fffi:q - mas financial services and jabalpur ln tamilnadu it operates through its ... (mas rural...
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fffi:q'[fre cPower of Distri|ution
18t" ANNUAL REPoRT
20t2-L3
REGISTERED OFFICE
6, GROUND FLOOR, NARAYAN CHAMBERS,
B/H.PATANG HOTEL, ASHRAM ROAD,
AHMEDABAD - 38OOO9.
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DIRECTORS' REPORT
To,
The Members,MA5 FINANCIAI SERVICES tTD.Ahmedabad
Your Directors are happy to present the EIGHTEENTH ANNUAT REPORT of your company togetherwith the Audited Accounts drawn for the year ended on 31't March 2013.
FINANCIAL RESUITS:
AN IMPORTANT LANDMARKI ! !
of Rs.1000cr AUM. Every
ta ke this opportunity tolam delighted to inform that MAS has crossed very important milestone
time we reach any milestone we believe that we have just started. We
/G.. I6ffi- i{. /yI
ParticularsYear Ended3l/03/13
RUPEES
Year Ended3l/03/12
RUPEES
lnterest on Loans to Customers (Net) t,2r8,699,62L 943,L62,643
lncome From operations & Other lncome L55444720 L49,589,183
Total lncome L,374,L44,34L t,w?',751,826
Total Expenditure 99tL32796 818,740,09s
Profit Before Tax 383011545 274,O17,731
Provision for Taxation (lncluding Deferred Tax,
Fringe Benefit Tax & lncome Tax of earlier Years)1239s8701. 90,743,202
Net Profit 259052844 t83,268,529
Profit Brought Forward 64264328 34,683,852
Profit Available for Appropriation l23tL7t72 2L7,952,38L
APPROPRIATIONS:
Premium on Redemption of Cumulative Redeema-
ble Preference Sharesro7777250
Transfer to Statutory Reserve 51810569 36,653,706
lnterim Dividend 10432877
Proposed Dividend 65430050 84929763
corporate Tax on Dividend 12306858 1377773r
Transfer to General Reserve 25905284 18,326,853
Transfer to Capital Redemption Reserve
Surplus Balance carried to Balance Sheet s6260264 64,264,3?.8
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rededicate ourselves to the vision and the mission of the company of creating value on very large
scale through ever striving for excellence through endeavours. Well aware of the fact that it is a taskto be worked upon continuously.
BUSINESS PERFORMANCE:
ln the year 2012-13 the company continues to grow at an impressive 'aIe of 48o/o in AUM and 41% in
terms of PAT, evident from the financial presented above. The gross income realized by the company
is { 137.41 Crore (Previous year 7 7Q9.27 crore) comprising of lnterest lncome on Loans tocustomers. Net Profit after tax is ( 25.91 Crore (Previous year 18.33 Crore). Asset under
Management is { 1017.78 crore (Previous yearT 687.4t Crore). This year's performance sets thestage for the further growth in AU M accompanied by increased geographica I presence.
PROSPECTS AND DEVETOPMENTS:
The policy of the company to cater to the lower and the middle income segment continues to be the
key driver of growth. Various products ranging from MSME (Micro, Small and Medium Enterprises)
Loans to Home Loans (through its subsidiary MRHMFL) caters to the various needs of the vast
section of the society.
This is a very huge market to be served, which needs an efficient last mile delivery of credit thus
creating enormous opportunity for all the financial institutions and NBFCs in special.
We firmly believe, that financial inclusion in a country like lndia is a function of efficient last mile
delivery of credit, for which a very robust value chain has to be nurtured and developed. NBFCs in
special play a pivotal role in this value chain and deserve its due understanding and recognition thus
creating an enabling situation to perform to its full potential.
lntroduction of machinery loans to the SME this year has shown lot of promise. We are in theprocess of understanding the seBment and are keen to add value to all such small and medium
enterprises by extending the most efficient financial services. ln consonance to our policy of building
up quality assets, we are confident of creating inroads in this market too.
Partnering with regional NBFCs for distribution of various products and providing them the line of
credit also remains one of the major business planks. We firmly believe that the players having
proximity to the region are the most potential organizations in the last mile delivery of credit. We
not only fund them but also share with them the domain expertise which the company possesses
through its vintage of more than two decades. We are encouraged by the response of such NBFCs
and are keen to forge very useful mutually beneficial relationships going forward.
The company has consolidated its operations in the region of Ra.iasthan, Maharashtra besides
cujarat. The company has expanded its operations in Madhya Pradesh beyond lndore to Bhopal,
Gwalior and Jabalpur ln Tamilnadu it operates through its Chennai branch and Karnataka through its
Bengluru (Banglore) branch, taking the tally of the branches to 78 and the total centers covered toapprox. 2700.
MRHMFL (Mas Rural Housing & Mortgage Finance Ltd. - subsidiary of MFSL) aims at serving the
middle income and the lower income sectof of the economy, especially in the semi urban and rural
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areas, which are reckoned to be the key drivers of the sector in the coming decades. Full-fledged
efforts are on to execute efficiently, as per the detail planning. Being aware of the challenges
involved in serving this class of the society, a very cautious approach is adopted in building up
volumes. Nevertheless, company is quite confident of building substantial volumes in the near
future. The company's rural initiative will also start yielding results shortly.
RESOURCES:
The company continues to enjoy the confidence of its current investors FMO and DEG and
acknowledges their constructive support.
The company is in process of identifying the potential investors. The internal accruals of the
company and the business model pursued will successfully enable us to grow at a commendable
pace of close to 30% per annum. Number of investors has shown keen interest.
The company by virtue of its performance over the years enjoys very good relationships with almost
all leading financing institutions and banks. The company could raise the required resources from
various banks and financial institutions comfortably. We anticipate the same response from all our
lending partners for the coming year too. The company anticipates credit lines from fuw more banks
and financial institutions besides the existing ones.
your Company continues to command the respect and the confidence of Bankers as their extended
channel in their task of providing efficient delivery of credit. The company acknowledges the
constructive support of the lnvestors and consortium member banks.
RISK MANA6EMENT
Financing activity is the business of management of risks, which in turn is the function of the
appropriate credit models and the robust systems and operations. Your company continues to focus
on the above two maxims, and is always eager to improve upon the same.
Your Company continues to give prime importance to the function of receivables management, as it
considers this the ultimate reflection of the correctness of marketing strategy as well as appraisal
techniques. The company achieved almost 94c/o recovery, with overdue of 60/o only.lt may be noted
that the above-mentioned 6% debtors are under strictest surveillance of follow up. The NPA
Accounts of the company is ? 8.93 Crore which is approximately O.88% ol Credit exposure which
includes managed portfolio.
CAPITAT
The Net Owned Fund of the company as on 31't March 2013 is ( 12K.02 Cr. inclusive of Rs. 10 Cr.
Equity Share Capital.
DIVIDEND
The Board propose final dividend at the rate of 35% for Equity shareholders for the year ended on
31't March, 2013.
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STATUTORY COMPTIANCE:
The Company has made necessary provisions towards non-performing assets, fully complying withthe provisioning requirement of the Prudential Norms prescribed by Reserve Bank of lndia. The
company has also complied with the directions issued by Reserve Bank of lndia regarding capitalAdequacy, Asset classification and provisioning norms.
INSURANCE:
The assets of your Company have been adequately insured.
TEGISLATIVE AND REGULATORY ISSUES
It has always been very challenging for the NBFC sector since long to get an enabling situation forgrowth. However, the sector has always enrerged stronger, despite of various discriminations. This
confirms the basic reality on the ground that, the last mile credit delivery provided by NBFCs is ofparamount importance, to say the least. However, we trust and believe; that, all the stakeholders
and regulators in particular will accord due importance to the sector and create an enabling situation
for the NBFCS to grow, which in turn will promote inclusive growth.
DIRECTORg RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1955, as amended by the Companies
(Amendment) Act, 2000, the Directors confirm that:
1. ln the preparation of the annual accounts for the Financial Year ended 31" March, 2013 the
applicable accounting standards have been followed.
2. Appropriate accounting policies have been selected and applied consistently and have made
judgments and estimates that are reasonable and prudent so as to give a true and fair view ofthe state of affairs of the Company as at 31't March, 2013 and of the profit for the period from
1't April, 2012 to 31't March, 2013.
3. Proper and sufficient care has been taken for the maintenance of adequate accounting records
in accordance with the provision of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities.
4. The annual accounts for the financial year ended 31't March 201.3 have been prepared on a
"Going Concern Basis".
STATUTORY INFORMATION
Particulars of Emplovees
The information as required Under Section 217 l2Al of the Companies Act, 1956 read with the
companies (Particulars of Employee) Rules, 1975, is NlL.
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Conservation of Enerqv, Technoloqv Absorption, Foreisn ExchanEe Earninss and outgo:
The Company has no activities relating to Conservation of energy or Technology Absorption. The
company has no Foreign Exchange earnings and outflow.
AUDITORS:
M/s. Deloitee Haskins & Sell, auditors of the Company retire at the ensuring Annual General Meeting
of the company and are eligible for reappointment. The members are requested to consider their
reappointment forthe financial year 2012-13.
DIRECTORS:
we are pleased to welcome Mr. Rakesh Rewari on the board as a nominee director of DEG. we trust
that his expertise and vast experience will add value in company's growth.
As per the provision of section 256 of the companies Act, 1956, Mr. Mukesh c. Gandhi and Mr.
chetan Shah retires by rotation at forthcoming Annual General Meeting and being eligible, offer
themselves for the re-appointment. Resolutions seeking approval of the shareholders for their
re - appointment have been incorporated in the notice ofthe forthcoming AnnualGeneral Meeting.
ACKNOWTEDGEMENT
The Directors place on record their appreciation to all those people, who have so willingly placed
their trust in the company & management and to more than 7 lacs customers across the length and
breadth of the states of Gujarat, Rajasthan, Maharashtra, Madhya Pradesh, Tamilnadu and
Karnataka, who have given the company opportunity to serve them'
The entire MAs Team deserves the appreciation for their sincere efforts and determination to excel.
