chetana financial services private limited

CHETANA FINANCIAL

SERVICES PRIVATE

LIMITED

ANNUAL REPORT 2018-19

Regd. Office: Mali Compound, Shivabasava Nagar, Haveri-581110, Karnataka

Contact No: 08375 233428, 094806 96158, 094806 96169 Email Id: [email protected], [email protected]

Website: www.chetanafinancial.com

mailto:[email protected]

http://www.chetanafinancial.com/

MISSION

“To provide customized financial assistance to the

needy and unbanked segment

of the society"

VISION

“To be a leading financial services provider in semi-

urban and rural India"

CONTENTS

1. From the desk of Founder, Chairman

2. Board Of Directors Profile

3. Key Staff Profile

4. Our Lenders

5. CFSPL at a glance

6. Geographical Presence

7. Organogram

8. Progress Report

9. Financial Highlights

10. Success Stories

11. Board Of Director’s Report

12. Financial Statement And Auditor’s Report

13. Notice Of Annual General Meeting

14. Audited Balance Sheet & Auditor Report


1

FROM THE DESK OF FOUNDER, CHAIRMAN

Dear Shareholders,

My warm greetings to you

It is always a pleasure to share with you the performance of our Company. I am pleased to present you the Annual Report of the company for the Financial Year 2018-19.

Financial Year 2018-19 has been another year of stellar performance by our Company despite liquidity tightening in the NBFC sector. The revenue of the Company has been

increased by 43% with an increase in 32% of the net profit as compared to the previous

year.

We have also expanded our geographical presence to another four districts in

Karnataka covered with 18 new branches.

We are committed to our mission of excellence through endeavours and start this new Financial Year 2019-20 with the same spirit and enthusiasm to serve the financial needs of our customers that would help them to improve their standard of living.

I personally thank each one of you for your continued faith and trust in us and assure you we will leave no stone unturned to continue delivering outstanding results in the

years to come.

As we mark the end of another successful year, I would like to thank the Management Team for their unwavering commitment and guidance in leading the Company forward. I would also like to extend our deepest gratitude to all employees for their invaluable

contributions to the Company. Special Thanks to our Lenders, Business Partners and our Customers for their

continued support to our Company.

Regards,

Sd/-

Nagendra V Mali Chairman


2

BOARD OF DIRECTORS

Mr. Nagendra V. Mali, Chairman: holds a degree in Science and a

Diploma in Journalism from Karnataka University. His flair for serving the

poor and promoting rural development caused him to become involved in

these areas of work soon after his graduation, and he was ultimately

inspired to form his own organization, Navachetana Foundation (NCF), in

1999. In 2005 recognized the need to incorporate microfinance in his

organization's poverty alleviation work, a decision that led to the creation

of Navachetana Microfin Services Private Limited (NMSPL), a Non-

Banking Finance Company. Mr. Mali currently serves as a Chairman and

Managing Director of NMSPL and Chairman of Chetana Financial Services Private Limited.

Mr. Manjunath. K, Managing Director: possesses a strong agriculture

background as a result of his upbringing in a rural village. He received his

B.A. degree from Gulburga University and soon after began his career in the

advocacy department of Grama Ganarajya Vedike (located in Samaja

Parivarthana Samudaya, Dharwad). Then worked as Project Officer at SPS

from 1999-2004, focusing on areas including JFPM, natural regeneration,

empowerment of the rural poor and tribal land rights. From 2004-2006.He

served as a team leader, training officer and documentation officer for the

World Bank-aided SUJALA watershed project in Haveri (Kanavi siddager

watershed). Then became closely involved in the development of Karnataka Public School and the

cooperative society division (NVSSN) of Navachetana. He attended training held by IRMA related

to Management Development Program (MDP) at Anand, Gujarat. He is currently a member of

NVSSN, a Secretary of Navachetana Foundation, and Secretary of the KPS Management

Committee. Since 2006 he has worked as the MIS Chief Officer of Navachetana Microfin Services

Private Limited. Currently he holds position as Managing Director at Chetana Financial Services

Private Limited from Feb 2015.

Mr. Maruti F B, Director: was born and raised in a rural village, and thus

has a strong agricultural background. He holds a Master’s degree in history

and post graduate diploma in computer applications (PGDCA) from

Karnataka University. His career began in watershed development, in which

he worked to socially mobilize people and train group members in resource

management techniques. Mr. Maruti has also worked as a faculty member


3

and resource person for VWSC members of the Jala Nirmala Project in Haveri and the VFC

members working on the JBIC project under Haveri's Forestry department, Haveri. Mr. Maruti has

also organized and led several trainings in areas as varied as food processing training (for Ni-sme,

Hyderabad), agarbatti production and fashion designing (under CAPART), and watershed

development (under SUJALA World Bank project). Since 2003 Mr. Maruti has been associated

with Navachetana Foundation (NCF). He has worked as the manager of Karnataka Public School.

Presently, Mr. Maruti serves as the Director-operations of Navachetana Microfin Services Private

Limited.

Mrs. Chandrakala N Mali, Director: holds Degree in Arts from Karnataka

University, Dharwad. She has worked as a Teacher in Karnataka Public School

for nearly two years and further served as an Administrative Officer in School.

She has done a lot of voluntary work in the public schools. She has worked

with kids by helping them learn different skills. Her interests include reading

and working with kids. She has flare in working for children education. She

presently serves as the Director for Chetana Chits Haveri Pvt Ltd.

Mr. CHANDRAPPA S MANEGAR, Director: Holds Degree in Commerce

from Karnataka University, Dharwad. Since 2006 Mr. Chandrashekar has been

associated with Navachetana Foundation (NCF). He has worked as a ABM, BM

and SM In Navachetana Microfin Services Private Limited. From 2011 he is

worked as a CEO of Navachetana Vividoddesh Souharda Sahakari Niyamita,

Presently Mr. Chandrashekar serves as a Director of Chetana Financial

Services Private Limited.


4

KEY STAFF PROFILE

Mr. Mallikarjun N B, Chief Officer Accounts And Finance: He

holds MBA from Karnataka State open university, Mysore. Soon after

his education he served in Outlook India Magazine (Retail), Bangalore

then Venkateshwara Hatcheries Private Limited, Ranebennur. He has

been associated with Navachetana Microfin Services Private Limited

since 2016. Currently He is holding the responsibility of working as

Chief Accounts Officer in Chetana Financial Services Private Limited. He is an Accounts

professional with over 7 years of experience in Accounting.

Mr. Kirankumar C Patil, Manager Credit: holds a Degree in

Commerce from Alagappa University, TN. He has been associated with

CMC, Ranebennur since 2015, managing the Accounts and Credit

Section. He is well versed with accounting system like tally system, all

type of software used in lending activity along with Credit Bureau

Software with 9 years of experience. Presently he is holding the

responsibility of Company’s Credit Department, working as Manager

Credit in CFSPL, Haveri.

Ms. Chaitra C Patil, Accounts Manager: She holds Degree of Master

Business Administration (MBA) from VTU University, Davangere. She

has been associated with Navachetana VSSN since 2015, managing

the Accounts. She is well versed with accounting system, she is an

Accounts professional with over 3 years of experience in Accounts

system, presently she is holding the responsibility of Company’s

Accounts Department, working as Accounts Manager in CFSPL, Haveri.

