• REPCO MSME DEVELOPMENT AND FINANCE LIMITEDNO:33, NORTH USMAN ROAD, T NAGAR, CHENNAI 600017

BALANCE SHEET AS AT 31ST MARCH 2013(m ({s.)

Note Figures as at the end ofParticulars

No Figures as at the end of previous reportingcurrent reporting year year

March 31, 2013 March 31, 2012

I. EQUITY AND LIABILITIES(1) Shareholder's funds(a) Share Capital 2 180,000,000 180,000,000(b) Reserves and Surplus 3 28,259,590 11,470,123

(2) Non current liabilities(a) Long Term Borrowings 4 505,792,612 568,994,273(b) Deferred Tax Liabilities (Net) 10 - -( c ) Long term Provisions 5 4,917,022 16,904,287

(3) Current Liabilities(a) Short Term Borrowings 6 328,168,308 81,308,814(b) Olher Current Liabilities 7 56,668,303 118,255,950(c) Short Term Provisions 8 20,418,840 5,400,000

TOTAL 1,124,224,675 982,333,447II. ASSETS

(1) Non Current Assets(a) Fixed Assets 9

(i) Tangible Assets 4,113,768 3,051,780(il) Intangible Assets 61,613 165,242

(b) Deferred tax assets (net) 10 1,462,202 5,400,000(c) Long term loans and advances 11 380,716,942 382,940,027

(2) Current Assets(a) Cash and Bank Balances 12 10,121,525 942,323(b) Short-Term Loans and Advances 13 727,192,180 589,683,214

(3) Other Current Assets(nterest Accrued on f\.1icrofinance loans 556,445 150,860

TOTAL 1,124,224,675 982,333,446

Significant Accounting Policies 1Notes Forming Part of Accounts 19

For R. Subramanian & CompanyChartered Accountants

)(L11~.E~V:~N.KI{ISHh~MURTHY R.Varadarajan

Partner Executive Director Managing Director '/)Membership No. 19339/;\i.~A~~Firm Reg.No.004137S /~ o~

Place: Chenna; '~ ,..;j "'"Date: 09.05.2013 '0 ~

,.'" "'\'I '"\ ,"',!. "'OOOO~:'1\C'7 6 •..." ~~ ","""t'rid';:~~o()~

•REPCO MSME DEVELOPMENT AND FINANCE LIMITEDNO:33 NORTH USMAN ROAD, T NAGAR, CHENNAI 600017

Statement of Profit and Loss For The Year ended 31st March, 20131m I{S.'

NoteFigures as at the Figures as at the

Particulars end of current end of previousNoreporting year reporting yearMarch 31, 2013 March 31, 2012

III INCOME:Revenue From Operations 14 152,257,555 137,033,596Other Income 15 3,417,646 1,078,371Total Revenue 155,675,201 138,111,967

IV EXPENDITUREEmployee Benefit Expenses 16 12,433,101 7,711,422Interest and Other Financial Charges 17 72,327,337 75,249,449Depreciation 9 1,666,668 1,038,211Other Expenses 18 17,255,045 16,161,910Provision for Non-Performing Assets 7,999,649 33,876,486Provision for Standard Assets 2,736,585 -Total expenses 114,418,386 134,037,479

V Profit Before Taxation (III-IV) 41,256,816 4,074,488VI. rax Expense:

(1) Current Tax 10,000.000 5,400,000(2) Tax expense of earlier years - 452,653(3) Deferred Tax 3,937,798 (5,494,236)

VII Net Profit/(Loss) for the period 27,319,018 3,716,071

VIII Earning Per Equity Share:Weighted Average no. of SharesOutstanding During the Period 18,000,000.00 12,443,835.00Basic and Diluted Earnings Per share(Rs.) 1.52 0.30

Nominal value per Equity Share Rs. 10 10Significant Accounting Policies 1Notes Forming Part of Accounts 19

For R. Subramanian And CompanyChartered Accountants

N.K~"&!w""" e!D~ Rt,--T.E. Thiruvengadam R.Varadilrajan

Partner Executive Director Managing Director 2{JMembership No. 19339Firm Reg.No.004137S~Place: Chennai $'1' 'I,;.Date: 09.05.2013 ,:}j . •• ,~

:'~ C~c 04'j)'"" 6000 ~. "~ ~~'""."d1:tt~"

- -- ._--- -~--------------------------------------

~. REPLU , ,LTDNO:JJ, I KUAU,'.

