12th Annual Report 2018-19
12th Annual Report 2018-19
INDEX
Corporate Information...... 4
Board and its Committees...... 7
Directors with their Profile...... 8
The Asirvad Journey...... 11
Letter from the Chairman...... 14
Key Trends...... 18
Directors’ Report...... 23
Annexure to the Board’s Report...... 33
Management Discussion Analysis...... 45
Corporate Governance Report...... 55
Secretarial Audit Report...... 63
Independent Auditor’s Report...... 68
Financial Statement...... 81
Notice of 12th Annual General Meeting...... 143
Corporate Events...... 151 3 12th Annual Report 2018-19
CORPORATE INFORMATION
1. COMPANY : Asirvad Micro Finance Limited
2. CORPORATE IDENTIFICATION Number : U65923TN2007PLC064550
3. REGISTERED OFFICE : 1st Floor, Desabandhu Plaza, 47, Whites Road, Royapettah Chennai – 600 014 +91- (44) 43510081
4. CORPORATE OFFICE : 1ST & 2ND Floor, Lemuir Building No.10, G.N. Chetty Road, T. Nagar Chennai – 600 017 +91- (44) 4212 4493
5. MANAGING DIRECTOR : Mr. S.V. Raja Vaidyanathan
6. CHIEF OPERATING OFFICER : Mr. S. Ramachandran
7. CHIEF FINANCIAL OFFICER : Mr. Mayank Shyam Thatte
8. CHIEF TECHNOLOGY OFFICER : Mr. Anand Sharma
9. HEAD (HUMAN RESOURCE) : Mr. Bikram Mishra
10. COMPANY SECRETARY : Mr. Anup Kumar Gupta
11. STATUTORY AUDITORS : M/s. Deloitte Haskins & Sells., Chartered Accountants, 8, ASV N Ramanas Towers, No. 52, (Old No.37), Floor-1,7,9 Venkatanarayana Road, T.Nagar, Chennai- 600 017.
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12. SECRETARIAL AUDITORS : Mr. S. Hari No.3, Palat Madhavan Road, 1ST Floor, Mahalingapuram, Chennai- 600 034 +91- (44) 2817 4480
13. REGISTRARS & TRANSFER AGENTS : S.K.D.C. Consultants Limited PB No. 2016, “Kanapathy Towers”, 3RD Floor 391/A1, Sathy Road, Ganapathy Post, Coimbatore – 641 006 T.N. +91- (422) 4958995, 2539835
14. DEBENTURE TRUSTEES : CATALYST TRUSTEESHIP LIMITED (Erstwhile GDA Trusteeship Limited) Windsor, 6TH Floor, Office No- 604, C.S.T. Road, Kalina, Santacruz (East), Mumbai – 400 098.
: IDBI TRUSTEESHIP SERVICES LIMITED Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai- 400 001 Ph No: (22) 40807020
: Vistra ITCL (India) Limited The IL and FS Financial Centre, Plot C-22, G Block, 7th Floor, Bandra Kurla Complex, Bandra (East) Mumbai - 400 051. Phone: (22) 25693602
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List of Bankers / Lenders
Public Sector Banks 21 Kotak MF 1 Andhra Bank 22 L & T Mutual Fund 23 Birla Sun life MF 2 Bank of Baroda 24 Royal Sundaram General Ins. Co. Ltd 3 Bank of India 25 Reliance Home Finance Ltd 4 Canara Bank 5 Indian Bank Private Sector Banks 6 Indian Overseas Bank 1 Axis Bank Ltd 7 Oriental Bank of Commerce 2 Development Credit Bank 8 Punjab & Sind Bank 3 Dhanlaxmi Bank Ltd 9 State Bank of India (SBI) 4 Equitas Small Finance Bank Ltd 10 Union Bank of India 5 Federal Bank Ltd 11 United Bank of India 6 IDFC Bank Ltd 12 Vijaya Bank 7 AU SFB 8 Kotak Mahindra Bank Ltd Financial Institutions & Other Non 9 Lakshmi Vilas Bank Bank Lenders 10 Ujjivan SFB 1 Hero Fincorp 11 ICICI Bank 2 IFMR Capital Finance Pvt. Ltd 12 YES Bank Ltd 3 Maanaveeya Development & Finance Ltd. 13 HDFC Bank 4 Reliance Capital 14 RBL Bank 5 Shapoorji Pallonji Finance Pvt. Ltd. 15 IDBI Bank Ltd 6 Mahindra & Mahindra Financial Services 16 IndusInd Bank Ltd 7 Nabkisan Finance Ltd 8 Piramal Refinance Institution 9 Hinduja Leyland Finance 1 NABARD 10 Bajaj Finance Ltd 11 Aditya Birla Finance Ltd Foreign Banks 12 INVESCO Asset management 1 CTBC Bank 13 Indostar 2 SBM Bank (Mauritius) Ltd 14 UTI International Wealth 3 Woori Bank 15 Credit Suisse Securities (India) Private 4 SMBC Bank Limited 5 Standard Chartered Bank 16 IFMR Fimpact Investment Fund 6 Catholic Syrain Bank 17 LKP Securities 18 A K Capital 19 Blue Orchard 20 Reliance Mutual Fund
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BOARD OF DIRECTORS & Sub committees
Board of Directors Asset Liability Committee V P Nandakumar Chairman S V Raja Vaidyanathan Chairman S V Raja Vaidyanathan Managing Director Mayank Shyam Thatte CFO B N Raveendra Babu Director S Ramachandran COO Gautam Saigal Director V R Rajiven Independent Director Risk Management Committee A Ramanathan Independent Director Gautam Saigal Chairman Desh Raj Dogra Independent Director T M Manoharan Member T M Manoharan Independent Director V R Rajiven Member T Balakrishnan Independent Director Desh Raj Dogra Member Pushya Sitaraman Independent Director IT Strategic Committee Audit Committee S V Raja Vaidyanathan Member Desh Raj Dogra Chairman A. Ramanathan Member T Balakrishnan Member Anand Sharma CTO Gautam Saigal Member A Ramanathan Member Management Committee S V Raja Vaidyanathan Chairman N & R Committee A Ramanathan Member Gautam Saigal Member T Balakrishnan Chairman Desh Raj Dogra Member V R Rajiven Member B N Raveendra Babu Member Gautam Saigal Member
C S R Committee T M Manoharan Chairman S V Raja Vaidyanathan Member V R Rajiven Member B.N. Raveendra Babu Member
Borrowing Committee S V Raja Vaidyanathan Chairman V P Nandakumar Member A Ramanathan Member B N Raveendra Babu Member
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Directors with their profile
V P Nandakumar, Post graduate in Science, with additional qualifications in Banking & Foreign Trade. He is the Managing Director & CEO of Manappuram Finance Ltd. In December 2013, he took part in a Global Strategic Leadership Program at the Wharton Business School, Philadelphia (USA). He acts as a managing Committee member of leading trade and industry associations such as ASSOCHAM and FICCI.
He is the Chairman of the Kerala state council of the Confederation of Indian Industry (CII). He promoted Manappuram Finance Ltd. in 1992 and today the company has a pan-India presence with 3372 branches across 28 Indian states. Business Today, a leading business magazine ranked him among India’s Top 100 CEOs. Earlier, in December 2013, Business World had listed his name amongst India’s Most Valuable CEOs. He is widely recognized as a leading wealth creator for investors in India’s stock market circles.
S V Raja Vaidyanathan, B.Tech (IIT Madras), MBA (IIM Calcutta), AICWAI, ACS and has more than 36 years of experience in the field of Financial Services, Infrastructure, Media, Telecom & Retail sectors in the large private sector. He is the founder Chairman and the Managing Director of the Company.
Gautam Saigal, is a qualified Chartered Accountant and a postgraduate in Commerce from the Calcutta University. Mr Gautam Saigal is founding partner of Pachira Financial Services LLP. He has over 24 years of experience in financial services covering private equity investment, investment banking and advisory services.
Till mid-2013, Gautam was the Managing Director of AA Indian Development Capital Advisors Ltd., advisors to the India dedicated mid-market focussed private equity fund launched by the Ashmore Group and Alchemy Partners, UK. Prior to this, he was Vice President, AIG Global Investment Group (Asia) and Co-Head of its India private equity advisory practice. Gautam has been a member of the Board of team and Board Committees in several companies including in Financial services, Telecom, Energy distribution, Healthcare, IT services, Consumer products, logistics, Infrastructure etc
V R Rajiven. was an IPS officer, retired in 2010 as Director General of Police & Commandment General, Fire & Rescue Services, Kerala. He was the CEO of M/s KGS Nelsun Kraft Paper Manufacturing Mill (Cochin Kagaz Ltd.) at Karukutty, Angamaly, a subsidiary of KGS Corporate Group Chennai.
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B N Raveendrababu, Post Graduate in Commerce with additional qualification in Management Accounting from the U.K. He occupied senior positions in Finance and Accounts in various organizations in the Middle East.
A Ramanathan, M.B.A. He retired as a Chief General Manager from NABARD in Micro Credit innovations Department. He is an expert in Institutional Development, Organisational Development, Organisational Behaviour, Small Business Development, Training need assessment, Training techniques, etc. He has more than 35 yrs of rich experience in the banking industry.
Desh Raj Dogra, MBA (Finance), Former Managing Director & CEO of CARE Ratings. Have around 39 years of experience in the financial sector in the areas of banking and credit rating. He is expertise in product conception and development across all sectors including Manufacturing, Infrastructure, Finance, and SME among others. Have maintained a high growth trajectory after taking over as acting Managing Director and made CARE the second largest rating agency.
T Balakrishnan, is a retired officer of an Indian Administrative Services of Kerala Cadre. He holds Post Graduate Degree in Political Science & International Relations and Bachelor Degree in History & Economics from Delhi University. He has rich and intensive experience in the Administrative, Industrial Development, Tourism, and Infrastructure. In addition, he has been well trained in diverse areas of Public Administrative and attended various seminars/ conferences at National and International levels.
T M Manoharan, is a retired officer of Indian Forest Service (IFS). He was Principal Chief Conservator of Forests and Head of Forest Forces, Kerala, and Chairman of Kerala State Electricity Board. He holds a Master Degree in Chemistry and Sociology. Besides these, he is a law graduate.
Pushya Sitaraman, is a Law graduate from Madras Law College and holds a Bachelor’s degree in Arts from Stella Maris College. She is a designated Senior Advocate of the Madras High Court and has been practising as an advocate for over 35 years, specializing in the field of taxation and corporate laws.
9 THE ASIRVAD JOURNEY 12th Annual Report 2018-19
PORTFOLIO & PROFITABILITY GROWTH
OPERATIONAL METRICS
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FINANCIAL HIGHLIGHTS Rs. in Crores Year Revenue Finance Cost PBT AUM Net Interest Margin (in %) CRAR (in %) 2018-19 677 273 201 3,841 9.39% 31.82% 2017-18 468 214 (50) 2,437 9.86% 15.19%
FINANCIAL SNAPSHOTS
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FINANCIAL RATIOS
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Letter from the Chairman
It is my pleasure to present to you our 12th Annual Report for the year ended March 31, 2019. I am pleased to announce that Asirvad Microfinance has delivered phenomenal growth in AUM and profitability. In fact, over the last four years, the Company has reported AUM growth of nearly 12 times, growing from `3,220 million in FY14-15 to `38,388 million in FY18-19. India’s Microfinance sector has also done well over this period, with AUM growing four-fold from `400 billion in FY15 to over `1.5 trillion in FY19. Based on current trends and prospects, we are confident of our continuing outperformance over the industry in the foreseeable future as well.
Economic Outlook
The Indian economy has undergone significant shifts as domestic activity in 2018-19 and inflation turned unusually benign under the impact of deflationary food prices. In 2018-19, the Centre’s tax collections trailed budget estimates and contributed to fiscal deficit levels higher than the revised estimates. Continued implementation of structural and financial sector reforms to reduce public debt remains essential to secure the economy’s growth prospects. In the near term, continued fiscal consolidation is needed to bring down India’s high public debt.
GDP growth is expected to recover from a low of 6.6 per cent in Q3FY19 to 7.5 per cent in Q4FY20. The boost to private investment activity from the faster resolution of stressed assets and increased (and more broad-based) credit offtake amidst rising capacity utilisation can raise the growth prospects further. Conversely, further escalation of trade tensions and protectionist trends, increased volatility in global financial conditions over the uncertainty of the stance of monetary policy in the US and other advanced economies, uncertainty surrounding Brexit, a sharper slowdown in the Chinese economy and a shortfall in the south-west monsoon may pose downside risks to the growth path. Growth in India is expected to stabilise at just under 7¾ per cent over the medium term, based on the continued implementation of structural reforms and easing of infrastructure bottlenecks.
Outlook for Non-Banking Financial Companies (NBFCs)
The NBFC sector has been providing credit to customers in the underserved and unbanked areas. NBFCs are integral to the Indian Financial system, augmenting competition and diversification in the financial sector and complementing the banking system and channelling savings into capital formation, necessary for India’s economic growth and development. NBFCs continue to be an integral part of the country’s financial service ecosystem.
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The credit growth is likely to remain moderate until 1H-FY20, with likely revival only in 2H-FY20, because of the ongoing liquidity conditions and political uncertainty. NBFC credit growth in FY20 should be about 15-17 per cent, NBFC-Retail credit is expected to cross `10 trillion; growth rate could be higher if the credit flow to NBFCs improves.
Outlook for Microfinance Institutions (MFIs)
NBFC-MFIs increased their market share of microfinance loans from 39 per cent to 58 per cent between FY15 and FY18, following greater regulatory clarity and demand for microfinance loans from states other than Andhra Pradesh. The growth rate of MFIs is expected to remain higher, which will increase its market share further in the next few fiscals. NBFC-MFIs and non-profit MFIs are the only two player groups with loan portfolios exclusively focused on microcredit. In last fiscal, small finance banks (SFBs) with MFI lending businesses started looking at other asset classes such as affordable housing, small and medium enterprises and vehicle finance, after receiving the SFB licence.
NBFC-MFIs increased their reliance on the securitisation route on the back of a tight liquidity environment, to meet their growth targets in FY19. NBFC-MFIs raised over `26,000 crores via securitisation in FY19 (~170 per cent growth over last fiscal). Securitisation has always been a critical funding tool for NBFC-MFIs, but the dependence was particularly high during the second half of FY19. There was a sharp increase in the number of NBFC-MFIs is taking part in the securitisation market in FY19. Forty-three entities raised funds through the securitisation route in FY19 (compared to twenty-four in FY18). Out of this, as many as fourteen were first-time entrants in the securitisation market, which is an encouraging development. Tighter liquidity resulted in increased funding cost. Both Priority Sector Lending (PSL) and non-PSL driven transactions reported higher yields by 100-150 bps in Q3FY19 over the levels seen in FY18. Although, the yield has come off by around 25-30 bp in Q4 FY19, with some easing in systemic liquidity.
Despite the inherent nature of the asset class and having witnessed several headwinds (demonetisation, local and political issues in some areas, cyclones and floods in some parts and farm loan waivers in some states), the sector has displayed remarkable resilience. The collection efficiencies have remained high at more than 99 per cent since CY17.
Securitisation is expected to remain a vital source of funding for NBFC-MFIs. Banks and large NBFCs are looking to acquire MFIs. Banks are also increasingly looking to partner with NBFCs for originating PSL assets (either through the BC channel or through the co-origination model), and with improving liquidity conditions, the dependence on securitisation should moderate. The traction in disbursements is likely to continue, and the industry has the potential to grow at 20-22 per cent per annum over the medium term. While the segment continues to offer excellent growth potential, most of the incremental growth opportunities lie in the relatively under-developed states, which are less penetrated, or in mature regions with higher ticket 15 12th Annual Report 2018-19 size loans to borrowers. Foray into the relatively under-penetrated markets would also entail investments in terms of creating a microfinance credit culture and imparting training to potential borrowers. However, these are crucial for instilling credit discipline, which, in turn, is a critical factor for ensuring good asset quality. Further, in mature states, the credit evaluation processes will have to be upgraded as the MFIs move to higher ticket sizes.
Performance of the Company
Your company successfully built upon the consolidation exercise, undertaken last year to address issues arising out of demonetization. The company expanded to newer geographies such as Sikkim and Goa, which are fast emerging as the company’s best growth markets.
Asirvad is ranked as the 5th largest NBFC MFI in India. The Company has a network of 942 branches across 22 States with presence in 290 districts and 1,75,354 centers. It pursues the policy of continuing re-assessment of concentration risk & diversification. During the year, the Company passed on the reduction in the interest rate charged by banks/Financial Institutions by reducing the interest rate charged to customers from 22.25 per cent to 21.90 per cent.
Asirvad’s AUM grew by 57.6 per cent from `24,372 million in FY17-18 to `38,408 million in FY18-19, active loan accounts increased by 20.3 per cent to 18 million from 15 million last year. Loan of `42,836 million was disbursed during the financial year, and these loans have a 99.7 per cent repayment rate. The Company’s operational revenue grew by 28.6 per cent to `4,987 million for period FY18-19 compared with `3,877 million for FY17-18. Provisions stood at `198 million including the standard provision of `28.5 million made for period FY-18-19 as per the company’s policy. We are now servicing over 18 million customers in 22 states.
Thank you
I am grateful to all our shareholders and other stakeholders for the support extended to the company over the years, especially in the last four years. We remain indebted to the Reserve Bank of India and NABARD for the excellent support given to the industry in the difficult days following demonetisation. I would also like to congratulate Mr Raja Vaidyanathan, Managing Director, and the management team, for having led the company exceptionally well. Now that we are firmly back on the growth path, we look forward to another stellar year of growth and profitability and thereby live up to your expectations.
With best wishes,
V.P. Nandakumar Chairman
16 KEY TRENDS 12th Annual Report 2018-19
Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 No. of Active Members 277,615 600,815 1,193,328 1,501,575 18,06,844 No of Centres 36,083 71,056 101,238 145,394 1,75,354 No of Branches 141 343 763 832 942 No. of Districts Covered 44 101 238 245 290 No. of States & UT covered 5 13 17 20 22 Total Staff 553 1,810 3,897 4,167 4,951 Disbursal during this year (Rs. In 1,229 2,437 2,107 2,875 4,286 Crores) Portfolio outstanding (Gross) 32,200 99,800 179,100 243,391 3,83,877 PAR (Rs. In Lakhs) 27 97 21,673 7,560 4,092
STATEWISE AUM
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19 CUSTOMERS’ DEMOGRAPHY 12th Annual Report 2018-19
RELIGION TOTAL % HINDU 164.60 91.10%
MUSLIM 9.45 5.23%
CHRISTIAN 3.42 1.89%
JAIN 0.02 0.01%
BUDDIST 0.08 0.04%
SIKH 2.90 1.61%
UNSPECIFIED 0.22 0.12% 180.68 100.00%
CASTE TOTAL % SC 33.76 18.68%
ST 10.04 5.55%
MBC 12.74 7.05%
OBC 67.54 37.38%
BC 31.96 17.69%
OC 24.42 13.52%
UNSPECIFIED 0.22 0.12%
180.68 100.00%
OCCUPATION TOTAL % CLOTH BUSINESS 0.64 0.36% VENDOR TAILOR 0.52 0.29% FISH VENDOR 0.24 0.14% AGRICULTURAL 46.74 25.87% TRADING SERVICES 4.71 2.61% PETTY SHOP 11.18 6.19% MFG OF FLOUR & 0.91 0.50% M.PWDR OTHERS 103.96 57.54% AGRICULTURE 11.78 6.52% TOTAL 180.68 100.00%
EDUCATION TOTAL %
ILLITRATE 42.43 23.48%
ESSLC 80.55 44.58%
SSLC 46.22 25.58%
HSC 8.84 4.89%
GRADUATE 2.65 1.46%
180.68 100.00%
21 DIRECTORS REPORT 12th Annual Report 2018-19
Dear Members,
Your Board of Directors takes pleasure in presenting the 12th Annual Report of Asirvad Micro Finance Limited (“Company”), together with the Audited Financial Statements for the year ended March 31, 2019:
Financial Highlights (Rs. in Crores) Year ended Year ended Particulars 31st Mar 2019 31st Mar 2018 Gross Income 677.25 469.59 Total Expenditure 475.84 484.07 Profit before Tax 201.41 (14.48) Tax expense net of Deferred tax (68.83) (5.19) Profit after Tax 132.58 (9.29) Appropriations Transfer to Statutory Reserve 26.51 0 Surplus in Profit & Loss 106.07 (9.29)
Operational Highlights
Particulars FY 2019 FY 2018 Change (%) Number of Branches 942 832 13.22 Number of Active Members (in Lakhs) 18.07 15.02 20.30 Gross Loan Portfolio (in Crore) 3,841 2,437 57.61 Number of Employees 4,951 4,167 18.81 Total Disbursement (in Crore) 4,286 2,877 48.93 No. of States (in Operation) 22 20 10.00
There was no change in nature of operation of the Company during the year under review
Transfer to Reserve
As per the extent guidelines of Reserve Bank of India for NBFCs, the Company has proposed to transfer Rs.26.51 Crores to the Statutory Reserve created under Section 45-IC of the Reserve Bank of India Act, 1934.
Dividend
In order to augment capital required for supporting growth of the Company, through retention of internal accruals, the Board of Directors has not recommended any dividend during the year.
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Deposits
The Company is registered with Reserve Bank of India (RBI) as Non-Deposit Accepting NBFC under Section 45-IA of the RBI Act, 1934 and classified as NBFC-MFI, effective from 4th October, 2013. Your Directors hereby report that the Company has not accepted any public deposit during the year under review and will not accept deposit in future without prior approval of Reserve Bank of India.
RBI Regulations.
The Company is in compliance of the regulatory requirement of net owned funds (‘NOF’) as defined under Section 45-IA of the RBI Act, 1934, to carry on the business of a NBFC-MFI.
Subsidiary Company.
The Company does not have any subsidiary. There are no associates or joint venture companies within the meaning of Section 2(6) of the Companies Act, 2013( “Act”).
Additional Investment by Manappuram Finance Limited:
Reserve Bank of India on its approval letter no. DNBS (Che) No. 1309/13.27.056/2015-16 dated 03rd February, 2016, for increasing the shareholding of Manappuram Finance Limited upto 100% in your Company over a period of time
During the financial year 2018-19, Manappuram Finance Limited subscribed further 2,07,65,089 Right Issue of shares in the Company and thereby increasing their stake to 93.33%. As on 31st March 2019, Manappuram holds 93.33% stake in the Company with the balance being held by Mr. S.V. Raja Vaidyanathan (5.87%) and others (0.8%).
Fund Allocation - Total Borrowings
The Company’s overall borrowing as on March 31, 2019 was Rs. 2,216 crores as against Rs.2,067 crores as of 31st March, 2018.
During the year, the Company availed term loan facilities of Rs. 630.00 Crores from Banks. i) Non-Convertible Debentures
The Company had issued Non-Convertible Debentures (NCDs) of Rs. 345 crores on private placement basis. The Company’s NCDs has been listed on Bombay Stock Exchange. These NCDs has been rated as A+/Positive by CRISIL as of 31st March, 2019. ii) Commercial Paper
During the year, the Company raised Rs. 310 crores of Commercial Papers (CPs). All the CPs were assigned A1+ by CRISIL and outstanding as of 31st March, 2019 is Rs. 50 crores.
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Credit Rating
CARE has maintained the grading of your Company to "MFI 1", the highest in the industry. The bank loan rating is also upgraded to" CRISIL A+/ POSITIVE" by CRISIL Ratings Limited & CARE A+/ STABLE by CARE Ratings Limited.
Capital Adequacy
Your Company being a Systemically Important Non- Deposit Accepting NBFC is subject to the capital adequacy requirements prescribed by the Reserve Bank of India. The Company was required to maintain a minimum Capital to Risk Asset Ratio (CRAR) of 15% as prescribed under the Non- Banking Financial Company- Micro Finance Institutions (Reserve Bank) Directions, 2016 (as amended from time to time) based on total capital to risk weighted assets. As of March 31, 2019, the Company’s total Capital Adequacy Ratio (CAR) stood at 31.76%.
Share Capital
During the year under review, the authorized share capital of the Company has been increased from Rs.70 Crores to Rs.100 Crores (Represented by Rs.90 Crores of Equity Share Capital and Rs.10 Crores of Preference Share Capital.
Further, the Company has allotted 1,04,88,777 Equity Shares of face value of Rs. 10/- each at Price of Rs. 95.34/- per share (including Premium of Rs. 85.34/- per share) on right basis on dated 27th April, 2018, and 1,07,48,250 Equity Shares of Rs.10/- each at Price of Rs. 252/- per share ( including Premium of Rs 242/- per share) on dated 16th March, 2019, on Rights Issue Basis. The Paid-up Share Capital of the Company after including the allotment stood at Rs.53.31 Crores. However, the Company other than Right Issue of Shares has not raised Capital in any other manner. Particulars Of Loans, Guarantees Or Investments
The Company has not given any loans/guarantees and has not made any investment in securities as covered under Section 186 of the Companies Act, 2013.
Related Party Transactions
All related party transactions that were entered into during the financial year were in the ordinary course of business and on an arm’s length basis. There were no material significant transactions with related parties, i.e. pecuniary transactions or relationships between the Company, promoters, directors and the management during the financial year 2018-19 that may have potential conflict with the interest of the Company at large. Suitable disclosures as required in compliance with accounting standards with related parties are disclosed in notes forming part of the financial statements in the annual report.
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Material Changes and Commitments Affecting the Financial Position of the Company Which Have Occurred Between the end of Financial Year and the date of the Report.
There were no material changes and commitments affecting the financial position of the Company between the end of financial year (31st March, 2019) and the date of this Report.
Corporate Governance Report
Your Company has framed an internal Corporate Governance guideline, in compliance with the Directions issued by RBI for NBFCs. The Company has put in place various policies, systems and processes to achieve transparency, high level of business ethics and compliance with applicable laws.
A Complete Corporate Governance Report is attached with the Directors’ Report.
Management Discussion And Analysis
Management Discussion and Analysis report for the year under review has been attached as a separate annexure forming part of the Directors’ Report.
Extract of Annual Return
Pursuant to the provisions of Section 92(3) and rules framed thereunder, the extract of the annual report for FY 2018-19 is given in Annexure-A in the prescribed Form No. MGT-9, which is a part of this report. The Annual Report is available on https://asirvadmicrofinance. co.in/announcements/
Rotation of Director
Mr. V.P. Nandakumar (DIN: 00044512), Director retires by rotation at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment. The Board recommends the re-appointment of Mr. V.P. Nandakumar to shareholders.
Directors and Key Mangerial Personnel.
Your Company are being managed by the Board comprising of personalities having very rich experience, skill and expertise knowledge.
Appointment
During the year under review, 3 (three) Directors were appointed on the Board of the Company.
Mr. T. Balakrishnan and Mr. T.M Manoharan were appointed as Independent Directors at the 11th Annual General Meeting held on August 3, 2018 for a period of five years
Further, In order to comply with the requirement of Women Director, the Board in its meeting held on February 2, 2019 has appointed Mrs. Pushya Sitaraman, who is Senior Advocate in
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Madras High Court. Her appointment was subsequently approved as Independent Director by the members on March 16, 2019.
Resignation
Ms. Kalpana Iyer and Mr. Sailesh J. Mehta Independent Directors had resigned from the office of Directorship of the Company with effect from 15th & 16th May, 2018, respectively. The board placed on record their deep appreciation for their significant contributions made by them as member of the Board and Committees.
Key Managerial Personnel
Pursuant to the provisions of Section 203 of the Act, the Key Managerial Personnel of the Company as on March 31, 2019 are: Mr. S.V Raja Vaidyanathan, Managing Director, Mr. Anup Kumar Gupta, Company Secretary and Mr. Mayank Shyam Thatte, Chief Financial Officer of the Company.
Mr. Anup Kumar Gupta was appointed as Company Secretary and Compliance Officer of the Company vide Board Meeting on dated 3rd November, 2018, in place of Ms. Simi S who has resigned from the post of Company Secretary and Compliance Officer on dated 29th October, 2018.
Committees Of The Board
As on March 31, 2019, the Board had Six Committees: - the Audit Committee, the Corporate Social Responsibility Committee, the Nomination & Remuneration Committee, the Management Committee, Risk Management Committee and Borrowing Committee.
A detailed note on the composition of committees is provided in the Corporate Governance Report.
Declaration From Independent Director
The Company has received necessary declaration from each Independent Directors of the Company as per Section 149(7) of the Companies Act, 2013 that the Independent Directors of the Company meet with the criteria of their Independence laid down in Section 149(6). The Company has also received undertaking and declaration from each director on fit and proper criteria in terms of the provisions of Corporate Governance (Reserve Bank) Directions, 2015.
Risk Management
The Company has in place a risk management policy framework which has been approved by the Board of Directors. The framework codifies the various risks and the methodologies to ensure such risks are mitigated.
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Auditors
Deloitte Haskins & Sells, Chartered Accountants, Chennai (FRN 008072S) were appointed at the 7th Annual General Meeting of the Company as Statutory Auditors of the Company for the period of five years which will expire at the ensuing Annual General Meeting. Prior to the enactment of Companies Act, 2013, they were auditor for a period of four years. Therefore, they are eligible for re-appointment for one more year. Accordingly, their appointment as Statutory Auditors for the FY 2019-20 is being placed for the approval of the members at the ensuing Annual General Meeting.
The Company has received necessary written consent and certificate under Section 139 of the Companies Act, 2013 from them to effect that their appointment, if made, shall be in accordance with the conditions specified therein and they satisfies the Criteria as prescribed in Section 141 of the Companies Act, 2013 read with Companies ( Audit and Auditors) Rules, 2014.
The Statutory Auditor’s Report do not contain any qualification, reservation, or adverse remarks.
Particulars of Employees
The Company had 4951 employees (on a standalone basis) as on March 31, 2019. Details of remuneration as required to be provided pursuant to Section 197(12) of the Companies Act, 2013 read with rules of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 have been annexed herewith as Annexure- B to the Directors Report
Corporate Social Responsibility
The Corporate Social Responsibility policy (CSR Policy) activity has been undertaken by the Company and has also been formulated by the Board based on the recommendation of the Corporate Social Responsibility Committee (CSR Committee) in pursuant to Section 135 of the Companies of the Act, read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. For further details regarding CSR Committee, please refer to the Corporate Governance Report and CSR Annual Report (Annexure-C), which are part of this report. The CSR policy is available on https://asirvadmicrofinance.co.in/csr-policy/.
Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. S. Hari, Practicing Company Secretary (Certificate of Practice No. 4276) to undertake the secretarial audit of the Company for the Financial Year 2018-19. The Secretarial Audit Report do not contain qualification, reservation, or adverse remarks. The Secretarial Audit Report for the F.Y. 18-19 is appended as Annexure- D to this report.
28 12th Annual Report 2018-19
As required under Section 204 of the Companies Act, 2013 and rules made thereunder, the Board appointed Mr. S. Hari, Practicing Company Secretary as Secretarial Auditor of the Company for fiscal 2019.
Frauds Reported By Auditors.
During the year under review, no fraud has been reported neither by the Statutory Auditor nor Secretarial Auditor to the Audit Committee, under Section 143(12) of the Companies Act, 2013 against the Company by its officer or employees.
