CONTENTS · 2019-06-28 · Annual Report 2017-18 1 CONTENTS Chairman’s Message 05 Board of Directors 07 Directors’ Report 11 Annual Accounts • Comments of the Comptroller &

Annual Report 2017-18

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CONTENTSChairman’s Message 05

Board of Directors 07

Directors’ Report 11

Annual Accounts

• Comments of the Comptroller & Auditor General of India 68

• Independent Auditors’ Report 69

• Financial Statement 94

Notice of AGM 156


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Chairman-cum-Managing Director Shri Ravindra Nath (Upto 30.09.2018)Directors • Smt.AlkaNangiaArora,JointSecretary,M/oMSME

• ShriD.P.S.Negi,EconomicAdvisor,M/oMSME• ShriP.Udayakumar,Director(Plg.&Mkg.)• ShriA.K.Mittal,Director(Finance)• Prof.A.P.Pandey,IndependentDirector• Smt.GeetaGoti,IndependentDirector• ShriRameshBhat,IndependentDirector

Company Secretary Ms.NishthaGoyal

Statutory Auditors M/s.KPMC&Associates,Ghaziabad

Secretarial Auditors M/s.SanjayChugh,PracticingCompanySecretary317,VardhamanPlaza-IJBlock,CommercialComplexRajouriGardenNewDelhi–110027

Branch AuditorsM/s.EllahiGoel&Co.,Noida M/s.HMPS&Associates,MaduraiM/s.AKAR&Associates,NewDelhi M/s.T.K.Abraham&Co.,KochiM/s.PramodKAggarwal&Co.NewDelhi M/s.R.P.Boobna&Co.,KolkataM/s.DMRN&Associates,NewDelhi M/s.H.Naik&Co.,CuttackM/s.VipinOm&Associates,Dehradun M/s.Kadamwala&Co.,RourkelaM/s.AgrawalGoyal&Co.,Agra M/s.DRMS&Associates,JamshedpurM/s.RajeevVarshney&Associates,Aligarh M/s.S.K.Nayak&Co.,PatnaM/s.SatyaPrakashGarg&Co.,Ghaziabad M/s.GuptaMaskara&Associates,GuwahatiM/s.RajivMehrotra&Associates,Kanpur M/s.Shah&Modi,MumbaiM/s.AgrawalAjayKumar&Co.,Allahabad M/s.A.S.Kulkarni&Associates,NagpurM/s.B.K.Gupta&Co.,Lucknow M/s.VHJajoo&Co.,NasikM/s.JamunaShukla&Associates,Varanasi M/s.KVMDSandAssociates,PuneM/s.SPBabuta&Associates,Chandigarh M/s.MahorkarKhandelwalMantriNune&Co.,AurangabadM/s.AggarwalGarg&Co.,Ludhiana M/s.AshwaniAgrawal&Associates,SilvassaM/s.AshwaniGupta&AssociatesJalandhar M/s.Spark&Associates,IndoreM/s.Chatter&Chatter,Jaipur M/s.R.C.Behati&Co.,BhopalM/s.Ramaswamy&MuraliAssociates,Chennai M/s.JainSancheti&Associates,RaipurM/s.S.Kalyanasundaram&Co.,Puducherry M/s.LakhaniIsmailiTundiya&Co.,AhmedabadM/s.Prasad&Kumar,Bengaluru M/s.R.K.Doshi&Co.,RajkotM/s.PremaGopal&Co.,Hyderabad M/s.AsawaKanaiya&Co.,SuratM/s.P.LakshmanaRao&Co.,Vijayawada M/s.V.S.Reddy&Associates,Balanagar,HyderabadM/s.GadgilandUppin,Belgaum M/s.KNMA&Associates,TrichyM/s.Thakkar&Sanghani,Coimbatore

CIN No.: U74140DL1955GOI002481


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Main Bankers • StateBankofIndia• HSBCLtd.• BNPParibas• HDFCBank• ChinaTrustBankingCorporationLtd.• PunjabNationalBank• VijayaBank• IndusIndBankLtd.• ICICIBank• DBSBank

Registered Office NSICBhavanOkhlaIndustrialEstateNewDelhi-110020


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ShriP.UdayakumarDirector(Plg.&Mkg.)

Prof.A.P.PandeyIndependentDirector

Ms.GeetaGotiIndependentDirector

ShriRameshBhatIndependentDirector

ShriA.K.MittalDirector(Finance)

Ms.AlkaNangiaAroraJointSecretary,MinistryofMSME

ShriD.P.S.NegiEconomicAdvisor,MinistryofMSME

ShriRavindraNathChairman-cum-ManagingDirector

(Upto30/09/2018)

BOARD OF DIRECTORS


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Dear Shareholders,

On behalf of Board of Directors, it gives meimmense pleasure to welcome you to the 63rdAnnual General Meeting of “The National SmallIndustries Corporation Ltd. (NSIC)” an ISO9001:2015certifiedCompany.AttheoutsetIwouldlike to thank all stakeholders for the steadfastsupportandunwaveringconfidencereposedintheCompanythroughthickandthin.

Your Company’s Directors’ Report and AuditedAnnualAccountsalongwithAuditors’reportthereon,forthefinancialyearended31stMarch,2018,havebeencirculatedtoyouandIseekyourpermissiontotakethemasread.

Ishallconfinemyselftoverybrieflymentioningthesalient operating results of NSIC for the financialyear2017-18.NSICregistereditshighestbusinessturnover of Rs. 22,457 crores compared toRs. 20,622 crores during last year and the Profit(Before Tax and Provision for pay revision)amountedtoRs.175.33croreasagainstRs.165.07croreinlastyear.TheseresultsarecommendableinadifficultyearandprovethatyourCompanyhastheresiliencetorideoutdifficultsituationsandalsotobe firmly rooted through the storms - past andpresent.Difficult circumstancesbringout thebestinNSICians.

YourCompany’smanagementhasalwaysbelievedin value creation and maximizing shareholders’wealth. If we create value - profits, growth andreturnswillfollow.Incommemorationoftheprofitsearnedduringtheyear,yourBoardofDirectorshasrecommended thedividendofRs.28.37crore forthefinancialyear2017-18,subjecttotheapprovalof shareholders. I believe that, thanks to ourresilience,ourresultswillcontinuetogrowsteadilyandfairlyconsistently.

TheCompanyhasimplementedthepayrevisionforallitsemployees.ThiswillleadtoaboostofmoraleofNSICians.Thiswillhoweverleadtoanincreasein cost of operations. Therefore, it becomesextremely important that we work wholeheartedlyforincreasingtherevenuesandalsocutallwastefulandavoidableexpenditure.

With its long legacy, over the last 63 years of itsexistence, NSIC is continuously striving to assistMSMEs with its uniqueness by providing pool ofdiverse services in areas of Marketing, Finance& Technology and other support services. Therelevance of NSIC’s services and its servicedeliverytoMSMEsinthetougheconomicscenariowhichprevailedinthecountryduringtheyear,hasbeenacknowledgedbyvariousstakeholders.

WeinNSIChavealwaysrealizedthattheCorporationneedstomovewiththetimesandengagewiththeunlimitedchangesaroundit–unlimitedintermsofspirit, capabilities and opportunities and to createnewepicentersofgrowth.

I am truly proud to say that your Company isfirmly rooted in the soil of core values of EthicalConduct,FinancialPrudence&Propriety,Integrity,TeamWorkandCommitmentforsoundCorporateGovernancesystem.

India as a populous country on the thresholdof becoming an economic super power, facesthe acid test of whether it can take advantageof its demographic dividend by ensuring gainfulemployment to its youth. Employment generationhas been one of the most important objectivesof India, more-so in recent years, because jobcreation and opportunities for self-employmentand entrepreneurship-development are key to

Chairman’s Message


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meettherisingaspirationsof India’syouth.NSIC,through its IncubationCentre all over the countryis encouraging youth to become “Job Provider”insteadof“JobSeeker”.ManyStatesGovernmentshave approached NSIC to open up TechnologyCentre/IncubationCentrefortheiryouth.

Notonly in India,manycountrieshavealsobeenapproaching NSIC to share our experienceswith them in promoting entrepreneurship cultureamongst the youth in their countries leading toMSMEdevelopment.NSIConbehalfofGovernmentofIndiahasbeenestablishingIncubationCentreinvarious countries. So far, IncubationCentre havebeen set up in Burkina Faso, Egypt, Ethiopia,Rwanda,BurundiandGambia.

NSICalsosignedMOUwithSMECorp.Malaysiaand Small and Medium Business Corporation(SBC),SouthKorea for enhancing cooperation inthefieldofMSMEsbetweentwocountries.

Duringtheyear,severalCSRinitiativeshavebeenundertaken in various sectors like Education,Health,VocationalTraining,SafedrinkingwaterandEnvironmentsustainabilityetc.acrossthecountry.

NSIC has also been performing promotionalactivities as prescribed by the Ministry of MSMEfrom time to time which inter-alia includes,implementation of National Scheduled Caste andScheduledTribeHub (NSSH) to increasemarket

access and ensure higher participation of SC/STentrepreneursinpublicprocurementandtopromotecreationofnewenterprisesbySC/STentrepreneursacrossthenationandprovideleveragetoStandupIndiainitiative.

Acknowledgments

On behalf of the Board of Directors and everyNSICian,IwouldliketoplaceonrecordmysincerethankstoHon’bleMinisterofMicro,Small&MediumEnterprises,SecretarytotheGovernmentofIndia,Ministry of Micro, Small & Medium Enterprises,JointSecretary,DirectorsandotherofficialsoftheMinistryofMSMEfortheircontinuoussupportandreposingconfidenceinus.

On behalf of the Board of Directors I would liketo place on record our deep appreciation ofour partners & associates and bankers for theircontinuedsupportwhichhelpedNSICinrenderingadmirable services for the MSMEs across thecountry.

Iwould like to thankmycolleagueson theBoardandNSICiansfortheircommitmentandteamworktowardscontinuedgrowthofNSICand inmakingmystaywithNSICveryenjoyableandproductive.Thanks again for all your encouragement andsupport.

IwishNSICtheverybestforalltimestocome.

Place:NewDelhi. (Ravindra Nath)Date:20thSeptember,2018 Chairman-cum-ManagingDirector


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BOARD OF DIRECTORS

Ms. Alka Nangia Arora, Government Nominee Director is a post graduate from IIT – Roorkeeand joined IDAS - 1991 batch. On completion ofFoundationcourseanddepartmental training joinedas a Probationer at Ordinance Factory, Dumdum,Kossipore, Calcutta in January, 1993. Workedat Naval Pay Office, Mumbai as In-charge ofimplementation of 5th PayCommission. From 1991to2001workedasIn-chargeofAreaAccountsoffice,payandallowancesforEasternCommand,Kolkata.From2002-2005workedasFinancialAdviserNavalDockyard at Mumbai. In 2006-2009 as Director(Finance) with NTRO, an organization setup postKargil War for fast track procurement. From 2009-2013 was appointed as Additional CommissionerHandicraft, Ministry of Textiles. In 2011 was givenadditional charge of Managing Director, CottageEmporium. The company was in losses and laterturnedintoprofitmakingorganizationandwasgivenfull-fledgedMDcharge in2013.FromMay,2014 toJuly,2017workedasIntegratedFinancialAdvisertotheWesternAirCommandandArmyHospital(R&R).Frommid-July,2017hasassumedthechargeofJointSecretaryintheMinistryofMicro,SmallandMediumEnterprises.

Mr. Ravindra Nath, Chairman-cum-Managing Director is a Chartered Accountant and holdsBachelor’sDegreeinCommerce(Hons.).

Mr. NathhasmorethanthreedecadesexperienceinvariousareasofFinance/ Accountsandpolicyformulation and dealing with various issuespertaining to promotion, development andfinancing ofMicro, Small &MediumEnterprises(MSME). He has been involved in developingnew programs implemented through NSIC fordevelopmentofMSMEsinIndia. WhileworkingwithNSIC,hehasalsoexecutedvariousassignmentsinforeigncountriesforformulatingstrategiesandpolicies for the development of SMEs. He hasbeen conferred with “Outstanding LeadershipAward”forachievingBusinessExcellencethroughCreativity, Innovation & Entrepreneurship andduringhis tenureNSICreceived“FirstSwachhtaAward, 2017” under the most Cleanest Officecategory.


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Shri D.P.S. Negi, Government Nominee Director,IndianEconomicServiceOfficer1985Batch,hashadalonganddistinguishedcareer,havingheldvarioussignificantpositionsandroleswithintheGovernmentofIndia.HislongesttenurehasbeenwiththeMinistryof Housing & Urban Development, where he hasbeenthearchitectofflagshipprogrammeJuNURM&RajivAwasYojna{StreetVendorsAct&RealEstateRegulationAct (RERA)}andspearheadedmany forreaching housing and poverty alleviation schemes,benefittingseveralurbanpoorfamiliesinthecountry.Hehasalsomadehispresence in the internationalarena and has the honor of having been the soleIndian representative of the United Nations forum.TheInternationalCouncilforResearch&InnovationinBuilding andConstruction (CIB),where he couldexpress and voice the strengths and concerns ofthe Indian Building Industry to the internationalcommunityatlarge.FromNovember,2016hehasassumedthechargeofEconomicAdvisor(Finance),MinistryofMicro,Small&MediumEnterprises.

Mr. P. Udayakumar, Director (Plg. & Mkg.) holdsa degree in B.E. and did his Post-Graduation fromIndian Institute of Management, Bangalore. He hasaround28yearsofexperienceinPetroleum,Fertilizerand Small Medium Enterprise Sectors in variouscapacities.

Hehasbeenakeymemberofvarioustaskforceteamsand Strategic initiatives in different organisations.The National Small Industries Corporation hasstarted a separate business vertical for distributionof Petrochemical products under his guidance.He actively involved in development of Futuristicverticals in Defence Procurement, Logistics, IT andPublicProcurementfortheMinistryofMicro,Small&MediumEnterprises.Hehasbeenregularspeakerinpanel discussions in IIMRohtak,IICA,Manesar andothermanagement institutions.Hewas theMemberof the Technology Award Committee of GITA, aCII initiative. He contributed inputs to theOneManCommittee formed for revamping theMSMESectorunder the Chairmanship of Mr. Prabhat Kumar,Ex-CabinetSecretary.Healsoleddelegationstovariouscountries and addressed Round Table Conferenceon the Topic “Impact of SME Sector on the GlobalEconomy”inGuangzhou,ChinainOctober,2016.


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Professor Adya Prasad Pandey is an Indianeconomistandacademic.HeisM.A.(Economics),M.B.A.andPh.D.Heisappointedasnon-officialpart time Director in the Corporation w.e.f.25thJanuary,2017.HeservesasViceChancellorof Manipur University, Imphal. Prof. Pandeyhas been Head in Department of Economics inBanarasHinduUniversity,Varansi.Hehasmorethan37yearsofexperienceinacademics.HeisalsoNationalVicePresidentandLifeMemberofNationalSocialScienceAssociation.Prof.PandeyhasspecializationinIndustrialEconomics,LabourEconomics, Financial Management, CurrentEconomic Problems and Policies, Agricultural,Micro and Health Economics and MSME. Hehas published 3 Books more than 90 researchpapers in National and International Journals,havecompleted3MajorandOneMinorResearchProjects and have successfully guided 26 PhDResearch Scholars. His research works havebeen cited in various International and NationalResearch Journals and organizations includingWorldBankandUNDPreport.He isalsoexpertinvariousAcademicInstitutionsandGovernmentorganizations.

Mr. A.K. Mittal, Director (Finance) is a CharteredAccountant and holds a Bachelor’s degree inCommerce(Hons.).HeisalsofellowmemberofTheInstituteofCharteredAccountantsofIndia.Mr.Mittalhasmorethan38yearsofworkingexperiencein thePrivateSector,StateGovernment and in theCentralGovernmentPublicSectorUndertakings.HehasvastexperienceindealingwithBanks,National/ State level Cooperative Federations and variousState/CentralGovt.authoritiesforarrangingfinancialassistance to the Private Institutions, CooperativeSocieties and the Government owned Enterprises.HejoinedtheCorporationinMay,1996andheadedalmost all the Divisions of the Corporation viz.Finance, Business Development, Internal Audit,HumanResource, Exhibition,Technology, Vigilanceetc.He is also instrumental in assisting / formulatingstrategies and policies of the Corporation fordevelopment of MSMEs as well as growth of theCorporation.


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Dr. Ramesh BhatisanalumnusofHarvardandDelhiUniversity having 38 years of professionalandacademicexperience.Heiscurrentlyworkingas Provost and Dean of AACSB Accredited,School of Business Management, NMIMSUniversityMumbai.Hehasbeenon theBoardsofCorporationBank,BEMLLimited, ITI Limited,Ahmedabad Stock Exchange, Basic HealthServices and Advisor to the Human ResourceDevelopment Ministry, Government of India.His professional milestones include being aProfessor of Finance at the Indian Institute ofManagement, Ahmedabad (IIMA) from 1986 to2009andlater2014to2016,DeanoftheSchoolof Business Management, NMIMS University,MumbaiandAssistantDirectorat the InstituteofCharteredAccountantsofIndia,NewDelhi. Hehasbeenconsultantandadvisor toanumberoforganizationsinIndiaandabroad.Hehasworkedwithanumberoforganizationsinmanufacturing,infrastructure, services, healthcare, and logisticsindustries and his area of work has focused oncorporate finance, business valuation, financialandmanagementcontrolsystems,privateequityfinanceandhealthcarefinancing.

Ms. Geeta Gotiisawell-knownnameinHRConsulting,Corporate Governance & Labour Compliance.Shehasanoverall30yearsofexperienceworkingwith Government, Private Sector and NGOs. Herconsulting experience is across various companiesdealingwithAgriculture,Airlines,FMCG,Banking,ITservices&NGOsincountrieslikeUS,UAE,SriLankaapartfromIndia.

SheisM.PhilinPsychology,MSW(MastersinSocialWork)&LawGraduate.Currently,she ismentoringWomeninMfg.throughtheWomenergyAssociationofIncubatorsinMfg.(WEAIM).Ms.Geetahasworkedinthedevelopmentsectorslikehealthcare,womenwelfare,youthdevelopmentetc.ShefunctionedasNationalPresidentbyConfederationofWomenEntrepreneursofIndia(COWE)for2016-17,anNGOworkingonWomenEmpowerment.Presently, she is nominated as a 3rd partymemberontheInternalComplaintsCommittee(aCommitteeconstitutedunderPreventionofSexualHarassmentofwomenatworkplace)withInsurance,Manufacturing,InfrastructureandITcompanies.


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Dear Members,

YourDirectors’welcometheShareholdersandtakepleasure in presenting the 63rd Directors’ Reportof theCorporation alongwith the audited financialstatementoftheCorporationforthefinancialyearended31stMarch,2018.

1.0 Operating performance

NSIChascontinueditseffortsoffacilitatingMicro, Small & Medium Enterprises(MSMEs),duringthefinancialyear2017-18also, through integrated support servicesencompassing Marketing, Credit,Technology and other Services. Despitethechallengesbeing facedby theMSMEsector due to various factors, overallbusinessoftheCorporationhasreachedatanall-timehighlevelofRs.22,457croreascompared to Rs. 20,622 crore during thepreviousyear,recordingagrowthof9%.

During the year 2017-18, theCorporation

has earned Profit (Before Tax andProvision for Pay Revision) amounting toRs. 175.33 crore as against Rs. 165.07crorereportedinthepreviousyear.PBTfortheyear2017-18isRs.152.05croreafterabsorbing impact of Pay Revision (w.e.f.01.01.2017 for the employees under IDApatternand01.01.2016fortheemployeesunderCDApattern)amountingtoRs.23.28crore,implementedasperapprovaloftheGovernmentconveyedon03.05.2018.

Financial Highlights2017-18 2016-17

TotalBusiness(Rs.Cr.) 22,457 20,622ProfitBeforeTax(Rs.Cr.) 152.05 165.07ProfitAfterTax(Rs.Cr.) 99.41 106.40NetWorth(Rs.Cr.) 857.13 760.72TotalManpower(Nos.) 814 830Turnoverperemployee(Rs.Cr.) 27.55 24.85PATperemployee(Rs.Cr.) 0.12 0.13PATtoNetWorth(%) 11.60 13.99EarningPerShare(RS.) 18.65 19.96

NSIC’s growth story over the last decadeisamplydepictedinthefinancialsnapshot2007-2018inthetablebelow:

(Rs.inCrore)

Financial Snapshot 2007 - 2018

2007 2018

GrossTurnover 2,198 22,457

GrossIncome 47.69 490.39

ProfitBeforeTax 2.99 152.05*

NetWorth 81.42 857.13

EarningsPerShare(Rs.) 1.31 18.65

Dividend 0.57 28.37

As at 31st March *(afterabsorbingtheimpactofpayrevisionarrearsof

Rs.23.28crore) Note: NSIC does not get any budgetary

supportfromGovernmentforitsadministrativecostsfromApril2007.

2.0 Dividend

TheBoardofDirectorsof theCorporationhas recommended a dividend@ 30% ofthenetprofitafter tax i.e.Rs.28.37croreforthefinancialyear2017-18.

The dividend recommended is subject tothe approval of the shareholders at theAnnualGeneralMeeting.

3.0 Other major highlights under various activities of the Corporation for the financial year 2017-18

3.1 Raw Material Distribution

NSIC plays the role of a major catalystin growth of Micro, Small & MediumEnterprises (MSMEs), by fulfilling theirrequirementofsteadyandtimelydeliveryoftheirrawmaterialsinrequisitequantitiesatthemostaffordableandcompetitiveprices.ThisnotonlyenhancesthecompetenceofMSMEs but also contribute in increasingtheirbusinessvolumes.

DIRECTORS’ REPORT


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During the FY 2017-18, NSIC servicedthe raw material requirements of MSMEsthrough supply of Iron & Steel fromM/s.Steel Authority of India (SAIL) & M/s.Rashtriya Ispat Nigam Limited (RINL),Aluminum fromM/s.NationalAluminiumCompanyLimited(NALCO),Paraffin WaxfromM/s.ChennaiPetroleumCorporationLimited(CPCL),CoalfromM/s.CoalIndiaLtd.(CIL),Polymer Productsi.e.PP,HDPE&LLDPEfromM/s. IndianOilCorporationLimited(IOCL),CementfromM/s.CementCorporation of India (CCI) and M/s. ACCCement.

TheCorporationhasaddedanothermain

producer i.e. M/s. Hindustan PetroleumCorporationLtd.(HPCL)forhandlingtheirBitumen&Emulsionmaterialbyopeninga new distribution center at Guwahatiunder its“Agency Sales Scheme”.Withthis,theCorporationnowhas37numbersofRawMaterialdistributingcentresacrossthecountry.

The total raw material distribution was12,57,272 MTs as against 11,35,788MTsduringthepreviousfinancialyear.

3.2 Single Point Registration Scheme (SPRS)

NSIC registers Micro and Smallenterprises (MSEs) under SinglePoint Registration Scheme (SPRS) forparticipation in Government purchases.The units registered under Single PointRegistrationScheme ofNSIC are eligibleto get the following benefits under PublicProcurement Policy for Micro & SmallEnterprises(MSEs)Order,2012asnotifiedbytheGovernmentofIndia:-

a. IssueofTendersfreeofcost; b. Exemption from payment of Earnest

MoneyDeposit(EMD); c. Price matching option to the MSEs

quotingpricebandofL-1plus15%; d. Issueofcompetencycertificate.

The revenue earned from Single PointRegistration Scheme (SPRS) during theyearwasRs.13.62crore.

Duringtheyear2017-18,4,502freshunitswereaddedand6,286unitswererenewed.20,102 live units were registered underSPRSason31stMarch,2018.NSICalsoaddedmoreinspectionagenciestoincreasethereachofSPRSamongtheMSEs.

3.3 Consortia & Tender Marketing

Micro & Small Enterprises (MSEs) arefacing constraints in procuring the largeorders when they bid for tender on theirowncapacityvis-à-vislargeenterprises.Inorder to alleviate this hurdle, NSIC formsconsortiaofsmallunitsmanufacturing thesame products, thereby pooling in theircapacity which provides comfort level toMSEsassuppliersandalsotobuyers.TheCorporation applies for tenders on behalfof consortia ofMSEsand secures ordersforbulkquantities.Theseordersare thendistributedamongstMSEsinlinewiththeirproductioncapacity.

Under the Tender Marketing Scheme,NSICfacilitatestheMSE(s)ineverystageoftenderactivityrightfromtheparticipationintenderstillexecutionoftenders.

During the year 2017-18, 638 tenderswereexecutedvaluingtoRs.228.98crore.Sevennumbersof consortiawere formedduringtheyear.

3.4 Credit Support to MSMEs

NSIC provides credit support for rawmaterial procurement by making thepayment to suppliers in Raw MaterialAssistance scheme against BankGuarantee.NSICalso facilitatesfinancingby providing assistance toMSMEs underschemes such as Tender Marketing,ExportsandBillDiscounting.

Further, to meet the credit requirementsof MSME units, NSIC has entered intoMemorandum of Understanding withNationalized and Private Sector Banks.Through syndication with these banks,NSICarranges for credit support (fundornon-fundbasedlimits)frombankswithoutanycosttoMSMEs.


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Credit facilitation of Rs. 6,373 crore wasmadeduringtheyear2017-18.

4.0 NSIC provides technical support to MSMEs through a number of TICs & LBIs spread across the country

4.1 NSIC provides the following technologysupportservicestoMicroSmall&MediumEnterprises through its eight “NSICTechnical Services Centres” (NTSCs)located at Okhla (New Delhi), Hyderabad(Telangana),Howrah(WestBengal),Rajkot(Gujarat), Chennai (Tamil Nadu), Rajpura(Punjab)Aligarh(UttarPradesh)&Neemka(Haryana):

i) Demand Driven Industries orientedtrainingin:

Hi-Techareas, Conventionaltrades

ii) Entrepreneurship Orientation Pro-gramme(EOP)

iii) Common Facility Services (Testingfacilities) through NABL accreditedlaboratories

Skill development (Capacity Development) NSIC Technical Service Centres are

presently offering Skill developmenttrainingon various streams in the linesoftherequirementby industriesandMaterialtesting facilities through NABL accreditedlaboratory.

The details of training courses running inthecentresareasunder:

i) Design: CAD/CAM, Computer AidedEngineering(CAE),CNCProgrammingand operations, Computational FluidDynamics (CFD),MouldDesign, SolidWorks,3DPrinting,InteriorDesignandTrainingthroughSTAADProandRevit.

ii) Mechanical: ToolDesignandAdvanceManufacturing, Quality Control &Inspection,HVACDesign,Machinist&Weldingetc.

iii) Electrical & Electronics: IndustrialRobotics, Automation with PLC-

SCADA, Embedded System, SolarEnergy,ElectricalcircuitandSubstationmaintenance,MotorWinding&Repair,Mechatronicsetc.

iv) Information Technology: AdvanceSoftware Technology, ComputerHardware & Networking, ‘O’ Level,Computer Programming languages,Website Design & Development,Big Data & Hadoop, Python, SQLServer, Core Java, MCP-CCNA,Android Application, Advanced Java,Cloud Computing, C++ & OOPS,ComputerizedAccounting&TallyERPetc.

During Financial Year 2017-18 36,437trainees passed out through differenttechnicalcentres.

Someofthemajoractivitiesconductedby

NSICTechnicalServicesCentresare:

4.2 Placement Facilitation initiatives

NSICfacilitatesplacementtoitssuccessfultrainees by arranging Job Fairs in itscampus.DuringtheFinancialYear2017-18,25 Job Melas were organised for ourstudentsinwhichmorethan350companiesparticipated e.g. Havells, KelmensEngineering, Munjal Showa, Daikin, LNMAutoIndustries,AccurateEngineering,etc.are some to the major companies whichhave offered placements to our traineesduringouron-campusJobFairs.

4.3 Common Facility Services

Inadditiontotheskillandentrepreneurshipdevelopment, the center is offeringtesting facilities through NABLAccreditedlaboratoriestoindustries.

The details of testing facilities availablethroughthecentersaredetailedunder:

Center Testing facilities available

NewDelhi

FerrousandNonFerrousmaterials,Pipes,Steel wires, Building materials, Plastics,Wood&SoilandBitumentesting


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Rajkot Diesel Engine Testing, Pump Testing,Plasticstesting,MaterialTesting

Howrah Electrical Conductor, Wires and Cables,Insulators,MaterialTesting

Rajpura ElectricalAppliancesTesting

Chennai Calibration lab, Material Testing, PumpTesting,EnergyAudit

4.4 Association with Industry as “Knowledge Partners”

In addition to the ongoing activities, thecentres had taken initiative to makelinkages with industries with an aim tostrengthentheongoingtrainingprograms.Someofthelinkagesmadewithindustrieshavingagreedtosharetheirknowledgeonlatest technologies to the trainees are asunder:

Industry Area of Association

Purpose

ASESBrownBoveri(ABB)

Robotics TrainingonRoboticsandMechatronicsforprocessautomation

CarlZeissIndia

CoordinateMeasurement(CMM)

ToimparttrainingonQualityControl&Inspection.

DeltaAutomation

Automation TotrainonIndustrialAutomation

SchneiderElectricIndia

Electrician&SolarTraining

Toimparttrainingonelectrician&solarenergyforvillageelectrifications.

AdroitecInformationSystems

3DPrinting TotrainstudentsonAutoCAD&3DPrintingtodevelopPrototypeafterdesigning.

TallyAcademics

TallysoftwarewithGST

TotrainstudentsonTallywithGSTsoftware.

DigitechControl&Automation

PLC/SCADA/HMIDrives

Totrainstudentsonautomation

4.5 Modernization of NSIC-Technical Centres

UnderATI scheme of Ministry of MSME,modernizationofNSIC-TechnicalServiceCentresatOkhla&Rajkotwastakenupintheyear2017-18.

MachineslikeM1TRincludingDROsystem,JigBoringMachine,CNCTurningCentre,Vertical Machine Centre – 3 Axis and 5

ShriGirirajSingh,Hon`bleMinisterofMSMEandDr.ArunKumarPanda,Secretary(MSME)inaugurated“NTSC-AdvancedTrainingCentre”atNewDelhiinthepresenceofShriRavindraNath,Chairman-cum-ManagingDirector,NSIC.Alsopresentontheoccasion

wereShriP.Udayakumar,Director(P&M),NSICalongwithseniorofficers


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Axis, CNC Wire cut EDM, CMM, ProfileProjector, Injection Moulding Machine,CNC Turning Centre, Vertical MachineCentre,CNCWirecutEDM,CNCTrainerLathe, CAD/CAM Software etc. weresuccessfullycommissionedand training&commonfacilityserviceshavestarted.

4.6 Association with Academic Institutions

NSIC-TechnicalServiceCentersdevelopedlinkageswithAcademicInstitutessoastofacilitate the students engaged with suchAcademic Institutes for practical trainingon the technologies deployed in NSIC-TechnicalServiceCenters.

In this direction, MoU was signed withinstitutes like Amity University, ThaparUniversity,VeltechUniversityetc.

4.7 Entrepreneurship Development through Incubation Centers

For taking advantageof the demographicdividendinthecountryandtoaddresstheissues of ‘job creation’ / ‘unemployment’,NSIChasintroducedanewinitiativecalled‘Incubation Program for Small EnterpriseDevelopment’. Through this initiative,NSIChascreatedopportunitiestoengagewith the youth in the country, to inculcatein thementrepreneurialskillsby impartingstructuredtrainingatitsIncubationCenters.

NSIC engaged in impartingentrepreneurship development trainingthrough their IncubationCentersatOkhla(New Delhi), Howrah (WB), Guwahati(Assam),Mandi(HP),Kolar(Karnataka).

These Incubation Centres providefacilities of hands-on training on workingprojects and also covering the theoreticalaspectsofbusinesssuchasbusinessskilldevelopment, identification of appropriatetechnology, project/product development,handsonexperienceonworkingprojects,opportunityguidanceincludingcommercialaspectsofbusinessesunderoneroofetc.At the end of the Training Program, thetrainee(s) is ripe enough to set up theirownsmallenterprise.Itis,thus,acompleteprocess of transforming a person from

‘unemployment’ to ‘self-employment’-‘Berozgar to Swarozgar’.AlternativelythetraineecangetemployedinIndustry.

In order to promote the concept of“Incubation Program for Small EnterpriseDevelopment” by setting up IncubationCenters across pan India, Ministryof MSME, Govt. of India launched ascheme called “Scheme for Promotionof Innovation, Entrepreneurship & AgroIndustry (ASPIRE)”. Under this scheme,NSIC set up six Livelihood BusinessIncubatorsatDeoria(UP)Rajkot(Gujarat),Kashipur(Uttrakhand),Naini(UP),Nawada(Bihar)andChennai(Tamilnadu).

4.8 Setting up Vocational Training Center (VTC) / Incubation Center (IC) in overseas countries

This model of NSIC’s Incubation Centrehasbeenwellappreciatedand is ingreatdemand in various developing countries.NSIC has established such IncubationCentres in Tanzania, South Africa andSenegal.

MinistryofExternalAffairs,GovernmentofIndia under India-Africa Forum Summit-I(IAFS-I),has requestedNSIC toestablishsuch Incubation Centres in 10 Africancountries. NSIC has already establishedincubation centre in seven countriesnamelyEthiopia,Burundi,Rwanda,BurkinaFaso,Gambia,ZimbabweandEgypt.TheIncubationCentre inMozambique is likelytobeoperationalduring2018-19.

NSIC by engaging with Senegal MilitaryDepartment has set up a training-cum-IncubationCentreatDakar,Senegalforthebenefitoftheex-servicemenofSenegaleseMilitary.

5.0 MSME Global Mart

With increase in competition and meltingaway of international boundaries, thedemand for information is reaching newheights. Today more and more B2B(Business to Business) companies aresearching the internet for direct deal,


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instantsearchingofbuyers/supplier,betterpricing, increased services and location-specificpartners.

Realizing the needs of MSMEs, NSICfacilitates E-Marketing Service effectivelyto MSMEs across the country. NSIC isassisting MSMEs through MSME GlobalMart Web Portal www.msmemart.com.The portal provides an online platform toB2B (Business to Business) marketingactivities. The portal hosts vast databaseof registered members who are lookingfor business opportunities, in terms ofsustainable partnership, sub-contractingand participation in Public Procurements.Themajorfeaturesofwww.msmemart.comare: Interactive database of MSMEs,GlobalandNationalTenderNotices,Self-Web Development Tool, Centralized MailSystem,PopularProductSection,UnlimitedGlobal Trade Leads, Trust Seal of NSIC,Multiple Language Support, DiscussionBoard, Call Centre Support, PaymentGatewayformembershipsubscription.

During the period 2017-18, 11,210 unitswere registered under B2B portal ascomparedto6160unitsinthefinancialyear2016-17,registeringthegrowthof82%andrevenueofRs.3.26crorewasearned.

6.0 Implementation of Government Schemes

TheCorporationisimplementingfollowingschemes on behalf of theGovernment ofIndia:

6.1 Marketing Assistance Scheme

Ministry of Micro, Small & MediumEnterprises through NSIC, has beenproviding marketing support to Micro &SmallEnterprises(MSEs)underMarketingAssistanceScheme.

To showcase the competencies ofIndian MSMEs, NSIC facilitates MSMEs’participations in National & InternationalExhibitions, Fairs, Buyer Seller meets,Intensive campaigns and marketingpromotion events etc. on concessionalterms under the Marketing AssistanceSchemeoftheMinistryofMSME.Throughparticipation in these events,MSMEs arealso facilitated to capture new marketsmakingthemgloballycompetitive.

During the year 2017-18, theCorporationparticipated / organized / co-sponsored95 exhibitions in India and participated in14 international exhibitions,wherein1050units participated. Further, 51 Vendor

NSICorganisedaNationalSC-STHubConclaveatKochi,Kerala.TheprogrammewasinauguratedbyShriV.Sasi,Hon’bleDeputySpeakerofKeralaStateLegislativeAssemblyandpresidedoverbyShriPaulAntonyIAS,Hon’bleChiefSecretary,Govt.ofKerala.ShriP.Udayakumar,Director(Planning&Marketing),NSIC,Dr.VenuVIASPrincipalSecretary,SC,STDevelopment

Department,Govt.ofKeralaandvariousstakeholdersattendedtheconclave


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Development Programs were organizedto facilitate MSEs, wherein 2197 unitsparticipated.

Apartfromabove,244marketingcampaignswere conducted to create awareness ofvariousschemes /activities for facilitatingMSMEs.

6.2 National SC-ST Hub (NSSH)

The National SC-ST Hub Scheme,launchedintheyear2016-17, isaimedatprovidingprofessionalsupporttotheSC/STentrepreneurs for their participation in thepublicprocurement,inadoptingapplicablebusiness practices and leveraging thestand-up India initiative. The followingspecialsubsidiestoSC/STenterprisesareprovidedthroughtheCorporation:

•100% subsidy on processing andinspection fees to obtain / renewRegistration under the single PointRegistration Scheme (SPRS) of NSICforgovernmentpurchasesonanominalpaymentofRs.100/-.

•100% subsidy for visit / participation indomestic/InternationaltradefairsunderSpecial Marketing Assistance Scheme(SMAS);

•Concession up to 90% in the fee forobtainingPerformanceandCreditRatingfrom the empanelled Rating Agencies.There isprovision forsubsidyupto50%ontherenewableofratingalso.

SpecialVendorDevelopmentProgrammes(SVDPs) are organized with an objectiveto provide a common platform for SC/STMSEsandbuyer organizations i.e.CPSE/CentralGovt.Departments.Morethan60SpecialVendorsDevelopmentprogrammeswere organized in FY 2017-18 in whichmore than 1800 SC/ST entrepreneursparticipated.

The Corporation set up 12 offices in2017-18, namely National SC/ST HubOffices (NSSHOs) at Agra, Bengaluru,Bhubaneswar,Chennai,Guwahati,Ranchi,Patna,Kolkata, Ludhiana,Mumbai,Pune

and Varanasi. These offices of theCorporation are exclusively working forcarrying out interventions under NSSHScheme inter alia to handhold the SC/ST entrepreneurs in e-tendering andfinancefacilitationthroughbanks/financialinstitutions.

Trainingprogrammesforcapacitybuildingof SC/ST entrepreneurs and youth havebeenfundedundertheSchemeatpremierinstitutions(i.e.IITs,IIMsandXLRI),SectorSkillCouncils,RSETIs,TechnologyCentresundertheO/oDevelopmentCommissioner(MSME) and NTSCs of the Corporation.More than 1,400 SC/ST entrepreneurs/youthhavebeenbenefitedthroughvariousshort-termtrainingprogrammes.

In order to reach out to the CPSEs forsensitizing them of their critical role infulfilling the mandate under the PublicProcurement Policy, 2012, a CPSEconclave was organised in SCOPEComplex New Delhi. Recognizing theIndustry Associations and Incubators asimportantstakeholders,aConfluencewasalsoorganisedatPravasiBhartiyaKendra,NewDelhi.Basedonthedeliberationsheldwith CPSEs, Industry Associations andIncubators,aneedwasfeltforamalgamatedeffortstobuildbetterecosystemattheStatelevel for augmenting the competenciesof SC/ST owned MSEs. Accordingly, 24state conclaves under NSSH Schemewere envisaged by the Ministry in 2017-18. 22 such Conclaves were organisedacross the country for bringing togetherthe SC/ST entrepreneurs, aspiring SC/ST entrepreneurs, CPSEs, IndustryAssociations, Financial Institutions andStateGovernmentonacommonplatformand deliberate upon steps required forincreasing the procurement from SC/ST MSEs. More than 10,000 SC/STentrepreneurs/youth have attended suchConclaves.

6.3 Performance & Credit Rating Scheme for Micro & Small Enterprises

OnbehalfoftheMinistryofMSME,NSICisimplementing“Performance&CreditRating


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Scheme” for Micro and Small Enterprises(MSEs). The purpose of scheme is toprovideatrustedthirdpartyopiniononthecapabilities and creditworthiness of theMicro and Small Enterprises. It createsawareness amongst Micro and SmallEnterprises (MSEs) about the strengthsandweakness of their existing operationsso as to provide them an opportunity toenhancetheirorganizationalstrengthsandcredit worthiness. The rating under thescheme is carried out by the accreditedrating agencies.An independent rating bythe accredited rating agency has a goodacceptance from the Banks / FinancialInstitutions, Customers / Buyers andVendors.UnderthisScheme,ratingfeesissubsidizedtoMSMEunits.Duringtheyear,3,003unitswereratedunderthescheme.

7.0 International Cooperation

The main objective of InternationalCooperation is to create awarenessamongst the MSMEs of India about theopportunities for developing technical orbusinessallianceswithenterprisesofothercountries. Activities undertaken are asfollows:

7.1 International Delegations

A Number of International delegationsvisited NSIC during the year 2017-18 forexploring the possibilities of cooperationwithNSICforthedevelopmentofMSMEsintheirrespectivecountries.Someofthemarementionedbelow:

a) Delegation from South Korea: ASouth Korean delegation comprisingofficialsofSmall&MediumBusinessCorporation and Small & MediumBusinessAdministration visitedNSICon20thJuly,2017andhelddiscussionsregarding mutual cooperation withNSICinMSMEsector.

b) Delegation from Tanzania: A 20member delegation led by Hon’bleMinister of Trade & Industry,Government of Tanzania visitedNSIC’s Rapid Incubation Centre at

New Delhi on 28th September, 2017andexpresseddesireforcooperationwith NSIC for developing MSMEs inTanzania.

c) Delegation from Ghana: Adelegationof Government officials from Ghanavisited NSIC’s Rapid IncubationCentre at Okhla, New Delhi on10th November, 2017 and showedkeeninterestintheconceptinitiatedbyNSIC for generating self-employmentopportunitiesforunemployed.

d) Delegation from Mauritius: Hon’bleMr. Soomilduth Bholah, Minister ofBusiness,Enterprises&Cooperativesof the Republic of Mauritius visitedNSIC Technical Services Centre atOkhla, New Delhi on 1st December,2017. Hon’ble Minister expressedhis keen desire for cooperation withNSIC for development of MSMEs inMauritius.

e) Delegation from Papua New Guinea: An eight member delegation led byH.E. Mr. Richard Maru, Minister ofNationalPlanning&MonitoringoftheRepublicofPapuaNewGuineavisitedNSIC’sAdvancedTrainingCentreandRapidIncubationCentreatNewDelhion14thDecember,2017inthecontextof development of self-employmentopportunities in PNG in cooperationwithNSIC.

f) Delegation from Jordan:AdelegationledbyH.E.Mr.AymaSafadi,ForeignMinister of Hashemite, Kingdomof Jordan visited NSIC-TechnicalServicesCentreatOkhla,NewDelhion29thDecember,2017.

g) Delegation from Kenya:Mr.SamuelK Tunai, Hon’ble Governor of NarokCounty of Republic of Kenya visitedNSICon13thJune,2018.Heobservedthat NSIC’s Rapid Incubation Modelis apt for bridging the skill gap andproviding suitable alternatives ofemployment to youth in Republic ofKenya.


