Fortune at the Bottom of the Pyramid - Samasta Microfinance · Return on Equity (%) 2012-132013-142014-152015-162016-17 5.1 2.2 5.5 11.3 2.1 2012-132013-142014-152015-16 2016-17 Return

2016-1722 nd Annual Repor t I Samasta Microfinance Limited

Fortune at the Bottom of the Pyramid

Fortune at the Bottom of the Pyram

id22

nd A

nn

ual R

epo

rt I Samasta M

icrofinan

ce Limited

2016-17

Samasta Microfinance is primarily engaged in providing financial services to the economically weaker sections of the society, with strong presence in the southern and western regions of India. With a goal to bridge the gap between ideation and achievement,

it forges long-term partnerships and innovative business practices.

On the cover, graphical shapes are arranged as a pyramid, with the distinct sections representing different types of customers. The arrows in the second section point downwards towards the third, emphasizing Samasta’s focus on the economically underprivileged section of the society.

Corp

orate Overview

Statutory Report

Finan

cial Statement

* Pre-minority

CONTENTS

IIFL at a Glance 3

Introducing Samasta Microfinance 6

Product Portfolio 8

Presence 9

Financial Highlights 10

Message from the Managing Director

12

Customer Stories 14

Creating Long-term Value 16

Technology 18

Human Capital 20

Board of Directors 22

Corporate Overview 1-2301

PAT * ROE` 8.1 million 2.1%

Loan Assets Under Management ` 2.4 billion 81% y-o-y growth

24-44Statutory Report02Board’s Report 24

Annexures 32

45-78Financial Statement03Independent Auditors’ Report 45

Balance Sheet 50

Statement of Profit and Loss 51

Cash Flow Statement 52

Notes 53

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Samasta Microfinance Limited Fortune at the Bottom of the Pyramid

At Samasta Microfinance, we are positioned as an engine of inclusive growth in India. We operate in the country’s hinterlands, offering credit support to women who have either limited or no access to formal banking channels. With a comprehensive, safe and sound financial system, we remain committed to playing a key role in furthering financial inclusion.

Microfinance is very significant to the process of attaining financial inclusion in India. There is a huge gap in demand and supply in micro credit in India and that a large part of this gap is serviced by informal sources, including moneylenders, represents an attractive business opportunity for growing MFIs such as Samasta Microfinance. The Company believes that, with its operating strength and enhanced geographic penetration, it will be able to capture a significant share of the demand for micro credit in India.

The core business is to provide micro loans and certain other basic financial services to members for income generating activities. The real motivation for the Company continues to be the opportunity to change the potential of our nation by building a purpose-driven social enterprise.

Annual Report 2016-17

3

Corp

orate Overview

Statutory Report

Finan

cial Statement

IIFL AT A GLANCE

IIFL is one of India’s leading diversified financial services company providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals.

IIFL’s products and services span multiple asset classes and consumer segments across domestic and global geographies. The Company and its subsidiaries are mainly engaged in loans and mortgages, wealth management and capital market businesses. The loans and mortgages business includes non-

VISION

VALUES FAIRNESS Fairness in our transactions with all stakeholders including employees, customers and vendors, bereft of fear or favour.

INTEGRITY Integrity and honesty of the utmost nature, in letter, in spirit, and in all our dealings with people, internal or external.

TRANSPARENCY Transparency in all our dealings with stakeholders, media, investors and the public at large.

banking finance, housing finance and microfinance. The wealth management business is engaged in wealth management and asset management. The capital market business includes financial advisory and broking, institutional research and investment banking, and financial products distribution.

“To be the most respected financial services company in India.” - Not necessarily the largest or most profitable

IIFL at a Glance

4


Capital Market/ Others

Wealth and Asset

Management

Loans and Mortgages

Business Segments

* Income is net of interest expense.

NBFC, Housing Finance and Micro Finance

Wealth and Asset Management Capital Market/Others

Business Diversified non-banking finance company, offering loans secured against collaterals of home, property, gold, medical equipment, commercial vehicles, shares and other securities, and small business loans. Also added microfinance segment through the acquisition of Samasta Microfinance Limited

One of the largest and fastest growing Wealth Management companies in India with assets under advice, management and distribution of US$ 19 billion/ ` 1,201 billion

One of the leading broking houses in India with extensive presence all over the country providing financial planning and broking services in equity, commodities and currency trading

Products Home, Gold, Online Personal, SME and Microfinance loans; Loan against property (LAP), Commercial Vehicle, Capital Market, Construction and Real Estate finance

Family Office, AIFs, Advisory and Distribution service

Retail and Institutional Broking, Investment Banking

Distribution Channels

Agents, Banks, Brokers, Direct, other distribution agreements and independent financial advisors



Financials FY17

Income* ` 13.77 billion Net Profit ` 4.23 billion

Income* ` 8.34 billionNet Profit ` 2.50 billion

Income* ` 8.34 billionNet Profit ` 2.50 billion

Capital Market/ Others

Wealth and Asset

Management

NBFC, Housing Finance and

Micro Finance


5

Corp

orate Overview

Statutory Report

Finan

cial Statement

UK

Switzerland

UAE

MauritiusSingapore

Hong KongUSA

International Subsidiaries’ Locations

PAT *

` 8.22 billion Locations2,250+

Asset Base` 299 billion

Team~11,000

Clients4 million +300 global funds

Key Facts

Our international subsidiaries are governed by the respective global regulators including Financial Services Authority, UK, Securities Exchange Commission, USA, Monetary Authority of Singapore, Dubai Financial Services Authority and Securities and Futures Commission, Hong Kong.

* Pre-minorityNote: Map not to scale.

UK

Switzerland

UAE

MauritiusSingapore

Hong KongUSA

PAT *

` 8.22 billion Locations2,250+

Asset Base` 299 billion

Team~11,000

Clients4 million +300 global funds

Key Facts

Our international subsidiaries are governed by the respective global regulators including Financial Services Authority, UK, Securities Exchange Commission, USA, Monetary Authority of Singapore, Dubai Financial Services Authority and Securities and Futures Commission, Hong Kong.

* Pre-minorityNote: Map not to scale.

IIFL at a Glance

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INTRODUCING SAMASTA MICROFINANCEINTRODUCING SAMASTA MICROFINANCE

Established in March 2008, Samasta Microfinance is primarily engaged in providing financial services to the economically weaker sections of the southern and western states of India. It currently operates in Tamil Nadu, Karnataka, Maharashtra and Goa. It aims to bring microfinance services like micro loans and credit linked insurance to the doorstep of the rural and semi-urban BoP (Bottom of Pyramid) families in India. It also offers a host of non-financial services including life and health insurance and financial

counselling to its members. It is further engaged as a ‘Business Correspondent’ to premier banks in India like YES Bank Limited & IDBI Bank Limited.

With the goal to bridge the gap between ideation and achievement, it forges long-term partnerships and innovative business practices. It is consistently engaged in private-public partnerships in rural and urban markets with a focus on supplementing income generating activities with the application of appropriate technology.

MissionSamasta Microfinance aims to bridge the gap between ambition and achievement of the working poor across India, by providing financial and non-financial services, in a sustainable long-term relationship to enable a better quality of life.


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Corp

orate Overview

Statutory Report

Finan

cial Statement

Introducing Samasta Microfinance

` 2.4 billionAssets Under Management

70No. of Branches

1,23,179No. of Clients

40%Rural Clients

Core Objectives

The broad objectives of Samasta Microfinance are:

To forge long-term partnerships and foster innovative business practices in order to bridge the gap between ideation and achievement.

To work with the poor in India who are creative entrepreneurs, value-demanding consumers and innovative business partners, by means of a robust microfinance model leading to the creation of businesses and markets which mutually benefit Samasta Microfinance and the economically weaker communities in India.

To provide both financial and non-financial products to the economically poor to facilitate improvement in their quality of life.

To operate in the supply chain domain and offer manpower training and industry-specific vocational training programmes.

To engage in private-public partnerships in rural and urban markets with a focus on supplementing income generation activities with the application of appropriate technology.

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PRODUCT PORTFOLIO

We encourage entrepreneurship amongst women a sustainable source of livelihood by providing loans for working capital. Loans give economically active women an access to finance required to support their micro enterprises.

LOANS:Samasta Microfinance provides financial assistance to women of the society and enables them to achieve their business targets. We follow Grameen Model (JLG – Joint Liability Group) and Business Correspondent Model (SHG – Self Help Group). All the loans provided to the members are disbursed only after a series of training sessions and a test; this enables us to ensure that members understand the product details and repayment structure.

REPAYMENT:Through the group lending methodology, loan is disbursed to each individual in the group and the group guarantees each other’s loans. Over the years, it has showed tremendous success rate in repayment of loans.

HEALTH AND WELFARE:In line with the ambition of improving the lives of the people, Samasta Microfinance strongly emphasizes on the importance of health and welfare of the individuals. We introduced various loans like water purifier loan, cattle loan, induction stove and induction stove utensils loan etc. to enable people to earn a livelihood and lead a better quality of life.

INSURANCE:Samasta Microfinance provides credit insurance to all its members.

NEW INITIATIVES:Samasta Microfinance keeps on taking new initiatives to improve the lifestyle of the women and their family members living in semi-urban or urban areas across the country. It provides financial literacy sessions to educate on the importance of savings and proper handling of finances.

BUSINESS CORRESPONDENCE:The Company has been appointed as a Business Correspondent for Yes Bank Ltd. and IDBI Bank Ltd.


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Corp

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Statutory Report

Finan

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Product Portfolio | Presence

PRESENCE

Note: Map not to scale.

LIST OF DISTRICTS OF OPERATION AS ON MARCH 31, 2017

1. Bangalore (Urban & Rural)2. Nilgiris3. Tirupur4. Coimbatore5. Mandya6. Ramanagara7. Hassan8. Krishnagiri9. Sindhudurg10. Kodagu11. Kolhapur

12. Mysore13. Tiruvallur14. Tumkur15. Dindigul16. Chennai17. Uttara Kannada18. Ariyalur19. Thanjavur20. Goa (North South)21. Nagapattinam22. Dakshina Kannada23. Udupi

165

1213

1614

15

19

20

7

102223

11

17

9

8

2 34

18 21

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FINANCIAL HIGHLIGHTS

2012-13 2013-14 2014-15 2015-16 2016-17

Loan Assets under Management (` in billion)

0.5 0.5 0.6

1.3

2.4

Income (` in million)

2012-13 2013-14 2014-15 2015-16 2016-17

86.7130.7 132.4

201.4

328.5

Cost of Funds (%)

2012-13 2013-14 2014-15 2015-16 2016-17

14.9 15.4 14.9 16.1 15.2

2012-13 2013-14 2014-15 2015-16 2016-17

Net Interest Margin (%)

11.911.0 11.6

9.8 9.2

(` in million)

2012-13 2013-14 2014-15 2015-16 2016-17

Net Profit

1.94.6

5.9

14.7

8.1


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Corp

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Statutory Report

Finan

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Financial Highlights

(%)

2012-13 2013-14 2014-15 2015-16 2016-17

0.50.6

0.3 0.3

0.8

Gross NPA

Return on Equity (%)

2012-13 2013-14 2014-15 2015-16 2016-17

5.1

2.2

5.5

11.3

2.1

2012-13 2013-14 2014-15 2015-16 2016-17

Return on Average Assets (%)

0.4

0.70.9

1.7

0.7

(%)

2016-17

Capital Adequacy Ratio

2012-13 2013-14 2014-15 2015-16

44.4

15.2 15.419.2 17.8

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MESSAGE FROM THE MANAGING DIRECTOR

DEAR SHAREHOLDERS,

The Microfinance sector in India has undergone a significant transformation over the past few years. It has come to be recognized as one of the systemically important components of the financial system. NBFC-MFIS play a critical role in the development of infrastructure, employment generation, wealth creation opportunities and financial support for economically weaker sections.

The significant increase in our loan portfolio was evident as our overall gross loan book including growth in managed assets grew by 81% and the GL book saw an increase of 111%.


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Corp

orate Overview

Statutory Report

Finan

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MD’s Message

According to Microfinance Institutions Network (MFIN), the microfinance industry has witnessed a growth of 26% over last year’s standing at ` 84,716 crore. The gross loan portfolio of the overall microfinance industry for this year is at ` 106,916 crore, which includes lending portfolios of NBFC-MFIs and other key lenders. The sector has attracted significant debt and equity capital over the past few years. In order to mature and reach out to more clients and bridge the financial inclusion gap, the sector has to continue to be able to tap into more debt and equity capital, primarily being a capital-intensive business. This will enable moving to the next level of evolution for the industry. Also, the Microfinance landscape is changing at the ground level. Joint Liability Groups which was the key basis for the unprecedented growth, will have to be revisited and have the arrangements fine-tuned.

The Financial Year 2016-17 saw a great boost to the operations of Samasta in the years to come with the entry of M/s. India Infoline Finance Limited (IIFL) as its strategic investor. IIFL acquired substantial equity shareholding in the Company and made an equity infusion of ` 50 crore at the end of the financial year. Now Samasta is one of the IIFL Group companies.

Our main target customers continue to be the economically backward women of the weaker sections of the society, with a view to generate employment and empower them. The Company is offering various loan products to its customers such as Income Generation Loans, Top up loans, Product loans and Educational loans for the children of the customers to meet their necessities.

The significant increase in our loan portfolio was evident as our overall gross loan book including growth in managed assets grew by 81% and the GL book saw an increase of 111%. We closed the financial year with a total income of ` 32.84 crore, an increase of 63.08% over the previous year.

Thirty-eight branches were added to our network with the Company exploring into the states of Goa and Maharashtra along with addition of branches in Karnataka and Tamil Nadu. The total number of branches at the end of the financial year was 70.

Demonetization came as a critical challenge for the entire microfinance industry. Tremendous efforts and initiatives by various teams enabled customer awareness and collections over the next few months albeit with a time lag. The team across various functions continues with its collective effort towards coping with this challenging situation in the current fiscal year.

Our success today can be accorded to the tireless efforts of our exceptional and dedicated employees. We consider our people to be our greatest asset. We are building an agile organization through training, culture-building and team engagement initiatives. We offer our staff a rewarding workplace and an array of attractive employee benefits.

Samasta has been aggressively hiring competent personnel to match the Company’s targets for the forthcoming financial years. The total number of employees on roll as on March 31, 2017 were 690 as against 259 as on March 31, 2016.

Competing in a dynamic business environment such as ours, we understand the importance of usage of technology in business. We have been using tab based enrolment for sourcing of new customers and also for recording the repayment entries by the field officers / branch managers at the field level.

Since demonetization, all our disbursements are done through NEFT mode. We continue to make investments in technology to improve the efficiency of the organization.

With the equity investment by IIFL, the credit rating of the Company has improved and banks are willing to lend loans at lower interest rates and a perfect platform has been laid for the Samasta to explore into other states of the country and reach new heights.

I would like to thank all our stakeholders for their faith and constant support, and look forward to your cooperation in our journey ahead.

With Best Wishes,Venkatesh N.Managing Director

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Fostering Entrepreneurship at Grassroots

Name: Shabana Begum

Samasta has customer-focused services that make applying for loans very easy. I am glad of my partnership with Samasta that helped me.

Shabana Begum was a homemaker and made no contributions to the family income of ` 6,000. With her husband’s sole income, it was very difficult for Shabana’s family to meet its domestic needs. She was determined to change her circumstances, and decided to start a tailoring business. Although Shabana borrowed the sewing machine, she still needed finance to purchase cloth and other materials for her business.

But financers invariably turned her down on various grounds. Shabana was losing hope when she heard about Samasta Microfinance Limited (Samasta). Soon, Shabana and few of her neighbours contacted Samasta’s customer relationship executive and became part of a 14-member group.

CUSTOMER STORIES

Shabana Begum with an associate at her tailoring store

Subsequently, a loan amount of ` 12,000 was disbursed to her and Shabana Begum bought a modern tailoring machine, along with other necessities to commence her business. Within a few years her business grew and she paid back her loan amount. Later, she went on to borrow a higher loan amount of ` 25,000.

Today, she earns around ` 13,000 per month and is able to manage her family’s finances with her income.


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Corp

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Statutory Report

Finan

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Customer Stories

Partnering Growth of Small Businesses

Name: Akhila R.

Samasta helped me avail an Income Generation Loan easily and I believe this is the beginning of a long business association.

Akhila R. and her husband together earned around ` 8,000 every month with odd jobs. Akhila wanted to increase the household income, and thus, began to sell bangles from her tiny rented accommodation. Within a short time, she realised the importance of a large inventory to grow the business. Akhila was looking for investors to develop her business, when one of her customers suggested Samasta Microfinance Limited (Samasta).

In 2015, when Akhila approached Samasta, she was surprised to realise how easy it is to avail an Income Generation Loan (IGL) of ` 18,000 with the microfinance company. Of course, post qualifying to avail the loan she became a part of a 16-member group before her loan was disbursed. Akhila used the loan amount to strengthen her inventory and grow her bangle business.

Akhila at her accessories store

Eventually, she availed another loan of ` 23,000, after repaying the first loan. Using this amount, she rented a shop space and improved her inventory further. She added more items to her product basket, catering to a larger audience.

Today, Akhila earns around ` 18,000 every month, which has helped improve her lifestyle immensely.

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In January 2017, India Infoline Finance Ltd. (hereafter IIFL Finance) ventured into the microfinance segment by acquiring 95% stake in Samasta Microfinance Limited, a Bengaluru based NBFC-MFI registered with RBI. IIFL Finance is in the business of home and property loans, gold loans, commercial vehicle finance, healthcare finance, loans against securities and small and medium enterprise business loans.

CREATING LONG-TERM VALUE


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Corp

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Statutory Report

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Creating Long-term Value

REACHING AND CONNECTING WITH AWIDER AUDIENCEIIFL is a well-established financial services company serving over 4.1 million customers from 2,250 service locations including more than 1,000 branches across India. It has an international presence with offices in New York, London, Geneva, Singapore, Hong Kong, Dubai and Mauritius. In addition to the founding team, IIFL now has a highly qualified and experienced management team driven by pride and reward of ownership. This acquisition will help Samasta Microfinance to extend its services to a larger customer base.

IMPROVED CREDIT RATING In March 29, 2017 the Company received a better credit rating through a combination of ample liquidity in the system, and IIFL’s strong foundation, stable asset quality, strong capitalisation and healthy profits.

SYNERGISTIC BENEFITSThe portfolio of Samasta is primarily concentrated in the states of Tamil Nadu and Karnataka, with some presence in Maharashtra and Goa as well. The acquisition will increase the access of Samasta’s customer base to IIFL’s wide array of products and services. IIFL Finance and Samasta’s teams will leverage their combined experience to scale up the existing platform. The Company will now be able to expand, and provide better products and services to both existing and new clients across the country.

