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NOTICE
Notice is hereby given that the Ninth Annual General Meeting of the Members of SVATANTRA MICROFIN PRIVATE LIMITED will be held on Wednesday, the 30" day of December, 2020 at 09.30 A.M. at the Registered Office of the Company at Level 20, Sunshine Tower, Senapati Bapat Marg, Elphinstone Road, Mumbai — 400 013 to transact the following business:
ORDINARY BUSINESS:
1. Adoption of Audited Accounts:
To receive, consider and adopt the Balance Sheet as at 31*' March, 2020 along with the Profit and Loss Statement for the year ending on that date, Cash Flow Statement, the Notes and Schedules thereon along with the Auditor’s Report and Director’s Report thereon.
2. To appoint and fix the remuneration of Statutory Auditors:
To consider and, if though fit, to pass the following resolution as an Ordinary Resolution:- “RESOLVED THAT pursuant to the provision of section 139 and other applicable provision if any of the Companies Act, 2013 read with the underlying rules viz. Companies ( Audit And Auditors } Rules, 2014 as may be applicable, the retiring auditors M/s. Suresh Sarana & Associates LLP, Chartered Accountants having Registration No. 121750W/W-100610, be and are hereby re-appointed as Statutory Auditors of the Company to hold office from the conclusion of this Annual General Meeting until the conclusion of the Annual General Meeting (AGM) of the Company to be held in the year 2021 at a remuneration (including term of Payment) to be fixed by the Board of Director of the Company, plus GST and such other tax(es), as may be applicable & reimbursement of all out-of-pocket expenses in connection with the Audit of the accounts of the Company.”
By Order of the Board of Directors of SVATANFRA MICROFIN PRIVATE LIMITED Ge ie (MUMBAI PFT! YOe SN JS)! ee 82 . 4 & . = (Surinder Kumar Bhatia) Company Secretary M. No.: ACS-17227 Date: 14.12.2020 Place: Mumbai
Svatantra Microfin Pvt.Ltd. Telephone +912261415900 Corporate& Regd. Oifice: Sunshine Tower, Website www.svatantramicrofin.com Levelzo, $.B, Marg, Elphinstone Road, E-mail [email protected] Mumbai 4o0014. Maharashtra Corporateldentity No. U74120MH2012PTC227069
NOTES:
A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING (THE “MEETING”) IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE ON A POLL INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A MEMBER OF THE COMPANY. THE INSTRUMENT APPOINTING THE PROXY SHOULD HOWEVER BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN FORTY-EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING.
A PERSON CAN ACT AS A PROXY ON BEHALF OF MEMBERS NOT EXCEEDING FIFTY AND HOLDING IN THE AGGREGATE NOT MORE THAN TEN PERCENT OF THE TOTAL SHARE CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS. A MEMBER HOLDING MORE THAN TEN PERCENT OF THE FOTAL SHARE CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS MAY APPOINT A SINGLE PERSON AS PROXY AND SUCH PERSON SHALL NOT ACT AS PROXY FOR ANY OTHER PERSON OR SHAREHOLDER. Members/Proxies are requested to bring in duly filled Attendance Slip attached herewith to attend the Meeting.
An Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 relating to the special business to be transacted at the Annual General Meeting (AGM) is annexed hereto and forms part of this Notice.
Members are requested to bring their copy of the Notices at the Annual General Meeting. Map to the Venue of the AGM as per the requirement of Secretarial Standard - 2 is attached for the perusal of the Members. Form No. MGT-11 SVATANTRA MICROFIN PRIVATE LIMITED
Registered Office: Level 20, Sunshine Towers, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013 (CIN: U74120MH2012PTC227069)
PROXY FORM [Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]
Name of the member(s):
Registered address:
E-mail ID:
Folio No./DP ID: Client 1D:
I/We, being the member(s) of ....0...... shares of the above named company, hereby appoint:
1. Name: ...
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Annual General Meeting of the Company, to be held at Level 20, Sunshine Tower, Senapati Bapat Marg, Elphinstone Road, Mumbai- 400 013 on Wednesday, the 30" day of December, 2020 at 09.30 A.M., and at any adjournment thereof in respect of such resolutions as are indicated below:
*]/We wish my/our above proxy(ies} to vote in the manner as indicated in the bex below:
Item Description For Against No. lL. Adoption of Audited Accounts 2. To appoint and fix the remuneration of Statutory Auditors
Affix Revenue Signed ChS.....ccscsscesesssessescssccsessssatseseseesesseens day Of veces 2020 Stamp of Re. I
Signature of Proxy holder(s) Signature of shareholder
SVATANTRA MICROFIN PRIVATE LIMITED
Registered Office: Level 20, Sunshine Towers, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013 (CIN: U74120MH2012PTC227069)
Attendance Slip
Annual General Meeting at Level- 20, Sunshine Tower, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013, Maharashtra on Wednesday, the 30" December, 2020 at 09.30 A.M.
Folio DP ID Client ID Number of No. Shares held
I certify that | am a member/proxy/authorized representative for the member of the Company.
Member/Proxy/Representative’s Signature
Note: Please fill this attendance slip and hand it over at the entrance of the Meeting Room. Only member/proxy/representative can attend the meeting. ROUTE MAP
EEN PURGE SRA Secs oie
DIRECTORS’ REPORT
To, The Members, Svatanira Micrefin Private Limited
Your Directors have pleasure in presenting their Ninth Annual Report on the business and operations of the Company and the accounts for the financial year ended March 31, 2020.
1. FINANCIAL PERFORMANCE:
The summary of the Financial Results of the Company for the Financial Year 2019-20 is as follows:
AmountIn Bs,
PARTICULARS 31 March, 2020 34" March, 2619 Income
Revenue from operation 3,546,959,412 1,760,843,350 Other Income ao aye
Less: Total Expenditure 3,115,652,325 1,547,735,419
Profit / Loss Before Exceptional items, Extraordinary Items end Tax Exceptional Item
Extraordinary Item
Profit/ (Loss) Before Tax
Less: Current Tax MAT Credit Entitlement - Less: Deferred tax income/Expenses
Earlier Year deferred tax benefit/(Charge) Earlier Year tax adjustment Profit/Loss for the year 363,248,793 166,604,547
2. OPERATIONS AND FUTURE OUTLOOK AND STATE OF COMPANY’S AFFAIRS:
During the year under review, the Company has earned a total Income of Rs. 3,546,959,412/- (Rupees Three Hundred Fifty Four Crores Sixty Nine Lacs Fifty Nine Thousand Four Hundred and Twelve Only) and Net Profit of Rs. 363,248,793/- (Rupees Thirty Six Crores Thirty Two Lacs Forty Eight Thousand Seven Hundred and Ninety Three Only), as against a Net Profit of Rs. 166,604,547/- (Rupees Sixteen Crores Sixty Six Lacs Four Thousand Five Hundred and Forty Seven Only) in the Financial Year 2018-19.
DIVIDEND:
In view of planned business growth and in order to conserve resources, your Directors do not propose and recommend any dividend on the Equity Shares of the Company, for the year under review.
TRANSFER TO RESERVES:
During the year under review, your Company transferred Rs. 72,649,800/- (Rupees Seven Crores Twenty Six Lacs Forty Nine Thousand Eight Hundred Only) ta Statutory Reserve pursuant to Section 45-IC of the Reserve Bank of India Act, 1934.
BRIEF DESCRIPTION OF THE COMPANY'S WORKING DURING THE YEAR:
The Company is registered with Reserve Bank of India (RBI) as Non- Deposit accepting NBFC-MF] vide Registration No. N-13.02038 granted on February 05, 2013.
The Company attained business performance by reaching out to 1,032,242 active loan clients as on
March 31, 2020. The active loan clients grew from 560,931 as on March 31, 2019 to 1,032,242 as on March 31, 2020.
This incredible growth was possible with excellent efforts of 3927 employees of the Company as on 319 March 2020, which was 2487 as on 31" March 2019, through 449 branches across 14 States. During the year under review, the Company opened 174 new branches.
CHANGE IN NATURE OF BUSINESS, IF ANY:
There was no change in the nature of business during the year under zeview.
DEPOSITS:
The Company had not accepted any public deposits during the year within the meaning of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions 1998.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STAT ES RELATE AND THE DATE OF THE REPORT:
Due to the pandemic COVID-19, all the field operations of the Company were suspended during the period of lockdown. In terms of the Reserve Bank of India Circular DOR.No BP. BC.47/21.04.048/2019-20 and the advisory issued by the Microfinance Institutions Network, the Company took the measures to mitigate the disruptions on account of COVID-19 pandemic and to
ensure the continuity of viable businesses. Based on the RBI guidelines the Company has extended moratorium benefits te its customers.
The Company is planning to restart‘ has slowly started opening of the operations taking care of the infrastructure requirements and creating advisory as per local laws. An emergency team has also been created to handle the health related exigencies arising out of COVID.
To sustain the business operations, the Company has availed/identified various avenues to avail liquidity and is in a comfortable position in this regard.
The management has, at the time of approving the financial statements, assessed the potential impact of the COVID-19 on the Company. Barring any future COVID-19 related escalations, based on the current assessment, the management is of the view that impact of COVID-19 on the operations of the Company and the carrying value of its assets and liabilities is not likely to be material.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR CGURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE:
There were no significant or material orders passed by any Courts or Regulators or Tribunals during the Financial Year 2019-20 that, in the opinion of the Board, have an impact on the going concern status aad the operations of the Company in the future.
10. DETAILS OF SUBSIDIARY/JOINT. VENTURES/ASSOCIATE COMPANIES:
The Company does not have any Subsidiary/Joint Venture/Associate Companies as on date of Balance Sheet and the date of Report. ii. SHARE CAPITAL:
a. Authorised Share Capital:
During the year under review, the Authorised Share Capital of the Company has been increased from Rs. 1,800,000,000/- (Rupees One Hundred Eighty Crores Only) divided into 186,006,000 (Eighteen Crores) Equity Shares of Rs. 10/- (Rupees Ten Only) each to Rs. 10,550,000,000/- (Rupees One Thousand Fifty Five Crores Only} divided into 755,000,000 (Seventy Five Crore Fifty Lacs) Equity Shares of Rs. 10/- (Rupees Tet only} each and 30,000,000 (Three Crore} Preference Shares of Rs. 100/- (Rupees Hundred Only) each.
b. Paid-up Share Capital:
The paid-up capital of the Company as on 31" March, 2020 is Rs. 3,320,468,750/- (Rupees Three Hundred Thirty-Two Crores Four Lacs Sixty-Eight Thousand Seven Hundred and Fifty Ouly) divided into 252,046,875 (Twenty Five Crores Twenty Lacs Forty Six Thousand Eight Hundred and Seventy Five) Equity shares of Rs. 10/- (Rupees Ten Only} each and 8,000,000 (Eighty lacs) Preference Shares of Rs. 100/. (Rupees Hundred only) each. During the year under review, the Company has made following allotment:
Sr. ; Security Type of | Date of | No, of ; Issue Amount Ne Issue allotment securities | Price (in Rs.} allotted Per Security 1. | Equity Rights Issue | 20.05.2019 | 40,000,000 | Rs. 10/- | 400,000,000/- Shares 2, | Equity Rights Issue | 30.09.2019 | 40,000,000 | Rs. 10- | 400,000,000 Shares
3. | Preference | Rights Issue | 16.01.2020 2,506,000 | Rs. 100/- | 250,000,600/- Shares
4 | Preference | Rights Issue | 10.02.2020 | 2,500,000 | Rs. 100/- | 250,000,000/. Shares
5. | Preference | Rightsissue | 31.03.2020 3,000,000 | Rs. 100/- | 300,600,000/- Shares
e Non-convertible Debentures:
During the year under review, the Company has issued Non-convertible Debentures (NCD) on private placement basis aggregating to Rs. 15 Crores as per following details —
Date of Name of No. ef Price | Coupon Maturity Status allotment Allottee NCDs per Rate Date
NCD 31.03.202 | Viveni 15,000,00 |) Rs. 10/- | 13.75% | 31.03.2026 | Unlisted 0 Samarth Bond : 0 Fund through its trustee, Vistra ITCL(India) i Limited
12. ISSUE OF SHARES UNDER EMPLOYEE STOCK OPTION SCHEME:
The Company has a stock option plan under ‘Svatantm Microfin Employee Stock Options Plan 2017 (“ESOP 2017”) for its employees. As on March 31, 2020, the following stock option grants were in operation:
INumber of options granted during the year 473,753
Number of options vested during the year Nil
Number of options exercised during the year Nil Total number of shares arising as a result of exercise of option during the Nil ~ year
Options lapsed during the year 17,517 Exercise price Rs. 20.00/-
| Variation of terms of options Nil Money realized by exercise of options Nil | Total number of options in force 942,859
Employee wise details of the options granted to:
i. Key Managerial Personnel —
“Name Desiguation Options Granted Exercise Price Mr. Annjeet Varadkar Chief Executive Officer 48,119 20 (CEQ) Ms. Viuskali Vishal | Chief Financial Officer 35,433 20 Mahajan (CFO)
Mr. Surinder Kumar; Company Secretary (CS) 26,247 20 Bhatia
ii, Any employee who receives 4 grant of option in any one year of option amounting to 5% or More of options granted during that year —
In the Financial Year 2019-20
Name of Employee No. of options granted
Vineet Chatiree 42,870
Anujeet Varadkar 48,119 Vrushali Vishal Mahajan "35,433 Kranti Sety 25,809 Surinder Kumar Bhatia 26,247
Pankaj Manikrao Aundhkar 31,059
iii. Employees who were granted options during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant
In the Financial Year 2019-20 Name of Employee No. of options granted
weet NIL NL i
i. DISCLOSURE REGARDING COST RECORDS:
The Central Government has not specified the maintenance of cost records under Section 148(1} of the Companies Act, 2013 for any of the products of the Company, as such maintenance of cost records is not applicable for the company.
14. STATUTORY AUDITORS:
In terms of the Provisions of Section 139 and 141 read with Companies (Audit and Auditors} Rules, 2014 as amended from time to time, the Statutory Auditors of the Company, “Suresh Surana & Associates LLP, Chartered Accountants” [Firm Registration No. 121750W/W-100010], were appointed in the Annual general Meeting of the Company held on 30" September, 2015 as Statutory Auditors of the company to hold office for a term of five years until the conclusion of the Annual General Meeting to be held in year 2020.
As per Companies (Audit and Auditors) Rules, 2014, The tenure of Statutory Auditors of the Company is left for one more Financial Year and accordingly, the appointment of “Suresh Surana & Associates LLP, Chartered Accountants” as Statutory Auditors of the Company for FY 2020-21 wiil be taken up in ensuing Annual General Meeting of the Company.
15. AUDIFOR’S REPORT:
Suresh Surana & Associates LLP, Chartered Accountants (Firm Registration No. 121750 W/W- 100010], Statutory Auditors for the Company who conducted the audit for the financial year 2019-20 have submitted their report. The Notes on the Financial Statements refer to the report are self- explanatory and do not call for any further comments.
There are no qualifications or adverse remarks in the Auditor’s Report which require any clarification‘explanation,
16. EXTRACT OF THE ANNUAL RETURN;
The extract of the Annual Return in Form MGT-9 is annexed herewith as “ANNEXURE A” and is also available on the Company’s website at htips://svatantramicrofin.com/,
17, DIRECTORS AND KEY MANAGERIAL PERSONNEL:
a. Composition of Board of Directors:
As on 31* March, 2020, the Board of the Company is duly constituted as per the Companies Aci, 2013, with the following as its Members:
Mr. Kumar Mangalam Birla - Director Mrs. Neerja Birla - Director Ms. Ananyashree Birla - Chairperson & Director Mr. Vineet Bijendra Chattree = - Director
All the directors of the Company has diversified experience and specialized knowledge in various areas relevant to the Company.
b. Changes in the Composition of Board of Directors:
During the year under review, there is no change in composition of Board of Directors.
c Board Evaluation:
Pursuant to the provisions of the Companies Act, 2013, a separate exercise was carried aut to evaluate the performance of individual Directors including the Chairperson of the Board, who was evaluated on parameters such as level of engagement and contribution and independence of judgment to safeguard the interest of the Company and its minority shareholders. The reports were scrutinized by the Nomination & Remuneration Commitice. The Directors expressed satisfaction with the evaluation process.
d. Key Managerial Personnel:
Mrs. Vrushali Vishal Mahajan was appointed as Chief Financial Officer (CFO) of the Company w.e.f. 30 May, 2020. The following are the Key Managerial Personnel as on date of this report:
Mr. Anujeet Varadkar. - Chief Executive Officer
Mrs. Vrushali Vishal Mahajan - Chief Financial Officer
Mr. Surinder Kumar Bhatia. ~ Company Secretary.
18. NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS:
During the financial year ended on 31" March, 2020, 20 (Twenty) Meetings of the Board of Directors of the Company were held. The attendance of the Board of Directors in these Meetings were as follows:
Sr. No. of the Board Date of the Board Meeting No. of Directors Present _ Na, Meeting 1. 1/2019-20 05.04.2019 4 2. 2/2019-20 19. 04.3019 3 3. 3/2019-20 25.04.2019 3 4, 4/2019-20 20.05.2019 - 3 5. 5/2019-20 25.06.2019 3 6 6/2019-20 24.07.2019 3 7 7/2019-20 08.08.2019 3 8 8/2019-20 21.08.2019 3 9 9/2019-20 27.08.2019 3 10 10/2019-20 26.09.2019 3 li 11/2019-26 30. 09.2019 3 12 12/2019-20 18. 10.2019 3 13 13/2019-20 31.10.2019 3 “1 4 14/2019-20 32.11.2019 3 15 15/2019-20 12. 12.2019 3 16 ~~ 16/2019-20 16.07.2020 2 17 17/2019-20 16. 02.2020 “ 2 18 ”18/2019-20 28.02.2020 2 ~ 19 19/2019-20 06.03.2020 ~ 2 20 26/2019-20 20. 03.2020 2 ”
Name of Directors No of Board Meetings during FY 2019-20 Heid Eligible to altend Attended Mr. Kumar Mangalam Birla 20 20 2 Mis. Neerja Birla 20 20 20 Ms, Ananyashree Birla 20 20 15 Mr, Vineet Bijendra Chattrec 20 20 19
&
19. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The details of conservation of energy, technology absorption, foreign exchange earnings and outgo are as follows: .
a Conservation of energy, Technotogy absorption:
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.
bh, Foreign exchange earnings and Outgo:
The Company neither had any foreign exchange earings nor any outgo during the year under review.
20, PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
During the year under review the Company has extended Inter Corporate loan{s) amounting to Rs. 65,00,00,000/- (Rupees Sixty Five Crores) and complied with the necessary regulatory guidelines in this regards,
The Company has not made any investment(s} or provided guarantee(s) as covered under Section 186 of the Companies Act, 2013.
21. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
All tansactions entered into with related parties as defined in the Companies Act 2013, during the year under review, were in the ordinary course of business and at an arm’s length pricing basis. The details related to the same are annexed as “ANNEXURE B" in Form AOQC-2,
The policy on Related Party Transactions, as approved by the Board, is displayed on the website of the Company ‘Le. https://svatantramicrofin.com/.
22. PARTICULARS OF EMPLOYEES:
The Company had 3927 employees as on March 31, 2020. The Company does not have any employee whose particulars are required to be furnished under Rule 5 of Companics (Appointment and Remuneration of Managerial Personnel} Rules, 2014.
CORPORATE SOCIAL RESPONSIBILITY:
In accordance with Section 135 of the Companies Act, 2013, the Company bas constituted a Corporate Social Responsibility (CSR} Committee consisting of the following Members:
Ms. Ananyashree Birla Director Mrs. Neerja Birla Director Mr. Vineet Bijendra Chattree Director
The brief outline of the CSR Policy of the Company and the initiative undertaken by the Company on CSR activities are set out in “4ANNEXURE C” and forms part of this Report.
DIRECTORS’ RESPONSIBILITY STATEMENT:
Pursuant to the requirement clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, your Directors confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) the directors had selected such accounting policies and applied them consistently and made jedgments 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:
(@ the directors had prepared the annual accounts on a going concem basis;
(e) 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.
25, DETAILS OF ESTABLISHMENT OF VIGH. MECHANISM/WHISTLE BLOWER FOR DIRECTORS AND EMPLOYEES:
Your Company has an effective Vigil Mechanism system/ Whistle Blower which is embedded in its Code of Conduct. The Code of Conduct of your Company serves as a guide for daily business interactions, reflecting your Company’s standard for appropriate behavior and living Corporate Values. The Code of Conduct applies to all Svatantra’s People, including Directors, Officers, and all employees
of the Company.
The Vigil Mechanism system/ Whistle Blower code is displayed on the Company’s website at https://svatantramicrofin.cony/,
26. MANAGEMENT DISCUSSION AND ANALYSIS:
The Management Discussion and Analysis Report for the year under review is presented in “ANNEXURE DBD”, which is a part of this report.
27. CREDIT RATING AND GRADING;
During the year under review, the Credit Rating Agencies have assigned the following credit ratings to the Company:
. Particulars Rating
i MFI Grading MI (ICRA)
2 Bank loan rating CRISIL A+ (Stable) 3 Subordinated Debt of Rs. 75 Crores CRISIL A+ (Stable) ICRA A- (Stable) 4 Rs. 100 Crore Short Tenn Debt CRISIL Al+
During the year, there are no migration of above mentioned ratings.
23. RISK MANAGEMENT:
The Board of Directors of the Company has constituted a Risk Management Committee to frame, implement, and monitor the risk management plan for the Company. The committee will be responsible for reviewing the risk management plan, ensuring its effectiveness and verifying adherence to various risk parameters. The Company's Risk Management strategy is based on clear understanding of various tisks, disciplined risk assessment and continuous monitoring. The Risk Management Committee reviews various risks with which the organization is exposed including Credit Risk, Interest Rate Risk, Liquidity Risk and Operational Risk. The development and implementation of risk management policy has been covered in the Management Discussion and Analysis in Annexure D, which is a part of this report.
29, INTERNAL FINANCIAL CONTROLS:
A benchmark of internal control system, based on suitable criteria, is in place to enable the management to assess and state adequacy of and compliance with the system of internal control and operating
effectively. Internal control of the Company is a well-defined process designed to facilitate and support the achievement of business objectives. The system of internal control is integral to the activities of the Company and based on a consideration of significant risks in operations, compliance and financial reporting.
The Company has an effective internal control process effected by its people that supports the organization in several waya, enabling it to provide reasonable assurance regarding risk and to assist in the achievement of objectives.
‘The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s policies, safeguarding of its assets, prevention and detection of frand, error reporting mechanism, accuracy and completeness of the accounting record and timely preparation of reliable financial disclosures.
30. COMPLIANCE OF APPLICABLE LAWS AND SECRETARIAL STANDARDS;
The Board of Directors hereby declare that the Company is in compliance of the provisions of all applicable mandatory Secretarial Standards issued by Institute of Company Secretaries of India (ICSD) and the Securities Law, RBI Act and other Jaws as applicable to the Company.
31. DISCLOSURES UND SEXUAL SMENT OF WOMAN AT WORKPLAC (PREVENTION, PROHIBITION & REDRESSAL} ACT, 2013:
Pursuant to the requirements of Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013, your Company has a policy and framework for employees to report sexual harassment cases at workplace and our process ensures complete anonymity atid confidentiality of information. Adequate workshops and awareness programmes against sexual harassment are conducted across the organization.
No complaints were received during the financial year 2019-20,
32. OTHER DISCLOSURES:
a. Details of Frauds reported by the Statutory Auditors under Section 143 (12) of the Companies Act, 2013 during the Financial Year:
During the year under review, no frauds were reported by the Statutory Auditors, requiring intimation under Section 143 (12) of the Companies Act, 2013, for the Company and therefore no details are required to be disclosed under Section 134(3)(ca} of the Companies Act, 2013.
b. Sweat Equity Shares issued during the Year: The Company has not issued any Sweat Equity Shares during the Financial Year under review.
c. There has not been any revision in the financial statements.
33. RBI GUIDELINES:
The Company is registered with the Reserve Bank of india as a NBFC-MFI within the provisions of the NBFC (Reserve Bank of India} Directions, 1998. The Company continues to comply with all the requirements prescribed by the Reserve Bank of India as applicable to it.
34, ACKNOWLEDGEMENTS:
The Board of Directors of the Company takes this opportunity to express its deep and sincere gratitude for the support and co-operation from the Borrowers, Banks, Financial Institutions, Investors, and Employees of the Company, for their consistent support and encouragement to the Company. The Board of Directors aiso places on record its sincere appreciation of the commitment and hard work put in by the Management and the employees of the Company and thanks them for yet another excellent year. Their dedication and competence has ensured that the Company continues to be a significant player in the Microfinance industry.
FOR SVATANTRA MICROFIN PRIVATE LIMITED ib
ANANYASHREE BIRLA (CHAIRPERSON) DIN; 06625036
tho. Dats @ 5 Tung ; 2x28 Place: Mumbai
*Annexure A”
FORM NO, MGT 9
EXTRACT OF ANNUAL RETURN
as on financial year ended on 31,03,.2020
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(f} of the Company (Management & Administration ) Rules, 2014
_ REGISTRATION & OTHER DETAILS:
i CIN U74120MH201 2PTC227069
Hi Registration Date 47-02-2012
ii | Name of the Company SVATANTRA MICROFIN PRIVATE LIMITED Company limited by Shates/Indian Non Govt Company iv | Category/Sub-category of the Company
Address of the Registered office Sunshine Towes, Level 20, Senapati Bapat Marg, Elphinstone ¥ & contact details Road, Mumbai- 400013 Tel Now: +91 22 64415900
vi | Whether listed company Na
Adroit Corporate Services Private Limited vii Name , Address & contact details of the Registrar & Transfer 19-20, Jaferbhoy Industrial Estate, ist Floor, Makwana Read, Agent, if any. Marol, Andheri (East), Mumbai — 400059 Contact: +91 22 42270400
TL | PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10% or more of the total tumover of the company shall be stated
SL Name & Description of main NIC Code of the % to total eumover No j products/services Product/ Service of the company
1 MICROFINANCE 64990 10%
| TEL PARTICULARS OF HOLDING, SUBSIDIARY & ASSOCIATE COMPANIES
HOLDING/ "OF x Name & Address of the Company CIN/GLN | SUBSIDIARY/ sHARES | “EDen ° ASSOCIATE HELD
- NA NLA Nua. NLA. N.A.
TV fa) SHAREHOLDING PATIERN (Equity Share ca ital Break up as % to total Equiry) % change No, of Shares held at the beginning of the yeac No, of Shares held at the end of the year during Category of the Shareholders year
% of | “of Demat Physical Total Toral Demat Physical Total Total Shares | Shares
A. Promoters it a . _
(4) Indian - nncecceesevenanefuemie severance fe oe
a) Individual/HUF Co. a od 20,99,46,874 a 20,99,46,874 | 83.30 | 83.30
b) Central Govt. or Stace Govt. 0 o oO 9 0 6 0 0.00 o ¢) Bodies Cosporates 17,20,46,875 | 17,20,46,875 | 100,00 | 4,21,00,001 0 i 4,21,00,001 16.70 | -75.53
d} Bank/FI 0 0 0 Q 0 0 q 9 0
é) Any other 0 0 0 0 6 0 G 9 0
SUB TOTAL-(A) iis 0 17,20,46,875 | 17,20,46,875 | 100.00 | 25,20,46,875 0 25,20,46,875 | 100.00 VAT
(2) Foreign iL
ai NRI- Individuals 0 a a 0 0 0 6 0 0
b) Other Individuals 0 0 0 0 Q 0 a 0 A
9) Bodies Corp dO Oc OO o 0 snd 0 o
_a) Banks /FI a 0 0 0 0 5 oO 0 a
e) Anv other... 0 0 0 0 0 o 6 0 6
SUB TOTAL {A} (2) 0 a 0 6 0 Q 0 0 6
‘Fotal Shareholding of Promoter 0 17,20,46,875 | 17,20,46,875 | 100.00 | 25,20,46,875 G 25,20,46,875 | 100.00 | 46.50 A= M+)
B. PUBLIC SHAREHOLDING
j—.
(1) Exstitutions
|_a} Mutual Funds 0 0 ) 0 0 0 4
pyBanks/AL | a 0 a of 0 oj Central Gover Oo 0 0 0 0 0 8 |
dj State Gove. o Q 0 0 o G 0 e) Venture Capital Fund 0 9
f) Tasurance Companies Q 0 0
a a) FIs . Q a o b y Foreign Venture Capital Pands 0 0 0
Othe a
~ Foretom Trust 6.00 0 0.00 - Private Equity Fund | 0.00 0 6.00
SUB TOTAL (By): 0.00 0 0.00
(2) Non Institutions
a) Bodies corporares
4) Indian 0.00 0 9.00
i) Overseas 0 a 0
bi Individuals 2) Individual sharehoklers holding nominal share capital upto Rs.1 lakhs 0.00 0 0.00
t inetiveidals shareholders holding nonunal share capital in excess of Ra. 1 0.00 6 0.00 lakbs
o) Others Ss
- Trusts 6.00 9 0.00 SUB TOTAL (B)(2): 0.00 a 6.00
Total Public Shareholding 0 0 0 6.00 0 6 0 0.00 0.60 (B)= (B+ (BZ)
C. Shares held by Custodian for GDRs & ADRs 0 a 0 6 0 é 0 6 0.00
rn BO) 0 17,20,46,875 | 17,20,46,875 | 100.00 | 25,20,46,875 | 0 | 28,20,46,875 | 100.00 | 46.50
IV (b} SHAREHOLDING PATTERN (Preference Share capital Break up as % to total Preference}
No. of Shares heid at the beginning of the year No. of Shares held at the end ofthe year ] , Category of ‘change Shareholders % af % of the yeas Demat Physical Fotal Total Demat | Physical | Total Total Shares Shares
A. Promoters
2) Endian | cee ef ee veenanssicti ioc ceeeea ee afeeuie efectoee | aj Individual /HUF 0 G 0 0 t 6 0 0
b) Central Gove. or State Govt. 0 0 Q 0 0 6 0 0 0 c) Bodies Corporates 0 0 0.00 80,00,000 80,900,006 100 100.00
dj Bank/FT 0 0 o 6 o 0 0
€) Any other von ll a ) G Oop Op eT
SUB TOTAL:(A) qa 0 0 0 0.06 80,00,000 o 80,00,000 }| 100.00 160.06
} (2) Foreign
ai NRI- ladividuals a Q 6 0 0 0 0 o 0
b} Othec Individuals 0 | 9 0 0 0 0 0 0 0
ci Bodies Corp. 0 6 o 0 0 0 Q 0 0
d) Banks /FI 0 6 o 0 6 5 o 0 0
e} Any other... 0 G o Q 0 0 9 0 0
SUB TOTAL (A) (2) 0 0 0 0 0 0 o 0 0
Total Shareholding of Promoter 0 0 0 0.00 84,00,000 o 80,00,000 | 100.00 100.00 (A= (AY)+ (AQ)
B. PUBLIC SHAREHOLDING i . .
G@jlosttutions |. : veseostentaf een nase a] Mutual Funds | co 6 o 0 a Deh Oo} eo bi Banks /FT 0 0 oO 0 0 0 0 0 0 p Central Gove tO wD Gp Gp ee _O.. oO di State Govt, 0 8 0 0 a 0 0 0 0 e) Venture Capital Fund : _ 0 i G oO o Q 0 0 6 0 f} Insurance ! Companies 0 0 9 0 0
|. Ps a Q 4 h) Foreign Venture Capital Punds 0 0 a o Q 0 0 0 0
4) Others
___. Foreign: Trust a G 0 6.00 0 0 0 0.00 0.00 ~ Peevate Equity Fund a Qa 6 G.00 0 0 0 0.00 0.00
SUB TOTAL (By)(t): a 0 G 6.06 0 0 0 0.00 0,00
(2) Non Lastitutions
a! Bodies corporates
itIadan 0 0 0.00 o 0 0.00
i} Overseas 0 CG 6 0 0
hay Individuals _ i 1) Individual 7 shareholders holding nominal share capital a 0 6 0.50 a a oO ace 0.00 upro Rs.1 lakhs ii) Individuals ~ shareholders holding nominal share capital 0 0 0.00 0 0 in excess of Rs. i 6 0.00 0.08 lakhs
oc) Others
- Trusts 0 0 0 0.00 0 0 6 6.00 0.0 SUB TOTAL {B}2): 0 0 0 0.00 0 0 O 0.00 0.00 :
Total Public Shareholding 0 0 0 0.00 6 0 9 0.00 0.00 (B)= (B)0)+{B)@)
C. Shares held by Custodian for GDRs & ADRe o 0 0 9 0 0 a 9 6.00
AsBeo) 0 0 0 0.00 | 80,00,000 0 | 80,00,000 100.00 | 100.00
TV | SHARE HOLDING OF PROMOTERS {c) |
St | Shareholder's Shareholding at the Shareholding at the % change in share No. | Name beginning of the year ead of the year hoklieg during the year
No. of % of total | Yo of shares No, of ‘“oftwtal > “of : shares shares pledged shares shares shares ofthe | encumbered of the pledged company to total company { encumber shares edt to total shares
Equity
i Infocyber 3,11,28,500 18.99 0 a 0.0 G - 100.00 india Private Limited —_
2 IGH Holdings | 3,43,87,031 19.99 0 21,006,001 0.83 0 -93.89 Private
meee Limited ves ae a ete Webi each eee mene eee em ese ead 3 TGS 4,09,69,500 23,81 0 G 0.00 0 -100,00 Investment and Trade Private Limited
4 Bila Group 436,36,125 25.36 0 0 0.00 G -100,00 Holdings Private z Limited 5 | Umang 2,19,25,719 12.74 0 é 0.00 0 ~100.00 Commercial Company Private Limited tL.
