annual report - samasta microfinance€¦ · data from the member microfinance institutions. they...

ANNUAL REPORT2015-2016

Empowering Individuals... Enriching Communities...

ANNUAL REPORT2015-2016

011.Vision

2.Mission

3.Board of Directors

4.Independent Directors

5.Management Team

6.Our Partners

a.Banks

b.Financial Institutions

c.Insurance Partners

d.MFI Rating Agencies

e.Accounting & MIS Software

f.Credit Information Services

7.Products

8.Operational Performance

9.Top Performing Customers

10.Financial Performance

a.Independent Auditors Report

b.Directors Report

c.Balance Sheet

d.Profit & Loss Account

e.Cash Flow Statement

f.Accounting Notes

11.Notice of Annual General Meeting

01

02

03

04

05

05

06

06

06

07

07

08

09

10

12

12

20

44

45

42

79

47

Contents...

01"Samasta Annual Report 2015-16"

Vision:

To be recognized as a valued partner of the working poor. Appreciated for its role in creating opportunities and admired for its organisational model.

Mission:

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

The happy faces, that keep us going

Samasta Microfinance Ltd.

02“Samasta Annual Report 2015-16"

Board of Directors

Venkatesh.N (Managing Director)

Venkatesh has an experience of over 15 years in financial sector. He is the founder of PNV Techno

Acquisitions Private Limited that markets financial products. He is also a founder of Affluence

Edifice, offering wealth management services for high net worth individuals. He has completed

ACCION program for strategic leadership in Microfinance through Harvard Business School.

From Left: Mr. Venkatesh N, Mr. Ramanathan A, Mr.Shivaprakash D, Mr.Badri Seshadri,Mr.Shekar RC and Mr. Vikraman A

Shivaprakash has worked with major IT corporates for over a decade, successfully executing

projects for global clients and nurturing client relationships. As CIO at Samasta, he brings a unique

combination of technological expertise and management skills.

Shivaprakash.D ( Director & CIO)

Shekar.RC

RC Shekar is the Founder of Dreamtex, which specializes in the creation of hand and machine

embroidery on silk. His enterprise has provided employment for many people in the villages around

Sriperumbudur, Tumkur and Kunigal. Shekar is a strong believer in the creation of opportunity to

bridge the divide between the privileged and lesser privileged.

“Samasta Annual Report 2015-16"

Ramanathan

Vikraman A.

Badri Seshadri

A.

Mr. Ramanathan has extensive experience in the development banking for the agriculture and

rural sectors; He was Chief General Manager in the Micro Credit Innovations Department of

NABARD. He managed the SHG Bank Linkage programme, the largest microfinance programme

in the world. As In-charge of the Financial Inclusion department, he has managed Financial

Inclusion Fund and Financial Inclusion Technology Fund.

A former Chief General Manager of SIDBI Foundation for Micro Credit, Mr. Vikraman has extensive

experience in the Microfinance Sector. In his experience spanning 38 years, he was with Reserve

Bank of India for 5 years, IDBI for 16 years and SIDBI for 17 years. He is also in the board of other

microfinance and financial corporations.

An alumnus of IIT, Chennai and with a Ph.D in Mechanical Engineering from Cornell University in the

USA, Mr. Badri Seshadri co-founded Cricinfo.com, a cricket information portal, which is now

owned by ESPN. His latest venture is New Horizon Media, focusing on publishing in Indian

languages.

Independent Directors

03


Management Team

Parthasarathy.S (Chief Financial Officer)

Kanagavel.R (General Manager - Operations)

S. Parthasarathy is a qualified cost accountant having over 15

years of experience in Finance & Accounts space in diversified

industries ranging from Manufacturing, Real Estate and

Microfinance.

Kanagavel has over 30 years of experience in various positions

with Tamilnadu Mercantile Bank Ltd. He handled branches in

Bangalore, Coimbatore and Tuticorin, etc. He has vast

knowledge in appraisal of loan proposals, recovery, and

inspection. He also worked as General Manager of Virutcham

Microfinance Ltd.

Ramesh J ( Senior Manager – BC - Operations )

Ramesh J has over 10 years of experience in the same field

and currently takes care of BC Operations that includes Yes

Bank Ltd & IDBI Ltd.


Bankers

Our Partners

MAANAVEEYA DEVELOPMENT & FINANCE LIMITED


Financial Institutions

Insurance Partners

Kotak Life Insurance provides the Term Insurance to our valued customers.

MFI Rating Agencies Credit Analysis & Research Ltd. – CARE’s MFI Grading is a one-time assessment of a MFI’s operational and financial capability to perform and sustain the targeted level of operations. CARE evaluates a MFI based on four categories.

1. Transparency 2. Operational Setup

3. Operations Scale 4. Sustainability

Samasta has obtained credit rating “MFI 3+” by CARE Ratings based on its strong track record, growth prospects and sustainable operations.


Samasta has implemented BR.Net (Banker’s Realm) as its

Portfolio Management System. Many MFIs in India and abroad

have implemented this software to track operations.

BR.Net is a web-based solution providing easy access to a large

geographical area. There are over 200 reports available in BR.Net

which can be effectively used in the decision making process.

Credit Information Services

Accounting & MIS Software

High Mark and EquiFax are the leading credit rating information providers. They offer access to

data from the member microfinance institutions. They have adopted Global best practices in

bureau technology to analyze borrower’s credit profile. The multiple report formats enables easier

and faster understanding of the borrower’s credit profile, mitigation of credit risk and enables

management decision making.


At Samasta we believe in providing financial assistance to women and enable them to achieve

their business targets, along with a like-minded Group of members (JLG – Joint Liability Group). All

the loans provided to the members are disbursed only after a series of training sessions and a test;

this enables us to ensure that members understand Product details and repayment structure.

"Loans are in the range of Rs 15000 to 35000 with tenure of 12 months to 24 months",

Products


Operational Performance

Sl. No.

Particulars

1 No. of Branches

2 No. of Active Centres

3 No of Districts

Members Amount Members Amount Member Amount

5 Loan Disbursed - This yr. 44,652 Rs. 96,68,33,089 20,754 `459385000 65,406 `1426218089

Loan Count

Loan AmountLoan Count

Loan AmountLoan Count Loan Amount

7 Portfolio Outstanding ( Including Securitization & Assignment )

60,326 Rs. 90,62,43,819 20,765 `. 418061009 81,091 `.1324304828

5,015 1,466 6,481

Operational Performance- FY 2015-2016

SAMASTA BC -

YES bank & IDBITotal

7 6 13

22 11 32


Top Performing Customers

Jayavani R (Cust ID : 20060004889)

Jayavani R 40 yr from Magadi Road, had a weaving business, in the due course it was difficult for her to invest ,to get the raw materials for her business and to support her family as her son is studying. She heard about Samasta from one of her friend, she joined Samasta in the year 2013. She borrowed a loan amount of Rs 12000 which she invested in her weaving business Now she is earning well and is able to fulfill her family needs. She is a loyal customer of Samasta and pays her installment on time and with our help she has expanded her business. Now she is earning Rs 12000 per month. According to her Samasta has shown her a new path to lead her life. She is all praise for the institutions as she knows the institution does what it promises to do.

Vijayalakshmi, a 42 years old women from sriramapuram, Bangalore has been Samasta client for last 3 years. She lives in the rural outskirts of Bangalore and owns a provision shop. Three years back she wasn’t even aware that she could manage a business her self. She took 12000 Loan from Samasta and started a saree business at home. She was able to pay the installments on time. Based on her good repayment track and willingness of expanding business .samasta provided Rs. 35,000/- in next loan cycle and now she own a provision store. She is really doing well now. Samasta helped her in leading a life with proper financial support. Now she can support her family and able to give proper education to her children.

Jayavani also believes that women empowerment is only possible through the financial independence of women. Now she is planning to take another step in her business. She wants to do her business in large scale. Samasta has also extended her, all support possible as she grows with her business.

Vijayalakshmi (Cust ID : 20060007298)

Vijayalakshmi says that the motivation she got from samasta fired the spark which was dormant inside of her. From the training she received from samasta now she is very good in cutting unwanted expenses and saving money for future.


Kavitha (Cust ID : 20060007310)

Kavitha, a 36 Years old women from Srirampura, had a small cloth business which she was running from home. After the years of experience in cloth business wanted to start a small cloth shop herself. She was also getting only small amount as margin from the business she running from home while she knew that this can be a very profitable business. She visited several banks and institutions to avail loan but she was not able to get loan. It was at this time, She was approached by a samasta Field welfare officer to detail her about the institution services. She didn’t hesitate to avail the companies financial service by the virtue of samasta’s good will and branch trustworthiness.

Samasta Granted the loan after quick verification and Kavitha used the whole loan as working capital to set up her business. She was also given awareness on financial literacy through training programs. The change which Kavitha experience after starting her own cloth shop was remarkable.

The realization of her business plan changed her life, Now, she plans to make her working space to better conditions. Kavitha is also all praise for samasta for its initiatives and commitment towards its goal of empowering women.

Rathnamma (Cust ID : 20030007997)

Rathnamma 52 yr old women from Nagavara, Bangalore has been with Samasta from 2015. She is a widow and to earn a livelihood was very difficult. One year back she was inspired by one of her friends managing petty shop, She thought she also could do that, she discussed her ambition with the friend.

But there were few challenges ahead for her. She would need a little investment to set up a petty shop. And this time again one of her friend informed her about samasta’s financial offerings and she decided to approach samasta for assistance.

Samasta staff soon analyzed her plans and promised Rathnamma of the services. She was joined to a joint liability group and her loan was sanctioned immediately. Her petty shop become stable very soon.

She Already made some plans to expand her business, She intends to avail second cycle loan from samasta as soon as she finishes the present one and expand business.


TO THE MEMBERS OF SAMASTA MICROFINANCE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of SAMASTA MICROFINANCE LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of ignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Auditors' Responsibility

Independent Auditor’s Report

Financial Performance

The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies

Act, 2013 (“the Act”) with respect to the preparation of these consolidated financial statements

that give a true and fair view of the consolidated financial position, consolidated financial

performance and consolidated cash flows of the Company in accordance with the accounting

principles generally accepted in India, including the Accounting Standards specified under

Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility

also includes the maintenance of adequate accounting records in accordance with the provision

of the Act for safeguarding of the assets of the Company and for preventing and detecting the

frauds and other irregularities; selection and application of appropriate accounting policies;

making judgments and estimates that are reasonable and prudent; and design, implementation

and maintenance of adequate internal financial control, that were operating effectively for

ensuring the accuracy and completeness of the accounting records, relevant to the preparation

and presentation of the financial statements that give a true and fair view and are free from

material misstatement, whether due to fraud or error.

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.

“Samasta Annual Report 2015-16"

Opinion

Report on Other Legal and Regulatory Requirements

An audit involves performing procedures to obtain audit evidence about the amounts and

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 true and fair view in order to design audit

procedures that are appropriate in the circumstances. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of the accounting estimates

made by the Holding 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 consolidated financial statements.

In our opinion and to the best of our information and according to the explanations given to us, the

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:

a) In the case of the Consolidated Balance Sheet, of the state of affairs of the Company as at

March 31, 2016;

b) In the case of the Consolidated Statement of Profit and Loss Account, of the profit for the

year ended on that date; and

c) In the case of the Consolidated Cash Flow Statement, of the cash flows for the year ended

on that date.

