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��ANNUAL REPORTANNUAL REPORTANNUAL REPORT

UTTRAYANUTTRAYAN

TM

UTTRAYAN FINANCIAL SERVICES PRIVATE LIMITED

Board of Directors

Letter to the Stakeholders

Operational Presence

Operational Results

Financial Spotlights

Milestone Achieved

Our Loan Products

System Efficiency & Operational Efficiency

Human Resource, Training & Development

Internal Control System

Client Survey Process Flow

Grievance Redressal Mechanism

List of Bankers/Lenders & Gross Loan Outstanding

Customer Case Studies

Directors' Report

Independent Auditors' Report

Notice for Annual General Meeting

About the Company

Legal Credentials & Statutory Auditors

Vision, Mission & Objectives

3

4569

11131420

2123

2427

2829

30

313454

87

Content

UTTRAYANUTTRAYAN

UTTRAYANUTTRAYAN

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Uttrayan Annual Report # 2018 - 19 ��

Uttrayan Financial Services Private Limited (UFSPL) is a registered NBFC-MFI providing

comprehensive financial solution to the people who are deprived from mainstream financial services

through formal sources /channels. Uttrayan works for alleviation of poverty through economic

intervention and social empowerment of the underprivileged class of the society, with special focus

on women and promotes work empowerment. Uttrayan is equipped with technology-driven delivery

model ensuring low cost operations and innovative products which best suit the requirement of its

clientele.

During June 2008, the management acquired an NBFC in the mane and style of Chotanagpur Trade &

Investments Private Limited

On 4th June, 2009 the name of the Company has changed from Chotanagpur Trade & Investments

Private Limited to Uttrayan Financial Services Private Limited on 10th June, 2014 the Company

received NBFC-MFI License from Reserve Bank of India.

Uttrayan Annual Report # 2018 - 19��

UTTRAYANUTTRAYAN

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Company Name : Uttrayan Financial Services Private Limited

Corporate Identification Number : U67120WB1995PTC071237

Incorporation Details : Incorporate on 26th April 1995 with ROC, Kolkata

Registered Office Address : CF- 32, Salt Lake City, Sector-I, Kolkata - 700 064

Registration with RBI : Registered with RBI as NBFC-MFI (COR B-05.00575)

Permanent Account Number : AABCC0070E

Phone No. : 7044048874

E-mail : [email protected]

Website : www.uttrayan-mfi.com

M/s. Ray & Ray

Chartered Accountants

Webel Bhavan, Ground Floor, Block - EP & GP,

Sector - V, Salt Lake, Kolkata - 700 091

Tel. : +91-33-40648107

E-mail : [email protected]

Website : www.raynray.net


UTTRAYANUTTRAYAN

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Providing cost effective financial services and integrated

community development, for the economic and social

empowerment of women leading to better l ivelihood

opportunities.

To spread in West Bengal and neighboring states through different

financial and development activities with 1000000 outreach by

2025.

· To improve the standard and quality of life of poor women by providing them with micro-credit at affordable price. Such credit will enhance their earnings and they can spend on nutrition of children, education of children, shelter and food for themselves

· Sustainable development & Creating value for stakeholders

· Being acknowledged as an admirable and trusted Company

· Promotion of Health, education and environment.


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Mr. Kartick Biswas

Founder & Managing Director

Mr. Apu Dhar

Director

Mr. Biswas is the founder promoter of Uttrayan Financial Services Pvt. Ltd. which started its operations way back in 2001 in the form of a Non Governmental Organisation (Sahara Uttarayan) with its prime objective of poverty alleviation and empowerment of the poor especially for women & with the phenomenal success over few years of leading the NGO, he had realized to set up a corporate house for spreading the wings of the NGO operation. In 2008 Uttrayan has acquired a NBFC Company namely Chotanagpur Trade & Investments Private Limited which was renamed as Uttrayan Financial Services Pvt. Ltd. and received NBFC-MFI license from RBI in the year 2014. Mr. Biswas is a B. Sc graduate from Calcutta University. He brings with him an enriched experience of Micro Finance Industry for over 18 years. He is an expert in SHGs, JLGs, rural appraisal, finance, funds, operations and project monitoring. He understands & well manages business plan. He was part of the core team, which set up and built Uttrayan from inception. As the Head of Uttrayan, his role included building and growing the company's portfolio in these sectors. He has good leadership qualities and can lead and represent the organization in all areas. He has enriched his knowledge by attending different programmes and seminars on this field organized by different leading institutions for institutional development. Training imparted from RMK, NMDFC- New Delhi, Planet Finance, EDA and Care India. He was recently selected to participates in the Harvard Business School - Accion Program on “Strategic Leadership on Inclusive Finance", Boston, USA. He is a certified participant in IIM-A SIDBI Programme on Challenges of Managing Inclusive Finance in India held at the Indian Institute of Management, Ahmedabd during November 2017. He is also a Board Member of AMFI-WB. Being the Managing Director of the Company he looks after the Finance, Administration and Audit of the Company.

thSince, 08 August, 2008, Mr. Biswas has been inducted as full time executive director with the Company.

Mr. Dhar holds a bachelors' degree in B.A from Calcutta University. He has been a Director on our Board since March 25, 2009 and has over 18 years of experience in the Micro Finance sector. Mr. Apu Dhar is a veteran in the microfinance industry with an extensive stint for more than a decade at the apex. He has extensive exposure in all areas of microfinance – field activity, finance, accounts and operations. He has attended different programmes and seminars in microfinance. He has specialized knowledge and experience in operation having capability to lead bigger teams. He is expert in delinquency management. He has also experience in providing training and works as a faculty member for in-house training of Uttrayan. Mr. Dhar has been inducted as full time executive

thdirector of the Company with effect from 25 March, 2009.


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Mr. Bijon Kanti Choudhury

Non-Executive Director

Mr. Choudhury was associated with UCO bank and retired as

Deputy General Manager before joining the Boards of Uttrayan.

He comes with vast knowledge and enriched experience in the

domain of credit, treasury and investment activities of the

Banks and Financial Institutions. During his tenure with UCO

Bank, he served as the Zonal Head of the bank and was in

charge of Industrial Finance Branch, Kolkata. He has more than

42 years of work experience in Banking and Financial Services.

His education qualifications are M.Sc, CAIIB, CFA (Prelims). In

Uttrayan, he extends his expertise in Policy making, Internal

Control, Risk management and an active member of Audit

Committee. He had associated with Uttrayan as Non-executive thDirector effective from 27 April, 2012.


Mr. Anindya Sen

Mr. Sen had retired from the designation of Senior Vice

President (eastern Zone) of Axis Bank Limited. He has a vast

experience in Financial and Banking sector with profound

knowledge in Risk Management and modern Banking and

Financial systems. He has more than 43 years of work

experience in Banking and Financial services especially in Risk

Management domain. His education qualifications include B.Sc

in Chemistry, B.A, and CAIIB. In Uttrayan, he looks after the Risk

Management and Internal Audit being an active member of the

Audit Committee. He had associated with Uttrayan as Non-

executive Director effective from 18th June, 2014.

Mr. Tarakanta Mohapatra

Nominee Director of SIDBI

Mr. Mohapatra currently serves as a Asst. General Manager,

SFMC Vertical at Small Industries Development Bank of India

(SIDBI). Having wide experience for over 21 years in development

Banking and worked in various capacities in various branches,

Regional Offices and Head Office. Looked after various

departments including Credit. He has been appointed as the

Nominee Director of Uttrayan Financial Services Private

Limited, Kolkata representing SIDBI since 15th January, 2019. He

also holds directorship in other company. His education

qualifications includes M. Com, Master of Finance & Control,

CAIIB and CFA. He was being appointed as Nominee Director, threpresenting SIBDI in the board of UFSPL effecting from 15


UTTRAYANUTTRAYAN

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stAS on 31 March, 2019, Board comprised of 5 Directors out of which 2 are Non Executive Director and 1 stNominee Director. The names and nature of Directorship as on 31 March, 2019 are given below:

Composition of Board of Directors

Mr. Kartick Biswas

Chairman cum Managing Director

DIN : 02207249

Mr. Apu Dhar

Executive Director

DIN : 01726461



DIN : 05266512

Mr. Anindya Sen


DIN : 06891066

Mr. Tarakanta Mohapatra

Nominee Director (SIDBI)

DIN : 08351865

* Mr. Probindu Kumar Biswas was resigned on 10.10.2018

* Mr. Tarakanta Mohapatra was inducted on 15.01.2019 in place of Mr. Arata Kumar Sahoo, representing SIDBI.

