2 madura micro finance...14 madura micro finance 10 short films of 5-7 mins were created to spread...
TRANSCRIPT
2 Madura Micro Finance
Mission
Enabling productive and efficient
capital in rural India for inclusive
socioeconomic development
3Madura Micro Finance
Company
Letter from Chairman
Tracking Technology Use in Banking & Finance among Our Members
Enabling Successful Entrepreneurship
Committed to the Health of our Member Communities
Auditor’s Report
Annexure (I,II,III,IV,V,VI)
Balance sheet
Cash Flow
Notes
Auditor’s Report
Balance Sheet
Cash Flow
MADURA MICRO FINANCE (STANDALONE)
MADURA MICRO EDUCATION
Director’s Report
MADURA MICRO FINANCE (CONSOLIDATED)
Auditor’s Report
Balance sheet
Cash Flow
Notes
Notes
Snapshot of Results
07
08
10
12
14
45
52
53
54
56
88
89
90
24
97
102
103
104
106
91
82
16
06
Management Discussion and Analysis 42
Contents
4 Madura Micro Finance
Tracking Technology Use in
Banking and Finance among
Our Members
10
5Madura Micro Finance
GrowthFY 2016 FY 2017 FY 2018
43.96%
31.84%
31.79%
Gross Loan Portfolio ( . Mn)*
Revenue ( . Mn)
PAT ( . Mn)
Net NPA% (PAR > 90 days)
Efficiency (OPEX/GLP)
Active Borrowers
Branches
Geography
5,531
1,188
192
0.12%
6.82%
407,730
200
Tamil Nadu,Karnataka,
Maharashtra,and Kerala
8,226
1,795
302
Nil
6.69%
515,104
217
Tamil Nadu,Karnataka,
Maharashtra,and Kerala
11,842
2,331
398
Nil
6.19%
688,546
282
Tamil Nadu,Karnataka,
Maharashtra,Kerala, Bihar,and Orissa.
2014 2015 2016 2017 2018 20182017201620152014
0
2000
4000
6000
8000
10000
12000
14000
0
500
1000
1500
2000
2500
Snapshot of Results
GROSS LOAN PORTFOLIO ( . Mn) REVENUE ( . Mn)
6 Madura Micro Finance
* includes securitized portfolio
Mr. M. Narayanan
Company Secretary
Mr. Sanin Panicker
nd36, 2 Main Road,
Kasturba Nagar, Adyar,
Chennai - 600020.
Banks/Financial Institutions
DIRECTORS
President & CFO
Dr. Tara Thiagarajan (Chairman & Managing Director)
Mr. Ashok Mirza (Non-Executive Director)
Mr. R Ramaraj (Non-Executive Director)
Mr. N.C.Sarabeswaran (Independent Director)
Ms. Siva Kameswari Vissa (Independent Director)
Mr. Sandeep Farias (Non-Executive Director)
Mr. Ajit Thomas (Non-Executive Director)
Mr. Mohan Eddy (Whole-time Director)
Axis Bank
City Union Bank
DCB Bank
Dhanalakshmi Bank
Federal Bank
IDBI Bank
South Indian Bank
Lakshmi Vilas Bank
Kotak Mahindra Bank
Dena Bank
Indian Bank
Bank of Baroda
Bandhan Bank
RBL Bank
IDFC Bank
Union Bank of India
State Bank of India
National Bank for Agricultural and Rural Development
Micro Units Development and Refinance Agency Limited
Hero FinCorp Limited
Hinduja Leyland Finance Limited
Mahindra & Mahindra Financial Services Limited
Mas Financial Services Limited
Nabkisan Finance Limited
Northern Arc Capital Limited
Tata Capital Financial Services Limited
World Business Capital
Sundaram Finance Limited
Banks Financial Institutions
Registered Office
PKF Sridhar & Santhanam LLP
KRD GEE GEE Crystal, 7th Floor,
91-92, Dr. Radhakrishnan Salai,
Mylapore, Chennai 600 004.
Auditors
Debenture Trustee
Catalyst Trusteeship Limited
Office No. 83 - 87, 8th Floor,
B' Wing, Mittal Tower,
Nariman Point, Mumbai - 400021
6th Floor,
Karumuttu Centre,634,
Anna Salai, Nandanam,
Chennai - 600035
Corporate Office
Company
7Madura Micro Finance
Dear Shareholders,This marks another year of robust growth in both top line and profitability. The lingering
impact of demonetization slowed down branch expansion and disbursals in some regions
during the first half of the year but eased to enable strong growth in the second half. We are
happy to report that this year our gross loan portfolio grew ~44% to Rs. 11.82 billion and profit
before tax grew from Rs. 495 to 625 million.
Notable developments this year included expansion into Bihar and Odisha with 19 new
branches, continued gains in operational efficiency and data driven intelligence resulting in
greater productivity, and the roll out of significant CSR initiatives in cognitive and community
health.
EXPANSION INTO BIHAR AND ODISHA
Expansion into Bihar and Odisha marks a substantial leap forward in our efforts to establish a
pan India footprint. Both States have positive credit behavior with excellent track records of
repayment and GSDP growth that is higher than the national average. Bihar stands out in its
10.3% GSDP growth. With 19 new branches operational by the end of the year and further
expansion to come, these states represent an important part of Madura’s geographic
expansion. Branch expansion continued across other states as well with 36 new branches
across Tamil Nadu and Kerala.
PROCESS EFFICIENCIES
Following the streamlining of our centralized credit operations last year, much of our efforts
this year have focused on building greater efficiencies into our field processes. New
applications for field staff help track metrics at a village level as well as assist in planning,
tracking and monitoring field movement. This has led to considerable efficiencies in sourcing
and loan origination as well as better management of collections. The end result has been
higher throughput resulting in lower operating expenses.
We have also taken advantage of growing cell phone penetration and number persistency to
ensure greater connect with our member base by phone. From call conversions at 20% just five
LETTER FROM
CHAIRMAN
8 Madura Micro Finance
years ago arising due to the lack of phones and stable phone numbers among our members,
we are now able to reliably reach over 80%. This opens up numerous opportunities going
forward for new products and processes.
CORPORATE SOCIAL RESPONSIBILITY
This year Madura is proud to have made a significant commitment to CSR activities focusing on
two fundamental aspects that impede the economic success of its member base: its physical
and cognitive health.
Physical Health: Our own studies showed that our members lose an average of 42 working
days a year, five times more than women in developed countries. In response we developed a
video-based awareness campaign covering ten of the issues most commonly cited by our
members as causes for loss of productivity and wages. Further, over 630 employees
participated actively across the country in bringing free health camps and other health
awareness activities to our member communities, contributing a total of 4067 hours of their
time.
Cognitive Health: India has among the highest rates of malnutrition and physical stunting in
the world. However, research has increasingly begun to show that impoverished environments
also result in cognitive stunting. Development of the brain is most rapid and significant from
birth to age five. Madura is therefore supporting research by the Public Health Foundation of
India to understand and build tools to assess and intervene in early childhood for better
cognitive health results.
TECHNOLOGY ENVIRONMENT
Changes in technology, such as costs of cell phones, and new payment mechanisms are rapidly
beginning to gain traction in rural India. This presents an opportunity for new types of services
and offerings. We have been active in monitoring the trajectory of awareness and use of
technology among our member base and share in this annual report some insights gained on
this dimension. Further we continue to actively pilot new technologies to evaluate adoption
and potential and remain at the forefront. We invite you to read our blog Madura Insights
which provides data driven views into the changing behavior of the informal economy.
Through data, technology and community efforts, we continue to press forward on our mission
to deliver cost efficient and productive capital to rural communities. We thank you for sharing
in this journey.
Tara ThiagarajanChairman and Managing Director
9Madura Micro Finance
Tracking Technology Use in Banking and Finance among Our MembersAs India’s digital landscape changes, the adoption and use of technology among our members
has also been changing, and will drive opportunities for future products and services. What
does it look like now?
Bihar
40
Karnataka 149
Kerala 145
Maharashtra 273
Tamil Nadu654
Total number of surveys: 1,261 Tamil Nadu leads in electronic receipt
of income
Cash Cheque Account Transfer
Kerala leads in the use of banking facilities.
Tam
il N
adu
Mah
aras
htra
Karnat
aka
Keral
a
Bihar
Usage of Cheque Book facility (in %)
Bihar
Karnat
aka
Tam
il N
adu
Mah
aras
htra
Keral
a
Use of ATM Card (without debit) facility (in %)
Snapshot March 2018 Cash Still Dominates Income Receipt
Use of Banking Facilities
Tamil Nadu
Maharashtra
Karnataka
Kerala
Bihar
93%1%9%
97%4%
7%
87%15%
5%
96%15%
5%
95%3%3%
Unaware of availability Do not have facility
Unaware of the facility Aware but haven't used
Have facility, not aware of how to use
10 Madura Micro Finance
Use of ATM Card (with debit) facility (in %) Internet Banking Facility (in %)
Tam
il N
adu
Mah
aras
htra
Karnat
aka
Keral
a
Bihar
Karnat
aka
Bihar
Mah
aras
htra
Tam
il N
adu
Keral
a
Use of NEFT facility (in %) Use of IMPS facility (in %)
Tam
il N
adu
Mah
aras
htra
Karnat
aka
Keral
a
Bihar
Karnat
aka
Bihar
Mah
aras
htra
Tam
il N
adu
Keral
a
Kerala
Kerala leads in the use of mobile apps for money transfer.
Use Mobile App
To Receive Money
Use Mobile App
To Send Money
Karnataka
13%
10%
4%
1%3%
13%
13%
7% Maharashtra
Tamil Nadu
Use of NEFT & IMPS Money Transfer Facilities
Use of Mobile Apps to Send And Receive Money
Tamil Nadu leads in the use of NEFT facility
Have facility but choose not to use Have, use the facility Have facility
Used the facility
11Madura Micro Finance
Enabling Successful Entrepreneurship
To date we have trained 63,751 Microenterprise operators and aspiring entrepreneurs.
Our borrowers have limited business
literacy, minimal digital footprint and
no internet access. Madura Micro
Education was launched in 2012 to
bridge this gap and enable successful
micro entrepreneurs in our borrower
communities. Through our Teach70
video based learning and assessment
platform we deliver practical, context
specif ic business education to
interested members.
63,751
Members trained
5,80,552
Person-hours of content delivered
Trichy
Tanjore
Karaikudi
SivagangaiMadurai
NagercoilTirunelveli
TindivanamKrishnagiri
Periyakulam
Salem
Tiruppur Chidambaram
Hoskote
Sulibele
Devanahalli
Shivanapura
KendanahalliChintamani
Chikka MadhureChikballapur
Gudibande
Raichur
Tamil Nadu Karnataka
Geographic Presence
12 Madura Micro Finance
I had learnt how to improve
product display to help my
customers quickly identify
and choose what they want,
thus allowing me to serve
them without delay.
Petty shop
Before taking the MBE course, I lacked
confidence to interact with anyone. This
course helped me in building my
confidence. My confidence level may
have been at 10% before the course and
now, it is at 90%!
Roja
This course taught me the importance of
advertising and promotions for a business.
I am going to put up a signage for my shop
and start advertising my business in my
village.
Sarees & Dress Materials Business
I am a homemaker. MBE
course gave me the
confidence to start my
own business. I've
created a budget and
started saving money for
my business.
I own a grocery shop and the takeaway of the course was valuable for me. I can now better manage products, finances and customers because of which my profit is steadily improving.
Money is not the only thing important to run a
business. If we want to be successful
entrepreneurs, we must learn about aspects
such as finance, production and supply. I
gained this learning from MBE course
Arulrani
Pushpavalli
Selvarani
Tailor
Homemaker
Ammu
Murugammal
Petty shop
Member Testimonials
13Madura Micro Finance
Our members lose an average of 42 working days per year due to family health issues
leading to a direct loss of wages. We hope to change that.
community members
10,207
Committed to the Health of Our Member Communities
CSR activities& contributed
105
staffparticipated
in
638hours
impacting
4,067
Health & Nutrition
Eye Camps 72 Blind Walks62 Tree Plantings20
Blood DonationDrives
06 General HealthCamps
06 Dental Camp01
14 Madura Micro Finance
10 short films of 5-7 mins were created to spread awareness on preventive care and
treatment for the 10 most common health issues that lead to loss of wages. These are
shown in our branch office waiting areas.
Cognitive health is essential for effective
decision making and economic success and is
s trongly impacted by nutr i t ion and
environment in the first five years of life.
Madura's CSR supports research into
cognitive health led by Dr. Vikram Patel at the
Public Health Foundation of India (PHFI). The
program hopes to help develop insights that
can drive interventions and policy for better
cognitive development of India's low income
populations.
Diabetes
High Blood Pressure
Back Pain
Cold, Cough & Sore Throat
Fever
Health Awareness Films
Cognitive Health
15Madura Micro Finance
Director’s Report
MADURA MICRO FINANCE LIMITED(CIN: U65929TN2005PLC057390)
Dear Members,
Your Board of Directors take pleasure in presenting the Thirteenth Annual Report together with the audited
financials of your Company for the financial year ended March 31, 2018.
Financial highlights:
Business Overview:
During the year, the Company has provided Entry Level Loans to 243,297 new self-help groups, Activity term loans
to 128,489 existing Groups, Certified Activity Term Loan to 14,682 members and Business Development Loan to
34,756 members. Overall, the Company has disbursed 421,224 SHG Loans, providing financial assistance
amounting to INR 10.57 billion.
The Assets under Management (AUM) as on 31-03-2018 was at INR 11.84 billion representing an increase of 43.96%
over the previous year.
The profit before tax during the year was at INR 624.96 million compared to INR 495.20 million during the previous
year and the profit after tax increased by INR 96.14 million over previous year.
New Locations
The Company has expanded to Bihar and Odisha in the last quarter of FY18 increasing our presence from four
States to six States. During FY 2017-18, our branch network increased from 217 to 282.
During the year, the Company has opened a total of 65 new branches including 35 new branches in Tamil Nadu, 3 in
Karnataka, 3 in Kerala, 5 in Maharashtra, 6 in Bihar and 13 in Odisha.
.
Capital Adequacy
The Capital to Risk Asset Ratio was 25.70% as on 31st March 2018 as against the minimum requirement of 15%
stipulated by RBI. The net owned funds as on that date was INR 2.36 billion.
Subsidiary
The Company's subsidiary Madura Micro Education Private Limited provided skill development training course to
14,884 students during the year. The revenue from operations of the subsidiary was INR 6.71 million for FY 2017-18.
During the year under review, the Company reported a loss of INR 6.72 million as compared to a loss of INR 10.44
2241.97
89.43
1569.94
16.28
928.69
624.97
233.44
398.27
79.70
DETAILSYear ended
March 31, 2018
Revenue from operations Other Income
Profit Before Interest, Tax, Depreciation and Amortization
Depreciation and amortization
Interest expense (Net)
Profit Before Tax
Tax Expense (Current Tax)
Profit After Tax
Amount transferred to Statutory Reserve
Reg.Office: No.36,
Second Main Road, Kasturba Nagar,
Adyar, Chennai 600020
Phone: 044 42054369,
Fax : +91 (044) 24413841,
Email: [email protected]
1753.06
41.89
1267.37
27.59
744.57
495.20
198.50
302.13
61.00
(INR in million)
Year ended
March 31, 2017
16 Madura Micro Finance
million in the previous year. Expanded access of its education products to a larger base of borrowers are expected
to deliver growth in the coming year.
The details of the subsidiary in Form AOC 1 is attached as Annexure III.
Major Corporate Developments
During the year, your Company issued 3,04,433 equity shares to A.V. Thomas and Co. Ltd and 1,92,807 equity shares
to Midland Rubber and Produce Company Limited at a premium of INR 482.72 per share.
During the year, the Company also issued 400 secured, rated, listed Non-Convertible Debentures aggregating to
INR 400 million to Hinduja Leyland Finance Limited and 330 secured, rated, unlisted Non-Convertible Debentures
aggregating to INR 330 million to AAV SARL.
Vigil Mechanism
In compliance with the procedure laid down under the Vigil Mechanism as required under the Companies Act, 2013,
the Company has established procedures for:
(i). Receiving, retaining and treating complaints received;
ii). Confidential, anonymous submission by employees / Directors of complaints regarding questionable
accounting or auditing matters, conduct which results in a violation of law by Company or in a substantial
mismanagement of Company resources;
(iii). Reporting genuine concerns by the employees and Directors;
(iv). Adequate safeguards against victimization of persons who use vigil mechanism.
Events Subsequent to the date of Financial Statements
No material changes and commitments have occurred affecting the financial position of the Company after March
31, 2018 till the date of this Report.
Dividend
In order to conserve resources for operations and future growth, your Directors do not recommend any dividend
for the year under review.
Transfer to Reserves
As required under Section 45-IC of the Reserve Bank of India Act, 1934, an amount equivalent to 20 % of the profit
after tax (INR 79.70 million) has been transferred to the Statutory Reserve Account.
Deposits
Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 read
with the Companies (Acceptance of Deposits) Rules, 2014.
Order of the Court
There are no significant material orders passed by the Regulators or Courts or Tribunals impacting the going
concern status of the Company's operations in future.
RBI Guidelines
Reserve Bank of India (RBI) granted the Certificate of Registration to the Company in February 2006 vide
Registration No. N.07.00754, to commence the business of a Non-Banking Financial Institution without accepting
deposits. The Company was converted to NBFC-MFI with effect from December 2013. Your Company is a
Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI). The Company has
complied with and continues to comply with all the applicable regulations and directions of the RBI.
Director’s Report
17Madura Micro Finance
Board Evaluation
The Board of Directors have carried out an annual evaluation of its own performance, Board, Committees and
individual Directors pursuant to the provisions of Section 134 of the Companies Act, 2013.
Performance evaluation criteria for Board, Committees of the Board and Directors were approved by the
Nomination and Remuneration Committee of the Board at its meeting held on January 17, 2018. The main criteria
on which the evaluations were carried out were (i) Contribution to Board's discussions on varied issues related to
strategy, risk, business performance and continuity, (ii) Awareness of and guiding on norms relating to corporate
governance, disclosure and legal compliances, (iii) Contribution by way of new ideas/insights on business
management and growth, (iv) Deliberations on issues that Management and the Board should consider and (v)
Level of Independence and non -partisan approach in decision making.
The performance of the Board was evaluated by the Nomination and Remuneration Committee after seeking
inputs from all the Directors on the basis of the criteria such as the Board composition and structure, manner in
which Board Meetings are conducted, timely information for decision making and business strategy. The
performance of the Committees was evaluated by the Nomination and Remuneration Committee after seeking
inputs from the committee members on the basis of the criteria such as the composition of Committees,
understanding of objectives and decision making.
In a separate meeting of Independent Directors held on January 17, 2018, performance of Non-Independent
Directors, performance of the Board as a whole and performance of the Chairman were evaluated, taking into
account the views of Executive Directors and Non-Executive Directors. The same was discussed in the Board in their
meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its
Committees and individual Directors were also discussed.
Directors' responsibility statement
Your Directors state:
(i). That in the preparation of the annual accounts, the applicable accounting standards has been followed along
with proper explanation relating to material departures;
(ii). That we have selected such accounting policies and applied them consistently and made judgments and
estimates 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 or loss of the Company for that period;
(iii). That proper and sufficient care was taken for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(iv). That the annual accounts have been prepared on a going concern basis.
(v). That proper systems to ensure compliance with the provisions of all applicable laws were in place and that
such systems were adequate and operating effectively; and
(vi). That proper internal financial controls were laid down and that such internal financial controls are adequate
and were operating effectively.
Corporate Governance
Your Company has been complying with the principles of good corporate governance over the years and is
committed to the highest standards of compliance.
The performance of the Board, Audit Committee, Nomination & Remuneration Committee and the individual
Directors were evaluated on the basis of criteria as approved by the Board
Director’s Report
18 Madura Micro Finance
Listing Compliance
The Company has complied with the provisions of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and its amendments and the Debt Listing Agreement entered by
the Company with Bombay Stock Exchange Limited in respect of every Series of Secured / Unsecured Non-
Convertible Debentures issued by the Company.
Declaration by Independent Directors
The Company has received necessary declarations of independence from each of its Independent Directors under
Section 149(7) of the Companies Act, 2013, that he / she meets the criteria of Independent Director as envisaged in
Section 149 (6) of the Companies Act, 2013. All Independent Directors have submitted the declaration of
independence, as required pursuant to Section 149(7) of the Act, stating that they meet the criteria of
independence as provided in Section 149(6) of the Companies Act, 2013 and are not disqualified from continuing as
Independent Directors.
Development and Implementation of Risk Management Policy
The Company has developed and implemented a Risk Management Policy, upon which the Company is ensuring
that the activities are undertaken in a risk-free environment.
Adequacy of Internal Financial Controls with reference to the Financial Statements
The Company has implemented and evaluated the Internal Financial Controls which provide a reasonable
assurance in respect of providing financial and operational information, complying with applicable statutes and
policies, safeguarding of assets, prevention and detection of frauds, accuracy and completeness of accounting
records. The Directors and Management confirm that the Internal Financial Controls (IFC) are adequate with
respect to the operations of the Company. Further, the Board annually reviews the effectiveness of the Company's
Internal Control System.
Directors
Presently, the Board of Directors comprise of eight Directors.
Mr. Puneet Agarwal, Independent Director ceased to be a Director consequent to continued absence from all the
meetings of the Board of Directors held during the period of twelve months (i.e. From January 2017 to January 2018)
as stipulated under section 167 (1) (b) of the Companies Act, 2013. In this connection, the Company has filed the
necessary returns with the Registrar of Companies, Chennai.
Board Meetings & Attendance
During the year, the Board of Directors of your Company met 6 times. The Board Meetings were held on 28.04.2017,
26.05.2017, 15.06.2017, 01.08.2017, 06.11.2017 and 18.01.2018. The time period between any two meetings were
not more than 120 days.
The details of attendance of the Directors for the year ended March 31, 2018;
Name of the Director
Ms. Tara Thiagarajan
Mr. N C Sarabeswaran
Mr. R Ramaraj
Mr. Ashok Mirza
Mr. Mohan Eddy
Mr. Sandeep Farias
Mr. Ajit Thomas
Ms. Siva Kameswari Vissa
Designation
Chairman & Managing Director
Independent Director
Non-executive Director
Non-executive Director
Whole-time Director
Non-executive Director
Non-executive Director
Independent Director
Director’s Report
19Madura Micro Finance
NAME OF THE DIRECTOR NO. OF MEETINGS
HELD ATTENDED
Ms. Tara Thiagarajan
Mr. N C Sarabeswaran
Mr. R Ramaraj
Mr. Ashok Mirza
Mr. Mohan Eddy
Mr. Sandeep Farias
Mr. Puneet Agarwal
Ms. Siva Kameswari Vissa
Mr. Ajit Thomas
6
6
6
6
6
6
6
6
6
4
6
5
5
6
4
0
4
6
Retirement by Rotation of Directors
Mr. R Ramaraj, Director and Mr. Ajit Thomas, Director retire by rotation at the ensuing Annual General Meeting and
being eligible, offer themselves for reappointment. Your Directors recommend their re-appointment.
Committees
NAME OF THE COMMITTEE MEMBERS
1. Audit Committee
2. Nomination & Remuneration Committee
3. Risk Management Committee
Mr. N C Sarabeswaran, Chairman
Mr. R Ramaraj
Ms. Siva Kameswari Vissa
Mr. Ashok Mirza, Chairman
Ms. Siva Kameswari Vissa
Mr. Sandeep Farias
Mr. N C Sarabeswaran, Chairman
Ms. Siva Kameswari Vissa
Mr. R Ramaraj
5. Corporate Social Responsibility Committee Ms. Tara Thiagarajan, Chairman
Mr. Ajit Thomas
Mr. N C Sarabeswaran
4. Asset Liability Management Committee Mr. M Narayanan, Chairman
Mr. Samuel Mathews
Mr. Sanin Panicker
Mr. Prakash Paul
6. IT Strategy Committee Mr. R Ramaraj, Chairman
Mr. Mohan Eddy
Mr. Ashok Mirza
Overall Remuneration
Details of remuneration as required under Section 197 of the Companies Act, 2013 read with Rule 5 of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure VI and forms part
of this Report.
Director’s Report
20 Madura Micro Finance
Statutory Auditors
M/s. PKF Sridhar & Santhanam LLP were appointed as the Statutory Auditors of your Company at the Annual
General Meeting held on 28th September, 2017, for a term of five consecutive years. As per the provisions of
Section 139 of the Companies Act, 2013, the appointment of Auditors is required to be ratified by Members at every
Annual General Meeting.
In accordance with the Companies Amendment Act, 2017, enforced on 7th May, 2018 by the Ministry of Corporate
Affairs, the appointment of Statutory Auditors is not required to be ratified at every Annual General Meeting.
The Auditors in their Report to the members have given one qualified opinion and the response of your Directors
with respect to it is as follows:
Management response to the audit qualification:
As directed by the Central Government, the Company has made a fresh application vide SRN G48292304 dated
14.07.2017 seeking the approval of the Central Government for the earlier appointment of Ms. Tara Thiagarajan as
the Chairman & Managing Director of the Company for a period of three years commencing from 26.02.2012 to
25.02.2015 under the Companies Act, 2013 and the same was approved vide MCA Letter SRN No.
G48292304/4/2017-CL-VII dated 15.06.2018.
The Company is in the process of submitting the additional applications to regularize her other two appointments
viz, revision of terms and conditions with effect from 01.10.2013 to 30.09.2016 and reappointment from 01.10.2016
to 30.09.2021 and is confident of obtaining the approval at the earliest.
Secretarial Auditor
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr V Ramasubramanian,
Practising Company Secretary to undertake the Secretarial Audit of the Company.
The Secretarial Audit Report obtained from Mr V Ramasubramanian, Practising Company Secretary is attached as
Annexure V and forms part of this Report.
The Secretarial Auditor in his Report to the members has given three qualified opinions and the response of your
Directors with respect to it is as follows:
Management response to the qualification of the Secretarial Auditor:
1. Approval of Central Government for appointment of Ms. Tara Thiagarajan as Chairman and Managing Director:
As directed by the Central Government, the Company has made a fresh application vide SRN G48292304 dated
14.07.2017 seeking the approval of the Central Government for the earlier appointment of Ms. Tara Thiagarajan
as the Chairman & Managing Director of the Company for a period of three years commencing from 26.02.2012 to
25.02.2015 under the Companies Act, 2013 and the same was approved vide MCA Letter SRN No.
G48292304/4/2017-CL-VII dated 15.6.2018.
The Company is in the process of submitting the additional applications to regularize her other two appointments
viz, revision of terms and conditions with effect from 01.10.2013 to 30.09.2016 and reappointment from
01.10.2016 to 30.09.2021 and is confident of obtaining the approval at the earliest.
2. Appointment of Independent Director on the Board of Directors:
The Company is in the process of identifying a suitable person with requisite attributes as envisaged in section
149 (6) of the Companies Act, 2013 to fill the vacancy caused by the resignation of Mr. Puneet Agarwal and is
confident of appointing the Independent Director at the earliest.
Director’s Report
21Madura Micro Finance
3. Appointment of Independent Director on the Nomination and Remuneration Committee:
The Company is in the process of identifying a suitable person as envisaged in Section 178 (1) of the Companies
Act, 2013 to fill the vacancy caused by the resignation of Mr. Puneet Agarwal and is confident of appointing the
Independent Director at the earliest.
Conservation of Energy, Technology Absorption and Foreign Exchange Outgo
The particulars prescribed under clause (m) of sub section (3) of Section 134 of the Companies Act, 2013 read with
Rule 8 (3) of the Companies (Accounts) Rules, 2014 of the following:
In view of the nature of activities that are being carried out by the Company, the particulars prescribed under clause
(m) of sub section (3) of Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules 2014 on
conservation of energy and technology absorption are not applicable to the Company.
During the year, the Company did not have any foreign exchange earnings and had an outgo of INR 27.43 million.
Particulars of Loans, Guarantees and Investments
The company has not given any loans/guarantees as covered under provisions of Section 186 of the Companies Act,
2013 during the year.
Corporate Social Responsibility (CSR) Policy
Pursuant to the provisions of section 135 and Schedule VII of the Companies Act, 2013, CSR Committee has been
constituted and the said committee has recommended and the Board has approved a policy on Corporate Social
Responsibility (CSR).
For the financial year 2017-18, your Company is required to spend an amount of INR 7.35 million towards CSR. The
detailed report on CSR is attached as Annexure I.
Related Party Transactions:
All Related Party Transactions that were entered into during the Financial Year ended 31st March, 2018 were on an
arm's length basis and were in the ordinary course of business.
The particulars of contracts or arrangements with related parties referred to in sub section (1) of Section 188
entered by the Company during the financial year ended 31st March, 2018 is annexed hereto as Annexure IV in
prescribed Form AOC-2 and forms part of this report.
Management Discussion and Analysis Report
The Management discussion and analysis report is annexed hereto as Annexure VII and forms part of this report.
Extract of Annual Return
As required pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management
and Administration) Rules, 2014, an extract of Annual Return in Form MGT 9 is annexed hereto as Annexure II.
Employees' Particulars in terms of Section 134 read with Rules of the Companies Act, 2013
There were no employees in the Company whose particulars are required to be given under Section 197 of the
Companies Act, 2013 read with Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013
The Company has in place a policy in line with requirements of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 that covers all employees. An Internal Complaints Committee has
Director’s Report
22 Madura Micro Finance
been set up to redress complaints received regarding sexual harassment. No complaints regarding sexual
harassment have been received during the financial year.
Acknowledgement
Your Directors take this opportunity to place on record their appreciation to all employees for their hard work,
spirited efforts, dedication and loyalty to the Company which has helped the Company maintain its growth.
The Directors also wish to place on record their appreciation for the support extended by the Reserve Bank of India,
other regulatory and Government bodies, Company's Auditors, customers, bankers, promoters and shareholders.