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' statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

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

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

c) The 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 books of account.

d) 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.

13


For Gowthama & Company

Chartered Accountants

Firm No.: 005917S

H V GowthamaPartnerMem. No: 014353

Place: BangaloreDate: 26.April.2016

e) On the basis of written representations received from the directors as on 31st March, 2016, st

taken on record by the Board of Directors, none of the directors is disqualified as on 31

March, 2016, from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of

the company and the operating effectiveness of such controls, refer to our separate report

in 'Annexure-B’

g) With respect to the other matters to be included in the Auditor's Report in accordance with

Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of

our information and according to the explanations given to us:

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

position.

ii. The Company did not have any long-term contracts including derivatives contracts

for which there were any material foreseeable losses; and

iii. There were no amounts which required to be transferred to the Investor Education

and Protection Fund by the Company.


Annexures

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

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

(b)According to the information and explanation explained to us, fixed assets have been

physically verified by the management during the year which, in our opinion, is reasonable having regard to the size of the company and the nature of its Assets. Nomaterial discrepancies were noticed on such verification.

©The Company does not hold any immovable properties, therefore this clause is notapplicable to the company.

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

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

a) The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest

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

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

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

5. According to the information and explanations given to us and on the basis of ourexamination of the books of account, the Company has not accepted any depositscovered under section 73 to 76 of the Companies Act or any other relevant provisions ofthe Companies Act or the rules. framed there under or directions issued by RBI.Therefore this clause is not applicable to Company.

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

The Annexure-A referred to in our Report of even date to the members of SamastaMicrofinance Limited, on the financial statements of the company for the year ended March 31, 2016.


7 (a) According to the records of the company, undisputed statutory dues includingProvident Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth taxDuty of customs, Duty of Excise, Value Added Tax and any other statutory dueswith the appropriate authorities have generally been regularly deposited with theappropriate authorities. According to the information and explanations given to usthere were no outstanding statutory dues as on 31st of March, 2016 for a period ofmore than six months from the date they became payable.

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

8. According to the information and explanations given to us and on the basis of ourexamination of the books of account we are of the opinion that, the Company has notdefaulted in repayment of dues to a financial institution, bank or debenture holders.

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

10. According to the information and explanations given to us and based upon the auditprocedures performed, we report that no fraud by the Company and no fraud on thecompany by its officers/employees has been noticed or reported during the year, norhave we been informed of such case by the management.

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

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

13. According to the Information and Explanation given to us, all the transactions with therelated parties are in compliance with section 188 and 177 and where applicable thedetails have been disclosed in the financial statements as required by the accountingstandardandCompaniesAct2013.

14. According to the Information and Explanation given to us, the company has not madeany preferential allotment /private placement of shares or fully or partly convertibledebenture during the year under review and therefore this clause is not applicable tothe company.


For Gowthama & CompanyChartered AccountantsFirm No: 00501784974,

H V Gowthama

Partner

Mem. No: 014353

Place: Bangalore

Date: 26.April.2016

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

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


Report on the Internal Financial Controls under Clause

(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

'ANNEXURE-B' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE

ON THE FINANCIAL STATEMENTS OF SAMASTA MICROFINANCE LIMITED

Management's Responsibility for Internal Financial Controls

Auditors' Responsibility

We have audited the internal financial controls over financial reporting of Samasta Microfinance

Limited (“the Company”) as of March 31, 2016 in conjunction with our audit of the financial

statements of the Company for the year ended on that date.

The Company's management is responsible for establishing and maintaining internal financial

controls based on essential components such as the control environment, the entity's risk

assessment process, control activities, Information system and communication and the monitoring

of such controls. These responsibilities include the design, implementation and maintenance of

adequate internal financial controls that were operating effectively for ensuring the orderly and

efficient conduct of its business, including adherence to Company's policies, the safeguarding of its

assets, the prevention and detection of frauds and errors, the accuracy and completeness of the

accounting records, and the timely preparation of reliable financial information, as required under

the Companies Act, 2013.

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 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.


For Gowthama & Company

Chartered Accountants

Firm No: 005917S

H V Gowthama

Partner

Mem. No: 014353

Place: Bangalore

Date: 26.April.2016

Meaning of Internal Financial Controls Over Financial Reporting

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

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 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.

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, 2016, based on essential components such as the control

environment, the entity's risk assessment process, control activities, Information system and

communication and the monitoring of such controls.


TO THE MEMBERS OF SAMASTA MICROFINANCE LIMITED

stYour Directors have pleasure in presenting their 21 Annual Report on the business and operations of the Company together with the Audited Statement of Accounts for the financial year ended

st31 March, 2016.

1. FINANCIAL HIGHLIGHTS (STANDALONE AND CONSOLIDATED)

(I) STANDALONE FINANCIALS OF M/s SAMASTA MICROFINANCE LIMITED

During the year under review, performance of your company is as under:

Director’s Report

(Rs. in Lakhs)

(II) CONSOLIDATED FINANCIALS WITH THE SUBSIDIARY M/s AYUSHA DAIRY PRIVATE LIMITED

Particulars Year ended

31st March 2016 Year ended

31st March 2015

Total Revenue 2,013.98 1,323.54

Profit/(loss) before Interest Depreciation and Tax 1,193.15 730.18

Profit/(loss) before Depreciation and Tax 213.56 108.05

Depreciation 24.27 29.03

Profit/ (loss) before tax 189.29 79.02

Add/ (less): Provision for Tax 42.73 (19.56)

Profit/ (loss) after Tax 146.55 59.46

Proposed Dividend on Preference Shares 9.00 0.50

Dividend Distribution Tax 1.83 0.10

Statutory Reserve A/C 29.50 31.83

Other Reserves – Surplus 154.66 48.44

Earnings Per Share (Basic) 1.40 0.83

Earnings Per Share ( diluted) 1.40 0.83

Particulars Year ended 31st March

2016

Year ended 31st March

2015

Turnover 2,135.08 2,070.10

Profit/ (Loss) before taxation 226.02 80.27

Less: Tax Expenses 60.77 (19.64)

Profit/ (Loss) after tax 165.25 60.63


2. A) OPERATIONAL HIGHLIGHTS OF THE YEAR

Particulars

Active borrowers (Own Portfolio)

Loan disbursement (Rs. in lakhs)

Loan portfolio (Rs. in lakhs)

BC loan portfolio (Rs. in lakhs)

Securitization (Rs. in lakhs)

No. of Branches

No. of centers

No. of employees

Repayment rate

2015-16

42,200

9,668

6,807

4,181

2,256

33

3,521

259

99.00%

2014-15

48,013

7,191

5,779

40

-

26

3,320

190

99.00%

B) MANAGEMENT DISCUSSION AND ANALYSIS

RBI GUIDELINES / PRUDENTIAL NORMS

3. CHANGE IN NATURE OF BUSINESS, IF ANY

There is no change in the nature of Business of your company during the financial year under the review.

The Microfinance industry has been in focus of all the stakeholders including the Govt and the Regulatory Authorities. The growth experienced by the sector during the last financial year has been good considering the fact that most of the other sectors have shown negative growth. The Regulator has also recently relaxed some of the norms including microfinance loan eligibility of the clients, quantum of loan, etc which is expected to further the cause of the microfinance agencies in helping the poor. Your company is also in a better footing with infusion of equity by a Financial Institution and the continuous lending support extended by the Banks and NBFCs. It has also tied up with a Private Sector Bank under its business correspondent model which will help the company grow its other operating income. The credit line sanctioned by the Bank is substantial and a few Branches have been opened by the Company exclusively to cater to this requirement.

Your Company is registered with RBI as a category “B” – Company not accepting deposits from Public. Your Company has complied with all applicable regulations of the Reserve Bank of India. Further, your Company did not accept any public deposits during the year and did not have any public deposits outstanding at the end of the financial year.


4. DIVIDEND

5. TRANSFER OF RESERVES

During the financial year, transfer of Rs. 2,950,000/- to statutory reserve and has been made as per the statutory requirement.

6. CHANGES IN SHARE CAPITAL, IF ANY

7. DISCLOSURE REGARDING ISSUE OF EMPLOYEE STOCK OPTIONS

Your Company has not implemented any Employees Stock Option Scheme for its employees.

8. ISSUANCE OF DEBENTURES

Your Directors recommend a 9% final dividend amounting to Rs. 900000.00/- on Optionally Convertible Preference Shares (OCPS) to be paid on your approval at the ensuing Annual General Meeting.

There is no change in the share capital of the Company during the financial year under the review

During the year under review, an amount of Rs. 10,00,00,000/- (Rupees ten crores only) was raised by allotment of 100 Non-Convertible Debentures (NCDs) at Rs. 10,00,000/- each at par to M/s Hinduja Leyland Finance Limited on private placement basis in dematerialized form a company incorporated under the Companies Act 1956, having its registered at 1, Sardar Patel Road, Guindy, Chennai – 600 032. The NCDs are listed with Bombay Stock Exchange.

M/s GDA Trusteeship Limited, having its registered office at GDA House, First Floor, Plot No. 85, S. No. 94 & 95, Bhusari Colony (Right), Kothrud, Pune, Maharashtra – 411 038 have been appointed as Debenture trustee for the NCDs.

M/s Sharepro Services (India) Private Limited, having its registered office at 13 AB Samhita Warehousing Complex, Andheri Kurla Road, Mumbai – 400 072 have been appointed as Registrar and Share Transfer Agent.

Your company has registered itself with SEBI (SCORES) platform in order to handle investor complaints electronically and the company has not received any complaints from the debenture holder.


9. EXTRACT OF ANNUAL RETURN

As per 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 enclosed and form part of this report as Annexure A.

10. NUMBER OF BOARD MEETINGS

During the financial year ended 31st March 2016, 15 (fifteen) Board Meetings were held on 23/04/2015, 28/04/2015, 30/04/2015, 13/05/2015, 21/05/2015, 28/05/2015, 15/06/2015, 22/07/2015, 30/07/2015, 22/09/2015, 06/10/2015, 15/10/2015, 30/10/2015, 05/02/2016 and 26/02/2016 respectively.

11. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF COMPANIES ACT, 2013

12. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

13. MATERIAL CHANGES AFFECTING THE FINANCIAL POSITION OF THE COMPANY

stThere are no material changes and commitments between 31 March 2016 and the date of this report having an adverse bearing on the financial position of the Company.

14. CONSERVATION OF ENERGY, TECHNOLOGICAL ABSORPTION & FOREIGN EXCHANGE EARNINGS/OUTGO

As the Company is a Non-Banking Financial Company, the requirements under Section 186 of the Companies Act, 2013 relating to Loans, Guarantees or Investments are not applicable to the company.

During the financial year, the Company has entered into contracts or Arrangement with Related Parties as per Section 188 of the Companies Act, 2013 and the Rules framed thereunder as enclosed in Annexure B.

1. Conservation of Energy & Technological Absorption

Since your Company does not own any manufacturing facility, the requirement of disclosure of particulars relating to conservation of energy and technology absorption in terms of Section 134 of the Companies Act, 2013 and the Rules framed thereunder is not applicable.