The details of composition of the Committee of the Board of Directors as on March 31, 2019 are as under:

2. Banking Committee :

Mr. Kartick Biswas (Chairman)

Mr. Apu Dhar (Member)

3. Corporate Social Responsibility Committee :

Mr. Kartick Biswas (Chairman)

Mr. Apu Dhar (Member)

1. Audit Committee :

Mr. Bijon Kanti Choudhury (Chairman)

Mr. Kartick Biswas (Member)

Mr. Anindya Sen (Member)

UTTRAYANUTTRAYAN

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It gives me immense pleasure to present to you our stAnnual Report for the financial year ended 31

March, 2019. This report describes the financial

results of Uttrayan during this period 2018-19 and

also highlights some of the key operational

performance during this period. I am pleased to

share that Uttrayan has recorded outstanding

growth in AUM and profitability. In fact, over the last

three years, the Company has reported AUM

growth of nearly 25 percent, growing from 1377

million in FY16-17 to 2266 million in FY18-19. We

have successfully restructured the AUM share in

the neighboring states of west Bengal, shifting high

portfolio concentration from West Bengal to

Assam, Bihar and Odisha of eastern India and

starting MFI business in Punjab & Uttrakhand of

Northern India which have been reported doing well

and will see as a potential client base for coming

days. The Company has also started business

operation in the state of Sikkim, Punjab &

Uttrakhand capturing six districts in these three

states. A total of 11 new branches were opened in

Sikkim, Punjab, Uttarakhand and Odisha which is

perfectly translated the signs of successful

operation at the ground. Based on current trends

and prospects, we are confident of our continuing

outperformance over the industry in the

foreseeable future as well.

Let me take this opportunity to introduce a brief

background of the Company. Uttrayan Financial

Services Private Limited is a Non Banking

Financial Company (NBFC-MFI) registered under

Reserve Bank of India (RBI) Kolkata. We started our

microfinance on-lending operation way back in the

year 2001 with its head office at Kolkata, by

providing small ticket size loan to the poor woman in

rural and semi-urban area through group based

system. Our Company provides livelihood

promotion services comprising of livelihood and

other Micro financial services to those population

segments which are mostly un-reached by the

formal banking systems with the principal purpose

of promoting sustainable livelihoods.

Uttrayan is now working with 87 branches with

presence in 8 states i.e. Assam, Bihar, Odhisa,

West Bengal, Sikkim, Meghalaya, Uttrakhand &

Punjab. We are providing financial assistance more

than 18,01,00 beneficiaries til l date since

incorporation across the Country to make their way

out of poverty.

This financial year 2018-2019 has been a milestone

in a way that we have crossed a benchmark portfolio

of Rupees Two Hundred Crore (incl. managed

portfolio). We have started our business in the state

of Punjab, Sikkim and Uttarakhand capturing six

districts in addition to Odisha (four new districts).

Overall the total number of Branches of the

company increased from 76 to 87 in this financial

year adding up 11 new branches accorss the

country.

Your company has implemented technological

advancement as the disbursement of loan amounts

to all the clients are completely done only in

electronic mode without any cash disbursement

also biometric equipments has been installed in all

the 87 Branches along with Head Office in Kolkata.

Also, Company has developed and implemented

mobile based application (android app) to take care

the micro finance field level operations.

As you know the company's Mission is to provide

cost effective financial services and integrated

community development, for economic and social

empowerment of women leading to better

livelihood opportunities and the Vision of the

Company is to spread in West Bengal and

neighboring states through different financial and

development activities with 10,00,000 outreach by

2025. Standing on the vision of the Company we are

currently operating in 8 states (West Bengal,

Assam, Bihar, Meghalaya, Odisha, Sikkim,

Uttrakhand & Punjab; having 87 branches, 38

Districts) compared to 5 states and 76 Branches

and 28 Districts in the previous year.

Performance of the Company:

Your company has successfully started its

operation in the states of Punjab, Sikkim and

Uttarakhand turned the focus to northern and north

eastern states. The Company is determined in

opening its Branches in the states of North Western

parts of the country in the succeeding financial year

keeping our mission and vision in mind. The

Company has a network of 87 branches across 8

States with presence in 38 districts, 2961 villages

and 7661 centers. Uttrayan's AUM grew by 22

percent from Rs.185.65 crores in FY 2017-18 to

Rs.226.67 crores in FY 2018-19, active loan

accounts increased by 6.06 per cent to 138436 from

130521 last year. Loan of Rs.348.76 cr. was

disbursed during the financial year (incl. BC) having

average loan size disbursed Rs.26,502 during the

year, and these loans have a 99.90 per cent

repayment rate. The Portfolio at risk (>30days) incl.

BC has reduced to 0.82 per cent from 0.90 per cent

last year. The Company's operational revenue grew

by 31.42 per cent to Rs.46.84 Cr. for period FY18-19

compared with Rs.35.64 Cr. for FY17-18. Loan loss

provisions stood at Rs.1.93 cr. made for period FY-

18-19 as per the company's policy. We are now

servicing over 138436 customers in 8 states.

The profit after tax has increased to Rs. 6.27 crores

in the FY 18-19 from Rs. 5.53 crores in the last

financial year. In keeping with the trend of recent

years, and considering the adverse affect of

economic slowdown, liquidity crisis from Bank/FI of

and maintaining adequate liquidity for repayment of

debts (short tenor Banks/FIs/NBFC loans) for MFIs,

our Company's performance in the year under

review was, by all measures, again remarkable.

At the end of this eventful and successful year, I

would like to take this opportunity to extend my

sincere thanks to our clients, employees, banking

partners, Board of Directors and well-wishers for


UTTRAYANUTTRAYAN

TM

ltheir support towards attaining the goal of the

organization. I am looking forward for your

continued support for our healthy business

propagates in future.

With best wishes,

Kartick Biswas

Managing Director


UTTRAYANUTTRAYAN

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As on March, 2019 Uttrayan Financial Services Private Limited has 87 branches which is spread across 38 districts of 8 States in the Eastern, North-Eastern & Northern India. During the year, We have started our business in the state of Punjab, Sikkim and Uttarakhand capturing ten more districts, eleven new branches across the country.

Gross Loan Portfolio (GLP) (State-wise share)

West Bengal

(9 Districts, 52 Branches)

North 24 ParganaSouth 24 ParganaBirbhumMaldaUttar DinajpurMurshidanadNadiaBardhamanHoogly

Bihar(6 Districts, 9 Branches)

Vaishali

Begusarai

Samastipur

Muzaffarpur

Nalanda

Patna

GLP (FY 18-19): INR 147.63 Cr

FY 17-18: INR 153.90 Cr

GLP (FY 18-19): INR 30.13 Cr

FY 17-18: INR 14.75 Cr

GLP (FY 18-19): INR 29.70 Cr.

FY 17-18: INR 11.90 Cr

Assam(7 Districts, 9 Branches)

Barpeta

Chirang

Darrang

Goalpara

Kamrup

Kamrup Metro

Sonitpur

Meghalaya(1 District, 1 Branch)

RibhoiGLP (FY 18-19): INR 2.72 Cr.

FY 17-18: INR 1.57 Cr


UTTRAYANUTTRAYAN

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GLP (FY 18-19): INR 10.93 Cr.

FY 17-18: INR 3.54 Cr

Odisha(9 Districts, 9 Branches)

Anugul

Balangir

Balasore

Bhadrak

Jajapur

Kurdha

Mayurbhanj

Rayagada

Sambalpur

GLP (FY 18-19): INR 1.69 Cr.

Punjab(2 Districts, 2 Branches)

Mohali

Ludhiana

Uttarakhand(2 dist., 2 branches)

Dehradun

Haridwar

GLP (FY 18-19): INR 0.73 Cr.

GLP (FY 18-19): INR 3.14Cr.