For and on behalf of the board
Tara ThiagarajanChairman and Managing Director
Place of Signature : Chennaird23 July 2018
Director’s Report
23Madura Micro Finance
Annexure I
Corporate Social Responsibility Report
1. Company's CSR Policy:
i) Madura Micro Finance Limited (MMFL) believes that in alignment with its vision, it will continue to enhance
value through its CSR initiatives and promote social sustainability, sustainable development of the
environment and social welfare of the people and society at large, more specifically for the deprived and
underprivileged persons.
ii) This policy encompasses the Company's philosophy for giving back to society as a corporate citizen and lays
down the guidelines and mechanism for undertaking socially useful programmes for the welfare &
sustainable development of the community at large, is titled as the “MMFL CSR Policy”.
iii) In keeping with the Company's belief in the positive benefits of promoting community health including both
cognitive health and preventive healthcare, its CSR initiatives were focused on these areas.
iv) The Company has also given preference to the local area where it operates by contributing to a project for
restoration of a charismatic wetland of the city of Chennai.
2. Composition of the CSR Committee:
Ms. Tara Thiagarajan
Mr. N C Sarabeswaran (Independent Director)
Mr. Ajit Thomas
Chairperson
Member
Member
3. Average Net Profit of the Company for last three financial years:
553.43
309.50
239.08
1102.01
367.34
Financial Year Net Profit before tax and exceptional items computed
as per section 198 of the Companies Act, 2013 (INR million)
2016-17
2015-16
2014-15
Total
Average Net Profit for the last 3 years
4. Prescribed CSR Expenditure (2% of the amount as in item 3 above): INR 7.35 million.
5. Details of CSR spent during the financial year
(a) Total amount to be spent for the financial year: INR 7.35 million
(b) Amount spent: INR 5.87 million
(c) Amount unspent: INR 1.48 million
(d) The manner in which the amount spent during the financial year is attached below.
24 Madura Micro Finance
6. In case the Company has failed to spend the two percent, of the average net profit of the last three
financial years or any part thereof, the Company shall provide the reasons for not spending the amount
in its Board report.
The Company's primary focus is on promoting community health including both cognitive health and preventive
healthcare. Major portion of the CSR budget has been allocated for the Company's project with PHFI on cognitive
health and preventive healthcare. The amount spent on this project depends upon the completion of various
stages of the said project. For this reason, during the year, the Company's spend on the CSR activities has been
less than the limits prescribed under Companies Act, 2013.The Company will focus to utilise the unspent CSR
funds in future on appropriate projects with the approval of the Board of Directors.
7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR policy
is in compliance with CSR objectives of and policy of the Company.
We hereby declare that implementation of the CSR policy are in compliance with CSR objective and policy of the
Company.
Ms. Tara ThiagarajanChairperson, CSR Committee
Annexure I
25Madura Micro Finance
For and on behalf of the board
Tara ThiagarajanChairman and Managing Director
Place of Signature : ChennairdDate: 23 July 2018
Sector in
which the
project is
covered
Projects or
programs
(1) Local area or
other
(2) Specify the
State and district
where projects or
programs was
undertaken
Amount
outlay
(budget)
project
or
program
wise
(INR)
Amount
spent on the
projects or
programs
(INR)
Cumulative
expenditure
upto the
reporting
period
(INR)
Amount Spent:
Direct or
through
implementing
agency.*
* Details of
implementing
agency
Rewari, Haryana 15.00 2.50 4.06 * Public Health
Foundation of
India
Promoting
health care
including
preventive
healthcare
(Amount in million)
1.56
Direct Over
head
CSR project
or activity
identified
Collaborative
Research on
Cognitive
Health
Development
S.No
1.
Chennai,
Tamil Nadu
1.50 1.50 1.50 * Care Earth
Trust
Ensuring
environmental
sustainability,
conservation of
natural
resources and
maintaining
quality of soil,
air and water
NilRestoring a
charismatic
wetland of the
city of
Chennai viz.
Pallikaranai
Marsh.
2.
Tamil Nadu
Trichy, Ariyalur,
Perambalur,
Tiruvannamalai,
Villupuram, Tirupur,
Krishnagiri, Theni,
Dharamapuri, Tanjore,
Madurai,Virudhunagar,
Ramanathapuram
Sivagangai,Pudukottai,
Dindigul, Tirunelveli,
Salem, Namakkal,
Kanniyakumari,
Tiruvarur, Chennai,
Nagapattinam,
Cuddalore,
Chidambaram
Maharashtra
Pune, Kolhapur and
Sangli.
Karnataka
Dharwad, Koppal,
Belgaum, Gadag and
Bellary
Kerala
Thiruvananthapuram
0.16 0.31 DirectlyPromoting
health care
including
preventive
healthcare and
ensuring
environmental
sustainability
0.15Health
Camps& Tree
plantation
activities
3.
Annexure I
26 Madura Micro Finance
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
As on financial year ended on 31.03.2018
Pursuant to Section 92 (3) of the Companies Act, 2013 and
rule 12(1) of the Company (Management & Administration) Rules, 2014.
U65929TN2005PLC057390
September 2, 2005
Madura Micro Finance Limited
Company Limited by shares
India Non-Government Company
(Non-Banking Financial Company)
36, II Main Road, Kasturba Nagar, Adyar, Chennai 600 020
Phone: +91 44 4211 6843 email: [email protected]
website: www.maduramicrofinance.co.in
Debt Listed Company
Bigshare Services Private Limited
E-2 & 3, Ansa Industrial Estate, Saki-Vihar Road, Sakinaka,
Andheri(E), Mumbai-400 072 Phone: 022-40430200
1. CIN
2. Registration Date
3. Name of the Company
4. Category/
Sub-category of the Company
5. Address of the Registered office &
contact details
6. Whether listed company
7. Name, Address & contact details of the
Registrar & Transfer Agent, if any.
I. REGISTRATION & OTHER DETAILS:
Name and Description of main
products / services
NIC Code of the
Product/service
% to total turnover
of the company
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Micro Finance 96.16
Name and address
of the Company CIN/GLN
Holding/Subsidiary/
Associate company
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Madura Micro
Education Private
Limited
U80301TN2013PTC091745 2(87)
% of
shares held
Applicable
Section
Subsidiary 100
(All the business activities contributing 10 % or more of the total turnover of the company shall be stated)
S.
N0
1.
S.
N0
1.
Annexure 2
27Madura Micro Finance
649
3
64
,36
6
36
4,3
66
- -
36
4,3
66
-
49
5,6
67
49
5,6
67
CA
TE
GO
RY
OF
SH
AR
EH
OL
DE
RS
NO
. O
F
SH
AR
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H
EL
D A
T
TH
E
BE
GIN
NIN
G
OF
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EA
R [
AS
ON
31
-MA
RC
H-2
01
7]
NO
. O
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RE
S H
EL
D A
T T
HE
EN
D O
F T
HE
YE
AR
[A
S O
N 3
1-M
AR
CH
-20
18
]
De
ma
tP
hy
sica
lTo
tal
% o
f To
tal
(I)
CA
TE
GO
RY
-WIS
E S
HA
RE
HO
LD
ING
IV.
S
HA
RE
HO
LD
ING
PA
TT
ER
N (
EQ
UIT
Y S
HA
RE
CA
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AL B
RE
AK
UP
AS
PE
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EN
TAG
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L E
QU
ITY
)
3
00
,10
0
30
0,1
00
2
,44
2,1
99
2,4
42
,19
9
2
,74
2,2
99
-
8
65
,91
6
86
5,9
16
A.
PR
OM
OT
ER
S
(1)
ind
ian
a)
In
div
idu
al/
HU
F
b)
Ce
ntr
al G
ovt
c) S
tate
Go
vt(
s)
d)
Bo
die
s C
orp
.
e)
Ba
nk
s /
FI
f) A
ny o
the
r
Su
b T
ota
l (A
) (1
)
(2)
Fo
reig
n
a)
NR
I In
div
idu
als
b)
Oth
er
Ind
ivid
ua
ls
c) B
od
ies
Co
rp.
d)
An
y o
the
r
Su
b T
ota
l (A
) (2
)
TO
TA
L (
A)
B.
PU
BL
IC S
HA
RE
HO
LD
ING
1.
In
stit
uti
on
s
a)
Mu
tua
l Fu
nd
s
b)
Ba
nk
s /
FI
c) C
en
tra
l G
ovt
d)
Sta
te G
ovt(
s)
e)
Ve
ntu
re C
ap
ita
l Fu
nd
s
f) I
nsu
ran
ce C
om
pa
nie
s
g)
FII
s
h)
Fo
reig
n V
en
ture
Ca
pit
al Fu
nd
s
i) O
the
rs -
Tru
st
Su
b-t
ota
l (B
)(1
):-
3
44
,16
6
34
4,1
66
-
-
34
4,1
66
-
49
5,6
67
49
5,6
67
6
44
,26
6
6
44
,26
6
2
,44
2,1
99
2
,44
2,1
99
3
,08
6,4
65
8
65
,91
6
4
95
,66
7
1,3
61
,58
3
9.6
2
9.6
2%
36
.46
36
.46
46
.08
12
.93
7.4
0
20
.33
De
ma
tP
hy
sica
lTo
tal
% o
f To
tal
31
5,0
50
31
5,0
50
2
,33
0,5
74
2,3
30
,57
4
2,6
45
,62
4
86
5,9
16
86
5,9
16
6
79
,41
6
67
9,4
16
2,3
30
,57
4
2
,33
0,5
74
3,0
09
,99
0
86
5,9
16
49
5,6
67
1,3
61
,58
3
9.4
4
9.4
4
32
.39
32
.39
41
.83
12
.04
6.8
9
18
.93
% C
HA
NG
E
DU
RIN
G
TH
E Y
EA
R
-0.1
8
-0.1
8
-4.0
7
-4.0
7
-4.2
5
-0.8
9
-0.5
1
-1.4
0
28 Madura Micro Finance
CA
TE
GO
RY
OF
SH
AR
EH
OL
DE
RS
NO
. O
F
SH
AR
ES
H
EL
D A
T
TH
E
BE
GIN
NIN
G
OF
TH
E Y
EA
R [
AS
ON
31
-MA
RC
H-2
01
7]
NO
. O
F S
HA
RE
S H
EL
D A
T T
HE
EN
D O
F T
HE
YE
AR
[A
S O
N 3
1-M
AR
CH
-20
18
]
De
ma
tP
hy
sica
lTo
tal
% o
f To
tal
(I)
CA
TE
GO
RY
-WIS
E S
HA
RE
HO
LD
ING
IV.
S
HA
RE
HO
LD
ING
PA
TT
ER
N (
EQ
UIT
Y S
HA
RE
CA
PIT
AL B
RE
AK
UP
AS
PE
RC
EN
TAG
E O
F T
OTA
L E
QU
ITY
)
De
ma
tP
hy
sica
lTo
tal
% o
f To
tal
2.
No
n-I
nst
itu
tio
ns
a)
Bo
die
s C
orp
.
i)
In
dia
n
ii)
Ove
rse
as
b)
In
div
idu
als
i)
In
div
idu
al sh
are
ho
lde
rs
h
old
ing
no
min
al sh
are
c
ap
ita
l u
pto
Rs.
1 la
kh
ii)
In
div
idu
al sh
are
ho
lde
rs
h
old
ing
no
min
al sh
are
ca
pit
al
in
exce
ss o
f R
s 1
la
kh
(N
RI)
c)
Oth
ers
(sp
ecif
y)
Ove
rse
as
Co
rpo
rate
Bo
die
s
Fo
reig
n N
ati
on
als
Cle
ari
ng
Me
mb
ers
Tru
sts
Fo
reig
n B
od
ies
- D
R
Su
b-t
ota
l (B
)(2
):-
To
tal
Pu
bli
c (
B)
C.
Sh
are
s h
eld
by
Cu
sto
dia
n f
or
GD
Rs
& A
DR
s
GR
AN
D T
OTA
L (
A+
B+
C)
0
64
,65
0
30
0,0
00
36
4,6
50
86
0,3
17
1
,23
0,5
66
1,7
10
,00
6
12
4,1
67
-
1,8
34
,17
3
2,7
00
,08
9
5,4
42
,38
8
25
.53
%
3.5
8%
4.4
8%
33
.59
%
53
.92
%
10
0.0
0%
2,3
18
,87
1
13
9,6
67 0
2
,45
8,5
38
3
,32
4,4
54
1
39
,66
7
1,7
10
,00
6
23
9,4
67
30
0,0
00
2,2
49
,47
3
3,6
11
,05
6
6
,69
7,5
21
0
11
5,3
00
30
0,0
00
41
5,3
00
91
0,9
67
1
,25
5,1
33
32
.23
2.8
4%
4.1
7%
39
.24
%
58
.17
%
10
0.0
0%
2,3
18
,87
1
20
4,3
17
30
0,0
00
2
,82
3,1
88
4
,18
4,7
71
7
,19
4,7
61
% C
HA
NG
E
DU
RIN
G
TH
E Y
EA
R
6.7
0
-0.7
4%
-0.3
1%
5.6
5%
4.2
5%
29Madura Micro Finance
Sh
are
ho
lde
rs N
am
eS
HA
RE
HO
LD
ING
AT
TH
E B
EG
INN
ING
OF
TH
E
YE
AR
[A
S O
N 3
1-M
AR
CH
-20
17
]
SH
AR
E H
OL
DIN
G A
T T
HE
EN
D O
F T
HE
YE
AR
[AS
ON
31
-MA
RC
H-2
01
8]
No
. o
f
Sh
are
s
% o
f to
tal
Sh
are
s o
f
the
co
mp
an
y
% o
f S
ha
res
Ple
dg
ed
/
en
cu
mb
ere
d
to t
ota
l sh
ar e
s
Mr.
Ash
ok
Mir
za
Mr.
R R
am
ara
j
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
No
. o
f
Sh
are
s
% o
f to
tal
Sh
are
s o
f
the
co
mp
an
y
% o
f S
ha
res
Ple
dg
ed
/
en
cu
mb
ere
d
to t
ota
l sh
are
s
Ms.
Ta
ra T
hia
ga
raja
n
Mr.
M N
ara
ya
na
n
TO
TA
L
2,4
42
,19
9
10
0,1
00
20
0,0
00
34
4,1
66
36
.46
%
1.4
9%
2.9
9%
5.1
4%
NIL
NIL
NIL
NIL
3,0
86
,46
54
6.0
8%
NIL
2,3
30
,57
4
11
5,0
50
20
0,0
00
36
4,3
66
31
.49
%
1.5
5%
2.7
0%
4.9
2%
NIL
NIL
NIL
NIL
3,0
09
,99
04
0.6
6%
NIL
(II)
SH
AR
EH
OL
DIN
G O
F P
RO
MO
TE
R
(III
) C
HA
NG
E I
N P
RO
MO
TE
RS
SH
AR
EH
OL
DIN
G
(PL
EA
SE
SP
EC
IFY
, IF
TH
ER
E I
S N
O C
HA
NG
E)
PA
RT
ICU
LA
RS
DA
TE
RE
AS
ON
SH
AR
EH
OL
DIN
G A
T T
HE
BE
GIN
NIN
G O
F T
HE
YE
AR
[A
S O
N 3
1-M
AR
CH
-20
17
]
CU
MU
LA
TIV
E
SH
AR
EH
OL
DIN
G D
UR
ING
TH
E Y
EA
R
[AS
ON
31
-MA
RC
H-2
01
8]
NO
. O
F S
HA
RE
S%
OF
TO
TA
L S
HA
RE
SN
O.
OF
SH
AR
ES
% O
F T
OTA
L S
HA
RE
S
At
the
en
d o
f th
e y
ea
r
01
-04
-17
3
,08
6,4
65
46
.08
%
3,0
86
,46
54
6.0
8%
15
-06
-17
11
1,6
25
-
31
-03
-17
3,0
09
,99
04
0.6
6 %
3
,00
9,9
90
40
.66
%
SA
LE
(IV
) S
HA
RE
HO
LD
ING
PA
TT
ER
N O
F T
OP
TE
N S
HA
RE
HO
LD
ER
S (O
TH
ER
TH
AN
DIR
EC
TO
RS
, P
RO
MO
TE
RS
AN
D H
OLD
ER
S O
F G
DR
S A
ND
AD
RS
)
DA
TE
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NC
RE
AS
E/
DE
CR
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SE
IN
SH
AR
EH
OL
DIN
G
RE
AS
ON
SH
AR
EH
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DIN
G A
T T
HE
BE
GIN
NIN
G
OF
TH
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EA
R
CU
MU
LA
TIV
E
SH
AR
EH
OL
DIN
G
DU
RIN
G T
HE
YE
AR
NO
. O
F S
HA
RE
S%
OF
TO
TA
L S
HA
RE
S
(I)
E
lev
ar
Eq
uit
y M
au
riti
us
(II)
M
art
i G
Su
bra
hm
an
ya
m
(III
) M
ad
ura
Mic
rocre
dit
Em
plo
ye
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We
lfa
re T
rust
(IV
) M
V S
ub
bia
h
At
the
be
gin
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f th
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r
Ch
an
ge
s d
uri
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th
e y
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r
At
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en
d o
f th
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ea
r
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
At
the
en
d o
f th
e y
ea
r
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
At
the
en
d o
f th
e y
ea
r
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
At
the
en
d o
f th
e y
ea
r
FO
R E
AC
H O
F T
HE
TO
P 1
0
SH
AR
EH
OL
DE
RS
NO
. O
F S
HA
RE
S%
OF
TO
TA
L S
HA
RE
S
86
5,9
16
8
65
,91
6
30
0,0
00
-
30
0,0
00
49
5,6
67
4
95
,66
7
10
0,0
00
-
10
0,0
00
12
.93
%
12
.04
%
4.4
8%
0.0
0%
4.0
5%
7.4
0%
6.7
0%
1.4
9%
0.0
0%
1.3
5%
86
5,9
16
-
86
5,9
16
30
0,0
00
-
30
0,0
00
49
5,6
67
-
4
95
,66
7
10
0,0
00
-
10
0,0
00
01
-04
-17
31
-03
-18
01
-04
-17
31
-03
-18
11
1,6
25
-
Ch
an
ge
s d
uri
ng
th
e y
ea
r0
8-0
3-1
83
5,1
50
-P
UR
CH
AS
E3
5,1
50
-
01
-04
-17
31
-03
-18
01
-04
-17
31
-03
-18
% C
HA
NG
E I
N
SH
AR
E H
OL
DIN
G
DU
RIN
G T
HE
YE
AR
12
.93
%
12
.04
%
4.4
8%
0.0
0%
4.0
5%
7.4
0%
6.7
0%
1.4
9%
0.0
0%
1.3
5%
S.
NO
S.
No
1.
2.
3.
4.
-4.9
7%
0.0
6%
-0.2
9%
-0.2
2%
-5.4
2%
1.
2.
4. S.
NO
3.
30 Madura Micro Finance
(IV
) M
r. M
oh
an
Ed
dy
(V
) M
r. M
.Na
ray
an
an
(V)
SH
AR
EH
OL
DIN
G O
F D
IRE
CT
OR
S A
ND
KE
Y M
AN
AG
ER
IAL
PE
RS
ON
NE
L:
DA
TE
WIS
E I
NC
RE
AS
E/
DE
CR
EA
SE
IN
SH
AR
EH
OL
DIN
G
RE
AS
ON
SH
AR
EH
OL
DIN
G A
T T
HE
BE
GIN
NIN
G
OF
TH
E Y
EA
R
CU
MU
LA
TIV
E
SH
AR
EH
OL
DIN
G
DU
RIN
G T
HE
YE
AR
NO
. O
F S
HA
RE
S%
OF
TO
TA
L S
HA
RE
S
(I)
M
s. T
ara
Th
iag
ara
jan
(II)
M
r. R
Ra
ma
raj
(III
) M
r. A
sho
k M
irza
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
At
the
en
d o
f th
e y
ea
r
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
At
the
en
d o
f th
e y
ea
r
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
At
the
en
d o
f th
e y
ea
r
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
At
the
en
d o
f th
e y
ea
r
At
the
be
gin
nin
g o
f th
e y
ea
r
Ch
an
ge
s d
uri
ng
th
e y
ea
r
At
the
en
d o
f th
e y
ea
r
SH
AR
EH
OL
DIN
G O
F E
AC
H
DIR
EC
TO
RS
AN
D E
AC
H K
EY
MA
NA
GE
RIA
L P
ER
SO
NN
EL
NO
. O
F S
HA
RE
S%
OF
TO
TA
L S
HA
RE
S
2,4
42
,19
9
2
28
,00
1
2,3
30
,57
4
10
0,1
00
14
,95
0
11
5,1
05
0
20
0,0
00
Nil
20
0,0
00
24
,16
7
1
5,5
00
39
,66
7
34
4,1
66
2
0,2
00
36
4,3
66
36
.46
%
-4.9
7%
31
.49
%
1.4
9%
0.0
6%
1.5
5%
2.9
9%
0.0
0%
2.7
0%
0.3
6%
0.1
8%
0.5
4%
5.1
4%
0.2
2%
4.9
2%
2,4
42
,19
9
N
il
2
,33
0,5
74
10
0,1
00
Nil
11
5,0
50
20
0,0
00
Nil
20
0,0
00
24
,16
7
Nil
3
9,6
67
34
4,1
66
Nil
36
4,3
66
V.
IND
EB
TE
DN
ES
SIn
de
bte
dn
ess
of
the
Co
mp
an
y in
clu
din
g in
tere
st o
uts
tan
din
g/a
ccru
ed
bu
t n
ot
du
e f
or
pa
ym
en
t.
(a
) In
de
bte
dn
ess
at
the
be
gin
nin
g o
f th
e f
ina
ncia
l y
ea
r
(b)
Ch
an
ge
in
In
de
bte
dn
ess
du
rin
g t
he
fin
an
cia
l y
ea
r
(c)
Ind
eb
ted
ne
ss a
t th
e e
nd
of
the
fin
an
cia
l y
ea
r
PA
RT
ICU
LA
RS
Pri
nci
pa
l A
mo
un
t
Inte
rest
du
e b
ut
no
t p
aid
Inte
rest
acc
rue
d b
ut
no
t d
ue
To
tal
(i+
ii+
iii)
* A
dd
itio
n
* R
ed
uct
ion
Ne
t C
ha
ng
e
Pri
nci
pa
l A
mo
un
t
Inte
rest
du
e b
ut
no
t p
aid
Inte
rest
acc
rue
d b
ut
no
t d
ue
To
tal
(i+
ii+
iii)
SE
CU
RE
D L
OA
NS
EX
CL
UD
ING
DE
PO
SIT
SU
NS
EC
UR
ED
LO
AN
SD
EP
OS
ITS
TO
TA
L I
ND
EB
TE
DN
ES
S
6,9
08
,73
1,1
46
.00
Nil
51
,96
5,4
00
.00
6,9
60
,69
6,5
46
.00
5
,76
2,5
25
,58
7.0
0
3
,91
9,1
02
,26
1.0
0
1,8
43
,42
3,3
26
.00
8
,72
8,4
38
,63
6.0
0
Nil
7
5,6
81
,23
6.0
0
8,8
04
,11
9,8
72
.00
- - -
NIL
- -
NIL
- - -
NIL
7,4
08
,73
1,1
46
.00 -
52
,35
5,8
11
.00
7,4
61
,08
6,9
57
.00
5,7
62
,52
5,5
87
.00
3,9
19
,49
2,6
72
.00
1,8
43
,03
2,9
15
.00
9,2
28
,43
8,6
36
,.0
0
Nil
7
5,6
81
,23
6.0
0
9,3
04
,11
9,8
72
.00
(Am
ou
nt
Rs/
La
kh
s)
50
0,0
00
,00
0.0
0 -
39
0,4
11
.00
NIL
-
39
0,4
11
.00
3
90
,41
1.0
0
5
00
,00
0,0
00
.00
-
-
5
00
,00
0,0
00
.00
SA
LE
15
.06
.20
17
PU
RC
HA
SE
08
.03
.20
18
PU
RC
HA
SE
08
.03
.20
18
PU
RC
HA
SE
08
.03
.20
18
36
.46
%
31
.49
%
1.4
9%
Nil
1.5
5%
2.9
9%
Nil
2.7
0%
0.3
6%
0
.54
%
5.1
4%
Nil
4.9
2%
31Madura Micro Finance
B. Remuneration to other Director
Particulars of Remuneration Name of Directors
Independent Directors
Fee for attending Board/Committee meetings
Commission
Others, please specify
Total (1)
Independent Directors
Fee for attending Board/Committee meetings
Commission
Others, please specify
Total (2)
Other Non-Executive Directors
Fee for attending Board/Committee meetings
Commission
Others, please specify
Total (3)
Other Non-Executive Directors
Fee for attending Board/Committee meetings
Commission
Others, please specify
Total (4)
Total (B) = (1+2+3+4)
N C Sarabeswaran
Siva Kameswari Vissa
R Ramaraj
Ashok Mirza
975,000.00
975,000.00
800,000.00
800,000.00
800,000.00
800,000.00
300,000.00
300,000.00
2,875,000.00
Total Amount (Rs)
Name of MD/WTD/ Manager Total Amount
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Particulars of Remuneration
Name
Designation
Gross salarya) 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
Stock Option
Sweat Equity
Commission
- as % of profit
- others, specify
Others, please specify (Variable Pay)
TOTAL (A)
Ms. Tara Thiagarajan
Managing Director
6,729,600.00
-
6,729,600.00
Mr. Mohan Eddy
Whole-time Director
4,913,000.00
2,000,000.00
6,913,000.00
11,642,600.00
2,000,000.00
13,642,600.00
S.
NO1.
2.
3.
4.
.
S.NO
Annexure 2
2.
3.
4.
5.
1.
Annexure 2
32 Madura Micro Finance
Annexure 2
Name of Key Managerial Personnel Total Amount
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD
Particulars of Remuneration
Name
Designation
Gross salarya) 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
Stock Option
Sweat Equity
Commission
- as % of profit
- others, specify
Others - Variable pay
TOTAL
M Narayanan
CFO
6,600,000.00
2,000,000.00
8,600,000.00
Sanin Panicker
CS
637,271.00
53,100.00
690,371.00
S.NO
1.
2.
3.
4.
5.
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL
SECTION OF
THE
COMPANIES
ACT
A. COMPANY
B. DIRECTORS
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
Penalty
Punishment
Compounding
Penalty
Punishment
Compounding
TYPE BRIEF
DESCRIPTION
DETAILS OF
PENALTY/
PUNISHMENT/
COMPOUNDING
FEES IMPOSED
AUTHORITY
[RD / NCLT/
COURT]
APPEAL
MADE, IF
ANY
(GIVE
DETAILS)
Place of Signature : ChennairdDate: 23 July 2018
For and on behalf of the Board
Tara ThiagarajanChairman and Managing Director
33Madura Micro Finance
7,237,271.00
2,053,100.00
9,290,371.00
Annexure 3
Form AOC-1(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies
(Accounts) Rules, 2014)
STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF
SUBSIDIARIES/ASSOCIATE COMPANIES/JOINT VENTURES
PART “A”: SUBSIDIARIES
(Information in respect of each subsidiary to be presented with amounts in Rs.)
S.NO Particulars Details
Name of the subsidiary
Reporting period for the subsidiary concerned, if different
from the holding company's reporting period
Reporting currency and Exchange rate as on the last date of
the relevant Financial year in the case of foreign subsidiaries
Share Capital
Reserves & Surplus
Total Assets
Total Liabilities
Investments
Turnover
Profit before taxation/(Loss)
Provision for taxation
Profit/(Loss) after taxation
Proposed Dividend
% of shareholding
Part “B”: Associates and Joint Ventures: Not Applicable
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Madura Micro Education Private Limited
NA
NA
1,49,00,000
(4,00,76,651)
35,99,332
35,99,332
NIL
67,08,400
(67,16,911)
NIL
(67,16,911)
NIL
100%
For and on behalf of the board
Tara ThiagarajanChairman and Managing Director
Place of Signature : ChennairdDate: 23 July 2018
34 Madura Micro Finance
Form AOC-2(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the
Companies (Accounts) Rules, 2014.
Form for Disclosure of particulars of contracts/arrangements entered into by the
company with related parties referred to in sub section (1) of section 188 of the
Companies Act, 2013 including certain arm's length transaction under third proviso
thereto.
S.No Particulars Details
Name(s) of the related party and nature of the relationship
Nature of contracts/agreements/transaction
Salient features of the contracts or arrangements or transactions including
the value, if any
Justification for entering in to such contracts or arrangements or transactions
Date of approval by the Board
Amount paid as advances, if any
Date on which a special resolution was passed in General Meeting as required
under first proviso to section 188
1. Details of contracts or arrangements or transactions not at Arm's length basis.
1.
2.
3.
4.
5.
6.
7.
Name(s) of the related party and nature of the
relationship
Nature of contracts/ arrangements/ transaction
Duration of contracts/ arrangements/ transaction
Salient terms of the contracts or arrangements or
transaction including the value, if any
Date of approval by the Board
Amount paid as advances, if any
2. Details of contracts or arrangements or transactions at Arm's length basis.
1.
2.
3.
4.
5.
6.
S.No Particulars Details
Name(s) of the related party and nature of the
relationship
Nature of contracts/ arrangements/ transaction
Duration of contracts/ arrangements/ transaction
Salient terms of the contracts or arrangements or
transaction including the value, if any
Date of approval by the Board
Amount paid as advances, if any
Scimergent Analytics and Education Private
Limited
Provision for Management Service.
One Year.
To avail management services to oversee the
task implementation. Amount paid: 36 lacs
01.08.2017
Nil
1.
2.
3.
4.
5.
6.
S.No Particulars Details
Scisphere Analytics India Private Limited
Subscription of user licenses.
As per product terms and conditions.
To explore the Scisphere platform for data
analytics.
Amount paid: 44.85 lacs
26.05.2017, 06.11.2017, 18.01.2018
Nil
Annexure 4
Nil
Nil
Nil
Nil
Nil
Nil
Nil
35Madura Micro Finance
Name(s) of the related party and nature of the
relationship
Nature of contracts/ arrangements/ transaction
Duration of contracts/ arrangements/ transaction
Salient terms of the contracts or arrangements or
transaction including the value, if any
Date of approval by the Board
Amount paid as advances, if any
1.
2.
3.
4.
5.
6.
S.No Particulars Details
Scimergent Analytics and Education Private
Limited
IT Support.
No specific duration.
