s.Q. atwRAst co. 31-F, Connaught Ploce

New Delhi- 110 0OlTel: 91-11-23313495-6-7

Fox: 9l-ll-23713516ICAI Regn. No.000346N

Website : www.spchopro.inE-moil: spc1949@spchopro.in

Chartered Accountonfs

INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF'INTEC CAPITAL LIMITED'

ON CONSOLIDATED FINANCIAL STATEMENTS

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of'Intec CapitalLimited' (hereinafter referred to as "Holding Company"), and its Subsidiary 'AmuletTechnologies Limited'(the Holding Company and its Subsidiary together referred as "theGroup") which comprise the Consolidated Balance Sheet as at March 31, 2018, theConsolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement forthe year then ended, and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the consolidated financialstatements".

l.lanagement's Responsibility for the Consolidated Financial Statements

The Holding Company's Board of Directors is responsible for the preparation of theseconsolidated financial statements in terms of the requirements of Companies Act, 2013(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 accordancewith the accounting principles generally accepted in India, including the AccountingStandards ("AS") specified under Section 133 of the Act, read with Rule 7 of theCompanies (Accounts) Rules,2014 and Companies (Accounting Standards) Amendment

,20t6.

The respective Board of Directors of the Companies included in the Group are responsiblefor maintenance of adequate accounting records in accordance with the provisions of theAct for safeguarding the assets of the Group and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design, implementationand maintenance of adequate internal financial controls, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the financial statements that give a true and fair view andare free from material misstatement, whether due to fraud or error, which have been usedfor the purpose of preparation of the consolidated financial statements by the Directors ofthe Holding Company, as aforesaid.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated financial statementsbased on our audit. While conducting the audit, we have taken into account the provisionsof the Act, the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

.l

Contd...p/2

S.P, Chopra & Co. Continuation Sheet

r.t.

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

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend onthe auditors' judgment, including the assessment of the risks of material misstatement ofthe consolidated financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal financial control relevant to the HoldingCompany's preparation of the consolidated financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Holding Company's Board ofDirectors, as well as evaluating the overall presentation of the consolidated financialstatements.

We believe that the audit evidence obtained by us and the audit evidence obtained byother auditor in terms of their report referred to in 'Other Matters' paragraph below issufficient and appropriate to provide a basis for our audit opinion on the consolidatedfinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanations givento us, the aforesaid consolidated financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India, of the consolidated state of affairs of theGroup as at March 31, 2018, their consolidated losses and their consolidated cash flowsfor the year ended on that date.

Other Matters

We did not audit the financial statements and other financial information, in respect ofSubsidiary Company, namely Amulet Technologies Limited, whose financial statementsreflect total assets of Rs. 1,262.33 lakhs as at March 31, 2018, and total revenues of Rs.

Nil, loss of Rs. 14.67 lakhs and cash outflow of Rs. 0.02 lakhs for the year ended on thatdate, as considered in the consolidated financial statements.

These financial statements and other information have been audited by other auditorwhose report has been furnished to us by the Holding Company's management and ouropinion on the consolidated financial statements, in so far it relates to the amounts anddisclosures included in respect of the said Subsidiary and our report in terms of Section143(3), in so far it relates to the said Subsidiary is based solely on the report of the saidauditor.

Contd.,.p/3

S.P. Chopra & Co. Continuation Sheet.tt

Our opinion on the consolidated financial statements, and our Report on Other Legal andRegulatory Requirements below, is not modified in respect of the above matter withrespect to our reliance on the work done and the report of the other auditor.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act, we report, to the extent applicable, that:

a. We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our auditof the aforesaid consolidated financial statements.

b. In our opinion, proper books of account as required by law relating topreparation of the aforesaid consolidated financial statements have been keptso far as appears from our examination of those books and report of the otherauditor.

f.

The Consolidated Balance Sheet, the Consolidated Statement of profit and Lossand the Consolidated Cash Flow Statement dealt with by this Report are inagreement with the relevant books of account maintained for the purpose ofpreparation of the consolidated financial statements.

In our opinion, the aforesaid consolidated financial statements comply with theAccounting Standards ("AS") specified under Section 133 of the Act, read withRule 7 of the Companies (Accounts) Rules, 2014 and Companies (AccountingStandards) Amendment Rules, 2016.

On the basis of the written representations received from the Directors of theHolding Company as on March 31, 2018, taken on record by their Board ofDirectors, and the report of the statutory auditor of the Subsidiary company notaudited by us, none of the directors of the Holding Company and its Subsidiarycompany, is disqualified as on March 31, 2018 from being appointed as adirector in terms of Section 164 (2) of the Act.

With respect to the adequacy of the internal financial controls with reference tofinancial statements and operating effectiveness of such controls of the HoldingCompany, and of the Subsidiary Company, not audited by us (as reported by it;auditor), refer to our separate report in Annexure-.A,; and

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

d.

e.

s.

Contd...p/ 4

S.P. Chopr. I Co.

Placc : Ilcw DdhlDrtcd: lfry 2,'rmlE

lii.

Cordnuatlon Shaat:4:

The Consolldated financial statements dlsclose the impact of pendlnglltlgatlons on the Consolldated flnancial positlon of the Group - Refer Note24 to the consolldated flnanclal statements;

The Group has not entered Into any long-term contracts Including derlvaHve@ntracts.

There has been no amount, requlred to b€ transferred, to the InvestorEducatlon and Prot€dlon Fund by the croup.

ForS.P. CHOPRA &OO.Charter€d Accountants

Rrm Regn, No. 0q)346N,pM. No. 092529

S,P. Chopra & Co. Continuataon Sheet

ANNEXUREJA' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in 'paragraph - f'of the independent auditors report of even date onthe consolidated financial statements of Intec Capital Limited

for the year ended March 31' 2018)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act' 2013 ("the Act")

we have audited the internal financial controls over financial reporting of Intec capitalLimited ("the Holding Company") and its Subsidiary (the Holding Company and itsSubsidiary together referred as "the Group") for the year ended 31"t March, 2018' inconjunction with our audit of the consolidated financial statements of the Group for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The respective Board of Directors of the Holding company and its subsidiary company areresponsible for establishing and maintaining internal financial controls based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the "Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting" (the "Guidance Note") issued by theInstitute of Chartered Accountants of India C'ICAI"). These responsibilities include thedesign, implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its business,including adherence to company's policies, the safeguarding of its assets, the preventionand detiction of frauds and errors, the accuracy and completeness of the accountingrecords, and the timely preparation of reliable financial information, as required under theAct.

Auditor's ResponsibilitY

Our responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reportinq (the.Guidance Note,) and the standards on Auditing, issued by the Institute of charteredAccountants of india and deemed to be prescribed under section 143(10) of the Act, tothe extent applicable to an audit of internal financial controls, both applicable to an auditof Internal Financial Controls and, both issued by the Institute of Chartered Accountants ofIndia. Those standards and the Guidance Note require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance aboutwhether 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 ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting included

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

the risk lhat a material welkness exists, and testing and evaluating the design and

Contd...p/ 2

S.P. Chopra & Co. Continuation Sheetr22

operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgement, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the company's internal financial controls systemover financial reporting.