6 Ms. 0 0.00 0 | 20,78,46,874 82.46 0 82.46 Ananyashree ane Bila _
7 Mrs. Neexja 0 6.00 0 21,006,001 0.83 a; 0.83 Bide al. co
8 Svatantra 0 0.00 0 |) 4,00,00,000 15.87 0 15,87 Holdings Private Limited j
Total 17,20,46,875 200.00 0 | 25,20,46,876 | 100.00 | 0} 46.50 Preference 1) Svatantra , 0 0.00 oO] 80,009,000 100.00 | a: 100.00 Holdings Private Limited a
Total 6 0.00 0 80,040,000 100.00 0 100.00
IV | CHANGE IN PROMOTERS’ SHAREHOLDING
SL. Shareholding at the Date Increase/ Reason Cumulatve No. beginning of the year Decrease Shareholding during the year
No. of % of total No. of % of total shares shaces of shares abares of the the company company Equity : Infocyber India Private { _j Limited cece oe von eee
At the beginning of the 3,11,28,560 18.09 | 01.04.2019 - year
Date wise Increase / Decrease 20.05.2019 5,00,000 Rights 3,16,28,506 14.92 in Promoters Share holding Issue during the year specifying the aALotment : reasons for increase / decease i (eg. abotment / tcansfer / bonus/ sweat equity ete: / 7
Date wise Increase / Decrease 10.06.2019 5,16,28,500 Share 0 0,00 in Promoters Share holding ‘Transfer during the year specifying the reasons for increase / decrease i (eg. allotment / transfer / i bonus/ sweat equity etc: : i At the End of the year 31.03.2020 6.00
‘ IGH Holdings Private ; Limited | At the beginning of the 3,43,87,031 19.99 | 01.04.2019 ~T- i ¥eac
: Date wise Increase / Decrease 20.05.2019 80,00,000 Righrs 4,23,87,031 19,99 iin Promoters Share holding | issue i duzing the year specifying the Allotment i reasons forinceease / decrease: (eg. allotment / transfec / bonus/ sweat equity etc):
Date wise Increase / Decrease 07,06.2019 4,02,87,036 Share 21,060,001 0.99 in Promoters Share holding Transfer during the year specifying the reasons for increase / decrease (eg. allotment / transfer / bonus/ sweat equity etc}:
34,05.2020 21,00,001
i TGS Investment and Trade | Private Limited _ At the beginning of the 23,81 (71.04,2019 : year 4,09,69,500 : Date wise Increase / Decrease 20.05.2019 17,50,000 Rights 4,27,49,500 20.45 | in Promoters Share holding issue during the yeac specifying the Allotment reasons forincrease / decrease (e.g. allotment / transfer / bonus/ sweat equity etc):
Date wise Increase f Decrease 07.06.2019 4,27,19,500 Share 6.00 in Promoters Share holding Transfer during the year specifying the reasons for increase / decrease (eg. allotment / transfer / bonus/ sweat equity etc): At the End of the year 31.03.2020 0.00
Birla Group Holdings Private Limited Az the beginning of the 436,365,125 25,36 01.04.2019
sae vear Dare wise Increase / Decrease 20.05.2019 1,95,50,000 Rights 6,318,125 29.80 in Promoters Share holding Issue during the year specifying the Allotment reasons for increase / decrease (e.g, allorment / transfer / boaus/ sweat equity etc): Date wise Increase / Decrease 10.06.2019 6,31,86,125 Share 0.00 in Promoters Share holding Transfer dusing the year specifying the reasons for increase / decrease feg. allotment / transfer / bonus/ sweat equity etc): At the End of the year 31.03.2020 0.60
Umang Commercial Company Private Limited At the beginning of the 2,19,25,719 12.74 01.04.2019 year
Dare wise Inctease / Decrease 20.05.2019 1,02,00,000 Rights 3,21,25,719 15,15 in Promoters Share holding Issue during the year specifying the Allotment reasons for increase / decrease (eg. allotment / transfer / bonus/ sweat equity etc):
Date wise Increase / Decrease 07.06.2019 321,253,719 0.00 in Promoters Share holding ‘Transfer during the year specifying the reasons for increase / decrease (eg. alloument / transfer / bonus/ sweat equity ctc): At the End of the year 31.03.2020 60.00
Msg, Ananyashree Birla
At the beginning of the 0.00 01.04.2019 year
Date wise Increase / Decrease 10.06.2079 26,7846, 874 Share 20,78,46 ,87 98.02| in Promoters Share holding Transfer 4 during the year specifying the reasons for increase / decrease (eg. allotment / transfer / bonus/ sweat equity etc):
At the End of the year 31.03.2020 20,78,46,874 82.46
Mrs. Neetja Birk “l At the beginning of the 6,00 01.04.2019 _ year
: Date wise Increase / Decrease 06.06.2019 21,00,000 Share 21,00,000 0.99 in Promoters Shate holding ‘Transfer : during the year specifying the | reasons forincrease / decrease : (eg. allotment / transfer / i bonus/ sweat equity etc):
, At the End of the year 31.03.2020 24,00,006 0.83
' Svatantra Holdings Private Limited ' At the beginning of the 0.00 61.04.2019 ¥eCar
Tate wise Increase / Decrease 30.09.2019 4,00,00,060 Rights 4,00,00,000 15.87 in Promoters Share holding Issue during the year specifying the Allorment reasons for increase / decrease (e.g. allotmaent / tansfer / boaus/ sweat equiny: etc}: At the End of the year 31.03.2020 4,96,00,000 “45.87
Prefereace
Svatantra Holdings Private | Limited At the beginning of the 0.00 04.04.2019 year
Date wise Increase / Decrease 16.01.2020 25,00,000 Rights 25,00,000 31.25 in Promoters Share holding Issue during the year specifying the Allotment reasons forincrease / decrease (eg. allotment / transfer / bonus/ sweat equiry etc}:
Date wise Increase / Decrease 10.02.2020 25,00,000 Rights 25,090,000 31.25 in Promoters Share holding Tssue during the year specifying the Allorment reasons for increase / decrease feg. allotment / transfer / bonus/ sweat equity etc}:
Date wise Increase / Decrease 31.93.2020 30,00,000 Rights 30,00,000 37.50 in Promoters Share holding Issue during the year specifying the Allotment reasons for increase / decrease
(eg allotment / wanster |” i i bonus/ sweat equity etc): i i : ‘ Le i dover: weir ef At the End of the year : : 31.03.2026 100.00 |
~ — | 468.75 IV | SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS & fe) | HOLDERS OF GDRs & ADRs} $L Name Shareholding Date Increase { Reason. Cumulative No. Decrease Shareholding doring the yeat (01.04.19 to 31.03.20)
No.of | % af total | No.of | %oftotal | shares at shares of Shares shares of the the the beginning | company Company of the yeat
- NA. NA NA NA NLA. NAL NLA. NA
WV | SHAREHOLDING OF DIRECTOR & EMP (8 SL, Name Shareholding Date Increase/ Decrease Reason Cumulative No. Shareholding during the year (01.04.19 to 31.03.29)
No.of [| %af total No.of | %of total Shares at | shares of Shares shares of the the the beginning | Company Company of the year
1 Ms. oF OO 10.06.2019 |” 307846874 a Share | 207846874 | 82.46 Ananyashree Transfer Lo Birla
2 Ms. Neerja 0 0 06.06.2019 2100000 0 Share 2100000 0.83 Bila Transfer |
v INDEBTEDNESS
excludingSecured depositsLoans UnsecuredLoans Deposits. Total Indebtedness
Indebtedness at the begianing of the financial year
i) Principal Amount 10,21,18,66,564 75,00,00,000 . 10,96,18,66,564
il) Interest due but not paid - - - -
iit} Interest accrued but aot due 4,71,37,040.84 7,18,58,835 - 11,89,95,875.84
Total {i+ ii+ iti) 16,25,90,03,604.84 82,18,58,855 - 11,08,08,62,439.84
Change in Indebtedness during the financial year
Additions 16,131,728,013 150,000,000 16,281,728,01%
Reduction 6,486,078,821 (59,486) 6,486,019,335
Net Change 9,645,649,192 150,059486 9,795, 708,678
Indebtedness at the end of the financial year
3} Principal Amount 19,80,23,98,539 96,00,00,800 i 20,70,23,98,539
i} Interest due but not paid - -
iti} Interest acceued but not due 10,22,54,258 7,19,18,321 17,41,72,579
Total (i+ ii+iii} 19,904,652,797 971,918,321 20,876,571,118
VI | REMUNERATION OF DERECTORS AND KEY MANAGERIAL PERSONNEL:
AL I Remuneration to Managing Director, Whole time director and/or Manager: NIL
B. | Remuneration to Other Director: NIL
Cc. Remuneration to Key Managerial Personnel other than Managing Director/Manager/ Whole-Time Director:
SL No. Particulats of Remuneration Key Managerial Personne! 1 Grose Salary Anuject Vrushali Surinder Toral Varadkar - Vishal Kumar Bhatia Chief Mahajan- | - Company Executive Chief Secretary (CS) Officer Financiak (CEQ) Officer (CFO)
{a) Salary as per provisions contained in section 17(2) of the Income Tax Act, 52,535,749 44,81,243 27,38,308 1,24,55,300 1961
{b) Value of perquisites u/s 17(2) of the ~ , Income Tax Act, 1964 . - - -
(c} Profitisn lien of salary under section 17(3) of the Income Tax Act, 1961 - - - , 2 Stock Option - - - ~
F 3 Sweat Equity - - - - ~~] § ' Commissioan3 % of profit. . _ rr others, specify - - - - 5 Others . . . _
Total 52,355,749 44,81,243 27,38,308 | 1,24,55,300 *The ESOPs granted in the FY 19-20 to CRO, CFO and CS are 48119, 35433 and 26247 respectively.
Vil PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES Type | Section of the Bicf ' Details of ~ Authority Appeal Companies Act, 1956/ ; Description Penalty / Punishment /Compounding fees (RD/NCLT/Cou | made if 2013 imposed rt) | any (give se Schone sie se suguetemenmemneee Ln scene nf Metals)
0.0
AN. ASHREE BIRLA CHAIRPERSON DIN: 06625036
Date: Zoi ye | Pa 20 Place: Mumbai
ANNEXURE B FORM NO. AOC -2 Form for disclosure of particulars of contracts/arrangements entered inte by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2} of the Companies (Accounts) Rules, 2014) Svatantra Micrefin Private Limited
Details of contracts or arrangements or transactions not at arm's length basis: NOT APPLICABLE
2. Details of material contracts or arrangement or transactions at arm's length basis:
(a) (b) {c} «d) te) iH Name(s) of Nature of Duration of the i Salient terms of the Date(s) of Amount the related contracts/arrangeme | contracts/arrangements contracts or approval by paid as party and ats/transactions ‘transactions arrangements or the Board, if | advances, if Nature of transactions including any: any: relationship the value, if any:
Vodafone Idea | Purchase of SIM cards On-going As per the plans NLA. NA. Limited prescribed by Vodafone
Mr. Kumar Mangalam Bila - Common Director
FOR SVATANTRA MICROFIN PRIVATE LIMITED pe
YASHREE BIRLA (CHAIRPERSON) DIN: 06625036 Date: 264" Sine, Zad0 Place: Mumbai
ANNEXURE C ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES 1, A brief outline of the company’s CSR policy, Including overview of projects or programmes proposed to be undertaken: Pursuant to Section 135(L) of the Companies act 2013 read with Companies (Corporate Social Responsibility) Rules, 2014, the board of directors has constituted a CSR Committee. The Board has also framed a CSR policy in compliance with the provisions of Companies Act 2013.
In line with CSR Policy and in accardance with Schedule VII of the Act, the Company proposes to undertake suitable projects in the field of education, women empowerment, humanitarian relief, sanitation, preventive healthcare.
The objective of the company’s CSR policy is to lay down guiding principles for proper functioning of CSR. activities to attain sustainable development of the nearby society.
2. The composition of the CSR committee:
Ms. Ananyashree Birla Director Mrs. Neerja Birla Director Mr. Vineet Bijendra Chattree Director
3. Average net profit of the company for last three financial years for the purpose of computation of CSR: Rs. 30,674,754 (Rupees Three Crores Six Lakhs Seventy Four Thousand Seven Hundred and Fifty Four only)
4, Prescribed CSR Expenditure (owe per cent of the amount as In item 3 above): The Company is required to spend Rs. 613,495 (Rupees Six Lakhs Thirteen Thousand Four Hundred aud Ninety Five only)
5. Details of CSR spent during the financial year: a) Total amount spent during the financial year: NIL
b) Amount unspent: Rs. 613,495 (Rupees Six Lakhs Thirteen Thousand Four Hundred and Ninety Five only} ¢) Manner in which the amount is spent during the financial year is detailed below: Not Applicable.
6. In case the company has failed to spend the two percent of the average net profit of the last three Financial Years er any part thereof. The company shall provide the reasons for not spending the amount in Board report:
The CSR Commitiee had detailed discussions with various CSR partner to actively support and chamnelize the activities/projects‘programs to be undertaken by the Company in line with its CSR objectives. As the committee could not identify any suitable CSR partner for this purpose, it could net expend the required CSR expenditure for F¥ 2019-20, Due te paucity of time, the CSR Committee resolved to not make any recommendation to the Board during the Financial Year 2019-20, for the CSR activities to be undertaken by the company and the amount of expenditure to be incurred on CSR activities.
The Company has presently identified to parmer with BAL RAKSHA BHARAT for save the children cause for CSR funding,
7. A responsibility statement of the CSR committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and policy of the Company:
The implementation and monitoring of CSR Policy is in compliance with CSR objectives and Policy of the Company,
FOR SVATANTRA MICROFIN PRIVATE LIMITED
a \ AN. VISNEET BIJENDRA CHATTREE (CHAIRPERSON - CSR COMMITTEE) DIRECTOR DIN: 06625036 DIN: 07962531
op thee Pate: 2s fuss Zo bey
Place: Mumbai
ANNEXURE D MANAGEMENT AND DISCUSSION ANALYSIS REPORT ECONOMIC OVERVIEW
The Indian economy registered a slowdown in 2019-20 with GDP growth at 4.4% (based on ICRA ratings) falling from 6.8% in 2018-19, however the growth remained in the highest decile (Figure 1) among Emerging Market and Developing Economies (EMDEs), The stress on the financial sector and weak rural demand are some of the contributing factors for this sluggish growth.
The economic shock of the COVID-19 pandemic inevitably has invited comparisons to the global financial crisis of 2008-09. These crises are similar in certain respects but very different in others. As in 2008-09, governments have intervened with monetary and fiscal policy to counter the downtum and provide temporary income support to businesses and households. But restrictions on movement and social distancing to slow the spread of the epidemic has led to the shortage of labour supply, transport and travel, which are directly affected in many ways. Many sectors have been impacted adversely during shut down, inchiding hotels, restaurants, non-essential retail trade, tourism and significant shares of manufacturing. Under these circumstances, any forecast depends upon the progress of the disease and relies on estimates rather than reported data.
In response to the COVID-19 pandemic, the Reserve Bank of India (RB) has undertaken liquidity support measures and cut the repo rates sharply. The RBI has cut the repo-rate by 110 basis points since April 2019 to ease credit flow in the economy. The government further announced a fiscal package of INR 20 lakh crore, which is 10% of the country’s GDP. The package, called “Self Reliant India package”, was structured around enibarking on a path to become self-sufficient.
The Reserve Bank of India (“RBI”) on April 17, 2020 announced a targeted long-term repo operations (TLTRO) of INR 50,000 crore that will benefit non-banking finance companies (NBFCs) and micro- finance institutions (MFis), a move that will help small and medium-sized businesses. The funds availed by banks under TLTRO 2.0 should be invested in investment-grade bonds, commercial paper, and non-convertible debentures of NBFCs, with at least 50 percent of the amount going to small and midsized NBFCs and MF's, the central bank said in a statement. The RBI has also announced a INR 50,000 crore Special Liquidity Scheme to enable National Bank for Agriculture & Rural Development (NABARD), Small Industries Development Bank of India (SIDBD and. National Housing Bank to meet the needs of Non-Banking Finance Companies (NBFCs} and housing finance companies (HFCs) by way of refinance, to improve their liquidity position in order to avoid any potential systemic risks to the financial sector.
MICROFINANCE IN INDIA
Microfinance is essential for driving the growth of a large section of the underserved population and bringing an entire array of financial services within the reach of borrower. The presence of multiple players in the microfinance landscape and mature models of micrclending, with a significant portion of its population in the low-income band, India represents a huge opportunity for the microfinance sector. Though government schemes and established financial institutions have enhanced access to microctedit for neatly 67% of the Indian population living in rural areas, the significant geographic concentration of MFIs within a few districts of the country (34% of the districts with microfinance presence contribute 80% of the portfolio) indicates the potential for achieving higher microfinance penetration.
The microfinance sector has seen promising growth on the back of the rapidly growing Indian economy. The sector has been instrumental in offering formal credit to underserved low-income households and micro, small and medium enterprises (MSME5), thereby increasing the contribution of these segments to India’s overall GDP. In FY29, the microfinance sector displayed 40% growth in terms of ioan portfolio, With advancements in technology, development of regulatory policies, new partnerships and launch of diverse products, the sector is expected to maintain the existing level of growth in the near future. Even amongst pandemic agri sector was the only sector that exhibit positive growth and continued to have positive outlook. This is likely to provide sustained growth momentum for lower impact on microfinance sector,
COMPANY OVERVIEW
Svatantra Microfin Private Limited is a registered NBFC-MFI which operates in a Joint Liability Group lending model. Established in 2012, the Company focuses on reaching out to unbanked and providing financial services fo women entrepreneurs — 100% of its clients comprise women living in rural areas. The Corapany’s responsibilities extend beyond financial support to educating clients on financial literacy.
The Company has demonstrated the success and scalability of its business model by providing micro-credit over 1 Million women customers as. on March 31, 2020. As per the financial as on March 31, 2020, the company has reported total income of Rs. 361.24 Crores and PAT of Rs. 36.32 Crores. The Company has been rated CRISIL A+ for its borrowings. The CRAR of the Company as per the Provisional financials on March 31, 2020 was 19.45% against the minimum regulatory requirement of 15% for NBFC MFI.
Till date the company has disbursed more than Rs. 4600 Crores to microfinance borrowers through JLG. The company’s Gross Loan Portfolio as on March 31, 2020 is Rs. 2601.58 Crores with the network of 449 Branches in more than 220 districts.
Svatantra has a strong pedigree of promoters, board members & management team who are involved in building a successful enterprise. Till date the promoters of the company have invested capital amountto Rs. 332.00 Crores and the Net-worth of the company as on March 31, 2020 is Rs. 370.86 Crores.
OPERATIONAL PERFORMANCE
The Company registered a stellar performance in 2019-20. From an operational perspective, the Company has taken important strides which promise to make its profitable growth sustainable.