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7.2 Signing of Memorandum of Understanding

a) NSIC Signs MoU with SME Corp. Malaysia: A Memorandum of Under-standingwassignedbyMr.RavindraNath,CMD,NSICandDr.HafsahHashim,CEO,SMECorp.Malaysia forcooperation in thefieldofMSMEsbetweenthetwocountries.Sh.GirirajSingh,Hon’bleMinisterofState(Independent Charge), Ministry of MSME,Government of India and Dr. MustapaMohamed, Minister of International Trade& Industry, Government of Malaysia,witnessed the signing of MoU. Coincidingwith the occasion, NSIC also organizedinteractivemeetingsbetween15Malaysianenterpriseswith50IndianMSMEs.

b) NSIC signs MoU with SBC, South Korea: NSIC signed a Memorandum ofUnderstanding (MoU) with Small andMedium Business Corporation (SBC) ofSouth Korea for enhancing cooperationamongstMSMEsofIndiaandSouthKorea.TheMoUwassignedinthepresenceofSh.GirirajSingh,Hon’bleMinisterofState(I/c),

MinistryofMSME,GovernmentofIndiaandMr. Jong Haak Hong, Hon’ble Minister ofSMEsandStart-ups,GovernmentofSouthKoreaonJuly10,2018.

A Technology Exchange Conference wasalso organized during the occasionwhereonetoonemeetingsof18enterprisesfromSouth Korea were organized with theirIndiancounterpartenterprises.

c) India-Korea Technology Exchange Centre established at NSIC: India-KoreaTechnologyExchangeCentre(IKTEC)wasinaugurated by Sh. Giriraj Singh, Hon’bleMinister of State (I/c), Ministry of MSME,Government of India and Mr. Jong HaakHong,Hon’bleMinisterofSMEsandStart-ups, Government of South Korea on July10,2018atNSIC’sTechnicalCentreinNewDelhi.IKTECwillassistIndianMSMEsandSouthKoreanenterprises to formalliancestobuild theircomplementarycompetenciesandbecompetitiveinglobalmarket.

ShriRavindraNath,Chairman-cum-ManagingDirector,NSICsignedMoUwithDr.HafsahHashim,CEO,SMECorp(Malaysia)inthepresenceofShriGirirajSingh,Hon’bleMinisterofState(IndependentCharge),M/oMSME,ShriMustapaMohammed,MinisterofInternationalTrade&Industry,GovernmentofMalaysiaandDr.ArunKumarPanda,Secretary,M/oMSME,GovernmentofIndia


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8.0 NSIC’s services in North Eastern Region (NER)

8.1 NSIChasanetworkofofficesinNER.Thisincludes Branch Office at Guwahati andSub-Offices at Tinsukia (Assam), Imphal(Manipur), Dimapur (Nagaland), Itanagar(ArunachalPradesh),Shillong(Meghalaya)andAgartala(Tripura).

8.2 NSIC’s Incubation Programme is verysuccessfulintrainingbuddingentrepreneursin North Eastern States. Its IncubationCentre, Guwahati trained 164 traineesunder internal training,195 traineesundersponsoredtrainingand124traineesunderNSSH in various trades like FashionDesigning,FoodProcessing,Beautician&Candle Making. NSIC conducted trainingprogramme at Tripura in different tradesalso which is sponsored by differentGovernment departments under Govt. ofTripura. During the year 2017-18, 1216traineesweretrained.

8.3 TIC Guwahati has arranged Internationalbusiness visits for Nine WomenEntrepreneurs fromAssam to explore theIndustrialmodelinSouthAfricawithfocus

onHandicraft,HandloomandTextileSectorwhichwassponsoredbyCommissionerofIndustries&Commerce,Govt.ofAssam.

8.4 Other activities for the year 2017-18 inNorthEasternRegionareasfollows:-

Organizing Conclaves

• State SC/ST Conclave at Agartala, Tripura: On 29th December, 2017,a State Conclave was organized atPragyaBhavan,Agartalawith380SC/STparticipants.

• Regional SC/ST Conclave at Guwahati, Assam: On 12th January,2018, the State Conclave wasorganizedatGuwahati,Assamwith451participants.TheparticipantsbelongedtoallthedistrictsinthestatesofAssam& Meghalaya. The Conclave wasgracedbyShri.RaviCapoor, IAS, theAdditionalChiefSecretary,Departmentof Industries andCommerce,Govt. ofAssam.

• Special Awareness Program on SC/ST Hub Scheme: Shri. P.B Acharya,

NSICsignedaMoUwithSmallBusinessCorporation(SBC)ofSouthKoreatofacilitate,assistandprovidenecessarysupporttoMSMEsofboththecountries.TheMoUwassignedbyShriRavindraNath,Chairman-cum-Mg.Director,NSICandMr.LeeSangJik,ChairmanofSmallBusinessCorporationinthepresenceofShriGirirajSingh,Hon’bleMinisterofState(IndependentCharge),

M/oMSMEandMr.HongJongHaak,theHon’bleMinisterofSMEsandStart-ups,RepublicofKorea.


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Honorable Governor of NagalandgracedtheSpecialAwarenessProgramon the National SC/ST Hub scheme,which was organized by NSIC-GuwahatiinassociationwithMSME-DI,Dimapurwherein110peoplebelongingtoSC/STcommunitiesparticipated.

Exhibitions

• Inauguration of NSIC Pavilion: Shri.P.B Acharya, Hon’ble Governor ofNagalandinauguratedNSICPavilionintheNagalandInternationalTradeExpo2017 on 25th November, 2017. Therewere120participantsintheevent.

• 19th International Shillong Trade Fair 2018: The 19th International ShillongTradeFair2018(from9th-25thMarch,2018)wasinauguratedbytheChairmanof the Dorbarshnong (Headman) Mr.Pyllun and members of LaitumkhrahSport CulturalClub,Shillong. 43SC/STunitsfromAssamparticipatedunderSMASschemeintheFair.

• The 25th International Guwahati TradeFair 2018 ( from 1st - 18th February2018) was organized by Industriesand Trade FairAssociation ofAssam.The event was inaugurated by theBangladesh High Commissioner Shri.Syed Muazzem Ali. There were 120participantsincludingeightfromabroad.

• NSIC,underitsSMAShasparticipatedin the Sangai Festival which wasorganizedbythedepartmentofTourismand Commerce & Industries, Govt.of Manipur from the 21st -30th Nov.2017. The event was graced by theHon’ble President of India. NSIC hasfacilitated40SC/STunitsofManipurforparticipatingintheevent.

• NSIC,GuwahatihasparticipatedintheIndustrial&BusinessTradeFairUDYAM2017 (15-19 June, 2017) at ManiramDewanTradeCentre,Guwahati,whichwas organized by “Laghu UdyogBharati” with Dept. of Industries &Commerce,Govt.ofAssam,where150

unitsofNorthEastregionparticipatedinthisevent.

9.0 Management Discussion & Analysis

In terms of DPE guidelines, a separatereport on Management Discussion andAnalysisisattachedtothisreport.

10.0 Capital Structure & Borrowings

ThePaid-up-Capital of theCorporation isRs.532.99croreason31stMarch,2018.

The outstanding Long Term Loans(excludingcurrentmaturitiesofLongTermDebt) fromfinancial institutionsason31stMarch,2018isRs.54.10crore.

The short term borrowings of theCorporationason31stMarch,2018isRs.2051.14crore.

11.0 Issue of Commercial Paper

NSICforthelastthreeyearshasbeenraisingresources through issue of CommercialPaper, as short-term debt instrumentandmeeting its short term liabilities. TheCommercial Paper issued by NSIC wererated as CRISIL A1+ (pronounced asCRISILAOnePlus)ratingandSMERAA1+(pronouncedasSMERAOnePlus) ratingby CRISIL and SMERA rating agenciesrespectively. Debt Instruments with theseratings are considered to have “VeryStrongDegreeofSafety”regardingtimelypaymentoffinancialobligations.Duringtheyear 2017-18, theCorporation has raisedRs.1,000crorethroughCommercialPaper.

12.0 Investments As on 31st March, 2018, the Corporation

had 4,70,230 equity shares of Rs. 2/-each inM/s.Singer IndiaLtd.DividendofRs.0.75perequitysharewasreceivedfromM/s.SingerIndiaLtdfortheyear2017-18.

13.0 Fixed Deposit

The Corporation has not accepted anyfixed deposits and as such no amount ofprincipalorinterestwasoutstandingason31stMarch,2018.


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14.0 Human Resource Management

14.1 ThetotalmanpoweroftheCorporationason 31st March, 2018 was 814 as against830 in thepreviousyear.During theyear,cordial relations were maintained withvarious NSIC Employees Unions of theCorporation.

The break-up of the manpower was asfollows:

S.No.

Description As on31.03.2018

Ason31.03.2017

1. Managerial 519 485

2. Supervisory 132 158

3. Non-Supervisory

163 187

Total 814 830

NSIC extends a wide range of welfareactivities for itsemployees.These includehousebuildingadvance,vehicleadvance,computer advance, festival advance tounionizedemployees,medicalfacilitiesforserving and retired employees, employeeprovident fund, benevolent fund scheme,NSIC family Pension scheme in case ofdeathinharnessoftheservingemployees,free training to theeligibledependentsonthedeceasedemployeesinNSICtechnicalservicecenterasperthechoiceexercised,gift on completing 25 years of servicein the Corporation, Gift on retirementon attaining the age of superannuation,scholarship to the meritorious wards ofservingemployeesetc.Besides,theNSICEmployees Superannuation PensionSchemeforIDAemployeesisalsoinplace.

14.2 StaffTraining

NSICconductedtrainingforitsemployeesatHeadOfficeandfieldofficesacrossthecountry, in alignment with the changingbusiness needs, behavioral and technicalskillsoftheemployees.

NSIC conducted 25 in-house trainingprograms forNSICianson topicssuchasTraining of Trainers, Goods and ServiceTax, Health Management Program,

ISO 9001:2015 Standard and EnterpriseRiskManagement,AdvancedManagementProgram,InternalAuditorTrainingCourse,Disciplinary Proceedings & PreventiveVigilance, General Management Programetc. These focused programs provideimmense learnings with respect tobehavioralandtechnicalskillstoemployeesof all levels of NSIC in addition to keepthemupdatedonfunctionalschemes.

During the year 426 employees including360fromGroupAweretrained.

14.3 Policy for Prevention of Sexual Harassment

The Company has complied with theprovisions relating to the constitution ofInternal Complaints Committee underthe Sexual Harassment of Women atWorkplace (Prevention, Prohibition andRedressal)Act,2013toredresscomplaintsreceived regarding sexual harassment.All employees (permanent, contractual,temporary,trainees)arecoveredunderthispolicy.

During the year 2017-18, one complaintwasreceivedwhichhasbeendisposedoffaswithdrawn.

14.4 Particulars of Employees

NoneoftheemployeesoftheCorporationwere in receiptof remuneration inexcessof limits prescribed under Rule 5(2)of the Companies (Appointment andRemuneration of Managerial Personnel)Rules,2014.

14.5 Representation of SCs, STs, OBCs, Persons with Disability and Minorities

The directives of the Government issuedfrom time to time with regard to thereserved categories such as ScheduledCaste, Scheduled Tribe, Other BackwardClasses,andPersonswithDisability(PwD)arebeingfollowedbytheCorporation.The post based Reservation Rosters fordirectrecruitmentaswellaspromotionarebeingmaintainedwhicharedulyinspectedby the Liaison Officer for SC/ST/OBC oftheCorporationanddisplayedontheNSICIntranet.SC/STemployeesinGroupC&D


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posts are given one year relaxation intermsofeligibilityperiodinthetimesscalepromotion. Also, candidates belongingto SC/ST/PWD are given relaxation inthe marks in the selection against directrequirement.

The number of employees belonging toSC, ST, OBC, PwD & Minorities in theCorporationason31stMarch,2018areasunder:

ScheduleCastes 140

ScheduleTribes 20

OtherBackwardClasses 131

PersonswithDisability 26

Minorities 69

Total 386

15.0 National Entrepreneurship Day

NSIC Incubation Centres & LivelihoodBusiness Incubation Centres (LBIs)across the country celebrated “NationalEntrepreneurship Day” on 9th November,2017.Thethemeoftheeventwas‘CatalyzingaCulturalShiftinYouthEntrepreneurship’.

The event was attended and addressedby the representatives of organisationsassociatedinentrepreneurshipdevelopmentatregionallevelviz.DICs,Banks,IndustryAssociationsetc.

16.0 NSIC Celebrates Constitution Day

NSICcelebrated“ConstitutionDay”on26thNovember,2017alsoknownasSamvidhanDivas. On this day in 1949, ConstituentAssemblyofIndiaadoptedtheConstitutionofIndiawhichlatercameintoeffecton26thJanuary, 1950. Previously this day wascelebrated as “Law Day”. Shri GaurangDixit,ChiefGeneralManager(F&A),NSICtookthepledge.byrecitingthePreambletotheConstitution.

17.0 International Women’s Day, 2018

Ontheoccasionof“InternationalWomen’sDay 2018”, an interaction meet wasorganized for the Women EmployeeswithShriP.Udayakumar,Director(P&M)andShriA.K.Mittal,Director(Finance)on8th March, 2018. During the interaction itwas emphasized that womenmust sparesubstantial time for self-care, healthcareand last but not the least for making the

NSICcelebrated“ConstitutionDay”alsoknownasSamvidhanDivas.ShriGaurangDixit,ChiefGeneralManager(F&A),NSICtookthepledgebyrecitingthePreambletotheConstitution.


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mostofthepreciouslifebygivingtheirbestforthegrowthofNSICandwomenshouldenjoytheirlivestothefullest.

18.0 Vigilance Activities

Vigilance is an integral part of themanagement function and assist inmaintaining integrity, purity and efficiencyoftheadministration.Vigilancedepartmentworks in cooperation with other divisions/ units of the Corporation at all levels.The vigilance department also works incoordination with the Central VigilanceCommission (CVC), the administrativeministryandtheCBI.

Preventivevigilanceinspectionsarecarriedoutbyvigilancedivisioninthevariousoffices/centersoftheCorporationforcurbinganywrongdoing/corruption.Thedepartmentaldisciplinary proceedings were conductedagainst the erring officials involved in thecases.

During the year 2017-18, “VigilanceAwarenessWeek”wasobservedfrom30thOctober,2017to4thNovember,2017asacampaignagainstcorruptionandtocreateits awareness amongst the employees,

clients and other stakeholders of theCorporation.

The theme of VigilanceAwarenessWeekwas “My Vision – Corruption Free India”. A pledge to bring integrity anderadicate corruption was administered toall the employees of the Corporation inall itsofficesatvariousplacesacross thecountry. Online IntegrityPledgehasalsobeenundertakenbytheemployeesof theCorporation.

The Immovable Property return of allthe officers of “A” & “B” category of theCorporationwereobtainedandactiontakenasfeltnecessarybasedonthescrutiny.

19.0 Corporate Social Responsibility Initiatives

A separate report on Corporate SocialResponsibilityinitiativesoftheCorporationformspartoftheAnnualReportisannexed.

20.0 Awards & Recognitions:

• NSIC Conferred with 1st Swachhta Awards, 2017

Shri Giriraj Singh, Hon’ble Minister ofMSME conferred NSIC Head Office with

NSICcelebratedtheInternationalWomen’sDaywithitswomenNSICians.SpeakingontheoccasionShriP.Udayakumar,Director(P&M)andShriA.K.Mittal,Director(Finance)appreciatedtheireffortsandsaidthatwomenarethe

backboneofourHomesaswellasNSIC.


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1stSwachhtaAwards,2017underthemostCleanestOfficecategory.

• NSIC Conferred with “ET Now - CSR Leadership Award”

NSIC is conferred with “ET Now - CSRLeadership Award” at the Green FutureLeadership Awards held at Mumbai on18th Feb., 2018, acknowledging its CSRinitiatives in various activities like HealthCare andMedical assistance to divyangsand otherweaker sections of the society,Education, Safe Drinking Water, WomenEmpowermentetc.

• NSIC Conferred with “Outstanding Leadership Award”

Shri Ravindra Nath, Chairman-cum-Managing Director-NSIC was conferredwith “Outstanding Leadership Award” forachieving Business Excellence throughCreativity,Innovation&Entrepreneurshipatthe19thEditionoftheNationalManagementSummit on 24th Feb., 2018 held at NewDelhi.

21.0 Auditors

21.1 Statutory Auditors

TheComptroller&AuditorGeneralofIndiahasappointedM/s.KPMC&Associates,CharteredAccountants,GhaziabadastheStatutory Auditors for the financial year2017-18.TheStatutoryAuditorshavegiventheir report on the financial statementsof the Corporation for the financial year2017-18.

The Directors’ Replies to the StatutoryAuditors’Reportareannexed.

21.2 Secretarial Auditors

M/s. Sanjay Chugh, Practicing CompanySecretarieswere appointed to conduct theSecretarialAudit of theCorporation for thefinancial year 2017-18 in terms of section204oftheCompaniesAct,2013readwiththeCompanies(AppointmentandRemunerationofManagerial Personnel) Rules, 2014.TheSecretarialAuditReportforthefinancialyear2017-18formspartoftheDirectors’ReportandannexedtotheDirectors’Report.

Ontheoccasionof“VigilanceAwarenessWeek”oathbeingadministeredbyShriRajanTrehan,ChiefVigilanceOfficeratCorporateOffice,NewDelhi.


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21.3 C&AG Audit

Comments of the Comptroller & AuditorGeneralofIndiaundersection143(6)(b)oftheCompaniesAct,2013on thefinancialstatement are annexed to the AnnualReport.

22.0 Extract of Annual Return

In accordance with Section 134(3) (a) oftheCompaniesAct,2013,anextractoftheAnnualReturn in theprescribed format isannexed.

23.0 Internal Financial Controls

The Board has adopted the policies andprocedures for ensuring the orderly anefficient conductof itsbusiness, includingadherence to the Company’s policies,safeguardingofitsassets,theaccuracyandcompleteness of the accounting recordsand the timely preparation and reliablefinancial disclosures. For this internalaudit of all the field offices is carried out.In Raw material assistance against bankguarantee, several checks and balanceswere introduced to further strengthen thesystem including issuance of additionalguidelinesforconfirmationunderStructured

Financial Messaging System (SFMS)modeandremittanceofproceeds incaseofinvocationtoanominatedbankaccountat head office for effective monitoring ofutilization of funds and introduction ofnew improvised software for accountingofcreditsupportgivenunderRMAagainstBankGuarantee.

24.0 Citizens’ Charter

NSICiscommittedtoprovideefficientandpromptserviceon thebasisofobjectivity,transparencyandcourtesy indealingwithour citizens for thepromotionandgrowthof MSMEs. To inculcate these values intheemployees,NSIChascomeoutwithaCitizens’Charter.

25.0 Signing of Memorandum of Under-standing with the Government

NSIC signed a MoU with the Ministry ofMicro, Small andMedium Enterprises fortheyear2018-19.

The Corporation’s rating based on theresultsfortheyear2016-17is“VeryGood”.

ShriGirirajSingh,Hon’bleMinisterofState(I/C)forMinistryofMicro,SmallandMediumEnterprises,GovernmentofIndiaconferredNSIC,HeadOffice,Okhla,NewDelhiwithawardformostCleanestOfficeduring“SwachhataAwards,2017”

organisedbyMinistryofMicro,SmallandMediumEnterprises.AlsopresentonthisoccasionwereDr.ArunKumarPanda,Secretary,M/oMSME,ShriAkshayRaut,DG,SwachhBharatAbhiyanandShriRavindraNath,Chairman-cum-ManagingDirector,NSIC


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26.0 Rajbhasha

Witha view toensureprogressiveuseofHindi in the Corporation, implementationof theprovisionsofOfficialLanguageAct,1963 and Rules framed thereunder andthe compliance of the directives of theOfficialLanguageDepartmentandMinistryofMSMEwere continued to be observedduring 2017-18. In addition, followingspecial activities were carried out duringtheyear toensure theprogressiveuseofHindi.

• Hindi Pakhwada (Fortnight) wascelebratedduring1st -15thSept.2017and six Hindi Competitions wereorganizedintheCorporation.Thefocusof thesecompetitionswas tomotivatetheemployeestoincreaseuseofHindiintheirday-to-dayofficialwork.

• “HindiDiwas”wascelebratedon14thSeptember, 2017 in the Corporationunder the Chairmanship of Director(P&M)inwhichHeadsofDepartmentsat Head Office & NCR officesparticipated.Onthisday,HindiDiwas

messageofHon’bleMinisterofState(Independent charge) forMSME andCMD, NSIC was read out.A specialtraining programme of google inputtool i.e. speech to text in Hindi andregionallanguageswasconductedforseniorofficersoftheCorporation.

• AnAnnual InspectionProgramme forOfficialLanguagewaspreparedforthevarious departments at Head OfficeandfieldofficesoftheCorporationandthesamewasimplemented.

• Hindi workshops were organizedregularly in which the training wasimpartedtotheofficer/employeesforincreasetheuseofHindiintheirday-to-day official work. Besides, OfficialLanguage awareness programmes /Hindiworkshopswerealsoconductedin subordinate offices during theirOfficialLanguageinspections.

• Outofthetotalamountearmarkedforpurchase of books more than 50%amountwas incurredonpurchaseofHindibooks.

AMemorandumofUnderstanding(MoU)fortheyear2018-19withMinistryofMicro,small&MediumEnterprises(SME)wassignedbyDr.A.K.Panda,Secretary,MinistryofMSME,GovernmentofIndiawithShriRavindraNath,Chairman-cum-

ManagingDirector,NSICinthepresenceofMs.AlkaNangiaArora,JointSecretary,MSME,ShriP.Udayakumar,Director(P&M),NSICandShriA.K.Mittal,Director(Finance),NSIC.


28

Duringthereportyear,aHindicompetitionwas organized for the member PSU’s ofTownOfficialLanguageCommittee(Delhi)Upkram-2,wherein30officialsparticipatedfromvariousDelhibasedPSUsandcashprizes were given to the winners in thecompetition.

27.0 Particulars of Energy Conservation, Technology absorption

AsNSICdoesnothaveanymanufacturingactivities, the declaration of informationregarding conservation of energy &technology absorption is not required. Inlinewith thesuccessful implementationofroof top grid connected Solar System onNSIC Buildings at NewDelhi, Hyderabadand Chennai in the last year, during thisyear i.e. 2017-18,NSIChasawarded thecontract for the implementation of gridconnected rooftop solar photovoltaic (PV)systematNTSC-RajkotandNTSC-Howrahin order to promote energy Conservationthroughrenewableresources.

TheCorporationisalsoinprocesstoinstallLEDBasedlightingsystematNSICHeadOffice, EMDBP-Hyderabad, NTSC-Okhla,Howrah, Rajkot, Chennai, Hyderabad,RajpuraandAligarh.

28.0 Procurement Policy for MSEs

The Corporation has successfullyimplemented the Public ProcurementPolicy of the Government of India forprocurement from MSEs. The value ofgoods and services procured from Micro& Small Enterprises during the year wasRs. 55.95 crore.As against the target of20 per cent for procurement fromMSEs,thisprocurement fromMSEswas77.37%(previous year 60.69%) of the totalpurchasesmadebytheCorporation.

29.0 Foreign Exchange

Duringtheyear2017-18,theCorporation’sexpenditure in foreign currency wasRs. 260.05 lakh as compared toRs. 254lakhintheyear2016-17.

30.0 Quality Management System

Quality Management System ISO9001:2000inNSICwasestablishedduringtheyear2003.Initially,NSICwascertifiedunder ISO9001:2000 version,whichwasrevisedandupdatedintheyear2008withthe versionof ISO9001:2008, since thenNSIC has been implementing the revisedversionofthestandard.

Your Directors are pleased to informthat the Corporation has been upgradedto the latest version of certification ISO9001:2015.

31.0 Directors

During the year 2017-18, the followingchangeshavetakenplaceintheBoardoftheCorporation:-

a) Smt. Alka Nangia Arora, JointSecretary, Ministry of MSME wasappointedasOfficialpart-timeDirectorin the Corporation w.e.f. 26th July,2017.

b) Shri Manoj Joshi, Joint Secretary,MinistryofMSMEceasedtobeOfficialpart-timeDirectorw.e.f.26thJuly,2017.

c) Shri D.P.S. Negi, Economic Adviser,Ministry of MSME was appointed asOfficial part-time Director w.e.f. 10thNovember,2017.

d) ShriS.N.Tripathi,AS&DC,MinistryofMSMEceasedtobeOfficialparttimeDirectorw.e.f.10thNovember,2017.

Duringtheyear,fivemeetingsoftheBoardofDirectorswereheld.Inaddition, fiveAuditCommittee Meetings, three meetings ofCorporateSocialResponsibilityCommitteeand two Nomination & RemunerationCommitteeMeetingswereconvened.Thedetails of the meetings are given in theCorporateGovernanceReportwhichformspartofthereport.

32.0 Directors’ Responsibility Statement

Pursuant to the requirementunderclause(c) of sub-section (3) of section 134 oftheCompaniesAct,2013,with respect to


29

Directors’ Responsibility Statement, it isherebyconfirmedthat:

• in the preparation of the annualaccounts, the applicable accountingstandardshadbeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;

• theDirectorsselectedsuchaccountingpoliciesandappliedthemconsistentlyandmade judgementsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCorporationattheendofthefinancialyearandoftheprofitorlossoftheCorporationforthatperiod;

• theDirectorshadtakenproperandsufficient care for the maintenanceof adequate accounting records inaccordancewiththeprovisionsofthisActforsafeguardingtheassetsoftheCorporation and for preventing anddetectingfraudandotherirregularities;

• the Directors prepared the annualaccountsonagoingconcernbasis;

• the Directors had laid down internalfinancial controls to be followed bytheCorporationandthatsuchinternalfinancial controls are adequate andwereoperatingeffectively;

• the Directors had devised propersystems to ensure compliance withthe provisions of all applicable lawsandthatsuchsystemswereadequateandoperatingeffectively.

TheDirectorswould like todrawattentiononthedisclosure/explanationgiveninpara5ofNote35ofthefinancialstatementswithrespecttotheoutstandingduesrecoverablefromUnitedBankofIndia,Kolkata.

33.0 Corporate Governance

TheCorporationreceived“Excellent”ratingon compliance of Corporate Governance

guidelines issuedbyDepartmentofPublicEnterprisesforCPSEsfortheyear2016-17.

AseparatereportonCorporateGovernanceforms part of the Annual Report and isannexed.

34.0 Acknowledgements

The Board of Directors wish to place onrecordtheirgratitudetotheHon’bleMinisterof Micro, Small & Medium Enterprises(MSMEs) for the help, guidance andsupportprovided.

The Board wishes to place on record itsappreciation for the valuable guidance &supportprovidedbytheSecretary,MinistryofMSME.

The Board also sincerely acknowledgesthe support, cooperation and guidancereceived from Ministry of Micro, Smalland Medium Enterprises and from otherMinistries and Government of India. TheDirectorsalsoacknowledgewiththanksthesupportreceivedfromJointSecretary,M/oofMSMEandAS&FA,MinistryofMSME.

The Directors also like to express theirsincere appreciation for the positivecooperation received from Company’sBankers, Financial Institutions and theyalsowishtothankall thestakeholdersforreposingtheirfaith,trustandconfidenceinourCorporation.

The Directors acknowledge the constantsupport and assistance received fromStatutoryAuditors,ComptrollerandAuditorGeneralofIndiaandMemberAuditBoard.

The Board of Directors also take thisopportunitytoplaceonrecordtheirsincereappreciation for thehardwork,dedicationandeffortsput inbyall theemployeesfordrivingNSICtowardsagloriousfuture.

ForandonbehalfoftheBoardofDirectors

Place:NewDelhi (RavindraNath)Date:20thSeptember,2018 Chairman-cum-ManagingDirector


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I. Industry structure and developments

TheNationalSmall IndustriesCorporationLtd. (NSIC), an ISO 9001:2015 certifiedGovernment of India Enterprise underMinistry of Micro, Small and MediumEnterprises (MSMEs), has been workingto fulfil its mission of promoting, aidingandfosteringthegrowthofMSMEsinthecountrysinceitsestablishmentin1955.

TheCorporationisclassifiedasMiniRatnaCategory-IPublicSectorEnterpriseunderthe administrative control of Ministry ofMicro, Small and Medium Enterprises,GovernmentofIndia.

Schemes of the Corporation: Schemesand servicesprovidedby theCorporationis detailed in the Directors’ Report. TheCorporation has registered office in NewDelhi.NSICoperatesthroughlargenetworkspreadsacrossthecountryhavingvariousofficesandeighttechnicalcentreslocatedat Chennai, Howrah, Hyderabad, Okhla(New Delhi), Rajkot, Rajpura, Neemka(Hariyana) & Aligarh. The Corporationhas set up incubation centres at Okhla(New Delhi), Deoria (Uttar Pradesh),Howrah (West Bengal), Guwahati, Kolar(Karnataka), Jubbal&Kanaid (HimanchalPradesh)andNeemka(Haryana).

II. Financial Performance

TheCorporationachievedgrossrevenueofRs.2,592.50croreasagainstRs.2,376.24crore in previous year.The revenue fromoperations was Rs. 2,535.82 crore asagainst Rs. 2,308.87 crore in previousyear. NSIC has continued its efforts offacilitating MSMEs, during the financialyear 2017-18 also, through integratedsupportservicesencompassingMarketing,Credit, Technology and other Services.DespitethechallengesbeingfacedbytheMSMEsectorduetovariousfactors,overallbusinessoftheCorporationhasreachedat

anall-timehighlevelofRs.22,457croreascompared to Rs.20,622 crore during thepreviousyear,reportingthegrowthof9%.

During the year 2017-18, theCorporationhas earned Profit (Before Tax andProvision for Pay Revision) amounting toRs. 175.33 crore as against Rs. 165.07crorereportedinthepreviousyear.PBTfortheyear2017-18isRs.152.05croreafterabsorbing impact of Pay Revision (w.e.f.01.01.2017 for the employees under IDApatternand01.01.2016fortheemployeesunderCDApattern)amountingtoRs.23.28crore,implementedasperapprovaloftheGovernmentconveyedon03.05.2018.

TheCorporationcontinued toplay its roleof facilitator to the MSMEs by facilitatingthemwith integrated support with specialfocusonmarketingsupport-rawmaterialdistribution(12,58,803MTs),creditsupport(Rs.6,373 crore), technology support-trainingactivities(37,459trainees).

The Corporation also continued toimplement the Government’s Schemesnamely Performance & Credit RatingScheme; Marketing Assistance Schemeto support marketing efforts of MSMEs);National SC-ST Hub, Assistance forTrainingInstitutionsandASPIREScheme.

The Board members has recommendeddividendofRs.28.37croresubject to theapprovalofshareholders.

III. Segment-wise Performance

NSIC’s activities are broadly classifiedinto ‘Promotional’ and ‘Commercial’. The‘Promotional’activitiesincludetheactivitiesfor which budgetary support is providedto the Corporation by the Governmentand / or its agencies. The schemesof ‘Marketing Assistance Scheme forMSMEs’, ‘Performance & Credit RatingScheme (PCRS) for Micro and Small

Annexure to Directors’ Report Point No. 9.0

Management Discussion & Analysis


31

Enterprises’, ‘Assistance for Training toInstitutions’and‘NationalScheduleCaste–ScheduleTribeHub’(NSSH)etc.,forwhichbudgetary support has been provided tothe Corporation alongwith administrativeexpenditure restricted to the tune of 10%of the total expenditure under MAS and7.5%ofthetotalexpenditureunderPCRSand NSSH Scheme for implementationof such schemes, get reflected under the‘Promotional’activity.Theexpensestowardsorganization / participation in exhibitions(both domestic and international), buyersellers meet, intensive campaigns, othermarketingsupportservices(advertisement,publicityetc.),ratingofMSEsandtrainingexpenses are met out of the budgetarysupportprovidedfortheaboveschemes.

The‘Commercial’activitiesinter-aliainclude

the activities whereby the Corporationprovides ‘Marketing’ (including tender

marketing andRawMaterialDistribution),‘Credit’, ‘Technology’ and ‘other support’services to cater to the diverse needs oftheMSMEs.TheCorporation funds these‘Integrated’ support services. In addition,activities not met out of the budgetarysupportbutwhicharepromotionalinnature(sincecarriedoutwiththeintenttosupporttheMSMEs)aremergedwithcommercialactivitiesastheexpensesofsuchactivitiesarebornebytheCorporation.Accordingly,the activities of the Corporation havebeen divided into two segments namely“Commercial”&“Promotional”.

The following table presents the revenue,profit/(loss),assetsandliabilitiesinformationto the Business segments for the yearended 31st March, 2018 as required byAS-17on“SegmentReporting”issuedbytheInstituteofCharteredAccountantofIndia:

Description For the year ended 31/03/2018 For the year ended 31/03/2017A.PrimarySegment–

BusinessSegment Promotional Commercial Total Promotional Commercial Total

I. SEGMENT REVENUE

a. SegmentRevenue (includinggrant) 5709.71 253540.58 259250.29 6677.68 230945.85 237623.53

II. SEGMENT RESULTS

a. SegmentResults@ 0.00 9940.66 9940.66 0.00 10639.84 10639.84

b. OperatingProfitbeforeinterest 0.00 28428.88 28428.88 0.00 36257.05 36257.05

c. Priorperiod 0.00 (-)24.12 (-)24.12 0.00 15.82 15.82

d. InterestPaid 0.00 13340.85 13340.85 0.00 19748 19748

e.Exceptionalitems 0.00 (-)92.83 (-)92.83 0.00 (-)13.93 (-)13.93

f. NetProfitbeforeTax 0.00 15204.98 15204.98 0.00 16507.16 16507.16

g. Tax 0.00 5264.32 5264.32 0.00 5867.32 5867.32

h. NetProfitafterTax 0.00 9940.66 9940.66 0.00 10639.84 10639.84

III. ASSETS & LIABILITIES

a.SegmentAssets 4025.82 325786.75 329812.57 1391.49 311814.77 313206.26

b.UnallocatedAssets 0.00 0.00 20455.34 0.00 0.00 40061.27

c. Total Assets 4025.82 325786.75 350267.91 1391.49 311814.77 353267.53

d.SegmentLiabilities 3945.47 239352.69 243298.16 6245.88 250096.84 256342.72

(ìnLakh)


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IV. Strength & Challenges Analysis

a. Strengths

• NSIC is a national level organizationwith thehugeknowledgebaseaboutworking of MSME sector and havingpresence all over the country byhavingofficesin157locations.

• The Corporation offers integratedpackage of services, ranging fromfinancialsupport,marketing,technologyandinformationsupporttoMicro,Small&MediumEnterprises.

• TheCorporationhaslinkageswithMicro,Small &Medium industry organizations/ associations within the country andseveral partner organizations overseasfordevelopmentofMSMEsector in thecountry.

• The Corporation has proven trackrecord in the area of internationalcooperation in MSME sectordevelopmentandinstitutionalcapacitybuilding.

• The considerable asset base ofthe Corporation gives it an addedadvantage for expansion of itsactivities.

• A profit making, dividend payingCompany,with“AA+”ratingbyCARE.

b. Challenges

• AsmallResourcebaseascomparedtootherinstitutionsprovidingservicestoMSMESector.

• Notification and implementation of‘Procurement Preference Policy’for MSEs by the Government toincreaseparticipationofMicro&SmallEnterprisesinGovernmentpurchases.InadditiontoCorporation,someotheragencies have also been authorizedto register MSEs for GovernmentPurchase.

• Non-availabilityofthestatusof“PriorityLending” earlier given by ReserveBankofIndia.

c. Opportunities

• There is vast potential for servicesbeing offered by NSIC to MSMEswithinthecountryandaboard.

• International Cooperation, TechnologyTransferandInternationalConsultanciestodevelopingcountries.

• Availability of physical assets fordevelopmentofnewprojects.

d. Threats

• Competition from other national andstate level institutions in theareasofmarketing, technology support andfinancing pose a threat to the coreactivitiesoftheCorporation.

• State Governments preference tostate agencies over NSIC, for rawmaterialdistribution.

• Entry of large players due toglobalization poses challenges forMSMEsector.

e.UnallocatedLiabilities 0.00 0.00 106969.75 0.00 0.00 96924.81

f. Total Liabilities 3945.47 239352.69 350267.91 6245.88 250096.84 353267.53

IV. OTHER INFORMATION

(a)Cost incurred during the period to acquire fixed assets (including CWIP)

2025.82 2059.44 4085.26 129.91 3692.47 3822.38

(b) Depreciation # 252.87 569.18 822.05 151.18 488.39 639.57

(c) Non-cash expenditure other than depreciation 0.00 345.10 345.10 0.00 457.49 457.49

#Thedepreciationofpromotionsegmentischargedtocapitalreserve.


33

• Inadequatecreditflowfromcommercialbanks toMSME sector, especially tonewandstart-upenterprises.

V. Outlook

NSIChasbeenworkingtofulfillitsmissionofpromoting,aiding&fosteringthegrowthofMicro,SmallandMediumEnterprisesoftheCorporationforlastsixdecades.

NSICcarries forward itsmission toassistMSME with a set of specially tailoredschemes designed to put them in acompetitiveandadvantageousposition.

NSIChassignedvariousMOUstoachieveitstargetsandtoincreasethegrowthandprofitabilityof theCorporation.Toachievethe desired growth, NSIC is enhancingits capabilities to access Domestic andInternationalMarkets and for this,ProjectManagement and Implementation,Technology, Quality and CustomerSatisfactionhavebeenidentifiedasmajorthrustareas.

The Corporation plans to further explorethe new business opportunities in areasofMarketing, setupnewTechnologyandIncubation Centres to provide trainingto enhance the knowledge level and toincreasetheemploymentopportunitiesforunemployedyouth.

VI. Risks & Concerns

The Corporation regularly identifiesand reviews the risks which can be theoutcomeofregularbusinessactivitiesandtakesappropriate steps from time to timeto mitigate these risks. Themanagementis committed to further strengthen riskmanagement capabilities in order toprotect and enhance stakeholders’ value.The Corporation has devised the “RiskManagementPolicy”.

VII. Internal Control Systems

The Board has adopted the policies andprocedures for ensuring the orderly anefficient conductof itsbusiness, includingadherence to the Company’s policies,safeguarding of its assets, the accuracyand completeness of the accounting

records and the timely preparation andreliable financial disclosures. For thisregularinternalauditofallthefieldofficesiscarriedout. InRawmaterialassistanceagainst bank guarantee, several checksand balances were introduced to furtherstrengthen the system including issuanceof additional guidelines for confirmationunder Structured Financial MessagingSystem (SFMS) mode and remittanceof proceeds in case of invocation to anominated bank account at head officefor effective monitoring of utilization offunds and introduction of new improvisedsoftware for accounting of credit supportgivenunderRMAagainstBankGuarantee.

VIII. Developments in Human Resources, Industrial Relations front including number of people employed

HumanResourceisthemainassetoftheCorporation. Success of any organizationdepends upon the engagement andmotivation levels of its employees. TheHuman Resource division has played asignificant role in achieving the overallobjectives of building capability amongstpeople andmore importantly, involve andengageemployeesinvariousimprovementprogramsacrossthefunctionsforachievingimprovedresults.

Forthispurpose,varioustrainingprogramswere conducted as training is a learningprocess that involves the acquisition ofknowledge,sharpeningofskills,concepts,rules and changing of attitudes andbehaviors to enhance the performanceofemployees.NSIChasanexclusiveTrainingdivision which conducts and administerstrainingprogramsforall theemployeesofNSICacrossthecountry.

IX. Cautionary Statement

Statements in Management DiscussionandAnalysis describing theCorporation’sobjectives, projections, expectations,estimates are based on current businessenvironment. Actual results could differfromthoseexpressedorimpliedbasedongovernment policy decisions and futureeconomicenvironment.


34

1.0 A brief outline of the Company’s CSR Policy, including overview of projects or programmes proposed to be undertaken and a reference to the web-link to the CSR Policy and projects or programmes:

TheCorporationalwaysstrivestointegrateits business values and operations inan ethical manner to demonstrate itscommitment to sustainable developmentof the various constituents of our Society.TheCSRcommitmentofNSICpositionsitssocialandenvironmentalconsciousnessasanintegralpartofitsbusinessplanandasasteptowardsthisdirectionhascommittedto strengthen the quality of life of under-privilegedsectionsofthecommunity.

The Corporation’s CSR Policy has beendesigned as per requirements of theCompanies Act and guidelines issued bythe Department of Public Enterprises andinsynchronizationwiththeaboveobjectiveof the Corporation. The diversified CSR

applicationsarespreadacrossthecountryintheneedspecificsectorslikeEducation,Health, Disability, Capacity Building andExpansionofHumanCapabilities.

TheCompany’sCSRPolicyincludingCSRinitiatives undertaken are available onCorporation’swebsiteatwww.nsic.co.in.

2.0 Health Care & Medical Assistance to Specially Abled and Other Weaker Sections of Society:

• Nine Medical Camps at Jalandhar,Phillaur, Kapurthala, Hoshiarpur,Amritsar,Gurdaspur,Pathankot,BatalaandTarnTaranwereorganized in thedistrict ofPunjab. 415 specially abledpersons were provided 441 artificiallimbs from these camps. In addition,Tricycles, Wheel Chairs, Crutches,Rollators, Elbow Crutches, AuxiliaryCrutches,WalkingStick, BrailleCaneetc.wereprovidedto144divyangsat


Corporate Social Responsibility “Commitment for building a better tomorrow for our communities”

ShriRavindraNath,Chairman-cum-ManagingDirector,NSICinauguratingtheCSRInitiativeundertakenwith“DiabetesCareFoundationofIndia”atChattarpurDispensary,NewDelhiinthepresenceofDr.VikasAhluwalia,Director,DiabetesCare

FoundationofIndia.


35

SiddipetdistrictofTelanganaand264divyangsatAhmedabaddistrict in theStateofGujarat.

