2 madura micro finance...14 madura micro finance 10 short films of 5-7 mins were created to spread...

2 Madura Micro Finance

Mission

Enabling productive and efficient

capital in rural India for inclusive

socioeconomic development

3Madura Micro Finance

Company

Letter from Chairman

Tracking Technology Use in Banking & Finance among Our Members

Enabling Successful Entrepreneurship

Committed to the Health of our Member Communities

Auditor’s Report

Annexure (I,II,III,IV,V,VI)

Balance sheet

Cash Flow

Notes

Auditor’s Report

Balance Sheet

Cash Flow

MADURA MICRO FINANCE (STANDALONE)

MADURA MICRO EDUCATION

Director’s Report

MADURA MICRO FINANCE (CONSOLIDATED)

Auditor’s Report

Balance sheet

Cash Flow

Notes

Notes

Snapshot of Results

07

08

10

12

14

45

52

53

54

56

88

89

90

24

97

102

103

104

106

91

82

16

06

Management Discussion and Analysis 42

Contents


Tracking Technology Use in

Banking and Finance among

Our Members

10


GrowthFY 2016 FY 2017 FY 2018

43.96%

31.84%

31.79%

Gross Loan Portfolio ( . Mn)*

Revenue ( . Mn)

PAT ( . Mn)

Net NPA% (PAR > 90 days)

Efficiency (OPEX/GLP)

Active Borrowers

Branches

Geography

5,531

1,188

192

0.12%

6.82%

407,730

200

Tamil Nadu,Karnataka,

Maharashtra,and Kerala

8,226

1,795

302

Nil

6.69%

515,104

217


Maharashtra,and Kerala

11,842

2,331

398

Nil

6.19%

688,546

282


Maharashtra,Kerala, Bihar,and Orissa.

2014 2015 2016 2017 2018 20182017201620152014

0

2000

4000

6000

8000

10000

12000

14000

0

500

1000

1500

2000

2500

Snapshot of Results

GROSS LOAN PORTFOLIO ( . Mn) REVENUE ( . Mn)


* includes securitized portfolio

Mr. M. Narayanan

Company Secretary

Mr. Sanin Panicker

nd36, 2 Main Road,

Kasturba Nagar, Adyar,

Chennai - 600020.

Banks/Financial Institutions

DIRECTORS

President & CFO

Dr. Tara Thiagarajan (Chairman & Managing Director)

Mr. Ashok Mirza (Non-Executive Director)

Mr. R Ramaraj (Non-Executive Director)

Mr. N.C.Sarabeswaran (Independent Director)

Ms. Siva Kameswari Vissa (Independent Director)

Mr. Sandeep Farias (Non-Executive Director)

Mr. Ajit Thomas (Non-Executive Director)

Mr. Mohan Eddy (Whole-time Director)

Axis Bank

City Union Bank

DCB Bank

Dhanalakshmi Bank

Federal Bank

IDBI Bank

South Indian Bank

Lakshmi Vilas Bank

Kotak Mahindra Bank

Dena Bank

Indian Bank

Bank of Baroda

Bandhan Bank

RBL Bank

IDFC Bank

Union Bank of India

State Bank of India

National Bank for Agricultural and Rural Development

Micro Units Development and Refinance Agency Limited

Hero FinCorp Limited

Hinduja Leyland Finance Limited

Mahindra & Mahindra Financial Services Limited

Mas Financial Services Limited

Nabkisan Finance Limited

Northern Arc Capital Limited

Tata Capital Financial Services Limited

World Business Capital

Sundaram Finance Limited

Banks Financial Institutions

Registered Office

PKF Sridhar & Santhanam LLP

KRD GEE GEE Crystal, 7th Floor,

91-92, Dr. Radhakrishnan Salai,

Mylapore, Chennai 600 004.

Auditors

Debenture Trustee

Catalyst Trusteeship Limited

Office No. 83 - 87, 8th Floor,

B' Wing, Mittal Tower,

Nariman Point, Mumbai - 400021

6th Floor,

Karumuttu Centre,634,

Anna Salai, Nandanam,

Chennai - 600035

Corporate Office

Company


Dear Shareholders,This marks another year of robust growth in both top line and profitability. The lingering

impact of demonetization slowed down branch expansion and disbursals in some regions

during the first half of the year but eased to enable strong growth in the second half. We are

happy to report that this year our gross loan portfolio grew ~44% to Rs. 11.82 billion and profit

before tax grew from Rs. 495 to 625 million.

Notable developments this year included expansion into Bihar and Odisha with 19 new

branches, continued gains in operational efficiency and data driven intelligence resulting in

greater productivity, and the roll out of significant CSR initiatives in cognitive and community

health.

EXPANSION INTO BIHAR AND ODISHA

Expansion into Bihar and Odisha marks a substantial leap forward in our efforts to establish a

pan India footprint. Both States have positive credit behavior with excellent track records of

repayment and GSDP growth that is higher than the national average. Bihar stands out in its

10.3% GSDP growth. With 19 new branches operational by the end of the year and further

expansion to come, these states represent an important part of Madura’s geographic

expansion. Branch expansion continued across other states as well with 36 new branches

across Tamil Nadu and Kerala.

PROCESS EFFICIENCIES

Following the streamlining of our centralized credit operations last year, much of our efforts

this year have focused on building greater efficiencies into our field processes. New

applications for field staff help track metrics at a village level as well as assist in planning,

tracking and monitoring field movement. This has led to considerable efficiencies in sourcing

and loan origination as well as better management of collections. The end result has been

higher throughput resulting in lower operating expenses.

We have also taken advantage of growing cell phone penetration and number persistency to

ensure greater connect with our member base by phone. From call conversions at 20% just five

LETTER FROM

CHAIRMAN


years ago arising due to the lack of phones and stable phone numbers among our members,

we are now able to reliably reach over 80%. This opens up numerous opportunities going

forward for new products and processes.

CORPORATE SOCIAL RESPONSIBILITY

This year Madura is proud to have made a significant commitment to CSR activities focusing on

two fundamental aspects that impede the economic success of its member base: its physical

and cognitive health.

Physical Health: Our own studies showed that our members lose an average of 42 working

days a year, five times more than women in developed countries. In response we developed a

video-based awareness campaign covering ten of the issues most commonly cited by our

members as causes for loss of productivity and wages. Further, over 630 employees

participated actively across the country in bringing free health camps and other health

awareness activities to our member communities, contributing a total of 4067 hours of their

time.

Cognitive Health: India has among the highest rates of malnutrition and physical stunting in

the world. However, research has increasingly begun to show that impoverished environments

also result in cognitive stunting. Development of the brain is most rapid and significant from

birth to age five. Madura is therefore supporting research by the Public Health Foundation of

India to understand and build tools to assess and intervene in early childhood for better

cognitive health results.

TECHNOLOGY ENVIRONMENT

Changes in technology, such as costs of cell phones, and new payment mechanisms are rapidly

beginning to gain traction in rural India. This presents an opportunity for new types of services

and offerings. We have been active in monitoring the trajectory of awareness and use of

technology among our member base and share in this annual report some insights gained on

this dimension. Further we continue to actively pilot new technologies to evaluate adoption

and potential and remain at the forefront. We invite you to read our blog Madura Insights

which provides data driven views into the changing behavior of the informal economy.

Through data, technology and community efforts, we continue to press forward on our mission

to deliver cost efficient and productive capital to rural communities. We thank you for sharing

in this journey.

Tara ThiagarajanChairman and Managing Director


Tracking Technology Use in Banking and Finance among Our MembersAs India’s digital landscape changes, the adoption and use of technology among our members

has also been changing, and will drive opportunities for future products and services. What

does it look like now?

Bihar

40

Karnataka 149

Kerala 145

Maharashtra 273

Tamil Nadu654

Total number of surveys: 1,261 Tamil Nadu leads in electronic receipt

of income

Cash Cheque Account Transfer

Kerala leads in the use of banking facilities.

Tam

il N

adu

Mah

aras

htra

Karnat

aka

Keral

a

Bihar

Usage of Cheque Book facility (in %)

Bihar

Karnat

aka

Tam

il N

adu

Mah

aras

htra

Keral

a

Use of ATM Card (without debit) facility (in %)

Snapshot March 2018 Cash Still Dominates Income Receipt

Use of Banking Facilities

Tamil Nadu

Maharashtra

Karnataka

Kerala

Bihar

93%1%9%

97%4%

7%

87%15%

5%

96%15%

5%

95%3%3%

Unaware of availability Do not have facility

Unaware of the facility Aware but haven't used

Have facility, not aware of how to use


Use of ATM Card (with debit) facility (in %) Internet Banking Facility (in %)

Tam

il N

adu

Mah

aras

htra

Karnat

aka

Keral

a

Bihar

Karnat

aka

Bihar

Mah

aras

htra

Tam

il N

adu

Keral

a

Use of NEFT facility (in %) Use of IMPS facility (in %)

Tam

il N

adu

Mah

aras

htra

Karnat

aka

Keral

a

Bihar

Karnat

aka

Bihar

Mah

aras

htra

Tam

il N

adu

Keral

a

Kerala

Kerala leads in the use of mobile apps for money transfer.

Use Mobile App

To Receive Money

Use Mobile App

To Send Money

Karnataka

13%

10%

4%

1%3%

13%

13%

7% Maharashtra

Tamil Nadu

Use of NEFT & IMPS Money Transfer Facilities

Use of Mobile Apps to Send And Receive Money

Tamil Nadu leads in the use of NEFT facility

Have facility but choose not to use Have, use the facility Have facility

Used the facility


Enabling Successful Entrepreneurship

To date we have trained 63,751 Microenterprise operators and aspiring entrepreneurs.

Our borrowers have limited business

literacy, minimal digital footprint and

no internet access. Madura Micro

Education was launched in 2012 to

bridge this gap and enable successful

micro entrepreneurs in our borrower

communities. Through our Teach70

video based learning and assessment

platform we deliver practical, context

specif ic business education to

interested members.

63,751

Members trained

5,80,552

Person-hours of content delivered

Trichy

Tanjore

Karaikudi

SivagangaiMadurai

NagercoilTirunelveli

TindivanamKrishnagiri

Periyakulam

Salem

Tiruppur Chidambaram

Hoskote

Sulibele

Devanahalli

Shivanapura

KendanahalliChintamani

Chikka MadhureChikballapur

Gudibande

Raichur

Tamil Nadu Karnataka

Geographic Presence


I had learnt how to improve

product display to help my

customers quickly identify

and choose what they want,

thus allowing me to serve

them without delay.

Petty shop

Before taking the MBE course, I lacked

confidence to interact with anyone. This

course helped me in building my

confidence. My confidence level may

have been at 10% before the course and

now, it is at 90%!

Roja

This course taught me the importance of

advertising and promotions for a business.

I am going to put up a signage for my shop

and start advertising my business in my

village.

Sarees & Dress Materials Business

I am a homemaker. MBE

course gave me the

confidence to start my

own business. I've

created a budget and

started saving money for

my business.

I own a grocery shop and the takeaway of the course was valuable for me. I can now better manage products, finances and customers because of which my profit is steadily improving.

Money is not the only thing important to run a

business. If we want to be successful

entrepreneurs, we must learn about aspects

such as finance, production and supply. I

gained this learning from MBE course

Arulrani

Pushpavalli

Selvarani

Tailor

Homemaker

Ammu

Murugammal

Petty shop

Member Testimonials


Our members lose an average of 42 working days per year due to family health issues

leading to a direct loss of wages. We hope to change that.

community members

10,207

Committed to the Health of Our Member Communities

CSR activities& contributed

105

staffparticipated

in

638hours

impacting

4,067

Health & Nutrition

Eye Camps 72 Blind Walks62 Tree Plantings20

Blood DonationDrives

06 General HealthCamps

06 Dental Camp01


10 short films of 5-7 mins were created to spread awareness on preventive care and

treatment for the 10 most common health issues that lead to loss of wages. These are

shown in our branch office waiting areas.

Cognitive health is essential for effective

decision making and economic success and is

s trongly impacted by nutr i t ion and

environment in the first five years of life.

Madura's CSR supports research into

cognitive health led by Dr. Vikram Patel at the

Public Health Foundation of India (PHFI). The

program hopes to help develop insights that

can drive interventions and policy for better

cognitive development of India's low income

populations.

Diabetes

High Blood Pressure

Back Pain

Cold, Cough & Sore Throat

Fever

Health Awareness Films

Cognitive Health


Director’s Report

MADURA MICRO FINANCE LIMITED(CIN: U65929TN2005PLC057390)

Dear Members,

Your Board of Directors take pleasure in presenting the Thirteenth Annual Report together with the audited

financials of your Company for the financial year ended March 31, 2018.

Financial highlights:

Business Overview:

During the year, the Company has provided Entry Level Loans to 243,297 new self-help groups, Activity term loans

to 128,489 existing Groups, Certified Activity Term Loan to 14,682 members and Business Development Loan to

34,756 members. Overall, the Company has disbursed 421,224 SHG Loans, providing financial assistance

amounting to INR 10.57 billion.

The Assets under Management (AUM) as on 31-03-2018 was at INR 11.84 billion representing an increase of 43.96%

over the previous year.

The profit before tax during the year was at INR 624.96 million compared to INR 495.20 million during the previous

year and the profit after tax increased by INR 96.14 million over previous year.

New Locations

The Company has expanded to Bihar and Odisha in the last quarter of FY18 increasing our presence from four

States to six States. During FY 2017-18, our branch network increased from 217 to 282.

During the year, the Company has opened a total of 65 new branches including 35 new branches in Tamil Nadu, 3 in

Karnataka, 3 in Kerala, 5 in Maharashtra, 6 in Bihar and 13 in Odisha.

.

Capital Adequacy

The Capital to Risk Asset Ratio was 25.70% as on 31st March 2018 as against the minimum requirement of 15%

stipulated by RBI. The net owned funds as on that date was INR 2.36 billion.

Subsidiary

The Company's subsidiary Madura Micro Education Private Limited provided skill development training course to

14,884 students during the year. The revenue from operations of the subsidiary was INR 6.71 million for FY 2017-18.

During the year under review, the Company reported a loss of INR 6.72 million as compared to a loss of INR 10.44

2241.97

89.43

1569.94

16.28

928.69

624.97

233.44

398.27

79.70

DETAILSYear ended

March 31, 2018

Revenue from operations Other Income

Profit Before Interest, Tax, Depreciation and Amortization

Depreciation and amortization

Interest expense (Net)

Profit Before Tax

Tax Expense (Current Tax)

Profit After Tax

Amount transferred to Statutory Reserve

Reg.Office: No.36,

Second Main Road, Kasturba Nagar,

Adyar, Chennai 600020

Phone: 044 42054369,

Fax : +91 (044) 24413841,

Email: [email protected]

1753.06

41.89

1267.37

27.59

744.57

495.20

198.50

302.13

61.00

(INR in million)

Year ended

March 31, 2017


million in the previous year. Expanded access of its education products to a larger base of borrowers are expected

to deliver growth in the coming year.

The details of the subsidiary in Form AOC 1 is attached as Annexure III.

Major Corporate Developments

During the year, your Company issued 3,04,433 equity shares to A.V. Thomas and Co. Ltd and 1,92,807 equity shares

to Midland Rubber and Produce Company Limited at a premium of INR 482.72 per share.

During the year, the Company also issued 400 secured, rated, listed Non-Convertible Debentures aggregating to

INR 400 million to Hinduja Leyland Finance Limited and 330 secured, rated, unlisted Non-Convertible Debentures

aggregating to INR 330 million to AAV SARL.

Vigil Mechanism

In compliance with the procedure laid down under the Vigil Mechanism as required under the Companies Act, 2013,

the Company has established procedures for:

(i). Receiving, retaining and treating complaints received;

ii). Confidential, anonymous submission by employees / Directors of complaints regarding questionable

accounting or auditing matters, conduct which results in a violation of law by Company or in a substantial

mismanagement of Company resources;

(iii). Reporting genuine concerns by the employees and Directors;

(iv). Adequate safeguards against victimization of persons who use vigil mechanism.

Events Subsequent to the date of Financial Statements

No material changes and commitments have occurred affecting the financial position of the Company after March

31, 2018 till the date of this Report.

Dividend

In order to conserve resources for operations and future growth, your Directors do not recommend any dividend

for the year under review.

Transfer to Reserves

As required under Section 45-IC of the Reserve Bank of India Act, 1934, an amount equivalent to 20 % of the profit

after tax (INR 79.70 million) has been transferred to the Statutory Reserve Account.

Deposits

Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 read

with the Companies (Acceptance of Deposits) Rules, 2014.

Order of the Court

There are no significant material orders passed by the Regulators or Courts or Tribunals impacting the going

concern status of the Company's operations in future.

RBI Guidelines

Reserve Bank of India (RBI) granted the Certificate of Registration to the Company in February 2006 vide

Registration No. N.07.00754, to commence the business of a Non-Banking Financial Institution without accepting

deposits. The Company was converted to NBFC-MFI with effect from December 2013. Your Company is a

Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI). The Company has

complied with and continues to comply with all the applicable regulations and directions of the RBI.

Director’s Report


Board Evaluation

The Board of Directors have carried out an annual evaluation of its own performance, Board, Committees and

individual Directors pursuant to the provisions of Section 134 of the Companies Act, 2013.

Performance evaluation criteria for Board, Committees of the Board and Directors were approved by the

Nomination and Remuneration Committee of the Board at its meeting held on January 17, 2018. The main criteria

on which the evaluations were carried out were (i) Contribution to Board's discussions on varied issues related to

strategy, risk, business performance and continuity, (ii) Awareness of and guiding on norms relating to corporate

governance, disclosure and legal compliances, (iii) Contribution by way of new ideas/insights on business

management and growth, (iv) Deliberations on issues that Management and the Board should consider and (v)

Level of Independence and non -partisan approach in decision making.

The performance of the Board was evaluated by the Nomination and Remuneration Committee after seeking

inputs from all the Directors on the basis of the criteria such as the Board composition and structure, manner in

which Board Meetings are conducted, timely information for decision making and business strategy. The

performance of the Committees was evaluated by the Nomination and Remuneration Committee after seeking

inputs from the committee members on the basis of the criteria such as the composition of Committees,

understanding of objectives and decision making.

In a separate meeting of Independent Directors held on January 17, 2018, performance of Non-Independent

Directors, performance of the Board as a whole and performance of the Chairman were evaluated, taking into

account the views of Executive Directors and Non-Executive Directors. The same was discussed in the Board in their

meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its

Committees and individual Directors were also discussed.

Directors' responsibility statement

Your Directors state:

(i). That in the preparation of the annual accounts, the applicable accounting standards has been followed along

with proper explanation relating to material departures;

(ii). That we have selected such accounting policies and applied them consistently and made judgments and

estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the

Company at the end of the financial year and of the profit or loss of the Company for that period;

(iii). That proper and sufficient care was taken for the maintenance of adequate accounting records in accordance

with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for

preventing and detecting fraud and other irregularities;

(iv). That the annual accounts have been prepared on a going concern basis.

(v). That proper systems to ensure compliance with the provisions of all applicable laws were in place and that

such systems were adequate and operating effectively; and

(vi). That proper internal financial controls were laid down and that such internal financial controls are adequate

and were operating effectively.

Corporate Governance

Your Company has been complying with the principles of good corporate governance over the years and is

committed to the highest standards of compliance.

The performance of the Board, Audit Committee, Nomination & Remuneration Committee and the individual

Directors were evaluated on the basis of criteria as approved by the Board

Director’s Report


Listing Compliance

The Company has complied with the provisions of the Securities and Exchange Board of India (Listing Obligations

and Disclosure Requirements) Regulations, 2015 and its amendments and the Debt Listing Agreement entered by

the Company with Bombay Stock Exchange Limited in respect of every Series of Secured / Unsecured Non-

Convertible Debentures issued by the Company.

Declaration by Independent Directors

The Company has received necessary declarations of independence from each of its Independent Directors under

Section 149(7) of the Companies Act, 2013, that he / she meets the criteria of Independent Director as envisaged in

Section 149 (6) of the Companies Act, 2013. All Independent Directors have submitted the declaration of

independence, as required pursuant to Section 149(7) of the Act, stating that they meet the criteria of

independence as provided in Section 149(6) of the Companies Act, 2013 and are not disqualified from continuing as

Independent Directors.

Development and Implementation of Risk Management Policy

The Company has developed and implemented a Risk Management Policy, upon which the Company is ensuring

that the activities are undertaken in a risk-free environment.

Adequacy of Internal Financial Controls with reference to the Financial Statements

The Company has implemented and evaluated the Internal Financial Controls which provide a reasonable

assurance in respect of providing financial and operational information, complying with applicable statutes and

policies, safeguarding of assets, prevention and detection of frauds, accuracy and completeness of accounting

records. The Directors and Management confirm that the Internal Financial Controls (IFC) are adequate with

respect to the operations of the Company. Further, the Board annually reviews the effectiveness of the Company's

Internal Control System.

Directors

Presently, the Board of Directors comprise of eight Directors.

Mr. Puneet Agarwal, Independent Director ceased to be a Director consequent to continued absence from all the

meetings of the Board of Directors held during the period of twelve months (i.e. From January 2017 to January 2018)

as stipulated under section 167 (1) (b) of the Companies Act, 2013. In this connection, the Company has filed the

necessary returns with the Registrar of Companies, Chennai.

Board Meetings & Attendance

During the year, the Board of Directors of your Company met 6 times. The Board Meetings were held on 28.04.2017,

26.05.2017, 15.06.2017, 01.08.2017, 06.11.2017 and 18.01.2018. The time period between any two meetings were

not more than 120 days.

The details of attendance of the Directors for the year ended March 31, 2018;

Name of the Director

Ms. Tara Thiagarajan

Mr. N C Sarabeswaran

Mr. R Ramaraj

Mr. Ashok Mirza

Mr. Mohan Eddy

Mr. Sandeep Farias

Mr. Ajit Thomas

Ms. Siva Kameswari Vissa

Designation

Chairman & Managing Director

Independent Director

Non-executive Director


Whole-time Director



Independent Director

Director’s Report


NAME OF THE DIRECTOR NO. OF MEETINGS

HELD ATTENDED



Mr. R Ramaraj

Mr. Ashok Mirza

Mr. Mohan Eddy

Mr. Sandeep Farias

Mr. Puneet Agarwal


Mr. Ajit Thomas

6

6

6

6

6

6

6

6

6

4

6

5

5

6

4

0

4

6

Retirement by Rotation of Directors

Mr. R Ramaraj, Director and Mr. Ajit Thomas, Director retire by rotation at the ensuing Annual General Meeting and

being eligible, offer themselves for reappointment. Your Directors recommend their re-appointment.

Committees

NAME OF THE COMMITTEE MEMBERS

1. Audit Committee

2. Nomination & Remuneration Committee

3. Risk Management Committee

Mr. N C Sarabeswaran, Chairman

Mr. R Ramaraj


Mr. Ashok Mirza, Chairman


Mr. Sandeep Farias

Mr. N C Sarabeswaran, Chairman


Mr. R Ramaraj

5. Corporate Social Responsibility Committee Ms. Tara Thiagarajan, Chairman

Mr. Ajit Thomas


4. Asset Liability Management Committee Mr. M Narayanan, Chairman

Mr. Samuel Mathews

Mr. Sanin Panicker

Mr. Prakash Paul

6. IT Strategy Committee Mr. R Ramaraj, Chairman

Mr. Mohan Eddy

Mr. Ashok Mirza

Overall Remuneration

Details of remuneration as required under Section 197 of the Companies Act, 2013 read with Rule 5 of Companies

(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure VI and forms part

of this Report.

Director’s Report


Statutory Auditors

M/s. PKF Sridhar & Santhanam LLP were appointed as the Statutory Auditors of your Company at the Annual

General Meeting held on 28th September, 2017, for a term of five consecutive years. As per the provisions of

Section 139 of the Companies Act, 2013, the appointment of Auditors is required to be ratified by Members at every

Annual General Meeting.

In accordance with the Companies Amendment Act, 2017, enforced on 7th May, 2018 by the Ministry of Corporate

Affairs, the appointment of Statutory Auditors is not required to be ratified at every Annual General Meeting.

The Auditors in their Report to the members have given one qualified opinion and the response of your Directors

with respect to it is as follows:

Management response to the audit qualification:

As directed by the Central Government, the Company has made a fresh application vide SRN G48292304 dated

14.07.2017 seeking the approval of the Central Government for the earlier appointment of Ms. Tara Thiagarajan as

the Chairman & Managing Director of the Company for a period of three years commencing from 26.02.2012 to

25.02.2015 under the Companies Act, 2013 and the same was approved vide MCA Letter SRN No.

G48292304/4/2017-CL-VII dated 15.06.2018.

The Company is in the process of submitting the additional applications to regularize her other two appointments

viz, revision of terms and conditions with effect from 01.10.2013 to 30.09.2016 and reappointment from 01.10.2016

to 30.09.2021 and is confident of obtaining the approval at the earliest.

Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr V Ramasubramanian,

Practising Company Secretary to undertake the Secretarial Audit of the Company.

The Secretarial Audit Report obtained from Mr V Ramasubramanian, Practising Company Secretary is attached as

Annexure V and forms part of this Report.

The Secretarial Auditor in his Report to the members has given three qualified opinions and the response of your

Directors with respect to it is as follows:

Management response to the qualification of the Secretarial Auditor:

1. Approval of Central Government for appointment of Ms. Tara Thiagarajan as Chairman and Managing Director:

As directed by the Central Government, the Company has made a fresh application vide SRN G48292304 dated

14.07.2017 seeking the approval of the Central Government for the earlier appointment of Ms. Tara Thiagarajan

as the Chairman & Managing Director of the Company for a period of three years commencing from 26.02.2012 to

25.02.2015 under the Companies Act, 2013 and the same was approved vide MCA Letter SRN No.

G48292304/4/2017-CL-VII dated 15.6.2018.

The Company is in the process of submitting the additional applications to regularize her other two appointments

viz, revision of terms and conditions with effect from 01.10.2013 to 30.09.2016 and reappointment from

01.10.2016 to 30.09.2021 and is confident of obtaining the approval at the earliest.

2. Appointment of Independent Director on the Board of Directors:

The Company is in the process of identifying a suitable person with requisite attributes as envisaged in section

149 (6) of the Companies Act, 2013 to fill the vacancy caused by the resignation of Mr. Puneet Agarwal and is

confident of appointing the Independent Director at the earliest.

Director’s Report


3. Appointment of Independent Director on the Nomination and Remuneration Committee:

The Company is in the process of identifying a suitable person as envisaged in Section 178 (1) of the Companies

Act, 2013 to fill the vacancy caused by the resignation of Mr. Puneet Agarwal and is confident of appointing the

Independent Director at the earliest.