The Company extended its footprint across 4 new states, thereby establishing its presence in 14 Indian states. It increased its branch network by 174 branches which has helped in strengthening its customer base to 1,032,242 as on March 31, 2020,
The portfolio of the company stood at Rs. 2601.58 Crores as an March 31, 2020. FINANCIAL PERFORMANCE
Amount in Bs.
PARTICULARS 34" March, 2020 31" Marck, 2019
Income SD gas he dee os
Revenue from operation "3,546,950,412 — Other Income ~ $5 dot Less: Total Expenditure 3,115,652,325 Profit / Loss Before Exceptional Items, 3,397 Extraordinary Items and Tax | Exceptional Item - . - Extraordinary Item
Prof/ (Less)it Before Tax. 496,783,397 237,839,677
Less: Current Tax 129, 520, (T33 55, 782). MAT Credit Entitlement - ' - 2
Less: Deferred tax income/Expenses D44,00 : Earlier Year deferred tax benefit((Charge) — — Earlier Year tax adjustment Ps Profit/Loss for the year "166,604,547
OUFLOOK FOR 2019-26
The microfinance instigutions (MFIs), which are currently feeling the pinch of the COVID-19 with their operations being suspended during the nationwide lockdown, do remain concerned about the near-term growth of the industry. However, the short-to-medium-term impact of the COVID-19 out break and the subsequent measure of the lockdown to combat the pandemic seems to be more on the urban sector as compared to agriculture-based rural activities.
RISK AND CONCERNS
Risk management at Svatantra is an integral part of the business model, focusing on making the business model emerge stronger and ensuring that profitable business growth becomes sustainable.
The Company has adopted a comprehensive and integrated risk appraisal, mitigation and management process. The risk management framework goes beyond traditional boundaries and seeks to involve all key managers of the Company,
The Beard of Directors stands at the apex of the govemance, supporting the risk Management framework, The Board oversees the implementation of the Risk Management Plan principally through the Board Risk Management Committee (BRMC).
The Board comprises of eminent directors with rich expertise and experience in the financial services space and are well versed with the possible risks which could adversely impact the Company’s performance.
The Company has put in adequate checks by complying with the regulations framed by RBI which are applicable to the Company. It also has an effective risk management department which is bound to work in an effective mater in order to mitigate risks,
Whereas each department focuses on its specific area of activity, the risk management department operates in cooperation with all other departments, utilizing all significant information sourced by the other departments in order to manage risks.
The Company is regulated by Reserve Bank of India which has stipulated certain regulations to be followed by each and every NBFC.
INTERNAL CONTROL AND ITS ADEQUACY
At Svatantra, the internal control procedures include internal financial controls, ensuring compliance with various policies, practices and statutes considering the organization's growth and complexity of operations. The framework constantly monitors and assesses all aspects of risks associated with current activities and corporate profile, including scientific and development risks, partner interest risks, commercial and financial risks.
Svatantra has built the management reporting and internal control systems in place, that enabie it to moniter performance, strategy, operations, business environment, procedures, funding, tisk and internal control. The internal auditors carry oul extensive audits throughout the year across all locations penetrating alt fictional ateas and submil their reports to the Audit Committee.
HUMAN RESOURCE
At Svatantra, people power is the bedrock for its success. For the intellectual capital resident within the organization have formulated the contours of its differentiated business strategy and have played a defining role in transforming business strategies into on-ground realities. The Company obtained coveted Best places to work certification and was recognized amongst the 25 in BFSI sector for its human resource processes and policies.
It also strives to retain its experienced team rich in domain expertise through people centric policies. The Company’s knowledge building comprises of a detailed learning and development calendar comprising multidiscipline training programs (technical knowledge and soft skills). This calendar captures the development needs of employees through performance appraisals and business needs based on sectoral trends.
There has been a significant increase in the number of branches of the Company during the year which was resulted in increase in the number of employees as on March 31, 2020 at 3927 as compared to 2487 in the previous year, The company also has a strong culture of celebrations. Ali occasions are celebrated with great zeal and excitement.
FOR SVATANTRA MICROFIN PRIVATE LIMITED
ANANYASHREE BIRLA (CHAIRPERSON) DIN: 06625036 at Date: 25" Ture , colo Place: Mumbai
SVATANTRA MICROFIN PRIVATE LIMITED
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Suresh Surana & Associates LLP Chartered Accountants
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INDEPENDENT AUDITORS’ REPORT
To, The Members of SVATANTRA MICROFIN PRIVATE LIMITED
Report on the audit of the Financiai Statements
Opinion
We have audited the accompanying financial statements of Svatantra Microfin Private Limited ("the Company’), which comprise the Balance Sheet as at 31 March 2020, the Statement of Profit ard Loss and the Statement of Cash Flows fer the year then ended, and a summary of significant accounting policies and other explanatory information (hersinafter referred to as “the financial statements").
In our opinion and to the best of our information and according to the explenations given to us, the aforesaid financial statements give the information required by the Companies Act, 2014 ("the Act’} in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in india, of the state of affairs of the Company as at 31 March 2020, its profit and the cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit in accordance with the Standards an Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Audifors Responsibilities for the Audit of the Financial Statements section of our repert. We are independent of the Company in accordance with the Cede of Ethics issued by the Institute of Chartered Accountants of India together with the athical requirements that are relevant to cur audit of the financial statements under ihe provisions of the Act and the Rules thereunder, and we have fulfilled cur other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis fer our opinion.
Emphasis of Matter
We draw attention to Note 54 of the financial statements whieh describe the managements assessment af the impact of the COVID-19 pandemic on the financial statements of ihe Company and estimates related to impairment of assets, which are dependent on future developments régarding the severity and duration of the pandemic. Our opinion is nat modified in respect of this matter. teh teJet
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Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in Board’s Report including Annexures io Boara’s Report and Sharehoider's Information,, but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial staternents does not cover the other information and we do not Oxpress any form of assurance conclusion thereon.
in connection with our audit of the financial statements, our responsibility is to read the other infarmation and, in doing se, consider whether the other information is materially inconsistent with the financial sialements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated,
if, baséd on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.
Management's Responsibitity for the Financia! Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in india, including the Accounting Standards specified under Section 133 of the Act. This responsibility also inckides maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for praventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of ihe accounting records, relevant to the preparation and presentation of the financial statements that give @ true and fair view and are free from material misstatement, whether due to fraud or arror. in preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters retated to going concem and using the going concem basis of accounting unless management either intends to fiquidate the Company or to cease operations, or has no realistic alternative but te do so,
The Board of Directors are also responsible for overseeing the Company's financial reperting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due fo fraud or error, and to issue an auditor's report that inchides our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Serra Suresh Surana & Associates LLP Chartered Accountants
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
« idantify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of nat detecting a material misstatement resulting from fraud is higher than for one resulting from error, ag fraud may involve collusion, forgery, intentional omissions, misrapresentations, or the override of internal control.
« Obtain an understanding of internal control relevant to the audit in order ta design audit procedures that are appropriate in ihe circumstances. Under Section 143(3)(} of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
» Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
* Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exisis related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concem. If we conclude that a material uncertainty exists, wa are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up te the date of our auditor's report. However, future events or conditions may cause the Company to cease fo continue as & going concem.
e Evaluate the overall oresentation, structure and content of the financia! Statarnents, including the disclosures, and whether the financiai statements represent the underlying transactions and events in a manner that achieves fair preseniation
Materialify is the magnituce of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in avalusiting the results of our work: and (i) to evaluate tha effect of any identified misstatements in the financial statements.
We communicate with these charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiancies in internal contro! that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought fo bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Reguiatory Requirements
1. As required by the Companies {Auditors Report) Order, 2016 (‘the Order’) issued by the Central Government of Incia in terms of sub-section (11) of Section 143 of the Act, we give in the “Annexure A’, & Statement on the matters specified in paragraphs 3 and 4 of the Order, to th e extent applicadte. Suresh Surana & Associates LLP Chartered Accountants
2. As required by Section 143 (3) of the Act, we report that:
&) We have sought and obtained alt the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit:
b} In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
¢} The Balance Sheet, the Statement of Profit and Loss, and the Statement of Cash Flows dealt with by this repart are in agreement with the books of account:
d} In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act
e} On the basis of the written representations received from the directors as on 31 March 2020 and taken on record by the Board of Directors, none of the directors is disqualified as on 34 March 2020 from being appointed as a director in terns of Section 164 (2) of the Act;
f} ‘With respect to the adequacy of the intemal financial controls aver financial reporting of the Company and the operating effectivenass of such controts, refer to our separate Report in “Annexure B", Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys intemal financial control over financial reporting:
g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of Section 197(16) of the Act, as amended, according to the information and explanations given to us, the Company has paid and provided managerial remuneration during the year. As the Company is private company, provisions of Section 197 read with Schediule V of the Act is not applicable,
h) With respect fo the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors} Rules, 2014, in our opinion and to the best of our information and according fo the explanations given to us:
i. The Company does not have any pending fitigations which would impact its financial position. (Refer note-26 to the financial statements)
i, The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses: and
ii. There is no amount required to be transfered, to the Investor Education and Protection Fund by the Company.
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Madhukar Khandekar Partner . " Membership No.: 13912 he ae UDIN: 209) 39;2 BAR AK Se Place: Mumbai Pate: 25 JUN 2020 Suresh Surana & Associates LLP Chartered Accountants
ANNEXURE-“A® TO INDEPENDENT AUDITORS’ REPORT (Referred to in paragraph 1 under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date}
(i (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
{b) Accerding to information and explanations given to us, the fixed assets have been physically verified by the management according to the regular programme of periodical verification in a phased manner, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such verification.
(¢) According te information and explanations given by the management, there are no immovable properties of the Company and accordingly, the requirements under Clause 3 (ic) of the Order are not appficable to the Company.
(i) Censidering the nature of business, the Company does not have any inventory. In view of this, paregraph 3 (i) of the Order are not applicable to the Company.
(i) The Company has not granted any loans, secured or unsecured to companies, firms, limited liability pparinerships or ather parties covered in the register maintained uncer Section 189 of the Act. Accordingly, the Paragraph 3 (it) (4), (b} and (c) of the Order are not applicable to the Company.
(iv} Accerding to information and explanations given to us, there are no loans, investments, guarantees, and securities granted in respect of provisions of Section 185 and 186 of the Act and accordingly, the requirements under Paragraph 3 (iv) of the Order are not applicable to the Company.
iv) The Company has not accepted any deposits during the year from the public to which the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 and any other relevant provisions of the Act and the nuies framed there under apply.
(vi In our opinion and according te the information and explanations given to us, the requirement for maintenance of cost records pursuant to the Companies (Cost Records and audit} Rules, 2044 spacified by the Central Government of India under Section 148 of the Act aré not applicable to the Cornpany for the year under audit.
(vit 4} According to the information and explanations given to us, the Company has been generally feguiar in depositing undisputed statutory dues including provident fund, employee state insurance, income tax, goods and service tex, cess, and any other statutory duas with the appropriate authorities. There are no undisputed amount payable in respect of provident fund, employee staie insurance, income tax, service tax, goods and sarvice tax, cess, and any other statutory dues in arrears of outstanding staftulory dues as at 31 March 2019 for a period of more than six months from the date they became payable except labour welfare fund of Rs. 10,755 and professional tax of Rs.15,600 which is outstanding on the last day of the financial year for more than six months from the date they became payable. Subsequent to the balance sheet date, the Company has paid labour welfare fund and professional tax dues. As informed, statutory dues in the nature of sales tax, duty of customs, duty of excise and value added tax are not applicable to the Company.
b} According to information and explanations given to us, there are ne dues on account of income tax, goods and service tax and cess which Rave not been Cepasiiad with\ the appropriate authorities on account of any dispute. =
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(vil) According fo the informaiion and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to the banks and financial institutions or dues to cebenture holders. The Company does not have any Joans from goverment.
{ix} According to the information and explanations given to us, the term loans have been applied for the purposes for which they were raised, though idle funds which were not required for immediate utliization have been invested in liquid investments, payable on demand. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments).
(x) During the course of our examination of the books of account and records of the Company, carried out in accerdance with generally accepted auditing practica in india and according fo the information and explanations given to us, we report that no material fraud by the Company or on the Company by the officers and ernpleyees of the Campany has been noticed or reported during the year except for instances of cash embezziements by certain amployees of the Company aggregating to an amount of Rs. 6.65 Lakhs and out of which, aa amount of Rs.2.35 Lakhs has been recoverad.
(xB As the Company is Private Limited Company, orevisions of Section 197 read with Schedule V of the Aci aré not applicable te the Company.
xi} According to the information and axplanations given to us, the Company is not a Nidhi Company. Accordingly, the paragraph 3(xii} of the Order is not applicable to the Company.
{xii} = According to the information and explanations given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with Sections 177 and 188 of the Act, where applicable and details of such transactions have been disclosed in the financial statements a8 required by the applicable accounting standards.
(xiv) According to the information and explanations given fo us and based on our examination of the records, the Company has not mace preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, the paragraph 3 (xiv} of the Order is net applicable to the Company.
(xv) According to the infonnation and explanations giver: fo us and based on our examination of the records of the Company, the Company has not entered inte any non-cash transactions with directors or persons connected with him curing the year as referred to in section 192 of the Act. Accordingly, paragraph 3(xv) of the Order is not apoticabie ic the Company. (xvi) The Company is required to be registered under Section 45-14 of the Reserve Bank of india Act 1934, and the registration certificate has been obtained,
FOR SURESH SURANA & ASSOCIATES LLP Chartered Accountants i Firm’ Ane Ne: 127 750WhAL 1000104 . pro léadhukar Khandekat PARTNER ‘ Membership Ne.13912 " a UOIN: 2501 3912 ABA A KY Sear Place: Mumbai Date $5 JUN 2029 Suresh Surana & Associates LLP Chartered Accountants
ANNEXURE ‘B’ TO THE INDEPENDENT AUDITORS’ REPORT (Referred to in paragraph 2{f} under the heading ‘Report on Other Legal and Regulatory Requirements’ of our report of even date}
Report on the Infernal Financial Controls under Clause (i) of Sub-section 3 of Section 743 of the Companies Act, 2042 (“the Act”}
We have audited the internal financial controis over financial reperting of Svatantra Microfin Private Limited (‘the Compeny"} as of 31 March 2020 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internal financial controls based on, the intemat control over financial reporting criteria established by the Company considering the essential components of intarnal contrat stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of india (ICAI. These responsibilities inchide the design, implementation and maintenance of adequate internal financial controls that wera operating effectively for ensuring the orderly and efficient conduct af its business, including adherence to Company's policies, the safeguarding of its assets, the prevention and detection cf frauds and errors, the accuracy and completeness of the accounting records, and the timety preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors’ Respons!bility
Our responsibility is fo express an opinion on the Company's intemal financial controls over financial reporting based on our audit. We conducted cur sudit in accordance with the Guidance Note on Audit of internal Financial Controis over Financial Reporting (the “Guidance Note’) issued by ICAI and the Standards on Auditing, prescribed under section 143(10} of the Companies Act, 2073, to the extent applicable te an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit ta obtain reasonable assurance about whether adequate intemai financial controls over financial reporting was established and maintained and if such controls operated effectively in ail material respects.
Our audit invelves performing procedures to obtain audit evidence about the adequacy of the intemal financial controls system over financial reporting and their operating effectiveness. Qur audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evatuating the design and operating effectiveness of intemal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's intemal financial controls system over financial reporting. Suresh Surana & Associates LLP chartered Accountants
Meaning of Internal Financial Controls Over Financial Reporting
A Company's intemal financial contro? over financial reporting is a process designed to provide reasonabie assurance regarding the reliability of financial reporting and the preparation of financia! statements for external purposes in accordance with generally accepted accounting principles. A Company's internal financial control over financial reporting includes those policies and procedures that (1} pertain to the maintenance of records that, in reasonable detail, accurately and faidy refiect the transactions and dispositions of the essets of the Company, (2) provide reasonable assurance that transactions are recorded 4s necessary to permil preparation of financial statemenis in accordance with generally accepied accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (2) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements. inherent Limitations of intemal Financial Controls Over Financial Reporting
Because of the inherent limitations of interai financial controls over financial reporting including the possibilty of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the intemal financial controls ever financial reporting to further periods are subject to the risk that the internal financial contro! over financial reporting may become inadequate because of changes in conditions, or that the dagree of compliance with the policies or procedures may deteriorate.
Opinion in cur opinion, the Company has, in all material respects, an adequate internal financial controls system aver financial reporting and such internal financial contro!s over financial reporting were operating effectively as at 31 March 2020, based on the internal contro! over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of internal Financial Canftrol Over Financial Reporting issued by the institute of Chartered Accountants of India.