STRENGTHENED BOARDIIFL Finance’s strategic investor - CDC, the UK government’s Development Finance Institution, was offered a position on Samasta’s board as well.

CDC is known for its holdings in NBFC’s and Microfinance companies and for providing essential support in their invested companies’ growth.

CDC’s presence bolsters the Company’s governance system and provides valuable guidance in our journey.

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TECHNOLOGYSamasta Microfinance believes that technology combined with innovation and sound business processes brings in the greatest return. Pursuing this thought, the Company has focused on advanced technology solutions. It has always emphasised on having strong IT infrastructure to efficiently run the backend business operations and deliver efficient financial services to customers. With the growing pace of business operations, the Company needs to capture more data and undertake new processes to meet regulatory requirements. Considering the pace of development, the Company has decided to switch to upgraded software to meet the existing and future business requirements.


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Corp

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Statutory Report

Finan

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Technology

FOR SOURCINGThe Company uses the Group Loan Origination Workflow (GLOW), an app used for tab based enrolment of customers wherein the details of the customers are recorded in tablets provided to the field officers. This reduces the time required for enrolment and in turn increases the capability of servicing more customers.

BR.NETBR.Net is a state-of-the-art banking-automation software application, developed by Craft Silicon, that provides convenience of operation, acute maintenance and retrieval of data and automated compilation of statistics among others.

FOR COLLECTION: TRUCELLTruCell, an app which is used for recording the collection entries by the Field Welfare Officers (FWOs) / branch managers; provides real-time updates on the collections done by the FWO and also gives online data on the amount of loan outstanding of the customer.

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HUMANCAPITAL

Our employees are our greatest asset and we are committed to attract, retain and recognize talent.

We believe in providing our employees personal and professional growth while boosting a collaborative and fair working environment. Being entrepreneurial in spirit, we encourage fresh minds and new ideas. We are a company that delivers superior results and value without

compromising on our values of fairness, integrity and transparency.

We believe that our integrated yet decentralised way of working provides our employees with the opportunity to develop leadership capabilities and business acumen as they balance their professional knowledge with insights and perspectives gained through local market experience and customer relationships.

At Samasta Microfinance, we support the professional development of our employees. We believe in providing both vertical and lateral growth through training programmes, on-the-job opportunities and rewards and recognition to encourage superior performance and a competitive mindset.


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Corp

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Statutory Report

Finan

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Human Capital

the induction training has been put in place. In addition to this, process trainings, usage of BR.net, Glow, etc. have been delivered and will continue to be done moving forward.

AUTOMATIONOne of the most notable initiatives this year has been HR automation with the initiation of a new human resource management system - Humanet. Once this is fully implemented, the HR team will be able to better support the employees and the business with improved service delivery and employee connect. Humanet will assist in automating HR functions such as leave and attendance management, recruitment and onboarding, performance appraisals, etc., thereby provide better turnaround times.

REWARDS AND RECOGNITIONA new R&R programme has been put in place to reward good performers and motivate others to do better. This programme has been launched towards the end of 2016-17 and is expected to aid our efforts in employee development.

salaries and benefits to its employees. The compensation levels have been increased in several locations to be on par with the market standards and ensure we are able to hire quality people.

ATTRITION MANAGEMENTSignificant efforts are being made to contain employee attrition. Several measures have been put in place such as better work load distribution amongst employees, additional manpower being hired to reduce work pressure, coaching and mentoring offered to the managers in the form of people management trainings etc. The additional measures are expected to contribute in further lowering the attrition rate.

TRAINING AND DEVELOPMENTThe training function plays a critical role in the MFI industry. At Samasta, a fully functional training team has been put in place to assist our employees’ learning and development needs. The training team is on a mission to equip employees with all the necessary knowledge such as processes and functional related, people management, behavioural trainings, leadership skills, etc. A 10-day boot camp with a mix of classroom and field trainings has been put in place for all the newly hired Customer Relationship Officers. For all other employees, a shorter version of

COMPETENT HR TEAMAs the Company expanded operations in different regions, dedicated HR personnel were hired at various levels in both Karnataka and Tamil Nadu to engage closely with the operations teams.

RECRUITMENT AND GROWTHFrom employee strength of 260 as of March 2016, the Company grew to an employee strength of 690 as of March 2017. Between April 2016 – March 2017, a total of 38 new branches were opened. With IIFL’s investment coming in, a fast-paced growth is expected as Samasta expands into other states and launches new products in its portfolio.

POLICIES & PROCESSESAll HR policies and processes have been reviewed, with the aim of providing better employee benefits. A comprehensive employee handbook was published which includes all the important information that employees need to be aware of. The translation of the employee handbook into different vernacular languages in currently in progress.

COMPENSATION AND BENEFITSThe compensation and benefits are being reviewed on regular intervals to ensure Samasta offers competitive

Key Updates

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BOARD OF DIRECTORS

Mr. Badri SeshadriIndependent DirectorAn alumnus of IIT, Chennai and with a Ph.D in Mechanical Engineering from Cornell University in the USA, Mr. Seshadri co-founded Cricinfo.com, a cricket information portal, which is now owned by ESPN. His latest venture is New Horizon Media, focusing on publishing in Indian languages.

Mr. Vikraman A.Independent DirectorA former Chief General Manager of SIDBI Foundation for Micro Credit, Mr. Vikraman has extensive experience in the Microfinance Sector. In his experience spanning 38 years, he was with Reserve Bank of India for 5 years, IDBI for 16 years and SIDBI for 17 years. He is also in the board of other microfinance and financial corporations.

Mr. R. VenkataramanNon-Executive DirectorMr. R. Venkataraman, Co-Promoter and Managing Director of IIFL Holdings Limited. He is a B. Tech from IIT, Kharagpur and MBA from IIM, Bangalore. He joined the Company’s Board in July 1999, contributing immensely into the establishment of various businesses over the past 17 years. He held senior managerial positions at ICICI Limited and its joint venture with JP Morgan, Barcla ys BZW. Also, he worked as vice president for GE Capital Services India.

Mr. Ramanathan A.Independent DirectorMr. Ramanathan has extensive experience in development banking for the agriculture and rural sectors. He was Chief General Manager in the Micro Credit Innovations Department of NABARD. He managed the SHG Bank Linkage programme, the largest microfinance programme in the world. As In-charge of the Financial Inclusion department, he has managed Financial Inclusion Fund and Financial Inclusion Technology Fund.


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Corp

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Statutory Report

Finan

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Board of Directors

Mr. Venkatesh N.Managing DirectorMr. Venkatesh has an experience of over 15 years in the financial sector. He is the founder of PNV Techno Acquisitions Private Limited that markets financial products. He is also a founder of Affluence Edifice, offering wealth management services for high net worth individuals. He has completed ACCION programme for strategic leadership in Microfinance through Harvard Business School.

Mr. Shivaprakash D.Whole Time Director and CIOMr. Shivaprakash has worked with major IT corporates for over a decade, successfully executing projects for global clients and nurturing client relationships. As CIO at Samasta, he brings a unique combination of technological expertise and management skills.

Mr. K. ChandrachoodanNon-Executive DirectorHe holds a Post Graduate Degree in Operations Research from Delhi University, 33 years of experience with Reserve Bank of India, successfully handled the gamut of Central Banking Operations. He has worked as a Regional Advisor in the International Monetary Fund (IMF) AFRITAC West 2 – Ghana working closely with the senior management of Central Banks of member countries to identify supervisory needs and providing technical assistance.

Mr. Gaurav MalhotraNon-Executive DirectorMr. Gaurav has a degree in Engineering and a MBA from IIM Bangalore, joined CDC in 2016, responsible for advertising, supporting the CDC Group on the investments in Financial Institutions in South Asia. Gaurav has wide range of consultancy experience, working for several financial institutions during his 10 years with The Boston Consulting Group in Indian and Europe. He also worked for a year as the head of strategy for an Indian family business. He has experience in several areas including growth strategy, consumer behaviour,, distribution networks, operations and IT, various Microfinance Institutions.

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BOARD’S REPORT

To,The Members,Samasta Microfinance LimitedBangalore

Your Directors take pleasure in presenting the 22nd (Twenty Second) Annual Report together with the audited financial statements and the Auditors’ Report of your company for the financial year ended 31st March, 2017. The summarized results for the year ended 31st March, 2017 are as under:

1. PERIOD OF REPORT: This report is for the period from 01st April, 2016 to

31st March, 2017.

2. DISCLOSURE UNDER SECTION 92(3) OF THE COMPANIES ACT, 2013 (HEREINAFTER KNOWN AS THE “ACT”)

Disclosure under Section 92(3) of the Act that relate to the Extracts of Annual Return has been placed at Annexure I and forms part of this Board Report.

3. MEETINGS OF THE BOARD AND DIFFERENT COMMITTEES DURING THE FINANCIAL YEAR 2016-17:

The Board duly met for 10 (Ten) times during the year under review.

4. DIRECTORS’ RESPONSIBILITY STATEMENT: Pursuant to Section 134(5) of the Act, the Board, based on the

representations received from the management, confirms that:

a) In the preparation of the annual accounts, for year ended on 31.03.2017, the applicable accounting standards have been followed and that there are no material departures.

b) The Board has selected such accounting policies and applied them consistently and made judgments and estimated that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the Company for that period.

c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) The Directors had prepared the annual accounts on a going concerns basis.

e) The directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

f ) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Following frauds were reported during the financial year 2016-2017. Appropriate measures have been taken in respect of the frauds.

Details of instances of frauds during April 01, 2016 to March 31, 2017 are given below-

1) No. of instances of fraud reported to RBI from April 01, 2016 to March 31, 2017: 3 Cases.

2) Total amount involved in fraud: ` 1,14,505 3) Total amount recovered till March 2017: ` 41,579

5. DECLARATIONS BY INDEPENDENT DIRECTORS: The Company has received declarations from the Independent

Directors stating they meet the criteria as specified under Section 149 (6) of the Companies Act, 2013.

6. COMPANY’S POLICIES ON APPOINTMENT OF DIRECTORS, REMUNERATION AND OTHER MATTERS:

The Company takes a cautious approach in relation to appointment of Directors on the Board of the Company. It shall appoint such persons who are relevant expertise and vast experience in the field of microfinancing. The remuneration of Directors shall be based on their contribution towards the overall development of the Company as well as their participation in the meetings of the Company. The terms and conditions for appointment of Independent Directors, and the nomination and remuneration policy are uploaded on the website of the Company and may be accessed by visiting our website –www.samasta.co.in.

7. COMPOSITION OF BOARD OF DIRECTORS, COMMITTEES OF THE BOARD AND KEY MANAGERIAL PERSONNEL:

A) The Board of Directors of the Company was duly constituted throughout the year. However, following changes were made to the Board:


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i) Mr. Chandra Shekar Ramakrishna resigned as Director of the Company with effect from 16th February, 2017;

ii) Mr. Venkataraman Rajamani and Mr. Kalyanaraman Chandrachoodan were appointed as Additional Directors of the Company with effect from 20th January, 2017;

iii) Mr. Gaurav Malhotra was appointed as an Additional Director of the Company with effect from 07th March, 2017.

The current composition of the Board of Directors is as below:

Sr. No Name of the Director Designation and Category1 Mr. Badrinarayanan S. Non-Executive, Independent Director

2 Mr. Venkatesh N. Managing Director and Chief Executive Officer

3 Mr. Vikraman A. Non-Executive, Independent Director

4 Mr. Shivaprakash D. Whole-Time Director and Chief Information Officer

5 Mr. Ramanathan A. Non-Executive, Independent Director

6 Mr. Venkataraman R. Additional Director

7 Mr. Gaurav Malhotra Additional Director

8 Mr. Chandrachoodan K. Additional Director

The meetings of Board of Directors and attendance of the Directors are as given below:

Sr. No.

Date of Meeting

Presence of DirectorsVenkatesh

N.Shivaprakash

D.R.C.

ShekarGaurav

M.Ramanathan

A.Badrinarayan

S.Chndrachoodan

K.Venkataraman

R.Vikraman

A.1 26.04.2016 Y Y Y NA Y Y NA NA Y

2 20.06.2016 Y Y Y NA N N NA NA N

3 28.06.2016 Y Y Y NA N N NA NA N

4 29.06.2016 Y Y Y NA N N NA NA N

5 02.07.2016 Y Y Y NA Y Y NA NA Y

6 29.07.2016 Y Y Y NA N N NA NA N

7 11.11.2016 Y Y Y NA Y Y NA NA Y

8 20.01.2017 Y Y Y NA N N NA NA N

9 16.02.2017 Y Y Y NA Y N Y Y Y

10 07.03.2017 Y Y NA Y Y Y Y Y Y

Y –YesN –NoNA –Not Applicable

B) Committees of the Board: i) Audit Committee: The Audit Committee currently consists of the following members: 1. Mr. Vikraman Ampalakkat, Chairman 2. Mr. Badrinarayanan Seshadri 3. Mr. Shivaprakash D.

All the recommendations of the Committee have been adopted by the Board.

The meetings of the Audit Committee and attendance of its members are as given below:

Sr. No. Date of MeetingName of Directors

Shivaprakash D. Vikraman A. Badrinarayanan S.1 26.04.2016 Yes Yes Yes

2 11.11.2016 Yes Yes Yes

3 16.02.2017 Yes Yes No

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ii) Nomination & Remuneration Committee: The Nomination & Remuneration Committee currently consists of the following members: 1. Mr. Ramanathan Annamalai Chairman 2. Mr. Badrinarayanan Seshadri 3. Mr. Venkatesh N.


The meetings of the Nomination and Remuneration Committee and attendance of its members are as given below:


Venkatesh N. Badrinarayanan S. Ramanathan A.1 07.03.2017 Yes Yes Yes

iii) Resourcing & Business Committee: The Resourcing & Business Committee currently consists of the following members: 1. Mr. Venkatesh N. 2. Mr. Shivaprakash D.

Mr. RC Shekar resigned from the Committee with effect from 16th February, 2017.


The meetings of the Resourcing & Business Committee and attendance of its members are as given below:


Venkatesh N. Shivaprakash D. RC Shekar1 27.04.2016 Yes Yes No

2 05.05.2016 Yes Yes No

3 12.05.2016 Yes Yes No

4 18.05.2016 Yes Yes No

5 25.05.2016 Yes Yes No

6 30.05.2016 Yes Yes No

7 02.06.2016 Yes Yes No

8 07.06.2016 Yes Yes No

9 09.06.2016 Yes Yes No

10 17.06.2016 Yes Yes No

11 27.06.2016 Yes Yes No

12 28.06.2016 Yes Yes No

13 01.07.2016 Yes Yes No

14 04.07.2016 Yes Yes No

15 26.07.2016 Yes Yes No

16 01.08.2016 Yes Yes No

17 10.08.2016 Yes Yes No

18 21.09.2016 Yes Yes No

19 21.10.2016 Yes Yes No

20 14.11.2016 Yes Yes No

21 28.11.2016 Yes Yes No

22 10.12.2016 Yes Yes No

23 19.01.2017 Yes Yes No

24 01.02.2017 Yes Yes No

25 15.02.2017 Yes Yes No


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Venkatesh N. Shivaprakash D. RC Shekar26 01.03.2017 Yes Yes Not Applicable

27 07.03.2017 Yes Yes Not Applicable



c) Further, in relation to the changes in Key Managerial Personnel of the Company- a) Mr. S Parthasarathy resigned as Chief Financial Officer of the Company on 31st May, 2016

b) Ms. Ritu Singh resigned as Company Secretary of the Company on 11th November 2016

The present KMP of the company are:

Sr. No Name of the Director Designation1 Mr. Thangavel Anantha Kumar Appointed as Chief Financial Officer with effect from 02/07/2016

2 Ms. Sutheja K.J Appointed as Company Secretary with effect from 11/11/2016

8. CHANGES IN SHARE CAPITAL: The Authorised Capital of the Company was increased

from ` 12,50,00,000 divided into 1,05,00,000 Equity shares of ` 10 each aggregating to ` 10,50,00,000 and 20,00,000 Preference shares of ` 10 each aggregating to ` 2,00,00,000 to ` 42,50,00,00 divided into 4,05,00,000 Equity shares of ̀ 10 each aggregating to ` 40,50,00,000 and 20,00,000 Preference shares of ` 10 each aggregating to ` 2,00,00,000 on 22nd June 2016. Subsequently, on 8th March 2017, the Authorised Capital of the Company was further increased to ` 65,00,00,000 divided into 6,30,00,000 Equity shares of ` 10 each aggregating to ` 63,00,00,000 and 20,00,000 Preference shares of ` 10 each aggregating to ` 2,00,00,000.

The Paid-up Capital of the Company has been increased from ` 10,47,00,000/- to ` 11,34,46,110/- on 20th January 2017 pursuant to conversion of 10,00,000 Optionally Convertible Preference Shares OCPS into 8,74,611 Equity Shares of ` 10/- each. Subsequently, on 20th March 2017, the Paid-up Capital of the Company was further increased to ` 61,34,46,110/- pursuant to allotment of 5,00,00,000 Equity Shares of ` 10/- each.

9. STATUTORY AUDITORS: Your Company’s Statutory Auditors, M/s. Gowthama and

Company., Chartered Accountants whose term is upto the conclusion of the 23rd Annual General Meeting are proposed to be re-appointed at the ensuing Annual General Meeting of the Company.

10. AUDITORS’ REPORT AND ITS QUALIFICATIONS: There are no qualifications, reservations or adverse remarks

or disclaimer made by the auditor in their report for the year under review and requires no further comments thereon.

11. SECRETARIAL AUDITOR: The Company had appointed Mr. Lakshmeenarayan Bhat,

Practicing Company Secretary as the Secretarial Auditor under Section 204 of the Companies Act, 2013 for the period under review.

12. QUALIFICATIONS IN THE SECRETARIAL AUDITORS’ REPORT AND COMMENTS ON THE SAME:

a) Point 1 of the Report states that the Company has not appointed a Woman Director as per the provisions of Section 149 of the Companies Act, 2013.

Directors’ Comments: The Company is in the process of appointing a suitable candidate as Woman Director on its Board at the earliest.

13. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186:

The Company being a Non-Banking Financial Company is exempted from the purview of Section 186 of the Companies Act, 2013.

14. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

There were no Related Party Transactions during the year falling under the purview of Section 188 of the Companies Act, 2013.

15. DEPOSITS: Your Company has not accepted any deposits from public

during the financial year under review.

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16. DETAILS OF SUBSIDIARY, JOINT VENTURE OR ASSOCIATES: The Company has a 100% wholly owned subsidiary M/s. Ayusha Dairy Private Limited which is into procurement of milk from dairy

farmers and marketing the milk to milk products producers.