Directors’ Responsibility Statement Pursuant to Section 134(3) (c) of the Companies Act, the Directors confirm that i. In the preparation of the Annual Accounts for the year ended 31st March, 2019, the applicable accounting standards as set out with the requirements under Schedule- III of the Act, had been followed with the proper explanation relating to material departures for the same. ii. They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2019 and the profit and loss of the Company for the year ended on that date. iii. They have 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. iv. They have prepared the annual accounts on a going concern basis and v. They have laid down internal financial control which are adequate and are operating effectively. vi. They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Meetings of the Board of Directors
Five meetings of the Board were held during the year under review. For details meeting of Board, please refer to the Corporate Governance Report, which is a part of this report.
Cost Records and Cost Audit
Maintenance of cost records and requirement of cost audit as prescribed under the provisions of Section 148(1) of the Companies Act, 2013 are not applicable for the Company.
29 12th Annual Report 2018-19
Debenture Redemption Reserve
The Company is not required to create Debenture Redemption Reserve as the debentures of the Company are privately placed.
Annual Performance Evaluation
The Company has in place the Performance Evaluation Policy which has been approved by the Board to evaluate the performance of the Board, its committees and individual director.
Criteria for Board Nomination
The Nomination and Remuneration Committee is responsible for identifying persons for initial nomination as directors and evaluating incumbent directors for their continued service. The Committee has formulated a charter in terms of the provisions of the Act and RBI Directions applicable for non-banking finance companies, which inter alia, deals with the criteria for determining qualifications, positive attributes and independence of a director. These attributes shall be considered for nominating candidates for board positions / re-appointment of directors.
Internal Control System and their Adequacy
The Company has put in place adequate policies and procedures to ensure that the system of internal financial control is commensurate with the size and nature of its business. These systems provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company, prevention and detection of frauds, accuracy and completeness of accounting records and ensuring compliance with company's policies. However, no material weakness observed by the Company.
Internal Audit
As part of the effort to evaluate the effectiveness of the internal control systems, your Company’s internal audit function reviews all the control measures on a periodic basis and recommends improvements, wherever appropriate. The Audit Committee regularly reviews the audit findings as well as the adequacy and effectiveness of the internal control measures.
Dematerialisation of Shares:
As on March 31, 2019, all the shares held by the Shareholders are in demat form.
Vigil Mechanism / Whistle Blower Policy
Pursuant to Section 177(9) of the Act read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014, the Board of Directors of the Company had approved the Policy on Vigil Mechanism/Whistle Blower to deal with instance of fraud and mismanagement, if
30 12th Annual Report 2018-19 any and the same was hosted on the website of the Company. This Policy inter-alia provides a direct access to the Chairman of the Audit Committee. Your Company hereby affirms that no Director / employee has been denied access to the Chairman of the Audit Committee and that no complaints were received during the year from a Director or an Employee.
Credit Bureau Subscription
In order to address the issue of multiple lending or over indebtedness and also to know the credit history of the customer, the Company continues to submit monthly and weekly data to Highmark, CIBIL, Equifax and Experian Credit Bureaus and also use their credit report for each all loan sanctions. This coupled with great deal of hard work, intense follow-ups and efficient processes have resulted in constantly building high quality assets with minimal delinquencies.
Fair Practice Code
RBI had been issuing revised Fair Practices Code guidelines from time to time and your Company has adhered to all of them without any compromise. The Fair Practices Code, code of conduct, Code of Ethics and Grievance Redressal Mechanism are displayed prominently in all the branches of your Company.
Prevention, Prohibition And Redressal Of Sexual Harassment Of Women At Work Place
The Company has constituted Internal Complaint Committee (ICC) in line with requirement of the provision of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rules made thereunder
The following is the summary of sexual harassment complaints received and disposed off during the year.
1. No. of complaints received during the year 1 2. No. of complaints disposed off 1 3. No. of Complaints pending at the year end Nil
All Employees (Permanent, Contractual, Temporary, Trainees etc.) are covered under the provisions of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Energy Conservation, Technology Absorbtion and Foreign Exchange Earnings and Outgo
The particulars relating to energy conservation, technology absorption, foreign exchange earnings and outgo as required to be disclosed under section134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (accounts) Rules, 2014, your Company had not
31 12th Annual Report 2018-19 engaged in any activity relating to consumption of energy or technology absorption. Your Company had not spent any foreign currency expenditure and your Company has no foreign currency earnings. Regulatory Actions
There are no significant or material orders passed by the regulations or Courts or Tribunals impacting the going concern status and operations of the Company in future. Acknowledgement
Your Directors wish to place on record their deep appreciation for the whole- hearted and sincere co express their appreciation for the assistance and co-operation received from Banks, Financial Institutions, Government Authorities, SADHAN, Customers, Vendors and other members during the year under review. Your Directors appreciate and value the contribution made by the members of Asirvad Family.
For and on behalf of the Board of Directors
V.P. Nandakumar S.V. Raja Vaidyanathan Chairman Managing Director
Place: Chennai Date : May 13, 2019.
32 12th Annual Report 2018-19
Annexure - A
FORM NO. MGT-9 EXTRACT OF ANNUAL RETURN (as on Financial Year ended 31st March, 2019) Pursuant to Section 92 (3) of the CompaniesAct, 2013, and rule 12(1) of the Companies (Management and Administration) Rules, 2014
REGISTRATION AND OTHER DETAILS 1. CIN U65923TN2007PLC064550 2. Registration Date 29/08/2007 3. Name of the Company ASIRVAD MICROFINANCE LIMITED 4. Category/ Sub-Category of the Company Limited by Shares Indian Company Non-Government Company 5. Address of the Registered Office & 1st Floor, Desabandhu Plaza, 47, Whites Contact details Road, Royapettah, Chennai- 600 014 6. Whether listed Company No 7. Name, Address and Contact details of S.K.D.C. Consultants Limited Kanapathy Registrar and Transfer Agent, if any Towers, 3rd Floor, 1391/A1, Sathy Road, Ganapathy, Coimbatore – 641 006 Phone: +91 422 6549995
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10% or more of the total turnover of the Company shall be stated:- Sl. No. Name and Description of main NIC Code of the % to total turnover products/ services Product/ service of the company 1. Microfinance- Lending to MFI 89.57% microfinance borrowers through Joint Liability Group
III.PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES Name and Holding/ % of Sl. Applicable Address of CIN/ GLN Subsidiary/ Shares No. Section the Company Associate held 1. Manappuram L65910KL1992PLC006623 Holding 93.33 Section Finance 2(46) Limited
33 12th Annual Report 2018-19
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) % No. of Share sheld at the beginning of No. of Share sheld at the end of the Change Category of the year year during Share holders % of % of the Demat Physical Total Total Demat Physical Total Total year Shares Shares A. Promoter Indian Individual/ HUF 28,41,866 - 28,41,866 8.86% 32,27,966 - 32,27,966 6.05% (2.81%) Central Govt ------State Govt(s) ------Bodies Corp 2,89,92,800 - 2,89,92,800 90.38% 4,97,57,889 - 4,97,57,889 93.33% 2.95% Banks / FI ------Any Other ------Sub-total(A)(1):- 3,18,34,666 - 3,18,34,666 99.24% 5,29,85,855 - 5,29,85,855 99.38% 0.14% Foreign NRIs-Individuals ------Other-Individuals ------Bodies Corp. ------Banks / FI ------Any Other…. ------Sub-total(A)(2):------Public Shareholding 1. Institutions Mutual Funds ------Banks / FI ------Central Govt ------State Govt(s) ------Venture Capital Funds ------Insurance Companies ------FIIs ------Foreign Venture Capital ------Funds Others (specify) ------Sub-total (B)(1) ------2. Non Institutions Bodies Corp. (i) Indian (ii) Overseas ------Individuals (i) Individual shareholders holding nominal share 16,278 5,000 21,278 0.08% 15,848 - 15,848 0.03% (0.05%) capital upto Rs. 1 lakh (ii) Individual shareholders holding nominal share 2,18,916 - 2,18,916 0.68% 3,10,184 - 3,10,184 0.58% (0.10%) capital in exces of Rs. 1 lakh
34 12th Annual Report 2018-19
No. of Share sheld at the beginning of No. of Share sheld at the end of the % Categoryof the year year Change during Shareholders % of % of the Demat Physical Total Total Demat Physical Total Total year Shares Shares
Others (Specify) ------
Sub-total (B) (2) 2,35,194 5,000 2,40,194 0.76% 3,26,032 - 3,26,032 0.61% (0.15%) Total Public Shareholding 2,35,194 5,000 2,40,194 0.76% 3,26,032 - 3,26,032 0.61% (0.15%) (B)=(B)(1)+ (B)(2) C.Shares heldby Custodian ------for GDRs&ADRs Grand Total 3,20,69,860 5,000 3,20,74,860 100% 5,33,11,887 - 5,33,11,887 100% - (A+B+C)
i) SHARE HOLDING OF PROMOTERS Shareholding at the beginning of the year Shareholding at the end of the year No. of % of total % of Shares No. of % of total % of Shares % change in Sl. Share Shares Shares of the Pledged / Shares Shares Pledged / shareholding No holder’s Name company encumbered of the encumber during the to total shares company red to total year shares 1. Mr. S.V. Raja Vaidyanathan 27,41,866 8.55% - 31,27,966 5.86% - (2.69)
2. Ms. Anjana Vaidyanathan 1,00,000 0.31% - 1,00,000 0.19% - (0.12) 3. M/s. Manappuram Finance Limited 2,89,92,800 90.38% - 4,97,57,889 93.33% - 2.94 Total 3,18,34,666 99.24% - 5,29,85,855 99.38% - 0.13
ii) CHANGE IN PROMOTER’S SHAREHOLDING (Please Specify, if there is No Change)
Sl. No. Name of Promoter Shareholding at the Cumulative Shareholding beginning of the year during the year No. of shares % of total shares No. of shares % of total shares of of the company the company 1. S.V. Raja Vaidyanathan At the Beginning of the year 27,41,866 8.55 31,27,966 5.86 Date wise increase / decrease in promoter shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer / bonus/ sweat equity etc) 27.04.18 Decrease Right Issue 1,68,100 - 16.03.19 Decrease Right Issue 2,18,000 - At the End of the Year 31,27,966 5.86 2. Anjana Vaidyanathan At the Beginning of the year 1,00,000 0.31 - - Change during the year- Nil At the End of the Year 1,00,000 0.18 3. M/s. Manappuram Finance Limited At the Beginning of the year 2,89,92,800 90.39 4,97,57,889 93.33 Date wise increase / decrease in promoter shareholding during the year specifying the reasons for increase/ decrease (e.g. allotment/ transfer / bonus/ sweat equity etc) 27.04.18 Increase Right Issue 1,02,91,894 92.30 16.03.19 Increase Right Issue 1,04,73,195 93.33 At the End of the Year 4,97,57,889 93.33
35 12th Annual Report 2018-19
iii) SHAREHOLDING PATTERN OF TOP 10 SHARESHOLDERS (Other than Director, Promoters and Holders of Gdrs and Adrs) Shareholding at the Cumulative Shareholding beginning of the year during the year Sl. No. Name of the Shareholder No. of % of total shares No. of % of total shares of shares of the company shares the company 1. Mr. S. Gopinath At the Beginning of the year 16,277 0.05 - - Change during the year-Nil At the End of the Year 16,277 0.03 2. Mr. G Srikanth At the Beginning of the year 13,334 0.04 - - Change during the year- Nil At the End of the Year 13,334 0.02 3. Mr. S. Muthukumar At the Beginning of the year 8139 0.03 14,023 0.02 Change during the year 27.04.18 Decrease Right Issue 2,660 0.02 16.03.19 Decrease Right Issue 3,224 0.02 At the End of the Year 14,023 0.02 4. Mr. MP. Tolerence Samuel At the Beginning of the year 8,139 0.02 - - Change during the year- Nil At the End of the Year 8,139 0.01
36 12th Annual Report 2018-19
iv) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL: Sl. No. Name of the Shareholder Shareholding at the Cumulative beginning of the year Shareholding during the year No. of shares % of total No. of % of total shares of the shares shares company of the company 1. Mr. V.P. Nandakumar At the Beginning of the year 1,14,371 0.35 1,43,391 0.27 Change during the year 16.03.19 Decrease Right Issue 29,020 0.27 At the End of the Year 1,43,391 0.27 2. Mr. V.R. Rajiven At the Beginning of the year 5,000 0.02 7,709 0.01 Change during the year 27.04.18 Decrease Right Issue 1,634 0.01
16.03.19 Decrease Right Issue 1,075 0.01 At the End of the Year 7,709 0.01 3. Mr. A. Ramanathan At the Beginning of the year 20,000 0.06 32,000 0.06 Change during the year 27.04.18 Decrease Right Issue 6,536 0.06 16.03.19 Decrease Right Issue 5,464 0.06 At the End of the Year 32,000 0.06 4. Mr. Gautam Saigal At the Beginning of the year 24,415 0.08 40,993 0.07 Change during the year 27.04.18 Decrease Right Issue 7,979 0.07 16.03.19 Decrease Right Issue 8,599 0.07 At the End of the Year 40,993 0.07 5. Mr. B.N. Raveendra Babu At the Beginning of the year 30,519 0.1 50,166 0.09 Change during the year 27.04.18 Increase Right Issue 9,974 0.09 16.03.19 Increase Right Issue 9,673 0.09 At the End of the Year 50,166 0.09 6. Mr. Desh Raj Dogra At the Beginning of the year Nil - - - Change during the year-Nil At the End of the Year - - Nil - 7. Mr. T.M. Manoharan At the Beginning of the year Nil - - - Change during the year-Nil At the End of the Year Nil - 8. Ms. Pushya Sitaraman At the Beginning of the year Nil - Change during the year Nil At the End of the Year Nil -
37 12th Annual Report 2018-19
Sl. No. Name of the Shareholder Shareholding at the Cumulative beginning of the year Shareholding during the year No. of shares % of total No. of % of total shares of the shares shares company of the company
9. Mr. Mayank ShyamThatee At the Beginning of the year Nil - - - Change during the year-Nil At the End of the Year - - Nil - 10. Mr. Anup Kumar Gupta At the Beginning of the year Nil - - - Change during the year-Nil At the End of the Year Nil -
V. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole-Time Director and /or Manager Mr. S.V. Raja Sl. TotalAmount Particulars of Remuneration Vaidyanathan, Managing No. Director (In Rs.) 1. Gross salary a) Salary as per provisions contained in section 17(1) of the Income Tax Act,1961 2,05,50,000 2,05,50,000 b) Value of perquisites u/s 17(2) Income Tax Act, 1961 c) Profits in lieu of salary under section 17(3) Income Tax Act, 1961 2. Stock Option 3. Sweat Equity 4. Commission - as% of profit - Others, specify… 5. Others, please specify 6. Total(A) 2,05,50,000 2,05,50,000 Ceiling as per the Act
38 12th Annual Report 2018-19 9,70,000 9,70,000 2,25,000 2,25,000 11,95,000 11,95,000 Total Amount 50,000 50,000 50,000 50,000 - Pushya Sitaraman 1,80,000 1,80,000 1,80,000 1,80,000 - T. Bala krishnan 1,00,000 1,00,000 1,00,000 1,00,000 - T.M. Manoharan 1,90,000 1,90,000 1,90,000 1,90,000 - Desh Raj Dogra 2,90,000 2,90,000 2,90,000 2,90,000 - A. Rama nathan 1,60,000 1,60,000 1,60,000 1,60,000 - V.R. Rajiven 2,25,000 2,25,000 2,25,000 2,25,000 - - Gautam Saigal V. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Total (1) Total (2) Particulars of Remuneration Non-ExecutiveDirector -Fee for attending Board/ Committee Meeting Commission -Others, please specify Total (B)= (1)+(2) Overall Ceiling as per the Act Independent Director -Feefor attending Board/ Committee Meeting -Commission -Others, please specify Total Remuneration Sl. No 1.
39 12th Annual Report 2018-19
V. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL C. Remuneration to Key Managerial Personnel other than MD/ Manager / WTD Key Managerial Personnel Company Company Chief Financial Sl. Particulars of Remuneration Secretary Secretary Officer Total no. Simi Anup Kumar Mayank SS # Gupta## Shyam Thatte 1. Gross Salary 9,23,860 5,77,960 49,22,496 64,24,316 a) Salary as per provisions containedin section 17(1)of the - - - - Income-tax Act,1 961 (b) Value of per quisites u/s17(2) Income-tax Act,1961 - - - - (c) Profits in lieu of salary under section 17(3) Income Act, 1961 - - - - 2. Stock Option - - - - 3. Sweat Equity - - - - 4. Commission - as%of profit - - - - Others, specify… 5. Others, please specify - - - - 6. Total 9,23,860 5,77,960 49,22,496 64,24,316
# Ceased to be the Company Secretary and Compliance Officer w.e.f. 29/10/2018
## Appointed as Company Secretary and Compliance Officer w.e.f. 03/11/2018
I. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES: Details of Penalty / Appeal made. Section of the Brief Punishment / Authority [RD Type If any (give Companies Act description Compounding fees / NCLT / Court] details) imposed A. Company Penalty NA NA NA NA NA Punishment NA NA NA NA NA Compounding NA NA NA NA NA B. Directors Penalty NA NA NA NA NA Punishment NA NA NA NA NA Compounding NA NA NA NA NA C. Other Officer sin Default Penalty NA NA NA NA NA Punishment NA NA NA NA NA Compounding NA NA NA NA NA
40 12th Annual Report 2018-19
Annexure- B Particulars of Employees
Sl.No Particulars Disclosures 1. The ratio of the remuneration of each Director to the median remuneration Managing Director of the employees of thecompany for the financial year 139:1
2. The percentage increase in remuneration of each Director, Chief Financial KMP % increase in remuneration Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year MD -6.16 CFO 14.75 % CS 44.78%
3. The percentage increase in the remuneration of employees in the 12 % financial year. 4. The number of permanent employees on the rolls of the Company 4,951 employees as on March, 31 2019. 5. Average percentile increase already made in the salaries of employees The Average increase in the salary of the employees other than the managerial personnel in the last financial year and is 2.81 % in comparison from last financial year. its comparision with the percentile increase in the remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration
Employees drawing a remuneration of 1.02 crore or above per annum.
EMPLOYEE NAME DESIGNATION S.V Raja Vaidyanathan Managing Director
41 12th Annual Report 2018-19
Annexure-C Annual Report on Corporate Social Responsibility (CSR) Activities (A brief outline of the Company's CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web, link to the CSR policy and projects or programs.)
In accordance with the provisions of Section 135 of the Companies Act, 2013 read with Rules made thereunder, the Board of Directors of the Company have constituted the Corporate Social ResponsibilityCommittee (CSR Committee). The Committee has formulated and recommended a CSR Policy to the Boardand various recommendations of the Committee including the amount of expenditure to be incurred on CSR activities are submitted to the Board for approval. The Committee has framed a transparent monitoring mechanism for implementation of CSR projects or programs or activities undertaken by the Company andalso monitors CSR policy from time to time.
The CSR Policy of the Companyas approved by the Board of the Directors is available on the Company's website at www.asirvadmicrofinance.co.in
Compositions of the Corporate Social Responsibility Committee are as follows:
Name of the Director Category Mr. T. M. Manoharan Chairman, Independent Director Mr. S.V. Raja Vaidyanathan Member, Director Mr. B.N. Raveendra Babu Member, Non- Executive Director Mr. V.R. Rajiven Member, Independent Director
• Average net profit of the Company for last three financial year : Rs. 128, 828, 537 • Prescribed CSR Expenditure (two percent of the amount mentioned in item 3 above) : Rs. 25.82 lakh • Details of CSR expenditure during the Financial year 2018- 19
Particulars Amount (In Rs.) Total amount to be spent for the financial year 2018-19 25,82,000 Amount spent during the financial year 2018- 19 31,00,000 Amount unspent, if any Nil
42 12th Annual Report 2018-19
- Manner in which the amount spent during the financial year is detailed below:
Amount Amount CSR outlay Amount Sector in which Project or spent Project or (Budget) spent on the Cumu Sl No. project is Programs direct or Activity Project or project or lative covered with location through identified Program- programs Agency wise
1. Donation for Cyclone Eradicating hunger, Chennai 31.00 lakhs 31.00 lakhs 31.00 lakhs Direct Rehabilitation** poverty and malnutrition
** Distributed Rice bags to affected people of Cyclone Gaja in Tamil Nadu.
We state that the implementation and monitoring of the CSR Policy, is in compliance with CSR objectives andPolicy of the Company.
S.V. Raja Vaidyanathan T.M. Manoharan Managing Director Chairman of CSR Committee
43 MANAGEMENT DISCUSSION ANALYSIS 12th Annual Report 2018-19 Operations
This year, Asirvad Assets under Management (AUM) grew at 57.6% as against the NBFC-MFIs growth of 42%. Asirvad was able to post better results on account of its branch expansion in earlier years and diversified geography of Operations. The micro-finance industry has finally come out of the post demonetization difficult phase. Asirvad has been ranked as 5th in terms of AUM position. (Industry Source: Micrometer March 2019)
The company continued to focus on expanding Eastern and North-eastern India operations by increasing branch opening in these regions. In terms of State share of Asirvad AUM, Tamilnadu tops the list followed by West Bengal, Karnataka, Bihar and Madhya Pradesh. South states contribute 41%, East 23%, North and Central contribute 19% and 17% respectively. Our medium term goal is to bring Tamilnadu share to less than 15% by increasing business in other States by year 2021. Asirvad is the most diversified MFIs operating in 22 States and 2 Union Territories. As on March 31, 2019, ten States have crossed Rs 100 crore loan portfolio, seven states have more than Rs 200 crore loan portfolio.
As at March 31, 2019, portfolio at risk for 30+ and 90+ were at 0.77% and 0.48% respectively. Industry PAR for 30+ and 90+ are at 1.7% and 1.3% respectively. (Industry Source: Micrometer March 2019). Last one year, collection efficiency was at 99.7% indicating that the customer repayment behavior has become much better and back to pre-demonetization levels. We had observed increase in overdues in certain pockets in States of Kerala due to floods, Madya Pradesh, West Bengal and Tripura due to local issues, which is being closely followed up.
Operational Highlights
Financial year 2018-19 saw good growth in terms of Business expansion and disbursements. The Micro finance disbursements during the year was Rs.4,286 Crore against Rs. 2,877 Crores in the Financial Year 2017-18
State Name AUM in Cr. State Name AUM in Cr. Tamil Nadu Maharashtra 99 929 &Puducherry Punjab 95 West Bengal 437 Tripura 66 Karnataka 365 Chhattisgarh 65 Bihar 345 Haryana 51 Madya Pradesh 273 Gujarat 42 Kerala 259 Assam 32 Uttar Pradesh 217 Uttarakhand 24 Jharkhand 184 Goa 5 Odisha 179 Chandigarh 5 Rajasthan 165 Sikkim 1 Total 3,838 45 12th Annual Report 2018-19
Particulars Mar-19 Mar-18 Mar-17 No. of States & Union Territories 22 20 17 No. of Branches 942 832 763 No. of Districts 290 245 252 No. of Employees 4,951 4,167 3,861 No. of Active Members 1,806,844 15,01,575 11,93,328 Disb. In Crs. 4,286 2,875 2,114 Portfolio in Crs. 3,838 2,434 1,796
Financial Highlights Particulars (Rs. in Crores) March 2019 March 2018 March 2017 March 2016 Paid up Capital 53.31 32.07 26.28 26.27 Asset Under Management 3840.78 2437.20 1795.94 998.81 Borrowings (Rs. in Crores) 2215.79 2068.24 1592.70 778.32 Total Revenue (Rs. in Crores) 618.18 468.33 363.42 156.09 Profit after tax (Rs. in Crores) 132.58 (32.30) 34.34 23.96 Total Assets (Rs. in Crores) 3087.38 2502.51 1961.95 1044.61
Key Ratios Ratio 2018-19 2017-18 2016-17 2015-16 PBT / Total Income 29.74% -10.66% 14.39% 23.24% PBT / Total Assets 6.52% -2.00% 2.67% 3.47% ROE 32.6% -11.70% 13.9% 20.3% Return on Portfolio 4.91% -1.53% 2.46% 3.99% Capital Adequacy 31.76% 15.19% 20.6% 24.8% Book Value Rs. 146.77 89.59 100.61 87.55 Net Interest Margin 9.39% 9.86% 9.96 % 9.47%
Assets under Management
The loan approval process of Asirvad is decentralised, with set overall loan sanction limits, consideration of customer loan track and the loan cycle. During the year, Asirvad’s loan book increased to Rs.3,838 Crores from Rs. 2,434 Crores in the previous year. The increase in the loan book was Rs. 1,404 Crores which has been determined after taking into account loan repayments of Rs. 2881 Crore (previous year 2,235 Crores) and loans written off during the year amounting to Rs. 55.2 Crores (previous year Rs. 138.56 Crores). The growth in the microfinance loan book, after adding back loans securitised in the preceding twelve months was 57.68%. The SME loan book is 2.02 crore as on 31st March 2019.
46 12th Annual Report 2018-19
Securitisation
During 2018-19, the company securitised its assets worth Rs. 1803 crores as against Rs. 497 crores during the previous year. With securitisation, the company ensures broad basing of the borrowing profile and reduced cost of funds as the underlying assets rank for classification under priority sector lending by the Banks. The outstanding securitised assets portfolio stood at Rs. 1473 crores as on March 31, 2019.
Resource Mobilization & Treasury Operations
The funding for the business is from an optimum mix of equity and debt. The company continues to follow the policy of diversification of funding sources. The Company has existing relationship with about 64 lenders across Banks, Financial Institutions, NBFCs and Overseas FII investors, who have sanctioned of Rs 1986 Crores during the year, out of which Rs.1616 crore has been availed as on 31st March 2019. It includes Rs. 345 Crores of NCDs issued during the year.
The Funding mix of the company as on 31st March 2019 is given below
Term Loan 36% Non convertible Debentures 23% Securitization 40% Commercial Paper 1%
New initiatives
As part of our Green initiative, digitization of our existing process and onboarding through Tabs have been identified as important projects and resources have been allocated. It will reduce paper work, simplify loan process and reduce TAT for loan processing end to end. The project will get implemented in next financial year.
Now, Asirvad customers are being informed of their transactions through regional language by way of SMS alerts. The customers are informed about their amount disbursed, due dates in advance, amount collected, overdues in case of amounts not paid. Our endeavor would be digitally include them through developing Customer specific Asirvad app in next financial year.
Handling natural calamities
During last financial year, Asirvad customers had to face cyclone Gaja hitting Thanjavur district of Tamilnadu State and unprecedented rains resulting in floods in many districts of Kerala State. We had offered appropriate CSR activities at these places. We had internally designed SOP for handling such natural calamities and the Asirvad team is well equipped to handle such natural calamities in future. Two new loan products were also designed to support such calamity affected customers. 47 12th Annual Report 2018-19
Outlook for financial year 2019-20
Asirvad will continue to expand in eastern region and look for growing opportunities in Northern and Central region. We expect 15 States to have more Rs 100 crore AUM and four States to have more than Rs 500 crore AUM in coming new financial year. Asirvad Business Calendar (ABC) consisting of various business parameters pertaining to new financial year 19-20 has been shared to every Branch Manager to know their business targets. We expect this process will drive target achievement in desired manner. Branches opened in FY 18 and 19 will strive to reach its potential customers. Human Resources
Asirvad is embarking on a new growth journey, with new aspirations and milestones. The Financial Year 2018-19 has been a very exiting period for Asirvad. Together as an organization, we continue to soar above challenges such as transformation, governance and several structural challenges. Working in tandem with operation, amid challenging times, the HR team has been able to partner in building a strong foundation for Asirvad that is centred on core values of Acceptance, Support, Integrity, Resilience, Viable, Adaptable and Dependable.
Asirvad is continued to show signs of positivity and growth, providing the Management an appetite for enhancing potential and driving growth and development of its human capital.
Human Capital
3238 candidates joined Asirvad family in FY 2018-19 and the total manpower strength stood at 4951 PAN India as on 31st March 2019, with 20 States, 2 Union Territories and 942 branches.
We strongly believe on Employee Referral Program, this helps us managing our “son of soil” strategy in hiring local talents. Career Progression is an integral part of the HR strategy of Asirvad. We have a well-defined grading and banding process. We follow “home away” policy while promoting employees through cadre. Asirvad closed more than 42% of all open positions through Internal Job Promotions (IJPs) and more than 54% of the open positions through employee referrals. Internal Job Posting (IJPs) are conducted at regular intervals and employees are encouraged to participate and undergo the selection process. Asirvad has also introduced higher study incentive programs for completing graduations. SEED programs like MBAs and Certification courses have been rolled out for employees to enhance their skill and competencies while working.
Recruitment through Train and Board Model
Asirvad has created Talent Transformation (TT) Team to hire entry level fresher in batches to on-board, train and deploy field employees across areas of operation. A cross functional team across HR, Training, Recruitment and Infrastructure function involved in this model.
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“Right Start” initiative has been introduced to ensure new hires are trained and well equipped within stipulated time frame to enhance productivity. In a manpower intensive industry with moderately high attrition rate, the challenge is to deploy trained manpower across business clusters, at regular intervals. HR Team are trained to engage new hires for first four weeks through “First impression” initiative. The train & board model coupled with “right start” & “first impression” initiatives thus aims to address the following:
• Quick turnover in fulfilling manpower requisition
• Control early attrition rate and bettering retention
• Increase cost effectiveness and productivity
Employee Connect Initiatives
Employee-led organisation Asirvad strongly believes in creating an environment that ensures last mile connectivity with the field employees. The organisation’s communication channels are varied and each serves a different purpose.
Asirvad-Connect & My HR Support – Asirvad-Connect is corporate communication channel through which all corporate communications like organization announcement, circulars, policies and change management etc. gets communicated to- all colleagues of Asirvad.
All employees can write to My HR Support on their DICE (Doubts, Issues, Concerns and Escalation) which gets resolved in 72 business hours.
Know your HR & HR Hour: “Know your HR”poster has been displayed in all branches of Asirvad pan-India which carries all contact details for various services with escalation matrix. There is dedicate “HR Hour” for employees to contact their cluster HR Manager for seeking any help and guidance.
Speak-Up : To report any frauds, mal-practices or any action that impacts company’s reputation and finance, unfair treatment & harassment to employees or their colleagues, employees can write to speak-up id with confidentiality. Depending on category of issues raised, Ombudsman assigned respective inquiry teams (Risk, Internal Audit, POSH & HR etc.) and gets it resolved.
Asirvani: A quarterly corporate newsletter has been recently launched for internal and external stakeholders.
Employee Engagement
Asirvad strives to be great places to work with. In December 2018, Asirvad participated in The Great Place to Work (GPW) survey. In parameters like Credibility of Management, Respect for People, Fairness at workplace, Camaraderie between people and Taking Pride in Organisation, Asirvad clearly crosses the benchmark score of the financial services sector.
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Asirvad has also introduced joint KRA between Operation and HR to hire, engage and retain best talents.