Sikkim(2 Dist., 3 branches)

East Sikkim

South Sikkim


UTTRAYANUTTRAYAN

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OPERATIONAL RESULT 2016-2017 2017-2018 2018-2019

A

B

C

D

E




1

2

3 No. of Villages 2042 3128 3927

4 5 8No. of States

No. of Districts 15 28 38

Organizational Data

1 Total Branch Strength 63 76 87

2 Employee Strength 310 387 438

Credit Recovery Officers (CRO) 181 246 276

Branch Support Staff 94 106 119

HO Staff 35 35 43

1 No. of Centres 4,556 12,939 15,321

2 No. of Groups 9,111 51,756 61,284

3 No. of Borrowers (Active) 1,04,716 1,30,644 1,38,574

4 No. of Members 1,26,168 1,65,830 1,92,955

1 No. of Semi-Urban Borrowers (' L) 63,447 67,530 10,415.03

2 No. of Rural Borrowers (' L) 41,269 63,114 12,251.60

3 Adv. for Agriculture (' Lac) 5,676 2,193.57 3,325.38

4 Adv. for Trading Activity (' L) 6,900 12,321.47 15,710.48

5 Adv. for Mftd. Activity (' L) 189 1,221.11 3,498.72

6 Adv. for Others (' Lac) 1013 2,828.94 132.05

Portfolio Details

1 No. of Loans Disbursed during the year (incl. BC) 94,971 1,19,646 1,31,610

2 Total Amount of Disbursement during the year (' Lac) 19,357 27,880 34,883.67

3 Average Loan size disbursed during the ys (' ) 20,382 23,302 26,505

4 Cumulative Disbursement (since inception) (' Lac) 54,767 82,647 1,17,555.41

5 Principal Due during the year (' Lac) 14,648 22,840 30,664.85

6 Principal Collected during the year (' Lac) 14,627 22,287 30,603.52

7 Recovery % for the year 99.86% 99.77% 99.80%

8 No. of Loan Outstanding at the end of the year 1,04,716 1,30,644 1,38,574

9 Portfolio O/S at the end of the year (' Lac)

i Own Portfolio 7,314.78 14,745.99 19,336.83

ii Managed Portfolio 6,463.12 3,819.10 3,330.21

Total Portfolio (AUM) (' Lac) 13,777.90 18,565.09 22,667.04

10 Portfolio At Risk (>30 Days) 1.05% 0.90% 0.61%


UTTRAYANUTTRAYAN

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Gross Loan Portfolio (GLP) IN Cr.

0.00

50.00

100.00

150.00

200.00

250.00

Managed Portfolio

Own Portfolio

Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 19

State wise GLP in Cr.

0.731.693.14

10.93

2.72

30.13

29.70 147.63

WEST BENGAL

ASSAM

BIHAR

MEGHALAYA

ODISHA

SIKKIM

PUNJAB

UTTARAKHAND

19.00

52.70

64.63

38.19

33.30

193.37

147.46

73.15

37.4032.60


UTTRAYANUTTRAYAN

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Cyclewise POS (Portfolio Outstanding)

No. of Loans 5736971.88POS (Rs. In Cr.)




Gross Revenue

PAT

0.00

0

5

10

8.2010.00

20.00

30.00

40.00

50.00

Mar. 15

2016 - 2017

2.64

5.536.27

2017 - 2018 2018 - 2019

Mar. 16 Mar. 17 Mar. 18 Mar. 19

14.5320.20

35.64

46.84

Amt. (Rs. Cr.)

PAT (Rs. In Cr.)


UTTRAYANUTTRAYAN

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Return on Assets (ROA %)

3.2

3

2.8

2.6

2.4

2.2

2016 - 2017

2016 - 2017

114%

2017 - 2018

118%

2018 - 2019

115%

2017 - 2018 2018 - 2019

2.52

3.00

2.74

34

32

30

28

26

2016 - 2017 2017 - 2018 2018 - 2019

28.6

32.12

31.01

Return on Equity (ROE %)

Operational Self-sufficiency (OSS %)

Net interest margin (NIM %)*

* Note : NIM seen in the graph has declined because of sharp increase in cost of fund (increased around 200

basis point during FY18-19) by the Banks/FIs but the company did not pass the same interest load on the clients

without change of the interest rate on lending for the benefit of the clients.

2016 - 2017 2017 - 2018 2018 - 2019

9

9.2

9.4

9.6

9.8

1010.04

10.2

9.62

9.09


UTTRAYANUTTRAYAN

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Capital Adequacy (Average Debt & Net worth)

2016 - 2017176.51 16.39

20.79

26.68

155.23

60.58

2017 - 2018

2018 - 2019

Average Debt (fig. in cr.) Networth (fig. in Cr.)

PAR Comparison

> 30 Days

2018

2019

> 60 Days > 90 Days

0.00

0.50

1.00

1.50

1.031.15

0.891.01

1.171.32

Growing chart

0

20

40

60

80

100

120

140

2015

2

10

55

3

12

55

4

15

63

5

28

76

2016 2017 2018

BRANCH

DISTRICT

STATE

2019

8

38

87


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CRAR (%)

17.10

18.0222.45

2016 - 2017 2017 - 2018 2018 - 2019

Funding Mix

FY 2017 - 18Funding Mix (INR Cr.)

Funding Mix (%)

Bank

NBFCsDFls

85.87

66.543.91

54.93

42.572.50

FY 2018 - 19Funding Mix (INR Cr.)

Funding Mix (%)

Bank

NBFCs

DFls

76.5

103.0417.13

38.90

52.398.71

No. of Staffs Employed as on 31.03.2019

Figure 2019

0 50 100 150 200 250 300

HO STAFF

OTHER FIELD STAFF

CRO

50

119

276


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Status of Insurance Claim Settlement (FY 2018-19)

Uttrayan Received

8249630

Nominee Received

5837370

Total Premium Goven

31757135

Total Clear Amount

14087000

Insurance Report 2018 - 2019

Uttrayan started operations with its 1st branch opened in

West Bengal. Got first financing from

FWWB for Rs. 10 Lakhs.

Operation footprint expanded with 49 branches in West Bengal.Acquired Chotanagpur Trade

& Investments Pvt. Ltd. (NBFC)

Company name changed to Uttrayan Financial Services Pvt.

stLtd., 1 Financial assistance from SIDBI of Rs.5 Cr.

SIDBI invested

Rs.1.5 Cr. in OCPS

Got NBFC-MFI license,Extended operation in Assam,Partnered with IDBI & Yes Bank as Bank Correspondent (BC)Crossed AUM of Rs. 50

Crores & 50000 client base.Honored with various award, reward, nomination and recognition from SKOCH, ASSOCHAM and ET Bengal Corporate Awards, BC exposure enhanced to 45 Cr. with IDBI.SIDBI invested Rs.1.5 Cr. in OCPS

Expanded operation in Bihar Introduced E_payment platform for disbursement of loan,Highest PAT of Rs.1.65 Cr., Lowest PAR of 0.32%, Reaffirmed credit rating BB+ & MFI Grading in M3+ranks.

Crossed AUM of Rs.100 Crores & 100000 client

base, Started Micro House Building Loans, Extended

footprint in Odisha and Meghalaya, Availed fresh term loan (added 5 new Banks/FIs) of Rs. 80 Cr.,

SIDBI invested Rs. 2 Cr. in OCPS

Opened 16 new branches in Bihar, Assam & Odisha,

Availed fresh financial assistance (added 5 more Banks/FIs) of

Rs.133 Cr., Extended operation network in Sikkim, Punjab

& Uttrakhand.

Crossed AUM benchmark of Rs. 200 Cr. & 1.92 Lakhs client base, Operation expanded to 8

states & 87 branches. Availed fresh fund/TL (added 6 new Banks/FIs) of

Rs. 163 Cr., 4th time winner of ASSOCHAM award Revenue

touched to 48.38 Cr. & PAT to Rs. 6.27 Cr. Reaffirmed credit rating

BBB & grading MF3.

20012005

2008

2009

2012

20142015

2016

20172018

2019


UTTRAYANUTTRAYAN

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UTTRAYANUTTRAYAN

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Uttrayan provides micro credit to the deprived

women of the society to smooth their livelihood

and give them a better standard of living.

Uttrayan offers small loans to women in

between to to support for 8,000 75,000

income generation as per RBI Guidelines.