Meaning of Internal Flnancial Controls Over Financial Reportlng

A Company's internal financial control over financial reporting is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that, in reasonable detail, accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles, and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and Directors of the company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition, use, or disposition ofthe company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Flnancial Contrcl3 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 tofuture periods are subject to the risk that the internal financial control over financialreportinq may become inadequate because of changes in conditions. or that the degree ofcompliance with the policies or procedures may deteriorate.

opinion

In our opinion, to the best of our information and according to the explanations given tous, the Holding Company and its Subsidiary company have, in all material respects, anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 31, 2018,based on the internal control over financial reporting criteria established by the HoldingCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial controls over Financial Reporting issued by theInstitute of Chartered Accountants of India'

Contd...p/3

S.P. Chopra & Go. Contlnu.tlon Shect.t.

Othcr ltlattc|!

Our aforesaid report under Section 143(3Xl) of the Act on the adequacy and operatingeffectiveness of the Internal financial controls over financial reporting insofar as it relatesto the Subsidiary namely Amulet Technologies Limited, is based on the correspondingreport of the auditor of the said Company.

Our opinion ls not modifled in respect of above matter,

For S.P. CHOPRA & GO.Chartered Accountants

Placc : Ncw DGlhlDatcd : l{ay 24' 2018

M, No, 092529tr$r\.f

v)

INTEC CAPITAL LIMITEI'CONSOLII'ATED BALANCE SHf,NT AS AT MARCII ]I, 2OIt

(All aoounts in India! Rupeos in ItLb)

Not No- A! raMrrh3l,20lt

I,E36.63I1,843.31

13,679.94

3A73.s',|

0.34603-00

A! .tMffrh 31,2017

1,836.63

14,573.39

16,410.02

7,939.98

336.10

9215.5t

r9,l16.539,202.30

Ecldtrslfuru[dltSba&holdarr' Fund3Share CapitrlRcserves aod Surplus

NoFcnrrert Llabllld.rIrng-lcrm Bonowings

Orhcr L,ong-tern LiabilitidLong-term Provirions

Cu'rr Llrbllld.tShon-l.frn BorrowiDgr

olhcr currcnt Liabiliti6Sbort-term kovirioDs

Toa.t

A!n!Non{I.rc A$attProFty, Plrd rnd EquipE rt- Tangiblc- Intaogiblc- Capilrl $|ort iD progrca!

Nor CrEr€ol ltrv6tm€nt3

Dcfdrcd Trx Asscb (nct)

l.oDS-tcrm t atl3 ald AdvaDcca

Otbcr Non{urttnt Ass.t!

Cfficrt At,aacrsh strd Baok Bolanc€s

Shod-tcint LosB and Advttrc..othcr Curratrl Asscts

TotiSlgrlflcua Accounthg Po[clctOther Notct

As Fr our.epori ofevcn &te attlched

s. P. Choptr & Co.Chancr€d Accountants

61

4,0'6.91

13,321.93

4,400.54t9t0

l213

L

lst7,304.21

1,303.t920,215.@

9Et.9665.70

76.63

9.14t,000.62

21,196.t0

30255.31

t,469.4123:7O5.t7

r6t7It

t&224to27

162.34 62651

21,941.t3 25,801.29

39J46.10 56'056.60

For .trd on bchalfofthe Board ofDircctors ofItrt c Crplid Llmlted

i.i p \x-

s.rc drfDirectorDIN No. 00963735

u-1,.PrloE SrlYrrtav

Chief Finonchl Ofrcer

Place Ncw Dclhi

Drrc: Msy 24, 20 | t

3.755.78 2,112.11

2r At9.2s 30,431.00

39145.t0 56.056.60

1,35?.85

44.46.81

9.14l,3,t0.t l

13,016.42

1,46t.t4 9lt.l6

INTEC CAPITAL LMITEDCONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDEI' MARCH 3I, 2OIE

(All ad|ounts in Indian Rup€es in lakhs)

Notc No. For pedod edd.dMerch 31,201t

19

20

s,318.13

685.96

For perlod cDdedM.rch 31, 2017

9,571.91

175.74

&cv$t&Revenue from Op€ntionsother lncome

Total rcvctr|re

Erlluc'Employee Bercfi ts ExpcDse

Financc Costs

D€pr€ciatioo aod Amortisationother ErFtrs€s

Totll ctpanaar

(Lo.ryProllt b.fo.. t.tTa! arDalra- Cuar€ tax- Dcfcrcd tax dEdit- Errlicr y.a./s Tar

(Lo$YProfit rfter t !E.rnlng p.r cquity tb.rc- Basic

- DilutcdSIgn lc.rr Accourdn! Poltcl..(Xh.r Not .

As pcrourr€po ofcvc! date att&hedS. P, Choprr & Co.Chaficrcd Accountads

6-025.09 9J17.6

2l22

|l23

921.0E

3,431.83

65.294,990.15

1,055.75

5A&.2470.26

3924.t4

9.,Ot35

(33t3.25)

3,|().19

3,o.19

9.611J9

r35.26

(194.4E)

10E.00(15.05)

(r0r5l)

-llgl!2

27.5

05.57)(16.s7)

t&2A aott

31,13

0.190-19

For aod o! bchalf of thc Board of DircctoF ofItrr.c C.plt l Llndted

DireclorDIN No. 00963?35

U.,'(

""k rni.i."ChieJ Findncial Offcer

Place: New DelhiDate: May 24,2018

*J" J;N-

INTEC CAPITAL LIMITEDCONSOLIDATED CASII FLOW SIATEMENT }ORTHE YEAR ENDED MARCH 3I,2OI8

(All amounts in Indian Rupees id lakhs)

Particulrr.

C|'h llord from opcnting rctlvltie!

(Loss) / Proflt before trrAdlultmetrts for:D€preciation and amonisarionProvision for sub-standard and doubtful asscts

Provision for standard ass€ts

Provision for doubtful advances

Liabiliti€s oo longe. required w'itten back

Loss on sale of fixed aisets (nct)

Bad LoaDs written olT

Other advances / recoverablcs wntlen oll

Oparating pmfit b.forc worllDg c.plt l cbrng.r

Movement h worklns crpltrl:Dccrease/(IDcrss€) in loatN and advatrccs

Decr€asrf(lncJcasc) in currdl and Doo cuatcDt assets

tncrcose/(D€crEasc) in curcnt and non curranl liabilitidDccrcasd(Increas€) in othc. bank balanccs

lncrc&seJ(D€crcas€) in sbort-tefm ald long-lcrm Eovisions

Crlh fmm oDatrdoiETax€s paid

Nea c.5h fron op.rrdtrg .cdvlde! (A)

C|rL lLor from bv6tb3 $dvlttc.Purcbasc of prop€rty, planl and cquiprncnl

hoca.ds from ssl. ofprop.rty, pla & cquipmeot

N.t c..h fron hv.rdrg rcdrtdcr(B)

C.rh llow fmnv (ured h) flrrlcbg rctlvld.tDividend p6id (including irx th6eon)Rcpalm€f,t of comrnefcial papcrs

Rcp6Fner/proc..ds of cash cr€dib fbcililidRapaym€ilts of s€curd loans

Repsymenl of unsccued loans

N.t crrh frod (or.d ir) 0nrn lng tdrtd.r (C)

Net lncre.sc ln crsh .rd crlh.quivalentt (A+B+C)cssh and cash cquivalents at tb€ beginning oflhe year

Crsh |rd c|rh aquiv.le[t! rt thc ctrd of tic ycar

The above Cash FIow Statem€nt has b€€n prepared undcr the "Indirect Melhod" a| set out in Accounling

Srandard (AS) - 3 'Cash Flow Statements' dotified under Scction 133 oflhe Compsnies Act 2013, r€ad togelhet

rfirh Rul€ 7 of the Companics (Accounts) Rulcs 2014, as arnended.