• Health Camps were organized at tenvillages namely Ralawata, Peenglot,Khatoli,Singara,MohanPura,Raamnerki Dhaani, Cheetakheda, Salemabad,Sarana and Mangra in district Ajmer,(Rajasthan) focusing on awarenessbuilding on prevention of commonailments, promotion of hygiene &sanitation etc.Medicines and supportservicesofdoctorswerealsoprovidedtothe5,650poorvillagers.

• ReconstructiveSurgeries (RCS)wereperformed for 24 persons who wereaffectedbyGradeIIdeformitiesduetoleprosy at TLM Community Hospital,Shahdara,Delhi.

• NSIC organized 100 Eye Check-upcamps at Faridabad, Nuh, Mewat,Hatin, Hassanpur, Hodal (Haryana)and Kosi (Uttar Pradesh) and its

adjoiningdistricts.Total1000cataractsurgerieswereperformed.

• NSIC organised eight Health Campsin different districts of Uttar PradeshnamelyDeoria,SuraulilPaikoliMarket,TarkulawaMarket,Bariyarpur,GurvaliyaMarket / Turkpatti, Jeurabazar,Salemgarh and Bisanpur Kala andCorrectiveSurgerieswereperformedof51childrenwithcongenitaldisability.

• Diabetes Treatment Camps for theweaker sections of the society inassociationwiththeGovernmentofDelhiatChhatarpurwereorganisedbyNSICwhere 570 diabetic and hypertensionpatientsweretreatedupon.

• NSIC provided chemotherapy(injection and medicines), radiodiagnosis, surgical needs, prostheticsandnutritionalandeducationalaidandothersupportservicestopoorchildrenforcancertreatment.37childrenbelowpovertylinesufferingfromcancerweretreatedatChennai.

UnderNSIC’sCSRInitiative,WomenChildrenWelfareandRuralDevelopmentSocietyorganisedmedicalcampatVillageSalemabadinAjmerDistrict.


36

3.0 Education

Education is the key to the task of nationbuilding as well as to provide requisiteknowledgeandskillsrequiredforsustainedgrowthoftheeconomyandtoensureoverallprogress.

• NSIC provided assistance to theeducationcenterintheslumofDakshinPuri,NewDelhi to the primary schoolgoingchildrenwhereapproximately116childrenwerebenefittedineachmonth.

• NSICprovidedEducationalFacilities&Nutrition Supplements to the childrenof domestic workers / daily wagesworkers who are away from theirhomes. Under this initiative, total 98childrenwerebenefittedpermonth.

• NSIChassetupalibraryinKolarDistrict(Karnataka) where approximately 30studentsaretakingbenefitdaily.

4.0 Safe Drinking Water

Installed20HandPumpsinthevillagesofdistrictBasti(UttarPradesh).Approximately50peoplearebenefitingperdayfromeachhandpump.

5.0 Women Empowerment

Womenfaceeconomicandsocialchallengesin the society. Many women in weakersectionstrytoearnincomefortheirfamiliesbyundertakingworkafteracquiringcertainskills. In this perspective, NSIC providedvocational Training on Dress Designing &Tailoring (Skill Development Training) for180 women belonging to weaker sectionsatHudhkeshwar,Gondwana,Katol,Kharbi,Dighori andGodhni in theNagpurDistrict(Maharshtra).

6.0 Skill Development & Computer Training Centres for people with disabilities and other weaker sections of community

• NSIC provided vocational trainingprogrammesinComputerApplications,Tailoring,EnglishSpeaking,Personalitydevelopment, Music & Handicraftsat Jodhpur (Rajasthan) where 200divyangsstudentswerebenefitted.

• NSIC provided vocational training inthefieldofcomputerto442studentsinNewDelhi.Inaddition,theCorporationprovided running cost of IncubationCentre earlier setup by NSIC for the

DivyangandunderprivilegedstudentsreceivingvocationaltrainingincomputersatComputerCentresetupbyNSICunderCSRInitiativeswithimplementingagencyHandicappedWelfareFederation(HWF),Delhi


37

training in Computer & BeauticianCourses.86Studentswerebenefittedunderthisprogramme.

• NSIC provided vocational trainingat Ludhiana (Punjab) in the field ofknittingindustryandunderthistraining81males&46femaleswerebenefitted.

7.0 The Composition of the CSR Committee

The Board has constituted the “CSRCommittee of the Board”. Presently, theCommittee has five members viz. Ms.GeetaGoti,Chairperson,Prof.A.P.Pandey,ShriRameshBhat,ShriP.UdayakumarandShriA.K.Mittal.

Averagenetprofitof theCompanyfor last

threefinancialyears

AveragenetprofitoftheCompanyforlastthreefinancialyears

`15,141.85lakh

8.0 Prescribed CSR Expenditure (2% of Average Profit)

The Company is required to spendRs.302.84lakhtowardsitsCSRactivities.

9.0 Details of CSR spent during the Financial Year:

a) Total amount spent for theFinancialYear2017-18 `302.95lakh

b) Amountunspent,ifany NIL

c) MannerinwhichtheamountspentduringtheFinancialYearisdetailedbelow:


38

S. No.

CSR Projects Identified Sector State & Districts

of Project coverage

Project-wise outlay(Rs.)

Amount Spent (Direct

Expenses)(Rs.)

Cumulative Expenses

(Rs.)

Direct or through Agency

1 ProvidedChemotherapy,RadioDiagnosis,Surgicalneeds,Prosthetics,Nutritionalsupport,EducationalsupportandservicesofPhysiotherapistandcounsellortocanceraffectedchildrenbelowpovertyline

HealthCareIncludingPreventiveHealthCare

Chennai(TamilNadu)

1,37,44,190/- 1,24,19,956/- 1,24,19,956/- MithrasFoundation

ConductedEyecamps,performedcataractSurgeries,Healthcamps,andperformedCorrectiveSurgeriesforthechildren

Faridabad,Nuh,Mewat,Hathin,Hassanpur,Hodal(Haryana)Kosi(UttarPradesh)

AssociationforBlindness&LeprosyEradication(ABLE)

Ajmer(Rajasthan)

WomenChildrenWelfareAndRuralDevelopmentSociety(WARDS)

Deoria(UttarPradesh)

SanjeevaniSocialWelfareSociety

OrganizedHealthCampsandprovidedArtificialLimbs,WheelChairs,Tri-Cycles,HearingaidsandCrutchesandMedicalAssistancetoDifferentlyAbled

Jalandhar,Phillaur,Kapurthala,Hoshiarpur,Amritsar,Gurdaspur,Pathankot,BatalaandTarnTaran(Punjab)

BharatVikasParishadCharitableTrustPunjab

Siddipet(Telangana)

ArtificialLimbsMfg.Corpn.ofIndia(ALIMCO)

Ahmedabad(Gujarat)

BlindPeople’sAssociation(India)

PerformedReconstructiveSurgeriesofHand,Foot,Eyesetc.forpeoplewhoaffectedbyGradeIIdeformitiesduetoleprosy

NewDelhi(Delhi)

TheLeprosyMissionTrustIndia(TLMTI)


39

S. No.


of Project coverage



Expenses)(Rs.)

Cumulative Expenses

(Rs.)


OrganizedDiabetesTreatmentCampsforweakersectionsofthesociety

NewDelhi(Delhi)

DiabetesCareFoundationofIndia(DCFI)

2 ProvidedVocationaltrainingonEnglishSpeaking,PersonalityDevelopment,HandicraftandMusictoVisuallyImpairedstudents

VocationalTraining

Jodhpur(Rajasthan)

54,74,646/- 46,09,092/- 46,09,092/- NetraheenVikasSansthan

ProvidedComputertrainingtowomen,students,Physicallychallengedandotherweakersectionsofthesociety

NewDelhi(Delhi)

HandicappedWelfareFederation(HWF)

ProvidedrunningcostofIncubationCentreforthetraininginComputer&BeauticianCourses

Warangal(Telangana)

DistrictRuralDevelopmentAgency(DRDA),Warangal

SetupofVocationalTrainingcumRehabilitationCentreinthefieldofknittingindustry

Ludhiana(Punjab)

BharatVikasParishadCharitableTrust,Punjab

VocationalTraininginDressDesigningandTailoring

Nagpur(Mah.)

KrushimitraAgrotechBahu-udeshiyaSanstha,Kuhi

ProvidedVocationalTraininganddistributionofsewingmachinestothetrainees.

Krishna(AndhraPradesh)

StarYouthAssociation

3 EducationalFacilitiestounderPrivilegedchildren

Education NewDelhi(Delhi)

26,53,400/- 23,74,821/- 23,74,821/- MaitreeyPrekshaSevaMission

Providedrunningcostofalreadyset-upofamodernlibrarywithsmallComputerLabbyNSIC

Kolar(Karnataka)

RuralAgriculturalDevelopmentSociety(RADS)

ProvidedEducationalFacilities&NutritionSupplementstothechildrenofdomesticworkers.

Noida(UttarPradesh)

RamaFoundation


40

S. No.


of Project coverage



Expenses)(Rs.)

Cumulative Expenses

(Rs.)


4 ProvidedSafeDrinkingWaterbyinstallationofHandPumps

SafeDrinkingWater

Basti(UttarPradesh)

6,40,200/- 5,90,200/- 5,90,200/- BharityaCo-operativeGraminVikasEvemNirmanLimited

5 ContributiontoSwachhBharatKosh&Evaluationexpenses

Others PANIndia 1,03,00,700/- 1,03,00,700/- 1,03,00,700/- Direct

TOTAL 3,28,13,136/- 3,02,94,769/- 3,02,94,769/-


41

TheMembers,The National Small Industries Corporation Ltd.NSICBhawan,OkhlaIndustrialEstate,NewDelhi-110020

I have conducted the Secretarial Audit of thecompliance of applicable statutory provisions andtheadherencetogoodcorporatepracticesbyThe National Small Industries Corporation Limited(hereinafter called the Company). SecretarialAudit was conducted in a manner that providedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.

BasedonmyverificationoftheCompany’s books,papers,minutebooks,formsandreturnsfiledandother records maintained by the Company andalsothe informationprovidedbytheCompany, itsofficers, agents and authorized representativesduringtheconductofSecretarialAudit,weherebyreportthatinouropinion,theCompanyhas,duringtheaudit period covering financial year endedon March 31, 2018 (“Audit Period”) complied withthestatutoryprovisions listedhereunderandalsothat the Company has proper Board-processesandcompliance-mechanisminplacetotheextent,in themanner and subject to the reportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedby the Company for the financial year ended onMarch 31, 2018accordingtotheprovisionsof:

i. The CompaniesAct, 2013 (theAct) and therulesmadethereunder;

ii. The Securities Contracts (Regulation) Act,1956(‘SCRA’)andtherulesmadethereunder;(Not applicable to the Company during the audit period);

iii. TheDepositoriesAct,1996andtheRegulationsand Bye-laws framed there under; (Not applicable to the Company during the audit period) ;

iv. ForeignExchangeManagementAct,1999andthe rules and regulations made there underto the extent of Foreign Direct Investment,Overseas Direct Investment and ExternalCommercial Borrowings; (Not applicable to the Company during the audit period)

v. The following Regulations and GuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-

(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesand Takeovers) Regulations, 2011(Not applicable to the Company during the audit period) ;

(b) TheSecuritiesandExchangeBoardofIndia (Prohibition of Insider Trading)Regulations, 1992 (Not applicable to the Company during the audit period);

(c) The Securities and Exchange Board ofIndia (Issue of Capital and DisclosureRequirements) Regulations, 2009 (Not applicable to the Company during the audit period);

(d) The Securities and Exchange Board ofIndia(ShareBasedemployeeBenefits)Regulations, 2014 (Not applicable to the Company during the audit period);

(e) The Securities and Exchange Board ofIndia(IssueandListingofDebtSecurities)Regulations, 2008; (Not Applicable as the Company has not issued any debt securities);


FORM No. MR-3

SECRETARIAL AUDIT REPORTFor The Financial Year ended on 31st March, 2018

(Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014)


42

(f) The Securities and Exchange Boardof India (Registrars to an Issue andShare Transfer Agents) Regulations,1993 regarding theCompaniesActanddealingwithclient(Not applicable to the Company during the audit period);

(g) The Securities and Exchange Boardof India (Delisting of Equity Shares)Regulations,2009;and(Not applicable to the Company during the audit period);

(h) The Securities and Exchange Board ofIndia(BuybackofSecurities)Regulations,1998;(Not applicable to the Company during the audit period);

(i) Compliances / Processes / systemsincluding other applicable laws to theCompanyarebeingverifiedonthebasisof periodic certificate submitted to theBoardofDirectorsoftheCompany.

(j) OtherlawsapplicabletoCompanyare:-

(i) Guidelines issued by DepartmentofPublicEnterprises

(ii) RighttoInformationAct,2005

Ihavealsoexaminedcompliancewiththeapplicableclauses/regulationsofthefollowing:

(a) SecretarialStandards issuedbyThe InstituteofCompanySecretariesofIndia.

(b) The Listing Agreement entered into bythe Company with the Stock Exchange,/SEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015 (Not

applicable to the Company during the audit period)

During theperiodunder review theCompanyhascomplied with the provisions of the Act, Rules,Regulations, Guidelines, Standards, etc. asmentionedabove.

We further report that

• TheBoardofDirectorsoftheCompanyisdulyconstituted with proper balance of ExecutiveDirectors, Non-Executive Directors andIndependentDirectors.

• Thechanges in thecompositionof theBoardofDirectors that tookplaceduring theperiodunder reviewwere carried out in compliancewiththeprovisionsoftheAct.

• Adequate notice is given to all directors toschedule the Board Meetings, agenda anddetailed notes on agenda were sent at leastseven days in advance, and a systemexistsfor seeking and obtaining further informationandclarificationson theagenda itemsbeforethemeetingandformeaningfulparticipationatthemeeting.

• Resolutions were passed at all themeetingsby the requisite majority and there were noinstances of the dissentwhichwere requiredto be captured and recorded as part of theminutes.

I further report that there are adequate systemsandprocessesinthecompanycommensuratewiththesizeandoperationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

FOR SANJAY CHUGHCompanySecretary

Date:3rdAugust,2018 FCSNo:3754Place:NewDelhi C.P.NO.3073Note: This report is to be read with our letter of even date which is annexed as Annexure- A and forms an integral part of this report.


43

Annexure “A”

To,TheMembers,The National Small Industries Corporation LimitedNSICBhawan,OkhlaIndustrialEstate,NewDelhi-110020

Ourreportofevendateistobereadalongwiththisletter.

1. MaintenanceofSecretarial record is theResponsibilityof themanagementof thecompany.Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonableassuranceabout the correctnessof the contents of theSecretarial records.The verificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.

3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompany.

4. Whereverrequired,wehaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.

5. ThecomplianceoftheprovisionsofCorporateandotherapplicablelaws,rules,regulations,standards is the responsibilityofmanagement.Ourexaminationwas limited to theverificationofproceduresonrandomtestbasis.

6. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynorof theefficacyoreffectivenesswithwhich themanagementhasconducted theaffairsof theCompany.

FOR SANJAY CHUGHCompanySecretary

Date:3rdAugust,2018 FCSNo:3754Place:NewDelhi C.P.NO.3073


44


FORM NO. MGT-9EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2018

Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014

I. REGISTRATION & OTHER DETAILS:

CIN U74140DL1955GOI002481

RegistrationDate 4thFebruary,1955

NameoftheCompany TheNationalSmallIndustriesCorporationLimited

Category/Sub-categoryoftheCompany PublicSectorEnterpriseMiniRatnaCategory–I

Address of the Registered Office & contactdetails

NSICBhavan,OkhlaIndustrialEstate,NewDelhi–110020

Whetherlistedcompany No

Name,Address&contactdetailsoftheRegistrar&TransferAgent,ifany. N.A.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated)

S.No.

Name and Description of main products / services

NIC Code of the Product/service

% to total turnover of the Company

1 RawMaterialSupporttoMSMEs …. 68.49%

2 CreditSupporttoMSMEsforRawMaterialProcurement …. 25.69%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES: TheCompanydoesnothaveanyholding,subsidiaryandassociateCompany

S.No.

Name and Address of the Company

CIN/GLN

Holding / Subsidiary/ Associate

% of shares held

Applicable Section

1 - N.A.-


45

IV. SHARE HOLDING PATTERN (EquityShareCapitalBreakupaspercentageofTotalEquity)e. Category-wiseShareHolding:

Category of ShareholdersNo. of Shares held at the beginning of the year[As

on 31-March-2017]

No. of Shares held at the end of the year[As on 31-March-2018]

% Change during

the year TotalNo.ofShares

%ofTotalShares

TotalNo.ofShares

%ofTotalShares

A. Promoters(1)Indiana)Individual/HUF .... …. .... …. ….b)CentralGovt. 53298800 100% 53298800 100% ….c)StateGovt.(s) .... …. .... …. ….d)BodiesCorp. .... …. .... …. ….e)Banks/FI .... …. .... …. ….f)Anyother .... …. .... …. ….

Sub-Total (A)(1) 53298800 100% 53298800 100% ….

(2)Foreigna) NRIs-Individuals .... …. .... …. ….b) Other-Individuals .... …. .... …. ….c) BodiesCorp. .... …. .... …. ….d) Banks/FI .... …. .... …. ….e) Anyother .... …. .... …. ….Sub-Total(A) (2) .... …. .... …. ….Total shareholding of Promoter (A)= (A)(1) + (A)(2)

53298800 100% 53298800 100%….

B. Public Shareholding1.Institutions …. … … … …a)MutualFunds … … … … …b)Banks/FI … … … … …c)CentralGovt.d)StateGovt.(s) … … … … …e)VentureCapitalFunds … … … … …f)InsuranceCompanies … … … … …g)FIIs … … … … …h)ForeignVentureCapital

Funds … … … … …

i)Others(specify) … … … … …Sub-total (B)(1):- … … … … …

2. Non-Institutions


46

a)BodiesCorp. … … … … …i)Indian … … … … …i) Overseas … … … … …

b)Individuals … … … … …i)Individualshareholders

holdingnominalsharecapitaluptoRs.1lakh

… … …. ….. ….

ii)IndividualshareholdersholdingnominalsharecapitalinexcessofRs.1lakh

…. ….. …… …… ….

a) OtherSpecify … … … … …

Sub-total (B)(2):- … … … … …TotalPublicShareholding(B)=(B)(1)+(B)(2) … … … … …

C. Shares held by Custodian for GDRs & ADRs … … … … …

Grand Total (A+B+C) 53298800 100% 53298800 100%

II. Shareholding of Promoters

SNo.

Shareholder’s Name

Shareholding at the beginning of the year Shareholding at the end of the year %

change in share-holding during

the year No. of

Shares

% of total Shares of the

company

%of Shares Pledged /

encumbered to total shares

No. of Shares

% of total Shares of the

company

%of Shares Pledged /

encumbered to total shares

1 PresidentofIndia 53297500 99.99% …. 53297500 99.99% … ….

2 Secretary,*MSME 400 Negligible …. 400 Negligible … ….

3 C.M.D.,*NSIC 400 Negligible …. 400 Negligible … ….

4 AS&DC,*MSME 200 Negligible …. 200 Negligible … ….

5JointSecretaryMSME*

100 Negligible …. 100 Negligible … ….

6EconomicAdvisor,MSME*

100 Negligible …. 100 Negligible … ….

7 Director,SME* 100 Negligible …. 100 Negligible … ….

100% …. 100%

*Asrepresentative/nomineesofPresidentofIndia


47

III. Change in Promoters’ Shareholding (please specify, if there is no change) Thereisnochangeinpreviousyear’sshareholdingbetween01/04/2017to31/03/2018

SNo. Particulars

Shareholding at the beginning of the year

Cumulative Share-holding during the year

No. of shares

% of totalshares of

thecompany

No. of shares

% of totalshares of the

company

Atthebeginningoftheyear ….. …… …… ……

Date wise Increase / Decrease inPromoters Shareholding during theyearspecifyingthereasonsforincrease/ decrease (e.g. allotment / transfer /bonus/sweatequityetc.):

…..

……

……

……Attheendoftheyear ….. …… …… ……

IV. Shareholding Pattern of top ten Shareholders: (other than Directors, Promoters and Holders of GDRs and ADRs):

SNo.

For Each of the Top 10Shareholders


Cumulative Shareholding during the year

No. of shares


company

No. of shares


companyAtthebeginningoftheyear ….. …… …… ……

Date wise Increase / Decrease inPromoters Shareholding during the yearspecifying the reasons for increase /decrease(e.g.allotment/transfer/bonus/sweatequityetc):

…..

……

……

……Attheendoftheyear ….. …… …… ……

V. Shareholding of Directors and Key Managerial Personnel:

SNo.

Shareholding of each Directors and each Key Managerial Personnel


Cumulative Shareholding during the year

No. of shares


companyNo. of shares

% of totalshares of thecompany

1.

At the beginning of the year

ShriRavindraNath,CMD,NSICLtd.

400 400

ShriS.N.Tripathi,AS&DC,MSME 200 200

ShriManojJoshi,JointSecretary,MSME 100 100


48

2. Change in the shareholding - - -a) Transfer of 100 shares from

ShriManoj Joshi toSmt.AlkaNangiaArora, Joint Secretary.MSME

b) Transfer of 200 shares fromShriS.N.TripathitoShriRamMohanMishra,AS&DC

100

200

100

200

3.

At the end of the year

a) ShriRavindraNath,CMDb) ShriDPSNegi,Economic

Advisorc) ShriAlkaNangiaArora,Joint

Secretary,MSME

400100

100

400100

100

VI) INDEBTEDNESS - Indebtedness of the Company including interest outstanding/accrued but not due for payment.

(ìnCrore)

Secured Loans

excluding deposits

Unsecured Loans Deposits Total

Indebtedness

Indebtedness at the beginning of the financial year

i)PrincipalAmount 1212.22 1049.26 …… 2261.48ii)Interestduebutnotpaid …… …… …… ……iii)Interestaccruedbutnotdue 0.01 0.09 …… 0.10

Total(i+ii+iii) 1212.23 1049.35 …… 2261.58ChangeinIndebtednessduringthefinancialyear*Addition 838.91 ….. …… 838.91*Reduction ….. 995.25 …… (995.25)NetChange 838.91 (995.25) …… (156.34)Indebtednessattheendofthefinancialyeari)PrincipalAmount 2051.14 54.10 …… 2105.24ii)Interestduebutnotpaid …… ….. …… ….iii)Interestaccruedbutnotdue ….. ….. …… ….

Total(i+ii+iii) 2051.14 54.10 ….. 2105.24


49

VII. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNELA. RemunerationtoManagingDirector,Whole-timeDirectorandManager

SNo Particulars of Remuneration

Name of Managing Director

Name of WholeTime Director

Total Amount

Sh.RavindraNath

01/04/2017to

31/03/2018

ShriP.Udayakumar1/04/2017

to31/03/2018

Sh.A.K.Mittal

1/04/2017to

31/03/2018

1

GrossSalary(a) Salary (as per provisions

containedinsection17(1)oftheIncome-taxAct,1961) 48,15,882 58,24,669 29,64,510 1,36,05,061

(b)Valueofperquisitesu/s17(2)Income-taxAct,1961 1,03,239 96,244 57,970 2,57,453

(c) Profit in lieu of salary underSection 17(3) Income TaxAct,1961

….. …… ….. ….

2 StockOption ….. …… ….. ….3 SweatEquity ….. …… ….. ….

4 CommissionAs%ofprofit;others,specify ….. …… ….. ….

5 Others,pleasespecify ….. …… ….. ….

TOTAL (A) 49,19,121 59,20,913 30,22,480 1,38,62,514

B. Remuneration to other Directors

SNo. Particulars of Remuneration Name of Directors Total

Amount2017 - 18

1

IndependentDirectors Prof.A.P.Pandey

Smt.GeetaGoti

ShriRameshBhat

FeeforattendingBoard/CommitteeMeetings 1,45,000 1,50,000 75,000 3,70,000

Commission …. ….. …. ….Others,pleasespecify …. ….. …. ….Total (1) 1,45,000 1,50,000 75,000 3,70,000

2

OtherNon-ExecutiveDirectors …. …. ….. ….FeeforattendingBoard/CommitteeMeetings …. …. ….. ….

Commission …. …. ….. ….Others,pleasespecify …. …. ….. ….Total(2) …. …. ….. ….Total (B)=(1+2) 1,45,000 1,50,000 75,000 3,70,000


50

C. Remuneration to Key Managerial Personnel other than MD / Manager / WTD

SNo. Particulars of Remuneration Key Managerial Personnel

CEO CFO CS Total

1

-

Sh.A.K.Mittal01/04/2017

To31/03/2018

Ms.NishthaGoyal

01/04/2017To

31/03/2018

Grosssalary(a)Salary as per provisions

containedinsection17(1)oftheIncome-taxAct,1961 - 29,64,510 9,98,386 39,62,896

(b)Valueofperquisitesu/s17(2)Income-taxAct,1961 - 57,970 - 57,970

(c)Profitsinlieuofsalaryundersection 17(3) Income-taxAct,1961 - - - -

2 StockOption - - - -3 SweatEquity - - - -4 Commission - - - -

-as%ofprofit - - - --others,specify… - - - -

5 Others,pleasespecify - - - -Total - 30,22,480 9,98,386 40,20,866

VIII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

TypeSection of the

Companies Act

Brief Description

Details of Penalty /

Punishment/ Compounding fees imposed

Authority [RD / NCLT/

COURT]

Appeal made,

if any (give Details)

A. COMPANYPenalty

NonePunishmentCompoundingB. DIRECTORSPenalty

NonePunishmentCompoundingC. OTHER OFFICERS IN DEFAULTPenalty

NonePunishmentCompounding


51


Report on Corporate GovernanceThe Corporation is always committed towardshigh standards in corporate ethics, transparency,disclosures,accountability&integrity.TheCorporateGovernanceadherenceoftheCorporationassistedinachievingitsgoalsandinmaximizingthewealthof its stakeholders. The Corporate Governanceframework encompasses practically every sphereof management, from action plans and internalcontrols to performance measurement andcorporatedisclosure.

TheCorporation’sreportonCorporateGovernanceisgivenbelow:

1.0 Board of Directors

The Board of Directors of the CorporationhasanoptimumcombinationofFunctional,Nominee and Independent Directors asstipulated in DPE guidelines. As on 31stMarch,2018,theBoardofDirectorshaseightmembers comprising of a Chairman-cum-ManagingDirector,twoFunctionalDirectors,twoGovernmentnomineeDirectorsandthree

non-official part-time Directors including aWomanDirector.

Board members are professionals fromdiverse fields having valuable experienceinManagement, Legal, Human Resources,Research, Economics, Administration andFinance.

2.0 Meetings of the Board

The meetings of Board of Directors wereheldatperiodical intervals.During theyear2017-18,fiveBoardMeetingswereheldon28th&29thMay,2017;26thAugust,2017;29thSeptember, 2017; 25th January, 2018 and27thMarch,2018.

Thedetailsofconstitutionof theBoardandthe number of Directorships held in otherCompanies as on 31st March, 2018, andtheirattendanceattheBoardMeetingsandAnnual General Meeting held during theyear,aregivenbelow:

S.No.

Name of the Director & DIN No. Category

No. of Board

Meetings attended

Attendance at the AGM held on 29th Sept.,2017

No. of outside

Director-ships

1.Shri Ravindra Nath as Chairman-cum-ManagingDirectorDINNo.02815496

Executive 05 Yes -

2. ShriManojJoshiDINNo.0002103601

GovernmentNominee 02 x 02

3. Smt.AlkaNangiaArora(AppointedasDirectorw.e.f.26/7/2017)

GovernmentNominee 04 Yes 02

4. ShriD.P.S.Negi(AppointedasDirectorw.e.f.10/11/2017)

GovernmentNominee 02 Yes -

5. Sh.P.UdayakumarDINNo.0003353625 Executive 05 Yes -

6. ShriA.K.MittalDINNo.0007625711 Executive 03 Yes -

7. Prof.A.P.PandeyDINNo.0007781280

Non-ExecutiveIndependent 05 x -

8. Ms.GeetaGotiDINNo.0006866598

Non-ExecutiveIndependent 05 x 01

9. ShriRameshBhattDINNo.0001958539

Non-ExecutiveIndependent 03 Yes 02


52

3.0 Sub-Committees of the Board

The following Sub-Committee(s) of theBoardwereconstitutedasper thestatutoryrequirements consisting of executive andnon-executivemembers.ConsequenttothechangesintheBoard,thesesub-committee(s)oftheBoardwerere-constitutedbytheBoardofDirectors.

4.0 Audit Committee

The Audit Committee of the Board isconstituted as per section 177 of theCompanies Act, 2013 read with the DPEguidelines.

ThecompositionoftheAuditCommitteeanddetailsoftheMeetingsoftheCommitteeareasunder:

S.No.

Name No. of Meetings

held / No. of meetings

held during their tenure *

No. of meetings Attended

1. Prof.AdyaPrasadPandey

05 05

2. Smt.GeetaGoti 05 05

3. ShriManojJoshi 01* 01

4. Smt.AlkaNangiaArora

02* 02

5. ShriRameshBhat 05 04

TheAudit Committee invites senior managementof the Corporation, as it considers appropriate(particularly the head of the finance function) &representativesoftheAuditorsatitsmeetings.

Role of the Audit Committee: The terms ofreferenceofAuditCommitteeareasfollows:

I. Oversight of the Company’s financialreporting process and the disclosure ofits financial information to ensure that thefinancial statement iscorrect, sufficientandcredible.

II. Recommending the appointment andremovalofexternalauditor,fixationofaudit

fee and also approval for payment for anyotherservices.

III. Reviewing with management the annualfinancial statements before submission totheBoard,focusingprimarilyon:

• Matters which are required to beincludedintheDirectors’ResponsibilityStatement of Board’s report and anychange in accounting policies andpractices.

• Major accounting entries based onexerciseofjudgementbymanagement;

• Review the Qualifications in draftaudit report and also the significantadjustmentsarisingoutofaudit;

• Thegoingconcernassumption;

• Compliancewithaccountingstandardsandproceduresandproperdisclosuresofrelatedpartytransactionifanymadeduringthefinancialyear.

IV. Reviewwith themanagement,externalandinternalauditors,adequacyofinternalcontrolsystems,adequacyofinternalauditfunctionincluding the structure of the internal auditdepartment, staffing and seniority of theofficial heading the department, reportingstructurecoverageandfrequencyofinternalaudit.

V. Discussionswith internalauditors regardingany significant findings and review thefindingsofanyinternalinvestigationsbytheInternalAuditorsintothematterswherethereisfraudorirregularitiesfoundandreportthesametotheBoard.

VI. Discussionwithstatutoryauditors/agenciesbefore the audit commences, nature andscope of audit as well as has post-auditdiscussiontoascertainanyareaofconcern.

VII. Review the Company’s financial and riskmanagementpolicies.

VIII. To look into the reasons for substantialdefaults in the payment to the depositors,debenture holders, shareholders (in case


53

of non-payment of declared dividends) andcreditors,and

• Review the quarterly and half-yearlyfinancialstatementwithmanagement.

• Provide sufficient opportunity for theinternalandstatutoryauditorstomeetwith themembers of audit committeewith and / orwithout themembers ofmanagementpresent.

• Review the quarterly and half-yearlyfinancial statement with management,humanresources,successionplanning,recoverypositionandtrends,Repaymentof fixed deposits and payment ofstatutorydues.

IX. To review the follow-up action on the auditobservationsoftheC&AGaudit.

X. To review the follow-up action taken on therecommendations of Committee on PublicUndertakings(COPU)oftheParliament.

XI. Provide an open avenue of communicationbetween the independent auditors, internalauditorsandtheBoardofDirectors.

XII. Review all related party transactions inthe company. For this purpose, the AuditCommittee may designate a member whoshall be responsible for reviewing relatedpartytransactions.

5.0 Nomination & Remuneration Committee

Our Corporation being a GovernmentCompany, the appointment, tenure andremuneration ofDirectors is decided by thePresident of India. The remuneration paidto Chairman-cum-Managing Director andFunctional Directors during the year 2017-18wasasper termsandconditionsof theirappointment.IndependentDirectorsarepaidonly sitting fee as approved by the BoardwithintheceilingfixedundertheCompaniesAct, 2013 and also in accordance with theGovernment guidelines for attending theBoard Meetings as well as CommitteeMeetings. The Government NomineeDirectors do not draw any remuneration /

sitting fee for Board / Committee MeetingsfromtheCorporation.

Consequent to the change in the Board,theNomination&RemunerationCommitteewas re-constituted by the Board. Presently,the Committee has four members. All arenon-executive directors out of which threeare Independent Directors and one isGovernment Nominee Director. During theyear, the Remuneration Committee met on28thMay,2017and24thJanuary,2018.

Themainroleoftheremunerationcommitteeistodecide:

• PerformanceRelatedPay• Annual Bonus / variable pay and policy

for itsdistributionacross theExecutivesandnon-unionizedsupervisors,withinthescribedlimits.

6.0 Corporate Social Responsibility Committee

During the year, the Committee met threetimes on 28thAugust, 2017; 28th December,2017 and 24th January, 2018. Consequentto the changes in theBoard, theCorporateSocial Responsibility Committee was re-constituted by the Board. Presently, theCommitteehasfivemembersviz.Ms.GeetaGoti as Chairperson, Prof. A.P. Pandey,ShriRameshBhat,ShriP.UdayakumarandShriA.K.Mittal.

ThecompositionoftheCSRCommitteeanddetailsoftheMeetingsoftheCommitteeareasunder:

S.No. Name

No. of Meetings

held

No. of meetings Attended

1. Ms.GeetaGoti 03 03

2. Prof.AdyaPrasadPandey 03 03

3. ShriRameshBhat 03 02

The Corporate Social Responsibility CommitteeoverseesCorporateSocialResponsibilitiesoftheCorporationandapproveCSRproject-wisebudget.TheCorporation hasCSRpolicy approved by theBoard.


54

7.0 Write Off Committee

At present, the members of the Writeoff Committee are Shri Ramesh Bhat asChairman, Shri Ravindra Nath, Prof. A.P.Pandey and Smt. Geeta Goti as members.NoWriteoffMeetingwasheldduringtheyear2017-18.

8.0 Disclosures

As per DPE guidelines on CorporateGovernance and Companies Act, 2013 thefollowingdisclosuresaremade:

• Vigil Mechanism / Whistle Blower Policy

The Corporation has implemented a vigilmechanism through adoption of WhistleBlower Policy as per the compliance ofsection177oftheCompaniesAct,2013withanobjectivetoenableanyemployeestoraiseconcernsaboutanyorun-expectablepracticeandanyeventofmisconduct.Weaffirmthatno employee of the Corporation has beendenied access to theAuditCommittee.TheWhistle Blower Policy is available on thewebsiteoftheCompany.

• Code of Ethics and Business Conduct

AspertheCorporateGovernanceGuidelines,theCorporation has issued “Code of Ethicsand Business Conduct” for compliance andalsoposted thesameon thewebsiteof theCorporation.DirectorsoftheCorporationhaveaffirmedtheiradherencetotheprovisionsoftheCode.

9.0 Remuneration of Directors

TheremunerationdetailsoftheDirectorsaregiveninMGT-9isAnnexed.

10.0 Key Managerial Personnel (KMPs)

The Board of Directors has appointed thefollowing persons as the “Key ManagerialPersonnel”oftheCorporationpursuanttotheprovisionsofSection203oftheCompaniesAct, 2013 and Rule(8) of the Companies(Appointment&RemunerationofManagerialPersonnel)Rules,2014.

S. No. Name Designation

1.ShriRavindraNath Chairman-cum-Managing

Director

2.ShriP.Udayakumar WholeTimeDirector

3. ShriA.K.Mittal WholeTimeDirectorandCFO

4.ShriGaurangDixit AsManager(KMP)

5. Ms.NishthaGoyal CompanySecretary&KMP

11.0 Declaration by Independent Directors

The Independent Directors has submittednecessarydeclarationaspersection149(7)of the CompaniesAct, 2013 and confirmedthattheysatisfythecriteriaofindependenceaslaiddowninsection149(6)oftheAct.

12.0 Related Party Transactions

Duringtheyear, therewerenorelatedpartytransactions,whichwasmaterialorsignificantandwhich could havepotential conflictwiththeinterestsoftheCorporation.

13.0 Risk Management Policy

BusinessRiskEvaluationandManagementisanon-goingprocesswithintheorganization.The Corporation has risk managementframework to identify,monitor andminimizerisks.

TheCorporationhasnow increased itsRiskFundto0.40%inplaceof0.35%tomitigateanyunforeseen lossarisingoutofbusinesstransactions underRawMaterialAssistanceSchemeagainstBankGuarantee.

This fund would be utilized to meet outany financial loss under the Raw MaterialAssistanceSchemeagainstBankGuaranteearising due to investment becomingunsecuredasperthelaiddownguidelines.


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14.0 Details of compliance with the requirements of DPE Guidelines on Corporate Governance

Therequirementsof theDPEGuidelinesonCorporateGovernanceforCPSEshavebeenduly complied by the Corporation. In thisregard,acertificatefromM/s.KumarWadhwa&Company,PracticingCompanySecretaries,confirming compliance with the conditionsas stipulated under DPE Guidelines onCorporateGovernanceisannexed.

15.0 Material changes and commitments affecting the financial position of the Company

There have been no material changes andcommitments other than disclosed in thereport,ifany,affectingthefinancialpositionoftheCompanywhichhaveoccurredbetweentheendofthefinancialyearoftheCompanytowhich thefinancial statements relateandthedateofthereport.


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Comments of Statutory Auditors & Management Replies thereto on the Accounts for the Financial Year 2017-18

S. No. COMMENTS OF STATUTORY AUDITORS MANAGEMENT`S REPLY1. Report on the Financial Statements

WehaveauditedtheaccompanyingfinancialstatementsofThe National Small Industries Corporation Limited (“the Corporation”), which comprises oftheBalanceSheetasat31st March, 2018,theStatementofProfitandLoss,theCashFlowStatement,theStatementofProfitandLoss(Commercial)andthe Statement of Income and Expenditure (Promotional) for the year thenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformationoftheCorporation,inwhichareincorporatedfinancialstatementsofHeadOfficeauditedbyusand63branchofficesincludingtechnicalcentersaudited by other independent auditors appointed by Comptroller &AuditorGeneralofIndia.

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2. Management’s Responsibility for the Financial Statements

The Corporation’s Board of Directors is responsible for thematters statedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancial position, financial performance and cash flows of the Corporationin accordance with the accounting principles generally accepted in India,including theAccountingStandardsspecifiedunderSection133of theAct,readwithRule7oftheCompanies(Accounts)Rules,2014.Thisresponsibilityalso includes maintenance of adequate accounting records in accordancewiththepreparationoftheActforsafeguardingtheassetsoftheCorporationand for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments andestimatesthatarereasonableandprudent;anddesign,implementationandmaintenance of adequate internal financial controls, that were operatingeffectively for ensuring the accuracy and completeness of the accountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

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3. Auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.We have taken into account the provisions of theAct, the accounting andauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.We conducted our audit in accordance with the Standards on AuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywith ethical requirements and plan and perform the audit to obtainreasonableassuranceaboutwhether thefinancialstatementsare free frommaterialmisstatement.Anaudit involvesperformingprocedures toobtainauditevidenceabout theamounts and the disclosures in the financial statements. The proceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisks of material misstatement of the financial statements, whether due tofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancial control relevant to the Corporation’s preparation of the financialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriate in thecircumstances.Anauditalso includesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCorporation’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.We believe that the audit evidence we have obtained is sufficient andappropriatetoprovideabasisforourqualifiedauditopiniononthefinancialstatements.

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4. Basis for Qualified Opinion

AttentionisinvitedtoNote19andParaNo.5(b)ofNote-35inrespectofthefrauddetectedduringfinancialyear2016-17relatedtoBankGuarantees(BGs)amountingto₹17,350lakhsatthreeoffices(namelyKolkata₹10,550lakhs,SaltLake₹6,300lakhsandNTSCHowrah₹500lakhs)oftheCorporationinWestBengalauditedbyotherIndependentAuditorandfurthertoitabovementionedBGsamounting to₹17,350 lakhs received fromUnitedBankof India (UBI)againstadvancesgiventothepartiesunderRawMaterialAssistancescheme(RMA)whichwereinvoked,remainunpaidbythebanktilldate.Managementhas considered the total outstanding balance of ₹17,057.38 lakhs as goodand fully recoverable against theseBGs and no provision has beenmadeas the report of Questioned Documents Examination Bureau (QDEB) andForwarding Report dated 4thAugust 2017 submitted in the court by CrimeInvestigationDepartment(CID)confirmthattheBGsheldbytheCorporationwereoriginal.Achargesheet, in thematter,hasalreadybeenfiledbyCIDWestBengal.TheMinistry ofMSME (TheAdministrativeMinistry ofNSIC)afterexaminationofthestatusofthecaseandfindingsoftheQDEBReport,has takenup thematterwith thedepartmentofFinancialServices,MinistryofFinance (TheAdministrativeMinistryofUnitedBankof India)asking thelater to impressuponthebanktohonourNSIC’srightful invocationofBankGuaranteesworth₹17350lakhstogetherwithaccruedinterest.Managementsignifiedthattheyareofthefirmopinionthattheamountisfullyrecoverableandaccordinglyconsideredgood.However, lookingintothematterwhichisdependent upon theultimate findingsby the competent agenciesand theiroutcome,independentauditorofabovebranchesexpressedtheirinabilitytoquantify theprovisionrequired.WeatHeadOffice level,havenoadditionaldocuments/information to disagree with the opinion of the branch auditor.Hence, we are also unable to comment on quantum of provision requiredagainstoutstandingbalanceof₹17,057.38lakhsasat31stMarch2018.

The outstanding dues arebacked by the original bankguarantees,asconfirmedbytheCIDinitsQDEBReport.Further, the case is beingtaken up with the Ministryof MSME and Ministry ofFinance for early resolutionof the matter betweenNSIC and UBI. Hence, theprovisions have not beenmadeinaccordancewiththepolicyoftheCorporation.

5. Qualified Opinion

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,exceptforthepossibleeffectsofthematterdescribedintheBasisforQualifiedOpinionparagraph, theaforesaidfinancialstatementsgive theinformationrequiredbytheActinthemannersorequiredandgiveatrueandfair view in conformitywith the accounting principles generally accepted inIndiaofthestateofaffairsoftheCorporationasat31stMarch2018,anditsprofitanditscashflowsfortheyearendedonthatdate.