Loans are normally offered for productive

purposes and income generating activities such

as agriculture and allied activities, small

businesses – trading / manufacturing etc. Loans

are not usually offered for housing or personal

consumption; however, UFSPL has taken steps

to offer Micro housing Loan and Education Loan

to its clients. Presently we have following types

of loan;

Small Loan

We provide small loan to our members who are

engage in agriculture/ small trading/ small

business. The amount of small loan varies from

8,000 30,000 to . We charge total interest for

this loan is 24% and the total tenure for this loan

is 12 Months Apart from this we used to collect

loan processing fees @ 1% (incl. service tax) on

the principal loan amount.

Portfolio outstanding : 1544371866

No. of Clients : 103130

General Loan

We provide medium loan to our members who

are engage in agriculture/ small trading/ small

business with a big tune. The amount of small

loan varies from to . We 31,000 50,000

charge total interest for this loan is 24.00% and

the total tenure for this loan is 24 Months. Apart

from this we collect loan processing fees @ 1%

(incl. service tax) on the principal loan amount.




UTTRAYANUTTRAYAN

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Micro Housing Loan

We provide Micro Housing Loan to our

members who needs loan fo r home

improvements (Making new home or repairing

old home). These can range from material

replacements to room additions. Potential

clients for housing microfinance are usually self-

employed or very low-income salaried

employees who live in self-built homes & must

have full title to their lands. The amount of small

loan varies from to We 20,000 75,000.

charge total interest for this loan is 24.00% and

the total tenure for this loan is up to 36 Months.

Apart from this we collect loan processing fees

@ 1% (incl. service tax) on the principal loan

amount.



Educational Loan

We provide Educational Loan to our members

who are in need of money for education of there

children. The amount of Educational loan is

7,000. We chargetotal interest for this loan is

22.00% and the total tenure for this loan is 6

Months. Apart from this we collect loan

processing fees @ 1% (incl. service tax) on the

principal loan amount.




UTTRAYANUTTRAYAN

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UFSPL maintains its MIS through a software cal led “BIJLI” developed by Forceten Technologies. The software provides various features such as Web Based Centralized solution, Maker-Checker concept for all modules, Group & Individual Client registration workflow module, Batch processing of group transactions etc. Daily transactions are updated in the MIS and verified. UFSPL also prepares a separate MIS for Cash management.

It is a desktop based application.

All Branches are computerized and branch level can update the customer details. It is real time updation which helps day end processing is collected in Head Office level to review details the following day. Further, UFSPL has launched mobile base application.

Most of the operations from member creation to loan application, sanction, repayment tracking, report generation, etc. can be performed through the software.

All types of report can be generated through the software.

Use of technology: Use of technology is adequate for the current level of operations.

Management has adequate experience to upscale and sustain operations: Uttrayan believes that the senior management team's experience in microfinance will help UFSPL expand and sustain operations if it raises capital and resources on time.

Cost Management:- Operating expense as a % of gross loan portfolio has marginally decreased from 7.09% in FY18 to 6.17% in FY19.

Assets per Credit Officer:- UFSPL's average Total Loan Portfolio (include Managed Portfolio) per Credit & Recovery Officer was 82,12,697and Own Loan Portfolio per Credit & Recovery Officer was as of March 31, 2019. 82,28,440

Profit per Credit Officer:- EBIDTA per Credit & Recovery Officer has increased from 9,46,609 11,84,501 in FY18 to in FY19.

Profit per branch:- EBIDTA per Branch has significantly improved from in 30,64,024FY18 to in FY19. 37,57,728


UTTRAYANUTTRAYAN

TM

Uttrayan believes that human resource is a key strength of a organization. Uttrayan has laid down satisfactory HR policies in place for its present scale of operations. UFSPL has appointed senior management/officer-in charge who oversees staff recru i tment , incent ive p lann ing , annua l performance appraisal and training of its staff. P r o fe s s i o n a l g r o o m i n g a n d l e a d e r s h i p development are another two areas that the organization continues to give emphasis. The training and development cell will make sure the availability of a skilled and willing work force to the organization which has many benefits like optimum uti l ization of human resources, development of human resources, growing productivity team spirit, healthy work environment quality, morale and finally the behavioral improvement of an employee.

Uttrayan has organized the Town hall meetings (3 nos.) with field level employees (CRO/BM/RM) from various branches/districts. During this year, a large number of participants have attended this network meeting. During the period FY 2018-19, Uttrayan has conducted many skill development training & capacity building sessions for new as well as present employees. There have been four types of training module held during the year for the target participants like BM/CRO/RM/DMs and supervisors. HRD team will moderate the training courses along with the help of experienced pool of internal & external trainers who has imparted almost 450 learners during this period which provides the following five training modules:

After completion of the course, the learners will be able to explain the HR policy; especially employee facilities, code of conduct and performance management system (PMS), their behavioral etiquettes to establish office discipline and modify working environment and the training also aimed to conduct safety and security especially Cash carry & keeping, Off ice documents, Motor Bike, Computer, software, and soon Describe the job responsibilities of CRO.


UTTRAYANUTTRAYAN

TM

This training format is designed for the front line

staff members (CROs) to develop their capacity to

maximize the productivity of microfinance towards

sustainability of group, program and company

through proper group development. business

growth, minimizing risk and fair practices in

customer service. After completion of the course,

the target audience will be able to explain the

concept of microfinance, develop group and

establish group discipline Forecast and reduce the

loan risk through Preventive and curative care

Conduct safety and security especially Cash carry

& keeping, Office documents, Excellence in

customer service, Promote fair practice code of

Conduct as per RBI Guide Line towards grievance

redress and keep up the motivational level of self

and members and to organization

This training format is designed for the clients in line with the fair practices code / guidelines issued by the Reserve bank of India regulating the MFI's code of conduct framework in financial inclusions programs for the entities in India. The objectives of conducting financial literacy campaign are includes the facilitate financial inclusion through provision of two essentials i.e. literacy and easy access, Imparts knowledge to enable financial planning, growing business and income generation, inculcate saving habits, Improve the understanding of financial products leading to effective use of financial services. Able to proactively manage money and avoid risk.

It is a comprehensive tool for enriching personal development, grooming and impact assessment on the performance of our Management cadre deputed as Regional Manager/Divisional Manager or Zonal Manager/Area Manager. The sharp focus is to develop managerial competency/Skills of managers though live practical sessions. After completion of this course, the learners will be able to explain the functions of management, Strengthen the decision making process, Develop the management skills considering psychological issues, Improve the motivation level following the staff development process, describe the role, responsibilities and job description of managers and promote the organizational etiquette among the staff members


UTTRAYANUTTRAYAN

TM

UFSPL maintains its MIS through a software called

“BIJLI” developed by Force Pen Technologies. This

is a routine training program for all the field and HO

staffs to have familiar with company's online

software platform, functions and modalities its

usage in safe and secure manner. This is an

interactive live sessions for the target audience to

know from the internal or external experts various

software related updates, changes as per the

company's physical needs of running the business.

The training is very much necessary for applying

the MFI Software operation & KYC upload for group

members.

• Implementation of biometric attendance

system across all regions / centers of the

company.

• Staff strength as per requirement (FY 18 -

387 & FY 19-438)

• Learners Training received : 453 No's

• Conducted Training course (4 No's)

• Number of the recruitment in the workforce

of is 222

• Campus recruitment drive

Our business philosophy is based on five core

values - Operational Excellence, Customer

Focus, Product Leadership, People and

Sustainability. We believe that the ultimate

identity and success of our organization will

reside in the exceptional quality of our people

and their extraordinary efforts. For this reason,

we are committed to hiring, developing,

motivating and retaining the best people in the

industry. Accordingly, we have conducted few

campus recruitment drives in last couple of

month, in different colleges of South Bengal &

North Bengal district, from where we have

selected & hired nearly 42 candidates those

who are working presently in Uttrayan.


UTTRAYANUTTRAYAN

TM

Operation Matrix

Uttrayan has a strong Internal Control System to monitor its operations. The reporting chain is as below :-

At the branch level, a reporting structure has been created for effective monitoring of operations.