Rewards And Recognition
Asirvad has launched employee recognition program called ICONS (Innovation, Collaboration, Outstanding, Networking and Strive) to recognise exceptional performances at the workplace. This program includes reward best performer at individual level (Asirvad ICON, Asirvad Star and Value ICON) and team level (Iconic Branch). This program helps organization to:
• Improve visibility of the best practices designed and implemented by individual or team
• Replicate the recognized and successful best practices across all branches.
• Encourage initiatives and instill a healthy competition across all branches / divisions.
Reinforcing learning:
This year saw the introduction of a number of learning initiatives for both the frontline branch staff and the back end staff.
The following were the areas of focus:
• Training for transformation and change management.
• Establishing in-house capability for technology training
Training For Transformation And Change Management:
Asirvad has gone through large scale of transformation and change managements, process are renovated with automation and self-services, new products were launched, roles got redefined across level. Customized curriculum was built for each roles and post evaluation processes were put in place.
DRIVE – Divisional Manager Training
Divisional Managers across India were trained for 3 days in batches and roles are redefined. They went through evaluation process before getting certified. Senior leadership across functions as well as management team interacted with these leaders to infuse passion, energy and confidence.
Area Managers workshop
State level training workshops were conducted to train Area Managers and reinforced on roles covering all facets of operation including people, risk & compliance, technology.
Training for Data Entry Operators & Divisional Accounts Executives
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Asirvad has launched functional training for all divisional staffs on new process and technology so that they facilitate operation with error free business environment
Training Digital On-boarding
Asirvad has launched automated digital on-boarding of customer in few states on pilot basis. Training has been completed in those pilot states. Pan-India level training has been rolled out to ensure all field level employees are well-equipped to handle new processes.
Establishing In-House Technology Training Capability:
This year saw huge amount of transformation in technological front. Asirvad has initiated Train-the-Trainer (TTT) model to train all the employees across levels working in field and back office. We are in process of establishing in-house technology labs across all four regions and building customized technology content for all the applications used across branches / divisions in partnership with the respective functions. Information Technology
Asirvad’s Information Technology (IT) philosophy is “committed to operate and maintain a well governed, structured and process-oriented IT function that proactively delivers to the strategic and operational requirements for the effective & efficient achievement of our mission & vision, with continuous improvement according to the changes in the Business Processes and Regulatory requirements”.
The IT infrastructure is created keeping following key factors:
Information & Data Security
Improved operational efficiency
Efficient portfolio tracking and monitoring
Better customer service
Reduced transactional costs
Compliance with regulatory/statutory requirements
Moving towards paper less transactions
100% on Cloud
The following processes are digitized at Asirvad.
Tablets are issued to the Field Staff for automating the Collection Process by which the receipts are issued to the customers on-the-spot using Bluetooth Printers. The receipts also supported by instant SMS to the Customers in vernacular languages
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Geo-tagging of Centres/Branches for better management and reachout apart from tracking the field staff using GPS
100% digital disbursement and Centralised Disbursement posting based on NEFT data
Geo Fencing based Attendance System for the employees.
The IT department at Asirvad continuously strives for upgrading the IT infrastructure to make Asirvad one of the best tech savvy organizations in the domain. Use of digital devices (tablets & mobiles) for online – real time receipting & accounting, a robust, scalable & functionally rich lending software solution, an employee friendly software for Human Capital Management, effective Analytics and MIS for portfolio monitoring, highly secure & reliable network, a robust, scalable & functional rich financial accounting software to cater all financial reporting will help Asirvad in achieving its goal. INTERNAL AUDIT & CONTROLS
Every branch is audited every month by the Internal Audit team. They play a very important role in Asirvad to ensure that the business operations are carried out smoothly as per the laid down policies of the company and ensure compliance. The focus of the Internal Audit team is not only to identify and highlight, but also help the staff to rectify the mistakes and to ensure due diligence is enforced by every staff across all functions. The Board and Audit Committee reviews the adequacy and effectiveness of the internal audit function periodically, including the scope of activities, reviewing annual audit plans, staffing etc., and facilitate effective review in place across top management and ensure compliance.
The main objective of the Internal Audit function is to provide a comprehensive check and review the controls across various operation functions. The audit staff conduct different type of audit encompassing pre-disbursement, post- disbursement and Branch functions which cover the entire business operations. In addition to this, special audits also carried out at branches to meet some specific requirements of the management.
The Internal Audit observations are broadly categorized into four types of alerts based on risk and occurrence viz., Critical, High, Medium and Low. These are further cascaded to multiple levels of business operation teams for validation and compliance. The overall findings and closure statuses has been presented to Audit committee forum comprising senior Board members on a Quarterly basis. RISK MANAGEMENT
Micro finance industry is in a most evolving stage in India carrying multiple risks and involve developing strategies to counter various emerging risks as well as key risks associated with any type of lending business. Asirvad is forefront in identifying and analysing the impact of 52 12th Annual Report 2018-19 internal and external risks with a special risk desk supporting various initiatives. Credit risk arising out of delinquencies on account of non-performing portfolio, operational risk arising out inadequate process or failed controls to predefined processes, liquidity risk impacting flow of funds to the organization and sector risk arising out political considerations, concentration risk arising out multiple players are some of the major risks faced by the every Organisation.
The risk management framework is perhaps one of the most important parameters that define the success of financial services organisation. The risk management programme in the organization establishes multiple process of identifying and assessing the major risks covering all areas of the institution’s activities. This includes all activities geared toward meeting its strategic, operational, reporting and compliance objectives. The management then develops ways to manage and mitigate these risks by implementing a strong robust system of internal control. The management is accountable to the reporting to the board of directors its assessment of the institution’s risk and its efforts to manage and mitigate the risk. The board of directors is responsible to ensure that the management has implemented a risk management programme, that resources are allocated for risk management and internal controls, and that there is adequate oversight of the audit functions as one of the board of director’s responsibilities.
The Board of Directors and its various sub-committees have met from time to time and ensured adherence to the guidelines issued by RBI. Liquidity risk management, interest rate risk, funding and capital planning, profit planning and growth projections, pricing, credit risk , portfolio risk management, operational and process risk management have also been reviewed from time to time and the sub-committees have also been making necessary changes to KYC and other disclosure norms based on the policies being issued by the Central Bank at periodic intervals.
53 CORPORATE GOVERNANCE REPORT 12th Annual Report 2018-19 Report on Corporate Governance
A Good corporate Governance practice is a key factor of sustainable corporate growth and maintains a long term relationships with the stakeholders of the Company. Asirvad is committed to highest level of corporate Governance practices and emphasizes the need for full transparency and accountability in all transactions, in order to protect the interests of its stakeholders. This enables the Company to attract high quality financial and human capital.
Asirvad Microfinance limited believes that a strong professionally balanced Board of Directors is necessary to ensure the highest standards of Corporate Governance; we have an appropriate mix of executive /non executive and independent directors in our Board.Board of Directors represents the shareholder’s interest in perpetuating a successful business and optimizing long term financial returns in a manner consistent with applicable regulatory and legal requirements and ethical considerations.
RBI Guidelines on Corporate Governance
In order to enable NBFCs to adopt best practices and greater transparency in their operations, RBI hasstipulated all NBFCs to frame an internal guideline on Corporate Governance. In pursuance of the aforesaid guidelines, the Company has framed an internal guideline on Corporate Governance.
Company's Philosophy on Corporate Governance
In terms of corporate governance philosophy, all statutory and significant material information is placed before the Directors to enable them to effectively supervise the Company.
Asirvad’s Corporate Governance philosophy is based on the following principles:
• Compliance to laws in both letter and spirit
• Utmost transparency in dealings with all the stakeholders
• Clear communication of relevant information and high degree of disclosure levels
• Make a clear distinction between personal conveniences and corporate resources
• Communicate externally, in a truthful manner, about how the Company is running internally
• Have a simple, transparent and efficient corporate structure driven solely by business needs
• Create value for all stakeholders without compromising on ethical principles.
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Board of Directors
As at March 31, 2019, your Company’s Board consists of 10 (Ten) members. The composition of the Board is in conformity with the provisions of Companies Act, 2013 and Corporate Governance Directions issued by Reserve Bank of India.
Composition and Category of Directors
Name of Director Category Designation Mr. V.P. Nandakumar Non- Executive Chairman Mr. S.V. Raja Vaidyanathan Executive Managing Director Mr. B.N. Raveendra Babu Non- Executive Non- Independent Director Mr. Gautam Saigal Non- Executive Non- Independent Director Mr. T. Balakrishnan Non- Executive Independent Director Mr. A. Ramanathan Non- Executive Independent Director Mr. V.R. Rajiven Non- Executive Independent Director Mr. Desh Raj Dogra Non- Executive Independent Director Mr. T.M. Manoharan Non- Executive Independent Director Ms. PushyaSitaraman Non- Executive Independent Director Meetings of the Board During the year, the Board met 5 (Five) times on thefollowing dates;
15th May, 3rd August, 3rd November, 2nd February, 16th March, 2018 2018 2018 2019 2019
Attendance during the financial year 2018-19 of each Director at the Board Meetings, last Annual General Meeting.
Attended last Attended Sl. AGM held on Name of the Director Category (Board No 3rd August, Meeting) 2018 1 Mr. V.P. Nandakumar Chairman 5 No 2 Mr. S.V. Raja Vaidyanathan Managing Director 5 Yes 3 Mrs. Kalpana Iyer Independent Director 1 No 4 Mr. B.N. Raveendra Babu Director 5 Yes 5 Mr.V.R.Rajiven Independent Director 5 Yes 6 Mr. Gautam Saigal Independent Director 5 Yes 7 Mr. A Ramanathan Independent Director 4 No 8 Mr. Desh Raj Dogra Independent Director 5 Yes 9 Mr. Shailesh J Mehta Independent Director 1 No 10 Mr. T.M. Manoharan Independent Director 5 Yes 11 Mr. T. Balakrishnan Independent Director 5 Yes 12 Ms. PushyaSitaram Independent Director 2 No
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None of the Directors of the Company have exceeded the maximum number of Directorship as specified under Section 165 of the Companies Act, 2013.
Separate meetings of the Independent Directors
A Separate Meeting of Independent Directors was held on 16th March, 2019 without the attendance of non independent directors and members of management. All the Independent Directors attended the meeting and:
• reviewed the performance of non-independent directors and the Board as a whole;
• reviewed the performance of the Chairman of the company, taking into account the views of executive directors and non-executive directors;
• Assessed the quality, quantity and timeliness of flow of information between the company managementand the Board that is necessary for the Board to effectively and reasonably perform their duties.
Committees of the Board
To focus effectively on the issues and ensure expedient resolution of diverse matters, the Board has constituted the following set of Committees with specific terms of reference / scope. The Committees are operating as empowered agents of the Board as per their Charter / terms of reference.
Audit Committee
The Audit Committee, being the sub-group of the full board, has an important role to play in the process of financial monitoring and reporting. The audit committee is established with the aim of enhancing confidence in the integrity of an organization’s processes and procedures relating to internal controls and corporate reporting including financial reporting. Audit Committee provides an ‘independent’ reassurance to the board through its oversight and monitoring role, ensuring transparency and accuracy of financial reporting and disclosures, effectiveness of external and internal audit functions, robustness of the systems of internal audit and internal controls, effectiveness of anti-fraud, ethics and compliance systems, and review of the functioning of the whistleblower mechanism. Audit Committee may also play a significant role in the oversight of the company’s risk management policies and programs. Both internal and external auditors report directly to the audit committee.
The functions of the audit committee include
• Monitor and review the Company's financial statements and internal controls.
• Supervise financial reporting process.
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• Review financial results before placing them to the Board along with related disclosures and filing requirements.
• Review adequacy of internal controls and performance of internal audit function.
• Discuss with management, the Company's major policies with respect to risk assessment and risk management.
• Ensure compliance with accounting standards with respect to financial statements
The Audit Committee met on the following dates during the financial year 2018-19:
14th May, 3rd August, 3rd November, 2nd February, 2018 2018 2018 2019 Composition and Attendance of the Audit Committee are as follows:
Number of Number of Name of the Director Category Meeting Meeting held Attended Mr. Desh Raj Dogra Chairman, 4 4 Independent Director Mr. T. Balakrishnan Member, 4 3 Independent Director Mr. Gautam Saigal Member, 4 4 Non-Executive Director Mr. A. Ramanathan Member, 4 3 Independent Director Nomination and Remuneration Committee
The Board has constituted the Nomination and Remuneration Committee pursuant to the provisions of the Companies Act, 2013. The primary purpose of the Committee, among other things, is to determine and propose the following for Board's approval:- a) To identify persons who are qualified to become Directors and also who may be appointed in senior management positions in accordance with the criteria laid down and recommend to the Board their appointment and removal; b) To formulate the criteria for performance evaluation of Independent Directors and the Board; c) To carry out performance evaluation of Independent Directors along with the Board as a whole; d) To evaluate the level and composition of remuneration to be reasonable and sufficient to attract, retain and motivate Directors.
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The Nomination and Remuneration Committee met on the following dates during the financial year 2018-19:
14th May, 2018 3rd November, 2018 2nd February, 2019 16th March, 2019 Composition and Attendance of the Nomination and Remuneration Committee are as follows:
Number of Number of Name of the Director Category Meeting Meeting held Attended Mr. T. Balakrishnan Chairman, Independent Director 3 2 Mr. V.R. Rajiven Member, Independent Director 3 3 Mr. Gautam Saigal Member, Non- Executive* 3 3 Mr. B.N. Raveendra Babu Member, Director 3 3 *Non- Independent Director Corporate Social Responsibility Committee
In accordance with the provisions of Section 135 of the Companies Act, 2013 read with Rules made thereunder, the Board of Directors of the Company have constituted the Corporate Social Responsibility Committee (CSR Committee). The Committee has formulated and recommended a CSR Policy to the Board and various recommendations of the Committee including the amount of expenditure to be incurred on CSR activities are submitted to the Board for approval. The Committee has framed a transparent monitoring mechanism for implementation of CSR projects or programs or activities undertaken by the Company and also monitors CSR policy from time to time.
The Corporate Social Responsibility Committee met on 2nd February, 2019, during the financial year 2018-19:
Composition and Attendance of the Corporate Social Responsibility Committee are as follows:
Number Number of of Name of the Director Category Meeting Meeting Attended held Mr. T. M. Manoharan Chairman, Independent Director 1 1 Mr. S.V. Raja Vaidyanathan Member, Executive Director 1 1 Mr. B.N. Raveendra Babu Member, Non- Executive 1 1 Mr. V.R. Rajiven Member, Independent Director 1 1 Borrowing Committee
The Borrowing Committee is in place to approve fresh borrowings from banks and financial institutions and also to empower designated individuals in the senior management to finalize the terms and conditions relating to the proposal under consideration.
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The Borrowing Committee met on the following dates during the financial year 2018-19:
5th April, 2018 27th June, 2018 29th June, 2018 14th July, 2018 16th Aug, 2018 30th Aug, 2018 24th Sept, 2018 26th Sept, 2018 12th Oct, 2018 27th Oct, 2018 30th Nov, 2018 7th Dec, 2018 12th Dec, 2018 20th Dec, 2018 24th Dec, 2018 27th Dec, 2018 9th January, 2019 21st Feb, 2019 8th March, 2019 18th Mar, 2019 23rd Mar, 2019 26th March, 2019 27th Mar, 2019 Composition of the Borrowing Committee are as follows:
Name of the Director Category Mr. S.V. Raja Vaidyanathan Chairman, Executive Director Mr. A. Ramanathan Member, Independent Director Mr. B.N. Raveendra Babu Member, Non- Executive Director Mr. V.P. NandaKumar Member, Non- Executive Director
Risk Management Committee and Asset Liability Management Committee The risk management framework is perhaps one of the most important parameters that define the success of a financial services organization. A risk management programme establishes a process of identifying and assessing the major risks covering all areas of the institution’s activities risk. The board of directors is responsible to ensure that management has implemented a risk management programme, that resources are allocated for risk management and internal controls, and that there is adequate oversight of the audit function as one of the board of director’s responsibilities.
Asset Liability Committee is constituted to monitor the asset liability gap, strategize action to mitigate the risk associated, ensuring adherence to the limits set by the Board as well as for deciding the business strategy of the company (on the assets and liabilities sides) in line with the company’s budget and decided risk management objectives.
Composition of the Risk Management Committee are as follows:
Name of the Director Category Mr. Gautam Saigal Chairman, Non- Executive Director Mr. T.M. Manoharan Member, Independent Director Mr. V.R. Rajiven Member, Independent Director Mr. Desh Raj Dogra Member, Independent Director
The Asset Liability Committee met on the following dates during the financial year 2018-19:
12th April, 2018 25th May, 2018 20th June, 2018 27th July, 2018 24th August, 2018 18th Sep, 2018 12th Oct, 2018 29th Nov, 2018 27th Dec, 2018 22nd Jan, 2019 26th Feb, 2019 22nd Mar, 2019
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Composition of the Asset Liability Committee are as follows:
Name of the Director Category Mr. S.V. Raja Vaidyanathan Chairman, Executive Director Mr. S. Ramachandran Member, COO Mr. Mayank Shyam Thatte Member, CFO and Secretary IT Strategic Committee IT Strategic Committee was constituted as per the RBI Master Directions on IT Framework for NBFC Sector. The Constitution of IT Strategy Committee is mandatory for the Company. The IT Strategic Committee met on 23rd April, 2018 and 20th October, 2018 during the financial year 2018-19:
Compositions of the IT Strategic Committee are as follows:
Name of the Director Category Mr. A. Ramanathan Chairman, Independent Director Mr. S.V. Raja Vaidyanathan Member, Chief Information Officer Mr. Anand Sharma Member, Chief Technology Officer Details of General Meeting During the financial year 2018-19, 11thAnnual General Meeting was held on 3rdAugust, 2018 and 2 (Two) Extra Ordinary General Meetings (EGM) was held on 10th April, 2018 and 16th March, 2019 respectively. The details are given below:
Sl.No Meeting Time Venue 1 Annual General Meeting 05.00 P.M. Radisson Blu Hotel, GST Road, St. Thomas Mount, Chennai – 600 016. 2 Extra Ordinary General Meeting 03.30 P.M. First Floor, Lemuir House, GN Chetty Road, Chennai 600 017 3 Extra Ordinary General Meeting 04.00 P.M. Radisson Blu Hotel, GST Road, St. Thomas Mount, Chennai – 600 016. All the proposed resolutions, including special resolutions were passed by the shareholders as set out in their respective notices.
For and on behalf of the Board
V.P.Nandakumar S.V.Raja Vaidyanathan Chairman Managing Director Date: 13th May, 2019 Place: Chennai 61 SECRETARIAL AUDIT REPORT 12th Annual Report 2018-19
FOR THE FINANCIAL YEAR ENDED 31st Mar 2019 (pursuant to section 204(1) of the Companies Act 2013 and Rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014
To The Members M/s Asirvad Microfinance Ltd. ‘Deshbandhu Plaza’ No.47 Whites Road, 1st Floor Chennai 600 014.
I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by M/s Asirvad Microfinance Limited (CIN No.U65923TN2007PLC064550) (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the company has, during the audit period covering the Financial year ended on 31st March 2019 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mecha- nism in place to the extent, in the manner and subject to the reporting made hereinafter.
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31st March, 2019 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Companies (Acceptance of Deposits) Rules, 2014.
(iii) The Securities Contracts ( Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iv) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(v) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
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During the period under review, the Company has complied with the provisions of the Act, Rules, Regulation, Guidelines, Standards.
During the period under review:
1. The Company has taken loans from the Banks/Financial Institutions from time to time. Necessary charges in Form CHG-1 were filed.
2. The Company has allotted Secured Non-Convertible Listed Debentures.
3. The Company has not accepted Deposits from the public.
4. The Company has not taken inter-corporate loans in the year.
5. During the year the company has taken loans amounting to Rs. 2192 Crores (FY 2018 Rs.1113 Cr.) and necessary CHG-1 was filed with ROC in time.
6. During the year, a few loans were fully repaid by the company amounting to Rs.329 Crores (FY 2018 Rs.275 Cr.). Accordingly, under Sec. 82 of the Companies Act 2013, Satisfaction of charges in Form No. CHG-4 were filed with the Registrar of Companies for the aforesaid amount in time. This does not, however, include part repayment of loans.
7. This company continues to be a Subsidiary of M/s Manappuram Finance Limited.
8. The Company has not declared dividend during the year
9. The Company’s Authorized Share Capital increased to Rs.100 Crores and necessary e-Forms filed with Registrar of Companies.
10. The company has spent the eligible profit on Corporate Social Responsibility.
I further report that
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. The Company has appointed a Woman Director as required under sec.149 of the Companies Act 2013.
Adequate notice is given to all directors to schedule the Board Meetings. Agenda and detailed notes on agenda were sent to the Directors at least seven days in advance. A system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting for a meaningful participation for the directors at the meeting.
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Decisions were carried unanimously. However, important discussions on members’ views are captured and recorded, as part of the minutes.
I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
This report is to be read with my letter of even date which is annexed as Annexure A and forms an integral part of this report.
Sd/- xxxx S. Hari Company Secretary in Practice Place: Chennai FCS No. 821 Date: 13th May 2019 C P No. 4276
65 12th Annual Report 2018-19 Annexure ‘A’ To, The Members M/s Asirvad Microfinance Ltd. ‘Deshbandhu Plaza’ No.47 Whites Road, 1st Floor Chennai 600 014.
My report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the company. My responsibility is to express an opinion on these secretarial records based on the Secretarial Audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. I believe that the processes and practices, I followed provide a reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Wherever required, I have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. My examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness with which the management has conducted the affairs of the company.
Sd/- xxxx S. Hari Company Secretary in Practice Place: Chennai FCS No. 821 Date: 13th May 2019 C P No. 4276
66 INDEPENDENT AUDITOR’S REPORT 12th Annual Report 2018-19 Report on the Audit of the Financial Statements
To The Members of Asirvad Micro finance Limited Opinion
We have audited the accompanying financial statements of Asirvad Microfinance Limited (“the Company”), which comprise the Balance Sheet as at 31 March 2019, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statementand the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act, the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India as referred in Note 3.1 to the financial statements, of the state of affairs of the Company as at 31 March 2019, and its profit, total comprehensive income its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be the key audit matter to be communicated in our report.
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Sr. No. Key Audit Matter Auditor’s Response 1. Provision for Expected Credit Losses on Principal audit procedures performed: Loans We tested the design and operating The Loans are the most significant item effectiveness of key controls focusing on in the Financial Statements. the following:
This, being the first year of application • Appropriateness of assumptions, of the expected credit loss model in used in determination of provisions; determining the provisions, a significant and degree of judgement is involved in • Completeness and accuracy of data determining the quantum so as to ensure input into models. that there is neither management bias nor material risk of misstatement. For determination of provision we tested data inputs and agreed a sample of data The measurement of the said estimate used in the models to source systems. We is primarily dependent upon key evaluated the methodology to establish assumptions relating to probability of model parameters and assessed the default and loss given default, after appropriateness of the models used. eliminating exceptional events/losses.
Information Other than the Financial Statements and Auditor’s Report Thereon
• The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Directors Report, Management Discussion Analysis, Corporate Governance Report, Report on Corporate Social Responsibility and Secretarial Audit Report, but does not include the financial statements and our auditor’s report thereon. These reports are expected to be made available to us after the date of this auditor's report.
• Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
• In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
• When we read the Directors Report, Management Discussion Analysis, Corporate Governance Report, Report on Corporate Social Responsibility and Secretarial Audit Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ‘The Auditor’s responsibilities Relating to Other Information’.
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Management’s Responsibility for the Financial 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 including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing 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 the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility 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 to fraud or error, and to issue an auditor’s report that includes 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.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify 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 not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 70 12th Annual Report 2018-19
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) 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 the 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 exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we 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 to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude 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 evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control 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 to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report 71 12th Annual Report 2018-19 unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements 1. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all 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.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act and other accounting principles generally accepted in India (Refer Note 3.1 to the financial statements).
e) On the basis of the written representations received from the directors as on 31 March 2019 taken on record by the Board of Directors, none of the directorsis disqualified as on 31 March 2019 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls 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,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
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iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order/CARO 2016”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Deloitte Haskins & Sells Chartered Accountants (Firm’s Registration No.008072S)
S Sundaresan (Partner) (Membership No.25776)
Place: Chennai Date: 13 May 2019
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ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT (Referred to in paragraph (f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Asirvad Microfinance Limited (“the Company”) as of 31 March 2019 in conjunction with our audit of the Ind AS 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 internal control 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 Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India, These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to 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 to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
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Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our 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 evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, 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 internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial 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 fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted 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 (3) 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 Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
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Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2019, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Deloitte Haskins & Sells Chartered Accountants (Firm’s Registration No.008072S)
S Sundaresan Place: Chennai (Partner) Date:13 May 2019 (Membership No.25776)
76 12th Annual Report 2018-19 ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT (Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
(i) In respect of Fixed Assets :
a) The Company has maintained proper records showing full particulars, including quantitative details and situationof fixed assets.
b) Some of the fixed assets were physically verified during the year by the Management in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed provided to us, we report that, the title deeds, comprising all the immovable properties of land which are freehold, are held in the name of the Company as at the balance sheet date.
(ii) The Company does not have any inventory and hence reporting under clause (ii) of the CARO 2016 is not applicable.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
(iv) The Company has not granted any loans, made investments or provided guarantees and hence reporting under clause (iv) of the CARO 2016 is not applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. In respect of unclaimed deposits, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013.
(vi) Having regard to the nature of the Company’s business / activities, reporting under clause (vi) of CARO 2016 is not applicable.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory
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dues, including Provident Fund, Employees’ State Insurance, Professional Tax, Income-tax, Goods & Service Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income-tax, Goods & Service Tax, Professional Tax, cess and other material statutory dues in arrears as at 31 March 2019 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax which have not been deposited as on
31 March 2019 on account of disputes are given below :
Name of Nature of Forum where Period to Amount Amount Statute Dues Dispute is which the Involved Unpaid Pending Amount (Amount (Amount Rs. Relates Rs.in Lakhs) in Lakhs) Income Tax Income Tax CIT(A) AY 2015-16 1,124.50 899.60 Act, 1961 Income Tax Income Tax CIT(A) AY 2016-17 1,978.91 1,583.13 Act, 1961
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and dues to debenture holders. The Company does not have any borrowings from Government.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year other than embezzlement of cash amounting to Rs. 210.93Lakhs by employees in 25 of the branches of the Company (Refer note 45 to the Financial Statements) detected and appropriately dealt with by the Management.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
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(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, the Company has made preferential allotment of shares or fully or partly convertible debentures during the year under review.