I trust this journey will continue to be a pleasant one with their support, aware of the fact that we
have "Miles to go......... with the confidence that "Together We Can and We Will'"
Place : Ahmedabad.Date : 15th May,2013
Best Wishes,
FOR AND ON
KAMLESH C,
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DeloitteHaskins & Sells
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OFMAS FINANCIAL SERVICES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of MAS FINANCIAL SERVICES
LIMITED ("the Company"), which comprise the Balance Sheet as at 31"' March , 2013, the
Statement ofProfit and Loss and the Cash Flow Statement for the year then ended, and a summary ofthe significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these financial statements that give
a true and fair view ofthe financial position, financial performance and cash flows ofthe Company in
accordance with the Accounting Standards referred to in Section 2l 1(3C) of the Companies Act,
1956 ("the Act") and in accordance with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of intemal control relevant to the
preparation and presentation of the financial statements that,give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit We
conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered
Accountants of lndia. Those Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment ofthe risks ofmaterial misstatement ofthe financial statements, whether due
to fraud or eror. In making those risk assessments, the auditor considers intemal control relevant to
the Company's preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting estimates
made by the Management, as well as evaluating the overall presentation ofthe financial statements.
Wp believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Deloitt€ Haskins & SellsChartered Ac(ountanls'Hcritrgc,lrd floor,Near Guiarat Vrdhyarjith,Ott Ash.am Road.Ahmedabad 380 014.
Tel: +91 (079) 27582542+91 lO79) 215A2543+91 (079) 66073100
Fax: +91 (079) 27582551
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DeloitteHaskins & Sells
Opinion
In our opinion and to the best of our information and according to the explanations given to us, theaforesaid financial statements give the information required by the Act in the manner so required andgive a true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case ofthe Balance Sheet, ofthe state ofaffairs ofthe Company as at 3l"t March, 2013;
(b) in the case of the Statement ofProfit and Loss, ofthe profit ofthe Company for the year endedon that date; and
(c) in the case ofthe Cash Flow Statement, ofthe cash flows ofthe Company for the year ended onthat date.
Report on Other Legal and Regutatory Requirements
l. As required by the Companies (Auditor's Report) Order, 2003 (,the Order") issued by theCentral Government in terms of Section 227(4A) of the Act, we give in the Annexure astatement on the matters specified in paragraphs 4 and 5 ofthe Order.
2. As required by Section 227(3) ofthe Acr, we report that:
(a) We have obtained all the information and e,xplanations which to the best of ourknowledge and beliefwere necessary for the purposes ofour audit.
(b) In our opinion, proper books of account as required by law have been kept by theCompany so far as it appears from our examination ofthose books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealtwith by this Report are in agreement with the books ofaccount.
(d) In our opinion, the Balance Sheet, the Statement of profit and Loss, and the Cash FlowStatement comply with the Accounting Standards refened to in Section 2l l(3C) of theAct.
(e) On the basis of the written representations received from the directors as on31{ March,2013 taken on record by the Board of Directors, none of the directors isdisqualified as on 3l'r March, 2013 from being appointed as a director in terms ofSection 274(l)(g) ofthe Acr.
For DELOITTE HASKINS & SELLS
Deloitt. tlarkins & S€lkChartered A((ount.nlt'Heritage, 3rd floor,Near Guiaral Vrdhyrrihh,
Ahmedabad lao 014
fel: +91 (O19) 275A2542+91 (079) 27582541+91 (079) 65073100
Fax: +91 1079) 27582551
AHMEDABAD,l#r, ro,,
Chartered Accountants(Firm Regisjration No. I 17365W)
(Membership No. 35701)
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DeloitteHaskins & Sells
ANNEXT]RE TO THE INDEPENDENT AI]DITORS' REPORT(Refened to in paragraph I under 'Report on Other Legal and Regulatory Requirements'
section of our report ofeven date)
(i) In respect ofits fixed assets:
(a) The Company has maintained proper records showing full particulars,including quantitative details and situation ofthe fixed assets.
(b) The fixed assets were physically verified during the year by the Managementin accordance with a regular programme ofverification which, in our opinion,provides for physical verification ofall the fixed assets at reasonable intervals.According to the information and explanations given to us, no materialdiscrepancies were noticed on such verification.
(c) The fixed assets disposed ofduring the year, in our opinion, do not constitute asubstantial part ofthe fixed assets of the Company and such disposal has, in ,
our opinion, not affected the going concern status olthe Company.
(ii) The Company being a Non-Banking Financial Company has no inventory.Accordingly, the provisions ofclauses a(ii) (a), (b) & (c) ofthe Companies (AuditorsReport) Order are not applicable to the Company.
(iii) In respect ofthe loans, secured or unsecured, granted by the Company to companies,firms or other parties covered in the Register under section 301 ofthe Companies Act,1956:
(a) The Company has granted unsecured loans to a party covered in the registermaintained under section 301 ofthe Companies Act, 1956. At the year-end, theoutstanding balances of such loans aggregated to Rs. 20.00 lacs and themaximum amount involved during the year was Rs 802.98 lacs.
(b) According to the information and explanations given to us, the rate of interestand the other terms and conditions are not, in our opinion, prima facie,prejudicial to the interest ofthe Company.
(c) The receipts of principal amounts and interest have been regular/as perstipulations.
(d) There is no overdue amount is respect ofthe aforesaid loan.
The Company has not taken any loans, secured or unsecured, from companies, firmsor other parties covered in the Register under section 301 of the Companies Act,1956.
(iv) In our opinion and according to the information and explanations given to us, there isan adequate intemal control system commensurate with the size of the Company andthe nature of its business with regard to purchases of fixed assets and the sale ofservices. During the course ofour audit, we have not observed any major weakness insuch internal control system.
Dcloittc Halkins & 5elleChartered A((ountants'Heritage, lrd rloor,Near Gujarar Vidhyartith,Off Aehram Road.Ahmedabad - 380 014.
Tel: +91 (079) 27582542+91 (079) 27582543+91 (079) 66073100
Fax: +91 (079) 27582551
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DeloitteHaskins & Sells
(v) In respect of contracts or arrangements entered in the Register maintained inpursuance of Section 301 ofthe Companies Act, 1956, to the bsst of our knowledgeand beliefand according to the information and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section 301 thatneeded to be entered in the Register maintained under the said Section have beenso entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in respect of any party,the transactions have been made at prices which are prima facie reasonablehaving regard to the prevailing market prices at the relevant time.
(vi) According to the information and explanations given to us, the Company has notaccepted deposits from the public within the meaning of Section 58A of theCompanies Act, 1956, and the Rules framed thereunder.
(vii) In our opinion, the intemal audit functions carried out during the year by a firm ofChartered Accountants appointed by the Management have been commensurate withthe size ofthe Company and the nature of its business.
(viii) In respect ofthe activities ofthe Company, maintenance ofcost records has not beenprescribed by the Central Government under clause (d) of sub-section (l) of section' 209 of the Companies Act, 1956.
(ix) According to the information and explanations liven to us, in respect of statutorydues:
(a) The Company has generally been regular in depositing undisputed dues,including Provident Fund, Investor Education and Protection Fund, Employees'State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,Excise Duty, Cess and other material statutory dues applicable to it with theappropriate authorities.
(b) There were no undisputed amounts payable in respect of provident Fund,Investor Education and Protection Fund, Employees, State lnsurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other materialstatutory dues in arrears as at 3lst March, 2013 for a period of more than sixmonths from the date they became payable except for professional tax ofRs. 3.79lacs which has since been paid subsequent to the close ofthe year.
(c) According to the information and explanations given to us, there are no dues ofincome-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cesswhich have not been deposited on account ofany dispute.
(x) The Company has no accumulated losses as at 3lst March, 2013 and has not incuredany cash losses in the financial year ended on that date or in the immediatelypreceding financial year.
(xi) In our opinion and according to the information and explanations given to us, theCompany has not defaulted in the repayment of dues to banks, financial institutionsand debenture holders.
Deloitte llaskinr & SettlChanered Ac(ountanlt'Heritage, 3rd FlootNear 6ujarar V'dhyaiirh,Off Arhram Road,Ahmedabad - 38O 0r4.
Tel: +91 (079) 27582542+91 (079) 27582543+91 (079) 66073100
taxr +91 (079) 27582551
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DeloitteHaskins & Sells
(xii) In our opinion and according to the information and explanations given to us, no loanshave been granted by the Company on the basis of security by way of pledge ofshares, debentures and other securities.
(xiii) The Company is not a Chit fund, nidhi, mutual benefit fund or a society.
(xiv) According to the information and explanations given to us, the Company is notdealing or trading in shares, securities, debentures or any other investments.
(xv) In our opinion and according to the information and explanations given to us, theterms and conditions of the guarantees given by the Company for loans taken byothers from banks and financial institutions arc not prima facre prejudicial to theinterests of the Company.
(xvi) In our opinion and according to the information and explanations given to us, the termloans have been applied for the purposes for which they were obtained other thantemporary deployment pending application.
(xvii) In our opinion and according to the information and explanations given to us and onan overall examination ofthe Balance Sheet, we report that funds raised on short-termbasis have not been used during the year for long- term investment.
(xviii) During the year, the Company has not made any preferential allotment of shares toparties and companies covered in the register maintained under section 301 of theCompanies Act, 1956.
(xix) According to the information and explanations given to us, during the period coveredby our audit report, the Company had issued unsecured debentures which did notrequire creation of any charge or security. The Company has created security inrespect ol secured debentures issued in the previous year and outstanding at the yearend.
(xx) The Company has not raised any monies by way ofpublic issue during the year.
(xxi) To the best ofour knowledge and according to the information and explanations givento us, no fraud by the Company and no material fraud on the Company has beennoticed or reported during the year.
Ahmedabad, 1j\uy, zor:
For DELOITTE HASKINS & SELLSChartered Accountants
(Registration No. I 17365W)
4/'*F{-\ .. Pa'tnet
(Membership No. 35701)
D€ioitte Harkins & SetttChartered A((ountanr5'Heriiage. 3rd tloor.Nedr Gujaral Vrdhyapilh.