IT support, automation and maintenance
services. Amount paid: 118.74 lacs
18.01.2018
Nil
Name(s) of the related party and nature of the
relationship
Nature of contracts/ arrangements/ transaction
Duration of contracts/ arrangements/ transaction
Salient terms of the contracts or arrangements or
transaction including the value, if any
Date of approval by the Board
Amount paid as advances, if any
1.
2.
3.
4.
5.
6.
S.No Particulars Details
Ms. Pamela Mohan
Lease Agreement.
One Year.
To use the residential property on rental
basis.
Amount paid: 16.20 lacs
06.11.2017
Nil
For and on behalf of the board
Tara ThiagarajanChairman and Managing Director
Place of Signature : ChennairdDate: 23 July 2018
Annexure 4
36 Madura Micro Finance
Annexure 5
Form No MR-3
(Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014)
I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to
good corporate practices byM/s Madura Micro Finance Limited (hereinafter called the “Company”). The 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'sBooks, Papers, Minute Books, Forms and Returns filed and other records
maintained by the Company and also the information provided 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 31stMarch 2018complied 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, Minutes Books, Forms and Returns filed and other records maintained by the
Company for the Financial Year ended on 31stMarch 2018 according to the provisions of:
Secretarial Audit Report
For the Financial Year ended 31stMarch 2018
To
The Members
M/s Madura Micro Finance Limited
No.36, II Main Road
Kasturba Nagar
Adyar
Chennai 600 020
The Companies Act, 2013 (the Act) and the Rules made thereunder;
The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the Rules made thereunder;
The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder.
ForeignExchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent
applicable to Foreign Direct Investment (FDI) and External Commercial Borrowings (ECB);
The Following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,
1992 (SEBI Act):
The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008, and
The Debt Listing Agreement with BSE Limited;
The Memorandum and Articles of Association; and
i.
ii.
iii.
iv.
v.
vi.
37Madura Micro Finance
38 Madura Micro Finance
Other applicable Laws: vii.
The Employees Provident Fund & Miscellaneous Provisions Act, 1952.
The Employees State Insurance Act, 1948
The Maternity Benefit Act, 1961
The Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013
The Payment of Bonus Act, 1965
The Payment of Gratuity Act, 1972
The Tamilnadu Labour Welfare Fund Act, 1972
The Tamilnadu Shops and Establishment Act, 1947:
a.
b.
c.
d.
e.
f.
g.
h.
I have also examined the compliance with the applicable clauses of the following:
Secretarial Standards issued by The Institute of Company Secretaries of India.
The Debt Listing Agreement entered by the Company with Bombay Stock Exchange Limited in respect of the
Secured / Unsecured Non-Convertible Debentures issued by the Company.
i.
ii.
During the period under audit, the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above subject to the following observation:
The Company's application to the Central Government for the reappointment ofMs Tara Thiagarajan as the
Chairman & Managing Director of the Company for a period of Five years commencing from 1.10.2016 to
30.9.2021 under Section 196 read with Clause (e) of Part I of Schedule V of the Companies Act, 2013 had been
rejected and closed vide MCA letter dated 10.4.2017 stating that the Company had not complied with Clause
(e) of Part I of Schedule XIII of the Companies Act, 1956 in respect of her earlier reappointmentsmade from
26thFebruary 2012.
Further, MCA has also stated that the onus of complying with the provisions of the Companies Act, 1956 and
2013 lies with the Company.
Consequently, the Company has made a fresh application vide SRN G48292304 dated 14.7.2017 seeking the
approval of the Central Government for her appointment as the Chairman & Managing Director of the
Company for a period of Three years commencing from 26.2.2012 to 25.2.2015 under the Act and the same
was approved vide MCA Letter SRN No. G48292304/4/2017-CL-VII dated 15.6.2018.
i.
Hence, the Company is advised to expeditiously initiate suitable action to regularize her other two
appointmentsviz. revision of terms and conditions with effect from 1.10.2013 to 30.9.2016 and reappointment
from 1.10.2016 to 30.9.2021.
Annexure 5
As the Company's Debentures are listed in Bombay Stock Exchange, in terms of the provisions of Section
149(4) of the Companies Act, 2013, the Company is required to have at least one-third of the total number of
Directors as Independent Directors.
Consequent to the resignation of Mr Puneet Agarwal, Independent Director, on 18th January 2018, the
Company continues to have only two Independent Directors on the Board which is not in compliance with the
above provisions.
ii.
Hence, the Company is advised to expeditiously initiate suitable action to regain compliance of the provisions of
the Act.
As the Company's Debentures are listed in Bombay Stock Exchange, in terms of the provisions of Section
178(1) of the Companies Act, 2013, the Nomination and Remuneration Committee (NRC) is required to have
three or more Non-Executive Directors out of which not less than one half shall be Independent Directors.
Consequent to the resignation of Mr Puneet Agarwal, Independent Director, on 18th January 2018, the NRC
continues to have only one Independent Director which is not in compliance with the above provisions.
iii.
Hence, the Company is advised to expeditiously initiate suitable action to regain compliance of the provisions of
the Act.
I further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors and Non-
Executive Directors except Independent Directors as mentioned above.
Adequate notice was given to all the 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.
Majority decision is carried through while the dissenting members' views, if any, are captured and recorded as part
of 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, there were no instances of:
Public / Right / Preferential Issue of Shares etc.
However, the Company has made issue of Equity Shares as well as Redeemable Non-Convertible Debentures
on Private Placement, which were in compliance with the provisions of the Companies Act, 2013.
Redemption / Buy-Back of Securities.
Major decisions taken by the members in pursuance to Section 180 of the Companies Act, 2013:
i.
ii.
iii.
Annexure 5
39Madura Micro Finance
40 Madura Micro Finance
In terms of the powers conferred on the Board of Directors of the Company under Section 180(1)(a) & (c) of the
Act and with the approval of the Board:
The Company has created security on the Current Assets and Immovable Properties of the Company for the
various borrowings made, which were well within the limits approved by the shareholders by Special
Resolution through Postal Ballot Process on 10th December 2016.
The Company has borrowed funds from Banks, Financial Institutions and Non-Banking Financial Companies,
which were well within the limits approved by the shareholders by Special Resolution at the Extraordinary
General Meeting held on 10th December 2016.
a.
b.
During the period under review, the Company has not entered into any Foreign Technical Collaboration
Agreement.
v.
iv.
V RamasubramanianCompany Secretary
ACS No.5890
COP No.11325
Place of Signature : ChennairdDate: 3 July 2018
Annexure 5
Details of remuneration as required to be provided under Section 197 of the Companies Act, 2013 read with
Rule 5 of Companies (Appointment and Qualification of Managerial Personnel) Rules, 2014
1. Ratio of Remuneration of each Director with Median
employees Remuneration.
The percentage increase in remuneration of each Director,
Chief Financial Officer, Chief Executive Officer, Company
Secretary or Manager, if any, in the financial year;
The percentage increase in the median remuneration of
employees in the financial year;
The number of permanent employees on the rolls of the
Company as on 31st March 2018.
Average percentile increase already made in the salaries of
employees other than the managerial personnel in the last
financial year and its comparison with the percentile
increase in the managerial remuneration and justification
thereof and point out if there are any exceptional
circumstances for increase in the managerial Remuneration.
Affirmation that the remuneration is as per the
remuneration policy of the Company.
(a) Managing Director – 47.72:1(b) Whole-time Director – 34.84:1
The increase in remuneration:Managing Director–3.70 %Whole-time Director –12.17 %Chief Financial Officer –14.28 %Company Secretary – 25%
1.32 %
1600 (excluding part time employees)
The Average increase in the salaries of
the employees other than the
managerial personnel in the last
financial year was 10% while the
increase in the remuneration of the
Chief Financial Officer was 14.28%.
The remuneration is as per the
remuneration policy of the Company.
2.
3.
4.
5.
6.
None of the Employees employed throughout the financial year, was in receipt of remuneration for that year which,
in the aggregate, was not less than Rupees One Crore and Two Lacs.
None of the employees 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 Rupees Eight Lac Fifty Thousand per month.
None of the employees employed throughout the financial year or part thereof, was in receipt of remuneration in
that year which, in the 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.
For and on behalf of the board
Tara ThiagarajanChairman and Managing Director
Place of Signature : ChennairdDate: 23 July 2018
Annexure 6
41Madura Micro Finance
Annexure 7
Management Discussion and Analysis
Industry Structure and Developments
In the last financial year, microfinance industry had seen strong growth despite the slowdown in the first half of the
year due to demonetization. The industry grew by 27%, with significant improvement in portfolio quality. The
industry has been successful in providing small ticket size credit accessible to women in the most unbanked and
underbanked regions of the country driving financial inclusion agenda forward. As per CRISIL Inclusix, financial
inclusion index of India surged from 50.1 in 2013 to 58.0 in 2016. In the credit dimension of the index, MFIs
contributed significantly to sharp 3.17 crore increase in new credit or loan accounts in fiscal 2016. There have been
favorable policy interventions such as microfinance institutions being converted into small finance banks, licensing
of payment banks, the inclusion of insurance, the rapid progress in Jan-Dhan accounts, and advances in use of
technology. For a cash-dependent sector like microfinance, demonetization necessitated MFIs to invest in
technology to better manage and track cashless electronic transactions.
Opportunities and Threats
The microfinance industry was built on the premise of providing last mile connectivity to remote locations.
Increased phone connectivity and adoption of technology offers new opportunities in reaching out to these far-
flung rural areas by reducing costs and increasing accessibility.
Pradhan Mantri Jan DhanYojana (PMJDY) success benefits microfinance industry. The financial literacy that
accompanies PMJDY has positive spill over effects in the microfinance sector, through an increase in credit and
loans. As previously unbanked people prove themselves capable of financial literacy and competency, the formal
credit industry is more likely to provide inclusive loans to those previously left out of the system.
Segment wise or product wise performance
The product wise performance comparison for the last two financial years are given below.
PRODUCT
Activity Term Loan
Business Development Loan
Certified Activity Loan
Entry Level Loan
Viyabaraviruthi Loan
Co-lending
SME Loan
5,007.10
305.73
191.22
5,205.62
34.99
283.72
3.97
4,451.18
90.55
183.76
3,415.83
58.79
-
-
MARCH 2017MARCH 2018
(Outstanding in INR million)
Outlook
The industry outlook in the coming years is positive and growth oriented. With government of India driving financial
inclusion agenda through various schemes, the industry is poised for strong growth in terms of demand for
financial services. Over the last year there has been a strong rise in equity funding from private players, NBFCs and
foreign investors. In addition to increasing the loan outstanding in micro finance industry by 38%, this funding
brought the cost of funds down and poised the industry for better utilisation of lending opportunities. The industry
has embarked on riding the digitization wave by adapting technology, systems and processes with capabilities to go
cashless and paperless.
42 Madura Micro Finance
Annexure 7
Risk and Concerns
The Company has identified various risks involved in the business and considering the key risk factors formulated a
risk management policy. The risk management policy of the Company is reviewed every year by the Board of
Directors of the Company. The Company has also put in place various procedures and processes to assess, monitor
and manage risk throughout the company.
Credit risk, operation risk, geographical risk, liquidity risk, interest rate risk, asset-liability management risk and
political risk are the major risks faced by the microfinance industry. The risk management committee of the
Company is in the process of framing a detailed risk management framework for clear understanding and
identification of various risks and to establish adequate review mechanism to monitor and control risks.
Internal Control Systems and their Adequacy
The key operations of the Company are centralised at the Corporate Office for better monitoring and control. In the
last financial year, we have done audits on information systems and cyber security to ensure that we have strong IT
systems in place for information security. The IT strategic committee based on these audit reports have
recommended a comprehensive Information systems and technology policy which was approved and adopted by
the Board of Directors.
The internal audit team share their reports to the Audit committee on quarterly basis for their review. The
committee ensures that effective systems are in place to monitor controls and implement recommendations. The
Company also has a compliance software to manage all the regulatory compliances, data management system to
ensure data privacy and integrated employee portal for better people management.
Discussion on Financial Performance with Operational Performance
The gross loan portfolio (GLP) of the Company crossed INR 10 billion in FY 18. The Company expanded its operation
to Bihar and Odisha in FY18 with a total of 282 branches across the country.
The active borrowers of the Company have also increased to 688,546 as compared to 515,104 in the previous year.
This has resulted in increase in the total revenue of the company to INR 2,331 million during the year 2017-18 as
compared to INR 1,795 million in the year 2016-17. The Profit after Tax of the Company was INR 398 million as
compared to INR 302 million in the previous year. The operational costs of the Company fell to 6.19% in FY 18.
Human Resource Development
As we continue our journey towards Excellence, the focus in the last year for the Organisation was growth through
entry into new markets. And hence all actions were aimed in that direction. The efforts started with setting up
operations in the states of Bihar and Odisha. From identifying the leadership team who would have a cultural
fitment to Madura, to ensuring attracting right talent for the mid and junior level managers up to setting up of
standard branches across the states. Apart from which training the field staff and on Madura processes were the
focal points of the year. The focus for the year was also to increase presence in existing states, hence ensuring right
leadership for all the regions / zones was also crucial. In order to build pipeline for the Organisation, fresh
management graduates were hired from various institutes, trained and absorbed into various functions. For the
first time we formalized the method of KRA setting for the field managers and introduced structured variable pay
scheme for corporate managers.
43Madura Micro Finance
44
Standalone Financial StatementsMadura Micro Finance
Auditors Report
INDEPENDENT AUDITOR'S REPORT
To the members of Madura Micro Finance Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Madura Micro Finance Limited ("the
Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the significant accounting policies and other
explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013
("the Act") with respect to the preparation of these standalone 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 maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting 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 controls, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone 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 the 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 a true and fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the 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 qualified
audit opinion on the standalone financial statements.
Basis for Qualified Opinion
As explained in Note no 27, the company's application to the Central Government for the reappointment of the
Managing Director for a period of 5 years commencing from 1.10. 2016 to 30.09.2021, under sec 196, read with
clause (e) of part 1 of Schedule V of The Companies Act 2013 has been rejected since the company has not
complied with cl (e) of part 1 of Schedule XIII of The Companies Act 1956, in respect of her earlier reappointment thmade from 26 February 2012. Company has applied in July 2017, for approval of her reappointment from
45Madura Micro Finance
2012 to 2015 with compounding and is awaiting approval, after which approval for current reappointment will
be sought. Pending receipt of Central Government approval, payment of Rs. 67.29 lacs has been made towards
Managing Director remuneration for the current year, in the accompanying financial statements.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the
effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone
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, of the state of affairs of the
Company as at 31st March, 2018, and its profit and its cash flows for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31st March 2017 prepared in
accordance with AS included in this Statement have been audited by the predecessor auditor. The report of the
predecessor auditor on the comparative financial information dated 26th May 2017 (for the year ended March
2017) expressed a modified opinion.
Our report is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. 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", a statement on the
matters specified in paragraphs 3 and 4 of the Order.
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) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our
opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
d) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our
opinion, the aforesaid standalone 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 the written representations received from the directors as on 31st March, 2018 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 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) Company has disclosed the impact of pending litigations on its financial position in its financial
statements - Refer Note 26 to the financial statements;
Auditors Report
46 Madura Micro Finance
Auditors Report
(ii) The Company has long-term contracts including derivative contracts and provision has been made for
any material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education
and Protection Fund by the Company
Place of Signature : ChennaithDated: 04 May 2018
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
47Madura Micro Finance
Annexure A
Referred to in paragraph 1 on 'Report on Other Legal and Regulatory Requirements' of our report of
even date
(i) a) The Company has maintained proper records showing full particulars including quantitative details and
situation of fixed assets.
b) The Company has a regular program of verifying fixed assets which, in our opinion, is reasonable having
regard to the size of the company and nature of its assets. Fixed assets have been physically verified by the
management during the year in a phased manner, as per the said program. As informed, discrepancies
noticed on such verification were not material and have been properly dealt with in the books of account.
c) Title deeds of immovable properties are held in the name of the Company except for property in Madurai,
costing Rs. 38.85 lacs with Written Down Value of Rs. 38.60 lacs for which title deeds are yet to be received
by the company.
(ii) The Company does not have any inventories and hence clause ii is not applicable.
(iii) The company has not granted any loans, secured or unsecured to parties covered in the register maintained
under section 189 of the Act except for an unsecured advance of Rs. 74,12,091 to its subsidiary, Madura Micro
Education Private Limited and which amount is outstanding as on 31st March 2018. This advance has been fully
provided for in the books. According to the information and explanations given to us, there are no specific terms
regarding interest or principal repayment in respect of this advance However. In view of this being a 100%
subsidiary, it is not considered as being prejudicial to the interest of the company. As the amount has been fully
provided for no interest is being accrued on this advance.
(iv) Based on our audit procedures & according to the information and explanation given to us, in respect of loans,
investments, guarantees and security, provisions of section 185 and 186 of the Act have been complied with. No
interest is being accrued on advance given to subsidiary as the entire amount of advance has been provided for.
(v) Based on our audit procedures & according to the information and explanation given to us, the Company has
not accepted any deposits from the public within the meaning of the Act and the rules made there under and
hence clause (v) is not applicable.
(vi) The Company is not required to maintain cost records specified by the Central Government under sub-section
(1) of section 148 of the Act.
a) According to the information and explanations given to us and the records of the Company examined by us,
the Company has generally been regular in depositing undisputed statutory dues including provident fund,
employees' state insurance, income-tax, sales tax, service tax, Goods And Services Tax, duty of customs, duty
of excise, value added tax, cess and any other statutory dues with the appropriate authorities. According to
the information and explanation given to us and the records of the Company examined by us, no undisputed
amounts payable in respect of provident fund, employees' state insurance, income-tax, sales tax, service tax,
Goods And Services tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues st were in arrears, as at 31 March 2018 for a period of more than six months from the date they became
payable.
b) Dues relating to income tax / sales tax / service tax / duty of customs / duty of excise / value added tax, which
have not been deposited on account of any dispute, are stated in the table below:
Auditors Report
48 Madura Micro Finance
(vii) Based on our audit procedures and as per the information and explanations given by the management, the
Company has not defaulted in repayment of loans or borrowing to financial institutions, banks, Government
or dues to debenture holders.
(viii) In our opinion and according to the information and explanations given to us, the Company has not raised
moneys during the year by way of Initial Public Offer (IPO) or Further Public Offer (FPO) (including debt
instrument) and the term loans taken during the year were applied for the purposes for which those are
raised.
(ix) To the best of our knowledge and belief and according to the information and explanations given to us, we
report that no fraud by the Company or on the Company by its officers or employees has been noticed or
reported during the year.
(x) The payment of remuneration to the Chairperson and Managing Director for the period from 26th Feb 2012 to st 31 Mar 2017 is subject to the approval of the Central Government. The Company is in the process of obtaining
the requisite approval of the Central Government.
(xi) The Company is not a Nidhi company in accordance with Nidhi Rules 2014. Accordingly, the provisions of clause
(xii) of the Order are not applicable.
(xii) Based on our audit procedures and according to the information and explanations given to us, all the
transactions entered into with the related parties during the year are in compliance with Section 177 and
Section 188 of the Act where applicable and the details have been disclosed in the Financial statements etc. as
required by the applicable accounting standards.
(xiii) Based on our audit procedures and according to the information and explanations given to us, the Company
has made preferential allotment of shares during the year under review and the requirements of section 42 of
the Act in this regard have been complied with. Amounts raised have been used for the purposes for which the
funds were raised.
(xiv) Based on our audit procedures and according to the information and explanations given to us, the Company
has not entered into any non-cash transactions with directors or persons connected with them .
(xv) The company is required to be registered under Section 45IA of RBI Act, and accordingly registration has
been obtained.
Auditors Report
Details of Demand Amount (Rs.) Forum where the dispute is pending
Penalty under the Income tax Act,
1961-Assessment Year 2007-08
71,01,923 High Court of Judicature at Madras
Demand under Income tax Act,
1961- Assessment Year 2014-15
23,30,836 Assessing Officer due to Tribunal having set aside
the original order.
Place of Signature : ChennaithDated: 04 May 2018
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
49Madura Micro Finance
Annexure B
Referred to in paragraph 2(f) on 'Report on Other Legal and Regulatory Requirements of our report of
even date
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 Madura Micro Finance Limited ("the stCompany") as of March 31 ,2018 in conjunction with our audit of the standalone financial statements of the
Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internal financial controls based on
the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting issued by the Institute of Chartered Accountants of India. 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' Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over 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 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 were established
and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 Reporting
A company's internal financial control over financial reporting 'is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of 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 (I) 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
Auditors Report
50 Madura Micro Finance
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 un authorised
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 Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of
collusion or improper management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to
future periods are subject to the risk that the internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate .
In 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, 2018, based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Auditors Report
Place of Signature : ChennaithDated: 04 May 2018
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
51Madura Micro Finance
Balance Sheet
Shareholders' Funds
As at31.03.2018
As at31.03.2017
EQUITY AND LIABILITIES
(a) Share Capital
(b) Reserves and Surplus
Non Current Liabilities
(a) Long Term Borrowings
(b) Other Long Term Liabilities
(c) Long Term Provisions
Current Liabilities
(a) Short term borrowings
(b) Trade Payable
Note No
2
3
4
5
6
4,798,033,673
585,736
72,872,849
4,871,492,258
71,947,610
2,332,823,227
2,404,770,837
66,975,210
1,694,523,504
1,761,498,714
18,809,751 7
8
3,434,068,141
585,736
57,275,508
3,491,929,385
(i) Total outstanding dues of Micro and Small Enterprise
(ii) Total outstanding dues of Creditors
other than Micro and Small Enterprises
-
175,292,807
(c) Other Current Liabilities
(d) Short Term Provisions
4,550,899,207
158,212,979
4,903,214,744
4,085,678,742
77,983,179
4,245,376,903
9
10
11,199,735
-
70,515,247
12,179,477,839 9,498,805,002TOTAL
Significant Accounting Policies
The accompanying notes 1 to 39 form an integral part of financial statements
1
Non Current Assets
ASSETS
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
34,019,868
2,503,269
(b) Non Current Investments
(c) Deferred Tax Assets (net)
(d) Long Term Loans and Advances
(e) Other non current assets
4,025,766,572
(a) Current Investments
(b) Cash and cash equivalents
(c) Short term loans and advances
(d) Other current assets
8,153,711,267
Current Assets
12,179,477,839 TOTAL
11
12
13
14
15
16
16,900,000
39,040,135
3,790,655,479
142,647,820
17
18
19
20
-
635,146,374
7,371,060,118
147,504,775
20,940,792
275,472
2,670,642,588
16,900,000
32,290,683
2,418,635,380
181,600,261
6,828,162,414
9,498,805,002
50,000,000
839,196,568
5,821,184,283
117,781,563
As per our report of even date
thChennai / Date: 04 May 2018
Sanin Panicker
Company Secretary
Mohan Eddy
Wholetime Director
Tara Thiagarajan
Managing Director
M. Narayanan
President & CFOFor PKF Sridhar & Santhanam LLP
CHARTERED ACCOUNTANTS(FIRM REGISTRATION No:003990S /S200018)
S.Rajeshwari
(Partner)MEMBERSHIP No:024105
52 Madura Micro Finance
Profit and Loss
I. Revenue from Operations
II. Other Income
III. Total Revenue
21
22
1,753,058,379
41,891,034
1,794,949,413
2,241,971,325
89,434,708
2,331,406,033
23
24
11 & 12
25
344,626,298
928,694,106
16,278,465
416,841,762
1,706,440,631
262,064,839
744,573,865
27,594,157
265,515,190
1,299,748,051
IV. Expenses:
Employee Benefits Expenses
Finance Cost
Depreciation
Other Expenses
Total Expenses
624,965,402
-
624,965,402
-
624,965,402
233,442,824
-6,749,452
398,272,030
495,201,362
-
495,201,362
-
495,201,362
198,500,000
-5,425,547
302,126,909
V. Profit before exceptional and extraordinary items and tax
VI. Exceptional Items
VII. Profit before extraordinary items and tax
VIII. Extraordinary Items
IX. Profit before tax
X. Tax expense
Current tax
Deferred Tax
XI. Profit or loss for the period from continuing operations
XII. Proift or loss from discontinuing operations
XIII. Tax expense of discontinuing operations
XIV. Profit/loss from discontunuing operations
XV. Profit for the Year
XVI. Earnings per share
(1) Basic
(2) Diluted
(3) Nominal Value of Share
-
-
-
398,272,030
56.15
56.15
10.00
-
-
-
302,126,909
49.29
49.29
10.00
37
37
Significant Accounting Policies
The accompanying notes 1 to 39 form an integral part of financial statements
1
As per our report of even date
thChennai / Date: 04 May 2018
Sanin Panicker
Company Secretary
Mohan Eddy
Wholetime Director
Tara Thiagarajan
Managing Director
M. Narayanan
President & CFO
Year endedYear ended31.03.2018 31.03.2017Note No
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
53Madura Micro Finance
Cash Flow
Profit before tax
Add: Depreciation
Provision made for Advances and NPAs
Provision for impairment of advances to subsidiary
Provision for impairment of Investment in subsidiary
Provision made for assets derecognised
Net Loss on foreign currency translation
Less: Net gain on sale of investments
Dividend received from Mutual Funds
624,965,402
16,278,465
54,095,924
-
-
2,491,163
14,137,529
711,968,483
36,876,266
-
Operating profit before changes in operating Assets and Liabilities
Changes in operating assets and liabilities
(Increase)/Decrease in advance to Self Help Groups and other loans
(Increase)/Decrease in other Current Assets and Non Current Assets
(Increase)/Decrease in Term Deposits under Lien
Increase/(Decrease) in Current Liabilities and other provisions
Tax paid net of provisions
Total Cash flow from operating activities A
675,092,217
-2,921,895,934
2,632,967
31,696,612
137,620,639
-218,339,555
-2,293,193,054
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets
Redemption of mutual fund
Net gain on sale of investments
Dividend recieved from mutual funds
Total cash flow from investing activities B
-31,585,339
50,000,000
36,876,266
-
55,290,927
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of Shares (including Share Premium)
Long Term Borrowings Taken
Long Term Borrowings Repaid
Short Term Borrowings Repaid/Taken (net)
Total Cash from Financing activities C
Total cash generated during the year (A + B + C)
Cash and Cash Equivalents at the beginning of the Year
Cash and Cash Equivalents at the end of the year
245,000,093
5,720,000,000
-3,913,904,825
7,610,016
2,058,705,284
-179,196,843
796,228,609
617,031,766
563,844,072
-3,004,281,114
35,029,763
36,551,746
-16,841,811
-197,760,601
-2,583,457,945
-31,267,092
-15,573,135
5,676,403
8,973,306
-32,190,518
495,201,362
27,594,157
43,495,171
-
14,900,000
-2,696,909
-
578,493,781
5,676,403
8,973,306
400,000,180
6,000,000,000
-3,274,792,956
933,559
3,126,140,783
510,492,320
285,736,289
796,228,609
Year endedYear ended31.03.2018 31.03.2017
CASH FLOWS FROM OPERATING ACTIVITIES
54 Madura Micro Finance
Cash Flow
Reconciliation of Cash and Cash Equivalent with Balance Sheet
Cash and Bank Balances at the end of the year
Less: Bank Balances not considered as Cash and Cash Equivalent
as defined in AS3 Cash Flow statement
Net Cash and Cash equivalents (as defined in AS3 Cash Flow Statement)
Included in Note No.18
635,146,374
18,114,608
617,031,766
839,196,568
42,967,959
796,228,609
As per our report of even date
thChennai / Date: 04 May 2018
Sanin Panicker
Company Secretary
Mohan Eddy
Wholetime Director
Tara Thiagarajan
Managing Director
M. Narayanan
President & CFO
Year endedYear ended31.03.2018 31.03.2017
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
55Madura Micro Finance
Notes
a. Corporate Information
Madura Micro Finance Limited (“the Company”), headquartered in Chennai, is a Company incorporated on
02.09.2005 and registered with the Reserve Bank of India as a Non-deposit accepting Non-Banking Financial
Company (NBFC-ND) with effect from 28.02.2006. The Company got classified as a NBFC-MFI effective
11.12.2013. The Company is primarily engaged in the business of providing loansto the Self Help Group (SHG)
members and other loans.
b. Basis of Preparation
The financial statements have been prepared in accordance with generally accepted accounting principles in
India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects
with Accounting Standards notified under Section 133 of the Companies Act 2013, reads with Rule 7 of the
Companies (Accounts) Rules, the Companies (Accounting Standards) Amendment Rules, 2016 and the provisions
of Reserve Bank of India (RBI) as applicable to NBFC-MFI and a systematically important NBFC-ND. The financial
statements have been prepared on accrual basis and under historical cost convention except interest on loans
which have been classified as Non-Performing Assets (NPA) and is accounted for on cash basis. The accounting
policies followed are consistent with those of previous years.
a. Use of Estimates
The preparation of financial statements requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of
the financial statements and the reported income and expenses during the reporting period like provision for
employee benefits. Management believes that the estimates used in the preparation of financial statements
are prudent and reasonable. Future results may vary from these estimates.
b. Revenue Recognition
MADURA MICRO FINANCE LIMITED
CIN: U65929TN2005PLC057390
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies
i.
ii.
iii.
iv.
v.
vi.
Interest receivable on loans to Self Help Groups are accounted for on accrual basis at the agreed rate of
interest. Income on any other charges on non-performing asset is recognised only when realized. Any such
income recognised before the asset became non-performing and remaining unrealised is reversed.
In accordance with Reserve Bank of India Guidelines on Securitisation transactions, gains arising from
assignment/securitisation are amortized over the life of the underlying portfolio loans. In case of loss, the
same is recognised in the Statement of Profit and Loss immediately. Income from excess interest spread is
recognised in the Statement of Profit and Loss net of any losses at the time of actual receipt.
Loan processing fees collected from members are recognised on an upfront basis at the time of
disbursement of the loan.
Interest income on deposits with banks is recognised on time proportion accrual basis taking into account
the amount outstanding and the rate applicable.
Dividend on Mutual fund units is recognised when the right to receive the dividend is established.
All other incomes are accounted for on accrual basis.