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Madhukar Khandekar FARTNER Membership No. 13942 UDIN: 206) S412 ARR RIN 562.2 Place: Mumbai bate 25 JUN 2020 Suresh Surana & Associates LLP Chartered Accountants
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eMmadls ees DC ESOOM] WAALS LEP iderii Auditors’ Additional Report
To The Board of Directors Svatantra Microfin Private Limited 20th Floor, Sunshine Towers, Senapati Bapat Marg, Elphinston Road, Mumbai- 400073
Report on the Financial Statements
We report that the statutory audit of Svatantra Microfin Private Limited (“the Company’} was conducted by us in pursuance of the provisions of the Companies Act, 2013 and we have annexed hereto a copy of our Audit Report dated 25 June 2020, along with a capy of each of the audited balance sheet, as of 31 March 2020, statement of profit and loss and the statement of cash flows of the Company fer the year ended on 31 March 2020 along with the documents declared by the relevant Act te be part of, or annexed to, the statement of profit and loss and the balance sheet,
in addition to the said report made under Section 143 of the Companies Act, 2013 (the Act} on the financia! statements of the Cormpany for the year ended 31 March 2020 and as required by Non-Banking Financial Companies Auditor's Report (Reserve Bank) Directions, 2016 (‘The Directions’), issued by the Reserve Bank of india (RBI} vide notification No ONBS PPD.03/66.15.001/2016-17/ dated 29 September 2016 pursuant te the powers conferred in terms of Sub-Section (1A) of Section 45MA of the Reserve Bank of india Act, 1934, we report on the matters specified in paragraphs 3 and 4 of the said Directions, to the extent applicable, as follows:
Management's Responsibility for the financial statements
Fhe Company's management is responsible for the matters stated in Section 124(5} of the Act with respect to the preparation of these financial statements that give a true and fair view of the state of affairs, profit and cash flows of the Company in accordance with the accounting orinciples generally accepted in india, inclucing the Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with ihe provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irreguiarities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonabie and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accaunting records, relevant to the preparation and presentation of the financial statements that give a true and feir view and are free from material misstatement, whether due to fraud or error. ;
i Chartered }
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The Company's management is responsible for enstwing that the Company complies with the requirements of the Master Direction - Non-Banking Financial Company - Systemically Important Non- Deposit taking Company (Reserve Bank) Directions, 2016 {the ‘Master Directions’). This responsibility includes the design, implementation and maintenance of intemal control relevant to the compliance with the Master Directions.
Auditor's Responsibility
Pursuant to the requirements of the Directions, it is our responsibility to examine the books of account and records of the Company and repart on the matters specified in the Directions, to the extent applicable to the Company.
We conducted our examination in accordance with the ‘Guidance Note or Reports or Certificates for Special Purposes (Revised 2016)' issued by the Institute of Chartered Accountants of India. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India.
We have complied with the relevant applicable requirements of the Standard on Quality Contra! (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.’
Conchusion
Based on cur examination of the financial statements as at and for the year ended 31 March 2020, books of account and records of the Company as produced for our exarnination and according to the information and expianations given to us, we further report that:
4. Para 3{A}
I. The Company is engaged in the business of Non-Banking Financial Company as defined under clause (i) of Section 45-i(c} of the Reserve Bank of india Act, 1934. The Company has obtained a Certificate of Registration numbered N-73,02036 from Mumbai R.O. of the Reserve Bank of India (RB) dated OS February 2013 for registration as a "Non-Banking Financial Company — Micro Finance Institution (NBFC-MFI)" as provided in sub-section (1) of Section 45-14 of the Reserve Bank of India Act, 1934.
i. On the basis of the financial statements for the year ended 31 March 2020 audited by us and as per Paragraph 5 of Non-Banking Financial Company - Systemically important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, we hereby report that the Company is entitied to continue to hold such Certificate of Registration in terms of its financial asset /income pattern as on 34 March 2020.
i. Based on the net owned fund requirement as laid down in Paragraph 5 of Master Direction ~ Non Banking Financial Company - Systemically important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, the Company is meeting the required net owned fund requirement.
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2. Para 3{B}
As indicated in Clause 1 above, since the Company hes Certificate of Registration as ‘Non-Banking Financial Company Not Accepting Public Deposits”, the matters referred to in Para A(B) of the Directions are not applicable to the Company.
3. Para 3{C}
L. The Board of Directors has passed a resolution in the meeting of Board of Directors held on 05 April 201 Sfor the non-acceptance of any public deposits,
li. Fhe Company has not accapted any Public Deposit during the yaar.
tii, The Company has complied with the prudential norms relating to income recagnilion, accounting standards, assets classification and provisioning for bad and doubtful debts as applicable to it in terms of Non-Banking Financial Company - Systernicalty important Non-Deposit taking Company and Deposit taking Company (Reserve Bark) Directions, 2016, in the preparation of financial statements for the year ended 341 March 2026.
I¥. The Company being a Systemically Important Non- Deposit taking NBFC as defined in Paragraph 3 (oxi) of the Non-Banking Financial Company - Systemicaily Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank} Directions, 2016.
a) The Capital adequacy ratio as disclosed in the return submitted to the RBI in form NBS-7 has been correctly arrived at and such ratio is in compliance with the minimum capital to risk asset ratio (‘CRAR'} prescribed by RBE and
b} Presently, there is no requirement of furnishing the annual statement of capital funds, risk assets/exposures and risk assets ratic (NBS 7) to RBI, The Company has furnished to the RB, the staiement of capital funds, risk assets/ exposures and risk asset ratio (NBS-7) within the stipulated period.
V. Based on the criteria set forth by the RBI in Paragraph 30a) of the Non-Banking Financial Company - Systemically Important Non-Depasit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, the Company has been correctly classified as NBEC-MFI as defined in the said Directions with reference to the business carried on by it during the year ended 31 March 2020,
4. Para XD)
Since as per RBI, the Company is required to hold Certificate of Registration, the matters referred to in Para 3(D) of the Directions are not applicable to the Company.
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Restrictions of use
We have no responsibility to update this Report for events and circumstances occurring after the date of this report.
This report is issued pursuant to our obligations under Non-banking Financial Companies Auditors’ report (Reserve Bank) Directions, 2016 to submit a report on additional matters as stated in the Directions to the RBI Qur report should not be used by any other person or far any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.
FOR SURESH SURANA & ASSOCIATES LLP Chartered Accountants _ Firm’s Reg. No: 121750W1 W-1000102%
(Madbakat Khandekar) PARTNER Membership No: 13912 a UBIN: 20013AB4AA 1KN2 S.CE T Mumbai, Dated 95 JUN 2020 Svatantra Microfin Private Limited
Balance Sheet as at 34 March 2020
Note As at As at Particulars No. ot March 2020 i March 2019 {Rs.) (Rs)
EQUITY AND LIABILITIES Shareholder's funds {a) Share capital 3 3,320,468, 750 4,720,488, 750 {b} Reserves and sumius 4 388,169,733 24,926,940 3,768,638, 483 1,74§,399,890 Non-Current Liabilities (a} Long term berrowings § 9,649, 730,977 §,793,858,296 (b) Long farm provisions 6 126,398,708 15,874,404
9, 758,120,665 5,749, 732,406 Current Liabilities (a) Short-term borrowings ? 934,246,050 925,066,077 (b) Trade payables - total outstanding dues of micro enterprises and small é@nterprises - ” - total outstanding dues of creditors other than micro enterprises and small enterprises 8 36,515,449 36,242 066 (c} Other current Habiitias 9 106,863,036,039 4540018817 {d} Short-term provisions 40 93,352, 117 217,516,790 41,924,149,695 $778,842, 750
TOTAL 25,390,917 B63 13,213,964 840
ASSETS Non-current assets {a} Fixed assets 4} Property, plant and equipment HA $2,136,369 56,736,908 {ii} Intangible assets iB 19,435,530 16,203,458 dit) Capital work-in-progress 11C¢ $104,289 6.742, 272 105,673,188 75,882,638
(b) Long-term ioans and advances 12 19,541,198, 82% 4,456,207,097 {c} Other nan- current assets 13 86,555,878 126,767 (d) Deferred tax asset (net) 14 62,862,928 66,577,534 16,684,317,629 4,522,917,398 Current Assets {a) Cash and cash equivalents 46 4,203,954,504 4.057, 948,936 {b} Short-term loans and advances 16 9,957, 724,749 7,366,289,086 fc) Other current assets V7 439 250,796 491,134,787 44,600,927,048 8,615,370,803 TOTAL 26,3960,997,863 13,213,964, 846
Summary of significant accounting policies 2
The secempanying notes are an integral part of the financial siatements Aas per our repent of even date attached
FOR SURESH SURANA & ASSOCIATES Lege ON BEHALF OF THE BOARD OF DIRECTORS OF Chartered Accountants fa SVATANTRA MICROFIN PRIVATE LIMITED Firm's Reg. Ne. 121750Wi W-1000 49 rh - >
pit eneten (Madiukar Khandekar) Neerya Sita Vindei Chattras: Parner DIRECTOR DIRECTOR Membership no. 13912 DIN No. 01020533 DIN Na, mens Place : Mumbai Date : 95 JUN 9070
CHIEF EXECUTIVE OFFICER
Surinder Kaa r Bhatia COMPANY SECRETARY Membership No, #7227
Place : Mumbai Piace : Mumbai 95 JUN 2020 Date : 25 rc JUN 2020
Svatanira Microfin Private Limited
Statement of Profit and Loss for the year ended 31 March 2020
Note For the year ended For the year ended Particulars No 31 March 20206 31 March 2079 (Rs.} Rs.)
Income Revenue from operations 18 3,546,959,412 4, 760,843,350 Other income 19 $5,476,310 265731, 746
Total revenue 3,642,435,722 41,785, 575.096
Expenses Employee benefits expense 20 948,382,429 492,474,572 Finance costs 21 £611,731 G22 781,895,909 Depraciation‘amortisation expense 22 44,270,252 25,409 1596 Other axpenses 23 384,122,512 799,286,101 Contingent provigion against Standard assets, Provision for Non- pedomming assets and VVrite-off 24 127,146,510 48,669 641
Total expenses 3,146,662,325 + 547,735,419
Profit before tax 496,783,397 237,839,677
Tax expenses Current tax (129,520,000) (73,355,782) Deferred fax Incomeexpenses} (4,014,604) 2,420 652 Profit after iax 363,248,793 466,604, 547
Earnings Per Share 25 Basic 1.89 1.47 Diluted 1.59 1.46 Nominal value per share 10 40
Summary of significant accounting policies 2
The accompanying notes are an integral part of the financial statements As per our report of even date atiached
FOR SURESH SURANA & ASSOCIATES LLP ON BEHALF OF THE BOARD OF DIRECTORS OF Chartered Accountants 7 SVATANTRA MICROFIN PRIVATE LIMITED Firm'sAo No.: 121750W / W- 2 WX.
teirnnar Khandekar}oo Neerja Bina Partner DIRECTOR DIRECTOR Membership no. 13912 DIN No. 01020533 DIN No, 07862531 Place : Murabai bate: 95 JUN 9079 Ye
eet Varadkar HIEF EXECUTIVE OFFICER
Suringer Kumar Bhatia COMPANY SECRETARY Membership No. 17227
Place ; Mumbai Place : Mumbai Date: 9 & JUN 2020 Pale; OE JUN 2020
Svatantra Microfin Petvate Limited
Statement of Cash flows for the year ended 34 March 2025 For the yaar ended For the year ended Particulars #1 March 2020 34 Maren 2049 thes} (Rs
CASH FLOW FROM OPERATING ACTIVITIES Net profit/(loss} before tax 496,763,387 237, 6.677 Adjustments for: Depreciation/amerisaton expense 44,270,282 25 409,196 Contingers provision egainst Asset {23,317,347} 44,625,866 Portfolio loan written off 180,482,857 4,035,775 interest eome (5.395,061} (2,309,325) Profit on sale of quireni invesime nts {51.826,002) 411,238 .084) Lass on sate of fed assets 126,524 - imprest expenses 1,506,250, 100 703 463,25+ Operating profit before working capital changes 2,147, 364,720 4,004 ,554,364 Adjustments for working capital changes: (increase)/decresse In Wade and other payables 442,175,586 141,968,722 Gnerease)} decrease in trace and other receivables (8,139,539, 5195 {6,174,621 B20}) Cash generated from operations (6,586, 418,61 3}; (5,680,818,847)) income lanes paid! (refund) (142,786, 740} (82.953, 709)! Net cash generated fromy(utilised In} operating activities {A} (6,722,915,553} (5,143,772,556)
CASH FLOW FROM INVESTING ACTMITIES Purchase of fixed assels Including capital work-in-progress {75,201.58 1} (55,956,444) Proceed on sale of fixed Asset 40,396 105,208 interest incon 2,893,731 2,308,329 Purchase of investments (25,922,500.000) (9,234,600,100} Sale of investments 25 O74 G26 02 9,245,738, 164
Net cash generated fromufutilised in} investing activities (B} abu) 457}; 442,503,820)
CASH FLOW FROM FINANCING ACTIVITIES Progesds from issue of equity share capital 800,000,008) 397,031,256 Procaads from Jssue cf 5% Camputsorly Convertible Non-Cumutative Preference 800,000,000 - Procesds from long tenn of borrowings 18,356 ,550,000 7,760,600,000 Repayments of long term of borrowings (5,616,196, 036) (1,563,239, 979) Proceed/ (Repayment) of short term borrowings 6.178.013 200,666,164 interest paid (1,487,083,397) {612,752,527}
Net cash generated fromflutitised in) financing activities (} 5 39,448,562 64 90,704 907
Net (decrease}/ increase in cash and cash equivalents [A+B+C} 3,146,004,572 1,004,628,53
Cash and cast equivalents at the beginsing of the year 4 057,949,925 $3,321,098
Cash and cash equivalents at the ond of the year 4,203,551, 504 1,057,949, 928
Note: 1. The above Cash Fiay Statement has been prepared under the ‘indvect Method" as set out in Ihe Accounting Slandard (AS}3 on “Cash Flow Statements” as noted by Central Government of India, 2. Gash and Cash equivatent for ihe purpose of cash flow slalerieni comprises cash on hand and cash at bank excluding fixed deposit with originat anatuity of more than three montis.
Sunomary af significant accounting policies
The accompanying nies are an integral part of the financial stabements AS per our report of even dale attached
ON BEHALF OF THE BOARD OF SIRECTORS SVATANTAA MICROFIN PRIVATE LIMITED Ste NN iMadhukar Khandexary = ** Partner DIRECTOR DIRECTOR Mambership no. 13912 DIN No. 01020533 SIN No. 07962531 Place : Mumbai \ Date : 25 JUNpIul WYSe 4
eet Varactkar Veushall Manaj IEF EXECUTIVE OFFIGER CHIEF FINANCIAL GFFIGER
Surinder Kumar Bhatia COMPANY SECRETARY Membership No, 17227
Place : Mumbai Place; Akambai “25 SUN 2O2P"" 9 yyy wt 2028
Svatantra Mlerofin Private Limited
Notes to the financial statements for the year ended 34 March 2020 4 Company Inforrnation Svetanta Microfin Private Limited (the Company’) is a arivate limited company incorporated in india on 17 February 2042 under the Companies Act, 1956 having its registered office af Mumbai, The Company is registered with Reserve Bank of india (REI as a "Mon Banking Financial Company- Micro Finance Institution*.
SUMMARY OF SIGMIFICANT ACCOUNTING POLICIES 2.1 Basis of accounting and preparetion of financial statements The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the Generally Accepted Accounting Principles (‘GAAP’) in India in compliance with the provisions of the Companies Aci, 2013 [ine ‘Act including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and tha Reserve Bank of india (RBI) guidelines to the extent applicable to a Systemicaily Important Noh- Deposit taking NotBanking Finance Company (NBFO-NE-S)} and Non-Banking Finance Company- Micro Finance Instituticn (NBFC-MFE). The financial statements are presented in Indian Rupees rounded off 16 the nearest rupee.
The Balance Sheat and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule {1 to the Act. The Statement of Cash Flows has been prepared and presented as per the requirements of tha Accounting Standard (AS} 3 Cash Fiow Statements. The disclosure requiraments with respect to items in the Balance Sheat and the Statement of Profit and Losa, ee prescribad in the Schedule iH to the Act, are presented by way of notes forming part of accounts along with the other notes required to be Geclosed under the notified Accounting Slandards.
22 Use of estimates The preparation of financial stajements in canfonnity with generally accepted accounting principtes (GAAP) in india requires management io make estimates and assumptions that affects the reported amounts of asseis and jiabilities and the disclosures of contingent abilities on ihe date of financial statements and reperted amounts of revenue and expenses for that year. Although these estimates are based upon management's best knowledge of current events and actions, actual results eculd differ from thease estimates. Any revision ko accounting estimates is recognised appropriately.
23 Fixed assets and depreciation/Amortization expenses Property, plant and equiptment Property, plant and equiptment ara stated at cost less accumulated depreciation. The cost of tangible fixed assets comprises of the purchase price, taxes, duties, freight (nel of discount and rebates) and any other directly attributable expenditure of bringing the assets to their working condition for thes intended use. The Company provides dearesiation using straight liné method on the basis of useful life of fixed assets specified by Schedule Ito the Companies Act, 2013. Individual assets costing Rs. 6,000 or lass are fully depreciated on pra-rata basis. Leasehold improvements are amertised over @ period of § years .
Intangibie aggete Intangible assets are carried at cost of acquisatlon less amortisation. The cost of intangible asset comprises of icense fees and cost of amplementation / system integration services. Intangible assets are recognized oniy if it is probable that the future economic benefits thal are attributable le the agset will flow to the enterprise and the cost of ihe asset can be measured reliably. Software és amoriised on a straight line basle over its estimated useful jife or & years, whichever is lower.
Cepital Work in prograsa Fixed asset under construction / development and asset acquired but not ready ior there intended use are disclosed as capital WOrK-in-progress.
24 Revenue recognition 3) Interest Income on portfolio jeans is recognized on accrual basis taking inte account the amoyni outstanding anc rate applicable except in the case of non-performing assets (NPA’s} where it Is recognised, upon realisetion, as per prudential Rom of RAL.
i} Loan processing fee incerne is recognised at the lime of loan disbursed to the borrower.