Conservation of Energy, Technology Absorption and Foreign Exchange Outgo

The particulars prescribed under clause (m) of sub section (3) of Section 134 of the Companies Act, 2013 read with

Rule 8 (3) of the Companies (Accounts) Rules, 2014 of the following:

In view of the nature of activities that are being carried out by the Company, the particulars prescribed under clause

(m) of sub section (3) of Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules 2014 on

conservation of energy and technology absorption are not applicable to the Company.

During the year, the Company did not have any foreign exchange earnings and had an outgo of INR 27.43 million.

Particulars of Loans, Guarantees and Investments

The company has not given any loans/guarantees as covered under provisions of Section 186 of the Companies Act,

2013 during the year.

Corporate Social Responsibility (CSR) Policy

Pursuant to the provisions of section 135 and Schedule VII of the Companies Act, 2013, CSR Committee has been

constituted and the said committee has recommended and the Board has approved a policy on Corporate Social

Responsibility (CSR).

For the financial year 2017-18, your Company is required to spend an amount of INR 7.35 million towards CSR. The

detailed report on CSR is attached as Annexure I.

Related Party Transactions:

All Related Party Transactions that were entered into during the Financial Year ended 31st March, 2018 were on an

arm's length basis and were in the ordinary course of business.

The particulars of contracts or arrangements with related parties referred to in sub section (1) of Section 188

entered by the Company during the financial year ended 31st March, 2018 is annexed hereto as Annexure IV in

prescribed Form AOC-2 and forms part of this report.

Management Discussion and Analysis Report

The Management discussion and analysis report is annexed hereto as Annexure VII and forms part of this report.

Extract of Annual Return

As required pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management

and Administration) Rules, 2014, an extract of Annual Return in Form MGT 9 is annexed hereto as Annexure II.

Employees' Particulars in terms of Section 134 read with Rules of the Companies Act, 2013

There were no employees in the Company whose particulars are required to be given under Section 197 of the

Companies Act, 2013 read with Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial

Personnel) Rules, 2014.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)

Act, 2013

The Company has in place a policy in line with requirements of the Sexual Harassment of Women at Workplace

(Prevention, Prohibition & Redressal) Act, 2013 that covers all employees. An Internal Complaints Committee has

Director’s Report


been set up to redress complaints received regarding sexual harassment. No complaints regarding sexual

harassment have been received during the financial year.

Acknowledgement

Your Directors take this opportunity to place on record their appreciation to all employees for their hard work,

spirited efforts, dedication and loyalty to the Company which has helped the Company maintain its growth.

The Directors also wish to place on record their appreciation for the support extended by the Reserve Bank of India,

other regulatory and Government bodies, Company's Auditors, customers, bankers, promoters and shareholders.

For and on behalf of the board


Place of Signature : Chennaird23 July 2018

Director’s Report


Annexure I

Corporate Social Responsibility Report

1. Company's CSR Policy:

i) Madura Micro Finance Limited (MMFL) believes that in alignment with its vision, it will continue to enhance

value through its CSR initiatives and promote social sustainability, sustainable development of the

environment and social welfare of the people and society at large, more specifically for the deprived and

underprivileged persons.

ii) This policy encompasses the Company's philosophy for giving back to society as a corporate citizen and lays

down the guidelines and mechanism for undertaking socially useful programmes for the welfare &

sustainable development of the community at large, is titled as the “MMFL CSR Policy”.

iii) In keeping with the Company's belief in the positive benefits of promoting community health including both

cognitive health and preventive healthcare, its CSR initiatives were focused on these areas.

iv) The Company has also given preference to the local area where it operates by contributing to a project for

restoration of a charismatic wetland of the city of Chennai.

2. Composition of the CSR Committee:


Mr. N C Sarabeswaran (Independent Director)

Mr. Ajit Thomas

Chairperson

Member

Member

3. Average Net Profit of the Company for last three financial years:

553.43

309.50

239.08

1102.01

367.34

Financial Year Net Profit before tax and exceptional items computed

as per section 198 of the Companies Act, 2013 (INR million)

2016-17

2015-16

2014-15

Total

Average Net Profit for the last 3 years

4. Prescribed CSR Expenditure (2% of the amount as in item 3 above): INR 7.35 million.

5. Details of CSR spent during the financial year

(a) Total amount to be spent for the financial year: INR 7.35 million

(b) Amount spent: INR 5.87 million

(c) Amount unspent: INR 1.48 million

(d) The manner in which the amount spent during the financial year is attached below.


6. In case the Company has failed to spend the two percent, of the average net profit of the last three

financial years or any part thereof, the Company shall provide the reasons for not spending the amount

in its Board report.

The Company's primary focus is on promoting community health including both cognitive health and preventive

healthcare. Major portion of the CSR budget has been allocated for the Company's project with PHFI on cognitive

health and preventive healthcare. The amount spent on this project depends upon the completion of various

stages of the said project. For this reason, during the year, the Company's spend on the CSR activities has been

less than the limits prescribed under Companies Act, 2013.The Company will focus to utilise the unspent CSR

funds in future on appropriate projects with the approval of the Board of Directors.

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR policy

is in compliance with CSR objectives of and policy of the Company.

We hereby declare that implementation of the CSR policy are in compliance with CSR objective and policy of the

Company.

Ms. Tara ThiagarajanChairperson, CSR Committee

Annexure I




Place of Signature : ChennairdDate: 23 July 2018

Sector in

which the

project is

covered

Projects or

programs

(1) Local area or

other

(2) Specify the

State and district

where projects or

programs was

undertaken

Amount

outlay

(budget)

project

or

program

wise

(INR)

Amount

spent on the

projects or

programs

(INR)

Cumulative

expenditure

upto the

reporting

period

(INR)

Amount Spent:

Direct or

through

implementing

agency.*

* Details of

implementing

agency

Rewari, Haryana 15.00 2.50 4.06 * Public Health

Foundation of

India

Promoting

health care

including

preventive

healthcare

(Amount in million)

1.56

Direct Over

head

CSR project

or activity

identified

Collaborative

Research on

Cognitive

Health

Development

S.No

1.

Chennai,

Tamil Nadu

1.50 1.50 1.50 * Care Earth

Trust

Ensuring

environmental

sustainability,

conservation of

natural

resources and

maintaining

quality of soil,

air and water

NilRestoring a

charismatic

wetland of the

city of

Chennai viz.

Pallikaranai

Marsh.

2.

Tamil Nadu

Trichy, Ariyalur,

Perambalur,

Tiruvannamalai,

Villupuram, Tirupur,

Krishnagiri, Theni,

Dharamapuri, Tanjore,

Madurai,Virudhunagar,

Ramanathapuram

Sivagangai,Pudukottai,

Dindigul, Tirunelveli,

Salem, Namakkal,

Kanniyakumari,

Tiruvarur, Chennai,

Nagapattinam,

Cuddalore,

Chidambaram

Maharashtra

Pune, Kolhapur and

Sangli.

Karnataka

Dharwad, Koppal,

Belgaum, Gadag and

Bellary

Kerala

Thiruvananthapuram

0.16 0.31 DirectlyPromoting

health care

including

preventive

healthcare and

ensuring

environmental

sustainability

0.15Health

Camps& Tree

plantation

activities

3.

Annexure I


FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2018

Pursuant to Section 92 (3) of the Companies Act, 2013 and

rule 12(1) of the Company (Management & Administration) Rules, 2014.

U65929TN2005PLC057390

September 2, 2005

Madura Micro Finance Limited

Company Limited by shares

India Non-Government Company

(Non-Banking Financial Company)

36, II Main Road, Kasturba Nagar, Adyar, Chennai 600 020

Phone: +91 44 4211 6843 email: [email protected]

website: www.maduramicrofinance.co.in

Debt Listed Company

Bigshare Services Private Limited

E-2 & 3, Ansa Industrial Estate, Saki-Vihar Road, Sakinaka,

Andheri(E), Mumbai-400 072 Phone: 022-40430200

1. CIN

2. Registration Date

3. Name of the Company

4. Category/

Sub-category of the Company

5. Address of the Registered office &

contact details

6. Whether listed company

7. Name, Address & contact details of the

Registrar & Transfer Agent, if any.

I. REGISTRATION & OTHER DETAILS:

Name and Description of main

products / services

NIC Code of the

Product/service

% to total turnover

of the company

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Micro Finance 96.16

Name and address

of the Company CIN/GLN

Holding/Subsidiary/

Associate company

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Madura Micro

Education Private

Limited

U80301TN2013PTC091745 2(87)

% of

shares held

Applicable

Section

Subsidiary 100

(All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

S.

N0

1.

S.

N0

1.

Annexure 2


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B. Remuneration to other Director

Particulars of Remuneration Name of Directors

Independent Directors

Fee for attending Board/Committee meetings

Commission

Others, please specify

Total (1)

Independent Directors


Commission


Total (2)

Other Non-Executive Directors


Commission


Total (3)

Other Non-Executive Directors


Commission


Total (4)

Total (B) = (1+2+3+4)

N C Sarabeswaran

Siva Kameswari Vissa

R Ramaraj

Ashok Mirza

975,000.00

975,000.00

800,000.00

800,000.00

800,000.00

800,000.00

300,000.00

300,000.00

2,875,000.00

Total Amount (Rs)

Name of MD/WTD/ Manager Total Amount

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Particulars of Remuneration

Name

Designation

Gross salarya) Salary as per provisions contained in

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

b) Value of perquisites u/s 17(2) Income

tax Act, 1961

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

Income- tax Act, 1961

Stock Option

Sweat Equity

Commission

- as % of profit

- others, specify

Others, please specify (Variable Pay)

TOTAL (A)


Managing Director

6,729,600.00

-

6,729,600.00

Mr. Mohan Eddy

Whole-time Director

4,913,000.00

2,000,000.00

6,913,000.00

11,642,600.00

2,000,000.00

13,642,600.00

S.

NO1.

2.

3.

4.

.

S.NO

Annexure 2

2.

3.

4.

5.

1.

Annexure 2


Annexure 2

Name of Key Managerial Personnel Total Amount

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

Particulars of Remuneration

Name

Designation

Gross salarya) Salary as per provisions contained in

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

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

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

Income- tax Act, 1961

Stock Option

Sweat Equity

Commission

- as % of profit

- others, specify

Others - Variable pay

TOTAL

M Narayanan

CFO

6,600,000.00

2,000,000.00

8,600,000.00

Sanin Panicker

CS

637,271.00

53,100.00

690,371.00

S.NO

1.

2.

3.

4.

5.

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL

SECTION OF

THE

COMPANIES

ACT

A. COMPANY

B. DIRECTORS

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment

Compounding

Penalty

Punishment

Compounding

Penalty

Punishment

Compounding

TYPE BRIEF

DESCRIPTION

DETAILS OF

PENALTY/

PUNISHMENT/

COMPOUNDING

FEES IMPOSED

AUTHORITY

[RD / NCLT/

COURT]

APPEAL

MADE, IF

ANY

(GIVE

DETAILS)


For and on behalf of the Board



7,237,271.00

2,053,100.00

9,290,371.00

Annexure 3

Form AOC-1(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies

(Accounts) Rules, 2014)

STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF

SUBSIDIARIES/ASSOCIATE COMPANIES/JOINT VENTURES

PART “A”: SUBSIDIARIES

(Information in respect of each subsidiary to be presented with amounts in Rs.)

S.NO Particulars Details

Name of the subsidiary

Reporting period for the subsidiary concerned, if different

from the holding company's reporting period

Reporting currency and Exchange rate as on the last date of

the relevant Financial year in the case of foreign subsidiaries

Share Capital

Reserves & Surplus

Total Assets

Total Liabilities

Investments

Turnover

Profit before taxation/(Loss)

Provision for taxation

Profit/(Loss) after taxation

Proposed Dividend

% of shareholding

Part “B”: Associates and Joint Ventures: Not Applicable

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

Madura Micro Education Private Limited

NA

NA

1,49,00,000

(4,00,76,651)

35,99,332

35,99,332

NIL

67,08,400

(67,16,911)

NIL

(67,16,911)

NIL

100%





Form AOC-2(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the

Companies (Accounts) Rules, 2014.

Form for Disclosure of particulars of contracts/arrangements entered into by the

company with related parties referred to in sub section (1) of section 188 of the

Companies Act, 2013 including certain arm's length transaction under third proviso

thereto.

S.No Particulars Details

Name(s) of the related party and nature of the relationship

Nature of contracts/agreements/transaction

Salient features of the contracts or arrangements or transactions including

the value, if any

Justification for entering in to such contracts or arrangements or transactions

Date of approval by the Board

Amount paid as advances, if any

Date on which a special resolution was passed in General Meeting as required

under first proviso to section 188

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

1.

2.

3.

4.

5.

6.

7.

Name(s) of the related party and nature of the

relationship

Nature of contracts/ arrangements/ transaction

Duration of contracts/ arrangements/ transaction

Salient terms of the contracts or arrangements or

transaction including the value, if any



2. Details of contracts or arrangements or transactions at Arm's length basis.

1.

2.

3.

4.

5.

6.



relationship







Scimergent Analytics and Education Private

Limited

Provision for Management Service.

One Year.

To avail management services to oversee the

task implementation. Amount paid: 36 lacs

01.08.2017

Nil

1.

2.

3.

4.

5.

6.


Scisphere Analytics India Private Limited

Subscription of user licenses.

As per product terms and conditions.

To explore the Scisphere platform for data

analytics.

Amount paid: 44.85 lacs

26.05.2017, 06.11.2017, 18.01.2018

Nil

Annexure 4

Nil

Nil

Nil

Nil

Nil

Nil

Nil



relationship







1.

2.

3.

4.

5.

6.


Scimergent Analytics and Education Private

Limited

IT Support.

No specific duration.

IT support, automation and maintenance

services. Amount paid: 118.74 lacs

18.01.2018

Nil


relationship







1.

2.

3.

4.

5.

6.


Ms. Pamela Mohan

Lease Agreement.

One Year.

To use the residential property on rental

basis.

Amount paid: 16.20 lacs

06.11.2017

Nil




Annexure 4


Annexure 5

Form No MR-3

(Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies

(Appointment and Remuneration Personnel) Rules, 2014)

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to

good corporate practices byM/s Madura Micro Finance Limited (hereinafter called the “Company”). The Secretarial

Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate

conducts/statutory compliances and expressing my opinion thereon.

Based on my verification of the Company'sBooks, Papers, Minute Books, Forms and Returns filed and other records

maintained by the Company and also the information provided by the Company, its Officers, Agents and

Authorized Representatives during the conduct of Secretarial Audit, I hereby report that in my opinion, the

Company has, during the audit period covering the Financial Year ended on 31stMarch 2018complied with the

statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-

mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the Books, Papers, Minutes Books, Forms and Returns filed and other records maintained by the

Company for the Financial Year ended on 31stMarch 2018 according to the provisions of:

Secretarial Audit Report

For the Financial Year ended 31stMarch 2018

To

The Members

M/s Madura Micro Finance Limited

No.36, II Main Road

Kasturba Nagar

Adyar

Chennai 600 020

The Companies Act, 2013 (the Act) and the Rules made thereunder;

The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the Rules made thereunder;

The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder.

ForeignExchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent

applicable to Foreign Direct Investment (FDI) and External Commercial Borrowings (ECB);

The Following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,

1992 (SEBI Act):

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

The Debt Listing Agreement with BSE Limited;

The Memorandum and Articles of Association; and

i.

ii.

iii.

iv.

v.

vi.



Other applicable Laws: vii.

The Employees Provident Fund & Miscellaneous Provisions Act, 1952.

The Employees State Insurance Act, 1948

The Maternity Benefit Act, 1961

The Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013

The Payment of Bonus Act, 1965

The Payment of Gratuity Act, 1972

The Tamilnadu Labour Welfare Fund Act, 1972

The Tamilnadu Shops and Establishment Act, 1947:

a.

b.

c.

d.

e.

f.

g.

h.

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

Secretarial Standards issued by The Institute of Company Secretaries of India.

The Debt Listing Agreement entered by the Company with Bombay Stock Exchange Limited in respect of the

Secured / Unsecured Non-Convertible Debentures issued by the Company.

i.

ii.

During the period under audit, the Company has complied with the provisions of the Act, Rules, Regulations,

Guidelines, Standards, etc. mentioned above subject to the following observation:

The Company's application to the Central Government for the reappointment ofMs Tara Thiagarajan as the

Chairman & Managing Director of the Company for a period of Five years commencing from 1.10.2016 to

30.9.2021 under Section 196 read with Clause (e) of Part I of Schedule V of the Companies Act, 2013 had been

rejected and closed vide MCA letter dated 10.4.2017 stating that the Company had not complied with Clause

(e) of Part I of Schedule XIII of the Companies Act, 1956 in respect of her earlier reappointmentsmade from

26thFebruary 2012.

Further, MCA has also stated that the onus of complying with the provisions of the Companies Act, 1956 and

2013 lies with the Company.

Consequently, the Company has made a fresh application vide SRN G48292304 dated 14.7.2017 seeking the

approval of the Central Government for her appointment as the Chairman & Managing Director of the

Company for a period of Three years commencing from 26.2.2012 to 25.2.2015 under the Act and the same

was approved vide MCA Letter SRN No. G48292304/4/2017-CL-VII dated 15.6.2018.

i.

Hence, the Company is advised to expeditiously initiate suitable action to regularize her other two

appointmentsviz. revision of terms and conditions with effect from 1.10.2013 to 30.9.2016 and reappointment

from 1.10.2016 to 30.9.2021.

Annexure 5

As the Company's Debentures are listed in Bombay Stock Exchange, in terms of the provisions of Section

149(4) of the Companies Act, 2013, the Company is required to have at least one-third of the total number of

Directors as Independent Directors.

Consequent to the resignation of Mr Puneet Agarwal, Independent Director, on 18th January 2018, the

Company continues to have only two Independent Directors on the Board which is not in compliance with the

above provisions.

ii.

Hence, the Company is advised to expeditiously initiate suitable action to regain compliance of the provisions of

the Act.

As the Company's Debentures are listed in Bombay Stock Exchange, in terms of the provisions of Section

178(1) of the Companies Act, 2013, the Nomination and Remuneration Committee (NRC) is required to have

three or more Non-Executive Directors out of which not less than one half shall be Independent Directors.

Consequent to the resignation of Mr Puneet Agarwal, Independent Director, on 18th January 2018, the NRC

continues to have only one Independent Director which is not in compliance with the above provisions.

iii.

Hence, the Company is advised to expeditiously initiate suitable action to regain compliance of the provisions of

the Act.

I further report that:

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors and Non-

Executive Directors except Independent Directors as mentioned above.

Adequate notice was given to all the Directors to schedule the Board Meetings, Agenda and detailed notes on

Agenda were sent at least seven days in advance and a system exists for seeking and obtaining further information

and clarifications on the Agenda items before the meeting and for meaningful participation at the meeting.

Majority decision is carried through while the dissenting members' views, if any, are captured and recorded as part

of the Minutes.

I further report that there are adequate systems and processes in the Company commensurate with the size and

operations of the Company to monitor and ensure compliance with applicable Laws, Rules, Regulations and

Guidelines.

I further report that during the audit period, there were no instances of:

Public / Right / Preferential Issue of Shares etc.

However, the Company has made issue of Equity Shares as well as Redeemable Non-Convertible Debentures

on Private Placement, which were in compliance with the provisions of the Companies Act, 2013.

Redemption / Buy-Back of Securities.

Major decisions taken by the members in pursuance to Section 180 of the Companies Act, 2013:

i.

ii.

iii.

Annexure 5



In terms of the powers conferred on the Board of Directors of the Company under Section 180(1)(a) & (c) of the

Act and with the approval of the Board:

The Company has created security on the Current Assets and Immovable Properties of the Company for the

various borrowings made, which were well within the limits approved by the shareholders by Special

Resolution through Postal Ballot Process on 10th December 2016.

The Company has borrowed funds from Banks, Financial Institutions and Non-Banking Financial Companies,

which were well within the limits approved by the shareholders by Special Resolution at the Extraordinary

General Meeting held on 10th December 2016.

a.

b.

During the period under review, the Company has not entered into any Foreign Technical Collaboration

Agreement.

v.

iv.

V RamasubramanianCompany Secretary

ACS No.5890

COP No.11325


Annexure 5

Details of remuneration as required to be provided under Section 197 of the Companies Act, 2013 read with

Rule 5 of Companies (Appointment and Qualification of Managerial Personnel) Rules, 2014

1. Ratio of Remuneration of each Director with Median

employees Remuneration.

The percentage increase in remuneration of each Director,

Chief Financial Officer, Chief Executive Officer, Company

Secretary or Manager, if any, in the financial year;

The percentage increase in the median remuneration of

employees in the financial year;

The number of permanent employees on the rolls of the

Company as on 31st March 2018.

Average percentile increase already made in the salaries of

employees other than the managerial personnel in the last

financial year and its comparison with the percentile

increase in the managerial remuneration and justification

thereof and point out if there are any exceptional

circumstances for increase in the managerial Remuneration.

Affirmation that the remuneration is as per the

remuneration policy of the Company.

(a) Managing Director – 47.72:1(b) Whole-time Director – 34.84:1

The increase in remuneration:Managing Director–3.70 %Whole-time Director –12.17 %Chief Financial Officer –14.28 %Company Secretary – 25%

1.32 %

1600 (excluding part time employees)

The Average increase in the salaries of

the employees other than the

managerial personnel in the last

financial year was 10% while the

increase in the remuneration of the

Chief Financial Officer was 14.28%.

The remuneration is as per the

remuneration policy of the Company.

2.

3.

4.

5.

6.

None of the Employees employed throughout the financial year, was in receipt of remuneration for that year which,

in the aggregate, was not less than Rupees One Crore and Two Lacs.

None of the employees employed for a part of the financial year, was in receipt of remuneration for any part of that

year, at a rate which, in the aggregate, was not less than Rupees Eight Lac Fifty Thousand per month.

None of the employees employed throughout the financial year or part thereof, was in receipt of remuneration in

that year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by

the Managing Director or Whole-Time Director or manager and holds by himself or along with his spouse and

dependent children, not less than two percent of the equity shares of the Company.




Annexure 6


Annexure 7

Management Discussion and Analysis

Industry Structure and Developments

In the last financial year, microfinance industry had seen strong growth despite the slowdown in the first half of the

year due to demonetization. The industry grew by 27%, with significant improvement in portfolio quality. The

industry has been successful in providing small ticket size credit accessible to women in the most unbanked and

underbanked regions of the country driving financial inclusion agenda forward. As per CRISIL Inclusix, financial

inclusion index of India surged from 50.1 in 2013 to 58.0 in 2016. In the credit dimension of the index, MFIs

contributed significantly to sharp 3.17 crore increase in new credit or loan accounts in fiscal 2016. There have been

favorable policy interventions such as microfinance institutions being converted into small finance banks, licensing

of payment banks, the inclusion of insurance, the rapid progress in Jan-Dhan accounts, and advances in use of

technology. For a cash-dependent sector like microfinance, demonetization necessitated MFIs to invest in

technology to better manage and track cashless electronic transactions.

Opportunities and Threats

The microfinance industry was built on the premise of providing last mile connectivity to remote locations.

Increased phone connectivity and adoption of technology offers new opportunities in reaching out to these far-

flung rural areas by reducing costs and increasing accessibility.

Pradhan Mantri Jan DhanYojana (PMJDY) success benefits microfinance industry. The financial literacy that

accompanies PMJDY has positive spill over effects in the microfinance sector, through an increase in credit and

loans. As previously unbanked people prove themselves capable of financial literacy and competency, the formal

credit industry is more likely to provide inclusive loans to those previously left out of the system.

Segment wise or product wise performance

The product wise performance comparison for the last two financial years are given below.

PRODUCT

Activity Term Loan

Business Development Loan

Certified Activity Loan

Entry Level Loan

Viyabaraviruthi Loan

Co-lending

SME Loan

5,007.10

305.73

191.22

5,205.62

34.99

283.72

3.97

4,451.18

90.55

183.76

3,415.83

58.79

-

-

MARCH 2017MARCH 2018

(Outstanding in INR million)

Outlook

The industry outlook in the coming years is positive and growth oriented. With government of India driving financial

inclusion agenda through various schemes, the industry is poised for strong growth in terms of demand for

financial services. Over the last year there has been a strong rise in equity funding from private players, NBFCs and

foreign investors. In addition to increasing the loan outstanding in micro finance industry by 38%, this funding

brought the cost of funds down and poised the industry for better utilisation of lending opportunities. The industry

has embarked on riding the digitization wave by adapting technology, systems and processes with capabilities to go

cashless and paperless.


Annexure 7

Risk and Concerns

The Company has identified various risks involved in the business and considering the key risk factors formulated a

risk management policy. The risk management policy of the Company is reviewed every year by the Board of

Directors of the Company. The Company has also put in place various procedures and processes to assess, monitor

and manage risk throughout the company.

Credit risk, operation risk, geographical risk, liquidity risk, interest rate risk, asset-liability management risk and

political risk are the major risks faced by the microfinance industry. The risk management committee of the

Company is in the process of framing a detailed risk management framework for clear understanding and

identification of various risks and to establish adequate review mechanism to monitor and control risks.

Internal Control Systems and their Adequacy

The key operations of the Company are centralised at the Corporate Office for better monitoring and control. In the

last financial year, we have done audits on information systems and cyber security to ensure that we have strong IT

systems in place for information security. The IT strategic committee based on these audit reports have

recommended a comprehensive Information systems and technology policy which was approved and adopted by

the Board of Directors.

The internal audit team share their reports to the Audit committee on quarterly basis for their review. The

committee ensures that effective systems are in place to monitor controls and implement recommendations. The

Company also has a compliance software to manage all the regulatory compliances, data management system to

ensure data privacy and integrated employee portal for better people management.

Discussion on Financial Performance with Operational Performance

The gross loan portfolio (GLP) of the Company crossed INR 10 billion in FY 18. The Company expanded its operation

to Bihar and Odisha in FY18 with a total of 282 branches across the country.

The active borrowers of the Company have also increased to 688,546 as compared to 515,104 in the previous year.

This has resulted in increase in the total revenue of the company to INR 2,331 million during the year 2017-18 as

compared to INR 1,795 million in the year 2016-17. The Profit after Tax of the Company was INR 398 million as

compared to INR 302 million in the previous year. The operational costs of the Company fell to 6.19% in FY 18.

Human Resource Development

As we continue our journey towards Excellence, the focus in the last year for the Organisation was growth through

entry into new markets. And hence all actions were aimed in that direction. The efforts started with setting up

operations in the states of Bihar and Odisha. From identifying the leadership team who would have a cultural

fitment to Madura, to ensuring attracting right talent for the mid and junior level managers up to setting up of

standard branches across the states. Apart from which training the field staff and on Madura processes were the

focal points of the year. The focus for the year was also to increase presence in existing states, hence ensuring right

leadership for all the regions / zones was also crucial. In order to build pipeline for the Organisation, fresh

management graduates were hired from various institutes, trained and absorbed into various functions. For the

first time we formalized the method of KRA setting for the field managers and introduced structured variable pay

scheme for corporate managers.