Ahmedabad 380 ol4.T€l:+91 (079) 27582542
+91 (079) 27582543+91 {079) 66073100
fax: +91 (079) 27582551
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MAS FINANCIAL SERVICES LIMITED
BALANCE SHEET AS AT 3,IST MARCH 2013
EQUITY AND LIABILITIES
Shareholders' fundsShare CapitalReserves and Surplus
Compulsorily Convertible Debenlures (unsecured)(Refer Note No.3.5)
Non-current liabilitiesDeferred SubsidyLong{erm borrowingsOther Long-term LiabilitiesLonglerm provisions
Current liabilitiesShort-term borrowingsTrade payablesOther current liabilitiesShort{erm provisions
ASSETS
Non-current assetsFixed assets
Tangible assetslntangible assets
Non-current investmentsDeferred tax assets (net)Lonq-term loans and advancesOther non-current assets
Current assetsCash and Bank BalancesShort-term loans and advancesOther current assets
TOTAL
Significant Accounting Policies
See accompanying notes forming part of the financial
534,712,150 934,7'10,900
499,800,000
222,362491,663,689522,121,929
361,680780,860,799221 ,97 2,920
'10.367. 1 1 1
3,530,323,44920,931.229
1,556,425,412
2,271 ,360.71615,488,894
1,236.577 .844
59,665,961 60,240,819
'108,33.1,128
4,355,6941,980,305,197
108,331 ,1281,314,395
845,361,835
1,750,902,1993,623,857,381
ln terms of our report attached
For Deloitte Haskins & Sells
Partder (Chairman & Managing Drector)
M#*cGandhi\l
(Whole Trme Director)
Place:AhmedabadDate : 4 5+h
^l d
Prac{Kanoata
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MAS FINANCIAL SERVICES LIMITED
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2OI3
NotesYear ended 31st
March 2013Rupees
Year ended 31stMarch 2012
RuDees
INCOME
Revenue from OperationsOther lncomeTotal Revenue
EXPENDITURE
Employee Benefits ExpenseFinance CostsDepreciation and Amortisation ExpensesProvisions and Loan LossesOther ExpensesTotal Expenses
Profit Before Tax
Tax Expense:Current TaxDeferred TaxShort provision for taxation in respect of earlier years
Profit for the year
Earnings per equity share (of face value Rs. 10 each):BasicDiluted
Significant Accounting Policies
See accompanying notes forming part of the financial statements
'19
20
21')t
2425
26
2
1,365,036,5189.107.823
1 ,083,104,659I,647 ,'t67
1,37 4,144,341 1.092-75'1.426
123,208,783546,566,058
6,245,32983,928,004
231.144.622
93,638,358431 ,819,349
5,325,64261,691,192
226.265.554991.132.796 818.740.095
383,011,545
127,000,000(3,041,299)
274,O1',!,731
84,000,000358,877
6.384.325
259.052.844 183.268,529
21.1621.16
11.O71't .07
ln terms of our report attach6d
For Deloitle Haskins & Sells
(Company Secretary)
Place: Ahmedabadoate:'15* IAav Q!!4
(Chairman & Managing Director)
Ud#".^ccandhiLf
(whole rime Director)
Piace i AhmedabadDate :ts+.|o^{ 2.ef l
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MAS F:!{ANCIAL SERVICES LTD.
CASII FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2013
Year ended31st March 2013
Year ended3lst March 2012
Rupees RupeesCASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before TaxAdjustments for :
Depreciation & AmortisationFinance CostsLoss on Sale of Fixed AssetsProvision for Non Performing AssetsContingent Provision against Standard AssetsLoss Assets Written OffLoss on Sale of Repossessed AssetsSundry Balances Written Off(Back)Depreciation Recouped from Deferred SubsidyProvision/(Reversal of Provision) for Employee Benefitslnterest lncome from lnvestments and DepositsDividend lncome
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES
Changes in Working Capitai:(lncrease) / Decrease in Loans & Advances(lncrease)/ Decrease in Deposits given as Collateral(lncrease) / Decrease in Other Assetslncrease / (Decrease) in Trade Payableslncrease / (Decrease) in Secuity Deposits from Borrowerslncrease / (Decrease) in Other Current Liabilities
CASH GENERATED FROIVI OPERATIONS
Fi'rance Costslncome Tax Paid
NET CASH USED IN OPERATING ACTIVITIES IAI
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure on fixed assets, including capital advancesSale of Fixed AssetsPurchase of lnvestmenlBank balances not considered as Cash and Cash Equivalents
- Fixed Deposits Maturedlnterest lncome from lnvestments and DepositsDividend lncomeNEl CASH FROM TNVESTTNG ACTtVtTtES [B]
CASH FLOW FROM FINANCING ACTIVITIES
Divjdends paid including Corporate Dividend TaxProceeds from lssue of Shareslncrease in Working Capital Loans fiom Bankslncrease/(Decrease) in Long Term BorrowngsRedemption of Preference SharesRedemption of DebenluresProceeds from lssue of DebenturesProceeds from lssue of Compulsorily Convertible DebenturesNET CASH FROM FtNANCTNG ACTtVtTtES [Cl
NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C)
Cash and Cash Equivalents at the beginning of the year
Cash and Cash Equivalents at the end oflhe year
6,245,329546,566,058
54,5856,599,9603,435,437
68,199,7145,692,893
(1,702,369)(139,318)331,510
(8,358,316)( 10.18S)
383,01 1,545
626 915 294
5,325,642431,819,349
55,7392,517,0471,521,987
44,777,84212,87 4,3162,712,129(170,691)
(3,156,148)(9,1 13,321)
t7 5381
27 4,011,731
489.156 354
(t,47O,042,494)65,831,836
(297,61715,442,335
494,913,885(55.054.058)
1,009,926,839
/959 206 113)
(660,174,594)(30,998,859)(3,454,243)8,420,232
3'19,636,39178.870.485
763,168,085
1287.700.588)
(543,953,787)(122.305.343)
50,720,726
1666.259 1301
(42s,268,1 52\(90.649.39'1)
475,467,497
(515.917.543)
(6,484,193)17,000
33,141,8192,779,210
10 18S
(615,538,404)
29,464,O25
1 065 027 257
(5,162,936)66,550
(17,500,000)
22,685,0943,660,737
7 538
(40,450,046)
3,756,983
494.296 4s4
(110,832,84s)150,000
1,258,962,733(1 11,672,631)(621,320,000)
64e 740 ;oo
(87,476,694)
1 ,244 ,312,668(752,s39,520)
(270,000,000)360,000,000
478,952,878
1,143,494,932
457,603,391
685,891,541
1 ,622,447 ,810 1,143,494,932
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MAS FINANCIAL SERVICES LTD.
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 20,I3
Notes:1 Cash and cash equivalents at the end of the year comprises:
(a) Cash on Hand(b) Balances with banks
ln Cunenv Cash Credit Accounts
2 The above cash flow statement has been prepared under the "lndirect Method" as set out in lhe Accounting Standard - 3 on Cash FlowStatement issued by the lnstitute of Chartered Accountants of lndia.
3 Previous yeads figures have been regrouped and reclassified wherever necessary.
Year ended3'lst March 2013
Rupees
Year ended31st March 2012
Rupees
2,611 ,249
1.619 836 561
ln terms of our report attached
For Deloitte Haskins & SellsChadered Accountants
Kamlesh C. Gandhi(Chairman & Managing Director)
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Note-l CORPORATE INFORMATION
MAS Financial Services Limited is a public company domiciled in lndia and incorporated under the provisions ofCompanies Act, 1956. lt is registered as a Non-Banking Finance Company with Reserve Bank o{ lndia. TheCompany is engaged in retail asset tinance by way of providing Micro Enterprise Loans, SME Loans, TwoWheeler Loans, Commercial Vehicle Loans, Agri-based Loans etc.
NOtE-2 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACGOUNTS:
1. SIGNIFICANT ACCOUNTING POLICIES :
D.
BASIS OF ACCOUNTING :
The financial statements are prepared under the historical cost convention on accrual basis ofaccounting, in accordance with the requirements of the Companies Act, 1956, including the accountingstandards notified by the Central Government of lndia under Section 211(3C) of the Company A.ct,1956. Further, the Company follows the prudential norms for income recognition and provisioning forNon-performing Assets as prescribed by the Reserve Bank of lndja for Non-Banking FinancialCompanies. The Company assesses all receivables for their recovery and accordingly provisions fornon-performing assets are enhanced as considered necessary.
USE OF ESTIMATES :
The preparation of financial slatemenls, in conformity with the generally accepted accountingprinciples requires that the management makes estimates and assumplions that affect the reportedamounts of assets and liabilities, disclosure of contingent liabilities as at the date of financialstatements and the reported amounts of revenue and expenses during the reporting period. Actualresults could differ from those estimates. Differences between the actual results and the estimates arerecognised prospectively in currenl and future periods in which the results are known/ materialised.
FIXED ASSETS
Fixed assets are stated at cost of acquisition inclusive of incidental expenses less accumulateddepreciation/amortisation.
DEPRECIATION/ AMORTISATION
Depreciation on tangible fixed assets is provided as per Straight Line Method, at the rates and in themanner specified in Schedule XIV of the Companies Act, 1956
Assets costing less than Rs.5000 are fully depreciated in the year of acquisition.
lntangible assets (Computer Softwaro) are amorlised equally over a period of five years from the dateof acquisition.
IMPAIRMENT OF ASSETS
At the Balance sheet date, an assessmenl is done to determine whether there is any indication of amaterial impairment in the carrying amount of the Company's fixed assets. It any such indication exists,the asset's recoverable amount is estimated. An impairmenl loss is recognized whenever the carryingamount of an asset exceeds its recoverable amount.
INVESTMENTS
Long-term investments are stated at cost. A provision for diminution is made to recognize a decline,other than temporary, in the value of long term investments.Current investments are stated at the lower of cost and fair value determined on an individualinvestment basis.
G, GOVERNMENT GRANTS
Subsidies related to depreciable fixed assets are treated as deferred income which is allocated toincome over the periods and in the proportions in which depreciation on those assets is charged. Thedeferred income balance is separately disclosed in the financial statements as "Deferred Subsidy".
E.
F.
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H. REVENUE RECOGNITION:
GeneralThe Company follows accrual basis of accounting for its income and expenditure except income onassets classified as non-performing assets, which in accordance with the guidelines issued by theReserve Bank of lndia for Non-Banking Finance Companies, is recognized on receipt basis.
Other income is mainly accounted on accrual basis, except in case of signilicant uncertainties.
lncome from Loans;lnterest income on loan transaclions is accounled for over the period of the contract by applying theinterest rate implicit in such contracts.
Service charges and documentation charges are booked at the commencement of the contract.
lncome from Assignment
(i) At Premium Structure:ln case of assignment of receivables 'at premium", the assets are de-recognised since all the rights,title, future receivables and inlerest lhereof are assigned to the purchaser. The interesl spread arisingon assignment is recognized upfront.
(ii) At Par Structure:ln case of assignment of receivables 'at pa/', the assels are de-recognised since all the rights, title andfuture receivables principal are assigned to the purchaser. The interest spread arising on assignment isaccounted over the residual tenor of the underlying assets.
lncome from lnvestmentsDividend from inveslments is accounted for as income when the right lo receive dividend isestablished.
lnterest income is accounted for on accrual basis.
I. ADVANCES UNDER LOAN CUM HYPOTHECATION AGREEMENTS:
The value of advances under loan cum hypothecation agreemenls is arrived at by reducinginstallments received/due from the value ofthe assets.