Ms. Kavita C Mali, Finance Manager: She holds Master Degree in

Business Administration (Finance and HR) from Bangalore University,

Bangalore. Presently she is holding the responsibility of working as

Finance Manager in CFSPL, Haveri.


5

Mr Prajwal B, Human Resource Manager: He holds B.com Degree from

Kuvempu University, Shankargatta. He has been associated with

Chetana Financial Services Private Limited since 2015, as Human

Resource Manager. He is a HR professional with over 2 years of

experience. Presently he is holding the responsibility of Company’s

Human Resource Department CFSPL, Haveri.

Mr. Samarth Shetter, Chief Operational Officer: He holds a Bachelor

of business management from Kuvempu University, Shimoga. He recently

joined Chetana Financial Services Private Limited as Operation Head. He

has 10 years of experience in investment banking business and was

associated with Deutsche, UBS and Barclays Bank with different roles

and responsibilities. Presently he is holding the key responsibilities of

Initiate and mobilise our Front office and entire operational team for

existing and new business planning and change.

Mr. Sangamesh N, IT Head: He is specialist in getting the innovative

technology solutions for the organization. He is a strong follower of Open

source and Digital India Program. He has implemented both the systems

by providing digitization services for the organization like: Use the data

extract as automated data inputs in IT applications avoiding manual data

entry, Store the data extract for analysis and informed decision making,

Safeguard and Securing the data. He works in a consultative fashion with

other department heads such as operations, Human resources, Administration and

Accounting that may improve their efficiency and effectiveness through technology.

Mr.Shivakumar G Hurali, Internal Auditor: He has joined in the month of

January 2018 in Chetana Financial Services Private Limited as Internal

Auditor. Previously he was an Associate at Navachetana Microfinance,

Navachetana Souharda Sahakari, International Business Machine (IBM),

Hewlett Packard (HP) and Thomson Reuters (TR), received an M.B.A from

Visvesvaraya Technological University, Belgaum.


6

OUR LENDERS

PUBLIC SECTOR BANKS

1. Dena Bank

2. Bank of Maharashtra

3. Syndicate Bank

PRIVATE SECTOR BANKS

4. Dhanlaxmi Bank Ltd

5. IDFC First Bank Limited

NON BANKING FINANCIAL COMPANIES

6. Shriram Transport Finance Company Ltd

7. Electronica Finance Limited

8. Avanse Financial Services Ltd.

9. Visu Leasing & Finance Pvt. Ltd.

10. Volition Credit and holdings Pvt. Ltd.

11. Alwar General Finance Co. Pvt. Ltd.

12. Eclear Leasing and Finance Private Limited

13. Jain Sons Finlease Limited

14. A. K. Capital Finance Private Limited


7

CFSPL AT A GLANCE # GENERAL DETAILS

1 Organisation Name CHETANA FINANCIAL SERVICES PRIVATE LIMITED

2 Office Address Registered Office: Mali Compound, 3rd Cross, Shivabasava Nagar, Haveri – 581110

Head Office: “VASANTH SHINE BUILDING” Vidhyanagar, Opposite to PWD quarters Haveri – 581110

Corporate Office: #201,3rd Floor, 60 ft Main Road, Industrial Workers Layout, Shankarnagar, NandiniLayout,Bengaluru-560096

3 Phone No 08375-233427, 9480696158

4 E-mail & Website Email ID : [email protected] Website Address: www.chetanafinancial.com

5

6

Company

Registration Status

Statutory

Registration Details

Acts under

which

Registered

Date of

Registration

Place of

Registratio

n

Registration/

Membership

No.

Section 45

IA of the

RBI Act,

1934

20.11.2012 Bangalore B.02.00139

Companies

Act,2013

30.10.1996

(Incorporated Date) Bangalore

U85110KA1996P

TC021326

FIDC 04.08.2015 Mumbai FIDC|066|19-20

Name of Authority Registration Number

PAN AAFCC1523L

GST 29AAFCC1523L1ZM

7 Mission "To provide customized financial assistance to the needy and

unbanked segment of the society".

8 Vision “To be a leading financial services provider in semi-urban and rural India.”

9 Constitution Chetana Financial Services Pvt Ltd is a Private Limited Company registered under Indian Companies Act, 2013.

10 Organizational Structure

Please refer in Annexure II

10.1 Board of Directors NAME DESIGNATION DIN

Mr.Nagendra V Mali Chairman 02235648

Mr.Manjunath Kasavanahalli Managing Director 02278699

Mrs.Chandrakala N Mali Director 03317812

Mr.Maruti F Bhajantri Director 02235579

Mr.Chandrappa S Manager Director 07745638

mailto:[email protected]



8

11.2 Senior Management

Mr.Samarth Shetter Chief Officer Operation

Mr. Mallikarjun NB Chief Accounts Officer

Mr. Shivakumar G H Chief Risk and Relationship

Mr.Kirankumar Patil Manager Credit

Ms. Kavita Mali Manager Finance

Mr. Prajwal B Manager HR

Ms.Ankita Company Secretory

Mr.Sangamesh N IT Lead

12 Capital Structure

Name of The Investor

Individual/

Institutional Investor No. of

Shares

Amount

Infused

Percentage

stake as on

31.03.2019

Navajeevan Foundation Institutional Investor 2000000 2,00,00,000 31.60%

Navachetana Vividoddesh Souharda

Sahakari Niyamita, Haveri Institutional Investor 3684500 3,68,45,000 58.21%

Nagendra V Mali Individual Investor 42,500 42,5000 0.67%

Manjunath.K Individual Investor 17,000 1,70,000 0.27%

Maruti F B Individual Investor 16,500 1,65,000 0.26%

Kotragouda C Individual Investor 14,500 1,45,000 0.23%

Ganesh E K Individual Investor 14,500 1,45,000 0.23%

Virendra V Mali Individual Investor 17,500 1,75,000 0.28%

Parvathavva V Mali Individual Investor 3,12,500 31,25,000 4.94%

Nanda V Mali Individual Investor 10,000 1,00,000 0.16%

M R Patil Individual Investor 7,000 70,000 0.11%

Suresh Jalagar Individual Investor 10,000 1,00,000 0.16%

Chandrappa Manegar Individual Investor 10,000 1,00,000 0.16%

Basavraj Lakkoli Individual Investor 5,000 50,000 0.08%

Shobha H K Individual Investor 5,000 50,000 0.08%

Srinivasa Genegere Individual Investor 5,000 50,000 0.08%

Nissarahamad Individual Investor 3,000 30,000 0.05%

S H Patil Individual Investor 7,000 70,000 0.11%

Shivananda M K Individual Investor 5,000 50,000 0.08%

Yallappa Gundenahalli Individual Investor 5,000 50,000 0.08%

Total Equity Capital (Tier I Capital) 63,29,500 6,32,95,000 100.00%

Debentures (Tier II Capital) 2,48,000 2,48,00,000 100.00%

Subordinate Debt 5,00,00,000

Total Capital 13,80,95,000


9

Brief History: Chetana Financial Services Private Limited (CFSPL) formerly known as Nimba Finance and Leasing Private Limited (NFLPL) is a Non-Banking Finance Company (NBFC) registered with Reserve Bank of India. (Reg No-B.02.00139),

incorporated in the year 1996 under the provisions of Companies Act, 1956 (CIN-U85110KA1996PTC021326).