In respect of the above issue, we further report that:
(a) the requirement of Section 42 of the Companies Act, 2013, as applicable, have been complied with; and
(b) the amounts raised have been applied by the Company during the year for the purposes for which the funds were raised, other than temporary deployment pending application.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. For Deloitte Haskins & Sells Chartered Accountants (Firm’s Registration No.008072S)
S. Sundaresan (Partner) (Membership No.25776) Place: Chennai Date: 13 May 2019
79 FINANCIAL STATEMENT
80 12th Annual Report 2018-19
Asirvad Microfinance Limited Balance Sheet as at 31 March 2019
Note As at As at As at 31 March 2019 31 March 2018 1 April 2017 Particulars No. Amount Rs.in Amount Rs.in Amount Rs.in Lakhs Lakhs Lakhs I ASSETS 1 Financial assets (a) Cash and cash equivalents 5 52,590.02 19,026.25 10,091.98 (b) Bank Balances other than (a) above 6 16,224.19 8,570.44 6,824.39 (c) Loans 7 232,235.30 203,461.22 162,811.38 (d) Loans given to staff - at amortised cost 80.41 53.46 28.68 (e) Investments 8 5.00 5.00 5.00 (f) Other Financial assets 9 3,328.95 2,174.76 1,172.59 2 Non-financial Assets (a) Current tax assets (net) 10 1,466.86 817.43 - (b) Deferred tax assets (net) 11 2,261.20 4,444.65 3,936.73 (c) Investment Property 8.64 8.64 8.64 (d) Property. Plant and Equipment 12 (a) 205.14 628.88 551.68 (e) Intangible assets 12 (b) 21.23 73.34 7.01 (f) Other non financial assets 13 310.85 160.39 108.14 Total assets 308 737.79 239 424.46 185 546.22 II LIABILITIES AND EQUITY 1 Financial Liabilities (a) Other Payables (i) total outstanding dues of micro enterprises - - - and small enterprises (ii) total outstanding dues of creditors other than 14 1,656.06 1,035.90 835.11 micro enterprises and small enterprises (b) Debt Securities 15 78,537.03 61,998.17 43,310.74 (c) Borrowings (other than debt securities) 16 133,699.47 134,836.90 105,309.81 (d) Subordinated Liabilities 17 11,414.15 11,407.06 11,412.46 (e) Other Financial liabilities 18 4,209.10 1,512.82 398.83 2 Non-financial Liabilities (a) Provisions 19 236.48 184.29 567.10 (b) Other non-financial liabilities 20 739.78 576.25 473.46 3 Equity (a) Equity share capital 21 5,331.19 3,207.49 2,627.66 (b) Other equity 22 72,914.53 24,665.58 20,611.05 308 737.79 239 424.46 185 546.22 See accompanying notes forming part of the financial statements In terms of our report of even date attached For and on behalf of the Board of Directors of Asirvad Micro finance Limited For Deloitte Haskins & Sells Chartered Accountants S Sundaresan V P Nandakumar S V Raja Vaidyanathan Partner Chairman Managing Director (DIN No.00044512) (DIN No.01467098) Place : Chennai MayankShyamThatte Anup Gupta Date : 13 May 2019 Chief Financial Officer Company Secretary 81 12th Annual Report 2018-19
Asirvad Microfinance Limited
Statement of Profit and Loss for the year ended 31 March 2019
For the Year For the Year Ended Ended Particulars Note No 31 March 2019 31 March 2018 (Amount (Amount Rs.in Rs.in Lakhs) Lakhs) I Revenue from operations Interest income 23 60,660.71 43,571.27 Other operating income 24 1,157.47 280.61 Total (I) 61,818.18 43,851.88
II Other Income 5,906.82 3,107.32 III Total Income (I + II) 67,725.00 46,959.20 IV Expenses Finance cost 26 27,344.95 21,318.20 Impairment of financial instruments 27 1,977.89 12,427.67 Employee benefit expenses 28 11,348.19 9,252.10 Depreciation, amortization and impairment 12 588.50 635.94 Other expenses 29 6,324.11 4,773.43 Total Expenses (IV) 47,583.64 48,407.34
V Profit/(loss) before tax (III - IV) 20,141.36 (1,448.14) VI Tax Expense: 11.1 (1) Current tax 4,711.00 (2) Deferred tax 2,171.99 (519.64) VII Profit / (loss) for the year (V - VI) 13,258.37 (928.50) VIII Other Comprehensive Income A (i) Items that will not be classified to profit or loss: 11.1 32.71 33.55 Remeasurement gains and (losses) on defined benefit obligations (net) (ii) Income tax relating to items that will not be (11.46) (11.72) reclassified to profit or loss Other Comprehensive Income 21.25 21.83
IX Total Comprehensive Income for the year (VII + VIII) 13,279.62 (906.67) X Earnings per equity share 31 - Basic (Rs.) 31.35 (3.33) - Diluted (Rs.) 31.35 (3.33)
See accompanying notes forming part of the financial statements In terms of our report of even date attached For and on behalf of the Board of Directors of Asirvad Micro finance Limited For Deloitte Haskins & Sells Chartered Accountants S Sundaresan V P Nandakumar S V Raja Vaidyanathan Partner Chairman Managing Director (DIN No.00044512) (DIN No.01467098) Place : Chennai MayankShyamThatte Anup Gupta Date : 13 May 2019 Chief Financial Officer Company Secretary
82 12th Annual Report 2018-19
Asirvad Microfinance Limited
Statement of changes in Equity for the year ended 31 March 2019 1. Equity Share capital Amount Rs. In Lakhs Changes in equity Balance at the end Balance at the beginning of the share capital during of the reporting reporting year the year year 3,207.49 2,123.70 5,331.19 2. Other Equity Amount Rs. In Lakhs Reserves and Surplus Capital Particulars Statutory Securities Share Option General Retained Total redemption Reserve Premium Outstanding Reserve Earnings reserve Balance as at 1 April 2017 1,679.97 500.00 15,900.80 - 35.93 2,494.35 20,611.05 Total Comprehensive (906.67) (906.67) Income for the year Securities Premium on 4,948.20 4,948.20 equity shares issued during the year Others 13.00 13.00 Balance as at 31 March 2018 1,679.97 500.00 20,849.00 13.00 35.93 1,587.68 24,665.58 Total Comprehensive 13,279.62 13,279.62 Income for the year Securities Premium on 34,961.89 34,961.89 equity shares issued during the year Others 2,651.67 7.44 (2,651.67) 7.44 Balance as at 31 March 2019 4,331.64 500.00 55,810.89 20.44 35.93 12,215.63 72,914.53
See accompanying notes forming part of the financial statements In terms of our report of even date attached For and on behalf of the Board of Directors of Asirvad Micro finance Limited For Deloitte Haskins & Sells Chartered Accountants S Sundaresan V P Nandakumar S V Raja Vaidyanathan Partner Chairman Managing Director (DIN No.00044512) (DIN No.01467098) Place : Chennai MayankShyamThatte Anup Gupta Date : 13 May 2019 Chief Financial Officer Company Secretary
83 12th Annual Report 2018-19
Asirvad Microfinance Limited
Asirvad Microfinance Limited Statement of Cash flows Statement of Cash flows
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs A Cash flow from Operating Activities Profit/(Loss) After Tax 13,258.37 (928.50) Adjustments for: Depreciation/ Amortisation 588.50 635.94 Tax Expenses 6,882.99 (519.64) Provision for Receivables under Financing Activity (Net) 1,977.89 12,427.67 Reversal of Provision for Credit enhancements on assets under financing activity - (6.92) Loss on Sale of Fixed Assets (Net) 2.21 5.07 Dividend Income (507.64) (195.94) Finance Cost 27,344.95 21,318.20 Interest on Deposits (1,381.03) (584.62) Income from Securitisation of Receivables (6,724.05) (2,150.05)
Operating Profit before Working Capital Changes 41,442.19 30,001.21 Changes in Working Capital: Adjustments for (increase) / decrease in operating assets: Receivables under Financing Activity (38,924.99) (54,802.02) Loans given to staff (26.95) (24.78) Other financial Assets (1,071.93) (915.73) Other non financial assets (159.55) (104.05)
Adjustments for increase / (decrease) in Operating Liabilities: Trade Payables 620.16 200.79 Other financial Liabilities 2,696.28 1,113.99 Other non financial Liabilities 163.53 102.79 Other Provisions 52.19 37.77
Cash Flow Generated from/(used in) Operations 4,790.93 (24,390.03) Income Received in Advance (Securitization) 6,724.05 2,150.05 Interest Income on Deposits 1,280.53 479.94
Net cash flow from/(used in) operations 12,795.51 (21,760.04) Net Income Tax Paid (5,360.43) (1,238.01) Net Cash flows from/(used in) Operating Activities 7,435.08 (22,998.05) B. Cash flow from Investing Activities Proceeds from Sale of Fixed Assets 163.18 119.24 Capital Expenditure on Fixed Assets (including Capital Advances) (287.13) (846.27) Dividend received 507.64 195.94 Net Cash Flow Generated from/(used in) Investing Activities 383.69 (531.09)
C. Cash flow from Financing Activities Proceeds from Long-Term Borrowings-Term Loans (net) (646.85) 31,910.34 Interest paid on Term loans (15,379.82) (12,675.48) Prepaid Processing Charges 222.35 (26.65) Proceeds from Long-Term Borrowings-Debentures (net) 12,593.00 16,684.67 Interest paid on Debentures (10,303.55) (7,235.06) Prepaid Processing Charges 83.09 31.42 Proceeds from Short-Term Borrowings - CP 3,477.75 1,483.96 Repayment of Short-Term Borrowings - Cash Credit 0.28 (2,499.17) Proceeds from Finance Lease (86.53) 2.82 Proceeds from Issue of Equity Shares 37,085.59 5,528.02 Other Interest and charges paid (1,300.31) (741.46) Net Cash Flow from Financing Activities 25,745.00 32,463.41 Net increase in Cash and cash equivalents (A+B+C) 33,563.77 8,934.27 Cash and cash equivalents at the beginning of the year 19,026.25 10,091.98 Cash and Cash Equivalents at the end of the year 52,590.02 19,026.25
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Asirvad Microfinance Limited
Asirvad Microfinance Limited Statement of Cash flows Statement of Cash flows
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs
Reconciliation of Cash and cash equivalents with the Balance Sheet: Cash and cash equivalents as per balance sheet (Refer note 5) 52,590.02 19,026.25
52,590.02 19,026.25 See accompanying notes forming part of the financial statements See accompanying notes forming part of the financial statements In terms of our report of even date attached For and on behalf of the Board of Directors of InFor terms Deloitte of our Haskins report &of Sellseven date attached Asirvad Microfinance Limited Chartered Accountants For and on behalf of the Board of Directors of Asirvad Micro finance Limited For Deloitte Haskins & Sells Chartered Accountants
SS Sundaresan Sundaresan V P Nandakumar V P Nandakumar S V Raja Vaidyanathan PartnerPartner Chairman Chairman Managing Director (DIN No.00044512) Place : Chennai (DIN No.00044512) (DIN No.01467098) PlaceDate : Chennai13 May 2019 MayankShyamThatte Anup Gupta Date : 13 May 2019 Chief Financial Officer Company Secretary S V Raja Vaidyanathan Managing Director (DIN No.01467098)
Mayank Shyam Thatte Chief Financial Officer
Anup Gupta Company Secretary
Place : Chennai Date : 13 May 2019
85 12th Annual Report 2018-19
Asirvad Microfinance Limited
Notes forming part of the Financial Statements for the year ended 31 March 2019 1. Corporate Information
Asirvad Microfinance Limited was incorporated in August 2007 under the provisions of Companies Act, 1956. The Company is a Non Banking Finance Company -Microfinance Institution (NBFC-MFI). The Company is registered as a Microfinance Institution under the Non Banking Financial Company-Micro Finance Institution (Reserve Bank ) Directions , 2011 as amended, vide RBI letter dated 4th October 2013.
The Company is engaged in extending micro credit advances to poor women, who are otherwise unable to access finance from the mainstream banking channels. The Company provides small value collateral fee loans with fortnightly /monthly repayments. The Company follows the Grameen Model with suitable adoptions using the group where each member is responsible for the loan repayment of the other members of the group. The Company provides collateral free product loans to the existing borrowers of small amount. The Company uses its branch infrastructure to market products to the members of the Joint Liability groups on behalf of other agencies for an agreed fee/commission.
The Comoanv also provides loans to Small and Medium Enterprises.
2. Holding Company
The Company become subsidiary Company of Manappuram Finance Limited, after Manappuram Finance Limited acquired controlling stake in the Company during the Financial Year 2014-15.
3. Significant Accounting Policies 3.1 Statement of Compliance
On 16 February 2015, the Ministry of Corporate Affairs ("MCA") notified the Companies (Indian Accounting Standards) Rules, 2015. The rules specify the Indian Accounting Standards (Ind AS) applicable to certain class of companies and sets out dates of applicability. Asirvad Microfinance Limited, being an Non Banking Financial Company, for which IND AS is applicable from Phase III as defined in the said notification, is required to apply the standards as specified in Companies (Indian Accounting Standards) Rules, 2015.
86 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as "Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from 1 April 2017,
In respect of significant accounting matters, the Company has analyzed the provisions contained in Ind AS and the relevant guidance as per RBI Guidelines and has adopted appropriate accounting treatment while ensuring compliance with RBI Guidelines.
The Company follows the prudential norms for income recognition, asset classification and provisioning as prescribed by the Reserve Bank of India for NBFC-MFI's or more stringent norms.
Upto the year ended 31 March 2018, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the Company's first Ind AS financial statements. The date of transition to Ind AS is 1 April 2017. Previous year figures in the financial statements have been restated to Ind AS. Refer Note 37 for the details of first-time adoption exemptions availed by the Company.
3.2 Basis of Preparation and Presentation of Financial Statements
These financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair values at the end of each reporting period, as explained in accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.
Fair value for measurement and / or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102. 87 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, and 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable input for the asset or liability.
3.3 Standards issued but not effective
Ind AS 116, "Leases" is applicable with effect from 1 April 2019. THis Standard replaces the existing Standard on Leases, Ind AS 17. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for lessees -leases of 'low-value' assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. The Company is in the process of evaluating the leases and its impact on the financial statements.
3.4 Use of Estimates
The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and the acCompanying disclosures, as well as the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
In the process of applying the Company’s accounting policies, management has made judgements, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
88 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 3.5 Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
(a) Interest income on loans given is recognized under the internal rate of return method. Income on Non-performing Assets is recognized only when realized and any interest accrued on such assets is de-recognized by reversing the unrealized interest income already recognized.
(b) Loan processing fee is recognized over the life of the loan on a proportionate basis.
(c) Income from interest strip (excess interest spread) of a securitized portfolio is recognized in the Statement of Profit and Loss net of any losses when realized in cash, in line with the relevant RBI guidelines.
(d) Referral Fee income on marketing of products is recognized on accrual basis when the service is rendered taking into account the number of units sold at the rates applicable according to the terms of the agreement.
(e) Interest income on deposits is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
(f) Dividend income from investments (other than equity shares) is recognized on actual realizations, as stipulated by RBI.
3.6 Leasing
Assets held under finance leases are initially recognized as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case, they are capitalized in accordance with the Company’s general policy on borrowing cost. Contingent rentals are recognized as expenses in the period in which they are incurred.
Rental expense from operating leases is generally recognized on a straight line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor’s 89 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 expected inflationary cost increases, such increases are recognized in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.
3.7 Employee Benefits
Employee benefits include provident fund, employee state insurance scheme, gratuity and compensated absences.
Retirement Benefit Costs and Termination Benefits
Payments to defined contribution retirement benefit plans are recognised asan expense when employees have rendered service entitling them to the contributions.
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in the Statement of profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:
- Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
- Net interest expense or income; and
- Remeasurement
The Company presents the first two components of defined benefit costs in profit or loss in the line item ‘Employee benefits expense’. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans. 90 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.
Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees upto the reporting date.
The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.
Share-based payments
Equity-settled share based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date.
The fair value determined at grant date of the equity-settled share based payments is expensed on a straight line basis over the vesting period, based on the Holding Company’s estimate of equity instruments that will eventually vest, with a corrosponding increase in equity. At the end of each period, the Holding Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, recognized in profit or loss such that the cummulative expense reflected the revised estimate, with a corrosponding adjustment to equity-settled employee benefits reserve.
91 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 3.8 Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
i) Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
ii) Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognized in profit or loss except when they relate to items that are recognized in other comprehensive income or directly in equity, in
92 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively. 3.9 Cash and Cash Equivalents (for purposes of Cash Flow Statement)
Cash and cash equivalent in the balance sheet comprise demand deposits with bank and Cash on hand, short-term deposits with an original maturity of three months or less including lien marked deposits with Banks and others with respect to loans availed by Company. These balances are subject to an insignificant risk of changes in value.
Bank Balances include term deposits held with an original maturity more than 3 months and includes lien marked deposits with Banks and others with respect to loans availed by Company/assets securitised.
3.10 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit / (loss) after extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information 3.11 Property, Plant and Equipment
Furniture and Fixtures, Leasehold Improvements, Office Equipment, Vehicles, Computers and Others are stated at cost less accumulated depreciation and accumulated impairment losses. Costs comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from tax authorities), any attributable expenditure on making the assets ready for intended use.
Depreciation is recognized so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives , using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Assets under finance leases are depreciated over their expected useful lives on the same basis as owned assets. However, when there is no reasonable certainity that ownership will be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term and their useful lives.
93 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 Estimated useful lives of the assets are as follows:
Particulars Years Furniture and Fixtures including AC and Electrical fittings 10 Leasehold Improvements 6 Office Equipment 5 Vehicles 8 Computers and others 6
Depreciable amount for assets is the cost of an asset, less its estimated residual value. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and expected residual value at the end of its life. Depreciation on tangible fixed assets has been provided on the Written Down Value Method as per the useful life prescribed in Schedule II to the Companies Act, 2013.
Depreciation is accelerated on fixed assets, based on their condition, usability etc., as per the estimates of the Management, where necessary. Depreciation methods, useful lives and residual values are reviewed periodically including at each financial year end.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use ofthe asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
For transition to Ind AS, the Company has elected to continue with the carrying value of all of its tangible assets recognised as of 1 April 2017 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
3.12 Investment Property
Investment Properties are properties held to earn rentals and / or for capital appreciation. Investment properties are measured initially at cost, including transactions costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16’s requirement for cost model.
An Investment property is derecognized upon disposal or when the Investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the 94 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.
For transition to Ind AS, the Company has elected to continue with the carrying value of its Investment property recognised as of 1 April 2017 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
3.13 Intangible Assets
Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight line basis over the estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on prospective basis.
Software is depreciated over the license period or 6 years, whichever is lower.
An Intangible assets is derecognised on disposal or when no future economic benefits are expected from use of disposal. Gains or losses arising from derecognition of an intangible assets measured as the difference between the net disposal proceeds and the carrying amount of the asset as recognised in profit or loss when the asset is derecognised.
For transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets recognised as of 1 April 2017 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
3.14 Impairment to Tangible and Intangible Assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and
95 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Profit and Loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
3.15 Provisions and Contingencies
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
96 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
‘Contingent Liability and Assets :
Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.
3.16 Financial Instruments
Financial assets and financial liabilities are recognised when a group entity becomes a party to the contractual provision of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs are directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.
Financial Assets
Initial Recognition
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.
97 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified in four categories:
1. Debt instruments at amortised cost
2. Debt instruments at fair value through other comprehensive income (FVTOCI).
3. Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL).
4. Equity instruments measured at fair value through other comprehensive income FVTOCI.
Financial assets measured at amortised cost
A ‘debt instrument’ is measured at amortised cost if both the following conditions are met:
a) The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows
b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
Financial assets at fair value through profit or loss
A financial asset (other than those stated as amortized cost) is subsequently fair valued through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it arises. Dividend income from these financial assets is included in other income.
Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. 98 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received or receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.
Financial liabilities Initial Measurement
Financial liabilities are classified and measured at amortized cost. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts
Subsequent Measurement
Financial liabilities are subsequently carried at amortized cost using the effective interest method.
Impairment of financial assets
The Company recognises Impairment allowance for expected credit losses (ECL) on Financial Assets held at amortized cost. The Company also computes the provision for non-performing assets (NPA) as per IRAC norms of RBI. The higher of the two is recorded in the books.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e., all cash shortfalls).
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial asset. 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months from the reporting date.
The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as loans and advances and security deposits held at amortised cost are tested for impairment based on evidence or information that is available without undue cost or effort. Lifetime Expected credit losses are assessed and loss
99 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.
The Company applies a three-stage approach to measuring expected credit losses (ECLs) for Loan Receivables. No ECL is recognised on equity investments.
Measurement of ECLs
Expected Credit Loss is computed as follows = Gross EAD * PD* LGD
The Exposure at Default (“EAD”) is an estimate of the exposure (gross carrying amount), at a future default date, taking into account expected changes in the exposure after the reporting date, including repayments.
The Probability of Default (“PD”) is an estimate of the likelihood of default over a given time horizon. A default may only happen at a certain time over the assessed period, if the facility has not been previously derecognised and is still in the portfolio.
The Loss Given Default (“LGD”) is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, including from the realisation of any collateral. It is usually expressed as a percentage of the Exposure at Default
To calculate the ECL, the Company assesses the possible default events of EAD at various Stages. The Company has broadly followed the following approach to compute ECL.
The Advances exposure is broadly classified into 2 pools : MFI loans and SME The EAD is categorised based on respective Past Due status as given below :
Stage 1: 12-months ECL
All exposures where there has not been a significant increase in credit risk since initial recognition or that has low credit risk at the reporting date and that are not credit impaired upon origination are classified under this stage. The Company has assessed that all standard advances and advances upto 30 days default would fall under this category.
For these assets, 12-month ECL are recognized and interest revenue is calculated on the gross carrying amount of the asset (that is, without deduction for credit allowance).
100 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 Stage 2: Lifetime ECL — not credit impaired
Financial instruments that have had a significant increase in credit risk since initial recognition are classified under this stage. 30 Days Past Due upto 90 Days is considered as significant increase in credit risk and classified under this category. For these assets, lifetime ECL are recognized, but interest revenue is still calculated on the gross carrying amount of the asset.
Stage 3: Lifetime ECL — credit impaired
All exposures greater than 90 Days Past due assessed as credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of that asset have occurred are classified in this stage. For exposures that have become credit impaired, a lifetime ECL is recognised. Interest revenue is recognized on actual realization in line with prudential norms.
The Company has established a policy to perform an assessment, at the end of each reporting period, of whether a financial assets credit risk has increased significantly since initial recognition, by considering the change in the risk of defaults occurring over the remaining life of the financial assets. The measurement of ECL reflects:
a) An unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes
b) Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events and current conditions.
Write-off
Loans and debt securities are written off (either partially or in full) when there is no realistic prospect of recovery. This is generally the case when the Company determines that the borrower does not the financial ability to repay the amounts subject to the write-off.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for ECL in respect of Financial assets measured at amortised cost are presented as a deduction from the gross carrying amount of the assets in the statement of financial position.
101 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 3.17 Earnings per Share
Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations.
Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate. 3.18 Goods & Services Tax Input Credit
Goods & Service Tax Input Credit is accounted for in the books in the period when the underlying Goods and service received are accounted and when there is reasonable certainty in availing / utilizing the same.