44

Standalone Financial StatementsMadura Micro Finance

Auditors Report

INDEPENDENT AUDITOR'S REPORT

To the members of Madura Micro Finance Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Madura Micro Finance Limited ("the

Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss, the Cash

Flow Statement for the year then ended, and a summary of the significant accounting policies and other

explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013

("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of

the financial position, financial performance and cash flows of the Company in accordance with the accounting

principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act,

read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of

adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the

Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate

accounting policies; making judgments and estimates that are reasonable and prudent; and design,

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

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

the financial statements that give a true and fair view and are free from material misstatement, whether due to

fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are

required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act.

Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free from material misstatement.

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

financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the

risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial

statements that give a true and fair view in order to design audit procedures that are appropriate in the

circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the

reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall

presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified

audit opinion on the standalone financial statements.

Basis for Qualified Opinion

As explained in Note no 27, the company's application to the Central Government for the reappointment of the

Managing Director for a period of 5 years commencing from 1.10. 2016 to 30.09.2021, under sec 196, read with

clause (e) of part 1 of Schedule V of The Companies Act 2013 has been rejected since the company has not

complied with cl (e) of part 1 of Schedule XIII of The Companies Act 1956, in respect of her earlier reappointment thmade from 26 February 2012. Company has applied in July 2017, for approval of her reappointment from


2012 to 2015 with compounding and is awaiting approval, after which approval for current reappointment will

be sought. Pending receipt of Central Government approval, payment of Rs. 67.29 lacs has been made towards

Managing Director remuneration for the current year, in the accompanying financial statements.

Qualified Opinion

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

effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone

financial statements give the information required by the Act in the manner so required and give a true and fair

view in conformity with the accounting principles generally accepted in India, of the state of affairs of the

Company as at 31st March, 2018, and its profit and its cash flows for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended 31st March 2017 prepared in

accordance with AS included in this Statement have been audited by the predecessor auditor. The report of the

predecessor auditor on the comparative financial information dated 26th May 2017 (for the year ended March

2017) expressed a modified opinion.

Our report is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central Government

of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A", a statement on the

matters specified in paragraphs 3 and 4 of the Order.

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

a) We have sought and obtained all the information and explanations which to the best of our knowledge

and belief were necessary for the purposes of our audit.

b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our

opinion, proper books of account as required by law have been kept by the Company so far as it appears

from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this

Report are in agreement with the books of account.

d) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our

opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified

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

e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on

record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being

appointed as a director in terms of Section 164 (2) of the Act.

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

and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of

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

according to the explanations given to us:

(i) Company has disclosed the impact of pending litigations on its financial position in its financial

statements - Refer Note 26 to the financial statements;

Auditors Report


Auditors Report

(ii) The Company has long-term contracts including derivative contracts and provision has been made for

any material foreseeable losses.

(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education

and Protection Fund by the Company

Place of Signature : ChennaithDated: 04 May 2018

For PKF Sridhar & Santhanam LLPCHARTERED ACCOUNTANTS

(FIRM REGISTRATION No:003990S /S200018)S.Rajeshwari

(Partner)MEMBERSHIP No:024105


Annexure A

Referred to in paragraph 1 on 'Report on Other Legal and Regulatory Requirements' of our report of

even date

(i) a) The Company has maintained proper records showing full particulars including quantitative details and

situation of fixed assets.

b) The Company has a regular program of verifying fixed assets which, in our opinion, is reasonable having

regard to the size of the company and nature of its assets. Fixed assets have been physically verified by the

management during the year in a phased manner, as per the said program. As informed, discrepancies

noticed on such verification were not material and have been properly dealt with in the books of account.

c) Title deeds of immovable properties are held in the name of the Company except for property in Madurai,

costing Rs. 38.85 lacs with Written Down Value of Rs. 38.60 lacs for which title deeds are yet to be received

by the company.

(ii) The Company does not have any inventories and hence clause ii is not applicable.

(iii) The company has not granted any loans, secured or unsecured to parties covered in the register maintained

under section 189 of the Act except for an unsecured advance of Rs. 74,12,091 to its subsidiary, Madura Micro

Education Private Limited and which amount is outstanding as on 31st March 2018. This advance has been fully

provided for in the books. According to the information and explanations given to us, there are no specific terms

regarding interest or principal repayment in respect of this advance However. In view of this being a 100%

subsidiary, it is not considered as being prejudicial to the interest of the company. As the amount has been fully

provided for no interest is being accrued on this advance.

(iv) Based on our audit procedures & according to the information and explanation given to us, in respect of loans,

investments, guarantees and security, provisions of section 185 and 186 of the Act have been complied with. No

interest is being accrued on advance given to subsidiary as the entire amount of advance has been provided for.

(v) Based on our audit procedures & according to the information and explanation given to us, the Company has

not accepted any deposits from the public within the meaning of the Act and the rules made there under and

hence clause (v) is not applicable.

(vi) The Company is not required to maintain cost records specified by the Central Government under sub-section

(1) of section 148 of the Act.

a) According to the information and explanations given to us and the records of the Company examined by us,

the Company has generally been regular in depositing undisputed statutory dues including provident fund,

employees' state insurance, income-tax, sales tax, service tax, Goods And Services Tax, duty of customs, duty

of excise, value added tax, cess and any other statutory dues with the appropriate authorities. According to

the information and explanation given to us and the records of the Company examined by us, no undisputed

amounts payable in respect of provident fund, employees' state insurance, income-tax, sales tax, service tax,

Goods And Services tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues st were in arrears, as at 31 March 2018 for a period of more than six months from the date they became

payable.

b) Dues relating to income tax / sales tax / service tax / duty of customs / duty of excise / value added tax, which

have not been deposited on account of any dispute, are stated in the table below:

Auditors Report


(vii) Based on our audit procedures and as per the information and explanations given by the management, the

Company has not defaulted in repayment of loans or borrowing to financial institutions, banks, Government

or dues to debenture holders.

(viii) In our opinion and according to the information and explanations given to us, the Company has not raised

moneys during the year by way of Initial Public Offer (IPO) or Further Public Offer (FPO) (including debt

instrument) and the term loans taken during the year were applied for the purposes for which those are

raised.

(ix) To the best of our knowledge and belief and according to the information and explanations given to us, we

report that no fraud by the Company or on the Company by its officers or employees has been noticed or

reported during the year.

(x) The payment of remuneration to the Chairperson and Managing Director for the period from 26th Feb 2012 to st 31 Mar 2017 is subject to the approval of the Central Government. The Company is in the process of obtaining

the requisite approval of the Central Government.

(xi) The Company is not a Nidhi company in accordance with Nidhi Rules 2014. Accordingly, the provisions of clause

(xii) of the Order are not applicable.

(xii) Based on our audit procedures and according to the information and explanations given to us, all the

transactions entered into with the related parties during the year are in compliance with Section 177 and

Section 188 of the Act where applicable and the details have been disclosed in the Financial statements etc. as

required by the applicable accounting standards.

(xiii) Based on our audit procedures and according to the information and explanations given to us, the Company

has made preferential allotment of shares during the year under review and the requirements of section 42 of

the Act in this regard have been complied with. Amounts raised have been used for the purposes for which the

funds were raised.

(xiv) Based on our audit procedures and according to the information and explanations given to us, the Company

has not entered into any non-cash transactions with directors or persons connected with them .

(xv) The company is required to be registered under Section 45IA of RBI Act, and accordingly registration has

been obtained.

Auditors Report

Details of Demand Amount (Rs.) Forum where the dispute is pending

Penalty under the Income tax Act,

1961-Assessment Year 2007-08

71,01,923 High Court of Judicature at Madras

Demand under Income tax Act,

1961- Assessment Year 2014-15

23,30,836 Assessing Officer due to Tribunal having set aside

the original order.






Annexure B

Referred to in paragraph 2(f) on 'Report on Other Legal and Regulatory Requirements of our report of

even date

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the

Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Madura Micro Finance Limited ("the stCompany") as of March 31 ,2018 in conjunction with our audit of the standalone financial statements of the

Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

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

the internal control over financial reporting criteria established by the Company considering the essential

components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial

Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design,

implementation and maintenance of adequate internal financial controls that were operating effectively for

ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the

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

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

Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting

based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed

to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal

financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the

Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance about whether adequate internal financial controls over financial reporting were established

and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial

controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls

over financial reporting included obtaining an understanding of internal financial controls over financial reporting,

assessing the risk that a material weakness exists, and testing and evaluating the design and operating

effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's

judgement, including the assessment of the risks of material misstatement of the financial statements, whether

due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting 'is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for external

purposes in accordance with generally accepted accounting principles. A company's internal financial control over

financial reporting includes those policies and procedures that (I) pertain to the maintenance of records that, in

reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)

provide reasonable assurance that transactions are recorded as necessary to permit preparation

Auditors Report


of financial statements in accordance with generally accepted accounting principles, and that receipts and

expenditures of the company are being made only in accordance with authorizations of management and directors

of the company; and (3) provide reasonable assurance regarding prevention or timely detection of un authorised

acquisition, use, or disposition of the company's assets that could have a material effect on the financial

statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of

collusion or improper management override of controls, material misstatements due to error or fraud may occur

and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to

future periods are subject to the risk that the internal financial control over financial reporting may become

inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may

deteriorate .

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over

financial reporting and such internal financial controls over financial reporting were operating effectively as at

March 31, 2018, based on the internal control over financial reporting criteria established by the Company

considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Auditors Report






Balance Sheet

Shareholders' Funds

As at31.03.2018

As at31.03.2017

EQUITY AND LIABILITIES

(a) Share Capital

(b) Reserves and Surplus

Non Current Liabilities

(a) Long Term Borrowings

(b) Other Long Term Liabilities

(c) Long Term Provisions

Current Liabilities

(a) Short term borrowings

(b) Trade Payable

Note No

2

3

4

5

6

4,798,033,673

585,736

72,872,849

4,871,492,258

71,947,610

2,332,823,227

2,404,770,837

66,975,210

1,694,523,504

1,761,498,714

18,809,751 7

8

3,434,068,141

585,736

57,275,508

3,491,929,385

(i) Total outstanding dues of Micro and Small Enterprise

(ii) Total outstanding dues of Creditors

other than Micro and Small Enterprises

-

175,292,807

(c) Other Current Liabilities

(d) Short Term Provisions

4,550,899,207

158,212,979

4,903,214,744

4,085,678,742

77,983,179

4,245,376,903

9

10

11,199,735

-

70,515,247

12,179,477,839 9,498,805,002TOTAL

Significant Accounting Policies

The accompanying notes 1 to 39 form an integral part of financial statements

1

Non Current Assets

ASSETS

(a) Fixed Assets

(i) Tangible Assets

(ii) Intangible Assets

34,019,868

2,503,269

(b) Non Current Investments

(c) Deferred Tax Assets (net)

(d) Long Term Loans and Advances

(e) Other non current assets

4,025,766,572

(a) Current Investments

(b) Cash and cash equivalents

(c) Short term loans and advances

(d) Other current assets

8,153,711,267

Current Assets

12,179,477,839 TOTAL

11

12

13

14

15

16

16,900,000

39,040,135

3,790,655,479

142,647,820

17

18

19

20

-

635,146,374

7,371,060,118

147,504,775

20,940,792

275,472

2,670,642,588

16,900,000

32,290,683

2,418,635,380

181,600,261

6,828,162,414

9,498,805,002

50,000,000

839,196,568

5,821,184,283

117,781,563

As per our report of even date

thChennai / Date: 04 May 2018

Sanin Panicker

Company Secretary

Mohan Eddy

Wholetime Director

Tara Thiagarajan

Managing Director

M. Narayanan

President & CFOFor PKF Sridhar & Santhanam LLP

CHARTERED ACCOUNTANTS(FIRM REGISTRATION No:003990S /S200018)

S.Rajeshwari



Profit and Loss

I. Revenue from Operations

II. Other Income

III. Total Revenue

21

22

1,753,058,379

41,891,034

1,794,949,413

2,241,971,325

89,434,708

2,331,406,033

23

24

11 & 12

25

344,626,298

928,694,106

16,278,465

416,841,762

1,706,440,631

262,064,839

744,573,865

27,594,157

265,515,190

1,299,748,051

IV. Expenses:

Employee Benefits Expenses

Finance Cost

Depreciation

Other Expenses

Total Expenses

624,965,402

-

624,965,402

-

624,965,402

233,442,824

-6,749,452

398,272,030

495,201,362

-

495,201,362

-

495,201,362

198,500,000

-5,425,547

302,126,909

V. Profit before exceptional and extraordinary items and tax

VI. Exceptional Items

VII. Profit before extraordinary items and tax

VIII. Extraordinary Items

IX. Profit before tax

X. Tax expense

Current tax

Deferred Tax

XI. Profit or loss for the period from continuing operations

XII. Proift or loss from discontinuing operations

XIII. Tax expense of discontinuing operations

XIV. Profit/loss from discontunuing operations

XV. Profit for the Year

XVI. Earnings per share

(1) Basic

(2) Diluted

(3) Nominal Value of Share

-

-

-

398,272,030

56.15

56.15

10.00

-

-

-

302,126,909

49.29

49.29

10.00

37

37



1



Sanin Panicker

Company Secretary

Mohan Eddy

Wholetime Director

Tara Thiagarajan

Managing Director

M. Narayanan

President & CFO

Year endedYear ended31.03.2018 31.03.2017Note No





Cash Flow

Profit before tax

Add: Depreciation

Provision made for Advances and NPAs

Provision for impairment of advances to subsidiary

Provision for impairment of Investment in subsidiary

Provision made for assets derecognised

Net Loss on foreign currency translation

Less: Net gain on sale of investments

Dividend received from Mutual Funds

624,965,402

16,278,465

54,095,924

-

-

2,491,163

14,137,529

711,968,483

36,876,266

-

Operating profit before changes in operating Assets and Liabilities

Changes in operating assets and liabilities

(Increase)/Decrease in advance to Self Help Groups and other loans

(Increase)/Decrease in other Current Assets and Non Current Assets

(Increase)/Decrease in Term Deposits under Lien

Increase/(Decrease) in Current Liabilities and other provisions

Tax paid net of provisions

Total Cash flow from operating activities A

675,092,217

-2,921,895,934

2,632,967

31,696,612

137,620,639

-218,339,555

-2,293,193,054

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of fixed assets

Redemption of mutual fund

Net gain on sale of investments

Dividend recieved from mutual funds

Total cash flow from investing activities B

-31,585,339

50,000,000

36,876,266

-

55,290,927

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of Shares (including Share Premium)

Long Term Borrowings Taken

Long Term Borrowings Repaid

Short Term Borrowings Repaid/Taken (net)

Total Cash from Financing activities C

Total cash generated during the year (A + B + C)

Cash and Cash Equivalents at the beginning of the Year

Cash and Cash Equivalents at the end of the year

245,000,093

5,720,000,000

-3,913,904,825

7,610,016

2,058,705,284

-179,196,843

796,228,609

617,031,766

563,844,072

-3,004,281,114

35,029,763

36,551,746

-16,841,811

-197,760,601

-2,583,457,945

-31,267,092

-15,573,135

5,676,403

8,973,306

-32,190,518

495,201,362

27,594,157

43,495,171

-

14,900,000

-2,696,909

-

578,493,781

5,676,403

8,973,306

400,000,180

6,000,000,000

-3,274,792,956

933,559

3,126,140,783

510,492,320

285,736,289

796,228,609

Year endedYear ended31.03.2018 31.03.2017

CASH FLOWS FROM OPERATING ACTIVITIES


Cash Flow

Reconciliation of Cash and Cash Equivalent with Balance Sheet

Cash and Bank Balances at the end of the year

Less: Bank Balances not considered as Cash and Cash Equivalent

as defined in AS3 Cash Flow statement

Net Cash and Cash equivalents (as defined in AS3 Cash Flow Statement)

Included in Note No.18

635,146,374

18,114,608

617,031,766

839,196,568

42,967,959

796,228,609



Sanin Panicker

Company Secretary

Mohan Eddy

Wholetime Director

Tara Thiagarajan

Managing Director

M. Narayanan

President & CFO

Year endedYear ended31.03.2018 31.03.2017





Notes

a. Corporate Information

Madura Micro Finance Limited (“the Company”), headquartered in Chennai, is a Company incorporated on

02.09.2005 and registered with the Reserve Bank of India as a Non-deposit accepting Non-Banking Financial

Company (NBFC-ND) with effect from 28.02.2006. The Company got classified as a NBFC-MFI effective

11.12.2013. The Company is primarily engaged in the business of providing loansto the Self Help Group (SHG)

members and other loans.

b. Basis of Preparation

The financial statements have been prepared in accordance with generally accepted accounting principles in

India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects

with Accounting Standards notified under Section 133 of the Companies Act 2013, reads with Rule 7 of the

Companies (Accounts) Rules, the Companies (Accounting Standards) Amendment Rules, 2016 and the provisions

of Reserve Bank of India (RBI) as applicable to NBFC-MFI and a systematically important NBFC-ND. The financial

statements have been prepared on accrual basis and under historical cost convention except interest on loans

which have been classified as Non-Performing Assets (NPA) and is accounted for on cash basis. The accounting

policies followed are consistent with those of previous years.

a. Use of Estimates

The preparation of financial statements requires the Management to make estimates and assumptions

considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of

the financial statements and the reported income and expenses during the reporting period like provision for

employee benefits. Management believes that the estimates used in the preparation of financial statements

are prudent and reasonable. Future results may vary from these estimates.

b. Revenue Recognition

MADURA MICRO FINANCE LIMITED

CIN: U65929TN2005PLC057390

NOTES TO FINANCIAL STATEMENTS

1. Significant Accounting Policies

i.

ii.

iii.

iv.

v.

vi.

Interest receivable on loans to Self Help Groups are accounted for on accrual basis at the agreed rate of

interest. Income on any other charges on non-performing asset is recognised only when realized. Any such

income recognised before the asset became non-performing and remaining unrealised is reversed.

In accordance with Reserve Bank of India Guidelines on Securitisation transactions, gains arising from

assignment/securitisation are amortized over the life of the underlying portfolio loans. In case of loss, the

same is recognised in the Statement of Profit and Loss immediately. Income from excess interest spread is

recognised in the Statement of Profit and Loss net of any losses at the time of actual receipt.

Loan processing fees collected from members are recognised on an upfront basis at the time of

disbursement of the loan.

Interest income on deposits with banks is recognised on time proportion accrual basis taking into account

the amount outstanding and the rate applicable.

Dividend on Mutual fund units is recognised when the right to receive the dividend is established.

All other incomes are accounted for on accrual basis.


Notes

a. Tangible Fixed Assets

All Fixed Assets are stated at historical cost less accumulated depreciation and impairment loss, if any. Cost

comprises the purchase price and any attributable cost of bringing the asset to its working condition for its

intended use.

b. Intangible assets

Computer software are stated at the cost of acquisition and amortized over a period of three years, based on

expected future economic benefits accruing to the Company from the year of acquisition.

c. Depreciation

Depreciation on Tangible Fixed Assets are depreciated on Straight Line Method as per the useful life given in

Schedule II except the following cases where it is depreciated as per the useful lives estimated by management.

5 years

6.67 years

5 years

1 year

Motor Vehicles

Furniture & Fixtures

Electrical Fittings

Temporary Structures

Fixed assets costing less than Rs.5000/- are fully depreciated in the year of purchase.

f. Leases

Leases where the lessor effectively retains, substantially all the risks and benefits of ownership of the leased

item, are classified as operating leases. Operating lease payments are recognised as an expense in the

Statement of profit and loss on a straight line basis over the lease term.

g. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on

which such investments are made, are classified as current investments. All other investments are classified as

long-term investments. Current investments are carried in the financial statements at lower of cost and fair value

determined on an individual investment basis except for investments in the units of mutual funds in the nature of

current investments that have been valued at the net asset value declared by the mutual fund in respect of each

particular scheme, in accordance with the NBFC directions. Long term investments are carried at cost. However,

provision for diminution in value is made to recognise a decline other than temporary in the value of the

investments. On disposal of an investment the difference between carrying amount and net disposal proceeds

are charged or credited to the statement of profit and loss.

h. Borrowing Costs

Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of

funds. Ancillary borrowing costs including processing fee incurred in connection with arrangement of borrowing

are recognised in the period in which they are incurred.


Notes

i. Foreign Currency Transactions

Foreign currency transactions are accounted for at the rate of exchange prevailing on the date of

transactions.

Outstanding foreign currency monetary assets and liabilities are translated at the year end rates.

Gains/losses arising on restatement/settlement are adjusted to the Statement of Profit and Loss as

applicable.

Company has adopted Accounting of derivative taken for hedging foreign currency loan based on Guidance

note on accounting for Derivative Contracts issued by ICAI. As per this guidance note, Fair value changes on

Mark to Market (gains / losses on MTM) of derivative is accounted to Profit & Loss as on closing date and

corresponding foreign currency loan is stated at closing spot rate as exchange fluctuation.

i.

ii.

iii.

Retirement benefits in the form of provident fund are defined contribution schemes. The Company has no

obligation, other than the contribution payable to the respective funds. The Company recognises

contribution payable to the respective funds as expenditure, when an employee renders the related service.

Gratuity liability, which is unfunded, is a defined benefit obligation and is provided for on the basis of an

actuarial valuation on projected unit credit method made at the end of each financial year. Actuarial gains

and losses for defined benefits plans are recognised in full in the period in which they occur in the Statement

of profit and loss.

The company treats accumulated leave expected to be carried forward beyond twelve months as long-term

employee benefit for measurement purposes. Such long-term compensated absences are provided for

based on the actuarial valuation using the projected unit credit method at the end of each financial year.

j. Employee Benefits

i.

ii.

iii.

iv.

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to

be paid to the tax authorities in accordance with the Income Tax Act, 1961, enacted in India.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting

income originating during the current year and reversal of timing differences for the earlier years. Deferred

tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax assets are recognised for deductible timing differences only to the extent that there is a

reasonable certainty that sufficient future taxable income will be available against which such deferred tax

assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax

losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing

evidence that they can be realized against such future taxable profits.

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes down

the carrying amount of deferred tax asset to the extent that is no longer reasonably certain or virtually

certain, as the case may be, that sufficient future taxable income will be available against which deferred tax

asset can be realized.

k. Income Taxes


Notes

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity

shareholders by the weighted average number of equity shares outstanding during the year. For the

purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity

shareholders and the weighted average number of shares outstanding during the year are adjusted for the

effects of all dilutive potential equity shares.

l. Earnings Per Share

A provision is recognized when the Company has a present obligation as a result of past event, it is probable

that an outflow of resources embodying economic benefits will be required to settle the obligation and a

reliable estimate can be made of the amount of the obligation.

m. Provisions

Classification and provisioning of Microfinance and other is being made as below

n. Classification & Provisioning of Loan Portfolio

i.

ii.

Standard asset means the asset in respect of which, no default in repayment of principal or payment of

interest is perceived and which does not disclose any problem nor carry more than normal risk attached to

the business;

Non-Performing asset (NPA) means an asset for which interest/principal payment has remained overdue for

a period of 90 days or more and includes the total Principal outstanding in respect of the loans where

interest/principal repayment has remained overdue for a period of 90 days or more.

Provisioning Norms:

a.

b.

Provision for Standard Advances is made at 0.4% on Standard Assets outstanding

Provision for Non-Performing Assets is created for the total principal outstanding on the loan as under:

Higher of a) 1% of the outstanding loan portfolio ORb) 50% of the aggregate loan where interest/principal

repayment has remained overdue for a period of 90 days or more and 100% of aggregate loan where

interest/principal repayment has remained overdue for a period of 180 days or more

In respect of assets de-recognised, provision is made at the rate of 0.4% of the outstanding amounts of

assets de-recognised from the books of the Company as at the balance sheet date.

The Company securitises out its loan portfolio, subject to the Minimum Holding Period (MHP) criteria and

the Minimum Retention Requirements (MRR) of RBI, to Special Purpose Vehicles (SPVs) in securitisation

transactions. Such securitised portfolio are de-recognised in the balance sheet when they are sold (true sale

criteria being full met with) and consideration is received by the Company. At the time of the deal, the

Company provides liquidity and credit enhancements on the securitised portfolio, as specified by the rating

agencies, not exceeding 20% of the total securitised instruments, in line with RBI guidelines. The Company

also acts as a servicing agent for the securitised deals.

o. Securitisation


2 . SHARE CAPITAL

Authorised

1,00,00,000 Equity Shares of Rs.10/- each

Issued, Subscribed and Paid up

71,94,761 (previous year 66,97,521) Equity Shares of Rs.10/- each

fully paid up

SHARES HELD BY A SHAREHOLDER HOLDING MORE THAN 5%

Name of the shareholder

Ms.Tara Thiagarajan

A.V.Thomas and Co. Ltd

Midland Rubber & Produce Company Ltd

Employees' Welfare Trust

Elevar Equity Mauritius

Mr. M Narayanan

Reconciliation of the number of shares outstanding at the beginning and end of the year

Number of Shares outstanding at the beginning of the year

Number of shares issued during the year

Number of Shares outstanding at the end of the year

31.03.2017

100,000,000

66,975,210

The Company has issued only one class of shares, viz., Equity Shares. Each Equity Share has a face value of Rs.10/-

each and is entitled to one vote. On liquidation each share is entitled to participate in the assets proportionate to

the paid up value of the share.

3. RESERVES AND SURPLUS

Share Premium Account

As per Last Balance Sheet

Add: Received during the year on shares issued

Statutory Reserve (as required under Sec.45IC of RBI Act 1934)


Add: Transfer from Profit and Loss Account

596,518,893

240,027,693

836,546,586

221,815,000

79,700,000

301,515,000

31.03.2018

100,000,000

71,947,610

6,697,521

497,240

7,194,761

5,557,517

1,140,004

6,697,521

207,918,753

388,600,140

596,518,893

160,815,000

61,000,000

221,815,000

Surplus, Balance in Profit and Loss Account


Add: Profit after tax for the year

Less: Transfer to Statutory Reserve (as required under Sec.45IC of

RBI Act 1934)

Total of Reserves and Surplus

876,189,611

398,272,030

1,274,461,641

79,700,000

1,194,761,641

2,332,823,227

635,062,702

302,126,909

937,189,611

61,000,000

876,189,611

1,694,523,504

4. LONG TERM BORROWINGS

I. Debentures

a) Secured

14.15% Non-convertible Debentures - Privately placed, Listed.

Secured by hypothecation of loans granted to Self Help Groups.