17. FINANCIAL HIGHLIGHTS (STANDALONE AND CONSOLIDATED): A. Standalone Financials of M/s. Samasta Microfinance Limited

Amount in `

ParticularsYear ended

31st March, 2017Year ended

31st March, 2016Total Revenue 328,447,288 201,398,630

Total Expenses 322,212,993 182,469,385

Earnings before tax 6,234,295 18,929,245

Earnings after tax 8,089,888 14,655,322

B. Consolidated Financials with Subsidiary M/s. Ayusha Dairy Private LimitedAmount in `



31st March, 2016Turnover 320,431,427 193,247,992

Profit/ (loss) before Tax 6,771,123 22,602,120

Profit/ (loss) after Tax 8,476,716 16,525,413

18. OPERATIONAL HIGHLIGHTS:



31st March, 2016Active borrowers (Own Portfolio) 79,559 4,6011

Loan disbursement (` in lakh) 24,480.48 14,262.18

Loan portfolio (` in lakh) 23,908.34 13,243.05

BC loan portfolio (` in lakh) 7,786.67 4,180.61

Securitization (` in lakh) 1,756.88 2,255.81

No of Branches 70 32

No. of centers 154,170 6481

No. of employees 690 259

Repayment rate 97.86% 97.36%

The Company has increased its income from operations from ` 191,598,918 for the financial year ended 31st March, 2016 to ` 320,431,427 for the period under review.

19. DIVIDEND: Your Board of Directors do not recommend any Dividend for

the financial year 2016-17.

20. TRANSFER TO RESERVES: During the year, entire profits have been transferred to

Reserves.

21. MATERIAL CHANGES POST END OF THE FINANCIAL YEAR:

There has been no material changes in the Company post end of financial year.

22. MANAGERIAL REMUNERATION: There was no employee during the year-

a) Who was in receipt of remuneration for that year which, in the aggregate, was not less than one crore and two lakhs;

b) If employed for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, was not less than eight lakhs and fifty thousand;

c) If employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the


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aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the company.

Disclosure under Section 197 (12) read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:

i) the ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year:

Mr. Venkatesh N., Managing Director -37.45 Mr. Shivaprakash D., Whole Time Director -40.50

ii) the percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year:

Managing Director -10.60% Whole Time Director -14% Chief Financial Officer -5% Company Secretary –NIL

iii) the percentage increase in the median remuneration of employees in the financial year: 13.41%

iv) the number of permanent employees on the rolls of company: -690

v) the explanation on the relationship between average increase in remuneration and company performance:

The increase in remuneration is justified with the 67% increase in revenue from operations during the financial year.

vi) comparison of the remuneration of the Key Managerial Personnel against the performance of the company:

The total Managerial remuneration paid for the financial year ended 31st March, 2017 was ` 67,65,423 and the total income from operations as on the said date was 32,04,31,427.

vii) variations in the market capitalisation of the company, price earnings ratio as at the closing date of the current financial year and previous financial year and percentage increase over decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer in case

of listed companies, and in case of unlisted companies, the variations in the net worth of the company as at the close of the current financial year and previous financial year:

The Company is not an Equity listed Company.

Further, the Net worth of the Company as on 31st March, 2017 is ` 64,35,32,458 as compared to the Net worth as on 31st March, 2016 which was ` 13,62,98,728.

viii) the key parameters for any variable component of remuneration availed by the directors: NIL

ix) the ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year: Not Applicable

x) affirmation that the remuneration is as per the remuneration policy of the company: Yes, we affirm that the remuneration was as per the remuneration policy of the company.

23. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS/ OUTGO IN TERMS OF SECTION 134(3)(M) OF THE COMPANIES ACT, 2013 AND RULE 8 OF COMPANIES (ACCOUNTS) RULES, 2015:

a) Energy Consumption: There are no matters to be reported under this head as

the company is not engaged in power-intensive activities and hence not applicable to this company.

b) Technology Absorption: There are no matters to be reported under this head

as the company is not entered into any technical collaboration agreements.

c) Foreign Exchange Outflow/Inflow: The Company has no transactions in foreign currency

during the Financial Year 2016-17.

24. RISK MANAGEMENT POLICY: Successful mortgage lending calls for timely identification,

careful assessment and effective management of the credit operational, market (interest-rate and liquidity) and reputation risks. The Company has adopted efficient risk-management policies, systems and processes that seek to strike an appropriate balance between risk and returns.

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The Company has also introduced appropriate risk-management measures, such as accessing the Applicant’s credit history with credit information bureaus, field investigation of the applicant’s credentials, multiple verification layers, adoption of prudent loan/value ratio and analysis and adoption of a conservative debt-service capacity of the borrowers, thorough in-house scrutiny of legal documents, monitoring the end-use of approved loans and lending against approved properties.

25. MANAGEMENT DISCUSSION AND ANALYSIS REPORT: The Management Discussion and Analysis Report has been

enclosed as Annexure II to this Report.

26. CORPORATE SOCIAL RESPONSIBILITY (CSR): The provisions of Section 135 of the Companies Act, 2013 is

not applicable to the Company for the current financial year under review.

27. STATEMENT SHOWING ANNUAL PERFORMANCE EVALUATION OF BOARD AND ITS COMMITTEE:

As per the provisions of the Companies Act, 2013, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Committees. A structured exercise was carried out based on the criteria for evaluation forming part of the Directors Appointment, Remuneration & Evaluation Policy, including framework for performance evaluation of Directors, Board & Committees, familiarization Program for Independent Directors Criteria for Evaluation and the inputs received from the Directors, covering various aspects of the Board’s functioning such as adequacy of the composition of the Board and its committee, attendance at meetings, Board culture, duties of directors, and governance.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its stakeholders etc. The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors. The Directors have expressed their satisfaction with the evaluation process.

28. INTERNAL CONTROLS: The Company has a well-established and adequate internal

financial control and risk management framework, with appropriate policies and procedures, to ensure the highest

standards of integrity and transparency in its operations and a strong corporate governance structure, while maintaining excellence in services to all its stakeholders. Appropriate controls are in place to ensure: (a) the orderly and efficient conduct of business, including adherence to policies, (b) safeguarding of assets. (c) prevention and detection of frauds / errors, (d) accuracy and completeness of the accounting records and (e) timely preparation of reliable financial information.

The Company has an Audit Committee, which regularly reviews and monitors systems, internal controls, risk management measures, accounting procedures, financial management and operations of the Company.

The Audit Committee, Independent Directors and the Board after review are satisfied with the internal financial controls and risk management systems put in place by the Company.

29. DETAILS OF SIGNIFICANT & MATERIAL ORDER PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL:

During the financial year, there are no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and your company’s operations in future.

30. DISCLOSURE ON ESTABLISHMENT OF VIGIL MECHANISM: Your Company has established a Vigil Mechanism & has

adopted a Whistle Blower Policy for directors and employees to report their genuine concerns to the Chairman of the Audit Committee.

The Whistle Blower Policy has been formulated with a view to provide a mechanism for employees and directors to approach the Audit Committee of the Company.

31. DISCLOSURES UNDER SEXUAL HARASSMENT 0F WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013:

The Company has in place Anti-Sexual Harassment Policy named “Policy Against Sexual Harassment.’ in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. An Internal Complaints Committees (ICC) has been set up to redress complaints received regarding sexual harassment.

Your Directors further state that during the year under review, no complaints have been received pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.


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32. ANNEXURE FORMING PART OF THIS REPORT OF DIRECTORS:

The Annexure referred to in this Report and other information which are required to be disclosed are annexed herewith and form a part of this Report of the Directors:

a. Extracts of Annual Return in Form MGT-9- Annexure I b. Management Discussion and Analysis Report- Annexure II c. Statement containing salient features of the financial

statement of subsidiaries in Form AOC-1- Annexure III d. Secretarial Audit Report- Annexure IV

33. ACKNOWLEDGEMENTS: Your Directors wish to place on record their appreciation

and acknowledge with gratitude the continued support and

co-operation extended by the investors, clients, business associates and bankers and look forward for their continued support. Your Directors also place on record their appreciation for the services rendered by the employees at all levels.

For and on behalf of Samasta Microfinance Limited

Venkatesh N. Shivaprakash D.Managing Director Whole Time Director

DIN: 01018821 DIN: 02216802

Date: April 21, 2017

Place: Bangalore

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FORM NO. MGT 9EXTRACT OF ANNUAL RETURNAs on financial year ended on 31.03.2017

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:1. CIN U65191KA1995PLC057884

2. Registration Date 09/08/1995

3. Name of the Company SAMASTA MICROFINANCE LIMITED

4. Category/Sub-category of the Company Company Limited by Shares

5. Address of the Registered office & contact details 418,1/2A, 4th Cross, 6th Main, Wilson Garden, Bangalore KA 560027 INDIA

Contact Number: 08042913500

6. Whether listed company No, Debt Listed

7. Name, Address & contact details of the Registrar &

Transfer Agent, if any.

Karvy Computershare Private Limited, Karvy Selenium Tower B, Plot 31-32, Gachibowli,

Financial District, Nanakramguda, Hyderabad – 500 032

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY: All the business activities contributing 10 % or more of the total turnover of the company shall be stated:

Sr. No. Name and Description of main products / services NIC Code of the Product/service % to total turnover of the company1 Financing Services - Micro Finance Lending 64990 86.70

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:

Sr. No. Name and Address of the Company CIN CategoryPercentage of

Shares HeldApplicable

Section1 India Infoline Finance Limited

12A-10, 13th Floor, Parinee Crescenzo, G Block, C-38&39,

Bandra Kurla Complex, Bandra- East Mumbai

Mumbai City 400051

U67120MH2004PLC147365 Holding 95.23 2 (46)

2 Ayusha Dairy Private Limited

418, 1/2A, 4th Cross, 6th Main, Wilson Garden,

Bangalore KA 560027

U15490KA2011PTC058468 Subsidiary 100 2 (87)

IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY)A) Category-wise Share Holding

Category of Shareholders

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % of Change

during the Year

Demat Physical Total% of Total

SharesDemat Physical Total

% of Total Shares

(A) Pr omoters (1) Indian (a) Individual/HUF -- 1680840 1680840 16.05 1680840 - 1680840 2.74 (13.31)

(b) Central Govt -- -- -- -- -- -- -- -- --

(c) State Govt (s) -- -- -- -- -- -- -- -- --

(d) Bodies Corp. -- -- -- -- 58417631 -- 58417631 95.23 95.23

(e) Banks / FI -- -- -- -- -- -- -- -- --

(f ) Any other (relative of

promoters)

- 1246140 1246140 11.90 1246140 - 1246140 2.03 (9.87)

Sub-Total (A) (1) -- 2926980 2926980 27.96 61344611 -- 61344611 100 72.04 (2) Foreign (a) NRIs – Individuals -- -- -- -- -- -- -- -- --

(b) Other – Individuals -- -- -- -- -- -- -- -- --

ANNEXURE - A


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Category of Shareholders

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % of Change

during the Year

Demat Physical Total% of Total

SharesDemat Physical Total

% of Total Shares

(c) Bodies Corp. -- -- -- -- -- -- -- -- --

(d) Banks / FI -- -- -- -- -- -- -- -- --

(e) Any Other…. -- -- -- -- -- -- -- -- --

Sub-Total (A) (2) -- -- -- -- -- -- -- -- --Total Shareholding of Promoter = (A) (1) + (A) (2)

-- 2926980 2926980 27.96 61344611 -- 61344611 100 72.04

(B) Public Shareholding (1) Institutions (a) Mutual Funds -- -- -- -- -- -- -- -- --

(b) Banks/FI -- -- -- -- -- -- -- -- --

(c) Central Govt -- -- -- -- -- -- -- -- --

(d) State Govt (s) -- -- -- -- -- -- -- -- --

(e) Venture Capital funds -- -- -- -- -- -- -- -- --

(f ) Insurance Companies -- -- -- -- -- -- -- -- --

(g) FIIs -- -- -- -- -- -- -- -- --

(h) Foreign Venture

Capital Funds

-- -- -- -- -- -- -- -- --

(i) Others (Specify) -- -- -- -- -- -- -- -- --

Sub-Total (B)(1) -- -- -- -- -- -- -- -- -- (2) Non- Institutions (a) Bodies Corp

i. Indian -- 3252600 3252600 31.07 -- -- -- -- (31.07)

ii. Overseas -- -- -- -- -- -- -- -- --

(b) Individuals -- -- -- -- -- -- -- -- --

i. Individual

shareholders

holding nominal

share capital up

to ` 1 lakh

-- 27600 27600 0.26 -- -- -- -- (0.26)

ii. Individual

shareholders

holding nominal

share capital in

excess of ` 1 lakh

-- 4262820 4262820 40.71 -- -- -- -- (40.71)

(C) Others (Specify)Sub-Total (B)(2) -- 7543020 7543020 72.04 -- -- -- -- (72.04)Total Public Shareholding = (B) (1) + (B) (2)

-- 7543020 7543020 72.04 -- -- -- -- (72.04)

C. Shares held by custodian

for GDRs & ADRs

Grand Total (A+B+C) -- 10470000 10470000 100 61344611 -- 61344611 100 0.00

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B) Shareholding of Promoters

Sr. No. Shareholder’s Name

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

shareholding 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 Mr. Shivaprakash D. 345000 3.30 -- 345000 0.56 -- (2.74)

2 Mr. Venkatesh N. 1335840 12.76 -- 1335840 2.18 -- (10.58)

3 India Infoline Finance

Limited

-- -- -- 58417631 95.23 -- 95.23

C) Change in Promoters’ Shareholding (please specify, if there is no change)

ParticularsShareholding at the beginning of the year Cumulative Shareholding during the year

No. of shares% of total shares of

the companyNo. of shares

% of total shares of the company

At the beginning of the year:

1. Mr. Shivaprakash D. 345000 3.30 345000 3.30

2. Mr. Venkatesh N. 1335840 12.76 1335840 12.76

3. India Infoline Finance Limited -- -- -- --

Changes in Promoters Share holding during the year:

1. Mr. Shivaprakash D. -- -- -- (2.74)

2. Mr. Venkatesh N. -- -- -- (10.58)

3. India Infoline Finance Limited – Conversion of

OCPS dated 20.01.2017, Transfers dated 01.02.2017,

07.03.2017 and allotment dated 20.03.2017

-- -- 58417631 95.23

At the end of the year:

1. Mr. Shivaprakash D. 345000 0.56

2. Mr. Venkatesh N. 1335840 2.18

3. India Infoline Finance Limited 58417631 95.23

D) Shareholding Pattern of top ten Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs)






1. Mr. G J Krishnaprasad 552000 5.27 552000 5.27

2. Ms. Anitha Shivaprakash 193200 1.85 193200 1.85

3. Mr. Vinodh 276000 2.64 276000 2.64

4. Mr. Shiva Srinivasan 138000 1.32 138000 1.32

5. R. Satya HUF 96600 0.92 96600 0.92

6. Mr. P.S. Anand Ram 96600 0.92 96600 0.92

7. Kalpathi Investments Private Limited 1656000 15.82 1656000 15.82

8. Mr. B.H Krishnamurthy 552000 5.27 552000 5.27

9. Mr. Sanjay Shenoy 683100 6.52 683100 6.52

10. SIDBI 1500000 14.33 1500000 14.33

Changes in Promoters

Share holding during the year:

1. Mr. G J Krishnaprasad (552000) (5.27) (552000) (5.27)

2. Ms. Anitha Shivaprakash -- -- -- --

3. Mr. Vinodh (276000) (2.64) (276000) (2.64)

4. Mr. Shiva Srinivasan (138000) (1.32) (138000) (1.32)


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5. R. Satya HUF (96600) (0.92) (96600) (0.92)

6. Mr. P.S. Anand Ram (96600) (0.92) (96600) (0.92)

7. Kalpathi Investments Private Limited (1656000) (15.82) (1656000) (15.82)

8. Mr. B.H Krishnamurthy (552000) (5.27) (552000) (5.27)

9. Mr. Sanjay Shenoy (683100) (6.52) (683100) (6.52)

10. SIDBI (1500000) (14.33) (1500000) (14.33)


1. Mr. G J Krishnaprasad -- -- -- --

2. Ms. Anitha Shivaprakash 193200 0.31 -- --

3. Mr. Vinodh -- -- -- --

4. Mr. Shiva Srinivasan -- -- -- --

5. R. Satya HUF -- -- -- --

6. Mr. P.S. Anand Ram -- -- -- --

7. Kalpathi Investments Private Limited -- -- -- --

8. Mr. B.H Krishnamurthy -- -- -- --

9. Mr. Sanjay Shenoy -- -- -- --

10. SIDBI -- -- -- --

Note: There is a change in the percentage of shareholding of Ms. Anitha Shivaprakash due to conversion of OCPS and allotment made during the year to M/s. India Infoline Finance Limited. The change in shareholdings of other shareholders is due to transfers made to M/s. India Infoline Finance Limited.

E) Shareholding of Directors and Key Managerial Personnel:






1. Mr. Venkatesh N. 1335840 12.76 1335840 12.76

2. Mr. Shivaprakash D. 345000 3.30 345000 3.30

3. Mr. RC Shekar 1765020 16.86 1765020 16.86

Changes in Promoters

Share holding during the year:

1. Mr. Venkatesh N. No Change -- No Change --

2. Mr. Shivaprakash D. No Change -- No Change --

3. Mr. RC Shekar (1765020) (16.86) (1765020) (16.86)


1. Mr. Venkatesh N. 1335840 2.18 -- --

2. Mr. Shivaprakash D. 345000 0.56 -- --

3. Mr. RC Shekar -- -- -- --

Note: There is a change in the percentage of shareholding of Mr. Shivaprakash D. and Mr. Venkatesh N. due to conversion of OCPS and allotment made during the year to M/s. India Infoline Finance Limited.

36


V) INDEBTEDNESS: Indebtedness of the Company including interest outstanding/accrued but not due for payment

ParticularsSecured Loans

excluding depositsUnsecured Loans Deposits

Total Indebtedness

Indebtedness at the beginning of the financial yeari) Principal Amount 32,66,91,099 - - 32,66,91,099

ii) Interest due but not paid - - - -

iii) Interest accrued but not due 25,60,190 - - 25,60,190

Total (i+ii+iii) 32,92,51,289 - - 32,92,51,289Change in Indebtedness during the financial year* Addition 30,94,77,200 - - 30,94,77,200

* Reduction - - - -

Net Change 30,94,77,200 - - 30,94,77,200

Indebtedness at the end of the financial yeari) Principal Amount 63,26,70,317 - - 63,26,70,317

ii) Interest due but not paid - - - -

iii) Interest accrued but not due 60,58,172 - - 60,58,172

Total (i+ii+iii) 63,87,28,489 - - 63,87,28,489

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Sr. No.