Cssh and cash cquivalents in th€ balance she€t compris€s ofcash in hsnd and cash at bank

- Crsh otr hand

- ClEquca. dnlb on hdd

Slgnlflcmt Accounthg Pollcle!OtbGr Note!

As p€r our report of even date altached

S. P. Cboprr & Co.Cllanered Accounlants

Yerr etrdedMrrrh 31,2018

(3J83.26)

65.29

1,463.12(135.6r)

1.95

168.01

1.88

2,568.26

15.21

Yc.r end€dMrrch 31,2017

136.26

70.26813.96

(141.28'

4.71

912.86

5.58

964.t5

14,964.05(23.53)

(r,602.21)(37.24)

(8.44)

1,79633

15,1,{0.39

473.85

(t,289.47'194.36(16.52)

t4,251-1a

(262.98)

t6J9E.96

(451.56)

l!.9!t4.50 r5J{?39

(421.56)389.53

o r .00)

5.77(3t.93)

(5,?94.60)(8,206..+0)

(163.35)

(ss.27t(l,000.00)(3,921.71)

(r0,259.96)(625.16'

041543$ (t5J62.10)

(20r.7t)297.60

95.82

(r9.94)317.54

291.6n

40.2 |

10.00

247.39

291.60

1&221 to 21

For alrd on behalf ofthe Boa.d of Directors oflrtec Crplt.l Ltunlt d

J\ t \A-S.lC C,oeJ-

\\

Srrj.cvManaaingDIN:00028702

DirectorDIN:00963735

trj.Puhup Srlv trv

Co'nparry Sede.ary Chief Financial qicerM.N.: ACS: I2557Placc: New D€lhi

Date May 24, 20 | 8

No.000346N

r.9j<6!i;\

Intec Capital LimitedNotes to Consolidated Financial Statements for the year ended March 3l' 2018

(All amounts in lndian Rupees (Rs.) in lakhs, unless otherwise stated)

I GENERAL INFORMATION

Intec Capital Limited ('the Holding Company') incorporated in India on February 15,1994, was registered

with the Reserve Bank of India ('RBI') as a Non-Banking Financial Company ('NBFC') vide Certiftcate

No. 8-14.00731 dated May 4, 1998 in the name of Intec Securities Limited. Subsequently, due to change inname of the Holding Company, the Holding Company received a revised Certificate of Registration('CoR') in the name of Intec Capital Limited on November 4, 2009 under Section 45-lA of the Reserve

Bank of India Act, 1934. It is a systemically important non-deposit taking Non-Banking Financial

Company OrBFC-ND-SD. The Holding Company is primarily engaged in the business of providing

machinery loans to Small and Medium Enterprises ('SME') customers.

The Holding Company, has one Subsidiary company namely Amulet Technologies Limited ('the

Subsidiary'), incorporated in India, which has the objectives of providing consultancy, advisory and the

related services in the area of Information technology, however, it is yet to commence business.

The accompanying Consolidated Financial Statements relate to Intec Capital Limited ('the HoldingCompany') and its Subsidiary company (the Holding Company and its Subsidiary together referred as "theGroup")

2 Basis of preparation of Consolidated Financial Ststements:

The Consolidated financial statements have been prepared and presented to comply in accordance with the

Accounting Standards ('AS') notified under section 133 of the Companies Act, 2013 (the 'Act) read

together with paragraph 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting

Standards) Amendment Rules,2016 and other accounting principles generally accepted in India (GAAP)

and as per the directions and guidelines issued by Reserve Bank of India to the extent applicable toSystemically knportant Non-Deposit taking NBFC ('NBFC Regulation'). The notified AccountingStandards (AS) are followed by the Group insofar as they are not inconsistent with the NBFC Regulation.

The Consolidated Financial Statements have been prepared on the following basis:-

Basis of Accounting:

(i) The Iinancial statements ofthe Subsidiary Company are drawn up to the same reporting date as of the

Holding Company.

(iD The Consolidated Financial Statements of the Group have been prepared in accordance withAccounting Standard 21 "Consolidated Financial Statements" (the 'AS 2l') notified under section 133

of the Companies Act, 20 I 3 , read together with Rule 7 of the Companies (Accounts) Rules, 20 I 4 and

the Companies (Accounting Standards) Amendment Rules, 2016.

Principles of Consolidation:

(D The financial statements of the Holding Company and its Subsidiary have been combined on line byline basis by adding together the book value of like items of Assets, Liabilities, Income and Expenses

after eliminating intra-group balances and intra-group transactions resulting in unrealized profits orlosses in accordance with Accounting Standard - 2l on "Consolidated Financial Statements".

(ii) The consolidated financial statements have been prepared using uniform accounting policies for liketransactions and other events in similar circumstances and are presented to the extent possible, in thesame manner as the Holding Company's separate frnancial statements except as otherwise stated inthe Significant Accounting Policres.

Intec Capital LimitedNotes to Consolidated Financial Statements for the year ended March 31, 20f8

(All amounts in lndian Rupees (Rs.) in lakhs, unless otherwise stated)

(iii) The difference between the costs of investments in the Subsidiary over the net assets at the time ofacquisition of shares in the subsidiaries is recognized in Consolidated Financial Statements as Goodwillor Capital Reserve as the case may be.

The Consolidated Financial Statements of the Holding Company includes the results of following entity:

Name of Company Proportion(7o) ofShareholding as on

31.03.2018

Proportion(7o) ofShareholding as on

31,03.2017Amulet Technoloeies Limited. India 100% 100o/o

3. SIGNIFICA}ITACCOI]NTING POLICIES

3.1 Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP in India requires the

management to rtake estimates and assumptions that affect the reported amount of assets and liabilities and

disclosure of contingent liabilities at the date of consolidated financial statements, and the reponed amount

of revenues and expenses during the reporting period. Actual results could differ from these estimates. fu an

ongoing basis, estfunates are evaluated based on historical experience and on various other assumptions that

are believed to be reasonable, the results of which forms the basis for making judgnr.ents about the carryingvalue of assets and liabilities. Actual results could differ from those estimates. Any revision to estimates ordifference between the actual result and estirnates are recogrrised in the period in which the results are

known/ materialised.

3.2 Revenue RecogDition

(i) Interest income on loans is accounted for by applying the Intemal Rate of Retum (IRR), implicit inthe agreement, on the diminishing balance of the financed amount, over the period of the

agreement so as to provide a constant periodic rate of retum on the net amount outstanding on the

contracts.

(iD Future accrual of interest is suspended for accounts that are contractually delinquent for more than

90 days, after setting-off of collateral amounts. Suspended income on such accounts is recogrrized

as and when collected.

(iii) Processing fees and other servicing fees is recognized as income on accrual basis.

(iv) Dividend income on investments is accounted for as and when the right to receive the same is

established.