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6. Emphasis of MatterWedrawattentiontothefollowingmattersintheNote-35tothefinancialstatements:a)Para-1 which, describes that the balances of Trade Receivables, Loans and

advances,Tradepayables,Deposits/EarnestMoney,Borrowersetc.aresubjecttoconfirmation/reconciliationinthefollowingcasesandconsequentialadjustments,ifany.

1) Debit Balances (₹inLakh)

S.No Particulars Total Confirmation not received

1 Tradereceivables(Marketing&Others) 16,122.73 823.27

2 Shorttermloans&Advances(excludingemployeesandstatutorydepositswithvarioustaxauthorities)

2,94,644.81 629.82

3 Long term loans & advances(Capital Advances and SecurityDeposits)

1,336.90 643.62

2) Credit Balances (₹inLakh)

S.No Particulars Total Confirmation not received

1 TradePayables 18,512.24 944.742 OtherCurrentLiabilities(Security

DepositPayable,EMD,AdvancefromRMABuyers,Amountpayableforprojects,AmountpayabletoRatingAgencies)

5,693.07 999.84

3 OtherLong-termLiabilities(SecurityDepositPayable,EMD) 517.78 115.39

b)Para-5(a)&para-5(d)ofnote-35regardingdetectionof forgedbankguaranteesof₹2,100 lakhs received from thepartiesunderRawMaterialAssistance (RMA)schemebythemanagement.Loansandadvancesoutstandingason31stMarch2018of₹1,920.43lakhsagainsttheforgedbankguaranteeshavebeenconsideredasdoubtfuland100%provisionhasbeenmade.ThematterwasreferredtoCentralBureauofInvestigation(CBI)forfurtherinvestigation.

c)Para-8regardingad-hocprovisiononaccountofPerformanceRelatedPay(PRP)fortheyear2017-2018amountingto₹505lakhs(Previousyear₹549.00lakhs)

d)Para-11regardingcreationofCorpusformedicalschemesfortheemployeesretiredpriorto1.1.2007andfortheemployeesretiredonorafter1.1.2007

e)Para- 12 regardingpay revisionofBoard level andbelowBoard level andnon-unionized supervisors of CPSEs w.e.f. 01.01.2017 which was approved by theMinistryon3rdMay2018.Currentyearprovisionof₹2328.11lakhs,(PreviousyearNIL)OurOpinionisnotmodifiedinrespectoftheabovematter.Other MatterWe did not audit the financial statements/information of 63 (Previous Year 63)Branch Offices & Technical Centers included in the financial statements of theCorporation,whosefinancialstatements/financialinformationreflecttotalassetsof₹3,42,254.90lakhsasat31stMarch,2018(₹3,37,934.90lakhsasat31stMarch,2017) and total revenues of ₹ 2,54,952.15 lakhs (PreviousYear ₹ 2,29,676.62lakhs) for theyearendedonthatdate,asconsidered in thefinancialstatements.Thefinancialstatements/informationof thesebrancheshavebeenauditedbytheindependent auditorswhose reports have been furnished to us, and our opinioninsofarasitrelatestotheamountsanddisclosuresincludedinrespectofthesebranches,isbasedsolelyonthereportofsuchindependentbranchauditors.

Ouropinionisnotqualifiedinrespectofthismatter.

The cases of non-confirmationof balances is very negligible,however,observationsnotedfornecessarycompliance.

.

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7. Report on Other Legal and Regulatory Requirements1. As required by Companies (Auditor’s Report) Order, 2016 (“theOrder”),

issuedbytheCentralGovernmentofIndiaintermsofSub-section(11)ofSection 143 of theAct,we give in the “AnnexureA” a statement on thematterspecifiedinparagraph3and4oftheorder,totheextentapplicable.

2. AsrequiredbySection143(3)oftheAct,wereport,totheextentapplicable,that:a. We have sought and, except for thematters described in theBasis

for Qualified Opinion paragraph, obtained all the information andexplanations which to the best of our knowledge and belief werenecessaryforthepurposesofouraudit.

b. ExceptforthepossibleeffectsofthematterdescribedintheBasisforQualifiedOpinion paragraph above, in our opinion, proper books ofaccountasrequiredbylawhavebeenkeptbytheCorporationsofarasitappearsfromourexaminationofthosebooksandproperreturnsadequate for thepurposesofouraudithavebeen received from thebranches&technicalcentersnotvisitedbyus.

c. Thereportsontheaccountsofthebranchoffices&technicalcentersoftheCorporationauditedunderSection143(8)oftheActbyindependentauditorshavebeensenttousandhavebeenproperlydealtwithbyusinpreparingthisreport.

d. The Balance Sheet, the Statement of Profit and Loss, the Statementof Profit and Loss (Commercial) and the statement of Income andExpenditureAccount(Promotional)theCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccountandwiththereturnsreceivedfromtheBranches&TechnicalCentersnotvisitedbyus.

e. ExceptforthepossibleeffectsofthematterdescribedintheBasisforQualified Opinion paragraph, in our opinion, the aforesaid financialstatements comply with the Accounting Standards specified underSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

f. The matter described in the Basis for Qualified Opinion paragraphabove,inouropinion,mayhaveanadverseeffectonthefunctioningof theCorporationwhich is linkedwithoutcomeof investigationandthemanagementhasbeenintheprocessoftakingsuitableactionforredressalofthesamesincelasttwoyear.

g. In our opinion and to the best of our information and according totheexplanationsgiven to us, theprovisionsof section164(2) of theAct shall not apply to theCorporation, being aGovernment of IndiaEnterpriseinviewofnotification[F.No.1/2/2014-CL-V]dated5thJune2015ofMinistryofCorporateAffairs.

h. With respect to theadequacyof the InternalFinancialControlsoverFinancialReportingoftheCorporationandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureB”.

i. WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

i. TheCorporationhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsfinancialstatements–ReferNote34and35tothefinancialstatements;

ii. TheCorporation did not have any long-term contracts includingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.

iii. TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCorporation.

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3. WithrespecttothereportpursuanttodirectionsissuedbytheComptrollerandAuditorGeneralofIndiau/s143(5)ofCompaniesAct,2013fortheyearended31stMarch2018onaccountsofHeadOfficeauditedbyusand63branchoffices& technical centersauditedbyother independentauditorsappointedbyComptroller&AuditorGeneralofIndia,refertoourseparateReportin“AnnexureC”.

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ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT

S.No. COMMENTS OF STATUTORY AUDITORS MANAGEMENT`S REPLY

(i) (a) TheCorporationhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationofthefixedassets

(b) Themanagementduringtheyearhasphysicallyverifiedalltheassetsandthereisaregularprogrammeofverification,which,inouropinion,is reasonable having regard to the size of theCorporation and thenatureofitsassets.Nomaterialdiscrepancieswerenoticedonsuchverification.Asregardsfixedassetsonlease,wehavebeeninformedthattherehasbeenasystemofphysicalverificationincaseofdefaultcases&inrespectofothers;verificationisdone,ifnecessary.Wehavebeeninformedthatnoseriousdiscrepancyhavebeennoticedonsuchphysicalverification.

(c) According to the information&explanationsgiven tousandon thebasis of our examination of the records of the corporation, the titledeedsofthefollowingimmovablepropertiesarenotheldinthenameofthecorporation: (₹inLakh)

S.No Particulars of the property Area As at

31/03/2018As at

31/03/2017

1 LandatTechnicalCentreHowrah 49.94acres 1.60* 1.60*

2 Flats at Branch OfficeMumbai 3660sqft. 5.87* 6.06*

*Figuresarewrittendownvalueasondate.

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(ii) As informed tous, in respectoffinishedgoods, rawmaterials,storeandspareparts,physicalverificationhasbeencarriedoutduringtheyearorattheendofyearbymanagement. Inouropinion, frequencyofverificationisreasonable.Nomaterialdiscrepanciesarenoticedonsuchverification.

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(iii) Accordingtotheinformationandexplanationsgiventous,theCorporationhasnotgrantedanyloans,securedorunsecuredtocompanies,firms,limitedliabilitypartnershiporotherpartiescoveredintheregistermaintainedu/s189oftheCompaniesAct,2013.Accordingly,theparagraphs3(iii)(a)and(b)oftheorderarenotapplicable.

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(iv) Inouropinionandaccordingtotheinformationandexplanationsgiventousduringthecourseofaudit,theCorporationhascompliedwiththeprovisionsofSection186oftheCompaniesAct,2013inrespectofinvestmentofthecorporation. Further, the corporation has not granted any loans and hasnotgivenanyguaranteesandsecurityundertheprovisionofsection185ofthecompaniesAct,2013;therebytheprovisionofthesaidsectionisnotapplicabletothecorporation.

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(v) Accordingtotheinformationandexplanationsgiventous,thecorporationhas not accepted any deposits from the public during the year withinthemeaning ofSection 73 to 76 or any other relevant provisions of theCompanies Act, 2013 and the rules framed thereunder. Therefore, theprovisionofclause3(v)oftheOrderisnotapplicabletotheCorporation.

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(vi) Aspertheinformationandexplanationsgiventous,themaintenanceofcostrecordshasnotbeenprescribedbytheCentralGovernment,undersection148(I)oftheCompaniesAct,2013,foranyproductoftheCorporation.

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(vii) (a) TheCorporationisgenerallyregularindepositingundisputedstatutoryduesincludingProvidentFund,Employee’sStateInsurance,IncomeTax,SalesTax,ServiceTax,CustomDuty,ExciseDuty,Valueaddedtax, cess and any other statutory dues, as applicable, with theappropriateauthorities.Accordingtotheinformationandexplanationsgiventous,therewerenoundisputedamountspayableinrespectofabovestatutoryduesoutstandingon31stMarch,2018foraperiodofmorethan6monthsfromthedatetheybecamepayable.

(b) According to the information and explanations given to us, therearenoduesofSalesTax, IncomeTax,CustomsDuty,ExciseDuty,ServiceTax,ValueaddedTax,Cess,whichhavenotbeendepositedonaccountofanydisputeinvariousoffices,oftheCorporationasawholeason31stMarch,2018,exceptthefollowings:

S. No.

Name of Statute Nature of Dues

Amount(₹ in

Lakhs)

Period to which the amount relates

Forum where the Dispute is Pending

1 SalesTaxAct CentralSalesTax 2.10 1990-91 CTO,GandhiNagarCircle,

Hyderabad

2 SalesTaxAct CentralSalesTax 4.14 1993-94

CTO,GandhiNagarCircle,Hyderabad


Hyderabad


Hyderabad

5 CSTAct,1956 CentralSalesTax 0.49 2009-10 AppellateDeputyCommissioner

CT(III),Chennai


CT(III),Chennai


CT(III),Chennai

8 ServiceTax ServiceTax 3.29 2009-10 TheCommissionerofServiceTax,Chennai

9 ServiceTax ServiceTax 1.42 2005-06to2009-10

CommissionerofCentralexcise(Appeals)Madurai

10 ServiceTax ServiceTax 12.26 2011-12appealagainsttheorderis

pendingbeforecommissionerofcentralexcise

11 CommercialTax CommercialTax 13.96 2012-13&

2013-14JointCommissioner,Commercial

Tax,Orissa

12 SalesTax VAT 2.58 2012-13TheDept.ofTradeandTaxes,Govt.ofNCTofDelhi,Delhi

13 ServiceTax ServiceTax 9.56 2014-15 TheCommissionerofServiceTax,Kanpur

14 IncomeTaxAct

IncomeTaxregulardemand 32.93 2012-13 ITAT,NewDelhi

15 IncomeTaxAct

IncomeTaxregulardemand 37.61 2013-14 CIT(Appeals)–IX,NewDelhi

16 IncomeTaxAct


17 IncomeTaxAct

IncomeTaxPenaltyDemand 27.73 2012-13 CIT(Appeals)–IX,NewDelhi

18 IncomeTaxAct


19. SalesTax SalesTax 45.04 2012-13to2013-14

JointCommissionerofSalesTax,Cuttack.

20 SalesTax SalesTax 18.15 2014-15 JointCommissionerofSalesTax,Cuttack.

21 SalesTax SalesTax 18.00 2012-13to2015-16

JointCommissionerofSalesTax,CuttackRange-1

Total 550.39

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(viii) Based on our Audit procedures and according to the information andexplanationsgiven tous,weareof theopinion that theCorporationhasnot defaulted in repayment of dues to a financial institutions, banks orGovernment.Corporationhasnotissuedanydebentures.

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(ix) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecorporationhasnotraisedmoneysbywayofinitialpublicofferorfurther public offer (including debt instruments) and the term loanswereappliedforthepurposeforwhichtheloanswereobtained.

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(x) According to the information and explanations given to us, nofraud by the corporation or any fraud on the corporation by itsofficers or employees has been noticed or reported during the year(except the cases referred to in Para-5 of Note 35 regarding detectionof fraudsduring the financial year 2016-17 related toBankGuarantees(BGs)amounting to₹17,350 lakhs (Outstandingadvancesof₹17,057.38lakhsasat31stMarch2017)receivedfromthepartiesunderRawMaterialAssistanceSchemewhichwereinvoked,remainunpaidbythebanktilldate.Noprovisionhadbeenmadeforthat.Further,fraudrelatedtodetectionofforgedbankguaranteeshavingoutstandingbalanceof₹1,920.30lakhs(netofadjustingamount received inMay2017)againstBGsvalueof₹2,100lakhsason31stMarch2017hadbeenconsideredasdoubtfuland100%provisionwasmadeinthepreviousyearitself.AllthemattershadalsobeenreferredtoCBI/CIDforfurtherinvestigations.)

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(xi) Inouropinionandaccordingtotheinformationandexplanationsgiventous,GovernmentCompaniesvideMCA’snotificationpublished inGazetteDt.5thJune2015,areexemptsfromtheapplicabilityofprovisionsofsection197 read with Schedule V to the CompaniesAct regarding managerialremuneration.

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(xii) Inouropinionandaccordingtotheinformationandexplanationsgiventous, the corporation is not aNidhiCompany.Therefore, theprovisionsofclause4(xii)oftheOrderarenotapplicabletotheCorporation.

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(xiii) In termsof the informationandexplanations sought byusandgivenbythemanagementandthebooksandrecordsexaminedbyusinthenormalcourseofauditandtothebestofourknowledgeandbelief,westatethattherearenotransactionswiththerelatedpartiesexceptremunerationpaidtokeymanagementpersonnel.Thedetailsofwhichhavebeendisclosedinthefinancialstatementsasrequiredbytheapplicableaccountingstandards.

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(xiv) Accordingtotheinformationandexplanationsgiventousbythemanagementandthebooksandrecordsexaminedbyusinthenormalcourseofauditandtothebestofourknowledgeandbelief,westatethatthecorporationhasnotmadeanypreferentialallotmentorprivateplacementsofsharesorfullyorpartlyconvertibledebenturesduringtheyear.

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(xv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,westatethattheCorporationhasnotenteredintonon-cashtransactionswith directors or persons connectedwith him. Therefore clause 3(xv) ofthe Companies (Auditor’s Report) Order, 2016 is not applicable to theCorporation.

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(xvi) Thecorporationisregisteredundersection45-IAoftheReserveBankofIndiaAct1934,theCorporationhasbeengrantedCertificateofRegistrationno.N.14.03090dated29.12.2005tocarryonthebusinessofanon-bankingfinancialcompany.

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ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORTReport on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”).

S. No. COMMENTS OF STATUTORY AUDITORS MANAGEMENT`S REPLY

Wehaveauditedthe internalfinancialcontrolsoverfinancialreportingof THE NATIONAL SMALL INDUSTRIES CORPORARTION LIMITED (“theCorporation”) as ofMarch 31, 2018 in conjunctionwith our audit of thefinancialstatementsoftheCorporationfortheyearendedonthatdate.

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(i) Management’s Responsibility for Internal Financial ControlsThe Corporation’s management is responsible for establishing andmaintaining internal financial controls based on the internal control overfinancial reportingcriteriaestablishedby theCorporationconsidering theessential componentsof internalcontrolstated in theGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconduct of its business, including adherence to Corporation’s policies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationof reliablefinancial information,as requiredunder theCompaniesAct,2013.

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(ii) Auditors’ ResponsibilityOur responsibility is to express an opinion on theCorporation's internalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing, issuedby ICAIanddeemed tobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControls and, both issued by the Institute of CharteredAccountants ofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwas established andmaintained and if such controls operatedeffectivelyinallmaterialrespects.Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingand their operating effectiveness.Our audit of internal financial controlsover financial reporting included obtaining an understanding of internalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweakness exists, and testing and evaluating the design and operatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our qualified audit opinion on theCorporation’sinternalfinancialcontrolssystemoverfinancialreporting.

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(iii) Meaning of Internal Financial Controls over Financial ReportingA Corporation's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding thereliabilityoffinancialreportingandthepreparationoffinancialstatementsfor external purposes in accordancewith generally accepted accountingprinciples.ACorporation'sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceof records that, in reasonable detail, accurately and fairly reflect thetransactionsanddispositionsoftheassetsoftheCorporation;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheCorporationare beingmade only in accordance with authorisations ofmanagementand directors of theCorporation; and (3) provide reasonable assuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionoftheCorporation'sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

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(iv) Inherent Limitations of Internal Financial Controls over Financial ReportingBecause of the inherent limitations of internal financial controls overfinancial reporting, including the possibility of collusion or impropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmay become inadequate because of changes in conditions, or that thedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

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(v) Qualified OpinionAccording to the informationandexplanationsgiven tousandbasedonouraudit,thefollowingmaterialweaknesseshavebeenidentifiedasat31stMarch2018

1. AttentionisinvitedtoNote19andParaNo.5(b)ofNote-35inrespectofthefrauddetectedduringfinancialyear2016-17relatedtoBankGuarantees(BGs)atsomeoftheofficesoftheCorporationinWestBengalandfurtherto it total BGs amounting to ₹17,350 lakhs received fromUnited BankofIndia(UBI)againstadvancesgiventothepartiesunderRawMaterialAssistance scheme (RMA) which were invoked, remain unpaid by thebanktilldate.Managementhasconsideredthetotaloutstandingbalanceof ₹17,057.38 lakhs as good and fully recoverable against these BGsandnoprovisionhasbeenmadeasthereportofQuestionedDocumentsExaminationBureau(QDEB)andForwardingReportdated4thAugust2017submitted in thecourtbyCrime InvestigationDepartment (CID)confirmthattheBGsheldbytheCorporationwereoriginal.Achargesheet,inthematter,hasalreadybeenfiledbyCIDWestBengal.TheministryofMSME(TheAdministrativeMinistryofNSIC)afterexaminationofthestatusofthecaseandfindingsoftheQDEBReport,hastakenupthematterwiththedepartmentofFinancialServices,MinistryofFinance(TheAdministrativeMinistryofUnitedBankofIndia)askingthelatertoimpressuponthebankto honourNSIC’s rightful invocation ofBankGuaranteesworth ₹17350Lakhstogetherwithaccruedinterest.Managementsignifiedthattheyareof thefirmopinion that theamount is fully recoverableandaccordinglyconsidered good.However, looking into thematterwhich is dependentupontheultimatefindingsbythecompetentagenciesandtheiroutcome,we are unable to comment on quantum of provision required, if any,againstoutstandingbalanceof₹17,057.38lakhsasat31stMarch2018.

2. AttentionisdrawntoPara-5(a)&para-5(d)ofNote-35regardingdetectionofforgedbankguaranteesof₹2,100lakhsreceivedfromthepartiesunderRawMaterialAssistance(RMA)schemebythemanagement.Loansandadvancesoutstandingason31stMarch2018of₹1,920.43lakhsagainsttheforgedbankguaranteeshavebeenconsideredasdoubtfuland100%provisionhasbeenmade.ThematterwasreferredtoCentralBureauofInvestigation(CBI)forfurtherinvestigation.

3. Theprocedureforreviewoffinancialstatements/accountsoftheborrower,inspectionoftheunits,periodicalconfirmationofbalances,renewaloflimitsanctioned to the units and review of outstanding balances exceeding360dayson timelybasisunderRawMaterialAssistanceschemewerenot effectively implemented/monitored. However, the entire procedurehasbeenreviewedandrevisedbythemanagementinthelightoftheseweaknesses toensure thateffectivestepsare inplaceand thevariouschecks/controlsprovided,areoperatingeffectively.Inourview,theInternalFinancialControlarerequiredtobemonitoredandreviewedperiodically.

4. InternalcontrolneedsfurtherstrengtheninginrespectofimplementationofriskmanagementandsystemstoensurecontinuedimplementationofCorporation’s riskmanagement policy and strategy and documentationthereof,criticalreviewandrefreshprocessonanongoingbasis.Moreover,to avoid any manual intervention in the preparation and reporting offinancials,anintegratedaccountingpackageneedstobeimplemented.

5. Budgeting needs further improvement. No budget was prepared byH.R.Division for recruitments throughopenmarketbasedon thecadre/ post wise vacancies available, which should be prepared by the topmanagementatthecommencementofFinancialYear.

The outstanding dues arebacked by the original bankguarantees, as confirmed bythe CID in its QDEB Report.Further, the case is beingtaken up with the Ministry ofMSMEandMinistryofFinancefor early resolution of thematterbetweenNSICandUBI.Hence,theprovisionshavenotbeenmadeinaccordancewiththepolicyoftheCorporation.

Nocommentsrequired.

Observationsnotedfornecessarycompliance.

Observationsnotedfornecessarycompliance

Observationsnotedfornecessarycompliance


66

(vi) In our opinion, to the best of our information and according to theexplanations given to us, except for the effects/possible effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the Corporation has maintained, in all materialrespects,adequate internalfinancialcontrolsoverfinancial reportingandsuch internal financial controls over financial reporting were operatingeffectivelyasofMarch31,2018basedon“theinternalcontroloverfinancialreportingcriteriaestablishedbytheCorporationconsideringtheessentialcomponents of internal control stated in theGuidanceNote onAudit ofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia”.

NoCommentsRequired


67

CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE

To

TheMembersThe National Small Industries Corporation Limited

WehaveexaminedthecomplianceofconditionsofCorporateGovernanceofThe National Small Industries Corporation Limited,fortheyearended31stMarch,2018asstipulatedintheGuidelinesonCorporateGovernance forCentralPublicSectorEnterprises (CPSEs) issuedbyMinistryofHeavy IndustriesandPublicEnterprises,DepartmentofPublicEnterprises,GovernmentofIndia.

Inouropinionandtothebestofour informationandaccordingto theexplanationsgiventousandtherepresentationsmadebytheDirectorsandtheManagement,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedinthesaidGuidelines.

The compliance of conditions of Corporate Governance is the responsibility of the Management. OurexaminationwaslimitedtoareviewoftheproceduresandimplementationsthereofadoptedbytheCompanyforensuringcompliancewiththeconditionsofCorporateGovernanceasstipulatedintheGuidelinesonCorporateGovernanceforCentralPublicSectorEnterprises(CPSEs)issuedbyMinistryofHeavyIndustriesandPublicEnterprises,DepartmentofPublicEnterprises,GovernmentofIndia.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany

WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynoraboutefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

For Kumar Wadhwa & CompanyCompanySecretaries

Sd/-

PCS Sanjay KumarManagingPartner

M.No.:9211C.P.No.:7027

Place:NewDelhiDate:8thMay,2018


68

COMMENTS OF THE COMPRTOLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF THE NATIONAL SMALL INDUSTRIES CORPORATION LTD. FOR THE YEAR ENDED 31ST MARCH, 2018

ThepreparationoffinancialstatementsofTHENATIONALSMALLINDUSTIRESCORPORATIONLTD.fortheyearended31March,2018inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act)istheresponsibilityofthemanagementoftheCompany.ThestatutoryauditorappointedbytheComptrollerandAuditorGeneralofIndiaundersection139(5)oftheActisresponsibleforexpressingopiniononthefinancialstatementsundersection143oftheActbasedonindependentauditinaccordancewiththestandardsonauditingprescribedundersection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated3rdAugust,2018.

I, onbehalfof theComptrollerandAuditorGeneralof India,haveconductedasupplementaryauditofthe financial statements of THE NATIONAL SMALL INDUSTRIES CORPORATION LTD. for the yearended31March,2018undersection143(6) (a)of theAct.Thissupplementaryaudithasbeencarriedout independentlywithoutaccess to theworkingpapersof thestatutoryauditorand is limitedprimarilyto inquiriesof thestatutoryauditorandcompanypersonnelandaselectiveexaminationofsomeof theaccountingrecords.

Onthebasisofmysupplementaryauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtostatutoryauditors’reportundersection143(6(b)oftheAct.

ForandonbehalfoftheComptrollerandAuditorGeneralofIndia

Sd/-(NandanaMunshi)DirectorGeneral

O/oPrincipalDirectorofCommercialAuditPlace:NewDelhi &Ex-officioMemberAuditBoard-IDated:19thSeptember,2018 NewDelhi


69

To

The Members of The National Small IndustriesCorporationLimited

Report on the Financial Statements

We have audited the accompanying financialstatements of The National Small Industries Corporation Limited (“the Corporation”),whichcomprisesoftheBalanceSheetasat31st March, 2018, theStatementofProfitandLoss, theCashFlow Statement, the Statement of Profit andLoss (Commercial) and theStatement of Incomeand Expenditure (Promotional) for the year thenended, and a summary of significant accountingpolicies and other explanatory information of theCorporation, in which are incorporated financialstatements of HeadOffice audited by us and 63branchoffices including technical centersauditedby other independent auditors appointed byComptroller&AuditorGeneralofIndia.

Management’s Responsibility for the Financial Statements

TheCorporation’sBoardofDirectorsisresponsiblefor the matters stated in Section 134(5) of theCompanies Act, 2013 (“the Act”) with respect tothepreparationof thesefinancial statements thatgivea trueand fair viewof thefinancialposition,financial performance and cash flows of theCorporation in accordance with the accountingprinciples generally accepted in India, includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts) Rules, 2014. This responsibility alsoincludes maintenance of adequate accountingrecords inaccordancewith thepreparationof theActforsafeguardingtheassetsoftheCorporationand for preventing and detecting frauds andother irregularities; selection and application ofappropriateaccountingpolicies;makingjudgmentsand estimates that are reasonable and prudent;and design, implementation and maintenanceof adequate internal financial controls, that wereoperatingeffectivelyforensuringtheaccuracyandcompletenessof theaccounting records, relevanttothepreparationandpresentationofthefinancialstatements thatgivea trueand fairviewandare

free from material misstatement, whether due tofraudorerror.

Auditor’s Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

Wehave taken intoaccount theprovisionsof theAct, the accounting and auditing standards andmatters which are required to be included in theauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

We conducted our audit in accordance with theStandards on Auditing specified under Section143(10) of theAct.ThoseStandards require thatwecomplywithethicalrequirementsandplanandperformtheaudit toobtainreasonableassuranceabout whether the financial statements are freefrommaterialmisstatement.

An audit involves performing procedures toobtain audit evidence about the amounts andthe disclosures in the financial statements. Theprocedures selected depend on the auditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementof thefinancialstatements,whether due to fraud or error. In making thoserisk assessments, the auditor considers internalfinancial control relevant to the Corporation’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.Anauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedand the reasonablenessof the accounting estimates made by theCorporation’sDirectors,aswellasevaluating theoverallpresentationofthefinancialstatements.

We believe that the audit evidence we haveobtainedissufficientandappropriatetoprovideabasisforourqualifiedauditopiniononthefinancialstatements.

Basis for Qualified Opinion

Attentionis invitedtoNote19andParaNo.5(b)ofNote-35inrespectofthefrauddetectedduringfinancialyear2016-17relatedtoBankGuarantees

INDEPENDENT AUDITORS’ REPORT


70

(BGs) amounting to ₹ 17,350 Lakhs at threeoffices(namelyKolkata₹10,550Lakhs,SaltLake₹ 6,300 Lakhs and NTSCHowrah ₹ 500 Lakhs)of the Corporation in West Bengal audited byother IndependentAuditorand further to it abovementionedBGs amounting to ₹17,350 lakhs rec-eived from United Bank of India (UBI) againstadvancesgiventothepartiesunderRawMaterialAssistance scheme (RMA) which were invoked,remainunpaidby thebank tilldate.Managementhas considered the total outstanding balance of₹17,057.38 lakhs as good and fully recoverableagainst these BGs and no provision has beenmade as the report of Questioned DocumentsExamination Bureau (QDEB) and ForwardingReport dated 4th August 2017 submitted in thecourt by Crime Investigation Department (CID)confirmthattheBGsheldbytheCorporationwereoriginal.Achargesheet,inthematter,hasalreadybeen filed by CID West Bengal. The Ministry ofMSME(TheAdministrativeMinistryofNSIC)afterexaminationofthestatusofthecaseandfindingsoftheQDEBReport,hastakenupthematterwiththe department of Financial Services, Ministryof Finance (TheAdministrativeMinistry ofUnitedBank of India) asking the later to impress uponthe bank to honour NSIC’s rightful invocation ofBank Guarantees worth ₹ 17350 Lakhs togetherwith accrued interest. Management signified thattheyareofthefirmopinionthattheamountisfullyrecoverable and accordingly considered good.However,lookingintothematterwhichisdependentupon the ultimate findings by the competentagencies and their outcome, independent auditorof above branches expressed their inability toquantifytheprovisionrequired.WeatHeadOfficelevel, have no additional documents/informationtodisagreewiththeopinionofthebranchauditor.Hence,wearealsounabletocommentonquantumofprovision requiredagainstoutstandingbalanceof₹17,057.38lakhsasat31stMarch2018.

Qualified Opinion

Inouropinionandtothebestofourinformationandaccording to theexplanationsgiven tous,exceptfor the possible effects of the matter describedin theBasis forQualifiedOpinion paragraph, theaforesaidfinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgive a true and fair view in conformity with theaccounting principles generally accepted in India

ofthestateofaffairsoftheCorporationasat31stMarch2018,anditsprofitanditscashflowsfortheyearendedonthatdate.

Emphasis of Matter

Wedrawattention to the followingmatters in theNote-35tothefinancialstatements:

(a) Para-1 which, describes that the balancesofTradeReceivables,Loansandadvances,Trade payables, Deposits/ Earnest Money,Borrowers etc. are subject to confirmation/reconciliation in the following cases andconsequentialadjustments,ifany.

1)DebitBalances(₹inLakh)

S. No. Particular Total Confirmation

not received


2

Shorttermloans&Advances(excludingemployeesandstatutorydepositswithvarioustaxauthorities)

2,94,644.81 629.82

3

Longtermloans&advances(CapitalAdvancesandSecurityDeposits)

1,336.90 643.62

2)CreditBalances(₹inLakh)

S. No. Particular Total Confirmation

not received

1 TradePayables 18,512.24 944.74

2

OtherCurrentLiabilities(SecurityDepositPayable,EMD,AdvancefromRMABuyers,Amountpayableforprojects,AmountpayabletoRatingAgencies)

5,693.07 999.84

3OtherLong-termLiabilities(SecurityDepositPayable,EMD)

517.78 115.39

(b) Para-5(a)&para-5(d)ofnote-35regardingdetection of forged bank guarantees of₹2,100 lakhs received from the partiesunder Raw Material Assistance (RMA)scheme by the management. Loans and


71

advances outstanding as on 31st March2018of₹1,920.43 lakhsagainst the forgedbankguaranteeshavebeenconsideredasdoubtfuland100%provisionhasbeenmade.ThematterwasreferredtoCentralBureauofInvestigation(CBI)forfurtherinvestigation.

(c) Para -8 regarding ad-hoc provision onaccountofPerformanceRelatedPay(PRP)for the year 2017-2018 amounting to ₹505lakhs(Previousyear₹549.00lakhs)

(d) Para-11 regarding creation of Corpus formedicalschemesfor theemployeesretiredprior to 1.1.2007 and for the employeesretiredonorafter1.1.2007

(e) Para-12regardingpayrevisionofBoardleveland below Board level and non-unionizedsupervisors of CPSEs w.e.f. 01.01.2017which was approved by the Ministry on3rd May 2018. Current year provision of ₹2328.11lakhs,(PreviousyearNIL)

OurOpinion isnotmodified inrespectof theabovematter.

Other Matter

We did not audit the financial statements/informationof63(PreviousYear63)BranchOffices& Technical Centers included in the financialstatements of the Corporation, whose financialstatements/financialinformationreflecttotalassetsof ₹ 3,42,254.90 lakhs as at 31st March, 2018(₹3,37,934.90lakhsasat31stMarch,2017)andtotal revenues of ₹ 2,54,952.15 lakhs (PreviousYear₹2,29,676.62lakhs)fortheyearendedonthatdate,asconsideredinthefinancialstatements.Thefinancialstatements/informationofthesebrancheshave been audited by the independent auditorswhosereportshavebeenfurnishedtous,andouropinion inso faras it relates to theamountsanddisclosuresincludedinrespectofthesebranches,isbasedsolelyonthereportofsuchindependentbranchauditors.

Our opinion is not qualified in respect of thismatter.

Report on Other Legal and Regulatory Requirements

1. As required by Companies (Auditor’sReport)Order,2016(“theOrder”),issuedbytheCentralGovernmentofIndiaintermsofSub-section (11)ofSection143of theAct,wegiveinthe“AnnexureA”astatementonthematterspecifiedinparagraph3and4oftheorder,totheextentapplicable.

2. AsrequiredbySection143(3)oftheAct,wereport,totheextentapplicable,that:

a. We have sought and, except for thematters described in the Basis forQualifiedOpinionparagraph, obtainedall the information and explanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.

b. Except for the possible effects ofthe matter described in the Basis forQualifiedOpinionparagraphabove, inour opinion, proper books of accountasrequiredby lawhavebeenkeptbythe Corporation so far as it appearsfrom our examination of those booksand proper returns adequate for thepurposes of our audit have beenreceivedfromthebranches&technicalcentersnotvisitedbyus.

c. The reports on the accounts of thebranchoffices&technicalcentersoftheCorporationauditedunderSection143(8)of theActby independentauditorshave been sent to us and have beenproperly dealt with by us in preparingthisreport.

d. The Balance Sheet, the Statementof Profit and Loss, the Statement ofProfit and Loss (Commercial) and thestatement of Income and ExpenditureAccount (Promotional) the Cash FlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount


72

and with the returns received fromtheBranches&TechnicalCentersnotvisitedbyus.

e. Except for the possible effects ofthe matter described in the Basisfor Qualified Opinion paragraph, inour opinion, the aforesaid financialstatementscomplywiththeAccountingStandards specified under Section133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

f. Thematter described in the Basis forQualifiedOpinionparagraphabove, inouropinion,mayhaveanadverseeffecton the functioning of the Corporationwhich is linked with outcome ofinvestigationandthemanagementhasbeen in theprocessof takingsuitableaction for redressalof thesamesincelasttwoyear.

g. In our opinion and to the best of ourinformation and according to theexplanationsgiventous,theprovisionsof section 164(2) of theAct shall notapply to the Corporation, being aGovernment of India Enterprise inviewofnotification[F.No.1/2/2014-CL-V] dated 5th June 2015 ofMinistry ofCorporateAffairs.

h. With respect to the adequacy ofthe Internal Financial Controls overFinancialReportingof theCorporationandtheoperatingeffectivenessofsuch

controls,refertoourseparateReportin“AnnexureB”.

i. With respect to the other matters tobe included in the Auditor’s Reportin accordance with Rule 11 of theCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofour information and according to theexplanationsgiventous:

i. TheCorporationhasdisclosedtheimpactofpendinglitigationsonitsfinancial position in its financialstatements–ReferNote34and35tothefinancialstatements;

ii. The Corporation did not haveany long-term contracts includingderivativecontractsforwhichtherewere any material foreseeablelosses.

iii. Therewerenoamountswhichwererequired to be transferred to theInvestorEducationandProtectionFundbytheCorporation.

3. With respect to the report pursuant todirections issued by the Comptrollerand Auditor General of India u/s 143(5)of Companies Act, 2013 for the yearended 31st March 2018 on accounts ofHead Office audited by us and 63 branchoffices & technical centers audited byother independent auditors appointed byComptroller&AuditorGeneralofIndia,refertoourseparateReportin“AnnexureC”.

For K P M C & AssociatesCharteredAccountants

Firm’sReg.No:005359C

(CA. Pankaj Kumar)Place:NewDelhi PartnerDate:3rdAugust2018 M.No:073291


73

Referred to in our Report of even date on theAccounts of The National Small IndustriesCorporation Limited for the year ended on 31stMarch2018.

(i) a The Corporation has maintained properrecords showing full particulars includingquantitativedetailsandsituationofthefixedassets

b. The management during the year hasphysicallyverifiedalltheassetsandthereisa regular programme of verification, which,inouropinion, is reasonablehaving regardtothesizeoftheCorporationandthenatureofitsassets.Nomaterialdiscrepancieswerenoticedonsuchverification.Asregardsfixedassets on lease, we have been informedthat there has been a system of physicalverification in case of default cases & inrespect of others; verification is done, ifnecessary.Wehavebeen informed thatnoserious discrepancy have been noticed onsuchphysicalverification.

c Accordingtotheinformation&explanationsgiventousandonthebasisofourexaminationof the records of the corporation, the titledeedsofthefollowingimmovablepropertiesarenotheldinthenameofthecorporation:

(₹inLakhs)

S. No.

Particulars of the property Area As at

31/03/2018As at

31/03/2017

1 LandatTechnicalCentreHowrah

49.94acres 1.60 1.60

2 FlatsatBranchOfficeMumbai

3660sqft. 5.87* 6.06*

*Figuresarewrittendownvalueasondate.

(ii) Asinformedtous,inrespectoffinishedgoods,rawmaterials,storeandspareparts,physicalverificationhasbeencarriedout during theyearorat theendofyearbymanagement.In our opinion, frequency of verification isreasonable. No material discrepancies arenoticedonsuchverification.

(iii) Accordingtotheinformationandexplanationsgiven to us, the Corporation has notgrantedanyloans,securedorunsecuredtocompanies,firms,limitedliabilitypartnershipor other parties covered in the registermaintained u/s 189 of the CompaniesAct,2013.Accordingly, the paragraphs 3(iii) (a)and(b)oftheorderarenotapplicable.

(iv) In our opinion and according to theinformation and explanations given to usduring the course of audit, theCorporationhascompliedwith theprovisionsofSection186of theCompaniesAct,2013 in respectofinvestmentofthecorporation.Further,thecorporation has not granted any loans andhas not given any guarantees and securityunder the provision of section 185 of thecompaniesAct,2013; thereby theprovisionof the said section is not applicable to thecorporation.

(v) Accordingtotheinformationandexplanationsgiventous,thecorporationhasnotacceptedanydepositsfromthepublicduringtheyearwithinthemeaningofSection73to76oranyother relevant provisionsof theCompaniesAct,2013and the rules framed thereunder.Therefore,theprovisionofclause3(v)oftheOrderisnotapplicabletotheCorporation.

(vi) As per the information and explanationsgiventous,themaintenanceofcostrecordshas not been prescribed by the CentralGovernment, under section 148(I) of theCompaniesAct,2013,foranyproductoftheCorporation.

(vii) (a) The Corporation is generally regularin depositing undisputed statutory duesincludingProvidentFund,Employee’sState Insurance, Income Tax, Sales Tax,ServiceTax,CustomDuty,ExciseDuty,Valueadded tax, Cess and any other statutorydues, as applicable, with the appropriateauthorities. According to the informationandexplanationsgiventous,therewerenoundisputed amounts payable in respect of

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT


74

above statutory dues outstanding on 31stMarch, 2018 for a period of more than 6monthsfromthedatetheybecamepayable.

(b) According to the information andexplanationsgiventous,therearenodues

of Sales Tax, Income Tax, Customs Duty,ExciseDuty,ServiceTax,ValueaddedTax,Cess, which have not been deposited onaccountofanydisputeinvariousoffices,oftheCorporationasawholeason31stMarch2018,exceptthefollowings:

S. No. Name of Statute Nature of Dues

Amount(₹ in

Lakhs)

Period to which the amount relates

Forum where the Dispute is Pending


Hyderabad

2 SalesTaxAct CentralSalesTax 4.14 1993-94

CTO,GandhiNagarCircle,Hyderabad


Hyderabad


Hyderabad


CT(III),Chennai


CT(III),Chennai


CT(III),Chennai

8 ServiceTax ServiceTax 3.29 2009-10 TheCommissionerofServiceTax,Chennai

9 ServiceTax ServiceTax 1.42 2005-06to2009-10

CommissionerofCentralexcise(Appeals)Madurai

10 ServiceTax ServiceTax 12.26 2011-12appealagainsttheorderis

pendingbeforecommissionerofcentralexcise

11 CommercialTax CommercialTax 13.96 2012-13&

2013-14JointCommissioner,Commercial

Tax,Orissa

12 SalesTax VAT 2.58 2012-13TheDept.ofTradeandTaxes,Govt.ofNCTofDelhi,Delhi

13 ServiceTax ServiceTax 9.56 2014-15 TheCommissionerofServiceTax,Kanpur

14 IncomeTaxAct

IncomeTaxregulardemand 32.93 2012-13 ITAT,NewDelhi

15 IncomeTaxAct


16 IncomeTaxAct


17 IncomeTaxAct



75

18 IncomeTaxAct



JointCommissionerofSalesTax,Cuttack.

20 SalesTax SalesTax 18.15 2014-15 JointCommissionerofSalesTax,Cuttack.


JointCommissionerofSalesTax,CuttackRange-1

Total 550.39

(viii) BasedonourAuditproceduresandaccordingtotheinformationandexplanationsgiventous,weareoftheopinionthattheCorporationhasnotdefaultedinrepaymentofduestoafinancial institutions, banks orGovernment.Corporationhasnotissuedanydebentures.

(ix) In our opinion and according to theinformationandexplanationsgiventous,thecorporation has not raisedmoneys bywayof initial public offer or further public offer(including debt instruments) and the termloanswereappliedforthepurposeforwhichtheloanswereobtained.

(x) According to the information andexplanations given to us, no fraud by thecorporationorany fraudon thecorporationby its officers or employees has beennoticed or reported during the year(except the cases referred to in Para-5 ofNote35regardingdetectionoffraudsduringthefinancial year2016-17 related toBankGuarantees (BGs) amounting to ₹17,350lakhs(Outstandingadvancesof₹17,057.38lakhsasat31stMarch2017)receivedfromthe parties under Raw Material AssistanceSchemewhichwereinvoked,remainunpaidbythebanktilldate.Noprovisionhadbeenmade for that. Further, fraud related todetectionof forgedbankguaranteeshavingoutstandingbalanceof₹1,920.30lakhs(netof adjusting amount received inMay2017)against BGs value of ₹2,100 lakhs as on31st March 2017 had been considered asdoubtful and 100% provision was made inthepreviousyear itself.All themattershadalso been referred to CBI/CID for furtherinvestigations.)