J. REPOSSESSED ASSETS :
The value of repossessed assets is arrived at by deducting the estimated loss on realisation. Theestimalion of loss on realization is done based on past track record of loss on sale of such assets.
K. EMPLOYEE BENEFITS
(i) Defined contribution plans
The Company's contributions under deflned contribution schemes such as Provident Fund andEmployee's State lnsurance are charged to Prolit & Loss Account as incurred.
(ii) Defined benefit plans
The Company's liability towards gratuity is determined using the projected unit credit method whichconsiders each period of service as giving rise to an additional unit of benefit entitlement and measureseach unit separalely to build up the final obligation. Actuarial gains and losses are recognisedimmediately in lhe statement of prolit and loss as income or expense. Obligation is measured at lhepresent value of estimated fulure cash flow using a discount rate thal is determined by reference tomarket yields at the Balance Sheet date on government bonds where the currency and terms of thegovernment bonds are consistent with the currency and estimated terms of the defined benefitobligations. The liability is provided for on the basis of valuation done by an independent actuary.
(iii) Liability on account of accumulated leave balances of employees is considered as short termcompensated expenses and is provided for on actual basis.
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N.
RECOURSE OBLIGATIONS UNOER ASSIGNMENT TRANSACTIONS
The company assigns Loans under assignment transactions. The assigned loans are derecognizedand gains/losses are recorded on assignmenl of loan contracts. Recourse obligations with respect loloans assigned are provided in books as per past track record of delinquency/servicing of the loans ofthe company.
TAXATION
lncome tax expense for the year comprises of current lax and deferred tax charge or credit.
Provision for current tax is determined in accordance with the provisions of the lncome Tax Act, 1961prevailing for the relevant assessment years.
Deferred tax resulting from "timing differences" between book and laxable profit is accounted for usingthe lax rates and laws that have been substantively enacted as on the balance sheet date. Deferredtax assets are recognized and c€rri€d forward only to the extent that there is a reasonable certaintythat the asset can be realised in future.
PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENTASSETS
A provision is recognised when the Company has a present obligation as a result of past evenls' forwhich it is probable that an oumow of resources embodying economic benefits will be required to settlethe obligation and a reliable estimate can be made. Provisions are reviewed regularly and are adjustedwhere necessary lo reflect the current best estimate ofthe obligation.
A disclosure for conlingent liabilities is made where there is a possible obligation or a present
obligation that probably will not require an outflow of resources. when there is a possible or a present
obligation for which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are neither recognized nor disclosed in the financial statements
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 20,I3
As at 3lstMarch 2013
RuDees
As at 3'l stMarch 2012
Ruoees
Note 3. Share Capital
Authorized15,500,000 Equity Shares of Rs. 10 each.
650,000 Cumulative Redeemable Non Convertible Preference Shares of Rs. 100 each40,000,000 8% Cumulative Redeemable Preference Shares of Rs.10 each44,000,000 7% Compulsorily Convertible Cumulative Preference Shares of Rs.1O each
lssued, Subscribed and Fully Paid-Up:10,000,125 (As at 31-03-2012 : 10,000,000) Equity Shares of Rs.10 each fully paid-up.40,000,000 8% Cumulative Redeemable Preference Shares of Rs.10 each fully paid up43,471 ,090 7% Compulsorily Convertible Cumulalive Preference Shares of Rs.10 each fully
paid-up
155,000,00065,000,000
400,000,000440,000,000
155,000,00065,000,000
400,000,000440,000,000
1.06G000.000 1,060,000.000
100,001,250
434,710,900
100,000,000400,000,000434,7't0,900
534.712.150 934,710,900
3.1 Reconciliation of the number of shares and amount ouistanding at the beginning and at the end of the reporting period:
Particulars As at 31st March 2013 As at 31st March 2012No- of Shares Amount No of Shares Amount
Equity SharesOutstanding at the beginning of the perjodAdd :8onus shares issued during the periodAdd rlssued during the periodOutstanding at the end of the period
Cumulative Redeemable Preference SharesOutstanding at the beginning of the periodAdd : lssued during the periodLess i Redeemed during the periodOutstandang at the end ofthe period
Compulsorily Convertible Cumulative PreferenceSharesOutstanding at the beginning of the periodAdd : lssued during the periodOutstanding at the end ofthe period
10,000,000
125
100,000,000
'1 250
9,500,000500,000
95,000,0005,000,000
10.000.125 100.001.250 10.000_000 100,000.000
40,000,000
40 000 000
400,000,000
400 000 000
40,000,000 400,000,000
40.000.000 400.000.000
43,471,090 434,710,900 43,471,O90 434,710,900
43.471,090 434.710.900 43.471.090 434.710.900
@
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3.2 Rights, preferences and restrictions attaching to each class ofshares and terms of preference shares convertible into gquityalong with the earliest date of conversion(a) Equity Shares
The Company has one class ofequity shares having a parvalue of Rs.10 pershare. Each shareholder is ellgible for one vote pershareheld. The dividend proposed by the Board of Directors is subjecl to the appr.oval of the shareholders jn the ensuing Annual GeneralMeeting, except in case of interim dividend. ln the event of liquidation, the equity shareholders are eligible to receive the remaining assetsofthe Company after distribution of all preferential amounts, in proportion to their shareholding.
The Board of Directors, in their meeting held on 1sth May, 2013, proposed a dividend of Rs. 3.50 per equity share (payable pro-rata on125 equity shares issued during the year). The totalequity dividend approprialion tor the year ended March 31, 2013 amounts toRs 40,678,221 ancluding corporate dividend tax of Rs. 5,677,924.
During the year ended March 31, 2012, the amount of per share dividend recognized as distribution to equity sha.eholders was Rs.2.25.
The total dividend appropriation for the year ended March 3'l, 2012 amounted to Rs. 26,150,063 including corporate djvidend tax of Rs.
36,50,063.(b) Cumulative Redeemable Preference Shares
The Company had entered into an lnvestmenl and Shareholders Agreement with lndia Advantage Fund - Vll (Mezzanine Fund l) ("the
lnvesto/') pursuant to which the lnvestor has subscribed to and has been allotted 40,000,000 8% Cumulative Redeemable Preference
Shares (CRPS) ofthe face value of Rs. 1O each for cash at par. The shares were redeemed during the current period at face value plus a
redemption premilm of Rs. 221,320,000. The total dividend apprpriation on CRPS for the year ended March 31, 20'13 amounts io Rs.
12,125,351 inctuding corporate d ividend tax of Rs 1 ,692,474. The total dividend appropriation on CRPS for the year ended March 31 , 2012
amounted to Rs. 37,191,200 including corporate dividend tax of Rs 5'191'200.
(c) Compulsorily Convertible Cumulative Preference SharesThe Compa;y has entered into Share Subscription and Shareholders Agreement ("the Agreement') with Nederlandse Financierings-
MaatschappiiVoor Ontwikkelingslanden N. V.(FMO) {"the lnvesto/') pursuant to which, the investor has subscribed to and has been
a otted 43,471 ,090 Cumulatave Compulsorily Convertible Preference Shares (CCCPS) ot the face value of Rs 10 each at par.
The CCCPS carry a right to be paid a fixed cumulative preferential dividend at the rate of 7% per annum free of income tax till the
Financial year ending on 31st March, 2014. After this date, under the circumstances specified in the Agreement, the rate of dividend is to
be increased as provided for in the Agreement. The total dividend appropriation on CCCPS for the year ended March 31, 2013 amounts to
Rs. 35,366,231 including corporate dividend tax of Rs. 4,936,468. The total dividend appropriation on CRPS lor the year ended March 31 ,
' 2012 amounted to Rs. 35,366,233 including co.porate dividend tax of Rs 4,936,470
The holder of the preference share capital shall, in respect ol such capital, have a right to vote only on resolutions placed before the
company which directly affect the rights attached to his preference shares
As per the Agreement as amended by the First Amendment dated 19-10-2011 to the Agreement, the CCCPS are compulsorily convertible
into equity sh;res at any time within 20 years from date ol allotment at a conversion price to be determined based on the time of
conversion and IRR to be provided to the lnvestor on its investment as per the lerms ofthe Agreement.
As per the Agreement, FMOS Shares shall become immediately due upon liquidation, dissolution, winding up or insolvency of the
companyandtherankingofSettlementofsuchpayablesshallbei@
3.3 Details of shares held by each shareholder holding more than 5% shares:
Class of shares / Name of shareholder% holdlng ln thatclass of shares
% holdlng inthat class of
1,560,7124,084,6321 ,764,2892,262,631
40,000,000
43.471.090
100.00%
100.00%
1,560,7124,084,632
2,262.6311,765,000
43,471,090
Equity SharesKamlesh C. GandhiSweta Kamlesh GandhiMona Mukesh GandhiMukesh C. Gandhi (HUF)
Mukesh C. GandhiCumulative Redeemable Preference ShareslDBl Trusteeship Services Limited as Trustee ol lndiaAdvantage Fund-Vll (Mezzanine Fund-l)compulsorily convertible cumulative PreferenceNederlandse Financigrings-Maatschappij VoorOntwikkelingslanden N.V
required to pay any amount for such conversion.
3.4 Details of bonus shares issued during the five years immediately preceding the Balance Sheet date:
(a) 3,OOO,O0O Equity Shares ot Rs. '10 each fully paid-up were allotted as bonus shares by capitalisation of profits during 2007-08(b) 5O0,0OO Equity Shares of Rs. 1O each fully paid-up were allotted as bonus shares by capitalisation of Capital Redemption Reserve
during 2011-12
3.S During the year, the Company has issued Compulsorily Convertibte Debenturss (CCOS") of nominal value aggregating toRs.49.98 crores.
(a) The CCDS ca.ry interest at the rate of 13% p.a. for 72 months from the date of investment and thereafter ifthe CCO'S remain
unconverted, the rate of interest will be 19.50% p.a. or maximum permissible interest payable under applicable law which ever is less.
(b) The CCDs shall be fully and mandatorily converted into equity shares on a date which shatl be either 31st March, 2020 or such other
date as may be solely decied by the investor, provided that such date shall not extend beyond '19 years from 27lh July 2012.