Particulars of RemunerationName of MD and WTD

Total AmountMr. Venkatesh N. Mr. Shivaprakash D. Mr. RC Shekar

1 Gross salary

(a) Salary as per provisions contained in section 17(1) of

the Income-tax Act, 1961

33,01,704 24,01,908 15,12,718 72,16,330

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

(c) Profits in lieu of salary under section 17(3) Income- tax

Act, 1961

2 Stock Option

3 Sweat Equity

4 Commission

- as % of profit

- others, specify…

5 Others, please specify

Total (A) 33,01,704 24,01,908 15,12,718 72,16,330Ceiling as per the Act 84,00,000 84,00,000 84,00,000 2,52,00,000


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B. Remuneration to other directors

Sr. No.

Particulars of RemunerationName of Directors

Total AmountMr. B. Seshadri Mr. R. Annamalai Mr. V. Ampalakkat

1 Independent Directors

Fee for attending board committee meetings 79,222 80,000 85,555 2,44,777

Commission - - - -

Others, please specify - - - -

Total (1) 79,222 80,000 85,555 2,44,7772 Other Non-Executive Directors

Fee for attending board committee meetings - - - -

Commission - - - -

Others, please specify - - - -

Total (2) 0 0 0 0Total (B)=(1+2) 79,222 80,000 85,555 2,44,777Total Managerial Remuneration 79,222 80,000 85,555 2,44,777

C. Remuneration to other Key Managerial Personnel:

Sr. No.

Particulars of Remuneration

Key Managerial PersonnelMs. Ritu Singh

(upto 11th November,

2016)

Mr. S. Parthasarathy

(upto 31st May, 2016)

Mr. Sutheja (11.11.2016 to

31.03.2017)

Mr. T. Anantha Kumar

(02.07.2016 to 31.03.2017)

Total

1 Gross salary 83,293 1,57,926 2,50,000 8,11,813 13,03,032

(a) Salary as per provisions contained in section

17(1) of the Income-tax Act, 1961

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

1961

(c) Profits in lieu of salary under section 17(3)

Income-tax Act, 1961

2 Stock Option

3 Sweat Equity

4 Commission

- as % of profit

others, specify…

5 Others, please specify

Total 83,293 1,57,926 2,50,000 8,11,813 13,03,032

38


VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL

TypeSection of the

Companies ActBrief Description

Details of Penalty / Punishment/

Compounding fees imposed

Authority [RD / NCLT/ COURT]

Appeal made, if any (give Details)

A. COMPANYPenalty

NONEPunishment

Compounding

B. DIRECTORSPenalty

NONEPunishment

Compounding

C. OTHER OFFICERS IN DEFAULTPenalty

NONEPunishment

Compounding



DIN: 01018821 DIN: 02216802


Place: Bangalore


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MANAGEMENT DISCUSSION AND ANALYSIS REPORTNBFCs have played a major role in complementing banks and other financial institutions, and help fill the gaps in availability of financial services with respect to products as well as customer and geographical segments. Strong linkages at the grass root level makes them a critical cog in catering to the unbanked masses in rural and semi-urban reaches, enabling the Government and Regulators to further the mission of financial inclusion. The sheer size of the market in terms of financially excluded households presents large opportunities for a business model that offers sustainable credit to the unbanked and under-banked at affordable rates and a repayment cycle spread over a longer duration. The dynamics of the NBFC sector is reflective of its evolving role in niche areas of specialised services.

However, demonetization has had telling effects on the entire economy of the country and NBFC sector is not an exception to it. Especially the MFI sector has faced a lot of difficulties in collection of dues from its customers due to which the quality of the portfolio has deteriorated and PAR has increased considerably.

SAMASTA MICROFINANCE LIMITED AND ITS OPERATIONS:Financial Year 2016-17 saw a great boost to the operations of the Company in the years to come with the entry of M/s India Infoline Finance Limited (IIFL) as its strategic investor. IIFL acquired substantial equity shareholding in the Company and made an equity infusion of ` 50 crore at the end of the financial year.

Business Growth: Our overall gross loan book including growth in managed assets grew by 80.51% and the GL book saw an increase of 110.78%.

Customer Segment: Our main target customers are the economically backward women of the weaker sections of the society with a view to generate employment and empower them.

Apart from this, we also provide loans to students in purchasing products online through a web based app. However, this does not form a part of our main microfinancing activity as per the norms of the RBI.

Network Expansion: Keeping in mind the equity infusion from IIFL, 38 branches were added to our network with the Company exploring into the states of Goa and Maharashtra along with addition of branches in Karnataka and Tamil Nadu. Total number of branches at the end of the financial year was 70.

Credit Quality: The PAR was at 10.88% in March 2017 as against 0.59% in March 2016. The major cause for the increase in PAR was due to the effects of demonetization during the financial year.

Funding: The Company raised ` 35 crore through issuance of Non-Convertible Debentures and ` 97 crore through Term loans from banks as on March 2017 as against ` 55.40 crore in March 2016.

Further, we had an equity infusion of ` 50 crore from IIFL at the end of the financial year.

RISK MANAGEMENTSamasta Microfinance Limited has an established risk management and audit framework to identify, assess, monitor and manage credit, market, liquidity and operational risks. This framework is driven actively by the Board through its Audit committee and supported by an experienced senior management team.

We have a strong credit function, which is independent of our business and a key controller of the overall portfolio quality.

AUDIT AND INTERNAL CONTROLSSamasta Microfinance Limited has a well-established Internal Audit and Control Systems in place that monitors the company’s adherence to policies, procedures and systems. The Board Audit Committee reviews the adequacy and effectiveness of the internal audit function, including the structure of the internal audit department, annual audit plan, staffing etc., and ensures effective and independent review process. The Internal Audit Department is responsible for monitoring and evaluating the internal controls of the organization as well as its adherence to various statutory and regulatory compliances. These audits cover Branches, Regional offices and Head Office at regular intervals.

FUNCTIONAL AUDITSInternal audits at Regional Offices and Head Office is carried out on a quarterly basis by a board-appointed independent audit firm, covering all key functions including HR, Operations, Credit, Administration, Finance and Accounts, Loan Processing, MIS, etc., The firm also audits the company’s adherence to all Statutory and Regulatory Guidelines that have been prescribed for NBFC-MFIs. The scope of various audits are reviewed and continuously modified to keep pace with a dynamic business environment. A strong compliance monitoring mechanism ensures that all critical issues are tracked until closure within specified timelines. All significant audit observations of Internal Audits and follow-up actions are reported and discussed by the Board Audit Committee, which meets every quarter. Monthly audit updates are also circulated to the board, summarizing audit trends and critical issues.OPERATIONAL PERFORMANCE:

Particulars No.of customersAmount of loan disbursed (in `)

Own book 65,386 1,58,18,19,300

Business Correspondent 35,529 86,16,82,000

Total 1,00,915 2,44,35,01,300

ANNEXURE - II

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FINANCIAL PERFORMANCE:Particulars (`) FY 16-17 FY 15-16Net Interest Income 320,431,427 191,598,918

Other Income 8,015,861 9,799,712

Total Income 328,447,288 201,398,630

Operating Expenses 310,304,181 165,497,598

Operating Profit 1,391,557 14,433,161

Provisions 10,517,255 2,538,626

Profit before Tax 6,234,295 18,929,245

Taxes (18,55,593) 42,73,923

Profit After Tax 8,089,888 14,655,322

INFORMATION TECHNOLOGYWe have embraced technology with open arms and are streamlining many of our operations by adopting technology such as:

1. For Sourcing: Group Loan Origination Workflow (GLOW), an app used for tab based enrolment of customers wherein the details of the customers are recorded in tablets provided to the field officers which would reduce the time required for enrolment in case of manual entry of details of the customers and in turn increases the number of customers for the Company;

2. For Collection: Trucell, an app which is used for recording the collection entries by the field officers / branch managers;

HUMAN RESOURCESThere has been a significant increase in the number of employees of the Company with the count reaching 690 as on 31st March, 2017 as against 259 as on 31st March, 2016. The increase is attributed to the opening of new branches for expansion of business.

We have introduced many rewards and recognition plans for our employees wherein an employee is awarded with Best Performer of the Month. Also, a policy for employee referral has been introduced wherein an employee is given referral bonus for referring a person to our Company. High staff turnover remains a critical challenge in this service industry, however we are striving to reduce it to the extent possible.

OUTLOOK AND CHALLENGESNow that the effects of demonetization has subsided, the industry growth potential is expected to come to its normal. There are a few geographies which are less penetrated and can be utilized for business expansion. However, few of the local / ring leaders in the communities cause a threat by influencing the customers not to repay the loans or by spreading rumors of waiver of loans.

CONCLUSIONWith the expansion of the branch network already taken place and equity infused by IIFL, the credit rating of the Company has improved and banks are willing to lend loans at lower interest rates. The platform has been laid for entering into other states for disbursal of more micro loans and reaching the needy customers across the country and we are confident of reaching new heights while satisfying our customers.



DIN: 01018821 DIN: 02216802


Place: Bangalore


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FORM NO. AOC 1Statement containing salient features of the financial statement of subsidiaries

(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014)

Name of Subsidiary Company Ayusha Dairy Private LimitedIssued and Subscribed Capital ` 10,000,000/-

Reserves ` 2,501,557

Total Assets ` 14,476,557

Total Liabilities ` 14,476,557

Investments -

Turnover -

Profit / (Loss) Before Tax ` 536,830

Provision for tax ` 150,000

Profit / (Loss) After Tax ` 386,830

Proposed Dividend -

% of Share holding 100%

Note: The Company does not have any Associate Companies and Joint Ventures.



DIN: 01018821 DIN: 02216802


Place: Bangalore

ANNEXURE - III

42


FORM NO. MR-3SECRETARIAL AUDIT REPORT

For the financial year ended 31st March 2017[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]

To,The Members,

Samasta Microfinance Limited418, 1/2A, 4th Cross, 6th Main, Wilson GardenBangalore -560027

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Samasta Microfinance Limited (herein after called the ‘Company’). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided and representation made by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the company has, during the audit period covering the financial year ended on 31st March 2017complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31st March 2017according to the provisions of:

1. The Companies Act, 2013(the Act)and the rules made there under;

2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’)and the rules made there under;

3. The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;

4. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-

a) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations,1992;

b) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,2008;

c) The Securities and Exchange Board of India (Listing Obligation and Disclosures Requirements) Regulation, 2015;

5. Directions, Guidelines and Notifications issued by the Reserve Bank of India from time to time with respect to the ‘Non-Banking Financial Company-Micro Finance Institutions’ (NBFC-MFIs)

I have also examined compliance with the applicable clauses of the following:

a) Secretarial Standards issued by The Institute of Company Secretaries of India; and

b) The Listing Agreements entered in to by the Company with Bombay Stock Exchange(s),

I further report that during the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations:

1. The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. However, the Company is under process of appointing a suitable candidate as Woman Director under the provision of Section 149 of the Companies Act, 2013.

Other statutes, Acts, laws, Rules, Regulations, Guidelines and Standards etc., as applicable to the Company are given below:

(i) Labour Laws and other incidental laws related to labour and employees appointed by the Company either on its payroll or on contractual basis as related to wages, gratuity, provident fund, ESIC, compensation etc.;


43

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(ii) Acts as prescribed under Direct Tax and Indirect Tax;(iii) Acts prescribed under prevention and control of pollution;(iv) Acts prescribed under environmental protection;(v) Land Revenue laws of respective States;(vi) Labour Welfare Act of respective States; and(vii) Local laws as applicable to various offices of the Company.

I further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

During the period under review, decisions were carried through unanimously and no dissenting views were observed, while reviewing the minutes.

I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

I further report that during the audit period the Company has undertaken following events/actions having a major bearing on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. referred to above:

1. Private Placement of Non-Convertible Debentures during the year:

Sr. No.

Issue Size Date of Allotment Nature of Security

1. 50 29/06/2016 Non-Convertible Debentures




2. The Authorised Capital of the Company was increased from ` 12,50,00,000 divided into 1,05,00,000 Equity shares of ` 10 each aggregating to ` 10,50,00,000 and 20,00,000 Preference shares of ` 10 each aggregating to ` 2,00,00,000 to ` 42,50,00,00 divided into 4,05,00,000 Equity shares of ̀ 10 each aggregating to ` 40,50,00,000 and 20,00,000 Preference shares of ` 10 each aggregating to ` 2,00,00,000 vide Extra-Ordinary General Meeting dated 22nd June, 2016. Subsequently, vide Extra-Ordinary General Meeting dated 8th March 2017, the

Authorised Capital of the Company was further increased to ` 65,00,00,000 divided into 6,30,00,000 Equity shares of ` 10 each aggregating to ` 63,00,00,000 and 20,00,000 Preference shares of ` 10 each aggregating to ` 2,00,00,000.

3. Pursuant to necessary regulatory approval, M/s India Infoline Finance Limited purchased equity shares from most of the shareholders of the Company and infused additional equity share capital. As on March 31, 2017 it holds 95.23% of the equity of the Company.

4. The Paid-up Capital of the Company was increased from ` 10,47,00,000/- to ` 11,34,46,110/- on 20th January 2017 pursuant to conversion of 10,00,000 Optionally Convertible Preference Shares OCPS into 8,74,611 Equity Shares of ` 10/- each. Subsequently, on 20th March 2017, with the additional equity infusion of ` 50 crore the Paid-up Capital of the Company was further increased to ` 61,34,46,110/- pursuant to allotment of 5,00,00,000 Equity Shares of ` 10/- each to M/s India Infoline Finance Limited on Rights Issue basis.

Lakshmeenarayan BhatPracticing Company Secretary

ACS No: 35993

CP No. 15003


Place: Bengaluru

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.

44


To,The Members,

Samasta Microfinance Limited418, 1/2A, 4th Cross, 6th Main, Wilson GardenBangalore -560027

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.

4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company.

7. We have prepared the Secretarial Audit Report on the draft Financials, therefore we are not able to comment on the Related Party Transactions, Loans and advances which we have to rely on the Audited Financials.

Lakshmeenarayan BhatPracticing Company Secretary

ACS No: 35993

CP No. 15003


Place: Bengaluru

ANNEXURE - A


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Statutory Report

Finan

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Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

To The Members Samasta Microfinance Limited

REPORT ON THE FINANCIAL STATEMENTSWe have audited the accompanying financial statements of SAMASTA MICROFINANCE LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTSThe Company’s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITORS’ RESPONSIBILITYOur responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The

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

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

OPINIONIn our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2017;

b) In the case of the Statement of Profit and Loss Account, of the profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS1. As required by the Companies (Auditor’s Report) Order, 2016

(“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the ‘Annexure-A’ statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

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

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

c) The Balance Sheet, the Statement of Profit and Loss and

46


the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on 31st March, 2017, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017, from being appointed as a director in terms of Section 164(2) of the Act.

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

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

i. The Company does not have any pending litigations which would impact its financial position.

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

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

iv. The Company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016.The company being Micro Finance Company, have collected on daily basis loan recoveries and same has been deposited into the bank thereafter and these are in accordance with the books of accounts maintained by the company.

For Gowthama & CompanyChartered Accountants

Firm No: 005917S

H V GowthamaPlace: Bangalore Partner

Date: 21.04.2017 Mem. No: 014353


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On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1 (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) According to the information and explanation explained to us, fixed assets have been physically verified by the management during the year which, in our opinion, is reasonable having regard to the size of the company and the nature of its Assets. No material discrepancies were noticed on such verification.

(c) The company does not hold any immovable properties, therefore this clause is not applicable to the company.

2 According to the information and explanation explained to us, The Company is a Non-Banking Financial Company (‘NBFC’) engaged in the business of providing loans. Therefore the provisions of this clause are not applicable to the Company.

3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has granted loans, secured or unsecured, to companies, in the register maintained under Section 189 of the Act.

a) The terms and conditions of the grant of such loans are not prejudicial to the company’s interest.

b) In the case of the loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, the borrowers have been regular in the payment of the interest as stipulated. The terms of arrangement do not stipulate any repayment schedule and the loans are repayable on demand.

c) There are no overdue amounts for more than five lakhs in respect of the loans granted to the in the register maintained under Section 189 of the Act.

4. According to the information and explanations given to us, the Company has not given loans, Investments and guarantees to which the provisions of the Section 185 and 186 of the companies Act, 2013 apply. Therefore this clause is not applicable to the company.

5. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not accepted any deposits covered under

section 73 to 76 of the Companies Act or any other relevant provisions of the Companies Act or the rules framed there under or directions issued by RBI. Therefore this clause is not applicable to Company.

6. According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under Section 148(1) of the companies act for any services rendered by the Company. Therefore this clause is not applicable to the company.

7. (a) According to the records of the company, undisputed statutory dues including Provident Fund, Employees’ State Insurance, Income-tax, Sales Tax, Wealth tax, Duty of customs, Duty of Excise, Value Added Tax and any other statutory dues with the appropriate authorities have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2017 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of Income Tax, Wealth tax, Sales tax, Service tax, duties of customs, duties of excise, Value Added Tax or Cess which have not been deposited on account of any disputes.

8. According to the information and explanations given to us and on the basis of our examination of the books of account, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

9. According to the information and explanations give to us and in our opinion, the money raised by way Private placed Debt instruments i.e. non Convertible Debenture and term loans were applied for the purpose for which those are raised.

10. According to the information and explanations given to us and based upon the audit procedures performed, we report that no fraud by the Company and no fraud on the company by its officers/employees has been noticed or reported during the year, nor have we been informed of such case by the management.

11. Managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the companies act.

ANNEXURE-A referred to in our Report of even date to the members of Samasta Microfinance Limited, on the financial statements of the company for the year ended March 31, 2017.


48


12. According to the information and explanations given to us and in our opinion, the Company is not a Nidhi Company and therefore clause is not applicable.

13. According to the Information and Explanation given to us, all the transactions with the related parties are in compliance with section 188 and 177 and where applicable the details have been disclosed in the financial statements as required by the accounting standard and Companies Act 2013.

14. According to the Information and Explanation given to us, the company has made preferential allotment of shares during the year which is in accordance with Sec 42 of Companies Act, 2013 and the amount raised have been used for the purposes for which the funds were raised.

15. According to the Information and Explanation provided to us, the company has not entered into any Non-cash transactions with Directors or persons connected with him and therefore this clause is not applicable to the company.

16. According to the Information and Explanation given to us, the company has obtained the registration under section 45-IA of the Reserve Bank of India Act, 1934.