(xi) Inouropinionandaccordingtotheinformationand explanations given to us, GovernmentCompaniesvideMCA’snotificationpublishedinGazetteDt. 5th June2015, are exemptsfromtheapplicabilityofprovisionsofsection197readwithScheduleVtotheCompaniesActregardingmanagerialremuneration.

(xii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecorporationis not a Nidhi Company. Therefore, theprovisionsofclause4 (xii)of theOrderarenotapplicabletotheCorporation.

(xiii) Intermsoftheinformationandexplanationssoughtbyusandgivenbythemanagementand the books and records examined byus in thenormalcourseofauditand to thebest of our knowledge and belief, we statethat there are no transactions with therelated parties except remuneration paid tokeymanagement personnel. The details ofwhich have been disclosed in the financialstatements as required by the applicableaccountingstandards.

(xiv) Accordingtotheinformationandexplanationsgiven to us by the management and thebooks and records examined by us in thenormal course of audit and to the best ofourknowledgeandbelief,westate that thecorporation has not made any preferentialallotmentorprivateplacementsofsharesorfully or partly convertibledebenturesduringtheyear.

(xv) Inouropinionandaccordingtotheinformationandexplanationsgiven tous,westate thatthe Corporation has not entered into non-cash transactions with directors or persons


76

connectedwithhimandhenceprovisionsofsection192oftheCompaniesAct,2013arenotapplicabletotheCorporation.

(xvi) The corporation is registeredunder section

45-IAoftheReserveBankofIndiaAct1934,theCorporationhasbeengrantedCertificateof Registration no. N.14.03090 dated29.12.2005tocarryonthebusinessofanon-bankingfinancialcompany.

For K P M C & AssociatesCharteredAccountantsFirm’sReg.No:005359c

(CAPankajKumar)Place:NewDelhi PartnerDate:03/08/2018 M.No:073291


77

We have audited the internal financial controlsoverfinancialreportingof THE NATIONAL SMALL INDUSTRIES CORPORARTION LIMITED (“theCorporation”) asofMarch31,2018inconjunctionwith our audit of the financial statements of theCorporationfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

The Corporation’s management is responsiblefor establishing andmaintaining internal financialcontrolsbasedontheinternalcontroloverfinancialreporting criteria established by the Corporationconsidering the essential components of internalcontrol stated in the Guidance Note on Audit ofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia. These responsibilities include the design,implementation and maintenance of adequateinternal financial controls that were operatingeffectively for ensuring the orderly and efficientconduct of its business, including adherence toCorporation’s policies, the safeguarding of itsassets, the prevention and detection of fraudsanderrors,theaccuracyandcompletenessoftheaccounting records,and the timelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

Our responsibility is to express an opinion onthe Corporation’s internal financial controlsover financial reporting based on our audit. Weconducted our audit in accordance with theGuidance Note on Audit of Internal FinancialControlsOverFinancialReporting(the“GuidanceNote”) and the Standards onAuditing, issued byICAIanddeemed tobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,both applicable to an audit of Internal FinancialControls and, both issued by the Institute ofCharteredAccountantsof India.ThoseStandards

andtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheauditto obtain reasonable assurance about whetheradequate internal financial controls over financialreporting was established and maintained and ifsuch controls operated effectively in all materialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditof internalfinancialcontrolsoverfinancial reporting includedobtaining an understanding of internal financialcontrolsoverfinancialreporting,assessingtheriskthat amaterial weakness exists, and testing andevaluatingthedesignandoperatingeffectivenessof internal control based on the assessed risk.Theproceduresselecteddependon theauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementof thefinancialstatements,whetherduetofraudorerror.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforour qualified audit opinion on the Corporation’sinternal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A Corporation’s internal financial control overfinancialreportingisaprocessdesignedtoprovidereasonable assurance regarding the reliability offinancialreportingandthepreparationoffinancialstatements for external purposes in accordancewith generally accepted accounting principles. ACorporation’sinternalfinancialcontroloverfinancialreporting includes those policies and proceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsof theassetsof theCorporation;(2)providereasonableassurancethattransactionsare recordedasnecessary topermit

Annexure B

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT

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


78

preparation of financial statements in accordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheCorporationarebeingmadeonlyinaccordancewithauthorisationsof management and directors of the Corporation;and (3) provide reasonable assurance regardingprevention or timely detection of unauthorisedacquisition, use, or disposition of the Corporation‘s assets that could have amaterial effect on thefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internalfinancialcontrolsoverfinancialreporting, includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolover financial reporting may become inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewith thepoliciesorproceduresmaydeteriorate.

Qualified Opinion

Accordingtotheinformationandexplanationsgiventousandbasedonouraudit,thefollowingmaterialweaknesseshavebeen identifiedasat31stMarch2018:

1. Attention is invited to Note 19 and Para No. 5 (b) of Note-35 in respect of the fraud detected during financial year 2016-17 related to Bank Guarantees(BGs) at some of the offices of the Corporation in West Bengal and further to it total BGs amounting to ₹17,350 lakhs received from United Bank of India (UBI) against advances given to the parties under Raw Material Assistance scheme (RMA) which were invoked, remain unpaid by the bank till date. Management has considered the total outstanding balance of ₹17,057.38 lakhs as good and fully recoverable against these BGs and no provision has been made as the report of Questioned Documents Examination Bureau (QDEB) and Forwarding Report dated 4th August 2017 submitted in the court by Crime Investigation Department (CID) confirm that the BGs held by the Corporation

were original. A charge sheet, in the matter, has already been filed by CID West Bengal. The ministry of MSME (The Administrative Ministry of NSIC) after examination of the status of the case and findings of the QDEB Report, has taken up the matter with the department of Financial Services, Ministry of Finance (The Administrative Ministry of United Bank of India) asking the later to impress upon the bank to honour NSIC’s rightful invocation of Bank Guarantees worth ₹ 17350 Lakhs together with accrued interest. Management signified that they are of the firm opinion that the amount is fully recoverable and accordingly considered good. However, looking into the matter which is dependent upon the ultimate findings by the competent agencies and their outcome, we are unable to comment on quantum of provision required, if any, against outstanding balance of ₹17,057.38 lakhs as at 31st March 2018.

2. AttentionisdrawntoPara-5(a)&para-5(d)ofNote-35regardingdetectionofforgedbankguarantees of ₹2,100 lakhs received fromthepartiesunderRawMaterialAssistance(RMA)schemebythemanagement.Loansandadvancesoutstandingason31stMarch2018of₹1,920.43lakhsagainsttheforgedbank guarantees have been consideredas doubtful and100%provision hasbeenmade.Thematterwas referred toCentralBureau of Investigation (CBI) for furtherinvestigation.

3. The procedure for review of financial statements/accounts of the borrower, inspection of the units, periodical confirmation of balances, renewal of limit sanctioned to the units and review of outstanding balances exceeding 360 days on timely basis under Raw Material Assistance scheme were not effectively implemented/monitored. However, the entire procedure has been reviewed and revised by the management in the light of these weaknesses to ensure that effective steps are in place and the various checks/controls provided, are operating effectively.


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In our view, the Internal Financial Control are required to be monitored and reviewed periodically.

4. Internalcontrolneedsfurtherstrengtheningin respect of implementation of riskmanagement and systems to ensurecontinued implementation of Corporation’srisk management policy and strategy anddocumentation thereof, critical reviewand refresh process on an ongoing basis.Moreover,toavoidanymanualinterventioninthepreparationandreportingoffinancials,anintegratedaccountingpackageneedstobeimplemented.

5. Budgeting needs further improvement.Nobudgetwasprepared byH.R.Divisionfor recruitments through open marketbasedon thecadre / postwisevacancies

available,whichshouldbepreparedbythetopmanagementatthecommencementofFinancialYear.

In our opinion, to the best of our informationandaccording to theexplanationsgiven tous,except for the effects/possible effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the Corporation hasmaintained, in allmaterial respects, adequate internal financialcontrols over financial reporting and suchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasofMarch31,2018,based on “the internal control over financialreportingcriteriaestablishedbytheCorporationconsideringtheessentialcomponentsofinternalcontrol stated in the Guidance Note on Auditof Internal Financial Controls Over FinancialReporting issued by the Institute of CharteredAccountantsofIndia”.

For K P M C & Associates CharteredAccountants


(CA.PankajKumar)Place:NewDelhi PartnerDate:03rdAugust2018 M.No:073291


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Compliance Certificate

Wehave conducted the audit of accountsmaintained atHeadOffice ofTheNational Small IndustriesCorporationLimitedfortheyearended31stMarch2018inaccordancewiththedirections/subdirectionsissued byC&AGof India underSection 143(5) of theCompaniesAct,2013 and certify thatwe havecompliedwithallthedirections/Sub-directionsissuedtous.



(CA. Pankaj Kumar)Place:NewDelhi PartherDate:3rdAugust2018 M.No:073291


81

Annexure‘C’ ReportonDirectionsissuedbytheComptrollerandAuditorGeneralofIndiaUnderSection143(5)oftheCompaniesAct,2013inrespectofAccountsofHeadofficeofThe National Small Industries Corporation Limited, New Delhi audited by us and 63 branch offices including technical centres audited by otherindependentauditorsfortheyearended31stMarch2018.

S. No. Information desired Status

1. Whether the companyhas clear title/ leasedeeds for freeholdand leasehold landrespectively? If notpleasestate theareaoffreehold and leaseholdland for the which title/lease deeds are notavailable?

AccordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordoftheCorporation,freeholdandleaseholdlandasshowninthebooksofaccountsofCorporationhascleartitle/leasedeedsexceptinrespectofthefollowingcases.

(₹inLakh)S. No. Particulars of the property Area As at

31.03.20181 Land at Technical Centre,

Howrah49.94acres 1.60*

2 FlatsatBranchOfficeMumbai 3660.00sqft. 5.87*.*Figuresarewrittendownvaluesasondate.

2. Whether there are anycasesofwaiver/writeoffof debts/loans/interestetc., if yes, the reasonsthereforandtheamountinvolved.

Thedetailsofthewaiver/writeoffofdebts/loans/interestisgivenbelowalongwithmajorreasonsthereof:

S. No. Particulars of the property

Amount involved(₹ in Lakh)

Major reasons of waiver/ write off

1 HeadOffice NIL

2 In63branches&technicalcentresauditedbyotherauditors

193.15 Baddebtswrittenoff&Non-recoverableoldoutstandingbalances.

TOTAL 193.15

3. Whether proper recordsare maintained forinventories lying withthird parties & assetsreceivedasgift(s)/Grantfrom theGovt.Or otherauthorities.

As on 31.03.2018, the Corporation has maintained proper recordsinrespectof inventories lyingwiththirdparties.Further, therearenoinventorieslyingwiththirdpartiespertainingtoHeadOffice.AccordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordoftheCorporation,theCorporationhasnotreceivedanyassetsasgift/grant(s)fromtheGovt.orotherauthorities.However,theCorporationhasacquiredassetsoutofthegrantsduringtheyearforwhichproperrecordshavebeenmaintained.


Firm`sRegn.No.005359C

(CA. Pankaj Kumar)Place:NewDelhi PartnerDate:03rdAugust2018 M.No.073291


82

TheBoardofDirectorof Date:-03rdAugust,2018TheNationalSmallIndustriesCorporationLtd.OkhlaIndustrialEstate,NewDelhi-110020

DearSir,

Subject: - Non-Banking Finance Companies Auditor’s Report (Reserve Bank) Directions, 2016

Inadditiontoourreportmadeundersection143oftheCompaniesAct.,2013onthefinancialstatementsofTheNationalSmallIndustriesCorporationLimited(TheCorporation)asofandfortheyearended31stMarch2018andasrequiredbytheNon-BankingFinancialCompaniesAuditor’sReport(ReserveBank)Directions,2016dated29thSeptember2016issuedbytheReserveBankofIndia(RBI),onthebasisofsuchchecks,asweconsideredappropriateandaspertheinformationandexplanationsgiventous,wereportonthemattersspecifiedinparagraph3and4ofthesaiddirectiontotheextentapplicabletothecorporation,asfollows:

1) Inpursuance,ofsection45-IAof theReserveBankof IndiaAct,1934,theCompanyhasobtainedacertificateof registration from theRBIunderRegistrationNumberN-14.03090dated29.12.2005grantingtheCompanytocarryonthebusinessofanon-bankingfinancialcompany;

2) TheBoardofDirectorshavepassedaresolutionof9thDecember1998fornon-acceptanceofpublicdepositinfuturewithoutpriorpermissionfromReserveBankofIndia;whichhasbeenreconfirmedintheBoardsresolutionpassedon12thDecember2005.

3) TheCompanyhasnotacceptedpublicdepositsduringyearended31stMarch2018.4) ThecorporationisentitledtocontinuetoholdCertificateofRegistration(COR)intermsofitsPrincipal

BusinessCriteria(Financialasset/incomepattern)ason31stMarch2018.5) ThecorporationismeetingtherequirednetownedfundrequirementaslaiddowninMasterDirection-

Non-BankingFinancialCompany-Systematically ImportantNon-Deposit takingCompany (ReserveBank)Direction,2016.

6) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thecorporation,beingaGovt.ofIndiaEnterprisehasbeenexemptedfromcomplianceofRBIprudentialnormsrelatingtoNBFCsinviewofRBIcircularNo.DNBR(PD)CC.No.043/03.10.119/2015-16dated1stJuly2015.

7) For the Financial year ended 31stMarch 2018, the corporation has compliedwith theAccountingStandards, Income Recognition, Provisioning norms for Doubtful Receivables and Loans andAdvanceswhichareasper theprudentialnorms formulatedby thecorporationand referred to/asstatedintheSignificantAccountingPolicies.

8) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theCorporationhasaninternalauditsystemandhasconstitutedanauditcommitteeinlinewiththeRBIcircularNo.DNBS(PD)CC.No.12/02.01/99-2000dated13thJanuary2000.

ThisreportisissuedtocomplywiththeNon-BankingFinancialCompaniesAuditor’sReport(ReserveBank)Direction,2016videMasterDirectionDNBS.PPD.03/66.15.001/2016-17dated29thSeptember2016andmaynotbeusedforanyotherpurpose.

For KPMC & AssociatesCharteredAccountants

Firm’sRegistrationNumber:005359C

(Pankaj Kumar)Partner

MembershipNumber:073291


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StatutoryAuditors’Certificate(SAC)

WehaveexaminedthebooksofaccountsandotherrecordsmaintainedatHeadofficeofTheNationalSmallIndustriesCorporationLimitedfortheFinancialYearendingMarch31,2018.Onthebasisoftheinformationsubmittedtous,wecertifythefollowing:

Sl. Particulars Details

1. Nameofthecompany TheNationalSmallIndustriesCorporationLimited

2. CertificateofRegistrationNo. N.14.03090

3. RegisteredofficeAddress NSICBhawan,OkhlaIndustrialEstate,NewDelhi–110020.

4. CorporateofficeAddress - Sameasabove-

5.ThecompanyhasbeenclassifiedbyRBIas:(InvestmentCompany/LoanCompany/AFC/NBFC-MFI/NBFC-Factor/IFC/IDF-NBFC)

LoanCompany

6. NetOwnedFund(in₹`Crore)(Calculation of the same is given in the Annex) 835.59

7. TotalAssets(in₹Crore) Rs.3502.68

8.

Asset-Incomepattern:(intermsofRBIPressRelease1998-99/1269datedApril8,1999)a) %ofFinancialAssetstoTotalAssetsb) %ofFinancialIncometoGrossIncome(NBFC-Factor / NBFC-MFI / AFC / IFC may also report separately below)

84%

83%

9.Whether the company was holding any PublicDeposits,asonMarch31,2018?IfYes,theamountin` NILCrore

No

10.Hasthecompanytransferredasumnotlessthan20%ofitsNetProfitfortheyeartoReserveFund?(In terms of Sec 45-IC of the RBI Act, 1934).

NA-AsNSICisaGovernmentofIndiaEnterprise.

11HasthecompanyreceivedanyFDI?IfYes,didthecompanycomplywiththeminimumcapitalizationnormsfortheFDI?

No

12IfthecompanyisclassifiedasanNBFC-Factor;a) %ofFactoringAssetstoTotalAssetsb) %ofFactoringIncometoGrossIncome

NA


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13

IfthecompanyisclassifiedasanNBFC-MFI;%ofQualifyingAssetstoNetAssets(refer to Notification DNBS.PD.No.234 CGM(US) 2011 dated December 02, 2011)

NA

14

IfthecompanyisclassifiedasanAFC;a) %ofAdvancesgivenforcreationofphysical/realassetssupportingeconomicactivitytoTotalAssetsb) %ofincomegeneratedoutoftheseassetstoTotalIncome

NA

15 IfthecompanyisclassifiedasanNBFC-IFC%ofInfrastructureLoanstoTotalAssets NA

16

Has there been any takeover/acquisition ofcontrol/ change in shareholding/ Managementduring the year which Required prior approvalfromRBI?(Please refer to per DNBR (PD) CC. No.065/03.10.001/2015-16 dated July 09, 2015 on the subject for details)

No

IntermsofMasterDirection-NonBankingFinancialCompaniesAuditor’sReport(ReserveBank)Directions,2016datedSeptember29,2016,aseparatereport to theBoardofDirectorsof thecompanyhasbeenmade.



(CA. Pankaj Kumar)Place:NewDelhi PartnerDate:03rdAugust2018 M.No:073291


85

Annexure

S.No. Capital Funds - Tier I (₹Incrore)

1. PaidupEquityCapital 532.99

2. Pref.sharestobecompulsorilyconvertedintoequity

3.

FreeReserves:

a.GeneralReserve

b.SharePremium

c.CapitalReserves

d.DebentureRedemptionReserve

e.CapitalRedemptionReserve

f.CreditBalanceinP&LAccount 363.93

g.Otherfreereserves(maybespecified)

4. SpecialReserves

Totalof1to4 896.92

5. Less:i.Accumulatedbalanceofloss

ii.DeferredRevenueExpenditure

ii.DeferredTaxAssets(Net) 59.31

iii.OtherintangibleAssets 2.02

Owned Fund 835.59

6.Investmentinsharesof

(i)Companiesinthesamegroup

(ii)Subsidiaries

(iii)WhollyOwnedSubsidiaries

(iv)OtherNBFCs

7.

Bookvalueofdebentures,bondsoutstandingloansandadvances,billspurchasedandiscounted(includingH.P.andleasefinance)madeto,anddepositswith(i)Companiesinthesamegroup

(ii)Subsidiaries

(iii)WhollyOwnedSubsidiaries/JointVenturesAbroad

8. Totalof6and7 0

9. Amountinitem8inexcessof10%ofOwnedFund 0

10. Net Owned Fund 835.59


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SIGNIFICANT ACCOUNTING POLICIES OF THE CORPORATION FOR THE FINANCIAL YEAR 2017-18

Attached to and forming an integral part of Financial Statements for the year ended 31st March, 2018

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared onaccrualbasisofaccountingunlessotherwisestated, under historical cost conventionin accordance with generally acceptedaccountingprinciplesinIndiaandtherelevantprovisions of the Companies Act,2013includingaccountingstandardsnotifiedthereunder.

2. USE OF ESTIMATES

The preparation of financial statementsrequires estimates and assumptions,which affect the reported amount of assets,liabilities (including contingent liabilities),revenues and expenses of the reportingperiod. The difference between the actualresults and estimates are recognized in theperiodinwhichtheresultsareknownand/ormaterialized.

3. INVESTMENTS

Investments are classified into current andnon-currentinvestments.CurrentInvestmentsarestatedatlowerofcostormarketvalueonan individual investment basis. Non-currentinvestmentsarestatedatcostandprovisionfor diminution in value is made for eachinvestment individually only if such declineisotherthantemporaryintheopinionofthemanagement.

4. VALUATION OF INVENTORIES

(i) At cost or net realizable value, whichever is lower.

a) Stores, pattern, moulds, tools,measuring instrumentsandgoodsintransit.

b) Stock of finished goods, finishedcomponents,workinprogressand

stores in NSIC technical servicecenters.

c) Stockoffinishedgoodspertainingtocommercialactivities.

d) Stock of repossessed / seized /surrendered machines under hirepurchase(HP)andcompositetermloan(CTL).

e) Stock of repossessed / seized/ surrendered machines underequipment leasing where assetsgivenonorafter01.04.2001.

f) Obsoleteandunserviceableassets

g) Land&BuildingandSheds,etcinthenatureofstockintrade.

h) Costs incurred in bringing eachproducttoitspresentlocationandcondition are accounted for asfollows:

► Stock of finished goods, finishedcomponentsandworkinprogressinNSICtechnicalservicecenters:Apartfromdirectcosts, overheads are charged in the ratioof totaloverheadsfor theyearasreducedby the overheads charged to outside joborders at predetermined standard rates todirect labour cost. Cost is determined onFirst-in-firstout(FIFO)basis.

► Other inventories: Cost includes costof purchase and other costs incurred inbringing the inventories to their presentlocationandcondition.Cost isdeterminedonFirst-in-firstout(FIFO)basis.

► Netrealizablevalueistheestimatedsellingprice in the ordinary course of business,less estimated costs of completion andestimated costs necessary to make thesale.


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(ii) At Cost

Stockofstationeryandmiscellaneousitems.Cost is determined on First-in-firstout(FIFO)basis

5. FIXED ASSETS AND CAPITAL WORK-IN-PROGRESS

(i) Leased assets and seized leasedassets out of leased assets acquiredup to 31st March’2001: are stated athistorical cost, net of accumulatedbalance of depreciation and leaseterminaladjustment.

(ii) Other than leased assets and seizedleased assets out of leased assets:are stated at their original cost ofacquisition including taxes, duties,freight and other incidental expensesrelatedtoacquisitionandinstallationoftheconcernedassetslessaccumulateddepreciation.

(iii) Capital work-in-progress comprisescost of fixed assets that are not yetready for their intended use at thebalancesheetdate.

(iv) Projects under commissioning /installationsandothercapitalwork-in-progressarecarriedatcostcomprisingdirectcost,relatedincidentalexpenses,interest on borrowings there againstandadministration&generaloverheadexpensesattributabletoconstructionoffixedassetsincurredtilltheyarereadyfor their intended use, are identifiedandallocatedonasystematicbasistothecostofrelatedassets.

(v) Depositworkcontractsareaccountedfor on the basis of statements ofaccountreceivedfromthecontractors.

6. DEPRECIATION

(i) Leased assets and Seized leased assets out of leased assets acquired up to 31st March, 2001:

Depreciation is provided on proratabasisatwrittendownvaluemethodas

pertheusefullifeprescribedinpartCto schedule II of the CompaniesAct,2013.

(ii) Fixed assets other than leased assets and seized leased assets out of leased assets

a) Depreciation on fixed assetspurchased out of Governmentgrants is charged on straight-linemethod as per useful livesspecified in part C to scheduleII of the CompaniesAct, 2013.Itischargedto‘CapitalReserve’bywayofreducingnetvalueoffixedassets.Thecapitalreserveiscreatedatthetimeofpurchaseof fixed assets out of grantsreceivedwiththepurchasecost.

b) Lease hold land is amortizedovertheleasedperiod.

c) IntangibleAssetsareamortizedoveraperiodof5years.

d) Mobile phone Instrumentscosting ` 0.05 lakh and above,aredepreciatedoveraperiodof3years.

e) AssetswhicharenotcoveredbyPara6(ii)(a),(b),(c)&(d)above,aredepreciatedonproratabasisatstraightlinemethodaspertheusefullifeprescribedinpartCtoschedule II of the CompaniesAct.

7. TRADE RECEIVABLES

(i) The hirers/lessees are treated asreceivables to the extent of hirepurchase/lease installments alreadyfallendue.Un-accruedprincipalamountof defaulted hire purchase accounts/ un-accrued principal amount ofdefaultedleaseinstallments(inrespectof assets leased from 01.04.2001)where machines are repossessed /seized/surrenderedarealsoincludedinthetradereceivables.


88

(ii) Trade receivables are treated as`Secured’totheextentofthesecuritiesavailablebywayofanyofthefollowing-marketvalue/WDV/committedvalue(in respect of legal/seized cases) ofassets financed (identified & lying inpossession of the unit/Corporation),any advance received from the unit,EMD, seizedmachines, considerationmoney, terms of agreement, advanceinstallment/ rental, advance receivedfromhirer/advanceagainstpurchaseofmachineoranyothertangiblesecurity/amount owes by the Corporation tothe units including transactions underback-to-backarrangement.Itshallalsoincludeallsecuritiesobtainedfromtheunits as per the term of sanction ofassistance.Theamountsnot coveredbyabovearetreatedas‘Unsecured’.

8. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

(i) Theprovisionsfordoubtfulreceivablesand loans&advances(netof interestsuspense account) of financingschemes and of Technical Centers/STPs have been made as per thenorms prescribed by the Board ofDirectorsasannexedherewith.

(ii) Provisions(ifrequired)onReceivablesand Loans & Advances from CentralGovernment / State Governments /GovernmentInstitutions/GovernmentCompanies and other Central / StateGovernment departments / bodies, ismadewhereverconsideredappropriatebythemanagement.

(iii) Noprovisionfordoubtfulreceivablesinrespect of ‘Receivables’ underExportand Marketing Scheme is made tothe extent the amount appears under‘Payable’forsuppliespertainingtothesame transaction under back-to-backarrangementwithsuppliers.

(iv) Contingent liabilities are disclosedbased on the judgment of themanagement/independent expert.These are reviewed at each balance

sheetdateandareadjusted toreflectthe current management estimate.Contingent Assets are neitherrecognized nor disclosed in thefinancialstatements.

9. FOREIGN EXCHANGE TRANSACTIONS

(i) Transactions in foreign currency areinitiallyaccountedattheexchangerateprevailingonthetransactiondate.

(ii) Monetary items (such as Cash,Receivables, Loans, Payables, etc.)denominated in foreign currencies,outstanding at the year-end, aretranslatedatexchangeratesprevailingatyear-end.

(iii) Any gains or loss arising on accountof exchange difference either onsettlementorontranslation,isadjustedintheStatementofProfit&Loss.

10. REVENUE RECOGNITION

Alltheitemsofincome(incl.realizationfromtraining activities and common facilities) &expenditure are accounted for on accrualbasis except as mentioned below whichare accounted for in accordance with theprovisions contained in AS-9 on RevenueRecognition:-

(i) Hire Purchase and Leasing

Incomeisaccountedforasunder:-

a) Penal interest, which isconsidered as doubtful ofrecovery,istreatedasincomeintheyearofitsrealization.

b) Excess of sales proceedsof repossessed / seized /surrendered machines overtheir value as per accountingpolicy No.4 (d) (in case of hirepurchase) and 4 (e) (in caseof leasing) as on the dateof repossession / seizure /surrender is adjusted againstthe defaulted hirer’s/lessee’saccount. Any excess over and


89

abovetheamountduefromthehirer/lesseeistreatedasincomein the year of receipt of saleproceeds.

c) Where the unit’s accountsare frozen, no further interestis being debited to the unit’saccount.

(ii) Marketing, Raw Material Distribution/Assistance, Bill Financing and Composite Term Loan

Incomeisaccountedforasunder:-

a) Interest/other income due fromtheunitsthatareconsideredasdoubtful of recovery, is treatedas income in the year of itsrealization.

b) Application processing fee,wherever applicable, is treatedasincomeonreceiptbasis

c) Processing fees is treated asincome on time proportionatebasis

d) Where the unit’s accountsare frozen, no further interestis being debited to the unit’saccount.

(iii) Government Purchase Registration Fee

IncomereceivedunderGovt.PurchaseRegistration Scheme on accountof registration fees, renewal fees,limit enhancement fees and fees forany amendment/ additions in thecertificates, is entirely recognized ondateofissuanceofcertificateforfreshregistration/renewal/enhancementof limit/ any amendment/ additionstherein.

(iv) Infomediary Membership Fee

Membership fee received underInfomediary scheme is recognized asincomeintheyearofreceipt.

(v) Treatment of Decree Awarded

Whereadecreehasbeenawardedinfavour of the Corporation, necessaryadjustmentsintheunit’saccountsaremadeatthetimeofrealizationofdues.

(vi) Dividend Income

Dividendon investment isaccount foronthebasiswhenrighttoreceivethesameisestablished.

(vii) Income from Turnkey Projects / Service & Consultancy Contracts

a) Projects under commissioning /installations are carried at costcomprising direct cost and relatedincidental expenses incurred tillthey are ready for their intendeduse. In case of indirect expenses,the same have been account forunder thenaturalheadofaccountofrespectiveexpenditure.

b) Service charges/ other revenuefrom turnkey projects/ Service& Consultancy contracts arerecognized based on the stage ofcompletion of the activity, as percontract, reached on the balancesheetdate.

11. EXPORT SALES

Salesonaccount of export of productsandprojects are accounted for on the basis ofinvoicevalueasperthetermsofexports.

12. SAMPLES FOR EXHIBITIONS

Thecostofsamplesandotheritemsacquiredfor various exhibitions and fairs in India orabroadarechargedtorevenueintheyearinwhichexhibitionsandfairsareheld.

13. INCOME FROM LEASING

(i) On lease transactions entered up to 31st March, 2001

(a) Lease rentals in respect oftransactions enteredup to 31stMarch,2001isaccountedforon


90

accrual basis, net of the leaseequalizationcharges.

(b) Cost of capital relating tooutstandingnetinvestmentintheleasedassets isdeducted fromleaserentalstoarriveatrecoveryof capital. The difference ofrecoveryofcapitalandstatutorydepreciationisdepictedthroughlease equalization chargeaccount. The contra effect ofsuchleaseequalizationaccountis reflected by operating leaseterminal adjustment account inthe balance sheet. The shortfall of capital recovery, if any,is accounted for in the year ofdisposalofasset.

(ii) Lease transactions entered on or after 1st April, 2001

The finance income and recovery ofnet investment included in the leaserentals are work out at the interestrate implicit in the lease.The financeincome is recognized as incomeand credited in Statement of Profit &Loss. The difference of lease rentalsand finance income is considered asrecoverytowardsnetinvestment.

14. GOVERNMENT GRANTS

The Corporation utilizes grants receivedfrom Government of India under variouspromotional activities approved by theGovernment.

Receipt of grants is recognizedas advancefrom theGovernmentof Indiaand isshownas Amounts Payable to Government ofIndia. Thereafter, the grant to the extent ofexpenditureincurred,isrecognizedasincomeintheStatementofIncome&Expenditure.Incaseofcapitalgrant,theexpenditureincurredis reduced from the recognized income bycreatingcapitalreserve.IncaseofapprovedPromotional activities, expenditure incurred/ committed for the year, but grant receivedinsubsequentyear, isaccountedonaccrualbasis.

Further,Interestearned,ifany,onthesurplusgrant as per the terms of the sanction ofthe grant, is recognized as advance fromthe Government of India and is shown asAmountsPayabletoGovernmentofIndia.

In case, the net result under advanceaccounts of various promotional activities is“deficit”, it is shownas “AmountReceivablefrom the Government of India for deficit ingrants” under the head current assets andif there is “surplus”, the same is shown as“AmountPayabletotheGovernmentofIndiaforsurplusingrants”undertheheadcurrentliabilities.

15. APPROPRIATION OF RECEIPTS

(i) Receipt(s) from units having availedassistanceunderdifferentcommercialschemes are appropriated in themannerwhereby the adjustments arefirst made towards the oldest duesand inthefollowingorder i.e. towardsmiscellaneous charges, servicecharges,penalinterest,normalinterestandprincipal.

(ii) Incasesofsettlement,thereceiptsfromthe defaulting units are appropriatedlasttowardsthepenalinterest,ifany.

16. PREPAID AND PRIOR PERIOD ITEMS

Prepaidexpensesandpriorperiodexpenses/incomeofitemsof₹ 0.50lakhandbelowarechargedtonaturalheadsofaccounts.

17. ALLOCATION OF EXPENSES

The expenses directly attributable to thecommercial and promotional activities havebeencharged to the respectiveactivities. Incase of indirect expenses, the same havebeen allocated on the basis of businessgenerated in different commercial activitiesduring the year. In case of promotionalactivities,theindirectexpensesareallocatedbased onmanagement estimates, however,the overall amount has been restricted totheamountpermissibleundertherespectiveactivities.


91

18. BORROWING COST

Borrowing cost of the funds specificallyborrowed for the purpose of obtainingqualifyingassetsandeligibleforcapitalizationalongwiththecostoftheassets,iscapitalizedup to the date when the asset is ready foruseafternettingoffanyincomeearnedontemporaryinvestmentofsuchfunds

19. EMPLOYEE BENEFITS

(i) Defined Contribution plan Corporation’s contributions paid/

payable during the year to providentfund and pension fund is recognizedinthestatementofprofitandloss.Thecontributiontoprovidentfundispaidtoafundadministeredthroughaseparatetrust.

(ii) Defined benefits plan Corporation’s liability towards gra-

tuity, leave encashment and otheremployees’ benefits namely Sickleave, T.A. on Retirement and LeaveTravelConcessionforCDAemployeesare accounted for based on actuarialvaluation at the year-end. Actuarialgainsandlossesarerecognizedinthestatementofprofitandlossintheyearofitsoccurrence.

20. IMPAIRMENT OF ASSETS

TheCarryingamountsofassetsarereviewedat eachBalanceSheet date. In case, thereis any indication of impairment based oninternal/external factors, an Impairment lossis recognizedwherever thecarryingamountoftheassetsexceedsitsrecoverableamount.

21. RISK FUND

Based on the Corporate Governanceguidelineson‘RiskManagement’forCentralPublicSectorEnterprisesand thepossibilityof risk of financial loss to the Corporationdue to any reason, a risk fund at 0.40%of the outstanding under the schemes ofRaw Material Assistance & Bill Discounting(secured by Bank Guarantee), TradeReceivables-Marketing (from Central &State Government, Government Institutions

/ Companies / Departments / Bodies) andTermLoan (securedbyEMD) is createdbymakingappropriationoftheprofittomitigateanyunforeseen lossarisingoutofbusinesstransactions.Thequantumofsaidfundatthebeginningoftheyearisincreased/decreasedtocommensuratewiththeincrease/decreasein the outstanding under the scheme atthe end of each financial year. Interest andservice charges earned on the amount offundatbeginningoftheyearisploughback.Theobjectiveofcreatingriskfundistomeetoutanyfinanciallossundertheseschemes.

22. ACCOUNTING FOR TAXES ON INCOME

Provision for current tax is made as pertheprovisionsof the IncomeTaxAct, 1961.Deferredtaxexpenseorbenefitisrecognizedon timing differences being the differencebetween taxable incomes and accountingincome that originate in one period and islikely to reverse inoneormoresubsequentperiods. Deferred tax assets and liabilitiesare measured using the tax rates and taxlawsthathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.

Intheeventofunabsorbeddepreciationandcarry forward of losses deferred tax assetsare recognizedonly to theextent that thereis virtual certainty supported by convincingevidencethatsufficientfuturetaxableincomewillbeavailabletorealizesuchassets.Inothersituationdeferred taxassetsare recognizedonly to the extent that there is reasonablecertaintythatsufficientfuturetaxableincomewillbeavailabletorealizetheseassets.

23. CASH FLOW STATEMENT

Cash flows are reported using the indirectmethod,wherebyprofitbeforetaxisadjustedfor the effects of transactions of a noncashnatureandanydeferralsoraccrualsofpastor future cash receipts or payments. Thecashflows from regularoperating, financingand investing activities of theCompany aresegregated.


92

The norms of making provisions for DoubtfulReceivablesandLoans&Advances(netofinterestsuspense account) of Financing Schemes and ofTechnicalCenters/STPs,asapprovedbyBoardofDirectorsareasfollows:

1. TRADE RECEIVABLES

Trade Receivables comprises of receivables inrespect of dues under Hire Purchase, Leasing &Marketing activities and includes receivables onaccount of transactions at Technical Centers &STPs. Provisioning norms for Trade Receivablesaredepictedhereunder:

S No Scheme % of

Provisions1. HirePurchase 100%

2. Leasing 100%3. TradeReceivables

(a)wheretheamountof‘SecuredReceivables’duefromGovernmentDepartments/Institutions/UndertakingsunderTenderMarketing

Nil

(b)Otherthan(a)abovei.lessthansixmonthsoldiimorethansixmonthsold

Nil100%

Note: Refer Accounting Policy-Para 7(i) and 7(ii) for Secured and Unsecured Trade Receivables

2. LOANS AND ADVANCES

Loans and advances comprises of receivables inrespectofduesunderRawMaterialAssistance,BillDiscounting,TermLoan,CompositeTermLoanandAdvances recoverable in cashor in kind includingstaffadvances

Receivables w.r.t. commercial activities underLoans&Advancesaretreatedas‘Secured’(unlessotherwisestated), forwhich theCorporationholdsas ‘Security’ any of the following -Earnest MoneyDeposit (EMD), Security Deposit Receipt (SDR),

EquitableMortgageof ImmovableProperty,Termsof agreement, and Bills for supplies made to theGovernment Departments and any other tangiblesecurities. The ‘Securities’ shall also include allsecurities obtained from theunits as per the termofsanctionofassistance.Theamountsnotcoveredbyaboveare treatedas ‘Unsecured’.ReceivablesandLoans&AdvancesbackedbyBankGuarantee/LetterofCredits,thoughtreatedasunsecured,areconsideredgood.

Provisioning norms for various items of Loans &Advancesaredepictedbelow:

(A) Raw Material Assistance and Bill Discounting

S. no.

Classification of Outstanding

% of Provisions

1. Secured by or Backed by

(a)BG/LC/EMD/SDR NIL

(b)CollateralSecurity-EquitableMortgageofImmovableProperty

(c)Bills

10%

2. Unsecured 100%

(B) Term Loan

S. No

Classification of Outstanding

% of Provisions

1. Secured by

(a)EMD/SDR/FDRwithNSIC

NIL

(b)EquitableMortgageofImmovableProperty

10%

2. Unsecured 100%

(C) Composite Term Loans

The provisions required in respect of thedefaultunderCompositeTermLoanSchemearetobearrivedatasfollows:-

AnnexuretoAccountingPolicy-Para7&8(i)

Provisioning Norms for Doubtful Receivables and Loans & Advances


93

a) The amount of balance outstanding(principalamountindefault)asat31stMarch.

b) CGTSIcoveravailable i.e.75%of “a”aboveor`18.75lakh,asapplicableineachcase,whicheverisleast.

c) Amount not covered under CGTSIcover(a-b).

d) OntheamountcoveredunderCGTSIasat`b’above,noprovisionshavetobe made. However, in respect of theamountnotcoveredunderCGTSI i.e.at ‘c’ above and interest receivableonthedefaultedamount(netofpenalinterest suspense account) & othercharges, if any, provision@100% tobemade.

(D) Advances Recoverable in Cash or in Kind including Staff advances

D.1 Advances Recoverable in Cash or in Kind

Theseamountsprimarilyconsistofadvancespaid to outside parties including advancespaid to bulk suppliers havingMOUwith theCorporation, pre-paid expenses, securitydeposits with telephone & other allieddepartments,etc.

S. No

Classification of Outstanding Advances

% of Provisions

1. Secured Advances with outside parties

Allthefollowingreceivablesaretreatedas‘Secured’(unlessotherwisestated):

a)All receivables againstwhichtheCorporationholdstangiblesecurity.

b)Advancespaidtobulksuppliers(havingMOUarrangementwiththeCorporation)totheextentofadvancehavealreadybeenreceivedfromtheMSMEsand/oramountpaidoutofthesanctionedlimitunderRMAagainstBG.

c)SecurityDepositspaidbytheCorporationandcorrespondinglythebuyerofsuppliesalsoprovidessecuritytotheCorporation.

The amounts not covered by above are treated as ‘Unsecured’.

NIL

2. Unsecured advances with outside parties outstanding over one year & are doubtful of recovery.

100%

D.2 Staff Advances

S. No

Classification of Outstanding Advances

% of Provisions

1 FromemployeesworkingintheCorporation.

Nil

2. Fromemployeesleft/resignedfromtheCorporationandnoamountisavailabletoset-offtheoutstanding.

100%

AdvancespaidforHBA,VehicleandComputeraretreatedassecuredandallotheradvancesaretreatedasunsecured.


94

THE NATIONAL SMALL INDUSTRIES CORPORATION LTD.[CINNo.:U74140DL1955GOI002481]

BALANCE SHEET AS AT 31.03.2018Particulars Note No. As at 31.03.18 As at 31.03.17I. EQUITY AND LIABILITIES Shareholders FundShareCapital 1 53298.80 53298.80ReservesandSurplus 2 41507.07 29612.56MoneyreceivedagainstShareWarrants 0 94805.87 0 82911.36 Share Application Money Pending Allotment 2.1 0 0Non-Current LiabilitiesLong-TermBorrowings 3 5410.48 4926.51DeferredTaxLiabilities(Net) 4 0 0OtherLongTermLiabilities 5 517.84 580.61Long-TermProvisions 6 6730.80 12659.12 5861.90 11369.02Current LiabilitiesShort-TermBorrowings 7 205113.52 221221.88TradePayables 8 18512.24 13000.82OtherCurrentLiabilities 9 15296.70 19337.18Short-TermProvisions 10 3880.46 242802.92 5427.27 258987.15Total 350267.91 353267.53II. ASSETSNon-Current AssetsFixed Assets 11TangibleAssets 10645.98 7597.56IntangibleAssets 202.24 148.11CapitalWork-in-Progress 12756.47 12606.14IntangibleAssetsunderDevelopment 0 23604.69 0 20351.81Non-CurrentInvestments 12 6.03 7.55DeferredTaxAssets(Net) 4 5930.94 5447.73Long-TermLoansandAdvances 13 1894.07 2457.66OtherNon-CurrentAssets 14 57.93 7888.97 71.08 7984.02Current AssetsCurrentInvestments 15 0 0Inventories 16 548.15 689.52TradeReceivables 17 16122.73 12273.42Cash&OtherBankBalances 18 6051.96 9512.77Short-TermLoansandAdvances 19 295128.12 302284.04OtherCurrentAssets 20 923.29 318774.25 171.95 324931.70Total 350267.91 353267.53Other Notes on Accounts 35

Statement of Accounting Policies and Notes on Accounts form an integral part of Financial Statements

As per our report of even date attached.For KPMC & AssociatesChartered Accountants

Sd/-Pankaj KumarPartnerMembership No. : 073291Firm Reg. No. : 005359CPlace : New DelhiDate: : 03.08.2018

For and on behalf of Board of Directors

A.K.Mittal Ravindra Nath Director (Finance) Chairman-cum-Managing Director [DIN : 07625711] [DIN : 02815496]

Sd/- Sd/- Gaurang Dixit Nishtha Goyal Chief General Manager (Finance) Company Secretary [Membership No. : A 22768]

Sd/- Sd/-

(ìnLakh)


95


STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31.03.2018

(ìnLakh)

Particulars Note No.