(c) Each CCD will convert into such number of equity shares so as to give the investor the required return, without the investor being
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL gTATEMENTS FOR THE YEAR ENDEO 3IST MARCH 20IT
As at 31stMarch 2013
Rupees
As at 3 tstMarch 2012
RuDees
Note 4. Reserves and Surplus
Capital Redemption ReserveOpening BalanceLess : Utilised for issue of bonus shares
Closing Balance
Reserve u/s. 45-lC of RBI Act, 1934 :
Opening BalanceAdditions during the year
Closing Balance
General ReserveOpening BalanceAdditions during the year
Closing Balance
Security PremiumOpening BalanceAdditions during the yearLess :Premium on Redemption of Cumulative Redeemable Preference Shares
Closing Balance
Surplus in Statement of Profit and LossOpening BalanceAdd: Profit for the yearLess : Appropriations
Premium on Redemption of Cumulative Redeemable Prefe.ence SharesReserve u/s. 45-lC of RBI 4ct.1934lnterim Dividend on Preference SharesProposed lnterim Dividend on Preference SharesProposed Dividend on Equity SharesDividend distribution tax on preference dividendDividend distribution tax on equity dividendTransfer to General ReserveTotal Appropriations
Net Surplus in Statement of Profit and Loss
Total Reserves and Surplus
60,000,000 65,000,0005.000.000
60,000,000
151,353,55051.810.569
60,000,000
114,699,84436 653 706
203,164,119
30,404,60025.905.284
151,353,550
12.077,74718.326.853
56,309,884
150.088,750120 144 750
30,404,600
29,940,000
64,264,324259,052,844
101,171,25051,810,56910,432,87730,429,76335,000,2976,628,9445,677,924
25.905.284
34,683.852'183,268,529
36,653.706
62,42s,;6322,500,00010,127,6583,650,063
18.326 853267,056,908 153,688,053
56.260.264 64,264324
405,67 4,267 306,022,478
@
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 3'IST MARCH 20,I3
Note 5. Deferred Subsidy
Balanc€ as per last Balance SheetLess rRecouped during the year(Refer Note No.2 (G))
As at 31st I As at 3istMarch 20t3 I March 2012
361,680139,318
532,371170,691
680
Non Current Cur rentAs at 3'lst
March 2Ol3As at 3'tst
Match 2012As at 3'lst
March 2013As at 31st
March 20'12
Note 6. Long Term Borrowings(a) DebenturesSecured230, Seraes I - 13.50 7o (Previous Year 13%) SecuredRedeemabie Non-Convertible Debentures of Rs. 10 lakhs each(privately plac€d)r30, Series ll - 13.20 % Secured Redeemable Non-ConverubleDebentures of Rs.10 lakhs each (privately placed)
(b) Term LoansSecuredFrom BanksFrom Others
416,663,68975,000,000
230,000,000
130,000,000
420,860,799
230,000,000
'130.000,000
460,413,33650,000,000
682,208,85710,680,000
491,663,689 780.860.799 870 413 336 692,888.857
Note 7. Other Long Term Liabllities
Security deposits receivedlnterest accrued but not due
510,116,43912,005,490
220,573,6431,399,277
522,121,929 221.972.920
Note 8. Long-term Provisions
Contingent Provision against Standard Assets 13,802,548 10,367,111
13,802,548 10.367.'111
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1 Details ofterms of redemption/repayment and securiv provtded in resrlect of tong-term bonowings:
, Series l, 13 50 o/o (Previous Yea.13%) Secured Redeemable Non
Debenlures of Rs 10 lakhseach (privately placed)
130. Series ll- 13.20 % SeuredRedeemable Non-Convertible Debentures
Rs.10 lakhs each (privately ptaced)
Deb€ntures are redeernable at par29-07-2013. Se es - I Debentures
a put option/call optionexcercisable al the end ol 12 months
the deemed date ofallotment Asper the lerms of issue, the coupon tate
respect of Series - I Debentures wjllreset atthe end of 12 months fromdeemed date of allotment
land Series ll Non-Convedible
and exclusive charge onstandard rcceivables of the Company(identafied loan assets) sufficient toprovide one times securitycover ot
outslanding amounl of lheDebentures on a conlinuous basis,
the tenure of the Debentures.
otal Term Loans from Banks
100,000,000
124,997,O25
74,999,998
116,666,666
50,000,000
50,000,000
62,500,000
166,666,668
50,000.000
66,666,666
13,636,352
Repayable in 36 monthly inslattmenls25t04t2013ol interesl: Ease Rate + Spread
of lnstallments due: 36
Repayable in 12 Quartedy instatlments't0t1t12010.
of lnstallments du€ 2
Repayable in 12 Ouarterty inslaltments
Rate of i.lerest Fixedl{atunty Period: 1-2 yea.sNo. of lnslallmenls due 3
Repayable in 36 monthty instaltments
Rate of interest: |-8ASE + Spread
of lnstallmentF due: 21
in 36 monthty anslallments28t1012012of interest Base Rate + Spread
of lnsl,allmenls due: 30
Repayable rn 36 monthly instattmentslrcm 31/01/2013Rate ofinterest Base Rate + Spread
No. of lnsr,allmenls due 33
Repayable in 12 Quarterly installmentsfrom30/09/201 0Rale of inleresl: Base Rate + SpreadMalurjty Periodi < 1 yearsNo. of lnstiallments due: 1
Repayable in 36 monthty jnstathenls.
of lnstallmenls due: 6
by hypolhecalion ol entireor bool debls under loan
hypolhication aq.€ement, bothand fulure incrudrng book
bills whether documentary orclean/out standing moniesreceivables, both present and futurc,both present and future book debt of
by a lirsl charge on presenlf uture movables, receivables.debts, outslanding monies anddues a(sinq out of the term
by a lirsl €harge on presenlfuture movables, receivables,
book debls, oulsiandinq monies anddues arising out of lhe term
by hypothecation of allarising out ol ihe loan
crcaled by ulilising lhaof the faciliiy.
by hypolher€iion of entireor book debts under loan
hypoth jcation agreement, botnand future including book
bills whelher documentary or
bolh presenl and luturcbolh present and future book debt ot
by hypolhecatron of enlrreor book debls under loan
hypothic€tion agreemefi t, bothand fulure including book
bills whelher documenta.y or
both presenl €nd fulure,present and futu€ book debt of
by a charge on alllheand fulur€ book debts. Out
standings Money receivables, Ctarms8ills. which are nowdue and
or which may any tirnelhe continuance of this secuity
due and owing to thein the course of its business
by hypolhecation of lhe
by hypolhecalion of bookcrcated out ofthe loan availed
and also lien on specitic benk lixed
arm Loans trom Othors
Term Loans fiom a Financiallnstilulion - I
erm Loans from Others
in 12 quarlerly installmenls
Rate of interest BPLRMatu ty Pericd: 1-2 yearNo. of lnstallmenls due: 10
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2013
As at 3l stMarch 2013
Rupees
As at 31stMarch 2012
RuDees
Note 9. Short-term borrowingsSecuredLoans repayable on demand:From Banks
Cash Credit and OverdraftsShorl Term Loansl
From BanksFrom Others
Commercial Paper (Refer Note 9.1 below)
9.1 The Company has issued Commerctat Papers during the year. The maxtmum amount of CommercialPapers outstanding at any time during the year was Rs. 52,00,00,000 (previous year - Rs.35,00,00,000). As at 31st March,2013 and 31st March, 2012 there were no Commerciat paperoutstanding.
9.2 Cash Credits/Overdrafts from Banks are secured by hypothecation of movable assets of theCompany and goods covered under HP Agreements/ Loan cum Hypothecation Agreements and relativebookdebts, receivables, loans and advances and entire portfolio outstanding (excepi specific portfoliogenerated from various term loans sanctioned by various banks/Fls on an exclusive basis) and equitablemortgage by deposit oftitie deeds on some of the Company's immovable properties, as collateralsecurity. The loans are also guaranteed by two directors of the Company.9.3 Short Term Loans are secured by hypothecation of book dgbts crealed out ofthe loan availed, lienon specjfic bank fixed deposits and collateral in the form of inter-corporate deposit.
Note 10. Other Current Liabilities
Current Maturities of long-term debtlntcrest accrued but not due on borrowingsOther lnterest accrued but not dueCther Payables:
Statutory remittances (Contributions to PF and ESIC, Service Tax, etc.)Dues to the assignees towards collections from assigned receivablesSec!rity deposits receivedAdvance payments leceived
Note 11. Shori-term Provlsions
Provision fo. Emplovee BenefitsCompensated Absences
Other ProvisionsProvision for Tax (net of Advance Tax)Provision for Non Performing AssetsProvision for proposed equity dividendProvision for proposed interim preference dividendProvision tor dividend distribution tax on proposed equity dividendProvision for dividend distribution tax on proposed interim prcference dividend
772,823.449
2,720,000,00037,500,000
1,921,360.716
350,000,000
3.530.323.449 2 271 36rJ 716
870,413,33629,62A,O2528,653,054
15,030,39496,246,617
515,830,505623 AA1
692,888,85727,015,75413,432,862
13,168,992153,289,677336,285,821
495 8811,556,425,412 1.236.577 .844
2,033,022
3,362,99815,479,76735,000,29730,429,763
5,677 ,9244.936.470
'1 ,701 ,513
8,879,80722,500,00062,429,763
3,650,06310 127 66A
96,920,241 109,288,814
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3IST MARCH 20I3
Face ValuePer Share/
BondRuDees
As at 3lst March 2013 As at 3lst March 2012
No. ofShares/Bonds Rupees
No. ofShares/Bonds RuDees
Note 13. Non-Current lnvestrnents (at cost)(A) TRADE;
UNQUOTEDln Subsidiary CompanyFully paid up Equity Shares ofMas Rural Housing & Mortgage Finance Ltd.
(B} NON.TRADE:QUOTED
ln Equity Shares (Fully Paid Up):Apple Finance Ltd.Athena Finance Ltd.Cholamandalam Finance Ltd.Dena BankFirst Leasing Finance Ltd.Gujarat Lease Financing Ltd.HDFC Bank Ltd.lclcl Bank Ltdlnduslnd Bank LtdKotak Mahindra Bank Ltd.Reliance Capital Ltd.HDFC Ltd.
Less : Provision for diminution
ln Government Securities:'1'1.5% GOt BOND 2015
UNQUOTEDln Equity Shares (Fully Paid Up):Cosmos Co-operative Bank Ltd.