We are Non-Banking Finance-Non deposit accepting Company engaged in the business of originating SME, Mortgage, Vehicle and Personal loans. We truly believe that by

providing finance access to deserving people we can enhance and enrich their livelihoods. Company targets the missing middle segment in the rural/semi urban/urban areas which are not effectively served by the banking system.

Our Products: Currently Chetana Financial Services Private Limited (CFSPL) extends loans in rural/semi-urban/urban areas of Karnataka State. We extend loans for

Business Segment (Like Business expansion, New business, Start-ups, Working capital requirements etc), Personal loans (Like consumption purpose, Marriage,

Education etc), Mortgage loans (Like House extension or repair, renovation etc) and Vehicle loans (Like Two Wheeler, Three Wheeler & Four Wheeler) and Consumer Durables (All types of Household appliances)

1) Business Loan: The loan is offered for Business Segment (Like Business expansion, New business, Start-ups, Working capital requirements etc) and for Clients who are

self-employed in Trading (all kinds of shops), Manufacturing (Small manufacturing industries, Mills, Spare parts etc), Distributors, Retailers and Service Providers (Small

hotels, Garages, Caterings, etc) requiring larger amount for the betterment of their enterprise through capital expenditure and/or operational/working capital expenditure.

Business Loan

Sl. No

Repayment Frequency

Rate of

Interest and Type

Tenure (Months)

Ticket Size

Pro Fees and

Documentation Charges Required Documents

1 Monthly

Reducing,

23.00% to 26.00%

p.a

Min 12- Max 60

Rs.50 to Rs.

2 Lacs

3% on the Loan Amount

Self-Attested ID &

Address Proof, 2 applicant Photos, 1

Guarantor Photo, Latest Bank Statement, 2 PDC

Leaves, 2 Guarantors, Business Proof & Bills

2) Mortgage Business Loans: The loan is offered to Mortgage loans (Like Business expansions, House extension or repair, Renovations etc) and for Clients who are self-employed, Sole Proprietors, Partnership and Private Limited Companies with Min of one

year of experience in current business.


10

Mortgage Business Loan

Sl.

No

Repayment

Frequenc

y

Rate of Interest

and

Type

Tenure

(Months)

Ticket

Size

Pro Fees and Documentation

Charges Required Documents

1. Monthly

Reducin

g, 23% p.a

Min 12- Max 60

2.00 Lakhs

to 10.00 Lakhs


Self-Attested ID &

Address Proof, 2 applicant Photos, 1 Guarantor Photo,

Latest Bank Statement, 2 PDC Leaves, 2

Guarantors, Business & Income Proof, Property Mortgage &

Bills etc

3) Vehicle Loan: The Loan offered for Two Wheeler, Three Wheeler and Four

Wheeler New Vehicles as well as Used Vehicle with flexible tenure. Clients who are

salaried professional OR self-employed over the age of 18 years can avail this Loan with

minimum of one year of work experience in current business.

Vehicle Loan

Sl No

Purpose of Loan

Repayment

Frequency

Rate of Interest and Type

Tenure

(Months)

Ticket

Size

Pro Fees

& Documentation

Charges

Required Documents

1

Two

Wheeler

Monthly

26-30%

p.a, Reducing

12-24 Months

Upto

50-80% on

Road Price

Rs. 1,700/-

Self-Attested ID &

Address Proof, 2 applicant Photos,1

Guarantor Photo, Latest Bank Statement, 2 PDC Leaves, 2 Guarantors,

Income Proof, Utility Bills, RC Copy, B-Extract, Duplicate Key,

Original Invoice and Vehicle Hypothecation

2

Three &

Four Wheel

er

Monthly

26-30%

p.a, Reducing

12-48 Months

Upto 80%

on Road Price

3% 0n Loan

Amount

4) Consumer Durables: The Loan includes all types of Household Appliances to

Clients. The Loan is offered for Clients who are salaried professional OR self-employed over the age of 18 years can avail this Loan with minimum of one year of work experience in current business.


11

Consumer Durables Loan

Sl. No

Purpose of Loan

Rate of Interest and Type

Tenure (Months)

Ticket Size

Pro Fees and Documentation Charges Required Documents

1

Consumer

Durable

s

Reducing, 23% p.a

Min 3- Max 24

Rs. 5.00

Thousands to Rs.

50.00 Thousa

dns


Self-Attested ID & Address Proof, 2 applicant Photos, 1

Guarantor Photo, Bank Passbook, 2 PDC

Leaves, 2 Guarantors, Income Proof, Bills etc

GENERAL ELIGIBILITY CRITERIA FOR ALL LOANS:

Age: At the time of application, the applicant should be above 18 years old and 58 years of age at the time of maturity of the loan.

Income: Based on Type of Loan and Loan Amount, the Gross annual income of Applicant vary from Rs.5,000/- to Rs.30,000/- per month

Tenure of Loan: The tenure of the loan may vary from 12 to 60 months

Repayment Mode: Repayment can be made through post-dated cheques (PDCs) / ECS

or through NACH.

Credit History: A good CIBIL Score of ≥ 500

SANCTION AUTHORITY

Authorizer Name Loan Amount Branch Manager Upto Rs.60,000/- Senior Manager Upto Rs. 5,00,000/- Divisional Manager Upto Rs. 10,00,000/- Chief Operational Officer Upto Rs. 10,00,000/-


12

Personal Meeting

with the Client KYC Collection

and Verification

Credit History

Verification (CB)

House Visit (FI) KYC

Original Verification

Loan Documentation

Filling up of

Application along

with the documents

Loan Disbursement

Confirmation of noting

of HP with RTO

Obtaining copy

of RC

Obtaining original invoice, copy of insurance

policy\cover Note, duplicate key

Follow up & recovery

VEHICLE LOAN APPLICATION PROCESS WORK FLOW

Personal Meeting

with the Client

KYC Collection

and Verification

Credit History

Verification (CB)

Place of the Applicant (FI)

KYC Original

Verification

Filling up of Application

with copies of securities

offered documents

Recommendation of

Eligible Loan Amount

Valuation & legal opinion

of the properties offered

as securities

Loan Documentation and obtaining original title deeds, latest EC, latest TPR and photograph of the property

Loan Disbursement

Creation of Mortgage

& its registration

Verification &

Utilization check

BUSINESS MORTAGAGE LOAN APPLICATION PROCESS WORK FLOW

Recommendation of

Eligible Loan Amount


13

GEOGRAPHICAL PRESENCE-KARNATAKA

Operational Area as on 31.03.2019

State District

Karnataka

Haveri

Davangere

Gadag

Vijayapura

Shimogga

Bellary

Bagalkote

Chitradurga

Uttara Kannada

Hasana

Koppala

Chikkamagaluru

Raichur

Tumkuru

Belgaum

MAHARASHTRA TELANGANA

ANDRA PRADESH

TAMIL NADU KERALA

GOA

Vijayapura

Bagalkote

Uttara Kannada

Haveri

Koppala

Bellary

Davanagere

Gadag

Shimogga Chitradurga

Chikkamagalur

Hasana

Belagaum Raichur

Tumkuru


14

ORGONOGRAM

Manager

HR

Chief Officer Accounts

Vice President Finance

Manager

Credit

Manager

Accounts

Managing Director

Branch

Accountant

Internal

Auditor

Manager

MIS

Accounts

Assistant

Clearance &

Documentation

Officer

Credit

Assistant

Admin

Assistant

Office

Assistant

Chief Officer

Operation

Manager

Finance

Senior Manager

Branch Manager

IT Head

IT

Assistant

Chairman

Business

Development

Officer

Collection

Manager

Board of Directors

General Body Members

(Share Holders)

Divisional Manager


15

PROGRESS REPORT

Operational Highlights as on Mar-2019 (Rs in Lakhs)

Indicators Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

No States 1 1 1 1 1

No. Districts 3 3 4 11 15

No Branches 10 10 12 32 50

Active borrowers 913 2389 4062 7163 14604

No. of loans outstanding 913 2389 4062 7163 14604

Loan portfolio (Own+BC Portfolio) 265.67 863.02 2579.90 3501.93 6713.09

0

5000

10000

15000

2016-17 2017-18 2018-19

Active borrowers

Active borrowers

0

2000

4000

6000

8000

2016-17 2017-18 2018-19

Loan Portfolio

Loan Portfolio


16

Bank & Financial Institution Borrowings as on 31.03.2019

Sl.