For the Year Ended 31.03.18


A RevenueRevenuefromOperations 21 253581.86 230886.79[IncludeProcessingFee/ServiceChargesearnedof

`5188.98lakh(`5493.60lakh)forvalueofgoodshandledandservicesrendered`1992031.24lakh(`1829719.92lakh)]

OtherIncome 22 77.19 279.17GrantsandSubsidies 23 5591.24 6457.57Total Revenue 259250.29 237623.53B ExpensesPurchasesofStock-in-Trade 24 204620.17 178236.02ChangesinInventories 25 119.97 (652.15)EmployeeBenefitExpenses 26 13135.64 9817.89FinanceCosts 27 13340.85 19748.00DepreciationandAmortizationExpenses 28 569.18 488.39ExpensesonCorporateSocialResponsibility 29 302.95 273.78OtherExpenses 30 12073.50 13202.55Total Expenses 244162.26 221114.48Profit before Prior Period Adjustments, Exceptional Items, Extraordinary Items and Tax 15088.03 16509.05ExceptionalItems (92.83) (13.93)Profit before Prior Period Adjustments, Extraordinary Items and Tax 15180.86 16522.98ExtraordinaryItems 0 0Profit before Prior Period Adjustments and Tax 15180.86 16522.98PriorPeriodAdjustments 31 (24.12) 15.82Profit before Tax 15204.98 16507.16Tax Expense 32(i).CurrentTax 5740.00 6100.00(ii).DeferredTax (483.21) (219.25)(iii).EarlierYears 7.53 (13.43)Total Tax Expense 5264.32 5867.32Profit (Loss) after Tax for the Period 9940.66 10639.84Earnings per Equity ShareBasic 33 18.65 19.96Contingent Liabilities 34 (i) 828.87 1634.65Capital Commitments 34 (ii) 5575.87 5414.62Other Notes on Accounts 35







Sd/- Sd/-


96

NOTE - 1 SHARE CAPITAL(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17AUTHORISED5,35,00,000(PreviousYear5,35,00,000)EquitySharesof`100each 53500.00 53500.00ISSUED, SUBSCRIBED AND PAID UP5,32,98,800(PreviousYear5,32,98,800)EquitySharesof`100eachfullypaidup. 53298.80 53298.80

As per Balance Sheet 53298.80 53298.80

ANNEXURE - 1A RECONCILIATION OF NUMBER OF SHARES OUTSTANDINGParticulars Equity Shares (No.) Preference Shares (No.)

Sharesoutstandingatthebeginningoftheyear 53298800 0Sharesissuedduringtheyear 0 0Sharesboughtbackduringtheyear 0 0Sharesoutstandingattheendoftheyear 53298800 0

ANNEXURE - 1B DETAILS OF SHAREHOLDING OVER 5% SHARE IN CORPORATION

Name of Shareholder As At 31.03.18 No. of Share Held

As At 31.03.18 % of Holding

As At 31.03.17 No. of Share Held

As At31.03.17 % of Holding

GovernmentofIndia 53298800 100 53298800 100

ANNEXURE - 1C DETAILS OF SHARES ALLOTED PURSUANT TO CONTRACT(S) WITHOUT PAYMENT BEING RECEIVED IN CASH, BONUS SHARES AND SHARES BOUGHT BACK IN RESPECT OF LAST 5 YEARS

Aggregate No. of SharesParticulars 2017-18 2016-17 2015-16 2014-15 2013-14Equity Shares:Fullypaiduppursuanttocontract(s)withoutpaymentbeingreceivedincash 0 0 0 0 0

Fullypaidupbywayofbonusshares 0 0 0 0 0

Sharesboughtback 0 0 0 0 0

Preference Shares:Fullypaiduppursuanttocontract(s)withoutpaymentbeingreceivedincash 0 0 0 0 0

Fullypaidupbywayofbonusshares 0 0 0 0 0

Sharesboughtback 0 0 0 0 0

ANNEXURE - 1D DETAILS OF CALLS UNPAID(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Calls UnpaidByDirectors 0 0ByOfficers 0 0


97

NOTE - 2 RESERVES & SURPLUS(` inLakh)

Deductions during the year

Particulars As At 01.04.17

Additions/ Created during the Year

Transfer/Sale/

Adjustment

Depreciation for the Year

As At 31.03.18

CAPITAL RESERVES(Reserve representing value of Assets acquired out of grants received from Govt. of India)TechnicalCentre 456.24 0.00 1.29 50.21 404.74GovernmentPurchasePlan 3.45 0.00 (0.07) 0.00 3.52AppropriateTechnology 2.43 0.00 0.02 0.00 2.40Modernization-LockProject 61.92 0.00 0.00 11.36 50.56DevelopmentofNorthEastRegion 20.70 0.00 0.00 0.57 20.13TechnologyBusinessIncubator 112.08 0.00 33.82 (21.01) 99.27MiniToolRoomCentre 0.85 0.00 0.00 0.00 0.85MinorityWelfareScheme 0.12 0.00 0.00 0.00 0.12ModernizationofTechnicalCentre 4.81 0.00 0.49 0.00 4.32Science&TechnologyProject 1.06 0.00 0.00 0.06 1.00ProductDesignCentre(PRIDE) 11.65 0.00 0.01 0.31 11.33TechnologyBusinessIncubator(IT) 1.02 0.00 (33.53) 33.53 1.02LaghuUdyogMart(LUM) 235.76 0.00 0.00 9.52 226.24InterestDifferentialFundonKFW(WestGermany)Loans 20.44 0.00 0.00 0.51 19.93TechnologyDevelopmentofBakingOven 0.02 0.00 0.00 0.00 0.02DST-STEP(S&TProject) 45.63 0.08 0.00 5.13 40.58TestingFuelEfficientDieselEngine(TFEDE) 0.36 0.00 0.00 0.00 0.36MarketingDevelopmentCentre 67.59 0.00 0.00 1.53 66.06InterestDifferentialFundonS&TProject 0.65 0.00 0.00 0.00 0.65TrainingcumIncubation 344.71 87.39 0.00 60.16 371.95AssistanceforTrainingtoInstitutions 0.00 1938.35 0.00 100.99 1837.36Sub Total 1391.49 2025.82 2.03 252.87 3162.41OTHER RESERVESCapitalReplacementReserve 73.08 0.00 0.00 0.00 73.08RiskFund 1561.12 317.54* 0.00 0.00 1878.65SurplusasperStatementofProfitandLoss 26586.87 9806.06 0.00 0.00 36392.93As per Balance Sheet 29612.56 12149.42 2.03 252.87 41507.07

ANNEXURE - 2A DETAILS OF APPORTIONMENT OF CURRENT YEAR PROFIT

Particulars As At 31.03.18 As At 31.03.17Profit for the period 9940.66 10639.84Less:ProposedDividend 0 3126.18Less:TaxonProposedDividend 0 636.50Less:TransfertoRiskFund 134.60 9806.06 343.69 6533.48

* Includes transfer from Interest Rs 182.94 lakh

(` inLakh)


98

NOTE – 2.1 Share Application Money Pending Allotment

S.No. Particulars As at 31.03.2018 As at 31.03.2017

1. Termsandconditions - -

2. Number of shares proposed tobeissued - -

3. Theamountofpremium,ifany - -

4. Theperiodbeforewhichsharesaretobeallotted - -

5.

Whether the company hassufficient authorized sharecapitaltocoverthesharecapitalamount on allotment of sharesoutofshareapplicationsmoney

- -

6. Interestaccruedonamountdueforrefund - -

7.

The period for which the shareapplication money has beenpending beyond the period forallotment as mentioned in theshare application form alongwith the reasons forsuchshareapplicationmoneybeingpending

- -


99

NOTE - 3 LONG TERM BORROWINGS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17SecuredBonds/Debentures 0 0TermLoansfromBanks 0 0OthersfromGovt.ofIndia 0 0StateGovt. 0 0FinancialInstitutions 0 0ForeignFinancialInstitutions 0 0Others 0 0 0 0DeferredPaymentLiabilities 0 0Deposits 0 0LoansandAdvancesfromRelatedParties 0 0LongTermMaturitiesofFinanceLeaseObligations 0 0OtherLoansandAdvancesfromGovt.ofIndia 0 0StateGovt. 0 0FinancialInstitutions 0 0ForeignFinancialInstitutions 0 0Others 0 0 0 0 Sub Total 0 0UnsecuredBonds/Debentures 0 0TermLoansfromBanks 0 0OtherPartiesfromGovt.ofIndia 0 0StateGovt 0 0FinancialInstitutions 0 0ForeignFinancialInstitutions 5410.48 4926.51Others 0 5410.48 0 4926.51DeferredPaymentLiabilities 0 0Deposits 0 0LoansandAdvancesfromRelatedParties 0 0LongTermMaturitiesofFinanceLeaseObligations 0 0OtherLoansandAdvancesfromGovt.ofIndia 0 0StateGovt. 0 0FinancialInstitutions 0 0ForeignFinancialInstitutions 0 0Others 0 0 0 0 Sub Total 5410.48 4926.51As per Balance Sheet 5410.48 4926.51


100

AN

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K

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X

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102.21

2181.49

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---

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---0.00

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136.27

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78


101

Annexure - 3B - Other Details of Long Term Borrowings

Particulars KFW XI Line of Credit

KFW XII Line of Credit

Italian Line of Credit

TotalLoanSanctioned(inEuro) 5112918.81 5036225.03 1053134.47DueDateofPayment 30/6and31/12

everyyear30/6and31/12every

year17/7and17/1everyyear

Firstinstallment 30/06/2002 30/06/2006 17/01/2015Lastinstallment 30/06/2042 30/12/2035 17/07/2035Totalinstallments 81 60 42Interest 10.50% 12.50% 0.50%Loano/s31/03/18(inEuro) 3100474.01 3023780.15 877612.19Repaymentterm Halfyearly Halfyearly HalfyearlyAmountofinstallments(inEuro) 62888.9 83851.87 25074.61TotalInterestpaidfrom30.06.1993to30.12.2001inDeusehMark

592439.19 405995.68 -

TotalInterestpaidfrom30.06.2002to31.03.2018inEuro

496346.32 517403.06 73845.81

Hedging - - -

NOTE - 4 DEFERRED TAX ASSETS/LIABILITIES (NET)*(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17DeferredTaxLiabilities (828.50) (729.06)DeferredTaxAssets 6759.44 6176.79As per Balance Sheet 5930.94 5447.73

*For detail refer Sl. No. 7 of Note-35

NOTE - 5 OTHER LONG TERM LIABILITIES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17SecurityDepositPayable 517.68 564.30IncomeReceivedinAdvance 0.06 3.54EarnestMoneyDeposits(EMD) 0.10 12.77As per Balance Sheet 517.84 580.61


102

NOTE - 6 LONG TERM PROVISIONS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Provisions for Employee BenefitsForGratuity 4105.28 3422.52ForLeaveEncashment 2245.63 2074.16ForLeaveTravelConcession 0.24 0.46ForHalfPayLeave 376.43 361.42ForPension 0.00 0.00ForTAonRetirement 3.22 6730.80 3.34 5861.90Others For Exchange VariationBalanceasperlastBalanceSheet 0.00 0.00Add:ProvisionmadeduringtheYear 0.00 0.00Less:UtilisedforExchangeVariationLosses 0.00 0.00Less:Amountwrittenback 0.00 0.00 0.00 0.00 For Promotional Activity (KFW)BalanceasperlastBalanceSheet 0.00 0.00Add:ProvisionmadeduringtheYear 56.63 55.86Less:Amountwrittenback 56.63 0.00 55.86 0.00As per Balance Sheet 6730.80 5861.90

NOTE - 7 SHORT TERM BORROWINGS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17SecuredLoansRepayableonDemandfromBanksWorkingCapitalLoan 205112.18 115612.77CashCredit 1.34 0.84Overdraft 0.00 5608.27TermLoan 0.00 205113.52 0.00 121221.88OtherParties 0.00 0.00LoansandAdvancesfromRelatedParties 0.00 0.00Deposits 0.00 0.00OtherLoansandAdvances 0.00 0.00 Sub Total 205113.52 121221.88

UnsecuredLoansRepayableonDemandfromBanksWorkingCapitalLoan 0.00 0.00CashCredit 0.00 0.00Overdraft 0.00 0.00TermLoan 0.00 0.00 0.00 0.00OtherParties 0.00 0.00LoansandAdvancesfromRelatedParties 0.00 0.00Deposits 0.00 0.00OtherLoansandAdvances 0.00 100000.00 Sub Total 0.00 100000.00As per Balance Sheet 205113.52 221221.88


103

Part

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TheHongkong&

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registered

mortgageoffreeholdLandmeasuring41920

Sq.MtratOkhlaIn

dustrialE

state,New

Delhi

&paripassuchargeoverreceivablesunder

RMAscheme&bookdebtsunderm

arketing

activities.

Nil

0

CTB

CBank-Overdraft

00

Securedbywayofh

ypothecationofaccount

recievables/bookdebts

ofRaw

Material

AssistanceandOtherCurrentAssets

Nil

0

056

08.2

70

TermLoan

00

Nil

0

O

therParties

00

Nil

0

LoansandAdvancesfrom

RelatedParties

00

Nil

0

D

eposits

00

Nil

0

O

therLoansandAdvances

00

Nil

0

Sub

Tota

l20

5113

.52

1212

21.8

8--

0


105

Part

icul

ars

Am

ount

O

utst

andi

ng

as o

n 31

.03.

18

Am

ount

O

utst

andi

ng

as o

n 31

.03.

17

Nat

ure

of S

ecur

ity

Whe

ther

gu

aran

teed

by

Dire

ctor

s or

Oth

ers

Con

tinui

ng D

efau

lt as

on

31/

03/1

8

Perio

dA

mou

nt

Uns

ecur

ed

LoansRepayableonDem

and

from

----

B

anks

----

W

orkingCapitalLoans

----

C

ashCredit

----

O

verdraft

----

TermLoan

----

O

therParties

----

LoansandAdvancesfrom

RelatedParties

----

D

eposits

----

O

therLoansandAdvances

----

Com

mercialPaper

0100000.00

0

Sub

Tota

l0

1000

00.0

0--

--0

Tota

l20

5113

.52

2212

21.8

8--

--0


106

NOTE - 8 TRADE PAYABLES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Trade PayablesDuetoMSMEUnits 0.00 0.00DuetoOthers 18512.24 18512.24 13000.82 13000.82DuetoRelatedParties 0.00 0.00Others 0.00 0.00As per Balance Sheet 18512.24 13000.82

NOTE - 9 OTHER CURRENT LIABILITIES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17CurrentMaturitiesofLong-TermDebt 279.23 241.78CurrentMaturitiesofLongTermProvisions 1070.82 598.47AmountsPayabletoGovernmentofIndiaagainstSurplusinGrants 0.00 2738.77InterestAccruedButNotDueonBorrowings/CSD 10.05 16.02FamilyPensionandProvidentFundPayable 119.29 118.40OtherPayables-Employees 1197.19 1282.79OtherPayables-Taxes 468.49 561.30OtherPayables 2505.21 2083.35SecuritiesDepositPayable 582.44 625.27IncomeReceivedinAdvance 2338.27 2319.59EarnestMoneyDeposit(EMD) 66.82 180.35BalanceDuetoTradeReceivables 157.98 44.10DiscountPayable 1218.29 1442.46PayabletoRMSuppliers 238.81 99.76AdvancefromRMABuyers 3890.42 3471.34PayableforProjects 443.41 1470.89PayabletoRatingAgencies 709.98 2042.54As per Balance Sheet 15296.70 19337.18


107

AN

NEX

UR

E - 9

A A

MO

UN

TS P

AYA

BLE

TO

GO

VER

NM

ENT

OF

IND

IA A

GA

INST

SU

RPL

US

IN G

RA

NTS

(` in

lakh

)

Part

icul

ars

Bal

ance

Bro

ught

Fo

rwar

d Fr

om

Prev

ious

Yea

r

Gra

ntR

ecei

ved/

Inte

rest

Ea

rned

D

urin

g Th

e Ye

ar

Rei

mb/

R

efun

d/

Adj

ustm

ent/

Tfd

to S

tate

A

genc

y

Fixe

d A

sset

s A

cqui

red

/ WIP

Net

R

even

ue

Expe

nditu

re

Tota

l Ex

pend

iture

Exce

ss o

f Ex

pend

iture

ov

er In

com

e (T

fr. F

rom

Pr

om. t

o C

om.)

Rei

mbu

rsab

le

Expe

nditu

re

As

at 3

1/03

/18

Defi

cit

Surp

lus

Defi

cit

Surp

lus

Mar

ketin

g A

ssis

tanc

e Sc

hem

eMarketingAssistanceSchem

e52.55

0.00

947.76

52.55

0.00

742.89

742.89

0.00

742.89

0.00

204.87

MarketingAssistanceSchem

e-SC

SP0.00

24.39

0.00

-24.40

0.00

0.00

0.00

0.00

0.00

0.01

0.00

MarketingAssistanceSchem

einNER

0.00

0.00

3.82

0.00

0.00

22.93

22.93

0.00

22.93

19.11

0.00

Sub

Tota

l52

.55

24.3

995

1.58

28.1

60.

0076

5.82

765.

820.

0076

5.82

185.

75Pe

rfor

man

ce a

nd C

redi

t Rat

ing

Sche

me

PerformanceandCreditR

ating

Scheme

0.00

807.15

582.87

-1187.46

0.00

1026.03

1026.03

0.00

1026.03

823.47

0.00


ating

Scheme-SCSP

37.58

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

37.58

0.00


ating

Scheme-T

SP

0.00

6.15

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

6.15


ating

SchemeinNER

0.00

56.28

0.00

0.00

0.00

6.44

6.44

0.00

6.44

0.00

49.84

Sub

Tota

l37

.58

869.

5858

2.87

-118

7.46

0.00

1032

.47

1032

.47

0.00

1032

.47

805.

06InternationalC

o-operation,

Modernization&Technology

Upgradation

45.38

0.00

0.00

45.38

0.00

0.00

0.00

0.00

0.00

0.00

0.00

NorthEastE

xpo

7.00

0.00

0.00

7.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

DST

-ST

EP(S

&TProject)

0.00

0.08

0.00

0.00

0.08

0.00

0.08

0.00

0.08

0.00

0.00

AssistanceforTrainingtoInstitutions

0.00

2056.98

305.22

-21.92

1938.35

249.37

2187.72

0.00

2187.72

0.00

152.56

Trainingcum

Incubation

0.00

109.66

53.47

-19.86

87.39

0.00

87.39

0.00

87.39

0.00

55.88

Nat

iona

l SC

-ST

Hub

(NSS

H)

SCSP

338.02

0.00

2700.31

-1078.81

0.00

2372.87

2372.87

0.00

2372.87

1089.39

0.00

TSP

3.22

161.84

1933.60

-891.79

0.00

531.80

531.80

0.00

531.80

0.00

668.63

NER

0.00

0.00

603.45

-400.00

0.00

202.58

202.58

0.00

202.58

0.00

0.87

General

0.00

0.00

403.67

0.00

0.00

436.34

436.34

0.00

436.34

32.67

0.00

Sub

Tota

l (N

SSH

)34

1.24

161.

8456

41.0

3-2

370.

600.

0035

43.5

935

43.5

90.

0035

43.5

945

2.56

Gra

nd T

otal

483.

7532

22.5

375

34.1

7-3

519.

3020

25.8

255

91.2

576

17.0

70.

0076

17.0

7-8

63.4

3

Net

Sur

plus

/ (D

efici

t)-8

63.4

3Pr

evio

us Y

ear S

urpl

us /

(Defi

cit)

2738

.77


108

NOTE - 10 SHORT TERM PROVISIONS(` in lakh)

Particulars As At 31.03.18 As At 31.03.17Provisions for Employee BenefitsForPayRevision 2328.11 2328.11 0.00 0.00OthersForDoubtfulDebts&Advances 11165.91 11386.47Less:AdjustmentaspercontraagainstTradeReceivables,Loans&Advances,etc. 11165.91 0.00 11386.47 0.00

ForProposedDividend 0.00 3126.18ForTaxonProposedDividend 0.00 0.00 636.50 3762.68 For Exchange VariationBalanceasperlastBalanceSheet 1664.59 1441.16Add:ProvisionmadeduringtheYear 465.70 456.14Less:UtilisedforExchangeVariationLosses 577.94 0.00Less:Amountwrittenback 0.00 1552.35 232.70 1664.59As per Balance Sheet 3880.46 5427.27

ANNEXURE - 10A DETAILS OF ADDITIONS, REVERSALS & UTILIZATIONS OF PROVISIONS(` in lakh)

Particulars Opening Balance

Additions during the Year

Utilizations/ Reversals/

Adjustments

Closing Balance

ForPayRevision 0.00 2328.11 0.00 2328.11ForDoubtfulDebts&Advances 0.00 (220.56) (220.56) 0.00ForProposedDividend 3126.18 0.00 3126.18 0.00ForTaxonProposedDividend 636.50 0.00 636.50 0.00ForExchangeVariation 1664.59 465.70 577.94 1552.35Total 5427.27 2573.24 4120.06 3880.46

Note: In compliance with provisions of AS-29


109

NO

TE -

11 F

IXED

ASS

ETS

(` in

lakh

)

Part

icul

ars

GR

OSS

BLO

CK

A

CC

UM

ULA

TED

DEP

REC

IATI

ON

LTA

NET

BLO

CK

As

At

01/0

4/17

Add

ition

sSa

le

Acq

uire

d th

roug

h B

usin

ess

Com

bina

tion

Rev

alua

tion/

(Im

pairm

ent)

Inte

r Uni

t Tr

ansf

er /

Inte

r Gro

up

Adj

ustm

ent

Cos

t As

At

31/0

3/18

As

At

01/0

4/17

Dep

reci

atio

n C

harg

e fo

r th

e Y

ear

Sale

sA

djus

tmen

t in

clud

ing

Impa

irmen

t

Inte

r Uni

t Tr

ansf

er /

Inte

r Gro

up

Adj

ustm

ent

As

At

31/0

3/18

As

At

31/0

3/18

As

At

31/0

3/17

As

At

31/0

3/18

As

At

31/0

3/17

TAN

GIB

LE A

SSET

S1.

OW

N A

SSET

SB

uilding

4743.14

136.61

1.90

0.00

0.00

0.00

4877.85

853.53

98.91

0.00

0.00

0.00

952.44

0.00

0.00

3925.41

3889.61

Furniture&Fittings

477.73

57.72

11.51

0.00

0.00

0.00

523.94

260.87

32.21

10.43

0.00

0.00

282.65

0.00

0.00

241.29

216.86

Land

30.83

0.00

0.00

0.00

0.00

0.00

30.83

3.13

0.35

0.00

0.00

0.00

3.48

0.00

0.00

27.35

27.70

O

fficeEquipments

820.00

78.35

77.85

0.00

0.00

0.15

820.35

635.04

78.64

73.55

0.00

0.01

640.12

0.00

0.00

180.23

184.96

Vehicle

115.59

0.00

0.01

0.00

0.00

0.00

115.58

62.78

9.17

0.01

0.00

0.00

71.94

0.00

0.00

43.64

52.82

P

lant&Equipment

914.69

379.01

2.33

0.00

0.00

-913.61

2204.98

499.47

102.21

2.21

0.00

0.00

599.47

0.00

0.00

1605.51

415.22

T

otal

7101

.98

651.

6993

.60

0.00

0.00

-913

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8573

.53

2314

.82

321.

4986

.20

0.00

0.01

2550

.10

0.00

0.00

6023

.43

4787

.17

2. L

EASE

D A

SSET

SP

lant&Eqipm

ents

135.68

0.00

0.00

0.00

0.00

0.00

135.68

121.51

0.00

0.02

-44.77

0.00

76.72

58.91

14.12

0.05

0.05

3. S

EIZE

D L

EASE

ASS

ETS

P

lant&Eqipm

ents

67.63

0.00

0.00

0.00

0.00

0.00

67.63

116.07

0.00

4.59

0.00

0.00

111.48

-44.76

-49.36

0.91

0.91

4. A

SSET

S A

CQ

UIR

ED O

UT

OF

GO

VT. G

RA

NTS

Land

23.04

0.00

0.00

0.00

0.00

0.00

23.04

4.95

0.14

0.00

0.00

0.00

5.09

0.00

0.00

17.95

18.09

B

uilding

879.85

0.00

0.00

0.00

0.00

0.00

879.85

408.67

14.63

0.00

0.00

0.00

423.30

0.00

0.00

456.55

471.18

Furniture&Fittings

92.09

37.25

2.66

0.00

0.00

0.00

126.68

60.67

4.70

2.53

0.00

0.00

62.84

0.00

0.00

63.84

31.42

O

fficeEquipments

565.21

188.50

1.11

0.00

0.00

0.00

752.60

453.62

66.68

1.05

0.00

0.00

519.25

0.00

0.00

233.35

111.59

Vehicle

11.91

0.00

0.75

0.00

0.00

0.00

11.16

11.38

0.00

0.71

0.00

0.00

10.67

0.00

0.00

0.49

0.53

P

lant&Equipment

2005.11

1648.15

25.99

0.00

0.00

0.00

3627.27

1255.67

157.87

24.18

0.00

0.00

1389.36

0.00

0.00

2237.91

749.44

T

otal

3577

.21

1873

.90

30.5

10.

000.

000.

0054

20.6

021

94.9

624

4.02

28.4

70.

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0024

10.5

10.

000.

0030

10.0

913

82.2

55.

ASS

ETS

NO

T A

CQ

UIR

ED O

UT

OF

GO

VT. G

RA

NTS

ON

AC

CO

UN

T O

F TE

CH

NIC

AL

CEN

TRES

B

uilding

674.60

244.28

0.00

0.00

0.00

0.00

918.88

33.45

33.35

0.00

0.00

0.00

66.80

0.00

0.00

852.08

641.15

Furniture&Fittings

112.67

21.29

1.77

0.00

0.00

0.00

132.19

35.84

10.36

1.49

0.00

0.00

44.71

0.00

0.00

87.48

76.83

O

fficeEquipments

510.71

46.58

-3.50

0.00

0.00

-0.15

560.94

323.05

93.80

-3.80

0.00

-0.01

420.66

0.00

0.00

140.28

187.66

P

lant&Equipments

632.23

60.48

0.98

0.00

0.00

0.00

691.73

110.69

50.05

0.67

0.00

0.00

160.07

0.00

0.00

531.66

521.54

T

OTA

L19

30.2

137

2.63

-0.7

50.

000.

00-0

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2303

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503.

0318

7.56

-1.6

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27.1

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TO

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812.

7128

98.2

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3.36

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7.64

-44.

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41.0

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P

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AR11687.02

1200.41

97.74

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-23.02

12812.71

4757.18

585.49

92.64

0.00

-0.35

5250.39

-35.24

-34.86

7597.56

6964.68

INTA

NG

IBLE

ASS

ETS

01. O

WN

ASS

ETS

C

omputerS

oftware

96.74

35.07

2.29

0.00

0.00

0.00

129.52

63.49

18.63

2.29

0.00

0.00

79.83

0.00

0.00

49.69

33.25

02. A

SSET

S A

CQ

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ED O

UT

OF

GO

VT. G

RA

NT

C

omputerS

oftware

12.34

45.69

0.00

0.00

0.00

0.00

58.03

3.10

8.85

0.00

0.00

0.00

11.95

0.00

0.00

46.08

9.24

03. A

SSET

S N

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AC

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OU

T O

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OVT

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AN

TS O

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CC

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OF

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omputerS

oftware

199.26

42.35

0.00

0.00

0.00

0.00

241.61

93.64

41.50

0.00

0.00

0.00

135.14

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106.47

105.62

S

UB

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ASS

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308.

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429.

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68.9

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6.92

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202.

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AR269.50

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1.20

308.34

106.51

54.08

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160.23

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148.11

162.99


110

NO

TE -

11 F

IXED

ASS

ETS

(` in

lakh

)

Part

icul

ars

GR

OSS

BLO

CK

A

CC

UM

ULA

TED

DEP

REC

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ON

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Add

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le

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d th

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At

31/0

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As

At

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Dep

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r th

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ear

Sale

sA

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ing

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31/0

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As

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31/0

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As

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31/0

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As

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31/0

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01. C

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P

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AR10046.03

2581.93

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21.82

12606.14

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0.00

0.00

0.00

0.00

0.00

0.00

0.00

1275

6.47

1260

6.14

P

REV

IOUSYE

AR10046.03

2581.93

0.00

0.00

0.00

21.82

12606.14

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

12606.14

10046.03

GR

AN

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L25

727.

1940

85.2

612

5.65

0.00

0.00

0.00

2968

6.81

5410

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9.93

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770.

0060

67.9

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2423

604.

6920

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EVIOUSYE

AR22002.55

3822.38

97.74

0.00

0.00

0.00

25727.19

4863.69

639.57

92.64

0.00

0.00

5410.62

-35.24

-34.86

20351.81

17173.70


111

NOTE - 12 NON-CURRENT INVESTMENTS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Trade InvestmentsInvestmentsinProperties 0.00 0.00InvestmentsinEquityInstruments 0.00 0.00InvestmentsinPreferenceShares 0.00 0.00InvestmentsinGovernmentorTrustSecurities 0.00 0.00InvestmentsinDebenturesorBonds 0.00 0.00InvestmentsinMutualFunds 0.00 0.00InvestmentsinPartnershipFirms 0.00 0.00OtherNon-CurrentInvestments 0.00 0.00 Sub Total 0.00 0.00Other InvestmentsInvestmentsinProperties 0.00 0.00InvestmentsinEquityInstruments 21.03 22.55InvestmentsinPreferenceShares 0.00 0.00InvestmentsinGovernmentorTrustSecurites 0.00 0.00InvestmentsinDebenturesorBonds 0.00 0.00InvestmentsinMututalFunds 0.00 0.00InvestmentsinPartnershipFirms 0.00 0.00OtherNon-CurrentInvestments 0.00 0.00 Sub Total 21.03 22.55Total 21.03 22.55Less:ProvisionforDimunitionintheValueofNonCurrentInvestments 15.00 15.00As per Balance Sheet 6.03 7.55

ANNEXURE - 12A DETAILS OF AGGREGATE QUOTED AND UNQUOTED NON-CURRENT INVESTMENTS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17AggregateamountofQuotedInvestments(Marketvalueof` 235.68lakh(PreviousYear` 235.34lakh)

6.03 7.55

AggregateamountofUnquotedInvestments 15.00 15.00

ANNEXURE - 12B DETAILS OF NON-CURRENT NON-TRADE INVESTMENTS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.174,70,230(aftersub-divisionbyM/sSingerIndiaLtd.at̀ 2/-eachfullypaid-[94,046 shares of `10/- each before sub-division] (Prev. Year 1,17,700Equity Shares ofM/s Singer India Ltd. of `10/- each fully paid 1.095%holding).(MarketValue`235.68lakh@`50.12pershare(BSE)(MarketValue`235.34lakh@`199.95pershareinpreviousyear)

6.03 7.55

1,00,000EquitySharesof`10eachfullypaid-upinM/sSmallIndustriesProductPromotedOrganisationLtd.(SIPPO)(12.06%holding)(Unquoted) 10.00 10.00

50,000EquityShares of`10each fully paid-up inM/sSmall IndustriesProductsMarketingOrganisationLtd.(SIPMO)(N.A.%holding)(Unquoted) 5.00 5.00

Sub Total 21.03 22.55Less:ProvisionforDiminutionintheValueofInvestments 15.00 15.00TOTAL 6.03 7.55


112

NOTE - 13 LONG TERM LOANS & ADVANCES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17CapitalAdvances 1068.59 1069.01SecurityDeposits 268.31 736.81LoansandAdvancestoEmployees 11.42 17.50OtherLoansandAdvances 82.55 221.95LoansandAdvancestoRelatedParties 0.00 0.00Deposits/BalanceswithExcise/SalesTaxAuthorities 32.83 10.05IncomeTaxRecoverable 430.37 402.34As per Balance Sheet 1894.07 2457.66

ANNEXURE - 13A DETAILS OF LONG TERM LOANS & ADVANCES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Capital AdvancesWithRITES 392.03 362.97Add:InterestAccruedonCapitalAdvance 0.00 392.03 0.00 362.97WithCPWD 224.17 253.65Add:InterestAccruedonCapitalAdvance 0.00 224.17 0.00 253.65WithNBCC 452.39 452.39Add:InterestAccruedonCapitalAdvance 0.00 452.39 0.00 452.39 Total 1068.59 1069.01Security DepositsSecuredConsideredGood 88.78 1.88UnsecuredConsideredGood 179.53 734.93ConsideredDoubtful 0.05 0.05

268.36 736.86LessAdditional/NormalInterestSuspense 0.00 0.00

268.36 736.86Less:ProvisionforDoubtfulDepositsasperContra 0.05 0.05 Total 268.31 736.81Loans and Advances to EmployeesSecuredConsideredGood 11.37 17.27UnsecuredConsideredGood 0.05 0.23ConsideredDoubtful 0.00 0.00


11.42 17.50Less:ChequessentforCollection 0.00 0.00Less:ProvisionforDoubtfulLoansandAdvances

asperContra 0.00 0.00 Total 11.42 17.50Other Loans and Advances Composite Term LoanSecuredConsideredGood 69.14 72.70UnsecuredConsideredGood 0.00 0.00ConsideredDoubtful(InclIntt.SuspenseContra) 207.79 221.02


220.04 230.43Less:ChequessentforCollection 0.00 0.00Less:ProvisionforDoubtfulLoansandAdvancesasper

Contra 150.91 69.13 157.74 72.70


113

ANNEXURE - 13A DETAILS OF LONG TERM LOANS & ADVANCES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17 Term LoanSecuredConsideredGood 10.09 10.09UnsecuredConsideredGood 0.00 0.00ConsideredDoubtful(InclIntt.SuspenseContra) 5.35 5.35

15.44 15.44Less:Additional/NormalInterestSuspense 4.25 4.25


Contra 1.10 10.09 1.10 10.09 Advance Recoverable in Cash or in Kind or for value to

be receivedSecuredConsideredGood 3.30 20.72UnsecuredConsideredGood 0.03 118.44ConsideredDoubtful 103.32 15.29



Contra 103.32 3.33 15.29 139.16 Total 82.55 221.95Loans and Advances to Related PartiesSecuredConsideredGood 0.00 0.00UnsecuredConsideredGood 0.00 0.00ConsideredDoubtful 0.00 0.00

0.00 0.00Less:ProvisionforDoubtfulLoansandAdvancesasperContra 0.00 0.00

Total 0.00 0.00

ANNEXURE - 13B DETAILS OF LONG TERM LOANS & ADVANCES (INCLUDED UNDER LOANS AND ADVANCES TO EMPLOYEES) DUE BY DIRECTORS OR OTHER OFFICERS OF THE CORPORATION

(ìnLakh)Particulars As At 31.03.18 As At 31.03.17Directors* 0 0OtherOfficersoftheCompany* 11.42 17.50FirminwhichDirectorisaPartner* 0 0PrivatecompanyinwhichDirectorisamember 0 0Total 0 0[*]Eitherseverallyorjointly.


114

NOTE - 14 OTHER NON-CURRENT ASSETS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Long Term Trade Receivables (Including Trade Receivables on Deferred Credit Terms)SecuredConsideredGood 0.00 0.00UnsecuredConsideredGood 0.00 0.00ConsideredDoubtful 0.00 0.00

0.00 0.00Less:ProvisionforDoubtfulDuesasperContra 0.00 0.00 0.00 0.00Others 57.93 71.08Debts due by Related PartiesSecuredConsideredGood 0.00 0.00UnsecuredConsideredGood 0.00 0.00ConsideredDoubtful 0.00 0.00

0.00 0.00Less:ProvisionforDoubtfulDuesasperContra 0.00 0.00 0.00 0.00As per Balance Sheet 57.93 71.08

ANNEXURE - 14A DETAILS OF OTHER NON-CURRENT ASSETS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Interest Accrued but not DueOnFixed/ShortTermDeposits 0.00 0.00OnOthers 57.93 57.93 71.08 71.08Total 57.93 71.08


115

NOTE - 15 CURRENT INVESTMENTS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17InvestmentsinProperties 0.00 0.00InvestmentsinEquityInstruments 0.00 0.00InvestmentsinPreferenceShares 0.00 0.00InvestmentsinGovernmentorTrustSecurities 0.00 0.00InvestmentsinDebenturesorBonds 0.00 0.00InvestmentsinMutualFunds 0.00 0.00InvestmentsinPartnershipFirms 0.00 0.00OtherCurentInvestments 0.00 0.00Total 0.00 0.00Less:ProvisionforDimunitioninthevalueofCurrentInvestments 0.00 0.00As per Balance Sheet 0.00 0.00

ANNEXURE - 15A DETAILS OF AGGREGATE QUOTED AND UNQUOTED CURRENT INVESTMENTS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17AggregateamountofQuotedInvestments(Marketvalueof`N/A(PreviousYear`N/A) 0.00 0.00

AggregateamountofUnquotedInvestments(PreviousYear`N/A) 0.00 0.00

NOTE - 16 INVENTORIES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17RawMaterialsandComponents 1.02 2.60Work-In-Process 0 0FinishedGoods 2.16 13.58Stock-In-Trade 0 0StoresandSpares 9.93 7.55LooseToolsandMeasuringInstruments 6.02 5.41PatternsandMoulds 0 0Land&BuildinginStock,IndustrialEstate,Naini 19.65 19.65Goods-In-Transit 509.43 649.27Sub Total 548.21 698.06Less:ProvisionforObsoleteStock 0.06 8.54As per Balance Sheet 548.15 689.52


116

NOTE - 17 TRADE RECEIVABLES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Trade Receivables Outstanding for a period exceeding six months from the date they are due for paymentSecuredConsideredGood 7556.74 5661.39UnsecuredConsideredGood 35.02 88.73ConsideredDoubtful(InclP.I.SuspenseContra) 1706.18 1797.94

9297.94 7548.06Less:SeizedLeasedSuspense 74.75 74.75Less:PenalInterestSuspense 517.06 544.70

8706.13 6928.61Less:ChequessentforCollection 0.00 0.00Less:ProvisionforDoubtfulDebtsasperContra 1114.37 7591.76 1178.49 5750.12Trade Receivables Outstanding for a period less than six months from the date they are due for paymentSecuredconsideredGood 8417.01 6468.50UnsecuredconsideredGood 114.01 54.95ConsideredDoubtful(InclP.I.SuspenseContra) 7.32 7.32

8538.34 6530.77Less:SeizedLeasedSuspense 0.00 0.00Less:PenalInterestSuspense 7.32 7.32

8531.02 6523.45Less:ChequessentforCollection 0.05 0.15Less:ProvisionforDoubtfulDebtsasperContra 0.00 8530.97 0.00 6523.30As per Balance Sheet 16122.73 12273.42

ANNEXURE - 17A DETAILS OF TRADE RECEIVABLE STATED ABOVE INCLUDE DEBTS DUE BY DIRECTORS OR OFFICERS OF THE CORPORATION

(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Directors* 0 0OtherOfficersoftheCompany* 0 0Firminwhichdirectorsisapartner* 0 0PrivateCompanyinwhichdirectorisamember 0 0Total 0 0[*]Eitherseverallyorjointly.