¢) Interest income on deposits with banks is recognised on a time proportion accrual basis taking inte account the amount oulsianding and the interest rate applicable,
d) Al other income is recagnized an an accrual basis, when there is no uncertainty in the ultimate realization/collecton. @} income on direct assignment The Company enters into arrangements for sale of loan receivables through direct assignment and securitization, The said assets are de-reacognised upon transfer of significant risks and rewards tp the purchaser and on meeting the irve sale erileria,
The Company relains the contractual right bo receive share of fulure monthly interest ie. Excess Interest Spread (E18) on the transferred assets which is the difference between the pool IRA and the yield agresd with the porfolie buyer.intarast on felained partion of asgigned porticlia is recognised on accruat basis except in case of non-performing assets wherein Interest Income is recognised on receipt basis as per NBFC prudential norms. This Is in line with RBI Master Direction- Non-Banking Financial Company+ Systemically Important NonDeposit taking Company and Deposit faking Company (Reserve Bank) Directions, 2016 dated 6+ September 2016. : Svatantra Microfin Private Limited
Notes to the financial siatemants for the year endad 31 March 2026
25 Accounting for taxes on income: Currentta is the amount of tax payahle on the taxable income for the year as detenmined in accordance with the provisions of the Income Tax Act, 1981. The deferred tax for timing differences between the book profs and tax profits for ihe year is accounted for using the tax rates and laws that have bean enacted or subsiantively enacted as of the baiance sheet date. Deferred tax assets arising frorn timing Gifferences are recognised to the extent there is a virtuaVreasonable certainty that these would be realised in future and are reviewed for the appropriateness of the respective carrying values at each balance sheet date. Fhe Minimum Alternative Tax (vit) credit is recognized a5 an asset only when and to ihe extent there is convincing evidence that the Company wilt pay normel income tax du7ing the specified period. in the year la which the Minimum Allemative Tax (MAT) credit becornes eligible to be recognized as an ageel in accordance with the recommendations contained in guidance issued by the institute of Chartered Accountants of india, the said assat is created by way of a credit to ine statement of profit and i939 and shown as MAT Gredit Entiiement The Company reviews the same at each balance sheet date and writes down the carying amount of MAT Credit Eniitlement to the extant there is no ionger convincing evidences fo the effect that the Company wilt pay normal income tax during the specified peed.
Investments Investments that are readily realizable and are Intended to be heid for not move than one year from the date on which these investments are made, are classified as current investments. All other investments are classified as lang-termn investments. Long-ten Investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investmenis. Current investments are canted at lower of cost or fair value.
27 Pretiminary expenses Preliminary expenses aré charged to the statement of orofit and loge in the year in which itis incurred.
aa iRetirement benetitsae i, Defined contribution plass: ‘The Company contributes to Employee's Provident Fund (@ defined contributien plan} towards post employment benefits, which is adminigtered by the respective Government authorities and ine Company has no further obligation beyork making its Sonbibution.
lis Bet L Gratuity The Company hag a Defined Genefl Plan namely Gratuity for all its employees. The liability for the defined benefit plan of Gratuity is determined on the basis of an actuarial valuation by an independent aciuary al the year end, which is calculated using projected unit credit method. Actuarial gains and tosses are recognized immediately in the statement of profit and foes. Gratuity is funded with an approved trust.
Employee leave encashment The employees of the Company arte entitled to leave as per the leave policy of the Company. The liability in respect of unutilized jeave balances is provided based on an actuarial valuation cared cut by an independent actuary as at year end which is calcutated using projected unit credit mathod and charged to the statement of profit end joss.
2.9 Employee Stock Option Scheme (‘ESOP"} The Company has formulaied an Employees Stock Option Scheme (‘Scheme"). The Scheme provides that subject to continued employment with the Carmpany, employees of the Company are granted an option to acquire equily shares of the Company that may bo exercised within a specified period. The Company follows the Invinsic valve method for computing the compensation cost for ail options granted which will be amortized over the vesting period. Measurement and disclosure of tha employee share-based payment achemes are dene in accordance with the Guidance Nole on Accounting for Employee Share based Payments, issued py ihe Institute of Chartered Accountants of india. The difference between the fair value of the stock option granted and the exercise price, if any, is expensed as “Employee Compensation’ over ihe period of vasting.
240 Cash setteled share based payments { Phantom Steck Plan} Phantom stock units granted to @ consultant under the Gash-settled Share-based payment plan (Phaniom Stock Pian} is recognised based on intrinsic value method. Intinsic value of the phantom afock unit is determined in accordance wth the Guidance Mote on Accounting for Employee Share based Payments, issued by the instituie of Chartered Accountants of Incia.
244 Leases Leases where {he lessor effectively retains substantially ail (he risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on straightine basis aver the lease term.
Svatanira Microfin Private Limited
Notes i¢ the financlal statements for the year ended 34 March 2020
2.12 Borrowing casts Borrowing cost includea intereal, processing fees and other costs incurred in connection with the arrangement of borrowings. All borrowing coats aré expensed in ihe period they occur.
213 Impairment of asseta The Company assesses at each balance sheet date whether thera is any indication {hat an aesel may be impaired, if any such indication exists, the management estimates the recoverable amount of the asset. if such recoverable amoual of the asset is lass than its carrying amount, the carying amount is reduced to its recoverable amount, The reduction is eated as an impaisment loss and is recognized in the statement of profit and foes. Hat the balance sheet date there is an indication that if a Previously assessed impairment loss no fonger axists, the recoverable amount is reassessed and the asset is reflected at ihe recoverable amount subject to a maximum of depreciated historical cast.
214 Provisions ang contingent liabilities The Company creates 9 provision when thera is a present obligation as result of a past event that probably requires an outflow Of resources acd a reBable estimate can be meade of the amount of the obligation, A disclosure for a contingent Rability is mace when there is a possible obligation or a present obligation thal may, but probably will aot, requites an outflow of resources. Where there is a possible obligation cr 2 present obfigatiors Ir respect of which the likelinood of outflow of resourses is remote, no provision or disclosure is made.
Provision on standard assets has been made in line with the NBFC-NB-NSi Prudential Norms.
‘The overall provision for portiolic ioana are determined as prescribed in the NBFC-MFI Directions. These Directions require the total provision far perticlio loans 10 be higher of (a) 1% of the ouisianding Joan portfatio or (b) 50% of the aggregate [oan instaiments which are overdue for more than 90 days and less than 120 days and 100% of the aggregate loan insteiments for 180 days or more.
Such provision created in order to comply with the NBFC-MFI Directions is classified and disciosed in the Salance Sheet as contingent provision for standard assets.
Afi ioans which are overdue for 730 days or more or in the opinion of ihe management, any amount which is not recoverable are written off.
2.15 Agset classification norms Standard assets means the asset in respect of which, no default in repayment of principal or payment of interest is perceived and which does not disclose any problem or carry more than normal sisk attached to the business. Non performing assets means an asset for which, interest principal has remained overdue fora periad of 80 days or more.
Porticiie Ioang under assignment ere de-recognised in the balance sheet when they are assigned subject to the Minimum Ratention Criteria(MRC}) MRC portion of assigned loan are shown under Loans and Advances. Assignment,
2.16 Earnings per share The bask: earnings per share ("EPS") is computed by dividing the net profit/ (oss) afler tax for the year available for the equity shareholders by the weighted average number of aquity shame outstanding during the year. For the putpase of calculating diluted earnings per share, fet profit{ioss) after fax for the year availebie for equity sharehokiers by ihe weighted average humber of shares oulelanding during the year are adjusted fer the effects of ail ditutive potential equity shares.
247 Cash and Cash Equivalents Cash and Cash Equivalents for ihe purpose of cash flow statement comprise cash on fend and cash at Dank including fied depesits with original maturity period of three months or jess and short term highty liquid investments with an original maturity of three monthe or lass.
Chanered } t Accountants
Svataniza Microtin Private Limited
Notes fo the financiat statements for the year ended 31 March 2026
3 SHARE CAPITAL Ag at As at Particulars 34 March 2020 31 March 2049 (Rs.} {Rs.}
Authorised 755,000,000 (Previeus year 180,000.,000) Equity snares of Rs.t0 each, fuby paid 7 650,000,000 1B, COG, OG 80,000,000 (Previous year Md } Preference shared of Rs.100 each, fully paid 3,000, 000,000 : Total authorised capital 10,550 (0) 1,886,006 ,601
hgued, subscribed and fully paid-up 252,046,875 shares (Previous year 172,046 875 shares) Equity shores of Re. £0 each fully paid up 2,520,468,750 4.720,468,750 8,066,000 shares (Previous year Ni) 6% Compuisecily Cosweriie Non Cumulative Preference Shares of Rs. 100 each fully pald up 600,000,000 .
Tota] issued, subscribed and fully paid up share capital 3,320 486,750 120,468,766
oulatanding at the beginning of the year 472,048,875 1,720488,750 192,343,760 4,323,437,500 issued during the year 60,000,000 BO0,ROG,0G0 38,703,125 307,031,250
4
As at 31 March 2079 Rs.
oulslanging al the beginning of the year issued during the year 6,000,000 Shares back the at the end of the
The Company has equity shares having & par vedue of Rs,10 per share, Each holder of equity shares is enlitied to one wole per share, In the event of liquidation of the Compariy, the holdars of couily shares will be entitled to recelve remeining assets of the Company, after distibuion of ali preferential amounts. The distribution will be in proportion t¢ the nunhar of equity shares neld by the shareholders, Preference shares Tha Company has issued 8.000,000, 5% Compulserh: Convertible Non-Cumulalive Preference Shares (CCPS) having a par vaiue of Rs.100 per share with fokowing ferm below. 1. The COPS shall cary a fixed rate of dividend of 5% (Five Percent on the capital paid up thereon calculated on a proportionate basis from the date of allotment 2. The payment of dividend on CCPS will be on non-cumulative basis. 3. The CCAS shall be compulsorily convertible into such number of Equily Shares an expiry of 10 (Ten) years tram the date of allotment at price valued by a Chartered Accountant having minimum 10 years’ of experience at that paint of time. 4. The COPS shall not be redeemabie, since it is compulsory convertible §& The COPS will cary preferential rights vis-a-vis Equity Shares of the Company with respeci to the payment of Dividend and repayment af Capdal during winding up. 6. The COPS shall be non-participating in the surplus funda & assels end profits on winding up which may remain after the enlire capital has been repaid. 7. The COPS shall cary voling sights as per ihe provisions of Memorandum and Articles of the Company. & The COPS shall rank pan passu in af respects, subject to ihe provisions of the Memorandurn and Articles of Association of Company. 9. AR other temas, condilinns and right of the preference sharaholders shalt be subject to the provisions of the Memorandum and Aricies of Associaton of ihe Company and the Companies Aci, 2013. Pursuant to ihe Board resolution daied 20 Mey 2619 and 30 Seplember 2019 during the year, the Company hes ailotled 8C,000,000 (Previous year 39,703,128 issued pursuant °) to the Board resolution dated 10 December #018) Fuby paid-up equity yhares having face value of Ra.1G each on a right issue dasig to the following parties: Ho. of saree Allotted No. of shares Allotted for the year ended 34 for the year ended 31
TGS Investment and Trade Private Limited 1,750,000 9,454,500 Infocyber India Private Limited $00,000 7,183,500 Svetentra Holdings Private Limited 490,000,000 . IGH Hoklings Prvate Limited $000,000 7,935.489 Bida Group Hokfings Private Limited 19,550,000 10,069,875 Umang Commercial Compeny Private Limited 10,200,000 $056,781 Total 30,000,000 38,703,126
Pursuant to tha Board pesqlution dated 14 January 2020, 10 February 2020 and 31 March 2020 during the year, the Company has allotted 4,000,000 fully paid-up preference shares having face value of Re. '00 ach 19 the following paries: Kin. of shares Allotiad No. of shares Allotiad for the year ended 34 for ite year anded 34 March 2025 March 2018
Svalanira Holdings Private Limited 8,000,000 - Totat 9,000,000
d) Sharehoiers’ hokiing more than 5% equity shares in ihe Company :-
fs at 34 March 2020 As at3i March 2019 Name of Sharshotder io. ol shares neki 4 of Holding No. of shares held % of Heading Mia. Apenyashree Sida 207,846 B74 #2.45% - * Svatantra Holings Privaie Limited 40,900.00 th.8TH “ * (GH Holdings Private Limited . - 34,387,004 19.05% TGS Inyvesiment end Trade Pevate Limited - 40,869,500 2h.81% lnfocyber bidia Private Limited - 341,128,500 18.09% Bicla Group Moldings Private Limited . 43,636,125 26.40% Uraang Commercial Gomoany Private (imited - ~ 21,925,719 12.74% Fotel 247, B45,076¢ 58.43% 772,045,575 [e5.0%
r Chartered Accauctant Svatantra Micratin Private Limited
Notes to te financial stata mants for the year ended 34 March 2020
4 RESERVES AND SURPLUS As al As ot Particulars 31 March 2a20 31 Merch 2018 Ra) iRs.}
Senurities premium As par last Balence Sheet 400,000 400,000 Closing Balance 400,000 400,000
Statutory Fasonre 4 JAS par last Belence Shast 37,735,291 4,415,382 Add: Transtared from Statenen! of Profit and Loss 72,649 800 33,320 900 Ciosing Batance 116,586,001 UF36,204
Surplus! (deficit) in the statement of profil ant toss Opening balance (13,295,254) (146,498,089) Profit # (ies) for the year 383,248,753 166,804 547 Lose: Transtaria Staiulory Raserva 72,649,800 33,220,900 [Closing Balance 277,333,642 C3, 245,554) Teta (athe) 336,489,739 24,920,940
“Gtatulory reserve represents the reserve created pursuant to the Reserve Bank of India Act, 1994 (the RBI Act"). In terms of Section 45.10 of the RBI Act, a Non-Banking Finance Company i¢ requirad to iraneter an amour nol Jess than 2054 of its net profit to @ reserve fund betore declaring any dividend. Appropriation from this resarve fund is panmitied only for tha purpose specified by tha REI
6 LONG TERM BORROWINGS As at AB at Particulars a1 March 2020 4 March 2043 {Rs} Rs.)
Secured Term Lian ‘fram banks" 6,955,105,062 3,986,550, 156 4rom nen banking Ananciat compenies (NEF Ce) 4,405,975,015 Se7, So8.746 -from ether Financia! institututlan™** 354,660,006 : 14.70% Unsecured redeemable nen-converlible debentures" 756,000,000 750900,000 13.50% Unsecured redesmable non-cooverlibla debentures*™* $50,000,000 ~ Tota 56t8,730,077 §,733,058,296
™ Secured by pési-pasau first charge by way of hypothecation of aii receivables of the Company, in the fayeur of security trustee. Loans availed having tenure of 12 months te 84 months wilh a moratorium peicd of 1 months lo 12 months and tha game are fapayable in monthly and quarterly instalment, repayment starting after complation of respective moratorium period with interest rate ranging from 8.90% to 12.2695 (previous yeer 5.30% to 12.50% }.
** Secured by pari-pasad fret change by way of hypathecation of ail receivables of the Company. in the favour of securily trustee. Loans availed haying tenure of 12 months to 48 monthae with a moralorium period of 3 months to 6 months and the seme are repayable by monthly,quarterty and by way of butlet payment starting afiear completion of respective moralerium period with interest rate of $.40% to 12.20% (previous year 8.40% to 12.20% ).
=" Loan availed of $0,090,000 USD was Laken from Acoa FS Lid (First tender) and same has bean taken over by REL bank Limited by way of Beed of Accession for INR Loan. The Company will ba paying to RBL Berk Limited in INR and RBL bank Limited will pay to the first iender. ha loan is secured by pari-passu first change by way of hypothecation of ali receivables of ihe Company, in the favour of security irusiee. The tenure of the Inert is 36 months with & bullet principal repayment and inarest payable on hall yearh basis @ Libor (Liber on second London Banking day) plus 43%
“™ Tre Company has made issue of 750 unsecured, subordinated, fully paid uprated, unlisted, taxebie, transferable, redeemable, non- cenvertibis debentures of Rs.1,G00,000 each at coupon rate of 11.76% pa. to Tata Capital Financial Servinas Limited. The said deberiuras of Rs. 7S crores ara fedaemable on SO November 2023 at face value of Re 1,000,000 aach As on 31.06.2020, the salt debantures are held by the Foliowing parties:
Ax at As at Name of the debenture holders Held
Franklin Inca Short Term income Plan
The Company has mada issue of 15,000,600 unsecured, subrdinaisd, idty paid uprated, unlisted, taxable, ransfaratle,redeemable. non- convertible dabentures af Rs.10 each at coupon rele of 13.75% pa. to Vivnili Samarth Bond Fund. The seid debentures of Rs, 15 crores are readeamabie on 31 March 2026 al face value of Rs. 10 each. As on 34.03.2020, the said debentures ere hald by the following panies:
As at Ad al Nema of the debenture holders DE Marci: 2020 34 March 2019 Bobantures Heid [No.5 Bekenturea Hald (No.} Mott: Samenh Bond Fund 15,000,000 x
Chartered A accountants §
Svatantes Microfin Private invited
Notes to the Anancial statements for the yaar ented 31 March 2020 @ LONG TERM PROVISIONS As at Aa at Particulars H March 2020 Mi March 2098 (ita) {Ru}
Provision for Porttaiio Loan 101,324,732 - ‘Gratuity (Funded) (rarer note na. 28) 14,280,526 6851,693 Leave ancashment (Linfunded} 22,793,450 9,022,477
Fetal 436,758,708 45,074, 104
7 SHORT TERM BORROWINGS Aa at Aa at Panticutars March 2020 34 March 2079 ifs.) jRe.}
Secured Term Loan dron banks 400,000,000 900,000,000 rom nen banking financial companies (NBFCa} 100,000,000 225,000,000 Cash credit from 4 bank™ 431.2496.080 FOO.0G8.077
Totes B34 2a 050 525 058 077
Refer note § and 5.1 above * Secured by pari-passu firal charge by wey of hypolhecation of ell receivables of the Campany. Inderest rate 9.95% 19 14.00% (previous year 9.55% to 10.75%).