Particulars Note As at March 31 2013 As at March 31 2012Nn Number Amount(Rs) Nwnber Amount(Rs)

Shareholder's fund~ote2:A: SHARE CAPITAL 2AutllOrised CapitalEquity shares of RS.I0/. each JO,[)(JO,OOO JOO,OOO,OOO 30,000,000 300,000,DOOIsst/ed, Subscribed (" Paid up CapitalEquity shares of Rs.lO/- each fully paid up. 18,000,000 l80,DOO,000 18,000,000 180,000,000As per Balance Sheet 18,ODO,000 180,DOO,OOO 18,ODO,000 I BO,ODO,OOO

Disclosure pursuant fo Note no. 6(AHd) of Part I of Schedule VIto the Companies Act, 1956'hares outstanding 011 the beginning of the year 18,DOO,DOO IBO,OOO,OOO 12,000,000 120,000,000h8res issued during the year at face value RS.I0/- . . 6,000,000 6O,OOO,DOOhares bought back during the year. - . - .hares outstanding at the end of the year 18,000,000 180,000,000 18,000,000 I BO,OOO,OOO

Disclosure pursuant to Note no. 6(AHf) of Part I of Schedule VIto the Companies Act, 1956

Out of the above, shares held by 10,000,000 100,000,000 10,000,000 100,000,000Repco Bank Limited (Promoter)Disclosure pursuant to Note no. 6(A)(g) of Part I of Schedule VIto the Companies Act, 1956

No. of shares NO.of sharesName of Shareholder held % of holding held 10of holding

Shareholder holding more than 5 % of share capitalr~er('OBank Limited 10,000,000 56% lO,ODO,OOO 56%l~l'[lCOHome Finance Limited 8,OOO,ODO 44% 8,000,000 44%

18,000,000 100% IB,OOO,ODO 100'}'.,

Disclosure pursuant to Note no. 6(A)(i) of Part I of Schedule VIto the Companies Act. 1956Out of the above 74,99,940 Equity shares are allotted to RepcoBank on 31/03/2010 for consideration other than cash.

Note 3: 3RESERVES AND SURPLUS.1 STATUTORY RESERVEIUNDER SECTION 45IC OF RBI AC InOpening Balance 2,500,000 -(+) Current Year Transfer 5,500,000 2,51l0,000(-) Written Back in Current Year - -Closing Balance 8,000,000 2,500,000

bl General ReserveOpening Balance . -(+)Current Year Transfer 10,000,000 -(-) Written Back in Current Year . -lCiosing Balance 10,OOO,DOO .

c. Surplus In Statement of Profit and lossppening balance 8,970,122 7,754,051(+)Net Profit! (Loss) for the year 27,319,018 3,716,071(-)Appropriations .(-) Transfer to Statutory Resl'rvc 5,500,DOO 2,500,O[)()(-) Transfer 10 Gl'nera! Reserve i 10,000,000 -(-) Transfer to Proposed divided 5% (NIL) 9,000,000 -(-) Transfer to Dividend Distrihution tax 1,529,550 .