The maturity date of the Debentures is 13-Sep-2020, with 99.99%

to be redeemed on13-Sep-2019 and balance on maturity date.

366,000,000

366,000,000

%

32.39%

16.11%

16.12%

6.89%

12.04%

5.06%

No. of shares

2,330,574

1,159,435

1,159,436

495,667

865,916

364,366

No. of shares

2,442,199

855,002

855,004

495,667

865,916

364,366

%

36.46%

12.77%

12.77%

7.40%

12.93%

5.44%

Notes


II. Term Loans from Banks and Financial Institutions

Secured From Banks

Axis Bank

City Union Bank

DCB Bank

Dhanalakshmi Bank

Federal Bank

IDBI Bank

South Indian Bank

Canara Bank

Lakshmi Vilas Bank

Kotak Mahindra Bank

Dena Bank

Indian Bank

Andhra Bank

Bank of Baroda

Bandhan Bank

Bank of Maharashtra

RBL Bank Limited

State Bank of Hyderabad

461,428,575

48,751,446

148,311,500

248,400,909

250,000,000

468,508,000

149,999,810

-

33,787,894

100,000,000

175,000,000

138,888,495

-

226,666,671

250,000,000

-

300,000,000

-

214,285,715

35,473,274

120,830,500

328,027,990

-

590,476,180

104,545,450

34,285,711

92,574,779

50,000,000

115,000,000

217,417,455

13,508,695

436,666,667

-

1,934,998

62,500,000

94,443,171

14.84% Non-Convertible Debentures - Privately placed, Listed

Secured by exclusive charge on the loans created out of the

proceeds of the debentures. The NCD is redeemable in one bullet

payment on 08-May-2018.


Secured by exclusive charge on loans created out of the proceeds

of the debentures and immovable properties. The NCD is

redeemable in one bullet payment on 31-July-2020.

11.40% Non-convertible Debentures - Privately placed, Un-listed

Secured by exclusive charge on loans created out of the proceeds

of the debentures and immovable properties. The NCD is

redeemable in one bullet payment on 04-Dec-2020.

b) UnSecured

14.25% Non-Convertible Debentures - Privately placed, Listed The

Debentures are unsecured and are redeemable on 29-Mar-2024

400,000,000 400,000,000

400,000,000 -

330,000,000 -

500,000,000 500,000,000

State Bank of Travancore

IDFC Bank

Union Bank of India

State Bank of India

Vijaya Bank

From Financial Institutions


Micro Units Development and Refinance Agency Ltd

Au Financiers India Ltd


Hinduja Leyland Finance

-

830,952,388

263,636,364

350,283,321

-

1,259,166,666

53,200,000

-

277,425,798

200,000,000

150,000,000

173,809,524

197,272,727

397,786,928

22,500,000

1354166666

180,400,000

99,999,999

99,791,197

-

31.03.201731.03.2018

Notes


Mahindra Finance


Reliance Commercial Finance Limited


Maanaveeya Development and Finance (P) Ltd




L&T Finance


Grand Total

III. Less: Payable within 12 months disclosed under other

Current Liabilities

All the above loans are secured by a charge on the advances

granted to Self Help Groups from the proceeds of the Loans.

The Terms of repayment of the Term Loans are as under

461,732,217

25,000,004

-

49,974,162

-

-

58,400,000

249,327,044

-

134,787,621

9,209,628,885

4,411,595,212

4,798,033,673

-

56,249,998

261863420

89929172

13333332

101240809

58860000

265600000

33333333

74623456

7,408,731,146

3,974,663,005

3,434,068,141

Name of the Bank /

Financial Institution

Rate of

interest

Tenor of Loan

in Months

Mode of

RepaymentInstalment Bal. o/s as on

31-03-2018

Nabkisan Finance Ltd

Axis Bank

Axis Bank

Axis Bank

Bandhan Bank

Bank of Baroda

City Union Bank

City Union Bank

Dena Bank

DCB Bank

DCB Bank

DCB Bank

Dhanalakshmi Bank

Dhanalakshmi Bank

Dhanalakshmi Bank

12.50%

10.90%

10.20%

10.10%

10.80%

10.20%

12.75%

11.00%

10.50%

11.08%

11.08%

10.40%

12.60%

11.85%

11.40%

36

24

24

24

24

35

36

36

33

26

26

26

36

36

36

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Monthly

Monthly

Monthly

Quarterly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

8,333,333

35,714,285

35,714,286

20,000,000

35,714,285

13,333,333

1,562,620

833,333

25,000,000

2,083,333

2,083,333

5,000,000

2,800,000

4,170,000

5,600,000

49,974,162

71,428,575

250,000,000

140,000,000

250,000,000

226,666,671

18,751,446

30,000,000

175,000,000

16,656,000

16,656,000

114,999,500

32,800,000

74,961,820

140,639,089

Sl.

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

Federal Bank

Hero FinCorp Ltd

Hero FinCorp Ltd


IDBI Bank

IDBI Bank

IDBI Bank

IDBI Bank

IDFC Bank

IDFC Bank

IDFC Bank

10.65%

12.75%

10.50%

10.75%

11.50%

11.75%

11.60%

10.50%

12.75%

12.75%

11.40%

24

26

36

36

24

24

24

24

24

24

24

Quarterly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

35,714,285

4,742,449

6,567,440

5,555,555

14,300,000

4,762,000

4,762,000

12,000,000

7,142,860

4,761,905

4,166,666

250,000,000

27,425,798

250,000,000

200,000,000

142,700,000

52,380,000

71,428,000

202,000,000

7,142,860

23,809,520

66,666,672

16

17

18

19

20

21

22

23

24

25

26

31.03.201731.03.2018

Notes


IDFC Bank

IDFC Bank

IDFC Bank

IDFC Bank

Indian Bank

Kotak Mahindra Bank

Kotak Mahindra Bank

Lakshmi Vilas Bank Ltd




Mahindra Finance

Mahindra Finance

Mahindra Finance

Mahindra Finance

Mahindra Finance

MAS Financial Services Ltd

MUDRA

NABARD

NABARD

NABARD

NABARD

NABARD

NABARD

NABARD

RBL Bank Ltd

RBL Bank Ltd

RBL Bank Ltd

RBL Bank Ltd

South Indian Bank

South Indian Bank

South Indian Bank

Tata Capital Financial Services Ltd



Sundaram Finance Ltd



State Bank of India (Previously SBH)

10.90%

10.80%

10.90%

10.50%

11.15%

10.40%

10.15%

12.65%

12.65%

11.85%

11.85%

12.00%

12.00%

10.75%

10.75%

10.75%

12.00%

10.25%

10.50%

11.50%

11.50%

11.50%

11.00%

11.00%

10.95%

10.15%

10.85%

11.05%

10.85%

13.00%

12.15%

11.00%

12.10%

12.10%

10.00%

13.00%

13.00%

11.15%

10.95%

24

24

24

24

39

24

24

36

36

36

36

24

24

24

24

24

24

36

36

36

36

60

60

60

60

24

24

24

24

36

36

39

24

24

24

36

36

36

39

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Half Yearly

Half Yearly

Half yearly

Half yearly

Half yearly

Half yearly

Half yearly

Monthly

Monthly

Monthly

Monthly

Quarterly

Quarterly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

8,333,333

8,333,333

8,333,333

8,333,333

5,555,555

2,083,333

4,166,667

833,334

1,944,447

1,515,156

606,062

2,354,018

4,707,674

4,648,784

11,618,227

2,323,645

2,083,333

10,600,000

16,666,665

25,000,000

33,333,333

37,500,000

75,000,000

60,000,000

60,000,000

2,272,727

2,272,727

2,272,727

9,090,909

9,090,910

4,545,500

8,333,334

416,600

3,749,400

2,083,333

1,685,000

1,685,000

2,400,244

2,800,000

158,333,335

175,000,001

200,000,000

200,000,000

138,888,495

25,000,000

75,000,000

2,500,004

5,833,338

18,181,822

7,272,730

28,560,664

65,269,202

88,637,887

231,141,906

48,122,559

25,000,004

53,200,000

16,666,665

50,000,000

100,000,001

137,500,000

275,000,000

280,000,000

400,000,000

200,000,000

27,272,727

34,090,909

38,636,364

18,181,810

31,818,000

100,000,000

900,000

7,500,000

50,000,000

17,377,802

24,622,998

92,786,821

60,865,393

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

State Bank of India

State Bank of India (Previously SBT)

Union Bank of India

Union Bank of India


Incofin - Rural Impulse Fund NCD

AAV SARL - 1 NCD

AAV SARL - 1 NCD

Hinduja Leyland Finance Ltd - NCD

Northern Arc Capital Ltd - NCD

11.00%

10.95%

11.80%

10.25%

12.80%

14.84%

14.15%

11.40%

11.50%

14.50%

35

36

36

36

96

36

60

36

36

84

Monthly

Monthly

Monthly

Monthly

Quarterly

Bullet

Bullet

Bullet

Bullet

Bullet

16,607,000

4,545,000

5,455,000

7,576,000

11,075,520

198,502,928

90,915,000

81,818,182

181,818,182

249,327,044

400,000,000

366,000,000

330,000,000

400,000,000

500,000,000

9,209,628,885

66

67

68

69

70

71

72

73

74

75

Notes


Name of the Bank /

Financial Institution

Rate of

interest

Tenor of Loan

in Months

Mode of

RepaymentInstalment Bal. o/s as on

31-03-2018

Sl.

5 . OTHER LONG TERM LIABILITIES

Flexi Grant from SIDBI

6 . OTHER LONG TERM PROVISIONS

Provision for gratuity

Provision for leave encashment

Provision for Standard Assets

Provision for Assets Derecognised

Provision for Impairment on Investment in Subsidiary

Provision for Impairment of Advance to Subsidiary

Provision for MTM Loss

7 . SHORT TERM BORROWINGS

CASH CREDIT FROM BANKS :

Secured

South Indian Bank - Cash Credit

The above limit is secured by available current assets both present

and future. The Cash Credit/OD facility limited to Rs. 2 Crores and is

renewable every year and carries interest at 11.35% per annum.

9,042,486

6,363,519

15,132,974

686,814

14,900,000

7,412,091

19,334,965

72,872,849

51,814 17,452,516

585,736

585,736

585,736

585,736

City Union Bank - Overdraft

The above limit is secured by a charge on the loans granted to Self

Help Groups out of the proceeds of the loan. The Cash Credit/OD

facility limited to Rs. 1 Crores and is renewable every year and carries

interest at 12.75% per annum.

1,357,235

18,809,751

6,658,944

4,192,240

24,112,233

-

14,900,000

7,412,091

-

57,275,508

11,147,921

11,199,735

8. TRADE PAYABLES

Payable on account of Securitization

Insurance Payable

Sundry Creditors

69,581,412

51,705,006

54,006,389

175,292,807

20,468,718

49,609,293

437,236

70,515,247

9. OTHER CURRENT LIABILITIES

Current maturities of Long Term Debt

(Refer Note No.4 for Security and repayment)

Interest accrued but not due

Statutory Liabilities

Employee Benefit Liabilities

Others

4,411,595,212

75,681,236

11,330,888

39,894,975

12,396,897

4,550,899,207

3,974,663,005

52,355,811

6,785,001

24,306,350

27,568,575

4,085,678,742

10. SHORT TERM PROVISIONS

Others

Provision for Tax (Net of Advance Tax)



Provision for Non Performing Assets

15,350,268

2,064,916

29,254,279

111,543,516

158,212,979

-

260,567

34,592,440

43,130,172

77,983,179

31.03.201731.03.2018

Notes


Fre

eh

old

La

nd

Bu

ilid

ing

sP

lan

t &

Eq

uip

me

nt

Fu

rnit

ure

&

Fit

tin

gs

Ve

hic

les

Off

ice

Eq

uip

me

nt

Ele

ctr

ica

l

Fit

tin

gs

Co

mp

ute

rs

11

. TA

NG

IBL

E A

SS

ET

S

GR

OS

S B

LO

CK

-AT

CO

ST

As

at

1 A

pri

l 2

01

6

Ad

dit

ion

s

Dis

po

sals

As

at

31

Ma

rch

20

17

Ad

dit

ion

s

Dis

po

sals

As

at

31

Ma

rch

20

18

- - - -

1,7

06

,35

5 -

1,7

06

,35

5

- - - -

2,1

79

,40

5 -

2,1

79

,40

5

1,8

50

,75

7

49

,46

4 -

1,9

00

,22

1 - -

1,9

00

,22

1

5,2

19

,85

8

2,7

16

,55

5 -

7,9

36

,41

3

2,1

71

,27

9 -

10

,10

7,6

92

AC

CU

MU

LA

TE

D D

EP

RE

CIA

TIO

N

As

at

1 A

pri

l 2

01

6

Ad

dit

ion

s

Dis

po

sals

As

at

31

Ma

rch

20

17

Ad

dit

ion

s

Dis

po

sals

As

at

31

Ma

rch

20

18

- - - - - - -

60

1,0

22

25

5,1

69

-

85

6,1

91

21

1,0

83

-

1,0

67

,27

4

NE

T B

LO

CK

As

at

31

Ma

rch

20

17

As

at

31

Ma

rch

20

18

-

1,7

06

,35

5

-

2,1

54

,77

5

3,0

17

,17

2

2,1

14

,86

1 -

5,1

32

,03

3

2,1

00

,19

6 -

7

,23

2,2

29

- - - -

24

,63

0 -

24

,63

0

1,0

44

,03

0

83

2,9

47

2,8

04

,38

0

2,8

75

,46

3

4

,53

7,3

47

- -

4

,53

7,3

47

- -

4

,53

7,3

47

3,9

64

,12

6

38

3,3

65

-

4,3

47

,49

1

18

6,8

18

-

4,5

34

,30

9

18

9,8

56

3,0

38

1

1,4

68

,93

8

1,1

46

,60

7 -

12

,61

5,5

45

1,5

08

,92

8 -

14

,12

4,4

73

11

,15

2,7

49

71

4,9

77

-

11

,86

7,7

26

5

09

,51

4

-

12

,37

7,2

40

74

7,8

19

1,7

47

,23

3

1,3

88

,96

3

- -

1,3

88

,96

3

98

,79

8 -

1,4

87

,76

1

78

0,5

63

51

3,6

49

33

3,2

43

27

5,1

57

-

60

8,4

00

36

5,7

12

-

97

4,1

12

27

,39

2,5

11

12

,94

6,4

50

-

4

0,3

38

,96

1

20

,64

4,3

33

-

60

,98

3,2

94

15

,37

4,1

44

24

,18

6,4

09

1

6,2

00

,37

6

8,7

64

,44

1 -

24

,96

4,8

17

11

,83

2,0

68

-

36

,79

6,8

85

Te

mp

ora

ry

Str

uctu

res

in R

en

ted

Pre

mis

es

-

14

,40

8,0

16

-

14

,40

8,0

16

-

-

14

,40

8,0

16

- - -

14

,40

8,0

16

-

14

,40

8,0

16

- -

14

,40

8,0

16

Pa

rtic

ula

rsG

ran

d T

ota

l

51

,85

8,3

73

31

,26

7,0

92

-

83

,12

5,4

66

28

,30

9,0

98

-

11

1,4

34

,56

4

35

,26

8,6

88

26

,91

5,9

86

-

62

,18

4,6

74

1

5,2

30

,02

1 -

77

,41

4,6

95

20

,94

0,7

92

34

,01

9,8

68


Notes

12. INTANGIBLE ASSETS

Gross Block-At Cost

As at 1 April 2016

Additions

Disposals

As at 31 March 2017

Additions

Disposals

As at 31 March 2018

Software

Micro

Eduction

Products

Total

20,585,833

-

-

20,585,833

3,276,241

-

23,862,074

9,618,959

-

-

9,618,959

-

-

9,618,959

10,966,874

-

-

10,966,874

3,276,241

-

14,243,115

Accumulated Depreciation

As at 1 April 2016

Additions

Disposals

As at 31 March 2017

Additions

Disposals

As at 31 March 2018

19,632,190

678,171

-

20,310,361

1,048,444

-

21,358,805

9,617,997

962

-

9,618,959

-

-

9,618,959

10,014,193

677,209

-

10,691,402

1,048,444

-

11,739,846

Net Block

As at 31 March 2017

As at 31 March 2018 275,472

2,503,269

-

-

275,472

2,503,269

14,900,000

2,000,000 2,000,000

16,900,000

30,754,700

1,535,983

32,290,683 39,040,135

38,670,136

369,998

13. NON CURRENT INVESTMENTS

Trade Investments

a) Investment in Equity Shares - Unquoted at cost

i) In Subsidiary Company

14,90,000 Equity Shares of Madura Micro Education Pvt Ltd (at face value)

ii) In other companies

2,00,000 Equity Shares of Rs.10/- each in Alpha Micro Finance Consultants P Ltd

14. DEFERRED TAX ASSETS (NET)

(i) Deferred Tax Asset

On account of provision made

allowable on basis of payment

On Account of depreciation

14,900,000

16,900,000

31.03.2018 31.03.2017

7,412,091

3,162,794

7,412,091

-

15. LONG TERM LOANS AND ADVANCES

i) Loans and Advances to Related Parties


ii) Loans and Advances to Others

Secured

SME Loan Against Property - Considered Good


11,181,699

91,967,417

29,932,798

9,565,906

142,647,820

16. OTHER NON CURRENT ASSETS

Other Deposits and Advances

Bank Balance in earmarked deposit account

Under lien to banks for various credit facilities granted

Under lien for Securitisation

Advance Tax (Net of Provision for Tax)

Cash on hand

Bank balances in current account

Bank Balance in earmarked Deposit account


Other deposits with bank

17. CURRENT INVESTMENT

-

Investment in Units of Mutual Fund - unquoted

(Previous year 18,779.023 units) of UTI Liquid Fund - Growth Plan

18. CASH AND CASH EQUIVALENTS

186,209

416,675,694

18,114,608

200,169,863

635,146,374

Microfinance and other loans repayable within 12 months

Secured


Unsecured

Microfinance Loans - Considered Good

Other Loans - Considered Good

Microfinance Loans - Considered Doubtful

19. SHORT TERM LOANS AND ADVANCES

809,001

7,039,413,770

273,298,941

57,538,406

7,370,251,117

7,371,060,118

-

Notes

3,734,665,083

45,415,511

3,790,655,479

2,409,163,370

2,059,919

2,418,635,380

Unsecured



9,241,997

144,168,594

18,870,763

9,318,907

181,600,261

50,000,000

50,000,000

3,020

146,225,589

42,967,959

650,000,000

839,196,568

-

5,742,290,130

38,417,117

40,477,036

5,821,184,283

5,821,184,283 Short Term Loans and Advances Total

Advances recoverable in cash or in kind or for value to be received

Unsecured Considered Good

Due by others



Under lien for Securitization

20. OTHER CURRENT ASSETS

12,394,186

125,132,989

9,977,600

147,504,775

16,966,855

100,814,708

-

117,781,563

Interest on Loans

Income on Securitised Portfolio (Excess Interest Spread)

Interest from Banks

Processing and other charges

Commission Received

21. REVENUE FROM OPERATIONS

2,105,673,813

3,618,727

21,091,475

105,146,543

6,440,767

2,241,971,325

1,629,278,379

17,577,060

29,723,507

76,479,433

-

1,753,058,379


31.03.201731.03.2018

Notes

Bad Debts recovered

Dividend received


Provision written back on Standard Assets

Others

22. OTHER INCOME

18,306,318

-

36,876,266

14,317,420

19,934,704

89,434,708

31.03.2018 31.03.2017

15,322,400

8,973,306

5,676,403

-

11,918,925

41,891,034

Salaries and Wages

Honorarium paid

Contribution to Provident Fund and Other Funds

Contribution to Employees State Insurance

Provision for Leave Encashment

Provision for Gratuity

Staff Insurance & Welfare Expenses

23. EMPLOYEE BENEFIT EXPENSES

276,864,897

21,203,937

22,583,402

6,113,193

4,500,488

5,596,676

7,763,705

344,626,298

211,101,542

19,934,966

17,560,712

4,305,479

1,919,301

2,394,286

4,848,553

262,064,839

Interest Expenses

Interest on Non Convertible Debentures

Interest on Term Loans

Interest on Cash Credit

Other Interest

Other Borrowing Cost

Processing Charges

Bank charges

Net Loss/Gain from Foreign Currency


24. FINANCE COST

223,862,905

668,467,320

146,705

1,509,173

16,292,650

4,277,824

928,694,106

111,539,412

598,763,642

285,042

66,438

31,221,000

2,698,331

744,573,865

Office Rent

Rates and Taxes

Electricity charges

Insurance

Auditor's Remuneration

For Audit

For Certification and other services

Office Maintenance

Bad Debts written off

Professional Fees

Provision on Standard assets


Provision on Assets Derecognised

Impairment of investment in Subsidiary Company

Directors Sitting Fees

Travelling expenses

Corporate Social Responsibility Expenses (See Note No.36)

Other Expenses

25. OTHER EXPENSES

23,600,048

261,633

3,278,848

849,154

1,090,000

5,450

8,295,664

135,720,141

62,595,409

-

68,413,344

2,491,163

-

3,137,175

35,706,527

5,867,251

65,529,955

416,841,762

16,805,696

53,528

2,853,172

424,247

952,500

342,000

6,997,018

39,263,561

60,486,891

6,472,589

37,022,582

-2,696,909

14,900,000

3,139,509

26,287,666

2,029,913

50,181,227

265,515,190

14,137,529 -


26. CONTINGENT LIABILITIES

Notes

i) Income Tax and PF demands

SI Details of Demand Forum where dispute is

pending

31-Mar-17

(Rs.)

31-Mar-18

(Rs.)

01 Penalty under Income Tax Act,

1961 - AY 2007-08

High Court of Judicature of

Madras

7,101,923 7,101,923

02 Demand under Income Tax Act,

1961 - AY 2014-15

Assessing Officer due to

Tribunal having set aside the

original order

2,742,160 2,742,160

03 Demand under Employee Provident

Fund Act, 1952 for 2010-11

EPF Appellate Tribunal 2,537,020 2,537,020

ii) Corporate Guarantee

The Company has given corporate guarantee in favour of National Skill Development Centre in respect of the loan

granted by them to the subsidiary company, Madura Micro Education Private Limited. The amount of loan

outstanding as on 31st March 2018 in the books of Subsidiary is Rs. 2,02,08,924.

27. The appointment and payment of remuneration to the Managing Director for the period from 26th Feb 2012 to 31st

Mar 2018 is subject to the approval of the Central Government. A sum of Rs. 3,04,10,424 (excluding gratuity) has

been paid as remuneration to the Managing Director for the period Feb 2012 to Mar 2018. The Company has taken

necessary action in this matter and is confident of obtaining the approval shortly. Hence no adjustments have been

made to the financial statements towards this.

28. RELATED PARTY TRANSACTIONS

List of Related Parties

i. Madura Micro Education Private Limited - Subsidiary Company

ii. Scimergent Analytics and Education Private Limited - Company under common control

iii. Scisphere Analytics India Private Limited - Company under common control

iv. Microcredit Foundation of India - Company under common control

v. Midland Rubber and Produce Company Limited - Companies in which directors can exercise significant

influence

vi. A. V. Thomas and Co. Limited - Companies in which directors can exercise significant influence

vii. Ms. Tara Thiagarajan - Key Management Personnel

viii. Mr. Mohan Eddy - Key Management Personnel

ix. Mrs. Pamela Mohan - Relative of Key Management Personnel

Particulars*

Remuneration to Key Managerial Personnel

i. Ms. Tara Thiagarajan - Managing Director

ii. Mr. Mohan Eddy - Whole Time Director

Professional Fees

i. Scimergent Analytics and Education Pvt Ltd

ii. Scisphere Analytics India Private Limited

Rent Paid

i. Mrs. Pamela Mohan

Reimbursements

i. Madura Micro Education Private Ltd

Details of Transactions with related parties

6,729,600

4,913,000

15,473,750

4,485,500

1,620,000

1,549,915

6,488,844

4,380,000

18,050,000

3,965,000

1,620,000

2,431,183

i. Amount due from Subsidiary Company, Madura Micro

Education Pvt Ltd

Less: Provision made

ii. Corporate Guarantee given on account of Madura Micro

Education Pvt Ltd

Details of Balances with related parties

7,412,091

7,412,091

20,208,924

7,412,091

7,412,091

20,208,924

*Amounts exclusive of taxes

31.03.2018 31.03.2017


Notes

29. The Company has invested Rs 1,49,00,000 in a wholly owned subsidiary, Madura Micro Education Private

Limited. The Company has also advanced Rs 74,12,091 to the said subsidiary company. The net worth of the

subsidiary company as at 31st March 2018 is negative. However in the opinion of the Management, the

subsidiary is in a nascent stage of its development and having regard to its prospects, the Management is

confident the net worth would become positive. As a measure of abundant caution, provision has been made

in the books for entire amount of investment and advance to the subsidiary.

30. The Company primarily operates in one segment - viz., financing of Self Help Groups. There are no other

reportable segments as required under Accounting Standard 17.

Currency Nature of

Transaction

USD External Commercial

Borrowing

Foreign

Currency

Indian

Rupees

31.3.2017

The above exposure is hedged fully for interest rate risks and forex rate risk by a currency swap agreement with a bank.

USD 3.83 Million 249,327,044

Foreign

Currency

Indian

Rupees

31.3.2018

265,600,000 USD 4 Million

31. Foreign Currency exposures recognised by the Company that have been hedged are as under:

The Company has an unfunded defined benefit gratuity plan.

Details of Defined Benefit - Gratuity Plan

Fair Value of Plan Assets

Present value of unfunded obligation

Less: Unrecognised past service cost

Plan asset/(liability)

Current

Non-Current

Change in the present value of Defined Benefit Gratuity Plan

Opening defined benefit obligation

Interest cost

Current Service cost

Actuarial (gains)/losses on obligation

Closing defined benefit obligation

Principal Assumptions used in determining Defined Benefit

Gratuity Plan

Discount Rate

Expected rate of return on plan assets

Salary increment rate

Attrition rate

32. POST EMPLOYMENT BENEFITS

-

12,798,148

-

-12,798,148

3,755,662

9,042,486

7,884,493

5,596,676

-683,021

12,798,148

6.94%

NA

10%

30%

-

7,884,493

-

-7,884,493

1,225,549

6,658,944

5,824,822

2,394,286

-334,615

7,884,493

6.80%

NA

10%

22%

Details of Other Defined Benefit Plan

Leave Encashment

Fair Value of plan assets




Current

Non-Current

Change in present value of Other Defined Benefit Plan


-

9,934,983

-

-9,934,983

3,571,464

6,363,519

6,223,075

-

6,223,075

-

-6,223,075

2,030,835

4,192,240

4,578,199


Notes

Interest cost




Principal Assumptions used in determining Defined Benefit Gratuity Plan

Discount Rate



Attrition rate

Proportion of leave availed

Disclosures have been made to the extent provided by the actuary.