No Bank Name

Loan Sanctioned

(Rs in Lakhs)

Loan Disbursed

(Rs in Lakhs)

Loan Outstanding (Rs in Lakhs)

1. Dena Bank 800.00 800.00 133.33

2. Syndicate Bank 300.00 300.00 65.50

3. Bank of Maharashtra 300.00 300.00 70.25

4. IDFC First Bank Ltd 1500.00 1500.00 627.96

5. Shriram Transports Finance Co Ltd 100.00 100.00 4.61

6. Dhanlaxmi Bank Ltd 300.00 300.00 190.90

7. Electronica Finance Ltd 421.00 421.00 252.35

8. Avanse Financial Services Ltd 200.00 200.00 98.83

9. Incred Financial Services Ltd 250.00 250.00 144.84

10. A K Capital Finance Pvt ltd 100.00 100.00 46.66

11. Jain Sons Finlease Ltd 250.00 250.00 250.00

TOTAL 4,221.00 4,221.00 1,885.23

Own Product wise Disbursement as on Mar-19

Sl.

No Product Name

Disbursement Amount

(Rs. In Lakhs)

1 Vehicle Finance 485.83

2 Mortgage Business Loan 666.30

3 Business Loan 742.05

TOTAL 1894.18

26%

35%

39%

Own Product wise Disbursement

Vehicle Finance


Business Loan


17

Own Productwise Portfolio Outstanding as on 31st Mar 2019

Sl. No Product Name

Portfolio Outstanding Amount

(Rs. In Lakhs)

1 Vehicle Finance 952.43

2 Mortgage Business Loan 1164.24

3 Business Loan 611.71

TOTAL 2,728.38

Own Portfolio at Risk as on 31st Mar 2019

Sl. No Particulars

Portfolio Outstanding

Amount (Rs. In Lakhs)

1 On time 2668.84

2 1-30 days 28.70

3 31-60 days 12.35

4 61-90 days 8.30

5 91-180 days 6.41

6 181-365 days 2.32

7 >365 1.46

Vehicle Finance

35%


43%

Business Loan22%

Own Productwise Portfolio Outstanding as on 31st Mar 2019


18

CAR Details as on 31st Mar 2019

Sl. No Particulars 2018-19

1 Tier I Capital (Net Owned Funds) 781.95

2 Tier II Capital 764.94

3 Total Capital Funds 1,546.89

4 Risk Weighted Assets 2810.85

Capital Adequacy Ratio 55.03%

FINANCIAL HIGHLIGHTS

Particulars Year ended 31st

March, 2019

(Rs in Lakhs)

Year ended 31st

March, 2018

(Rs in Lakhs)

Year ended 31st

March, 2017

(Rs in Lakhs)

Revenue from Operations 1029.56 718.85 470.71

Net Profit/Loss (before

depreciation and tax)

98.29 77.89 48.72

Less : Depreciation 11.51 12.29 10.18

Net Profit/(Loss) before tax 86.79 65.60 38.54

Less : Provision for Tax

(including for deferred tax)

22.57 16.89 9.94

Net Profit/(Loss) after tax 64.22 48.71 28.59


19

SUCCESS STORIES

Branch Name : Laxmeshwara

Customer Name : Mahesh Khanoj

Residential Address : Poojar plat, Yarebhudihal, Tq-Kundagol Dis-Dharawad

Business : Agriculture, Milk seller and seeds seller

Loan Disbursement Date : 16 May 2017

Loan amount : Rs. 45,000/-

Loan Purpose : Two Wheeler Loan

Mr. Mahesh Khanoj has agricultural background. His aim is to start his own Dairy business. He own two cows and is also having seeds business. He used to sell milk

within his village. He wanted to expand his business and for that he wanted to purchase a bike so that he can travel outside the village also for selling milk.

He approached Chetana Financial Services Private Limited to provide financial assistance to enable him to purchase a bike and got sanction of Rs. 45,000/-. Now he is successfully running his business and is getting profit of Rs. 5000-6000 per month.

He has also closed his old loan and again got Sanction of Rs 20,000/- in 2018 for expansion of his dairy.


20

SUCCESS STORIES

Branch Name : Shikaripura

Customer Name : Sumithra R

Residential Address : W/O Ravikumar, Channakeshwara Nagara

Siddeshwara Nagara, 6th Cross Shikaripura Shimogga-577427

Business : Hotel Business

Loan Disbursement Date : 04th Jul 2018

Loan Amount : Rs.10,00,000/-

Loan Purpose : Business Loan

Mrs. Sumithra R opened a small tea stall in a small area at her village with little cash investment, with the support of her family. She thought of opening a Small Hotel with

some regional Breakfast items in her menu. As she saw there is huge market for regional recipes & meals, she stated to expand her hotel business by serving lunch and dinner also. She employed 4-5 persons to serve the orders. After having 10 years of

experience in serving better and quality food to her customers, she thought of further expanding her hotel building, interior and manage the inventories. She approached Chetana Financial Services Private Limited at Shikapura Branch for financial

assistance. She got sanctioned of Rs. 10,00,000/- in 2018 and is paying her Loan EMIs regularly.


21

DIRECTORS’ REPORT

To The Members

CHETANA FINANCIAL SERVICES PRIVATE LIMITED

Your Directors are pleased to present the 23rd Annual Report, on the working and progress of the Company, together with audited Statement of Accounts and the Auditors’ Report of the company for the financial year ended 31st March, 2019.

FINANCIAL RESULTS:

The Company’s performance for the year ended March 31, 2019 is summarized as follows:-

(Rs in Lacs)

Particulars Year ended 31st March, 2019

Year ended 31st March, 2018

Revenue from Operations 883.38 690.32

Net Profit/Loss (before depreciation and tax)

98.29 77.89

Less : Depreciation 11.51 12.29

Net Profit/(Loss) before tax 86.79 65.60

Less : Provision for Tax (including for deferred tax)

22.57 16.89

Net Profit/(Loss) after tax 64.22 48.71

BRIEF DESCRIPTION OF THE COMPANY’S WORKING DURING THE YEAR/STATE OF COMPANY’S AFFAIRS:

The company’s performance has been better during the year under review with an increase in turnover by 28% as compared to the previous year. The net profit of the

Company has also increased by 32%. Your directors expect the company’s performance to improve further during the current year.

DIVIDEND:

No Dividend was declared for the current financial year due to conservation of Profits.

RESERVES: No amount was transferred to the reserves during the financial year ended 31st March,

2019.