The CRO does the field verification and then reports to the BM. The BM conducts the appraisal but

cannottake the decision whether to grant or reject a loan application. After grading has been done by BM,

next level of screening is done by the Regional Manager. After his consent, the proposal goes to the

Operations Manager for final approval based on the recommendation of the BM, RM and the past

repayment history of the groups.

The operations are centralized with Head Office (HO) having the final authority for loan sanction &

disbursement. However, BM is responsible for loan collection and delinquency management.

There is a sound operational policy in place which ensures best practices in the industry to regulate &

expedite MFI's decision making process. In line with the mission, visions and the core values, Uttrayan is

having an experienced pool of resources in each of its functions. Following table defines the entire

organisation structure from the senior management level to the bottom of the reporting chain:

Board of Directors

Managing Director

Director operation

Operation Manager

Deputy Zonal Manager

Assistant Operation Manager

Divisional Manager

Regional Manager

Branch Manager

Credit & Recovery Officer

KYC Checked Through CB

(Via Mobile Application)CGT/CCT

(Compulsory Group Training/ Compulsory

Client Training)

Mohalla Survey

GRT/CRT (Group Recognition

Test / Client Recognition Test)

Loan Application (After Member is Authenticated in

Case of New Member)

Documents Verification

Loan Sanction

Loan Disbursement

Center Formation

Group Formation

(After Center is Authenticated)Member Application

(After Group is Authenticated, In

Case of New Member)

Documents Print

(Loan Application Print)

Collection Taken via Mobile Application

(Collection Type – Biweekly)


UTTRAYANUTTRAYAN

TM

LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

You can contact our local Branch Manager or call us on our centralized help line number with your issues which will be responded /resolved within working days. 10

Client

If not resolved

If not resolved

If not resolved

If not resolved

You can contact our Regional Manager deputed as the Grievance Redressal Officer (GRO) in his operational jurisdiction. Your queries/complaints shall be addressed /resolved within working days4

GRO (Grievance Redressal Officer)

Client

Client

+91 - 9891842660

If you are not satisfied with the resolution of CGRO or not solved within working days, then you can contact to Sa-Dhan (SRO) :- 20

Grievance Redressal Officer, Sa-dhan

You can contact our, your quarries /complaints shall be addressed /resolved within working days.6

Client

+91 - 9339145118 / 6292195201

CGRO (Chief Grievance Redressal Officer)

Email: [email protected]

Mr. Prasanta Chakraborty

(verbal or written)

Client Complaint BoxTelephonic Call - Help Line Number(s) Branch Manager

LEVEL 5If you are not satisfied with the resolution of CGRO/Sa-dhan or not solved within days, then you can 30

reach out to DNBS, RBI Kolkata regional office.

+91 - 033-22304982

Toll Free No. : 18003455540HO Help Line No. : 7044048874

Nodal officer Reserve Bank of IndiaDepartment of Non-Banking Supervision5th Floor, 15, N. S. Road, Kolkata-700001

Email: [email protected]


UTTRAYANUTTRAYAN

TM

Sl. No.

Name of the Funder

Amount Sanctioned

(Cumulative) as on 01.04.2018

(Rs. in Lakhs)

Amount Availed During

FY18-19 (Rs. in Lakhs)

Outstanding Amount

as on 31.03.2019

(Rs. in Lakhs)

UCO Bank

Bank of Baroda

Union Bank of India

Small Industries Development Bank of India (SIDBI)

Mudra Ltd-Micro Units Development & Refinance

Agency Ltd (MUDRA)

IDFC First Bank Limited

Bandhan Bank

Lakshmi Vilas Bank

Yes Bank Ltd.

IDBI Bank

South Indian Bank

Dhanlaxmi Bank

Bangiya Gramin Vikash Bank

Fincare Small Finance Bank Ltd.

AU Small Finance Bank Ltd.

MAS Financial Services Ltd.

Maanaveeya Development & Finance Pvt. Ltd.

Arohan Financial services Pvt. Ltd.

Ananya Finance for Inclusive Growth Pvt. Ltd.

Habitat Microbuild India Housing Finance Company

Pvt. Ltd.

Jain Sons Finlease Ltd. (Intelligrow)

Reliance Commercial Finance

Avanse Financial Services Ltd.

Mahindra & Mahindra Financial Services Pvt. Ltd.

Profectus Capital Pvt. Ltd.

Total

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

2500

180

500

600

-

1000

1800

500

2200

300

300

200

1000

-

-

4250

1700

-

500

750

-

1000

500

500

-

20280

500

-

-

1000

500

1000

1000

1000

-

400

-

-

-

500

500

4500

1500

1500

1000

-

700

1000

700

-

200

17500

1485

47

229

1213

500

1687

1375

908

598

400

180

108

18

324

292

4375

1527

1416

679

507

477

470

407

246

200

19668


UTTRAYANUTTRAYAN

TM

Past Background :

The then economically backward member lived in a

small rat house, since the source of income was

almost nothing, the husband of the member used

to take his livelihood by driving a TOTO of others.

Due to poverty, the members could not bear the

education of her two sons and only one daughter.

She has used to take her life in scarcity and through

ups and down.

Current Economic Conditions :

Now, the member's life has completely changed.

She is well established economically, being a

transparent and responsible citizen. The member is

associated with the grocery business with due

regards & respect. At present, the member lives in

a two-room brick house and has now purchased a

hundred satak land and started a grocery business

there and also purchased a TOTO for her husband.

She can now afford to live after a good life with

modern gadgets and furniture like others. Her

children are also proudly studying in famous

schools.

Future Plans :

There are plans to expand the grocery store in the

coming days.

Success Story :

On 17/02/2013, after taking the loan from

Uttarayan Financial Services Pvt. Ltd. she has

started the grocery business by first making a small

grocery shop at home with a loan of Rs. 10000/-

Thereafter, in subsequent trances, she has availed

couple of loans & repaid the loan to Uttrayan by

serving all terms of the loan application and used to

live her life in her own discretion. She has

developed all aspects of life socially and culturally

by creating wealth from the loan(s) from UFSPL.

Above all, she has taken a leading role in fulfilling

social responsibility as an ardent and established

citizen.

Group : Rani

Ashmira BibiHusband Name : Sukur Khan

Family Member : 2 Sons & One Daughter

Address :

Anandapur, Post & P.S. : Suiri,

Dist. : Birbhum, West Bengal

Business : Grocery Shop


UTTRAYANUTTRAYAN

TM

Member's Present Condition :

Today, Mrs. Dipali Das, is a successful, skilled

economically and socially developed member for

Uttrayan. Currently, she along with her husband is

engaged in a grocery & stationery business.

Nowadays, she is living happily with her family. Her

sons are educated in a renowned school &

established in the society.

Success Story :

Before 2011 the member was living in a very small

house and the roof was covered with straw. Also

they had no fixed source of income. The member's

husband had first begun a small grocery shop in

their house until they came to know about Uttrayan

and took a first loan of Rs. 3000/- (Three thousand)

from Uttrayan. She is a member of Manlancha

group and gradually expanded the business with

new stocks. Due to untiring efforts of both

husband and wife with grocery business, they

were able to repay the loan in time and gradually

profit margin is in the higher side now.

Currently the member took a loan of Rs. 30,000 (Rs. Thirty thousand only) which changed the business structure to a big grocery shop made of brick. Now a day she has three room terraced house, well known to every body of the area, she got modern furniture, house hold needs like A.C Machine, Television, Motor bike etc. and thus make their life more comfortable. After achieving the good economical status she improves her social & economic status in the society. Both of her sons are now well established, her elder son has posted as senior officer in a renowned company and younger son is a storekeeper by profession.

Loan from other company :

At the current year, the member also took the loan of Rs. 40000/- (Forty Thousand) from Bandhan bank & timely make the repayment of loan.Group : Malancha

Dipali DasDipali DasDipali DasHusband Name : Bipul Das

Family Member : 2 Sons, Daughter in Laws

& 1 Grand Daughter

Address :

Uddan Pally, Batanagar, Mahestala,

South 24 Pgs. W.B.

Business : Grocery Shop

Branch Name : Chawrial


UTTRAYANUTTRAYAN

TM

Current Status :

Mrs. Shabina Bibi heals from a remote village at

South 24 Pgs & has hardly any source of income.