Closing balance 10,259,590 8,970,122

As per Balance sheet

As per 8alance Sheet

As per Balance sheet

ruta I of Reserves and Surplus (a+b+c) 2R,259,59CJ 11,470,122

505.792.612 568.994.273

5U5.792,612 568.9'14.273

2.180,437 16,'I()4.2R72,736,585

4.917,022 16.904.287

328,168,308 81,308.814

328.168,308 81.308,814

47.050.176 117.786,3669,618.127 469.584

56.668.303 118.255,950

9,BH9,290 50400.0009,OllO,lIlI01.529.550

20,418,840 SAW,lXXI

1.595.328 5,484,595

133,126 84,595

1,462.202 5.4lI0.IXIO

10462.202 MllO,OOO

370,123,797 375.105.507181.000 220.965250.000 107.000

" nrlO.OIXl 7,500.000

~lAtl ANq ""~ ~!:!i or

~ CHENH'" ~,a:: 60000~, ** ..~ ~~~,. ~,

""d"1ii:t""I----

7

5

6

R

10

II

IA)

As per Balance Sheet

Nole 10:DEfERRED TAXDl'fl'rrl-d Tax ASSl,ts:I'rovision for Non Performing assetsGross Deferred Tax Asset

Dt'i,'rrl'd TOlxLiabilities:

Di(ferl'ncl' Betwl'Cn 'Nrilten Dlw,1Il Value of Fix(,d A!'.<;etsOlspl'rom panics acl Olnd as per Income tax Act.,

Gross Deferred Tax Liability (8)Net DeCerred lax Assel/(Liabilily)

Noll' 8:SHORT TERM PROVISIONSProvisiom":-[llcomcTaxI'l'Opost'd Dividl'ndDividl'nd Distribution Tax

ote7:TilER CURRENT LIABILITIES

Current Maturities o( Long Term BorrowingsOther Li.lbilities"

As per Balance Sheet

.Short Term Borrowings from Repco Hank is Secured byIlypolhecation of Micro finance Receivables

As per Balance sheetNote 6:SIIOHT TERM BORHOIVlNGS:SecuredODL ICash Credit from Repro Bank Lid.,.

Note 5:LONG TERM PROVISIONS:Provision Towards Non Performing advanCL'SclI1tingent Provision for Standard advances

Unsl'Curl'd Borrowings([£Orm Loans (rom Repco Bank)

"There arc no Micro and Small Enterprises to whom the company)\\,('s dUl's, which arl' outstanding for more than 45 days as of31st March 2013. 11,is information as rte'quired to ht.>disclosedunder Micro Small and Medium Enterprises Development Act,2006 has b('Cn determined to the extent such p.1rties have bt..-enidl'ntifil-d on the basis of information available with the Company

Note 4:Non-Current liabilitiesLONG TERM BORROWINGS

Note 11LONG TERM LOANS & ADVANCES(Un Secured & Considered Good exceptingIJrovision made for Non.Performing AdvanCl.'S)Micro Finanl"e Loans to Self Help groups,'pilal Advances. 'urit)' Depositsther loans & advances

Advance Tax

Income Tax Refund Due 2,162,145 6,555

In the opinion of the Management, the current assets, Loans andAdvances as stated in the Balance Sheet are realizable in thenormal course of business

As per Balance Sheet 380,716,942 382,940,027

Note 12:CASH AND BANK BALANCES: 12Cash and Cash Equivalents....ash on Hand 31 31Balance with Bank in Current ale 59,171 69,957

alanee with Repco Bank in Savings a/c 10,062.323 872,335As Per Balance Sheet 10,121,525 942,323

Note 13SHORT TERM LOANS & ADVANCES 13(Un Secured, considered good excepting provision towards Nonperforming advances)lCurrent Maturities of Mkro finance Loan 727,074,966 589,607,239Prepaid expenses 33,739 -Advances recoverable in Cash or in Kind BJ,475 75,975

In the opinion of the Management, the l.."Urrcntassets, LQans andAdvancC's as stated in the Balance Sheet are realizable in thenormal course of business

As per Balance sheet 727,192,180 589,6BJ,214

REPCO MSME DEVELOPMENT & FINANCE LTDNO:33, NORTH USMAN ROAD, T.NAGAR, CHENNAI 600 017

Particulars

Note 14

Revenue from 0 erations

Interest from Micro Finance Loan

Note 15

Other income:

Recovery of bad debts written offInterest on Deposits

sundry credit balances written back

Ex enses

For the periodFor the period endedNoll' ended March 31,

No 2013 March 31, 2012

Amounl(Rs) Amount(Rs)

14

152,257,555 137,033,596

152,257,555 137,033,596

15

2,239,5521,178,094 1,032,690

45,6813,417,646 1,078,371

Note NO.16EMPLOYEE BENEFIT EXPENSES~alaries & allowances*Staff Welfare

Tolal

Note NO.17

Illterest alld atlter Fillallce ellar es:Interest on Term Loans

Interest on SODL/ Cash Credit'Bank ChargesTolal

16

17

11,975,080458,021

12,433,101.41

66,923,3745,399,679

4,28472,327,337.16

7,530,799180,623

7,711,422

70,397,1764,850,029

2,244

75,249,449

Note NO.18

Olher expenses:Printing and 5tntioneryOffice Expenses, Postage & Telegraphfravelling and ConveyanceRent

Repairs and Maintemmce - othersTelephone ChargesElectricity Charges

Remuneration to auditors towards

Statutory auditTax audit FeesCertification charges

Retainer FeesMonitoring Cost To RFMCLeased Line ChargesOther expenses

otal

18

99,778 390,084468,730 98,83165,275 53,675834,984 441,338354,788 559,171345,676 133,183150,977 56,086

140,450 250,75078,652 27,57522,472 15,993150,000 153,250

14,274,708 13,821,986178,441 159,98890,114

17,255,044.93

•REPCO MSME DEVELOPMENT & FINANCE LTD

NO:33, NORTH USMAN ROAD, T.NAGAR, CHENNAI 600 017

Block Rate OpeningWDV AdditionsDeletions Depreciation Closing WDV< 180 Davs > 180 davs

Plant & Machinery 15% 11,560 39,000 - - 4,659 45,901

Fumitures 10% 1,883,581 190,254 277,022 - 225,573 2,125,284

Electrical Fittings andoffice equipment 15% 4,640 - 5,200 - 1,476 8,364

Temporary Structure 100% - 201191 139,157 239,753

Computers & Softwares 60% 1,046,402 1,525,594 247,609 - 1,234,085 1,585,520

Total 2,946,182 1,956,039 668,988 1,705,545 3,765,069

REPCO MSME DEVELOPMENT & FINANCE LTDNO:33, NORTH USMAN ROAD, T.NAGAR, CHENNAI 600017

Fixed Assets additions during the year 2012-13FURNITURE:Date of voucher Description Amount 180 days >180 days21/04/2012 Wooden table for manager of size 6O'ItJO'*30' 14,118 14,11821/04/2012 Cash counter 10,076 10,07621/04/2012 Offkcrs table 10,683 10,68321/04/2012 Side unit of manager table of size 36'.16'''29' 6s.o13 68,01321/04/2012 l,..ushion chair for manager 4,007 4,00721/04/2012 '-ushion chair for officers 8,931 8,93121/04/2012 Visitor chair 5,954 5,95425/04/2012 Wooden table for manager of size 60'*30'*30' 12,330 12,33025/04/2012 rash counter 17,600 17,60025/04/2012 Offkcrs table 9,330 9,33025/04/2012 Side unit of manager table of size 36'>1-16'*29' 65,280 65,28025/04/2012 rush ion chair for manager 3,500 3,50025/04/2012 Lushion chair for officers 7,800 7,80025/04/2012 Visilor chair 5,200 5,20015/06/2012 5torcwcl ]4,000 14,00020/06/2012 Name board (lOx4) 9,020 9,02020/06/2012 Name board (4x3) 1,780 1,78028/08/2012 Name board 9,400 9,4008/2/2013 Furniture work (full) 144,720 144,720

13102/2013 Stoccwel 6,275 6,27522/02/2013 ~amcboard 9,255 9,25522/02/2013 ~amcboard 7,986 7,98626/02/2013 \1amc bn<1fd 11,278 11,27826/02/2013 ~amc bllard 10,740 10,740