22

CHANGE IN THE NATURE OF BUSINESS, IF ANY: There has been no change in the nature of the company’s business.

MATERIAL CHANGES AND COMMITMENTS:

The Company has been converted from public limited company to private limited company.

No other material changes and commitments affecting the financial position of the

Company occurred between the end of the financial year to which this financial statement relates and the date of this report.

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS:

The Company has a proper and adequate system of internal control procedures, commensurate with its size and nature of business, to provide reasonable assurance

that all assets and resources are safeguarded and protected against loss from unauthorized use or disposition, and that transactions are authorized, recorded and

reported correctly. The Internal Control system provides for well documented policies, guidelines, authorizations and approval procedures.

DETAILS IN RESPECT OF FRAUDS REPORTED BY THE AUDITORS UNDER SUB-SECTION (12) OF SECTION 143 OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT:

An incident of fraud by two employees of the Company has been noticed and reported

during the course of audit by the auditor. The cash recoveries to the loan accounts were not deposited into the company’s account. It was used by the accused employees for their own use. After due verification of receivables and confirmations with the

parties concerned, the amount of fraud is estimated to Rs. 28,39,059. The Company has taken legal action against the accused and has also taken necessary

steps to recover the amount.

DETAILS OF SUBSIDIARY/JOINT VENTURES/ASSOCIATE COMPANIES:

The Company does not have any Subsidiary, Joint venture or Associate Company.

DEPOSITS:

The Company is not covered under section 76 of the Companies Act, 2013. Therefore,

disclosure regarding acceptance, unpaid or unclaimed and default in repayment of deposits or interest thereon, does not arise.


23

EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS MADE BY THE AUDITORS AND THE

PRACTICING COMPANY SECRETARY IN THEIR REPORTS: There were no qualifications, reservations or adverse remarks made by the Auditors in

their report. The provisions relating to submission of Secretarial Audit Report is not applicable to the Company.

SHARE CAPITAL:

a. INCREASE IN SHARE CAPITAL

The company has not increased its authorized or paid up share capital.

b. BUY BACK OF SECURITIES

The Company has not bought back any of its securities during the year under review.

c. SWEAT EQUITY The Company has not issued any Sweat Equity Shares during the year under

review.

d. BONUS SHARES

No Bonus Shares were issued during the year under review.

e. EMPLOYEES STOCK OPTION PLAN

The Company has not provided any Stock Option Scheme to the employees.

EXTRACT OF THE ANNUAL RETURN: The Extract of Annual Return required under Section 134(3)(a) of the Companies Act,

2013 read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, forms part of this report as Annexure-A.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:

A. Conservation of Energy, Technology Absorption The Company continues to strengthen the conservation of energy and it has

consumed very less power for its day to day operations. The Company is putting all its effort to minimize the Consumption of energy wherever possible.

The Company has not adopted any foreign technology.

B. Foreign Exchange Earnings and Outgo

There were no foreign exchange earnings and outgo during the year under review.


24

CORPORATE SOCIAL RESPONSIBILITY (CSR):

The provisions of Corporate Social Responsibility under section 135 of the Companies

Act, 2013 is not applicable to our company. Therefore, the Company has not developed and implemented any Corporate Social Responsibility initiatives.

AUDITORS:

Mr. B V Raveendranath Chartered Accountant, Sagar having Membership No. 28679 the Statutory Auditors of the Company have been appointed in 20th Annual General Meeting for a term of 5 years i.e., till the conclusion of 25th Annual General Meeting.

The Companies (Amendment) Act, 2017 has waived the requirement for ratification of the appointment of auditor by the shareholders at every Annual General Meeting with effect from May 07, 2018. Hence, the approval of the members is not being sought for

the re-appointment of the Auditors. CHANGES IN DIRECTORS AND KEY MANAGERIAL PERSONNEL:

The Board of Directors in their meeting held on 6th June, 2018 has changed the

designation of Mr. Nagendra V Mali from Executive Director to Executive Director cum Chairman of the Company.

Ms. Neelu Daslana had been appointed as the Company Secretary of the Company on 28th June, 2018. But she resigned from the post w.e.f from 05th December, 2018.

There is no such other change in the composition of the Board.

NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS: During the Financial Year 2018-19, the Board of Directors of the Company duly met

Twenty Two (22) times i.e. on the following dates:-

Sl. No.

Date of Board Meeting Sl. No.

Date of Board Meeting

1 4th April, 2018 12 10th August, 2018

2 5th May, 2018 13 14th August, 2018

3 6th June, 2018 14 29th August, 2018

4 11th June, 2018 15 3rd September, 2018

5 12th June, 2018 16 21st November, 2018

6 26th June, 2018 17 17th December, 2018

7 28th June, 2018 18 7th January, 2019

8 30th June, 2018 19 22nd January, 2019

9 21st July, 2018 20 29th January, 2019

10 25th July, 2018 21 4th February, 2019

11 7th August, 2018 22 29th March, 2019

The intervening gap between the two meetings was within the period as prescribed under the Companies Act, 2013.


25

Further, the status of attendance of Board Meeting by each of Director is as follows:

Sl. No.

Name of Director No. of Board meetings held

No. of Board Meetings

Attended

1 Maruti Fakkirappa Bajantri 22 21

2 Nagendrappa Virupakshappa Mali

22 22

3 Manjunath Durugadahanumantappa Kasavanahalli

22 22

4 Chandrakala Nagendrappa Mali 22 21

5 Chandrappa Siddappa Manegar 22 21

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION

186:

The Company has not made any investment, given guarantee and securities during the

year under review. Therefore, there is no need to comply with provisions of Section 186 of Companies Act, 2013.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

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, 2019 is attached in prescribed Form AOC-2 in Annexure B and forms part of this report.

RISK MANAGEMENT POLICY:

The Company has developed and implemented a risk management policy which

identifies major risks which may threaten the existence of the Company. The same has also been adopted by our Board and is also subject to its review from time to time. Risk mitigation process and measures have been also formulated and clearly spelt out in the said policy.

DISCLOSURE ON ESTABLISHMENT OF VIGIL MECHANISM:

The Company promotes ethical behaviour in all its business activities and has put in

place a mechanism of reporting illegal or unethical behaviour. The Company has a vigil mechanism process wherein the employees are free to report violations of law, rules,

regulations or unethical conduct by post. The confidentiality of those reporting violations is maintained and they are not subjected to any discriminatory practice.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

The Company is committed to provide a safe and conducive work environment to its

employees. During the year under review, The Company has adequate system for


26

prevention of Sexual Harassment of women at workplace and has set up a cell for the same.

Your Directors further state that during the year under review, there were no cases filed, pursuant to the Sexual Harassment of Women at Workplace (Prevention,

Prohibition and Redressal) Act, 2013.

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN

STATUS AND COMPANY’S OPERATIONS IN FUTURE: There were no such orders passed.

DIRECTORS’ RESPONSIBILITY STATEMENT:

Pursuant to Section 134(3) (c) of the Companies Act, 2013 the Board of Directors of the Company confirms that:

a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b) the directors had selected such accounting policies and applied them

consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for that period;

c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for

safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d) the directors had prepared the annual accounts on a going concern basis; and

e) The Company being unlisted, sub clause (e) of Section 134(5) of the Companies Act 2013 pertaining to laying down of internal financial control is not applicable

to the Company. f) the directors had devised proper systems to ensure compliance with the

provisions of all applicable laws and that such systems were adequate and

operating effectively. OTHER STATUTORY PARTICULARS:

Provisions under the Companies Act, 2013 and the Rules made thereunder in respect

of the following matters do not apply to the company.