(v) Profit / loss on sale of loan assets through direct assignment / securitization are recognized over

the residual life of loan / pass through certificates in terms of RBI guidelines. Loss arising on

account of direct assignment / securitization is recognized upfront.

(vi) lnterest income on fixed deposits is recognized on a time proportion basis taking into account the

amount outstanding and the rate applicable.

(vii) Income on account of overdue interest and bouncing, foreclosure and penal

fees on assignment ofloans is recognized on receipt basis, as a consistent

lthe same are not material transactions.

Intec Capital LimitedNotes to Consolidated Financial Strtements for the year ended March 31, 2018

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

3.3. Property Plant and Equipment

(i) Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulatedimpairment losses, if any. The cost comprises purchase price, borrowing costs if capitalizationcriteria are met and directly attributable cost of bringing the asset to its working condition for theintended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

(ii) Subsequent expenditure related to an item of property, plant and equipment is added to its bookvalue only if it increases the future benefits from the existing asset beyond its previously assessed

standard of performance. All other expenses on existing property, plant and equipment, includingday{o{ay repair and maintenance expenditure and cost of replacing parts, are charged to theConsolidated Statement ofProfrt and Loss for the period during which such expenses are incurred.

(iii) Gains or losses arising from de-recogrition of property, plant and equipment are measured as thedifference between the net disposal proceeds and the carrying amount of the asset and arerecognized in the consolidated statement ofprofit and loss when the asset is derecognized.

(iv) Property, plant and equipment which are not ready for intended use as on the date of ConsolidatedBalance Sheet are disclosed as "Capital work-in-progress".

3.4 Depreciation

(i) Depreciation on property, plant and equipment is provided on straightJine method over the usefirllife of the assets estimated by the management, in the manner prescribed in Schedule tr of theCompanies Act, 2013. Immovable assets at the leased premises including civil works, fixtures andelectrical items etc. are capitalized as leasehold improvements and are amortized over the primaryperiod of lease subject to maximum of two years.

(ii) The useful lives in the following case is different from those prescribed in Schedule tr of theCompanies Act,2013.

Asset Useful life as perSchedule II of the

Companies Act, 2013(No. of Years)

Useful life as

assessed / estimatedby the Company

(No. of Years)Electrical installations l0 8

Based on usage pattem, intemal assessment and technical evaluation carried out by thetechnicians, the management believes that the usefirl lives as given above best represent theperiod over which the management expects to use these assets. Hence the useful lives of theseassets is different from the lives as prescribed in Schedule II ofthe Companies Act, 2013.

(iii) Depreciation on addition or on sale / discard of an asset is calculated pro-rata from / up to the dateof such addition or salddiscard.

3.5 Intangible Assets

Intangible assets are recopized only if it is probable that the future economic benefits that arereliably.attributable to assets will flow to the Group and the costs of the assets can be measured

Intangible assets comprising computer software are carried at cost less amortization. Computerincluding improvements are amortised over the management's estfunate of the useful lifeintangibles. Management estimates for usefi.rl life of intangibles is 6 years:

Intec Capital LimitedNotes to Consolidated Financial Statements for the year ended March 31' 2018

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

3.6 Investment

Investments that are readily realizable and intended to be held for not more than a year from the date ofacquisition are classified as clurent investments. All other investments are classified as long-term

investments. However, that part of long-term investments which is expected to be realized within 12

months after the reporting date is also presented under'current assets' as "current portion of long-term

investments".

Long-term investments are stated at cost. Provision of diminution in the value of long-term investments

is made, only if, such a decline is other than temporary in the opinion of the management. Current

investments are carried at the lower ofcost and quoted price / fair value. Any reductions in the carrying

amount and any reversals of such reductions are charged or credited to the consolidated statement ofprofit and loss.

3.7 Loan

Loans are stated at the amount advanced, as reduced by the amount received / repaid, the loans assigned

and collateral money received from borrowers, up to the balance sheet date. Loan origination costs such

as credit verification, agreement stamping, processing fee, ROC charges and valuation charges are

charged to Consolidated Statement ofProfit and Loss.

3.E Sale of asset portfolios by way of assignment / securitizrtion

The Holding Company undertakes sale of its loan portfolios by way of securitization / assignment out

of its loan portfolio. The assigned / securitized portfolio is de-recognized from the books of the Holding

Company in situations where the Holding Company relinquishes its contractual rights over the

underlying loan receivables and all risks and rewards are transferred to assigned buyer.

3.9 Employee Benefits:

The Holding Company has various schemes of retirement benefits, namely provident fund, gratuity and

leave encashment.

(i) Short term employee benefits:

All employee benefits payable / available within twelve months of rendering the service are

classifiid as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are

recognized in the Consolidited Statement of Profit and loss in the period in which the employee

renders the related service.

(ii) Other long term employee benefits:

Entitlements to amual leave are recogrrized when they accrue to employees. Leave entitlements

can be availed while in service of employment subject to restriction on the maximum number ofaccumulation. The Holding Company determines the liability for such accumulated leave

entitlements on the basis of actuarial valuation carried out by an independent actuary at the year

end.

(iii) Defined contribution plan:

contributions towards Provident Fund are considered as defined contribution

contributions are charged to the consolidated statement of Profit and loss for the

expense is actually incurred.

Intec Capital LimitedNotes to Consolidtted Financial Statements for the year ended March 31, 20lE

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

(iv) Defined benefit plans:

The Holding Company's gratuity scheme is a defined benefit plan. The plan provides for a lump

sum payment to vested employees on retirement, death while in employment or on termination ofemployment. Vesting occurs upon completion of five years of service. The Company's

contribution to gatuity fund in respect of its employees is managed by a trust, which invests the

funds with Life Insurance Corporation of India ('LIC'). The present value of obligations under

such defined benefit plans are based on actuarial valuation carried out by an independent actuary

using the Projected Unit Credit Method, which recognizes each period of service as giving rise to

additional unit of employee benefit entitlement and measures each unit separately to build up the

final obligation.

The obligation is measwed at the present value of estimated future cash flows. The discount rate

used for determining the present value of obligation under defined benefit plans, is based on the

market yields on Government securities as at the consolidated Balance Sheet date, having maturityperiod approximating to the terms of related obligations. Actuarial gains and losses are recognized

immediately in the Consolidated Statement of Profit and Loss. Gains or losses on the curtailmentor settlement of any defined benefrt plan are recognized when the curtailment or settlement occurs.

3.10 Provision for standard, sub.standard and doubtful assets

The Holding Company makes provision for standard and non-performing assets (sub-standard and

doubtful assets) in accordance with the Non-Banking Financial Company - Systernically ImportantNon-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. Funher,specific provisions are also created based on the management's best estimate of the recoverability ofnon-performing assets i.e. sub-standard and doubtfrrl assets. In accordance with these Directions, theHolding Company has separately shown the said provision under short term / long term provisions (as

applicable) without netting off from loans.

3.11 Current and deferred trx

(i) Cunent tax is determined based on the amount of tax payable, calculated as per provisions ofIncome Tax Act, I 961, in respect of taxable income for the year.

(ii) Defened tax is recognized, subject to the consideration of prudence in resp€ct of deferred taxasset, on timing differences, being the differences between taxable incomes and accountingincome that originate in one period and are capable of reversal in one or more subsequent years.