56 Madura Micro Finance
Notes
a. Tangible Fixed Assets
All Fixed Assets are stated at historical cost less accumulated depreciation and impairment loss, if any. Cost
comprises the purchase price and any attributable cost of bringing the asset to its working condition for its
intended use.
b. Intangible assets
Computer software are stated at the cost of acquisition and amortized over a period of three years, based on
expected future economic benefits accruing to the Company from the year of acquisition.
c. Depreciation
Depreciation on Tangible Fixed Assets are depreciated on Straight Line Method as per the useful life given in
Schedule II except the following cases where it is depreciated as per the useful lives estimated by management.
5 years
6.67 years
5 years
1 year
Motor Vehicles
Furniture & Fixtures
Electrical Fittings
Temporary Structures
Fixed assets costing less than Rs.5000/- are fully depreciated in the year of purchase.
f. Leases
Leases where the lessor effectively retains, substantially all the risks and benefits of ownership of the leased
item, are classified as operating leases. Operating lease payments are recognised as an expense in the
Statement of profit and loss on a straight line basis over the lease term.
g. Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on
which such investments are made, are classified as current investments. All other investments are classified as
long-term investments. Current investments are carried in the financial statements at lower of cost and fair value
determined on an individual investment basis except for investments in the units of mutual funds in the nature of
current investments that have been valued at the net asset value declared by the mutual fund in respect of each
particular scheme, in accordance with the NBFC directions. Long term investments are carried at cost. However,
provision for diminution in value is made to recognise a decline other than temporary in the value of the
investments. On disposal of an investment the difference between carrying amount and net disposal proceeds
are charged or credited to the statement of profit and loss.
h. Borrowing Costs
Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of
funds. Ancillary borrowing costs including processing fee incurred in connection with arrangement of borrowing
are recognised in the period in which they are incurred.
57Madura Micro Finance
Notes
i. Foreign Currency Transactions
Foreign currency transactions are accounted for at the rate of exchange prevailing on the date of
transactions.
Outstanding foreign currency monetary assets and liabilities are translated at the year end rates.
Gains/losses arising on restatement/settlement are adjusted to the Statement of Profit and Loss as
applicable.
Company has adopted Accounting of derivative taken for hedging foreign currency loan based on Guidance
note on accounting for Derivative Contracts issued by ICAI. As per this guidance note, Fair value changes on
Mark to Market (gains / losses on MTM) of derivative is accounted to Profit & Loss as on closing date and
corresponding foreign currency loan is stated at closing spot rate as exchange fluctuation.
i.
ii.
iii.
Retirement benefits in the form of provident fund are defined contribution schemes. The Company has no
obligation, other than the contribution payable to the respective funds. The Company recognises
contribution payable to the respective funds as expenditure, when an employee renders the related service.
Gratuity liability, which is unfunded, is a defined benefit obligation and is provided for on the basis of an
actuarial valuation on projected unit credit method made at the end of each financial year. Actuarial gains
and losses for defined benefits plans are recognised in full in the period in which they occur in the Statement
of profit and loss.
The company treats accumulated leave expected to be carried forward beyond twelve months as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for
based on the actuarial valuation using the projected unit credit method at the end of each financial year.
j. Employee Benefits
i.
ii.
iii.
iv.
Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income Tax Act, 1961, enacted in India.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting
income originating during the current year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.
Deferred tax assets are recognised for deductible timing differences only to the extent that there is a
reasonable certainty that sufficient future taxable income will be available against which such deferred tax
assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing
evidence that they can be realized against such future taxable profits.
The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes down
the carrying amount of deferred tax asset to the extent that is no longer reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will be available against which deferred tax
asset can be realized.
k. Income Taxes
58 Madura Micro Finance
Notes
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.
l. Earnings Per Share
A provision is recognized when the Company has a present obligation as a result of past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
m. Provisions
Classification and provisioning of Microfinance and other is being made as below
n. Classification & Provisioning of Loan Portfolio
i.
ii.
Standard asset means the asset in respect of which, no default in repayment of principal or payment of
interest is perceived and which does not disclose any problem nor carry more than normal risk attached to
the business;
Non-Performing asset (NPA) means an asset for which interest/principal payment has remained overdue for
a period of 90 days or more and includes the total Principal outstanding in respect of the loans where
interest/principal repayment has remained overdue for a period of 90 days or more.
Provisioning Norms:
a.
b.
Provision for Standard Advances is made at 0.4% on Standard Assets outstanding
Provision for Non-Performing Assets is created for the total principal outstanding on the loan as under:
Higher of a) 1% of the outstanding loan portfolio ORb) 50% of the aggregate loan where interest/principal
repayment has remained overdue for a period of 90 days or more and 100% of aggregate loan where
interest/principal repayment has remained overdue for a period of 180 days or more
In respect of assets de-recognised, provision is made at the rate of 0.4% of the outstanding amounts of
assets de-recognised from the books of the Company as at the balance sheet date.
The Company securitises out its loan portfolio, subject to the Minimum Holding Period (MHP) criteria and
the Minimum Retention Requirements (MRR) of RBI, to Special Purpose Vehicles (SPVs) in securitisation
transactions. Such securitised portfolio are de-recognised in the balance sheet when they are sold (true sale
criteria being full met with) and consideration is received by the Company. At the time of the deal, the
Company provides liquidity and credit enhancements on the securitised portfolio, as specified by the rating
agencies, not exceeding 20% of the total securitised instruments, in line with RBI guidelines. The Company
also acts as a servicing agent for the securitised deals.
o. Securitisation
59Madura Micro Finance
2 . SHARE CAPITAL
Authorised
1,00,00,000 Equity Shares of Rs.10/- each
Issued, Subscribed and Paid up
71,94,761 (previous year 66,97,521) Equity Shares of Rs.10/- each
fully paid up
SHARES HELD BY A SHAREHOLDER HOLDING MORE THAN 5%
Name of the shareholder
Ms.Tara Thiagarajan
A.V.Thomas and Co. Ltd
Midland Rubber & Produce Company Ltd
Employees' Welfare Trust
Elevar Equity Mauritius
Mr. M Narayanan
Reconciliation of the number of shares outstanding at the beginning and end of the year
Number of Shares outstanding at the beginning of the year
Number of shares issued during the year
Number of Shares outstanding at the end of the year
31.03.2017
100,000,000
66,975,210
The Company has issued only one class of shares, viz., Equity Shares. Each Equity Share has a face value of Rs.10/-
each and is entitled to one vote. On liquidation each share is entitled to participate in the assets proportionate to
the paid up value of the share.
3. RESERVES AND SURPLUS
Share Premium Account
As per Last Balance Sheet
Add: Received during the year on shares issued
Statutory Reserve (as required under Sec.45IC of RBI Act 1934)
As per Last Balance Sheet
Add: Transfer from Profit and Loss Account
596,518,893
240,027,693
836,546,586
221,815,000
79,700,000
301,515,000
31.03.2018
100,000,000
71,947,610
6,697,521
497,240
7,194,761
5,557,517
1,140,004
6,697,521
207,918,753
388,600,140
596,518,893
160,815,000
61,000,000
221,815,000
Surplus, Balance in Profit and Loss Account
As per Last Balance Sheet
Add: Profit after tax for the year
Less: Transfer to Statutory Reserve (as required under Sec.45IC of
RBI Act 1934)
Total of Reserves and Surplus
876,189,611
398,272,030
1,274,461,641
79,700,000
1,194,761,641
2,332,823,227
635,062,702
302,126,909
937,189,611
61,000,000
876,189,611
1,694,523,504
4. LONG TERM BORROWINGS
I. Debentures
a) Secured
14.15% Non-convertible Debentures - Privately placed, Listed.
Secured by hypothecation of loans granted to Self Help Groups.
The maturity date of the Debentures is 13-Sep-2020, with 99.99%
to be redeemed on13-Sep-2019 and balance on maturity date.
366,000,000
366,000,000
%
32.39%
16.11%
16.12%
6.89%
12.04%
5.06%
No. of shares
2,330,574
1,159,435
1,159,436
495,667
865,916
364,366
No. of shares
2,442,199
855,002
855,004
495,667
865,916
364,366
%
36.46%
12.77%
12.77%
7.40%
12.93%
5.44%
Notes
60 Madura Micro Finance
II. Term Loans from Banks and Financial Institutions
Secured From Banks
Axis Bank
City Union Bank
DCB Bank
Dhanalakshmi Bank
Federal Bank
IDBI Bank
South Indian Bank
Canara Bank
Lakshmi Vilas Bank
Kotak Mahindra Bank
Dena Bank
Indian Bank
Andhra Bank
Bank of Baroda
Bandhan Bank
Bank of Maharashtra
RBL Bank Limited
State Bank of Hyderabad
461,428,575
48,751,446
148,311,500
248,400,909
250,000,000
468,508,000
149,999,810
-
33,787,894
100,000,000
175,000,000
138,888,495
-
226,666,671
250,000,000
-
300,000,000
-
214,285,715
35,473,274
120,830,500
328,027,990
-
590,476,180
104,545,450
34,285,711
92,574,779
50,000,000
115,000,000
217,417,455
13,508,695
436,666,667
-
1,934,998
62,500,000
94,443,171
14.84% Non-Convertible Debentures - Privately placed, Listed
Secured by exclusive charge on the loans created out of the
proceeds of the debentures. The NCD is redeemable in one bullet
payment on 08-May-2018.
11.50% Non-Convertible Debentures - Privately placed, Listed
Secured by exclusive charge on loans created out of the proceeds
of the debentures and immovable properties. The NCD is
redeemable in one bullet payment on 31-July-2020.
11.40% Non-convertible Debentures - Privately placed, Un-listed
Secured by exclusive charge on loans created out of the proceeds
of the debentures and immovable properties. The NCD is
redeemable in one bullet payment on 04-Dec-2020.
b) UnSecured
14.25% Non-Convertible Debentures - Privately placed, Listed The
Debentures are unsecured and are redeemable on 29-Mar-2024
400,000,000 400,000,000
400,000,000 -
330,000,000 -
500,000,000 500,000,000
State Bank of Travancore
IDFC Bank
Union Bank of India
State Bank of India
Vijaya Bank
From Financial Institutions
National Bank for Agricultural and Rural Development
Micro Units Development and Refinance Agency Ltd
Au Financiers India Ltd
Hero FinCorp Limited
Hinduja Leyland Finance
-
830,952,388
263,636,364
350,283,321
-
1,259,166,666
53,200,000
-
277,425,798
200,000,000
150,000,000
173,809,524
197,272,727
397,786,928
22,500,000
1354166666
180,400,000
99,999,999
99,791,197
-
31.03.201731.03.2018
Notes
61Madura Micro Finance
Mahindra Finance
Mas Financial Services Limited
Reliance Commercial Finance Limited
Nabkisan Finance Limited
Maanaveeya Development and Finance (P) Ltd
Northern Arc Capital Limited
Tata Capital Financial Services Limited
World Business Capital
L&T Finance
Sundaram Finance Limited
Grand Total
III. Less: Payable within 12 months disclosed under other
Current Liabilities
All the above loans are secured by a charge on the advances
granted to Self Help Groups from the proceeds of the Loans.
The Terms of repayment of the Term Loans are as under
461,732,217
25,000,004
-
49,974,162
-
-
58,400,000
249,327,044
-
134,787,621
9,209,628,885
4,411,595,212
4,798,033,673
-
56,249,998
261863420
89929172
13333332
101240809
58860000
265600000
33333333
74623456
7,408,731,146
3,974,663,005
3,434,068,141
Name of the Bank /
Financial Institution
Rate of
interest
Tenor of Loan
in Months
Mode of
RepaymentInstalment Bal. o/s as on
31-03-2018
Nabkisan Finance Ltd
Axis Bank
Axis Bank
Axis Bank
Bandhan Bank
Bank of Baroda
City Union Bank
City Union Bank
Dena Bank
DCB Bank
DCB Bank
DCB Bank
Dhanalakshmi Bank
Dhanalakshmi Bank
Dhanalakshmi Bank
12.50%
10.90%
10.20%
10.10%
10.80%
10.20%
12.75%
11.00%
10.50%
11.08%
11.08%
10.40%
12.60%
11.85%
11.40%
36
24
24
24
24
35
36
36
33
26
26
26
36
36
36
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Monthly
Monthly
Monthly
Quarterly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
8,333,333
35,714,285
35,714,286
20,000,000
35,714,285
13,333,333
1,562,620
833,333
25,000,000
2,083,333
2,083,333
5,000,000
2,800,000
4,170,000
5,600,000
49,974,162
71,428,575
250,000,000
140,000,000
250,000,000
226,666,671
18,751,446
30,000,000
175,000,000
16,656,000
16,656,000
114,999,500
32,800,000
74,961,820
140,639,089
Sl.
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
Federal Bank
Hero FinCorp Ltd
Hero FinCorp Ltd
Hinduja Leyland Finance
IDBI Bank
IDBI Bank
IDBI Bank
IDBI Bank
IDFC Bank
IDFC Bank
IDFC Bank
10.65%
12.75%
10.50%
10.75%
11.50%
11.75%
11.60%
10.50%
12.75%
12.75%
11.40%
24
26
36
36
24
24
24
24
24
24
24
Quarterly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
35,714,285
4,742,449
6,567,440
5,555,555
14,300,000
4,762,000
4,762,000
12,000,000
7,142,860
4,761,905
4,166,666
250,000,000
27,425,798
250,000,000
200,000,000
142,700,000
52,380,000
71,428,000
202,000,000
7,142,860
23,809,520
66,666,672
16
17
18
19
20
21
22
23
24
25
26
31.03.201731.03.2018
Notes
62 Madura Micro Finance
IDFC Bank
IDFC Bank
IDFC Bank
IDFC Bank
Indian Bank
Kotak Mahindra Bank
Kotak Mahindra Bank
Lakshmi Vilas Bank Ltd
Lakshmi Vilas Bank Ltd
Lakshmi Vilas Bank Ltd
Lakshmi Vilas Bank Ltd
Mahindra Finance
Mahindra Finance
Mahindra Finance
Mahindra Finance
Mahindra Finance
MAS Financial Services Ltd
MUDRA
NABARD
NABARD
NABARD
NABARD
NABARD
NABARD
NABARD
RBL Bank Ltd
RBL Bank Ltd
RBL Bank Ltd
RBL Bank Ltd
South Indian Bank
South Indian Bank
South Indian Bank
Tata Capital Financial Services Ltd
Tata Capital Financial Services Ltd
Tata Capital Financial Services Ltd
Sundaram Finance Ltd
Sundaram Finance Ltd
Sundaram Finance Ltd
State Bank of India (Previously SBH)
10.90%
10.80%
10.90%
10.50%
11.15%
10.40%
10.15%
12.65%
12.65%
11.85%
11.85%
12.00%
12.00%
10.75%
10.75%
10.75%
12.00%
10.25%
10.50%
11.50%
11.50%
11.50%
11.00%
11.00%
10.95%
10.15%
10.85%
11.05%
10.85%
13.00%
12.15%
11.00%
12.10%
12.10%
10.00%
13.00%
13.00%
11.15%
10.95%
24
24
24
24
39
24
24
36
36
36
36
24
24
24
24
24
24
36
36
36
36
60
60
60
60
24
24
24
24
36
36
39
24
24
24
36
36
36
39
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Half Yearly
Half Yearly
Half yearly
Half yearly
Half yearly
Half yearly
Half yearly
Monthly
Monthly
Monthly
Monthly
Quarterly
Quarterly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
8,333,333
8,333,333
8,333,333
8,333,333
5,555,555
2,083,333
4,166,667
833,334
1,944,447
1,515,156
606,062
2,354,018
4,707,674
4,648,784
11,618,227
2,323,645
2,083,333
10,600,000
16,666,665
25,000,000
33,333,333
37,500,000
75,000,000
60,000,000
60,000,000
2,272,727
2,272,727
2,272,727
9,090,909
9,090,910
4,545,500
8,333,334
416,600
3,749,400
2,083,333
1,685,000
1,685,000
2,400,244
2,800,000
158,333,335
175,000,001
200,000,000
200,000,000
138,888,495
25,000,000
75,000,000
2,500,004
5,833,338
18,181,822
7,272,730
28,560,664
65,269,202
88,637,887
231,141,906
48,122,559
25,000,004
53,200,000
16,666,665
50,000,000
100,000,001
137,500,000
275,000,000
280,000,000
400,000,000
200,000,000
27,272,727
34,090,909
38,636,364
18,181,810
31,818,000
100,000,000
900,000
7,500,000
50,000,000
17,377,802
24,622,998
92,786,821
60,865,393
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
State Bank of India
State Bank of India (Previously SBT)
Union Bank of India
Union Bank of India
World Business Capital
Incofin - Rural Impulse Fund NCD
AAV SARL - 1 NCD
AAV SARL - 1 NCD
Hinduja Leyland Finance Ltd - NCD
Northern Arc Capital Ltd - NCD
11.00%
10.95%
11.80%
10.25%
12.80%
14.84%
14.15%
11.40%
11.50%
14.50%
35
36
36
36
96
36
60
36
36
84
Monthly
Monthly
Monthly
Monthly
Quarterly
Bullet
Bullet
Bullet
Bullet
Bullet
16,607,000
4,545,000
5,455,000
7,576,000
11,075,520
198,502,928
90,915,000
81,818,182
181,818,182
249,327,044
400,000,000
366,000,000
330,000,000
400,000,000
500,000,000
9,209,628,885
66
67
68
69
70
71
72
73
74
75
Notes
63Madura Micro Finance
Name of the Bank /
Financial Institution
Rate of
interest
Tenor of Loan
in Months
Mode of
RepaymentInstalment Bal. o/s as on
31-03-2018
Sl.
5 . OTHER LONG TERM LIABILITIES
Flexi Grant from SIDBI
6 . OTHER LONG TERM PROVISIONS
Provision for gratuity
Provision for leave encashment
Provision for Standard Assets
Provision for Assets Derecognised
Provision for Impairment on Investment in Subsidiary
Provision for Impairment of Advance to Subsidiary
Provision for MTM Loss
7 . SHORT TERM BORROWINGS
CASH CREDIT FROM BANKS :
Secured
South Indian Bank - Cash Credit
The above limit is secured by available current assets both present
and future. The Cash Credit/OD facility limited to Rs. 2 Crores and is
renewable every year and carries interest at 11.35% per annum.
9,042,486
6,363,519
15,132,974
686,814
14,900,000
7,412,091
19,334,965
72,872,849
51,814 17,452,516
585,736
585,736
585,736
585,736
City Union Bank - Overdraft
The above limit is secured by a charge on the loans granted to Self
Help Groups out of the proceeds of the loan. The Cash Credit/OD
facility limited to Rs. 1 Crores and is renewable every year and carries
interest at 12.75% per annum.
1,357,235
18,809,751
6,658,944
4,192,240
24,112,233
-
14,900,000
7,412,091
-
57,275,508
11,147,921
11,199,735
8. TRADE PAYABLES
Payable on account of Securitization
Insurance Payable
Sundry Creditors
69,581,412
51,705,006
54,006,389
175,292,807
20,468,718
49,609,293
437,236
70,515,247
9. OTHER CURRENT LIABILITIES
Current maturities of Long Term Debt
(Refer Note No.4 for Security and repayment)
Interest accrued but not due
Statutory Liabilities
Employee Benefit Liabilities
Others
4,411,595,212
75,681,236
11,330,888
39,894,975
12,396,897
4,550,899,207
3,974,663,005
52,355,811
6,785,001
24,306,350
27,568,575
4,085,678,742
10. SHORT TERM PROVISIONS
Others
Provision for Tax (Net of Advance Tax)
Provision for Assets Derecognised
Provision for Standard Assets
Provision for Non Performing Assets
15,350,268
2,064,916
29,254,279
111,543,516
158,212,979
-
260,567
34,592,440
43,130,172
77,983,179
31.03.201731.03.2018
Notes
64 Madura Micro Finance
Fre
eh
old
La
nd
Bu
ilid
ing
sP
lan
t &
Eq
uip
me
nt
Fu
rnit
ure
&
Fit
tin
gs
Ve
hic
les
Off
ice
Eq
uip
me
nt
Ele
ctr
ica
l
Fit
tin
gs
Co
mp
ute
rs
11
. TA
NG
IBL
E A
SS
ET
S
GR
OS
S B
LO
CK
-AT
CO
ST
As
at
1 A
pri
l 2
01
6
Ad
dit
ion
s
Dis
po
sals
As
at
31
Ma
rch
20
17
Ad
dit
ion
s
Dis
po
sals
As
at
31
Ma
rch
20
18
- - - -
1,7
06
,35
5 -
1,7
06
,35
5
- - - -
2,1
79
,40
5 -
2,1
79
,40
5
1,8
50
,75
7
49
,46
4 -
1,9
00
,22
1 - -
1,9
00
,22
1
5,2
19
,85
8
2,7
16
,55
5 -
7,9
36
,41
3
2,1
71
,27
9 -
10
,10
7,6
92
AC
CU
MU
LA
TE
D D
EP
RE
CIA
TIO
N
As
at
1 A
pri
l 2
01
6
Ad
dit
ion
s
Dis
po
sals
As
at
31
Ma
rch
20
17
Ad
dit
ion
s
Dis
po
sals
As
at
31
Ma
rch
20
18
- - - - - - -
60
1,0
22
25
5,1
69
-
85
6,1
91
21
1,0
83
-
1,0
67
,27
4
NE
T B
LO
CK
As
at
31
Ma
rch
20
17
As
at
31
Ma
rch
20
18
-
1,7
06
,35
5
-
2,1
54
,77
5
3,0
17
,17
2
2,1
14
,86
1 -
5,1
32
,03
3
2,1
00
,19
6 -
7
,23
2,2
29
- - - -
24
,63
0 -
24
,63
0
1,0
44
,03
0
83
2,9
47
2,8
04
,38
0
2,8
75
,46
3
4
,53
7,3
47
- -
4
,53
7,3
47
- -
4
,53
7,3
47
3,9
64
,12
6
38
3,3
65
-
4,3
47
,49
1
18
6,8
18
-
4,5
34
,30
9
18
9,8
56
3,0
38
1
1,4
68
,93
8
1,1
46
,60
7 -
12
,61
5,5
45
1,5
08
,92
8 -
14
,12
4,4
73
11
,15
2,7
49
71
4,9
77
-
11
,86
7,7
26
5
09
,51
4
-
12
,37
7,2
40
74
7,8
19
1,7
47
,23
3
1,3
88
,96
3
- -
1,3
88
,96
3
98
,79
8 -
1,4
87
,76
1
78
0,5
63
51
3,6
49
33
3,2
43
27
5,1
57
-
60
8,4
00
36
5,7
12
-
97
4,1
12
27
,39
2,5
11
12
,94
6,4
50
-
4
0,3
38
,96
1
20
,64
4,3
33
-
60
,98
3,2
94
15
,37
4,1
44
24
,18
6,4
09
1
6,2
00
,37
6
8,7
64
,44
1 -
24
,96
4,8
17
11
,83
2,0
68
-
36
,79
6,8
85
Te
mp
ora
ry
Str
uctu
res
in R
en
ted
Pre
mis
es
-
14
,40
8,0
16
-
14
,40
8,0
16
-
-
14
,40
8,0
16
- - -
14
,40
8,0
16
-
14
,40
8,0
16
- -
14
,40
8,0
16
Pa
rtic
ula
rsG
ran
d T
ota
l
51
,85
8,3
73
31
,26
7,0
92
-
83
,12
5,4
66
28
,30
9,0
98
-
11
1,4
34
,56
4
35
,26
8,6
88
26
,91
5,9
86
-
62
,18
4,6
74
1
5,2
30
,02
1 -
77
,41
4,6
95
20
,94
0,7
92
34
,01
9,8
68
65Madura Micro Finance
Notes
12. INTANGIBLE ASSETS
Gross Block-At Cost
As at 1 April 2016
Additions
Disposals
As at 31 March 2017
Additions
Disposals
As at 31 March 2018
Software
Micro
Eduction
Products
Total
20,585,833
-
-
20,585,833
3,276,241
-
23,862,074
9,618,959
-
-
9,618,959
-
-
9,618,959
10,966,874
-
-
10,966,874
3,276,241
-
14,243,115
Accumulated Depreciation
As at 1 April 2016
Additions
Disposals
As at 31 March 2017
Additions
Disposals
As at 31 March 2018
19,632,190
678,171
-
20,310,361
1,048,444
-
21,358,805
9,617,997
962
-
9,618,959
-
-
9,618,959
10,014,193
677,209
-
10,691,402
1,048,444
-
11,739,846
Net Block
As at 31 March 2017
As at 31 March 2018 275,472
2,503,269
-
-
275,472
2,503,269
14,900,000
2,000,000 2,000,000
16,900,000
30,754,700
1,535,983
32,290,683 39,040,135
38,670,136
369,998
13. NON CURRENT INVESTMENTS
Trade Investments
a) Investment in Equity Shares - Unquoted at cost
i) In Subsidiary Company
14,90,000 Equity Shares of Madura Micro Education Pvt Ltd (at face value)
ii) In other companies
2,00,000 Equity Shares of Rs.10/- each in Alpha Micro Finance Consultants P Ltd
14. DEFERRED TAX ASSETS (NET)
(i) Deferred Tax Asset
On account of provision made
allowable on basis of payment
On Account of depreciation
14,900,000
16,900,000
31.03.2018 31.03.2017
7,412,091
3,162,794
7,412,091
-
15. LONG TERM LOANS AND ADVANCES
i) Loans and Advances to Related Parties
Madura Micro Education Private Limited
ii) Loans and Advances to Others
Secured
SME Loan Against Property - Considered Good
66 Madura Micro Finance
11,181,699
91,967,417
29,932,798
9,565,906
142,647,820
16. OTHER NON CURRENT ASSETS
Other Deposits and Advances
Bank Balance in earmarked deposit account
Under lien to banks for various credit facilities granted
Under lien for Securitisation
Advance Tax (Net of Provision for Tax)
Cash on hand
Bank balances in current account
Bank Balance in earmarked Deposit account
Under lien to banks for various credit facilities granted
Other deposits with bank
17. CURRENT INVESTMENT
-
Investment in Units of Mutual Fund - unquoted
(Previous year 18,779.023 units) of UTI Liquid Fund - Growth Plan
18. CASH AND CASH EQUIVALENTS
186,209
416,675,694
18,114,608
200,169,863
635,146,374
Microfinance and other loans repayable within 12 months
Secured
SME Loan Against Property - Considered Good
Unsecured
Microfinance Loans - Considered Good
Other Loans - Considered Good
Microfinance Loans - Considered Doubtful
19. SHORT TERM LOANS AND ADVANCES
809,001
7,039,413,770
273,298,941
57,538,406
7,370,251,117
7,371,060,118
-
Notes
3,734,665,083
45,415,511
3,790,655,479
2,409,163,370
2,059,919
2,418,635,380
Unsecured
Microfinance Loans - Considered Good
Other Loans - Considered Good
9,241,997
144,168,594
18,870,763
9,318,907
181,600,261
50,000,000
50,000,000
3,020
146,225,589
42,967,959
650,000,000
839,196,568
-
5,742,290,130
38,417,117
40,477,036
5,821,184,283
5,821,184,283 Short Term Loans and Advances Total
Advances recoverable in cash or in kind or for value to be received
Unsecured Considered Good
Due by others
Bank Balance in earmarked deposit account
Under lien to banks for various credit facilities granted
Under lien for Securitization
20. OTHER CURRENT ASSETS
12,394,186
125,132,989
9,977,600
147,504,775
16,966,855
100,814,708
-
117,781,563
Interest on Loans
Income on Securitised Portfolio (Excess Interest Spread)
Interest from Banks
Processing and other charges
Commission Received
21. REVENUE FROM OPERATIONS
2,105,673,813
3,618,727
21,091,475
105,146,543
6,440,767
2,241,971,325
1,629,278,379
17,577,060
29,723,507
76,479,433
-
1,753,058,379
67Madura Micro Finance
31.03.201731.03.2018
Notes
Bad Debts recovered
Dividend received
Net gain on sale of investments
Provision written back on Standard Assets
Others
22. OTHER INCOME
18,306,318
-
36,876,266
14,317,420
19,934,704
89,434,708
31.03.2018 31.03.2017
15,322,400
8,973,306
5,676,403
-
11,918,925
41,891,034
Salaries and Wages
Honorarium paid
Contribution to Provident Fund and Other Funds
Contribution to Employees State Insurance
Provision for Leave Encashment
Provision for Gratuity
Staff Insurance & Welfare Expenses
23. EMPLOYEE BENEFIT EXPENSES
276,864,897
21,203,937
22,583,402
6,113,193
4,500,488
5,596,676
7,763,705
344,626,298
211,101,542
19,934,966
17,560,712
4,305,479
1,919,301
2,394,286
4,848,553
262,064,839
Interest Expenses
Interest on Non Convertible Debentures
Interest on Term Loans
Interest on Cash Credit
Other Interest
Other Borrowing Cost
Processing Charges
Bank charges
Net Loss/Gain from Foreign Currency
Net Loss on foreign currency translation
24. FINANCE COST
223,862,905
668,467,320
146,705
1,509,173
16,292,650
4,277,824
928,694,106
111,539,412
598,763,642
285,042
66,438
31,221,000
2,698,331
744,573,865
Office Rent
Rates and Taxes
Electricity charges
Insurance
Auditor's Remuneration
For Audit
For Certification and other services
Office Maintenance
Bad Debts written off
Professional Fees
Provision on Standard assets
Provision for Non Performing Assets
Provision on Assets Derecognised
Impairment of investment in Subsidiary Company
Directors Sitting Fees
Travelling expenses
Corporate Social Responsibility Expenses (See Note No.36)
Other Expenses
25. OTHER EXPENSES
23,600,048
261,633
3,278,848
849,154
1,090,000
5,450
8,295,664
135,720,141
62,595,409
-
68,413,344
2,491,163
-
3,137,175
35,706,527
5,867,251
65,529,955
416,841,762
16,805,696
53,528
2,853,172
424,247
952,500
342,000
6,997,018
39,263,561
60,486,891
6,472,589
37,022,582
-2,696,909
14,900,000
3,139,509
26,287,666
2,029,913
50,181,227
265,515,190
14,137,529 -
68 Madura Micro Finance
26. CONTINGENT LIABILITIES
Notes
i) Income Tax and PF demands
SI Details of Demand Forum where dispute is
pending
31-Mar-17
(Rs.)
31-Mar-18
(Rs.)