Corporate Social Responsibility (CSR)

Declaration by an Independent Director(s) and re- appointment, if any

Formal Annual Evaluation of Board of Directors

Constitution of Audit Committee

Constitution of Nomination and Remuneration Committee

Secretarial Audit Report


27

Company’s policy relating to appointment of Directors, payment of Managerial remuneration, Directors’ qualifications, positive attributes, independence of

Directors and other related matters

Corporate Governance Certificate

ACKNOWLEDGEMENTS:

Your Directors take this opportunity to express their appreciation for the co-operation and assistance received from all the stake holders during the year.

Your Directors place on record their deep appreciation to employees at all levels for their hard work, dedication and commitment. The enthusiasm and unstinting efforts of

the employees have enabled the Company to remain an industry leader. Date: 28.06.2019 For Chetana Financial Services Private Limited

Place: Haveri

Nagendra V Mali Manjunath K

Chairman/ Director Managing Director DIN: 02235648 DIN: 02278699


28

ANNEXURE A

FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN

as on financial year ended on 31.03.2019

[Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the

Company (Management & Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

i. CIN

U85110KA1996PTC021326

ii. Registration Date

30/10/1996

iii. Name of the Company

CHETANA FINANCIAL SERVICES

PRIVATE LIMITED

iv. Category/Sub-Category of the

Company

Company limited by Shares/ Non-

govt. company

v. Address of the Registered office

and contact details

Mali Compound, Shivabasava Nagar,

Haveri-581110, Karnataka

Contact Details:- 08375 233428/

9480696169

vi. Whether listed company

No

vii. Name, Address and Contact

details of Registrar and Transfer

Agent, if any

N.A

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

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

company shall be stated:-

Sl.

No.

Name and Description of

main products/ services

NIC Code of

the

Product/

service

% to total turnover

of the company

1. Interest on Loan 64990 100%


29

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES :

Sl.

No.

Name And Address

Of The Company

CIN/GLN Holding/

Subsidiary

/Associate

% of

shares

held

Applicable

Section

N.A

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

Total Equity)

i.Category-wise Share Holding

Category of

Shareholders

No. of Shares held at the

beginning of the year

No. of Shares held at the end of the

year

%

Change

during

the year

Demat Physical Total % of

Total

Shares

Demat Physical Total % of

Total

Shares

A. Promoter

1) Indian

a) Individual/

HUF - 545000 545000 8.61%

- 545000 545000 8.61% -

b) Central Govt. - - - - - - - - -

c) State Govt.(s) - - - - - - - - -

d) Bodies Corp - - - - - - - - -

e) Banks / FI - - - - - - - - -

f) Any Other - 5684500 5684500 89.81% - 5684500 5684500 89.81% -

Sub-total(A)(1):- - 6229500 6229500 98.42% - 6229500 6229500 98.42% -

2) Foreign

g) NRIs-

Individuals

- - - - - - - - -

h) Other-

Individuals

- - - - - - - - -

i) Bodies Corp. - - - - - - - - -

j) Banks / FI - - - - - - - - -

k) Any Other…. - - - - - - - - -

Sub-total(A)(2):- - - - - - - - - -

Total

shareholding

of Promoter (A)

=

(A)(1)+(A)(2)

-

6229500 6229500 98.42%

-

6229500 6229500 98.42% -

B. Public

Shareholding

a) Institutions - - - - - - - - -


30

b) Mutual Funds - - - - - - - - -

c) Banks / FI - - - - - - - - -

d) Central Govt. - - - - - - - - -

e) State Govt.(s) - - - - - - - - -

f) Venture

Capital

Funds

- - - - - - - - -

g) Insurance

Companies

- - - - - - - - -

h) FIIs - - - - - - - - -

i) Foreign

Venture

Capital

Funds

- - - - - - - - -

j) Others

(specify)

- - - - - - - - -

Sub-total(B)(1) - - - - - - - - -

2. Non-

Institutions

a) Bodies Corp.

(i) Indian

(ii) Overseas

- - - - - - - - -

b) Individuals

(i) Individual

shareholders

holding

nominal share

capital upto Rs.

1 lakh

(ii) Individual

shareholders

holding

nominal share

capital in

excess of Rs 1

lakh

-

-

52000

48000

52000

48000

0.82%

0.76%

-

-

52000

48000

52000

48000

0.82%

0.76%

-

-

c) Others(Specif

y)

- - - - - - - - -

Sub-total(B)(2) - 100000 100000 1.58% - 100000 100000 1.58% -

Total Public

Shareholding

(B)=(B)(1)+ (B)(2)

- 100000 100000 1.58%

- 100000 100000 1.58% -

C. Shares held

by Custodian

for GDRs

&ADRs

-

-

-

-

-

-

-

-

-


31

Grand Total

(A+B+C) - 6329500 6329500 100%

- 6329500 6329500 100% -

ii. Shareholding of Promoters

Sl.

No

Shareholder’

s Name

Shareholding at the


Shareholding at the end of

the year

No. of

Shares

% of

total

Shares

of the

compan

y

%of

Shares

Pledge

d /

encum

bered

to

total

shares

No. of

Shares

% of total

Shares of

the

company

%of

Shares

Pledged

/

encumb

ered to

total

shares

%

change

in

sharehol

ding

during

the year

1. Chandrakala N

Mali

138000 2.18 - 138000 2.18 - -

2. Nagendra V

Mali

42500 0.67 - 42500 0.67 - -

3. Kotragouda C 14500 0.23 - 14500 0.23 - -

4. Veerendra V

Mali

17500 0.28 - 17500 0.28 - -

5. Parvathavva V

Mali

312500 4.94 - 312500 4.94 - -

6. Nanda V Mali 10000 0.16 - 10000 0.16 - -

7. Chandrashear

amanaegar

10000 0.16 - 10000 0.16 - -

8. Navachetana

Vividoddesh

Souharda

Sahakari

Niyamit,

Haveri

3684500 58.21 - 3684500 58.21 - -

9. Chairperson,

Navajeevan

Foundation

2000000 31.60 - 2000000 31.60 - -

TOTAL 6229500

0

98.42% - 622950 98.42% - -

iii. Change in Promoters’ Shareholding(Please specify, if there is no change) :

Sr

.

no

Shareholding at the


Cumulative Shareholding

during the year


32

No. of

shares

% of total

shares of

the

company

No. of

shares

% of total

shares of the

company

At the beginning of the

year

NO CHANGE

Date wise Increase /

Decrease in Promoters

Share holding during

the year specifying the

reasons for increase /

decrease (e.g.

allotment / transfer /

bonus/ sweat equity

etc):

At the End of the year

iv.Shareholding Pattern of top ten Shareholders (other than Directors, Promoters

and Holders of GDRs and ADRs):

Sl

.

N

o.

GANESH E K

Shareholding at the end

of the year

Cumulative

Shareholding during

the year

1

For Each of the Top 10

Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 14500 0.23% 14500 0.23%

Date wise

increase/decrease in

Promoters Shareholding

during the year

specifying the reasons

for increase/decrease

(e.g.

allotment/transfer/bon

us/sweat equity etc)

-

-

-

-


33

At the end of the year (or

on the date of

separation, if separated

during the year)

14500 0.23% 14500 0.23%

Sl

.