3.19 Insurance claims
Insurance claims recoverable are accrued for on the basis of claims admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection. Claims pending settlement for more than a year are provided for.
4. Critical Accounting Judgements and Key Sources of Estimation Uncertainity
In the application of the Company’s accounting policies which is described in Note 3, the Management of the Company are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
102 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are included in the following notes:
(i) Useful lives of Property, plant and equipment (Refer Note 3.11)
(ii) Assets and obligations relating to employee benefits (Refer Note 3.7)
(iii) Valuation and measurement of income taxes and deferred taxes (Refer Note 3.8)
(iv) Imoairment of financial assets based on Expected Credit Loss model (Refer Note 3.16) Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
55 CashCash and and cash cash equivalents equivalents As at As at As at Asirvad Microfinance Limited Particulars 31 March 2019 31 March 2018 1 April 2017 Notes forming part of the Financial Statements for the year ended 31 March 2019Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Cash on hand 0.27 36.33 558.44 5 Cash and cash equivalents (b) Balances with Banks - In Current Accounts As at 6,589.75 As at 8,615.57 As at 6,533.54 - In Deposit Accounts -Particulars Not covered Under Lien 31 March 2019 46,000.00 31 March 2018 10,374.35 1 April 2017 3,000.00 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Total 52,590.02 19,026.25 10,091.98 (a) Cash on hand 0.27 36.33 558.44 (b) Balances with Banks 5.1 - OfIn Currentthe above, Accountsthe balances that meet the definition of Cash and cash 6,589.75 52,590.02 19,026.258,615.57 10,091.98 6,533.54 5.1 - OfequivalentsIn Deposit the Accountsas above, per Ind - ASNot 7the covered Cash balancesFlow Under Statements Lien thatis meet the 52,590.02 46,000.00 19,026.25 10,374.35 10,091.98 3,000.00
Total6 definitionBank Balances other of thanCash above and cash equivalents as 52,590.02 19,026.25 10,091.98 As at As at As at per Ind AS 7 CashParticulars Flow Statements is 31 March 2019 31 March 2018 1 April 2017 5.1 Of the above, the balances that meet the definition of Cash and cash Amount Rs.in 52,590.02 Lakhs Amount Rs.in 19,026.25 Lakhs Amount Rs.in 10,091.98 Lakhs equivalents as per Ind AS 7 Cash Flow Statements is Balances with Banks - In Deposit Accounts - Under Lien (Refer Note 6.1 below) 16,224.19 8,570.44 6,824.39 6 6Bank Bank Balances Balances other than above other than above Total 16,224.19 8,570.44 6,824.39 As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 6.1 Deposit accounts under lien comprise of: Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Balances with Banks - DepositsIn Depositamounting Accountsto - UnderRs. 6,591.90 Lien (Referlakhs Note(As at 6.131 below)March 2018: Rs. 5,204.92 lakhs ; As 16,224.19at 1 April 2017 : Rs. 5,993.26 8,570.44lakhs ) have been placed with 6,824.39certain banks for obtaining term loans. Total 16,224.19 8,570.44 6,824.39 Deposits amounting to Rs. 9,632.29 lakhs (As at 31 March 2018 : Rs. 3,240.53 lakhs ; As at 1 April 2017: Rs. 831.13 lakhs) placed as credit enhancement (cash collateral) towards Assets De-recognised on account of securitization. 6.1 Deposit accounts under lien comprise of: 6.17 DepositLoans (at amortised accounts cost) (Refer under Notes below) lien comprise of: Deposits amounting to Rs. 6,591.90 lakhs (As at 31 March 2018: Rs. 5,204.92 lakhs ; As at 1 April 2017 : Rs. 5,993.26 lakhs ) have been placed with certain banks for obtaining term loans. As at As at As at Deposits amounting toParticulars Rs. 6,591.90 lakhs (As at 3131 March March 2019 2018: Rs.31 5,204.92 March 2018 lakhs ; As1 April at 2017 1 April Deposits amounting to Rs. 9,632.29 lakhs (As at 31 March 2018 : Rs. 3,240.53Amountlakhs ; As Rs.inat 1 LakhsApril 2017:AmountRs. 831.13 Rs.inlakhs) LakhsplacedAmountas credit Rs.inenhancement Lakhs 2017:(cash A)collateral) Rs.(i) Secured 5,993.26 towards and Assets considered lakhs De-recognised good ) have on accountbeen of placed securitization. with certain banks for obtaining term loans. 7 LoansLoans (at amortised cost) (Refer Notes below) 203.59 333.74 315.41 Less : Advance EMI's received 0.06 - - DepositsLess : Impairment amounting loss allowance to Rs. 9,632.29 lakhs (As at 31 As at March 87.73 2018: Rs. As at 3,240.53 73.70 lakhs As ; at As 5.77at 1 Sub Total Particulars 31 March 2019 115.80 31 March 2018 260.04 1 April 2017 309.64 April 2017: Rs. 831.13 lakhs) placed as creditAmount enhancement Rs.in Lakhs (cashAmount collateral) Rs.in Lakhs towardsAmount Rs.in Assets Lakhs A) (i)A) Secured (ii) Unsecured and considered and considered good good, unless otherwise stated De-recognisedLoansLoans on account of securitization. 236,529.06 203.59 211,030.54 333.74 172,165.89 315.41 Less :Less Advance : Advance EMI's EMI's received received 295.10 0.06 155.67 - -- Less :Less Impairment : Impairment loss allowanceloss allowance 4,114.46 87.73 7,673.69 73.70 9,664.15 5.77 Sub TotalSub Total 103 232,119.50 115.80 203,201.18 260.04 162,501.74 309.64
Grand Total 232,235.30 203,461.22 162,811.38 A) (ii) Unsecured and considered good, unless otherwise stated Loans 236,529.06 211,030.54 (Amount Rs.in 172,165.89 Lakhs) 7.1Less : Advance EMI's received Particulars As on 31 March 295.10 2019 As on 31 March 155.67 2018 As on 1 April 2017 - Less :The ImpairmentLoan Receivables loss allowancereflected above excludes microfinance loans assigned 4,114.46 7,673.69 9,664.15 to a third party on securitization in accordance with RBI Guidelines as given Sub Total 232,119.50 147,336.83 203,201.18 32,206.82 162,501.74 7,418.39 aforesaid :
Grand Total 232,235.30 203,461.22 (Amount Rs.in162,811.38 Lakhs) 7.2 Particulars As on 31 March 2019 As on 31 March 2018 As on 1 April 2017 (Amount Rs.in Lakhs) Provisions as per RBI Prudential Norms 3,982.58 7,164.27 5,682.99 7.1 Particulars As on 31 March 2019 As on 31 March 2018 As on 1 April 2017 Provisions as per ECL model under Ind AS 109 4,202.19 7,747.39 9,669.92 The LoanAmountReceivables recordedreflected in the booksabove excludes microfinance loans assigned 4,202.19 7,747.39 9,669.92 to a third party on securitization in accordance with RBI Guidelines as given 147,336.83 32,206.82 7,418.39 aforesaid :
(Amount Rs.in Lakhs) 7.2 Particulars As on 31 March 2019 As on 31 March 2018 As on 1 April 2017 Provisions as per RBI Prudential Norms 3,982.58 7,164.27 5,682.99 Provisions as per ECL model under Ind AS 109 4,202.19 7,747.39 9,669.92 Amount recorded in the books 4,202.19 7,747.39 9,669.92 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
5 Cash and cash equivalents
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs
(a) Cash on hand 0.27 36.33 558.44 (b) Balances with Banks - In Current Accounts 6,589.75 8,615.57 6,533.54 - In Deposit Accounts - Not covered Under Lien 46,000.00 10,374.35 3,000.00
Total 52,590.02 19,026.25 10,091.98
5.1 Of the above, the balances that meet the definition of Cash and cash 52,590.02 19,026.25 10,091.98 equivalents as per Ind AS 7 Cash Flow Statements is
6 Bank Balances other than above As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Balances with Banks - In Deposit Accounts - Under Lien (Refer Note 6.1 below) 16,224.19 8,570.44 6,824.39 Total 16,224.19 8,570.44 6,824.39
6.1 Deposit accounts under lien comprise of: th 12 DepositsAnnualamounting Reportto Rs. 2018-196,591.90 lakhs (As at 31 March 2018: Rs. 5,204.92 lakhs ; As at 1 April 2017 : Rs. 5,993.26 lakhs ) have been placed with certain Asirvadbanks Microfinance for obtaining term loans.Limited
NotesDeposits formingamounting part toofRs. the9,632.29 Financiallakhs Statements(As at 31 March for2018 the: Rs.year3,240.53 endedlakhs 31 ;MarchAs at 1 April20192017: Rs. 831.13 lakhs) placed as credit enhancement (cash collateral) towards Assets De-recognised on account of securitization. 77 LoansLoans (at amortised(at amortised cost) (Refer Notes cost) below) (Refer Notes below)
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs A) (i) Secured and considered good Loans 203.59 333.74 315.41 Less : Advance EMI's received 0.06 - - Less : Impairment loss allowance 87.73 73.70 5.77 Sub Total 115.80 260.04 309.64
A) (ii) Unsecured and considered good, unless otherwise stated Loans 236,529.06 211,030.54 172,165.89 Less : Advance EMI's received 295.10 155.67 - Less : Impairment loss allowance 4,114.46 7,673.69 9,664.15 Sub Total 232,119.50 203,201.18 162,501.74
Grand Total 232,235.30 203,461.22 162,811.38
(Amount Rs.in Lakhs) 7.1 Particulars As on 31 March 2019 As on 31 March 2018 As on 1 April 2017 The Loan Receivables reflected above excludes microfinance loans assigned to a third party on securitization in accordance with RBI Guidelines as given 147,336.83 32,206.82 7,418.39 aforesaid :
(Amount Rs.in Lakhs) 7.2 Particulars As on 31 March 2019 As on 31 March 2018 As on 1 April 2017 Provisions as per RBI Prudential Norms 3,982.58 7,164.27 5,682.99 Provisions as per ECL model under Ind AS 109 4,202.19 7,747.39 9,669.92 Amount recorded in the books 4,202.19 7,747.39 9,669.92
Asirvad Microfinance Limited Notes7.3 forming The part Stage of the Financial wise Statements break for ofthe yearLoans ended 31 reflected March 2019 above (Refer Note 7) is given below : 7.3 The Stage wise break of Loans reflected above (Refer Note 7) is given below : Asirvad Microfinance Limited (A) (A) As at As 31 March atNotes 312019 formingMarch part 2019of the Financial Statements for the year ended 31 March 2019 (Amount Rs.in Lakhs) 7.3 The Stage wise break of Loans reflected above (Refer Note 7) is given below : Loan Receivables Stage 1: 0-30 days Stage 2: 31-90 days Stage 3: >90 days Total i. Loans considered as Qualifying(A) As Assets at 31 March 2019 215,343.50 697.78 1,544.23 217,585.51 ii. Loans considered as Non Qualifying Assets 18,906.52 85.58 163.77 19,155.87 (Amount Rs.in Lakhs) Loan Receivables Stage 1: 0-30 days Stage 2: 31-90 days Stage 3: >90 days Total Gross Carrying Amount of Loans 234,250.02 783.36 1,708.00 236,741.38 i. Loans considered as Qualifying Assets 215,343.50 697.78 1,544.23 217,585.51 Less : Impairment loss allowanceii. Loans * considered as Non Qualifying Assets 2,346.78 18,906.52 147.41 1,708.00 85.58 4,202.19 163.77 19,155.87
Net Loans Gross Carrying Amount of Loans 231,903.24 234,250.02 635.95 783.36 - 232,539.19 1,708.00 236,741.38
Less : Impairment loss allowance * (B)(B) As atAs 31 Marchat 31 2018 March 2018 2,346.78 147.41 1,708.00 4,202.19 (Amount Rs.in Lakhs) Net Loans 231,903.24 635.95 - 232,539.19 Loan Receivables Stage 1: 0-30 days Stage 2: 31-90 days Stage 3: >90 days Total i. Loans considered as Qualifying Assets 193,445.31 983.13 5,290.29 199,718.73 (B) As at 31 March 2018 ii. Loans considered as Non Qualifying Assets 11,480.53 45.64 268.58 11,794.75 (Amount Rs.in Lakhs) Gross Carrying Amount of Loans Loan Receivables 204,925.84 Stage 1: 0-30 1,028.77 days Stage 2: 31-905,558.87 days 211,513.48 Stage 3: >90 days Total i. Loans considered as Qualifying Assets 193,445.31 983.13 5,290.29 199,718.73 Less : Impairment loss allowance * ii. Loans considered as Non Qualifying Assets 2,060.39 11,480.53 128.13 5,558.87 45.64 7,747.39 268.58 11,794.75 Net Loans 202,865.45 900.64 - 203,766.09 Gross Carrying Amount of Loans 204,925.84 1,028.77 5,558.87 211,513.48 (C)(C) As at As 01 April at 201701 AprilLess : Impairment 2017 loss allowance * 2,060.39 128.13 5,558.87 7,747.39 (Amount Rs.in Lakhs) NetLoan Loans Receivables Stage 1: 0-30 days Stage 2: 31-90 202,865.45 days Stage 3: >90 days 900.64 Total - 203,766.09 i. Loans considered as Qualifying Assets 150,529.74 6,913.71 7,008.04 164,451.49 ii. Loans considered as Non(C) Qualifying As at 01Assets April 2017 7,249.69 235.92 238.37 7,723.98 (Amount Rs.in Lakhs) Gross Carrying Amount of Loans 157,779.43 7,149.63 7,246.41 172,175.47 Loan Receivables Stage 1: 0-30 days Stage 2: 31-90 days Stage 3: >90 days Total Less : Impairment loss allowancei. Loans * considered as Qualifying Assets 1,575.96 150,529.74 847.55 7,246.41 6,913.71 9,669.92 7,008.04 164,451.49 ii. Loans considered as Non Qualifying Assets 7,249.69 235.92 238.37 7,723.98 Net Loans 156,203.47 6,302.08 - 162,505.55 Gross Carrying Amount of Loans 157,779.43 7,149.63 7,246.41 172,175.47 *The impairment loss allowance includes Contingent Provision against Standard Assets (Non Qualifying assets) of Rs. 194.57 Lakhs as at 31 March 2019 (As at *The impairment lossLess allowance : Impairment includes loss allowance Contingent * Provision against Standard Assets (Non 1,575.96 Qualifying assets) of Rs. 847.55 194.57 Lakhs as at 7,246.41 9,669.92 31 March 18 : Rs. 126.97 Lakhs ; As at 1 April 2017 is Rs. 73 Lakhs) 31 March 2019 (As atNet 31 LoansMarch 18 : Rs. 126.97 Lakhs ; As at 1 April 2017 is Rs. 73 Lakhs) 156,203.47 6,302.08 - 162,505.55 7.4 Reconciliation of impairment allowance on Loans
*TheParticularsimpairment loss allowance includes ContingentAmountProvision Rs.inagainst LakhsStandard Assets (Non Qualifying assets) of Rs. 194.57 Lakhs as at 31 March 2019 (As at Impairment allowance as31 at March 1 April 18 2017: Rs. 126.97 Lakhs ; As at 1 April 2017 is Rs. 73 Lakhs) 9,669.92 7.4 Add: Reconciliation Impairment allowance provided of in statementimpairment of Profit & Loss allowance 12,427.67on Loans Less: Impairment allowance7.4 Reconciliation Utilised for writing of impairmentoff Loss assets allowance on Loans 14,350.20
Impairment allowance as at 31 March 2018 Particulars 7,747.39 Amount Rs.in Lakhs Add: Impairment allowanceImpairment provided in statement allowance of Profitas at & 1 Loss April 2017 1,977.89 9,669.92 Less: Impairment allowanceAdd: Utilised Impairment for writing allowance off Loss assetsprovided in statement of Profit & Loss 5,523.09 12,427.67 Less: Impairment allowance Utilised for writing off Loss assets 14,350.20 Impairment allowance as at 31 March 2019 4,202.19
7.5 As per RBI guidelines onImpairmentSecuritisation allowanceDNBR. PD. as at008/03.10.119/2016-17 31 March 2018 dated September 01, 2016 updated 7,747.39on April 16, 2019 the details of securitisation are givenAdd: below: Impairment allowance provided in statement of Profit & Loss 1,977.89 Less: Impairment allowance Utilised for writing off Loss assets 5,523.09 31 March 2019 31 March 2018 1 April 2017 ImpairmentParticulars allowance as at 31 March 2019 Numbers/Amount 4,202.19 Numbers/Amount (Rs.) Numbers/Amount (Rs.) (Rs.) (i) No of SPVs sponsored by the NBFC for securitisation transactions 7.5 As per RBI guidelines on Securitisation DNBR. PD. 008/03.10.119/2016-17 dated September 01, 2016 updated on April 16, 2019 the details a.Through Direct assignment 4 1 1 of securitisation are given below: b.Through PTC 14 8 4 Total 104 18 31 March 2019 9 5 31 March 2018 1 April 2017 Particulars Numbers/Amount (ii) Total amount of securitised assets as per books of the SPVs Sponsored Numbers/Amount (Rs.) Numbers/Amount (Rs.) (Rs.) (Amount Rs.in Lakhs) (i) No of SPVs sponsored by the NBFC for securitisation transactions a.Through Direct assignment a.Through Direct assignment 28,733.88 137.42 4 681.68 1 1 b.Through Pass through Ceritificates b.Through PTC 118,101.63 31,850.12 14 6,736.71 8 4 Total Total 146,835.51 31,987.54 18 7,418.39 9 5
(iii) Total amount of exposures(ii) Totalretained amount by the of NBFCsecuritised to comply assets with as MRR per books of the SPVs Sponsored as on the date of Balance sheet(Amount Rs.in Lakhs) a.Through Direct assignment 28,733.88 137.42 681.68 a) Off-balance sheet exposures b.Through Pass through Ceritificates 118,101.63 31,850.12 6,736.71 - First loss - - - Total 146,835.51 31,987.54 7,418.39 - Others - - - b)On-balance sheet exposures(iii) Total (Amount amount Rs.inof exposures Lakhs) retained by the NBFC to comply with MRR - First loss as on the date of Balance sheet a. Direct Assignment - - - b. Pass through Ceritificatesa) Off-balance sheet exposures - - - Others (Minimum Retention requirement("MRR"))- First loss 17,841.73 5,164.00 - - - - - Others - - - (iv) Amount of exposures to securitisation transactions Other than MRR b)On-balance sheet exposures (Amount Rs.in Lakhs) a) Off-balance sheet exposures - First loss i)Exposure to own securitizations (Amount Rs.in Lakhs) a. Direct Assignment - - - - First loss - 584.97 - b. Pass through Ceritificates - - a. Direct Assignment - - - b. Pass through Ceritificates- Others (Minimum Retention requirement("MRR")) - 17,841.73 584.97 5,164.00 - - - Others - - - (iv) Amount of exposures to securitisation transactions Other than MRR ii)Exposure to third party securitisations a) Off-balance sheet exposures - First loss - - - i)Exposure to own securitizations (Amount Rs.in Lakhs) - Others - - - - b) On-balance sheet exposures- First (Amount loss Rs.in Lakhs) 584.97 - - i)Exposure to own securitisations a. Direct Assignment - - - - First loss b. Pass through Ceritificates 584.97 - a. Direct Assignment - Others ------b. Pass through Ceritificatesii)Exposure to third party securitisations 9,632.29 3,240.53 831.13 - Others - First loss ------ii) Exposure to third party securitisations- Others - - - First loss b) On-balance sheet exposures (Amount Rs.in Lakhs) - - - Others i)Exposure to own securitisations - - - - First loss a. Direct Assignment - - - b. Pass through Ceritificates 9,632.29 3,240.53 831.13 - Others - - - ii) Exposure to third party securitisations First loss - - - Others - - - Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 7.3 The Stage wise break of Loans reflected above (Refer Note 7) is given below :
(A) As at 31 March 2019 (Amount Rs.in Lakhs) Loan Receivables Stage 1: 0-30 days Stage 2: 31-90 days Stage 3: >90 days Total i. Loans considered as Qualifying Assets 215,343.50 697.78 1,544.23 217,585.51 ii. Loans considered as Non Qualifying Assets 18,906.52 85.58 163.77 19,155.87
Gross Carrying Amount of Loans 234,250.02 783.36 1,708.00 236,741.38
Less : Impairment loss allowance * 2,346.78 147.41 1,708.00 4,202.19
Net Loans 231,903.24 635.95 - 232,539.19
(B) As at 31 March 2018 (Amount Rs.in Lakhs) Loan Receivables Stage 1: 0-30 days Stage 2: 31-90 days Stage 3: >90 days Total i. Loans considered as Qualifying Assets 193,445.31 983.13 5,290.29 199,718.73 ii. Loans considered as Non Qualifying Assets 11,480.53 45.64 268.58 11,794.75
Gross Carrying Amount of Loans 204,925.84 1,028.77 5,558.87 211,513.48
Less : Impairment loss allowance * 2,060.39 128.13 5,558.87 7,747.39
Net Loans 202,865.45 900.64 - 203,766.09
(C) As at 01 April 2017 (Amount Rs.in Lakhs) Loan Receivables Stage 1: 0-30 days Stage 2: 31-90 days Stage 3: >90 days Total i. Loans considered as Qualifying Assets 150,529.74 6,913.71 7,008.04 164,451.49 ii. Loans considered as Non Qualifying Assets 7,249.69 235.92 238.37 7,723.98
Gross Carrying Amount of Loans 157,779.43 7,149.63 7,246.41 172,175.47
Less : Impairment loss allowance * 1,575.96 847.55 7,246.41 9,669.92
Net Loans 156,203.47 6,302.08 - 162,505.55
*The impairment loss allowance includes Contingent Provision against Standard Assets (Non Qualifying assets) of Rs. 194.57 Lakhs as at 31 March 2019 (As at 31 March 18 : Rs. 126.97 Lakhs ; As at 1 April 2017 is Rs. 73 Lakhs)
7.4 Reconciliation of impairment allowance on Loans
Particulars Amount Rs.in Lakhs Impairment allowance as at 1 April 2017 9,669.92 th Add: Impairment allowance provided in statement of Profit & Loss 12,427.67 12 Annual Report 2018-19 Asirvad Less:Microfinance Impairment allowance Limited Utilised for writing off Loss assets 14,350.20 Impairment allowance as at 31 March 2018 7,747.39 Notes formingAdd: Impairment part allowanceof the providedFinancial in statement Statements of Profit & Loss for the year end ed 1,977.89 31 March 2019 Less: Impairment allowance Utilised for writing off Loss assets 5,523.09 7.5 As perImpairment RBI allowance guidelines as at 31 March on 2019 Securitisation DNBR. 4,202.19 PD. 008/03.10.119/2016-17 dated September 7.5 As per RBI guidelines on Securitisation DNBR. PD. 008/03.10.119/2016-17 dated September 01, 2016 updated on April 16, 2019 the details 01, of2016 securitisation updated are given below:on April 16, 2019 the details of securitisation are given below: 31 March 2019 31 March 2018 1 April 2017 Particulars Numbers/Amount Numbers/Amount (Rs.) Numbers/Amount (Rs.) (Rs.) (i) No of SPVs sponsored by the NBFC for securitisation transactions a.Through Direct assignment 4 1 1 b.Through PTC 14 8 4 Total 18 9 5
(ii) Total amount of securitised assets as per books of the SPVs Sponsored (Amount Rs.in Lakhs) a.Through Direct assignment 28,733.88 137.42 681.68 b.Through Pass through Ceritificates 118,101.63 31,850.12 6,736.71 Total 146,835.51 31,987.54 7,418.39
(iii) Total amount of exposures retained by the NBFC to comply with MRR as on the date of Balance sheet a) Off-balance sheet exposures - First loss - - - - Others - - - b)On-balance sheet exposures (Amount Rs.in Lakhs) - First loss a. Direct Assignment - - - b. Pass through Ceritificates - - - Others (Minimum Retention requirement("MRR")) 17,841.73 5,164.00 -
(iv) Amount of exposures to securitisation transactions Other than MRR a) Off-balance sheet exposures i)Exposure to own securitizations (Amount Rs.in Lakhs) - First loss - 584.97 - a. Direct Assignment - - - b. Pass through Ceritificates - 584.97 - - Others - - - ii)Exposure to third party securitisations - First loss - - - - Others - - - b) On-balance sheet exposures (Amount Rs.in Lakhs) i)Exposure to own securitisations - First loss a. Direct Assignment - - - b. Pass through Ceritificates 9,632.29 3,240.53 831.13 - Others - - - ii) Exposure to third party securitisations First loss - - - Others - - - Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
7.67.6 Details Details of Financial of AssetsFinancial sold to Securitisation Assets Company sold to Securitisation Company
For the Year ended For the Year ended For the Year ended Particulars 31 March 2019 31 March 2018 31 March 2017 Total number of loan assets securitized during the year 1,065,278.00 370,839.00 125,860.00 a.Through Direct assignment 253,895.00 - - b.Through PTC 811,383.00 370,839.00 125,860.00 Book value of loan assets securitized during the year (Amount 199,637.90 54,895.62 17,177.79 Rs.in Lakhs) a.Through Direct assignment 43,336.00 - - b.Through PTC 156,301.90 54,895.62 17,177.79 Sale consideration received during the year (Amount Rs.in Lakhs) 180,282.56 49,731.61 16,733.03 a.Through Direct assignment 39,002.40 - - b.Through PTC 141,280.16 49,731.61 16,733.03 MFI Loans Subordinated as Credit Enhancement on Assets 19,355.34 5,164.01 444.76 Derecognised (Amount Rs.in Lakhs) a.Through Direct assignment 4,333.60 - - b.Through PTC 15,021.74 5,164.01 444.76 Gain / (loss) on the securitization transaction recognised in P&L - - 10.69 a.Through Direct assignment - - 10.69 b.Through PTC - - Gain / (loss) on the securitization transactions deferred - - - a.Through Direct assignment - - - b.Through PTC - - Quantum of Credit Enhancement provided on the transactions in 9,632.29 3,240.53 831.13 the form of deposits (Amount Rs.in Lakhs) a.Through Direct assignment - - - b.Through PTC 9,632.29 3,240.53 831.13 Quantum of Credit Enhancement as at year end (Amount Rs.in 9,632.29 3,240.53 631.02 Lakhs) a.Through Direct assignment - - - b.Through PTC 9,632.29 3,240.53 631.02 Interest spread Recognised in the Statement of Profit and Loss 6,702.23 2,215.69 1,587.62 during the Year (Amount Rs.in Lakhs) a.Through Direct assignment 1,477.80 147.12 - b.Through PTC 5,224.43 2,068.57 1,587.62 88 InvestmentsInvestments As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Investments at Fair Value through other comprehensive income (i) Equity instruments in India 5.00 5.00 5.00
Gross Total 5.00 5.00 5.00
Less : Allowance for impairment loss - - - Total 5.00 5.00 5.00
105 12th Annual Report 2018-19 Asirvad Microfinance Limited Asirvad Microfinance Limited NotesNotes forming forming part part of the of Financial the Financial Statements Statements for the year for ended the year 31 March end ed2019 31 March 2019
Other financial assets (At amortised cost) 99 OtherOther financial financial assets (At amortisedassets cost)(At amortised cost) As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Security deposits 428.65 325.18 330.40 (b) Interest accrued on deposits with banks and others 706.22 605.72 501.04 15.00 15.00 15.00 (c) Deposit under Pradhan Mantri Garib Kalyan Yojna (PMGKY) (d) Receivable from Securitised assets 1,681.04 590.99 - (e) Others 498.04 637.87 326.15
Total 3,328.95 2,174.76 1,172.59
10 10 Current Tax Assets Tax (Net) Assets (Net)
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Advance Income Tax (Net of Provisions for taxation of 1,466.86 817.43 - Rs. 10,413.09 Lakhs as at 31 March 2019 ; Rs.5,702.09 Lakhs as at 31 March 2018 and Rs. 5,702.09 Lakhs As at 1 April 2017)
Total 1,466.86 817.43 -
11 Deferred Tax Assets Tax (Net) Assets (Net)
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs
Deferred Tax Assets (Net) (Refer Note 11.1) 2,261.20 4,444.65 3,936.73 Total 2,261.20 4,444.65 3,936.73
Asirvad Microfinance Limited Notes11.1 forming Current part of the FinancialTax and Statements Deferred for the year Tax ended 31 March 2019 Asirvad Microfinance Limited 11.1NotesCurrent forming Tax part and of Deferredthe Financial Tax Statements for the year ended 31 March 2019
11.1 Current(i) Income Income Tax Tax and Expense Deferred Tax Expense Tax Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 (i) Income Tax Expense For the Year ended For the Year ended 11.1 Current Tax and Deferred Tax Particulars 31 March 2019 31 March 2018 For the Year ended For the Year ended Amount Rs.in Lakhs Amount Rs.in Lakhs Particulars 31 March 2019 31 March 2018 (a)(i) IncomeCurrent tax Tax in Expense respect of current year 4,711.00 - Amount Rs.in Lakhs Amount Rs.in Lakhs (b)(a) CurrentDeferred tax tax in relating respect to of origination current year and reversal of temporary differences For the Year 2,171.994,711.00 ended For the Year (519.64) ended - Particulars 31 March 2019 31 March 2018 (b)Total Deferred Tax Expense tax relating recognised to origination in statement and reversal of profitof temporary and loss differences 6,882.99 2,171.99 (519.64) (519.64) Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Current tax in respect of current year Total Tax Expense recognised in statement of profit and loss 6,882.99 4,711.00 (519.64) - (ii) Reconciliation of tax expense and the accounting profit multiplied by India's domestic tax rate: (ii)(b) Deferred Reconciliation tax relating to origination of andtax reversal expense of temporary and differences the accounting profit 2,171.99 multiplied (519.64) by India's domestic (ii) Reconciliation of tax expense and the accounting profit multiplied by India's domestic tax rate: Total taxTax Expense rate: recognised in statement of profit and loss For the Year 6,882.99 Ended For the Year (519.64) Ended Particulars 31 March 2019 31 March 2018 For the Year Ended For the Year Ended Amount Rs.in Lakhs Amount Rs.in Lakhs 31 March 2019 31 March 2018 Profit(ii) Reconciliation Before tax from of Operations tax expenseParticulars and the accounting profit multiplied by India's domestic 20,141.36 tax rate: (1,448.14) Amount Rs.in Lakhs Amount Rs.in Lakhs ProfitIncome Before Tax using tax from the Company'sOperations domestic Tax rate # For the Year 20,141.36 7,038.20 Ended For the Year (1,448.14) Ended - Particulars 31 March 2019 31 March 2018 EffectIncome of Tax Income using Exempt the Company's from Tax domestic Tax rate # 7,038.20 177.39 - Amount Rs.in Lakhs Amount Rs.in Lakhs Effect of other permanent differences (33.53) - EffectProfit Beforeofon Incomeutilisation tax fromExempt of accumulatedOperations from Tax losses during the year 20,141.36 (299.07)177.39 (1,448.14) - Effect of other permanent differences (33.53) - EffectIncome on Tax Taxutilisation using recognised the of Company'saccumulated in the domesticStatement losses during Tax of rate Profitthe # year & Loss 6,882.99 7,038.20 (299.07) --