01 Penalty under Income Tax Act,
1961 - AY 2007-08
High Court of Judicature of
Madras
7,101,923 7,101,923
02 Demand under Income Tax Act,
1961 - AY 2014-15
Assessing Officer due to
Tribunal having set aside the
original order
2,742,160 2,742,160
03 Demand under Employee Provident
Fund Act, 1952 for 2010-11
EPF Appellate Tribunal 2,537,020 2,537,020
ii) Corporate Guarantee
The Company has given corporate guarantee in favour of National Skill Development Centre in respect of the loan
granted by them to the subsidiary company, Madura Micro Education Private Limited. The amount of loan
outstanding as on 31st March 2018 in the books of Subsidiary is Rs. 2,02,08,924.
27. The appointment and payment of remuneration to the Managing Director for the period from 26th Feb 2012 to 31st
Mar 2018 is subject to the approval of the Central Government. A sum of Rs. 3,04,10,424 (excluding gratuity) has
been paid as remuneration to the Managing Director for the period Feb 2012 to Mar 2018. The Company has taken
necessary action in this matter and is confident of obtaining the approval shortly. Hence no adjustments have been
made to the financial statements towards this.
28. RELATED PARTY TRANSACTIONS
List of Related Parties
i. Madura Micro Education Private Limited - Subsidiary Company
ii. Scimergent Analytics and Education Private Limited - Company under common control
iii. Scisphere Analytics India Private Limited - Company under common control
iv. Microcredit Foundation of India - Company under common control
v. Midland Rubber and Produce Company Limited - Companies in which directors can exercise significant
influence
vi. A. V. Thomas and Co. Limited - Companies in which directors can exercise significant influence
vii. Ms. Tara Thiagarajan - Key Management Personnel
viii. Mr. Mohan Eddy - Key Management Personnel
ix. Mrs. Pamela Mohan - Relative of Key Management Personnel
Particulars*
Remuneration to Key Managerial Personnel
i. Ms. Tara Thiagarajan - Managing Director
ii. Mr. Mohan Eddy - Whole Time Director
Professional Fees
i. Scimergent Analytics and Education Pvt Ltd
ii. Scisphere Analytics India Private Limited
Rent Paid
i. Mrs. Pamela Mohan
Reimbursements
i. Madura Micro Education Private Ltd
Details of Transactions with related parties
6,729,600
4,913,000
15,473,750
4,485,500
1,620,000
1,549,915
6,488,844
4,380,000
18,050,000
3,965,000
1,620,000
2,431,183
i. Amount due from Subsidiary Company, Madura Micro
Education Pvt Ltd
Less: Provision made
ii. Corporate Guarantee given on account of Madura Micro
Education Pvt Ltd
Details of Balances with related parties
7,412,091
7,412,091
20,208,924
7,412,091
7,412,091
20,208,924
*Amounts exclusive of taxes
31.03.2018 31.03.2017
69Madura Micro Finance
Notes
29. The Company has invested Rs 1,49,00,000 in a wholly owned subsidiary, Madura Micro Education Private
Limited. The Company has also advanced Rs 74,12,091 to the said subsidiary company. The net worth of the
subsidiary company as at 31st March 2018 is negative. However in the opinion of the Management, the
subsidiary is in a nascent stage of its development and having regard to its prospects, the Management is
confident the net worth would become positive. As a measure of abundant caution, provision has been made
in the books for entire amount of investment and advance to the subsidiary.
30. The Company primarily operates in one segment - viz., financing of Self Help Groups. There are no other
reportable segments as required under Accounting Standard 17.
Currency Nature of
Transaction
USD External Commercial
Borrowing
Foreign
Currency
Indian
Rupees
31.3.2017
The above exposure is hedged fully for interest rate risks and forex rate risk by a currency swap agreement with a bank.
USD 3.83 Million 249,327,044
Foreign
Currency
Indian
Rupees
31.3.2018
265,600,000 USD 4 Million
31. Foreign Currency exposures recognised by the Company that have been hedged are as under:
The Company has an unfunded defined benefit gratuity plan.
Details of Defined Benefit - Gratuity Plan
Fair Value of Plan Assets
Present value of unfunded obligation
Less: Unrecognised past service cost
Plan asset/(liability)
Current
Non-Current
Change in the present value of Defined Benefit Gratuity Plan
Opening defined benefit obligation
Interest cost
Current Service cost
Actuarial (gains)/losses on obligation
Closing defined benefit obligation
Principal Assumptions used in determining Defined Benefit
Gratuity Plan
Discount Rate
Expected rate of return on plan assets
Salary increment rate
Attrition rate
32. POST EMPLOYMENT BENEFITS
-
12,798,148
-
-12,798,148
3,755,662
9,042,486
7,884,493
5,596,676
-683,021
12,798,148
6.94%
NA
10%
30%
-
7,884,493
-
-7,884,493
1,225,549
6,658,944
5,824,822
2,394,286
-334,615
7,884,493
6.80%
NA
10%
22%
Details of Other Defined Benefit Plan
Leave Encashment
Fair Value of plan assets
Present value of unfunded obligation
Less: Unrecognised past service cost
Plan asset/(liability)
Current
Non-Current
Change in present value of Other Defined Benefit Plan
Opening defined benefit obligation
-
9,934,983
-
-9,934,983
3,571,464
6,363,519
6,223,075
-
6,223,075
-
-6,223,075
2,030,835
4,192,240
4,578,199
70 Madura Micro Finance
Notes
Interest cost
Current Service cost
Actuarial (gains)/losses on obligation
Closing defined benefit obligation
Principal Assumptions used in determining Defined Benefit Gratuity Plan
Discount Rate
Expected rate of return on plan assets
Salary increment rate
Attrition rate
Proportion of leave availed
Disclosures have been made to the extent provided by the actuary.
4,500,488
-788,580
9,934,983
6.94%
NA
10%
30%
10%
1,919,301
-274,425
6,223,075
6.80%
NA
10%
22%
10%
33. PROVISIONS AND CONTINGENCIES
Provision is recognised in the Balance Sheet when, the Company has a present obligation as a result of a
past event and it is probable that an outflow of economic benefits will be required to settle the obligation
and a reliable estimate of the amount of the obligation can be made.
i) Provision for Standard Assets
Carrying amount at the beginning of the period
Reversal of provision made during the period
Amounts used (i.e., incurred and charged against the provision)
Amount of provision at the end of the period
ii) Provision for Non Performing Assets
Carrying amount at the beginning of the period
Additional provision made during the period
Amounts used (i.e., incurred and charged against the provision)
Unutilised amounts reversed during the period
Amount of provision at the end of the period
58,704,673
-14,317,420
-
44,387,253
43,130,172
68,413,344
-
111,543,516
52,232,084
6,472,589
-
58,704,673
6,107,590
37,022,582
-
43,130,172
iii) Provision for assets derecognised
Carrying amount at the beginning of the period
Additional provision made during the period
Amounts used (i.e., incurred and charged against the provision)
Unutilised amounts reversed during the period
Amount of provision at the end of the period
260,567
2,751,730
-
260,567
2,751,730
2,957,476
-
-
2,696,909
260,567
34 . Earnings In Foreign Exchange Nil
35. Expenditure In Foreign Currency
Nil
1,745,729
14,609,382
11,075,520
Nil
Nil
1,138,069
13,565,711
Nil
The company has made contributions towards Corporate Social Responsibility as detailed below36.
Travelling Expenses
Professional Charges
Interest and Finance charges
Repayment of External Commercial Borrowings
7,346,718
5,867,251
a) Gross amount required to be spent by the company during the year
b) Amount spent during the year
SI Particulars In cash TotalYet to be paid in cash
01
02
Construction/acquisition of any asset
On Purpose other than (1) above
-
5,867,251
-
-
-
5,867,251
31.03.2018 31.03.2017
71Madura Micro Finance
NotesNotes
Earnings per Share - Basic and Diluted37.
Profit after Tax
Weighted average of number of equity shares of face value of Rs.10/- each
Earnings per share - Basic
Earnings per share - Diluted
398,272,030
7,092,588
56.15
56.15
302,126,909
6,129,081
49.29
49.29
38. Change in Accounting Policy
The Company had not adopted the Guidance Note on accounting for Derivative contracts in the earlier year
and hence there has been a change in accounting policy to give effect to the ICAI's Guidance Note. Also refer
39(xxxii)(3)(c).
a) Debentures - Secured
b) Debentures - Unsecured
c) Deferred Credits
d) Term Loans
e) Inter-corporate Loan and borrowing
f) Commercial Paper
g) Public deposits
h) Other Loans - Overdraft
Amount
Outstanding
(Rs. in lakhs)
Amount
Overdue
(Rs. in lakhs)
Amount
Outstanding
(Rs. in lakhs)
Particulars
39. DETAILS REQUIRED UNDER RESERVE BANK OF INDIA,NBFC DIRECTIONS
S.
No
Amount
Overdue
(Rs. in lakhs)
i) Loans and Advances availed by NBFCs inclusive of interest accrued there on but not paid
15,436.74
5,000.00
Nil
72,416.36
Nil
Nil
Nil
188.10
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
31-3-2018 31-3-2017
7,938.95
5,003.90
Nil
61,668.01
Nil
Nil
Nil
112.00
LIABILITIES SIDE
(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
ii) Break up of 1(g) above (Outstanding public deposits inclusive of interest accrued thereon but not
paid)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
a) Secured
b) Unsecured
iii) Break up of Loans and Advances including bills receivable (other than those included in 4 below)
(Net of NPA Provision)
39.72
110,387.88
Nil
Nil
Nil
Nil
Nil
81,892.77
ASSETS SIDE
iv) Break up of Leased Assets and stock on hire and hypothecation loans counting towards EL/HP
activities
(i) Leased assets including lease rentals under sundry debtors
a) Financial Lease
b) Operating Lease
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(ii) Stock on hire including hire charges under sundry debtors
a) Asset on hire
b) Repossessed assets
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
72 Madura Micro Finance
NotesNotes
(iii) Hypothecation Loans counting towards
EL/HP activities
a) Loans where assets have been repossessed
b) Loans other than (a) above
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
v) Break up of Investments
Current Investments
1. QUOTED
i) Shares: (a) Equity
(b) Preference
ii) Debentures and Bonds
iii) Units of mutual funds
iv) Government securities
v) Others
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
2. UNQUOTED
i) Shares: (a) Equity
(b) Preference
ii) Debentures and Bonds
iii) Units of mutual funds
iv) Government securities
v) Others
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Long Term Investments
1. QUOTED
i) Shares: (a) Equity
(b) Preference
ii) Debentures and Bonds
iii) Units of mutual funds
iv) Government securities
v) Others
2. UNQUOTED
i) Shares: (a) Equity
(b) Preference
ii) Debentures and Bonds
iii) Units of mutual funds
iv) Government securities
v) Others
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
169.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
169.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
500.00
Nil
Nil
vi) Borrower group-wise classification of all leased assets, stock-on-hire and loans and advances
CATEGORYAmount net of NPA provisions
Secured Unsecured Total
Amount net of NPA provisions
Secured Unsecured Total
1. Related Parties
a) Subsidiaries
b) Companies in the same group
c) Other related parties
2. Other than related parties
TOTAL
Nil
Nil
Nil
39.72
39.72
Nil
Nil
Nil
110,387.88
110,387.88
-
-
-
110,427.60
110,427.60
-
-
-
81,892.77
81,892.77
Nil
Nil
Nil
81,892.77
81,892.77
31-3-2018 31-3-2017
Nil
Nil
Nil
Nil
Nil
73Madura Micro Finance
Notes
vii) Investor group-wise classification of all investments (current and long term) in
shares and securities (both quoted and unquoted)
CATEGORY
31-3-201 8
1. Related Parties
a) Subsidiaries
b) companies in the same group
c) Other related parties
2. Other than related parties
TOTAL
149.00
Nil
Nil
20.00
169.00
-
Nil
Nil
20.00
20.00
Market Value /
NAV or face Value
Book Value Net
of provisions
31-3-2017
149.00
Nil
Nil
520.00
669.00
Market Value /
NAV or face Value
Book Value Net
of provisions
viii) Other Information
Amount net of NPA provisions
Secured Unsecured Total
Amount net of NPA provisions
Secured Unsecured Total(i) Gross Non-Performing Assets
(a) Related Parties
(b) Other than related parties
(ii) Net Non-Performing Assets
(a) Related Parties
(b) Other than related parties
(iii) Assets acquired in satisfaction
of debts
Nil
Nil
Nil
Nil
Nil
Nil
575.38
Nil
(540.06)
Nil
Nil
575.38
Nil
(540.06)
Nil
Nil
Nil
Nil
Nil
Nil
ix) Customer Complaints
a) Number of Complaints pending as the beginning of the year
b) Number of Complaints received during the year
c) Number of Complaints redressed during the year
d) Number of Complaints pending as at the end of the year
x) Details of Registration with Financial Regulators
a) Ministry of Corporate Affairs
b) Reserve Bank of India
c) Microfinance Institutional Network
CIN No.U65929TN2005PLC057390
N-07.00754
20
-
Nil
Nil
520.00
520.00
31-3-201 8 31-3-201 7
Nil
404.77
Nil
Nil
Nil
Nil
404.77
Nil
Nil
Nil
31.3.2018 31.3.2017
Nil
45
45
Nil
Nil
50
50
Nil
Not applicable
Not applicable
(CARE) BBB+ Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
(CARE) BBB+ Stable
(CARE) BBB+ Stable
M2+
Not applicable
xi) Ratings assigned by Credit Rating Agencies
Commercial Paper
Working Capital Facility (Cash credit/WCDL)
Long Term Bank Facilities
Long Term Bank Facilities
14.84% Non-Convertible Debentures (allotted in May 2015)
14.15% Non-Convertible Debentures (allotted in Aug 2015)
14.50% Non-Convertible Debentures (allotted in Mar 2017)
11.40% Non-Convertible Debentures (allotted in Aug 2017)
11.50% Non-Convertible Debentures (allotted in Dec 2017)
MFI Grading
Perpetual Debt
Not applicable
Not applicable
(CARE) BBB+ Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
Nil
Nil
Nil
M2
Not applicable
74 Madura Micro Finance
NotesNotes
Percentage of NPAs to total
advances in that sector
31-3-2018
52.08%
47.92%
-0.48%
404.77
574.84
404.23
575.38
-26.53
-109.30
404.23
-540.06
431.30
684.14
-
1,115.44
xii) Concentration of Advances, Exposures and NPAs
xiii) Sector wise NPAs as at the end of the year
a) Agriculture and Allied Activities
b) MSME
xiv) Movement of NPAs
a) Net NPAs to total advances (%)
b) Movement of NPAs (Gross)
i) Opening Balance
ii) Additions during the year
iii) Reduction during the year
iv) Closing balance
c) Movement of Net NPAs
i) Opening Balance
ii) Additions during the year
iii) Reduction during the year
iv) Closing balance
d) Movement of provision for NPAs excluding standard assets
i) Opening Balance
ii) Provision made during the year
iii) Write off/write back of excess provisions
iv) Closing balance
The Company operates primarily in the business of microfinance providing collateral free loans for fixed
amounts ranging from Rs. 20,000/- to Rs. 58,000/- predominantly to rural and semi urban women. As on
31st March 2018, the Company provided loans to more than 4.19 lakhs women across seven states and
hence the disclosure relating to concentration of Advances, Exposures and NPAs are not applicable to the
Company.
31-3-2017
45.77%
54.23%
0.00%
122.15
404.77
122.15
404.77
61.08
34.54
122.15
-26.53
61.07
370.23
-
431.30
xv) Disclosure relating to Securitisation
The information on securitisation activity of the Company as an originator is furnished below:
a) Total number of loans securitised or assigned
b) Total book value of loans securitised or assigned
c) Total book value of loans securitised or assigned including loans
placed as collateral
d) Sale consideration received for loans securitised/assigned
e) Excess interest spread recognised in the Statement of Profit and Loss
f) Credit enhancements provided and outstanding (gross)
Transaction 1
i) Interest subordination
- for PTC Series A1
- for PTC Series A2
ii) Principal subordination
- for PTC Series A1
- for PTC Series A2
iii) Cash collateral
3923
7,556.31
8,611.18
7,556.31
36.19
Nil
Nil
Nil
Nil
Nil
5902
260.57
260.57
-
175.77
9.52%
9.14%
9.00%
7.00%
6.00%
75Madura Micro Finance
Notes
Transaction 2
i) Interest subordination
- for PTC Series A1
- for PTC Series A2
ii) Principal subordination
- for PTC Series A1
- for PTC Series A2
iii) Cash collateral
Transaction 3
i) Interest subordination
- for PTC Series A1
- for PTC Series A2
ii) Principal subordination
- for PTC Series A1
- for PTC Series A2
iii) Cash collateral
12.07%
12.07%
15.00%
12.25%
4.50%
12.76%
12.76%
14.50%
12.25%
4.90%
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Particulars*
Number of SPVs sponsored by the Company for securitisation
during the year
Total amount of securitised assets as per the books of the SPVs
sponsored by the Company as on the date of balance sheet
Total amount of exposure retained by the Company to comply
with minimum retention requirement as at the date of the
balance sheet
a) Off balance sheeet exposures
i) First Loss
ii) Others
b) On balance sheet exposures
i) First Loss
ii) Others
Amount of Exposures to other than MRR
a) Off Balance sheet exposures
i) Exposure to own securitisations
ii) Exposure to third party securitisations
b) On balance sheet exposures
i) Exposure to own securitisation
ii) Exposure to third party securitisation*As per information duly certified by auditor of SPV
2
8,611.18
Nil
Nil
399.11
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
197.14
Nil
Nil
Nil
Nil
Nil
Nil
xvi) Information on instances of fraud reported during the year
Embezzlement of cash Nil 6.51
xvii) Information on net interest margin
Average interest
Average effective cost of borrowing
Net interest margin
22.49%
12.98%
9.51%
23.80%
13.85%
9.95%
31.03.2018 31.03.2017
76 Madura Micro Finance
NotesNotes
xviii) Information required by Reserve Bank of India Prudential Norms
1) Capital Adequacy Ratio
item
i) CRAR (%)
ii) CRAR - Tier I Capital (%)
iii) CRAR - Tier II Capital (%)
iv) Amount of subordinated debt raised as Tier II Capital (Rs. In Lakhs)
v) Amount raised by issue of Perpetual Debit Instruments
25.70%
21.00%
4.70%
5,000
Nil
26.99%
20.46%
6.53%
5,000
Nil
2) Exposure to Real Estate Sector Category
A. Direct Exposure
i) Residential Mortgages -
Lending fully secured by mortgages on residential property
that is or will be occupied by the borrower or that is rented;
(Individual housing loans upto Rs.15 lakh may be shown
separately)
ii) Commercial Real Estate -
Lending secured by mortgages on commercial real estates
(office buildings, retail space, multipurpose commercial
premises, multi-family residential buildings, multi-tenanted
commercial premises, industrial or warehouse space, hotels
land acquisition, development and construction, etc.).
Exposure would also include non-fund based (NFB) limits;
iii)Investments in Mortgage Backed Securities (MBS) and other
securitised exposures-
a. Residential
b. Commercial Real Estate.
B. Indirect Exposure
Fund based and non-fund based exposures on National
Housing Bank (NHB) and Housing Finance Companies(HFCs)
39.72
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
xix) Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction
The Company has not sold financial assets to securitisation/reconstruction companies for asset
reconstruction in the current and previous year.
xx) Details of Assignment transactions undertaken by NBFCs
The Company has not undertaken assignment transaction in the current and previous year.
xxi) Details of non-performing financial assets purchased / sold
The Company has not purchased/sold non performing financial assets during the current and previous year.
xxii) Details of penalties imposed by RBI and other Regulators
No penalties have been imposed by RBI and other Regulators during the current and previous year.
xxiii) Exposure to Capital Market
The company does not have any exposure to Capital Market
xxiv) Details of Financing of Parent company products
Not Applicable
77Madura Micro Finance
Notes
xxv) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by applicable NBFC
The Company has not given any loan exceeding Single Borrower Limit / Group Borrower Limit
xxvi) Provisions and Contingencies
Breakup of "Provisions and Contingencies" shown under the
head Expenditure in Profit and Loss Account
a) Provisions for depreciation on Investment Nil 149.00
31.3.2018 31.3.2017
b) Provision towards NPA
c) Provision made towards Income Tax
d) Other Provision and Contingencies (with detail)
Provision for assets de-recognised
e) Provision for Standard Assets
684.13
2,334.43
24.91
-
370.23
1,985.00
-26.97
64.73
xxvii) Draw Down from Reserves
The company has not done any Draw Down from Reserves
xxviii) Concentration of Deposits (for deposit taking NBFCs)
Not applicable to the Company
xxix) Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
Not applicable to the Company
xxx) Off- Balance Sheet SPVs Sponsored
The company does not have any Off-Balance Sheet SPV
xxxi) Investments
Particulars
(1) Value of Investment (Permanent and Current Investments)
(i) Gross Value of Investment
(a) In India
(b) Outside India
(ii) Provision for Depreciation
(a) In India
(b) Outside India
(iii) Net Value of Investments
(a) In India
(b) Outside India
(2) Movement of Provisions held towards depreciation on Investments
(i) Opening Balance
(ii) Add : Provisions made during the year
(iii) Less: Write-Off / Write-back of excess provisions during the year
(iv) Closing balance
169.00
Nil
669.00
Nil
149.00
Nil
149.00
Nil
20.00
Nil
520.00
Nil
149.00
Nil
Nil
149.00
Nil
149.00
Nil
149.00
31.3.2018 31.3.2017
xxxii) Derivatives
(1) Forward Rate Agreement / Interest Rate Swap
Particulars
(i) The notional principal of swap agreements
(ii) Losses which would be incurred if counter parties failed to fulfil
their obligations under the agreements
(iii) Collateral required by the NBFC upon entering into swaps
(Book Debts)
2,493.27
193.35
660.00
2,656.00
208.55
660.00
78 Madura Micro Finance
NotesNotes
(iv) Concentration of credit risk arising from the swapping
(v) The fair value of the swap book
-
193.35
-
208.55
2) Exchange Traded Interest Rate (IR) Derivatives
The company does not have any Interest Rate (IR) Derivatives
3) Disclosures on Risk Exposure in Derivatives
Qualitative Disclosures
A. Financial risk management objectives
The company's treasury function manages and monitors various risks relating to treasury operations of
the company, including currency risk, market risk, and liquidity risk. In course of managing these risks
the company may use various market instruments as permissible for the company based on RBI
guidelines and internal approvals. The company does not enter into any trade in financial instruments
including derivatives for speculative purposes.
B. Company has entered into a full currency swap agreement with RBL bank to hedge the interest and
currency risk relating to the ECB of USD 4 million from World Business Capital. The swap agreement
covers the total principal and interest payment due on the ECB at USD-INR spot reference rate of 66.40 stand interest rate of 12.8% p.a. For the year ended 31 March 2018, the principal loan amount is restated
at closing exchange rate and the resultant gain of Rs. 51,97,436 is accounted in the Profit and Loss
account. The hedge instrument covering currency and interest rate swap is marked to market and the
resultant loss of Rs. 1,93,34,965 is taken to Profit and Loss account.
C. The Company had not adopted the Guidance Note on accounting for Derivative contracts in the earlier
year and hence there has been a change in accounting policy to give effect to the ICAI's Guidance Note.
Quantitative Disclosures
Derivatives (Notional Principal Amount) For hedging
Marked to Market Position
Asset (+)
Liabilities (-)
Credit Exposure
Unhedged Exposures
2,493.27
2,762.27
(2,955.62)
193.35
-
2,656.00
3,000.69
(3,209.24)
208.55
-
Currency and Interest rate derivatives
31.3.2018 31.3.2017
Refer to Accounting Policy No. 1(I) & Note No. 3(C) below
79Madura Micro Finance
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80 Madura Micro Finance
81
Madura Micro Education
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF MADURA MICRO EDUCATION PRIVATE
LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Madura Micro Education Private Limited
(“the Company”), which comprise the Balance Sheet as at 31st March 2018 the Statement of Profit and Loss and the
Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other
explanatory information.
Management's responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013
(“the Act”) with respect to the preparation of these Standalone 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 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 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 controls, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone 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 there under.
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 the 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 a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate
internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the
accounting estimates made by the 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 Standalone financial statements.
Auditors Report
82 Madura Micro Education
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Standalone) 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 31st March 2018;
b) In the case of the Statement of Profit and Loss of its Loss for the year ended 31st March 2018; and
c) In the case of the Cash Flow Statement, of the Cash Flows for the year then ended.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2016 (“the Order”), as amended, 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” a statement
on the matters specified in paragraphs 3 and 4 of the Order .
2. As required by section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears
from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are
in agreement with the books of account.
d) In our opinion, the aforesaid (Standalone) 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 March 31, 2018 taken on record by
the Board of Directors, none of the directors is disqualified as on March 31, 2018 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) There are no pending litigations.
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses. .
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
Auditors Report
Place of Signature : ChennaindDate: 02 May 2018
83Madura Micro Education
For S.N.S AssociatesCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:006297S)S.NAGARAJAN (Partner)MEMBERSHIP No:20899
Annexure A to the Independent Auditors' Report- To the Members of Madura Micro Education Private Limited
(I)
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of
fixed assets
(b) The Fixed Assets have been physically verified by the Management during the year and no material discrepancies were
noticed on such verification. In our opinion, the periodicity of the verification is reasonable having regard to the size of
the Company and the nature of its assets.
(c) The Company does not have any immovable properties.
(ii) The Company does not have any inventories.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or
other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the
provisions of section 185 and 186 of the Companies Act, 2013, with respect to loans availed by it.
(v) The Company has not accepted deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act,
2013, for any of the activities of the Company.
(vii)
(a) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, the amounts deducted/accrued in the books of accounts in respect of undisputed statutory dues including
provident fund, employees state insurance, excise, income tax, sales tax, value added tax, duty of customs, service tax,
cess and other statutory dues have been regularly deposited during the year by the Company withappropriate
authorities. According to the information and explanations given to us, there are no undisputed amounts payable in
respect of provident fund, employees state insurance, income tax, sales tax, value added tax, duty of customs, excise,
service tax, cess and other statutory dues which were in arrears as on 31st March 2018 for a period of more than six
months from the date they became payable.
(b) There are no dues of income tax, sales tax, value added tax, duty of customs, excise, service tax, cess or other statutory
dues that have not been deposited on account of any dispute.
(viii) The Company has not defaulted in the repayment of dues to banks, financial institutions or debenture holders
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). As
per the records of the Company, the term loans availed during the year were applied for the purposes for which those
are raised.
(x) As per the records of the Company and according to the information and explanations given to us, no frauds on the
company by its officers or employees have been noticed or reported during the year.
(xi) According to the information and explanations given to us, the Company has not paid any managerial remuneration to
its Directors requiring approval mandated by the provisions of section 197 read with Schedule V to the Companies Act,
2013.
(xii) The Company is not a nidhi company.
(xiii) In our opinion, all transactions with related parties are in compliance with section 177 and 188 of the Companies Act,
2013 and the details have been disclosed in the financial statements as required by the applicable Accounting
Standard.
(xiv) According to the records of the Company, the Company has not made any preferential allotment or private placement
of its shares or fully or partly convertible debentures during the year under review.
Auditors Report
84 Madura Micro Education
(xv) Based on the audit procedures performed and the information and explanations given to us, the Company has
not entered into any non-cash transactions with the Directors or persons connected with the Directors.
(xvi) In our opinion, the Company is not required to be registered under section 45IA of the Reserve Bank of India
Act, 1934.
Auditors Report
Place of Signature : ChennaindDate: 02 May 2018
85Madura Micro Education
For S.N.S AssociatesCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:006297S)S.NAGARAJAN (Partner)MEMBERSHIP No:20899
“Annexure B” to the Independent Auditor's Report of even date on the Standalone Financial Statements of
MADURA MICRO EDUCATION PRIVATE LIMITED
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 MADURA MICRO EDUCATION PRIVATE
LIMITED (“the Company”) as of 31st March 2018 in conjunction with our audit of the standalone financial statements
of the company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internal financial controls based on
the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over financial
reporting issued by the Institute of Chartered Accountants of India. 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.
Auditor's Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over 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 internal financial controls
system 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 procedure selected depends on the auditor's
judgment, including the assessment of the risk 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 Reporting
A Company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of 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
Auditors Report
86 Madura Micro Education
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 Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of
collusion or improper management override of controls, material misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future
periods are subject to the risk that the internal financial control over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In 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, 2018,
based on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India.