N

o.

SURESH JALAGAR Shareholding at the end

of the year

Cumulative

Shareholding during

the year

2


Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 10000 0.16% 10000 0.16%

Date wise



during the year



(e.g.



-

-

-

-


on the date of


during the year)

10000 0.16% 10000 0.16%

Sl

.

N

o.

M R PATIL Shareholding at the end

of the year

Cumulative

Shareholding during

the year

3


Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 7000 0.11% 7000 0.11%


34

Date wise



during the year



(e.g.



-

-

-

-


on the date of


during the year)

7000 0.11% 7000 0.11%

Sl

.

N

o.

S H PATIL Shareholding at the end

of the year

Cumulative

Shareholding during

the year

4


Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 7000 0.11% 7000 0.11%

Date wise



during the year



(e.g.



-

-

-

-


on the date of


during the year)

7000 0.11% 7000 0.11%


35

Sl

.

N

o.

BASAVRAJLAKKOLI Shareholding at the end

of the year

Cumulative

Shareholding during

the year

5


Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 5000 0.08% 5000 0.08%

Date wise



during the year



(e.g.



-

-

-

-


on the date of


during the year)

5000 0.08% 5000 0.08%

Sl

.

N

o.

SHOBHA H K Shareholding at the

end of the year

Cumulative

Shareholding during

the year

6


Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 5000 0.08% 5000 0.08%

Date wise



during the year specifying

the reasons for

increase/decrease (e.g.

-

-

-

-


36

allotment/transfer/bonus

/sweat equity etc)


on the date of separation,

if separated during the

year)

5000 0.08% 5000 0.08%

Sl

.

N

o.

SRINIVASAGENEGERE Shareholding at the end

of the year

Cumulative

Shareholding during

the year

7


Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 5000 0.08% 5000 0.08%

Date wise



during the year



(e.g.



-

-

-

-


on the date of


during the year)

5000 0.08% 5000 0.08%

Sl

.

N

o.

SHIVANANDA M K Shareholding at the end

of the year

Cumulative

Shareholding during

the year

8


Shareholders

No. of

shares

% of total

shares of the

No. of

shares

% of total

shares of


37

company the

company


year 5000 0.08% 5000 0.08%

Date wise



during the year



(e.g.



-

-

-

-


on the date of


during the year)

5000 0.08% 5000 0.08%

Sl

.

N

o.

YALLAPPAGUNDENAHA

LLI

Shareholding at the end

of the year

Cumulative

Shareholding during

the year

9


Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 5000 0.08% 5000 0.08%

Date wise



during the year



(e.g.



-

-

-

-


on the date of


5000 0.08% 5000 0.08%


38

during the year)

Sl

.

N

o.

NISSARAHAMAD Shareholding at the end

of the year

Cumulative

Shareholding during

the year

10


Shareholders

No. of

shares

% of total

shares of the

company

No. of

shares

% of total

shares of

the

company


year 3000 0.05% 3000 0.05%

Date wise



during the year



(e.g.



-

-

-

-


on the date of


during the year)

3000 0.05% 3000 0.05%

(v) Shareholding of Directors and Key Managerial Personnel:

Sl.

No.

Shareholding at the

beginning

of the year


during the year

1. MARUTI

FAKKIRAPPA

BAJANTRI

No. of

shares

% of total

shares of

the

company

No. of

shares

% of total

shares of

the

company

At the beginning

of

the year

16500 0.26% 16500 0.26%


39

Date wise

Increase /

Decrease in

Shareholding

during the year

specifying the

reasons for

increase /

decrease (e.g.

allotment /

transfer / bonus/

sweat equity etc):

- - - -

At the End of

the year

16500 0.26% 16500 0.26%

Sl.

No.

Shareholding at the

beginning

of the year


during the year

2. NAGENDRAPPA V

MALI

No. of

shares

% of total

shares of

the

company

No. of

shares

% of total

shares of

the

company

At the beginning

of

the year

42500 0.67% 42500 0.67%

Date wise

Increase /

Decrease in

Shareholding

during the year

specifying the

reasons for

increase /

decrease (e.g.

allotment /

transfer / bonus/

sweat equity etc):

- - - -

At the End of

the year

42500 0.67% 42500 0.67%


40

Sl.

No.

Shareholding at the

beginning

of the year


during the year

3. MANJUNATH D

KASAVANAHALLI

No. of

shares

% of total

shares of

the

company

No. of

shares

% of total

shares of

the

company

At the beginning

of

the year

17000 0.27% 17000 0.27%

Date wise

Increase /

Decrease in

Shareholding

during the year

specifying the

reasons for

increase /

decrease (e.g.

allotment /

transfer / bonus/

sweat equity etc):

- - - -

At the End of

the year

17000 0.27% 17000 0.27%

Sl.

No.

Shareholding at the

beginning

of the year


during the year

4. CHANDRAKALA

NAGENDRAPPA

MALI

No. of

shares

% of total

shares of

the

company

No. of

shares

% of total

shares of

the

company

At the beginning

of

the year

138000 2.18% 138000 2.18%

Date wise

Increase /

Decrease in

Shareholding

during the year

- - - -


41

specifying the

reasons for

increase /

decrease (e.g.

allotment /

transfer / bonus/

sweat equity etc):

At the End of

the year

138000 2.18% 138000 2.18%

Sl.

No.

Shareholding at the

beginning

of the year


during the year

5. CHANDRAPPA

SIDDAPPA

MANEGAR

No. of

shares

% of total

shares of

the

company

No. of

shares

% of total

shares of

the

company

At the beginning

of

the year

10000 0.16% 10000 0.16%

Date wise

Increase /

Decrease in

Shareholding

during the year

specifying the

reasons for

increase /

decrease (e.g.

allotment /

transfer / bonus/

sweat equity etc):

- - - -

At the End of

the year

10000 0.16% 10000 0.16%

V. INDEBTEDNESS

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

payment


42

Secured

Loans

excluding

deposits

Unsecured

Loans

Deposits Total

Indebtedness

(Rs)

Indebtedness at the

beginning of the

financial year

i) Principal Amount

ii) Interest due but

not paid

iii) Interest accrued

but not

29,55,54,971

NIL

NIL

29,55,54,971

Total (i+ii+iii) 29,55,54,971 NIL NIL 29,55,54,971

Change in

Indebtedness during

the financial year

- Addition

- Reduction

NIL

(2,51,73,343)

NIL

NIL

NIL

NIL

NIL

(2,51,73,343)

Net Change (2,51,73,343) NIL NIL (2,51,73,343)

Indebtedness at the

end of the financial

year

i) Principal Amount

ii) Interest due but

not paid iii) Interest

accrued but not due

27,03,81,628

NIL

NIL

27,03,81,628

Total (i+ii+iii) 27,03,81,628 NIL NIL 27,03,81,628

VI.REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

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

Sl.

No.

Particulars of Remuneration Name of

MD/WTD/

Manager

Total

Amount

MANJUNATH K

1. Gross salary


43

(a)Salary as per provisions

containedinsection17(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

undersection17(3)Income-

taxAct,1961

12,60,000 12,60,000

2. Stock Option NIL NIL

3. Sweat Equity NIL NIL

4. Commission

- as% of profit

- Others, specify…

NIL NIL

5. Others, please specify NIL NIL

6. Total(A) 12,60,000 12,60,000

Ceiling as per the Act N.A N.A

B. Remuneration to Other Directors:

Sl.