Currently she along with her husband engaged in nursery business (selling saplings) out of the loan taken from Uttrayan. Though years, the nursery production business helps to improve their

economic conditions. She lives with her two

daughters and a son, a small family. She is a socially responsible member. Her children are educated in a renowned school due to the successful business.

Growth Matrix :

She was living in a mud house having only one room. She has begun her nursery business after

taking a small loan of Rs. 5000/- from Uttrayan at

first phase.

Ms. Shabina Bibi has been sanctioned a loan of Rs.

30000/- & she carried out the nursery business

successfully and able to repay the loan in time. She has constructed three storied house now and she took modern gadgets like, TV, motor bike, refrigerator etc, and also she accumulated the

profit for future savings purposes. She fought

against poverty and proved as a successful entrepreneur and a socially responsible person.

Family Details :

Members are enjoying happily with her three children. Her elder daughter, Ms. Minara Khatun is studying in Class X and Mr. Sakib Khan (son)

and Ms. Sukriya Khatun (younger daughter) are

studying in class III and class I respectively.

Future Plans :

Member is focused to provide a good education for her children out of the income produced from her business. At present, 3-4 people per day has

worked in this nursery firm spead across 4 bigha

land which gives employment of 10-12 labourer in

seasonal time and it may produce near about 1 lakh saplings in a year. She wishes to scale up her business near future which could produce 1-1.5

lakh saplings by investing more or less 2 bigha

lands.

Loan Taken From Other Company :

The member is currently availed Rs. 150000/- loan from Bandhan Bank and Rs. 45000/- from Asa International & running her business smoothly.

Address :

Brindabanpur, Kamra, Nodakhali, 24 Pgs. (S), W.B.

Group : Sundari

Shabina BibiShabina BibiShabina BibiHusband Name : Mahiuddin Khan

Business : Nursery

Branch Name : Amtala


UTTRAYANUTTRAYAN

TM

Dear Shareholders,

Your Directors have pleasure in presenting their Director's Report of the Company together with the Audited stStatements of Accounts for the Company for the year ended 31 March, 2019.

1 FINANCIAL SUMMARY (Amount in Rs.)

ParticularsstAs at 31 March,

2019

stAs at 31 March, 2018

Total Revenue

Total Expenses

Profit or Loss before Exceptional and Extraordinary items and Tax

Less : Exceptional Items

Less : Extraordinary Items

Profit or Loss before Tax

Less : Current Tax

Deferred Tax

Profit or Loss After Tax

Add : Balance as per last Balance Sheet

Add : Adjustment of last year income Tax

Less : Adjustment for TDS and Provision of Earlier Years

Less : Transfer to Reserves

Less : Proposed dividend and Dividend tax (SIDBI)

Balance Transferred to Balance Sheet

48,38,20,364

39,64,76,773

8,73,43,591

-

-

8,73,43,591

2,46,61,501

(80,433)

6,27,62,523

7,03,33,544

-

-

1,25,52,505

37,97,640

11,67,45,922

36,70,62,706

28,90,69,645

7,79,93,061

-

-

7,79,93,061

2,27,19,927

(32,621)

5,53,05,755

2,98,91,161

7,39,322

1,80,658

1,10,61,151

43,60,884

7,03,33,544

DIVIDEND

The Company has paid dividend to SIDBI in compliance with the terms of investments of SIDBI @9% per annum for the year 2018-2019 for 35,00,000 nos. 9% Cumulative Optional Convertible Preference Shares of SIDBI and created provision for dividend distribution tax at applicable rate .

REVIEW OF BUSINESS OPERATIONS AND FUTURE PROSPECTS :

Your Board of Directors are very positive and confident about company's business of better outcome and results with increased revenue in succeeding year 2019-2020. There was no major change in the nature of business of the Company. The Company has achieved around Rupees One Hundred Ninety Three Crore as its own portfolio as against Rupees One Hunderd Forty Seven Crore in last year and earmarked a good track record of growth. The Company has achieved 22.09% growth in the overall portfolio managed by the Company with an increase of 31.13% growth in the own portfolio. Your company had started its operation in the states of Uttarakhand and Punjab and speading out its operation in 8 states, 38 districts and 87 branch in India in the Financial Year 2018-2019. The Board is very hopful of capturing more districts and states for expanding its business and providing services to the needy at large. Long Term Rating of the Company from BRICKWORK has rated BBB. Further Company has obtained new term loan from various Scheduled Banks/Financial Institutions incersing the working capital exposure and will assist in raising additional funds for furtherance of MFI Business. The management is hoping to reach total Asset Under Management of Rupees Three hundred Crores by the end of Financial year 2019-2020.

2

3


UTTRAYANUTTRAYAN

TM

MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT

No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statements relate on the date of this report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 in respect of conservation of energy and technology absorption have not been furnished considering the nature of activities undertaken by the company during the year under review. There was no foreign exchange inflow or Outflow during the year under review.

STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY

Risk Management is the process of identification, assessment and prioritization of risks followed by coordinated efforts to minimize, monitor and mitigate/control the probability and/or impact of unfortunate events or to maximise the realization of opportunities. The Company has laid down a comprehensive Risk Assessment and minimization procedure which is reviewed by the Board from time to time. These procedures are reviewed to ensure that executive management controls risk through means of a properly defined framework. The major risks have been identified by the Company and its mitigation process/measures have been formulated in the areas such as business, project execution, event, financial, human, environment and statutory compliance. However major concern perceived in the developent of the Company is seen as fresh Equity Capital which would enable the Company to maintain the Capital Adequecy Ratio and raise additional funds to keep the growth rate at the incresing levels.

DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The Company has formulated its Corporate Social Responsibility policy in line with the provisions contained under Section 135 of the Companies Act, 2013 & read with Rules made thereon. The Policy was framed by the CSR Commitee and approved by the Board. The CSR Comittte has been constituted in accordence with the Act. & comprising with two Directors namely, Mr. Kartick Biswas and Mr. Apu Dhar who are primarily responsible for ensuring the CSR policy framework, execution of CSR modalities and monitoring the CSR projects / activities to be carried out by the Company and shall furnish a report to the Board of Directors on the CSR initiatives time to time. The Company has conducted one (1) CSR Committee Meeting which was held

ston 31 October, 2018 during the financial year under review.

For the time being, Companys' CSR projects have been primarily focused on the following areas:

· Promoting health

· Promoting education

Prescribed CSR Expenditure( two percent of the average net profit of the preceding three financial year) : Rs. 9,52,688/-

Details of CSR spent during the financial year 2018-19;

(a) Total amount to be spent for the financial year 2018-2019: Rs. 9,52,688/-

(b) Amount spent : NIL

During the year under review, the CSR Committee of the Board comprising two executuive directors have been constituted and the Committee has framed the CSR Policy and recommended it to the Board for approval indicating the activities to be undertaken by the company or subjectes specified in Schedule VII of the Companies Act, 2013 which was approved by the Board.

The Company has not implemented any Corporate Social Responsibility initiatives as per the explanation given under e for the period 2018-2019, however company is carrying out certain CSR activity time to time with the borrowers which are largely rural women.

4

5

6

7


UTTRAYANUTTRAYAN

TM

EXPLANATION ON CSR UNSPENT

During the last quarter of the financial year and in July 2019, the Committee has recommended the CSR projects, areas of activities which can be undertaken by the Company, since these projects could be identified for implementation by the Company during the later part of the year, the total amount required to be spent as per regulatory requirements in 2018-2019 could not be done. Moreover, the Company is also considering various proposals for undertaking long term rural/urban/semi-urban/peri-urban community developments CSR initiatives though promoting healthcare and education activities. The above initiatives, when implemented, is expected to take care of the unspent amount of Rs. 9,52,688/- of earlier year i.e. 2018-2019 as soon as possible and also will go a long way in fulfilling the obligations of the Company towards CSR requirements for financial year 2019-2020 in letter and spirit. An annual report on CSR activities containg particulars specified in the CSR Rules is annexed as per annexture-II.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES

All transactions entered by the Company with the Related Parties were in the Ordinary Course of business and at Arms' length pricing basis. Therefore, the provisions of Section 188 of the Companies Act, 2013 were not attracted. Further, there are no materially significant related party transactions during the year under review made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Thus, disclosure in Form AOC-2 is not required.

EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS MADE BY THE AUDITORS AND THE PRACTICING COMPANY SECRETARY IN THEIR REPORTS

There are 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.

COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES

The provisions of Section 178(1) relating to constitution of Nomination and Remuneration Committee are not applicable to the Company. The Board of Directors has adopted the Directors Remuneration Policy in exercise of the powers granted thereto. The Company is committed to continuous improvement and alignment of the Director Remuneration Policy, adjusting them to the specific needs and circumstances of the Company.

EXTRACT OF ANNUAL RETURN

The extract of Annual Return in form no. MGT-9 as required under Section 92 of the Companies Act, 2013 for the financial year ending March 31, 2019 is annexed hereto as Annexure I and forms part of this report.

NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW

The Company has conducted 7 Board Meetings during the financial year under review. The details of the Board Meeting along with the director's attendance in the meetings held during this period are given under:

8

9

10

11

12

Mr. Kartick Biswas

Mr. Apu Dhar

Mr. Probindu Kumar Biswas (date of cessation 10.10.2018)


Mr. Anindya Sen

Mr. Arata Kumar Sahoo (date of cessation 15.01.2019)Mr. Tarakanta Mohapatra (date of appointment 15.01.2019)

Sl. No.

Whether attended at the Board Meeting held on (yes/No) :Name of the Directors Designation

10.04.2018 29.06.2018 31.07.2018 12.09.2018 31.10.2018 13.02.2019 14.03.2019

Managing Director1.

2.

3.

4.

5.

6.

7.

Director

Director



Yes

Yes

Yes

No.

-

Yes

Yes

Yes

Yes

Yes

No.

-

Yes

Yes

Yes

Yes

Yes

No.

-

Yes

Yes

Yes

Yes

Yes

No.

-

No.

Yes

Yes

Yes

Yes

No.

-

Yes

-

Yes

Yes

Yes

-

No.

Yes

-

Yes

Yes

Yes

-

No.

No.

-




UTTRAYANUTTRAYAN

TM

DIRECTORS RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submit its responsibility Statement:

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 and loss 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;

e) the Company being unlisted, sub clause (e) of section 134(3) of the Companies Act, 2013 pertaining

to laying down internal financial controls is not applicable to the Company; and

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.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary, Joint venture or Associate Company during the year under review.

DEPOSITS

The Company has neither accepted nor renewed any deposits during the year under review.

DIRECTORS

There has been change in composition of the Board during the year under review. Currently, the Board is comprising with five directors including among them two are executive, two non-executive and one nominee director (SIDBI) of the Company. During the period under review, the structure of the Board was changed in the following manner.

th Mr. Probindu Kumar Biswas, Director has resigned with effect from 10 October, 2018.

Mr. Tarakanta Mohapatra, Asst. General Manager, SIDBI as the Nominee Director representingth SIDBI was appointed in place of Shri. Arata Kumar Sahoo (since resigned) with effect from 15

January, 2019.

13

14

15

16

DECLARATION OF INDEPENDENT DIRECTORS

The provisions of Section 149 for appointment of Independent Directors do not apply to the company.

ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

The Company has in place adequate internal financial controls with reference to financial statements. During the year under review, such controls were tested and no reportable material weakness in the design or operation were observed.

STATUTORY AUDITORS

M/s. Ray & Ray, Chartered Accountants has been appointed in the Annual General Meeting held on 28.09.2018 as the Statutory Auditors for five years commencing from the Annual general Meeting to be held for Financial year 2018-2019 till the conclusion of Annual General Meeting to be held for Financial Year 2022-2023. Your Directors recommended for the ratification of appointment of the Statutory Auditor for the year 20119-2020 attached to the convening notice of Annual General Meeting.

DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM

The provisions of Section 177 of the Companies Act, 2013 read with Rule 6 and 7 of the Companies (Meetings of the Board and its Powers) Rules, 2013 is not applicable to the Company. However, the company had formed an Internal Audit Committee which conveyed five meetings in the Financial Year 2018-2019 on the follwing dates along with a detailed report of attendence of the directors is given below:

17

18

19

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UTTRAYANUTTRAYAN

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Name of the Directors.Date of the Audit Committee Meeting and the report of attendence (yes / No) :

10.04.2018 11.06.2018 07.08.2018 10.10.2018 18.02.2019

Mr. Kartick Biswas Yes Yes Yes Yes Yes

Mr. Bijon Kanti Choudhury Yes Yes Yes Yes Yes

Mr. Anindya Sen Yes Yes Yes Yes Yes

21

22

23

24

BANKING COMMITTEE OF THE BOARD OF DIRECTORS

The Committee of the Directors as the Banking Committee of the Company was formed for the purpose of approving the sanctions accorded by Banks/ Financial Institutions and other lenders as necessary to carry-out micro-credit on-lending operations. Pursuant to Section 179 (3)(d) & 179 (3)(f) of the Companies Act, 2013 the Banking Committee of Directors have been entrusted the powers to borrow monies from the Banks/ Financial Institutions and to grant loans or give guarantee or provide security in respect of loans which are in the nature of ordinary course of business. Initially, the Banking Committee is consists of three executive directors namely, Mr. Kartick Biswas, Mr. Apu Dhar and Probindu Kumar Biswas & the said composition was changed to two directors upon resignation of Mr. Probindu Kumar Biswas (effective from 10.10.2018) and consequently, the consent of both directors, Mr. Kartick Biswas and Mr. Apu Dhar shall be given to pass the relevant resolutions. In additions to this, the Banking Committee time to time examines and ensures various approvals as per the terms of reference of the Banking Committee. During this period under review, the Banking Committee has been conducted twenty (20) meetings on 20.04.2018, 30.04.2018, 15.05.2018, 19.06.2018, 02.07.2018, 22.07.2018, 27.07.2018, 10.09.2018, 26.09.2018, 24.12.2018, 07.01.2019, 25.01.2019, 29.01.2019, 04.02.2019, 18.02.2019, 28.02.2019, 20.03.2019, 22.03.2019, 26.03.2019 and 28.03.2019.

SHARES

During the year under review, the company has undertaken following transactions :

2,25,000 Equity Shares

Increase in Share Capital

Buy Back Sweat Equity Bonus SharesSplitting of Share

CertificatesTransfer of

SharesESOP

Nil Nil Nil Nil Nil Nil




Nil Nil Nil Nil Nil

Nil Nil Nil Nil Nil



75,000 Equity Shares

25,000 Equity Shares


Certificate No. 111 of 1,25,000 equity

shares splatted to Certificate No. 131

Certificate No. 111 of 1,25,000 equity

shares spilitted to Certificate No. 132

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS, COURTS AND TRIBUNALS

No significant and material order has been passed by the regulators, courts, tribunals impacting the going concern status and Company's operations in future.24

TRANSFER TO RESERVE

An amount of Rs.1,25,52,505/- equivalent to 20% of the net profit (after adjustment of Income Tax Liability and before Dividend) was during to the year transferred to Statutory Reserve fund U/S 45IC of the RBI Act, 1934. Balance of the Profit and Loss Account after the said transfer and other adjustments/ Dividend was transferred to Reserve and Surplus.


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DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

PROHIBITION & REDRESSAL) ACT, 2013

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 has been thnotified on 9 December, 2013. Under the said Act every company is required to set up an Internal Complaints

Committee to look into complaints relating to sexual harassment at work place of any women employee.

Company has adopted a policy for prevention of Sexual Harassment of Women at workplace and has set up

Committee for implementation of said policy. During the year Company has not received any complaint of

harassment.

HUMAN RESOURCES

Your Company treats its “human resources” as one of its most important assets.

Your Company continuously invest in attraction, retention and development of talent on an ongoing basis. A

number of programs that provide focused people attention are currently underway. Your Company thrust is

on the promotion of talent internally through job rotation and job enlargement.

ACKNOWLEDGEMENTS

Your Directors place on record their sincere thanks to bankers, business associates, consultants, and various

Government Authorities for their continued support extended to your Companies activities during the year

under review. Your Directors also acknowledges gratefully the shareholders for their support and confidence

reposed on your Company.