Effect of Income Exempt from Tax 177.39 - #IncomeThe tax Taxrate recognisedused for thein the2018-2019 Statementand of2017-2018 Profit & Lossreconciliations above comprises Corporate 6,882.99tax rate of 30%, applicable - surcharge and cess, payable by Effect of other permanent differences (33.53) - corporateEffect on utilisation entities in of India accumulated on taxable losses profits during under the the year India Law. (299.07) - ## TheThe tax rate usedusedfor forthe the2018-2019 2018-2019and and2017-2018 2017-2018reconciliations reconciliationsabove comprisesabove comprisesCorporate Corporatetax rate of 30%, tax rateapplicable of 30%,surcharge applicableand cess,surchargepayable andby corporate(iii) Income entities Tax inon India Other on Comprehensivetaxable profits under Income the India Law. cess,Income payable Tax recognised by corporate in the entities Statement in Indiaof Profit on & taxable Loss profits under the India Law. 6,882.99 - (iii) Income Tax on Other Comprehensive Income # The tax rate used for the 2018-2019 and 2017-2018 reconciliations above comprisesFor theCorporate year endedtax rate For of 30%, the year applicable ended surcharge and cess, payable by corporate entities in India on taxable Particularsprofits under the India Law. 31 March 2019 31 March 2018 AmountFor the yearRs.in ended Lakhs AmountFor the year Rs.in ended Lakhs (iii) Income Tax on Other Comprehensive Income31 March 2019 31 March 2018 (iii)Deferred Income Tax Tax on Other ComprehensiveParticulars Income Remeasurement of defined benefit obligation Amount Rs.in (11.46)Lakhs Amount Rs.in (11.72) Lakhs Deferred Tax For the year ended For the year ended RemeasurementTotal of defined benefit obligationParticulars 31 March 2019 (11.46) (11.46) 31 March 2018 (11.72) (11.72) Amount Rs.in Lakhs Amount Rs.in Lakhs (iv)Total Following is the analysis of the deferred tax asset/(liabilities) presented in the Balance (11.46) sheet. (11.72) Deferred Tax (Amount Rs. in Lakhs) Remeasurement of defined benefit obligation (11.46) (11.72) (iv) Following is the analysis of the deferred tax asset/(liabilities) presented in the Balance sheet.For the Year Ended 31 March 2019 (Amount Rs. in Lakhs) Charge/(Credit) recognised in Total (11.46) (11.72) Closing Particulars Opening BalanceFor theRecognised Year Ended in profit 31 March Recognised 2019 in Balance Charge/(Credit) recognised in (iv) Following is the analysis of the deferred tax asset/(liabilities) presented in the Balance sheet. and Loss OCI Closing Particulars Opening Balance Recognised in profit Recognised in Tax effect of items constituting deferred tax assets/deferred Tax liability : (Amount Rs. Balancein Lakhs) For the Yearand Ended Loss 31 March 2019OCI Property,Tax effect Plant of items and Equipment constituting deferred tax assets/deferred Tax liability : 199.11 (61.70) - 260.81 Charge/(Credit) recognised in Carried forward losses 1,143.46 1,143.46 - Closing - Particulars Opening Balance Recognised in profit Recognised in Property,Provision forPlant Employee and Equipment Benefits 106 199.11241.12 (61.70) (57.10) 11.46 - Balance 260.81286.76 CarriedProvision forward for Loan losses Receivables 1,143.462,664.75 and Loss 1,143.461,323.37 OCI - 1,341.38 - ProvisionTax effect for of EmployeeFraud items Insurance constituting Benefits Claim deferredReceivable tax assets/deferred Tax liability : 241.12 22.57 (101.66) (57.10) 11.46 - 286.76124.23 ProvisionEffective Interestfor Loan Rate Receivables on Borrowings 2,664.75 87.35 1,323.37 (33.51) - 1,341.38 120.86 ProvisionPresentProperty, Value forPlant Fraud Discounting and InsuranceEquipment of Security Claim Receivable Deposit and Documentation Fee 199.11 22.5786.29 (101.66) (61.70) (40.87) - 124.23127.16260.81 EffectiveCarried forward Interest losses Rate on Borrowings 1,143.46 87.35 1,143.46 (33.51) - 120.86 - PresentProvisionTotal Value for Employee Discounting Benefits of Security Deposit and Documentation Fee 4,444.65 241.12 86.29 2,171.99 (40.87) (57.10) 11.46 11.46 - 2,261.20 127.16286.76 Provision for Loan Receivables 2,664.75 1,323.37 - 1,341.38 Provision for Fraud Insurance Claim Receivable 22.57 (101.66) - 124.23 Total 4,444.65 2,171.99 (Amount 11.46 Rs. 2,261.20in Lakhs) Effective Interest Rate on Borrowings 87.35 (33.51) - 120.86 For the Year Ended 31 March 2018 Present Value Discounting of Security Deposit and Documentation Fee 86.29 (40.87) - 127.16 Charge/(Credit) recognised(Amount in Rs. in Lakhs) Closing Particulars Opening BalanceFor theRecognised Year Ended in profit 31 March Recognised 2018 in Total 4,444.65 2,171.99 11.46 2,261.20Balance Charge/(Credit) recognised in and Loss OCI Closing Tax effect of items constituting deferredParticulars tax assets/deferred Tax liability : Opening Balance Recognised in profit Recognised in Balance and Loss (AmountOCI Rs. in Lakhs) Property,Tax effect Plant of items and Equipment constituting deferred tax assets/deferred Tax liability : 112.64 For the Year Ended (86.47) 31 March 2018 - 199.11 Charge/(Credit) recognised in Carried forward losses - (1,143.46) - Closing 1,143.46 Particulars Opening Balance Recognised in profit Recognised in Property,Interest on Plant Borrowings and Equipment 112.64 57.32 (86.47) 57.32 - Balance 199.11 - CarriedProvision forward for Employee losses Benefits 206.13 - and Loss (1,143.46) (46.71) OCI (11.72) - 1,143.46 241.12 InterestProvisionTax effect on for Borrowingsof Loan items Receivables constituting deferred tax assets/deferred Tax liability : 3,319.81 57.32 655.06 57.32 - 2,664.75 - Provision for EmployeeFraud Insurance Benefits Claim Receivable 206.13 - (46.71) (22.57) (11.72) - 241.12 22.57 ProvisionEffectiveProperty, Interest forPlant Loan and Rate Receivables Equipment on Borrowings 3,319.81 110.38112.64 655.06(86.47) 23.03 - 2,664.75 199.11 87.35 ProvisionPresentCarried forwardValue for Fraud Discounting losses Insurance of Security Claim Receivable Deposit and Documentation Fee 130.45 - (1,143.46) (22.57) 44.16 - 1,143.46 22.5786.29 EffectiveInterest onInterest Borrowings Rate on Borrowings 110.38 57.32 23.0357.32 - 87.35 - PresentProvisionTotal Value for Employee Discounting Benefits of Security Deposit and Documentation Fee 3,936.73 130.45206.13 (519.64) (46.71) 44.16 (11.72) (11.72) - 4,444.65 241.12 86.29 Provision for Loan Receivables 3,319.81 655.06 - 2,664.75 ProvisionTotal for Fraud Insurance Claim Receivable 3,936.73 - (519.64) (22.57) (11.72) - 4,444.65 22.57 Effective Interest Rate on Borrowings 110.38 23.03 - 87.35 Present Value Discounting of Security Deposit and Documentation Fee 130.45 44.16 - 86.29
Total 3,936.73 (519.64) (11.72) 4,444.65 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
11.1 Current Tax and Deferred Tax
(i) Income Tax Expense
For the Year ended For the Year ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Current tax in respect of current year 4,711.00 -
(b) Deferred tax relating to origination and reversal of temporary differences 2,171.99 (519.64)
Total Tax Expense recognised in statement of profit and loss 6,882.99 (519.64)
(ii) Reconciliation of tax expense and the accounting profit multiplied by India's domestic tax rate:
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs Profit Before tax from Operations 20,141.36 (1,448.14)
Income Tax using the Company's domestic Tax rate # 7,038.20 -
Effect of Income Exempt from Tax 177.39 - Effect of other permanent differences (33.53) - Effect on utilisation of accumulated losses during the year (299.07) -
Income Tax recognised in the Statement of Profit & Loss 6,882.99 -
# The tax rate used for the 2018-2019 and 2017-2018 reconciliations above comprises Corporate tax rate of 30%, applicable surcharge and cess, payable by corporate entities in India on taxable profits under the India Law. (iii) Income Tax on Other Comprehensive Income 12th Annual Report 2018-19 Asirvad Microfinance Limited For the year ended For the year ended Particulars 31 March 2019 31 March 2018 Notes forming part of the Financial Statements for the year endedAmount 31 March Rs.in 2019 Lakhs Amount Rs.in Lakhs Deferred Tax Remeasurement of defined benefit obligation (11.46) (11.72)
(iv)Total Following is the analysis of the deferred tax asset/(liabilities) (11.46) presented (11.72) in the Balance
(iv) Followingsheet. is the analysis of the deferred tax asset/(liabilities) presented in the Balance sheet. (Amount Rs. in Lakhs) For the Year Ended 31 March 2019 Charge/(Credit) recognised in Closing Particulars Opening Balance Recognised in profit Recognised in Balance and Loss OCI Tax effect of items constituting deferred tax assets/deferred Tax liability :
Property, Plant and Equipment 199.11 (61.70) - 260.81 Carried forward losses 1,143.46 1,143.46 - - Provision for Employee Benefits 241.12 (57.10) 11.46 286.76 Provision for Loan Receivables 2,664.75 1,323.37 - 1,341.38 Provision for Fraud Insurance Claim Receivable 22.57 (101.66) - 124.23 Effective Interest Rate on Borrowings 87.35 (33.51) - 120.86 Present Value Discounting of Security Deposit and Documentation Fee 86.29 (40.87) - 127.16
Total 4,444.65 2,171.99 11.46 2,261.20
(Amount Rs. in Lakhs) For the Year Ended 31 March 2018 Charge/(Credit) recognised in Closing Particulars Opening Balance Recognised in profit Recognised in Balance and Loss OCI Tax effect of items constituting deferred tax assets/deferred Tax liability :
Property, Plant and Equipment 112.64 (86.47) - 199.11 Carried forward losses - (1,143.46) - 1,143.46 Interest on Borrowings 57.32 57.32 - - Provision for Employee Benefits 206.13 (46.71) (11.72) 241.12 Provision for Loan Receivables 3,319.81 655.06 - 2,664.75 Provision for Fraud Insurance Claim Receivable - (22.57) - 22.57 Effective Interest Rate on Borrowings 110.38 23.03 - 87.35 Present Value Discounting of Security Deposit and Documentation Fee 130.45 44.16 - 86.29
Total 3,936.73 (519.64) (11.72) 4,444.65
107 12th Annual Report 2018-19 - -
0.20 7.01 7.01
83.13 51.67 17.94 33.10 40.24 84.93
73.34
316.45 159.49 118.38 101.40 111.36 135.61
628.88 702.22 551.68 558.69 1 April 2017 1 April Balance as at Balance Balance as at Balance 31 March 2018 31 March
Amount Lakhs Rs.in Amount Lakhs Rs.in -
0.02 5.95 0.20
Net Block Net Block 79.21 74.82 26.44 18.70 21.23 83.13 51.67 17.94 33.10 40.24
21.23 73.34
316.45 159.49
205.14 226.37 628.88 702.22
Balance as at Balance Balance as at Balance 31 March 2018 31 March 31 March 2019 31 March
- - 0.95 0.77
62.90 12.46 79.35 80.21 62.79 35.09 22.31
22.31 714.92 141.32 110.53 108.22 348.19
108.22 606.40 628.71
1,043.08 1,151.30
As at Balance as at Balance 31 March 2018 31 March 31 March 2019 31 March
------
- - - -
3.17 1.04 0.17 1.33
5.71 5.71
Adjustments Adjustments Depreciation Depreciation Depreciation Depreciation
------
-
0.62 0.08 0.04 1.52
0.04 1.52 1.52
13.47 51.70
65.87 65.91
Assets Assets Disposal of Disposal of Eliminated on Eliminated Eliminated on Eliminated
- - 0.18 0.11 0.77
62.05 43.79 29.07 85.95 80.39 80.38 64.31 36.42 22.31
85.95 22.31
367.35 351.36
502.55 588.50 613.63 635.94
Accumulated Depreciation and Amortisation and Depreciation Accumulated Amortisation and Depreciation Accumulated For the year the For year the For year
------
0.77
79.35 80.21 62.79 35.09 22.31
22.31
348.19
606.40 628.71
1 April 2018 1 April 2017 1 April Balance as at Balance as at Balance
-
0.97 0.97 81.60 18.41 80.73 55.41 40.24
95.65 794.13 216.14 136.97 129.45 664.64 162.48 131.88 194.58
129.45
1,248.22 1,377.67 1,235.28 1,330.93
Balance as at Balance as at Balance 31 March 2019 31 March 2018 31 March
- - - - 0.81 0.09 0.04 1.49 0.16 0.45
13.95 40.24 30.63 45.32 47.78
40.28 78.05 47.78
176.17
191.02 231.30 125.83 Disposals Disposals
- - - - 0.87 0.97
Gross Block Gross Block 53.75 19.04 74.08 61.24 47.40 48.40 88.02
74.08
130.30 547.75 104.29
203.96 278.04 761.65 136.42 898.07
Additions Additions
- -
0.97 7.01
7.01 80.73 55.41 40.24 84.93 95.65
664.64 162.48 131.88 194.58 118.38 101.40 111.36 135.61
551.68 558.69
1,235.28 1,330.93
1 April 2018 1 April 2017 1 April Balance as at Balance as at Balance
Description Description Property, plant and equipment and plant Property, TotalGrand equipment and plant Property, TotalGrand Computers Furnitures & Fixtures Improvements Leasehold Equipments Office Vehicles Owned - Lease Finance Taken under - Softwares CWIP- Software Computers Furnitures & Fixtures Improvements Leasehold Equipments Office Vehicles Owned - Lease Finance Taken under - Softwares CWIP- Software Intangible assets Intangible assets Intangible 1 2 3 4 5 1 2 1 2 3 4 5 1 2 S.No. S.No. 12 (a) 12 (b) 12 (a) 12 (b) Asirvad Microfinance Limited Microfinance Asirvad Statements2019 31 March of the ended theNotes part for Financial year forming
12 Current Year A. year Previous B. Asirvad Microfinance Limited Notes forming part of the Financial Statements for year ended 31 March 2019 108 12th Annual Report 2018-19 Asirvad Microfinance Limited NotesAsirvad forming Microfinance part ofLimited the Financial Statements for the year ended 31 March 2019 Notes forming part of the Financial Statements for the year ended 31 March 2019
13.13 OtherOther non non financial financial assets assets As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs
(a) Deferred Lease rental 8.77 12.35 25.27 (b) Goods & service tax credit (input) receivable 5.50 4.14 7.50 (c) Prepaid expenses 287.82 99.50 - (d) Capital Advances - 9.09 60.89 (e) Advance to Suppliers 8.76 35.31 14.48 Asirvad Microfinance Limited 310.85 160.39 108.14 NotesAsirvad forming Microfinance part of Limited the Financial Statements for the year ended 31 March 2019 Notes forming part of the Financial Statements for the year ended 31 March 2019 14 Other Trade Payables 14.14 OtherOther Trade Payables Payables As at As at As at As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 31 March 2019 31 March 2018 1 April 2017 Particulars Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Total outstanding dues of micro - - - (a)enterprisesTotal outstandingand smalldues enterprisesof micro - - - enterprises(Refer Note 38)and small enterprises (Refer Note 38) (b) Total outstanding dues of creditors other 1,656.06 1,035.90 835.11 Asirvad Microfinance(b) Total Limited outstanding dues of creditors other 1,656.06 1,035.90 835.11 Notes forming thanpart of micro the Financial enterprises Statements and small for the year ended 31 March 2019 enterprisesthan micro enterprises and small 14 Other Trade Payables enterprises Total 1,656.06 1,035.90 835.11 Total As at As 1,656.06 at As at 1,035.90 835.11 Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs 15(a) TotalDebtoutstanding securitiesdues (Atof Amortisedmicro Cost) - - - 15.15enterprises DebtDebt securitiessecuritiesand small (At (Atenterprises Amortised Amortised Cost) Cost) (Refer Note 38) As at As at As at (b) Total outstanding dues of creditors other 1,656.06 As at 1,035.90 As 835.11 at As at than micro enterprises and smallParticulars 31 March 2019 31 March 2018 1 April 2017 enterprises Particulars 31 March 2019 31 March 2018 1 April 2017 Total 1,656.06Amount Rs.in 1,035.90 Lakhs Amount 835.11 Rs.in Lakhs Amount Rs.in Lakhs (a) Redeemable Non-convertible Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Debentures(a) Redeemable Non-convertible 15 Debt securitiesDebentures- Secured (At Amortised Cost) 32,331.47 43,256.27 34,894.20 - UnsecuredSecured As at As 41,243.8532,331.47 at As at 17,257.9443,256.27 34,894.20 8,416.54 - UnsecuredParticulars 31 March 2019 31 March 41,243.85 2018 1 April 2017 17,257.94 8,416.54 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (b) Commercial Papers (Unsecured) 4,961.71 1,483.96 - (a) Redeemable(b) Commercial Non-convertible Papers (Unsecured) 4,961.71 1,483.96 - Debentures - SecuredTotal 32,331.47 78,537.03 43,256.27 34,894.20 61,998.17 43,310.74 - UnsecuredTotal 41,243.85 78,537.03 17,257.94 8,416.54 61,998.17 43,310.74 (b) Commercial(i) Debt Paperssecurities (Unsecured) in India 4,961.71 78,537.03 1,483.96 61,998.17 - 43,310.74 (ii)(i) DebtDebt securitiessecurities inoutside India India 78,537.03 - 61,998.17 - 43,310.74 - Total (ii) Debt securities outside India 78,537.03 61,998.17 43,310.74 Total 78,537.03 - 61,998.17 - 43,310.74 - (i) DebtTotal securities in India 78,537.03 78,537.03 61,998.17 43,310.74 61,998.17 43,310.74 (ii) Debt securities outside India - - - Total 78,537.03 61,998.17 43,310.74 15.1 DetailsDetails ofof Debentures Debentures - Secured - Secured and Unsecured,and Unsecured, Redeemable Redeemable Non-convertible Non-convertible Debentures (NCD's)- Debentures Redeemable at par 15.1 Details of Debentures - Secured and Unsecured, Redeemable Non-convertible Debentures (NCD's)- Redeemable at par 15.1 Details(NCD's)-The of Debentures NCDs are Redeemable - securedSecured andby chargeUnsecured, at par on specificRedeemable The NCDsloans Non-convertible of the are Company. secured Debentures by (NCD's)- charge Redeemable on specific at par loans of the The NCDs are secured by charge on specific loans of the Company. The Company.NCDs are secured by charge on specific loans of the Company. (Amount Rs.in lakhs) (Amount Rs.in lakhs) (Amount Rs.in lakhs) No. of No. of Interest InterestDue date of No.Due of instalments date of as No. ofAs instalmentsat asAs at As atAs at As at As at No. Faceof value Face value Interest Due date of No. of instalments as As at As at As at DebenturesDebentures FaceRate value redemptionRate atredemption 31 March 2019 31at March 31 March 2019 201931 March 201831 March1 April 2019 2017 31 March 2018 1 April 2017 Debentures Rate redemption at 31 March 2019 31 March 2019 31 March 2018 1 April 2017 750 750 1,000,000 1,000,00011.35% 11.35%30-Sep-19 30-Sep-19 6 1,250.00 6 3,750.00 1,250.00 7,500.00 3,750.00 7,500.00 2500 750 100,000 1,000,00011.45% 11.35%28-Mar-19 30-Sep-19 - - 6 1,500.00 1,250.00 2,500.00 3,750.00 7,500.00 1500 2500 100,000 100,00011.45% 11.45%17-Apr-19 28-Mar-19 1 450.00 - 1,500.00 1,500.00 - 1,500.00 2,500.00 700 15002500 1,000,000 100,00013.25% 11.45%29-Mar-21 28-Mar-19 17-Apr-19 1 7,000.00 - 1 7,000.00 7,000.00 450.00 - 1,500.00 1,500.002,500.00 330 1500 1,000,000 100,00013.25% 11.45%01-May-21 17-Apr-19 1 3,300.00 1 3,300.00 3,300.00 450.00 1,500.00 1,500.00 100 700 1,000,000 1,000,00014.50% 13.25%01-Dec-20 29-Mar-21 - - 1 1,000.00 7,000.00 1,000.00 7,000.00 7,000.00 15 330700 10,000,000 1,000,00013.50% 13.25%12-Jul-19 01-May-2129-Mar-21 1 1,500.00 1 1,500.00 3,300.007,000.00 1,500.00 3,300.007,000.00 3,300.007,000.00 25 100330 10,000,000 1,000,00013.50% 14.50%13.25%12-Jul-22 01-May-2101-Dec-20 1 2,500.00 - 1 2,500.00 3,300.00 2,500.00 - 1,000.003,300.00 1,000.003,300.00 500 100 1,000,000 1,000,00013.00% 14.50%01-Dec-22 01-Dec-20 1 5,000.00 - 5,000.00 5,000.00 - 1,000.00 1,000.00 350 15 1,000,000 10,000,00013.00% 13.50%01-Jul-22 12-Jul-19 1 3,500.00 1 3,500.00 1,500.00 3,500.00 1,500.00 1,500.00 150 2515 1,000,000 10,000,00013.00% 13.50%01-Jul-22 12-Jul-2212-Jul-19 1 1,500.00 1 1,500.00 2,500.001,500.00 1,500.00 2,500.001,500.00 2,500.001,500.00 150 50025 1,000,000 10,000,000 1,000,00013.00% 13.00%13.50%01-Jun-23 01-Dec-22 12-Jul-22 1 1,500.00 1 1,500.00 5,000.002,500.00 1,500.00 5,000.002,500.00 5,000.002,500.00 333 500 1,200,000 1,000,00012.80% 13.00%01-Jul-19 01-Dec-22 1 333.00 1 1,665.00 5,000.00 2,997.00 5,000.00 5,000.00 400 350 1,000,000 1,000,00012.25% 13.00%09-Aug-19 01-Jul-22 1 1,200.00 1 2,600.00 3,500.00 4,000.00 3,500.00 3,500.00 500 150350 1,000,000 1,000,00012.84% 13.00%19-Aug-19 01-Jul-22 1 5,000.00 1 5,000.00 1,500.003,500.00 5,000.00 1,500.003,500.00 1,500.003,500.00 380 150 1,000,000 1,000,00012.00% 13.00%01-Nov-19 01-Jul-22 1 3,800.00 1 3,800.00 1,500.00 3,800.00 1,500.00 1,500.00 1000 150 1,000,000 1,000,00012.30% 13.00%09-Aug-23 01-Jun-23 1 10,000.00 1 10,000.00 1,500.00 - 1,500.00 1,500.00 1000 333150 1,000,000 1,200,0001,000,00011.55% 12.80%13.00%27-Nov-20 01-Jun-23 01-Jul-19 7 5,833.33 1 9,166.67 1,500.00 333.00 - 1,665.001,500.00 2,997.001,500.00 1500 400333 1,000,000 1,000,0001,200,00011.42% 12.25%12.80%25-May-20 09-Aug-19 01-Jul-19 3 11,250.00 1 5,000.00 1,200.00 333.00 - 2,600.001,665.00 4,000.002,997.00 100 400 1,000,000 1,000,00011.43% 12.25%22-May-20 09-Aug-19 3 750.00 1 - 1,200.00 - 2,600.00 4,000.00 100 500 1,000,000 1,000,00011.43% 12.84%22-Jun-20 19-Aug-19 3 1,125.00 1 - 5,000.00 - 5,000.00 5,000.00 100 380500 1,000,000 1,000,00011.43% 12.00%12.84%22-Jun-20 01-Nov-1919-Aug-19 3 1,500.00 1 - 3,800.005,000.00 - 3,800.005,000.00 3,800.005,000.00 5000 380 100,000 1,000,00011.65% 12.00%27-Aug-20 01-Nov-19 4 3,750.00 1 - 3,800.00 - 3,800.00 3,800.00 2500 1000 1,000,000 1,000,00011.50% 12.30%31-Mar-21 09-Aug-23 9 8,000.00 1 - 10,000.00 - 10,000.00 - 1000 1000 1,000,000 1,000,00011.50% 11.55%12.30%31-Mar-21 27-Nov-2009-Aug-23 9 3,333.33 71 - 10,000.00 5,833.33 - 10,000.00 9,166.67 - 15001000 1,000,000Total 11.42%11.55% 25-May-2027-Nov-20 83,374.67 37 70,781.67 11,250.00 54,097.00 5,833.33 5,000.009,166.67 - 15.2 The Company1500 has100 not defaulted in 1,000,000 the repayment of dues11.43%11.42% to debenture holders109 22-May-2025-May-20 3 11,250.00 750.00 5,000.00 - - 100 1,000,000 11.43% 22-May-20 3 750.00 - - 16 Borrowings (other100 than debt securities) 1,000,000 (At Amortised11.43% Cost) (Refer note 16.122-Jun-20 below) 3 1,125.00 - - 100 1,000,000 11.43% 22-Jun-20 3 1,125.00 - - 100 1,000,000 11.43%As at As at22-Jun-20 As at 3 1,500.00 - - 5000100Particulars 1,000,000 100,000 31 March11.65%11.43% 2019 31 March27-Aug-2022-Jun-20 2018 1 April 2017 43 3,750.001,500.00 - - 25005000 1,000,000 100,000Amount11.50%11.65% Rs.in Lakhs Amount Rs.in27-Aug-2031-Mar-21 Lakhs Amount Rs.in Lakhs 94 8,000.003,750.00 - - (a) Secured 10002500 1,000,000 11.50% 31-Mar-21 9 3,333.338,000.00 - - - Term Loan1000 from Banks 1,000,000 11.50% 112,347.71 96,201.8631-Mar-21 62,828.56 9 3,333.33 - - - Term Loan from NBFCs 16,306.88Total 30,986.56 39,889.39 83,374.67 70,781.67 54,097.00 - Finance Lease obligations Total8.98 95.51 92.69 83,374.67 70,781.67 54,097.00 15.2- Cash The credit Company / Overdraft has facilities not defaultedfrom in the repayment 0.28 of dues to debenture - holders 2,499.17 15.2banks The Company has not defaulted in the repayment of dues to debenture holders 16 Borrowings (other than debt securities) (At Amortised Cost) (Refer note 16.1 below) 16(b) UnsecuredBorrowings (other than debt securities) (At Amortised Cost) (Refer note 16.1 below) - Term Loan from NBFCs 5,035.62 As at 7,552.97 As at - As at As at As at As at Total Particulars 133,699.47 31 March 134,836.90 2019 31 105,309.81 March 2018 1 April 2017 Particulars 31 March 2019 31 March 2018 1 April 2017 Borrowings in India 133,699.47Amount Rs.in 134,836.90 Lakhs Amount 105,309.81 Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Borrowings(a) outside Secured India - - - Total (a)- SecuredTerm Loan from Banks 133,699.47 134,836.90112,347.71 105,309.81 96,201.86 62,828.56 - Term Loan from Banks 112,347.71 96,201.86 62,828.56 16.1 The Company- Term has not Loan defaulted from in NBFCs the repayment of dues to Banks and NBFC's. 16,306.88 30,986.56 39,889.39 - TermFinance Loan Lease from obligations NBFCs 16,306.88 8.98 30,986.56 95.51 39,889.39 92.69 - CashFinance credit Lease / Overdraft obligations facilities from 0.288.98 95.51 - 2,499.17 92.69 banks- Cash credit / Overdraft facilities from 0.28 - 2,499.17 banks (b) Unsecured (b)- UnsecuredTerm Loan from NBFCs 5,035.62 7,552.97 - - Term Loan from NBFCs 5,035.62 7,552.97 - Total 133,699.47 134,836.90 105,309.81 Total 133,699.47 134,836.90 105,309.81 Borrowings in India 133,699.47 134,836.90 105,309.81 Borrowings outsidein India India 133,699.47 - 134,836.90 - 105,309.81 - Borrowings outside India - - - Total 133,699.47 134,836.90 105,309.81 Total 133,699.47 134,836.90 105,309.81 16.1 The Company has not defaulted in the repayment of dues to Banks and NBFC's. 16.1 The Company has not defaulted in the repayment of dues to Banks and NBFC's. Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
14 Other Trade Payables As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs
(a) Total outstanding dues of micro - - - enterprises and small enterprises (Refer Note 38) (b) Total outstanding dues of creditors other 1,656.06 1,035.90 835.11 than micro enterprises and small enterprises Total 1,656.06 1,035.90 835.11
15 Debt securities (At Amortised Cost)
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Redeemable Non-convertible Debentures - Secured 32,331.47 43,256.27 34,894.20 - Unsecured 41,243.85 17,257.94 8,416.54
(b) Commercial Papers (Unsecured) 4,961.71 1,483.96 -
Total 78,537.03 61,998.17 43,310.74
(i) Debt securities in India 78,537.03 61,998.17 43,310.74 (ii) Debt securities outside India - - - Total 78,537.03 61,998.17 43,310.74
15.1 Details of Debentures - Secured and Unsecured, Redeemable Non-convertible Debentures (NCD's)- Redeemable at par The NCDs are secured by charge on specific loans of the Company. (Amount Rs.in lakhs) No. of Interest Due date of No. of instalments as As at As at As at Face value Debentures Rate redemption at 31 March 2019 31 March 2019 31 March 2018 1 April 2017 750 1,000,000 11.35% 30-Sep-19 6 1,250.00 3,750.00 7,500.00 2500 100,000 11.45% 28-Mar-19 - - 1,500.00 2,500.00 1500 100,000 11.45% 17-Apr-19 1 450.00 1,500.00 1,500.00 700 1,000,000 13.25% 29-Mar-21 1 7,000.00 7,000.00 7,000.00 330 1,000,000 13.25% 01-May-21 1 3,300.00 3,300.00 3,300.00 100 1,000,000 14.50% 01-Dec-20 - - 1,000.00 1,000.00 15 10,000,000 13.50% 12-Jul-19 1 1,500.00 1,500.00 1,500.00 25 10,000,000 13.50% 12-Jul-22 1 2,500.00 2,500.00 2,500.00 500 1,000,000 13.00% 01-Dec-22 1 5,000.00 5,000.00 5,000.00 350 1,000,000 13.00% 01-Jul-22 1 3,500.00 3,500.00 3,500.00 150 1,000,000 13.00% 01-Jul-22 1 1,500.00 1,500.00 1,500.00 150 1,000,000 13.00% 01-Jun-23 1 1,500.00 1,500.00 1,500.00 333 1,200,000 12.80% 01-Jul-19 1 333.00 1,665.00 2,997.00 400 1,000,000 12.25% 09-Aug-19 1 1,200.00 2,600.00 4,000.00 500 1,000,000 12.84% 19-Aug-19 1 5,000.00 5,000.00 5,000.00 380 1,000,000 12.00% 01-Nov-19 1 3,800.00 3,800.00 3,800.00 1000 1,000,000 12.30% 09-Aug-23 1 10,000.00 10,000.00 - 1000 1,000,000 11.55% 27-Nov-20 7 5,833.33 9,166.67 - 1500 1,000,000 11.42% 25-May-20 3 11,250.00 5,000.00 - th 100 1,000,000 11.43% 22-May-20 3 750.00 - - 12 Annual100 Report 2018-191,000,000 11.43% 22-Jun-20 3 1,125.00 - - Asirvad Microfinance100 1,000,000Limited 11.43% 22-Jun-20 3 1,500.00 - - 5000 100,000 11.65% 27-Aug-20 4 3,750.00 - - Notes forming2500 part of the 1,000,000 Financial Statements11.50% for the year31-Mar-21 ended 31 March 2019 9 8,000.00 - - 1000 1,000,000 11.50% 31-Mar-21 9 3,333.33 - - 15.2 The Company has not defaultedTotal in the repayment of dues to debenture 83,374.67 holders 70,781.67 54,097.00 15.2 The Company has not defaulted in the repayment of dues to debenture holders
16.16 BBorrowingsorrowings (other (other than debt than securities) debt (At securities) Amortised Cost) (At (Refer Amortised note 16.1 below) Cost) (Refer note 16.1 below
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Secured - Term Loan from Banks 112,347.71 96,201.86 62,828.56 - Term Loan from NBFCs 16,306.88 30,986.56 39,889.39 - Finance Lease obligations 8.98 95.51 92.69 - Cash credit / Overdraft facilities from 0.28 - 2,499.17 banks
(b) Unsecured - Term Loan from NBFCs 5,035.62 7,552.97 -
Total 133,699.47 134,836.90 105,309.81 Borrowings in India 133,699.47 134,836.90 105,309.81 Borrowings outside India - - - Total 133,699.47 134,836.90 105,309.81
16.1 The Company has not defaulted in the repayment of dues to Banks and NBFC's. 16.1 The Company has not defaulted in the repayment of dues to Banks and NBFC's. 16.2 Security on Term Loans from Banks and Others
Asirvad Microfinance Limited Notes formingAll loans part of are the Financial secured Statements by hypothecation for the year ended 31 of March Micro 2019 Finance Loans. Further, the Company has