117

ANNEXURE - 17B DETAILS OF TRADE RECEIVABLES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17TRADE RECEIVABLES - HIRE PURCHASE Trade Receivables Outstanding for a period exceeding six

month from the date they are due for paymentSecuredConsideredGood 0 0UnsecuredConsideredGood 0 0ConsideredDoubtful(InclP.I.SuspenseContra) 923.72 1044.70

923.72 1044.70Less:PenalInterestSuspense 285.83 322.87

637.89 721.83Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulDebtsasperContra 637.89 0.00 721.83 0 Trade Receivables Outstanding for a period less than six

months from the date they are due for paymentSecuredConsideredGood 0 0UnsecuredConsideredGood 0 0ConsideredDoubtful(InclP.I.SuspenseContra) 0 0

0 0Less:PenalInterestSuspense 0 0

0 0Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulDebtsasperContra 0 0 0 0 Sub Total 0 0TRADE RECEIVABLES - LEASING Trade Receivables Outstanding for a period exceeding six

month from the date they are due for paymentSecuredConsideredGood 0 0UnsecuredConsideredGood 0 0ConsideredDoubtful(InclP.I.Suspense&SeizedLeased

SuspenseContra) 238.65 257.57

238.65 257.57Less:SeizedLeaseSuspense 74.75 74.75Less:PenalInterestSuspense 67.13 72.22

96.77 110.60Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulDebtsasperContra 96.77 0 110.60 0 Trade Receivables Outstanding for a period less than six

months from the date they are due for paymentSecuredConsideredGood 0 0UnsecuredConsideredGood 0 0ConsideredDoubtful 0 0

0 0Less:SeizedLeaseSuspense 0 0Less:PenalInterestSuspense 0 0

0 0Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulDebtsasperContra 0 0 0 0 Sub Total 0 0


118

ANNEXURE - 17B DETAILS OF TRADE RECEIVABLES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17TRADE RECEIVABLES - MARKETING Trade Receivables Outstanding for a period exceeding six

month from the date they are due for paymentSecuredConsideredGood 7383.60 5568.80UnsecuredConsideredGood 35.02 88.73ConsideredDoubtful 305.42 265.49

7724.04 5923.02Less:PenalInterestSuspense 0 0

7724.04 5923.02Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulDebtsasperContra 305.42 7418.62 265.49 5657.53 Trade Receivables Outstanding for a period less than six

months from the date they are due for paymentSecuredConsideredGood 8291.32 6328.63UnsecuredConsideredGood 75.63 30.94ConsideredDoubtful 0 0

8366.95 6359.57Less:PenalInterestSuspense 0 0

8366.95 6359.57Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulDebtsasperContra 0 8366.95 0 6359.57 Sub Total 15785.57 12017.10TRADE RECEIVABLES - OTHERS Trade Receivables Outstanding for a period exceeding six

month from the date they are due for paymentSecuredConsideredGood 173.14 92.59UnsecuredConsideredGood 0 0ConsideredDoubtful(InclP.I.Suspense/ReceivableContra) 238.39 230.18


247.43 173.16Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulDebtsasperContra 74.29 173.14 80.57 92.59 Trade Receivables Outstanding for a period less than six

months from the date they are due for paymentSecuredConsideredGood 125.69 139.87UnsecuredConsideredGood 38.38 24.01ConsideredDoubtful(InclP.I.Suspense/ReceivableContra) 7.32 7.32


164.07 163.88Less:ChequessentforCollection 0.05 0.15Less:ProvisionforDoubtfulDebtsasperContra 0 164.02 0 163.73 Sub Total 337.16 256.32Total 16122.73 12273.42


119

NOTE - 18 CASH AND OTHER BANK BALANCES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17(i) Cash & Cash Equivalents Balances with BanksInCurrentAccounts 3694.53 4388.30InDepositAccounts 0 0InFixedDeposits-Maturingover12Months 0 0InFixedDeposits-Maturingupto3Months 1895.22 4950.88InFixedDeposits-Maturingmorethan3Months

&upto12Months 0 0

InFixedDeposits-AsSecuritywithGovt.Authorities 0 0InFixedDeposits-Maturingwithin12Months 0 5589.75 0 9339.18Cheques,Draft-on-hand 0.05 0Cash-on-hand 0.24* 0.74ImprestwithEmployees 0.00 0Stamps-on-hand 0.11 0.15RemittanceinTransit 444.90 158.09BalanceinPostOfficeSavingBankaccountkeptasSecurity. 0 0

Sub Total 6035.05 9498.16(ii) Other Bank BalancesInFixedDeposits-Maturingmorethan3Months

&upto12Months 9.13 8.55

InFixedDeposits-Maturingover12Months 7.78 5.51InFixedDeposits-AsSecuritywithGovt.Authorities 0 0.55As per Balance Sheet 6051.96 9512.77

* Cash-on-Hand includes stock of Rupay Card worth ` 0.10 Lakh


120

NOTE - 19 SHORT TERM LOANS & ADVANCES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Loan and Advances to Related Parties

SecuredConsideredGood 0 0UnsecuredConsideredGood 0 0ConsideredDoubtful 0 0

0 0LessAdditional/NormalInterestSuspense 0 0

0 0Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulLoansandAdvancesasperContra 0 0 0 0

Others Others Loans and Advances

SecuredConsideredGood 1334.73 1334.73UnsecuredConsideredGood(BackedbyBG) 270330.06 279432.44ConsideredDoubtful 9844.83 10136.06


281158.94 290502.92Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulLoansandAdvancesasperContra 9494.14 271664.80 9735.75 280767.18

Advance Recoverable in Cash or in Kind or for value to be received

SecuredConsideredGood 4934.27 3661.78UnsecuredConsideredGood-Others 645.92 540.58UnsecuredConsideredGood-fromBanks(BackedbyBG)* 17399.82 17057.38

ConsideredDoubtful 32.99 29.0223013.00 21288.76

Less:Additional/NormalInterestSuspense 0 023013.00 21288.76

Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulLoansandAdvancesasperContra 32.99 22980.01 29.02 21259.74

Loans and Advance to EmployeesSecuredConsideredGood 6.43 9.99UnsecuredConsideredGood 16.49 27.34ConsideredDoubtful 0.48 0.49

23.40 37.82Less:Additional/NormalInterestSuspense 0 0

23.40 37.82Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulLoansandAdvancesasperContra 0.48 22.92 0.49 37.33


121

OthersDeposits/BalanceswithExcise/SalesTaxAuthorities 21.98 71.26AdvancePaymentofIncomeTax/TDS(NetofProvisions) 14.29 148.53GSTRecoverable 424.12 0

As per Balance Sheet 295128.12 302284.04

* This includes an amount of Rs 17057.38 lakh receivable from United Bank of India on account of BG invoked in July-Aug., 2016

ANNEXURE - 19A DETAILS OF SHORT TERM LOANS & ADVANCES (INCLUDED UNDER LOANS AND ADVANCES TO EMPLOYEES) DUE BY DIRECTORS OR OTHER OFFICERS OF THE CORPORATION

(ìnLakh)Particulars As At 31.03.18 As At 31.03.17Directors* 0 0OtherOfficersoftheCompany* 0 0FirminwhichDirectorisaPartner* 0 0PrivatecompanyinwhichDirectorisamember 0 0Total 0 0[*]Eitherseverallyorjointly.


122

ANNEXURE - 19B DETAILS OF OTHER SHORT TERM LOANS AND ADVANCES(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17OTHER LOANS AND ADVANCES Raw Material Distribution (RMD)SecuredConsideredGood 1220.10 1220.10UnsecuredConsideredGood(BackedbyBG) 270330.06 279432.44ConsideredDoubtful(InclIntt.SuspenseContra) 8153.42 8426.26


279427.77 288753.38Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulLoansandAdvancesas

perContra 7877.61 271550.16 8100.84 280652.54

Bills of Exchange Discounted (BD)SecuredConsideredGood 114.63 114.63UnsecuredConsideredGood(BackedbyBG) 0 0ConsideredDoubtful(InclIntt.SuspenseContra) 1691.41 1709.80


1731.17 1749.56Less:ChequessentforCollection 0 0Less:ProvisionforDoubtfulLoansandAdvancesas

perContra 1616.53 114.64 1634.92 114.64

Total 271664.80 280767.18


123

NOTE - 20 OTHER CURRENT ASSETS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Security DepositsSecuredConsideredGood 5.10 101.21UnsecuredConsideredGood 25.15 41.58ConsideredDoubtful 0.24 0.24

30.49 143.03LessAdditional/NormalInterestSuspense 0 0

30.49 143.03Less:ProvisionforDoubtfulDuesasperContra 0.24 30.25 0.24 142.79Others 893.04 29.16As per Balance Sheet 923.29 171.95

ANNEXURE - 20A DETAILS OF OTHER CURRENT ASSETS - OTHERS(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17Interest Accrued but not dueOnFixed/ShortTermdeposits 1.55 3.78OnOthers 22.67 24.22 25.06 28.84Interest ReceivableFromBanks 273.70 268.62Less:ProvisionforInterestReceivableasperContra 268.30 5.40 268.30 0.32AmountsReceivablefromGovernmentofIndiaagainstDeficitinGrants 863.42 0 0

Total 893.04 29.16


124

NOTE - 21 REVENUE FROM OPERATIONS (CONSOLIDATED)(ìnLakh)

Particulars For the Year Ending 31.03.18

For the Year Ending 31.03.17

SaleofProducts 205780.73 179098.05SaleofServices 6088.40 5819.56InterestEarned 35820.07 39105.90ProcessingFees/ServiceChargesEarned 5188.98 5493.60OtherOperatingRevenues 703.68 1369.68As per statement of Profit and Loss 253581.86 230886.79Sale of ProductsMarketing 22370.10 18964.40Export 0 381.11RawMaterialDistribution* 183410.63 159752.54 Total (A) 205780.73 179098.05Sale of ServicesIncomefromGovernmentPurchaseRegistration 1362.06 1406.55IncomeoninformediaryServices 326.03 310.91ApplicationProcessingFees 3.86 4.05Licence&HouseKeepingFees 1059.05 815.14Rent 459.67 741.99RealizationfromTrainingActivities 1431.13 1217.13RealizationonaccountofCommonFacilities 676.58 580.88IncomefromExhibitionCentres 397.49 319.77ReceiptsfromExhibitions,Seminars,Meets,Conferences

andMarketingCampaigns 111.10 221.44ProjectConsultancyCharges 171.29 130.55IncomefromTraining-cum-IncubationCenter(TIC) 68.20 48.64OtherReceiptsfromServices 21.94 22.51 Total (B) 6088.40 5819.56Interest Earned From PartiesNormal 35970.77 39240.09Less:InterestonRiskFund 182.94 35787.83 140.40 39099.69PenalInterest 0 32.24 0 6.21ByContraAdjustmenttoPenalInterestSuspenseA/C 0 0.69Less:LossesW/OffonA/CofPenalInterestSuspenseA/Cby

ContraAdjustment 0 0.69

GainofInterestonForeignCurrencyTransactionsandTranslation(Net) 0 0

Total (C) 35820.07 39105.90Processing Fees/Service Charges EarnedRawMaterialDistribution 1931742.61 4856.25 1776115.58 5178.38MiscellaneousItems 60288.63 332.73 53604.34 315.22 Total (D) 1992031.24 ** 5188.98 1829719.92 ** 5493.60Other Operating RevenuesCompensationforUseandOccupationofInfrastructure 341.93 375.86Excess Provision Written Back:KFW 56.63 288.56GovernmentGuaranteeFee 0 0Others 260.03 316.66 231.50 520.06SundryCreditBalancesWrittenBack 45.09 72.08GainonForeignCurrencyTransactionsandTranslation(Net) 0 401.68 Total (E) 703.68 1369.68

* Details of Raw Material DistributionParticulars 2017-18 2016-17Aluminium 74349.47 64053.04Iron&Steel 98840.15 81316.33

Others 10221.01 14383.17Total 183410.63 159752.64

**Grossturnoveronwhichprocessingfeeshasbeencharged.


125

NOTE - 22 OTHER INCOME (CONSOLIDATED)



Interest On:LoantoEmployees 2.47 4.09Fixed/ShortTermDeposits 5.96 3.04IncomeTaxRefunds 0 192.76Others 2.03 10.46 4.34 204.23OtherMiscellaneousReceipts 62.71 71.90DividendIncome 4.02 3.04As per Statement of Profit and Loss 77.19 279.17

NOTE - 23 GRANTS AND SUBSIDIES (CONSOLIDATED)(ìnLakh)



ForPromotionalActivities 7499.63 6587.48Less:CapitalExpenditure(Net) 2025.82 129.91

5473.81 6457.57Less:AmountappropriatedoutofGovt.Grants(AsperStatementofProfitandLoss-Promotional) (117.43) 0

As per Statement of Profit and Loss 5591.24 6457.57

NOTE - 24 PURCHASES OF STOCK IN TRADE (CONSOLIDATED)(ìnLakh)



Marketing ActivityMarketing 22365.63 18948.45Export 0 311.42RawMaterialDistribution* 182254.54 158976.15As per Statement of Profit and Loss 204620.17 178236.02

(ìnLakh)

* Details of Raw Material DistributionParticulars 2017-18 2016-17

Aluminium 73537.59 64053.04

Iron&Steel 98605.17 80671.26

Others 10111.78 14251.85

Total 182254.54 158976.15


126

NOTE - 25 CHANGES IN INVENTORIES (CONSOLIDATED)(ìnLakh)



Finished Goods:ClosingStock 2.16 13.76Less:OpeningStock 13.76 10.88AdjustmentinStock 8.72 (2.88) 0 2.88Work in Process:ClosingStock 0 0Less:OpeningStock 0 0AdjustmentinStock 0 0 0 0Goods-In-Transit (117.09) 649.27As per Statement of Profit and Loss (119.97) 652.15

NOTE - 26 EMPLOYEES BENEFITS EXPENSE (CONSOLIDATED)(ìnLakh)



SalariesandAllowances 8392.27 6468.11Contributions to -ProvidentFund 686.51 579.65SuperannuationScheme/PensionScheme 536.49 1223.01 474.06 1053.71GratuityFundContributions 1426.37 450.84StaffWelfareExpenses 205.25 228.46OtherBenefits 1759.81 1527.87Directors (Including Chairman-cum-Managing Director)SalariesandAllowances 81.02 67.19 Contributions to -ProvidentFund 7.33 6.04SuperannuationScheme/PensionScheme 6.10 13.43 5.10 11.14GratuityFundContributions 22.45 1.90Others 12.03 8.67As per Statement of Profit and Loss 13135.64 9817.89

Note: The above employee benefit includes Compensatory Pension (Rs. 81.51 lakh), Medical Benefits Paid (Rs. 350.94 lakh), Leave Encashment (Rs. 321.60 lakh), EDLI Charges (Rs. 27.91 lakh) and PRP (Rs. 505.00 lakh)


127

NOTE - 27 FINANCE COSTS (CONSOLIDATED)(ìnLakh)



Interest on Loan On:KreditanstaltWestGermany(KFWLoans) 559.26 547.71CasaDepositiEPrestiti,Italy(PreviouslyknownasArtigiancassaSPA) 3.58 3.49

Banks 8622.55 12039.56CommercialPaper 4101.20 7114.10Others 0 13286.59 0 19704.86Other Borrowing Costs:GovernmentGuaranteeFee 22.06 23.14LossofInterestonforeigncurrencytransactionsandtranslation 0 22.06 0 23.14

Other Finance Charges 32.20 20.00As per Statement of Profit and Loss 13340.85 19748.00

NOTE - 28 DEPRECIATION AND AMORTIZATION (CONSOLIDATED)(ìnLakh)



Depreciation onFixedAssets 569.18 488.39LeasedAssets 0 0Assets acquired against GrantsDepreciationasperContra 252.87 151.18Less:ReplacementReserveasperContra 252.87 0 151.18 0As per Statement of Profit and Loss 569.18 488.39

NOTE - 29 CORPORATE SOCIAL RESPONSIBILITY

Expenses required to be incurred Rs 302.84 lakh during 2017-18

S.No. Particulars

For the Year Ended 31.03.2018 For the Year Ended 31.03.2017

In cash Yet to be paid Total In cash Yet to be

paid Total

(i). Construction/acqu-isitionofanyassets NIL 0.35 0.35 39.49 1.83 41.32

(ii) Onpurposesotherthan(i)above 216.12 86.48 302.60 193.54 38.93 232.47

Actual Expenses 216.12 86.83 302.95 233.03 40.76 273.79RelatedPartiesTransactions NIL NIL

(ìnLakh)


128

NOTE -30 OTHER EXPENSES (CONSOLIDATED) (ìnLakh)



Electricity,Power&WaterCharges 582.65 596.13Printing&Stationery 97.07 97.42Insurance 11.52 10.82Travelling,Conveyance&VehicleCharges 595.46 629.83FreightandOctroiExpenses 25.62 25.72CommunicationExpenses 152.66 169.80Rent 382.13 329.26StaffRecruitmentExpenses 10.81 2.65Licences,Rates&Taxes 76.96 79.44ExpenseonSecurity 1588.57 1076.77Repairs&MaintenanceExpenses 432.72 532.66PaymentstoStatutoryAuditors 46.51 47.98PaymenttoInternalauditors 41.52 38.47Legal,ProfessionalandConsultancyCharges 318.85 306.56Directors'SittingFee 4.35 1.44Directors'OtherExpenses 41.41 42.12Miscellaneous&ContingentExpenses 22.32 23.31BadDebts/IrrecoverableAdvancesWrittenOff 134.73 457.26LossonForeignCurrencyTransactionsandTranslation(Net) 203.68 0ExpenditureonInfomediaryServices 2.83 1.60ProjectConsultancyCharges 116.06 93.35ExpensesonGodownOperations 961.45 1103.17Business/SalesPromotionExpenses 153.20 124.67AdvertisementandPublicity 120.24 94.06Entertainment 30.22 31.82ExpenditureonExhibitions,SeminarsandConference 44.21 60.52TrainingExpenses 823.64 613.39CommonFacilitiesCharges 78.57 68.75ExpensesonInternationalCo-operation 0 51.38ExpensesonMarketingAssistanceScheme 816.03 1619.98PerformanceandCreditRatingFee 1008.27 3670.70ProvisionforObsoleteStock 0.06 8.54ProvisionforDoubtfulDebts 0 632.54ExpensesonSPRS 48.48 16.58ExpensesonSpecialMarketingAssistanceScheme 1262.80 543.86ExpensesonOthers-NSSH 1837.90 0As per Statement of Profit and Loss 12073.50 13202.55


129

ANNEXURE - 30A DETAILS OF OTHER EXPENSES (CONSOLIDATED)(ìnLakh)



Payment to Statutory Auditors for:StatutoryAuditFees 33.12 34.85TaxAuditFees 11.38 10.33OtherTaxationMatters 0.03 0.05OtherServices 0.01 0.58ReiumbursementofExpenses 1.97 2.18 Total 46.51 47.98Repairs & Maintenance Expenses on:Building 241.79 320.43Machinery 6.42 18.29Others 184.51 193.94 Total 432.72 532.66Bad Debts/Irrecoverable Advance Written Off:BadDebtsWrittenOff 134.73 457.26LossesWrittenOff 58.42 144.38Less:ContraAdjustmenttoLossesWrittenOff 58.42 0 144.38 0 Total 134.73 457.26Expenses on Marketing Assistance Scheme:ParticipationinDomesticExhibitions/TradeFairs 476.20 507.35ParticipationinInternationalExhibitions/TradeFairs 248.77 548.76OrganizationofDomesticExhibitions 27.30 104.58OrganizationofInternationalLevelExhibitions 0 78.26Co-SponsorshipofExhibitions 3.95 133.95Buyer-SellerMeets/VendorDevelopmentProgrammes 11.23 14.96MarketingCompaigns/Workshop 39.19 77.56OtherMarketingActivities 9.39 154.57 Total 816.03 1619.98Training ExpensesTrainingExpenses-Internal 423.90 374.21TrainingExpenses-Sponsored 293.30 148.34TrainingExpenses-Personal 65.04 46.40TrainingExpenses-Others 41.40 44.43 Total 823.64 613.39Expenses on Special Marketing Assistance Scheme:ParticipationinDomesticExhibitions/TradeFairs 952.54 543.86ParticipationinInternationalExhibitions/TradeFairs 243.62 0OrganizationvisittoInternationalExhibitions/TradeFairs/Seminarsabroad 29.06 0

VendorDevelopmentProgrammes 21.92 0OrganizingWorkshops/Seminars/AwarenessCampaignes 15.66 0

Total 1262.80 543.86


130

Expenses on Others - NSSH :FacilitatingparticipationofSC/STenterpreneurs 387.69 0Collection,Collation&Disseminationofinformation 0.55 0CapacityBuilding,SkillTraining,EDPs 86.78 0VendorDevelopment,NationalManufacturingCompetitivenessProgramme 0.32 0

AwarenessGenerationandPublicity 1046.85 0Technical&ManagerialSupporttoSC/STHub 315.71 0 Total 1837.90 0

NOTE - 31 PRIOR PERIOD ADJUSTMENTS (CONSOLIDATED)(ìnLakh)



IncomeInterestandServiceCharges 13.64 10.14OtherIncome 19.12 0Depreciation 0 32.76 0 10.14ExpenditureEmployeesRemuneration&OtherBenefits 0 0Depreciation 0 0Interest 0 0OtherExpenses 8.64 8.64 25.96 25.96As per Statement of Profit and Loss 24.12 (15.82)


131

NOTE - 32 TAX EXPENSE (CONSOLIDATED)(ìnLakh)



Provisions for Current TaxProvisionforCurrentTax 5740.00 6100.00ProvisionforDeferredTax (483.21) (219.25)ProvisionforWealthTax 0 0ProvisionforFringeBenefitTax 0 5256.79 0 5880.75Adjustment for Previous Year TaxesProvisionforTax 7.53 (13.43)ProvisionforDeferredTax 0 7.53 0 (13.43)MATCreditEntitlement 0 0As per Statement of Profit and Loss 5264.32 5867.32

NOTE - 33 EARNINGS PER EQUITY SHARE (CONSOLIDATED)(ìnLakh)


For the Year Ending

31.03.17WeightedAverageNumberofSharesOutstanding(No.) 532.99 532.99NetProfit/(Loss)aftertaxasperStatementofProfit&Loss(Rupees) 9940.66 10639.84E.P.S(Basic&Diluted)(Rupees)(Facevalueofshare.` 100/-) 18.65 19.96

NOTE - 34 CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) (CONSOLIDATED)

(ìnLakh)

ParticularsFor the

Year Ending 31.03.18

For the Year Ending

31.03.17(i) Contingent Liabilities:ClaimsagainsttheCoporationnotacknowledgedasDebts 125.12 165.13Guarantees 0 0DisputedIncomeTax,InterestTax,SalesTax,TradeTaxdemand. 550.40 1082.19OthermoneyforwhichtheCorporationiscontingentlyliable 153.35 387.33 As per Statement of Profit and Loss 828.87 1634.65(ii) Commitments:EstimatedamountofContractsremainingtobeexecutedonCapitalaccountandnotprovidedfor(netofadvances) 5575.87 5414.62

UncalledLiabilityonsharesandotherinvestmentspartlypaid. 0 0OtherCommitments 0 0As per Statement of Profit and Loss 5575.87 5414.62


132

NOTE – 35 Additional notes forming an integral part of the financial statements for the year ended 31st March, 2018.1. Letters seeking confirmation for year-end

outstandingbalanceshavebeensenttotradereceivables, creditors, contractors’ advances,deposits, borrowers etc. (except in caseswhere recovery certificate has been issuedand / or under litigation) with a request toconfirmorsendcommentwithinthestipulatedperiodfailingwhichbalanceasindicatedintheletter would be taken as confirmed. Further,noadversecommunicationhasbeenreceivedfromanyunit.Moreover,reconciliationsoftheaccounts with the units is carried out as anongoingprocess.

However, confirmations in some cases asdetailed below are awaited, the impact ofwhichintheopinionofthemanagementisnotsignificant:

a. Debit Balances (` in Lakh)

S.N. Particular Total Confirmation not received


2

Shorttermloans&Advances(excludingemployeesandstatutorydepositswithvarioustaxauthorities)

2,94,644.81 629.82

3

Longtermloans&advances(CapitalAdvancesandSecurityDeposits)

1,336.90 643.62

b. Credit Balances (` in Lakh)

S.N. Particular Total Confirmation not received

1 TradePayables 18,512.24 944.74

2 OtherCurrentLiabilities(SecurityDepositPayable,EMD,AdvancefromRMABuyers,AmountPayableforprojects,AmountPayabletoRatingAgencies)

5,693.07 999.84

3 OtherLong-termLiabilities(SecurityDepositPayable,EMD)

517.78 115.39

2. The title deeds in respect of followingpropertieshavenotbeenexecutedinfavouroftheCorporation:

(` in Lakh)

S.No Particulars of the Property

Area As At 31.03.2018

As At 31.03.2017

Gross value

written down value (WDV)

Gross value

written down value (WDV)

1 LandatTechnicalCentreHowrah

49.94acres

1.60 1.60 1.60 1.60

2 FlatsatBranchOfficeMumbai

3660.00sqft.

11.52 5.87 11.52 6.06

3. The provision for exchange variation lossesfor loans under Kreditanstalt West Germany(KFW)creditlineshavebeencreatedasperthetermsandconditionsoftheloanagreements:

a) Under XIth line of credit, provision forexchange variation losses of ` 239.19lakh (` 232.70 lakh) has been createdduring the year for meeting exchangevariation losses. During the year, theexchange variation loss was `344.82lakh (`Nil) which has been adjustedfrom provision of `239.19 lakh and theremaining exchange variation loss of`105.63 lakh has been charged to P&Landprovisionof`nil (`232.70 lakh) hasbeen written back and utilized for thepromotional activities as per terms andconditionsoftheloanagreement.

b) The provision for exchange variationlosses for loansunderKFWcredit lineXIIth hasbeen createdasper the loanagreement. Under KFW XIIth line ofcredit,outoftheprovisionforexchangevariation createdduring the year, 80%of the provision is to be utilized formeetingexchangevariationlossesandthe balance left out from the 80%, ifany, is to be retained tomeet out theexchangevariationlossesinfuture.

Accordingly, total provisions amountingto ` 283.14 lakh (` 279.29 lakh) havebeenmadeduringtheyearforexchangevariationunderXIIth lineofcredit,outofwhich 80% i.e. ` 226.51 lakh (Nil) hasbeenutilizedagainstexchangevariation


133

loss during the year and balance 20%i.e. ` 56.63 lakh (` 55.86 lakh) hasbeen utilized for promotional purposesasper termsandconditionsof the loanagreement.

During the year, the exchange variationloss was ` 338.75 lakh (Nil) which hasbeen adjusted from 80%provision i.e ` 226.51 lakh (Nil) and balance ` 112.24lakh (Nil) has been adjusted from theprovision for exchange variation lossesmade in thepastyears.Thecumulativeretainedprovisiononthisaccountason31.03.2018 is `1552.35 lakh includingprovisionof` Nilfortheyear(` 1664.59lakh) to meet out exchange variationlossesinfuture.

4. Trade Receivables and Loans & Advances(relating to Hire Purchase, EquipmentLeasing,Marketing,RawMaterialAssistance,BillsDiscounting,CompositeTermLoan,TermLoan, etc.) amounting to ` 298627.32 lakh(` 304196.62 lakh)comprisingof receivablesand advances (backed with the security ofBG and amounts payable to suppliers and /or recoverable fromGovernmentDepartment/ PSUs) amounting to ` 287866.80 lakh(` 293123.53lakh)onwhichprovisionsarenotrequiredtobemadeasperprovisioningnormsduly approved by the Board of Directors.Against the remainingamountof` 10760.52lakh(` 11073.09lakh),provisionof̀ 10760.52lakh (` 11073.09 lakh) has been made fordoubtfulreceivablesandloans&advancesinlinewiththenormsapprovedbytheBoard.

5. (a)DuringthemonthofJune2016,7casesofforgedBankGuarantees (BGs)amounting to₹1600lakhwasdetectedatBOAbdulHamidStreetandBOSalt Lake, located inKolkata.Immediately, complaints were lodged withCBI, Kolkata. However, 100% provision wasmade for the outstanding duesamounting to`1473.13lakh(5casesworth` 1079.32lakhagainstBGsof` 1200lakhatBOKolkataand2casesworth` 393.81lakhagainstBGsof` 400lakhatBOSaltLake).

(b) Thereafter, on obtaining re-confirmationofBGs,heldbyallofficesoftheCorporation,fromtheBGissuingbanksandtheirrespectiveZonal / Controlling offices, United Bank ofIndia(UBI)branchesatJadvapurVidyapeethandHazraRoadhadinformedthatin61casesinvolvingtotalBGsof` 17350lakh,theBGshad either been invoked (55 cases worth₹15550 lakh) or not issued by the Banks (6casesworth` 1800lakh). Inall thesecases,the original BGs issued by the banks werelying in thesafecustodyofNSIC’sBOAbdulHamid Street (29 cases having outstandingbalance of ` 7711.93 lakh against BGs of ` 7850.00lakh),BOSaltLake(21caseshavingoutstandingbalanceof` 6147.34lakhagainstBGsof` 6300.00lakh),BODurgapur(mergedinBOKolkataduring2017-18)(9caseshavingoutstandingbalanceof` 2698.23lakhagainstBGs of ` 2700.00 lakh) & NTSCHowrah (2caseshavingoutstandingbalanceof` 499.88lakhagainstBGsof`500.00lakh)andhadnotbeeninvokedbythem.

Immediately on noticing the aforesaidirregularities FIR was lodged on 26.07.2016withtheOfficerinCharge,BidhanNagarNorthPoliceStation,SaltLake,KolkataandthecasewastransferredtoCIDKolkata,WestBengal.As informed by the CID, charge-sheet hasbeenfiled in thesaidcase.Asapartof theirinvestigation,theCID,alsoreferredtheoriginalBGsandrelateddocuments,seizedfromNSICandUBIofficestotheirforensiclab(i.e.QDEB-QuestionedDocumentsExaminationBureau)for examination.ThefindingsofQDEBasinformedtotheHon’blecourtbyCIDinter-aliamentionthatUnitedBankofIndiahadissuedtwo sets of Bank Guarantees of the samenumber,which iscontrary to the rules laid inBank’sManagementSystem.

NSIC, which was in possession of originalBGs, lodged invocation claims in July, 2016,in the aforesaid 61 cases valuing ` 17350lakh with UBI. The findings of QDEB alsocorroborate NSIC’s claim of holding originalbankguaranteesinallcasesvaluing` 17350lakh.


134

Furtherconsideringall the facts, it transpiresthat;

► BankGuaranteesfoundtobeinpossessionofNSICareoriginalasper thefindingsofCIDbasedonQDEBReportandtheseBGswere duly verified and confirmed by UBIissuingBranchandtheconcernedregionaloffice before disbursement of advanceagainstRMA.

► UBl claims that they have fulfilled theirobligationbymakingpaymentonthebasisof alleged invocation of Bank Guarantees(during the period October, 2013 toDecember,2015)byissuanceofPayOrders(POs) in favour of NSIC. The aforesaidclaimdoesnotholdwaterasthefraudulentissuance of two sets of Bank guaranteesby United Bank of India and subsequentintimationbythebankthatsinceinvocationin respectof thoseBGshasalreadybeenmade, would not immune UBI from theirobligation for making payment since thisfactgetsfurtherreconfirmedastheNSICisstillholdingoriginalBGs,ascorroboratedbyQDEBreportmentionedabove.

► It becomes apparent that UBI with somemalafide intention, issued twosetsofBGsofthesamenumber,onetoNSICandotherto the unit, which is contrary to the ruleslaiddownintheirmanagementsystemandagainstthebankingnorms.

► TheinvocationofBGsbyNSICwaswithinthevalidityperiodoftheBGs.

► The Ministry of MSME (the administrativeMinistry of NSIC) after examination of thestatus of the case and findings of CID,West Bengal based on the QDEB report,has regularly taken up the matter withDepartmentofFinancialServices,Ministryof Finance (the administrative ministry ofUnited Bank of India) asking the later toimpress upon the bank to honour NSIC’srightfulinvocationofbankguaranteesworth` 17350 lakh together with interest fromthe date of invocation i.e. July 2016. ThematterisalsobeingtakenupwithMinistryofMSMEandMinistryofFinanceforresolutionof dispute between NSIC and UBI (both

being Central Government Organizations)in accordance with the guidelines ofDepartmentofPublicEnterprises.

Inviewoftheabove,outstandingbalanceof` 17057.38 lakh against theseBGs amountingto ` 17350 lakh has been considered goodbythemanagement.Hence,noprovisionhasbeen made their against. This amount of ` 17057.38lakhhasbeenregroupedandshownasrecoverablefromBankinNote-19.

c) In other 16 cases, where UBI hadreconfirmed the issuanceandvalidityofBGsvaluing` 4800 lakh(`600.00 lakhatBOSaltLake,` 600.00 lakhatBODurgapur now merged in B O Kolkataduring 2017-18 and ` 3600.00 lakh atNTSC Howrah), the invocation claimthereof was lodged by NSIC in July &August, 2016 and UBI has releasedpayment there against on 10.04.2017.The Ministry of MSME is regularlyfollowingupwithDepartmentofFinancialServicestoimpressuponthebanktopayinterest on delayed payment on bankguarantee proceeds from the date ofinvocation of bank guarantees in July /August,2016till thereleaseofpaymenttoNSICi.e.10.04.2017.

It is apt to mention that the intereston delayed period w.r.t. releasing thepayment by BG issuing bank againstinvokedBankGuaranteesvaluing`4800lakh has been claimed. However, suchinterestondelayedperiodhasnotbeenaccounted for in the books of accountsas thesameshallbe treatedas incomein theyearof its realization, in termsofaccountingpoliciesoftheCorporation.

d) Further, during the process of obtainingreconfirmation, it was found in case ofoneunitatNSICBOGhaziabad,thebankguaranteesof̀ 500lakhreportedtohavenotbeenissuedbythebranchofBankofBaroda.100%provisionof` 447.30lakhhasbeenmadefortheamountreceivablefrom the unit, after adjusting amountreceivedduringMay,2017.Thiscase isunderinvestigationofCBI.


135

6. During the year, the Corporation has notreceivedanymemorandum(asrequiredtobefiledbythesupplierswiththenotifiedauthorityunder Micro, Small and Medium EnterprisesDevelopmentAct,2006)claiming their statusas Micro, Small and Medium Enterprises(MSME). Consequently, the amount paid /payableincludinginterest,ifany,tosuchunitsduringtheyearis`Nil.

7. Provision for current tax has been made aspertheprovisionsoftheIncomeTaxAct’1961.TheCorporationhasrecordednetdeferredtaxassetsarisingonaccountoftimingdifferencesas stipulated in Accounting Standard-22 onÀccounting for Taxes on Income’ issued bytheInstituteofCharteredAccountantsofIndia.The net deferred tax assets comprise of thefollowing:

(` inLakh)

S. No. Particulars As at

31.03.2018As at

31.03.2017

1 Deferred Tax Liabilities

Relatedtotimingdifferenceondepreciationoffixedassets

(828.50) (729.06)

Sub Total (828.50) (729.06)

2 Deferred Tax Assets

a.ProvisionforDoubtfulDebts

b.EmployeesBenefits

3901.37

2858.07

3940.86

2235.93

Sub Total 6759.44 6176.79

Deferred Tax Assets (Net) 5930.94 5447.73

8. In accordance with the guidelines ofDepartment of Public Enterprises, ad-hocprovisiononaccountofPerformanceRelatedPay(PRP)fortheyear2017-18amountingto` 505lakh(`549lakh)hasbeenmade.

9. Duringtheyear,noprovisionhasbeenmadeforanylossonaccountofimpairmentofassetsunderAccountingStandard(AS)-28asthereisnoindicationofanyimpairmentofassetsoftheCorporation,onthebasisoftheCorporationasawhole,asaCashGeneratingUnit(CGU).

10. Riskfundhasbeencreatedat0.40%(0.35%)oftheoutstandingattheendoffinancialyearundertheschemesofRawMaterialAssistance&BillDiscounting(securedbyBankGuarantee),TradeReceivables-Marketing(fromCentral&StateGovernment,Government Institutions /Companies/ Departments/ Bodies) and TermLoan (secured by EMD) by appropriation ofthe profit of ` 134.60 lakh (` 343.69 lakh).In addition, interest and service chargesamountingto`182.94lakh(`140.40lakh)onthe amount of fund at beginning of the yearis plough back by charging from the interestincomeunderRevenuefromOperations(Note21)ofStatementofProfit&Lossfortheyear.

11. AsapprovedbytheMinistryvide letterdated2.12.2016,Corpusformedicalschemeshavebeencreatedof` 248.00lakh(`235.42lakh)fortheemployeesretiredpriorto1.1.2007andof̀ 96.89lakh(` 95.48lakh)fortheemployeesretiredonorafter1.1.2007, inaccordancetothe DPE’s guidelines. These corpuses havebeen utilized for the payment of premium totheextentof` 86.78 lakh(` 68.58 lakh)and` 28.67lakh(`20.48lakh)respectivelyduringtheyear.

12. MinistryofMicro,Small&MediumEnterprisesvide their OM no. 9(10)/2016-SME dated 3rdMay2018hadconveyedtheapproval forthepay revision and other benefits of theBoardlevelandbelowBoard levelexecutives,non-unionised Supervisors and unionized staff oftheCorporationw.e.f01.01.2017.Accordingly,aprovisionof` 2328.11lakhhasbeencreatedduring theyear towardspayrevisionarrears.This provision is inclusive of the provisioncreated foremployees followingCDApatternw.e.f01.01.2016.

13. IncompliancewiththeprovisionsofAccountingStandard 29 on ‘Provisions, ContingentLiabilitiesandContingentAssets’,therequireddisclosure in respect of details of additions,reversals and utilizations of provisions forEmployee Benefits, for the Financial Yearended31.03.2018isasgivenbelow:-


136

(` inLakh)

Particulars

Opening Balance

as on 01.04.2017

Additions (+)/Write Back (-)

Utilization

Closing Balance

as on 31.03.2018

ForGratuity 3784.77 1343.18 327.55 4800.40

ForLeaveEncashment 2281.70 742.45 447.54 2576.61

ForLeaveTravelConcession

0.84 -0.59 0.00 0.25

ForHalfPayLeave 389.36 42.56 11.27 420.65

ForTAonRetirement 3.70 0.56 0.56 3.70

Total 6460.37 2128.16 786.92 7801.61

14. Employee Benefits:

a) Provisions and contribution towardsEmployee Benefits which inter-aliaincludes Short-Term benefits, post-retirement benefits, Other Long-Termbenefits and Termination benefits aremade based on actuarial valuationperformed by the independent actuaryand are charged to Statement ofProfit and Loss. Actuarial valuation ofemployees’benefitshasbeencarriedoutonthebasisofrevisedpay.

b) Generaldescriptionof typeofplanw.r.t.variousemployeebenefitschemesisasunder:

c) TheCorporation provides for liability onaccountofprovisionsforterminalbenefits

intheformofgratuity,leaveencashment,sick leave, TA on retirement and LTCfor CDA employees, being payableby the Corporation to its employeesas “Post-Employment Benefit Plans”under “Defined Benefit Plan” in termsof disclosure requirement as per para120(b)undertheprovisionofAccountingStandard-15 on “Employee Benefits(Revised2005)”.

d) Theprojectedunitcredit(PUC)actuarialmethod is used to assess the plan’sliabilitiesofexitemployeesforretirement,death-in-service and withdrawals(Resignations/Terminations).UnderthePUCmethod,aprojectedaccruedbenefitis calculated at the beginning of theperiodandagainattheendoftheperiodfor each benefit that will accrue for allactivememberoftheplan.Theprojectedaccrued benefit is based on the planaccrual formula and upon service as ofthebeginningorendofperiod,butusingmember’s final compensation, projectedto the age at which the employee isassumed to leave active service. Theplanliabilityistheactuarialpresentvalueof the projected accrued benefits as onthedateofvaluation.

Accordingly, disclosures under theprovision ofAccountingStandard 15 on“Employee Benefits (Revised 2005)” fortheFinancialYearended31.03.2018aregivenbelow:-

I) Principal actuarial assumption at the Balance Sheet date. (Expressed as weighted average)

Particulars Current Year Previous Year

MethodUsed ProjectedUnitCreditMethod ProjectedUnitCreditMethod

DiscountRate 7.80% 7.50%

ExpectedRateofReturnonPlanAsset 0 0

FutureSalaryIncrease 5.50 5.50

MortalityRate IALM(2006-08) IALM(2006-08)

AgesUpto30yearsFrom31to44yearsAbove44years

321

321


137

II) Changes in the present value of the obligations(` inLakh)

S.No. Particulars CY/ PY Gratuity EL Sick

LeaveTA on

Retirement LTC

a) Presentvalueofobligationasatthebeginningoftheperiod

CY 3784.76 2281.70 389.36 3.70 0.84PY 3722.21 2122.94 382.24 3.56 0.77

b) AcquisitionadjustmentCY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

c) InterestcostCY 283.86 171.13 29.20 0.28 0.06PY 297.78 169.84 30.58 0.29 0.06

d) PastservicecostCY 766.59 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

e) CurrentservicecostCY 224.07 158.42 34.98 0.18 0.01PY 182.07 150.23 37.72 0.18 0.02

f) Curtailmentcost/(Credit)CY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

g) Settlementcost/(Credit)CY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

h) BenefitspaidCY -327.55 -447.54 -11.27 -0.56 0.00PY -373.20 -368.04 -21.70 -0.32 0.00

i) Actuarial(gain)/lossonobligation

CY 68.68 412.90 -21.63 0.11 -0.66PY -44.09 206.73 -39.48 0.00 -0.01

j) Presentvalueofobligationasattheendofperiod

CY 4800.40 2576.61 420.65 3.70 0.25PY 3784.76 2281.70 389.36 3.70 0.84

III) Amount recognized in Balance Sheet(ìnLakh)


LeaveTA on

Retirement LTC

a) Presentvalueofobligationasat31.03.2018-(i)

CY 4800.40 2576.61 420.65 3.70 0.25PY 3784.76 2281.70 389.36 3.70 0.84

b) Fairvalueofplanassetsasat31.03.2018-(ii)

CY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

c) Difference(ii)-(i)CY -4800.40 -2576.61 -420.65 -3.70 -0.25PY -3784.76 -2281.70 -389.36 -3.70 -0.84

d) Netasset/(liability)recognizedintheBalanceSheet

CY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

e) Netasset/(liability)recognizedintheBalanceSheet

CY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

f) Netasset/(liability)recognizedintheBalanceSheet

CY -4800.40 -2576.61 -420.65 -3.70 -0.25PY -3784.76 -2281.70 -389.36 -3.70 -0.84


138

IV) Expenses recognized in Statement of Profit and Loss(ìnLakh)


LeaveTA on

Retirement LTC

a) CurrentservicecostCY 224.07 158.42 34.98 0.18 0.01PY 182.07 150.23 37.72 0.18 0.02

b) PastservicecostCY 766.59 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

c) InterestcostCY 283.86 171.13 29.20 0.28 0.06PY 297.78 169.84 30.58 0.29 0.06

d) Expectedreturnonplanassets

CY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

e) Curtailmentcost/(Credit)CY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

f) Settlementcost/(Credit)CY 0.00 0.00 0.00 0.00 0.00PY 0.00 0.00 0.00 0.00 0.00

g) Netactuarial(gain)/lossrecognizedintheperiod

CY 68.68 412.90 -21.63 0.11 -0.66PY -44.09 206.73 -39.48 0.00 -0.01

h) Expensesrecognizedinthestatementofprofit&loss

CY 1343.19 742.45 42.56 0.56 -0.59PY 435.76 526.80 28.82 0.46 0.07

V) Comparative Data of last five years(ìnLakh)

S.No. ParticularsGratuity

31.03.18 31.03.17 31.03.16 31.03.15 31.03.14

a) Definedbenefitobligationattheendofperiod 4800.40 3784.76 3722.21 3652.42 3450.28

b) Planassetattheendofperiod 0.00 0.00 0.00 0.00 0.00

c) FundedStatus -4800.40 -3784.76 -3722.21 -3652.42 -3450.28

d) ExperienceadjustmentonplanLiabilities(loss)/gain -154.92 161.31 74.11 51.62 -159.01

e) ExperienceadjustmentonplanAssets(loss)/gain 0.00 0.00 0.00 0.00 0.00

(ìnLakh)

S.No. ParticularsEL

31.03.18 31.03.17 31.03.16 31.03.15 31.03.14




139

c) FundedStatus -2576.61 -2281.70 -2122.94 -2069.05 -1906.73

d) ExperienceadjustmentonplanLiabilities(loss)/gain -467.00 -127.57 -100.22 -46.26 -307.70


(` inLakh)

S.No. ParticularsSick Leave

31.03.18 31.03.17 31.03.16 31.03.15 31.03.14



c) FundedStatus -420.65 -389.36 -382.24 -313.60 -288.56

d) ExperienceadjustmentonplanLiabilities(loss)/gain 10.03 57.15 -31.53 12.94 179.60


(` inLakh)

S.No. ParticularsTA on Retirement

31.03.18 31.03.17 31.03.16 31.03.15 31.03.14



c) FundedStatus -3.70 -3.70 -3.56 -3.48 -3.34

d) ExperienceadjustmentonplanLiabilities(loss)/gain -0.18 0.12 -0.70 0.30 -0.19


(` inLakh)

S.No. ParticularsLTC

31.03.18 31.03.17 31.03.16 31.03.15 31.03.14



c) FundedStatus -0.25 -0.84 -0.77 -1.58 -1.97

d) ExperienceadjustmentonplanLiabilities(loss)/gain 0.66 0.02 0.96 0.60 -1.77



140

V) Based on actuarial certificates, the Corporation`s best estimate of benefits expected to be paid during the annual period beginning after the balance sheet date.