Firm No: 005917S


Date: 21.04.2017 Mem. No: 014353

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (“THE ACT”)We have audited the internal financial controls over financial reporting of Samasta Microfinance Limited (“the Company”) as of March 31, 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLSThe Company’s management is responsible for establishing and maintaining internal financial controls based on essential components such as the control environment, the entity’s risk assessment process, control activities, Information system and communication and the monitoring of such controls. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable

financial information, as required under the Companies Act, 2013.

AUDITORS’ RESPONSIBILITYOur responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of

ANNEXURE-B to the Independent Auditor’s Report of even date on the Financial Statements of Samasta Microfinance Limited


49

Corp

orate Overview

Statutory Report

Finan

cial Statement

internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

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

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTINGA company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that:

(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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

OPINIONIn our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on essential components such as the control environment, the entity’s risk assessment process, control activities, Information system and communication and the monitoring of such controls.


Firm No: 005917S


Date: 21.04.2017 Mem. No: 014353


50


BALANCE SHEETAs at March 31, 2017

(`)

Particulars Note No.As at

March 31, 2017As at

March 31, 2016

I EQUITY AND LIABILITIES(1) Shareholder's Funds

(a) Share Capital 2 61,34,46,110 11,47,00,000

(b) Reserves and Surplus 3 3,00,86,348 2,15,98,728

64,35,32,458 13,62,98,728(2) Non-Current Liabilities

(a) Long-term borrowings 4 68,26,70,317 32,66,91,099

(b) Long-term provisions 6 2,36,07,225 1,22,58,331

70,62,77,542 33,89,49,430(3) Current Liabilities

(a) Other current liabilities 7 90,63,18,873 50,31,63,052

(b) Short-term provisions 8 14,50,000 64,52,901

90,77,68,873 50,96,15,953Total 2,25,75,78,873 98,48,64,111

II ASSETS(1) Non-current assets

(a) Fixed assets 9

(i) Tangible assets 2,13,15,419 1,00,16,410

(ii) Intangible assets 7,25,220 8,56,799

(b) Non-current investments 10 1,05,00,000 1,05,00,000

(c) Deferred tax assets (Net) 5 47,87,015 28,23,812

(d) Other non-current assets 11 54,43,47,843 30,87,97,826

58,16,75,497 33,29,94,847(2) Current assets

(a) Receivables under Financing Activities 12 1,06,73,14,077 50,23,81,859

(b) Cash and Cash equivalents 13 56,63,19,601 13,06,66,104

(c) Short-term loans and advances 14 1,65,22,487 60,24,233

(d) Other current assets 15 2,57,47,211 1,27,97,068

1,67,59,03,376 65,18,69,264Total 2,25,75,78,873 98,48,64,111Significant accounting policies and notes to the accounts 1

As per our attached report of even date

For Gowthama & Company For and on behalf of the Board of Directors

Chartered Accountants Samasta Microfinance LimitedFirm No. 005917S

H.V. Gowthama Venkatesh N. Shivaprakash D.Partner Managing Director Whole-time Director

M. No. 014353

Place: Bangalore T. Anantha Kumar K. J. SuthejaDate: 21.04.2017 Chief Financial Officer Company Secretary


51

Corp

orate Overview

Statutory Report

Finan

cial Statement

Balance Sheet | Statement of Profit and Loss

STATEMENT OF PROFIT AND LOSSFor the year ended March 31, 2017

(`)

ParticularsNote No.

Year ended March 31, 2017

Year ended March 31, 2016

(A) REVENUE FROM OPERATIONS 16 32,04,31,427 19,15,98,918

(B) OTHER INCOME 17 80,15,861 97,99,712

(C) TOTAL REVENUE (A+B) 32,84,47,288 20,13,98,630

(D) EXPENSES a) Employee benefits expenses 18 11,21,74,369 4,93,96,519

b) Finance costs 19 13,85,00,056 9,79,58,479

c) Depreciation and amrotization expenses 9 45,80,939 24,27,364

d) Administrative and Other expenses 20 5,64,40,374 3,01,48,397

e) Provision / written off for receivables under financing activity 21 1,05,17,255 25,38,626

Total Expenses (D) 32,22,12,993 18,24,69,385

(E) PROFIT FOR THE YEAR BEFORE TAX (C-D) 62,34,295 1,89,29,245

(F) TAX EXPENSES (a) Current tax 14,50,000 53,50,000

(b) Deferred tax 5 (19,63,203) (10,76,077)

(c) MAT Credit entitlement (13,42,390) -

(G) PROFIT FOR THE YEAR AFTER TAX (E-F) 80,89,888 1,46,55,322

(H) EARNINGS PER EQUITY SHARE (FACE VALUE OF `10/- EACH): (a) Basic 0.59 1.40

(b) Diluted 0.59 1.40

Significant accounting policies and notes to the accounts 1





M. No. 014353


52


CASH FLOW STATEMENTFor the year ended March 31, 2017

(`)

ParticularsYear ended 31st

March, 2017Year ended 31st

March, 2016CASH FLOW FROM OPERATING ACTIVITIESNet Profit Before Tax 62,34,295 1,89,29,245

Adjustments for:

Depreciation 45,80,939 24,27,364

Dividend on Mutual funds (69,47,850) (23,00,293)

Provisions for Standard and Non Perfoming Assets 75,58,375 10,27,402

Bad Debts Written Off 29,58,880 15,11,224

Interest on Fixed Deposits (1,30,81,047) (71,15,063)

Loss/(Profit) on sale of Fixed assets 87,965 (46,718)

Operating Profit before Working Capital Changes A 13,91,557 1,44,33,161Working Capital Changes:(Increase) / Decrease in trade and other receivables (56,78,91,098) (3,95,59,169)

(Increase) / Decrease in Short term loans and advances (1,04,98,254) (41,83,722)

(Increase) / Decrease in Other Current Assets (1,29,50,143) (55,10,782)

(Increase) / Decrease in Loans & Advances (19,08,84,377) 42,19,241

(Increase) / Decrease in Other Non- Current Assets (3,54,54,237) (14,30,62,581)

Increase / (Decrease) in Long term Liabilities 35,59,79,218 10,34,90,702

Increase / (Decrease) in long term provisions (15,79,164) 12,47,187

Increase / (Decrease) in Other current liabilities 40,31,55,821 13,82,39,912

Changes in Working Capital B (6,01,22,234) 5,48,80,788Cash generated from operations A+B (5,87,30,677) 6,93,13,949Income taxes paid (78,69,013) (34,43,790)

Net cash from operating activities (6,65,99,690) 6,58,70,159CASH FLOW FROM INVESTING ACTIVITIESSale of Fixed Assets 5,90,500 3,00,000

Dividend from Mutual Funds 69,47,850 23,00,293

Purchase of Fixed Assets (1,64,26,835) (55,07,930)

Interest on Fixed Deposits 1,30,81,047 71,15,063

Net Cash used in Investing activities 41,92,562 42,07,426CASH FLOW FROM FINANCING ACTIVITIESProceeds from issue of Equity Share Capital 50,00,00,000 -

Redemption of Preference Share Capital - -

Dividends paid (including DDT) (19,39,376) (59,908)

Net cash used in financing activities 49,80,60,624 (59,908)Net increase in cash and cash equivalents 43,56,53,497 7,00,17,677Cash and cash equivalents as at 01.04.2016 13,06,66,104 6,06,48,427Cash and cash equivalents as at 31.03.2017 56,63,19,601 13,06,66,104

The above Cash Flow Statement has been prepared under the “Indirect Method” as set out in Accounting Standard -3 on Cash Flow Statement.





M. No. 014353


53


NOTESforming part of Standalone Financial Statement for the year ended March 31, 2017

Corp

orate Overview

Statutory Report

Finan

cial Statement

Cash Flow Statement | Notes

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES & NOTES FORMING PART OF THE ACCOUNTS

1. Basis of Preparation: The financial statements of the Company have been prepared

in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standard specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (“the 2013 Act”)/Companies Act 1956, (“the 1956 Act”), as applicable. The financial statements have been prepared on accrual basis and the directions issued by the Reserve Bank of India (RBI) to the extent applicable to the Company.

The Company follows the prudential norms for Income recognition, asset classification and provisioning as prescribed by the RBI for Non-deposit taking Non-Banking Financial Companies (NBFC-MFI).

2. Use of Accounting Estimates: The presentation of financial statements in conformity with

Indian Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Although such estimates are made on a reasonable and prudent basis taking into account all available information, actual results could differ from those estimates.

3. Cash flow statement: The Cash Flow are reported using the indirect method,

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

4. Provisions and contingent liabilities: A provision is recognized when the Company has a present

legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

The Company does not recognize a contingent liability but discloses its existence in the financial statements.

5. Income Taxes and Deferred Taxes: Current tax is the amount of tax payable on the taxable income

for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only if there is virtual certainty that they will be realized and are reviewed every year. The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantially enacted tax rates.

6. Fixed Assets and Depreciation & Amortization: Depreciable amount for assets is the cost of an asset, or other

amount substituted for cost, less its estimated residual value.

Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013, except in respect of the following category of assets, in whose case the life of the asset has been assessed based on the technical assessment, which takes into account the nature of the asset, its estimated usage, past history or replacement, operating conditions and future technological changes, following is the categories of assets:

Computers - 3 YearsIntangible assets are amortized over their estimated useful life as follows:Software - 3 YearsServers & Networks - 6 Years

Individual assets costing less than ` 5,000 each are depreciate fully in the year of purchase.

54



7. Investments: Investments which are long term in nature are stated at cost

with provisions where necessary for diminution, other than temporary, in the value of Investment.

8. Classification & Provisions of Loan Portfolio: Loans are classified and provided as per norms required in

Non-Banking Financial (Non-Deposit Accepting) Companies Prudential Norms (Reserve Bank) Directions, 2007, as amended from time to time.

The Company has got classified as NBFC-MFI and accordingly has provided its provisioning norms for loan portfolio vide RBI circular dated December 02, 2011 as amended vide circular dated March 20, 2012. According to which the provision will be higher of:

a) 1% of the outstanding loan portfolio or

b) 50% of the aggregate loan installments which are overdue for more than 90 days and less than 180 days and 100% of the aggregate loan installments which are overdue for 180 days or more.

9. Trade receivables under Financing Activity: Trade receivables under financing activity include Income

Generating Loan, Dairy Cow Loan / Cattle Loan, Water Purifier Loan, Solar Products Loan and Individual Loan. Loans are classified into ‘Performing and Non- Performing assets in terms of the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 and NBFC-MFI Directions (as applicable) issued by the Reserve Bank of India as amended from time to time.

10. REVENUE RECOGNITION: a) Revenue from Interest on loans financed by the

company is recognized on accrual basis, considering the directions issued by the Reserve Bank of India from time to time in terms of the Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

b) Interest income on Fixed Deposits with Banks is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

c) Processing fee is recognized as and when collected at the time of loan disbursement.

d) Dividend income from investments in mutual fund is recognized when the right to receive is established.

e) Facilitation fee is recognized on accrual basis according to the terms of agreement.

f ) Profit/Premium arising at the time of securitization of loan portfolio is amortized over the life of the underlying loan/portfolio/securities and loss arising thereon is accounted immediately.

g) All other income is recognized on an accrual basis, when there is no uncertainty in the ultimate realization / collection.

11. Borrowing Costs: Borrowing costs attributable to qualifying assets (assets

which require substantial period of time to get ready for their intended use) are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

12. Earnings per Share: Basic and diluted earnings per share are computed in

accordance with Accounting Standard (AS)-20 – Earnings per share. In determining the Earning per Share the Company considers the Net Profit after Tax. The number of Shares used in computing Basic Earning per share is number of share outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

13. Employee Benefits: a) Short Term Employee Benefits: All employee benefits falling due wholly within twelve

months of rendering the services are classified as short term employee benefits, which include benefits like Salary, Allowances and incentives, and are recognized as expenses in the period in which the employee renders the related service.

b) Post- employment Benefits: Defined Contribution Plans:

The Company’s contributions to provident fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined Benefit Plans: For defined benefit plans in the form of gratuity, which is

not funded, the cost of providing benefits is determined

55

Annual Report 2016-17 Notes


Corp

orate Overview

Statutory Report

Finan

cial Statement

using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortized on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost.

14. General: Any other accounting policy not specifically referred to are consistent with generally accepted accounting principles.

NOTE 2 - SHARE CAPITAL(`)

Particulars As at

31st March, 2017 As at

31st March, 2016Authorised:63,000,000 (Previous year 10,500,000 Equity Shares of ` 10/- each) Equity Shares of ` 10/- each 63,00,00,000 10,50,00,000

2,000,000 (Previous year 2,000,000 Preference Shares of ` 10/- each) Preference Shares of ` 10/- each 2,00,00,000 2,00,00,000

65,00,00,000 12,50,00,000Issued:61,344,611 (Previous year 10,470,000 Equity Shares of ` 10/- each) Equity Shares of ` 10/- each 61,34,46,110 10,47,00,000

NIL (Previous year 1,000,000 9% Optionally Convertible Preference Shares of ` 10/- each) 9% Optionally

Convertible Preference Shares of ` 10/- each

- 1,00,00,000

61,34,46,110 11,47,00,000Subscribed and Paid up:61,344,611 (Previous year 10,470,000 Equity Shares of ` 10/- each) Equity Shares of ` 10/- each 61,34,46,110 10,47,00,000

NIL (Previous year 1,000,000 9% Optionally Convertible Preference Shares of ` 10/- each) 9% Optionally

Convertible Preference Shares of ` 10/- each

- 1,00,00,000

Total 61,34,46,110 11,47,00,000

i) Reconciliation of the number of shares outstanding at the beginning and at the end of the year:(`)

As at 31st March, 2017

As at 31st March, 2016

Number of shares Number of shares Equity Shares: Number of shares at the beginning of the year 1,04,70,000 1,04,70,000

Add: Equity shares issued during the year 5,08,74,611 -

Number of shares at the end of the year 6,13,44,611 1,04,70,000 Preference Shares: Number of shares at the beginning of the year 10,00,000 10,00,000

Add: Preference shares issued during the year - -

Less: Preference shares converted during the year 10,00,000 -

Number of shares at the end of the year - 10,00,000

56



ii) Number of shares held by each shareholder holding more than 5% shares in the company are as follows: Class of shares / Name of the shareholder

(`)

ParticularsAs at

31st March, 2017As at

31st March, 2016Number of shares Number of shares

Equity Shares:India Infoline Finance Limited 5,84,17,631 -

R.C. Shekar - 17,65,020

V.A. Narayanaswamy - 10,48,800

G.J. Krishnaprasad - 5,52,000

Venkatesh N. - 13,35,840

Kalpathi Investments Pvt Ltd - 16,56,000

B.H. Krishnamurthy - 5,52,000

Sanjay Shenoy - 6,83,100

Small Industries Development Bank of India - 15,00,000

Total 5,84,17,631 90,92,760Preference Shares:Small Industries Development Bank of India - 10,00,000

Total - 10,00,000

iii) Terms / rights attached to Equity Shares: The Company has Equity Shares having par value of ` 10/- per share. Each holder of Equity Shares is entitled to one vote per share.

Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.

iv) Terms / rights attached to Preference Shares: a) Rights/preferences attached to Preference Shares The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the ensuing

Annual General Meeting. Each holder of Preference Share is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to the said shares. In the event of liquidation of the Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital and premium thereon but shall not be entitled to any surplus arising thereto.

b) Terms of redemption of Preference Shares(`)

ParticularsAs at 31st March,

2017As at 31st March,

2016Number of shares Number of shares

i) 9% Optionally Convertible Preference Shares (OCPS) of ` 10/- each. The Company will redeem

each of the OCPS (face value of ` 10/-) which is not converted into equity shares at par. The

Company will, before such redemption, pay all outstanding dividends on such OCPS to SIDBI. The

redemption will be made by the Company as indicated below:

- 10,00,000

1) 50% of the outstanding OCPS at the end of 5 years

2) Remaining 50% outstanding OCPS at the end of 6 years commencing from the first date of

disbursement/investment/subscription of OCPS by SIDBI in the Company

57



Corp

orate Overview

Statutory Report

Finan

cial Statement

NOTE 3 - RESERVES AND SURPLUS (`)

Particulars As at

31st March, 2017 As at

31st March, 2016a) Securities Premium Account Opening Balance - -

Add: Premium on shares issued during the year 12,53,890 -

Less: Utilised towards issue of Bonus Shares - -

Closing Balance 12,53,890 -b) Other Reserve i) Statutory Reserve* Opening Balance 61,32,977 31,82,977

Add: Additions during the year 16,25,000 29,50,000

Closing Balance 77,57,977 61,32,977c) Surplus Opening Balance 1,54,65,751 48,43,647

Add: Profit for the year 80,89,888 1,46,55,322

Less: Paid / Proposed Dividend on Preference Shareholders 7,29,863 9,00,000

Less: Dividend Distribution Tax 1,26,295 1,83,218

Less: Transfer to Statutory Reserve* 16,25,000 29,50,000

Closing Balance 2,10,74,481 1,54,65,751Total 3,00,86,348 2,15,98,728

*As required by Section 45-IC of Reserve Bank of India Act, 1934.

NOTE 4 - LONG-TERM BORROWINGS(`)

ParticularsAs at


31st March, 2016a) Term Loans - Secured 1) From Banks (Refer Note 4.1) 24,76,56,453 19,40,04,064

2) From Other Parties (Refer Note 4.1) 24,61,97,121 8,51,57,078

b) Non-Convertible Debentures - Secured (Refer Note 4.1) 13,75,00,800 4,58,33,400

c) Non-Convertible Debentures - Unsecured (Refer Note 4.1) - Tier II Capital 5,00,00,000 -

d) Cash Credit - Secured 1) From Banks (Refer Note 4.1) - -

e) Vehicle Loans - Secured 1) From Banks (Refer Note 4.1) 6,76,627 8,74,719

2) From Other Parties (Refer Note 4.1) 6,39,316 8,21,838

Total 68,26,70,317 32,66,91,099

58



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othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,3

3,44

,000

2,8

2,55

,787

5,0

0,47

3 2

0,00

,500

Cana

ra B

ank

Rate

of I

nter

est -

Bas

e ra

te +

3.0

0%, l

oan

repa

yabl

e in

12

quar

terly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,0

0,00

,000

50,

00,0

00 1

,00,

00,0

00 1

,50,

00,0

00

Corp

orat

ion

Bank

Rate

of I

nter

est -

Bas

e ra

te +

2.1

0%, l

oan

repa

yabl

e in

12

quar

terly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts

and

pers

onal

guar

ante

e of

Mr.

Venk

ates

h N

., D

irect

or.