No.

Particulars of Remuneration Name of

Directors

Total

Amount

Independent Directors

·Fee for attending board

committee meetings

·Commission

·Others, please specify

NIL

NIL

Total(1) NIL NIL

Other Non-Executive Directors

·Fee for attending board

committee meetings

·Commission

·Others, please specify

NIL

NIL

Total(2) NIL NIL

Total(B)=(1+2) NIL NIL

Total Managerial Remuneration NIL NIL

Overall Ceiling as per the Act NIL NIL


44

C. Remuneration to Key Managerial Personnel Other Than MD/ Manager/ WTD

Sl.

No.

Particulars of

Remuneration

Key Managerial Personnel

CEO Company

Secretar

y

CFO Total

NEELU

DASLANA

1. Gross salary

(a)Salary as per

provisions contained

in section17(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

NIL

1,62,707

NIL

1,62,707

2. Stock Option NIL NIL NIL NIL

3. Sweat Equity NIL NIL NIL NIL

4. Commission

- as% of profit

- Others, specify…

NIL NIL NIL NIL

5. Others, please

specify

NIL NIL NIL NIL

6. Total NIL 1,62,707 NIL 1,62,707


45

VII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section

of the

compani

es Act

Brief

descriptio

n

Details of Penalty/

Punishment/Compound

ing fees imposed

Authority[R

D

/NCLT/Cour

t]

Appeal

made.

If

any(giv

e

details)

A. Company

Penalty

NIL Punishment

Compoundi

ng

B. Directors

Penalty

NIL Punishment

Compoundi

ng

C. Other Officers In Default

Penalty

NIL Punishment

Compoundi

ng

Date: 28.06.2019 For Chetana Financial Services Private Limited

Place: Haveri

Nagendra V Mali Manjunath K Chairman/ Director Managing Director

DIN: 02235648 DIN: 02278699


46

ANNEXURE B

FORM AOC-2

(Pursuant to clause (h) of sub section (3) of section 134 of the Act and Rules 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

Company Act, 2013 including certain arm’s length transactions under third provision

thereto;

1. Details of contracts of arrangements of transaction not at arm’s length basis- Not applicable

2. Details of contracts of arrangements of transaction at arm’s length basis:-

a) Name(s) of the related party and nature of relationship:-Navachetana

Enterprises Haveri Private Limited

b) Nature of contracts/arrangements/transactions:- Purchase of office Equipment’s

and Gift Items

c) Duration of the contracts/arrangements/transactions:- On going

(d) Salient terms of the contracts or arrangements or transactions including the value,

if any: N.A

(e) Date(s) of approval by the Board, if any: 4th April, 2018

(f) Amount paid as advances, if any: N.A

Date: 28.06.2019 For Chetana Financial Services Private Limited

Place: Haveri

Nagendra V Mali Manjunath K Chairman/ Director Managing Director DIN: 02235648 DIN: 02278699


47

NOTICE

Notice is hereby given that the Twenty Third Annual General Meeting of CHETANA

FINANCIAL SERVICES PRIVATE LIMITED will be held on 20th Day of September, 2019

at 11:30 a.m. at the registered office of the Company situated at Mali Compound,

Shivabasava Nagar, Haveri-581110 to transact the following business:-

ORDINARY BUSINESS:

1. To consider, approve and adopt the Audited Financial Statements for the financial

year ended 31st March, 2019 and the Reports of the Board of Directors and

Auditors thereon and to consider and if thought fit, to pass with or without

modification(s), the following resolution as an Ordinary Resolution:

“RESOLVED THAT the Directors’ Report and the Audited Balance Sheet as on year

ended 31st March, 2019 and the Profit and Loss Accounts for the Year ended on

31st March, 2019 along with the Auditors’ Report thereon are hereby considered,

approved and adopted.”

Date: 11.09.2019 By order of the Board of Directors

Place: Haveri

Manjunath K Managing Director DIN: 02278699


48

NOTES:

1. Appointment of Proxy: A member entitled to attend and vote at the meeting is

entitled to appoint a proxy to attend and vote (on a poll only) instead of himself /

herself and such a proxy need not be a member of the company. Proxies in order

to be effective must be received at the registered office of the company not less

than 48 hours before the commencement of the meeting. (Proxy Form MGT-11 -

Annexure A)

2. Corporate Members: Corporate Members intending to send their authorized

representatives to attend the meeting are requested to send a certified copy of the

Board Resolution authorizing their representative to attend and vote on their

behalf at the Meeting.

3. Attendance Slip: Members/Proxies/Representatives should bring the

attendance slips (Annexure B) duly filled, signed and stamped in for attending the

meeting and further requested to bring their copy of annual report.

4. Inspection of Documents: All documents referred to in the accompanying

Notice and Registers shall be open for inspection at the Registered Office of the

Company during business hours between 11:00 am to 01:00 P.M. except on

holidays, up to and including the date of the Annual General Meeting of the

Company.

5. Queries at the AGM: Queries proposed to be raised at Annual General Meeting

may be send to the Company at its registered office atleast three days prior to the

date of AGM to enable the management to compile the relevant information to

reply the same in the meeting.

6. Joint Holder: Joint holders attending the meeting, only such joint holder who is

higher in the order of names will be entitled to vote.


49

Annexure A Form No. MGT-11

Proxy form

[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies

(Management and Administration) Rules, 2014]

CIN

Name of the company

Registered Office

Name of the Member(s)

Registered Office

E-mail Id

Folio No /Client ID

DP ID

I/We, being the member(s) of ____________shares of the above named company. Hereby appoint

Name :

Address:

E-mail Id:

Signature , or failing him

Name :

Address:

E-mail Id:


Name :

Address:


50

E-mail Id:


as my/ our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the

______________Annual General Meeting of the company, to be held on the ____ day of ___at_____ a.m. /

p.m. at ____________(place) and at any adjournment thereof in respect of such resolutions as are

indicated below:

Resolution No.

1.________________

2.________________

Signed this _____day of _____20___

Signature of Shareholder

Note: This form of proxy in order to be effective should be duly completed and deposited at the

Registered Office of the Company, not less than 48 hours before the commencement of the

Meeting.

Affix Revenue

Stamps


51

Annexure B

ATTENDANCE SLIP

Twenty Third Annual General Meeting, 20th Day of September, 2019 at 11:30 a.m.

Reg. Folio/DP & Client No:

No. of shares held:

I certify that I am a registered shareholder/proxy/Representatives for the registered Shareholder of the Company and hereby record my presence at the Twenty Third Annual General Meeting of the Company on 20th Day of September, 2019 at 11:30

a.m. at Mali Compound, Shivabasava Nagar, Haveri-581110.

Member’s Name:

Proxy’s Name:

Member’s/ Proxy’s Signature

Note:

1) Please fill this attendance slip and hand it over at the entrance of the Hall.

2) Members/Proxy Holders/Authorized Representatives are requested to show their

Photo ID Proof for attending the Meeting.

3) Authorized Representatives of Corporate members shall produce proper

authorization issued in their favour.

PHOTO GALLERY

Regd. Office: Mali Compound, Shivabasava Nagar, Haveri-581110, Karnataka Email Id: [email protected], Website: www.chetanafinancial.com

Contact No: 08375 233427, 94806 96158