2. Foreign exchange earnings and outgo

Your Company does not have any foreign currency earnings or expenditure during the st

financial year ended 31 March 2016.


15. DETAILS OF SUBSIDIARY, JOINT VENTURE OR ASSOCIATES

16. RISK MANAGEMENT POLICY

The Company has a 100% wholly owned subsidiary M/s Ayusha Dairy Private Limited which is into procurement of milk from dairy farmers and marketing the milk to milk products producers and promoting the solar products. Pursuant to sub-section (3) of Section 12 of the Companies Act, 2013, the statement containing the salient feature of the financial statement of a Company's Subsidiary i.e. M/s Ayusha Dairy Private Limited is given as Annexure C.

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

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

Asset Liability Committee (ALCO) ensures that the liquidity and interest-rate risks are contained within the limits laid down by the Company. Being dynamic, the risk management framework continues to evolve in line with the emerging risk perceptions.

ALCO reviews the lending policy, interest rate policy and guides the team towards prudent lending practices. The Company has given high importance to prudent lending practices and has put in place suitable measures for risk mitigation.

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


17. DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Your Board of Director presently consists of the following members:

The present KMP of the company are:-

Mr. Govindarajan Ramabadran, resigned as Chief Financial Officer with effect from 23/09/2015

Details of Directors liable to retire by rotationstMr. Chandra Shekar Ramakrishna is liable to retire by rotation at the ensuing 21 Annual General

Meeting in accordance with Section 152 of the Companies Act, 2013 and is eligible offers himself for re-appointment.

Declaration from Independent Directors

The Company has received declarations from all the Independent Directors to the effect that they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013.

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

Sl. No Name of the Directors Designation

1. Mr. Badrinarayanan Seshadri Independent Director

2. Mr. Ramanathan Annamalai Independent Director

3. Mr. Vikraman Ampalakkat Independent Director

4. Mr. Narayanaswamy Venkatesh Managing Director and Chief Executive Officer

5. Mr. Shivaprakash Deviah Whole-Time Director and Chief Information Officer

6. Mr. Chandra Shekar Ramakrishna Executive Director

Sl. No Name of the KMP Designation

1. Mr. S Parthasarathy Appointed as Chief Financial Officer with effect from 05/02/2016

2. Ms. Ritu Singh Company Secretary


19. STATEMENT IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROL WITH REFERENCE TO THE FINANCIAL STATEMENTS

20. DEPOSITS

Your Company has not accepted any deposits from public during the financial year under review.

21. AUDIT COMMITTEE.

The Audit Committee currently consists of the following members:

1. Mr. Vikraman Ampalakkat, Chairman

2. Mr. Badrinarayanan Seshadri

3. Mr. Shivaprakash Deviah

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

The Company has a well-established and adequate internal financial control and risk management framework, with appropriate policies and procedures, to ensure the highest standards of integrity and transparency in its operations and a strong corporate governance structure, while maintaining excellence in services to all its stakeholders. Appropriate controls are in place to ensure: (a) the orderly and efficient conduct of business, including adherence to policies, (b) safeguarding of assets, (c) prevention and detection of frauds / errors, (d) accuracy and completeness of the accounting records and (e) timely preparation of reliable financial information.

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

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


22. STATEMENT SHOWING ANNUAL PERFORMANCE EVALUATION OF BOARD AND ITS COMMITTEE.

23. NOMINATION & REMUNERATION COMMITTEE

The Nomination & Remuneration Committee currently consists of the following members:

1. Mr. Ramanathan Annamalai, Chairman

2. Mr. Badrinarayanan Seshadri

3.Mr. Narayanaswamy Venkatesh


24. RESOURCING & BUSINESS COMMITTEE

The Resourcing & Business Committee currently consists of the following members:1. Mr. Narayanaswamy Venkatesh2. Mr. Shivaprakash Deviah3. Mr. R C Shekar


25. DISCLOSURE ON ESTABLISHMENT OF A VIGIL MECHANISM

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

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

Your Company has established a Vigil Mechanism & has adopted a Whistle Blower Policy for directors and employees to report their genuine concerns to the Chairman of the Audit Committee.

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


26. DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

27. AUDITORS

Statutory Auditors

Internal Auditor

Secretarial Auditor

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

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

Your Company's Statutory Auditors, M/s. Gowthama and Company., Chartered Accountants, has th

been appointed as Statutory Auditors of the company at the 20 Annual General Meeting held on th rd24 July 2015 for a term of 3 (three) years upto 23 Annual General Meeting, subject to the

ratification of the shareholders at every Annual General Meeting.

thBased on the recommendations from Audit Committee, the Board has at its meeting held on 26 April 2016 recommended the ratification of appointment of M/s Gowthama and Company,

stStatutory Auditors, to the shareholders at the ensuing21 Annual General Meeting.

M/s Gowthama and Company, Statutory Auditors have confirmed that they are eligible for appointment and within the limits as prescribed under Section 139 of the Companies Act 2013. Accordingly, the recommendation for ratification of their appointment as the Statutory Auditors

st ndfrom the conclusion of the ensuing 21 Annual General Meeting until the conclusion of 22 Annual General Meeting is proposed for the approval of the members by way of an ordinary resolution.

To carry out internal audit of all its operations, your Company has engaged Mr. Subramanya Puranik B N, Chartered Accountant as its Internal Auditor. The internal audit covers the Head Office and branches of the Company.

M/s S Sandeep & Associates, Practicing Company Secretaries was appointed to conduct the secretarial audit of the Company for the financial year 2015-16, as required under Section 204 of the Companies Act, 2013 and rules made thereunder.

stThe secretarial audit report for the financial year ended 31 March 2016 forms part Annual report as an Annexure D to Board's Report.


Particulars of Employees and Related Disclosures

28. DIRECTORS' RESPONSIBILITY STATEMENT

ACKNOWLEDGMENTS

Registered Office:

Samasta Microfinance Limited,th th418, 1/2A, 4 Cross, 6 Main,

Wilson Garden,

Bangalore – 560027

Ph. No. 080 – 42913500

By Order of the Board of Directors

Narayanaswamy Venkatesh Shivaprakash Deviah

Managing Director Whole-time Director

DIN: 01018821 DIN: 02216802Place: Bangalore

thDate: 26 April, 2016

In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules are provided in the Annual Report. Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in the Annual Report as Annexure E

To the best of their knowledge and belief, and according to the information and explanations obtained by them, your Directors confirm the following in terms of Section 134 of the Companies Act, 2013 and the Rules made thereunder:-a) in the preparation of the annual accounts, the applicable accounting standards had

been followed along with proper explanation relating to material departures;b) the directors had 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 of the company for that period;

c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d) the directors had prepared the annual accounts on a going concern basis; ande) the directors, in case of listed company, had laid down internal financial controls to

be followed by the company and that such internal financial controls are adequate and were operating effectively.

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

Your Directors wish to thank the customers, bankers, shareholders, service agencies and other stakeholders for their support. The directors also thank the employees for their contribution during the financial year under review.

30Samasta Annual Report 2015-16

ANNEXURE A

FORM No. MGT-9

EXTRACT OF ANNUAL RETURN: As on the financial year ended on 31/03/2016

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies [Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

(I) CIN : U65191KA1995PLC057884

(ii) Registration Date : 09/08/1995

(iii) Name of the Company: SAMASTA MICROFINANCE LIMITED

(iv) Category / Sub-Category of the Company: Company Limited by Shares

(v) Address of the Registered office and contact details:th th

418, 1/2A, 4 Cross, 6 Main, Wilson Garden, Bangalore KA 560027 INDIA

(vi) Whether listed company : Yes/No

(vii ) Name, Address and Contact details of Registrar and Transfer Agent, if any:

NA

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

All the business activities contributing 10 % or more of the total turnover of the company shall

be stated:-

Annexures To Directors' Report

Sl. No NIC Code of the

Product/ service

% to total turnover of the

company

Name and Description of

main products / services

Financing Services –

Micro Finance Lending100%649901

I. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES :

Sl.No Name and address of the

company

CIN/GLN Holding/

Subsidiary/

Associate

% of shares

held

Applicable Section

2 (87)Ayusha Dairy Private Limitedth th418, 1/2A, 4 Cross, 6 Main,

Wilson Garden, Bangalore

KA 560027 INDIA

1. U15490KA2011

PTC058468Subsidiary 100%

Samasta Annual Report 2015-16

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

31

I) Category-wise Share Holding:


Share holding of Promoters: NA

32

Particulars


(I)Change in Promoters' Shareholding (please specify, if there is no change): NA

(iv). Shareholding Pattern of top ten Shareholders

(other than Directors, Promoters and Holders of GDRs and ADRs):

(v) Shareholding of Directors and Key Managerial Personnel:

33


V.INDEBTEDNESS:

Indebtedness of the Company including interest outstanding/accrued but not due for payment

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

34


B.Remuneration to other Directors: NIL

36


C. Remuneration to other Directors key managerial personnel other than MD/MANAGER/WTD:

37

VII.PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Registered Office: By Order of the Board of Directors


Wilson Garden,


Ph. No. 080 – 42913500

Place: Bangalore Narayanaswamy Venkatesh Shivaprakash DeviahthDate: 26 April, 2016 Managing Director Whole-time Director

DIN: 01018821 DIN: 02216802

ANNEXURE BFORM NO. AOC-2

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

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

1. Details of contracts or arrangements or transactions not at arm's length basis:

a) Name of the related party and nature of relationship: Ayusha Dairy Private Limited, wholly owned subsidiary.

b) Nature of contracts/ arrangements / transactions:1. Rendering of services like usage of premises and deputation of personnel2. Reimbursement of costs and expenses3. Other services as may be agreed to between the Company and M/s Ayusha Dairy Private Limited from time to time

c) Duration of the contracts/ arrangements/ transactions: On goingd) Salient terms of the contracts or arrangements or transactions including the value, if any: NAe) Justification for entering into such contracts/ arrangements/ transactions: NAf) Date of approval by the Board: 26/04/2016g) Amount paid as advance, if any: NAh) Date on which the special resolution was passed in general meeting as required under the

first proviso to section 188: NA

2. Details of material contracts or arrangement or transactions at arm's length basis:

a) Name of the related party and nature of relationship:

b) Nature of contracts/ arrangements/ transactions:

c) Duration of the contracts/ arrangements/ transactions:

d) Salient terms of the contracts or arrangements or transactions including the value, if any:

e) Justification for entering into such contracts/ arrangements/ transactions: Business

requirements.