- -

42,

05,0

02 -

Indi

an B

ank

Rate

of I

nter

est -

Bas

e ra

te +

3.8

0%, l

oan

repa

yabl

e in

36

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

58,

19,8

82 -

1,1

5,39

,154

59,

70,2

42

Indi

an B

ank

Rate

of I

nter

est -

Bas

e ra

te +

3.8

0%, l

oan

repa

yabl

e in

36

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

99,

99,9

96 1

,03,

80,8

72 9

2,11

,381

2,0

1,02

,769

Kave

ri G

ram

eena

Ban

kRa

te o

f Int

eres

t - 1

4.25

%, l

oan

repa

yabl

e

in 3

6 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,2

6,46

,933

- 1

,66,

66,6

80 1

,28,

53,9

76

Kave

ri G

ram

eena

Ban

kRa

te o

f Int

eres

t - 1

3.75

%, l

oan

repa

yabl

e

in 3

6 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,6

6,66

,680

1,7

0,42

,654

16,

94,9

33 3

3,33

,320

Laks

hmi V

ilas

Bank

Rate

of I

nter

est -

Bas

e ra

te +

2.2

5%, l

oan

repa

yabl

e in

36

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral

1,6

3,96

,547

2,0

2,73

,934

1,3

3,22

,555

3,6

6,77

,445

Laks

hmi V

ilas

Bank

Rate

of I

nter

est -

12.

55%

loan

repa

yabl

e in

33 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral

66,

66,6

72 1

,27,

77,7

72 -

-

Palla

van

Gra

ma

Bank

Rate

of I

nter

est -

14.

00%

, loa

n re

paya

ble

in 3

3 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

34,

48,6

63 -

1,1

4,58

,816

35,

98,1

34

Palla

van

Gra

ma

Bank

Rate

of I

nter

est -

14.

00%

, loa

n re

paya

ble

in 3

3 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,1

2,59

,481

1,2

4,13

,177

9,1

3,79

3 2

0,90

,910

Palla

van

Gra

ma

Bank

Rate

of I

nter

est -

14.

00%

, loa

n re

paya

ble

in 3

3 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

33,

67,4

99 6

4,76

,080

- -

Ratn

akar

Ban

k Lt

d.Ra

te o

f Int

eres

t - 1

3.50

% lo

an re

paya

ble

in

24 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

2,2

8,57

,143

1,1

4,28

,571

- -

Sout

h In

dian

Ban

kRa

te o

f Int

eres

t - B

ase

rate

+ 3

.70%

, loa

n

repa

yabl

e in

33

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral

and

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., M

r.

Shiv

apra

kash

D.,

& M

r. R.

C. S

heka

r Dire

ctor

.

36,

36,0

00 3

3,34

,000

30,

30,0

00 6

9,70

,000

Sout

h In

dian

Ban

kRa

te o

f Int

eres

t - B

ase

rate

+ 3

.70%

, loa

n

repa

yabl

e in

33

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral

and

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., M

r.

Shiv

apra

kash

D.,

& M

r. R.

C. S

heka

r Dire

ctor

.

36,

36,0

00 3

3,34

,000

30,

30,0

00 6

9,70

,000

59



Corp

orate Overview

Statutory Report

Finan

cial Statement

(`)

Nam

e of

the

Bank

Term

s of

repa

ymen

tSe

curit

y O

ffere

dA

s at

31s

t Mar

ch, 2

017

As

at 3

1st M

arch

, 201

6Cu

rren

t Li

abili

ties

Non

-cur

rent

Li

abili

ties

Curr

ent

Liab

ilitie

sN

on-c

urre

nt

Liab

ilitie

sSo

uth

Indi

an B

ank

Rate

of I

nter

est -

13.

30%

loan

repa

yabl

e in

35 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

83,

38,0

00 1

,66,

62,0

00 -

-

Sout

h In

dian

Ban

kRa

te o

f Int

eres

t - 1

3.30

% lo

an re

paya

ble

in

35 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

83,

38,0

00 1

,66,

62,0

00 -

-

Stat

e Ba

nk o

f Ind

iaRa

te o

f Int

eres

t - 1

2.25

%lo

an re

paya

ble

in

36 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

4,0

0,00

,000

5,4

2,61

,539

- -

Stat

e Ba

nk o

f Mys

ore

Rate

of I

nter

est -

Bas

e ra

te +

2.2

5%, l

oan

repa

yabl

e in

33

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,0

9,09

,200

23,

21,6

89 1

,09,

09,2

00 1

,32,

39,3

89

Stat

e Ba

nk o

f Pat

iala

Rate

of I

nter

est -

Bas

e ra

te +

3.5

0%, l

oan

repa

yabl

e in

34

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

36,

83,7

51 -

1,0

9,09

,200

36,

27,8

51

Stat

e Ba

nk o

f Tra

vanc

ore

Rate

of I

nter

est -

Bas

e ra

te +

4.5

0%, l

oan

repa

yabl

e in

33

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,8

4,66

,503

- 1

,81,

80,0

00 1

,86,

61,1

18

UCO

Ban

kRa

te o

f Int

eres

t - B

ase

rate

+ 4

.50%

, loa

n

repa

yabl

e in

36

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral

and

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., M

r.

Shiv

apra

kash

D. a

nd M

r. R.

C. S

heka

r, D

irect

or.

- -

8,4

7,02

9 -

UCO

Ban

kRa

te o

f Int

eres

t - B

ase

rate

+ 3

.00%

, loa

n

repa

yabl

e in

45

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

72,

86,6

85 -

80,

04,0

00 7

2,86

,685

UCO

Ban

kRa

te o

f Int

eres

t - B

ase

rate

+ 3

.00%

, loa

n

repa

yabl

e in

45

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

80,

00,0

04 1

,39,

95,9

96 8

0,04

,000

2,1

9,96

,000

UCO

Ban

kRa

te o

f Int

eres

t - 1

1.75

% lo

an re

paya

ble

in

48 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

1,0

0,00

,000

- -

-

YES

Bank

Ltd

.Ra

te o

f Int

eres

t - 1

2.25

% lo

an re

paya

ble

in

48 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,0

0,00

,000

1,0

1,61

,644

- -

TOTA

L 2

7,56

,87,

639

24,

76,5

6,45

3 1

7,04

,24,

241

19,

40,0

4,06

4

60



Term

Loa

n fr

om O

ther

Par

ties

- Se

cure

d(`

)

Nam

e of

the

FI /

NBF

CTe

rms

of re

paym

ent

Secu

rity

Offe

red

As

at 3

1st M

arch

, 201

7A

s at

31s

t Mar

ch, 2

016

Curr

ent

Liab

iliti

esN

on-c

urre

nt

Liab

iliti

esCu

rren

t Li

abili

ties

Non

-cur

rent

Li

abili

ties

Agr

i Bus

ines

s Fi

nanc

e

Ltd.

Rate

of I

nter

est -

13%

loan

repa

yabl

e in

36 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,6

6,80

,000

3,3

3,20

,000

- -

Ana

nya

Fina

nce

for

Incl

usiv

e G

row

th P

rivat

e

Lim

ited

Rate

of I

nter

est -

16.

00%

, loa

n re

paya

ble

in 2

4 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd 2

4

no. a

dvan

ce p

ost-

date

d ch

eque

s.

- -

33,

33,3

28 -

Ana

nya

Fina

nce

for

Incl

usiv

e G

row

th P

rivat

e

Lim

ited

Rate

of I

nter

est -

15.

75%

, loa

n re

paya

ble

in 1

8 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd 1

8

no. a

dvan

ce p

ost-

date

d ch

eque

s.

28,

12,5

00 -

37,

50,0

00 2

8,12

,500

Edel

wei

ss H

ousi

ng

Fina

nce

Lim

ited

Rate

of I

nter

est -

16.

00%

, loa

n re

paya

ble

in 1

2 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

- -

88,

94,7

96 -

Fedb

ank

Fina

ncia

l

Serv

ices

Lim

ited

Rate

of I

nter

est -

12%

loan

repa

yabl

e in

36 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

1,3

5,00

,000

3,6

5,00

,000

- -

IFM

R Ca

pita

l Fin

ance

Priv

ate

Lim

ited

Rate

of I

nter

est -

15.

75%

, loa

n re

paya

ble

in 2

4 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

2,7

6,64

,709

- 3

,63,

92,6

71 2

,76,

64,7

09

IFM

R Ca

pita

l Fin

ance

Priv

ate

Lim

ited

Rate

of I

nter

est -

15.

75%

, loa

n re

paya

ble

in 2

4 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

2,7

6,88

,963

- 3

,63,

65,2

70 2

,76,

88,9

63

IFM

R Ca

pita

l Fin

ance

Priv

ate

Lim

ited

Rate

of I

nter

est -

14.

95%

loan

repa

yabl

e in

24 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

2,4

0,25

,357

2,0

5,04

,788

- -

IFM

R Ca

pita

l Fin

ance

Priv

ate

Lim

ited

Rate

of I

nter

est -

14.

95%

loan

repa

yabl

e in

24 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

2,4

0,25

,357

2,0

5,04

,788

- -

Maa

nave

eya

Dev

elop

men

t & F

inan

ce

Priv

ate

Lim

ited

Rate

of I

nter

est -

15.

00%

, loa

n re

paya

ble

in 1

2 qu

ater

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

pers

onal

guar

ante

e of

Mr.

Venk

ates

h N

. and

Mr.

R.C

. She

kar,

Dire

ctor

.

- -

1,1

6,60

,000

-

Maa

nave

eya

Dev

elop

men

t & F

inan

ce

Priv

ate

Lim

ited

Rate

of I

nter

est -

14.

50%

, loa

n re

paya

ble

in 2

4 in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

4,0

0,08

,000

1,9

9,88

,000

- -

MA

S Fi

nanc

ial S

ervi

ces

Lim

ited

Rate

of I

nter

est -

MA

S PL

R +

1.0

0%, l

oan

repa

yabl

e in

18

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

post

-dat

ed c

hequ

es.

- -

1,6

6,66

,664

-

Relia

nce

Capi

tal L

td.

Rate

of I

nter

est -

15.

50%

, loa

n re

paya

ble

in 1

2 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

- -

2,1

7,72

,693

-

Relia

nce

Capi

tal L

td.

Rate

of I

nter

est -

15.

00%

, loa

n re

paya

ble

in 1

5 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

1,0

7,58

,883

- 3

,92,

41,1

17 1

,07,

58,8

83

Relia

nce

Capi

tal L

td.

Rate

of I

nter

est -

13%

, loa

n re

paya

ble

in

24 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

1,4

2,56

,994

0 -

-

Relia

nce

Capi

tal L

td.

Rate

of I

nter

est -

13%

, loa

n re

paya

ble

in

24 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

4,7

3,73

,373

4,8

2,69

,667

- -

61



Corp

orate Overview

Statutory Report

Finan

cial Statement

(`)

Nam

e of

the

FI /

NBF

CTe

rms

of re

paym

ent

Secu

rity

Offe

red

As

at 3

1st M

arch

, 201

7A

s at

31s

t Mar

ch, 2

016

Curr

ent

Liab

iliti

esN

on-c

urre

nt

Liab

iliti

esCu

rren

t Li

abili

ties

Non

-cur

rent

Li

abili

ties

Relia

nce

Capi

tal L

td.

Rate

of I

nter

est -

13%

, loa

n re

paya

ble

in

24 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

4,6

7,71

,971

5,3

2,28

,029

- -

Relia

nce

Hom

e Fi

nanc

e

Ltd.

Rate

of I

nter

est -

15.

50%

, loa

n re

paya

ble

in 1

2 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts

and

cash

col

late

ral.

- -

44,

67,0

20 -

Relig

are

Finv

est L

imite

dRa

te o

f Int

eres

t - 1

5.75

%, l

oan

repa

yabl

e

in 2

6 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

1,6

2,32

,023

- 2

,46,

00,7

94 1

,62,

32,0

23

Relig

are

Finv

est L

imite

dRa

te o

f Int

eres

t - 1

4.50

%, l

oan

repa

yabl

e

in 2

4 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

2,4

9,35

,233

1,3

8,81

,848

- -

Smal

l Ind

ustr

ies

Dev

elop

men

t Ban

k of

Indi

a

Rate

of I

nter

est -

14.

00%

, loa

n re

paya

ble

in 3

3 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

boo

k de

bts,

cash

col

late

ral a

nd

pers

onal

gua

rant

ee o

f Mr.

Venk

ates

h N

., D

irect

or.

- -

1,6

3,63

,650

-

TOTA

L 3

3,67

,33,

363

24,

61,9

7,12

1 2

2,35

,08,

003

8,5

1,57

,078

Non

-Con

vert

ible

Deb

entu

res

- Sec

ured

(`)

Nam

e of

Deb

entu

re

Hol

der

Term

s of

repa

ymen

tSe

curit

y O

ffere

dA

s at

31s

t Mar

ch, 2

017

As

at 3

1st M

arch

, 201

6Cu

rren

t Li

abili

ties

Non

-cur

rent

Li

abili

ties

Curr

ent

Liab

ilitie

sN

on-c

urre

nt

Liab

ilitie

sH

indu

ja L

eyla

nd F

inan

ce

Lim

ited

Rate

of I

nter

est -

12.

78%

p.a

. cal

cula

ted

on a

XIR

R ba

sis,

prin

cipa

l rep

ayab

le in

24

mon

thly

inst

allm

ents

.

Hyp

othe

catio

n of

Boo

k D

ebts

4,5

8,33

,400

- 5

,00,

00,0

00 4

,58,

33,4

00

Hin

duja

Ley

land

Fin

ance

Lim

ited

Rate

of I

nter

est -

12.

78%

loan

repa

yabl

e in

24 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

Boo

k D

ebts

4,9

9,99

,200

1,2

5,00

,800

- -

IFM

R Fl

mpa

ct L

ong

Term

Mul

ti A

sset

Cla

ss-

Seni

or D

eb

Rate

of I

nter

est -

16.

90%

loan

repa

yabl

e in

72 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

Boo

k D

ebts

- 5

,00,

00,0

00 -

-

Mah

indr

a &

Mah

indr

a

Fina

ncia

l Ser

vice

s Lt

d

Rate

of I

nter

est -

11.

40%

loan

repa

yabl

e in

24 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

Boo

k D

ebts

7,5

0,00

,000

7,5

0,00

,000

- -

TOTA

L 1

7,08

,32,

600

13,

75,0

0,80

0 5

,00,

00,0

00 4

,58,

33,4

00

62



Cash

Cre

dit -

Sec

ured

(`)

Nam

e of

the

Bank

Term

s of

repa

ymen

tSe

curit

y O

ffere

dA

s at

31s

t Mar

ch, 2

017

As

at 3

1st M

arch

, 201

6Cu

rren

t Li

abili

ties

Non

-cur

rent

Li

abili

ties

Curr

ent

Liab

ilitie

sN

on-c

urre

nt

Liab

ilitie

sRa

tnak

ar B

ank

Ltd.

Rate

of I

nter

est -

13.

75%

loan

repa

yabl

e

on d

eman

d - T

enor

-12

Mon

ths

Hyp

othe

catio

n of

Boo

k D

ebts

3,5

86 -

- -

TOTA

L 3

,586

- -

-

Non

-Con

vert

ible

Deb

entu

res

- Uns

ecur

ed(`

)

Nam

e of

Deb

entu

re

Hol

der

Term

s of

repa

ymen

tSe

curit

y O

ffere

d

As

at 3

1st M

arch

, 201

7A

s at

31s

t Mar

ch, 2

016

Curr

ent

Liab

iliti

es `

Non

-cur

rent

Li

abili

ties `

Curr

ent

Liab

ilitie

s `

Non

-cur

rent

Li

abili

ties `

IFM

R Fl

mpa

ct L

ong

Term

Mul

ti A

sset

Cla

ss-

Sub

Deb

t

Rate

of I

nter

est -

15.

25%

loan

repa

yabl

e in

72 m

onth

ly in

stal

lmen

ts.

No

secu

rity

offer

ed -

5,0

0,00

,000

- -

TOTA

L -

5,0

0,00

,000

- -

Veh

icle

Loa

n fr

om B

anks

- Se

cure

d(`

)

Nam

e of

the

Bank

Term

s of

repa

ymen

tSe

curit

y O

ffere

dA

s at

31s

t Mar

ch, 2

017

As

at 3

1st M

arch

, 201

6Cu

rren

t Li

abili

ties

Non

-cur

rent

Li

abili

ties

Curr

ent

Liab

ilitie

sN

on-c

urre

nt

Liab

ilitie

sA

xis

Bank

Rate

of I

nter

est -

10.

75%

, loa

n re

paya

ble

in 6

0 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

Car

- -

1,1

0,88

0 -

HD

FC B

ank

Rate

of I

nter

est -

9.6

5%, l

oan

repa

yabl

e in

60 m

onth

ly in

stal

lmen

ts.

Hyp

othe

catio

n of

Car

1,9

8,09

3 6

,76,

627

1,7

9,93

7 8

,74,

719

TOTA

L 1

,98,

093

6,7

6,62

7 2

,90,

817

8,7

4,71

9

Vehi

cle

Loan

from

Oth

er P

arti

es -

Secu

red

(`)

Nam

e of

the

FI /

NBF

CTe

rms

of re

paym

ent

Secu

rity

Offe

red

As

at 3

1st M

arch

, 201

7A

s at

31s

t Mar

ch, 2

016

Curr

ent

Liab

iliti

esN

on-c

urre

nt

Liab

iliti

esCu

rren

t Li

abili

ties

Non

-cur

rent

Li

abili

ties

Kota

k M

ahin

dra

Prim

e

Ltd

Loan

repa

yabl

e in

36

mon

thly

inst

allm

ents

(Mon

thy

EMI).

Hyp

othe

catio

n of

Car

- -

72,

347

-

Kota

k M

ahin

dra

Prim

e

Ltd

Loan

repa

yabl

e in

60

mon

thly

inst

allm

ents

(Mon

thy

EMI).