Particulars Amt in lakhGratuity 741.02EarnedLeave 442.47SickLeave 91.72TAonRetirement 0.59LTC 0.04

15. Segment Reporting: -

NSIC’s activities are broadly classified into ‘Promotional’ and ‘Commercial’.The ‘Promotional’ activitiesincludetheactivitiesforwhichbudgetarysupportisprovidedtotheCorporationbytheGovernmentand/oritsagencies.Theschemesof‘MarketingAssistanceSchemeforMSMEs’,‘Performance&CreditRatingSchemeformicroandsmallenterprises’, ‘AssistanceforTrainingtoInstitutions’and‘NationalScheduleCaste-ScheduleTribeHub’etc.,forwhichbudgetarysupporthasbeenprovidedtotheCorporationalongwithadministrativeexpenditurerestrictedtothetuneof10%ofthetotalexpenditureunderMASand7.5%ofthetotalexpenditureunderPCRSandNSSHSchemeforimplementationofsuchschemes,getreflectedunder the ‘Promotional’ activity. Theexpenses towards organization / participation in exhibitions (bothdomesticand international),buyersellersmeet, intensivecampaigns,othermarketingsupport services(advertisement,publicityetc.),ratingofMSEsandtrainingexpensesaremetoutofthebudgetarysupportprovidedfortheaboveschemes.

The‘Commercial’activitiesinter-aliaincludestheactivitieswherebytheCorporationprovides‘Marketing(including tender marketing and Raw Material Distribution)’, ‘Credit’, ‘Technology’ and ‘other support’services tocater to thediverseneedsof theMSMEs.TheCorporation funds these ‘Integrated’supportservices.Inaddition,activitiesnotmetoutofthebudgetarysupportbutwhicharepromotionalinnature(since carriedoutwith the intent to support theMSMEs)aremergedwith commercial activities as theexpensesofsuchactivitiesarebornebytheCorporation.Accordingly,theactivitiesoftheCorporationhavebeendividedintotwosegmentsnamely“Commercial”&“Promotional”.

The following tablepresents the revenue,profit/(loss),assetsand liabilities information to theBusinesssegmentsfortheyearended31stMarch,2018asrequiredbyAS-17on“SegmentReporting”issuedbytheInstituteofCharteredAccountantofIndia.

(` inLakh)

Description For the year ended 31.03.2018 For the year ended 31.03.2017A. Primary Segment –

Business Segment Promotional Commercial Total Promotional Commercial Total

I. SEGMENT REVENUE

a. SegmentRevenue (includinggrant)

-Sale of Product - 205780.73 205780.73 - 179098.05 179098.05

-Sale of Services 118.47 5969.93 6088.40 220.11 5599.45 5819.56

-Others 5591.24 41789.92 47381.16 6457.57 46248.35 52705.92

-Total 5709.71 253540.58 259250.29 6677.68 230945.85 237623.53


141

Description For the year ended 31.03.2018 For the year ended 31.03.2017II. RESULTS

a. SegmentResults 9940.66 9940.66 10639.84 10639.84

b.OperatingProfitbeforeinterest 28428.88 28428.88 36257.05 36257.05

c.Priorperiod (24.12) (24.12) 15.82 15.82

d.InterestPaid 13340.85 13340.85 19748.00 19748.00

e.Exceptionalitems (92.83) (92.83) (13.93) (13.93)

f.NetProfitbeforeTax 15204.98 15204.98 16507.16 16507.16

g.Tax 5264.32 5264.32 5867.32 5867.32

h.NetProfitafterTax 9940.66 9940.66 10639.84 10639.84

III. ASSETS & LIABILITIES

a.SegmentAssets 4025.82 325786.75 329812.57 1391.49 311814.77 313206.26

b.UnallocatedAssets 20455.34 40061.27

c. Total Assets 4025.82 325786.75 350267.91 1391.49 311814.77 353267.53

d.SegmentLiabilities 3945.47 239352.69 243298.16 6245.88 250096.84 256342.72e.UnallocatedLiabilities 106969.75 96924.81

f. Total Liabilities 3945.47 239352.69 350267.91 6245.88 250096.84 353267.53

IV. OTHER INFORMATION

(a)Costincurredduringtheperiodtoacquirefixedassets(includingCWIP)

2025.82 2059.44 4085.26 129.91 3692.47 3822.38

(b)Depreciation# 252.87 569.18 822.05 151.18 488.39 639.57(c)Non-cash

expenditureotherthandepreciation

0.00 345.10 345.10 0.00 457.49 457.49

#Thedepreciationofpromotionsegmentischargedtocapitalreserve.

16. Related Party Disclosure: -IncomplianceofAccountingStandard–18onrelatedpartydisclosuresissuedbytheInstituteofCharteredAccountantsofIndia,therequiredinformationisgivenasunder:-

a) Key Management Personnel

ShriRavindraNath Chairman-cum-ManagingDirectorShriAKMittal Director(Finance)ShriPUdayakumar Director(P&M)


142

b) Transactions during the year with related parties (` inLakh)

1. ExpenditureKey Management

PersonnelRelative of Key Management

Personnel

2017-18 2016-17 2017-18 2016-17

a Salaries 81.02 67.19 -- --

b Leave/LTCEncashment 1.83 3.48 -- --

c ProvidentFundContribution 7.33 6.04 -- --

d ContributiontoPensionScheme 6.10 5.10 -- --

e Others 74.06 49.21 -- --

f LeaseRentPaid -- -- -- --

2. Loan&interestoutstanding -- -- -- --

17. Anamountof` 30.83lakh(Previousyear` 4.85lakh)towardsgainondisposaloffixedassetsand` 62.00 lakh (Previousyear` 9.08 lakh) towardsgainonsaleof long term investmentshasbeendisclosedas‘Exceptionalitems’inthestatementofprofitandlossasrequiredbyAS5on‘NetprofitorLossfortheperiod,PriorPeriodItemsandChangesinAccountingPolicies’issuedbytheInstituteofCharteredAccountantsofIndia.

18. TheCorporationhastakenofficespace,godownandaccommodationsforstaffonlease.Theseareclassifiedasoperatinglease.Rentpaymentsinrespectofofficespace,godownandaccommodationsforstaffamountingto` 468.22lakh(Previousyear` 428.70lakh) isshownunderthehead“OtherExpenses”.

Futureleasepaymentsinrespectoftheseleaseagreementsisasunder:(` inLakh)

ParticularsYear ended 31.03.2018 Year ended 31.03.2017

Office & Accommodations Godown Office &

Accommodations Godown

Notlaterthanoneyear 214.89 95.56 187.13 192.86Laterthanoneyearandnotlaterthan5years 472.37 6.60 419.75 37.58

Laterthan5years 456.74 7.90 273.76 Total 1144.00 110.06 880.64 230.44

19. Proposed Dividend: Thedividendproposedfortheyearisasfollows:

Particulars Year ended 31.03.2018 Year ended 31.03.2017

OnEquitysharesofRs.100each

-AmountofDividendProposed(` Inlakh) 2837.24 3126.18

-RateofDividend(%) 5.32 5.87

-Dividendperequityshare(`) 5.32 5.87


143

DividendsproposedbytheCorporationarebasedonProfitsafterTaxasreportedinthefinancialstatementsoftheCorporationandguidelinesissuedbyDepartmentofInvestment&PublicAssetManagement(DIPAM).TheBoardofDirectorsoftheCorporationproposedafinaldividendof` 2837.23lakh(` 5.32Pershare)inrespectoftheyearending31stMarch2018subjecttoapprovalofshareholdersintheAnnualGeneralMeeting.Ifapproved,thedividendwouldresultincashoutflowof` 3420.57Lakhinclusiveofdividendtaxof` 583.34Lakh.

Further,Corporatedividendanddividenddistributiontaxpertainingtofinancialyearended31March2018,shall be accounted for in the ensuing financial year after approval of Shareholders atAnnualGeneralMeeting inaccordancewith revisedAccountingStandard (AS) -4 ‘ContingenciesandEventsoccurringafterBalanceSheetdate’asnotifiedbytheMinistryofCorporateAffairsthroughamendmentstoCompanies(AccountingStandards)AmendmentRules,2016,datedMarch30,2016.

20. Ratings assigned by credit rating agencies and migration of ratings during the year

TheCommercialpaperissuedbyNSICwereratedbyCRISILandSMERAas“A1+”whichisconsideredtohave“VeryStrongDegreeofSafety”.Inaddition,BankFacilitiesoftheCorporationhasbeenratedbyCAREandtheratingis“AA+”whichisconsideredtohavehighdegreeofsafetyregardingtimelyservicingoffinancialobligations.Therehasbeennomigrationofratingsduringtheyear.

21. Disclosures required in respect of the investments:(` inLakh)

S.No. ParticularsYear ended 31.03.2018 Year ended 31.03.2017

Non-Current Current Non-Current Current1 Valueofinvestments(i) GrossValueofInvestments(a) InIndia 21.03 22.55(b) OutsideIndia(ii) ProvisionforDepreciation(a) InIndia 15.00 15.00(b) OutsideIndia(iii) Netvalueofinvestments(a) InIndia 6.03 7.55(b) OutsideIndia

(2) Movement of provisions heldtowardsoninvestments

(i) OpeningBalance 15.00 15.00

(ii) Add: Provisions made during theyear

(iii) Less:write-ff/write-backofexcessprovisionsduringtheyear

(iv) Closingbalance 15.00 15.00

(3) Aggregate amount of quotedinvestments 6.03 7.55

Marketvalueofquotedinvestments 235.68 235.34

(4) Aggregate amount of Unquotedinvestments 15.00 15.00

(5) Aggregateprovisionfordiminutioninvalueofinvestments 15.00 15.00


144

22. Provisions and contingencies(` inLakh)

Particulars Year ended 31.03.2018

Year ended 31.03.2017

Provisionforbadanddoubtfuldebts* 10760.52 11073.09

ContingentprovisionagainstStandardLoanAssets NA NA

ProvisionagainstRestructuredStandardLoans NA NA

Provisionforinterestdue&convertedintoequity NIL NIL

Provisionfordepreciationoninvestments 15.00 15.00

Total 10772.52 11088.09

(*refersprovisionsinrespectofHirePurchase,EquipmentLeasing,Marketing,RawMaterialAssistance,BillsDiscounting,CompositeTermLoan,TermLoan)

23.Details of Registration License/authorization obtained from financial sector regulators:

Particulars Regulator Name Registration Details

(i)CorporateIdentificationNumber MinistryofCorporateAffairs U74140DL1955GOI002481

(ii)RegistrationNumber ReserveBankofIndia N-14.03090

24. Incomplianceofsection45-1AofReserveBankofIndiaAct.1934,theCorporationhasbeengrantedCertificateofRegistrationno.N-14.03090dated29.12.2005tocommence/carryonthebusinessofnon-bankingfinancialinstitution.However,inviewofRBIcircularNo.DNBR(PD)CCNo.043/03.10.119/2015-16dated1stJuly,2015,theCorporation,beingaGovernmentofIndiaEnterprise,hasbeenexemptedfrom compliance of RBI Prudential Norms relating to NBFCs.Accordingly, sector-wise NPAs andmovementofNPAsisnotapplicabletotheCorporation.

25. Exposure Related Disclosures a. Exposure to Real Estate sector: TheCorporationhasnoexposuretorealestatesectorason

31stMarch,2018(PreviousYearNil). b. Exposure to Capital market: The Corporation has no exposure to capital market as on

31stMarch,2018(PreviousYearNil).

26. Concentration of Advances, Exposures and NPAs:

Particulars Year ended 31.03.2018

Year ended 31.03.2017

ConcentrationofAdvancesTotalAdvancestotwentylargestborrowers(₹inlakh) 11135.41 10417.34Percentage of Advances to twenty largest borrowers to totalAdvancesoftheCorporation 4.10 3.71

(AdvancesreferstoRawMaterialDistribution,BillsDiscounting,CompositeTermLoanandTermLoan)

27. TheCorporationhasnoderivativerelatedexposures.28. AssetLiabilityManagement-MaturitypatternofcertainitemsofAssetsandLiabilities


145

(` inLakh)

As at 31.03.2018 Advances Investments Borrowings Foreign Currency Items

Domestic Foreign Assets LiabilitiesUpto30/31days 179186.26 205113.52Over1-monthupto2months 92557.76Over2monthsupto3months 119.24Over3monthsupto6months 20.38Over6months&upto1year 139.62Over1year&upto3years 558.46Over3year&upto5years 558.47Over5years 6.03 4293.54

(` inLakh)

As at 31.03.2017 Advances Investments Borrowings Foreign Currency Items

Domestic Foreign Assets LiabilitiesUpto30/31days 186190.89 121221.88Over1-monthupto2months 94659.06Over2monthsupto3months 100000.00 103.25Over3monthsupto6months 17.64Over6months&upto1year 120.89Over1year&upto3years 483.56Over3year&upto5years 483.56Over5years 7.55 3959.39(AdvancesreferdeRawMaterialDistribution,BillsDiscounting,CompositeTermLoan,TermLoan)

29. No penalties have been levied on the Corporation by the Regulator during the year ended 31stMarch,2018(PreviousYearNIL)

30. Allamountsarein` lakh,unlessotherwisestated.

31. Figuresinbracketsinthenotestothefinancialstatementsrepresentpreviousyear’sfigures.

32. Previousyearfigureshavebeenregrouped,rearrangedandrecast,wherevernecessary.


146

(` inLakh)

Particulars As At 31.03.18 As At 31.03.17Expenditure in Foreign CurrencyOnaccountofrepaymentofprincipalofloansfromKreditanstalt,WestGermany(KFW) 26.05 254.00

OnaccountofInterestOnloansfromKreditanstalt,WestGermany 36.07 36.78OnloansfromCasaDepositiEPrestiti,Italy(earlier

ArtigiancassaSPAItaly) 3.61 3.58

OnAccountofForeignTours 74.01 78.01Others(OnBehalfofMSMEUnits) 134.10 127.20RemittancetoForeignOfficesforexpenses 4.94 46.47Earning in Foreign ExchangeExportofGoods(OnF.O.B.Basis) 0.00 36.82

ADDITIONAL INFORMATION


147

(ìnLakh)

Particulars As At 31.03.18 As At 31.03.17

Net Profit (Loss) Before Tax 15,204.98 16507.17Adjustments for:Profit (-) / Loss on Sale of Fixed Assets (30.83) (4.84)Depreciation & Amortization Expenses 569.18 488.39Lease Terminal Adjustment 49.39 (0.37)Provisions and Contingencies 3,512.02 1012.54Profit (-) / Loss on Sale of Investments (62.00) (9.08)Excess Provisions Written Back (316.66) (520.08)Loss / (-) Gain on Exchange Rate Fluctuation 185.26 (401.68)Bad Debts Written off 134.73 457.26Dividend from Investments (4.02) (3.04)Provision for Obsolete Stock 0.06 8.54Interest Accrued but not due on Borrowings 10.05 16.02Interest on Short /Fixed Term Deposit (5.96) (3.04)Operating Profit Before Working Capital Changes 19,246.20 17547.79Adjustment for Working Capital Changes :Inventories 141.37 (603.33)Trade Advances & Receivables 9,156.19 17326.58Current Liabilities & Provisions (5,312.00) (1097.74)Cash Flows before Tax & Extra Ordinary Items 23,231.76 33173.29Taxes (5,167.26) (5702.17)Net Operating Cash Flow (A) 18,064.50 27471.13Cash Flow From Investing ActivitiesSale Proceeds of Assets Disposed off 3.57 9.9Sale Proceeds of Investments 60.48 9.32Increase in Fixed Assets and Capital W.I.P. (3,992.87) (3814.64)Fixed Assets (out of Grant) 1,919.60 129.91Capital Advances 0.42 (588.40)Loans and Advances to Employees 6.09 16.46Dividend from Investments 4.02 3.04Intt. On Short /Fixed Terms Deposits 5.96 3.04Net Investing Cash Flow (B) (1,992.73) (4231.37)Cash Flow from Financing ActivitiesNet Increase/ (Decrease) in Other Borrowings (15,772.20) (14743.69)Dividend Paid (Including Dividend Distribution Tax) (3,762.68) (3496.48)

Net Financing Cash Flow (C) (19,534.88) (18240.17)Net Cash Flow From Operating Activities (A) 18,064.50 27471.13Net Cash Flow From investing Activities (B) (1,992.73) (4231.37)Net Cash Flow From Financing Activities (C) (19,534.88) (18240.17)Net Changes in Cash & Cash Equivalents (A+B+C) (3,463.11) 4999.59Add.Cash & Cash Equivalents-Opening Balances 9,498.16 4498.58Cash & Cash Equivalents-Closing Balance 6,035.05 9498.16Add. Other Bank Balances in Fixed Deposits -maturing over 3 months 16.91 14.61Balance as per Note -18 Cash and Other Bank Balances 6,051.96 9512.77


Cash Flow Statement attached to and forming part of the accounts for the Year Ended 31.03.2018







Sd/- Sd/-


148


STATEMENT OF PROFIT AND LOSS ACCOUNT (COMMERCIAL) FOR THE YEAR ENDED 31.03.2018







Sd/- Sd/-

Particulars Note No. For the Year Ended 31.03.18


A Revenue Revenue from Operations 21 253463.39 230666.68 [Include Processing Fee/Service Charges earned of ` 5188.98 lakh (` 5493.60 lakh) for

value of goods handled and services rendered ` 1992031.24 lakh (` 1829719.92 lakh)] Other Income 22 77.19 279.17 Total Revenue 253540.58 230945.85B Expenses Purchase of Stock-in-Trade 24 204620.17 178236.02 Changes in Inventories 25 119.97 (652.15) Employee Benefit Expenses 26 12618.46 9276.02 Finance Costs 27 13340.85 19748.00 Depreciation and Amortization Expenses 28 569.18 488.39 Expenses on Corporate Social Responsibility 29 302.95 273.78 Other Expenses 30 6880.97 7066.74 Total Expenses 238452.55 214436.80Profit before Prior Period Adjustments, Exceptional Items, Extraordinary Items and Tax 15088.03 16509.05 Exceptional Items [Refer Note 35 (17)] (92.83) (13.93)Profit before Prior Period Adjustments, Extraordinary Items and Tax 15180.86 16522.98 Extraordinary Items 0 0Profit before Prior Period Adjustments and Tax 15180.86 16522.98 Prior Period Adjustments 31 (24.12) 15.82Profit before tax 15204.98 16507.16Tax Expense 32 (i). Current Tax 5740.00 6100.00 (ii). Deferred Tax (483.21) (219.25) (iii). Earlier Years 7.53 (13.43)Total Tax Expense 5264.32 5867.32Profit (Loss) after Tax for the Period 9940.66 10639.84Earnings per Equity Share Basic 33 18.65 19.96Contingent Liabilities 34 (i) 828.87 1634.65Capital Commitments 34 (ii) 5575.87 5414.62Other Notes on Accounts 35

(ìnLakh)


149

(ìnLakh)

Particulars Note No. For the Year Ending 31.03.18


A RevenueRevenuefromOperations 21 118.47 220.11OtherIncome 22 0 0GrantsandSubsidies 23 5473.81 6457.57Total Revenue 5592.28 6677.68B ExpensesEmployeeBenefitExpenses 26 517.18 541.87FinanceCosts 27 0 0DepreciationandAmortizationExpenses 28 0 0OtherExpenses 30 5192.53 6135.81Total Expenses 5709.71 6677.68Profit before Prior Period Adjustments, Exceptional Items, Extraordinary Items and Tax -117.43 0

ExceptionalItems 0 0Profit before Prior Period Adjustments, Extraordinary Items and Tax -117.43 0

ExtraordinaryItems 0 0Profit before Prior Period Adjustments and Tax -117.43 0PriorPeriodAdjustments 0 0Profit before tax -117.43 0TaxExpense 0 0Net Income /(Expenditure) (Tfd to Note 23 of Grants & Subsidies - Consolidated) -117.43 0

OtherNotesonAccounts 35


STATEMENT OF INCOME AND EXPENDITURE (PROMOTIONAL) FOR THE YEAR ENDED 31.03.2018







Sd/- Sd/-


150

North – INSICLimited,ZonalOfficeNorth-I,C-41,Sector-58,NOIDA(U.P)-201301

NoidaNSICLimited,BranchOffice,III-B/118,Sector–18ShoppingComplex,Noida-201301,(UP)

SahibabadNSICLimited,BranchOfficeOfficeNo.05,1stFloor,MahaluxmiMetroTower,C-1,C-2,Sector-4,Vaishali,Ghaziabad-201002(U.P.)

Meerut NSICLimited,SubBranchMeerut

DehradunNSICLimited,BranchOffice,NearSabjiMandi,Niranjanpur,SaharanpurRoad,Dehradun-248001

NSSHO Agra AGRA-NationalSC-STHubOfficeUnitNo.202,SecondFloorSector12-APadamBusinessParkAwasVikasSikandraYojanaAgra282007

AgraNSICLimited,BranchOffice,307/T-6,3rdFloor,MarutiPlaza,(behindSanjayTalkies)SanjayPlace,Agra–282002VaranasiNSICLtd,BranchOffice/NSSHOMansarovarComplex,C-30/35-B,2ndFloor,Maldhaiya,Varanasi–221001,UP

KanpurNSICLimited,BranchOffice112/1,IIndFloorBenajhabarRoadKanpur 208001GorakhpurNSICLimitedSubBranchDICCampus,GorakhnathIndustrialEstate,Gorakhpur–273015(UP)VaranasiNSICLimited,BranchOffice,IndustrialEstate,P.O.UdyogNagarNaini,Allahabad-211009(UP)

LucknowNSICLimited,BranchOffice.503,5thFloor,ShriramTower,13,AshokMarg,Lucknow-226001North-IINSICLimitedGuruGobindSinghTower,NearDholewalChowkGTRoad-Ludhiana 141003(Punjab)Ludhiana (Punjab)NSICLimited,BranchOfficeGuruGobindSinghTower,NearDholewalChowkGTRoad-Ludhiana 141003(Punjab)Ludhiana NSSHO1stFloor,FrontierTowerGTRoad,MillerGanj(NearFireBrigadeOfficeLudhiana)

MandiGobindgarh(Punjab)NSICLimitedSubBranchMandiGobindgarh(Punjab)

Mandi (Himachal Pradesh) NSICLimitedSubBranch,Mandi,(OperatefrompremiseofTrainingCentreMandi)

Sangrur (Punjab) NSICLtd.,SubBranch,RedCrossBuilding,NearRanbirClub,Sangrur-148001 ChandigarhNSICLimited,BranchOfficeSCO-378,2ndFloor,Sector-32-D,ChandigarhBaddi (Himachal Pradesh)SubBranch,Baddi,HimachalPradesh

Ambala (Haryana)NSICLimited,SubBranchAmbalaCantt.133001(Haryana)

Panipat (Haryana)NSICLimited,SubBranchShopCumOffice(SCO),11-12,GaushalaMandi,G.T.Road,Panipat-132103(Haryana)

Jalandhar (Punjab)NSICLimited,BranchOfficeFirstFloor,SSArcadeB-1-823/4,TandaRoad,Opp.KMVCollegeJalandhar–144004(Punjab)JammuSubBranchJammu(J&K)

DamtalSubBranchDamtal,Teh.Indora,Distt.Kangra(H.P.)

The National Small Industries Corporation Limited(AGovernmentofIndiaEnterprise)

NSICBhawan,OkhlaIndustrialEstate, NewDelhi–110020,IndiaEmail: [email protected], [email protected]: Website: www.nsic.co.in


151

AmritsarSubBranchAmritsar(Punjab)

NCR ZoneNSICLimited,ZonalOffice,NTSCComplex,NearChandiwalaHospital,OkhlaInd.Estate,NewDelhi-110020

DelhiNSICLimitedNTSCComplex,NearChandiwalaHospital,OkhlaInd.Estate,NewDelhi-110020

GurgaonNSICLimited,BranchOfficePlotNo.89,IDC,Sector-16,M.G.Road,Gurugram-122001(Haryana)

FaridabadNSICLimited,BranchOfficePlotNo.107,NissanHut,NH-5,RailwayRoadFaridabad–121001(Haryana)

JahangirpuriNSICLimited,BranchOffice516-517,5thFloor,LaxmiTower,AzadpurCommercialComplex,Azadpur,Delhi-110033

WazirpurNSICLimited,BranchOffice478&479,AggarwalMillenniumTowerII,NetajiSubhashPlace,NearWazirpurBusDepot,Delhi-110034.

Jhandewalan, New DelhiNSICLimited,SubBranchJhandewalan,NewDelhi-110055

BahadurgarhNSICLimited,BranchOffice,Z-99,FirstFloor,MamaChowk,M.I.E.Part-A,Opp.FrontierBiscuitFactory,DelhiRohtakRoad,Bahadurgarh–124507(Haryana)

Naraina, New DelhiNSICLimited,BranchOffice,CB-326,SecondFloor,RingRoad,Naraina,NewDelhi–110028

South-I, NSICLimitedNo.25,IstMainRoad,KSSIDCIndustrialEstate,6thBlockRajajinagar,Bengaluru-560010.BengaluruNSICLimited,BranchOffice,No.25,1stMainRoad,KSSIDCIndustrialEstate,6thBlockRajajinagar,Bengaluru-560010.

NSSH BangaluruSCSTHubOff.No.6&7ISICOSbuildingWestofchordRoadRajajiNagarIndustrialTownBangalore-560044

BelgaumNationalSmallIndustriesCorporationLtd.PlotNo.60,AnujayBuilding,5thCross,Subhash-ChandraNagar,OppFoundryClusterBuilding,NearUtsavHotel,Belgaum-590006.BengaluruNSICLimited,SubBranch113/2-4,ISICOSGodown,RajajinaarIndl.TownBengaluru–560044

PeenyaNSICLimited.BranchOffice:C-424,Peenya,1stStage,BehindPeenyaPoliceStation,Bangalore-560058.KolarNSICTechnicalTrainingCentreOppositetoBSNLOffice&PostOffice,K.G.F-563112,KolarDistt,Karnataka

Kochi (Cochin)NSICLimited,BranchOfficeS–67GDCAComplex,MarineDriveErnakulum,Kochi, Cochin–682031(Kerala)

TrichurSubBranchC/oMSMDI,KanjaniRoad,Trichur (Kerala)

PalakkadSubBranchPalakkad(Kerala)

KottayamSubBranchKottayam,Kerala

TrivendrumSubBranchTrivendrum(Kerala)

South-IINSICLimited,203,SriDattasaiComplex,RTCCrossRoads,Hyderabad-500020(Telangana)

HyderabadNSICLimited,BranchOffice203,SriDattasaiComplex,RTCCrossRoads,Hyderabad-500020(Telangana)


152

Kompally, HyderabadNSICLimitedSubBranch,ShedNo.2,Sy.No.61/Part,SplendidAparnaMeadows,Quthbullapur(M),Kompally(V),Medchal(Tq)(Hyderabad-500014)

ChittoorNSICLimitedSubBranchChittoor(AndhraPradesh)

Balanagar, HyderabadNSICLtd,BranchOfficeDoorNo.6-3-144&144/1,JahanaraKareemComplex,3rdFloor,Balanagar,Hyderabad-500037

VijayawadaNSICLimited,BranchOfficeNSICLtd.,BranchOfficeDoorNo.59A-8/8-6B/1,3rdFloor,MainRoad,GuruNanakColony,KrishnaDistrict,Vijayawada-520008VisakhapatnamNSICLimited,BranchOfficeD.No.6-67-27/2/3,Opp.GajuwakaPoliceStationMainGate,SramikaNagar,Gajuwaka,Visakhapatnam–530026

South – III NSICLimited,NewNo422(OldNo615),AnnaSalai,Chennai–600006,(TamilNadu)

ChennaiNSICLimited,BranchOfficeNewNo422(OldNo615),AnnaSalai,Chennai–600006,(TamilNadu)

ChennaiNSICLtdGodown,C/ONAFEDWarehousingComplex,CMDATruckTerminal,Ponnaimmanmedu,MadhavaramChennai-600110

Madhavaram (Chennai)NSICLimited,SubBranchOfficeChennai-600110

AmbatturNSICLimited(BranchOffice)No.309,SIDCO-AIEMATower,3rdFloor,IstMainRoad,AmbatturIndustrialestate,Ambattur,Chennai600058ThirumazhisaiSubBranch,Thirumazhisai,Chennai

PerungundiSubBranchPerungundi,Chennai–600096

GuindyNSICLimited,SubBranchGuindy,Chennai-600032.

NSSH Chennai NSIC-SCSTHubOfficeChennai,MSME-DICampusNo.65/1GSTRoadGuindyChennai-600032

PuducherryNSICLimited,BranchOfficeAdministrativeBuilding,IndustrialEstate,Thattanchavady,Puducherry-605009

CoimbatoreNSICLimited,BranchOffice1055/10GowthamCentreAvinashiRoad, Coimbatore-641018(TN)

Erode (Tamilnadu)NSICLimited,SubBranch,c/oErodeDistrictSmallIndustriesAssociationNo.5/1,SIDCOIndustrialEstate,ChennimalaiRoad,Erode-638001

MaduraiNSICLimited,BranchOffice74,ADRTowers1stFloor,P.P.Chavadi,Kalavasal,TheniMainRoad,Madurai-625016.TrichyNSICLimited,BranchOfficeNo.10/1,2ndFloor,“FriendsPlaza”,BirdsRoad,Cantonment,Trichy620001

East-I NSICLtdIndustrialEstate,ByeLaneNo.3Bamunimaidan,Guwahati781021Assam

KolkataNSICLimited,BranchOffice20-B,AbdulHamidStreet,(7thFloor)Kolkata–700069,(WestBengal)

NSIC Godown (Agency sale)SubBranchDhulagarhTruckTerminal,GodownNo.45,Dhulagarh,P.S.Sankrail,Howrah(WestBengal)

Liluah (Howrah)SubBranchHowrah(WestBengal)

MechadaSubBranchMechada(WestBengal)

Barasat SubBranchBarasat(WestBengal)


153

TikiaparaNSICLimited,SubBranch35/4,IchapurRoad,Kadamtala,Howrah–711104

SiliguriNSICLimited,BranchOffice,Siliguri(WestBengal)

KolkataNSICLimitedLegal&RecoveryCell,RoomNo.2/1,2ndFloor,HUDCOTower,NewMarket,15N,NelliSenguptaSerini,LindsayStreetKolkata-7000087

Kolkata (Salt Lake)NSICLimited,BranchOfficeBlock-CP,PlotNo.7/7&7/8Sector-VSaltLakeCityKolkata-700064

NSSHO PlotNo.7/7&7/8BlockCP,SaltLakeSectorV,Kolkata700091WestBengal

DurgapurNSICLimited,SubBranchChaitanyaComplexPlotNo.CA-4,PhaseIIBengalAmbuja,CityCentre,Durgapur,Pin:713216

PatnaNSICLimited,BranchOffice/NSSHO104,IstFloor,Manna-SurtiComplex,Doctor’sColony,Kankarbagh,Patna800020(Bihar)

East-II BhubaneswarNSICLimited,BranchOffice/NSSHO1stFloor,DICCampus,RasulgarhIndustrialEstate,Bhubaneswar–751010(Orissa)

BhubaneswarModuleNo.204-A2ndFloorNSIC-IMDCDharampadBhawanIDCOPlotNp.6Block-DManchewarIndustrialEstateBhubaneswar

CuttackSubBranchLinkRoad,Cuttack,-753012(Odisha)

BerhampurSubBranchBerhampur(Odisha)

BalasoreSubBranchBalasore(Odisha)

IMDCNSICIntegratedMarketingDevelopmentCentre(IMDC)IDCOPlotNo.6,BlockD,MacheswarIndustrialEstate,Bhubaneswar-751010

RourkelaNSICLimited,BranchOfficePlotno.JJJ-16,CivilTownship,Rourkela-769004DistSundargarh(Orissa) BolangirSubBranchBolangir(Odisha)

JamshedpurNSICLimited,BranchOfficeFlatNo.A-2/1,2ndFloor,NirodeApartment,L-Road,P.O.&P.S.Bistupur,Jamshedpur-831001(Jharkhand)

RanchiNSICLimited,BranchOffice/NSSHOUdyogBhawan,KokarIndl.Area,Ranchi-834001(Jharkhand)

BokaroSubBranch,By-PassRoadChas,Bokaro (Jharkhand)

DhanbadSubBranch,Dhanbad(Jharkhand)

North East NSICLimitedByeLaneNo.3,IndustrialEstateBamunimaidan,Guwahati-781021(Assam)

GuwahatiNSICLimited(BranchOffice)/NSSHByeLaneNo.3,IndustrialEstate,Bamunimaidam,Guwahati-781021(Assam)TinsukiaSubBranchTinsukia(Assam)

AgartalaSubBranchAgartala–(Tripura)

ImphalSubBranchUripokAchomLeikai,Imphal-795001(Manipur)

ShillongSubBranchShillong(Meghalaya)

NaharlagunSubBranchNaharlagun(ArunachalPradesh)

DimapurSubBranchDimapur-797112(Nagaland)

AizawalNSICLimited,C/oDirectorateofIndustries,Khatla,Aizawal–796001(Mizoram)


154

West NSICLimited,ZonalOffice(West),OfficeNo.505,FifthFloor“MittalCommercialBuilding”,Wing–B,VillageMarol,OffM.V.Road,Andheri(E),Mumbai-400059

Navi MumbaiNSICLimited,BranchOfficeP-104,MIDCKhairane,TTCIndl.Area,Koparkhairane,NaviMumbai-400710 Masjid, MumbaiNSICLimited,SubBranch/NSSHFirstFloor,PrestigeChambers,KalyanStreet,Masjid(E),Mumbai-400009,(Maharashtra)

ThaneSubBranch,Thane(W)Maharashtra

Bhiwandi SubBranch(NALCOProduct)Bhiwandi,Dist:Thane(Maharastra)

TarapurSubBranch(ZincProduct)N-14/2,TarapurIndl.Estate,MIDC,TalukaBoisar,Kumbhavali,Tarapur,Dist.Thane(Maharastra) Andheri (Mumbai)NSICLimited,BranchOffice,3A,3rdFloor,GundechaOnclave,KhairaniRoad,Sakinaka,Andheri(E),Mumbai-400072BoisarNSICLimited,SubBranch,Boisar(W)

VasaiNSICLimited,SubBranch,Vasai

NagpurNSICLimited,BranchOfficeNDTAComplex,Block9,2ndFloorOpp:LibertyCinema,ResidenceRoad,SadarNagpur-440001(Maharashtra)

Pune NSICLimited,BranchOffice/NSSHNSICLimited,BranchOffice211/212,2ndFloor,TimesSquareBuilding,Pune-SataraRoad,NearSaibabaMandirPune-411037(Maharashtra)

KolhapurNSICLimited,SubBranchC/oDistrictIndustriesCentre,UdyogBhavan,NearDistrictCollectorOffice,Kolhapur-416012

AurangabadNSICLimited,BranchOfficeC/oMASSIA,P-15,MIDC,Waluj,MoreChowk,Aurangabad–431136(Maharashtra),

RaipurNSICLimited,BranchOffice204,IIndFloor,Block-A,CrystalArcade,NearLodhiparaChowk,ShankarNagar,Raipur–492007 (Chhattisgarh), Silvassa SubBranchSilvassa-396230,U.T.ofDadra&NagarHaveli)

GoaNSICLtd, SubBranchShrijiComplex,4thFloor,NearManoshanthiHotel,Dr.DadaVaidhyaRoad,Panaji–403001(Goa)

NasikNSICLtd,BranchOfficeGallaNo13,3rdFloorUdyogBhawan,MIDC,SatpurNasik-422007

CentralNSICLimited202,203,SamruddhiBuildingOpp.GujaratHighCourt,Ahmedabad–380014,(Gujarat)

AhmedabadNSICLimited,BranchOffice202,203,SamruddhiBuildingOpp.GujaratHighCourt,Ahmedabad–380014,(Gujarat)

NadiadSubBranchNadiad(Gujarat)Rajkot

NSIC Limited, Sub Branch,Rajkot

BarodaSub Branch (Zinc Product)C/oCentralWarehousingCorporation,NearRanoliFlyover,Bridge,Karachiyya,Vadodara-391350,

SuratNSICLimited,BranchOffice306,3rdFloor,RajhansBuilding,Opp.J.KTower,RingRoad,Surat-395002IndoreNSICLimited,BranchOffice10,Pologround,IndustrialEstate,INDORE(M.P.)-452015GwaliarSubBranch,Gwaliar,MadhyaPradesh


155

BhopalNSICLimited,BranchOffice110,MalviyaNagar,IstFloor,Bhopal-462003,(MP)

JabalpurNSICLimited,SubBranchJabalpur,(MadhyaPradesh)

SilvassaNSICLimited,BranchOffice105-106,HotelVirajBuilding,Opp.GurudevCommercialComplexOffSayliRoad,Silvassa–396230, (UTofDadar,Nagar&Haveli)JaipurNSICLimited,BranchOfficeNF/0/2NehruPlace,TonkRoad, Jaipur302015

Viswakarma Indl. Estate (Jaipur)NSICLimited,BranchOffice513,AlankarPlaza,CentralSpine,VidyadharNagar,Jaipur-302023(Rajasthan)

Pratap Nagar NSICLimited,SubBranchPratapNagar,Jaipur

KotaNSICLimited,SubBranchC/oTheSSIAssociation,PurusararthBhawan,RoadNo.5,IPIA,Kota(Rajasthan)

Bagru (Jaipur)NSICLimited,BagruIndustrialAssociation,BagruExtn.,Bagru-303007(Jaipur)

Bhiwadi (Rajasthan)NSICLimited,BranchOfficeB-294,295(G),1stFloor,MangalamHouse,RIICOChowkBhiwadi–301019,

NTSCsChennaiNSICTechnicalServicesCentreSectorB-24,GuindyIndl.EstateEkkaduthangal,PO,Chennai600032(Tamilnadu)

HowrahNSICTechnicalServicesCentreP.O.Balitikuri,DisttHowrah711113(WestBengal)

Hyderabad NSICTechnicalServicesCentreKushaiguda,Kamalanagar, ECIL(P.O.)Hyderabad-500062(Telengana)

Okhla, New DelhiNSICTechnicalServicesCentreOkhlaIndustrialEstate,NewDelhi110020

RajkotNSICTechnicalServicesCentreAjiIndustrialArea, BhavNagarRoad,Rajkot–360003(Gujarat)

Rajpura NSICTechnicalServicesCentreD-82/83,FocalPointOldQMEBuilding,Rajpura140401,(Punjab)

AligarhNSICTechnicalServicesCentreA-1IndustrialEstateAligarh202001(UttarPradesh)

Neemka, FaridabadNSICTechnicalServicesCentre,TigoanRoad,Neemka,Faridabad-121004(Haryana)

Dindigul NSICTechnicalServicesCentreDindigul(TN)

EMDBP, Hyderabad Exhibition-cum-Mkg.Dev.BusinessParkModuleNo.207,EMDBPBldg.,ECILP.O.Kamalanagar,KushaigudaHyderabad-500062(AP)

Training Centre, MandiNSICTrainingCentre1714/663,Village–Halel,P.O.Kanaid,Tehsil–Sundernagar,Distt-MandiHimachalPradesh)–175010,

STP ChennaiNSICLimitedSTPBuilding,SectorB-24,GuindyIndustrialEstate,EkkaduthangalPO,Chennai600032(Tamilnadu)

TIC Deoria NSICTrainingcumIncubationCentrePlotNo.18,SondaMauja,NearMandiSamitiDeoria-274001,UttarPradesh

TIC /Sub Branch KashipurNSICTrainingcumIncubationCentreB-5,IndustrialArea,BazpurRoad,Kashipur,Distt.UdhamSinghNagar,Uttrakhand

LBI- NawadaLBI-NawadaPlotNo.1619,GurudevNagarNearGovt.ITI,GonavaRoadNawada,Bihar-805130

LBI- NainiLBI-NainiIndustrialEstate,UdyogNagar,NainiAllahabad,UttarPradesh


156

The National Small Industries Corporation Limited(A Government of India Enterprise)

NSIC Bhavan, Okhla Industrial EstateNew Delhi – 110 020

Dated:05thSept.,2018

N O T I C E Noticeisherebygiventhat63rdAnnualGeneralMeetingoftheMembersofTheNationalSmallIndustriesCorporationLimitedwill beheldonThursday the 20thSeptember, 2018at3.00p.m.at theRegisteredOfficeoftheCorporationtotransactthefollowingbusiness:

ORDINARY BUSINESS

1. Toreceive,considerandadopttheauditedFinancialStatementoftheCompanyfortheFinancialYearended31stMarch,2018andReportsoftheBoardofDirectors,Auditors’ReportthereonalongwithComptroller&AuditorGeneralofIndiacomments/observation,ifany.

2. TodeclaredividendfortheFinancialYearending31stMarch,2018.

3. Toauthorize theBoardofDirectorsof theCompany in termsof theprovisionsofSection142(1)ofCompaniesAct, 2013 to fix remuneration of theStatutory&BranchAuditors of theCompanyappointedbyComptroller&AuditorGeneralofIndiau/s139(5)oftheCompaniesAct2013forthefinancialyear2018-19andtopassthefollowingresolution,withorwithoutmodification(s),asanOrdinaryResolution:

“RESOLVED THATtheBoardofDirectorsoftheCompanybeandareherebyauthorizedtodecideandfixtheremunerationoftheStatutory&BranchAuditorsoftheCompanyappointedbyComptroller&AuditorGeneralofIndiau/s139(5)oftheCompaniesAct2013forthefinancialyear2018-19,asmaybedeemedfitbytheBoard.”

ByOrderoftheBoardTheNationalSmallIndustriesCorporationLimited

Sd/-(NishthaGoyal)

CompanySecretaryDate:05thSept.,2018Place:NewDelhi

NOTES: -Amemberentitledtoattendandvoteatthemeetingisentitledtoappointaproxytoattendandvoteinsteadofhimselfandproxyneednottobeamemberofthecompany.

ByOrderoftheBoardTheNationalSmallIndustriesCorporationLimited

(NishthaGoyal)CompanySecretary

Date:05thSept.,2018Place:NewDelhi