4,500,488

-788,580

9,934,983

6.94%

NA

10%

30%

10%

1,919,301

-274,425

6,223,075

6.80%

NA

10%

22%

10%

33. PROVISIONS AND CONTINGENCIES

Provision is recognised in the Balance Sheet when, the Company has a present obligation as a result of a

past event and it is probable that an outflow of economic benefits will be required to settle the obligation

and a reliable estimate of the amount of the obligation can be made.

i) Provision for Standard Assets

Carrying amount at the beginning of the period

Reversal of provision made during the period

Amounts used (i.e., incurred and charged against the provision)

Amount of provision at the end of the period

ii) Provision for Non Performing Assets


Additional provision made during the period


Unutilised amounts reversed during the period


58,704,673

-14,317,420

-

44,387,253

43,130,172

68,413,344

-

111,543,516

52,232,084

6,472,589

-

58,704,673

6,107,590

37,022,582

-

43,130,172

iii) Provision for assets derecognised






260,567

2,751,730

-

260,567

2,751,730

2,957,476

-

-

2,696,909

260,567

34 . Earnings In Foreign Exchange Nil

35. Expenditure In Foreign Currency

Nil

1,745,729

14,609,382

11,075,520

Nil

Nil

1,138,069

13,565,711

Nil

The company has made contributions towards Corporate Social Responsibility as detailed below36.

Travelling Expenses

Professional Charges

Interest and Finance charges

Repayment of External Commercial Borrowings

7,346,718

5,867,251

a) Gross amount required to be spent by the company during the year

b) Amount spent during the year

SI Particulars In cash TotalYet to be paid in cash

01

02

Construction/acquisition of any asset

On Purpose other than (1) above

-

5,867,251

-

-

-

5,867,251

31.03.2018 31.03.2017


NotesNotes

Earnings per Share - Basic and Diluted37.

Profit after Tax

Weighted average of number of equity shares of face value of Rs.10/- each

Earnings per share - Basic

Earnings per share - Diluted

398,272,030

7,092,588

56.15

56.15

302,126,909

6,129,081

49.29

49.29

38. Change in Accounting Policy

The Company had not adopted the Guidance Note on accounting for Derivative contracts in the earlier year

and hence there has been a change in accounting policy to give effect to the ICAI's Guidance Note. Also refer

39(xxxii)(3)(c).

a) Debentures - Secured

b) Debentures - Unsecured

c) Deferred Credits

d) Term Loans

e) Inter-corporate Loan and borrowing

f) Commercial Paper

g) Public deposits

h) Other Loans - Overdraft

Amount

Outstanding

(Rs. in lakhs)

Amount

Overdue

(Rs. in lakhs)

Amount

Outstanding

(Rs. in lakhs)

Particulars

39. DETAILS REQUIRED UNDER RESERVE BANK OF INDIA,NBFC DIRECTIONS

S.

No

Amount

Overdue

(Rs. in lakhs)

i) Loans and Advances availed by NBFCs inclusive of interest accrued there on but not paid

15,436.74

5,000.00

Nil

72,416.36

Nil

Nil

Nil

188.10

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

31-3-2018 31-3-2017

7,938.95

5,003.90

Nil

61,668.01

Nil

Nil

Nil

112.00

LIABILITIES SIDE

(a) In the form of unsecured debentures

(b) In the form of partly secured debentures,

i.e. debentures where there is a shortfall in

the value of security

c) Other public deposits

ii) Break up of 1(g) above (Outstanding public deposits inclusive of interest accrued thereon but not

paid)

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

a) Secured

b) Unsecured

iii) Break up of Loans and Advances including bills receivable (other than those included in 4 below)

(Net of NPA Provision)

39.72

110,387.88

Nil

Nil

Nil

Nil

Nil

81,892.77

ASSETS SIDE

iv) Break up of Leased Assets and stock on hire and hypothecation loans counting towards EL/HP

activities

(i) Leased assets including lease rentals under sundry debtors

a) Financial Lease

b) Operating Lease

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

(ii) Stock on hire including hire charges under sundry debtors

a) Asset on hire

b) Repossessed assets

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil


NotesNotes

(iii) Hypothecation Loans counting towards

EL/HP activities

a) Loans where assets have been repossessed

b) Loans other than (a) above

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

v) Break up of Investments

Current Investments

1. QUOTED

i) Shares: (a) Equity

(b) Preference

ii) Debentures and Bonds

iii) Units of mutual funds

iv) Government securities

v) Others

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

2. UNQUOTED


(b) Preference




v) Others

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Long Term Investments

1. QUOTED


(b) Preference




v) Others

2. UNQUOTED


(b) Preference




v) Others

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

169.00

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

169.00

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

500.00

Nil

Nil

vi) Borrower group-wise classification of all leased assets, stock-on-hire and loans and advances

CATEGORYAmount net of NPA provisions

Secured Unsecured Total

Amount net of NPA provisions


1. Related Parties

a) Subsidiaries

b) Companies in the same group

c) Other related parties

2. Other than related parties

TOTAL

Nil

Nil

Nil

39.72

39.72

Nil

Nil

Nil

110,387.88

110,387.88

-

-

-

110,427.60

110,427.60

-

-

-

81,892.77

81,892.77

Nil

Nil

Nil

81,892.77

81,892.77

31-3-2018 31-3-2017

Nil

Nil

Nil

Nil

Nil


Notes

vii) Investor group-wise classification of all investments (current and long term) in

shares and securities (both quoted and unquoted)

CATEGORY

31-3-201 8

1. Related Parties

a) Subsidiaries

b) companies in the same group



TOTAL

149.00

Nil

Nil

20.00

169.00

-

Nil

Nil

20.00

20.00

Market Value /

NAV or face Value

Book Value Net

of provisions

31-3-2017

149.00

Nil

Nil

520.00

669.00

Market Value /

NAV or face Value

Book Value Net

of provisions

viii) Other Information




Secured Unsecured Total(i) Gross Non-Performing Assets

(a) Related Parties

(b) Other than related parties

(ii) Net Non-Performing Assets

(a) Related Parties


(iii) Assets acquired in satisfaction

of debts

Nil

Nil

Nil

Nil

Nil

Nil

575.38

Nil

(540.06)

Nil

Nil

575.38

Nil

(540.06)

Nil

Nil

Nil

Nil

Nil

Nil

ix) Customer Complaints

a) Number of Complaints pending as the beginning of the year

b) Number of Complaints received during the year

c) Number of Complaints redressed during the year

d) Number of Complaints pending as at the end of the year

x) Details of Registration with Financial Regulators

a) Ministry of Corporate Affairs

b) Reserve Bank of India

c) Microfinance Institutional Network

CIN No.U65929TN2005PLC057390

N-07.00754

20

-

Nil

Nil

520.00

520.00

31-3-201 8 31-3-201 7

Nil

404.77

Nil

Nil

Nil

Nil

404.77

Nil

Nil

Nil

31.3.2018 31.3.2017

Nil

45

45

Nil

Nil

50

50

Nil

Not applicable

Not applicable

(CARE) BBB+ Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

(CARE) BBB+ Stable

(CARE) BBB+ Stable

M2+

Not applicable

xi) Ratings assigned by Credit Rating Agencies

Commercial Paper

Working Capital Facility (Cash credit/WCDL)

Long Term Bank Facilities


14.84% Non-Convertible Debentures (allotted in May 2015)

14.15% Non-Convertible Debentures (allotted in Aug 2015)

14.50% Non-Convertible Debentures (allotted in Mar 2017)

11.40% Non-Convertible Debentures (allotted in Aug 2017)

11.50% Non-Convertible Debentures (allotted in Dec 2017)

MFI Grading

Perpetual Debt

Not applicable

Not applicable

(CARE) BBB+ Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

Nil

Nil

Nil

M2

Not applicable


NotesNotes

Percentage of NPAs to total

advances in that sector

31-3-2018

52.08%

47.92%

-0.48%

404.77

574.84

404.23

575.38

-26.53

-109.30

404.23

-540.06

431.30

684.14

-

1,115.44

xii) Concentration of Advances, Exposures and NPAs

xiii) Sector wise NPAs as at the end of the year

a) Agriculture and Allied Activities

b) MSME

xiv) Movement of NPAs

a) Net NPAs to total advances (%)

b) Movement of NPAs (Gross)

i) Opening Balance

ii) Additions during the year

iii) Reduction during the year

iv) Closing balance

c) Movement of Net NPAs

i) Opening Balance



iv) Closing balance

d) Movement of provision for NPAs excluding standard assets

i) Opening Balance

ii) Provision made during the year

iii) Write off/write back of excess provisions

iv) Closing balance

The Company operates primarily in the business of microfinance providing collateral free loans for fixed

amounts ranging from Rs. 20,000/- to Rs. 58,000/- predominantly to rural and semi urban women. As on

31st March 2018, the Company provided loans to more than 4.19 lakhs women across seven states and

hence the disclosure relating to concentration of Advances, Exposures and NPAs are not applicable to the

Company.

31-3-2017

45.77%

54.23%

0.00%

122.15

404.77

122.15

404.77

61.08

34.54

122.15

-26.53

61.07

370.23

-

431.30

xv) Disclosure relating to Securitisation

The information on securitisation activity of the Company as an originator is furnished below:

a) Total number of loans securitised or assigned

b) Total book value of loans securitised or assigned

c) Total book value of loans securitised or assigned including loans

placed as collateral

d) Sale consideration received for loans securitised/assigned

e) Excess interest spread recognised in the Statement of Profit and Loss

f) Credit enhancements provided and outstanding (gross)

Transaction 1

i) Interest subordination

- for PTC Series A1

- for PTC Series A2

ii) Principal subordination

- for PTC Series A1

- for PTC Series A2

iii) Cash collateral

3923

7,556.31

8,611.18

7,556.31

36.19

Nil

Nil

Nil

Nil

Nil

5902

260.57

260.57

-

175.77

9.52%

9.14%

9.00%

7.00%

6.00%


Notes

Transaction 2


- for PTC Series A1

- for PTC Series A2


- for PTC Series A1

- for PTC Series A2


Transaction 3


- for PTC Series A1

- for PTC Series A2


- for PTC Series A1

- for PTC Series A2


12.07%

12.07%

15.00%

12.25%

4.50%

12.76%

12.76%

14.50%

12.25%

4.90%

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Particulars*

Number of SPVs sponsored by the Company for securitisation

during the year

Total amount of securitised assets as per the books of the SPVs

sponsored by the Company as on the date of balance sheet

Total amount of exposure retained by the Company to comply

with minimum retention requirement as at the date of the

balance sheet

a) Off balance sheeet exposures

i) First Loss

ii) Others

b) On balance sheet exposures

i) First Loss

ii) Others

Amount of Exposures to other than MRR

a) Off Balance sheet exposures

i) Exposure to own securitisations

ii) Exposure to third party securitisations


i) Exposure to own securitisation

ii) Exposure to third party securitisation*As per information duly certified by auditor of SPV

2

8,611.18

Nil

Nil

399.11

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

197.14

Nil

Nil

Nil

Nil

Nil

Nil

xvi) Information on instances of fraud reported during the year

Embezzlement of cash Nil 6.51

xvii) Information on net interest margin

Average interest

Average effective cost of borrowing

Net interest margin

22.49%

12.98%

9.51%

23.80%

13.85%

9.95%

31.03.2018 31.03.2017


NotesNotes

xviii) Information required by Reserve Bank of India Prudential Norms

1) Capital Adequacy Ratio

item

i) CRAR (%)

ii) CRAR - Tier I Capital (%)

iii) CRAR - Tier II Capital (%)

iv) Amount of subordinated debt raised as Tier II Capital (Rs. In Lakhs)

v) Amount raised by issue of Perpetual Debit Instruments

25.70%

21.00%

4.70%

5,000

Nil

26.99%

20.46%

6.53%

5,000

Nil

2) Exposure to Real Estate Sector Category

A. Direct Exposure

i) Residential Mortgages -

Lending fully secured by mortgages on residential property

that is or will be occupied by the borrower or that is rented;

(Individual housing loans upto Rs.15 lakh may be shown

separately)

ii) Commercial Real Estate -

Lending secured by mortgages on commercial real estates

(office buildings, retail space, multipurpose commercial

premises, multi-family residential buildings, multi-tenanted

commercial premises, industrial or warehouse space, hotels

land acquisition, development and construction, etc.).

Exposure would also include non-fund based (NFB) limits;

iii)Investments in Mortgage Backed Securities (MBS) and other

securitised exposures-

a. Residential

b. Commercial Real Estate.

B. Indirect Exposure

Fund based and non-fund based exposures on National

Housing Bank (NHB) and Housing Finance Companies(HFCs)

39.72

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

xix) Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction

The Company has not sold financial assets to securitisation/reconstruction companies for asset

reconstruction in the current and previous year.

xx) Details of Assignment transactions undertaken by NBFCs

The Company has not undertaken assignment transaction in the current and previous year.

xxi) Details of non-performing financial assets purchased / sold

The Company has not purchased/sold non performing financial assets during the current and previous year.

xxii) Details of penalties imposed by RBI and other Regulators

No penalties have been imposed by RBI and other Regulators during the current and previous year.

xxiii) Exposure to Capital Market

The company does not have any exposure to Capital Market

xxiv) Details of Financing of Parent company products

Not Applicable


Notes

xxv) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by applicable NBFC

The Company has not given any loan exceeding Single Borrower Limit / Group Borrower Limit

xxvi) Provisions and Contingencies

Breakup of "Provisions and Contingencies" shown under the

head Expenditure in Profit and Loss Account

a) Provisions for depreciation on Investment Nil 149.00

31.3.2018 31.3.2017

b) Provision towards NPA

c) Provision made towards Income Tax

d) Other Provision and Contingencies (with detail)

Provision for assets de-recognised

e) Provision for Standard Assets

684.13

2,334.43

24.91

-

370.23

1,985.00

-26.97

64.73

xxvii) Draw Down from Reserves

The company has not done any Draw Down from Reserves

xxviii) Concentration of Deposits (for deposit taking NBFCs)

Not applicable to the Company

xxix) Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)


xxx) Off- Balance Sheet SPVs Sponsored

The company does not have any Off-Balance Sheet SPV

xxxi) Investments

Particulars

(1) Value of Investment (Permanent and Current Investments)

(i) Gross Value of Investment

(a) In India

(b) Outside India

(ii) Provision for Depreciation

(a) In India

(b) Outside India

(iii) Net Value of Investments

(a) In India

(b) Outside India

(2) Movement of Provisions held towards depreciation on Investments

(i) Opening Balance

(ii) Add : Provisions made during the year

(iii) Less: Write-Off / Write-back of excess provisions during the year

(iv) Closing balance

169.00

Nil

669.00

Nil

149.00

Nil

149.00

Nil

20.00

Nil

520.00

Nil

149.00

Nil

Nil

149.00

Nil

149.00

Nil

149.00

31.3.2018 31.3.2017

xxxii) Derivatives

(1) Forward Rate Agreement / Interest Rate Swap

Particulars

(i) The notional principal of swap agreements

(ii) Losses which would be incurred if counter parties failed to fulfil

their obligations under the agreements

(iii) Collateral required by the NBFC upon entering into swaps

(Book Debts)

2,493.27

193.35

660.00

2,656.00

208.55

660.00


NotesNotes

(iv) Concentration of credit risk arising from the swapping

(v) The fair value of the swap book

-

193.35

-

208.55

2) Exchange Traded Interest Rate (IR) Derivatives

The company does not have any Interest Rate (IR) Derivatives

3) Disclosures on Risk Exposure in Derivatives

Qualitative Disclosures

A. Financial risk management objectives

The company's treasury function manages and monitors various risks relating to treasury operations of

the company, including currency risk, market risk, and liquidity risk. In course of managing these risks

the company may use various market instruments as permissible for the company based on RBI

guidelines and internal approvals. The company does not enter into any trade in financial instruments

including derivatives for speculative purposes.

B. Company has entered into a full currency swap agreement with RBL bank to hedge the interest and

currency risk relating to the ECB of USD 4 million from World Business Capital. The swap agreement

covers the total principal and interest payment due on the ECB at USD-INR spot reference rate of 66.40 stand interest rate of 12.8% p.a. For the year ended 31 March 2018, the principal loan amount is restated

at closing exchange rate and the resultant gain of Rs. 51,97,436 is accounted in the Profit and Loss

account. The hedge instrument covering currency and interest rate swap is marked to market and the

resultant loss of Rs. 1,93,34,965 is taken to Profit and Loss account.

C. The Company had not adopted the Guidance Note on accounting for Derivative contracts in the earlier

year and hence there has been a change in accounting policy to give effect to the ICAI's Guidance Note.

Quantitative Disclosures

Derivatives (Notional Principal Amount) For hedging

Marked to Market Position

Asset (+)

Liabilities (-)

Credit Exposure

Unhedged Exposures

2,493.27

2,762.27

(2,955.62)

193.35

-

2,656.00

3,000.69

(3,209.24)

208.55

-

Currency and Interest rate derivatives

31.3.2018 31.3.2017

Refer to Accounting Policy No. 1(I) & Note No. 3(C) below


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81

Madura Micro Education

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF MADURA MICRO EDUCATION PRIVATE

LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Madura Micro Education Private Limited

(“the Company”), which comprise the Balance Sheet as at 31st March 2018 the Statement of Profit and Loss and the

Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other

explanatory information.

Management's responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013

(“the Act”) with respect to the preparation of these Standalone financial statements that give a true and fair view of

the financial position, financial performance and cash flows of the Company in accordance with the accounting

principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act,

read with Rule 7 of the Companies (Accounts) Rules, 2014.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of

the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;

selection and application of appropriate accounting policies; making judgments and estimates that are reasonable

and prudent; and design, implementation and maintenance of adequate internal financial controls, that were

operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the

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

misstatement, whether due to fraud or error.


Our responsibility is to express an opinion on these Standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are

required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act.

Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free from material misstatement.


financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the

risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial

statements that give a true and fair view in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate

internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit

also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the

accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the

financial statements.


opinion on the Standalone financial statements.

Auditors Report

82 Madura Micro Education

Opinion

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

Standalone) financial statements give the information required by the Act in the manner so required and give a true

and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2018;

b) In the case of the Statement of Profit and Loss of its Loss for the year ended 31st March 2018; and

c) In the case of the Cash Flow Statement, of the Cash Flows for the year then ended.


1. As required by the Companies (Auditor's Report) Order, 2016 (“the Order”), as amended, issued by the Central

Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure A” a statement

on the matters specified in paragraphs 3 and 4 of the Order .

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

a) we have sought and obtained all the information and explanations which to the best of our knowledge and

belief were necessary for the purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears

from our examination of those books;

c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are

in agreement with the books of account.

d) In our opinion, the aforesaid (Standalone) financial statements comply with the Accounting Standards

specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on March 31, 2018 taken on record by

the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a

director in terms of Section 164 (2) of the Act.

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

operating effectiveness of such controls, refer to our separate Report in “Annexure B”.

g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the

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

the explanations given to us:

(I) There are no pending litigations.

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any

material foreseeable losses. .

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection

Fund by the Company.

Auditors Report

Place of Signature : ChennaindDate: 02 May 2018

83Madura Micro Education

For S.N.S AssociatesCHARTERED ACCOUNTANTS

(FIRM REGISTRATION No:006297S)S.NAGARAJAN (Partner)MEMBERSHIP No:20899

Annexure A to the Independent Auditors' Report- To the Members of Madura Micro Education Private Limited

(I)

(a) The Company has maintained proper records showing full particulars including quantitative details and situation of

fixed assets

(b) The Fixed Assets have been physically verified by the Management during the year and no material discrepancies were

noticed on such verification. In our opinion, the periodicity of the verification is reasonable having regard to the size of

the Company and the nature of its assets.

(c) The Company does not have any immovable properties.

(ii) The Company does not have any inventories.

(iii) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or

other parties covered in the register maintained under section 189 of the Companies Act, 2013.

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the

provisions of section 185 and 186 of the Companies Act, 2013, with respect to loans availed by it.

(v) The Company has not accepted deposits from the public.

(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act,

2013, for any of the activities of the Company.

(vii)

(a) According to the information and explanations given to us and on the basis of our examination of the records of the

Company, the amounts deducted/accrued in the books of accounts in respect of undisputed statutory dues including

provident fund, employees state insurance, excise, income tax, sales tax, value added tax, duty of customs, service tax,

cess and other statutory dues have been regularly deposited during the year by the Company withappropriate

authorities. According to the information and explanations given to us, there are no undisputed amounts payable in

respect of provident fund, employees state insurance, income tax, sales tax, value added tax, duty of customs, excise,

service tax, cess and other statutory dues which were in arrears as on 31st March 2018 for a period of more than six

months from the date they became payable.

(b) There are no dues of income tax, sales tax, value added tax, duty of customs, excise, service tax, cess or other statutory

dues that have not been deposited on account of any dispute.

(viii) The Company has not defaulted in the repayment of dues to banks, financial institutions or debenture holders

(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). As

per the records of the Company, the term loans availed during the year were applied for the purposes for which those

are raised.

(x) As per the records of the Company and according to the information and explanations given to us, no frauds on the

company by its officers or employees have been noticed or reported during the year.

(xi) According to the information and explanations given to us, the Company has not paid any managerial remuneration to

its Directors requiring approval mandated by the provisions of section 197 read with Schedule V to the Companies Act,

2013.

(xii) The Company is not a nidhi company.

(xiii) In our opinion, all transactions with related parties are in compliance with section 177 and 188 of the Companies Act,

2013 and the details have been disclosed in the financial statements as required by the applicable Accounting

Standard.

(xiv) According to the records of the Company, the Company has not made any preferential allotment or private placement

of its shares or fully or partly convertible debentures during the year under review.

Auditors Report


(xv) Based on the audit procedures performed and the information and explanations given to us, the Company has

not entered into any non-cash transactions with the Directors or persons connected with the Directors.

(xvi) In our opinion, the Company is not required to be registered under section 45IA of the Reserve Bank of India

Act, 1934.

Auditors Report

Place of Signature : ChennaindDate: 02 May 2018




“Annexure B” to the Independent Auditor's Report of even date on the Standalone Financial Statements of

MADURA MICRO EDUCATION PRIVATE LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies

Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of MADURA MICRO EDUCATION PRIVATE

LIMITED (“the Company”) as of 31st March 2018 in conjunction with our audit of the standalone financial statements

of the company for the year ended on that date.


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

the internal control over financial reporting criteria established by the Company considering the essential

components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over financial

reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design,

implementation and maintenance of adequate internal financial controls that were operating effectively for

ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the

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

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

Act, 2013.


Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting

based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed

to be prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal

financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of

Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal

financial controls over financial reporting was established and maintained and if such controls operated effectively

in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial

controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls

system over financial reporting included obtaining an understanding of internal financial controls over financial

reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating

effectiveness of internal control based on the assessed risk. The procedure selected depends on the auditor's

judgment, including the assessment of the risk of material misstatement of the financial statements, whether due

to fraud or error.


opinion on the Company's internal financial controls system over financial reporting,


A Company's internal financial control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of financial statements for external

purposes in accordance with generally accepted accounting principles. A Company's internal financial control over

financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in

reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, (2)

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial

Auditors Report


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.


Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of

collusion or improper management override of controls, material misstatements due to error or fraud may occur and

not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future

periods are subject to the risk that the internal financial control over financial reporting may become inadequate

because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our Opinion, the company has, in all material respects, an adequate internal financial controls system over financial

reporting and such internal financial Controls over financial reporting were operating effectively as at March 31, 2018,

based on the internal control over financial reporting criteria established by the Company considering the essential

components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial

Reporting issued by the Institute of Chartered Accountants of India.

Auditors Report

Place of Signature : Chennaind

Date: 02 May 2018




Significant Accounting Policies 1

Shareholders' Funds

As at31.03.2018

As at31.03.2017


(a) Share Capital






Current Liabilities


(b) Other Current Liabilities

(c) Short Term Provisions

3,599,332 10,476,259

Non Current Assets

ASSETS

TOTAL

10,476,259 TOTAL

Note No

2

3

4

5

6

7

8

9

20,208,924

7,412,091

569,268

28,190,283

14,900,000

(33,359,740)

(18,459,740)

303,001

271,643

171,072

745,716

14,900,000

(40,076,651)

(25,176,651)

16,419,750

7,412,091

512,538

24,344,379

88,401

4,104,403

238,800

4,431,604

743,391

4,463,957

504,004

5,711,352

4,764,907

(a) Fixed Assets

(i) Tangible Assets


(b) Other non current assets

(a) Cash and cash equivalents

(b) Other current assets

Current Assets

10

11

12

13

14

4,755,017

9,890

466,413

2,355,286

457,845

3,279,544

319,788

296,493

23,295

3,599,332

Mohan Eddy

Director

Tara Thiagarajan

Director

ndChennai / Date: 02 May 2018

See accompanying Notes to Financial Statements

Vide out report of even date attached

Balance Sheet




Profit and Loss


II. Other Income

III. Total Revenue

IV. Expenses:


Finance Cost

Depreciation

Other Expenses

Total Expenses

V. Profit before exceptional and

extraordinary items and tax





X. Tax expense

Current tax

Deferred Tax


XII. Proift or loss from discontinuing operations before Tax


XIV. Profit/loss from discontunuing operations

XV. Profit for the period


(1) Basic

(2) Diluted

See accompanying Notes to Financial Statements

Vide out report of even date attached

15

16

9,536,850

483,137

10,019,987

17

18

9 & 10

19

9,178,109

1,454,498

7,178,369

2,647,103

20,458,079

-10,438,092

-

-10,438,092

-

-10,438,092

-

-

-10,438,092

6,708,400

85,387

6,793,787

7,351,356

1,446,926

2,527,148

2,185,268

13,510,698

-6,716,911

-

-6,716,911

-

-6,716,911

-

-

-6,716,911

-

-

-

-6,716,911

-4.51

-4.51

Mohan Eddy

Director

Tara Thiagarajan

Director

As at31.03.2018

As at31.03.2017Note No

-

-

-

-10,438,092

-7.01

-7.01





Cash Flow

Net Profit before tax

Less: Depreciation

Interest expense

Operating Profit before working capital changes

Decrease (Increase) in Other Current Assets

Increase in short term provisions

Decrease (Increase) in Other Current Liabilities

Increase in Long Term Provisions

Increase in other non current assets

Net Cash from Operating Activities

CASH FLOW FROM INVESTING ACTIVITIES

Purcase of fixed assets and intangible assets

(Increase)/Decrease in Capital work in progress

Net Cash from Investing Activities

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of shares

Increase in Long Term Borrowings

(Decrease)/Increase in Short Term Borrowings

Interest paid

Funds received from Holding Company

Net Cash from Financing Activities

Net Cash generated during the year

Opening Cash and Cash Equivalents

Closing Cash and Cash Equivalents

CASH FLOW FROM OPERATING ACTIVITIES

31.03.2018 31.03.2017Year endedYear ended

-6,716,911

2,527,148

1,212,536

-2,977,227

-13,405

67,728

43,587

-56,730

46,159

-2,889,888

-141,500

-

-141,500

-

-

-214,600

-1,212,536

-

-1,427,136

-4,458,524

4,755,017

296,493

-10,438,092

7,178,369

1,213,015

-2,046,708

754,047

-98,751

-488,239

159,592

352,120

-1,367,939

-4,098,429

258,590

-3,839,839

-

-

270,605

-1,213,015

-

-942,410

-6,150,188

10,905,205

4,755,017

Mohan Eddy

Director

Tara Thiagarajan

Director





Notes

1 . SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements are prepared on historical cost convention and materially comply a)

with the mandatory accounting standards issued under the Companies Act, 2013

b) Fixed Assets

The Fixed Assets are stated at cost.