Hyp

othe

catio

n of

Car

1,8

2,52

2 6

,39,

316

1,6

6,45

7 8

,21,

838

TOTA

L 1

,82,

522

6,3

9,31

6 2

,38,

804

8,2

1,83

8

63



Corp

orate Overview

Statutory Report

Finan

cial Statement

NOTE 5 - DEFERRED TAX(`)

Particulars AS PER BOOKS AS PER IT DIFFERENCETAX @

33.063% 1) Deferred tax liability Fixed asset 2,20,40,639 1,97,76,739 22,63,900 (7,48,513)

2) Deferred tax asset Provision for Gratuity 15,70,357 - 15,70,357 5,19,207

Provision for Bonus 8,07,009 - 8,07,009 2,66,821

Provision for Loan portfolio 1,43,65,000 - 1,43,65,000 47,49,500

47,87,015Deferred Tax Liability as on 31.03.2017 7,48,513

Opening Balance of Deferred Tax Liability 4,67,988

Provision made in Profit & Loss Account 2,80,525Deferred Tax Asset as on 31.03.2017 55,35,528

Opening Balance of Deferred Tax Asset 32,91,800

Provision made in Profit & Loss Account 22,43,728Total Provision made in Profit & Loss Account (19,63,203)Deferred Tax Asset as on 31.03.2017 (Net) (47,87,015)

NOTE 6 - LONG - TERM PROVISIONS(`)

ParticularsAs at


31st March, 2016a) Provision for Employee Benefits: i) Provision for Gratuity 15,70,357 31,49,521

b) Other Provisions: i) Provision for Taxation 76,21,868 22,52,185

ii) Provision for Loan portfolio 1,43,65,000 68,06,625

iii) Provision for CSR activities

Opening Balance 50,000 50,000

Add : Provision during the year 50,000 50,000

Less: Utilised during the year 50,000 50,000

Closing Balance 50,000 50,000Total 2,36,07,225 1,22,58,331

NOTE 7 - OTHER CURRENT LIABILITIES(`)

ParticularsAs at


31st March, 2016a) Current maturities of long-term debt 78,36,37,803 44,44,61,865

b) Interest accrued but not due on borrowings 60,58,172 25,60,190

c) Other payables i) Statutory remittances 32,21,154 24,92,372

ii) Other liabilities 9,15,76,984 4,79,37,443

iii) Unamortised gain on securitisation 1,05,88,815 54,70,451

iv) Payable towards securitisation / assignments 1,12,35,945 2,40,731

Total 90,63,18,873 50,31,63,052

64



NO

TE 8

- SH

ORT

-TER

M P

ROV

ISIO

NS

(`)

Part

icul

ars

As

at

31st

Mar

ch, 2

017

As

at

31st

Mar

ch, 2

016

a)

Oth

ers

i)

Tax

prov

isio

n 1

4,50

,000

53,

69,6

83

ii)

Pr

opos

ed D

ivid

end

on P

refe

renc

e Sh

ares

- 9

,00,

000

iii

) D

ivid

end

Dis

trib

utio

n Ta

x on

Pre

fere

nce

Shar

es -

1,8

3,21

8

Tota

l 1

4,50

,000

64,

52,9

01

NO

TE 9

- FI

XED

ASS

ETS

(`)

Fixe

d A

sset

sU

sefu

l Li

fe in

Ye

ars

Gro

ss B

lock

Dep

reci

atio

n / A

mor

tisa

tion

Net

Blo

ckBa

lanc

e as

at

1st

Apr

il,

2016

Add

ition

s du

ring

the

year

Del

etio

ns

duri

ng th

e ye

ar

Bala

nce

as a

t 31s

t M

arch

, 201

7

Bala

nce

as

at 1

st A

pril,

20

16

Dep

reci

atio

n /

Am

ortis

atio

n fo

r the

per

iod

Dep

reci

atio

n on

sal

e of

A

sset

Bala

nce

as a

t 31s

t M

arch

, 201

7

Bala

nce

as a

t 31s

t M

arch

, 201

7

Bala

nce

as a

t 31s

t M

arch

, 201

6A

Tan

gibl

e A

sset

s F

urnt

iure

& F

ixtu

res

10 4

5,45

,675

39,

98,8

60 -

85,

44,5

35 2

0,94

,070

9,3

6,78

5 -

30,

30,8

55 5

5,13

,680

24,

51,6

05

Offi

ce E

quip

men

t5

31,

86,6

39 4

4,26

,767

20,

500

75,

92,9

05 1

7,64

,046

7,0

0,84

6 -

24,

64,8

92 5

1,28

,013

14,

22,5

93

Com

pute

rs3

42,

59,1

27 7

7,65

,384

- 1

,20,

24,5

11 2

6,74

,010

16,

16,1

98 -

42,

90,2

08 7

7,34

,303

15,

85,1

17

Veh

icle

s8

& 10

61,

80,5

77 -

16,

74,5

63 4

5,06

,014

16,

23,4

83 9

,59,

706

10,

16,5

97 1

5,66

,592

29,

39,4

22 4

5,57

,094

Tot

al (A

) 1

,81,

72,0

18 1

,61,

91,0

11 1

6,95

,063

3,2

6,67

,965

81,

55,6

09 4

2,13

,535

10,

16,5

97 1

,13,

52,5

47 2

,13,

15,4

19 1

,00,

16,4

10 P

revi

ous Y

ear

1,3

3,04

,399

53,

49,7

67 4

,82,

148

1,8

1,72

,018

64,

10,7

94 1

9,73

,681

2,2

8,86

6 8

1,55

,609

1,0

0,16

,410

68,

93,6

06B

Inta

ngib

le A

sset

s C

ompu

ter S

oftw

ares

3 &

6 5

2,27

,211

2,3

5,82

4 -

54,

63,0

36 4

3,70

,412

3,6

7,40

4 -

47,

37,8

16 7

,25,

220

8,5

6,79

9

Tot

al (B

) 5

2,27

,211

2,3

5,82

4 -

54,

63,0

36 4

3,70

,412

3,6

7,40

4 -

47,

37,8

16 7

,25,

220

8,5

6,79

9 P

revi

ous Y

ear

50,

69,0

48 1

,58,

163

- 5

2,27

,211

39,

16,7

29 4

,53,

683

- 4

3,70

,412

8,5

6,79

9 1

1,52

,319

Tot

al (A

+B)

2,3

3,99

,229

1,6

4,26

,835

16,

95,0

63 3

,81,

31,0

01 1

,25,

26,0

21 4

5,80

,939

10,

16,5

97 1

,60,

90,3

63 2

,20,

40,6

39 1

,08,

73,2

09 P

revi

ous Y

ear

1,8

3,73

,447

55,

07,9

30 4

,82,

148

2,3

3,99

,229

1,0

3,27

,523

24,

27,3

64 2

,28,

866

1,2

5,26

,021

1,0

8,73

,209

80,

45,9

25

65



Corp

orate Overview

Statutory Report

Finan

cial Statement

NOTE 10 - NON-CURRENT INVESTMENTS(`)

ParticularsAs at


31st March, 2016a) Trade - Unquoted Investments, at costi) Investments in Equity Instruments 1) Alpha Micro Finance Consultants Pvt. Ltd., 50,000 Equity shares of ` 10/- each fully paid up.

(Previous year 50,000 Equity shares of ` 10/- per share)

5,00,000 5,00,000

2) Ayusha Dairy Private Limited (Subsidiary), 1,000,000 Equity shares of ` 10/- each fully paid up.

(Previous year 1,000,000 Equity shares of ` 10/- per share)

1,00,00,000 1,00,00,000

Total 1,05,00,000 1,05,00,000Aggregate amount of unquoted investments 1,05,00,000 1,05,00,000

NOTE 11 - OTHER NON-CURRENT ASSETS(`)

ParticularsAs at


31st March, 2016a) Long term receivablesi) Unsecured, Considered Good 1) Receivables under financing activity 35,85,39,842 17,78,88,727

ii) Unsecured, Considered Doubtful 1) Receivables under financing activity 1,06,25,185 3,91,923

36,91,65,027 17,82,80,650b) Others i) Deposits with Banks more than 12 months maturity 11,46,81,128 9,01,18,351

ii) Deposits with other NBFC for term loans 1,40,62,893 1,82,51,572

iii) Deferred Revenue Expenditure 2,18,28,371 1,12,32,982

iv) Rent Deposits 86,28,750 41,44,000

v) Advance Tax 72,98,900 40,37,000

vi) TDS Receivables 73,40,384 27,33,271

vii) MAT Credit 13,42,390 -

17,51,82,816 13,05,17,176Total (a+b) 54,43,47,843 30,87,97,826

NOTE 12 -RECEIVABLES UNDER FINANCING ACTIVITIES(`)

ParticularsAs at


31st March, 2016a) Unsecured, Considered Good Outstanding for a period less than six months from the date they are due for payment 1,06,64,76,872 50,04,08,284

b) Unsecured, Considered Doubtful Outstanding for a period exceeding six months from the date they are due for payment 8,37,205 19,73,575

Total 1,06,73,14,077 50,23,81,859

66



NOTE 13 - CASH AND CASH EQUIVALENTS(`)

ParticularsAs at


31st March, 2016 a) Balances with Banks (i) In Current accounts 19,04,87,432 10,57,79,810

b) Cash on hand 11,47,622 1,47,574

19,16,35,054 10,59,27,384c) Others (i) In Fixed Deposit accounts with maturity less than 12 months 37,46,84,547 2,47,38,720

37,46,84,547 2,47,38,720Total 56,63,19,601 13,06,66,104

NOTE 14 - SHORT-TERM LOANS AND ADVANCES(`)

ParticularsAs at


31st March, 2016a) Othersi) Unsecured, Considered Good 1) Loans and Advances to employees 8,44,117 9,11,729

2) Prepaid Expenses 33,54,739 34,991

3) Other advances 1,23,23,632 42,77,514

4) Rent paid in advance - 8,00,000

Total 1,65,22,487 60,24,233

NOTE 15 - OTHER CURRENT ASSETS(`)

ParticularsAs at


31st March, 2016a) Interest accrued 2,56,34,429 1,07,46,831

b) Income accrued 1,12,782 23,216

c) Hindustan Unilever Ltd - 19,45,382

d) Orb Energy Pvt Ltd - 81,639

Total 2,57,47,211 1,27,97,068

NOTE 16 - REVENUE FROM OPERATIONS(`)

ParticularsFor the year ended

31st March, 2017For the year ended

31st March, 2016a) Interest income on Loans 19,71,94,881 15,11,92,794

b) Processing fee on Loans 1,59,85,481 96,66,949

c) Income from securitisation / assignment of loans 2,96,42,588 1,32,80,254

d) Recovery against loans written off 49,072 65,824

e) Income from Business Correspondents 6,44,78,357 1,02,78,034

f ) Interest income on fixed deposits (collateral) 1,30,81,047 71,15,063

Total 32,04,31,427 19,15,98,918

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NOTE 17 - OTHER INCOME(`)



31st March, 2016a) Interest and Other Income i) Interest income on Loans & Advances to Related Parties - 2,14,176

ii) Interest income on Staff Loans 1,70,904 1,71,927

iii) Fee Income from Related Parties - 20,00,000

b) Dividend Income i) Dividend income from investments in mutual fund 69,47,850 23,00,293

c) Other Non-Operating Income i) Facilitation fee 2,04,904 47,02,527

ii) Miscellaneous income 3,36,730 1,76,043

iii) Profit on sale of fixed assets - 46,718

iv) Service fee 3,55,473 1,20,276

v) Interest on Income tax refund - 67,752

Total 80,15,861 97,99,712

NOTE 18 - EMPLOYEE BENEFITS EXPENSES(`)



31st March, 2016a) Salaries and wages 9,05,55,177 3,76,30,153

b) Contributions to provident fund and other funds 69,83,984 25,95,708

c) Gratuity (Refer Note 22.2) 11,20,776 15,77,665

d) Staff welfare expenses 32,10,450 20,16,886

e) Bonus and incentives 1,03,03,982 55,76,107

Total 11,21,74,369 4,93,96,519

NOTE 19 - FINANCE COSTS(`)



31st March, 2016a) Interest expenses on term loans, cash credit and vehicle loans 10,47,18,180 9,26,50,265

b) Interest expenses on Debentures 2,93,99,786 10,25,671

c) Financial expenses 11,84,174 9,71,302

d) Securitisation and assignment expenses 9,45,652 28,18,801

e) NCD expenses 22,52,263 4,72,757

f ) Interest on delayed payment of Advance Tax - 19,683

Total 13,85,00,056 9,79,58,479

68



NOTE 20 - ADMINISTRATIVE AND OTHER EXPENSES(`)



31st March, 2016Advertisement expenses 4,90,892 1,07,272

Auditor's Remuneration (Refer Note (i) below) 1,75,000 1,63,335

Brokerage 54,500 58,750

Computer consumables 4,61,126 1,47,884

Directors expenses 2,41,777 1,80,371

Deferred Revenue Expenditure 89,92,277 71,42,697

Donation 30,000 -

Electricity and water charges 6,48,516 3,72,080

Insurance - General 9,59,517 5,10,720

Local conveyance 75,45,071 23,02,319

Loss on sale of assets 87,965 -

Membership Subscription Charges 8,14,573 2,67,919

Miscellaneous Expenses 25,922 6,718

Office Maintenance 23,13,957 10,39,592

Postage & Courier 11,62,985 4,30,592

Printing and Stationery 23,58,770 14,30,299

Provision for CSR activities 50,000 50,000

Professional Fees 1,01,85,289 60,94,231

Rates and Taxes 12,03,123 6,94,645

Rent 89,76,144 47,92,355

Software Maintenance Charges 43,15,663 17,72,798

Telephone Charges 16,61,246 7,76,018

Travelling Expenses 30,21,748 10,16,403

Vehicle Maintenance & Insurance 4,03,055 7,78,545

Website Charges 2,61,256 12,854

Total 5,64,40,374 3,01,48,397

Note (i)(`)



31st March, 2016Auditor's Remuneration (net of service tax input credit)

- Statutory Audit Fee 1,10,000 1,23,335

- Tax Audit Fee 40,000 40,000

- Other Services 25,000 -

Total 1,75,000 1,63,335

NOTE 21 - PROVISION / WRITTEN OFF FOR RECEIVABLES UNDER FINANCING ACTIVITY(`)



31st March, 2016Provision for Loan Portfolio 75,58,375 10,27,402

Bad Debts Written Off 29,58,880 15,11,224

Total 1,05,17,255 25,38,626

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NOTE 22 – EMPLOYEE BENEFITSDisclosures envisaged in Accounting standard (AS) 15 - Employee Benefits as given below:

22.1 Defined Contribution Plans During the year, the Company has recognized the following amounts in the statement of profit and loss.

(`)



31st March, 2016Employers Contribution to Provident & Pension Fund 4,910,772 1,954,783

22.2 Defined Benefit Plans The Company has funded defined benefit gratuity plan. Every employees who has completed five years or more of service is eligible for gratuity on

separation at 15 days basic salary (Last Drawn salary) for each completed year of service.

Consequent to the adoption of AS 15 ’Employee Benefits’ specified under section 133 of Companies Act, 2013 read with rule 7 of Companies

(Accounts) Rules, 2014, the following disclosures have been made as required by standard:

Contribution to Gratuity Fund: Details of defined benefit plan of gratuity are given below:

(`)



31st March, 2016i) Changes in the Present Value of Obligation (PVO) PVO as at the beginning of the period 3,149,521 1,902,334

Interest Cost 219,015 135,493 Current service cost 795,240 470,921

Past service cost - (non vested benefits) - -

Past service cost - (vested benefits) - -

Benefits paid -458,650 -330,478

Actuarial loss/(gain) on obligation (balancing figure) 157,615 971,251

PVO as at the end of the period 3,862,741 3,149,521ii) Changes in the Fair Value of Plan Assets Fair value of plan assets as at the beginning of the period - -

Expected return on plan assets 86,290 -

Contributions 2,699,940 330,478

Benefits paid -458,650 -330,478

Actuarial gain/(loss) on plan assets [balancing figure] -35,196 -

Fair value of plan assets as at the end of the period 2,292,384 -

iii) Amount recognized in the Balance Sheet and Related Analysis Present value of the obligation 3,862,741 3,149,521

Fair value of plan assets 2,292,384 -

Difference 1,570,357 3,149,521

Unrecognized transitional liability - -

Unrecognized past service cost - non vested benefits - -

Liability recognized in the balance sheet 1,570,357 3,149,521iv) Expenses recognized in the Profit & Loss Account Current service cost 795,240 470,921

Interest Cost 219,015 135,493

Expected return on plan assets -86,290 -

Net actuarial (gain)/loss recognized in the year 192,811 971,251

Transitional Liability recognized in the year - -

Past service cost - non-vested benefits - -

70



(`)



31st March, 2016 Past service cost - vested benefits - -

Expenses recognized in the statement of profit and loss 1,120,776 1,577,665v) Major categories of Plan Assets (As percentage of Total Plan Assets) Government of India Securities 0.00% 0.00%

State Government Securities 0.00% 0.00%

High Quality Corporate Bonds 0.00% 0.00%

Equity shares of listed companies 0.00% 0.00%

Property 0.00% 0.00%

Insurer Managed 100.00% 0.00%

Mutual Funds 0.00% 0.00%

Bank Deposits 0.00% 0.00%

Total 100.00% 0.00%vi) Principal Actuarial Assumptions (Expressed as weighted averages) Discount Rate 6.80% 7.50%

Salary escalation rate 7.00% 10.00%

Attrition rate 24.00% 24.00%

Expected rate of return on Plan Assets 7.70% 0.00%

vii) Assumptions Discount rate as per para 78 of AS15R 6.80% 7.50%

Salary escalation fixed by the Enterprise as per para 83-91 and 120[l] of AS15R 7.00% 10.00%

Attrition rate fixed by Enterprise 24.00% 24.00%

Age of Retirement 60 60

Funding Mechanism Insurer Managed Unfunded

NOTE 23 – SEGMENT INFORMATIONThe Company is engaged in the business of providing microfinance services by way of loan to poor women who are organized as Joint Liability Groups (JLG) in the rural and urban areas of Karnataka, Tamil Nadu, Goa and Maharashtra. Thus the Company has one reportable segment.

Further, the Company operates in a single geographical segment i.e. domestic.

NOTE 24 – RELATED PARTY DISCLOSURESRelated party disclosures as required under the Accounting Standard (AS) - 18 on “Related Party Disclosures” notified in companies (Accounting standard) Rules, 2006 are given below:

24.1 Names of Related Parties and Nature of RelationshipDescription of Relationship As at 31st March, 2017 As at 31st March, 2016Subsidiary Company Ayusha Dairy Private Limited Ayusha Dairy Private Limited

Key Management Personnel Mr. Venkatesh N., Managing Director

Mr. Shivaprakash D.

Whole-time Director

Mr. R.C.Shekar, Director

Mr. T. Anantha kumar, CFO

Mr. K J Sutheja, Company Secretary

Mr. S. Parthasarathy, CFO

Upto 31st May’16

Ms. Ritu Singh, Company Secretary

Upto 31st Oct’16

Mr. Venkatesh N., Managing Director

Mr. Shivaprakash D.