Registered Office: By Order of the Board of Directors


Wilson Garden,


Ph. No. 080 – 42913500

Place: Bangalore Narayanaswamy Venkatesh Shivaprakash DeviahthDate: 26 April, 2016 Managing Director Whole-time Director

DIN: 01018821 DIN: 02216802



Name of Subsidiary Company Ayusha Dairy Private Limited

Issued and Subscribed Capital Rs. 10,000,000/-

Reserves Rs. 2,114,727/-

Total Assets Rs. 13,969,759/-

Total Liabilities Rs. 13,969,759/-

Investments Nil

Turnover Rs. 14,323,602/-

Profit / (Loss) Before Tax Rs. 3,672,874/-

Provision for tax Rs. 1,802,784/-

Profit / (Loss) After Tax Rs. 1,870,090/-

Proposed Dividend Nil

% of Share holding 100%

ANNEXURE-C

SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARY AS PER COMPANIES ACT 2013


Annexure EPARTICULARS OF EMPLOYEES

A.Information as per Rule 5(1) of Chapter XIII, Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 Remuneration paid to Whole Time Director(s):

Name of the Director

Title Remuneration in FY 2015-16

% increase of remuneration in FY 2015-16 as Compared to FY 2014-15

Ratio of remuneration to Median Remuneration of Employees

Ratio of remuneration to Revenues

Ratio of remuneration to NetProfit

Narayanaswamy Venkatesh

Managing Director

2,711,988 15.63% Nil 1.42% 18.51%

Shivaprakash Deviah

Whole-time Director

2,038,515 12.23% Nil 1.06% 13.91%

Chandra Shekar Ramalcrishna

Executive Director

1,505,292 13.95% Nil 0.79% 10.27%

Ratio of remuneration to Net Profit

Name ofthe Director

Remuneration in FY 2015-16* (in Rs.)

Remuneration in FY 2014-15* (in Rs.)

% increase ofremuneration (FY 2015-16 over FY 2014-15)

* The Independent Directors were paid sitting fees of ̀ 20,000 per meeting for attending Board and Audit Committee meetings and no other remuneration was paid over and above the sitting fees during FY 2014-15 & FY 2015-16.

Remuneration paid to Key Managerial Personnel (KMP):

Name of the KMP

Title

Remuneration in FY 2015-16

Remuneration in FY 2014-15

% increase of remuneration in FY 2015-16 as Compared to FY 2014-15

Ratio of remuneration to Revenues

Ratio of remuneration to Net Profit


st st1. The number of employees on the rolls of the Company as of 31 March, 2016 and 31

March, 2015 was 259 and 190 respectively.

2. The median remuneration of employees was Nil and Nil for FY 2015-16 and FY 2014-15 respectively.

3. The operating revenue for FY 2015-16 stood at Rs. 191,598,918, whereas for FY 2014-15 the same was Rs. 124,520,094. The net profit for the FY 2015-16 was Rs. 14,655,322 whereas for the FY 2014-15 it was net profit of Rs. 5,945,718.

4. The aggregate remuneration of employees for the FY 2015-16 was Rs. 42,530,299. The aggregate remuneration of whole time director and key managerial personnel was 6,866,220.

5. The key parameters of remuneration availed by the directors are considered by the Board of Directors.

6. It is hereby affirmed that the remuneration paid is as per the as per the Policy for Directors, Key Managerial Personnel and other Employees.

B. Information as per Rule 5(1) of Chapter XIII, Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

No employee of the Company was in receipt of remuneration, in excess of Rs 60 Lakhs during the financial year 2015-16.

42

R. Govindarajan Upto 22/09/2015

CFO 754,357 180,105 318% 0.39% 5.15%

S. Parthasarathy, wet 05/02/2016

CFO 480,081 Nil NA 0.25% 3.28%

Ritu Singh,

Company Secretary

130,344 18,232 Nil 0.07% 0.09%


BALANCE SHEET AS AT 31ST MARCH, 2016

11,47,00,000

2,15,98,728

13,62,98,728

32,66,91,099

1,22,58,331

33,89,49,430

50,31,63,052

64,52,901

50,96,15,953

98,48,64,111

1,00,16,410

8,56,799

1,05,00,000

28,23,812

-

30,87,97,826

33,29,94,847

50,23,81,859

13,06,66,104

60,24,233

1,27,97,068

65,18,69,264

98,48,64,111

As at 31st March, 2016


` `

I EQUITY AND LIABILITIES

(1) Shareholder's Funds(a) Share Capital 2 11,47,00,000

(b) Reserves and Surplus 3 80,26,624

12,27,26,624

(2) Non-Current Liabilities(a) Long-term borrowings 4 22,32,00,397

(b) Long-term provisions 6 1,01,60,273

23,33,60,670

(3) Current Liabilities(a) Other current liabilities 7 36,49,23,140

(b) Short-term provisions 8 22,09,908

36,71,33,048

Total 72,32,20,342 II ASSETS

(1) Non-current assets(a) Fixed assets 9 (i) Tangible assets 68,93,606

(ii) Intangible assets 11,52,319

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

(c) Deferred tax assets (Net) 5 17,47,735

(d) Long-term loans and advances 11

42,19,241

(e) Other non-current assets 12 16,45,98,303

18,91,11,204

(2) Current assets(a) Trade Receivables 13 46,43,33,914

(b) Cash and Cash equivalents 14 6,06,48,427

(c) Short-term loans and advances 15 18,40,511

(d) Other current assets 16 72,86,286

53,41,09,138

Total

72,32,20,342

Particulars Note No.

As per our attached report of even dateFor Gowthama & CompanyChartered Accountants For and on behalf of the Board of DirectorsFirm No. 005917S

H.V. GowthamaN. Venkatesh D. ShivaprakashPartner Managing Director Whole-time DirectorM. No. 014353

S. Parthasarathy Ritu SinghChief Financial Officer Company SecretaryPlace: Bangalore

Date: 26.April.2016

Significant accounting policies and notes to the accounts 1


Year ended

31st March, 2016

Year ended

31st March, 2015

` `

(A) Revenue from Operations 17 19,15,98,918

12,45,20,094

(B) Other Income 18 97,99,712

78,34,156

(C) Total Revenue (A+B) 20,13,98,630

13,23,54,250

(D) Expenses a) Employee benefits expenses 19 4,93,96,519

3,73,95,322

b) Finance costs 20 9,79,58,479

6,22,13,724

c) Depreciation and amrotization expenses 9 24,27,364

29,03,098

d) Administrative and Other expenses 21 3,26,87,023

2,19,40,544

Total Expenses (D) 18,24,69,385

12,44,52,688

(E) Profit for the year before tax (C-D) 1,89,29,245

79,01,562

(F) Tax expenses (a) Current tax 53,50,000

21,50,000

(b) MAT credit availed and utilised -

10,16,851

(c) Availment of MAT credit short availed in previous years - (3,42,646)

(d) Income tax adjustment - 1,08,015

(e) Deferred tax 5 (10,76,077) (9,76,376)

(G) Profit for the year after tax (E-F) 1,46,55,322

59,45,718

(H) Earnings per Equity Share (Face value of `10/- each):(a) Basic 1.40

0.83

(b) Diluted 1.40

0.83

Significant accounting policies and notes to the accounts 1

As per our attached report of even dateFor Gowthama & CompanyChartered Accountants For and on behalf of the Board of DirectorsFirm No. 005917S

H.V. Gowthama N. Venkatesh D. ShivaprakashPartner Managing Director Whole-time DirectorM. No. 014353

S. Parthasarathy Ritu SinghChief Financial OfficerCompany Secretary


Note

No.

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2016


45


CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2016

Year ended 31st

March, 2016

Year ended 31st

March, 2015

` `

CASH FLOW FROM OPERATING ACTIVITIES

Net Profit Before Tax 1,89,29,245

79,01,562

Adjustments for:

Depreciation 24,27,364

29,03,098

Dividend on Mutual funds (23,00,293)

(10,76,861)

Provisions for Standard and Non Perfoming Assets 10,27,402

8,65,751

Bad Debts Written Off 15,11,224

7,09,070

Interest on Fixed Deposits (71,15,063)

(40,19,401)

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

(436)

Operating Profit before Working Capital Changes A 1,44,33,161

72,82,783

Working Capital Changes:

(Increase) / Decrease in trade and other receivables (3,95,59,169)

(1,88,36,320)

(Increase) / Decrease in Short term loans and advances (41,83,722)

2,40,210

(Increase) / Decrease in Other Current Assets (55,10,782)

(26,12,558)

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

20,68,601

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

(7,86,97,110)

Increase / (Decrease) in Long term Liabilities 10,34,90,702

1,64,74,627

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

5,53,416

Increase / (Decrease) in Other current liabilities 13,82,39,912

6,11,82,161

Changes in Working Capital B 5,48,80,788

(1,96,26,973)

Cash generated from operations A+B 6,93,13,949

(1,23,44,191)

Income taxes paid (34,43,790)

(17,09,000)

Net cash from operating activities 6,58,70,159 (1,40,53,191)

CASH FLOW FROM INVESTING ACTIVITIES

Investment in Shares -

(1,00,000)

Sale of Fixed Assets 3,00,000

10,000

Dividend from Mutual Funds 23,00,293

10,76,861 Purchase of Fixed Assets (55,07,930)

(6,30,211)

Interest on Fixed Deposits 71,15,063

40,19,401

Net Cash used in Investing activities 42,07,426

43,76,051

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of Equity Share Capital -

1,50,00,000

Proceeds from issue of Preference Share Capital - 1,00,00,000

Redemption of Preference Share Capital - (1,20,000)

Proceeds of Vehicle loan - (6,02,267)

Dividends paid (including DDT) (59,908) (28,771)

Net cash used in financing activities (59,908) 2,42,48,962

Particulars

46


As per our attached report of even dateFor Gowthama & Company For and on behalf of the Board of DirectorsChartered Accountants Firm No. 005917S

H.V. Gowthama N. Venkatesh D. ShivaprakashPartner Managing Director Whole-time DirectorM. No. 014353

S. Parthasarathy Ritu SinghChief Financial Officer Company Secretary


The aboveCash Flow Statementhas beenpreparedunderthe "IndirectMethod"as set out in AccountingStandard-3on Cash Flow

Statement.

Net increase in cash and cash equivalents 7,00,17,677 1,45,71,823

Cash and cash equivalents as at 01.04.2015 6,06,48,427 4,60,76,604

Cash and cash equivalents as at 31.03.2016 13,06,66,104 6,06,48,427

47

Note 1 - Significant Accounting Policies & Notes forming part of the Accounts

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standard specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act")/Companies Act 1956, ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis and the directions issued by the Reserve Bank of India (RBI) to the extent applicable to the Company. The Company follows the prudential norms for Income recognition, asset classification and provisioning as prescribed by the RBI for Non-deposit taking Non-Banking Financial Companies (NBFC-MFI).

1.Basis of Preparation:

2.Use of Accounting Estimates:

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

The Cash Flow are reported using the indirect method, whereby profit / (loss) before tax isadjusted for the effects of transactions of non-cash nature and any deferrals or accruals ofpast or future cash receipts or payments. The cash flows from operating, investing andfinancing activities of the Company are segregated based on available information.

3.Cash flow statement:

4.Provisions and contingent liabilities:

A provision is recognized when the Company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.The Company does not recognize a contingent liability but discloses its existence in thefinancial statements.



5.Income Taxes and Deferred Taxes:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.Deferred tax is recognized, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tat( assets are recognized only if there is virtual certainty that they will be realized and are reviewed every year. The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantially enacted tax rates.

6.Fixed Assets and Depreciation & Amortization:

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost. less its estimated residual value.Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful fife prescribed in Schedule II to the Companies Act, 2013, except in respect of the following category of assets, in whose case the life of the asset has been assessed based on the technical assessment, which takes into account the nature of the asset, its estimated usage, past history or replacement, operating conditions and future technological changes,following is the categories of assets:Computers - 3 YearsIntangible assets are amortized over their estimated useful life as follows:Software - 3 YearsServers & Networks- 6 YearsIndividual assets costing less than 5,000 each are depreciate fully in the year of purchase.

