financial instruments.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company is not exposed to interest rate risk as interest rate is fixed by government .

c) Credit risk

Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s loans receivables from SCA’s, NGO & Staff The company is exposed to credit risk from its financial activities of loans given to SCA’s, NGO & Staff.

The company assesses and manages credit risk based on company’s internal policies. The company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward looking information. Especially the following indicators are incorporated.

- Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees.

- Significant changes in the expected performance and behaviors of the borrower (SCA’s), including changes in the payments status of the borrowers ( SCA’s) in the group and changes in the operating results of the borrower (SCA’s).

Financial Instruments and Cash Deposits Credit risk from balances with banks and financial institutions is managed in accordance with the company’s policy. Investment of surplus are made only with approval with counterparty on the basis of the financial quotes received from the counterparty.

d) liquidity Risk

Ultimate responsibility for liquidity risk management rest with the Board of Directors. The company manages maintaining adequate banking facilities by continuously monitoring forecast & actual cash flows and by matching the maturities of financial liabilities.

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In respect to loans/dues payable by the SCAs, which are adequately covered by the State Government Guarantee, no provision is made.

For SCAs (Where State Government Guarantee is not available)

(a) 100% provision on the amount due for payment but outstanding for the period of 3 years and above

(b) 50% provision on the amount due for payment but outstanding for the period of 2 years and above but less than 3 years.

(c) 25% provision on the amount due for payment but outstanding for the period of 1 year and above but less than 2 years.

(d) No provision on the amount due for payment but outstanding for the period less than 1 year.

(1) For Micro Credit(a) 100% provision on the amount due for payment but outstanding for the period of 1 year and above.

(b) 25% provision on the amount due for payment but outstanding for the period of 6 months and above but less than 1 year.

No provision on the amount due for payment but outstanding for the period less than 6 months.

(2) For Interest Free loan 100% provision on the amount of interest free loan outstanding for the period above 3 years and not

adjusted as grant.

In addition a general provision @ 0.25% on the Non-Current Assets (Except Fixed Assets – Tangible/Non-Tangible and Investment) is made in the accounts.

This amount of General Provision shall further be increased by an amount equal to 0.10% of the previous year’s General Provision on yearly basis.

note :- 27 prior period ItemsImpact on Equity (increase/(decrease) in equity)

(Rs. in Lakhs)

particulars As at 31st March 2016 As at 1st April 2015Creditor For Expenses 0.06 (4.33)

Funds from Ministry - 20.67

Other Advances & Employees advances (3.10) (0.43)

Long term loans and advances (248.55) (248.55)

Provision (124.68) (99.78)

Building (1.23) -

net Impact on equity (377.50) (332.42)


Notes forming part of Consolidated Financial Statements for the year Ended 31st March, 2017

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Impact on Income & expenditure Account (increase/(decrease) in income)(Rs. in Lakhs)

particulars As at 31st March 2017 As at 31st March 2016Exceptional Items - (16.12)

Post Retirement Contribution 124.68 (24.91)

Training Expenses 248.55 -

Depreciation on Building 1.23 (1.23)

Other Expenses 3.04 (2.81)

377.50 (45.07)Attributable to Equity Holders 377.50 (45.07)

Impact on basic and diluted earnings per share (EPS) (increase/(decrease) in EPS)

particulars As at 31st March 2017 As at 31st March 2016earnings per share for continuing operationBasic, profit from continuing operations 2.57 (0.34) attributable to equity holders

Diluted, profit from continuing operations 2.49 (0.34)

attributable to equity holders

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(a) As per Ind AS-19-”Employee Benefits” the actuarial gains and losses form part of Remeasurement of the net defined liability/asset which is recognised in other comprehensive income. The actuarial gain for the year ended 31 March 2016 is Rs. 5.90 lakhs. This change does not affect total equity.

(b) Rebate of Rs. 364.73 lakhs provided on interest on loans during the FY 2015-16 has been recognised in other expense instead of deduction from Revenue from operations (interest on loans), there is no impact on equity and Income & Expenditure account during FY 2015-16. However, there is increase in Revenue from operation by Rs 364.73 lakhs and increase in other expenses by Rs 364.73 lakhs.

(c) During FY 2015-16 company has recognised exceptional item of Rs 157.34 lakhs, therefore there is increase in exceptional item item by Rs 157.34 lakhs with corresponding decrease in Revenue from operation by Rs 115.59 lakhs and increase in employees benefits expenses by Rs 41.75 lakhs.

(d) As per Ind AS prior period items should be restated retrospectively.

i) Therefore, prior period items of Rs. 24.91 lakhs related to pension has been adjusted in employee benefit expenses with corresponding impact in non current provisions.”

ii) As per Ind AS prior period items should be restated retrospectively. Therefore, the company has increased the depreciation by Rs. 1.23 lakh with a corresponding decrease in Property, Plant and Equipment.

iii) As per Ind AS prior period items should be restated retrospectively. Therefore, the company has increased the other expenses by Rs. 2.82 Lakhs with corresponding decrease in current assets by Rs. 2.88 lakh and decrease in other current financial liability by Rs. 0.06 lakhs.

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Statementcontainingsalientfeaturesofthefinancialstatementofsubsidiaries/associate companies/joint ventures

(Pursuanttofirstprovisotosub-section(3)ofsection129readwithrule5of

Companies (Accounts) Rules, 2014 – AoC-1)

part “B” : Associates

name of Associate M/s national Waqf Development Corporation ltd.

(nAWADCo)1. Latest audited Balance Sheet Date 31st March, 20172. Shares of Associate held by the company

on the year endNo. of Shares (nos.) 90,00,000Amount of Investment in Associates (in Rs.) 9,00,00,000Extent of Holding % 45.58%3.Descriptionofhowthereissignificantinfluence

By Virtue of % age of Holding

4. Reason why the associate/joint venture is not consolidated

N/A

5. Networth attributable to Shareholding as per latest audited

Balance Sheet (in Rs.) 8,94,97,745.266. Profit / Loss for the year (in Rs.) 61,76,317.00 i. Considered in Consolidation (in Rs.) 28,15,165.28 ii. Not Considered in Consolidation(in Rs.) 33,61,151.72

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Documents

23rd AnnuAl RepoRt 2016 - 2017164.100.158.138/WriteReadData/LINKS/AR-2016-17-NMDFC Englishe… · 23rd AnnuAl RepoRt 2016 - 2017 national Minorities Development & Finance Corporation