Auditors Report
Place of Signature : Chennaind
Date: 02 May 2018
87Madura Micro Education
For S.N.S AssociatesCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:006297S)S.NAGARAJAN (Partner)MEMBERSHIP No:20899
Significant Accounting Policies 1
Shareholders' Funds
As at31.03.2018
As at31.03.2017
EQUITY AND LIABILITIES
(a) Share Capital
(b) Reserves and Surplus
Non Current Liabilities
(a) Long Term Borrowings
(b) Other Long Term Liabilities
(c) Long Term Provisions
Current Liabilities
(a) Short term borrowings
(b) Other Current Liabilities
(c) Short Term Provisions
3,599,332 10,476,259
Non Current Assets
ASSETS
TOTAL
10,476,259 TOTAL
Note No
2
3
4
5
6
7
8
9
20,208,924
7,412,091
569,268
28,190,283
14,900,000
(33,359,740)
(18,459,740)
303,001
271,643
171,072
745,716
14,900,000
(40,076,651)
(25,176,651)
16,419,750
7,412,091
512,538
24,344,379
88,401
4,104,403
238,800
4,431,604
743,391
4,463,957
504,004
5,711,352
4,764,907
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
(b) Other non current assets
(a) Cash and cash equivalents
(b) Other current assets
Current Assets
10
11
12
13
14
4,755,017
9,890
466,413
2,355,286
457,845
3,279,544
319,788
296,493
23,295
3,599,332
Mohan Eddy
Director
Tara Thiagarajan
Director
ndChennai / Date: 02 May 2018
See accompanying Notes to Financial Statements
Vide out report of even date attached
Balance Sheet
For S.N.S AssociatesCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:006297S)S.NAGARAJAN (Partner)MEMBERSHIP No:20899
88 Madura Micro Education
Profit and Loss
I. Revenue from Operations
II. Other Income
III. Total Revenue
IV. Expenses:
Employee Benefits Expenses
Finance Cost
Depreciation
Other Expenses
Total Expenses
V. Profit before exceptional and
extraordinary items and tax
VI. Exceptional Items
VII. Profit before extraordinary items and tax
VIII. Extraordinary Items
IX. Profit before tax
X. Tax expense
Current tax
Deferred Tax
XI. Profit or loss for the period from continuing operations
XII. Proift or loss from discontinuing operations before Tax
XIII. Tax expense of discontinuing operations
XIV. Profit/loss from discontunuing operations
XV. Profit for the period
XVI. Earnings per share
(1) Basic
(2) Diluted
See accompanying Notes to Financial Statements
Vide out report of even date attached
15
16
9,536,850
483,137
10,019,987
17
18
9 & 10
19
9,178,109
1,454,498
7,178,369
2,647,103
20,458,079
-10,438,092
-
-10,438,092
-
-10,438,092
-
-
-10,438,092
6,708,400
85,387
6,793,787
7,351,356
1,446,926
2,527,148
2,185,268
13,510,698
-6,716,911
-
-6,716,911
-
-6,716,911
-
-
-6,716,911
-
-
-
-6,716,911
-4.51
-4.51
Mohan Eddy
Director
Tara Thiagarajan
Director
As at31.03.2018
As at31.03.2017Note No
-
-
-
-10,438,092
-7.01
-7.01
ndChennai / Date: 02 May 2018
For S.N.S AssociatesCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:006297S)S.NAGARAJAN (Partner)MEMBERSHIP No:20899
89Madura Micro Education
Cash Flow
Net Profit before tax
Less: Depreciation
Interest expense
Operating Profit before working capital changes
Decrease (Increase) in Other Current Assets
Increase in short term provisions
Decrease (Increase) in Other Current Liabilities
Increase in Long Term Provisions
Increase in other non current assets
Net Cash from Operating Activities
CASH FLOW FROM INVESTING ACTIVITIES
Purcase of fixed assets and intangible assets
(Increase)/Decrease in Capital work in progress
Net Cash from Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Increase in Long Term Borrowings
(Decrease)/Increase in Short Term Borrowings
Interest paid
Funds received from Holding Company
Net Cash from Financing Activities
Net Cash generated during the year
Opening Cash and Cash Equivalents
Closing Cash and Cash Equivalents
CASH FLOW FROM OPERATING ACTIVITIES
31.03.2018 31.03.2017Year endedYear ended
-6,716,911
2,527,148
1,212,536
-2,977,227
-13,405
67,728
43,587
-56,730
46,159
-2,889,888
-141,500
-
-141,500
-
-
-214,600
-1,212,536
-
-1,427,136
-4,458,524
4,755,017
296,493
-10,438,092
7,178,369
1,213,015
-2,046,708
754,047
-98,751
-488,239
159,592
352,120
-1,367,939
-4,098,429
258,590
-3,839,839
-
-
270,605
-1,213,015
-
-942,410
-6,150,188
10,905,205
4,755,017
Mohan Eddy
Director
Tara Thiagarajan
Director
ndChennai / Date: 02 May 2018
For S.N.S AssociatesCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:006297S)S.NAGARAJAN (Partner)MEMBERSHIP No:20899
90 Madura Micro Education
Notes
1 . SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements are prepared on historical cost convention and materially comply a)
with the mandatory accounting standards issued under the Companies Act, 2013
b) Fixed Assets
The Fixed Assets are stated at cost.
The Fixed Assets are depreciated on Straight Line Basis at the following rates:
Assets costing less than Rs.5,000/- are fully depreciated in the year of purchase.
c) Revenue Recognition
The fees recceiable in respect of courses conducted is reckoned on accrual basis on the basis of the
courses conducted during the year. Other income is accounted for on accrual basis.
d) Expenses are accounted for on accrual basis.
e) The provisions of Payment of Gratuity Act are not applicable to the Company. The Company contributes
to Provident Fund and Employees State Insurance which are charged off to revenue as incurred.
2 . SHARE CAPITAL
Authorised
50,00,000 Equity shares of Rs.10/- each
Issued, Subscribed and Paid up
14,90,000 Equity Shares of Rs.10/- each fully paid up
Notes:
1. Reconciliation of the number of shares outstanding at the beginning and end of the year
Number of shares at the beginning of the period
Shares issued during the year
Shares outstanding at the end of the period
2. Details of shares held by a shareholder holding more than 5% of the issued shares
Name of the Shareholder
Madura Micro Finance Limited
3. Details of shares held by the holding company
Name of the holding company
Madura Micro Finance Limited
4. Details of shares allotted for a consideration other than cash
Educational content on digital media
Computer accessories
Office Equipment
Furniture and fittings
33.33%
33.33%
20.00%
15.00%
50,000,000
14,900,000
1,490,000
-
1,490,000
No. of shares
1,490,000
No. of shares
1,490,000
1,480,000
33.33%
33.33%
20.00%
15.00%
31.03.201731.03.2018
50,000,000
14,900,000
1,490,000
-
1,490,000
No. of shares
1,490,000
No. of shares
1,490,000
1,480,000
91Madura Micro Education
NotesNotes
3. RESERVES AND SURPLUS
Debit balance in profit and loss statement
Loss for the year
31-3-2017
22,921,648
10,438,092
33,359,740
4. LONG TERM BORROWINGS
Borrowings from National Skill Development Corporation
Less: Repayable within 1 year classified as current liabilities
Secured by a charge on the assets acquired out of the loan, project cash flows and intellectual property of
the Company.The Loan is also secured by a corporate guarantee issued by the Holding Company, Madura
Micro Finance Limited. The Company is repayable over a period of eight years with an initial moratorium of
4 years. The repayment is to commence from 07th October 2018. The loan carries Interest at 6% per annum.
20,208,924
-
20,208,924
5 . OTHER LONG TERM LIABILITIES
Madura Micro Finance Limited
The amount due to the holding company Madura Micro Finance Limited is repayable
after 31.03.2017 and hence the entire amount outstanding is classified under the
other Long term liability.
6 . OTHER LONG TERM PROVISIONS
Provision for Gratuity
Provision for Leave encashment
7 . SHORT TERM BORROWINGS
ICICI Bank Adyar
Represents cheques issued in excess of the balance available with the Bank.
7,412,091
7,412,091
250,791
318,477
569,268
8. OTHER CURRENT LIABILITIES
Current maturities of Long term Borrowings
Sundry Creditors
-
271,643
271,643
9. SHORT TERM PROVISIONS
Provision for employees
Provident Fund and ESI Contribution
Other Provisions
31-3-2018
33,359,740
6,716,911
40,076,651
20,208,924
3,789,174
16,419,750
7,412,091
7,412,091
194,730
317,808
512,538
88,401
88,401
3,789,174
315,229
4,104,403
34,388
204,412
238,800
10. (a) Fixed - Assets - Tangibles
COST BLOCK
Computer Accessories
Office Equipment
Furniture and fittings
As at
31.03.2018
1,369,702
167,459
100,529
1,637,690
AdditionsCost as at
01.04.2017
141,500
-
-
141,500
1,228,202
167,459
100,529
1,496,190
303,001
303,001
96,020
75,052
171,072
92 Madura Micro Education
Notes
DEPRECIATION BLOCK
Computer Accessories
Office Equipment
Furniture and fittings
NET BLOCK
Computer Accessories
Office Equipment
Furniture and fittings
COST BLOCK
Educational content on digital media
Other software
DEPRECIATION BLOCK
Educational content on digital media
Other software
NET BLOCK
Educational content on digital media
Other software
11. (a) FIXED ASSETS - Intangibles
12. OTHER NON CURRENT ASSETS
Rent Advance
Tax Deducted at Source
Preliminary Expenses (to the extent not written off or adjusted)
996,714
102,352
72,210
1,171,276
As at
31.03.2018
372,988
65,107
28,318
466,413
As at
31.03.2018
As at
31.03.2018
20,324,923
2,427,631
22,752,554
As at
31.03.2018
As at
31.03.2018
19,320,888
1,076,380
20,397,268
1,004,035
1,351,251
2,355,286
504,004
75,000
71,004
358,000
379,340
32,612
6,525
418,477
617,374
69,740
65,685
752,799
For the
Year
610,828
97,719
34,844
743,391
As at
01.04.2017
Additions
-
-
-
20,324,923
2,427,631
22,752,554
For the
Year
As at
31.03.2017
1,299,542
809,129
2,108,671
18,021,346
267,251
18,288,597
2,303,577
2,160,380
4,463,957
75,000
24,845
358,000
457,845
Upto
01.04.2017
Upto
01.04.2017
Cost as at
01.04.2017
13 . CASH AND CASH EQUIVALENTS
147,875
5,871
4,601,271
4,755,017
Balances with banks in current account
Cash in Hand
Deposits with banks
212,832
1,638
82,023
296,493
14 . OTHER CURRENT ASSETS
23,295
23,295
Others
15 . REVENUE FROM OPERATIONS
Course Fees received
9,890
9,890
6,708,400 6,708,400
9,536,850 9,536,850
93Madura Micro Education
Notes
Interest on deposits with Bank
Interest received from others
Misc. Income
16. OTHER INCOME
477,311
5,536
290
483,137
Salary & Wages
Contribution to Provident Fund
Contribution to Employee state insurance
Contribution to Gratuity
Contribution to Welfare fund
Contribution to Leave Encashment
17 . EMPLOYEE BENEFIT EXPENSES 8,315,064
561,581
120,058
63,151
733
117,522
9,178,109
Interest paid National Skill Development Corporation
Other Interest
Bank Charges
18. FINANCE COST
1,213,015
2,862
238,621
1,454,498
Office Rent
Rates and Taxes
Filing Fees
Office Maintenance
Professional Fees
Travelling expenses
Other Expenses
Auditors' Remuneration - For Audit
19 . OTHER EXPENSES
388,200
4,290
12,376
170,809
813,744
634,556
557,578
65,550
2,647,103
81,774
3,613
-
85,387
6,835,563
458,999
103,415
(56,061)
940
8,500
7,351,356
1,212,536
787
233,603
1,446,926
528,062
4,190
4,593
70,797
349,790
397,992
762,299
67,545
2,185,268
20. In view of the loss, provision for taxation is not considered necessary
21. Though the Company has unabsorbed losses, it has been considered prudent not to recognise any
Deferred Tax Asset.
Notes
22. Nil Nil Earnings in foreign Exchange
23. Nil Nil Expenditure in foreign currency Professional Fees
24. RELATED PARTY TRANSACTIONS
Name of the Related Party
Nature of Relationship
Details of transactions during the year
Amount due to Holding Company
Corporate guarantee given by Holding Company
Madura Micro Finance Limited
Holding Company
7,412,091
20,208,924
7,412,091
20,208,924
31-3-201731-3-2018
94 Madura Micro Education
Notes
The Company has an unfunded defined benefit gratuity plan.
Details of Defined Benefit - Gratuity Plan
Fair Value of Plan Assets
Present value of unfunded obligation
Less: Unrecognised past service cost
Plan asset/(liability)
Change in the present value of Defined Benefit Gratuity Plan
Opening defined benefit obligation
Interest cost
Current Service cost
Actuarial (gains)/losses on obligation
Closing defined benefit obligation
Principal Assumptions used in determining
Defined Benefit Gratuity Plan
Discount Rate
Expected rate of return on plan assets
Salary increment rate
Attrition rate
Details of Other Defined Benefit Plan
Leave Encashment
Fair Value of plan assets
Present value of unfunded obligation
Less: Unrecognised past service cost
Plan asset (liability)
25. POST EMPLOYMENT BENEFITS
-
194,730
-
-194,730
250,791
-
-56,061
-
194,730
6.94%
Not Applicable
10%
10%
-
317,808
-
-317,808
-
250,791
-
-250,791
187,640
-
63,151
-
250,791
7.60%
Not Applicable
10%
10%
-
318,477
-
-318,477
Change in the present value of the Defined benefit Plan
Opening defined benefit obligation
Interest cost
Current Service cost
Actuarial (gains)/losses on obligation
Closing defined benefit obligation
222,036
-
117,522
-21,081
318,477
318,477
-
8,500
-9,169
317,808
Principal Assumptions used in determining
Defined Benefit Gratuity Plan
Discount Rate
Expected rate of return on plan assets
Salary increment rate
Attrition rate
Proportion of leave availment
7.60%
Not applicable
10%
10%
90%
6.94%
Not applicable
10%
10%
90%
26. Earnings per share
Loss for the period
Number of Shares outstanding at the end of the period
Earnings per share
Signatures to Notes
-13,694,162
1,490,000
-9.19
-6,716,911
1,490,000
-4.51
Mohan Eddy
Director
Tara Thiagarajan
Director
ndChennai / Date: 02 May 2018
For S.N.S AssociatesCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:006297S)S.NAGARAJAN (Partner)MEMBERSHIP No:20899
95Madura Micro Education
96
Consolidated Financial StatementsMadura Micro Finance
Auditors Report
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MADURA MICRO FINANCE LIMITED
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Madura Micro Finance Limited (hereinafter
referred to as “the Holding Company”) and its subsidiary (together referred to as “the Group”),comprising of the
Consolidated Balance Sheet as at 31st March, 2018, the Consolidated Statement of Profit and Loss, the Consolidated Cash
Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as “the consolidated financial statements”).
Management's Responsibility for the Consolidated Financial Statements
The Holding Company's Board of Directors is responsible for the preparation of these consolidated financial statements in
terms of the requirements of the Companies Act, 2013 (hereinafter referred to as “the Act”) that give a true and fair view of
the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in
accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under
Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other
irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the consolidated financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the
consolidated financial statements by the Directors of the Holding Company, as aforesaid.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated 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 consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the
consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control relevant to the Holding Company's preparation of the
consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Holding Company's Board of Directors, as well as evaluating the
overall presentation of the consolidated financial statements.
We believe that the audit evidence obtained by usand the audit evidence obtained by other auditor in terms of report
referred to in Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the
consolidated financial statements.
Basis for Qualified Opinion
As explained in Note no 27, the holding company's application to the Central Government for the reappointment of the
Managing Director for a period of 5 years commencing from 1.10. 2016 to 30.09.2021, under sec 196, read with clause (e) of
part 1 of Schedule v of The Companies Act 2013 has been rejected since the company has not complied with cl (e) of part 1 of
schedule xiii of The Companies Act 1956, in respect of her earlier reappointment made from 26'th February 2012.
Madura Micro Finance 97
Company has applied in July 2017, for approval of her reappointment from 2012 to 2015 with compounding and is awaiting
approval, after which approval for current reappointment will be sought. Pending receipt of Central Government approval,
payment of Rs. 67.29 lacs has been made towards Managing Director remuneration for the current year, in the
accompanying financial statements.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the
matter described in the Basis for Qualified Opinion paragraph above, the aforesaid consolidated 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, of the state of affairs of the Company as at 31st March, 2018, and its profit and its cash
flows for the year ended on that date.
Other Matters
1. The comparative financial information of the Company for the year ended 31st March 2017 prepared in accordance with
AS included in this Statement have been audited by the predecessor auditor. The report of the predecessor auditor on the
comparative financial information dated 26th May 2017 (for the year ended March 2017) expressed a modified opinion.
2. We did not audit the financial statements of the subsidiary whose financial statements reflect total assets of Rs. 35,99,332
as at 31st Mar 2018, total Revenues of Rs. 67,93,787, loss after tax of Rs. 67,16,911 and net cash outflows amounting to
Rs.44,58,523 for the year ended on that date, as considered in the consolidated financial statements. These financial
statements have been audited by other auditor whose report has been furnished to us by the Management and our
opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect
of subsidiary and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid
subsidiary, is based solely on the reports of the other auditors. Our opinion on the consolidated financial statements, and
our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matter with respect
to our reliance on the work done and the report of the other auditor.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
a) We have sought andobtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit of the aforesaid consolidated financial statements
b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper
books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been
kept so far as it appears from our examination of those books and report of other auditor.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, and the Consolidated Cash Flow
Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of
preparation of the consolidated financial statements.
d) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the
aforesaid consolidated 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 the written representations received from the directors of the Holding Company as on 31st
March,2018taken on record by the Board of Directors of the Holding Company and subsidiary company incorporated in
India, none of the directors of the Group companies,is disqualified as on 31st March, 2018from 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 Group, and the operating
effectiveness of such controls, refer to our separate Report in “Annexure A”.
g) With respect to the other matters to be included in the Auditor's Report on Consolidated Financial Statements in
accordance with Rule 11 of the Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
Auditors Report
Madura Micro Finance98
(I) The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position
of the Group,– Refer Note 26 to the consolidated financial statements.
(ii) The Group has long-term contracts including derivative contracts and provision has been made for any material
foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Holding Company, and its subsidiary companies incorporated in India.
Place of Signature : Chennaird
Dated: 23 July 2018
Auditors Report
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
99Madura Micro Finance
“Annexure A”
Referred to in paragraph 1(f) on 'Report on Other Legal and Regulatory Requirements' of our report of even
dateon the consolidated financial statements ofMadura Micro Finance Limted
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended
March 31, 2018, we have audited the internal financial controls over financial reporting of Madura Micro Finance Limited
(hereinafter referred to as “the Holding Company”) and its subsidiary company, Madura Micro Education Private
Limited,which isa company incorporated in India as on that date..
Management's Responsibility for Internal Financial Controls
The respective Board of Directors of the Holding company, its subsidiary company, which is a company incorporated in
India, are responsible for establishing and maintaining internal financial controls based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to the respective 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' Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on
our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over
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
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 were established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend on the 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 Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of 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 authorisations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that
could have a material effect on the financial statements.
Auditors Report
100 Madura Micro Finance
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility
of collusion or improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control over financial reporting may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, the Holding Company and its subsidiary company which is incorporated in India,have, 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, 2018, based on the internal
control over financial reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.
Other Matters
Our aforesaid reports u/s 143 (3) of the Act on the adequacy and operating effectiveness of the internal financial
controls over financial reporting in so far as it relates to the subsidiary Madura Micro Education Private Limited
is based on the corresponding standalone report of the auditor ofthatcompany.
Our opinion is not modified in respect of this matter
Place of Signature : Chennaird
Dated: 23 July 2018
Auditors Report
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
Madura Micro Finance 101
Balance Sheet
Shareholders' Funds
EQUITY AND LIABILITIES
(a) Share Capital
(b) Reserves and Surplus
Non Current Liabilities
(a) Long Term Borrowings
(b) Other Long Term Liabilities
(c) Long Term Provisions
Current Liabilities
(a) Short term borrowings
(b) Trade Payable
I) Total outstanding dues of Micro and Small Enterprises
ii) Total outstanding dues of Creditors other than Micro
and Small Enterprises
(c) Other Current Liabilities
(d) Short Term Provisions
Non Current Assets
ASSETS
(a) Fixed Assets
(i) Tangible Assets
(ii) Intangible Assets
(b) Non current Investments
(c) Deferred Tax Assets (net)
(d) Long Term Loans and Advances
(e) Other non current assets
TOTAL
Current Assets
As at31.03.2018
As at31.03.2017
12,16,07,65,078 9,48,69,69,168
3,44,86,281
48,58,555
4,00,67,34,023 2,65,40,41,847
Note no
2
3
4
5
6
4 ,81,44,53,423
5 ,85,736
7,33,85,387
4,88,84,24,546
7,19,47,610
2,29,27,46,576
2,36,46,94,186
6,69,75,210
1,66,11,63,764
1,72,81,38,974
3,45,42,77,065
5,85,736
5,78,44,776
3,51,27,07,577
1,88,98,152
-
17,53,62,853
4,55,51,72,362
15,82,12,979
4,90,76,46,346
7
8
9
10
11
12
2,16,84,181
47,39,429
13
14
15
16
20,00,000
3,90,40,134
3,78,32,43,388
14,31,05,665
20,00,000
3,22,90,683
2,41,12,23,289
18,21,04,265
1,15,02,736
-
7,05,91,322
4,08,60,45,380
7,79,83,179
4,24,61,22,617
(a) Current Investments
(b) Cash and Cash Equivalents
(c) Short Term Loans and Advances
(d) Other Current Assets
TOTAL
8,15,40,31,055
12,16,07,65,078 9,48,69,69,168
17
18
19
20
-
63,54,42,867
7,37,10,60,118
14,75,28,070
5,00,00,000
84,39,51,585
5,82,11,84,283
11,77,91,453
6,83,29,27,321
Significant Accounting Policies
The accompanying notes 1 to 39 form an integral part of financial statements
1
Sanin Panicker
Company Secretary
Mohan Eddy
Wholetime Director
Tara Thiagarajan
Managing Director
M. Narayanan
President & CFO
As per our report of even date
rdChennai / Date: 23 July 2018
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
102 Madura Micro Finance
Consolidated
Profit and Loss
As at31.03.2018
As at31.03.2017
I. Revenue from Operations
II. Other Income
III. Total Revenue
Note no
1 ,76,25,95,229
4,23,74,171
1 ,80,49,69,400
2 ,24,86,79,725
8,95,20,095
2,33,81,99,820
22
23
11 & 12
25
35,20,16,107
93,01,41,032
1,88,05,613
41,89,88,577
1 ,71,99,51,329
27,12,79,527
74,60,28,363
3,47,72,526
26,81,25,715
1 ,32,02,06,131
IV. Expenses:
Employee Benefits Expenses
Finance Cost
Depreciation
Other Expenses
Total Expenses
61,82,48,491
-
61,82,48,491
-
61,82,48,491
23,34,42,824
- 67,49,452
39,15,55,119
48,47,63,269
-
48,47,63,269
-
48,47,63,269
19,85,00,000
-54,25,547
29,16,88,816
V. Profit before exceptional and extraordinary items and tax
VI. Exceptional Items
VII. Profit before extraordinary items and tax
VIII. Extraordinary Items
IX. Profit before tax
X. Tax expense
Current tax
Deferred Tax
XI. Profit or loss for the period from continuing operations
XII. Profit or loss from discontinuing operations
XIII. Tax expense of discontinuing operations
XIV. Profit/loss from discontinuing operations
XV. Profit for the year
XVI. Earnings per share
(1) Basic
(2) Diluted
(3) Nominal Value of Share
-
-
-
39,15,55,119
55.21
55.21
10.00
-
-
-
29,16,88,816
47.59
47.59
10.00
Sanin Panicker
Company Secretary
Mohan Eddy
Wholetime Director
Tara Thiagarajan
Managing Director
M. Narayanan
President & CFO
21
22
36
36
Significant Accounting Policies
The accompanying notes 1 to 39 form an integral part of financial statements
1
As per our report of even date
rdChennai / Date: 23 July 2018
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
103Madura Micro Finance
Consolidated
Cash Flow
31.03.2018 31.03.2017Year ended
Profit Before Tax
Add: Depreciation
Interest Expense relating to Micro Education
Provision made for Advances and NPAs
Provision for impairment of Advances to Subsidiary
Provision for impairment of Investment in Subsidiary
Provision made for assets derecognised
Net Loss on foreign currency translation
Less: Net gain on sale of investments
Dividend received from Mutual Funds
61,82,48,491
1,88,05,613
12,13,323
5,40,95,924
-
-
24,91,163
1,41,37,529
70,89,92,043
3,68,76,266
-
Operating profit before changes in operating assets and liabilities
Changes in operating assets and liabilities
(Increase)/Decrease in advance to Self Help Groups and other loans
(Increase)/Decrease in other Current Assets and Non Current Assets
(Increase)/Decrease in Term Deposits under Lien
Increase/(Decrease) in Current Liabilities and other provisions
Tax paid net of provisions
Total Cash flow from operating activities A
67,21,15,777
-2,92,18,95,934
26,19,562
3,16,96,612
13,76,75,223
-21,82,93,396
-2,29,60,82,156
Cash flows from Investing Activities
Purchase of fixed assets
(Increase)/Decrease in Capital work in progress
Redemption of mutual fund
Net gain on sale of investments
Dividend received from Mutual Funds
Total cash flow from investing activities B
56,18,00,225
-2,99,68,69,023
3,60,83,813
3,65,51,746
-2,46,81,302
-19,77,08,481
-2,58,48,23,022
-3,17,26,839
-
5,00,00,000
3,68,76,266
-
5,51,49,427
-3,53,65,521
2,58,590
-1,55,73,135
56,76,403
89,73,306
-3,60,30,357
Year endedCash flows from Operating Activities
48,47,63,269
3,47,72,526
12,15,877
4,34,95,171
-
1,49,00,000
-26,96,909
-
57,64,49,934
56,76,403
89,73,306
Cash flows from Financing Activities
Proceeds from issue of Shares (including Share Premium)
Long Term Borrowings Taken
Long Term Borrowings Repaid
Short Term Borrowings Repaid/Taken (net)
Interest Expense relating to Micro Education
Total Cash from Financing activities C
Total cash generated during the year (A + B + C)
Cash and Cash Equivalents at the beginning of the Year
Cash and Cash Equivalents at the end of the year
24,50,00,093
5,72,00,00,000
-3,91,39,04,825
73,95,416
-12,13,323
2,05,72,77,361
-18,36,55,367
80,09,83,626
61,73,28,259
40,00,00,180
6,00,00,00,000
-3,27,47,92,956
12,04,164
-12,15,877
3,12,51,95,511
50,43,42,132
29,66,41,494
80,09,83,626
104 Madura Micro Finance
Consolidated
Cash Flow
Reconciliation of Cash and Cash Equivalent with Balance Sheet
Cash and Bank Balances at the end of the year
Less: Bank Balances not considered as Cash and Cash Equivalent
as defined in AS3 Cash Flow statement
Net Cash and Cash equivalents (as defined in AS3 Cash Flow Statement)
included in Note No.18
63,54,42,867
1,81,14,608
61,73,28,259
84,39,51,585
4,29,67,959
80,09,83,626
Sanin Panicker
Company Secretary
Mohan Eddy
Wholetime Director
Tara Thiagarajan
Managing Director
M. Narayanan
President & CFO
rdChennai / Date: 23 July 2018
For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS
(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari
(Partner)MEMBERSHIP No:024105
105Madura Micro Finance
Consolidated
31.03.2018 31.03.2017Year endedYear ended
A. Corporate Information
Madura Micro Finance Limited ("the Company"), headquartered in Chennai, is a Company incorporated on
02.09.2005 and registered with the Reserve Bank of India as a Non-deposit accepting Non-Banking Financial
Company (NBFC-ND) with effect from 28.02.2006. The Company got classified as a NBFC-MFI effective
11.12.2013. The consolidated financial statements relate to the company and its subsidiary, Madura Micro
Education Private Limited. The Group (comprising of the company and its subsidiary) are primarily engaged in
the business of providing loans to the Self Help Group (SHG) members and other loans and providing skill
development training courses.
B. Basis of Preparation
The financial statements have been prepared in accordance with generally accepted accounting principles in
India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects
with Accounting Standards notified under Section 133 of the Companies Act 2013, reads with Rule 7 of the
Companies (Accounts) Rules, the Companies (Accounting Standards) Amendment Rules, 2016 and the provisions
of Reserve Bank of India (RBI) as applicable to NBFC-MFI and a systematically important NBFC-ND. The financial
statements have been prepared on accrual basis and under historical cost convention except interest on loans
which have been classified as Non-Performing Assets (NPA) and is accounted for on cash basis. The accounting
policies followed are consistent with those of previous years.
C. Principles of consolidation
The financial statement of the subsidiary company in the consolidation are drawn up to the same reporting date
as of the company for purpose of consolidation.
The consolidated financial statements have been prepared in accordance with the According Standard (AS) 21
Consolidated Financial Statement) and generally accepted accounting principles.
The Consolidated Financial Statements relate to Madura Micro Finance Limited and its subsidiary Madura Micro
Education Private Limited. The Consolidated Financial Statements have been prepared on the following basis:
I. The Financial statements of the Company and its subsidiary have been prepared on a line by consolidation by
adding together the book values of like items of assets and liabilities, income and expenses as per the respective
financial statements duly certified by the Statutory Auditors of the respective companies. Intra group balances
and intra group transactions have been eliminated.
ii. The Consolidated Financial Statements have been prepared using uniform accounting policies for the like
transactions and other events in similar circumstances and are presented to the extent possible in the same
manner as the Company's individual financial statements.
iii. The subsidiary company consolidated in the Company's Financial Statements are as follows:
Name of the
Subsidiary
Country of
Incorporation
Percentage of
voting power held as
on 31 March 2018
Madura Micro Education
Private LimitedIndia 100% 100%
Percentage of
voting power held as
on 31 March 2017
106 Madura Micro Finance
Notes
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) SIGNIFICANT ACCOUNTING POLICIES
a) Use of Estimates
The preparation of financial statements requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the reporting period like provision for
employee benefits. Management believes that the estimates used in the preparation of financial statements are
prudent and reasonable. Future results may vary from these estimates.
b) Revenue Recognition
I. Interest receivable on loans to Self Help Groups are accounted for on accrual basis at the agreed rate of
interest. Income on any other charges on non-performing asset is recognised only when realized. Any such
income recognised before the asset became non-performing and remaining unrealised is reversed.
ii. In accordance with Reserve Bank of India Guidelines on Securitisation transactions, gains arising from
assignment/securitisation are amortized over the life of the underlying portfolio loans. In case of loss, the same
is recognised in the Statement of Profit and Loss immediately. Income from excess interest spread is recognised
in the Statement of Profit and Loss net of any losses at the time of actual receipt.
iii. Loan processing fees collected from members are recognised on an upfront basis at the time of disbursement
of the loan.
iv. Interest income on deposits with banks is recognised on time proportion accrual basis taking into account the
amount outstanding and the rate applicable.
v. Dividend on Mutual fund units is recognised when the right to receive the dividend is established
vi. The fees receivable in respect of courses conducted is reckoned on accrual basis on the basis of the courses
conducted during the year .
vii. All other incomes are accounted for on accrual basis.
c) Tangible Fixed Assets
All Fixed Assets are stated at historical cost less accumulated depreciation and impairment loss, if any. Cost
comprises the purchase price and any attributable cost of bringing the asset to its working condition for its
intended use.
d) Intangible assets
Computer software and educational content on digital media are stated at the cost of acquisition and amortized
over a period of three years, based on expected future economic benefits accruing to the Company from the year
of acquisition .
e) Depreciation
Depreciation on Tangible Fixed Assets are depreciated on Straight Line Method as per the useful life given in
Schedule II except the following cases where it is depreciated as per the useful lives estimated by management.