The Fixed Assets are depreciated on Straight Line Basis at the following rates:

Assets costing less than Rs.5,000/- are fully depreciated in the year of purchase.

c) Revenue Recognition

The fees recceiable in respect of courses conducted is reckoned on accrual basis on the basis of the

courses conducted during the year. Other income is accounted for on accrual basis.

d) Expenses are accounted for on accrual basis.

e) The provisions of Payment of Gratuity Act are not applicable to the Company. The Company contributes

to Provident Fund and Employees State Insurance which are charged off to revenue as incurred.

2 . SHARE CAPITAL

Authorised

50,00,000 Equity shares of Rs.10/- each

Issued, Subscribed and Paid up

14,90,000 Equity Shares of Rs.10/- each fully paid up

Notes:

1. Reconciliation of the number of shares outstanding at the beginning and end of the year

Number of shares at the beginning of the period

Shares issued during the year

Shares outstanding at the end of the period

2. Details of shares held by a shareholder holding more than 5% of the issued shares

Name of the Shareholder


3. Details of shares held by the holding company

Name of the holding company


4. Details of shares allotted for a consideration other than cash

Educational content on digital media

Computer accessories

Office Equipment

Furniture and fittings

33.33%

33.33%

20.00%

15.00%

50,000,000

14,900,000

1,490,000

-

1,490,000

No. of shares

1,490,000

No. of shares

1,490,000

1,480,000

33.33%

33.33%

20.00%

15.00%

31.03.201731.03.2018

50,000,000

14,900,000

1,490,000

-

1,490,000

No. of shares

1,490,000

No. of shares

1,490,000

1,480,000


NotesNotes

3. RESERVES AND SURPLUS

Debit balance in profit and loss statement

Loss for the year

31-3-2017

22,921,648

10,438,092

33,359,740


Borrowings from National Skill Development Corporation

Less: Repayable within 1 year classified as current liabilities

Secured by a charge on the assets acquired out of the loan, project cash flows and intellectual property of

the Company.The Loan is also secured by a corporate guarantee issued by the Holding Company, Madura

Micro Finance Limited. The Company is repayable over a period of eight years with an initial moratorium of

4 years. The repayment is to commence from 07th October 2018. The loan carries Interest at 6% per annum.

20,208,924

-

20,208,924

5 . OTHER LONG TERM LIABILITIES


The amount due to the holding company Madura Micro Finance Limited is repayable

after 31.03.2017 and hence the entire amount outstanding is classified under the

other Long term liability.

6 . OTHER LONG TERM PROVISIONS


Provision for Leave encashment

7 . SHORT TERM BORROWINGS

ICICI Bank Adyar

Represents cheques issued in excess of the balance available with the Bank.

7,412,091

7,412,091

250,791

318,477

569,268


Current maturities of Long term Borrowings

Sundry Creditors

-

271,643

271,643


Provision for employees

Provident Fund and ESI Contribution

Other Provisions

31-3-2018

33,359,740

6,716,911

40,076,651

20,208,924

3,789,174

16,419,750

7,412,091

7,412,091

194,730

317,808

512,538

88,401

88,401

3,789,174

315,229

4,104,403

34,388

204,412

238,800

10. (a) Fixed - Assets - Tangibles

COST BLOCK

Computer Accessories

Office Equipment


As at

31.03.2018

1,369,702

167,459

100,529

1,637,690

AdditionsCost as at

01.04.2017

141,500

-

-

141,500

1,228,202

167,459

100,529

1,496,190

303,001

303,001

96,020

75,052

171,072


Notes

DEPRECIATION BLOCK


Office Equipment


NET BLOCK


Office Equipment


COST BLOCK


Other software

DEPRECIATION BLOCK


Other software

NET BLOCK


Other software

11. (a) FIXED ASSETS - Intangibles


Rent Advance

Tax Deducted at Source

Preliminary Expenses (to the extent not written off or adjusted)

996,714

102,352

72,210

1,171,276

As at

31.03.2018

372,988

65,107

28,318

466,413

As at

31.03.2018

As at

31.03.2018

20,324,923

2,427,631

22,752,554

As at

31.03.2018

As at

31.03.2018

19,320,888

1,076,380

20,397,268

1,004,035

1,351,251

2,355,286

504,004

75,000

71,004

358,000

379,340

32,612

6,525

418,477

617,374

69,740

65,685

752,799

For the

Year

610,828

97,719

34,844

743,391

As at

01.04.2017

Additions

-

-

-

20,324,923

2,427,631

22,752,554

For the

Year

As at

31.03.2017

1,299,542

809,129

2,108,671

18,021,346

267,251

18,288,597

2,303,577

2,160,380

4,463,957

75,000

24,845

358,000

457,845

Upto

01.04.2017

Upto

01.04.2017

Cost as at

01.04.2017

13 . CASH AND CASH EQUIVALENTS

147,875

5,871

4,601,271

4,755,017

Balances with banks in current account

Cash in Hand

Deposits with banks

212,832

1,638

82,023

296,493

14 . OTHER CURRENT ASSETS

23,295

23,295

Others

15 . REVENUE FROM OPERATIONS

Course Fees received

9,890

9,890

6,708,400 6,708,400

9,536,850 9,536,850


Notes

Interest on deposits with Bank

Interest received from others

Misc. Income

16. OTHER INCOME

477,311

5,536

290

483,137

Salary & Wages

Contribution to Provident Fund

Contribution to Employee state insurance

Contribution to Gratuity

Contribution to Welfare fund

Contribution to Leave Encashment

17 . EMPLOYEE BENEFIT EXPENSES 8,315,064

561,581

120,058

63,151

733

117,522

9,178,109

Interest paid National Skill Development Corporation

Other Interest

Bank Charges

18. FINANCE COST

1,213,015

2,862

238,621

1,454,498

Office Rent

Rates and Taxes

Filing Fees

Office Maintenance

Professional Fees

Travelling expenses

Other Expenses

Auditors' Remuneration - For Audit

19 . OTHER EXPENSES

388,200

4,290

12,376

170,809

813,744

634,556

557,578

65,550

2,647,103

81,774

3,613

-

85,387

6,835,563

458,999

103,415

(56,061)

940

8,500

7,351,356

1,212,536

787

233,603

1,446,926

528,062

4,190

4,593

70,797

349,790

397,992

762,299

67,545

2,185,268

20. In view of the loss, provision for taxation is not considered necessary

21. Though the Company has unabsorbed losses, it has been considered prudent not to recognise any

Deferred Tax Asset.

Notes

22. Nil Nil Earnings in foreign Exchange

23. Nil Nil Expenditure in foreign currency Professional Fees


Name of the Related Party

Nature of Relationship

Details of transactions during the year

Amount due to Holding Company

Corporate guarantee given by Holding Company


Holding Company

7,412,091

20,208,924

7,412,091

20,208,924

31-3-201731-3-2018


Notes









Interest cost




Principal Assumptions used in determining

Defined Benefit Gratuity Plan

Discount Rate



Attrition rate


Leave Encashment




Plan asset (liability)


-

194,730

-

-194,730

250,791

-

-56,061

-

194,730

6.94%

Not Applicable

10%

10%

-

317,808

-

-317,808

-

250,791

-

-250,791

187,640

-

63,151

-

250,791

7.60%

Not Applicable

10%

10%

-

318,477

-

-318,477

Change in the present value of the Defined benefit Plan


Interest cost




222,036

-

117,522

-21,081

318,477

318,477

-

8,500

-9,169

317,808

Principal Assumptions used in determining

Defined Benefit Gratuity Plan

Discount Rate



Attrition rate

Proportion of leave availment

7.60%

Not applicable

10%

10%

90%

6.94%

Not applicable

10%

10%

90%

26. Earnings per share

Loss for the period

Number of Shares outstanding at the end of the period

Earnings per share

Signatures to Notes

-13,694,162

1,490,000

-9.19

-6,716,911

1,490,000

-4.51

Mohan Eddy

Director

Tara Thiagarajan

Director





96

Consolidated Financial StatementsMadura Micro Finance

Auditors Report

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF MADURA MICRO FINANCE LIMITED

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Madura Micro Finance Limited (hereinafter

referred to as “the Holding Company”) and its subsidiary (together referred to as “the Group”),comprising of the

Consolidated Balance Sheet as at 31st March, 2018, the Consolidated Statement of Profit and Loss, the Consolidated Cash

Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory

information (hereinafter referred to as “the consolidated financial statements”).

Management's Responsibility for the Consolidated Financial Statements

The Holding Company's Board of Directors is responsible for the preparation of these consolidated financial statements in

terms of the requirements of the Companies Act, 2013 (hereinafter referred to as “the Act”) that give a true and fair view of

the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in

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

Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the

provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other

irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are

reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that

were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the

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

material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the

consolidated financial statements by the Directors of the Holding Company, as aforesaid.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We have taken

into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included

in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those

Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance

about whether the consolidated financial statements are free from material misstatement.


consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of

the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those

risk assessments, the auditor considers internal financial control relevant to the Holding Company's preparation of the

consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in

the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the

reasonableness of the accounting estimates made by the Holding Company's Board of Directors, as well as evaluating the

overall presentation of the consolidated financial statements.

We believe that the audit evidence obtained by usand the audit evidence obtained by other auditor in terms of report

referred to in Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the

consolidated financial statements.

Basis for Qualified Opinion

As explained in Note no 27, the holding company's application to the Central Government for the reappointment of the

Managing Director for a period of 5 years commencing from 1.10. 2016 to 30.09.2021, under sec 196, read with clause (e) of

part 1 of Schedule v of The Companies Act 2013 has been rejected since the company has not complied with cl (e) of part 1 of

schedule xiii of The Companies Act 1956, in respect of her earlier reappointment made from 26'th February 2012.

Madura Micro Finance 97

Company has applied in July 2017, for approval of her reappointment from 2012 to 2015 with compounding and is awaiting

approval, after which approval for current reappointment will be sought. Pending receipt of Central Government approval,

payment of Rs. 67.29 lacs has been made towards Managing Director remuneration for the current year, in the

accompanying financial statements.

Qualified Opinion

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

matter described in the Basis for Qualified Opinion paragraph above, the aforesaid consolidated financial statements give

the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting

principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit and its cash

flows for the year ended on that date.

Other Matters

1. The comparative financial information of the Company for the year ended 31st March 2017 prepared in accordance with

AS included in this Statement have been audited by the predecessor auditor. The report of the predecessor auditor on the

comparative financial information dated 26th May 2017 (for the year ended March 2017) expressed a modified opinion.

2. We did not audit the financial statements of the subsidiary whose financial statements reflect total assets of Rs. 35,99,332

as at 31st Mar 2018, total Revenues of Rs. 67,93,787, loss after tax of Rs. 67,16,911 and net cash outflows amounting to

Rs.44,58,523 for the year ended on that date, as considered in the consolidated financial statements. These financial

statements have been audited by other auditor whose report has been furnished to us by the Management and our

opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect

of subsidiary and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid

subsidiary, is based solely on the reports of the other auditors. Our opinion on the consolidated financial statements, and

our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matter with respect

to our reliance on the work done and the report of the other auditor.


1. As required by Section 143(3) of the Act, we report, to the extent applicable, that:

a) We have sought andobtained all the information and explanations which to the best of our knowledge and belief were

necessary for the purposes of our audit of the aforesaid consolidated financial statements

b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper

books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been

kept so far as it appears from our examination of those books and report of other auditor.

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

Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of

preparation of the consolidated financial statements.

d) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the

aforesaid consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act ,

read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors of the Holding Company as on 31st

March,2018taken on record by the Board of Directors of the Holding Company and subsidiary company incorporated in

India, none of the directors of the Group companies,is disqualified as on 31st March, 2018from being appointed as a

director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Group, and the operating

effectiveness of such controls, refer to our separate Report in “Annexure A”.

g) With respect to the other matters to be included in the Auditor's Report on Consolidated Financial Statements in

accordance with Rule 11 of the Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best of our

information and according to the explanations given to us:

Auditors Report

Madura Micro Finance98

(I) The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position

of the Group,– Refer Note 26 to the consolidated financial statements.

(ii) The Group has long-term contracts including derivative contracts and provision has been made for any material

foreseeable losses.

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

Holding Company, and its subsidiary companies incorporated in India.

Place of Signature : Chennaird

Dated: 23 July 2018

Auditors Report





“Annexure A”

Referred to in paragraph 1(f) on 'Report on Other Legal and Regulatory Requirements' of our report of even

dateon the consolidated financial statements ofMadura Micro Finance Limted

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

2013 (“the Act”)

In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended

March 31, 2018, we have audited the internal financial controls over financial reporting of Madura Micro Finance Limited

(hereinafter referred to as “the Holding Company”) and its subsidiary company, Madura Micro Education Private

Limited,which isa company incorporated in India as on that date..


The respective Board of Directors of the Holding company, its subsidiary company, which is a company incorporated in

India, are responsible for establishing and maintaining internal financial controls based on the internal control over

financial reporting criteria established by the Company considering the essential components of internal control stated

in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered

Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate

internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business,

including adherence to the respective company's policies, the safeguarding of its assets, the prevention and detection of

frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable

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

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on

our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over

Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed

under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both

issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we

comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether

adequate internal financial controls over financial reporting were established and maintained and if such controls

operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls

system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial

reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk

that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control

based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of

the risks of material misstatement of the financial statements, whether due to fraud or error.

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

on the Company's internal financial controls system over financial reporting.


A company's internal financial control over financial reporting is a process designed to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes in

accordance with generally accepted accounting principles. A company's internal financial control over financial reporting

includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable

assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with

generally accepted accounting principles, and that receipts and expenditures of the company are being made only in

accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance

regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that

could have a material effect on the financial statements.

Auditors Report



Because of the inherent limitations of internal financial controls over financial reporting, including the possibility

of collusion or improper management override of controls, material misstatements due to error or fraud may

occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial

reporting to future periods are subject to the risk that the internal financial control over financial reporting may

become inadequate because of changes in conditions, or that the degree of compliance with the policies or

procedures may deteriorate.

Opinion

In our opinion, the Holding Company and its subsidiary company which is incorporated in India,have, in all

material respects, an adequate internal financial controls system over financial reporting and such internal

financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal

control over financial reporting criteria established by the Company considering the essential components of

internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting

issued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid reports u/s 143 (3) of the Act on the adequacy and operating effectiveness of the internal financial

controls over financial reporting in so far as it relates to the subsidiary Madura Micro Education Private Limited

is based on the corresponding standalone report of the auditor ofthatcompany.

Our opinion is not modified in respect of this matter

Place of Signature : Chennaird

Dated: 23 July 2018

Auditors Report




Madura Micro Finance 101

Balance Sheet

Shareholders' Funds


(a) Share Capital






Current Liabilities


(b) Trade Payable

I) Total outstanding dues of Micro and Small Enterprises

ii) Total outstanding dues of Creditors other than Micro

and Small Enterprises

(c) Other Current Liabilities

(d) Short Term Provisions

Non Current Assets

ASSETS

(a) Fixed Assets

(i) Tangible Assets


(b) Non current Investments

(c) Deferred Tax Assets (net)

(d) Long Term Loans and Advances

(e) Other non current assets

TOTAL

Current Assets

As at31.03.2018

As at31.03.2017

12,16,07,65,078 9,48,69,69,168

3,44,86,281

48,58,555

4,00,67,34,023 2,65,40,41,847

Note no

2

3

4

5

6

4 ,81,44,53,423

5 ,85,736

7,33,85,387

4,88,84,24,546

7,19,47,610

2,29,27,46,576

2,36,46,94,186

6,69,75,210

1,66,11,63,764

1,72,81,38,974

3,45,42,77,065

5,85,736

5,78,44,776

3,51,27,07,577

1,88,98,152

-

17,53,62,853

4,55,51,72,362

15,82,12,979

4,90,76,46,346

7

8

9

10

11

12

2,16,84,181

47,39,429

13

14

15

16

20,00,000

3,90,40,134

3,78,32,43,388

14,31,05,665

20,00,000

3,22,90,683

2,41,12,23,289

18,21,04,265

1,15,02,736

-

7,05,91,322

4,08,60,45,380

7,79,83,179

4,24,61,22,617

(a) Current Investments

(b) Cash and Cash Equivalents

(c) Short Term Loans and Advances

(d) Other Current Assets

TOTAL

8,15,40,31,055

12,16,07,65,078 9,48,69,69,168

17

18

19

20

-

63,54,42,867

7,37,10,60,118

14,75,28,070

5,00,00,000

84,39,51,585

5,82,11,84,283

11,77,91,453

6,83,29,27,321



1

Sanin Panicker

Company Secretary

Mohan Eddy

Wholetime Director

Tara Thiagarajan

Managing Director

M. Narayanan

President & CFO


rdChennai / Date: 23 July 2018





Consolidated

Profit and Loss

As at31.03.2018

As at31.03.2017


II. Other Income

III. Total Revenue

Note no

1 ,76,25,95,229

4,23,74,171

1 ,80,49,69,400

2 ,24,86,79,725

8,95,20,095

2,33,81,99,820

22

23

11 & 12

25

35,20,16,107

93,01,41,032

1,88,05,613

41,89,88,577

1 ,71,99,51,329

27,12,79,527

74,60,28,363

3,47,72,526

26,81,25,715

1 ,32,02,06,131

IV. Expenses:


Finance Cost

Depreciation

Other Expenses

Total Expenses

61,82,48,491

-

61,82,48,491

-

61,82,48,491

23,34,42,824

- 67,49,452

39,15,55,119

48,47,63,269

-

48,47,63,269

-

48,47,63,269

19,85,00,000

-54,25,547

29,16,88,816

V. Profit before exceptional and extraordinary items and tax





X. Tax expense

Current tax

Deferred Tax


XII. Profit or loss from discontinuing operations


XIV. Profit/loss from discontinuing operations

XV. Profit for the year


(1) Basic

(2) Diluted

(3) Nominal Value of Share

-

-

-

39,15,55,119

55.21

55.21

10.00

-

-

-

29,16,88,816

47.59

47.59

10.00

Sanin Panicker

Company Secretary

Mohan Eddy

Wholetime Director

Tara Thiagarajan

Managing Director

M. Narayanan

President & CFO

21

22

36

36



1







Consolidated

Cash Flow

31.03.2018 31.03.2017Year ended

Profit Before Tax

Add: Depreciation

Interest Expense relating to Micro Education

Provision made for Advances and NPAs

Provision for impairment of Advances to Subsidiary

Provision for impairment of Investment in Subsidiary

Provision made for assets derecognised


Less: Net gain on sale of investments


61,82,48,491

1,88,05,613

12,13,323

5,40,95,924

-

-

24,91,163

1,41,37,529

70,89,92,043

3,68,76,266

-

Operating profit before changes in operating assets and liabilities

Changes in operating assets and liabilities

(Increase)/Decrease in advance to Self Help Groups and other loans

(Increase)/Decrease in other Current Assets and Non Current Assets

(Increase)/Decrease in Term Deposits under Lien

Increase/(Decrease) in Current Liabilities and other provisions

Tax paid net of provisions

Total Cash flow from operating activities A

67,21,15,777

-2,92,18,95,934

26,19,562

3,16,96,612

13,76,75,223

-21,82,93,396

-2,29,60,82,156

Cash flows from Investing Activities

Purchase of fixed assets

(Increase)/Decrease in Capital work in progress

Redemption of mutual fund



Total cash flow from investing activities B

56,18,00,225

-2,99,68,69,023

3,60,83,813

3,65,51,746

-2,46,81,302

-19,77,08,481

-2,58,48,23,022

-3,17,26,839

-

5,00,00,000

3,68,76,266

-

5,51,49,427

-3,53,65,521

2,58,590

-1,55,73,135

56,76,403

89,73,306

-3,60,30,357

Year endedCash flows from Operating Activities

48,47,63,269

3,47,72,526

12,15,877

4,34,95,171

-

1,49,00,000

-26,96,909

-

57,64,49,934

56,76,403

89,73,306

Cash flows from Financing Activities

Proceeds from issue of Shares (including Share Premium)

Long Term Borrowings Taken

Long Term Borrowings Repaid

Short Term Borrowings Repaid/Taken (net)

Interest Expense relating to Micro Education

Total Cash from Financing activities C

Total cash generated during the year (A + B + C)

Cash and Cash Equivalents at the beginning of the Year

Cash and Cash Equivalents at the end of the year

24,50,00,093

5,72,00,00,000

-3,91,39,04,825

73,95,416

-12,13,323

2,05,72,77,361

-18,36,55,367

80,09,83,626

61,73,28,259

40,00,00,180

6,00,00,00,000

-3,27,47,92,956

12,04,164

-12,15,877

3,12,51,95,511

50,43,42,132

29,66,41,494

80,09,83,626


Consolidated

Cash Flow

Reconciliation of Cash and Cash Equivalent with Balance Sheet

Cash and Bank Balances at the end of the year

Less: Bank Balances not considered as Cash and Cash Equivalent

as defined in AS3 Cash Flow statement

Net Cash and Cash equivalents (as defined in AS3 Cash Flow Statement)

included in Note No.18

63,54,42,867

1,81,14,608

61,73,28,259

84,39,51,585

4,29,67,959

80,09,83,626

Sanin Panicker

Company Secretary

Mohan Eddy

Wholetime Director

Tara Thiagarajan

Managing Director

M. Narayanan

President & CFO






Consolidated

31.03.2018 31.03.2017Year endedYear ended

A. Corporate Information

Madura Micro Finance Limited ("the Company"), headquartered in Chennai, is a Company incorporated on

02.09.2005 and registered with the Reserve Bank of India as a Non-deposit accepting Non-Banking Financial

Company (NBFC-ND) with effect from 28.02.2006. The Company got classified as a NBFC-MFI effective

11.12.2013. The consolidated financial statements relate to the company and its subsidiary, Madura Micro

Education Private Limited. The Group (comprising of the company and its subsidiary) are primarily engaged in

the business of providing loans to the Self Help Group (SHG) members and other loans and providing skill

development training courses.

B. Basis of Preparation

The financial statements have been prepared in accordance with generally accepted accounting principles in

India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects

with Accounting Standards notified under Section 133 of the Companies Act 2013, reads with Rule 7 of the

Companies (Accounts) Rules, the Companies (Accounting Standards) Amendment Rules, 2016 and the provisions

of Reserve Bank of India (RBI) as applicable to NBFC-MFI and a systematically important NBFC-ND. The financial

statements have been prepared on accrual basis and under historical cost convention except interest on loans

which have been classified as Non-Performing Assets (NPA) and is accounted for on cash basis. The accounting

policies followed are consistent with those of previous years.

C. Principles of consolidation

The financial statement of the subsidiary company in the consolidation are drawn up to the same reporting date

as of the company for purpose of consolidation.

The consolidated financial statements have been prepared in accordance with the According Standard (AS) 21

Consolidated Financial Statement) and generally accepted accounting principles.

The Consolidated Financial Statements relate to Madura Micro Finance Limited and its subsidiary Madura Micro

Education Private Limited. The Consolidated Financial Statements have been prepared on the following basis:

I. The Financial statements of the Company and its subsidiary have been prepared on a line by consolidation by

adding together the book values of like items of assets and liabilities, income and expenses as per the respective

financial statements duly certified by the Statutory Auditors of the respective companies. Intra group balances

and intra group transactions have been eliminated.

ii. The Consolidated Financial Statements have been prepared using uniform accounting policies for the like

transactions and other events in similar circumstances and are presented to the extent possible in the same

manner as the Company's individual financial statements.

iii. The subsidiary company consolidated in the Company's Financial Statements are as follows:

Name of the

Subsidiary

Country of

Incorporation

Percentage of

voting power held as

on 31 March 2018

Madura Micro Education

Private LimitedIndia 100% 100%

Percentage of

voting power held as

on 31 March 2017


Notes

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1) SIGNIFICANT ACCOUNTING POLICIES

a) Use of Estimates

The preparation of financial statements requires the Management to make estimates and assumptions

considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the

financial statements and the reported income and expenses during the reporting period like provision for

employee benefits. Management believes that the estimates used in the preparation of financial statements are

prudent and reasonable. Future results may vary from these estimates.

b) Revenue Recognition

I. Interest receivable on loans to Self Help Groups are accounted for on accrual basis at the agreed rate of

interest. Income on any other charges on non-performing asset is recognised only when realized. Any such

income recognised before the asset became non-performing and remaining unrealised is reversed.

ii. In accordance with Reserve Bank of India Guidelines on Securitisation transactions, gains arising from

assignment/securitisation are amortized over the life of the underlying portfolio loans. In case of loss, the same

is recognised in the Statement of Profit and Loss immediately. Income from excess interest spread is recognised

in the Statement of Profit and Loss net of any losses at the time of actual receipt.

iii. Loan processing fees collected from members are recognised on an upfront basis at the time of disbursement

of the loan.

iv. Interest income on deposits with banks is recognised on time proportion accrual basis taking into account the

amount outstanding and the rate applicable.

v. Dividend on Mutual fund units is recognised when the right to receive the dividend is established

vi. The fees receivable in respect of courses conducted is reckoned on accrual basis on the basis of the courses

conducted during the year .

vii. All other incomes are accounted for on accrual basis.

c) Tangible Fixed Assets

All Fixed Assets are stated at historical cost less accumulated depreciation and impairment loss, if any. Cost

comprises the purchase price and any attributable cost of bringing the asset to its working condition for its

intended use.

d) Intangible assets

Computer software and educational content on digital media are stated at the cost of acquisition and amortized

over a period of three years, based on expected future economic benefits accruing to the Company from the year

of acquisition .

e) Depreciation

Depreciation on Tangible Fixed Assets are depreciated on Straight Line Method as per the useful life given in

Schedule II except the following cases where it is depreciated as per the useful lives estimated by management.