Whole-time Director

Mr. R.C.Shekar, Director

Mr. S. Parthasarathy, CFO

Ms. Ritu Singh, Company Secretary

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24.2 Transactions with Related Parties(`)

Transaction Related PartyFor the year ended


31st March, 2016IncomeInterest on loans and advances to

related party

Ayusha Dairy Private Limited Nil 214,176

Service fee to related party Ayusha Dairy Private Limited Nil 2,000,000

Other TransactionsLoans and Advances to Subsidiary Ayusha Dairy Private Limited Nil 7,084

Loans and Advances recovered from

Subsidiary

Ayusha Dairy Private Limited Nil 4,226,325

Remuneration to Director Mr. Venkatesh N., Managing Director 33,01,704 2,711,988

Mr. Shivaprakash D., Whole-time Director 24,01,908 2,038,515

Mr. R.C. Shekar, Director 1,512,718 1,505,292

Reimbursement of expenses to Director Mr. Venkatesh N., Managing Director 60,000 107,185

Sitting fee to Independent Directors Mr. Badrinarayanan Seshadri, Director 76,222 64,154

Mr. A. Vikraman, Director 85,555 30,626

Mr. A. Ramanathan, Director 80,000 53,154

Remuneration to KMP Mr. S. Parthasarathy, CFO Upto 31st May’16 1,57,926 480,081

Mr. T. Anantha kumar, CFO From 02nd July’16 8,11,813 Nil

Ms. Ritu Singh, Company Secretary Upto 31st Oct’16 83,293 130,344

Mr.R. Govindarajan, CFO Upto 22nd Sept 2015 Nil 754,357

Mr. K J Sutheja, Company Secretary, from 11th Nov’16 2,50,000 Nil

Remuneration / Sitting fee Relatives of Directors and Key Management Personnel Nil Nil

Balance as at year endInvestment in Subsidiary (1,000,000

Equity shares of ` 10/- each)

Ayusha Dairy Private Limited 10,000,000 10,000,000

NOTE 25 - ADDITIONAL INFORMATION25.1 Contingent liabilities and commitments (to the extent not provided for)

ParticularsAs at


31st March, 2016Contingent liabilities Nil Nil

25.2 Disclosure on foreign currency exposure: Earning in Foreign Exchange in Foreign Currency during the year is ` Nil (Previous Year ` Nil)

Expenditure in Foreign Exchange in Foreign Currency during the year is ` Nil (Previous Year ` Nil)

25.3 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days at the

Balance Sheet date. The above information regarding Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

25.4 Asset Classification & Provisioning: The Company follows Prudential Norms of the Reserve Bank of India with regard to classification in respect of all loans extended to its

customer.

The Company complies with the Prudential Norms of the Reserve Bank of India with regard to Income recognition, asset classification and provisioning. The Company is following provisioning norms as recommended vide DNBS.CC.PD.No. 250/03.10.01/2011-12 dated 02nd December, 2011, DNBS.PD/CC.No.263/03.10.038/2011-12 dated 20th March, 2012 and DNBS.(PD).CC.No.347/03.10.38/2013-14 dated 01st July, 2013.

72



Accordingly the Company in line with guidelines laid down the DNBS(PD)CC.No. 347/30.10.038/2013-14 dated 01st July, 2013 has provided 1% of the total loan portfolio outstanding as at 31st March, 2017.

Classification of loan portfolio:(`)

Asset ClassificationLoan Portfolio as

on 31.03.2017Loan Portfolio as

on 31.03.2016Less than 90 days 1,425,016,714 678,297,011

91 - 180 days 10,625,185 391,923

More than 180 days 837,205 1,973,575

Total loan assets / loan portfolio 1,436,479,104 680,662,509

Provisioning Norms for Loans:(`)

Asset Classification RBI Norms As on 31.03.2017 As on 31.03.2016Total loan assets / loan portfolio - A 1% of the outstanding loan portfolio 14,364,791 6,806,625

Non-performing assets (91-180 days) 50% 5,312,593 195,962

Non-performing assets (> 180 days) 100% 837,205 1,973,575

TOTAL NPA – B 6,149,798 2,169,537Provision required - the higher of A) or B) 14,364,791 6,806,625

Less: Provision for loan portfolio already made 6,806,625 5,779,223

Provision made for the year ended 7,558,375 1,027,402

25.5 Disclosure Pursuant to Reserve Bank of India Notification DNBS.200/CGM (PK)-2008 dated 1st August, 2008 i) Capital to risk Assets ratio (CRAR) (computed as per the method prescribed by RBI)

(`)

Particulars As on 31.03.2017 As on 31.03.2016Tier I Capital 616,191,852 114,208,947

Tier II Capital 64,365,000 16,806,625

Total Capital Funds 680,556,852 131,015,572Total Risk Weighted Assets 1,533,754,137 737,501,250CRAR - Tier I Capital (%) 40.17% 15.48%

CRAR - Tier II Capital (%) 4.20% 2.28%

CRAR (%) 44.37% 17.76%

All Fixed Deposits with Banks under lien against term loans availed by the Company. However, considering the converge of secured loans, by assets like book debts etc., the risk weighted with respect to fixed deposits with Banks has been considered as Zero.

ii) Exposure to Real Estate Sector (Direct & Indirect Exposure) - Nil (PY: Nil)

iii) Amount of Subordinated Debt raised as Tier II Capital - ` 50,000,000/- (PY: Nil)

iv) Exposure to Capital Markets - Nil (PY: Nil)

v) Ratings assigned during the year;

a) MFI Grading - mfR3 rated by CRISIL Ratings (MFI Grading Scale - mfR1 Highest, mfR8 Lowest)

b) Bank loan rating - CRISIL A/Stable rated by CRISIL Ratings

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vi) Maturity Pattern of Assets and Liabilities

Maturity pattern of certain items of assets and liabilities as on March 31, 2017 – Amount in `

Particulars

Liabilities AssetsBorrowings

from Banks and others

Market Borrowings

Advances (Loan portfolio

outstanding)

FD with Banks (Free of Lien)

Investments

Up to one month 72,250,376 - 85,403,308 300,000,000 -

Over one month to 2 months 71,772,202 - 92,776,620 - -

Over 2 months up to 3 months 76,437,406 - 93,007,334 - -

Over 3 months up to 6 months 207,506,555 - 274,542,897 - -

Over 6 months to 1 year 355,671,264 - 521,583,918 - -

Over 1 year to 3 years 582,148,918 - 369,165,027 - -

Over 3 years to 5 years 521,399 - - - -

Over 5 years 100,000,000 - - - 10,500,000

Total 1,466,308,120 - 1,436,479,104 300,000,000 10,500,000

25.6 Disclosures of frauds reported during the year vide DNBS PD.CC.No. 256 / 03.10.042 / 2011-12 dated 02nd March, 2012Less than ` 1 Lakh ` 1 - 5 Lakhs ` 5 - 25 Lakhs Total

No. of Accounts

Value ` in Lakhs

No. of Accounts

Value ` in Lakhs

No. of Accounts

Value ` in Lakhs

No. of Accounts

Value ` in Lakhs

A) Person involved Staff - - 3 1.15 - - 3 1.15

Customer - - - - - - - -

Staff and Customer - - - - - - - -

Total - - 3 1.15 - - 3 1.15B) Type of fraud Misappropriation and

criminal

breach of trust

- - - - - - - -

Fraudulent encashment /

Manipulation of books of

Accounts

- - 3 1.15 - - 3 1.15

Unauthorized credit facility

extended

- - - - - - - -

Cheating and forgery - - - - - - - -

Total - - 3 1.15 - - 3 1.15

25.7 Disclosure as required under DNBS (PD) CC. No. 300/03.10.038/2012-13 dated August 3, 2012 The cap on margins (as defined by Malegam Committee) and in compliance with RBI circular RBI/2012-13/161 DNBS (PD) CC.No.300

/03.10.038/2012-13 03rd August, 2012 is 9.22% as at 31st March, 2017 (9.79% as at 31st March, 2016).

74



NOTE 25 - 26. EARNINGS PER SHARE



31st March, 2016Profit after Tax (`) 8,089,888 14,665,322

Weighted Average Number of Equity Shares

- Basic 12,283,965 10,470,000

- Diluted 12,283,965 10,470,000

Earnings Per Share

- Basic 0.59 1.40

- Diluted 0.59 1.40

Face Value of Shares (`) 10 10

NOTE 25 - 27. RECOGNITION OF MAT CREDITNo MAT credit is availed and utilized during the year (previous year ` Nil/-). No MAT credit is recognized during the year (previous year Nil).

NOTE 25 - 28. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA NOTIFICATION DNBS.193DG (VL) 2007 DATED 22ND FEBRUARY, 2007:

(`)

Sr. No.

ParticularsAs at 31st March, 2017

Amount Outstanding

Amount Overdue

Liabilities

(1) Loan and Advances availed by the NBFC inclusive of Interest accrued thereon but not paid:A Debentures - -

- Secured - -- Unsecured - -(Other than falling the meaning of Public Deposits) - -

B Deferred Credits - -C Term Loan 1,106,278,162 -D Inter-corporate Loans & Borrowings - -E Commercial Paper - -F Public Deposits - -G Other Loans – Vehicle Loan 1,696,558 -

Non-Convertible Debentures 358,333,400

(`)

Sr No.

ParticularsAmount Outstanding

31st March, 2017(2) Break-up of (1) (f) above (Outstanding public deposits inclusive of interest accrued thereon but not paid)

(a) In the form of Unsecured debentures

(b) In the form of partly secured debentures i.e, debentures where there is a shortfall in the value of security

(c) Other public deposits

Assets(3) Break-up of Loans & Advances including Bills Receivables [ Other than those included in (4) below]

(a) Secured -(b) Unsecured 1,436,479,104

(4) Breakup of Leased and Stock on Hire and other Assets counting towards AFC activities -(i) Lease assets including Lease rentals under sundry debtors: - (a) Finance Lease - (b) Operating Lease -

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(`)

Sr No.

ParticularsAmount Outstanding

31st March, 2017(ii) Stock on Hire including Hire Charges under sundry debtors: - (a) Assets on Hire - (b) Repossessed Assets -(iii) Other Loans counting towards AFC Activities - (a) Loans where assets have been repossessed - (b) Loans other than (a) above -

(5) Break-up of Investments Current Investments -I Quoted: - (i) Shares: (a) Equity - (b) Preference - (ii) Debentures and Bonds - (iii) Units of Mutual Funds - (iv) Government Securities - (v) Others -II Unquoted: - (i) Shares: (a) Equity - (b) Preference - (ii) Debentures and Bonds - (iii) Units of Mutual Funds - (iv) Government Securities - (v) Others -Long term Investments -I Quoted: - (i) Shares: (a) Equity - (b) Preference - (ii) Debentures and Bonds - (iii) Units of Mutual Funds - (iv) Government Securities - (v) Others -II Unquoted: - (i) Shares: (a) Equity 10,500,000 (b) Preference - (ii) Debentures and Bonds - (iii) Units of Mutual Funds - (iv) Government Securities - (v) Others -

(6) Borrower Group wise classification of Assets Financed as in (3) and (4) above

Sr. No.

Particulars As at 31st March, 2017

Amount in (`) (Net of Provisions) Secured Unsecured Total

1 Related Parties

(a) Subsidiaries - - -(b) Companies in the same group - - -(c) Other Related Parties - - -

2 Other than related parties - 1,422,114,104 1,422,114,104Total - 1,422,114,104 1,422,114,104

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(7) Investor Group-wise classification of all investments (Current and Long Term) in Share and Securities (both Quoted and Unquoted)

Sr. No.

Category

Market Value / Breakup value or Fair Value or Net

Assets Value

Book Value (`)

1 Related Parties

(a)Subsidiaries - 10,000,000 (b) Companies in the same group - - (c) Other Related Parties - -

2 Other than related parties - 500,000Total - 10,500,000

(8) Other Information

Amount(i) Gross Non - Performing Assets

Related Parties -Other than related parties 11,462,390

(ii) Net Non - Performing Assets

Related Parties -Other than related parties -

(iii) Assets acquired in Satisfaction of Debt -

NOTE - 29. THE COMPANY HAS NOT DISBURSED ANY LOAN AGAINST SECURITY OF GOLD.

NOTE - 30. DETAILS OF AVERAGE INTEREST PAID ON BORROWINGS AND CHARGED ON LOANS GIVEN TO JLGS

Particulars

2016-17 2015-16Rate of Interest in

% for Microfinance loan

Rate of Interest in % for Microfinance loan

Average Rate of Interest on Borrowings 15.19% 16.09%

Average Rate of Interest on Loans given 24.41% 25.88%

Net Interest Margin 9.22% 9.79%

NOTE -31. SECURITIZATION / ASSIGNMENT OF LOANSDuring the year, the Company has sold loans through direct Securitization / assignments. The information on direct assignment activity of the Company as an Originator / Assignor is as shown below:

(`)


March 31, 2017Year ended

March 31, 2016Total number of loans securitized / assigned 23,917 14,364

Total book value of loans securitized / assigned 231,599,843 253,509,823

Sale consideration received for loans securitized / assigned 253,816,937 259,348,785

Income recognized in the statement of profit and loss 29,642,588 13,280,254

Balance of loans assigned / securitized as at the balance sheet date 175,687,865 218,941,848

Cash collateral provided and outstanding as at the balance sheet date 24,089,612 4,060,415

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Disclosure to be made under Securitization guidelines issued by Reserve Bank of India vide policy no. DNBS. PD. No. 301/3.10.01/2012-13 dated August 21, 2012.

Sr. No.

Particulars As on 31.03.2017 As on 31.03.2016

1 No. of SPVs sponsored by the NBFC for Securitization transactions 3 1

2 Total amount of securitized assets as per the books of the SPVs sponsored by the Company 231,599,843 47,830,931

3 Total amount of exposures retained by the Company to comply with MRR as on the date of balance

sheet

i) Off-Balance Sheet exposures a) First Loss - -

b) Others - -

ii) On-Balance Sheet exposures a) First Loss (in the form of Fixed Deposit) 24,089,612 4,060,415

b) Others - -

4 Amount of exposures to securitization transactions other than MRR

i) Off-Balance Sheet exposures a) Exposure to own securitization

First Loss - -

Others - -

b) Exposure to third party securitization transaction

First Loss - -

Others - -

ii) On-Balance Sheet exposures a) Exposure to own securitization

First Loss - -

Others - -

b) Exposure to third party securitization transaction

First Loss - -

Others - -

NOTE - 32. SHAREHOLDER’S AGREEMENT AND SUBSCRIPTION OF SHARES:The promoters of the Company have entered into a Shareholders’ Agreement with India Infoline Finance Limited on 20th January, 2017 for transfer of 8,417,631 Equity shares of ` 10 each. Consequent upon the transfer, the Company has become a subsidiary of India Infoline Finance Limited.

In the meeting held on 20th March, 2017 the company has issued and allotted 50,000,000 equity shares of ` 10 each fully paid up to India Infoline Finance Limited and as approved by the members in the Extra- Ordinary General Meeting held on 08th March, 2017.

In the Extra-Ordinary General Meeting held on 08th March, 2017, the shareholders of the Company increased the authorized share capital of the Company from ` 425,000,000 consisting of 40,500,000 equity shares of ` 10 each and 2,000,000 preference shares of ` 10 each to ` 650,000,000 consisting of 63,000,000 equity shares of ` 10 each and 2,000,000 preference shares of ` 10 each.

78



NOTE -33. THE DETAILS OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED DURING THE PERIOD 08/11/2016 TO 30/12/2016 AS PROVIDED IN THE TABLE BELOW:

SBNsOther

denomination notes

Total

Closing cash in hand as on 08.11.2016 2,75,500 2,22,828 4,98,328

(+) Cash Collected (EMI, Processing Fee & Insurance) 10,18,57,500 14,67,82,144 24,86,39,644

(-) Permitted payments Nil Nil Nil

(-) Amount deposited in Banks 10,21,33,000 14,60,91,332 24,82,24,332

Closing cash in hand as on 30.12.2016 Nil 9,13,640 9,13,640

Explanation : For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.”.

NOTE -34. PREVIOUS YEAR FIGURESPrevious year’s figures have been reclassified to conform with the current year’s classification / presentation, wherever applicable.





M. No. 014353


NOTES

NOTES

CORPORATE INFORMATION

BOARD OF DIRECTORSMr. Venkatesh N.Managing Director

Mr. Shivaprakash D.Whole Time Director

Mr. R. VenkataramanNon-Executive Director

Mr. K. ChandrachoodanNon-Executive Director

Mr. Gaurav MalhotraNon-Executive Director

Mr. Badrinarayanan S.Independent Director

Mr. Vikraman A.Independent Director

Mr. Ramanathan A.Independent Director

COMMITTEES OF BOARD

Audit CommitteeMr. Vikraman AmpalakkatIndependent Director

Mr. Badrinarayanan SeshadriIndependent Director


Nomination and Remuneration CommitteeMr. Ramanathan Annamalai Independent Director

Mr. Badrinarayanan SeshadriIndependent Director

Mr. Venkatesh N.Managing Director

Resourcing & Business CommitteeMr. Venkatesh N.Managing Director


CHIEF FINANCIAL OFFICERMr. T. Anantha Kumar

CHIEF STRATEGY OFFICERMr. Sreepal Jain

COMPANY SECRETARYMr. Sutheja K.J

STATUTORY AUDITORSM/s. Gowthama and CompanyChartered Accountants

INTERNAL AUDITORSMr. Subramanya PuranikChartered Accountant

SECRETARIAL AUDITORSMr. Lakshmeenarayan BhatPracticing Company Secretary

CORE MANAGEMENT TEAMMr. Gordon RozarioHead – Internal Audit, Credit Policy & Risk

Mr. Arunachala ShastriHead – Operations

Mr. T. DuraiTreasurer

REGISTRAR AND TRANSFER AGENTM/s. Karvy ComputerShare Private LimitedKarvy Selenium, Tower- B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad - 500 032, India. REGISTERED OFFICE & CORPORATE OFFICE418, 1/2A, 4th Cross, 6th Main, Wilson Garden, Bangalore - 560 027, Karnataka, India

LIST OF BANKERS

Bank of Maharashtra

Canara Bank

Fedbank Financial Services Limited

Indian Bank

Kaveri Grameena Bank

Lakshmi Vilas Bank

Pallavan Grama Bank

RBL Bank Ltd.

South Indian Bank

State Bank of India

UCO Bank

Yes Bank Ltd.

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SAMASTA MICROFINANCE LIMITEDNo. 418-1/2A, 4th Cross, 6th Main, Wilson Garden, Bengaluru - 560 027Phone: +91 80 4291 3500 E-mail: [email protected] www.samasta.co.in

Fortune at the Bottom of the Pyram

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Fortune at the Bottom of the Pyramid - Samasta Microfinance · Return on Equity (%) 2012-132013-142014-152015-162016-17 5.1 2.2 5.5 11.3 2.1 2012-132013-142014-152015-16 2016-17 Return