467,276 190,254 277,022

Furniture and fil ngs Temporary structuresDale of voucher Description Amount k180 days 180 days21/04/2012 Furniture partitiun work and data cabling work iltGudul<lr 64,675 64,67521/04/2012 Furniture partitiun work and data cabling work at Dindigul 79,749 79,74925/04/2012 Furniturl'p.utitinn work and data cabling work iltTiruporur 56,767 56,76708.02.2013 Furniture partition work and data cabling work at Padi 139,157 139,157

340,348 201,191 139,157

ELECTRICAL E< UIPMENTS:Date of voucher Description Amount k180 days 180 days31/08/2012 pt..'destal fan 2,100 2,10031/08/2012 Wall mounting fan 1,800 1,800

3,900 - 3,900

ELECTRONIC E UIPMENTS:Dale of voucher Description Amount k180 days 180 days22/01/2013 CASI-ITRON loose note counting machine 7,800 7,80022/01/2013 rASIiTRON loose note counting machine 7,800 7,80022/01/2013 CASHTRON loose note counting milch inc 7,800 7,80022/01/2013 CASI-ITRON loose note umnting machine 7,800 7,80022/01/2013 CASIITRON loose note counting m<1chine 7,800 7,800

39,000 39,000 -OFFICE EQUIP~ ENTS:

Date of voucher Description Amount <180 days ~180 days26/06/2012 Micromax mobile (Mr. suresh) 1,300 1,300

1,300 - 1,300

COMPUTER:Date of voucher Description Amount <180 days ~180 days

14/05/2012 Wipro computer 70A06 70A0614/05/2012 EPSON dot matrix printer 9,523 9,52331/07/2012 l1 KVA UPS 82,550 82,55011/8/2012 Cisco router model 1941 85,130 85,13030/11/2012 Lcnovo think (."1..'ntrecomputer 75,000 75,00030/11/2012 L<..'no\'o think centre computer 75,000 75,00030/11/2012 Lenovo think centre computer 75,000 75,0008/12/2012 3 KVA UPS 100,580 100,5808/1/2013 WiNO ex 330 printer 8,778 8,77829/01/2013 I.cnovo think centre computer 75,000 75,00029/01/2013 lenovo think centre computer 75,000 75,00030/01/2013 13KVA UPS 100,580 100,58030/01/2013 lKVAUI'S 100,580 100,58030/01/2013 Koda k scanner 27,500 27,50030/01/2013 Kodak scanner 27,500 27,50030/01/2013 Kodak scanner 27,500 27,50030/01/2013 Kodak scanner 27,500 27,50013/02/2013 Cisco router model 1941 80,609 80,60913/0212013 Cisco router model 1941 80,609 80,60913/0212013 3 KVAUl'S 100,580 100,58025/03/2013 Lenovo think centre computer 74,500 74,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scannt..'r 27,500 27,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Koc.iak scanner 27,500 27,50028/03/2013 Kodak scanner 27,500 27,s0028/03/2013 Kodak scanner 27,500 27,50028/03/2013 Kodak scann(.'r 27,500 27,50030/03/2013 Wipro ex 330 Printer 8,778 8,778

1,773,203 1,525,594 247,609

NolcNo.8=1Iii REPCO MSME DEVELOPMENT & FINANCE LTD

NO:33, NORTH USMAN ROAD, T.NAGAR, CHENNAI 600 017

GROSS BLOCK DEPRECIATION BLOCK NET BLOCK

PARTICULARS As on 1st Deletlo As on 31st Rate As on 1st Deletio As on 31st As on 31st As on 31stAdditions For the yearApril 2012 ns March 2013 April 2012 ns March 2013 March 2013 March 2012

TANGIBLE ASSETS:

Furniture and fittings 1,563,489 467,276 - 2,030,765 10.00% 288,147 197,159 - 485,306 1,545,458 1,275,341Furniture and fittings-Temporary Structures - 340,348 - 340,348 100.00% - 340,348 - 340,348 - -pffice equipments 14,749 1,300 - 16,049 111.00% 14,749 1,300 - 16,049 - -Electrical equipment ... 6,376 42,900 - 49,276 10.00% 6,376 6,360 - 12,736 36,540 -!computer 2.662,974 1,773,203 - 4,436,177 33.33% 886,535 1,017,872 - 1,904,407 2,531,770 1,776,439

rotal 4.247,588 2,625,027 - 6,872,615 L195,807 1,563,039 - 2,758,846 4,113,768 3,051,78iJ

NTANGIRI.E ASSETS:

[software 310,888 - 310,888 33.33% 145,646 103,629 249,275 61,613 165,242[0101 310,888 - - 310,888 145,646 103,629 - 249,275 61,613 165,242

Tolal 4,558,476 2,625,027 7,183,503 1,341,453 1,666,668 3,008,121 4,175,381 3,217,022

• REPCO MSME DEVELOPMENT & FINANCE LTDNO:33, NORTH USMAN ROAD,

T.NAGAR, CHENNAI 600 017

COMPUT AnON OF DEFERRED TAX Amount (Rs)PROVISION FOR NPA (Net off Technical", ite off) 2,180,437PROVISION FOR STANDARD ASSETS 2,736,585Deferred tax Asset 1,595,328

WDV of Assets as per Books 4,175,381WDv of Assets as per income tax act 3,765,069Difference 410,312DTL 133,126

NetDTA 1,462,202DTA Rounded off 1,462,202

DTA already outstanding , 5,400,000DTA to be created/ (Reversed) (3,937,798)

Particulars RateBasic 30Surcharge 1.5Basic +Surcharge 31.5Cess 0.945Tax rate 32.445

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

REPCO MSME OEVELOPMENT & FINANCE LTD

NO:33, NOlnU USMAN RO/\D, T,NAGAR. CHENNAI 600 017

AX WORKING

l

ParticularsProfit as PI.'f Profit & Loss AleAllJi:Dcprt..'cialion Considered Sep.uatelyProvision for Standard AssetsProvision for Non Performing AsS('ls

Depn.'l"j,llion As per Income Tax ActPmdcnl WIn of Bi"ld debts

Profits ,md Gclins From Busint.'ssLess: Corril'd forward lossGross Total Incomeax P.1Y'lbleurcharge (5%)

Educational Cess (2%)"condary Higher Educational Cess (10/..)folal TilX PayableAdvann> Tell( PaidIhl<lI1t.'c Tax PilyablpInll'fl'5! UJs 2J4H[nlen'st Ujs 234CNet Tax Pa able

SummaryTot.l1 tax LiabilityOnduding Interest)Provision for laxation rounded off

AdVfllll"t.' Tax P.lidNet T.1XPayable

IInterest under Sec.234C

Amount (Rs)

1,666,6682,736,5857,999,649

1,705,54522,723,499

Amount (Rs)

41,256,816

12,402,90253,659,718

24,429,04429,230,673

29,230,6738,769,202

438,460184,15392,077

9,483,8928,000,0001,483,892

29,678218,937

1,732,506

Amount(Rs)9,732,500 Provision for Taxation

10,000,000

8,nOD,()()()2,nOD,000

Due Date PercentageTax Liability Amount

(Rs.) oaid(Rs) Cumulative Shortfall Interest15th June 2U12 15% \,422,584 - - 1,422,584 42,67815th September 2012 45% 4,267,751 3,000,OOU 3,000,000 1,267,7,1 38,03315th LJcccm cr 2012 75% 7,112,919 - 3,000,000 4,112,919 123,38815th March 2013 100% 9,483,892 5,000,000 8,000,000 1,483,892 14,839TOTAL INTEREST UtS 234 C 9,483,892 8,000,000 8,000,000 1,483,892 218,937