Asset Type

Motor Vehicles

Furniture & Fixtures

Electrical Fittings

Temporary Structures

Useful Life

5 years

6.67 years

5 years

1 year

Madura Micro Finance

Notes

107

Fixed assets costing less than Rs.5000/- are fully depreciated in the year of purchase

f) Leases

Leases where the lessor effectively retains, substantially all the risks and benefits of ownership of the leased item,

are classified as operating leases. Operating lease payments are recognised as an expense in the Statement of

profit and loss on a straight line basis over the lease term.

g) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on

which such investments are made, are classified as current investments. All other investments are classified as

long-term investments. Current investments are carried in the financial statements at lower of cost and fair value

determined on an individual investment basis except for investments in the units of mutual funds in the nature of

current investments that have been valued at the net asset value declared by the mutual fund in respect of each

particular scheme, in accordance with the NBFC directions. Long term investments are carried at cost. However,

provision for diminution in value is made to recognise a decline other than temporary in the value of the

investments. On disposal of an investment the difference between carrying amount and net disposal proceeds

are charged or credited to the statement of profit and loss.

h) Borrowing Costs

Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of

funds. Ancillary borrowing costs including processing fee incurred in connection with arrangement of borrowing

are recognised in the period in which they are incurred.

I) Foreign Currency Transactions

Foreign currency transactions are accounted for at the rate of exchange prevailing on the date of transactions.

Outstanding foreign currency monetary assets and liabilities are translated at the year end rates. Gains/losses

arising on restatement/settlement are adjusted to the Statement of Profit and Loss as applicable.

Company has adopted Accounting of derivative taken for hedging foreign currency loan based on Guidance note

on accounting for Derivative Contracts issued by ICAI. As per this guidance note, Fair value changes on Mark to

Market (gains / losses on MTM) of derivative is accounted to Profit & Loss as on closing date and corresponding

foreign currency loan is stated at closing spot rate as exchange fluctuation.

j) Employee Benefits

1. Retirement benefits in the form of provident fund are defined contribution schemes. The Company has no

obligation, other than the contribution payable to the respective funds. The Company recognises contribution

payable to the respective funds as expenditure, when an employee renders the related service.

2. Gratuity liability, which is unfunded, is a defined benefit obligation and is provided for on the basis of an

actuarial valuation on projected unit credit method made at the end of each financial year. Actuarial gains and

losses for defined benefits plans are recognised in full in the period in which they occur in the Statement of profit

and loss.

3. The company treats accumulated leave expected to be carried forward beyond twelve months as long-term

employee benefit for measurement purposes. Such long-term compensated absences are provided for based on

the actuarial valuation using the projected unit credit method at the end of each financial year .


Notes

k) Income Taxes

1. Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be

paid to the tax authorities in accordance with the Income Tax Act, 1961, enacted in India.

2. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income

originating during the current year and reversal of timing differences for the earlier years. Deferred tax is

measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

3. Deferred tax assets are recognised for deductible timing differences only to the extent that there is a reasonable

certainty that sufficient future taxable income will be available against which such deferred tax assets can be

realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred

tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be

realized against such future taxable profits.

4. The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes down the

carrying amount of deferred tax asset to the extent that is no longer reasonably certain or virtually certain, as the

case may be, that sufficient future taxable income will be available against which deferred tax asset can be

realized

l) Earnings per Share

Basic earnings per share is calcuated by dividing the net profit or loss for the year attributable to equity

sharehoders by the weighted average number of equity shares outstanding during the year. For the purpose of

calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and

the weighted avaerage number of shares oustanding during the year are adjusted for the effects of all dilutive

potential equity shares.

m) Provisions

A provision is recognised when the Company has a present obligation as a result of past event, it is probable that

an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable

estimate can be made of the amount of the obligation.

n) Classification & Provisioning of Loan Portfolio

Classification and provisioning of Microfinance and other is being made as below

i) Standard asset means the asset in respect of which, no default in repayment of principal or payment of interest

is perceived and which does not disclose any problem nor carry more than normal risk attached to the business;

ii) Non-Performing asset (NPA) means an asset for which interest/principal payment has remained overdue for a

period of 90 days or more and includes the total Principal outstanding in respect of the loans where

interest/principal repayment has remained overdue for a period of 90 days or more.

Provisioning Norms:

a) Provision for Standard Advances is made at 0.4% on Standard Assets outstanding

b) Provision for Non-Performing Assets is created for the total principal outstanding on the loan as under:

Higher of a) 1% of the outstanding loan portfolio OR b) 50% of the aggregate loan where interest/principal

repayment has remained overdue for a period of 90 days or more and 100% of aggregate loan where

interest/principal repayment has remained overdue for a period of 180 days or more

In respect of assets de-recognised, provision is made at the rate of 0.4% of the outstanding amounts of assets de-

recognised from the books of the Company as at the balance sheet date.

o) Securitisation

The Company securitises out its loan portfolio, subject to the Minimum Holding Period (MHP) criteria and the

Minimum Retention Requirements (MRR) of RBI, to Special Purpose Vehicles (SPVs) in securitisation transactions.

Such securitised portfolio are de-recognised in the balance sheet when they are sold (true sale criteria being full

met with) and consideration is received by the Company. At the time of the deal, the Company provides liquidity

and credit enhancements on the securitised portfolio, as specified by the rating agencies, not exceeding 20% of

the total securitised instruments, in line with RBI guidelines. The Company also acts as a servicing agent for the

securitised deals. 109Madura Micro Finance

Notes

Notes

2. SHARE CAPITAL

Authorised

1,00,00,000 Equity Shares of Rs.10/- each

Issued, Subscribed and Paid up 71,94,761 (previous year 66,97,521) Equity Shares of Rs.10/- each fully paid up

100,000,000 100,000,000

7,19,47,610 55,575,170

31.03.2018 31.03.2017

Shares held by a shareholder holding more than 5%

Name of the shareholder

Ms.Tara Thiagarajan

A.V.Thomas and Co Ltd

Midland Rubber & Produce Company Ltd

Employees' Welfare Trust

Elevar Equity Mauritius

Mr. M Narayanan

No. of shares

23,30,574

11,59,435

11,59,436

4,95,667

8,65,916

3,64,366

%

32.39%

16.11%

16.12%

6.89%

12.04%

5.06%

No. of shares

24,42,199

8,55,002

8,55,004

4,95,667

8,65,916

3,64,366

%

36.46%

12.77%

12.77%

7.40%

12.93%

5.44%

Reconciliation of the number of shares outstanding at the

beginning and end of the year

Number of shares outstanding at the beginning of the year

Number of shares issued during the year

Number of shares outstanding at the end of the year

66,97,521

4,97,240

7 1,94,761

55,57,517

11,40,004

66,97,521

The Company has issued only one class of shares, viz., Equity Shares. Each Equity Share has a face value of

Rs.10/- each and is entitled to one vote. On liquidation each share is entitled to participate in the assets

proportionate to the paid up value of the share.

59,65,18,893

24,00,27,693

83,65,46,586

22,18,15,000

7,97,00,000

30,15,15,000

84,28,29,871

39,15,55,119

1,23,43,84,990

7,97,00,000

1,15,46,84,990

2,29,27,46,576

3. Reserves and Surplus

Share Premium Account


Add: Received during the year on shares issued

Statutory Reserve (as required under Sec.45IC of RBI Act 1934)


Add: Transfer from Profit and Loss Account

Surplus, Balance in Profit and Loss Account


Add: Profit after tax for the year

Less: Transfer to Statutory Reserve (as required under Sec.45IC

of RBI Act 1934)

Total of Reserves and Surplus Total of Reserves and Surplus


I) Debentures

a) Secured

14.15% Non-convertible Debentures - Privately placed, Listed.

Secured by hypothecation of loans granted to Self Help Groups.

The maturity date of the Debentures is 13-Sep-2020, with 99.99%

to be redeemed on 13-Sep-2019 and balance on maturity date.

36,60,00,00036,60,00,000

20,79,18,753

38,86,00,140

59,65,18,893

16,08,15,000

6,10,00,000

22,18,15,000

61,21,41,054

29,16,88,817

90,38,29,871

6,10,00,000

84,28,29,871

1,66,11,63,764


Notes


Secured by exclusive charge on the loans created out of the

proceeds of the debentures. The NCD is redeemable in one bullet

payment on 08-May-2018.


Secured by exclusive charge on loans created out of the proceeds of

the debentures and immovable properties. The NCD is redeemable

in one bullet payment on 31-July-2020.

11.40% Non-convertible Debentures - Privately placed, Un-listed

Secured by exclusive charge on loans created out of the proceeds of

the debentures and immovable properties. The NCD is redeemable

in one bullet payment on 04-Dec-2020.

b) Unsecured

14.25% Non-Convertible Debentures - Privately placed, Listed. The

Debentures are unsecured and are redeemable on 29-Mar-2024.

40,00,00,00040,00,00,000

-40,00,00,000

-33,00,00,000

50,00,00,00050,00,00,000

ii) Term Loans from Banks and Financial Institutions

Secured

From Banks

Axis Bank

City Union Bank

DCB Bank

Dhanalakshmi Bank

Federal Bank

IDBI Bank

South Indian Bank

Canara Bank

Lakshmi Vilas Bank

Kotak Mahindra Bank

Dena Bank

Indian Bank

Andhra Bank

Bank of Baroda

Bandhan Bank

Bank of Maharashtra

RBL Bank Limited

State Bank of Hyderabad

State Bank of Travancore

IDFC Bank

Union Bank of India

State Bank of India

Vijaya Bank

21,42,85,715

3,54,73,274

12,08,30,500

32,80,27,990

-

59,04,76,180

10,45,45,450

3,42,85,711

9,25,74,779

5,00,00,000

11,50,00,000

21,74,17,455

1,35,08,695

43,66,66,667

-

19,34,998

6,25,00,000

9,44,43,171

15,00,00,000

17,38,09,524

19,72,72,727

39,77,86,928

2,25,00,000

46,14,28,575

4,87,51,446

14,83,11,500

24,84,00,909

25,00,00,000

46,85,08,000

14,99,99,810

-

3,37,87,894

10,00,00,000

17,50,00,000

13,88,88,495

-

22,66,66,671

25,00,00,000

-

30,00,00,000

-

-

83,09,52,388

26,36,36,364

35,02,83,321

-

From Financial Institutions


Micro Units Development and Refinance Agency Ltd

Au Financiers India Ltd

1,35,41,66,666

18,04,00,000

9,99,99,999

1,25,91,66,666

5,32,00,000

-

31.03.2018 31.03.2017


Notes



Mahindra Finance


Reliance Commercial Finance Limited


Maanaveeya Development and Finance (P) Ltd




L&T Finance


National Skill Development Corporation

Grand Total

iii) Less: Payable within 12 months disclosed under other Current

9,97,91,197

-

-

5,62,49,998

26,18,63,420

8,99,29,172

1,33,33,332

10,12,40,809

5,88,60,000

26,56,00,000

3,33,33,333

7,46,23,456

2,02,08,924

7,42,89,40,070

3,97,46,63,005

3,45,42,77,065

27,74,25,798

20,00,00,000

46,17,32,217

2,50,00,004

-

4,99,74,162

-

-

5,84,00,000

24,93,27,044

-

13,47,87,621

2,02,08,924

9,22,98,37,809

4,41,53,84,386

4,81,44,53,423

All the above loans (except loan from National Skill Development Corporation) are secured by a charge on the

advances granted to Self Help Groups from the proceeds of the Loans. Loan from National Skill Development

Corporation is secured by a charge on the assets acquired out of the loan, project cash flows and intellectual

property of the Subsidiary Company. The loan is also secured by corporate guarantee issued by the Holding

Company, Madura Micro Finance Limited.

The terms of repayment of the term loans are as under.

Nabkisan Finance Ltd

Axis Bank

Axis Bank

Axis Bank

Bandhan Bank

Bank of Baroda

City Union Bank

City Union Bank

Dena Bank

DCB Bank

DCB Bank

DCB Bank

Dhanalakshmi Bank

Dhanalakshmi Bank

Dhanalakshmi Bank

Federal Bank

Hero FinCorp Ltd

Hero FinCorp Ltd


IDBI Bank

IDBI Bank

IDBI Bank

12.50%

10.90%

10.20%

10.10%

10.80%

10.20%

12.75%

11.00%

10.50%

11.08%

11.08%

10.40%

12.60%

11.85%

11.40%

10.65%

12.75%

10.50%

10.75%

11.50%

11.75%

11.60%

36

24

24

24

24

35

36

36

33

26

26

26

36

36

36

24

26

36

36

24

24

24

Quarterly

Quarterly

Quarterly

Quarterly

Quarterly

Monthly

Monthly

Monthly

Quarterly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Quarterly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

83,33,333

3,57,14,285

3,57,14,286

2,00,00,000

3,57,14,285

1,33,33,333

15,62,620

8,33,333

2,50,00,000

20,83,333

20,83,333

50,00,000

28,00,000

41,70,000

56,00,000

3,57,14,285

47,42,449

65,67,440

55,55,5558

1,43,00,000

47,62,000

47,62,000

4,99,74,162

7,14,28,575

25,00,00,000

14,00,00,000

25,00,00,000

22,66,66,671

1,87,51,446

3,00,00,000

17,50,00,000

1,66,56,000

1,66,56,000

11,49,99,500

3,28,00,000

7,49,61,820

14,06,39,089

25,00,00,000

2,74,25,798

25,00,00,000

20,00,00,000

14,27,00,000

5,23,80,000

7,14,28,000

Name of the Bank / Financial

Institution

Rate of

interest

Tenor of

Loan

Mode of

Repayment

Instalment Bal. o/s as on

31.03.18

31.03.2018 31.03.2017


Notes

IDBI Bank

IDFC Bank

IDFC Bank

IDFC Bank

IDFC Bank

IDFC Bank

IDFC Bank

IDFC Bank

Indian Bank

Kotak Mahindra Bank

Kotak Mahindra Bank





Mahindra Finance

Mahindra Finance

Mahindra Finance

Mahindra Finance

Mahindra Finance

MAS Financial Services Ltd

MUDRA

NABARD

NABARD

NABARD

NABARD

NABARD

NABARD

NABARD

RBL Bank Ltd

RBL Bank Ltd

RBL Bank Ltd

RBL Bank Ltd

South Indian Bank

South Indian Bank

South Indian Bank







State Bank of India (Previously SBH)

State Bank of India

State Bank of India (Previously SBT)

Union Bank of India

Union Bank of India


Incofin - Rural Impulse Fund NCD

AAV SARL - 1 NCD

AAV SARL - 1 NCD

Hinduja Leyland Finance Ltd - NCD

10.50%

12.75%

12.75%

11.40%

10.90%

10.80%

10.90%

10.50%

11.15%

10.40%

10.15%

12.65%

12.65%

11.85%

11.85%

12.00%

12.00%

10.75%

10.75%

10.75%

12.00%

10.25%

10.50%

11.50%

11.50%

11.50%

11.00%

11.00%

10.95%

10.15%

10.85%

11.05%

10.85%

13.00%

12.15%

11.00%

12.10%

12.10%

10.00%

13.00%

13.00%

11.15%

10.95%

11.00%

10.95%

11.80%

10.25%

12.80%

14.84%

14.15%

11.40%

11.50%

24

24

24

24

24

24

24

24

39

24

24

36

36

36

36

24

24

24

24

24

24

36

36

36

36

60

60

60

60

24

24

24

24

36

36

39

24

24

24

36

36

36

39

35

36

36

36

96

36

60

36

36

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Half Yearly

Half Yearly

Half Yearly

Half Yearly

Half Yearly

Half Yearly

Half Yearly

Monthly

Monthly

Monthly

Monthly

Quarterly

Quarterly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Monthly

Quarterly

Bullet

Bullet

Bullet

Bullet

1,20,00,000

71,42,860

47,61,905

41,66,666

83,33,333

83,33,333

83,33,333

83,33,333

55,55,555

20,83,333

41,66,667

8,33,334

19,44,447

15,15,156

6,06,062

23,54,018

47,07,674

46,48,784

1,16,18,227

23,23,645

20,83,333

1,06,00,000

1,66,66,665

2,50,00,000

3,33,33,333

3,75,00,000

7,50,00,000

6,00,00,000

6,00,00,000

22,72,727

22,72,727

22,72,727

90,90,909

90,90,910

45,45,500

83,33,334

4,16,600

37,49,400

20,83,333

16,85,000

16,85,000

24,00,244

28,00,000

1,66,07,000

45,45,000

54,55,000

75,76,000

1,10,75,520

-

-

-

-

20,20,00,000

71,42,860

2,38,09,520

6,66,66,672

15,83,33,335

17,50,00,001

20,00,00,000

20,00,00,000

13,88,88,495

2,50,00,000

7,50,00,000

25,00,004

58,33,338

1,81,81,822

72,72,730

2,85,60,664

6,52,69,202

8,86,37,887

23,11,41,906

4,81,22,559

2,50,00,004

5,32,00,000

1,66,66,665

5,00,00,000

10,00,00,001

13,75,00,000

27,50,00,000

28,00,00,000

40,00,00,000

20,00,00,000

2,72,72,727

3,40,90,909

3,86,36,364

1,81,81,810

3,18,18,000

10,00,00,000

9,00,000

75,00,000

5,00,00,000

1,73,77,802

2,46,22,998

9,27,86,821

6,08,65,393

19,85,02,928

9,09,15,000

8,18,18,182

18,18,18,182

24,93,27,044

40,00,00,000

36,60,00,000

33,00,00,000

40,00,00,000



Institution

Rate of

interest

Tenor of

Loan

Mode of

Repayment


31.03.18

Notes

Northern Arc Capital Ltd - NCD

National Skill Development Corporation

Total

14.50%

6.00%

84

96

Bullet

Quarterly

12,89,600

50,00,00,000

2,02,08,924

9,22,98,37,809

5. OTHER LONG TERM LIABILITIES

Flexi Grant from SIDBI

6. OTHER LONG TERM PROVISIONS





Provision for Impairment on Investment in Subsidiary

Provision for Impairment of Advance to Subsidiary

Provision for MTM Loss

7. SHORT TERM BORROWINGS

CASH CREDIT FROM BANKS :

Secured

SOUTH INDIAN BANK - CASH CREDIT

92,37,216

66,81,327

1,51,32,974

6,86,814

1,49,00,000

74,12,091

1,93,34,965

7,33,85,387

1,74,52,516

5,85,736

5,85,736

69,09,735

45,10,717

2,41,12,233

-

1,49,00,000

74,12,091

-

5,78,44,776

51,814

5,85,736

5,85,736

The above limit is secured by available current assets both present and future.

The Cash Credit/OD facility limited to Rs. 2 Crores and is renewable every year

and carries interest at 11.35% per annum.

CITY UNION BANK - OVERDRAFT

The above limit is secured by a charge on the loans granted to Self Help Groups

out of the proceeds of the loan. The Cash Credit/OD facility limited to Rs. 1

Crores and is renewable every year and carries interest at 12.75% per annum.

13,57,235 1,11,47,921

ICICI Bank Adyar

Represents cheques issued in excess of the balance available with the Bank.

88,401 3,03,001

1,88,98,152 1,15,02,736


Current maturities of Long Term Debt

(Refer Note No.4 for security and repayment)

Interest accrued but not due

Statutory Liabilities

Employee Benefit Liabilities

Others

4,41,53,84,386

7,56,81,236

1,14,03,285

4,00,99,387

1,26,04,068

4,55,51,72,362

3,97,46,63,005

5,23,55,811

69,44,375

2,43,81,402

2,77,00,787

4,08,60,45,380

8. TRADE PAYABLES

Payable on account of Securitization

Insurance Payable

Sundry Creditors

6,95,81,412

5,17,05,006

5,40,76,435

17,53,62,853

2,04,68,718

4,96,09,293

5,13,311

7,05,91,322


Others

Provision for Tax (Net of Advance Tax)




1,53,50,268

20,64,916

2,92,54,279

11,15,43,516

15,82,12,979

-

2,60,567

3,45,92,440

4,31,30,172

7,79,83,179



Institution

Rate of

interest

Tenor of

Loan

Mode of

Repayment


31.03.18

31.03.2018 31.03.2017

Fre

eh

old

La

nd

Bu

ilid

ing

sP

lan

t &

Eq

uip

me

nt

Fu

rnit

ure

&

Fit

tin

gs

Ve

hic

les

Off

ice

Eq

uip

me

nt

Ele

ctr

ica

l

Fit

tin

gs

Co

mp

ute

rs

11

. Ta

ng

ible

Ass

ets

GR

OS

S B

LO

CK

-AT

CO

ST

As

at

1 A

pri

l 2

01

6

Ad

dit

ion

s

Dis

po

sals

As

at

31

Ma

rch

20

17

Ad

dit

ion

s

Dis

po

sals

As

at

31

Ma

rch

20

18

- - - -

17

,06

,35

5 -

17

,06

,35

5

- - - -

21

,79

,40

5 -

21

,79

,40

5

18

,50

,75

7

49

,46

4 -

19

,00

,22

1 - -

19

,00

,22

1

53

,20

,38

6

27

,16

,55

5 -

80

,36

,94

1

21

,71

,27

9 -

1,0

2,0

8,2

20

AC

CU

MU

LA

TE

D D

EP

RE

CIA

TIO

N

As

at

1 A

pri

l 2

01

6

Ad

dit

ion

s

Dis

po

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As

at

31

Ma

rch

20

17

Ad

dit

ion

s

Dis

po

sals

As

at

31

Ma

rch

20

18

- - - - - - -

6,0

1,0

22

2,5

5,1

69

-

8,5

6,1

91

2,1

1,0

83

-

10

,67

,27

4

NE

T B

LO

CK

As

at

31

Ma

rch

20

17

As

at

31

Ma

rch

20

18

-

17

,06

,35

5

-

21

,54

,77

5

30

,76

,33

2

21

,21

,38

6 -

51

,97

,71

8

21

,06

,72

1 -

7

3,0

4,4

39

- - - -

24

,63

0 -

24

,63

0

10

,44

,03

0

8,3

2,9

47

28

,39

,22

3

29

,03

,78

1

45

,37

,34

7

- -

4

5,3

7,3

47

- -

4

5,3

7,3

47

39

,64

,12

6

3,8

3,3

65

-

43

,47

,49

1

1,8

6,8

18

-

45

,34

,30

9

1,8

9,8

56

3,0

38

1

,16

,36

,39

7

11

,46

,60

7 -

1,2

7,8

3,0

04

15

,08

,92

8 -

1,4

2,9

1,9

32

1,1

1,8

9,8

77

7,4

7,5

89 -

1,1

9,3

7,4

66

5

,42

,12

6

-

1,2

4,7

9,5

92

8,4

5,5

38

18

,12

,34

0

13

,88

,96

3 - -

13

,88

,96

3

98

,79

8 -

14

,87

,76

1

7,8

0,5

62

5,1

3,6

48

3,3

3,2

44

2,7

5,1

57

-

6,0

8,4

01

3,6

5,7

12

-

9,7

4,1

13

2,8

2,2

1,0

64

1,3

3,4

6,0

99

-

4

,15

,67

,16

3

2,0

7,8

5,8

33

-

6,2

3,5

2,9

96

1,5

9,8

4,9

72

2,4

5,5

9,3

97

1

,64

,82

,94

0

90

,99

,25

1 -

2,5

5,8

2,1

91

1,2

2,1

1,4

08

-

3,7

7,9

3,5

99

Te

mp

ora

ry

Str

uctu

res

in R

en

ted

Pre

mis

es -

14

,40

8,0

16

-

14

,40

8,0

16

-

-

14

,40

8,0

16

- - -

14

,40

8,0

16

-

14

,40

8,0

16

-

-

14

,40

8,0

16

Gra

nd

To

tal

5,2

9,5

4,9

13

3,1

6,6

6,7

41

-

8,4

6,2

1,6

55

2,8

4,5

0,5

98

-

11

,30

,72

,25

3

3,5

6,4

7,5

41

2,7

2,8

9,9

33

-

6,2

9,3

7,4

74

1

,56

,48

,49

8 -

7,8

5,8

5,9

72

2,1

6,8

4,1

81

3,4

4,8

6,2

81


Software Micro

Eduction

Products

Educational

content on

digital media

12. Intangible Assets

GROSS BLOCK-AT COST

As at 1 April 2016

Additions

Disposals

As at 31 March 2017

Additions

Disposals

As at 31 March 2018

1,10,42,065

23,52,440

-

1,33,94,505

32,76,241

-

1,66,70,746

96,18,959

-

-

96,18,959

-

-

96,18,959

1,89,78,583

13,46,340

-

2,03,24,923

-

-

2,03,24,923

ACCUMULATED DEPRECIATION

As at 1 April 2016

Additions

Disposals

As at 31 March 2017

Additions

Disposals

As at 31 March 2018

1,00,52,310

9,06,343

-

1,09,58,653

18,57,573

-

1,28,16,226

1,14,46,058

65,75,288

-

1,80,21,346

12,99,542

-

1,93,20,888

NET BLOCK

As at 31 March 2017

As at 31 March 2018

24,35,852

38,54,520

-

-

96,17,997

962

-

96,18,959

-

-

96,18,959

23,03,577

10,04,035

Grand Total

(Rs. in lakhs)

3,96,39,607

36,98,780

-

4,33,38,387

32,76,241

-

4,66,14,628

3,11,16,365

74,82,593

-

3,85,98,958

31,57,115

-

4,17,56,073

47,39,429

48,58,555

NON CURRENT ASSETS

13. NON CURRENT INVESTMENTS

Trade Investments

a) Investment in Equity Shares - Unquoted at cost

I) In other Companies

2,00,000 Equity Shares of Rs.10/- each in Alpha Micro Finance

Consultants P Ltd 2,000,000 2,000,000

2,000,000 2,000,000

14. DEFERRED TAX ASSETS (NET)

3,86,70,136

3,69,998

3,90,40,134

(I) Deferred Tax Asset

On account of provisions made allowable on basis of payment

On account of depreciation

(Though the subsidiary has unabsorbed losses, it has been

considered prudent not to recognise any deferred tax asset)

3,07,54,700

15,35,983

3,22,90,683

-

15. LONG TERM LOANS AND ADVANCES

31,62,794

I) Loans and Advances to Others

Secured


Notes

31.03.2018 31.03.2017


Unsecured



2,40,91,63,370

20,59,919

3,73,46,65,083

4,54,15,511

2,41,12,23,2893,78,32,43,388

1,12,56,699

9,19,67,417

2,99,32,798

95,90,751

3,58,000

14,31,05,665

9 3,16,997

14,41,68,594

1,88,70,763

93,89,911

3,58,000

18,21,04,265


Other Deposits and Advances



Under lien for Securitisation

Advance Tax (Net of Provision for Tax)