7.Investments:

Investments which are long term in nature are stated at cost with provisions where necessaryfor diminution, other than temporary, in the value of Investment.

8.Classification & Provisions of Loan Portfolio:

Loans are classified and provided as per norms required in Non-Banking Financial (Non- Deposit Accepting) Companies Prudential Norms (Reserve Bank) Directions, 2007, as amended from time to time.During the financial year 2015-16, the Company has got classified as NBFC-MFI and accordingly has revised its provisioning norms for loan portfolio vide RBI circular dated December 02, 2011 as amended vide circular dated March 20, 2012. According to which theprovision will be higher of:

a) 1% of the outstanding loan portfolio orb) 50% of the aggregate loan installments which are overdue for more than 90 days and less

than 180 days and 100% of the aggregate loan installments which are overdue for 180 days or more.


9.Trade receivables under Financing Activity:

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

10.Revenue Recognition:

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

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

c) Processing fee is recognized as and when collected at the time of loan disbursement. d) Dividend income from investments in mutual fund is recognized when the right to receive is

established.

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

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

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

11.Borrowing Costs:

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

12.Earnings per Share:

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


13.Employee Benefits:

a) Short Term Employee Benefits:All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefits like Salary, • Allowances and incentives, and are recognized as expenses in the period in which the employee renders the related service.

b) Post- employment Benefits: Defined Contribution Plans: The Company's contributions to provident fund are considered as defined contribution plans

and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined Benefit Plans: For defined benefit plans in the form of gratuity, which is not funded, the cost of providing benefits is

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

cost.

Any other accounting policy not specifically referred to are consistettwithgericilyacceptedaccounting principles.

14.General:


As at As at

Particulars 31st March, 2016 31st March, 2015

` `

Authorised:

10,500,000 (Previous year 10,500,000 Equity Shares of ̀10/- each) Equity Shares of 10/- each

10,50,00,000

10,50,00,000

2,000,000 (Previous year 2,000,000 Preference Shares of

10/- each) Preference Shares of 2,00,00,000

2,00,00,000

12,50,00,000

12,50,00,000

Issued:

10,470,000 (Previous year 10,470,000 Equity Shares of 10,47,00,000

10,47,00,000

1,000,000 (Previous year 1,000,000 9% Optionally Convertible Preference Shares of

10/- each) 9% Optionally Convertible Preference Shares of 1,00,00,000 1,00,00,000

11,47,00,000

11,47,00,000

Subscribed and Paid up:

10,470,000 (Previous year 10,470,000 Equity Shares of ̀10/- each) Equity Shares of 10,47,00,000 10,47,00,000

1,000,000 (Previous year 1,000,000 9% Optionally Convertible Preference Shares of

9% Optionally Convertible Preference Shares of ̀ 10/- each 1,00,00,000 1,00,00,000

Total 11,47,00,000

11,47,00,000

As at As at

31st March, 2016 31st March, 2015

Number of shares Number of shares

Equity Shares:

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

65,00,000

Add: Equity shares issued during the year -

15,00,000

Add: Equity shares (Bonus Shares) issued during the year -

24,70,000

Number of shares at the end of the year 1,04,70,000

1,04,70,000

Preference Shares:

Number of shares at the beginning of the year 10,00,000

1,000

Add: Preference shares issued during the year -

10,00,000

Less: Preference shares redemption during the year -

1,000

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

10,00,000

i) Reconciliation of the number of shares outstanding at the beginning and at the

end of the year:

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

Class of shares / Name of the shareholder

Particulars

As at

31st March, 2016

Number of shares

As at

31st March, 2015

Number of shares

Equity Shares:

R.C. Shekar 17,65,020

17,65,020

V.A. Narayanaswamy 10,48,800 10,48,800

G.J. Krishnaprasad 5,52,000 5,52,000 N. Venkatesh 13,35,840 13,35,840 Kalpathi Investments Pvt Ltd 16,56,000 16,56,000 B.H.Krishnamurthy 5,52,000

5,52,000

Sanjay Shenoy 6,83,100

5,52,000

Small Industries Development Bank of India 15,00,000

15,00,000

Total 90,92,760

89,61,660

Preference Shares:


10,00,000

Total 10,00,000

10,00,000

`

` 10/- each `

10/- each) Preference Shares of ` 10/- each `

10/- each ``

10/- each `

10/- each

52

Note 2 - Share Capital


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

ParticularsAs at

31st March, 2016

Number of shares

As at

31st March, 2015

Number of shares

Equity Shares:

R.C. Shekar 17,65,020

17,65,020

V.A. Narayanaswamy 10,48,800

10,48,800

G.J. Krishnaprasad 5,52,000

5,52,000

N. Venkatesh 13,35,840

13,35,840

Kalpathi Investments Pvt Ltd 16,56,000

16,56,000

B.H.Krishnamurthy 5,52,000

5,52,000

Sanjay Shenoy 6,83,100

5,52,000


15,00,000

Total 90,92,760

89,61,660

Preference Shares:

Small Industries Development Bank of India 10,00,000 10,00,000

Total 10,00,000 10,00,000

iii) Terms / rights attached to Preference Shares:a) Rights/preferences attached to Preference Shares

b) Terms of redemption of Preference Shares

ParticularsAs at

31st March, 2016

Number of shares

As at

31st March, 2015

Number of shares

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

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

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

to SIDBI. The redemption will be made by the Company as indicated below:

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

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

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

10,00,000 10,00,000

53

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


As at As at Particulars 31st March, 2016 31st March, 2015

` `a) Capital Redemption Reserve

Opening Balance -

13,50,000

Add: Created during the year upon redemption of Preference Shares -

1,00,000

Less: Utilised towards issue of Bonus Shares -

14,50,000

Closing Balance -

-

b) Securities Premium Account

Opening Balance -

1,80,00,000

Add: Premium on shares issued during the year -

-


1,80,00,000

Closing Balance -

-

c) Other Reserve

i) Statutory Reserve*

Opening Balance 31,82,977 19,93,833 Add: Additions during the year 29,50,000

11,89,144

Closing Balance 61,32,977

31,82,977

d) Surplus

Opening Balance 48,43,647

58,90,390

Add: Profit for the year 1,46,55,322 59,45,718

Less: Proposed Dividend on Preference Shareholders 9,00,000 49,775

Less: Dividend Distribution Tax 1,83,218

10,133

Less: Premium on Redemption of Preference Shares -

20,000

Less: Transfer to Capital Redemption Reserve -

1,00,000

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

11,89,144


52,50,000

Less: Adjustment relating to Fixed Assets -

3,73,409

Closing Balance 1,54,65,751

48,43,647

Total 2,15,98,728 80,26,624

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

54

As at As at


` `

a) Term Loans - Secured

1) From Banks (Refer Note 4.1) 19,40,04,064 16,59,81,058 2) From Other Parties (Refer Note 4.1) 8,51,57,078 5,70,36,112

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

-

c) Vehicle Loans - Secured

1) From Banks (Refer Note 4.1) -

-

d) Vehicle Loans - Unsecured

1) From Banks (Refer Note 4.1) 8,74,719

1,10,880

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

72,347

Total 32,66,91,099

22,32,00,397

Particulars

Note 4 - Long-Term Borrowings

Note 3 - Reserves and Surplus

56Samasta Annual Report 2015-16Samasta Annual Report 2015-16

55

Note 4

Current Liabilities`

Non-current

Liabilities`


Non-current

Liabilities`

Bank of Maharashtra

Rate of Interest - Base

rate + 5.25%, loan

repayable in 11 quarterly

installments.

Hypothecation of book debts,

cash collateral and personal

guarantee of Mr. N. Venkatesh

and Mr. R.C. Shekar, Director.

- - 18,394,626 -

Bank of Maharashtra


rate + 5.25%, loan

repayable in 33 monthly

installments.

Hypothecation of book debts

and personal guarantee of Mr. N.

Venkatesh and Mr. R.C. Shekar,

Director.

16,777,310 - 18,705,104 16,560,000

Bank of Maharashtra


rate + 4.50%, loan


installments.



guarantee of Mr. N. Venkatesh,

Director.

11,220,715 13,625,725 - -

Bank of Maharashtra


rate + 4.50%, loan


installments.




Director.

500,473 2,000,500 - -

Canara Bank


rate + 3.00%, loan


installments.




Director.

10,000,000 15,000,000 7,500,000 22,500,000

Central Bank of India


rate + 4.00%, loan


installments.



Venkatesh, Mr. D. Shivaprakash


- - 6,784,966 -

Corporation Bank


rate + 2.10%, loan


installments.



Venkatesh, Director.

4,205,002 - 16,881,471 -

Dhanlaxmi Bank


rate + 3.75%, loan


installments.




Director.

- - 13,792,315 -

Indian Bank


rate + 3.80%, loan


installments.




Director.

11,539,154 5,970,242 9,822,608 17,854,661

Indian Bank


rate + 3.80%, loan


installments.




Director.

9,211,381 20,102,769 - -

Kaveri Grameena Bank

Rate of Interest - 14.25%,

loan repayable in 36

monthly installments.




Director.

16,666,680 12,853,976 17,224,021 29,166,650

Kaveri Grameena Bank







Director.

1,694,933 3,333,320 - -

Lakshmi Vilas Bank


rate + 2.25%, loan


installments.


and cash collateral 13,322,555 36,677,445 - -

Pallavan Grama Bank







Director.

11,458,816 3,598,134 9,655,930 15,458,023

Pallavan Grama Bank







Director.

913,793 2,090,910 - -

South Indian Bank


rate + 3.70%, loan


installments.




Mr. D. Shivaprakash, & Mr. R.C.

Shekar Director.

3,030,000 6,970,000 - -

Terms of repayment

As at 31st March, 2015As at 31st March, 2016

Name of the Bank Security Offered

Term Loan from Banks - Secured

Note 4.1



56

South Indian Bank


rate + 3.70%, loan


installments.




Mr. D. Shivaprakash, & Mr. R.C.

Shekar Director.

3,030,000 6,970,000 - -

State Bank of India


rate + 3.75%, loan


installments.



Venkatesh, Mr. D. Shivaprakash


- - 13,846,033 -

State Bank of Mysore


rate + 2.25%, loan


installments.




Director.

10,909,200 13,239,389 - -

State Bank of Patiala


rate + 4.75%, loan


installments.




Director.

- - 9,690,952 -

State Bank of Patiala


rate + 3.50%, loan


installments.




Director.

10,909,200 3,627,851 10,909,200 14,545,184

State Bank of Travancore


rate + 4.50%, loan


installments.




Director.

18,180,000 18,661,118 18,180,000 31,820,000

UCO Bank


rate + 4.50%, loan


installments.




Mr. D. Shivaprakash and Mr. R.C.

Shekar, Director.

847,029 - 9,999,996 1,813,515

UCO Bank


rate + 3.00%, loan


installments.




Director.

8,004,000 7,286,685 8,004,000 16,263,025

UCO Bank


rate + 3.00%, loan


installments.




Director.

8,004,000 21,996,000 - -

Union Bank of India


rate + 2.50%, loan


installments.




Mr. D. Shivaprakash and Mr. R.C.