$ TRADE PAYABLES As at Ag at Particulars 4 March 2026 Ft March 2018 [Rep {Rs}
Pola! Guistanting Gues of micro and small enianprices - - Tote) autelanding dues other than migre and small enterprises 36,615,449 6,242 066 Total 36,545,448 36,242,066
Fodiewing disctosures a8 raquirad under Séction 22 of the Micro, Smail and Medium Enterprises Development Act. 2006 has been made to the extent information available with the Company:
Ag at Ag al Partiodars 34 March 2020 41 Merch 2018 ih Principal ancunt emaining unpaid io any supplier as al the end of the! aCcOUnTNG year (ii) Interest due thereon remaining unpaid lo any suppiler ay af the end of the accounting year dij Tha amount of intarast paid by the buyer ih terns of section 16 of the Micro, Small and Madium Enterprise Development Adi, 2006, alotg with the amount off the payment mage io Ine supplier Beyond iho appointed Cay cuting aech accounting yaar.
(i¥) Fhe amouni of ietengst due and payable for the period of delay in making payment Avhich have been paid bul beyond the appointed day during the year) but without adding the inlares! specified under Micro, Small and Mediu Enterprise Development Act, 2008.
(v) The emount of inferest Bccnuec and ramalning unpakt af ine end of aach accounting year; and {vi} The |nrou cf lurlher miterest femaising dus and payable even in the Sutcasding years, Unt sush dete wher the interes! dues as above are actually paid io the email entemprise for ths purpose of cisetowarce as a deductible expenidince under sadion 23 of tha Mion. Ginall and Medium Enterprise Revekioment Act, 2006
i ag wn crayteted aeeountant
Svatantra Microfin Private Limited
Notes to ihe tiancial statamancs for the year ended 31 March 2020 3 OTHER CURRENT LIABILITIES Ag al Ag at Panicutars 31 March 2020 1 March 2019 (Rs) ifs.)
Current matutities of long term borrowings. from Banks (Refer Nove 5 and 5.1} 8,691,041 656 3,664,596,412 ‘Curent maturities of long tern borowings- from NBFCa (Refer Nola 5 and 5.1) 4 ,280,375,625 636,341,979 Interest accrued bul nol due on borrowings V4, 172,679 118,085, 876 Statutory dues 22,400,953 20,085,574 Employees dues payable 28,972,582 20,696,786 Payable towards Direcl Assignment and Secuitization ( Refer Nete 34.1) 466,008,443 75,865,623 Craditor for capital goods - B63, 657
Totat 78, oa O06. 0s9 8,540,018, 817
40 SHORT TERM PAOVISIONS Anat Particuiars 31 Mareh 2020 3M March 2049 ite.) ifs}
Provision for Porfodo Leen 50,454,918 247 100,784 Additional provision agamet standard assets 4,583,768 * ‘Leave ancashkmant (Unfunded) 645,275 231,885 ‘Oiher provisions ( Refer Nole 29 b} 248,218 124,141 Total @a,d62, 147 Biz oi6,700
On 17 Api 2020 Reserve Bank of India issued notiicatien vide document no. RBW201 320220 DOR, NO. BP. BC.6d21 04 .048/2018-20, announced the COVINA ragulatery package Ie make general provision of 10% of joan eutslanding (nol fess than 5% by quarter on 31s! March 2020 and another 8% by quarter ending en 30 June 2020). Accardingly addilional provision of Ra, 19.63,766 has been made,
$2_LONG TERM LOANS ARD ADVANCES Ag at AS at Particulars 21 March 2020 1 March 2019 is.) (fia) Portfolio Loans + Joint Liability Group loans Unsmeured, considered gaod* (Refer Note 53} 40, 427,377,787 A434 BSS, 860 Unsacured, considered doubtiul™ (Refer Note 5a) 3,161,467 1,182,974 Secunty dapasits 10,909,450 6,954,306 Propait expenses 8,708 1,782,627 Capital advances 3,823,620 - Employee loaria 4.177 0658 2,200,989 Recewables ioward Direct Assignment and Securitization - Minimum Relension {Rafer Note 35} 367,893,174 45688, 159 Advance incare tak 24,022,935 14,846, 194 {ost of provision for lax Rs, 282,875,782 ; previous yer Rs, 74,898,225)
‘Total 10,547, 498,823 $456,207 097
*Reprasents standard agaete in accordance with Company's aiset classification norms poley ~ Represents non pecorming assets in accordance with Company's asset classification norms paliay
13 OTHER HON-CURRENT ASSETS Aa at ABat Partiowars 31 Mareh 2020 31 March 2015 [Raj {Rs.)
Other Bank balances ~ in fixed deposit accounts with original maturity of mare ihan 12 mantis 60,555,678 TRB, 7er
Fotal ‘80,555, h78 126,787
Svatantra Microfin Private Limited
Notes ta the financial statements for the yaar enced 341 March 2020 14 DEFERRED TAX ASSETS (NET) As at Az at Particutars 4 March 2020 34 March 2045 [Rs.) {Ra}
Deferred tax assets [Contingent provision 44,700,008 53,076,768 Praliminety expenses 4.128.597 2,084,399 Provision for retirement benefiis 9.483 920 A AGS ATS tA) Bb922, 525 65,925,543
Deferred tax liablilites Fixed assels: Impact of difference between tax depreciation and depreciatiqn/anortinalian charged far the financia! reparting: 4,240,405 650,851 iB) 3,280,453 650,557
Deterved tax eesct (net) (A+ 6) Gi sen, 550 86 577 std
15 CASH AND CASH EQUAVALENTS: fa af Ae at Particulars 1 March 2020 34 Maveh 2019 IRs} (Rs.
Gash and cash equivalents - Gash on hand 1,431,015 Tt 1,789 - Balance with banks + In current accounts 3,202,470,302 1,056,687,846
~ in fixed deposit sccounls with original maturity of less than three months: 4,000,056, +B4 50, 184
Total 42203, 061,509 1,057 $49,929
16 SHORT TERM LOANS AND ADVANCES As af Asal Particulars 3t March 2020 31 March 2019 is) (fin) Porttclh Loans nit Liability Group inans Unsecured, considanad god" (Relat Note 33) 8,51 87,690 6,922,798,451 tingecured, considered déubtul" (Refer Nota 53) 238,125,503 282,223,721 Loan to carporstas Loans to body cerporale 60,000,000 - Advance recoverable mt caeh or kind or for value lo be raceived 90,820.82 936,634 255 Prepaid egenses 57,589,765 40,680,819 Salance with government auihocties 4,300, 365 1.835, 572 Security deoosis 6,338,776 4,498,976 Prplayse loans 2798.18 1,321,220 Receivables toward Oirect Assignment and Securitization - Mkimum Retension tReier Hote 35} 356,485,077 74,299 389 Tota! @.S57 724,749 7,306, 208,006
* Represents slanderd assets in accordance wih Company's asset classificalion norms policy “ Represents non perlorming assets in accordance with Company's asee! classification nonns policy
7 OTHER CURRENT ASSETS (Unsecured, considered geod) Ag at Ag at Particukare M1 March 2020 34 March 2049 {Rs} (Rs.}
Interest accryed but not die + Of porifolia loans 497,240 409 191,725,933 ~ontixad deposits 2.010.287 5,654 Total 435,250,794 183 131,787
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Svaiantra Microfin Private Limited
Notes to the financial aiatements for the year ended 34 March 2020
18 REVENUE FROM OPERATIONS For the year ended | For the yeer ended Particulars 2015-26 2018-49 {Bs.) {fs
Interest Income on pertiotio loans 2,704,587 243 1,558 885 998 Interest income on body corporate loans 1,219,378 - Income from Direct Assignment ( Refer Note 35) 452,854,739 45,579,180 Processing fees 247,620,487 143,07 1,564 Campaission 140,877,815 43,306 607 Total] 3,646,000,d12 1,760,843,350
13 OTHER INCOME Forthe year ended | For the year ended Particulare 2019-20 2018-18 {fs.} iRs.)
Interesi income on - Bank deposits 4,698,174 1,957,917 ~ Staff loans 496,887 361,412 Miscellaneous income 6,527,615 1,768,939 Recovery against loans written off 2,727,632 6,396,004 Profit on sale of current investments 51,826,002 14,238,088
Total 65,475,319 24,731,746
20 EMPLOYEE BENEFITS EXPENSE For the yaar ended | For the year endad Particuiars 2019-20 2048.49 (Red (Rs.)
Salaries and allowances 808,217,820 921,138,552 Canitibution #0 provident and other funds 64,690,529 36,983,174 Staff welfare 74,373,680 35,355 546
Total 948 an2,428 492,474,572
21 FINANGE COSTS For the year ended | Por the year ended Parti¢ulars 2618-25 2013-18 (Ra) (Rts.)
finerest expenses 9,506,280, 100 703,463,251 Other borrowing costs 105,474,622 78 432,658
Fotal 1,$41,731,622 781,886,905
22 DEPRECIATION / AMORTISATION EXPENSE For the yearended | For the year ended Particulars 2049-20 2018-19 (Rs) iRs.)
Depreciation on property, plant and equipment 48,876,044 19,431,793 Depreciation on intangible assets 7,294,291 §,977,483 ‘Total 44,270,252 35,409,156
Svaianira Microfin Private Limited
Notes te the financial statements for the year ended 31 March 2020
23 OTHER EXPENSES Forthe year snded | For the year andad Particulars 2049-26 2018.15 (Rs. (Ra.}
Advertisament expenses 546 956 392 808 Rates and taxes 3,730,585 171465 Rent 66 AS 807 39,484 058 Communicaiion expanses 22,398,836 12,036,520 ‘Travelling and corvayanse expenses 114,044 066 66,280,500 Training expenses 43,580 489 1,048,738 Recruitment expenses $32,547 427 8F0 Insurance expenses #71597 1,006 $22 Miscellanéous expenses 42,356,365 3,629,639 Printing and stationery 47,120,723 $586,851 Legal and professional fees 37,127,903 22,256,387 Website development expenses 1,871,828 918,702 Electricity and water expenses 9,217,621 5,815,740 Membership aad subscription 4,624,216 2,279,601 Repairs anc maintenance 25,393,879 43,202,454 Share issue expenses 12,769,000 4,197,032 Loss on sale of assets 126,624 - Cash management charges (CMS) 414,200,724 8,904,722 Bank charges 3,660,464 6,240,043 Auditors’ remuneration - Audil fees 1,882,006 1,226,250 ~ Tax audit fees 234,360 218,000 - For olber services. 27250 27250 Total 364,122,512 199,225,101
24 CONTINGENT PROVISION AGAINST STANDARD ASSETS, PROVISION FOR NON PERFORMING ASSETS AKD WRITE-OFF For the year ended | For the year ended Particulars 2019-20 2018-18 iRz.) [Rs.}
Provision on standard asset 2,600,000 - Provision for non-pertarming assets (27,881,413) 44,529,866 Additional 5% provision on standard assets 1,963,766 ” Fortiolio Loan and other write-off 150,462,857 4,099,775
Total 127,446,516 46,669,641
25 EARNINGS PER SHARE For the year ended | For the year endad Particulars 2018-20 2048-19 iKs.) (Rs)
Profit/ Goss) after tax as per statement of profil and loss (Ks.} 383,248,793 166,604 547 Weighted average nursber of equity shares outstanding al fhe year end (Nos.} 227 633,485 142,703,619 Basic and ditied earnings per share (Re.)** 1.564 1.167 Number of shares under Employees stock options scheme (Nas.) $42,859 486,623 Weighted Average number of equity shares (including ditutve ESOP shares) outstanding al the year end (Nos.) [A] + [B] 228,778,352 143,190,242 Dilitec camings per share** 1.888 1164 Nominal value of shaté (Rs) 103 10
Note: The Company has allotted 60,000,000 (previous year 39,703,125) equity shares of Rs. t0 each paid up, ag right shares and accordingly, earnings per share for the previous year has been presented. “6% Compulsory convertible non cumulaiive preference share (CCPS) shall be compulsorily convertible inte such number of equily shares on expiry of 10 (len) years from the date of allotment at the price vaiuied by a Charterest Accountant having minitnum 10 years of experience al that point of time. hence CCPS ig pot considered while calculating ciluted EPS.
Svatantra Microfia Private Limited
Notes to the financial statements for the year ended 2+ March 2020
26 a} CONTINGENT LIABILITIES: Contingent liadllity relaiing to defermination of provident furs liability, based.on a recent Supreme Court judgement, is not determinable 2t present, due to uncertainty on the impact of ihe judgement in absence of further clarification relating to applicability. Tha Company will continue to assess any further developments ih this mater for their Impilcations on financial statements, if any, which, baged on the number of employees, is nol expected lo be significant.
5} CAPITAL AND OTHER COMMITMENTS: a Ag at Particulars a¢ Mareh 2020 34 March 2019 iRs.) (Fis)
Estimated amount of contracts ramaining to be execuled on capital accound and not provided for (net of advances} LAST aa 2,070,006 Totat £057,544 ZO7G,006
2T RELATED PARTY DISCLOSURES ih Reiated partles anc thelr relationships
a TGS Investment and Trade Private Limited ” {2} Bina Group Holdings Private Limited
Key management personne) Kumar Mangalarns Sire (Director) Neerja Biria (Director) Ananyashras Birla (hirector} Vineet Chatiree (Additional Director} Amgeel Varagker (Chief Executive Officer) Vrushali Vishal Mahaian (Chief Finencial Officer) (w.e.f, 2nd ine, 2020) Surlnder Kumar Bhatia (Company Secretary)
1-4 (7) Svatantra Holdings Private Limited (2) Vodafone Idea Limited
The related pany relationships hava been determined on the bagls of tha requiramants of the Accounting Standard (AS} - 18 ‘Related Pany Disclosures’ and the same have been relied upon by ihe auditars. The relationships ag mestioned above pertain to (hose retailed parties with whom transactions have taken piace during the year, except where control exist, in which case the relationships hava been menlioned inrespective of transactions with the reiatives.
Hy Transactions with related parties: Botalls of related party transactions are as Iovows: For the year ended | For the year ended Particulars 2049-20 2048-15
(Rs) (Rs. Equity stare capital iesuned :- FS invesiment and Trade Private Limited 17,506,000 94,545,600 Svalantes Holdings Private Limited 406,006,000 + IGM Haldings Private Limited 80,006,000 79,354,690 Bina Group Holdings Private Limited 195,500,000 100,658,750
Frefrence share capital secued -- Svatanta Holdings Private Limited $00,000,000 *
Services received + Vodafone itea Limited farm length price) 6.279.477 $,616,612
Remunerction to Key managerial persen- Anmdeel Vaeradkar 9.039, 748 4193, 232 Viushai? Vishal Mahajan 4.481.243 - Surinder Kumar Bhatia 2,738,308 2212821
Note: As the future fiability for gratuity and jeave encashment Is provided on an actuarial basis for the Company as a whole, ihe amount pariaining to the key management personnel are not ascertainadte ary, trerefore, nol included abowe.
2M Chartered | L Accountants Jfal j
Svatantra Microfia Private Limited
Noles to the fingncial statements for the year ended 31 March 2026
28 Employee Benefits:
Consequent lo ihe adoption of Accounting Standard 15 (AS 15 Revised 2009) on employee beneilts, the fofowing disclosures have been made as required by the slandards ; Retirement benefits in ihe jorm of Provident Fund are a deBnad coniributlon schame and ihe contributions are charged to the statement of prot and loss of the period when the contribution to the respective lands Is dua. There are ne other obligations ather han the contfibution payable to the respective trusts. Valuations in respect of Gratuity have beer Carried out by independent actuary, aa at the Balance Sheet dele,
8} Defined contribution plan Contribullons te defined contibution ptans recognized as expense for the period are as under.
Particulars For the year ended | For the year ended 2039-20 £948.19 (Re) Ra} Contribution to provident fund 49,050,737 25,788 896
b} Defined benefit plan Gratuity and laave encashment Eanililes is3 defined banafit obligation and is provided for on the basis of an actuarial valuation made al the end of aach financial year.
Particuiars
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Svatantra Microfin Private Limited
Notes te the financial statements for the vear ended 34 March 2020
30 SEGMENT INFORMATION
The Company operates in a single reportable segment L¢. financing, which has similar risks ark returns for the purpose of AS 17 on ‘Segment Reporting’ specified under Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014. The Company operates in a single geographical segment i.e. domestic,
xi LEASES The Company has entered into the operating lease for office premises. Future manunum lease payments under non cancellable operating lease as follows:
Ag at AS at Particulars FA March 2020 34 March 2019 (Raj {Raj Payable not later than one year 5,040,006 -
Payable faler han one year and ~ - het later than five years
The amiourit of minimum lease payments with respect fo lhe above lease recognised in the statement of profit and lass for the year is Rs. 66,426,807 (previous year Rs. 39,484,058}. Above cisclosure is for leases entered after 1 April 2001, as per Accounting Standard (AS)- 79 'Leases’,
Svatantra Microfin Private Limited
Notes to the Financial Statements for the year ended 31 March 2020 The following table sets out the disclosure as required by the notification no, ONBS, 200 /CGM(PK)-2008 dated 1 August 2008 and DNBR. PD. 008/03.10.119/2016-17 dated 1 September 2016 issued by RBI.