Total Non-Current lnvestment
1 Aggregate amount of Quoted lnvestments:CostMarket Value(ln respect of Government Securities facevalue considered as market value is notavailable)
2 Aggregate amount of Unquoted lnvestments
10
10101010'10
1010'10
'10
5102
795,000
10,750,000
1001
I3,209
1
33
102250
,l
5
277
107,500,000
2,1507
5288,443
4,8752,9044.5604,5901,950
77
10,750,000
1001
1
3,2091
3
102250
1
5
277
107,500,000
2,1507
5288,443
4,8752,9044,5604,5901,950
77
'109,631
46,641109,63146,641
62,990 62,990
761 ,213
6,925
761,2't3
6,925
108.331.128 '108,331.128
870,844I ,296,200
107,506,925
870,844't,227,123
107,506,925
As at 3lstMarch20.t3
Ruoe6s
As at 3lstMarch2012
Rupees
Note 14, Deferred Tax Asset
1
234
Tax effect of items constituting Deferred Tax LiabilityDifferenc€ between book depreciation and depreciation underlncome{ax Act, 1961
Tax effect of items constituting Deferred Tax Assets
Provision for non-performing assetsContindent Provision for Standard AssetsProvision for Compensated AbsencesExpenses eligible for deduction under section 35D of the lncome-tax Act, 1961Total Deferred Tax Assets
Net Deferred Tax Asset
(6,451,542)
5,261,5734,691,486
691.024163,153
(s,793,796)
2,88'1,0533,363,609
552,0s6311,472
10.807.236 7.'108.190
4.355.694 1.314.395
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3IST MARCH 20,I3
Nole 15. Loans and advances(A) Loans to Customers(i) Secured
LoansRetained lnterest on securitisation/assignmentlnstallments and other dues from borrowers
Less: Unaccrued lnterest Charges
(i i) UnsecuredLoansRetained lnterest on securitisation/assignmentlnstallments and other dues from borrowers
Less: Unaccrued lnterest Charges
Total Loans to Customers (A)
Of the above:Considered Goodconsidered Doubtful - Non Performing Assets
1,246,192,03340,735,514
474,831,139 2,333,133,467101,232,728
1,645,859,782
474,83t,139 1,793.01 9.187
895,312,4717,994,437
1,213,295,43135,442,41671,634,693
1,749,258,880
68.477.8541,320,372,540
261 071 72
3,514 ,122,955 3,246,741.886
Notes:15.1 Secured lnstallments and other dues fromborrowers include amounts outstanding for more thansix months'15.2 Unsecured lnstallments and other dues fromborrowers include amounts outstanding for more thansix months
15.3 Secured exposures are exposures securedwholly or partly by hypothecation of assets and/orcompany guarantees or personal guarantees and/orundertaking to create a security.15.4 Percentage of loans against qold to total assets
66,122.482
21,857,398
24,480,418
14,846,965
(B) Loans and Advances to Related Partylntercorporate deposit given to subsidarycompany
Total Loans and Advances to Retated Party (B)
4,486,312
'173,287
3,327,008
3,11't,878
1,817,900
387,343
'1,331,659
68,452,503
15,000,000
2,938,593
1,142,340
881,784
3,839,439
25,940.777
903,500
1,919,403
695,27 5
(C) Other Loans and Advances(i) Advances to Dealers
Unsecured - considered good
(ii) Security depositsUnsecured, considered good
(jii) Portfolio Collateral against assets assigned
(iv) Advances to employeesUnsecured, considered good
(v) Prepaid erpenses
(vi)Advan;s recoverable in cash or kindUnsecured, considered good
(vii) CapitalAdvancesUnsecured, considered good
(viii) Advance Tax and TDS
otal Other Loans and Advances (C)
Loans and Advances (A) + (B) + (C)
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2013
Note 16. Othe. Non-Current Assets
Non-current Bank Balanceslnlerest Acctued on Deposits
105,096,943J 67,376,6306.761,861 | s367,4f 2
Non Currenl Cur rentAs at 3lst
March 2013As at 31st
March 2012As at 3'lst
March 2013As at 31st
March 2012
Note 17. Cash and Bank Balances
Cash and Cash EquivalentsCash on Hand
Balances with Banks:ln Currenv Cash Credit Accounts(Refer Note 17.1 below)
Other Bank Balancesln Fixed Deposit Accountsr(Refer Note 17.2 below)
Deposits given as security against borrowingsand other commitments
Deposits given as collateral against assetsassigned
TotalLess:-Amount disclosed under non currenl assets
57,525,000
47,571,943
1,373,635
66,002,995
2,611,249
1,619,836,561
9,214,000
119,240,389
1,329,813
1.142.165.119
98,507.184
166,641,173
105,096.943 67.376.630 1,750,902,199 1 408 643 2AC
105,096,943 67,376,630
1 750 902 199 1.408.643.289Note:17.1 lncludes Rs. 545,068 in earmarked acco!nt i.e. "Collection and Payout Accqunt".
17.2 Other bank balances include deposits amounting to Rs. 196,787,408 (As at 31st ilarch,2012 Rs. 314,474,080) which have an original maturity of more than 12 months.
Note 18. Other Current Assets
lnteresl AccruedOn lnvestmentsOn Term LoansOn Deposits
Re-posessed Assets
Othe.slncome Receivable
32,56323,272,870
4 416 q64
32,5636,008,676
19.896.44128,122,397
4.136,792
126,214
25,937,680
9.27 0.206
388,076
32,385,403 35.595,962
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2O'I3
Year ended 3l stMarch 2013
Ruoees
Year ended 31stMarch 2012
RuDees
Note 19, Revenue from opemtions
(a) lncome from Financing Activityi) lnterest
ii) Other Operating RevenueService Charges, Slamp & Document Charges etc.
(b) lnterest on deposits placed as collateral towards assets derecognised
(c) lncome from Non Financing Activity
Note 20. Other lncome
lnterest lncome:On lnvestments - Non Current, Non Trade, Quoted (Govt. Securities)
on Bank DepositsOn Other Deposits
Dividend lncome:From Long Term lnvestmenls
Other Non Operating lncome:RentMiscellaneous lncome
Note 21, Employee Benefits Expense
Salaries, Bonus and Allowancescontributions to Provident & Other FundsStaff Welfare Expenses
Note 22. Finance Costs
lnterest:On Bank BorrowingsOn DebenluresOn Others
Discounl on Commercial Papers
Other Bor;owing Costs:
1 ,218,699,621
129,OO4,110
'16,619,540
713,247
943,162,643
120,776,979
'18,568,701
596,336
1 .365.036.518 1.083.104.659
91,4257 ,080,2481,186,643
10,189
600,000'139.3'18
91,4259,021,896
7,538
330,000'196.308
I 107.823 9,647 ,167
114,104,1145,824,6523,280,0'17
a7 ,440,4473,497,8632,700,048
123,208,783 93,638,358
308.077 ,57189,237,57477.233j00
308,818,63641,236,07123,034,405
474,548,245
20,330,280
51,687,533
373,089,1'12
19,769,700
38,960,537
546,566,058 431 ,819,349
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 20I3
Year ended 31stMarch 2013
RuDees
Year ended 31stMarch 2012
RuDees
Note 23, Depreciation and Amortisation
Depreciation on tangible assetsAmortisation of intangible assets
Note 24. Provisions and Loan Losses
Loss Assets Written OffLoss on Sale of Repossessed Assets (Net)Provision for Non Performing AssetsContingent Provision against Standard Assets
Note 25. Other Expenses
RentRates & TaxesStationery & PrintingTelephoneElectricityPostage & CourierlnsuranceConveyanceTravellingRepairs & Maintenance;
BuildingOthers
Professional Fees (Refer Note 25.1 below)Directo/s Sitting FeesLegal ExpensesBank ChargesCommissionAdvertisement ExpensesSales Promotion ExpensesLoss on Sale of Fixed AssetsDonationRecovery Contract ChargesMiscellaneous Expenses
Note 25.1Professional fee includes Payment to AuditorsAs Auditors:Statutory Audit FeesOther ServicesReimbursement of Expenses
5,927,046318,283
5,O74,431251 ,211
6,245,329 5,325,642
68,199,7145,692,8936,599,9603,435,437
44,777,84212,874,3162,5'17,O471,521,987
83,928,004 61.691.192
12,666,7972,613,2227,318,0496,756,0394,',t87,2974,471,5467,372,254
15,039,915't2,'114,887
663,4564,582,899
9,595,9623,744,4926,487,4587,487,6603,066,3153,592,5257 ,847 ,449
16,370,3089,663,560
272,9073.621.226
s,246,35510,486,077
420,0008,176,173
14,131,50162,501,031't4,837,9802,s20,865
54,5851 11,000
32,769,7267,389,323
3,894,'13312,692,883
285,0008,680,364
17,335,07660.089,35811,620,5283,754,186
55.7396s8,951
33,618,5445,725,063
231,184,622 226,265,554
1,018,678227 ,529
1,045
1,000,000204,055
7111,247,252 '1.204.766
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MAS FINANCIAL SERVICES LIMITED
NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2013
Year ended 31stMarch 2013
Rupees
Year ended 31stMarch 2012
RuDees
Note 26, Earnings Per Share
(A) BasicComputation of Profit (Numerator)Net Profit for the yearLess: Preference dividend including tax lhereon.Net Profit for the year attributable to Equity ShareholdersComputation of Weighted Average Number of Shares (Denominator)Weighted average number of Equity Shares of Rs. 10 each used for calculationbasic Earnings per ShareBasic Earnings per Share of face value of Rs. 10 each (in Rs.)
*Adjusted for Bonus Shares issued during 2O11-12
(B) Dilutedcomputation of Profit (Numerator)Net Profit attributable to Equity Shareholder's as aboveComputation of Weighted Averaqe Number of Shares (Denominator)Weiqhted average number of Equity Shares as above
Diluted Earnings per Share of face value of Rs. 10 each (in Rs.)
ol
259,O52,84447 4v .54'l
183,268,52972.557 .43'l
211,561,263Nos.10,000,084
2't 16
Rupees211,561,263
Nos.10,000,084
21.16
11 0,71't,098Nos.
'10,000,000
11 .07
Rupees1 10,7'11,098
Nos.10,000,000
11 .07
NoteSince the number of equity shares issuable on conversion of Compulsorily Convertible Cumulalive Preference Shares and
Compulsorily Convertible Debentures, is not determinable at present, the same have not been considered in computing the
weighted average number of equity shares for calculating Diluted Earnings Per Share
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27.