(iii) Provision for taxation for the period(s) is ascertained on the basis ofassessable profits computedin accordance with the provisions of the Income Tax Act, 1 96 1 .

(iv) Deferred Tax assets and liabilities are measured using the tax rates and tax laws that have been

enacted or substantively enacted by the consolidated balance sheet date and at each such date,

he Company re-assesses unrecognized deferred tax assets, if any.

(v) Current tax assets and liabilities are offset when there is a legally enforceable right to set off therecognized amount and there is intention to settle the assets and the liabilities on a net basis.

(vi) Defened tax assets and liabilities are offset when there is a legally anforceable rights to set offassets against liabilities representing the cunent tax and where the deferred tax and liabilitiesrelate to taxes on income levied by the same goveming taxation laws.

Intec Capital LimitedNotes to Consolidated Financial Statements for th€ year ended March 31,2018

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

3.12 Provision, contingent liabilities and contingent asset$

The Group recognizes a provision when there is present obligation as a result of a past event thatprobably requires an outflow of resources and a reliable estimate can be made of the amount of theobligation. A disclosure for a contingent liability is made when there is a possible obligation or apresent obligation that may, but probably will not, require an outflow of resources. When there is apossible obligation or a present obligation in respect of which the likelihood ofoutflow of resources isremote, no provision or disclosure is made.

Provisions are reviewed at each consolidated balance sheet date and adjusted to rellect the cunent bestestimate. If it is no longer probable that an outflow of resources would be required to settle theobligation, the provision is reversed.

Contingent assets are not recognized in the consolidated financial statements. However, contingentassets are assessed continually and if it is virtually certain that an inflow of economic benefits willarise, the asset and related income are recogrized in the period in which the change occurs.

3.f3 Earnings per share

Basic eamings per equity_ share is computed by dividing net profit / loss attributable to the equityshareholders for the year by the weighted average numbir of equity shares outstanding for the year.Diluted eamings per share

_is computed using the weighted average number of equity shares and also

the weighted average number of equity shares that could have bien issued on tle conversion of alldilutive potential equity shares excqrt where results are antidilutive. The dilutive potential equityshares are adjusted for the proceeds receivable, had the shares been actually issued at the fair value.

3,14 Operrting Lelse

Leases where the lessor effectively. retains substantially all the risks and benefits of ownership of theleased asset are classified as gler{ing leases. operating lease charges *" roognir"a u. an expense inthe Consolidated Statement of Profit and Loss on a straight line basii ove. tle leise term.

3.15 Cash and cash equivalents

cash and cash equivalents comprise cash at bank and in hand and short-term fixed deposits /investments with an original maturity ofthree month or less.

3.f6 Impairment of Assets

The management periodically assesses using, extemal and intemal sources, whether there is anindication that an asset may be impaired. An impaired loss is recognized wherever the carrying value ofan asset exceeds its recoverable amount. The recoverable amount ls the higher of the u.."t', n"t ."llirrgprice and value in use, which means the present value of future cash floris "*;;t; ; u.rr" from thecontinuing use of the asset and its eventual disposal An impairment loss for an'asset is reversed, if andonly if, the reversal can be related objectiveiy to an e,rent occurring after the impairment loss wasrecogdzed, the carrying amount ofan asset is increased to its revised rJcoverable arniunt, provlaed thatthis amount does not exceed_ the carrying amount that would have been determinj'(net of anyaccumulated amortization or depreciation) had no impairment loss being roogtrirJ ior the asset inprior year/s.

htcc C4ltd LlmttcdNotc, to Conto[&tcd Flnrrcid Strtcmcffi for &c yctr crdcd Mrrch 31, 201t

(All amoums in Indian Rqces (Rr.) in h$& uoless olhavise stalcd)

3.17 Currcnt vcrtur noFc[rrent chgificedon

Thc Group has classifod all its ass.fi / liahiliticE ido cuncnt / nm ornat portion barcd on thc timcframe of 12 months ftom tbc date of consolid.trd fiDrDcial ststcmcols. Accordi4ly asscts / lirbiliticscxpccted to bc realird / scilld within 12 norilhr.from thc datc of consolidated finarcial *atemcotg areclassificd 8s crrrrcd ad oth€r assds / liabiliticc arp classifod a8 rxxrculrtot

lrtec Crpirrl LimitedNotes to consolidrted financi.l rt.tements for the yerr ended 3l March 20lE

TNTf,C CAPITAL LIMITEDNoTEs I TO23 IORMING PARTOFTHE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED3I'I MARCH,2()1E

3.I R.co!. hrb! of llnlxr of F4ltty Slrr.t ootsarrdllg .t tlc bcttrtht !d |l ti. ed of lhc y.tr

3.2 Rlthtr, pr.f.r.ncc, |!d r.rtdcdo .atrlld to...t ch't oftbff.rThc HoHitrs co'p.ny h&r ooly otrc clrtt ofEquity Stue hlvitrs F! v.luc ofR!. l0 Fr 3h&. Esh shrfttold.r it cusbh for oE vor. p.i shr. h.ldAtl Equiry Shlrts .r! cntidcd io ft.rivc divilcnd r' d.cbftd film tirr io tirE. T}. votiog rigb8 c mt bc cxcrclr.d iD rlspcci ofst€tt3 od rllkb rny

crll o. orhcr suD! Dr€!.ntly psylblo hlvc not becn p.ful I! tl|. cvcrt ofliquidatioq dtc cquity shnthoftt n tt! cligiblc to rcccivc d|c tlm.inirg lstcls

oflh. Gronp in Foponion of thcn shttlholdiry

D.adl of rhs.lold.rr loldht Dor th 5% of tb. ,aar.8L tr.r.t tr tL Holdlng ConPrly:

Mrr.nll.20ltArrlori!.d 3h.rc oplt.l

15,000,000 (p.*ioB y.E : 35,000.000) cquity 3hG of R!. l0 *t

| .500,000 {lFios rqr : I J00,000) pGf.6.c 3bG of &. 100

ls!.4 ,ulrcrtb.d .!d rrly p.ld-.p $r.r

I 8.166,250 (pcaou! yls : 18J66,250) .quily thG of L. l0 db tu[y plid uP

1.500.00

3J00.00 t,500.00

r,t00.00

5,000.00

| 316 6!

5,tIXl.00

r_836.63

1136,63 1.t36.63

1ln. bcginni!8 ofth. tq

Psrd Ddicd Privar. LiDircd

lndia BBin63 Ercclld@ Fud-llAlndia BEiD6 Errclldc. Fud-llPdt4 Cotuulrar Privat Linil.dSdje Co.l (Inctudins shaB h.ld in E$ow lccoud

4,491,264

1.646,142

2.244)56

1.451.7?l

1,2.t4.464

24.49

l9.Ett2.44

7.92

4,491,264

1,646.142

2.2E4,356

t.4t3.771

|244,4@

24.49

19.85

t2 44

1,92

Irtcc C.pltrl LlmltedNot.t to coNolidltcd fiDmcirl ltiteEent! for the yerr etrded 31 M.rch 2018

4.1 At F S..tior 4!IC ofd. R6.lvo B|oL of lrdh A.f l93a CRBI A.f), cvr{y NBFC i! 'lSrild

io aef.r r $n rot h*r rh.|r rcllds, Frccd ofis

'Et Foft frr th. y€.r b 6. Satn ory R.!dv..r F S.ctbn 4''IC of RBI Ad. A! tfurirg 6. ylr 6..! n m Foff 6d! b ro fr[rfcr !o tic r|it

r€rcrvc, (!r!viou!