Particulars Current Year Previous Year
33 Investments There are no investments as of current and previous year end.
34 Derivatives The Company did not have any transactions in Derivatives.
35 Disclosures relating to Direct Assignment and Securitization
35.1 Disclosures relating to Assignment transaction During the year, the Company has entered into Direct Assignment ("DA") with a public sector bank ("Assignee” ) for direct assignment of ils portfolio Joans provided to various persons from time to time ("Receivables"). This has been duly approved by Board of Directors of SMPL in their meeting held ‘on 29 December 2018. Pursuant to this, following transactions have taken place during the year : Rs. In crores SINo. otal Sanctioned Receivables
the Minimum reserve for their share
consideration realized in respect of accounts transferred in earlier years
Further , pursuant to this transaction following closing balances are outstanding in the books of SMPL:
S/No. |Particulars As at 31 March 2020 | As at 31 March 2019 ST.OT 14 17.54 7.58
35.2 Disclosures relating to Securitization transaction During the year, the Company has entered into Securitization ("Pass Through Certificate") with a public sector bank for Securitization of its portfolio loans provided to various persons from time to time ("Receivables"). This has been duly approved by Board of Directors of SMPL in their meeting held on 26 September 2019 and 28 February 2020. Pursuant to this, following transactions have taken place during the year-
S/No. |Particulars As at 34 March 2020
accounts transferred in earlier
Further , pursuant to this transaction following closing balances are outstanding in the books of SMPL as on 31 March 2020:-
SINo. transaction
Svatantra Microfin Private Limited
Notes to tha Fitanclal Statements for the year ended 34 March 2024
a6 Details of son-perorning financial aesets purchased / sok The Campany hae not purchased/ scld non-oorforming Randal assets in the quirent and previcus yoar.
36.1 Disclosure on Liquidity Risk Background: RB! has issued final guideiings on Liquidity Rish Management Framework for Mas-Banking Financial Companies and Core investment Gompanias on November 04, 2019, As per the sakt guinielines, NBFC are required to publicly disclose the below information related to liquidity rigk ort & quarerty basis Actordingly, the disckosure on Eduidity risk as at March 31, 2020 is as yrafar.
i} Funding Concecuration based an sianficant ceunlerarty
Sr. No. Numebar of Glgnificant Rain % of Total Deposits ‘4 of Total Counterpariias ereres Liabilities $ 2 20th 45 NA, $3 bey
Notes A Significant counterpany" is defined a¢ a singia counterparty or group of connected oF affiliated counterparties aocounling in eggregate for mora than 4% of lhe NBFC-NDSI's, NEFC-Os tote fabiities anc 10% for piher non-deposit taking NBFCS
Tote! Liabtibtios has been compuled a8 Total Apses less Equity share capital iess Raserve & Surptus and computed basis extend reguiatory ALM gquidetines
i} Top 20 large Gepost (amourd i Croce and 94 of Late deposits} - Nol Applicable it) Top 10 bomowings Rs. In 56 of Total Crores Borrowings 1821.43 86.23%
Note: Total Sorrowing hte beer computed a2 Gross Total Debt basis exlant regulatery ALM gukiaiinas:
iy! i Sr Na, Name of the Res. In crores: ‘of Total abe ntfPpodiet Linkdlidies
Note: A “Rignificant instumenvoradict” is defined as & single insttument accounting in aggregate for more than 156 of the NOFC-NDS!'s total tiabilities.
wh Stock Ratios &r. No. Stock Ratio % 4 Non-convertine aebaniures: (orginal maturity of eas han png pear} ae & % of iolal liabilles : 2 Non nonwenine Gabent Tas (orginal maturity of ise nan one year} apa % of folal aeseis + a Other shorter babeties a5 a 4 of total RabiElieg 54.90% 4 Other shorter kabaies. HG & 4 Of Wlal asses 46.90%
Note: Other Shor-lern Liabilities hat been computed 26 Tolal Shart-tenm Liabilities less Commercial paper less Nor-convertinie debentures (Original methiity of less then one year), basis acta regulatory ALM guidelines.
vi) institutional set-up for Liquisty Risk Managanient The Board of Birectors of Ine Company has an cverali responsibiity and oversight for the management of all ha risks, including liquidity risk, to which ihe Company Is exposed to in the course of conducting its business. The Board of Grecia approves tha coastituion of ihe Risk Management Commies (RMMC} for ihe effective supervision, evaluation, monitoring and Teview of varous aspects and types of risks, including liquidity rlak, faced by the Company. ‘The meetings of RMC wil Be held on quarterly basis. Furttier, ha Board of Directors alto approves constitution of Asset Liability Cormmuttes (ALCO), wien address concame fegarcding Agset Liabkly mismiaicnes of the Company from risk-tetur perspective sd within ihe Wisk appelite and guard-rels approved by ihe Boar The main objective of ALCG |s to assist ne Beard and RMIG in effective Giachange of tne respansiiliies of assettiabilty management, markel risk Management, liquidity and interest rate risk management and alsa to ensure adherence 10 isk Iolgrance/Emits set up by ihe Board. ALCO provides guidance and directions ir tarms of intevest rate, liquidity, tunding sources, and Investment of surplus funds. &LCO mestings are held al reguiar intervals. The Secretary of the commnuiles stil piace lhe minutes of the meeling befor the RMG end the Board of Directors in its next meet ni perusairatification. ee “uaUseuBe LOTEZALNGSS pus jeWUaissy P e l Jpn paUBlese seiqex ozes Gupnpxe ‘SURO dnducy AU /KIRYT Jie -SUB07 ONC) IO Speseudeu soURApY TION Sanger Asveung ubjei03 BjaS82 AQUEUENA LOC Su az $9 £2 SBUMOLIOg BeQUNOOR [A YOOES BIUGUISSAL] ray oc Bel sanleApy
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DAYLE SPAN YGU O EU ERS Svatantra Microfin Private Limited
Hotes to tha Financial Statements fer the year ended 34 March 2020
36 Exposures
38.1 Exposures to Real Estate Sector The Company has no exposureto the real estate diectly or indirectly in the currant and previous year,
Exposures to Capital Market The Company has no exposureto the capilal market directly or indirectly in the current and orevwous year.
ES] Details of financing of parent company products The disclosure is not applicable aa the Company doas not have any holding/parant Company.
Details of Singie Borrower Lanit (8GL} J Group Borrower Limit (GB) exceeded by the NBFC Single Borrower Limit (SGL) f Group Bonewer Limit (GEL) has not exceeded the prudential exposure limils dudng the year by the Company.
“41 Unsecured Advances Refer “Note 12” and “Note 16" of Financial staternants.
42 Miscellaneous
421 Registration obtained from: other financial sector requiators The Company is registered with the following other financial sector regulators: (i) Ministry of Cosporate Affairs {i} Reserve Bank of india
Disclosure of penaities Imposed by RE! and other reguiators Ne pérally imposed by RBI and other requiaiors during the current and previous year.
Related Party Transactions (1) All material transactions with retated parties are disclosed in "Note 27" of ihe Financial Stelements
(i The Company has the policy on dealing with Related Party Transactionson its wabsite and # is disclosed on ils website WA. avatantramionis .com.
Ratings assigned during the yaar Ouring the current the credit 16 the Company:
During the year, thera ara no migration ef above mentioned ratings.
42.5 Remuneration of Directors During the year, ihe Company has net paid any remuneration to i's directors.
Nat Profit or Loss for the yanr, priot period Hens end changes in accounting policies There are na prior period tems end change in accounting pollciag except as feporied in the Financial Statements.
Revenue Recognition There are no such circumstances In whieh revenue recognition has bean postponed pending the resolution of significarl unceriainties,
Accounting Standurd 21 Conselidated Financial Statements {CFS} The Company does not have any subsidiary company and hence, the CFS is not applicable.
Svatantea Microfin Private Lintited
Notes to the financial statements for the yaar ended 34 March 2020
43 Additional Disclosures
431 Provislons and Contingencies
UP
fax Provision and
432 Brow Pown irom Reserves There have been no drawdawn front Reserves.
43.3 (2) Concentration of Geposits [for deposit taking NEFCa} Rs. in Crares Total Daposits of twenty jargest depositors Not Applicable
Percentage of Depasits of twenty largest dapesitors to Total Daposits of ihe NBFC Not Applicatle
43.3 [by Concentration of Advances Ra. in Crores Total Advances to twenty larges! bomowers 5.17 Percentage of Advances to bwenty targesl borrowers to Total Advances of ihe NBEC 4.33%
43,3 [¢} Concentration of Exposures Re. in Crores Total Exposure to twenty largest borrowers / Customers {in¢luding interes! acorued and due} 65.23 Percentage of Exposures to twenty largest harewers / customers to Total Exposureof ke NEFC on borrowers/ qustomars 3.33%
43.3 {d} Concentration of NPAs Rs. In Crores Total Exposure to top four NPA sccounts Goe
43.3 fe) % of NPAs fo Total Advances in that
43,4 Movement of NPAs
fo Nel Advances Movement of NPAs
(4) Movement of provisions for NPAs (axduding provision on standard
Svatantra Microfin Private Limited
Notes to the fluancial etalaments for the your ended 34 March 2020 43,5 Overseas Agscts During the year, thers are ng overseas assets in ine Company.
42,6 Off-Balance Sheet SPV¥s sponsored Buring ihe year, there are no off-balance sheet SPVs sponsored by the Company,
43.7 Customer fis articulers Previous Year Previous Year
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Svatantra Microfin Private Limited
Notes to the fliancial statements for the year ended 34 Marek 2020
a7 in the opinion of the management, the curent assels, son-cunent assets havea value on reakzation in the ordinary course of business ai leas! equal to te amount al which they are stated In the balance sheat The provision for all known Hebllibes |s adequate and notin excess of fhe amount reasonably stated.
48 Balances of certain ade receivables, rade payables, short tern joans and advances ard long term loans and @dvantes are subject 10 confirmation and reconcdilation f any. Tha management does not expect any material difference affecting the finencial statements on such reconct/ iconfiemation.stion
a5 The Companyis registered with the Reserve Bank of India (REQ as a “Non Sanking Financial Company. Miero finance Insifidion” vide Certificate of Registration datad February 05, 2043.
6o “Wn ferns of Para li of the Non Banking Financial Company Micro Finance Institutions (Reserve Bank} Directions, 2044 as nobfied vide notification no. DNBRAPD) GC.No. 047/03.16.119/2018-16 dated July 1, 2075, (as amended up to Api 20, 2016} a Micro Finance Instiiuiion (MFO is required to have notiags than 65% of ts ‘Net Assels’ in the nature of ‘Qualifying Assets’, As at March 31, 2020, the Company is jn compliance with this condition as its "Qualifying Assets’ is not less han 8594 of ils ‘Net Assote’.
a During the current fiiancial year, the Company has taintained an aggregale margin cap of nol mora than 10% on doans disbursed by it.
42 The disclosure required in terme of paragraph 18 of Chapter Iv-prudential regulations under Section -Prudential tssves of Master Direction- Non-Banking Financial Company-Not- systemically limportant Non-Deposil taking Company (Reserve Bank) Direction, 2018 is given in "Annexure
#3 In the previous year, Reserve Bark of india (REO vide notification no. DBR.No.BP.AC.37/21,04.048/2016-17 and DBR. No.BP.BC.49/2104,048/2016-17 dated November 21, 2016 and December 28, 2016 respectively, has provided falaxetion of additional $0 days aver the cuirent spectied period of 90 days for classification of dyves payable between November 1, 2058 and December 31, 2016 inte son-pactorning assed, Accordingly, the Company had delayed dassifcation of non-perfomning asget.
54 In March 2020, the Werld Heath Organization declared COVID-19 to be @ pandemic. Consequent to this, the Government of In@ia declared a national ioek down on 24 March 2020, which has impacted the business activities of fhe Company. The Gompany has been taking various precautionary measures to Protect employees and their farnilias tem COVID- 18. The GOVID -19 pandemic hes signiicarity impacted economic aciivities, businesses, individvels across the spectrum in the Country. Reserve Bank of India (RBI's guidelines dated 27 March, 2020 enabied banks, lending institutiens and NBFCs fo ofer a moralorum upto 3 months en repayment of EMis, Paythent of itarast on line of credit falling due barween 07 March, 2020 and 31 May, 2020 to all eligible borrowers, which has been extended tor a further period of3 months via REI circular dated 23 May, 2026.
Tha Company based on its Board approved poley, has engaged with ila active customers as af 29 February, 2020, and offered the moratorium as per thelr need. As on 31 March, 202, tne staging of these accounts is Gn the basis of days past duc slatus aa on 29 February, 2020 in kine with ihe aforesald RB! ckculars. As per the Company's assesement, ihis by lise has not resulied into any significant incnaase i the credit risk
The Company recognires ihe need to make reasonable estimaiion of the impact of this pandemic on the repayment ability of it borrowers. The Company hea analyzed its portolio on the basis of various parameters to ascertain the impact of Covid-18 and basis of ds estimates, assumptions and judgmenis has taken necessary provisions in its financial statements. Given the wncertainty ever the polaniiaf macro-econenic condition, the impact of the COVID-19 may affect tha underlying asgumptions and estimates usod to prepara the financial statements, which may be different from thal contkiered ag at the dale of approval of this financial siatement. The Company will continue to dosety manior any maleral changes 10 fulure economic conditions and euilable effec wil] be given in the respective future period,
BS Previous year's figures heve bean re-arranged or re-grouped wherever considered necessary to conform to the current year's presentation. Signature t to 65 Aa per our report of aver date atached FOR SURESH SURANA & ASSOCIATES ELP ON BEHALF GF THE BOARD OF DIRECTORS OF 1 WiGhartaredy ehambeke Accountanis 5B BVATANTRA MICROFIN PRIVATE LIMITED : i ei ee - if aidan enamaeren & COLT Needa Site Virkpt * Chatiree f Poriner CIRECTOR DIRECTOR Membership no. 13942 OIN No. 01020533 DIN Wg. 07962531 Fiace : Mumbai me ¥ a peete: 9 utSUN 2029 ay - 3 eel Varadkar Vrushali Mahajan HEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Sunde Kurmar Bhatia COMPANY SECRETARY Membership No. 17227 2Place5 » Mumbai JUN 2020"Place ; Mumbai25 JUN 2020
"Annexure (”
Svatantra Microfin Private Limited Schedule to the Baiance Sheet of a non deposit taking non banking financial company as on 34 March 2020 Discloaure in terms of Paragraph 18 of Systematically important Non Banking Financial (Non-Deposit Accepting or holding) Companies Prudential Norms (Reserva Bank} Directions, 2016
_ Particulars (Amount Rupees in Lakhs) Liabilities side {1} {Loans and advences availed by the non- Amount outstanding Amount Overdue banking financial company inclusive of interest accrued thereon but not paid fa) [Debentures Secured $000 NIL Unsecured Nii NIL (Other than falling within the meaniag of public deposits") (6) [Deferred credits Nil Nil (c)_ |Term loans 190, 165.02 Nil (2) linter - corporate loans and botrowings. Nil Nil fe} |Commarcia: Paper Nil Nil if} [Public Deposits* om Nil Nil Other Logns: Cash Credit 4,912.46 Nii *Refer note no. 1 beow (2) (Break-up of (1}f} above (Outstanding public deposits inclusive of interest accrued thereon but not paid} : a) in the form of Unsecured debentures Nik Nil () Jin the form of partly secured debentures Le, debentures where there is a shortfall in the value of security Nit Nil (c}_ Other public deposits hit Nil * Please see Note 1 beinw
. Amount outstanding Asset side ( Rupegs in Lakhs)
3 |Break up of loans and advances including} bills recelvables other than those included in (4} below
{a} Secured - {b} Unsecured 408 719.66 4|Break up of iszsed aesete and stock on hire and hypothecation joans counting towards AFC activities () |Lease assets including lease rentals under sundry debtors + (a} Financiai ease Not applicable {bh} Operating tease Not appficable i} [Stock on the hice including hire charges under sundry debtors ; (a) Assets on hire Not applicable (b} Repossessed assets Not applicable (if) /Other loans counting towards AFC activities {a} Loans where assets have heen repossessed Not applicable
{b) Loans ofher than (a) above Not applicable
Chartered }
RAcconmants f
5 i Break up Amount outstanding Current
Boe
Tiutuat securities
Debentures a
Oihers Borrowers group wise classification of financed as in and (4) above: Piease see Note 2 below
193,804 47 193,804.47
7 [investor Group Wise classification of ail investments feurrent and long term} in shares and securities {both quoted and unquoted): Please see note 3 below
Catego Amount outstanding (Rupees in Lakhs}
Market valuef break up Book value (net of of fair value or NAV Provision) 4 Related parties* {a} [Subsidisnes Nil Nit ib} [Companies in the same group Nil Nii (¢)__|Gther related parties Ne nil 2 [Other than related parties _ Nil Nil Total Nii Nil * As per Accounting Standard of iCAi (Refar noke no. 3 pelow)
$1. No. culers
assets
r Assets
Notes: AS defined in polnt xix oF paragraph 3 of Chapter -2 of these Directions, 2_ Provisioning norms shall be applicable ag prescribed ini these Diractions.
3. All Accourting Standards and Guidance Notes issued by iCAl are apalicable including for valuation of investments and other usseis as alsa assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments shail be disclosed irrespective of whether they are classified as iong term or current in (5) above.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS SVATANTRA MICROFIN PRIVATE LIMITED
RAB Ah ate
Neerja Birta Vineet Chatlree DIRECTOR DIRECTOR DIN No. 01020533 DIN No. 07962521 ee 4 feat Varadkar Vrushali Mahajan CHIEF EXECUTIVE OFFICER CHIEF FINANQIAL OFFICER a wee Surinder Kumar Bhatia COMPANY SECRETARY Membersitip No. 17227
Place : Mumbat Place : Mumbai baie 95 JUN 2028 bate:9 JUN 2029