Asset Type
Motor Vehicles
Furniture & Fixtures
Electrical Fittings
Temporary Structures
Useful Life
5 years
6.67 years
5 years
1 year
Madura Micro Finance
Notes
107
Fixed assets costing less than Rs.5000/- are fully depreciated in the year of purchase
f) Leases
Leases where the lessor effectively retains, substantially all the risks and benefits of ownership of the leased item,
are classified as operating leases. Operating lease payments are recognised as an expense in the Statement of
profit and loss on a straight line basis over the lease term.
g) Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on
which such investments are made, are classified as current investments. All other investments are classified as
long-term investments. Current investments are carried in the financial statements at lower of cost and fair value
determined on an individual investment basis except for investments in the units of mutual funds in the nature of
current investments that have been valued at the net asset value declared by the mutual fund in respect of each
particular scheme, in accordance with the NBFC directions. Long term investments are carried at cost. However,
provision for diminution in value is made to recognise a decline other than temporary in the value of the
investments. On disposal of an investment the difference between carrying amount and net disposal proceeds
are charged or credited to the statement of profit and loss.
h) Borrowing Costs
Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of
funds. Ancillary borrowing costs including processing fee incurred in connection with arrangement of borrowing
are recognised in the period in which they are incurred.
I) Foreign Currency Transactions
Foreign currency transactions are accounted for at the rate of exchange prevailing on the date of transactions.
Outstanding foreign currency monetary assets and liabilities are translated at the year end rates. Gains/losses
arising on restatement/settlement are adjusted to the Statement of Profit and Loss as applicable.
Company has adopted Accounting of derivative taken for hedging foreign currency loan based on Guidance note
on accounting for Derivative Contracts issued by ICAI. As per this guidance note, Fair value changes on Mark to
Market (gains / losses on MTM) of derivative is accounted to Profit & Loss as on closing date and corresponding
foreign currency loan is stated at closing spot rate as exchange fluctuation.
j) Employee Benefits
1. Retirement benefits in the form of provident fund are defined contribution schemes. The Company has no
obligation, other than the contribution payable to the respective funds. The Company recognises contribution
payable to the respective funds as expenditure, when an employee renders the related service.
2. Gratuity liability, which is unfunded, is a defined benefit obligation and is provided for on the basis of an
actuarial valuation on projected unit credit method made at the end of each financial year. Actuarial gains and
losses for defined benefits plans are recognised in full in the period in which they occur in the Statement of profit
and loss.
3. The company treats accumulated leave expected to be carried forward beyond twelve months as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for based on
the actuarial valuation using the projected unit credit method at the end of each financial year .
108 Madura Micro Finance
Notes
k) Income Taxes
1. Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be
paid to the tax authorities in accordance with the Income Tax Act, 1961, enacted in India.
2. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income
originating during the current year and reversal of timing differences for the earlier years. Deferred tax is
measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.
3. Deferred tax assets are recognised for deductible timing differences only to the extent that there is a reasonable
certainty that sufficient future taxable income will be available against which such deferred tax assets can be
realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be
realized against such future taxable profits.
4. The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes down the
carrying amount of deferred tax asset to the extent that is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available against which deferred tax asset can be
realized
l) Earnings per Share
Basic earnings per share is calcuated by dividing the net profit or loss for the year attributable to equity
sharehoders by the weighted average number of equity shares outstanding during the year. For the purpose of
calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and
the weighted avaerage number of shares oustanding during the year are adjusted for the effects of all dilutive
potential equity shares.
m) Provisions
A provision is recognised when the Company has a present obligation as a result of past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
n) Classification & Provisioning of Loan Portfolio
Classification and provisioning of Microfinance and other is being made as below
i) Standard asset means the asset in respect of which, no default in repayment of principal or payment of interest
is perceived and which does not disclose any problem nor carry more than normal risk attached to the business;
ii) Non-Performing asset (NPA) means an asset for which interest/principal payment has remained overdue for a
period of 90 days or more and includes the total Principal outstanding in respect of the loans where
interest/principal repayment has remained overdue for a period of 90 days or more.
Provisioning Norms:
a) Provision for Standard Advances is made at 0.4% on Standard Assets outstanding
b) Provision for Non-Performing Assets is created for the total principal outstanding on the loan as under:
Higher of a) 1% of the outstanding loan portfolio OR b) 50% of the aggregate loan where interest/principal
repayment has remained overdue for a period of 90 days or more and 100% of aggregate loan where
interest/principal repayment has remained overdue for a period of 180 days or more
In respect of assets de-recognised, provision is made at the rate of 0.4% of the outstanding amounts of assets de-
recognised from the books of the Company as at the balance sheet date.
o) Securitisation
The Company securitises out its loan portfolio, subject to the Minimum Holding Period (MHP) criteria and the
Minimum Retention Requirements (MRR) of RBI, to Special Purpose Vehicles (SPVs) in securitisation transactions.
Such securitised portfolio are de-recognised in the balance sheet when they are sold (true sale criteria being full
met with) and consideration is received by the Company. At the time of the deal, the Company provides liquidity
and credit enhancements on the securitised portfolio, as specified by the rating agencies, not exceeding 20% of
the total securitised instruments, in line with RBI guidelines. The Company also acts as a servicing agent for the
securitised deals. 109Madura Micro Finance
Notes
Notes
2. SHARE CAPITAL
Authorised
1,00,00,000 Equity Shares of Rs.10/- each
Issued, Subscribed and Paid up 71,94,761 (previous year 66,97,521) Equity Shares of Rs.10/- each fully paid up
100,000,000 100,000,000
7,19,47,610 55,575,170
31.03.2018 31.03.2017
Shares held by a shareholder holding more than 5%
Name of the shareholder
Ms.Tara Thiagarajan
A.V.Thomas and Co Ltd
Midland Rubber & Produce Company Ltd
Employees' Welfare Trust
Elevar Equity Mauritius
Mr. M Narayanan
No. of shares
23,30,574
11,59,435
11,59,436
4,95,667
8,65,916
3,64,366
%
32.39%
16.11%
16.12%
6.89%
12.04%
5.06%
No. of shares
24,42,199
8,55,002
8,55,004
4,95,667
8,65,916
3,64,366
%
36.46%
12.77%
12.77%
7.40%
12.93%
5.44%
Reconciliation of the number of shares outstanding at the
beginning and end of the year
Number of shares outstanding at the beginning of the year
Number of shares issued during the year
Number of shares outstanding at the end of the year
66,97,521
4,97,240
7 1,94,761
55,57,517
11,40,004
66,97,521
The Company has issued only one class of shares, viz., Equity Shares. Each Equity Share has a face value of
Rs.10/- each and is entitled to one vote. On liquidation each share is entitled to participate in the assets
proportionate to the paid up value of the share.
59,65,18,893
24,00,27,693
83,65,46,586
22,18,15,000
7,97,00,000
30,15,15,000
84,28,29,871
39,15,55,119
1,23,43,84,990
7,97,00,000
1,15,46,84,990
2,29,27,46,576
3. Reserves and Surplus
Share Premium Account
As per Last Balance Sheet
Add: Received during the year on shares issued
Statutory Reserve (as required under Sec.45IC of RBI Act 1934)
As per Last Balance Sheet
Add: Transfer from Profit and Loss Account
Surplus, Balance in Profit and Loss Account
As per Last Balance Sheet
Add: Profit after tax for the year
Less: Transfer to Statutory Reserve (as required under Sec.45IC
of RBI Act 1934)
Total of Reserves and Surplus Total of Reserves and Surplus
4. LONG TERM BORROWINGS
I) Debentures
a) Secured
14.15% Non-convertible Debentures - Privately placed, Listed.
Secured by hypothecation of loans granted to Self Help Groups.
The maturity date of the Debentures is 13-Sep-2020, with 99.99%
to be redeemed on 13-Sep-2019 and balance on maturity date.
36,60,00,00036,60,00,000
20,79,18,753
38,86,00,140
59,65,18,893
16,08,15,000
6,10,00,000
22,18,15,000
61,21,41,054
29,16,88,817
90,38,29,871
6,10,00,000
84,28,29,871
1,66,11,63,764
110 Madura Micro Finance
Notes
14.84% Non-Convertible Debentures - Privately placed, Listed
Secured by exclusive charge on the loans created out of the
proceeds of the debentures. The NCD is redeemable in one bullet
payment on 08-May-2018.
11.50% Non-Convertible Debentures - Privately placed, Listed
Secured by exclusive charge on loans created out of the proceeds of
the debentures and immovable properties. The NCD is redeemable
in one bullet payment on 31-July-2020.
11.40% Non-convertible Debentures - Privately placed, Un-listed
Secured by exclusive charge on loans created out of the proceeds of
the debentures and immovable properties. The NCD is redeemable
in one bullet payment on 04-Dec-2020.
b) Unsecured
14.25% Non-Convertible Debentures - Privately placed, Listed. The
Debentures are unsecured and are redeemable on 29-Mar-2024.
40,00,00,00040,00,00,000
-40,00,00,000
-33,00,00,000
50,00,00,00050,00,00,000
ii) Term Loans from Banks and Financial Institutions
Secured
From Banks
Axis Bank
City Union Bank
DCB Bank
Dhanalakshmi Bank
Federal Bank
IDBI Bank
South Indian Bank
Canara Bank
Lakshmi Vilas Bank
Kotak Mahindra Bank
Dena Bank
Indian Bank
Andhra Bank
Bank of Baroda
Bandhan Bank
Bank of Maharashtra
RBL Bank Limited
State Bank of Hyderabad
State Bank of Travancore
IDFC Bank
Union Bank of India
State Bank of India
Vijaya Bank
21,42,85,715
3,54,73,274
12,08,30,500
32,80,27,990
-
59,04,76,180
10,45,45,450
3,42,85,711
9,25,74,779
5,00,00,000
11,50,00,000
21,74,17,455
1,35,08,695
43,66,66,667
-
19,34,998
6,25,00,000
9,44,43,171
15,00,00,000
17,38,09,524
19,72,72,727
39,77,86,928
2,25,00,000
46,14,28,575
4,87,51,446
14,83,11,500
24,84,00,909
25,00,00,000
46,85,08,000
14,99,99,810
-
3,37,87,894
10,00,00,000
17,50,00,000
13,88,88,495
-
22,66,66,671
25,00,00,000
-
30,00,00,000
-
-
83,09,52,388
26,36,36,364
35,02,83,321
-
From Financial Institutions
National Bank for Agricultural and Rural Development
Micro Units Development and Refinance Agency Ltd
Au Financiers India Ltd
1,35,41,66,666
18,04,00,000
9,99,99,999
1,25,91,66,666
5,32,00,000
-
31.03.2018 31.03.2017
111Madura Micro Finance
Notes
Hero FinCorp Limited
Hinduja Leyland Finance
Mahindra Finance
Mas Financial Services Limited
Reliance Commercial Finance Limited
Nabkisan Finance Limited
Maanaveeya Development and Finance (P) Ltd
Northern Arc Capital Limited
Tata Capital Financial Services Limited
World Business Capital
L&T Finance
Sundaram Finance Limited
National Skill Development Corporation
Grand Total
iii) Less: Payable within 12 months disclosed under other Current
9,97,91,197
-
-
5,62,49,998
26,18,63,420
8,99,29,172
1,33,33,332
10,12,40,809
5,88,60,000
26,56,00,000
3,33,33,333
7,46,23,456
2,02,08,924
7,42,89,40,070
3,97,46,63,005
3,45,42,77,065
27,74,25,798
20,00,00,000
46,17,32,217
2,50,00,004
-
4,99,74,162
-
-
5,84,00,000
24,93,27,044
-
13,47,87,621
2,02,08,924
9,22,98,37,809
4,41,53,84,386
4,81,44,53,423
All the above loans (except loan from National Skill Development Corporation) are secured by a charge on the
advances granted to Self Help Groups from the proceeds of the Loans. Loan from National Skill Development
Corporation is secured by a charge on the assets acquired out of the loan, project cash flows and intellectual
property of the Subsidiary Company. The loan is also secured by corporate guarantee issued by the Holding
Company, Madura Micro Finance Limited.
The terms of repayment of the term loans are as under.
Nabkisan Finance Ltd
Axis Bank
Axis Bank
Axis Bank
Bandhan Bank
Bank of Baroda
City Union Bank
City Union Bank
Dena Bank
DCB Bank
DCB Bank
DCB Bank
Dhanalakshmi Bank
Dhanalakshmi Bank
Dhanalakshmi Bank
Federal Bank
Hero FinCorp Ltd
Hero FinCorp Ltd
Hinduja Leyland Finance
IDBI Bank
IDBI Bank
IDBI Bank
12.50%
10.90%
10.20%
10.10%
10.80%
10.20%
12.75%
11.00%
10.50%
11.08%
11.08%
10.40%
12.60%
11.85%
11.40%
10.65%
12.75%
10.50%
10.75%
11.50%
11.75%
11.60%
36
24
24
24
24
35
36
36
33
26
26
26
36
36
36
24
26
36
36
24
24
24
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Monthly
Monthly
Monthly
Quarterly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Quarterly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
83,33,333
3,57,14,285
3,57,14,286
2,00,00,000
3,57,14,285
1,33,33,333
15,62,620
8,33,333
2,50,00,000
20,83,333
20,83,333
50,00,000
28,00,000
41,70,000
56,00,000
3,57,14,285
47,42,449
65,67,440
55,55,5558
1,43,00,000
47,62,000
47,62,000
4,99,74,162
7,14,28,575
25,00,00,000
14,00,00,000
25,00,00,000
22,66,66,671
1,87,51,446
3,00,00,000
17,50,00,000
1,66,56,000
1,66,56,000
11,49,99,500
3,28,00,000
7,49,61,820
14,06,39,089
25,00,00,000
2,74,25,798
25,00,00,000
20,00,00,000
14,27,00,000
5,23,80,000
7,14,28,000
Name of the Bank / Financial
Institution
Rate of
interest
Tenor of
Loan
Mode of
Repayment
Instalment Bal. o/s as on
31.03.18
31.03.2018 31.03.2017
112 Madura Micro Finance
Notes
IDBI Bank
IDFC Bank
IDFC Bank
IDFC Bank
IDFC Bank
IDFC Bank
IDFC Bank
IDFC Bank
Indian Bank
Kotak Mahindra Bank
Kotak Mahindra Bank
Lakshmi Vilas Bank Ltd
Lakshmi Vilas Bank Ltd
Lakshmi Vilas Bank Ltd
Lakshmi Vilas Bank Ltd
Mahindra Finance
Mahindra Finance
Mahindra Finance
Mahindra Finance
Mahindra Finance
MAS Financial Services Ltd
MUDRA
NABARD
NABARD
NABARD
NABARD
NABARD
NABARD
NABARD
RBL Bank Ltd
RBL Bank Ltd
RBL Bank Ltd
RBL Bank Ltd
South Indian Bank
South Indian Bank
South Indian Bank
Tata Capital Financial Services Ltd
Tata Capital Financial Services Ltd
Tata Capital Financial Services Ltd
Sundaram Finance Ltd
Sundaram Finance Ltd
Sundaram Finance Ltd
State Bank of India (Previously SBH)
State Bank of India
State Bank of India (Previously SBT)
Union Bank of India
Union Bank of India
World Business Capital
Incofin - Rural Impulse Fund NCD
AAV SARL - 1 NCD
AAV SARL - 1 NCD
Hinduja Leyland Finance Ltd - NCD
10.50%
12.75%
12.75%
11.40%
10.90%
10.80%
10.90%
10.50%
11.15%
10.40%
10.15%
12.65%
12.65%
11.85%
11.85%
12.00%
12.00%
10.75%
10.75%
10.75%
12.00%
10.25%
10.50%
11.50%
11.50%
11.50%
11.00%
11.00%
10.95%
10.15%
10.85%
11.05%
10.85%
13.00%
12.15%
11.00%
12.10%
12.10%
10.00%
13.00%
13.00%
11.15%
10.95%
11.00%
10.95%
11.80%
10.25%
12.80%
14.84%
14.15%
11.40%
11.50%
24
24
24
24
24
24
24
24
39
24
24
36
36
36
36
24
24
24
24
24
24
36
36
36
36
60
60
60
60
24
24
24
24
36
36
39
24
24
24
36
36
36
39
35
36
36
36
96
36
60
36
36
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Half Yearly
Half Yearly
Half Yearly
Half Yearly
Half Yearly
Half Yearly
Half Yearly
Monthly
Monthly
Monthly
Monthly
Quarterly
Quarterly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Quarterly
Bullet
Bullet
Bullet
Bullet
1,20,00,000
71,42,860
47,61,905
41,66,666
83,33,333
83,33,333
83,33,333
83,33,333
55,55,555
20,83,333
41,66,667
8,33,334
19,44,447
15,15,156
6,06,062
23,54,018
47,07,674
46,48,784
1,16,18,227
23,23,645
20,83,333
1,06,00,000
1,66,66,665
2,50,00,000
3,33,33,333
3,75,00,000
7,50,00,000
6,00,00,000
6,00,00,000
22,72,727
22,72,727
22,72,727
90,90,909
90,90,910
45,45,500
83,33,334
4,16,600
37,49,400
20,83,333
16,85,000
16,85,000
24,00,244
28,00,000
1,66,07,000
45,45,000
54,55,000
75,76,000
1,10,75,520
-
-
-
-
20,20,00,000
71,42,860
2,38,09,520
6,66,66,672
15,83,33,335
17,50,00,001
20,00,00,000
20,00,00,000
13,88,88,495
2,50,00,000
7,50,00,000
25,00,004
58,33,338
1,81,81,822
72,72,730
2,85,60,664
6,52,69,202
8,86,37,887
23,11,41,906
4,81,22,559
2,50,00,004
5,32,00,000
1,66,66,665
5,00,00,000
10,00,00,001
13,75,00,000
27,50,00,000
28,00,00,000
40,00,00,000
20,00,00,000
2,72,72,727
3,40,90,909
3,86,36,364
1,81,81,810
3,18,18,000
10,00,00,000
9,00,000
75,00,000
5,00,00,000
1,73,77,802
2,46,22,998
9,27,86,821
6,08,65,393
19,85,02,928
9,09,15,000
8,18,18,182
18,18,18,182
24,93,27,044
40,00,00,000
36,60,00,000
33,00,00,000
40,00,00,000
113Madura Micro Finance
Name of the Bank / Financial
Institution
Rate of
interest
Tenor of
Loan
Mode of
Repayment
Instalment Bal. o/s as on
31.03.18
Notes
Northern Arc Capital Ltd - NCD
National Skill Development Corporation
Total
14.50%
6.00%
84
96
Bullet
Quarterly
12,89,600
50,00,00,000
2,02,08,924
9,22,98,37,809
5. OTHER LONG TERM LIABILITIES
Flexi Grant from SIDBI
6. OTHER LONG TERM PROVISIONS
Provision for Gratuity
Provision for Leave Encashment
Provision for Standard Assets
Provision for Assets Derecognised
Provision for Impairment on Investment in Subsidiary
Provision for Impairment of Advance to Subsidiary
Provision for MTM Loss
7. SHORT TERM BORROWINGS
CASH CREDIT FROM BANKS :
Secured
SOUTH INDIAN BANK - CASH CREDIT
92,37,216
66,81,327
1,51,32,974
6,86,814
1,49,00,000
74,12,091
1,93,34,965
7,33,85,387
1,74,52,516
5,85,736
5,85,736
69,09,735
45,10,717
2,41,12,233
-
1,49,00,000
74,12,091
-
5,78,44,776
51,814
5,85,736
5,85,736
The above limit is secured by available current assets both present and future.
The Cash Credit/OD facility limited to Rs. 2 Crores and is renewable every year
and carries interest at 11.35% per annum.
CITY UNION BANK - OVERDRAFT
The above limit is secured by a charge on the loans granted to Self Help Groups
out of the proceeds of the loan. The Cash Credit/OD facility limited to Rs. 1
Crores and is renewable every year and carries interest at 12.75% per annum.
13,57,235 1,11,47,921
ICICI Bank Adyar
Represents cheques issued in excess of the balance available with the Bank.
88,401 3,03,001
1,88,98,152 1,15,02,736
9. OTHER CURRENT LIABILITIES
Current maturities of Long Term Debt
(Refer Note No.4 for security and repayment)
Interest accrued but not due
Statutory Liabilities
Employee Benefit Liabilities
Others
4,41,53,84,386
7,56,81,236
1,14,03,285
4,00,99,387
1,26,04,068
4,55,51,72,362
3,97,46,63,005
5,23,55,811
69,44,375
2,43,81,402
2,77,00,787
4,08,60,45,380
8. TRADE PAYABLES
Payable on account of Securitization
Insurance Payable
Sundry Creditors
6,95,81,412
5,17,05,006
5,40,76,435
17,53,62,853
2,04,68,718
4,96,09,293
5,13,311
7,05,91,322
10. SHORT TERM PROVISIONS
Others
Provision for Tax (Net of Advance Tax)
Provision for Assets Derecognised
Provision for Standard Assets
Provision for Non Performing Assets
1,53,50,268
20,64,916
2,92,54,279
11,15,43,516
15,82,12,979
-
2,60,567
3,45,92,440
4,31,30,172
7,79,83,179
114 Madura Micro Finance
Name of the Bank / Financial
Institution
Rate of
interest
Tenor of
Loan
Mode of
Repayment
Instalment Bal. o/s as on
31.03.18
31.03.2018 31.03.2017
Fre
eh
old
La
nd
Bu
ilid
ing
sP
lan
t &
Eq
uip
me
nt
Fu
rnit
ure
&
Fit
tin
gs
Ve
hic
les
Off
ice
Eq
uip
me
nt
Ele
ctr
ica
l
Fit
tin
gs
Co
mp
ute
rs
11
. Ta
ng
ible
Ass
ets
GR
OS
S B
LO
CK
-AT
CO
ST
As
at
1 A
pri
l 2
01
6
Ad
dit
ion
s
Dis
po
sals
As
at
31
Ma
rch
20
17
Ad
dit
ion
s
Dis
po
sals
As
at
31
Ma
rch
20
18
- - - -
17
,06
,35
5 -
17
,06
,35
5
- - - -
21
,79
,40
5 -
21
,79
,40
5
18
,50
,75
7
49
,46
4 -
19
,00
,22
1 - -
19
,00
,22
1
53
,20
,38
6
27
,16
,55
5 -
80
,36
,94
1
21
,71
,27
9 -
1,0
2,0
8,2
20
AC
CU
MU
LA
TE
D D
EP
RE
CIA
TIO
N
As
at
1 A
pri
l 2
01
6
Ad
dit
ion
s
Dis
po
sals
As
at
31
Ma
rch
20
17
Ad
dit
ion
s
Dis
po
sals
As
at
31
Ma
rch
20
18
- - - - - - -
6,0
1,0
22
2,5
5,1
69
-
8,5
6,1
91
2,1
1,0
83
-
10
,67
,27
4
NE
T B
LO
CK
As
at
31
Ma
rch
20
17
As
at
31
Ma
rch
20
18
-
17
,06
,35
5
-
21
,54
,77
5
30
,76
,33
2
21
,21
,38
6 -
51
,97
,71
8
21
,06
,72
1 -
7
3,0
4,4
39
- - - -
24
,63
0 -
24
,63
0
10
,44
,03
0
8,3
2,9
47
28
,39
,22
3
29
,03
,78
1
45
,37
,34
7
- -
4
5,3
7,3
47
- -
4
5,3
7,3
47
39
,64
,12
6
3,8
3,3
65
-
43
,47
,49
1
1,8
6,8
18
-
45
,34
,30
9
1,8
9,8
56
3,0
38
1
,16
,36
,39
7
11
,46
,60
7 -
1,2
7,8
3,0
04
15
,08
,92
8 -
1,4
2,9
1,9
32
1,1
1,8
9,8
77
7,4
7,5
89 -
1,1
9,3
7,4
66
5
,42
,12
6
-
1,2
4,7
9,5
92
8,4
5,5
38
18
,12
,34
0
13
,88
,96
3 - -
13
,88
,96
3
98
,79
8 -
14
,87
,76
1
7,8
0,5
62
5,1
3,6
48
3,3
3,2
44
2,7
5,1
57
-
6,0
8,4
01
3,6
5,7
12
-
9,7
4,1
13
2,8
2,2
1,0
64
1,3
3,4
6,0
99
-
4
,15
,67
,16
3
2,0
7,8
5,8
33
-
6,2
3,5
2,9
96
1,5
9,8
4,9
72
2,4
5,5
9,3
97
1
,64
,82
,94
0
90
,99
,25
1 -
2,5
5,8
2,1
91
1,2
2,1
1,4
08
-
3,7
7,9
3,5
99
Te
mp
ora
ry
Str
uctu
res
in R
en
ted
Pre
mis
es -
14
,40
8,0
16
-
14
,40
8,0
16
-
-
14
,40
8,0
16
- - -
14
,40
8,0
16
-
14
,40
8,0
16
-
-
14
,40
8,0
16
Gra
nd
To
tal
5,2
9,5
4,9
13
3,1
6,6
6,7
41
-
8,4
6,2
1,6
55
2,8
4,5
0,5
98
-
11
,30
,72
,25
3
3,5
6,4
7,5
41
2,7
2,8
9,9
33
-
6,2
9,3
7,4
74
1
,56
,48
,49
8 -
7,8
5,8
5,9
72
2,1
6,8
4,1
81
3,4
4,8
6,2
81
115Madura Micro Finance
Software Micro
Eduction
Products
Educational
content on
digital media
12. Intangible Assets
GROSS BLOCK-AT COST
As at 1 April 2016
Additions
Disposals
As at 31 March 2017
Additions
Disposals
As at 31 March 2018
1,10,42,065
23,52,440
-
1,33,94,505
32,76,241
-
1,66,70,746
96,18,959
-
-
96,18,959
-
-
96,18,959
1,89,78,583
13,46,340
-
2,03,24,923
-
-
2,03,24,923
ACCUMULATED DEPRECIATION
As at 1 April 2016
Additions
Disposals
As at 31 March 2017
Additions
Disposals
As at 31 March 2018
1,00,52,310
9,06,343
-
1,09,58,653
18,57,573
-
1,28,16,226
1,14,46,058
65,75,288
-
1,80,21,346
12,99,542
-
1,93,20,888
NET BLOCK
As at 31 March 2017
As at 31 March 2018
24,35,852
38,54,520
-
-
96,17,997
962
-
96,18,959
-
-
96,18,959
23,03,577
10,04,035
Grand Total
(Rs. in lakhs)
3,96,39,607
36,98,780
-
4,33,38,387
32,76,241
-
4,66,14,628
3,11,16,365
74,82,593
-
3,85,98,958
31,57,115
-
4,17,56,073
47,39,429
48,58,555
NON CURRENT ASSETS
13. NON CURRENT INVESTMENTS
Trade Investments
a) Investment in Equity Shares - Unquoted at cost
I) In other Companies
2,00,000 Equity Shares of Rs.10/- each in Alpha Micro Finance
Consultants P Ltd 2,000,000 2,000,000
2,000,000 2,000,000
14. DEFERRED TAX ASSETS (NET)
3,86,70,136
3,69,998
3,90,40,134
(I) Deferred Tax Asset
On account of provisions made allowable on basis of payment
On account of depreciation
(Though the subsidiary has unabsorbed losses, it has been
considered prudent not to recognise any deferred tax asset)
3,07,54,700
15,35,983
3,22,90,683
-
15. LONG TERM LOANS AND ADVANCES
31,62,794
I) Loans and Advances to Others
Secured
SME Loan Against Property - Considered Good
Notes
31.03.2018 31.03.2017
116 Madura Micro Finance
Unsecured
Microfinance Loans - Considered Good
Other Loans - Considered Good
2,40,91,63,370
20,59,919
3,73,46,65,083
4,54,15,511
2,41,12,23,2893,78,32,43,388
1,12,56,699
9,19,67,417
2,99,32,798
95,90,751
3,58,000
14,31,05,665
9 3,16,997
14,41,68,594
1,88,70,763
93,89,911
3,58,000
18,21,04,265
16. OTHER NON CURRENT ASSETS
Other Deposits and Advances
Bank Balance in earmarked deposit account
Under lien to banks for various credit facilities granted
Under lien for Securitisation
Advance Tax (Net of Provision for Tax)
Preliminary Expenses (to the extent not written off or adjusted)
-
-
5,00,00,000
50,000,000
17. CURRENT INVESTEMENT
Investment in Units of Mutual Fund - unquoted
(Previous year 18,779.023 units) of UTI Liquid Fund - Growth Plan
1,87,847
41,68,88,526
1,81,14,608
20,02,51,886
63,54,42,867
8,09,001
7,03,94,13,770
27,32,98,941
5,75,38,406
1,24,17,481
12,51,32,989
99,77,600
14,75,28,070
8,891
14,63,73,464
4,29,67,959
65,46,01,271
84,39,51,585
-
5,74,22,90,130
3,84,17,117
4,04,77,036
1,69,76,745
10,08,14,708
-
11,77,91,453
Cash on hand
Bank balances in current account
Bank Balance in earmarked Deposit account
under lien to banks for various credit facilities granted
Other deposits with Bank
18. CASH AND CASH EQUIVALENTS
Microfinance and other loans repayable within 12 months
Secured
SME Loan Against Property - Considered Good
Unsecured
Microfinance Loans - Considered Good
Other Loans - Considered Good
Microfinance Loans - Considered Doubtful
19. SHORT TERM LOANS AND ADVANCES
Advances recoverable in cash or in kind or for value to be received
Unsecured Considered Good
Due by others
Bank Balance in earmarked deposit account
Under lien to banks for various credit facilities granted
Under lien for Securitization
20. OTHER CURRENT ASSETS
Interest on Loans
Income on Securitised Portfolio (Excess Interest Spread)
Interest from Banks
Processing and other charges
21. REVENUE FROM OPERATIONS
2,10,56,73,813
36,18,727
2,10,91,475
10,51,46,543
1,62,92,78,379
1,75,77,060
2,97,23,507
7,64,79,433
7,37,02,51,117
7,37,10,60,118
5,82,11,84,283
5,82,11,84,283Short Term Loans and Advances Total
Notes31.03.2018 31.03.2017
-
117Madura Micro Finance
Notes
Commission Received
Course fees received
64,40,767
67,08,400
-
95,36,850
2,24,86,79,725 1,76,25,95,229
Bad Debts recovered
Dividend received
Net gain on sale of investments
Provision written back on Standard Assets
Interest on deposits with Bank
Others
22. OTHER INCOME
1,53,22,400
89,73,306
56,76,403
-
4,77,311
1,19,24,751
4,23,74,171
1,83,06,318
-
3,68,76,266
1,43,17,420
81,774
1,99,38,317
8,95,20,095
Salaries and Wages
Honorarium paid
Contribution to Provident Fund and Other Funds
Contribution to Employees State Insurance
23. EMPLOYEE BENEFIT EXPENSES
21,94,16,606
1,99,34,966
1,81,23,026
4 4,25,537
28,37,00,460
2,12,03,937
2,30,43,341
62,16,608
45,08,988
55,40,615
78,02,158
35,20,16,107 27,12,79,527
Provision for Leave Encashment
Provision for Gratuity
Staff Insurance & Welfare Expenses
20,36,823
24,57,437
48,85,132
Interest Expenses
Interest on Non Convertible Debentures
Interest on Term Loans
Interest on Cash Credit
Other Interest
Other Borrowing Cost
Processing Charges
Bank charges
Net Loss/Gain from Foreign Currency
Net Loss on foreign currency translation
24. FINANCE COST
11,15,39,412
59,99,76,657
2,85,042
69,300
3,12,21,000
29,36,952
-
74,60,28,363
22,38,62,905
66,96,79,856
1,46,705
15,09,960
1,62,92,650
45,11,427
1,41,37,529
93,01,41,032
Office Rent
Rates and Taxes
Electricity charges
Insurance
Auditors' Remuneration
For Audit
For Certification and other services
Office Maintenance
Bad Debts written off
Professional Fees
Provision on Standard Assets
Provision for Non Performing Assets
Provision on Assets Derecognised
Impairment of investment in Subsidiary Company
Directors Sitting Fees
Traveling expenses
25 . OTHER EXPENSES
1,71,93,896
57,818
28,83,642
4,24,247
10,18,050
3,42,000
71,67,827
3,92,63,561
6,13,00,635
64,72,589
3,70,22,582
-26,96,909
1,49,00,000
31,39,509
2,69,22,222
2,41,28,110
2,65,823
33,04,336
8,49,154
11,57,545
5,450
83,66,461
13,57,20,141
6,29,45,199
-
6,84,13,344
24,91,163
-
31,37,175
3,61,04,519
31.03.2018 31.03.2017
118 Madura Micro Finance
Notes
Corporate Social Responsibility Expenses (See Note No.35)
Other Expenses
20,29,913
5,06,84,133
26,81,25,715
58,67,251
6,62,32,906
41,89,88,577
Income Tax and PF demands
26. CONTINGENT LIABILITIES
31-Mar-18
Rs
Sl Details of Demand Forum where dispute is pending 31-Mar-17
Rs
71,01,9231 Penalty under Income Tax
Act, 1961 - AY 2007-08
High Court of Judicature of
Madras
71,01,923
27,42,1602 Demand under Income
Tax Act, 1961 - AY 2014-15
Assessing Officer due to Tribunal
having set aside the original
27,42,160
25,37,0203 Demand under Employee
Provident Fund Act, 1952
for 2010-11
EPF Appellate Tribunal 25,37,020
ii) Corporate Guarantee
The Company has given corporate guarantee in favour of National Skill Development Centre in respect of the loan
granted by them to the subsidiary company, Madura Micro Education Private Limited. The amount of loan
outstanding as on 31st March 2018 in the books of Subsidiary is Rs. 2,02,08,924.