Shekar, Director.

- - 20,833,338 -

170,424,241 194,004,064 210,224,559 165,981,058 TOTAL



57


Non-current

Liabilities`


Non-current

Liabilities`

Ananya Finance for

Inclusive Growth Private

Limited





and 18 no. advance post-dated

cheques.

- - 3,333,328 -

Ananya Finance for


Limited





cash collateral and 24 no.

advance post-dated cheques.

3,333,328 - 5,000,004 3,333,328

Ananya Finance for


Limited





cash collateral and 18 no.

advance post-dated cheques.

3,750,000 2,812,500 - -

Edelweiss Housing

Finance Limited





and cash collateral.8,894,796 - - -

IFMR Capital Finance

Private Limited





and cash collateral.36,392,671 27,664,709 - -

IFMR Capital Finance

Private Limited






Maanaveeya

Development &

Finance Private Limited



quaterly installments.




Director.

11,660,000 - 23,336,000 11,660,000

Maanaveeya

Development &

Finance Private Limited







Director.

- - 2,777,778 -

MAS Financial Services

Limited

Rate of Interest - MAS PLR

+ 1.00%, loan repayable

in 18 monthly installments.


cash collateral and post-dated

cheques.

16,666,664 - 33,333,336 16,666,664

Reliance Capital Ltd.





and cash collateral.- - 1,786,813 -






and cash collateral.- - 12,039,210 -






and cash collateral.21,772,693 - - -







Reliance Home Finance

Ltd.





and cash collateral.4,467,020 - 45,532,980 4,467,020

Religare Finvest Limited







Director.

24,600,794 16,232,023 - -

Small Industries

Development Bank of

India







Director.

16,363,650 - 9,090,900 20,909,100

223,508,003 85,157,078 136,230,349 57,036,112 TOTAL

Terms of repayment Security Offered

As at 31st March, 2015As at 31st March, 2016

Name of the FI / NBFC

Term Loan from Other Parties - Secured



58

Non-Convertible Debentures - Secured


Non-current

Liabilities


Non-current

Liabilities

Hinduja Leyland

Finance Limited

Rate of Interest - 12.78%

p.a. calculated on a

XIRR basis, principal

repayable in 24


Hypothecation of Book Debts 50,000,000 45,833,400 - -

50,000,000 45,833,400 - -

Vehicle Loan from Banks - Secured


Non-current

Liabilities`


Non-current

Liabilities`

Indian Bank


rate + 1.25%, loan

repayable in 60


Hypothecation of Car and

post dated cheques.- - 121,121 -

- - 121,121 -

Vehicle Loan from Banks - Unsecured


Non-current

Liabilities


Non-current

Liabilities

Axis Bank

Rate of Interest -

10.75%, loan repayable

in 60 monthly

installments.

Hypothecation of Car 110,880 - 246,773 110,880

HDFC Bank




Hypothecation of Car 179,937 874,719 - -

290,817 874,719 246,773 110,880

Vehicle Loan from Other Parties - Secured


Non-current

Liabilities`


Non-current

Liabilities`

Kotak Mahindra Prime

Ltd

Loan repayable in 36

monthly installments

(Monthy EMI).

Hypothecation of Car 72,347 - 271,737 72,347

Kotak Mahindra Prime

Ltd

Loan repayable in 60

monthly installments

(Monthy EMI).

Hypothecation of Car 166,457 821,838 - -

238,804 821,838 271,737 72,347

Terms of repayment Security Offered

As at 31st March, 2016 As at 31st March, 2015

TOTAL

Name of Debenture

HolderTerms of repayment Security Offered

Security Offered


TOTAL

Name of the Bank Terms of repayment


TOTAL

As at 31st March, 2016 As at 31st March, 2015


TOTAL

Name of the Bank Terms of repayment Security Offered


Name of the FI / NBFC



59

Note 5 - Deferred Tax

As at As atParticulars 31st March, 2016 31st March, 2015

` `a) Provision for Employee Benefits:

i) Provision for Gratuity 31,49,521 19,02,334

b) Other Provisions:

i) Provision for Taxation 22,52,185

24,28,716

ii) Provision for Standard Assets 68,06,625

57,79,223

iii) Provision for CSR activitiesOpening Balance 50,000

40,000

Add : Provision during the year 50,000

50,000

Less: Utilised during the year 50,000

40,000

Closing Balance 50,000

50,000

Total 1,22,58,331

1,01,60,273

Note 6 - Long - Term Provisions

PARTICULARSAS PER

BOOKSAS PER IT DIFFERENCE TAX @ 33.063%

1) DEFERRED TAX LIABILITY

Fixed asset 10,873,209 9,457,767 1,415,442 (467,988)

2) DEFFERED TAX ASSET

Provision for Gratuity 3,149,521 - 3,149,521 1,041,326

Provision for Doubtful Debts 6,806,625 - 6,806,625 2,250,474

2,823,812

Deferred Tax Liability as on 31.03.2016 467,988

Opening Balance of Deferred Tax Liability 625,866

Provision made in Profit & Loss Account (157,878)

Deferred Tax Asset as on 31.03.2016 3,291,800

Opening Balance of Deferred Tax Asset 2,373,601

Provision made in Profit & Loss Account 918,199

Total Provision made in Profit & Loss Account (1,076,077)

Deferred Tax Asset as on 31.03.2016 (Net) (2,823,812)


Note 7 - Other Current Liabilities

As at As at


` `

a) Current maturities of long-term debt 44,44,61,865

34,70,94,539

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

15,02,015

c) Other payables i) Statutory remittances 24,92,372

9,69,824

ii) Other liabilities 4,79,37,443

1,53,56,762

iii) Unamortised gain on securitisation 54,70,451 -

iv) Payable towards securitisation / assignments 2,40,731 -

Total 50,31,63,052 36,49,23,140

Note 8 - Short-Term Provisions

As at As at


` `

a) Others

i) Tax provision 53,69,683

21,50,000

ii) Proposed Dividend on Preference Shares 9,00,000

49,775

iii) Dividend Distribution Tax on Preference Shares 1,83,218 10,133

Total 64,52,901 22,09,908

60

No

te 9

- F

ixe

d A

sse

ts


61

Note 10 - Non-Current Investments

As at As at


` `

a) Trade - Unquoted Investments, at cost

i) Investments in Equity Instruments

1) Alpha Micro Finance Consultants Pvt. Ltd., 50,000 Equity shares of ̀10/- each fully paid up.

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

5,00,000

5,00,000

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

paid up.

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

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

Total 1,05,00,000 1,05,00,000

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

Particulars


62

Note 11 - Long-Term Loans and Advances

As at As at


` `

a) Loans and advances to related parties [Refer Note 23.2]

i) Unsecured, Considered Good

- Ayusha Dairy Private Limited -

42,19,241

-

42,19,241

Note 12 - Other Non-Current Assets

As at As at


` `

a) Long term Trade receivables


1) Trade receivables under financing activity 17,78,88,727

11,23,02,666

ii) Unsecured, Considered Doubtful

1) Trade receivables under financing activity 3,91,923

12,85,690

17,82,80,650 11,35,88,356

b) Others

i) Deposits with Banks more than 12 months maturity 9,01,18,351

2,94,23,415 ii) Deposits with other NBFC for term loans 1,82,51,572

55,35,329

iii) Deferred Revenue Expenditure 1,12,32,982

77,22,874

iv) Rent Deposits 41,44,000

26,95,000

v) Advance Tax 40,37,000

41,29,000

vi) TDS Receiables 27,33,271

15,04,329

13,05,17,176

5,10,09,947

Total (a+b) 30,87,97,826

16,45,98,303

Note 13 -Trade Receivables

As at As at


` `

a) Unsecured, Considered Good

Outstanding for a period less than six months from the date they are due for payment 50,04,08,284

46,24,32,961

b) Unsecured, Considered Doubtful

Outstanding for a period exceeding six months from the date they are due for payment 19,73,575 19,00,953

Total 50,23,81,859 46,43,33,914


Note 14 - Cash and Cash Equivalents

As at As at


` `

a) Balances with Banks

(i) In Current accounts 10,57,79,810

3,22,21,237

b) Cash on hand 1,47,574

7,37,655

10,59,27,384

3,29,58,892

c) Others

(i) In Fixed Deposit accounts with maturity less than 12 months 2,47,38,720

2,76,89,535

2,47,38,720

2,76,89,535

Total 13,06,66,104

6,06,48,427

Note 15 - Short-Term Loans and Advances

As at As at


` `

a) Others


1) Loans and Advances to employees 9,11,729

9,91,981

2) Prepaid Expenses 34,991

20,163

3) Other advances 42,77,514

8,28,367

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

Total 60,24,233 18,40,511

Note 16 - Other Current Assets

As at As at


` `

a) Interest accrued 1,07,46,831

55,16,209

b) Income accrued 23,216

6,25,198

c) Hindustan Unilever Ltd 19,45,382

10,63,240

d) Orb Energy Pvt Ltd 81,639

81,639

Total 1,27,97,068

72,86,286

Note 17 - Revenue from Operations

Particulars

For the year ended

31st March, 2016

`

For the year ended

31st March, 2015

`

a) Interest income on Loans 15,11,92,794

11,32,94,663

b) Processing fee on Loans 96,66,949

71,52,516

c) Income from securitisation / assignment of loans 1,32,80,254

-

d) Recovery against loans written off 65,824

24,849

e) Income from Business Correspondents 1,02,78,034

28,665

f) Interest income on fixed deposits (collateral) 71,15,063 40,19,401

Total 19,15,98,918 12,45,20,094

63


Note 18 - Other Income

Particulars

For the year ended

31st March, 2016

`

For the year ended

31st March, 2015

`

a) Interest and Other Income

i) Interest income on Loans & Advances to Related Parties 2,14,176

7,47,737

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

86,195

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

-

b) Dividend Income

i) Dividend income from investments in mutual fund 23,00,293

10,76,861

c) Other Non-Operating Income

i) Facilitation fee 47,02,527

57,17,231

ii) Miscellaneous income 1,76,043

62,951

iii) Profit on sale of fixed assets 46,718

436

iv) Service fee 1,20,276

-

v) Credits written back -

1,42,744

vi) Interest on Income tax refund 67,752

-

Total 97,99,712

78,34,156

Note 19 - Employee Benefits Expenses

Particulars

For the year ended

31st March, 2016

`

For the year ended

31st March, 2015

`

a) Salaries and wages 3,76,30,153

2,89,77,463 b) Contributions to provident fund and other funds 25,95,708

22,00,584

c) Gratuity (Refer Note 22.2) 15,77,665

6,56,131

d) Staff welfare expenses 75,92,993

55,61,144

Total 4,93,96,519

3,73,95,322

Note 20 - Finance Costs

Particulars

For the year ended

31st March, 2016

`

For the year ended

31st March, 2015

`

a) Interest expenses on term loans and vehicle loans 9,26,50,265

6,15,67,868

b) Interest expenses on Debentures 10,25,671

-

c) Financial expenses 9,71,302

6,45,856

d) Securitisation and assignment expenses 28,18,801

-

e) NCD expenses 4,72,757

-

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

Total 9,79,58,479 6,22,13,724

64


ParticularsFor the year ended

31st March, 2016

`

For the year ended

31st March, 2015

`

Advertisement expenses 1,07,272

26,190

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

1,58,916

Bad Debts Written Off 15,11,224

7,09,070

Brokerage 58,750

19,500

Computer consumables 1,47,884

99,436

Directors expenses 1,80,371

2,33,426

Deferred Revenue Expenditure 71,42,697

44,21,606

Electricity and Water charges 3,72,080

3,22,228

Insurance - General 5,10,720

2,21,575

Local conveyance 23,02,319

8,07,457

Membership Subscription Charges 2,67,919

2,21,237

Miscellaneous Expenses 6,718

10,729

Office Maintenance 10,39,592

11,30,549

Postage & Courier 4,30,592

2,34,119

Printing and Stationery 14,30,299

7,54,580

Provision for Standard Assets 10,27,402

8,65,751

Provision for CSR activities 50,000

50,000

Professional Fees 60,94,231

47,08,540

Rates and Taxes 6,94,645

2,25,288

Rent 47,92,355

39,15,571

Software Maintenance Charges 17,72,798 10,85,507

Telephone Charges 7,76,018 5,41,347 Travelling Expenses 10,16,403 6,30,709 Vehicle Maintenance & Insurance 7,78,545