Asirvad16.2 MicrofinanceSecurity on LimitedTerm Loans from Banks and Others Asirvad providedMicrofinance Limited a specific lien on deposits with Banks (Refer (a) below) and also have deposits NotesAsirvad forming Microfinance part of Limitedthe Financial Statements for the year ended 31 March 2019 Notes formingAll loans partare of securedthe Financialby hypothecation Statementsof forMicro theFinance year endedLoans. 31Further, March 2019the Company has provided a specific lien on deposits with Banks (Refer (a) Asirvad below)Microfinance and also Limited have deposits with other NBFCs for Term Loans (Refer (b) below) 16.2 Securitywith otheron Term LoansNBFCs from Banksfor Term and Others Loans (Refer (b) below) 16.2Notes Securityforming parton Term of the Loans Financial from BanksStatements and Others for the year ended 31 March 2019 All loans are secured by hypothecation of Micro Finance Loans. Further,As atthe Company has providedAs at a specific lien onAsdeposits at with Banks (Refer (a) All loans are secured by hypothecation of Micro Finance Loans. Further, the Company has provided a specific lien on deposits with Banks (Refer (a) 16.2below)AllSecurityloans andare alsoonsecured Term have depositsLoansbyParticularshypothecation from with Banksother NBFCsof andMicro Others forFinance Term LoansLoans. (Refer31Further, March (b) below) 2019the Company 31has Marchprovided 2018a specific lien1 Aprilon deposits 2017 with Banks (Refer (a) below) and also have deposits with other NBFCs for Term LoansAmount (Refer Rs.in(b) below) Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs All loans are secured by hypothecation of Micro Finance Loans. Further, the Company has provided a specific lien on deposits with Banks (Refer (a) (a) Deposits with Banks & Others As at 6,471.90 As at 4,909.92 As at 5,993.26 below) and also have deposits with other NBFCs for Term Loans (ReferAs at (b) below) As at As at (b) Deposits with NBFCsParticulars 31 March 2019 120.00 31 March 2018 295.00 1 April 2017 - Particulars 31 March 2019 31 March 2018 1 April 2017 Total Amount Rs.in As at 6,591.90 Lakhs Amount Rs.in As at 5,204.92 Lakhs Amount Rs.in As at 5,993.26 Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Deposits with Banks & Others 31 March 6,471.90 2019 31 March 4,909.92 2018 1 April 5,993.26 2017 (a) Deposits with Banks &Particulars Others 6,471.90 4,909.92 5,993.26 16.3(b)(a)Details DepositsDeposits of withwithTerms NBFCsBanks of Repayment- & Others Term Loans from Banks Amount and Others Rs.in 6,471.90 120.00 Lakhs Amount Rs.in 4,909.92 295.00 Lakhs Amount Rs.in 5,993.26 Lakhs - (b)(b) DepositsDeposits withwith NBFCsNBFCs 120.00 295.00 - - Total 16.3(a) DepositsAs at Details 31 with March Banks 2019 of& Others Terms of Repayment- 6,591.90Term 6,471.90 Loans from 5,204.92 4,909.92 Banks and 5,993.26 5,993.26Others Total 6,591.90 5,204.92 5,993.26 (b) Deposits with NBFCs 120.00 295.00 - 16.3 Details of Terms of Repayment- Term Loans from Banks and OthersAs at Number of 16.3 DetailsTotal of Terms of Repayment- Term Loans from Banks and Others 6,591.90 5,204.92 5,993.26Maturity 16.3 Details of Terms of Repayment-Particulars Term Loans from Banks and31 MarchOthers 2019 Remaining (a) As As at 31at March 31. 2019March 2019 16.3 (a)(a)Details AsAs atat of3131 Terms MarchMarch of 20192019 Repayment- Term Loans from BanksAmount and Others Rs.in Lakhs Instalments < 1 Year > 1 Year Base Rate+Spread As at 93,201.11 Number1 to 36of 64,943.11 28,258.00 As at Number of Maturity Fixed(a) As at 31 MarchParticulars 2019 31 March As at 2019 40,003.23 RemainingNumber1 to 23 of 17,321.56Maturity 22,681.67 Particulars 31 March 2019 Remaining Maturity Particulars Amount31 March Rs.in 2019 Lakhs InstalmentsRemaining < 1 Year > 1 Year TOTAL Amount Rs.in As 133,204.34 at Lakhs InstalmentsNumber of < 1 Year 82,264.67 > 1 50,939.67 Year Base Rate+Spread Amount Rs.in 93,201.11 Lakhs Instalments1 to 36 < 1 Year 64,943.11Maturity > 1 28,258.00 Year Particulars 31 March 2019 Remaining 28,258.00 Base Rate+Spread 93,201.11 1 to 36 64,943.11 22,681.6728,258.00 Fixed Amount Rs.in 40,003.23 Lakhs Instalments1 to 23 < 1 17,321.56 Year > 1 Year FixedFixed 40,003.23 1 to 23 17,321.56 22,681.67 TOTALBase(b) As Rate+Spread at 31 March 2018 133,204.34 93,201.11 1 to 36 82,264.67 64,943.11 50,939.67 28,258.00 TOTAL 133,204.34 82,264.67 50,939.67 22,681.67 TOTALFixed 133,204.34 As at 40,003.23 1 to 23 82,264.67 17,321.56 50,939.67 Number of Maturity Particulars 31 March 2018 Remaining (b)(b)TOTAL As As at 31 at March 31 March2018 2018 133,204.34 82,264.67 50,939.67 (b)(b) AsAs atat 3131 MarchMarch 20182018 Amount Rs.in Lakhs Instalments < 1 Year > 1 Year As at Number of Base Rate+Spread As at 73,414.58 Number1 to 36 of 43,272.09Maturity 30,142.49 (b) As at 31 MarchParticulars 2018 31 MarchAs at 2018 RemainingNumber of Maturity Fixed Particulars 31 March 201861,032.45 Remaining1 to 23 30,474.90Maturity 30,557.55 Particulars Amount31 March Rs.in 2018 Lakhs InstalmentsRemaining < 1 Year > 1 Year TOTAL As 134,447.03 at Number of 73,746.99 60,700.04 Amount Rs.in Lakhs InstalmentsInstalments < 1 Year Maturity > 1 Year Base Rate+Spread Particulars 31 March 73,414.58 2018 Remaining1 to 36 43,272.09 30,142.49 Base Rate+Spread 73,414.58 1 to 36 43,272.09 30,142.49 FixedBase Rate+Spread Amount Rs.in 61,032.45 73,414.58 Lakhs Instalments11 toto 2336 < 1 30,474.90 43,272.09Year > 30,557.55 1 Year FixedFixed(c) As at 1 April 2017 61,032.45 1 to 23 30,474.90 30,557.55 TOTALBase Rate+Spread 134,447.03 73,414.58 1 to 36 73,746.99 43,272.09 60,700.04 30,142.49 TOTAL 134,447.03 73,746.99 60,700.04 TOTALFixed 134,447.03 As at 61,032.45 Number1 to 23 of 73,746.99 30,474.90 60,700.04 30,557.55 Maturity (c)TOTAL As at 1 April 2017 Particulars 1 April 134,447.03 2017 Remaining 73,746.99 60,700.04 (c)(c)(c) AsAs As atat 11 at AprilApril 1 20172017April 2017 Amount Rs.in Lakhs Instalments < 1 Year > 1 Year Base Rate+Spread As at 61,596.56 Number1 to 36of 35,532.86 26,063.70 (c) As at 1 April 2017 As at Number of Maturity Fixed Particulars 1 April 2017 40,984.60 Remaining1 to 23 20,240.98Maturity 20,743.62 Particulars 1 April 2017 Remaining Amount Rs.inAs at Lakhs InstalmentsNumber of < 1 Year > 1 Year TOTAL Amount Rs.in 102,581.16 Lakhs InstalmentsInstalments < 1 Year 55,773.84Maturity > 1 46,807.32 Year Base Rate+Spread Particulars 1 April 61,596.56 2017 Remaining1 to 36 35,532.86 26,063.70 Base Rate+Spread 61,596.56 1 to 36 35,532.86 26,063.70 Fixed Amount Rs.in 40,984.60 Lakhs Instalments1 to 23 < 1 20,240.98 Year > 20,743.62 1 Year 16.4 FixedFixedDetails of Cash Credit from Bank - Secured 40,984.60 1 to 23 20,240.98 20,743.62 TOTALBase Rate+Spread 102,581.16 61,596.56 1 to 36 55,773.84 35,532.86 46,807.32 26,063.70 TOTAL 102,581.16 55,773.84 46,807.32 (a)Fixed The cash credit facility is secured by hypothecation of Microfinance Loans 40,984.60 1 to 23 20,240.98 20,743.62 16.4 Details(b)TOTAL The of details Cash ofCredit interest from rate Bank and -repayment Secured terms are as follows: 102,581.16 55,773.84 46,807.32 16.4 Details of Cash Credit from Bank - Secured 16.4 Details of Cash Credit from Bank - Secured (Amount Rs.in Lakhs) 16.4(a)Details The cash of creditCash facilityCredit isfrom secured Bank by - hypothecationSecured of Microfinance Loans As at As at As at (a)(a) TheThe cashcash creditcredit facilityfacilityRepayment isis securedsecured Terms byby hypothecationhypothecation ofof MicrofinanceMicrofinanceInterest LoansLoans Rate (b) The details of interest rate and repayment terms are as follows: 31 March 2019 31 March 2018 1 April 2017 (a)(b)(b) TheThe detailsdetails cash ofof interest interestcredit raterate facility andand repaymentrepayment is secured termsterms areare asasby follows:follows: hypothecation of Microfinance Loans (a) The cash creditRepayable facility is onsecured Demand by hypothecation of Microfinance9.50% Loans - (Amount - Rs.in 2,499.17Lakhs) (Amount(Amount Rs.inRs.in Lakhs)Lakhs) (b)(b) The The details details of interest of interest rate and repayment rate and terms repayment are as follows: terms are as folAslows: at As at As at Repayment Terms Interest Rate As at As at As at 16.5 (i) Details of CommercialRepayment Paper Terms - Unsecured InterestInterest RateRate 31 March 2019 31 March 2018 (Amount1 April Rs.in 2017 Lakhs) 31 March 2019 31 March 2018 1 April 2017 Repayable on Demand 9.50% As at - (Amount As Rs.in at Lakhs) - As2,499.17 at RepayableRepayment on Demand Terms Interest9.50% Rate -- - - 2,499.17 31 MarchTerms 2019of 31 March 2018 1 April 2017 As at 31 March 2019 Rate of interest As at 31 March 2019 16.5 (i) Details of Commercial Paper - Unsecured repayments 16.5 (i) Details of CommercialRepayable Paper on Demand - Unsecured 9.50% - - 2,499.17 16.5 (i) Details of Commercial Paper - Unsecured (Amount Rs.in Lakhs) Issued to Others (Invesco) 9.8% 62 Days (Amount Rs.in Lakhs) 5,000 Terms of (Amount Rs.in Lakhs) 16.5 (i) Details of CommercialAs at 31 March Paper 2019 - Unsecured Rate of interest Terms of As at 31 March 2019 As at 31 March 2019 Rate of interest repayments Terms of As at 31 March 2019 As at 31 March 2019 Rate of interest repayments As(Amount at 31 March Rs.in 2019 Lakhs) repayments (Amount Rs.in Lakhs) Issued to Others (Invesco) 9.8% 110 62 Terms Days of 5,000 Issued to Others (Invesco)As at 31 March 2019 Rate9.8% of interest 62 Terms Days of As at 31 March 5,000 2019 Issued to Others (Invesco)As at 31 March 2018 Rate9.8% of interest repayments62 Days As at 31 March 5,000 2018 repayments Issued to Others (Invesco) 9.8% 62 Days (Amount Rs.in Lakhs) 5,000 Issued to Others (Credit Suisse) 9% 60 Days (Amount Rs.in Lakhs) 1,500 Terms of (Amount Rs.in Lakhs) As at 31 March 2018 Rate of interest TermsTerms ofof As at 31 March 2018 As at 31 March 2018 Rate of interest repayments As(Amount at 31 March Rs.in 2018 Lakhs) (ii) Details of Commercial Paper issued/repaid during the current year ended 31repaymentsrepayments March 2019 Issued to Others (Credit Suisse) 9% 60 Terms Days of 1,500 Issued to Others (CreditAs at Suisse)31 March 2018 Rate 9%of interest Discount60 Days rate As at 31 March 1,500 2018 Redemption Issued to Others (Credit ParticularsSuisse) Tenor9% (Days) repayments60 Days Date of Transaction 1,500 (per annum) Date (ii)Issued Details to Othersof Commercial (Credit Suisse) Paper issued/repaid during the current9% year ended 31 March60 Days2019 1,500 (ii)(ii)CREDIT DetailsDetails SUISSE ofof CommercialCommercial PaperPaper issued/repaidissued/repaid duringduring thethe currentcurrent60 yearyear endedended 3131 MarchMarch9.00% 20192019 15-Mar-18 14-May-18 SURYODAY 70 Discount9.00% rate 12-Apr-18 Redemption21-Jun-18 Particulars Tenor (Days) Discount rate Date of Transaction Redemption SURYODAY-08082018(ii) Details of CommercialParticulars Paper issued/repaid during theTenor current (Days)51 year ended (per31Discount March annum)8.95% rate2019 Date of08-Aug-18 Transaction Redemption28-Sep-18Date Particulars Tenor (Days) (per annum) Date of Transaction Date CREDITL&T Mututal SUISSE Fund 6033 (per9.00% annum)8.85% 15-Mar-1823-Aug-18 14-May-1825-Sep-18Date CREDIT SUISSE 60 Discount9.00% rate 15-Mar-18 14-May-18 Redemption SURYODAYCREDITCP- SBI SUISSE Mutual Fund Particulars Tenor706091 (Days) 9.00%9.00%10.85% Date12-Apr-1815-Mar-1804-Dec-18 of Transaction 21-Jun-1814-May-185-Mar-19 SURYODAY 70 (per9.00% annum) 12-Apr-18 21-Jun-18Date SURYODAY-08082018SURYODAYCP- Anand Rathi 5170108 8.95%9.00%10.85% 08-Aug-1812-Apr-1804-Dec-18 28-Sep-1821-Jun-1822-Mar-19 SURYODAY-08082018CREDIT SUISSE 5160 8.95%9.00% 08-Aug-1815-Mar-18 28-Sep-1814-May-18 L&TSURYODAY-08082018CP-Kangra Mututal Fund Central Coop Bank 3351100 8.85%8.95%9.15% 23-Aug-1808-Aug-1818-Dec-18 25-Sep-1828-Sep-1828-Mar-19 L&TSURYODAY Mututal Fund 3370 8.85%9.00% 23-Aug-1812-Apr-18 25-Sep-1821-Jun-18 CP-L&TCP-Invesco SBI Mututal Mutual Fund Fund 913362 10.85%8.85%9.80% 04-Dec-1823-Aug-1826-Feb-19 25-Sep-185-Mar-1929-Apr-19 CP-SURYODAY-08082018 SBI Mutual Fund 9151 10.85%8.95% 04-Dec-1808-Aug-18 5-Mar-1928-Sep-18 CP-CP- AnandSBI Mutual Rathi Fund 10891 10.85%10.85% 04-Dec-1804-Dec-18 22-Mar-195-Mar-19 CP-L&T Anand Mututal Rathi Fund 10833 10.85%8.85% 04-Dec-1823-Aug-18 22-Mar-1925-Sep-18 CP-KangraCP-(iii) Anand Details CentralRathi of CommercialCoop Bank Paper issued/repaid during the current100108 year ended 31 10.85%9.15%March 2018 18-Dec-1804-Dec-18 28-Mar-1922-Mar-19 CP-KangraCP- SBI Mutual Central Fund Coop Bank 10091 9.15%10.85% 18-Dec-1804-Dec-18 28-Mar-195-Mar-19 CP-InvescoCP-Kangra Central Coop Bank 10062 9.80%9.15% 26-Feb-1918-Dec-18 29-Apr-1928-Mar-19 CP-InvescoCP- Anand Rathi 62108 Discount9.80%10.85% rate 26-Feb-1904-Dec-18 29-Apr-19Redemption22-Mar-19 CP-Invesco Particulars Tenor62 (Days) 9.80% Date26-Feb-19 of Transaction 29-Apr-19 (iii)CP-Kangra Details ofCentral Commercial Coop Bank Paper issued/repaid during the current100 year ended 31 March(per9.15% annum) 2018 18-Dec-18 28-Mar-19Date (iii)(iii)CaspianCP-Invesco DetailsDetails Impact ofof CommercialCommercial Invetsments PaperPaper issued/repaidissued/repaid duringduring thethe currentcurrent12062 yearyear endedended 3131 MarchMarch9.00%9.80% 20182018 20-Sep-1726-Feb-19 18-Jan-1829-Apr-19 Caspian Impact Invetsments 120 Discount9.00% rate 20-Sep-17 Redemption18-Jan-18 (iii) Details of CommercialParticulars Paper issued/repaid during Tenorthe current (Days) year ended Discount31 March rate 2018 Date of Transaction Redemption Utkarsh Small FinanceParticulars Bank Tenor 100(Days) (perDiscount annum)9.00% rate Date of20-Nov-17 Transaction Redemption28-Feb-18Date Particulars Tenor (Days) (per annum) Date of Transaction Date CaspianAu Small Impact Finance Invetsments Bank 12091 (per9.00% annum)9.00% 20-Sep-1705-Dec-17 18-Jan-186-Mar-18Date Caspian Impact Invetsments 120 Discount9.00% rate 20-Sep-17 18-Jan-18Redemption CaspianCaspianCredit ImpactSuisseImpact InvetsmentsInvetsmentsParticulars Tenor12012060 (Days) 9.00%9.00%9.00% Date20-Sep-1720-Sep-1715-Mar-18 of Transaction 18-Jan-1818-Jan-1814-May-18 Caspian Impact Invetsments 120 (per9.00% annum) 20-Sep-17 18-Jan-18Date UtkarshCaspian SmallImpact Finance Invetsments Bank 100120 9.00%9.00% 20-Nov-1720-Sep-17 28-Feb-1818-Jan-18 UtkarshCaspian Small Impact Finance Invetsments Bank 100120 9.00%9.00% 20-Nov-1720-Sep-17 28-Feb-1818-Jan-18 AuUtkarsh(iv) Small Details Small Finance Financeof BankCommercial Bank Paper issued/repaid during the current10091 year ended 1 April9.00%9.00% 2017 05-Dec-1720-Nov-17 28-Feb-186-Mar-18 AuCaspian Small FinanceImpact InvetsmentsBank 91120 9.00%9.00% 05-Dec-1720-Sep-17 6-Mar-1818-Jan-18 CreditAu Small Suisse Finance Bank 6091 9.00%9.00% 15-Mar-1805-Dec-17 14-May-186-Mar-18 CreditUtkarsh Suisse Small Finance Bank 60100 Discount9.00%9.00% rate 15-Mar-1820-Nov-17 14-May-18Redemption28-Feb-18 Credit Suisse Particulars Tenor60 (Days) 9.00% Date15-Mar-18 of Transaction 14-May-18 (iv)Au DetailsSmall Finance of Commercial Bank Paper issued/repaid during the current91 year ended 1 April(per 9.00%2017 annum) 05-Dec-17 6-Mar-18Date (iv) Details of Commercial Paper issued/repaid during the current year ended 1 April 2017 (iv)SundaramCredit Details Suisse Ultraof Commercial Short Term PaperFund issued/repaid during the current8460 year ended 1 April9.90%9.00% 2017 15-Mar-187-Oct-16 30-Dec-1614-May-18 Royal Sundaram General Insurance Company 84 Discount9.90% rate 7-Oct-16 Redemption30-Dec-16 (iv) Details of CommercialParticulars Paper issued/repaid during Tenorthe current (Days) year ended DiscountDiscount1 April 2017 raterate Date of Transaction RedemptionRedemption Invesco Trustee PrivateParticulars Limited Tenor (Days)89 (per annum)9.35% DateDate ofof27-Oct-16 TransactionTransaction 24-Jan-17Date (per(per annum)annum) Date Sundaram Ultra Short Term Fund 84 Discount9.90% rate 7-Oct-16 30-Dec-16 Redemption Sundaram Ultra Short TermParticulars Fund Tenor84 (Days) 9.90% Date7-Oct-16 of Transaction 30-Dec-16 Royal Sundaram General Insurance Company 84 (per9.90% annum) 7-Oct-16 30-Dec-16Date Royal Sundaram General Insurance Company 84 9.90% 7-Oct-16 30-Dec-16 InvescoSundaram Trustee Ultra Private Short LimitedTerm Fund 8984 9.35%9.90% 27-Oct-167-Oct-16 24-Jan-1730-Dec-16 InvescoInvesco TrusteeTrustee PrivatePrivate LimitedLimited 89 9.35% 27-Oct-16 24-Jan-17 Royal Sundaram General Insurance Company 84 9.90% 7-Oct-16 30-Dec-16 Invesco Trustee Private Limited 89 9.35% 27-Oct-16 24-Jan-17 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
16.2 Security on Term Loans from Banks and Others All loans are secured by hypothecation of Micro Finance Loans. Further, the Company has provided a specific lien on deposits with Banks (Refer (a) below) and also have deposits with other NBFCs for Term Loans (Refer (b) below) Asirvad Microfinance Limited Asirvad Microfinance Limited NotesNotes forming forming part part of theof the Financial Financial Statements Statements for for the the year year ended ended 31 31As March March at 20192019 As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 16.2 Security on Term Loans from Banks and Others Asirvad16.2 Security Microfinance on Term Limited Loans from Banks and Others Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Notes forming part of the Financial Statements for the year ended 31 March 2019 All(a) loansDepositsAll loansare witharesecuredsecured Banksby &byhypothecation OthershypothecationofofMicroMicroFinanceFinanceLoans.Loans. Further, Further, 6,471.90thethe Company hashas provided provided 4,909.92aaspecificspecific lien lien on on deposits deposits 5,993.26withwithBanksBanks(Refer(Refer(a) (a) below)below) and andalso also have have deposits deposits with with other other NBFCs NBFCs for for Term Term Loans Loans (Refer (Refer (b)(b) below)below) 16.2(b) DepositsSecurity withon Term NBFCs Loans from Banks and Others 120.00 295.00 - Total 6,591.90 5,204.92 5,993.26 All loans are secured by hypothecation of Micro Finance Loans. Further,AsAs atat the Company hasAsAsprovided atat a specific lienAsonAs atdeposits at with Banks (Refer (a) 16.3 Detailsbelow) of andTerms also of have Repayment-Particulars depositsParticulars with Term other Loans NBFCs fromfor Term Banks Loans31 and31 (ReferMarch March Others (b) 20192019 below) 31 MarchMarch 2018 2018 1 1April April 2017 2017 AmountAmount Rs.in Rs.in LakhsLakhs Amount Rs.inRs.in Lakhs Lakhs AmountAmount Rs.in Rs.in Lakhs Lakhs (a) As at 31 March 2019 (a) Deposits(a) Deposits with with Banks Banks & Others & Others As at 6,471.90 6,471.90 As at 4,909.92 4,909.92 As at 5,993.26 5,993.26 31 March 2019 31 March 2018 1 April 2017 (b) Deposits(b) Deposits with with NBFCs NBFCsParticulars As at 120.00 120.00 Number 295.00 of 295.00 - - Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in LakhsMaturity TotalTotal Particulars 31 March 6,591.90 6,591.90 2019 Remaining 5,204.92 5,204.92 5,993.26 5,993.26 (a) Deposits with Banks & Others Amount Rs.in 6,471.90 Lakhs Instalments 4,909.92 < 1 Year 5,993.26 > 1 Year 16.3 Details of Terms of Repayment- Term Loans from Banks and Others 16.3 DetailsBase(b) Rate+Spread Depositsof Terms with of NBFCsRepayment- Term Loans from Banks and Others 93,201.11 120.00 1 to 36 295.00 64,943.11 - 28,258.00 Total 6,591.90 5,204.92 5,993.26 (a)Fixed (a)As atAs 31 at March31 March 2019 2019 40,003.23 1 to 23 17,321.56 22,681.67 16.3 Details of Terms of Repayment- Term Loans from Banks and AsOthers at Number of TOTAL As 133,204.34 at Number of 82,264.67Maturity 50,939.67 Particulars 31 March 2019 Remaining Maturity (a) As at 31 MarchParticulars 2019 31 March 2019 Remaining Amount Rs.in Lakhs Instalments < 1 Year > 1 Year Amount Rs.in Lakhs < 1 Year > 1 Year As at InstalmentsNumber of 28,258.00 (b) BaseAs at Rate+Spread 31 March 2018 93,201.11 1 to 36 64,943.11Maturity BaseFixed Rate+Spread Particulars 31 March 93,201.11 40,003.23 2019 Remaining11 toto 23 36 17,321.56 64,943.11 22,681.67 28,258.00 As at 22,681.67 Fixed Amount Rs.in 40,003.23 Lakhs InstalmentsNumber1 to 23 of < 1 Year 17,321.56Maturity > 1 Year TOTAL Particulars 31 March 133,204.34 2018 Remaining 82,264.67 50,939.67 TOTALBase Rate+Spread 133,204.34 93,201.11 1 to 36 64,943.1182,264.67 28,258.00 50,939.67 Fixed Amount Rs.in 40,003.23 Lakhs Instalments1 to 23 < 1 17,321.56Year >22,681.67 1 Year Base(b) Rate+Spread As at 31 March 2018 73,414.58 1 to 36 43,272.09 30,142.49 TOTAL 133,204.34 82,264.67 50,939.67 (b)Fixed As at 31 March 2018 61,032.45 1 to 23 30,474.90 30,557.55 As at Number of Maturity TOTAL Particulars 31 March As 134,447.03 at 2018 RemainingNumber of 73,746.99 60,700.04 (b) As at 31 March 2018 Maturity Particulars Amount31 March Rs.in 2018 Lakhs InstalmentsRemaining < 1 Year > 1 Year As at (c) BaseAs at Rate+Spread 1 April 2017 Amount Rs.in 73,414.58 Lakhs InstalmentsNumber1 to 36 of < 1 43,272.09YearMaturity >30,142.49 1 Year Particulars 31 March 2018 Remaining BaseFixed Rate+Spread 73,414.58 61,032.45 11 toto 23 36 30,474.90 43,272.09 30,557.55 30,142.49 As at InstalmentsNumber of FixedTOTAL Amount 134,447.03Rs.in 61,032.45 Lakhs 1 to 23 < 1 73,746.99Year 30,474.90Maturity > 60,700.04 1 Year 30,557.55 Base Rate+Spread Particulars 1 April 2017 73,414.58 Remaining1 to 36 43,272.09 30,142.49 TOTAL 134,447.03 73,746.99 60,700.04 Fixed Amount Rs.in 61,032.45 Lakhs Instalments1 to 23 < 1 30,474.90Year >30,557.55 1 Year (c) As at 1 April 2017 BaseTOTAL Rate+Spread 134,447.03 61,596.56 1 to 36 73,746.99 35,532.86 60,700.04 26,063.70 (c) As at 1 April 2017 Fixed As at 40,984.60 Number1 to 23 of 20,240.98 20,743.62 Maturity Particulars 1 April 2017 Remaining TOTAL(c) As at 1 April 2017 As 102,581.16 at Number of 55,773.84 46,807.32 Amount Rs.in Lakhs Instalments < 1 Year Maturity > 1 Year Particulars 1 April 2017 Remaining Base Rate+Spread As at61,596.56 Number1 to 36 of 35,532.86 26,063.70 16.4 Details of Cash Credit from Bank - Secured Amount Rs.in Lakhs Instalments < 1 YearMaturity > 1 Year Fixed Particulars 1 April 40,984.602017 Remaining1 to 23 20,240.98 20,743.62 Base Rate+Spread Amount Rs.in 61,596.56 Lakhs Instalments1 to 36 < 1 Year 35,532.86 > 1 Year 26,063.70 TOTAL 102,581.16 55,773.84 46,807.32 Fixed(a) TheBase cash Rate+Spread credit facility is secured by hypothecation of Microfinance Loans 40,984.60 61,596.56 1 to 3623 35,532.86 20,240.98 26,063.70 20,743.62 (b) The details of interest rate and repayment terms are as follows: th TOTALFixed 102,581.16 40,984.60 1 to 23 20,240.9855,773.84 20,743.62 46,807.32 16.4 Details of Cash Credit from Bank - Secured 12 Annual (AmountReport Rs.in 2018-19 Lakhs) TOTAL 102,581.16 55,773.84 46,807.32 As at As at As at 16.4AsirvadDetails Microfinance of Cash CreditRepayment fromLimited Bank Terms - Secured Interest Rate (a) The cash credit facility is secured by hypothecation of Microfinance Loans 31 March 2019 31 March 2018 1 April 2017 16.4 (b)Details The details of Cash of interestCredit from rate andBank repayment - Secured terms are as follows: Notes forming partRepayable of the Financial on Demand Statements for the year9.50% ended 31 March 2019 - - 2,499.17 (a) The cash credit facility is secured by hypothecation of Microfinance Loans (Amount Rs.in Lakhs) (b) The(a) detailsThe cash of creditinterest facility rate is and secured repayment by hypothecation terms are asof Microfinancefollows: Loans As at As at As at 16.5 (i) Details of CommercialRepayment Paper Terms - Unsecured Interest Rate 16.5(b) The(i) details Details of interest of rate Commercialand repayment terms are Paper as follows: - Unsecured31 March (Amount 2019 Rs.in31 March Lakhs)2018 (Amount1 April Rs.in 2017 Lakhs) (Amount Rs.in Lakhs) Repayable on Demand 9.50% As at - As at -(Amount Rs.in 2,499.17As Lakhs) at Repayment Terms Interest Rate Terms of As at 31 March 2019 Rate of interest 31 MarchAs at 2019 As31 at March31As Marchat 2018 2019 1 AsApril at 2017 Repayment Terms Interest Rate repayments 16.5 (i) Details ofRepayable Commercial on PaperDemand - Unsecured 9.50% 31 March 2019 - 31 March 2018 - 1 April 2017 2,499.17 Issued to Others (Invesco)Repayable on Demand 9.8%9.50% 62 Days - (Amount Rs.in Lakhs) 5,000 - 2,499.17 Terms of 16.5 (i) Details of CommercialAs at 31 Paper March - 2019Unsecured Rate of interest As at 31 March 2019 16.5 (i) Details of Commercial Paper - Unsecured repayments (Amount Rs.in Lakhs) (Amount(Amount Rs.in Rs.in Lakhs) Lakhs) Issued to Others (Invesco) 9.8% Terms62 Days of 5,000 As at 31 March 2019 Rate of interest TermsTerms of of As at 31 March 2019 As Asat 31at 31March March 2018 2019 RateRate of of interestinterest repayments AsAs at at 31 31 March March 2019 2018 repaymentsrepayments (Amount Rs.in Lakhs) IssuedIssuedIssued toto OthersOthers to Others (Invesco)(Credit (Invesco) Suisse) 9.8%9.8%9% 6260 DaysDays 5,000 5,000 1,500 Terms of As at 31 March 2018 Rate of interest As at 31 March 2018 repayments (ii) Details of Commercial Paper issued/repaid during the current year ended 31 March 2019 (Amount(Amount Rs.in Rs.in Lakhs) Lakhs) (ii)Issued Details to Others of(Credit Commercial Suisse) Paper issued/repaid9% during60 Days the current year 1,500 ended 31 March Discount Terms ofof rate Redemption As atAs Particulars31 at 31March March 2018 2018 RateRateTenor of of interest (Days)interest AsAs Date at at 31 31 of March MarchTransaction 2018 2018 (perrepayments annum) Date (ii)2019 Details of Commercial Paper issued/repaid during the current year ended 31 March 2019 IssuedCREDITIssued to SUISSE Others to Others (Credit (Credit Suisse) Suisse) 9%609% 609.00% Days 15-Mar-18 1,500 1,500 14-May-18 Discount rate Redemption SURYODAY Particulars Tenor70 (Days) 9.00% Date of12-Apr-18 Transaction 21-Jun-18 SURYODAY-08082018 51 (per 8.95%annum) 08-Aug-18 Date28-Sep-18 (ii) Details(ii) Details of Commercial of Commercial Paper Paper issued/repaid issued/repaid during during the the current current year year ended ended 3131 March 20192019 L&TCREDIT Mututal SUISSE Fund 3360 9.00%8.85% 15-Mar-1823-Aug-18 14-May-1825-Sep-18 CP- SURYODAYSBI Mutual Fund 9170 DiscountDiscount9.00%10.85% raterate 12-Apr-1804-Dec-18 Redemption21-Jun-18 Redemption5-Mar-19 ParticularsParticulars TenorTenor (Days) (Days) Date Date of of Transaction Transaction CP- SURYODAY-08082018Anand Rathi 10851 (per8.95%10.85% annum) 08-Aug-1804-Dec-18 28-Sep-18Date22-Mar-19Date L&T Mututal Fund 33 8.85% 23-Aug-18 25-Sep-18 CREDITCP-KangraCREDIT SUISSE Central SUISSE Coop Bank 1006060 9.00%9.15% 15-Mar-1815-Mar-1818-Dec-18 14-May-1814-May-1828-Mar-19 CP- SBI Mutual Fund 91 10.85% 04-Dec-18 5-Mar-19 SURYODAYCP-InvescoSURYODAY 706270 9.00%9.80% 12-Apr-1812-Apr-1826-Feb-19 21-Jun-1821-Jun-1829-Apr-19 CP-SURYODAY-08082018 Anand Rathi 10851 10.85%8.95% 04-Dec-1808-Aug-18 22-Mar-1928-Sep-18 SURYODAY-08082018CP-Kangra Central Coop Bank 51100 9.15%8.95% 18-Dec-1808-Aug-18 28-Mar-1928-Sep-18 L&T(iii) MututalL&T Details Mututal Fund of FundCommercial Paper issued/repaid during the current3333 year ended 31 March8.85% 2018 23-Aug-1823-Aug-18 25-Sep-1825-Sep-18 CP-InvescoCP- SBI Mutual Fund 6291 10.85%9.80% 26-Feb-1904-Dec-18 29-Apr-195-Mar-19 CP- SBI Mutual Fund 91 10.85% 04-Dec-18 5-Mar-19 CP- Anand Rathi 108 Discount10.85% rate 04-Dec-18 22-Mar-19 Redemption CP- Anand(iii) Details Rathi of CommercialParticulars Paper issued/repaid during theTenor current108 (Days) year ended 31 March10.85% 2018 Date04-Dec-18 of Transaction 22-Mar-19 CP-Kangra Central Coop Bank 100 (per9.15% annum) 18-Dec-18 28-Mar-19Date (iii)CP-KangraCP-Invesco Details Central Coop of BankCommercial Paper issued/repaid10062 during9.80%9.15% the current26-Feb-1918-Dec-18 year ended29-Apr-19 28-Mar-1931 March Caspian Impact Invetsments 120 Discount9.00% rate 20-Sep-17 Redemption18-Jan-18 CP-Invesco Particulars Tenor62 (Days) 9.80% Date of26-Feb-19 Transaction 29-Apr-19 Caspian(iii)2018 ImpactDetails Invetsments of Commercial Paper issued/repaid during the current120 year ended 31(per March 9.00%annum) 2018 20-Sep-17 Date18-Jan-18 (iii)UtkarshCaspian Details Small Impact of Finance Commercial Invetsments Bank Paper issued/repaid during the current100120 year ended 31 March9.00%9.00% 2018 20-Sep-1720-Nov-17 18-Jan-1828-Feb-18 Au SmallCaspian Finance Impact Bank Invetsments 12091 Discount9.00%9.00% rate 20-Sep-1705-Dec-17 Redemption18-Jan-186-Mar-18 Particulars Tenor (Days) Discount rate Date of Transaction Redemption CreditUtkarsh Suisse Small FinanceParticulars Bank Tenor100 60(Days) (per9.00%9.00% annum) Date20-Nov-17 15-Mar-18of Transaction 28-Feb-18Date14-May-18 AuCaspian Small ImpactFinance Invetsments Bank 12091 (per9.00%9.00% annum) 05-Dec-1720-Sep-17 6-Mar-1818-Jan-18Date Caspian(iv)CreditCaspian Details Impact Suisse Impact of InvetsmentsCommercial Invetsments Paper issued/repaid during the current12012060 year ended 1 April9.00%9.00% 2017 15-Mar-1820-Sep-1720-Sep-17 14-May-1818-Jan-1818-Jan-18 CaspianUtkarsh Impact Small Invetsments Finance Bank 120100 9.00% 20-Nov-1720-Sep-17 28-Feb-1818-Jan-18 (iv) Details of Commercial Paper issued/repaid during the current year ended 1 AprilDiscount 2017 rate Redemption UtkarshAu SmallSmall Finance Finance Bank BankParticulars Tenor100 91(Days) 9.00% Date05-Dec-1720-Nov-17 of Transaction 6-Mar-1828-Feb-18 Au SmallCredit Finance Suisse Bank 9160 (per9.00% annum) 15-Mar-1805-Dec-17 14-May-186-Mar-18Date Discount rate Redemption CreditSundaram Suisse Ultra Short TermParticulars Fund Tenor6084 (Days) 9.00%9.90% Date of15-Mar-18 7-Oct-16Transaction 14-May-1830-Dec-16 (iv) Details of Commercial Paper issued/repaid during the current year ended 1(per April annum) 2017 Date Royal Sundaram General Insurance Company 84 9.90% 7-Oct-16 30-Dec-16 (iv)(iv)Sundaram Details Details of Ultra Commercial ofShort Commercial Term Paper Fund issued/repaid Paper during issued/repaid the current84 year ended during 1 April9.90% the 2017 current year7-Oct-16 ended 130-Dec-16 April 2017 Invesco Trustee Private Limited 89 Discount9.35% rate 27-Oct-16 Redemption24-Jan-17 Royal Sundaram GeneralParticulars Insurance Company Tenor84 (Days) 9.90% Date 7-Oct-16of Transaction 30-Dec-16 Invesco Trustee Private Limited 89 Discount(per9.35% annum) rate 27-Oct-16 24-Jan-17 RedemptionDate Particulars Tenor (Days) Date of Transaction Sundaram Ultra Short Term Fund 84 (per9.90% annum) 7-Oct-16 30-Dec-16Date SundaramRoyal SundaramUltra Short General Term FundInsurance Company 8484 9.90% 7-Oct-167-Oct-16 30-Dec-1630-Dec-16 Asirvad MicrofinanceInvesco Trustee Limited Private Limited 89 9.35% 27-Oct-16 24-Jan-17 AsirvadAsirvadRoyal Microfinance Microfinance Sundaram GeneralLimited Limited Insurance Company 84 9.90% 7-Oct-16 30-Dec-16 Notes forming part of the Financial Statements for the year ended 31 March 2019 NotesNotes forming Invescoforming Trustee part part of of Private the the Financial Financial Limited Statements Statements forfor thethe yearyear endedended89 3131 MarchMarch 20192019 9.35% 27-Oct-16 24-Jan-17
17 Subordinated Liabilities 1717.17 SubordinatedSubordinatedSubordinated Liabilities Liabilities Liabilities As at As at As at AsAs atat As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 ParticularsParticulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs AmountAmount Rs.inRs.in LakhsLakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Redeemable Non-Convertible Debentures (Unsecured) 11,414.15 11,407.06 11,412.46 RedeemableRedeemable Non-Convertible Non-Convertible Debentures Debentures (Unsecured)(Unsecured) 11,414.1511,414.15 11,407.06 11,412.4611,412.46 - Subordinated Debt (At Amortised Cost) - -Subordinated Subordinated Debt Debt (At (At Amortised Amortised Cost) Cost)
Total 11,414.15 11,407.06 11,412.46 TotalTotal 11,414.1511,414.15 11,407.06 11,412.4611,412.46
18 Other financial liabilities 1818. OtherOther financial financial liabilities liabilities
As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Interest payable on assets securitised 4,106.51 987.25 46.02 (a) Interest payable on assets securitised 4,106.51 987.25 46.02 (b) Gratuity Payable - - 72.67 (b) Gratuity Payable - - 72.67 (c) Other payables 102.59 525.57 280.14 (c) Other payables 102.59 525.57 280.14 Total 4,209.10 1,512.82 398.83 Total 4,209.10 1,512.82 398.83
19 Provisions 1919. ProvisionsProvisions As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Provision for Compensated Absences 236.48 184.29 139.60 (a) Provision for Compensated Absences 236.48 184.29 139.60 (b) Provision for Income Tax (Net of Advance Tax and - - 420.58 (b) Provision for Income Tax (Net of Advance Tax and - - 420.58 Tax Deducted at source amounting to Tax Deducted at source amounting to Rs. 5,281.51 Lakhs as at 1 April 2017) Rs. 5,281.51 Lakhs as at 1 April 2017) (c) Provision towards Credit Enhancement - - 6.92 (c) Provision towards Credit Enhancement - - 6.92
Total 236.48 184.29 567.10 Total 236.48 184.29 567.10