IInterest under Sec.234B

Particulars \mounl (Rs.Ualnnc(' Paynble 1,483,892

Interest u/s.234B 29,678Total Interest uJs. 234 B 29,678.. 3

., REPCO MSME DEVELOPMENT & FINANCE LTDNO:33, NORTH USMAN ROAD, T.NAGAR, CHENNAI 600 017

Current and Non-current of SHG loans-MF

Particulars Amount (Rs) Amount (Rs)Technically written off MFTechnically written off MF 0.00 41888819.00MICROFINANCEMICRO FINANCE 1136788062.50 0.00Youth SHG1YOUTHSHG1 531321.00 0.00YouthSHG2YOUTHSHG2 1768198.00 0.00

1139087581.50 41888819.00

Balance for other than technical write off accounts 1097198762.50

Breakup Amount (Rs)Current 727074965.50Non-current 370123797.00

Total MF loan after technical write off 1097198762.50

•REPCO MSME DEVELOPMENT & FINANCE LTD

NO:33, NORTH USMAN ROAD, T.NAGAR, CHENNAI 600 017

Provision for Standard Assets Amount (Rs)

Total advances portfolio 1139089542.50Less:NPA 44455612

Standard Assets

PercentageProvision for Standard Assets

1094633930.50

0.25%2,736,584.83

REPCO MSME DEVELOPMENT AND FINANCE LIMITED

LIST OF RELATED PARTIES

KEY MANAGEMENTPERSONNEL:

PROMOTERS:

Shri R. VaradarajanShri T. E. 1l1iruvengadam

Repco Bank Limited

Repco Home Finance Ltd

Managing DirectorExecutive Director

(Amount in Lacs)

Kev manaeement Personnel Promoters

Nature of Transactions Managing Director Executive Direclor Repco BankRepco Home

Finance Limited2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12

Remuneration - - - -

Share Ca ..•italEquity Shares - - - - 1,000.00 1,000.00 800.00 800.00Balance in savings Bankaccount maintained with thepromoter - - - - 100.62 8.72 - -Balance in SODL/Cash Creditnccount mainillincd with theprOlmlh.'f - - - - 3,281.68 813.09 - -L'nSl'CUfCd Loans <1vailed fromthe promoter{ Bnlanccoutstandinc. - - - - 5,528.43 6,867.81 - -Remuneration. 2.33Reimbursement of'stablishmcnt cost 25.59 25.63Interest Income received fromthe promoter - - - - - -. Savings Bank - - - - 11.78 0.34 - -. Fixed Dt:'posit - - - - - 9.98 - -intcn.'st paid to promoters - - - - - -- Cash Crcd it - - - - 54.00 48.50 - -- UnSt.'cllr(~i Loans - - - - 669.23 703.97 - -

""Remuneration in the capacity of Executive director is w.c.f 01.01.2013

REPCO MSME DEVELOPMENT AND FINANCE LIMITEDNO;33, NORTH USMAN ROAD, T NAGAR, CHENNAI 600 017

Significant Accounting policies and Notes to accounts:

NOTE 1:

Significant Accounting Policies:

1. The financial statement are prepared and presented under the historical cost convention

method in accordance with the Generally Accepted Accounting Principles (GAAP) and the

provisions of the Companies Act, 1956 and Accounting Standards issued by the Institute

of Chartered Accountants of India (ICAI) as applicable.

2. Income Recognition:

I. Interest income on Loans given is recognized under the internal rate of return method.

Income on Non-performing assets is recognized only when realized.

II. Interest income on deposits is recognized on a proportionate basis taking into account the

amount outstanding and the rates applicable.

III. All other income is recognized on accrual basis.

J. Fixed Assets and Depreciation:

Fixed assets are stated at cost less accumulated depreciation. Cost includes taxes, duties

and other incidental expenses related to the acquisition and installation of the assets.