't.r R . 7.26 blb bcing 20./6 of0. Er Fofit {,rt tu.fci€d !o ttc !!ll r!s.w.).

|gd. ., F S.crlo. as-IC oa nEr A.r (Efa fit 4.1)

!l thc b.gituins of lh. F

|' .a rL .rd oa ri. y..t

L Sr.trnr ol PElh .rd Inllc D.tiding of tlc tE

Dilidad prid for F*iou. rd

/ (Add): t $ / (Pro6t) for |lc Fr

TturG. b ffi u& rarim 45JC 6fIBl Ad.. .a ttc ..d of rh yd

rrat ta

1,415.96

traltta

4Jt3.5t3t2.99

traLa4

t.aoE.?0

7.26

l/lsra

4)a1.15

45.97

9.36

AEout'ioM udc Olld ClltEt Li.biliria (drd.9)

5.1

Intec Crpitrl LimitedNotes to consolidlted llnstrcial strtements for the yerr ended 3l Mrrch 2018

Ary rcFyrblc,t th€tiffi of trl.trity dot8with i .rtstt..lu.d

52 Lor|t .b Srtrut .d by drr.cloft trd otl r PrdLt- lo|! of r!. 5,1 19.99 |rtLr r..!$d by Ft@.| su.@te of o&|tit€ dndo. Ed ll, on fr.d d.Fiilt of lt. E9-67 brlt- tN of Rr sl-31 trlb

'@.!d by F!.ul 8tl!m16 of Ed{bt dic1or ed cldiv. of nu.gioe dictor &d co.pont 8|dule of bbu. rift$lltios

Priv.tc Liiit d (c@pey i! whicn 6.!t8i!g di.Elot oftn. Co6P.!y b t dicto.)- los of R!. 663.?0 b$r 3c!r!d by F$d et)ldte of e.!rgi!t d!€lor dd corFrlt sl|tfut.of Blbblc llfotoutioo PtivaE Li6it d (cod9!y i! Phicb

ou|gini dir..to. ofth. C@p.ty b . diGrd) Ed ADda Tetlolosi6 Linitc<l (Su!.ididy oftb. ConpEv)

5.1 R|i. ofhi.rtn (rr3.):5.3.1 r.l6d r|16 ot.torsu.d los Esp t t*6ll:57' 13 55F @E5.3.2 rird€r 616 otr d.v. ucdld lo@ t ds. b.t96 7ta E.37% F du

t0la:

Itd&rlt(i) S.c!r.d by h)"otte.rtlo! oflo.r r.c.iyrblc! (abo

Efdnotc- J.2 Nnd 5.1.1)D.6.inino in.r.l|'Dnk Edttl.

2,547.13

?31.E4

81.t3

t4l3

2,029.26

5t.24

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t.099.65

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281.98 1r9l.6t

715.01

t3Jl

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t to 75)

lor loans bkcn from rtr'fiEial irutitutioru# (Renainins

i$lallmcnts pay6bl€- 5 to Il)(ll) S.crr.d br hypolbccrtlor oflo$ r...lv$l.t ..dAt.d d.potl6 (abo rcfa nol.- 5.2 lld 5.1.1)

lor loat|! l*€. noD badc# (Rcrddng insbrhcots F)iblot(lll) S.cuild by Lypo.h€.rdo! ofc|tfor loul! llk n fioD bao*r and firun itl institutiotrs#(Rc'Dining installnent! p!yrbL-2c54) (8lso r€f€r notat.l.l)Ioarl

I .' CorEont. D.p..l.r (Unt6urcd lo!E) l{ (.to 'tf.inotc 5.3.2)

3,att t)l

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a.3!

t,t ,al ,,0t6.a! I,lol.tI 2t5.4{ 6rta.t# rlD.y6blc on .quibblc morthly tnd quricrly illstiltncDa

ItrDJ4ur(D S..!r.d by ltpo.t cdh! ol lo|| t cctv.bl.t (.toEf.rmtc- J.5 ad 5.6.1)

for loans irk n fron bols# (R.n8inins installiEnts paytblc.

2to4l)for lo!ru tak€n florn finarEi.b irutitulions# (RmiringiBtallnents pay.bl€-17 lo 25)

(li) S..rr.d by hypollelalor of lol! ...eiv$let .rdtu.d d.porl.r (also Ef€r nola 5.5 tld 5.6. I )

for loali tttar frDm bank# (Rclldning isttllD.nts paylblc4 ro 17)(tii) Secrr.d by t'"otl.cdlo! of.lrfor loans llken from olhe. panics# (R.tnainirg tulallrnenttpayablc-26)

Tord

Nor Corv.rtlbl. D.b.!hr.t # (Rcmtining ittstdlmcnBpoyabl.-s) (R't of lrtdrtst - 12.5Cl. pet amm)

lot.r CorDordc ltepolltr (Unt.curcd lortrt #,1(aho rcfcr

notc 5.6.2)

5,285,43

860.00

540.9t

tt 71

t,177.04

1t2.46

8t.0?

t2.4t

1.9?5.00

53.24

202

I,l6t,5l tl,2tx,.9t

l,6tt70

523,9'

,5,61

6,6n,5

600.t I

26.47

4,615.00

t4l2l

1.030.26 t,t6tJl la,at6j3

600.71

/;&4To!.I 1)24 )uaa.2l 2,0!0.24 l,l53Jl

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I

Intec C.pitll LimitedNotes to corsolidlaed financial st temetrtr for thc ye.r eDded 3l Mrrch 2018

5.5 Lo&! d$ g!.rr!t .d by dlr.ctorr .rd olL. prrd.r- 106 of Rs. | 2.64 | .34 hb! sur.d by pde.al e!.fuie of De.sirs diretor od lid on 6rcd dcpGia of R!. a8.24 l.ll!..- lod of i5. 3l3.ll hll! G!..d by Flonal g]l.dt6 of rd.gilg dnFor ed ELtiv. of dd$ing diielor dd coryo c Sr.fule of tslbu. hfo$lotioaPrivl. Linncd (coDpuy b which bdaging diretor oftl. Co6p&y n . dicror)- lod of R!. I,49J.69 hlnr rclr.d by pdonal slrute of ddlgir8 dinto. &d coryontc eu'fulc of Bubbl. InfohlrdoN Privarc Linitcd (co6pey i! eni.nndasing diEror of dlc compdy k a dncctor) dd Aoul.t lchlolosi6 Linn.d (Sub.idilry of l[. Conpdy) .

5.6 Rrl. ofilteresa :

5.6.f tnr.rcr Erd otr .bov. surql lo@ tug. b.r*6 |I-45 12.3W,F @5,6,2 btcrGt nl- otr .bov. usuEd tos tugc tErwd ?%- 8.37% F mu

OtL.r Lllbllld.t

M.r.L3l.20ll M.nl5l.20ll

Coll.rsd uour for *6 sigr.{t suiri!.dL.& car.lietio.

'€d.