27. The appointment and payment of remuneration to the Managing Director for the period from 26th Feb 2012 to 31st
Mar 2018 is subject to the approval of the Central Government. A sum of Rs. 3,04,10,424 (excluding gratuity) has
been paid as remuneration to the Managing Director for the period Feb 2012 to Mar 2018. The Company has taken
necessary action in this matter and is confident of obtaining the approval shortly. Hence no adjustments have been
made to the financial statements towards this.
LIST OF RELATED PARTIES
i) Scimergent Analytics and Education Private Limited - Company under common control
ii) Scisphere Analytics India Private Limited - Company under common control
iii) Microcredit Foundation of India - Company under common control
iv) Midland Rubber and Produce Company Limited - Companies in which directors can exercise significant influence
v) A. V. Thomas and Co. Limited - Companies in which directors can exercise significant influence
vi) Ms. Tara Thiagarajan - Key Management Personnel
vii) Mr. Mohan Eddy - Key Management Personnel
viii) Mrs. Pamela Mohan - Relative of Key Management Personnel
28. RELATED PARTY TRANSACTIONS
DETAILS OF TRANSACTIONS WITH RELATED PARTIES
Particulars*
Remuneration to Key Managerial Personnel
i) Ms. Tara Thiagarajan - Managing Director
ii) Mr. Mohan Eddy - Whole Time Director
Professional Fees
I) Scimergent Analytics and Education Pvt Ltd
ii) Scisphere Analytics India Private Limited
Rent Paid
I) Mrs. Pamela Mohan
Details of Balances with related parties
*Amounts exclusive of taxes
67,29,600
49,13,000
1,54,73,750
4 4,85,500
1 6,20,000
NIL
64,88,844
43,80,000
1,80,50,000
39,65,000
16,20,000
NIL
31.03.2018 31.03.2017
119Madura Micro Finance
31
.3.2
01
8 - -
-
2,2
3,1
2,0
91
-74
,12
,09
1
-
-
-
31
.3.2
01
8
67
,08
,40
0
-
68
,02
,29
8
3
5,9
9,3
32
2,8
7,7
5,9
83
1,4
1,5
00
25
,27
,14
8 -
31
.3.2
01
7
1
,75
,30
,58
,37
9
45
,33
,10
,32
8
9
,49
,88
,05
,00
2
7
,73
,73
,06
,28
8
3,1
2,6
7,0
92
2
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,15
7 -
Fin
an
cin
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irco
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uca
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lim
ina
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ns
31
.3.2
01
83
1.3
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17
31
.3.2
01
7
2
,24
,19
,71
,23
5
53
,55
,30
,69
4
95
,36
,85
0
-1,0
9,2
1,2
29
- -
1
2,1
7,9
4,7
7,8
39
9
,77
,47
,07
,00
2
3
,15
,85
,33
9
1
,62
,78
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5 -
1
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,25
9
2,8
9,3
5,9
99
40
,98
,42
9
71
,78
,36
9 -
-2
,23
,12
,09
1
-74
,12
,09
1
- -
-
Se
gm
en
t R
ev
en
ue
Ex
tern
al S
ale
s/In
com
e
Se
gm
en
t R
esu
lt
Oth
er
Inco
me
Pro
fit
be
fore
ta
x
Inco
me
ta
x
Pro
fit
aft
er
tax
Oth
er
Info
rma
tio
n
Se
gm
en
t A
sse
ts
Se
gm
en
t Lia
bilit
ies
Ca
pit
al E
xp
en
dit
ure
du
rin
g
the
ye
ar
De
pre
cia
tio
n
Oth
er
no
n c
ash
ex
pe
nse
s
31
.3.2
01
8
2
,24
,86
,79
,72
5
52
,87
,28
,39
6
8,9
5,2
0,0
95
61
,82
,48
,49
1
22
,66
,93
,37
2
39
,15
,55
,11
9
12
,16
,07
,65
,08
0
9,7
9,6
0,7
0,8
94
3,1
7,2
6,8
39
1,8
8,0
5,6
13
-Tota
l
31
.3.2
01
7
1,7
6,2
5,9
5,2
29
44
,23
,89
,09
9
4,2
3,7
4,1
71
48
,47
,63
,27
0
19
,30
,74
,45
3
29
,16
,88
,81
7
9
,48
,69
,69
,17
0
7,7
5,8
8,3
0,1
96
3
,53
,65
,52
1
3,4
7,7
2,5
26
-
120 Madura Micro Finance
29
. T
he
Gro
up
op
era
tes
in t
wo
pri
ma
ry s
eg
me
nts
, viz
., F
ina
nci
ng
- le
nd
ing
to
Se
lf H
elp
Gro
up
s a
nd
oth
er
loa
ns
an
d M
icro
Ed
uca
tio
n.
Th
ese
are
th
e r
ep
ort
ab
le s
eg
me
nts
an
d t
he
in
form
ati
on
is
furn
ish
ed
be
low
.
Currency Nature of Transaction
USD
External
Commercial Borrowing
Foreign
Currency
Indian
Rupees
31.3.2017
USD 3.83 million 24,93,27,044
Foreign
Currency
Indian
Rupees
31.3.2018
26,56,00,000USD 4 million
The above exposure is hedged fully for interest rate risks and forex rate risk by a currency swap agreement with a bank.
30. Foreign Currency exposures recognised by the Company that have been hedged are as under:
The Company has an unfunded defined benefit gratuity plan.
Details of Defined Benefit - Gratuity Plan
Fair Value of Plan Assets
Present value of unfunded obligation
Less: Unrecognised past service cost
Plan asset/(liability)
Current
Non-Current
Change in the present value of Defined Benefit Gratuity Plan
Opening defined benefit obligation
Interest cost
Current Service cost
Actuarial (gains)/losses on obligation
Closing defined benefit obligation
Principal Assumptions used in determining Defined Benefit Gratuity Plan
Discount Rate
Expected rate of return on plan assets
Salary increment rate
Attrition rate
Details of Other Defined Benefit Plan
Leave Encashment
Fair Value of plan assets
Present value of unfunded obligation
Less: Unrecognised past service cost
Plan asset (liability)Current
Non-Current
Change in present value of Other Defined Benefit Plan
Opening defined benefit obligation
Interest cost
Current Service cost
Actuarial (gains)/losses on obligation
Closing defined benefit obligation
Principal Assumptions used in determining Defined Benefit Gratuity Plan
Discount Rate
Expected rate of return on plan assets
Salary increment rate
Attrition rate
Proportion of leave availed
Disclosures have been made to the extent provided by the actuary.
31. POST EMPLOYMENT BENEFITS
-
81,35,284
-
-81,35,284
1 2,25,549
6 9,09,735
60,12,462
24,57,437
-3,34,615
81,35,284
6.80%
Not applicable
10%
22%
(Subsidiary 10%)
-
65,41,552
-
-65,41,552
20,30,835
45,10,717
48,00,235
20,36,823
-2,95,506
65,41,552
6.80%
Not applicable
10%
22%
(Subsidiary 10%)
10%
-
1,29,92,878
-
- 1,29,92,878
37,55,662
92,37,216
81,35,284
55,40,615
-6,83,021
1,29,92,878
6.94%
Not applicable
10%
30%
(Subsidiary 10%)
-
1,02,52,791
-
- 1,02,52,791
35,71,464
66,81,327
65,41,552
45,08,988
-7,97,749
1,02,52,791
6.94%
Not applicable
10%
30%
(Subsidiary 10%)
10%
Notes
121Madura Micro Finance
Notes
Nil
i) Provision for Standard Assets
Carrying amount at the beginning of the period
Reversal of provision made during the period
Amounts used (i.e., incurred and charged against the provision)
Amount of provision at the end of the period
ii) Provision for Non Performing Assets
Carrying amount at the beginning of the period
Additional provision made during the period
Amounts used (i.e., incurred and charged against the provision)
Unutilised amounts reversed during the period
Amount of provision at the end of the period
iii) Provision for assets derecognised
Carrying amount at the beginning of the period
Additional provision made during the period
Amounts used (i.e., incurred and charged against the provision)
Unutilised amounts reversed during the period
Amount of provision at the end of the period
32 . PROVISIONS AND CONTINGENCIES
Provision is recognised in the Balance Sheet when, the Company has a present obligation as a result of a
past event and it is probable that an outflow of economic benefits will be required to settle the obligation
and a reliable estimate of the amount of the obligation can be made
33 . Earnings in Foreign Exchange
34. Expenditure in Foreign Currency
Travelling Expenses
Professional Charges
Interest and Finance charges
Repayment of External Commercial Borrowings
Nil
11,38,069
1,35,65,711
Nil
35. The company has made contributions towards Corporate Social Responsibility as detailed below
(a) Gross amount required to be spent by the company during the year
(b) Amount spent during the year
5,87,04,673
- 1,43,17,420
-
4,43,87,253
4,31,30,172
6,84,13,344
-
-
11,15,43,516
2,60,567
27,51,730
-
2,60,567
27,51,730
Nil
Nil
17,45,729
1,46,09,382
1,10,75,520
5,22,32,084
64,72,589
-
5,87,04,673
61,07,590
3,70,22,582
-
-
4,31,30,172
29,57,476
-
-
26,96,909
2,60,567
73,46,718
58,67,251
SI Particulars
Construction/acquisition of any asset
TotalIn cash Yet to be paid
in cash
( ) - - -
On Purpose other than (I) above( ) 5 8,67,251 - 5 8,67,251
36. Earnings per Share - Basic and Diluted
Profit after Tax
Weighted average of number of Equity Shares of face value of Rs.10/- each
Earnings per share - Basic
Earnings per share - Diluted
39,15,55,119
70,92,588
55.21
55.21
29,16,88,816
61,29,081
47.59
47.59
122 Madura Micro Finance
Notes
Total 100% 2,36,46,94,186 39,15,55,119100%
As % of
consolidated
profit or loss
Amount
Rs.
As % of
consolidated
net assets
Amount
Rs.
Net assets, i.e total assets
minus total liabilities
Share in profit or loss
Parent
Madura Micro Finance Limited
Subsidiary
Madura Micro Education Private Limited
101%
-1%
2,38,24,58,746
-1,77,64,560
39,82,72,030
-67,16,911
102%
-2%
Name of the Entity
38. Change in Accounting Policy
The Company had not adopted the Guidance Note on accounting for Derivative contracts in the earlier year and
hence there has been a change in accounting policy to give effect to the ICAI's Guidance Note. Also refer
39(xxxii)(3)(c).
a) Debentures - Secured
b) Debentures - Unsecured
c) Deferred Credits
d) Term Loans
e) Inter-corporate Loan and borrowing
f) Commercial Paper
g) Public deposits
h) Other Loans - Overdraft
Amount
Outstanding
Amount
Overdue
Amount
Outstanding
Particulars
39. Details required under Reserve Bank of India, NBFC Directions
Sl.
No
Amount
Overdue
I) Loans and Advances availed by NBFCs inclusive of interest accrued thereon but not paid
15,436.74
5,000.00
Nil
72,618.45
Nil
Nil
Nil
188.98
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
ii) Break up of 1(g) above (Outstanding public deposits inclusive of interest accrued thereon but not paid)
Nil
Nil
Nil
31-3-2018 31-3-2017
LIABILITIES SIDE
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
7,938.95
5,003.90
Nil
61,870.10
Nil
Nil
Nil
115.03
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(i) Leased assets including lease rentals
under sundry debtors
a) Financial Lease
b) Operating Lease
Nil
Nil
Nil
Nil
Nil
Nil
a) Secured
b) Unsecured
39.72
1,10,387.88
Nil
Nil
Nil
81,892.77
iii) Break up of Loans and Advances including bills receivable (other than those included in 4 below)
(Net of NPA Provision)
ASSETS SIDE
iv) Break up of Leased Assets and stock on hire and hypothecation loans counting towards EL/HP
activities
Nil
Nil
Nil
Nil
37. Additional Information as required under Schedule III of Companies Act, 2013, of enterprises consolidated as
subsdiary / associates / joint ventures
123 Madura Micro Finance
Notes
Nil
Nil
(ii) Stock on hire including hire charges
under sundry debtors
a) Asset on hire
b) Repossessed assets
(iii) Hypothecation Loans counting towards
EL/HP activities
a) Loans where assets have been
repossessed
b) Loans other than (a) above
Nil
Nil
Nil
Nil
Nil
Nil
v) Break up of Investments Current Investments
1. QUOTED
i) Shares: (a) Equity
(b) Preference
ii) Debentures and Bonds
iii) Units of mutual funds
iv) Government securities
v) Others
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
2. UNQUOTED
i) Shares: (a) Equity
(b) Preference
ii) Debentures and Bonds
iii) Units of mutual funds
iv) Government securities
v) Others
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Long Term Investments
Nil
Nil
Nil
500.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1. QUOTED
i) Shares: (a) Equity
(b) Preference
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
ii) Debentures and Bonds
iii) Units of mutual funds
iv) Government securities
v) Others
2. UNQUOTED
i) Shares: (a) Equity
(b) Preference
ii) Debentures and Bonds
iii) Units of mutual funds
iv) Government securities
v) Others
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
20.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
20.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Vi) Borrower group-wise classification of all leased assets, stock-on-hire and loans and advances
CATEGORYAmount net of NPA provisions
Secured Unsecured Total
Amount net of NPA provisions
Secured Unsecured Total
1. Related Parties
a) Subsidiaries
b) companies in the same group
c) Other related parties
2. Other than related parties
TOTAL
Nil
Nil
Nil
39.72
39.72
Nil
Nil
Nil
1,10,387.88
1,10,387.88
Nil
Nil
Nil
1,10,427.60
1,10,427.60
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
81,892.77
81,892.77
Nil
Nil
Nil
81,892.77
81,892.77
31-3-2018 31-3-2017
124Madura Micro Finance
Notes
vii) Investor group-wise classification of all investments (current and long term) in shares and
securities (both quoted and unquoted)
CATEGORY
31-3-2018
1. Related Parties
a) Subsidiaries
b) companies in the same group
c) Other related parties
2. Other than related parties
TOTAL
Nil
Nil
Nil
20.00
20.00
Nil
Nil
Nil
20.00
20.00
Market Value /
NAV or face Value
Book Value Net of
provisions
31-3-2017
Nil
Nil
Nil
520.00
520.00
Market Value /
NAV or face Value
Book Value Net
of provisions
viii) Other InformationAmount net of NPA provisions
Secured Unsecured Total
Amount net of NPA provisions
Secured Unsecured Total(i) Gross Non-Performing Assets
(a) Related Parties
(b) Other than related parties
(ii) Net Non-Performing Assets
(a) Related Parties
(b) Other than related parties
(iii) Assets acquired in satisfaction
of debts
Nil
Nil
Nil
Nil
Nil
Nil
575.38
Nil
(540.06)
Nil
Nil
575.38
Nil
(540.06)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
520.00
520.00
31-3-2018 31-3-2017
Nil
404.77
Nil
Nil
Nil
Nil
404.77
Nil
Nil
Nilix) Customer Complaints
a) Number of Complaints pending as the beginning of the year
b) Number of Complaints received during the year
c) Number of Complaints redressed during the year
d) Number of Complaints pending as at the end of the year
x) Details of Registration with Financial Regulators
a) Ministry of Corporate Affairs
b) Reserve Bank of India
c) Microfinance Institutional Network
CIN No.U65929TN2005PLC057390
N.07.00754
20
31.3.2017 31.3.2016
Nil
45
45
Nil
Nil
50
50
Nil
Not applicable
Not applicable
(CARE) BBB+ Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
(CARE) BBB+ Stable
(CARE) BBB+ Stable
M2+
Not applicable
xi) Ratings assigned by Credit Rating Agencies
Commercial Paper
Working Capital Facility (Cash credit/WCDL)
Long Term Bank Facilities
Long Term Bank Facilities
14.84% Non-Convertible Debentures (allotted in May 2015)
14.15% Non-Convertible Debentures (allotted in August 2015)
14.50% Non-Convertible Debentures (allotted in March 2017)
11.40% Non-Convertible Debentures (allotted in August 2017)
11.50% Non-Convertible Debentures (allotted in December 2017)
MFI Grading
Perpetual Debt
Not applicable
Not applicable
(CARE) BBB+ Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
(ICRA) BBB Stable
Nil
Nil
Nil
M2
Not applicable
125Madura Micro Finance
Notes
Percentage of NPAs to total
advances in that sector
31-3-2018
52.08%
47.92%
-0.48%
404.77
574.84
404.23
575.38
-26.53
-109.30
404.23
-540.06
xii) Concentration of Advances, Exposures and NPAs
xiii) Sector wise NPAs as at the end of the year
a) Agriculture and Allied Activities
b) MSME
xiv) Movement of NPAs
a) Net NPAs to total advances (%)
b) Movement of NPAs (Gross)
i) Opening Balance
ii) Additions during the year
iii) Reduction during the year
iv) Closing balance
c) Movement of Net NPAs
i) Opening Balance
ii) Additions during the year
iii) Reduction during the year
iv) Closing balance
The Company operates primarily in the business of microfinance providing collateral free loans for fixed
amounts ranging from Rs. 20,000/- to Rs. 58,000/- predominantly to rural and semi urban women. As on 31st
March 2018, the Company provided loans to more than 4.19 lakhs women across seven states and hence the
disclosure relating to concentration of Advances, Exposures and NPAs are not applicable to the Company.
31-3-2017
45.77%
54.23%
0.00%
122.15
404.77
122.15
404.77
61.08
34.54
122.15
-26.53
431.30
684.14
-
1,115.44
d) Movement of provision for NPAs excluding standard assets
I) Opening Balance
ii) Provision made during the year
iii) Write off/write back of excess provisions
iv) Closing balance
61.07
370.23
-
431.30
xv) Disclosure relating to Securitisation
The information on securitisation activity of the Company as an originator is furnished below
a) Total number of loans securitised or assigned
b) Total book value of loans securitised or assigned
c) Total book value of loans securitised or assigned including loans
placed as collateral
d) Sale consideration received for loans securitised/assigned
e) Excess interest spread recognised in the Statement of Profit and Loss
f) Credit enhancements provided and outstanding (gross)
Transaction 1
i) Interest subordination
- for PTC Series A1
- for PTC Series A2
ii) Principal subordination
- for PTC Series A1
- for PTC Series A2
iii) Cash collateral
3,923
7,556.31
8,611.18
7,556.31
36.19
Nil
Nil
Nil
Nil
Nil
5,902
260.57
260.57
-
175.77
9.52%
9.14%
9.00%
7.00%
6.00%
126 Madura Micro Finance
Notes
Transaction 2
i) Interest subordination
- for PTC Series A1
- for PTC Series A2
ii) Principal subordination
- for PTC Series A1
- for PTC Series A2
iii) Cash collateral
Transaction 3
i) Interest subordination
- for PTC Series A1
- for PTC Series A2
ii) Principal subordination
- for PTC Series A1
- for PTC Series A2
iii) Cash collateral
12.07%
12.07%
15.00%
12.25%
4.50%
12.76%
12.76%
14.50%
12.25%
4.90%
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Particulars*
Number of SPVs sponsored by the Company for securitisation during the year
Total amount of securitised assets as per the books of the SPVs sponsored by
the Company as on the date of balance sheet
Total amount of exposure retained by the Company to comply with minimum
retention requirement as at the date of the balance sheet
a) Off balance sheet exposures
i) First Loss
ii) Others
b) On balance sheet exposures
i) First Loss
ii) Others
Amount of Exposures to other than MRR
a) Off Balance sheet exposures
i) Exposure to own securitisations
ii) Exposure to third party securitisations
b) On balance sheet exposures
i) Exposure to own securitisation
ii) Exposure to third party securitisation
*As per information duly certified by auditor of SPV
2
8,611.18
Nil
Nil
399.11
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
197.14
Nil
Nil
Nil
Nil
Nil
Nil
xvi) Information on instances of fraud reported during the year
Embezzlement of Cash Nil 6.51
xvii) Information on net interest margin
Average interest
Average effective cost of borrowing
Net interest margin
22.49%
12.98%
9.51%
23.80%
13.85%
9.95%
xviii) Information required by Reserve Bank of India Prudential Norms
1) Capital Adequacy Ratio Items
i) CRAR (%)
ii) CRAR - Tier I Capital (%)
iii) CRAR - Tier II Capital (%)
25.70%
21.00%
4.70%
26.99%
20.46%
6.53%
31.03.2018 31.03.2017
127Madura Micro Finance
Notes
iv) Amount of subordinated debt raised as Tier II Capital (Rs. In Lakhs)
v) Amount raised by issue of Perpetual Debit Instruments
2) Exposure to Real Estate Sector Category
A. DIRECT EXPOSURE
i) Residential Mortgages -
Lending fully secured by mortgages on residential property that is or will
be occupied by the borrower or that is rented; (Individual housing loans
up to Rs.15 lakh may be shown separately)
ii) Commercial Real Estate -
Lending secured by mortgages on commercial real estates (office
buildings, retail space, multipurpose commercial premises, multi-family
residential buildings, multi-tenanted commercial premises, industrial or
warehouse space, hotels land acquisition, development and construction,
etc.). Exposure would also include non-fund based (NFB) limits;
iii) Investments in Mortgage Backed Securities (MBS) and other securitised
exposures-
a. Residential
b. Commercial Real Estate.
B. INDIRECT EXPOSURE
Fund based and non-fund based exposures on National Housing Bank (NHB)
and Housing Finance Companies (HFCs)
5,000
Nil
39.72
Nil
Nil
Nil
Nil
5,000
Nil
Nil
Nil
Nil
Nil
Nil
xix) Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction
The Company has not sold financial assets to securitisation / reconstruction companies for asset
reconstruction in the current and previous year.
xx) Details of Assignment transactions undertaken by NBFCs
The Company has not undertaken assignment transaction in the current and previous year.
xxi) Details of non-performing financial assets purchased / sold
The Company has not purchased/sold non performing financial assets during the current and previous year.
xxii) Details of penalties imposed by RBI and other Regulators
No penalties have been imposed by RBI and other Regulators during the current and previous year.
xxiii) Exposure to Capital Market
The company does not have any exposure to Capital Market.
xxiv) Details of financing of parent company products
Not Applicable
xxv) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by applicable NBFC
The Company has not given any loan exceeding Single Borrower Limit / Group Borrower Limit
xxvi) Provisions and Contingencies
Breakup of "Provisions and Contingencies" shown under the head
Expenditure in Profit and Loss Account
a) Provisions for depreciation on investment - 149.00
31.3.2018 31.3.2017
b) Provision towards NPA
c) Provision made towards Income Tax
d) Other Provision and Contingencies (with detail)
Provision for assets de-recognised
e) Provision for Standard Assets
684.13
2,334.43
24.91
-
370.23
1,985.00
- 26.97
64.73
31.03.2018 31.03.2017
128 Madura Micro Finance
Notes
xxvii) Draw Down from Reserves
The company has not done any Draw Down from Reserves
xxviii) Concentration of Deposits (for deposit taking NBFCs)
Not applicable to the Company
xxix) Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
Not applicable to the Company
xxx) Off- Balance Sheet SPVs Sponsored
The company does not have any Off-Balance Sheet SPV
xxxi) Investments
Particulars
(1) Value of Investment (Permanent and Current Investments)
(I) Gross Value of Investment (see note below)
(a) In India
(b) Outside India
(ii) Provision for Depreciation (see note below)
(a) In India
(b) Outside India
(iii) Net Value of Investments
(a) In India
(b) Outside India
(2) Movement of Provisions held towards depreciation on investments (see note below)
(i) Opening Balance
(ii) Add : Provisions made during the year
(iii) Less: Write-Off / Write-back of excess provisions during the year
(iv) Closing balance
xxxii) Derivatives
At the time of consolidation, the investment in the subsidiary of the company is netted off against the capital of the
subsidiary in the financial statements. The provision made for impairment of investment in the subsidiary is not
considered in the table above.
(1) Forward Rate Agreement / Interest Rate Swap
Particulars
(i) The notional principal of swap agreements
(ii) Losses which would be incurred if counterparties failed
to fulfil their obligations under the agreements
(iii) Collateral required by the NBFC upon entering into
swaps (Book Debts)
(iv) Concentration of credit risk arising from the swapping
(v) The fair value of the swap book
Refer to Accounting Policy No. 1(i) & Note No. 3(C) below
2,493.27
193.35
660.00
-
193.35
2,656.00
208.55
660.00
-
208.55
20.00
Nil
520.00
Nil
Nil
Nil
Nil
Nil
20.00
Nil
520.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
31.3.2018 31.3.2017
(2) Exchange Traded Interest Rate (IR) Derivatives
The company does not have any Interest Rate (IR) Derivatives
(3) Disclosures on Risk Exposure in Derivatives
Qualitative Disclosures
A. Financial risk management objectives
The company's treasury function manages and monitors various risks relating to treasury operations of
the company, including currency risk, market risk, and liquidity risk. In course of managing these
31.3.2018 31.3.2017
129Madura Micro Finance
Notes
risks the company may use various market instruments as permissible for the company based on RBI
guidelines and internal approvals. The company does not enter into any trade in financial instruments
including derivatives for speculative purposes.
B. Company has entered into a full currency swap agreement with RBL bank to hedge the interest and
currency risk relating to the ECB of USD 4 million from World Business Capital. The swap agreement covers
the total principal and interest payment due on the ECB at USD-INR spot reference rate of 66.40 and
interest rate of 12.8% p.a. For the year ended 31'st March 2018, the principal loan amount is restated at
closing exchange rate and the resultant gain of Rs. 51,97,436 is accounted in the Profit and Loss account.
The hedge instrument covering currency and interest rate swap is marked to market and the resultant loss
of Rs. 1,93,34,965 is taken to Profit and Loss account.
C. The Company had not adopted the Guidance Note on accounting for Derivative contracts in the earlier
year and hence there has been a change in accounting policy to give effect to the ICAI's Guidance Note.
2,493.27
2,762.27
(2,955.62)
193.35
-
2,656.00
3,000.69
(3,209.24)
208.55
-
Currency and Interest rate derivatives
31.3.2018 31.3.2017
Quantitative Disclosures
Derivatives (Notional Principal Amount) For hedging
Marked to Market Position
Asset (+)
Liabilities (-)
Credit Exposure
Unhedged Exposures
130 Madura Micro Finance
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131Madura Micro Finance
Madura Micro Finance Ltd, # 36, 2nd Main Road, Kasturba Nagar Adyar,
Chennai 600 020.
www.maduramicrofinance.co.in
www.teach70.com
Ph: +91 44 4683 8989
Fax: +91 44 2441 3841