5,39,905 Website Charges 12,854

7,309

Total 3,26,87,023 2,19,40,544

Note (i)

ParticularsFor the year ended

31st March, 2016

`

For the year ended

31st March, 2015

`

Auditor's Remuneration (net of service tax input credit) - Statutory Audit Fee 1,23,335

1,18,916

- Tax Audit Fee 40,000 40,000

Total 1,63,335 1,58,916

Note 21 - Administrative and Other Expenses

65


Notes forming part of the Accounts

Note 22 – Employee Benefits

Disclosures envisaged in Accounting standard (AS) 15 - Employee Benefits as given below:

22.1 Defined Contribution Plans

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

Particulars For the year ended

31st March, 2016 (`)

For the year ended

31st March, 2015 (`)

Employers Contribution to Provident & Pension Fund 1,954,783 1,588,179

22.2 Defined Benefit Plans

The Company has funded defined benefit gratuity plan. Every employees who has completed five years or more of service is eligible for gratuity on separation at 15 days basic salary (Last Drawn salary) for each completed year of service.

Consequent to the adoption of AS 15 'Employee Benefits' specified under section 133 of Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014, the following disclosures have been made as required by standard:

Contribution to Gratuity Fund:

Details of defined benefit plan of gratuity are given below:


31st March, 2016 (`)

For the year ended 31st March, 2015

(`)

i) Changes in the Present Value of Obligation (PVO)

PVO as at the beginning of the period 1,902,334 1,358,918

Interest Cost 135,493 115,928

Current service cost 470,921 421,819

Past service cost - (non vested benefits) - -

Past service cost - (vested benefits) - -

Benefits paid -330,478 -112,715

Actuarial loss/(gain) on obligation (balancing figure) 971,251 118,384


PVO as at the end of the period 3,149,521 1,902,334

ii) Changes in the Fair Value of Plan Assets

Fair value of plan assets as at the beginning of the period - -

Expected return on plan assets - -

Contributions 330,478 112,715

Benefits paid -330,478 -112,715

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

Fair value of plan assets as at the end of the period - -

iii) Amount recognized in the Balance Sheet and Related Analysis

Present value of the obligation 3,149,521 1,902,334

Fair value of plan assets - -

Difference 3,149,521 1,902,334

Unrecognized transitional liability - -

Unrecognized past service cost - non vested benefits - -

Liability recognized in the balance sheet 3,149,521 1,902,334

iv) Expenses recognized in the Profit & Loss Account

Current service cost 470,921 421,819

Interest Cost 135,493 115,928

Expected return on plan assets - -

Net actuarial (gain)/loss recognized in the year 971,251 118,384

Transitional Liability recognized in the year - -

Past service cost - non-vested benefits - -

Past service cost - vested benefits - -

Expenses recognized in the statement of profit and loss 1,577,665 656,131

v) Major categories of Plan Assets (As percentage of Total Plan Assets)

Government of India Securities 0.00% 0.00%

State Government Securities 0.00% 0.00%

High Quality Corporate Bonds 0.00% 0.00%

Equity shares of listed companies 0.00% 0.00%


Equity shares of listed companies 0.00% 0.00%

Property 0.00% 0.00%

Insurer Managed 0.00% 0.00%

Mutual Funds 0.00% 0.00%

Bank Deposits 0.00% 0.00%

Total 0.00% 0.00%

vi) Principal Actuarial Assumptions (Expressed as weighted averages)

Discount Rate 7.50% 7.80%

Salary escalation rate 10.00% 7.00%

Attrition rate 24.00% 24.00%

Expected rate of return on Plan Assets 0.00% 0.00%

vii) Assumptions

Discount rate as per para 78 of AS15R 7.50% 7.80%

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

10.00% 7.00%

Attrition rate fixed by Enterprise 24.00% 24.00%

Age of Retirement 60 60

Funding Mechanism Unfunded Unfunded


Note 23 – Segment Information

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

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

Note 24 – Related Party Disclosures

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

24.1 Names of Related Parties and Nature of Relationship

Description of Relationship As at 31st March, 2016 As at 31st March, 2015

Subsidiary Company Ayusha Dairy Private Limited Ayusha Dairy Private Limited

Key Management Personnel

Mr. N. Venkatesh, Managing Director Mr. D. Shivaprakash, Whole-time Director Mr. R.C.Shekar, Director

Mr. N. Venkatesh, Managing Director Mr. D. Shivaprakash, Whole-time Director Mr. R.C.Shekar, Director

24.2 Transactions with Related Parties

Transaction Related Party For the year ended

31st March, 2016 (`)

For the year ended 31st March, 2015

(`)

Income

Interest on loans and advances to related party

Ayusha Dairy Private Limited

214,176 747,737

Service fee to related party


2,000,000 Nil

Investment in Subsidiary (1,000,000 Equity shares of ` 10/- each)


10,000,000 10,000,000

Loans and Advances to Subsidiary


7,084 971,398

Loans and Advances recovered from Subsidiary


4,226,325 3,039,999

Other Transactions


Balance as at year end

Receivable Ayusha Dairy Private Limited

Nil 4,219,241

Remuneration to Director

Mr. N. Venkatesh, Managing Director

2,711,988 2,345,364

Mr. D. Shivaprakash, Whole-time Director

2,038,515 1,816,320

Mr. R.C. Shekar, Director 1,505,292 1,320,960

Reimbursement of expenses to Director

Mr. N. Venkatesh, Managing Director

107,185 149,974

Sitting fee to Independent Directors

Mr. Badrinarayanan Seshadri, Director

64,154 61,444

Mr. A. Vikraman, Director 30,626 61,444

Mr. A. Ramanathan, Director

53,154 56,180

Remuneration to KMP

Mr. R. Govindarajan, CFO Upto 22/09/2015

754,357 180,105

Mr. S. Parthasarathy, CFO w.e.f. 05/02/2016

480,081 Nil

Ms. Ritu Singh, Company Secretary

130,344 18,232

Remuneration / Sitting fee

Relatives of Directors and Key Management Personnel

Nil Nil

Note 25 - Additional information

25.1 Contingent liabilities and commitments (to the extent not provided for)

Particulars As at

31st March, 2016 (`)


(`)

Contingent liabilities Nil Nil


25.2 Disclosure on foreign currency exposure:

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

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

25.3 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days at the Balance Sheet date. The above information regarding Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

nd25.4 Disclosures of frauds reported during the year vide DNBS PD.CC.No. 256 / 03.10.042 / 2011-12 dated 02 March, 2012


Value Value Value Value

in Lakhs in Lakhs in Lakhs in Lakhs

A) Person involved

Staff - - - - - - - -

Customer - - - - - - - -

Staff and Customer - - - - - - - -

Total - - - - - - - -

B) Type of fraud

Misappropriation and

criminal

breach of trust

Fraudulent encashment /

Manipulation of books of

Accounts

Unauthorized credit

facility

extended

Cheating and forgery - - - - - - - -

Total - - - - - - - -

- -

- - - - - - - -

- - - - - -

- - - - - - - -

Less than ` 1 Lakh ` 1 - 5 Lakhs 5 - 25 Lakhs Total

No. of

Account

s

No. of

Account

s

No. of

Account

s

No. of

Account

s


26. Asset Classification & Provisioning:

The Company follows Prudential Norms of the Reserve Bank of India with regard to classification in respect of all loans extended to its customer.

The Company complies with the Prudential Norms of the Reserve Bank of India with regard to Income recognition, asset classification and provisioning. The Company is following provisioning norms as

n drecommended vide DNBS.CC.PD.No. 250/03.10.01/2011-12 dated 02 December, 2011, thDNBS.PD/CC.No.263/03.10.038/2011-12 dated 20 March, 2012 and DNBS.(PD).CC.No.347/03.10.38/2013-14

stdated 01 July, 2013.

Accordingly the Company in line with guidelines laid down the DNBS(PD)CC.No. 347/30.10.038/2013-14 dated st st01 July, 2013 has provided 1% of the total loan portfolio outstanding as at 31 March, 2016.

Asset Classification Loan Portfolio as

on 31.03.2016 (`)

Loan Portfolio as on 31.03.2015

(`)

Less than 90 days 678,297,011 575,792,986

91 - 180 days 391,923 228,331

More than 180 days 1,973,575 1,900,953

Total loan assets / loan portfolio 680,662,509 577,922,270

Classification of loan portfolio:

Provisioning Norms for Loans:

Asset Classification RBI Norms As on 31.03.2016

(`) As on 31.03.2015

(`)

Total loan assets / loan portfolio - A

1% of the outstanding

loan portfolio

6,806,625 5,779,223

Non-performing assets (91-180 days)

50% 195,962 114,166

Non-performing assets (> 180 days)

100% 1,973,575 1,900,953

TOTAL NPA - B 2,169,537 2,015,119

Provision required - the higher of A) or B)

6,806,625 5,779,223

Less: Provision for Standard Assets already made

5,779,223 4,913,472

Provision made for the year ended 1,027,402 865,751


27. Earnings per Share


31st March, 2016 For the year ended

31st March, 2015

Profit after Tax () 14,665,322 5,945,718

Weighted Average Number of Equity Shares

- Basic 10,470,000 7,191,233

- Diluted 10,470,000 7,191,233

Earnings Per Share

- Basic 1.40 0.83

- Diluted 1.40 0.83

Face Value of Shares () 10 10

28. Recognition of MAT Credit

No MAT credit is availed and utilized during the year (previous year 1,016,851/-). No MAT credit is recognized

during the year (previous year Nil).

nd29. Disclosure Pursuant to Reserve Bank of India Notification DNBS.193DG (VL) 2007 dated 22 February, 2007:

Sl No. Particulars


Amount Outstanding

Amount Overdue

Liabilities (`) `

(1) Loan and Advances availed by the NBFC inclusive of Interest accrued thereon but not paid:

a Debentures - -

- 4 Secured - -

- 5 Secured - -

(Other than falling the meaning of Public Deposits) - -

b Deferred Credits - -

c Term Loan 673,093,386 -

d Inter-corporate Loans & Borrowings - -

e Commercial Paper - -

f Other Loans – Vehicle Loan 2,226,178 -

- Non-Convertible Debentures 95,833,400


Sl No. Particulars

Amount Outstanding (`)