0.34 327.01

oJa 3!al0

for aDIotE bo.6b: (Ffq mtc 27.l)

8. I Wo*ing Capiill lor!! filn b.nk u€ s.curld by :

(r) PnDry S.cuity- ffnt F i parsu ch!4. on pllcnt rnd tutr! rceivablca ofdr Codpdly.O) Colhilnt S.curity-Fixcd @sits of Rl. logt..l,l blla (prlvixlr )€.r: R!. lJ37.5l lr}n.) lir Darlt.d !o b.nl6 !.d lEmvablc prDpcrtt6 bclotrsilg to pronot r &

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E.2 Int.Rst mtes on abov. lorns r|ng. b€t*€en 10.600l. - l3.55ol. p€r amM (p.cviou! )€ar : 10.60% - 13.45% F rnnun).

Irtec Crpltrl LlmltedNot6 to coDsolidrd lb.rcid st acDeltr for lic ycrr cDdcd 3l M|rch 2018

(XLr Crdri |l.D lis

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6.94

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31.12

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lntec Crpitrl LimitedNotes to cotrsolidrted finatrcial statemerts for the year erded 3l Mrrch 20lE

l4.l142

S.cuEd by hypolh.$tion of sFific asstrTI|c Holdils CoalFsy m*6 Fovnior fo' st"d!'d ltd mGF fomi.s [1r.tt (sub-ltrdrd ind doubdll rsr.t!) in lc.oldnrc with rh. NoFBlr*ingFirl.nci.r CoDFny - SFG'ni:lIy lqorrrnl Non-Dcpo3it bring Coryny nd Dposit trring Coq.[y (R6cw. B|[r) Dirlct''oE, 2016, lDd in@ordrm. wirh tlEe DnlctioN, dle HoHiDg Corp.ly h!3 3.t ntely shoer lh. slid Fovilion ud.r Shor! Tcm trd liry Ld Prcviior! (i3qplicablc) wilhoui n ning offfion lo!trs.

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)€f, Rs. 60.51 lal,l8) aJ! li.n d with Sfrn bdnti6 Dcv.lopdst Brnl of ltdi! undd Ct dil D.liv.ty AiuS.nctl

Fix€d deDosits of Rs. ?26.06 h}}ts (P@ious 't'!:

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15.79 40.21

t0.00

24119

95 E2

l,20l.ll6.94

I,163.E9

rJ03.89 l,,l6r.4l

IDtec Capital LimiaedNote! to consolidrtcd fitrlmial sartemetrar for the yerr etrded 31 March 2018

(r.fdrord l4.t dd 14 2)- sd!84 cocidd.d sood

- Senr.tt coBiddrd tuhdd&d ,ls do!h.6rr

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Intec C.pltsl LimitedNotet to cotrrolid.ted lhrlciil strt Bcrt! foi the ye|r crded 3l M.rch 2018

. T@ l.@ 6!d 6@cirt i8lituli@

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25.

26.

Intec Capital LimitedNotes to Consolidated Financial Statements for the year ended March 31, 2018

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

Contingent Liabilities

(a) Few customers / borrowers of the Company have filed legal cases for various claims against theCompany. The management has reviewed these pending litigations and proceedings and does notexpect any material outflow / reimbursement.

(b) Corporateguarantee:

a. Amulet Technologies Limited (Subsidiary Company) has given corporate guarantee of Rs.15,663.701- lakhs (Previous year: Rs. 4l,495.69 lakhs) to various banks for term loans andworking capital loars availed by Intec Capital Limited (Holding Company).

b. Issued to Small Industries Development Bank of India under Credit Delivery Arrangement: Rs.48.08 lakhs

Commitments

Loan approved but pending disbursement: Rs 38.54 Lakhs @revious Year: Rs. 54.44 Lakhs).

Corporate Social Responsibility (CSR):

The Holding Company has constituted a CSR committee as required under Section 135 ofthe Companies

Act, 2013, together with relevant rules as prescribed in Companies (Corporate Social Responsibility Policy)Rules, 2014 ('CSR nrles').The CSR Comrnittee had approved the CSR Policy and also identified the broad

areas of CSR activities which it propose to carry out viz. Child Education and Women Empowerment. Duringthe year, the Holding Company made serious deliberations and chose the CSR programs which would be

undertaken on a long term and continuous basis. Such programs will benefit communities where the HoldingCornpany operates or likely to operate and create goodwill for the Holding Company. The d*ail of theamount spent during the year is as under:

Amount spentduring the

current yearended

March 31, 2018

(Rs, lakhs)

Amountp€nding for

spending as at

Msrch 31, 201E

(Rs. lakls)

TotalAmount

(Rs.lakhs)

Gross Amount required to be spent during the year 14.8 8

Amount spent during the year:

a. Construction/acquisition of any asset

b. Contribution to Trusts / NGOS / Societies 2.50 2.50

l

Intec Capital LimitedNotes to Consolidated Financial Statem€nts for the year ended March 3f,20f8

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

2?. Accounting Standards Disclosures

27.1 Accounting Standard 15 (Revised) - Employee Benefits

(a) De{ined Benelit plsns:

Gratuity : Payable on separation as per the Payment of Gratuity AcI, 1972 as

amended @ 15 days pay, for each completed year of service toHolding Company's eligible employees who render continuousservice of 5 years or more. The Holding Company's liability towardsGratuity is firnded / managed by a trust, which invests the funds withLife Insurance Corporation of hdia (LIC).

(b) Other Long Tern Benefit:

Compensated Absences : Employees of the Holding Company are entitled to accumulate theireamed/privilege leave up to a maximum of 30 days which can beavailed / utilized in coming year/s, while in service. During the yearthe amount ofRs. 9.42 lakhs (previous year: Rs. 5.46 lakhs) has beencredited in the Consolidated Statement of Profrt and Loss towardsreversal of the excess provision based on actuarial valuation.

(c) Defined Contribution plan:

Holding Company's employees are covered by Provident Fund and Employees Slate l[suranceScheme,/Fund, to which the Holding Company makes a defined contribution measured as a fixedpercentage of salary. During the year, amount ofRs. 29.33 lakhs (Previous Year: Rs.47.14 lakhs)has been charged to the Consolidated Statement ofProfit and Loss towards employer's contributionto these schemes/firnds as under:

Year ended3l"t March, 201E

(Rs. In lakhs)

Year ended31"r March, 2017

{Rs. In lakhs)Employer's contribution towardsProvident Fund (PF)

25.78 45.60

Employer's contribution towardsEmoloyees State Insurance (ESI)

3.55 |.54

(d) Other disclosures of Defined Benefit plan (Gratuity) as required under AS l5 are as under:-

.y':tt?|,

Ool f I

A) Reconciliation of benefit obligations and phn $setsYear ended

March 31, 201E

Year endedMarch 31, 2017

Opening defined benefit obligationCurrent service cost

lnterest cost

Actuarial losseV (gains)

Benehts paid

48.60

s.29

3.59

(16.73)

(13.40)

21.35

\3, ---

Intec Capital LimitedNotes to Consolidated Financial Statements for the ye|r ended March 31, 2018

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

Experience adjustments:

Investment details of the plan assets

100% of the plan assets are with the LIC'S Managed frurds.