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For and on Behalf of the Board of Directors

thDate : 27 June, 2019Place : Kolkata

Kartick BiswasManaging Director(DIN : 02207249)

Apu DharDirector

(DIN : 01726461)


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Annexure I

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

REGISTRATION & OTHER DETAILS :

1.

2.

3.

4.

5.

6.

7.

CIN

Registration Date

Name of the Company

Category/Sub-category of

the Company

Address of the Registered

office & contact details

Whether listed company

Name, Address & contact details of the Registrar & Transfer Agent, if any.

U67120WB1995PTC071237

26/04/1995

Uttrayan Financial Services Private Limited

NBFC-MFI

CF-32, Salt Lake, Sector-1, Bidhan Nagar, North 24 Parganas, Kolkata- 700 064 Phone: 7044048874 Email: [email protected].

No

Not Applicable

PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

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

I

II

III

Sl. No.

Name and Description of main

products / servicesNIC Code of the Product/service

% to total turnover

of the company

1 Micro Finance 649 100%

SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) (ICategory-

wise Share Holding

Demat Physical Total % of Total Shares


No. of Shares held at the beginning

of the year [As on 1-April-2018]

No. of Shares held at the end of the year [As on 31-March-2019]Category of

Shareholders

% Change

during

the year

A. Promoters

(1) Indian

a) Individual/ HUF

b) Central Govt

c) State Govt(s)

d) Bodies Corp.

e) Banks / FI

16,52,800 16,52,800 52.09% --

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

28,74,950 28,74,950 90.61% 38.52%


UTTRAYANUTTRAYAN

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No. of Shares held at the beginning

of the year [As on 1-April-2018]

No. of Shares held at the end of the year [As on 31-March-2019]Category of

Shareholders

% Change

during

the year

16,52,800 16,52,800 52.09% --

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- - - -

-

28,74,950 28,74,950 90.61% 38.52%Total shareholding of Promoter (A)

B. Public Shareholding

1. Institutions

a) Mutual Funds

b) Banks / FI

c) Central Govt

d) State Govt(s)

e) Venture Capital Funds

f) Insurance Companies

g) FIIs

h) Foreign Venture Capital Funds

i 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 up to Rs. 1 lakh

ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh

c) Others (Trust)

Non Resident Indians

Overseas Corporate Bodies

Foreign Nationals

Clearing Members

Trusts

Foreign Bodies - D R

Sub-total (B)(2):-

Total Public Shareholding (B)=(B)(1)+ (B)(2)

C. Shares held by Custodian for GDRs & ADRs

Grand Total (A+B+C)

2,00,000 2,00,000 6.30% - 0 0 0% (6.30%)

14,300 14,300 0.45% - 14,300 14,300 0.45% 0.45%

4,73,500 4,73,500 14.92% - 2,83,500 2,83,500 8.93% (5.99%)

8,32,150 8,32,150 26.24% 0 0 0% (26.24%)

15,19,950 15,19,950 47.91% 2,97,800 2,97,800 9.39% (38.52)%

15,19,950 15,19,950 47.91% 2,97,800 2,97,800 9.39% (38.52)%

31,72,750 31,72,750 100% 31,72,750 31,72,750 100%


UTTRAYANUTTRAYAN

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��

(ii) Shareholding of Promoters -

SNShareholder's

Name

Shareholding at the beginning of the year

Shareholding at the end of the year

% change in

shareholding

during the yearNo. of Shares

% of total Shares of

the company

% of Shares Pledged /

encumbered to total shares

No. of

Shares

% of total Shares of

the company

%of Shares

Pledged /

encumbered

to total

shares

1

2

3

4

5

6

Kartick Biswas 5,92,000 18.66% Nil 10,55,550 33.27% Nil 14.61%

Apu Dhar 4,87,000 15.35% Nil 10,39,500 32.76% Nil 17.41%

Soma Biswas 4,44,600 14% Nil 6,50,700 20.51% Nil 6.51%

Ranu Dhar 40,000 1.26% Nil 40,000 1.26% Nil -

Arup Das 29,200 0.92% Nil 29,200 0.92% Nil -

Raghubibha Sen 60,000 1.89% Nil 60,000 1.89% Nil -

TOTAL 16,52,800 52.09% Nil 28,74,950 90.61% Nil -

(iii) Change in Promoters' Shareholding (please specify, if there is no change)


Cumulative Shareholding during the year

ParticularsSNNo. of shares No. of

shares

% of totalshares of

thecompany

% of totalshares of

thecompany

Mr. Kartick Biswas (Folio No.42)1

At the beginning of the year 5,92,000 18.66% 5,92,000 18.66%

Date wise increase/decrease inPromoters Share holding during the year specifying the reasons for increase/decrease (e.g.allotment/transfer/bonus/sweat equity etc)

Date:31/07/2018 Increase in Shareholding due to Transfer

of 76,400 Equity shares from Sampark (Folio No. 73)

2.40% 6,68,400 21.06%

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)

Date:31/07/2018 Increase in Shareholding due to Transfer

of 2,15,150 Equity shares from Srijanee Foundation

(Folio No. 62)

6.78% 8,83,550 27.84%

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)

Date:12/09/2018 Increase in Shareholding due to Transfer of 30,000 Equity shares from

Probindu Kumar Biswas (Folio No. 69)

0.94% 9,13,550 28.79%


Date:12/09/2018 Increase in Shareholding due to Transfer of 7,000 Equity shares from Shubendhu Shekhar Biswas

(Folio No. 72)

0.22% 9,20,550 29.01%



Baikantha Nath Biswas (Folio No. 67)

0.63% 9,40,550 29.64%


Date:12/09/2018 Increase in hareholding due to Transfer of 8,000 Equity shares from

Mrinalini Biswas (Folio No. 68)

0.25% 9,48,550 29.89%


UTTRAYANUTTRAYAN

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shares

% of totalshares of

thecompany

% of totalshares of

thecompany



Sraboni Biswas (Folio No. 70)

0.22% 9,55,550 30.11%



Kedia Trades & Agencies Private Limited (Folio No. 58)

2.36% 10,30,550 32.48%


Date:14/03/2019 Increase in Shareholding due to Transfer of 25,000 Equity shares from Arihant Enterprises Limited

(Folio No. 74)

0.78% 10,55,550 33.27%

At the end of the year 10,55,550 33.27% 10,55,550 33.27%

Mrs. Soma Biswas (Folio No.43)2



Date: 31/07/2018 Increase in Shareholding due to Transfer of 36,100 Equity shares from

Sampark (Folio No. 73)

1.13% 4,80,700 15.15%


Date: 31/07/2018 Increase in shareholding due to Transfer of 92,000 Equity shares from

Srijanee Foundation (Folio No. 62)

2.89% 5,72,700 18.05%




0.78% 5,97,700 18.83%



Baikantha Nath Biswas (Folio No. 67)

0.78% 6,22,700 19.62%




0.15% 6,27,700 19.78%


Date: 12/09/2018 Increase in shareholding due to Transfer of 23,000 Equity shares from Sraboni Biswas (Folio No. 70)

0.72% 6,50,700 20.51%

At the end of the year 6,50,700 20.51% 6,50,700 20.51%


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shares

% of totalshares of

thecompany

% of totalshares of

thecompany

Mr. Arup Das (Folio No.44)3

4

5

At the beginning of the year 29,200 0.92% 29,200 0.92%


0 0 0 0

At the end of the year 29,200 0.92% 29,200 0.92%

Mr. Apu Dhar (Folio No.48)



Date: 31/07/2018 Increase in shareholding due to Transfer

of 1,12,500 Equity shares from Sampark (Folio No. 73)

3.54% 5,99,500 18.89%


Date: 31/07/2018 Increase in shareholding due to Transfer

of 1,90,000 Equity shares from Srijanee Foundations

(Folio No. 62)

5.98% 7,89,500 24.88%




1.73% 8,44,500 26.61%


Date: 12/09/2018 Increase in shareholding due to Transfer of 43,000 Equity shares from Shubendhu Shekhar Biswas

(Folio No. 72)

1.35% 8,87,500 27.97%




0.92% 9,17,000 28.90%



Tanushri Biswas (Folio No. 71)

0.70% 9,39,500 29.61%

Date wise increase/decrease in Promoters Share holding during the year specifying the reasons for increase/decreas