31st March, 2016

(2) Break-up of Loans & Advances including Bills Receivables [ Other than those included in (3) below]

(a) Secured -

(b) Unsecured 680,662,509

(3) Breakup of Leased and Stock on Hire and other Assets counting towards AFC activities

-

(i) Lease assets including Lease rentals accrued and due:

-

(a) Finance Lease -

(b) Operating Lease -

(ii) Stock on Hire including Hire Charges under sundry debtors:

-

(a) Assets on Hire -

(b) Repossessed Assets -

(iii) Other Loans contributing towards AFC Activities -

(a) Loans where assets have been repossessed -

(b) Loans other than (a) above -


Sl No. Particulars

Amount Outstanding (`)

31st March, 2016

(4) Break-up of Investments Current Investments -

I Quoted: -

(i) Shares: (a) Equity -

(b) Preference -

(ii) Debentures and Bonds -

(iii) Units of Mutual Funds -

(iv) Government Securities -

(v) Others -

II Unquoted: -


(b) Preference -




(v) Others -

Long term Investments -

I Quoted: -


(b) Preference -




(v) Others -

II Unquoted: -

(i) Shares: (a) Equity 10,500,000

(b) Preference -




(v) Others - (5) Borrower Group wise classification of Assets Financed as in (2) and (3) above

Sl No. Particulars


Amount in (`) (Net of Provisions)

Secured Unsecured Total

1 (a) Related Parties Subsidiaries - - -

(b) Companies in the same group - - -

(c) Other Related Parties - - -

2 Other than related parties - 680,662,509 680,662,509

Total - 680,662,509 680,662,509


(6) Investor Group-wise classification of all investments (Current and Long Term) in Share and Securities (both Quoted and Unquoted):

Sl No. Category

Market Value / Breakup

value or Fair Value or Net Assets Value

Book Value (`)

1 (a) Related Parties Subsidiaries - 10,000,000

(b) Companies in the same group - -

(c) Other Related Parties - -

2 Other than related parties - 500,000

Total - 10,500,000

(7) Other Information Related Parties

(`)

Other than Related

Parties (`)

(i) Gross Non - Performing Assets - 1,973,575

(ii) Net Non - Performing Assets - -

(iii) Assets acquired in Satisfaction of Debt - -

30. The cap on margins (as defined by Malegam Committee) and in compliance with RBI circular RBI/2012-rd st13/161 DNBS (PD) CC.No.300 /03.10.038/2012-13 03 August, 2012 is 9.79% as at 31 March, 2016 (11.61% as

stat 31 March, 2015).

31. Capital to risk Assets ratio (CRAR) (computed as per the method prescribed by RBI)

Particulars As on 31.03.2016 As on 31.03.2015

CRAR (%) 17.76% 19.22%

CRAR - Tier I Capital (%) 15.48% 16.60%

CRAR - Tier II Capital (%) 2.28% 2.62%

All Fixed Deposits with Banks under lien against term loans availed by the Company. However, considering the converge of secured loans, by assets like book debts etc., the risk weighted with respect to fixed deposits with Banks has been considered as Zero.

32. The Company has no exposure to the real estate sector directly or indirectly in the current and previous year

33. The Company has not disbursed any loan against security of gold.

34. Details of average interest paid on borrowings and charged on loans given to JLGs


Particulars

2015-16 2014-15

Rate of Interest in % for Microfinance loan

Rate of Interest in % for Microfinance loan

Average Rate of Interest on Borrowings

16.09% 14.89%

Average Rate of Interest on Loans given

25.88% 26.50%

Net Interest Margin 9.79% 11.61%

35. Securitization / Assignment of Loans

During the year, the Company has sold loans through direct Securitization / assignments. The information on direct assignment activity of the Company as an Originator / Assignor is as shown below:

Particulars

Year ended March 31, 2016

(`)

Year ended March 31, 2015

(`)

Total number of loans securitized / assigned 14,364 -

Total book value of loans securitized / assigned 253,509,823 -

Sale consideration received for loans securitized / assigned 259,348,785 -

Income recognized in the statement of profit and loss 13,280,254 -

Balance of loans assigned / securitized as at the balance sheet date 218,941,848 -

Cash collateral provided and outstanding as at the balance sheet date 4,060,415 -

Disclosure to be made under Securitization guidelines issued by Reserve Bank of India vide policy no. DNBS. PD. No. 301/3.10.01/2012-13 dated August 21, 2012.

36. Previous year FiguresPrevious year's figures have been reclassified to conform with the current year's classification /presentabon, wherever applicable.


As per our attached report of even dateFor Gowthama & CompanyChartered AccountantsFirm No. 006917S

For and on behalf of the Board of Directors

H.V.Gowthama Partner M.No. 014353

Place: BangaloreDate: 26.04.2016

N. VenkateshManaging Director

D. ShivaprakashWhole-time Director

S. ParthasarathyChief Financial Officer

Ritu SinghCompany Secretary


NOTICE TO MEMBERS

st NOTICE is hereby given that the 21 Annual General Meeting of the Members of the Company will be

th th held at Registered office of the Company at No. 418, 1/2A, 4 Cross, 6 Main, Wilson Garden,

thBangalore 560027 on Monday the 20 Day of June, 2016 at 11.00 A.M, to transact the following business:

ORDINARY BUSINESS

1. To receive, consider and adopt the audited financial statements of the Company for the financial year ended March 31, 2016 the Audited Balance Sheet as at 31st March 2016, the Audited Profit and Loss Account, Audited Cash Flow Statement for the year ended on that date together with the reports of the Directors' and Auditor's thereon and the consolidated audited financial statements of the Company for the financial year ended March 31, 2016.

2. To declare 9% Dividend on Optionally Convertible Preference Shares amounting to Rs. 9,00,000 st

for the financial year ended 31 March 2016.

3. To appoint a director in place of Mr. R C Shekar (holding DIN02216837) who retires by rotation and being eligible, offers himself for re-appointment

4. To appoint Auditors and fix their remuneration and in this regard to consider and if thought fit, to pass, with or without modifications(s), the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of section 139 and other applicable provisions, if any, of the Companies Act, 2013 and the Rules framed thereunder, as amended from time to time, the appointment of M/s Gowthama & Company, Chartered Accountants (Firm Registration No- 005917S), as the Statutory Auditors of the Company for a term of three years i.e. from the

th rdconclusion of the 20 Annual General Meeting till the conclusion of the 23 Annual General Meeting to be held in the year 2019, which was subject to ratification by the shareholders at every Annual General Meeting, be and is hereby ratified to hold the office from the conclusion of

st ndthe 21 Annual General Meeting till the conclusion of 22 Annual General Meeting of the Company, and that the Board of Directors be and are hereby authorized to fix such remuneration as may be determined by the Board.”

Place: Bangaloreth

Date: 27 May 2016

BY ORDER OF THE BOARD

Ritu SinghCompany Secretary

Membership no: 24934


NOTES:

1. A member entitled to attend and vote is entitled to appoint a proxy to attend and vote on a poll instead of himself and the proxy need not be a member of the Company. The instrument appointing the proxy should, however, be deposited at the registered office of the Company not less than forty-eight hours before the commencement of the Meeting. A person can act as proxy on behalf of members not exceeding fifty (50) and holding in the aggregate not more than 10% of the total share capital of the Company. Provided that a member holding more than 10% of the total share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not act as proxy for any other person or shareholder. A blank proxy form is enclosed to this notice.

2. Corporate members intending to send their authorized representatives to attend the annual general meeting are requested to send to the Company a certified copy of the board resolution authorizing their representative to attend and vote on their behalf at the annual general meeting.

3. A statement pursuant to Section 102(1) of the Companies Act, 2013, relating to the Special Businesses to be transacted at the annual general meeting is annexed hereto.

4. In case of joint holders attending the annual general meeting, only such joint holder who is higher in the order of names will be entitled to vote.

5. Members who have not registered their e-mail addresses so far are requested to register their e-mail address for receiving all communication including annual report, notices, circulars, etc. from the Company electronically.

6. Quorum of the annual general meeting shall be in accordance with Section 103 of the Companies Act, 2013.

7. The Member/Proxies should bring their proxy form and attendance slip, sent herewith, duly filled in, for attending the meeting as mentioned in ANNEXURE A and ANNEXURE B of this notice.

8. In terms of the requirements of the Secretarial Standards -2 on “General Meetings” issued by the Institute of the Company Secretaries of India and approved & notified by the Central Government, Route Map for the location of the aforesaid meeting is enclosed as

Annexure C


ANNEXURE A

FORM No. MGT – 11Proxy Form

(Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014)

CIN: U65191KA1995PLC057884Name of the Company: Samasta Microfinance Limited

th thRegistered Office: No. 418, 1/2A, 4 Cross, 6 Main, Wilson Garden, Bangalore - 560027 Website: www.samasta.co.in

Name of the Member (s) : Registered address :E-mail id :Folio No. / Client Id :DP ID :

I / We, being the member(s) _________ of Samasta Microfinance Limited, hereby appoint:

1.Name : ______________: _______________________________

Address: __________________________________________________

E-mail Id: ________________________________________________

Signature: ______________________________________, or failing him / her

2.Name : ______________: _______________________________

Address: __________________________________________________

E-mail Id: _________________________________________________

Signature: ______________________________________, or failing him/herstas my / our proxy to attend and vote (on a poll) for me / us and on my / our behalf at the 21 Annual

th thGeneral Meeting of the Company, to be held at No. 418, 1/2A, 4 Cross, 6 Main, Wilson Garden,

thBangalore – 560027 at Monday the 27 Day of June, 2016 at ….. and at any adjournment thereof.

Signed this … day of …. 2016.

Signature of Shareholder

Affix Revenue Stamp here


Signature of Proxy Holder (s)

Note: This form of proxy in order to be effective should be duly completed and deposited at the registered office of the Company, not less than 48 hours before the commencement of the Meeting.

ANNEXURE B

ATTENDANCE SLIP

(Please complete this attendance slip and hand it over at the entrance of the Hall)

stI hereby record my presence at the 21 Annual general meeting of the Company, Samasta th th th

Microfinance Limited on Monday the 27 Day of June, 2016 at……… at No. 418, 1/2A, 4 Cross, 6 Main, Wilson Garden, Bangalore - 560027 .

Regd. Folio No………Full Name of the Shareholder in Block Letters………No. of Share held ……….Name of the representative or proxy (if any) in Block Letters ………..-

________________________________________Signature of the Shareholder/Proxy/Representative*

Note:

· Please fill this attendance slip and hand it over at the registration counter.· Shareholder/Proxy Holder/Auth. Representatives are requested to show their Photo ID

proof for attending the meeting.· Photocopied/torn attendance slip will not be accepted.· This attendance slip is valid only in case shares are held as on the date of the extraordinary

general meeting.

www.samasta.co.in

Samasta Microfinance LimitedNo. 418-1/2a, 4th Cross, 6th Main, Wilson Garden, Bangalore - 560027

Phone: +91 80 4291 3500 | E-mail: [email protected]

annual report - samasta microfinance€¦ · data from the member microfinance institutions. they...

Documents