Depreciation on fixed assets is provided on a pro-rata on the basis of the straight line

method, over the period of use of these assets at the annual depreciation rates and in the

manner stipulated in Schedule XIV. of the Companies Act, 1956 or based on the

depreciation rates as per the estimated useful lives of the assets determined by the

Management, whichever is higher as follows;

J

!Fixed Assest Rate of depreciation

. Furniture and Fillings 10.00%

Office Equipments 10.00%

Electrical Equipments 10.00%, ,

Computers & Software 33.33% i

Temporary Structures (Partition work) 100%

Individual assets costing Rs.5,OOOj-or less are fully depreciated in the year of purchase.

4. Earnings Per Share:

The earnings considered in ascertaining earnings per share comprises of the net profit

after extraordinary items and tax. The number of shares used in computing basic earnings

per share is the weighted average number of shares outstanding during the year. Diluted

earning per share comprises of weighted average share considered for deriving basic

earnings per share as well as dilutive potential equity shares.

5. Income Taxes:

Current tax is the amount of tax payable on the taxable income for the year and IS

determined in accordance with the provisions of the Income tax Act, 1961.

Deferred Tax is recognized on timings difference being the difference between the taxable

income and accounting income that originate in one period and are capable of reversal in

one or more subsequent periods. Deferred tax assets and liabilities are measured using the

tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet

date.

6. Employee Benefits

The company's contribution towards Employees Provident Fund Scheme is remilled to the

Regional Provident Fund Commissioner and is charged to the Profit & Loss Account on

accrual basis.

REPCO MSME DEVELOPMENT AND FINANCE LIMITED

NOTE 19:

NOTES TO ACCOUNTS:

1. Related Party Disclosure:

LIST OF RELATED PARTIES;

KEY MANAGEMENT PERSONNEL: 1) Shri. R. Varadarajan - Managing director.

2) Shri. T.E. Thiruvengadam - Executive Director

PROMOTER: 1) Repco Bank Limited.

2) Repco Home Finance Limiled

The Company's relaled party transactions and balances are summarized as follows;

Key management Personnel Promoters

Managing Executive Repco Bank Repco HomeNature of Director Director Limited Finance Limited

Transactions

2012- 2011- 2012- 2011- 2012- 2011-13 12 13 12

2012-13 2011-1213 12

Share Capital

Equity Shares - - - - 1,000.00 1,000.00 800.00 800.00

Balance in savingsBank accountmaintained withthe promoter - - - - 100.62 8.72 - -

Balance inSODL/Cash Creditaccount maintainedwith the promoter - - - - 3,281.68 813.09 - -

Unsecured Loansavailed from thepromoter/ Balanceoutstanding - - - - 5,528.43 6,867.81 - -

Remuneration' 2.33

Reimbursement ofEstablishment costs 25.59 25.63 ~--;-....

Z~~ (~.,,'" "'""~ T~~ ~ -----=~ '"~C~"'L ;;:.a: 6004. -I.• 01.(! ~ t" ~ I"., ~,.""dTtt'~/

Interest Incomereceived from thepromoter - - - - - -

- Savings Bank - - - - 11.78 0.34 - -

- Fixed Deposit - - - - - 9.98 - -

Interest paid topromoters - - - - - -

- SODL/CashCredit - - - - 54.00 48.50 - -

- Unsecured Loans - - - - 669.23 703.97 - -

* Remuneration in the capacity ofExecutive director is w.e.f 01.01.2013

2. There is no expenditure incurred in Foreign Currency.

3. There are no amounts to be reflected under payable to Investor Protection Fund.

4. Since the no of employees is less than the prescribed minimum, the provisions of Gratuity

Act, 1972 is not applicable.

5. Previous Year's Figures have been regrouped and rearranged wherever necessary to

conform to current year classification.

For R.Subramaian and CompanyChartered Accountants

UN.Krishnam;&PartnerMemebership No: 19339Firm Reg No: 0041375Place: ChennaiDate: 09.05.2013

e::>(3~T.E.Thiruven adamExecutive Director

R.VaradarajanManaging Director