MAS FINANCIAL SERVICES LIMITED
Notes Forming Part of the Financial Statements:
During the period covered under these financial statements, the Company has redeemed 8?o
Cumulative Redeemable Preference Shares ("CRPS") of nominal value of Rs.40 crores. TheCRPS have been redeemed out of proceeds of a fresh issue of Compulsorily ConvertibleDebentures (CCDS) aggregating to Rs.49.98 crores made by the Company during the sameperiod. Based on an opinion from an eminent legal counsel, the ccDs have been considered to
be in the nature of "Equity" and in view thereof, (i) no amount has been transferred to "Capital
Redemption Reserve Account" as the fresh issue of ccDs has been considered as "fresh issueof shares" as envisaged under the provisions of section 80 of the Companies Act, 1956 and (ii)the CCDS have been disclosed below the head "Shareholders' Funds" in the Balance Sheet
The company sells loans through securitization and direci assignment transactions,
The information of securitization /direct assignment by the company as originator as required by
RBI circular No. RBI/2011-121540 DBOD. No. BP .BC-103121.04.17712011-12 is as under:
(a) ForSecuritization Transaction
28.
29.
Liabilities and Commitments ( to the extent notAs at 31"' March
2013Rupees
As at 31" March2012
RupeesGuarantees given on behalf of subsidiaryCompany :
a) To a bankAmount of guarantee Rs.1 00,000,000(Previous Year Rs. 1 00,000,000)Amount of loan outstanding
b) To National Housinq Bank (NHB)
77,678,625
20.000.000
91,964,305
Estimated amount of contracts remaining to beexecuted on capital account and not providedfor - Tanoible Assets 9,00,000
Sr.No.
ParticularsAs at 31"'
March 2013No./Rupees
As at 31"'March 2012No.rRuDees
1 No of SPVS sponsored by the company for securitizationtransactions 1 Nil
2 Total amount of securitised assets as per books of theSPVs sponsored bv the company 623.023.24? Nit
Total amount of exposures retained by the company tocomDlv with MRR as on the date of balance sheeta) Off-balance sheet exposures. First loss. Others
NitNit
NitNit
b) On-balance sheet exposures. First loss. Others
36,738,92524.920.930
NitNit
4 Amount of exposures to securitization transactions otherthan MRRa) Off-balance sheet exposuresi) Exposure to own securitizations. First loss. Othersii) Exposure to third party securitizations. First loss. Others
NiINit
NitNiI
NitNit
NitNil
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b) On-balance sheet exposuresi) Exposure to own securitizations. First loss. Othersii) Exposure to third party securitizations. First loss. Others
NitNit
NitNil
NitNit
NitNit
(b) For Assignment Transaction
Sr.No.
ParticularsAs at 31"
March 2013No./RuDees
As at 31"March 2012No.rRupees
No of SPVS sponsored by the company for assignmenttransactions N.A- N.A.
2 Total amount of assigned assets as per books of the thecompanv (excludinq accrued interest) 3.925.076.575 3.059.124.704Total amount of exposures retained by the company tocomDlv with MRR as on the date of balance sheeta) Off-balance sheet exposures. First loss. Others
NitNit
NitNit
b) On-balance sheet exposures. First loss. Others
Nil160.484,'164
NilNir
4 Amount of exposures to assignment transactions otherthan MRRa) Off-balance sheet exposuresi) Exposure to own assignments. First loss. Othersii) Exposure to third party assignments. First loss. Others
NitNil
NilNit
NitNit
NirNil
b) On-balance sheet exposuresi) Exposure to own assignments. First loss. Othersii) Exposure to third party assignments. First loss. Others
'130,073,407Nit
NirNir
232,644,168Nit
NirNil
30. Disclosures as required by Clause 28 of the Listing Agreement for Debt Securities are asunder:
As at 31stMarch 2013
Rupees
As at 31stMarch 2012
RuDeesLoans and advances in the nature of loans to subsidiariesby name and amountlnter-corporate deposit given to subsidiary MAS Rural Housing& Mortgage Finance Limited.(Maximum amount outstandinq durinq the year Rs.80,298,1 10)
2,000,000
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31. Disclosures for operating leases under Accounting Standard 19 - "Accounting for Leases"prescribed by Companies (Accounting Standards) Rules, 2006
(a) The Company has entered into leave & license agreements for taking office premises alongwith furniture & fixtures as applicable and godown premises on rental basis for a periodranging from 3 to 70 months. The specified disclosure in respect of these agreements is givenbelow:
Year Ended31{3-2013
Rupees
Year Ended3143-2012
Rupees(1) Lease payments recognised in the statement of Profit
and Loss 12,666.797 9.595.962(21 i The company has given refundable, interest free
security deposits under certain agreements.ii Certain agreements contain a provision for their
renewal
(b) The Company has let out a portion of its office premises on operating leases alongwithfurniture and fixtures and other amenities for a period of one year. Lease rental incomerecognized in the Profit and Loss Account for the year in respect of the same is Rs. 600,000(Previous year: Rs. 330,000)
32. Employee Benefits
Disclosures as required as per Accounting Standard AS-15 (revised) - "Employee Benefits'prescribed by Companies (Accounting Standards) Rules, 2006 in respect of Gratuity are asunder:
The Company has a defined benefit gratuity plan. Every employee who has completed five yearsor more of service gets a gratuity on departure at 15 days salary (last drawn salary) for eachcompleteci year of service. The scheme is funded with Life lnsurance Corporation of lndia in theform of a qualifying insurance policy.
As aU For theyear ended3l"t March
2013Rupees
As aU For theyear ended31" March
2012Rupees
A Net liability recognised in the Balance sheetas at 3'lsr March
Present value of funded obligation 4,795,374 5,77I,422
Fair value of plan assets 7,479,088 5,778,422
Present value of unfunded obligation (1 ,817,e00)
Net liability (2,683,714), (1 ,817,900)
B Expense recognised in the profit and lossaccount for the year
Current service cost 628,776 615,005
lnterest on obligation 326,100 401,548
Expected return on plan assets (580,106) (38e,724)
Net actuarial losses (gains) recognised in thevear
130,598 (1,812,087)
Total included in employee benefit expense 505,368 (1,185,259)
Actual return on Plan assets 577 ,597 382,666
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c Changes in the present value of definedbenefit obligation representing reconciliationof opening and closinq balances thereof:Opening defined benefit obligation 3,960,523 4,902,90'l
Service Cost 628,776 615,005lnterest Cost 326,100 401 ,548Actuarial losses /(gains) 128,089 (1,812,0871
Benefits paid (248,114) (146,8441
Closing defined benefit obligation 4,795,374 3,960,523
D Changes in the fair value of plan assetsrepresenting reconciliation of opening andclosinq balances thereof:Opening fair value of plan assets 5,778,422 3,271,839
Adjustment (18,817)
Expected return s80,106 389,724
Actuarial gains / (losses) (2,s0e)
Contributions by Employer 1,390,000 2,263,703
Benefits paid (248,114\ (146,844)
Closing balance of fair value of plan assets 7 ,479,O88 5,778,422
E Major categories of plan assets as aDercentaqe of total olan assets:Qualifying insurance policy with LIC 1000k 100o/o
F Principal actuarial assumptions at the balancesheet date (expressed as weiqhted averages):Discount rate 8.30%
Expected return on plan assets 9.15% L00Yo
Annual increase in salary costs* 5.00% 5.00Vo
Notes:* The estimates of future salary increase, considered in actuarial valuation, take accountof inflation, seniority, promotion and other relevant factors, such as supply and demand inemplovment market.
2 Defined Contribution Plans Year ended31't March,
20't3Rupees
Year ended31"r March,
2012Rupees
Amount recognized as an expense and includedin Note 21 of Statement of Profit & Loss. 3.427.798 2.980,998EmDlovee Benefit disclosure :
As at31-03-2013
Rupees
As at31-O3-20',t2
Rupees
As at31-03-2011
RuDees
As at31-03-2010
RuDees
As at3't-03-2009
RupeesPresent value ofthe defined benefitobliqation
4,795,374 3,960,522 4,902,901 3,854,342 2,847,O55
Fair value of theDlan assets
7 ,479,088 5,778,422 3,271 ,839 1,878,563 't ,457 ,952
KdN,)DeficiU(Surplus)in the olan
(2,683,714) (1 ,817,900) 1,631 ,062 1,975,779 1,389,103
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Experienceadjustments onplan liabilities
24,112 (1 ,674,771)
Experienceadjustments onplan assets
2509
4 Overall expected rate of return on assets taken is the rate declared by LlC.
33. Segment ReportingThe company is engaged primarily in the business of Financing and accordingly there are noseparate reportable segments as per Accounting Standard .17
-.Segment Reporting,, prescribedby Companies (Accounting Standards) Rules, 2006
34. Related Party Disclosures
Related party disclosures as required by Accounting standard 18, "Related party Disclosures",prescribed by Companies (Accounting Standards) Rules, 2006
List of related parties and relationships:
SubsidiaryKey Management Personnel
Related party transactions:
: MAS Rural Housing & Mortgage Finance Ltd.: Mr. Kamlesh C. Gandhi (Managing Director)
Mr. Mukesh C. Gandhi (Whole{ime Director)
Sr.No.
Nature of transactions Year ended 31"March 2013
Rupees
Year ended 31"March 2012
Rupees1 lnterest lncome:
MAS Rural Housino & Mortoaqe Finance Ltd. 2,902.738 16,104
2 Rent lncome:MAS Rural Housinq & Mortqaqe Finance Ltd. 600.000 330,000
J lnter-Corporate Deposit qiven to:MAS Rural Housinq & Mortqaqe Finance Ltd. 122,000,000
4 lnter-Corporate Deposit repaid by:MAS Rural Housinq & Mortoaqe Finance Ltd. 120,000,000
5 Deposit Repaid:MAS Rural Housino & Mortqaoe Finance Ltd. 460,965
6 Advances given to:MAS Rural Housinq & Mortqaqe Finance Ltd. 2.462,628 1,235.487
7 Advances repaid bv:MAS Rural Housinq & Mortqaqe Finance Ltd. 2,462.628 1,235,487
8 Advances received from:MAS Rural Housinq & Mortqaqe Finance Ltd. 114.271 212,487
I Advances repaid to:MAS Rural Housinq & Mortqaqe Finance Ltd. 114,271 212,4A7
10 Remuneration paid:Mr. Kamlesh C. Gandhi 11,537,762 7 ,431 127
Vd#i-}r)- Mr. Mukesh C. Gandhi 11 .457 .644 7,370.597,F{ W\ iJ
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Generic Names of PrincipalProducts/Services of the Company (as permonetary terms)
Item Code No.Product description
Not ApplicableLoans under Loans cumHypothecation Agreements.
Prachi Kanodia(Company Secretary)
Place. Ahmedabad.Date : ;5& HoJ, 2013.