Actuarial Assumptions:The principal assumptions are the discount rate and salary increase. The discount rate is based upon themarket yields available on Government bonds at the accounting date with a term that matches that of theLiabilities and the salary increase takes account ofinflation, seniority, promotion and other relevant factorson long term basis. Principal assumptions used for actuarial valuation are:

B) Reconciliation ofpresent value ofthe obligrtions and the fair value ofthe plan assets

Change in the fair value of plan assets

Opening fair value ofplan assets

Expected retum on plan assets

Actuarial gainsi (losses)

Contributions paid by employer

Benefits paid

Closing fair value of plan assets

Present value of funded obligations

Fair value of plan assets

Net asset to be recognised in Balance Sheet

C) Gntuity cost for the year:Current service cost

Interest cost

Expected retum on plan assets

Net actuarial losses / (gain) recognised in year

Net gratuity cost / (income) to be recognised in Statementof Profit and Loss

55.69

4.73

(1.63)

1.29

(13.40)

46.6E

27.35

46.68

1933

65.r6

5.54

(1.e3)

0.47

( 13.s6)

55.69

48.

55

7

10.84

5.40

(s.s4)

(20.s7)

(e.E7)

5.29

3.59

(4.73)

(15.10)

(10.et

Amount in Rs.lakhsParticulars Mrrch

31.2018March

31.2017March

31.2016March

31.201sMarch

31.2014Experience gain/ (loss) adjustments onplan liabilities 4.24 24.83 16.28 15.37 16.39Experience gair/ (loss) adjustments onplan assets d.63) (l.93) (1.s 1) (0.47) 0.54

Intec Capital LimitedNotes to Consolidated Financial Statements for the year ended March 31, 2018

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

Particulars Year ended31st March. 201E

Year ended31'r March. 2017

Method used Proiected unit credit method

Discount rate 7 .60Yo 7 .400/,

Salary Escalation 6.00Yo 10.00%

Mortalitv Rate IALM (2006-08)

Withdrawal rate 7 .5o/o 7.5%

Rate of rerum on plan assets 7 .7lo/o 8.5|V"

27.2 Accounting Standard 17 - Segment Reporting:

The Holding Company is primarily engaged only in the business of providing loans to Small and MediumEnterprises ('SME') customers and has no overseas operations / units and as such and Subsidiary Company

is yet to start it operations, therefore no segrrent reporting is required under Accounting Standard 17 -

Segment Reporting.

27.3 Accounting Standard 18 - Relrted Parties

A. List of Related Parties and relationships, hrving transactions during the year

a) Kev lllanasement PersonnelSanjeev Goel, Managing Director

b) Relative of Kev Manaqement nersonalPranav Goel, Son of Sanjeev Goel, Managing DirectorRitika Goel, Wife of Sanjeev Goel, Managing Directoq and Independent Director of Holding Company

(upto November 08, 2017)

c) Enterpris€s over which key Manasement Personnel elercises sisnificant influenceBubble Info Solutions Private Limited

d) Enterprises over which relative of key manasement exercises sisnificant influenceIntec Infonet Private Limited

e) Investins partv in respect of which the reoortins enterprise is an associate

Pantec Devices Private Limited

Note: Related party relationship is as identified by the company and relied upon by the Auditort,

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Intec Capital LimitedNotes to consolidated financial statements for the yerr ended March 31, 20lE

(All amounts in Lrdian Rupees (Rs.) in lakhs, unless otherwise stated)

C. Year end bahnces with reloted parties-

27.4 Accounting Standard 19 - Operating Leases.

The Company's significant leasing arrangements are in respect of operating leases for prernises(commercial premises, offices etc.).The leasing arrangements include non-cancellable leases ranging from0-l year and are usually renewable by mutual consent on mutually terms. There are no sub leases.

The aggregate lease rentals payable are charged to Consolidated Statement ofProfit and Loss.

Particulars

For the year endedMarch 31, 2018

(Rs.)

For the year endedMarch 31, 2017

(Rs.)

Lease payments recognized in the ConsolidatedStatement of Profit and loss

74.71 159.84

Non-cancellable operating lease rentals payable (minimum lease payments) under these leases are asfollow:-

(Amount in Rs. lakhs)

Particulars March 31,2018 March 31, 2017Payable within one year 0.25 7.88Payable between one and five years

Payable after five years

Total 0.25 7.88

27.5 Earnings Per Share (EPS)

in Rs. LakhsAs at

March 31.201EAs at

March 31.2017Loans and Advances given

Pantec Devices Private Limited, (Investing party) 39.41 37.39

Other Advances

Sanjeev Goel, Managing Director 26.82 1t2.97

Particulars Year ended3lst March,

201E

Year ended31'r March,

2017

Net (Loss) / Profit as per Consolidated Statement ofProfit and Loss- @s. in laktrs) (3,043.07) 34.73

Basic/Diluted weighted average number of equity sharesoutstanding during the year 18,366,250 r8,366,250

Nominal value of Equity Share (Fs.)r0.00 10.00

nBasic/Diluted Eamings per Share (Rs.) (16.57) :21;'9H.lg,idl\Nif

Intec Capital LimitedNotes to consolidated financial statements for the year ended March 31, 2018

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

27.6 At the year end, the Group did not have any long-term contracts including derivative contracts for whichthere w€re any material foreseeable losses.

27.7 There is no unhedged foreign currency exposure dudng the year.

27,8 Salient Features offinancials of Subsidiary Company as per the Companies Act' 2013:

in Lakhsst.No.

Particulars Subsidiary(Amulet Technologies

Limited)(Refer Note Below)

Reporting period ofthe subsidiary concemed, ifdifferent fromthe Holdins Company's reDortins period

N.A.

2. Share Capital 25.00

3. Reserves & Surplus (126.65)

4. Total Assets t.262.335. Total Liabilities 1,364.04

6. Investments Nil7. Tumover /Total lncome8. (Loss) before tax (14.67\

9. Provision for tax10. (Loss) after tax (14.67\

It Proposed Dividend12. 7o of shareholdins 100v,

Note: The Subsidiary has yet to start its commercial operations.

27.9 Additional informltion pursuant to Schedule III of Companies Act, 2013

Name of Entity Net Assetsi.e. Total Assets minus Total

Liabilities

Share in (Loss)

As 7o ofconsolidated

net assets

Amount(Rs. in lakhs)

As 7o ofconsolidated

Drofit

Amount(Rs. in lakhs)

Parent / Holdins :

Intec CapitalLimited

100.93 13,806.59 99.52 (3,028.40)

Subsidiarv:AmuletTechnologiesLimited

(0.e3) (126.6s) 0.48 (r4.67)

gj'

Intec Capital LimitedNotes to consolidrted financial statements for the year ended Merch 3l' 2018

(All amounts in Indian Rupees (Rs.) in lakhs, unless otherwise stated)

27.10 There are no rnaterial differences in the accounting policies ofthe Holding Company and its Subsidiary.

27,ll Figures for previous year have been regrouped and/or reclassified wherever considered necessary, toconform to current yea/s classification

As per our report of even date attached

For S.P. CHOPRA & COChartered Accomtants

For and on behrlf of the Board of Directors ofIntec Capital Limited

:xs' \\-,s.KL61elDirectorDIN-0096373s

u4Puhup SrivastavChief Financial Officer

i.,\pPaftnerMernbershiollo:.097529

Place: New DelhiDate: May 24,2018

Sanjeev GoelManaging

No.: ACS-12557