Preliminary Expenses (to the extent not written off or adjusted)

-

-

5,00,00,000

50,000,000

17. CURRENT INVESTEMENT

Investment in Units of Mutual Fund - unquoted

(Previous year 18,779.023 units) of UTI Liquid Fund - Growth Plan

1,87,847

41,68,88,526

1,81,14,608

20,02,51,886

63,54,42,867

8,09,001

7,03,94,13,770

27,32,98,941

5,75,38,406

1,24,17,481

12,51,32,989

99,77,600

14,75,28,070

8,891

14,63,73,464

4,29,67,959

65,46,01,271

84,39,51,585

-

5,74,22,90,130

3,84,17,117

4,04,77,036

1,69,76,745

10,08,14,708

-

11,77,91,453

Cash on hand

Bank balances in current account

Bank Balance in earmarked Deposit account

under lien to banks for various credit facilities granted

Other deposits with Bank

18. CASH AND CASH EQUIVALENTS

Microfinance and other loans repayable within 12 months

Secured


Unsecured



Microfinance Loans - Considered Doubtful

19. SHORT TERM LOANS AND ADVANCES

Advances recoverable in cash or in kind or for value to be received

Unsecured Considered Good

Due by others



Under lien for Securitization

20. OTHER CURRENT ASSETS

Interest on Loans

Income on Securitised Portfolio (Excess Interest Spread)

Interest from Banks

Processing and other charges

21. REVENUE FROM OPERATIONS

2,10,56,73,813

36,18,727

2,10,91,475

10,51,46,543

1,62,92,78,379

1,75,77,060

2,97,23,507

7,64,79,433

7,37,02,51,117

7,37,10,60,118

5,82,11,84,283

5,82,11,84,283Short Term Loans and Advances Total

Notes31.03.2018 31.03.2017

-


Notes

Commission Received

Course fees received

64,40,767

67,08,400

-

95,36,850

2,24,86,79,725 1,76,25,95,229

Bad Debts recovered

Dividend received


Provision written back on Standard Assets

Interest on deposits with Bank

Others

22. OTHER INCOME

1,53,22,400

89,73,306

56,76,403

-

4,77,311

1,19,24,751

4,23,74,171

1,83,06,318

-

3,68,76,266

1,43,17,420

81,774

1,99,38,317

8,95,20,095

Salaries and Wages

Honorarium paid

Contribution to Provident Fund and Other Funds

Contribution to Employees State Insurance

23. EMPLOYEE BENEFIT EXPENSES

21,94,16,606

1,99,34,966

1,81,23,026

4 4,25,537

28,37,00,460

2,12,03,937

2,30,43,341

62,16,608

45,08,988

55,40,615

78,02,158

35,20,16,107 27,12,79,527



Staff Insurance & Welfare Expenses

20,36,823

24,57,437

48,85,132

Interest Expenses

Interest on Non Convertible Debentures

Interest on Term Loans

Interest on Cash Credit

Other Interest

Other Borrowing Cost

Processing Charges

Bank charges

Net Loss/Gain from Foreign Currency


24. FINANCE COST

11,15,39,412

59,99,76,657

2,85,042

69,300

3,12,21,000

29,36,952

-

74,60,28,363

22,38,62,905

66,96,79,856

1,46,705

15,09,960

1,62,92,650

45,11,427

1,41,37,529

93,01,41,032

Office Rent

Rates and Taxes

Electricity charges

Insurance

Auditors' Remuneration

For Audit

For Certification and other services

Office Maintenance

Bad Debts written off

Professional Fees

Provision on Standard Assets


Provision on Assets Derecognised

Impairment of investment in Subsidiary Company

Directors Sitting Fees

Traveling expenses

25 . OTHER EXPENSES

1,71,93,896

57,818

28,83,642

4,24,247

10,18,050

3,42,000

71,67,827

3,92,63,561

6,13,00,635

64,72,589

3,70,22,582

-26,96,909

1,49,00,000

31,39,509

2,69,22,222

2,41,28,110

2,65,823

33,04,336

8,49,154

11,57,545

5,450

83,66,461

13,57,20,141

6,29,45,199

-

6,84,13,344

24,91,163

-

31,37,175

3,61,04,519

31.03.2018 31.03.2017


Notes

Corporate Social Responsibility Expenses (See Note No.35)

Other Expenses

20,29,913

5,06,84,133

26,81,25,715

58,67,251

6,62,32,906

41,89,88,577

Income Tax and PF demands

26. CONTINGENT LIABILITIES

31-Mar-18

Rs

Sl Details of Demand Forum where dispute is pending 31-Mar-17

Rs

71,01,9231 Penalty under Income Tax

Act, 1961 - AY 2007-08

High Court of Judicature of

Madras

71,01,923

27,42,1602 Demand under Income

Tax Act, 1961 - AY 2014-15

Assessing Officer due to Tribunal

having set aside the original

27,42,160

25,37,0203 Demand under Employee

Provident Fund Act, 1952

for 2010-11

EPF Appellate Tribunal 25,37,020

ii) Corporate Guarantee

The Company has given corporate guarantee in favour of National Skill Development Centre in respect of the loan

granted by them to the subsidiary company, Madura Micro Education Private Limited. The amount of loan

outstanding as on 31st March 2018 in the books of Subsidiary is Rs. 2,02,08,924.

27. The appointment and payment of remuneration to the Managing Director for the period from 26th Feb 2012 to 31st

Mar 2018 is subject to the approval of the Central Government. A sum of Rs. 3,04,10,424 (excluding gratuity) has

been paid as remuneration to the Managing Director for the period Feb 2012 to Mar 2018. The Company has taken

necessary action in this matter and is confident of obtaining the approval shortly. Hence no adjustments have been

made to the financial statements towards this.

LIST OF RELATED PARTIES

i) Scimergent Analytics and Education Private Limited - Company under common control

ii) Scisphere Analytics India Private Limited - Company under common control

iii) Microcredit Foundation of India - Company under common control

iv) Midland Rubber and Produce Company Limited - Companies in which directors can exercise significant influence

v) A. V. Thomas and Co. Limited - Companies in which directors can exercise significant influence

vi) Ms. Tara Thiagarajan - Key Management Personnel

vii) Mr. Mohan Eddy - Key Management Personnel

viii) Mrs. Pamela Mohan - Relative of Key Management Personnel


DETAILS OF TRANSACTIONS WITH RELATED PARTIES

Particulars*

Remuneration to Key Managerial Personnel

i) Ms. Tara Thiagarajan - Managing Director

ii) Mr. Mohan Eddy - Whole Time Director

Professional Fees

I) Scimergent Analytics and Education Pvt Ltd

ii) Scisphere Analytics India Private Limited

Rent Paid

I) Mrs. Pamela Mohan

Details of Balances with related parties

*Amounts exclusive of taxes

67,29,600

49,13,000

1,54,73,750

4 4,85,500

1 6,20,000

NIL

64,88,844

43,80,000

1,80,50,000

39,65,000

16,20,000

NIL

31.03.2018 31.03.2017


31

.3.2

01

8 - -

-

2,2

3,1

2,0

91

-74

,12

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1

-

-

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31

.3.2

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67

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68

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8

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5,9

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32

2,8

7,7

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1,4

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31

.3.2

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9,2

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7,9

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7,8

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3

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31

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95

61

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9,7

9,6

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3,1

7,2

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8,0

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31

.3.2

01

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1,7

6,2

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5,2

29

44

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9

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3,7

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48

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29

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7

9

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0

7,7

5,8

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3

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1

3,4

7,7

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26

-


29

. T

he

Gro

up

op

era

tes

in t

wo

pri

ma

ry s

eg

me

nts

, viz

., F

ina

nci

ng

- le

nd

ing

to

Se

lf H

elp

Gro

up

s a

nd

oth

er

loa

ns

an

d M

icro

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uca

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n.

Th

ese

are

th

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ep

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in

form

ati

on

is

furn

ish

ed

be

low

.

Currency Nature of Transaction

USD

External

Commercial Borrowing

Foreign

Currency

Indian

Rupees

31.3.2017

USD 3.83 million 24,93,27,044

Foreign

Currency

Indian

Rupees

31.3.2018

26,56,00,000USD 4 million

The above exposure is hedged fully for interest rate risks and forex rate risk by a currency swap agreement with a bank.

30. Foreign Currency exposures recognised by the Company that have been hedged are as under:







Current

Non-Current



Interest cost





Discount Rate



Attrition rate


Leave Encashment




Plan asset (liability)Current

Non-Current

Change in present value of Other Defined Benefit Plan


Interest cost





Discount Rate



Attrition rate

Proportion of leave availed

Disclosures have been made to the extent provided by the actuary.


-

81,35,284

-

-81,35,284

1 2,25,549

6 9,09,735

60,12,462

24,57,437

-3,34,615

81,35,284

6.80%

Not applicable

10%

22%

(Subsidiary 10%)

-

65,41,552

-

-65,41,552

20,30,835

45,10,717

48,00,235

20,36,823

-2,95,506

65,41,552

6.80%

Not applicable

10%

22%

(Subsidiary 10%)

10%

-

1,29,92,878

-

- 1,29,92,878

37,55,662

92,37,216

81,35,284

55,40,615

-6,83,021

1,29,92,878

6.94%

Not applicable

10%

30%

(Subsidiary 10%)

-

1,02,52,791

-

- 1,02,52,791

35,71,464

66,81,327

65,41,552

45,08,988

-7,97,749

1,02,52,791

6.94%

Not applicable

10%

30%

(Subsidiary 10%)

10%

Notes


Notes

Nil

i) Provision for Standard Assets


Reversal of provision made during the period



ii) Provision for Non Performing Assets






iii) Provision for assets derecognised






32 . PROVISIONS AND CONTINGENCIES

Provision is recognised in the Balance Sheet when, the Company has a present obligation as a result of a

past event and it is probable that an outflow of economic benefits will be required to settle the obligation

and a reliable estimate of the amount of the obligation can be made

33 . Earnings in Foreign Exchange

34. Expenditure in Foreign Currency

Travelling Expenses

Professional Charges

Interest and Finance charges

Repayment of External Commercial Borrowings

Nil

11,38,069

1,35,65,711

Nil

35. The company has made contributions towards Corporate Social Responsibility as detailed below

(a) Gross amount required to be spent by the company during the year

(b) Amount spent during the year

5,87,04,673

- 1,43,17,420

-

4,43,87,253

4,31,30,172

6,84,13,344

-

-

11,15,43,516

2,60,567

27,51,730

-

2,60,567

27,51,730

Nil

Nil

17,45,729

1,46,09,382

1,10,75,520

5,22,32,084

64,72,589

-

5,87,04,673

61,07,590

3,70,22,582

-

-

4,31,30,172

29,57,476

-

-

26,96,909

2,60,567

73,46,718

58,67,251

SI Particulars

Construction/acquisition of any asset

TotalIn cash Yet to be paid

in cash

( ) - - -

On Purpose other than (I) above( ) 5 8,67,251 - 5 8,67,251

36. Earnings per Share - Basic and Diluted

Profit after Tax

Weighted average of number of Equity Shares of face value of Rs.10/- each

Earnings per share - Basic

Earnings per share - Diluted

39,15,55,119

70,92,588

55.21

55.21

29,16,88,816

61,29,081

47.59

47.59


Notes

Total 100% 2,36,46,94,186 39,15,55,119100%

As % of

consolidated

profit or loss

Amount

Rs.

As % of

consolidated

net assets

Amount

Rs.

Net assets, i.e total assets

minus total liabilities

Share in profit or loss

Parent


Subsidiary


101%

-1%

2,38,24,58,746

-1,77,64,560

39,82,72,030

-67,16,911

102%

-2%

Name of the Entity

38. Change in Accounting Policy

The Company had not adopted the Guidance Note on accounting for Derivative contracts in the earlier year and

hence there has been a change in accounting policy to give effect to the ICAI's Guidance Note. Also refer

39(xxxii)(3)(c).

a) Debentures - Secured

b) Debentures - Unsecured

c) Deferred Credits

d) Term Loans

e) Inter-corporate Loan and borrowing

f) Commercial Paper

g) Public deposits

h) Other Loans - Overdraft

Amount

Outstanding

Amount

Overdue

Amount

Outstanding

Particulars

39. Details required under Reserve Bank of India, NBFC Directions

Sl.

No

Amount

Overdue

I) Loans and Advances availed by NBFCs inclusive of interest accrued thereon but not paid

15,436.74

5,000.00

Nil

72,618.45

Nil

Nil

Nil

188.98

a) In the form of unsecured debentures

b) In the form of partly secured debentures,

i.e. debentures where there is a shortfall in

the value of security

c) Other public deposits

ii) Break up of 1(g) above (Outstanding public deposits inclusive of interest accrued thereon but not paid)

Nil

Nil

Nil

31-3-2018 31-3-2017

LIABILITIES SIDE

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

7,938.95

5,003.90

Nil

61,870.10

Nil

Nil

Nil

115.03

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

(i) Leased assets including lease rentals

under sundry debtors

a) Financial Lease

b) Operating Lease

Nil

Nil

Nil

Nil

Nil

Nil

a) Secured

b) Unsecured

39.72

1,10,387.88

Nil

Nil

Nil

81,892.77

iii) Break up of Loans and Advances including bills receivable (other than those included in 4 below)

(Net of NPA Provision)

ASSETS SIDE

iv) Break up of Leased Assets and stock on hire and hypothecation loans counting towards EL/HP

activities

Nil

Nil

Nil

Nil

37. Additional Information as required under Schedule III of Companies Act, 2013, of enterprises consolidated as

subsdiary / associates / joint ventures


Notes

Nil

Nil

(ii) Stock on hire including hire charges

under sundry debtors

a) Asset on hire

b) Repossessed assets

(iii) Hypothecation Loans counting towards

EL/HP activities

a) Loans where assets have been

repossessed

b) Loans other than (a) above

Nil

Nil

Nil

Nil

Nil

Nil

v) Break up of Investments Current Investments

1. QUOTED


(b) Preference




v) Others

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

2. UNQUOTED


(b) Preference




v) Others

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Long Term Investments

Nil

Nil

Nil

500.00

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

1. QUOTED


(b) Preference

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil




v) Others

2. UNQUOTED


(b) Preference




v) Others

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

20.00

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

20.00

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Vi) Borrower group-wise classification of all leased assets, stock-on-hire and loans and advances

CATEGORYAmount net of NPA provisions




1. Related Parties

a) Subsidiaries




TOTAL

Nil

Nil

Nil

39.72

39.72

Nil

Nil

Nil

1,10,387.88

1,10,387.88

Nil

Nil

Nil

1,10,427.60

1,10,427.60

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

81,892.77

81,892.77

Nil

Nil

Nil

81,892.77

81,892.77

31-3-2018 31-3-2017


Notes

vii) Investor group-wise classification of all investments (current and long term) in shares and

securities (both quoted and unquoted)

CATEGORY

31-3-2018

1. Related Parties

a) Subsidiaries




TOTAL

Nil

Nil

Nil

20.00

20.00

Nil

Nil

Nil

20.00

20.00

Market Value /

NAV or face Value

Book Value Net of

provisions

31-3-2017

Nil

Nil

Nil

520.00

520.00

Market Value /

NAV or face Value

Book Value Net

of provisions

viii) Other InformationAmount net of NPA provisions



Secured Unsecured Total(i) Gross Non-Performing Assets

(a) Related Parties


(ii) Net Non-Performing Assets

(a) Related Parties


(iii) Assets acquired in satisfaction

of debts

Nil

Nil

Nil

Nil

Nil

Nil

575.38

Nil

(540.06)

Nil

Nil

575.38

Nil

(540.06)

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

520.00

520.00

31-3-2018 31-3-2017

Nil

404.77

Nil

Nil

Nil

Nil

404.77

Nil

Nil

Nilix) Customer Complaints

a) Number of Complaints pending as the beginning of the year

b) Number of Complaints received during the year

c) Number of Complaints redressed during the year

d) Number of Complaints pending as at the end of the year

x) Details of Registration with Financial Regulators

a) Ministry of Corporate Affairs

b) Reserve Bank of India

c) Microfinance Institutional Network

CIN No.U65929TN2005PLC057390

N.07.00754

20

31.3.2017 31.3.2016

Nil

45

45

Nil

Nil

50

50

Nil

Not applicable

Not applicable

(CARE) BBB+ Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

(CARE) BBB+ Stable

(CARE) BBB+ Stable

M2+

Not applicable

xi) Ratings assigned by Credit Rating Agencies

Commercial Paper

Working Capital Facility (Cash credit/WCDL)



14.84% Non-Convertible Debentures (allotted in May 2015)

14.15% Non-Convertible Debentures (allotted in August 2015)

14.50% Non-Convertible Debentures (allotted in March 2017)

11.40% Non-Convertible Debentures (allotted in August 2017)

11.50% Non-Convertible Debentures (allotted in December 2017)

MFI Grading

Perpetual Debt

Not applicable

Not applicable

(CARE) BBB+ Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

(ICRA) BBB Stable

Nil

Nil

Nil

M2

Not applicable


Notes

Percentage of NPAs to total

advances in that sector

31-3-2018

52.08%

47.92%

-0.48%

404.77

574.84

404.23

575.38

-26.53

-109.30

404.23

-540.06

xii) Concentration of Advances, Exposures and NPAs

xiii) Sector wise NPAs as at the end of the year

a) Agriculture and Allied Activities

b) MSME

xiv) Movement of NPAs

a) Net NPAs to total advances (%)

b) Movement of NPAs (Gross)

i) Opening Balance



iv) Closing balance

c) Movement of Net NPAs

i) Opening Balance



iv) Closing balance

The Company operates primarily in the business of microfinance providing collateral free loans for fixed

amounts ranging from Rs. 20,000/- to Rs. 58,000/- predominantly to rural and semi urban women. As on 31st

March 2018, the Company provided loans to more than 4.19 lakhs women across seven states and hence the

disclosure relating to concentration of Advances, Exposures and NPAs are not applicable to the Company.

31-3-2017

45.77%

54.23%

0.00%

122.15

404.77

122.15

404.77

61.08

34.54

122.15

-26.53

431.30

684.14

-

1,115.44

d) Movement of provision for NPAs excluding standard assets

I) Opening Balance

ii) Provision made during the year

iii) Write off/write back of excess provisions

iv) Closing balance

61.07

370.23

-

431.30

xv) Disclosure relating to Securitisation

The information on securitisation activity of the Company as an originator is furnished below

a) Total number of loans securitised or assigned

b) Total book value of loans securitised or assigned

c) Total book value of loans securitised or assigned including loans

placed as collateral

d) Sale consideration received for loans securitised/assigned

e) Excess interest spread recognised in the Statement of Profit and Loss

f) Credit enhancements provided and outstanding (gross)

Transaction 1


- for PTC Series A1

- for PTC Series A2


- for PTC Series A1

- for PTC Series A2


3,923

7,556.31

8,611.18

7,556.31

36.19

Nil

Nil

Nil

Nil

Nil

5,902

260.57

260.57

-

175.77

9.52%

9.14%

9.00%

7.00%

6.00%


Notes

Transaction 2


- for PTC Series A1

- for PTC Series A2


- for PTC Series A1

- for PTC Series A2


Transaction 3


- for PTC Series A1

- for PTC Series A2


- for PTC Series A1

- for PTC Series A2


12.07%

12.07%

15.00%

12.25%

4.50%

12.76%

12.76%

14.50%

12.25%

4.90%

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Particulars*

Number of SPVs sponsored by the Company for securitisation during the year

Total amount of securitised assets as per the books of the SPVs sponsored by

the Company as on the date of balance sheet

Total amount of exposure retained by the Company to comply with minimum

retention requirement as at the date of the balance sheet

a) Off balance sheet exposures

i) First Loss

ii) Others


i) First Loss

ii) Others

Amount of Exposures to other than MRR

a) Off Balance sheet exposures

i) Exposure to own securitisations

ii) Exposure to third party securitisations


i) Exposure to own securitisation

ii) Exposure to third party securitisation

*As per information duly certified by auditor of SPV

2

8,611.18

Nil

Nil

399.11

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

197.14

Nil

Nil

Nil

Nil

Nil

Nil

xvi) Information on instances of fraud reported during the year

Embezzlement of Cash Nil 6.51

xvii) Information on net interest margin

Average interest

Average effective cost of borrowing

Net interest margin

22.49%

12.98%

9.51%

23.80%

13.85%

9.95%

xviii) Information required by Reserve Bank of India Prudential Norms

1) Capital Adequacy Ratio Items

i) CRAR (%)

ii) CRAR - Tier I Capital (%)

iii) CRAR - Tier II Capital (%)

25.70%

21.00%

4.70%

26.99%

20.46%

6.53%

31.03.2018 31.03.2017


Notes

iv) Amount of subordinated debt raised as Tier II Capital (Rs. In Lakhs)

v) Amount raised by issue of Perpetual Debit Instruments

2) Exposure to Real Estate Sector Category

A. DIRECT EXPOSURE

i) Residential Mortgages -

Lending fully secured by mortgages on residential property that is or will

be occupied by the borrower or that is rented; (Individual housing loans

up to Rs.15 lakh may be shown separately)

ii) Commercial Real Estate -

Lending secured by mortgages on commercial real estates (office

buildings, retail space, multipurpose commercial premises, multi-family

residential buildings, multi-tenanted commercial premises, industrial or

warehouse space, hotels land acquisition, development and construction,

etc.). Exposure would also include non-fund based (NFB) limits;

iii) Investments in Mortgage Backed Securities (MBS) and other securitised

exposures-

a. Residential

b. Commercial Real Estate.

B. INDIRECT EXPOSURE

Fund based and non-fund based exposures on National Housing Bank (NHB)

and Housing Finance Companies (HFCs)

5,000

Nil

39.72

Nil

Nil

Nil

Nil

5,000

Nil

Nil

Nil

Nil

Nil

Nil

xix) Details of Financial Assets sold to Securitisation / Reconstruction Company for Asset Reconstruction

The Company has not sold financial assets to securitisation / reconstruction companies for asset

reconstruction in the current and previous year.

xx) Details of Assignment transactions undertaken by NBFCs

The Company has not undertaken assignment transaction in the current and previous year.

xxi) Details of non-performing financial assets purchased / sold

The Company has not purchased/sold non performing financial assets during the current and previous year.

xxii) Details of penalties imposed by RBI and other Regulators

No penalties have been imposed by RBI and other Regulators during the current and previous year.

xxiii) Exposure to Capital Market

The company does not have any exposure to Capital Market.

xxiv) Details of financing of parent company products

Not Applicable

xxv) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by applicable NBFC

The Company has not given any loan exceeding Single Borrower Limit / Group Borrower Limit

xxvi) Provisions and Contingencies

Breakup of "Provisions and Contingencies" shown under the head

Expenditure in Profit and Loss Account

a) Provisions for depreciation on investment - 149.00

31.3.2018 31.3.2017

b) Provision towards NPA

c) Provision made towards Income Tax

d) Other Provision and Contingencies (with detail)

Provision for assets de-recognised

e) Provision for Standard Assets

684.13

2,334.43

24.91

-

370.23

1,985.00

- 26.97

64.73

31.03.2018 31.03.2017


Notes

xxvii) Draw Down from Reserves

The company has not done any Draw Down from Reserves

xxviii) Concentration of Deposits (for deposit taking NBFCs)


xxix) Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)


xxx) Off- Balance Sheet SPVs Sponsored

The company does not have any Off-Balance Sheet SPV

xxxi) Investments

Particulars

(1) Value of Investment (Permanent and Current Investments)

(I) Gross Value of Investment (see note below)

(a) In India

(b) Outside India

(ii) Provision for Depreciation (see note below)

(a) In India

(b) Outside India

(iii) Net Value of Investments

(a) In India

(b) Outside India

(2) Movement of Provisions held towards depreciation on investments (see note below)

(i) Opening Balance

(ii) Add : Provisions made during the year

(iii) Less: Write-Off / Write-back of excess provisions during the year

(iv) Closing balance

xxxii) Derivatives

At the time of consolidation, the investment in the subsidiary of the company is netted off against the capital of the

subsidiary in the financial statements. The provision made for impairment of investment in the subsidiary is not

considered in the table above.

(1) Forward Rate Agreement / Interest Rate Swap

Particulars

(i) The notional principal of swap agreements

(ii) Losses which would be incurred if counterparties failed

to fulfil their obligations under the agreements

(iii) Collateral required by the NBFC upon entering into

swaps (Book Debts)

(iv) Concentration of credit risk arising from the swapping

(v) The fair value of the swap book

Refer to Accounting Policy No. 1(i) & Note No. 3(C) below

2,493.27

193.35

660.00

-

193.35

2,656.00

208.55

660.00

-

208.55

20.00

Nil

520.00

Nil

Nil

Nil

Nil

Nil

20.00

Nil

520.00

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

31.3.2018 31.3.2017

(2) Exchange Traded Interest Rate (IR) Derivatives

The company does not have any Interest Rate (IR) Derivatives

(3) Disclosures on Risk Exposure in Derivatives

Qualitative Disclosures

A. Financial risk management objectives

The company's treasury function manages and monitors various risks relating to treasury operations of

the company, including currency risk, market risk, and liquidity risk. In course of managing these

31.3.2018 31.3.2017


Notes

risks the company may use various market instruments as permissible for the company based on RBI

guidelines and internal approvals. The company does not enter into any trade in financial instruments

including derivatives for speculative purposes.

B. Company has entered into a full currency swap agreement with RBL bank to hedge the interest and

currency risk relating to the ECB of USD 4 million from World Business Capital. The swap agreement covers

the total principal and interest payment due on the ECB at USD-INR spot reference rate of 66.40 and

interest rate of 12.8% p.a. For the year ended 31'st March 2018, the principal loan amount is restated at

closing exchange rate and the resultant gain of Rs. 51,97,436 is accounted in the Profit and Loss account.

The hedge instrument covering currency and interest rate swap is marked to market and the resultant loss

of Rs. 1,93,34,965 is taken to Profit and Loss account.

C. The Company had not adopted the Guidance Note on accounting for Derivative contracts in the earlier

year and hence there has been a change in accounting policy to give effect to the ICAI's Guidance Note.

2,493.27

2,762.27

(2,955.62)

193.35

-

2,656.00

3,000.69

(3,209.24)

208.55

-

Currency and Interest rate derivatives

31.3.2018 31.3.2017

Quantitative Disclosures

Derivatives (Notional Principal Amount) For hedging

Marked to Market Position

Asset (+)

Liabilities (-)

Credit Exposure

Unhedged Exposures


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Madura Micro Finance Ltd, # 36, 2nd Main Road, Kasturba Nagar Adyar,

Chennai 600 020.

www.maduramicrofinance.co.in

www.teach70.com

Ph: +91 44 4683 8989

Fax: +91 44 2441 3841

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