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BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE AS PER SCHEDULEvr, PART (rV) OF THE COMPANTES ACT 1956
Registration detailsRegistration No. :
State Code :
Balance Sheet Date :
26064o4
31sr MARoH 2o13
Capital raised during the yearPublic lssue
Right lssue
Bonus lssue
Private Placement
Position of Mobilisation and Deployment of FundsTotal Liabilities
Total Assets
Sources of FundsPaid-Up CapitalReserve & SurplusDeferred Subsidy
Non-current LiabilitiesCurrent LiabilitiesDeferred Tax Liability
Application of FundsNet Fixed AssetslnvestmentsDeferred Tax AssetsCurrent AssetsNon-current AssetsAccumulated Losses
Performance of the Company
Total lncome
Total Expenditure
Profit Before TaxProfit After Tax
Earnings per share (Rs.)
Dividend Rate ('/") on Equity Shares
(Amount Rs. ln Thousands)NIL
NIL
(Amount Rs. ln Thousands)
7672597
7672597
s34712405674
222
15273895204600
NIL
60601108331
4356y.o7145
2092164NIL
(Amount Rs. ln Thousands)
NIL
t.
1374',144
99'1 133
383011259053
21.16
35 00
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ANNEXURE B (Forming part of the financial statements)
Notes to the Balance Sheet
Asset Liability ManagementMaturity pattern of certain items of assets and liabilities
(Rs. ln crores)1 day to
days(one
month)
Over onemonth to2 months
Over 2monthsupto3months
Over 3months
to6months
Over 6months
to 1 year
Over 1
year to 3years
Ove13yearsto5
years
Over5
years
Total
LiabilitiesBorrowingstrom banks(includingNCDs)
279 7.34 4.16 48.96 18.7 5 41 67 0.00 0.00 123.7'l
MarketBorrowinqs
0.00 0.00 1.25 1.25 2.50 7.50 0.00 0.00 12.50
AssetsAdvances 39 17 34.74 30.03 86.03 162.99 149.27 751 0.68 550.42
lnvestmenls 0.00 000 0.00 0.00 0.00 0.08 0.00 000 008
DirRctors
(Company Secretary)
Place: Ahmedabad.oate :pg$tlg, &o13.
(Chairman & Managing Director)
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ANNEXURE B (Forming part of the financial statements)
Notes to the Balance Sheet
Disclosure as required in terms of Paragraph 5 of Reserve Bank of lndia Circular No. RBI 2008-09/116 DNBS(PD) CC. No. 125103.o5-OO2l2O0a-09 as regards capital adequacy, liquldity and disclosure norms
Exposures
Exposure to Real Estate Sector
CRAR (Capital to Risk Asset Ratio)
Items Current Year Previous Year
oRAR ("/d_ 21 97 24 02
ii) CRAR - Tier I Capital (%) 14.28 15.98
ii') CRAR - Tier ll CaPital (%) 769 804
Category Current Year Previous Year
a) Direct exposure(i) Residential Mortqaqes -
t-enOing tutty secured by mortgages on residentialproperty tnai is or will be occupied by the borror,ver oJ
ihai is iented; (lndividual housing loans up to Rs 15
lekh mav be shown seDaratelv)
Nit Nil
(ii) Commercial Real Estate -uending secureo by mortgages on commercial real
estates (office building, retail space, multipurposecommercial premises, multi-family residential buildings'multi-tenanted commercial premises, industrial orwarehouse space, hotels, land acquisition, developmentand construction, etc.). Exposure would also includenon-fund based (NFB) limits:
Nil Nit
(iiD tnvestrnents in lvlortgage Backed Securities (MBS) andoiher securitised exDosures -
a. I Residential, Nit Nit
b. I Commercial Real Estate. Nil Nil
b) lndirect exposureFund bases and non-fund based exposures on NationalHousino Bank (NHB) and Housinq Finance Companiqg (EEQIL
Nir Nit
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ANNEXURE A (Forming part of the financial statements)
Notes to the Balance Sheet
(6) lnvestor group-wise classification of all investments (current and long term) in shares andsecurities (both quoted and unquoted ) :
Please see note 3 below
Category
1. Related Parties **
(a) Subsidiaries(b) Companies in the same group
lcl Other related parties
2. Other than related parties *.
Total
** As per Accounting Standard of lCAl (Please see Note 3)
(7) Other information
Particulars(i) Gross Non-Performing Assets
(a) Related parties(b) Other than related parties
(ii) Net Non-Performing Assets(a) Related parties(b) Other than related parties
(iii) Assets acquired in satisfactjon of debt
Notes:
Market Value / Break up or Book Valuefair value or NAV (Net of Provisions)
1,188.73NILNIL
12.96
I,075.00NILNIL
8.31
1,201.69 1,083.31
Amount
NIL'1047.98
NIL893.1841 .37
1. As defined in paragraph 2 (1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits(Reserve Bank) Directions, 1998.
2. Provisioning norms are applicable as prescribed in the Non-Banking Financial (Non-Deposit Accepting orHolding) Companies Prudential Norms (Reserve Bank) Directions, 2007.
3. All Accounting Standards and Guidance Notes issued by lCAl are applicable including for valuation ofinvestments and other assets as also assets acquired in satisfaction of debt. However, market value inrespect of quoted investments and break up/fair valueiNAv in respect of unquoted investments should bedisclosed irrespective of whether they are classifled as long term or current in (4) above.
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ANNEXURE A (Forming part of the financial statements)
Notes to the Balance Sheet
Government SecuritiesOthers (please specify)
Unouoted:
Shares :
(iv)(v)
NILNIL
NILNIL
2
(D
(iD
(iiD
(iv)(v)
Lonq Term lnvestments :
(a) Equity(b) Preference
Debentures and BondsUnits of mutual fundsGovernment SecuritiesOthers (please specify)
Quoted:
Shares:
NILNILNILNIL
0.63NILNIL
NIL7.61NIL
1075.07NIL
1.
(a) Equity(b) Preference
Debentures and Bonds
units of mutual fundsGovernment Securitiesothers (please specify)
Unauoted:
Shares: (a) Equity(b) Preference
Debentures and BondsUnits of mutualfundsGovernment SecuritiesOthers (please specify)
Borrower group-wise classification of assets financed as in (2) and (3) above:Please see Note 2 below
(D
(iD
(D
(iD(iiD(iv)(v)
(iii)(iv)(v)
(5)
NILNILNILNIL
NILNILNIL
NILNILNIL
NILNILNIL
Category
1. Related Parties **
(a) Subsidiaries(b) Companies in the same group(c) Other related parties
2. Other than related Parties
Amount net of Provisions
secured Unsecured Total
36,752.33 18,289.14 55,041.47
Total 36,752.33 18,289.14 55,041.47
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ANNEXURE A (Forming part of the financial statements)
Notes to the Balance Sheet
lnformation as required in terms of Paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding)Companies Prudential Norms (Reserve Bank) Directions, 2007.
Particulars
Liabilities side :
(1) Loans and advances availed by the NBFCS lnclusive ofinterest accrued thereon but not paid
(a) Debentures : Secured:Unsecured
(other than falling within the meaning ofPublic deposits*)
(b) Deferred Credits(c)l Term Loans(d) lnter-corporate loans and borrowing(e) Commercial Paper(f) Other Loans:
From BanksFrom a Company
Security Deposits
'Please see note 1 Below
Assets side:
(2) Break-up of Loans and Advances including bills receivables
lother than those included ln (4i below](a) Secured(b) Unsecured
(3) Break up of leased Assets and stock on hire and otherassets counting towards AFC Activities
(i) Lease assets including lease rentals und:r sundry debtors:
(Rs.ln Lakhs)Year ended 31sr March 2o13
Financial leaseOperatang lease
AmountOutstanding
3,856.654,998.00
NIL10,405.41
NILNIL
34,928.23NIL
10,666.05
AmountOverdue
NILNIL
NILNILNILNIL
NILNILNIL
Amount Outstanding
36.752.3318,289.'t4
(ii) Stock on hire including hire charges under sundry debtors :
(a)(b)
(a)(b)
(a)
(b)
NILNIL
NILNIL
(iii) Other loans counting towards AFC activities
Assets on hireRepossessed Assets
Loans where assets have beenRepossessedLoans other than (a) above
NIL
NIL
(4) Break-up of investmenG :
Current investments :
1 Ouoted:
Shares:(D
(iD
(iiD
(a) Equity(b) Preference
NILNILNILNIL
Debentures and BondslJnits of mutual funds
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35. The Company has not received any intimation from vendors regarding their status under theMicro, Small and Medium Enterprises Development (MSMED) Act, 2006 |n view of this,
information required under section 22 of MSMED Act, 2006 to that extent is not given
36. Balances of trade payables and loans and advances are subject to confirmation. Adjustments, ifany required, will be made on settlement of the account of the parties.
37. The disclosures required in terms of Paragraph 13 of the Non-Banking Financial (Non-Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions' 2007 are given in
Annexure A forming part of these Financial Statements.
38. Amounts remitted in foreign currency during the year on account of dividend
11 Guarantee qiven:MAS Rural Housino & Mortoaoe Finance Ltd. 120.000.000 100,000.000
Guarantee outstanding as at year end:MAS Rural Housinq & Mortqaqe Finance Ltd. 97.678.625 91,964.305
13 lnvestment in Equity Shares of:MAS Rural Housinq & Mortqaqe Finance Ltd. 17.500.000
14 Outstandinq receivables as at year end:MAS Rural Housing & Mortgage Finance Ltd. -Deposit
2,000,000
Year ended 31March, 2013
Year ended 31March, 2012
Rupees Rupees
Amount of dividend remitted in foreign currency
Total number of non-resident shareholders (to whom thedividends where remitted in foreign currency)
Total number of Compulsorily Convertible CumulativePreference Shares held by them on which dividend wasdue
Year to which the dividend relates
30,429,763
43,471,090
2011-12
30,429,763
1
43,471,O90
2010-1'l
39. Expenditu;e in Foreign Currency
Year ended 31"March,2013
Year ended 3'lMarch.2012
Rupees RuDees
lnterest Paid 41,444,427
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40. Previous Year's Figures
Previous year figures have been accordingly regrouped / reclassified to conform to thc currcntycar's clagsificstron.
ln terms of our report attached
For Deloitte Haskins & SellsChartered Accountants
Gaurav J. ShahPartner Prachi Kanodia
(Company Secretary)
Kamlesh C. Gandhi(Chairman & Managing Director)
M*#?".,"0,.,{ rbnol" Tir" oirector)U
Place: AhmedabadDate : 15SfieXr2.cil3.
Place: Ahmedabad.oate :[!-th I'tvy,eilZ
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