20 Other non financial liabilities 111 20 Other non financial liabilities As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Statutory dues payable 477.62 327.81 231.45 (a) Statutory dues payable 477.62 327.81 231.45 (b) Deferred Lease Rentals - 1.77 - (b) Deferred Lease Rentals - 1.77 - (c) Other Payables 262.16 246.67 242.01 (c) Other Payables 262.16 246.67 242.01 Total 739.78 576.25 473.46 Total 739.78 576.25 473.46 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
17 Subordinated Liabilities
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Redeemable Non-Convertible Debentures (Unsecured) 11,414.15 11,407.06 11,412.46 - Subordinated Debt (At Amortised Cost)
Total 11,414.15 11,407.06 11,412.46
18 Other financial liabilities
As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Interest payable on assets securitised 4,106.51 987.25 46.02 (b) Gratuity Payable - - 72.67 (c) Other payables 102.59 525.57 280.14
Total 4,209.10 1,512.82 398.83
19 Provisions
As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Provision for Compensated Absences 236.48 184.29 139.60 (b) Provision for Income Tax (Net of Advance Tax and - - 420.58 Tax Deducted at source amounting to Rs. 5,281.51 Lakhs as at 1 April 2017) 12th Annual(c) Provision Report towards Credit 2018-19 Enhancement - - 6.92
AsirvadTotal Microfinance Limited 236.48 184.29 567.10 Notes forming part of the Financial Statements for the year ended 31 March 2019 20.20 OtherOther non non financial financial liabilities liabilities
As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Statutory dues payable 477.62 327.81 231.45 (b) Deferred Lease Rentals - 1.77 - (c) Other Payables 262.16 246.67 242.01
AsirvadTotal Microfinance Limited 739.78 576.25 473.46 Notes forming part of the Financial Statements for the year ended 31 March 2019
21 Equity Share Capital 21.Asirvad Equity Microfinance Share Limited Capital Notes forming part of the Financial Statements for the year ended 31 March 2019 As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Particulars Number of Amount Rs.in Number of Amount Rs.in Number of Amount Rs.in 21 Equity Share Capital shares Lakhs shares Lakhs shares Lakhs (a) Authorised Equity shares of Rs.10/- each 100,000,000As at �31 March 2019 10,000.00 40,000,000 As at 31 March 2018 4,000.00 30,000,000 As at 1 April 2017 3,000.00 Cumulative RedeemableParticulars Non-Convertible Preference Number 1,000,000 of Amount 100.00Rs.in Number 1,000,000 of Amount 100.00 Rs.in Number of Amount Rs.in shares of Rs.100/- each shares Lakhs shares Lakhs 1,000,000shares Lakhs 100.00 Asirvad Microfinance(a) Authorised Limited Asirvad MicrofinanceTOTAL Limited 101,000,000 10,100.00 41,000,000 4,100.00 31,000,000 3,100.00 Notes formingEquity part shares of theof Rs.10/- Financial each Statements for the year ended 100,000,000 31 March 2019 10,000.00 40,000,000 4,000.00 30,000,000 3,000.00 Notes forming(b)Cumulative Issued part , ofSubscribed Redeemable the Financial and Non-Convertible Fully Statements Paid Up Preferencefor the year ended 53,311,887 1,000,000 31 March 2019 5,331.19 100.00 32,074,860 1,000,000 3,207.49 100.00 262.77 2,627.66 Equityshares shares of Rs.100/- of Rs.10/- each each 1,000,000 100.00 21 Equity Share Capital 21 EquityTOTALTOTAL Share Capital 53,311,887101,000,000 5,331.1910,100.00 32,074,860 41,000,000 3,207.49 4,100.00 31,000,000 262.77 2,627.66 3,100.00 (b) Issued , Subscribed and Fully Paid Up As53,311,887 at �31 March 2019 5,331.19 32,074,860As at 31 March 2018 3,207.49 As 262.77 at 1 April 2017 2,627.66 As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 Equity shares of Rs.10/-Particulars each Number of Amount Rs.in Number of Amount Rs.in Number of Amount Rs.in Notes: Particulars Number of Amount Rs.in Number of Amount Rs.in Number of Amount Rs.in Notes:TOTAL shares 53,311,887 Lakhs 5,331.19 shares32,074,860 Lakhs 3,207.49 shares 262.77 Lakhs 2,627.66 (i) Reconciliation of the number of shares and amountshares outstanding at theLakhs beginning and at theshares end of the reportingLakhs year: shares Lakhs (a) Authorised (a) Authorised Equity shares of Rs.10/- each 100,000,000 10,000.00 40,000,000 4,000.00 30,000,000 3,000.00 Equity(i) Reconciliationshares of Rs.10/- each of the number 100,000,000 of shares and 10,000.00 amount 40,000,000 outstanding 4,000.00 at the 30,000,000beginning and 3,000.00 at Cumulative Redeemable Non-Convertible Preference 1,000,000As at �31 March 2019 100.00 1,000,000As at 31 March 2018 100.00 As at 1 April 2017 Cumulative Redeemable Non-Convertible Preference 1,000,000 100.00 1,000,000 100.00 sharesNotes: of Rs.100/- eachEquity Shares 1,000,000 100.00 shares(i) Reconciliation ofthe Rs.100/- end each ofof the the number reporting of shares and year:amount Number outstanding of at Amount the beginning Rs.in and Numberat the end of of the Amount reporting Rs.in year: Number 1,000,000 of Amount Rs.in100.00 TOTAL 101,000,000shares Lakhs 10,100.00 41,000,000 shares Lakhs 4,100.00 31,000,000shares Lakhs 3,100.00 TOTALAt the beginning of the year 101,000,000 32,074,860 10,100.00 3,207.49 41,000,000 26,276,636 4,100.00 2,627.67 31,000,000 26,276,636 3,100.002,627.66 (b) Issued , Subscribed and Fully Paid Up 53,311,887As at �31 March 2019 5,331.19 32,074,860 As at 31 March 2018 3,207.49 262.77 As at 1 April 2017 2,627.66 (b) Issued , Subscribed and Fully Paid Up 53,311,887 5,331.19 32,074,860 3,207.49 262.77 2,627.66 Equity shares of Rs.10/-Equity each Shares EquityIssued shares during of the Rs.10/- year (Refereach Note 21.1 below) Number 21,237,027 of Amount 2,123.70 Rs.in Number 5,798,224 of Amount 579.82 Rs.in Number -of Amount Rs.in - TOTAL 53,311,887shares Lakhs 5,331.19 32,074,860 shares Lakhs3,207.49 shares 262.77 Lakhs 2,627.66 TOTAL 53,311,887 5,331.19 32,074,860 3,207.49 262.77 2,627.66 OutstandingAt the beginning at the of theend year of the year 53,311,887 32,074,860 5,331.19 3,207.49 32,074,860 26,276,636 3,207.49 2,627.67 26,276,636 26,276,636 2,627.66 2,627.66
21.1 DuringIssuedthe duringyear theEnded year ended(Refer 31NoteMarch 21.1 2019,below)the Company 21,237,027has issued 1,04,88,777 2,123.70equity shares of 5,798,224Rs.10 each at a premium 579.82of Rs.85.34 per -equity share through - Notes: Notes:Rights Issue on 27 April 2018 and 1,07,48,250 equity shares of Rs. 10 each at a premium of Rs. 242 per share on 16 March 2019 respectively. (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting year: (i)Outstanding Reconciliation at theof the end number of the yearof shares and amount outstanding53,311,887 at the beginning 5,331.19 and at the 32,074,860 end of the reporting 3,207.49 year: 26,276,636 2,627.66 (ii) Details of shares held by the holding company: As at �31 March 2019 As at 31 March 2018 As at 1 April 2017 21.1 During the year Ended ended 31 March 2019, the CompanyAshas at �31issued March1,04,88,777 2019 equity shares ofAs Rs.10at 31 eachMarchat 2018a premium of Rs.85.34 As perat 1equity April 2017share through Equity Shares 21.1 DuringRights Issue on the 27 April year 2018 and Ended 1,07,48,250 ended equity shares Number 31 ofAs MarchRs. ofat 1031 eachMarch Amount at2019, 2019a premium Rs.in the of Rs. Company 242 Number perAs shareat of 31 onMarch 16 hasAmount March 2018 issued 2019 Rs.in respectively. Number1,04,88,777 As atof 1 April Amount 2017 equity Rs.in Equity Shares Number of Amount Rs.in Number of Amount Rs.in Number of Amount Rs.in shares Lakhs shares % holdingLakhs in shares Lakhs Class(ii) Details of shares of shares/ Name held of shareholder by the holding company: Noshares of shares % holdingLakhs in the Noshares of shares Lakhs No sharesof shares % holdingLakhs in the At the beginning of the year 32,074,860 3,207.49 26,276,636 the class 2,627.67 of 26,276,636 2,627.66 At theshares beginning of of the Rs.10 year each at a premium 32,074,860held of Rs.85.34 class of 3,207.49shares per equity 26,276,636held share through 2,627.67 Rights 26,276,636held Issue class of 2,627.66 onshares 27 shares Issued during the year (Refer Note 21.1 below) 21,237,027 As at 31 March 2019 2,123.70 5,798,224 As at 31 March 2018 579.82 As at- 1 April 2017 - IssuedEquity during Shares the of year Rs. (Refer10 each Note 21.1 below) 21,237,027 2,123.70 5,798,224 579.82 - - ManappuramApril 2018Finance Limitedand (the 1,07,48,250 Holding equity 49,757,889 shares of Rs.93.33% 10 each 28,992,800 at a premium % holding90.39% in of 23,749,979Rs. 242 per share90.38% Class of shares / Name of shareholder No of shares % holding in the No of shares No of shares % holding in the OutstandingCompany) at the end of the year 53,311,887 5,331.19 32,074,860 the 3,207.49 class of 26,276,636 2,627.66 Outstanding at the end of the year 53,311,887held class of5,331.19 shares 32,074,860held 3,207.49 26,276,636held class of2,627.66 shares shares 21.1 Duringonthe 16year MarchEnded ended 201931 March respectively.2019, the Company has issued 1,04,88,777 equity shares of Rs.10 each at a premium of Rs.85.34 per equity share through 21.1 During(iii)Equity Detailsthe Sharesyear of Endedshares of Rs.ended held10 each by31 eachMarch shareholder2019, the Company holding morehas issued than 5%1,04,88,777 shares: equity shares of Rs.10 each at a premium of Rs.85.34 per equity share through Rights Issue on 27 April 2018 and 1,07,48,250 equity shares of Rs. 10 each at a premium of Rs. 242 per share on 16 March 2019 respectively. RightsManappuram Issue on 27Finance April Limited2018 and (the 1,07,48,250 Holding equity shares of 49,757,889 Rs. 10 each at a premium93.33% of Rs. 242 per 28,992,800 share on 16 March 201990.39% respectively. 23,749,979 90.38% Company) As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 (ii)(ii) Details Details of shares of held shares by the holding held company: by the holding company: % holding in (ii) Details of shares held by the holding company: No of shares % holding in the No of shares No of shares % holding in the Class(iii) Detailsof shares of /shares Name held of shareholder by each shareholder holding more than 5% shares: the class of held class of shares held held class of shares As at 31 March 2019 As at 31 March shares2018 As at 1 April 2017 As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Equity Shares of Rs. 10 each As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Class of shares / Name of shareholder % holding in ClassMr. S of V sharesRaja Vaidyanathan / Name of shareholder No of 3,127,966 shares % holding in5.87% the No of 2,741,866 shares % % holding holding8.54% in in No 2,227,966of shares % holding8.48% in the No No of of shares shares % % holding holding in in the the No No of of shares shares the class of No No of of shares shares % % holding holding in in the the ManappuramClass of shares Finance / Name Limited of shareholder held49,757,889 class of shares93.33% 28,992,800held thethe class class90.39% of of 23,749,979held class of shares90.38% heldheld classclass of of shares shares heldheld shares heldheld classclass of of shares shares Equity Shares of Rs. 10 each sharesshares Equity Shares of Rs. 10 each Manappuram(iv)Equity Terms Shares /Finance Rights of Rs.Limited attached 10 each (the to Holding Equity shares: 49,757,889 93.33% 28,992,800 90.39% 23,749,979 90.38% Manappuram Finance Limited (the Holding 49,757,889 93.33% 28,992,800 90.39% 23,749,979 90.38% Company)Mr. S V Raja Vaidyanathan 3,127,966 5.87% 2,741,866 8.54% 2,227,966 8.48% Company)TheManappuramCompany hasFinanceonly Limitedone class of equity shares having a par 49,757,889value of Rs.10 per share.93.33%All these shares 28,992,800have the same rights90.39%and preferences 23,749,979with respect to payment90.38% (iii)of dividend, Details ofrepayment shares heldof capital by eachand shareholdervoting. In the holdingevent of moreliquidation than 5%of the shares:Company, the holders of equity shares will be entitled to receive remaining assets of the (iii)Company,(iv) Details TermsDetails after of / shares Rightsdistribution of heldattached shares ofby all each topreferential Equity shareholder held shares: amounts. by holding each The distributionmore shareholder than will5% be shares: in proportion holding to the number more of equity than shares 5%held by shares: the shareholders. As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 DividendThe Company proposedhas byonly theone Boardclass of ofDirectors,ifequity shares any ishaving subjecta partoAs the valueat approval31of MarchRs.10 of 2019theper shareholdersshare. All these at theshares AsAnnual athave 31 General Marchthe same Meeting,2018rights exceptand preferences in the Ascase atwith of 1 interimAprilrespect 2017 dividend.to payment % holding in of dividend, repayment of capital and voting. In the event No ofof sharesliquidation of% theholdingCompany, in thethe holders No of ofsharesequity shares % holdingwill be entitled in Noto ofreceive sharesremaining % holdingassets inof thethe Class of shares / Name of shareholder No of shares % holding in the No of shares the class of No of shares % holding in the ClassCompany, of shares after / distributionName of shareholder of all preferential amounts. Theheld distribution willclass be in of proportion shares to the numberheld of equitythe shares class held of by the shareholders.held class of shares (v) Employees Stock Option Scheme (ESOP): held class of shares held shares held class of shares Equity Shares of Rs. 10 each shares EquityDividend Shares proposed of Rs. by 10 the each Board of Directors,if any is subject to the approval of the shareholders at the Annual General Meeting, except in the case of interim dividend. Mr. S V Raja Vaidyanathan 3,127,966 5.87% 2,741,866 8.54% 2,227,966 8.48% Mr.All Sthe V Rajaoptions Vaidyanathan granted by the Company were exercised and there 3,127,966 are no outstanding options5.87% pending exercise2,741,866 as at 31 March 8.54%2019, 31 March 2,227,966 2018 and 1 April 2017.8.48% Manappuram Finance Limited 49,757,889 93.33% 28,992,800 90.39% 23,749,979 90.38% Manappuram Finance Limited 49,757,889 93.33% 28,992,800 90.39% 23,749,979 90.38% (v) Employees Stock Option Scheme (ESOP): (iv) Terms / Rights attached to Equity shares: (iv) Terms / Rights attached to Equity shares: (iv)All the Terms options granted / Rights by the Company attached were exercised to andEquity there are noshares: outstanding options pending exercise as at 31 March 2019, 31 March 2018 and 1 April 2017. The Company has only one class of equity shares having a par value of Rs.10 per share. All these shares have the same rights and preferences with respect to payment The Company has only one class of equity shares having a par value of Rs.10 per share. All these shares have the same rights and preferences with respect to payment of dividend, repayment of capital and voting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the of dividend, repayment of capital and voting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. TheCompany, Company after distribution has of all preferential only one amounts. class The distribution of equity will be inshares proportion havingto the number a of parequity sharesvalue held ofby the Rs.10 shareholders. per share. All Dividend proposed by the Board of Directors,if any is subject to the approval of the shareholders at the Annual General Meeting, except in the case of interim dividend. theseDividend proposedshares by the have Board of theDirectors,if same any is subjectrights to the and approval preferences of the shareholders atwith the Annual respect General Meeting, to paymentexcept in the case of of interim dividend, dividend. (v) Employees Stock Option Scheme (ESOP): repayment(v) Employees Stock of Option capital Scheme and (ESOP): voting. In the event of liquidation of the Company, the holders of All the options granted by the Company were exercised and there are no outstanding options pending exercise as at 31 March 2019, 31 March 2018 and 1 April 2017. All the options granted by the Company were exercised and there are no outstanding options pending exercise as at 31 March 2019, 31 March 2018 and 1 April 2017. equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. 112 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 Dividend proposed by the Board of Directors,if any is subject to the approval of the shareholders at the Annual General Meeting, except in the case of interim dividend.
(v) Employees Stock Option Scheme (ESOP):
All the options granted by the Company were exercised and there are no outstanding options
Asirvadpending Microfinance exercise Limited as at 31 March 2019, 31 March 2018 and 1 April 2017. NotesAsirvad forming Microfinance part of Limited the Financial Statements for the year ended 31 March 2019 Notes forming part of the Financial Statements for the year ended 31 March 2019 22.22 Other Other Equity Equity 22 Other Equity As at As at As at Particulars 31 March As at 2019 31 March As at 2018 1 April As at 2017 Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Capital Redemption Reserve 500.00 500.00 500.00 (a) Capital Redemption Reserve 500.00 500.00 500.00 (b) Share Options OutstandingOutstanding ReserveReserve 20.44 20.44 13.00 13.00 - - (c) Statutory Reserve 4,331.64 4,331.64 1,679.97 1,679.97 1,679.97 1,679.97 (d) Securities Premium AccountAccount 55,810.89 55,810.89 20,849.00 20,849.00 15,900.80 15,900.80 (e) General Reserve 35.93 35.93 35.93 35.93 35.93 35.93 (f) Surplus in Statement ofof ProfitProfit andand LossLoss 12,172.55 12,172.55 1,565.85 1,565.85 2,494.35 2,494.35 (g) Other Comprehensive IncomeIncome (OCI)(OCI) 43.08 43.08 21.83 21.83 - -
Total 72,914.53 72,914.53 24,665.58 24,665.58 20,611.05 20,611.05
As at As at As at As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Capital Redemption Reserve (a)Opening Capital balance Redemption Reserve 500.00 500.00 500.00 Add:Opening Additions balance during the year 500.00 - 500.00 - 500.00 - Less:Add: AdditionsUtilised / duringtransferred the year during the year ------ClosingLess: Utilised Balance / transferred during the year 500.00 - 500.00 - 500.00 - Closing Balance 500.00 500.00 500.00 (b) Share Options Outstanding Reserve Opening balance 13.00 - - (b) Share Options Outstanding Reserve Add : Premium on shares issued during the year 7.44 13.00 - Opening balance 13.00 - - Less : Utilised during the year - - - ClosingAdd : Premium Balance on shares issued during the year 20.44 7.44 13.00 13.00 - - Less : Utilised during the year - - - (c)Closing Statutory Balance Reserve 20.44 13.00 - Opening balance 1,679.97 1,679.97 993.33 (c)Add: Statutory Additions Reserve during the year 2,651.67 - 686.64 Less:Opening Utilised balance / transferred during the year 1,679.97 - 1,679.97 - 993.33 - ClosingAdd: Additions Balance during the year 4,331.64 2,651.67 1,679.97 - 1,679.97 686.64 Less: Utilised / transferred during the year - - - (d)Closing Securities Balance Premium Account 4,331.64 1,679.97 1,679.97 Opening balance 20,849.00 15,900.80 15,900.80 Add : Premium on shares issued during the year 34,961.89 4,948.20 - (d)Less Securities : Utilised Premium during the Account year - - - ClosingOpening Balance balance 55,810.89 20,849.00 20,849.00 15,900.80 15,900.80 15,900.80 (e)Add General : Premium Reserve on shares issued during the year 34,961.89 4,948.20 - OpeningLess : Utilised balance during the year 35.93 - 35.93 - 35.93 - Add:Closing Transferred Balance from surplus in Statement of Profit and Loss 55,810.89 - 20,849.00 - 15,900.80 - Less: Utilised / transferred during the year - - - (e) General Reserve Closing Balance 35.93 35.93 35.93 Opening balance 35.93 35.93 35.93 (f) Add:Surplus Transferred in Statement from surplus of Profit in Statement and Loss of Profit and Loss - - - OpeningLess: Utilised Balance / transferred during the year 1,565.85 - 2,494.35 - (252.21) - Add:Closing Profit/(Loss) Balance for the year 13,258.37 35.93 (928.50) 35.93 3,433.20 35.93 Less:Transfer to Statutory Reserve 2,651.67 - 686.64 (f)Closing Surplus Balance in Statement of Profit and Loss 12,172.55 1,565.85 2,494.35 Opening Balance 1,565.85 2,494.35 (252.21) (g)Add: Other Profit/(Loss) Comprehensive for the yearIncome (OCI) 13,258.37 (928.50) 3,433.20 OpeningLess:Transfer Balance to Statutory Reserve 2,651.67 21.83 - - 686.64 - Add:Closing Profit Balance for the Year 12,172.55 21.25 1,565.85 21.83 2,494.35 - Less:Transfer to Statutory Reserve - - - Closing Balance 43.08 21.83 - (g) Other Comprehensive Income (OCI) TOTALOpening (a+b+c+d+e+f+g) Balance 72,914.53 21.83 24,665.58 - 20,611.05 - Add: Profit for the Year 21.25 21.83 - Less:TransferAsirvad Microfinance to Statutory Limited Reserve - - - ClosingNotes formingBalance part of the Financial Statements for the year ended 31 March 43.08 2019 21.83 - 23. Interest23 Interest Income Income TOTAL (a+b+c+d+e+f+g) 72,914.53 24,665.58 20,611.05 For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Interest Income from Loan: - Interest on Loan- Microfinance Loans 52,536.36 40,707.11 - Interest on Loan- SME Loans 43.62 63.50 (b) Interest on deposits with Banks and Financial Institutions 1,381.03 584.62 (c) Other interest income 6,699.70 2,216.04 Total 60,660.71 43,571.27
24 Other Operating Income 113 For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Loss Assets recovered 1,157.47 280.61 Total 1,157.47 280.61
25 Other Income
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Dividend income from mutual funds 507.64 195.94 (b) Referral Fees 5,318.57 2,836.48 (c) Reversal of Provision for Credit Enhancement on Assets De- - 6.92 recognised (d) Miscellaneous income 80.61 67.98
Total 5,906.82 3,107.32
26 Finance Cost
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Interest on Borrowings - Term Loans from Banks 11,039.73 9,885.78 - Term Loans from NBFCs 4,309.25 2,973.92 - Commercial Paper 623.71 145.78 - Overdraft 1.94 23.38
(b) Interest on Debt Securities - Debentures & subordinated Liabilities 10,695.66 7,717.04
(c) Others Interest Expense - Interest on Finance Lease Obligations 5.63 14.16 - Interest on Delayed Payment of TDS/Income Tax - 68.04
(d) Other Borrowing Costs - Processing Fees 419.64 135.35 - Bank Charges 249.39 354.75
27,344.95 21,318.20 Asirvad Microfinance Limited AsirvadNotesAsirvad forming Microfinance Microfinance part of Limited theLimited Financial Statements for the year ended 31 March 2019 NotesNotes forming forming part part of of the the Financial Financial StatementsStatements forfor the year ended 31 MarchMarch 20192019 23 Interest Income 2323 InterestInterest Income Income For the Year Ended For the Year Ended Particulars ForFor31 thethe March YearYear 2019 EndedEnded ForFor31 the the March Year Year 2018Ended Ended 31 March 2019 31 March 2018 ParticularsParticulars Amount31 March Rs.in 2019 Lakhs Amount31 March Rs.in 2018 Lakhs Amount Rs.inRs.in LakhsLakhs AmountAmount Rs.in Rs.in Lakhs Lakhs (a) Interest Income from Loan: (a)(a) -Interest Interest Income onIncome Loan- from from Microfinance Loan: Loan: Loans 52,536.36 40,707.11 -- -InterestInterest Interest onon on Loan-Loan- Loan- Microfinance SMEMicrofinance Loans LoansLoans 52,536.36 52,536.36 43.62 40,707.11 40,707.11 63.50 - -Interest Interest on on Loan- Loan- SME SME Loans Loans 43.62 43.62 63.50 63.50 (b) Interest on deposits with Banks and Financial Institutions 1,381.03 584.62 (b)(b) Interest Interest on on deposits deposits with with Banks Banks andand FinancialFinancial InstitutionsInstitutions 1,381.03 1,381.03 584.62 584.62 th (c) Other interest income 6,699.70 2,216.04 12 Annual(c)(c) Other Other Reportinterest interest income 2018-19income 6,699.70 6,699.70 2,216.04 2,216.04 AsirvadTotal Microfinance Limited 60,660.71 43,571.27 TotalTotal 60,660.71 60,660.71 43,571.27 43,571.27 Notes forming part of the Financial Statements for the year ended 31 March 2019 24 Other Operating Income 24.2424 OtherOtherOther Operating OperatingOperating Income Income Income For the Year Ended For the Year Ended For the Year Ended For the Year Ended Particulars For31 the March Year 2019 Ended For31 the March Year 2018Ended ParticularsParticulars 3131 MarchMarch 20192019 3131 March March 2018 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.inRs.in LakhsLakhs AmountAmount Rs.in Rs.in Lakhs Lakhs (a) Loss Assets recovered 1,157.47 280.61 (a)(a) Loss Loss Assets Assets recovered recovered 1,157.471,157.47 280.61 280.61 Total 1,157.47 280.61 TotalTotal 1,157.471,157.47 280.61 280.61
25 Other Income 25.2525 OtherOtherOther Income IncomeIncome For the Year Ended For the Year Ended ForFor thethe YearYear EndedEnded ForFor the the Year Year Ended Ended Particulars 31 March 2019 31 March 2018 ParticularsParticulars 3131 MarchMarch 20192019 3131 March March 2018 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.inRs.in LakhsLakhs AmountAmount Rs.in Rs.in Lakhs Lakhs (a) Dividend income from mutual funds 507.64 195.94 (a)(a) Dividend Dividend income income from from mutual mutual fundsfunds 507.64 507.64 195.94 195.94 (b) Referral Fees 5,318.57 2,836.48 (b)(b) Referral Referral Fees Fees 5,318.575,318.57 2,836.48 2,836.48 (c) Reversal of Provision for Credit Enhancement on Assets De- - 6.92 (c)(c) Reversal Reversal of of Provision Provision for for Credit Credit EnhancementEnhancement onon Assets De- - - 6.92 6.92 recognised recognisedrecognised (d) Miscellaneous income 80.61 67.98 (d)(d) Miscellaneous Miscellaneous income income 80.61 80.61 67.98 67.98
TotalTotalTotal 5,906.825,906.82 5,906.82 3,107.32 3,107.32 3,107.32
26.262626 FinanceFinanceFinanceFinance CostCost Cost Cost
ForFor thethe YearYear EndedEndedEnded For ForFor the thethe Year YearYear Ended EndedEnded ParticularsParticulars 3131 MarchMarch 201920192019 313131 March MarchMarch 2018 20182018 Amount Rs.inRs.in LakhsLakhsLakhs AmountAmountAmount Rs.in Rs.inRs.in Lakhs LakhsLakhs (a)(a)(a) InterestInterest Interest onon on BorrowingsBorrowings Borrowings -- -TermTerm Term LoansLoans Loans fromfrom from Banks BanksBanks 11,039.73 11,039.7311,039.73 9,885.78 9,885.78 9,885.78 -- -TermTerm Term LoansLoans Loans fromfrom from NBFCs NBFCsNBFCs 4,309.25 4,309.25 4,309.25 2,973.92 2,973.92 2,973.92 -- -CommercialCommercial Commercial PaperPaper Paper 623.71 623.71 623.71 145.78 145.78 145.78 -- -OverdraftOverdraft Overdraft 1.94 1.941.94 23.38 23.38 23.38
(b)(b)(b) InterestInterest Interest onon on DebtDebt Debt Securities Securities -- -DebenturesDebentures Debentures && & subordinatedsubordinated subordinated LiabilitiesLiabilities 10,695.66 10,695.6610,695.66 7,717.04 7,717.04 7,717.04
(c)(c)(c) OthersOthers Others InterestInterest Interest ExpenseExpense -- -InterestInterest Interest onon on FinanceFinance Finance Lease LeaseLease Obligations Obligations 5.63 5.635.63 14.16 14.16 14.16 -- -InterestInterest Interest onon on DelayedDelayed Delayed Payment PaymentPayment ofof TDS/IncomeTDS/Income TaxTax - - - 68.04 68.04 68.04
(d)(d)(d) OtherOther Other BorrowingBorrowing Borrowing Costs Costs -- -ProcessingProcessing Processing FeesFees Fees 419.64 419.64 419.64 135.35 135.35 135.35 -- -BankBank Bank ChargesCharges Charges 249.39 249.39 249.39 354.75 354.75 354.75 Asirvad TotalMicrofinance Limited 27,344.95 27,344.95 27,344.95 21,318.20 21,318.20 21,318.20 Notes forming part of the Financial Statements for the year ended 31 March 2019
27.27 ImpairmentImpairment of financial of financial instruments instruments
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs
Loans (Also refer Note 7.4) 1,977.89 12,427.67
Total 1,977.89 12,427.67
28.28 EmployeeEmployee Benefit Benefit Expenses Expenses
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Salaries and Wages 10,244.11 8,226.46 (b) Contributions to Provident and Other Funds 672.73 630.44 (c) Share based payments to Employees 7.44 13.00 (d) Staff Welfare Expenses 423.91 382.20
Total 11,348.19 9,252.10
29 Other expenses 114 For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Electricity 86.32 76.09 (b) Rent including Lease Rentals 1,047.88 943.28 (c) Directors commission 60.00 - (d) Repairs and Maintenance 62.93 64.52 (e) Insurance 75.86 56.50 (f) Rates and Taxes 49.21 17.25 (g) Communication Expenses 280.31 238.10 (h) Travel and Conveyance 2,226.04 1,709.36 (i) Printing and Stationery 461.51 277.86 (j) Directors' Sitting Fees 13.79 14.42 (k) Business Promotion 9.72 10.12 (l) Donations and Contributions 58.77 69.50 (m) Legal and Professional Fees 477.10 350.79 (n) Provision for Insurance Claim Receivable 273.12 136.51 (o) Subscription Charges 11.27 1.53 (p) Software Costs 639.35 421.48 (q) Security Charges 12.27 6.24 (r) House Keeping Expenses 120.91 101.12 (s) Office Expenses 53.70 22.76 (t) Loss on Sale of Property, Plant & Equipment 2.21 5.07 (u) Payments to Statutory Auditors' (net of input tax credit) - Statutory Audit 18.00 18.00 - Tax Audit 2.00 2.00 - Other Services 21.50 6.50 - Out of Pocket expenses 0.83 - (v) Miscellaneous Expenses 259.51 224.43 Total 6,324.11 4,773.43 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
27 Impairment of financial instruments
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs
Loans (Also refer Note 7.4) 1,977.89 12,427.67
Total 1,977.89 12,427.67
28 Employee Benefit Expenses
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Salaries and Wages 10,244.11 8,226.46 (b) Contributions to Provident and Other Funds 672.73 630.44 (c) Share based payments to Employees 12 7.44th Annual Report 2018-19 13.00 (d) Staff Welfare Expenses 423.91 382.20 Asirvad Microfinance Limited NotesTotal forming part of the Financial Statements for the year ended 31 March 2019 11,348.19 9,252.10
29.29 Other expenses expenses
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs (a) Electricity 86.32 76.09 (b) Rent including Lease Rentals 1,047.88 943.28 (c) Directors commission 60.00 - (d) Repairs and Maintenance 62.93 64.52 (e) Insurance 75.86 56.50 (f) Rates and Taxes 49.21 17.25 (g) Communication Expenses 280.31 238.10 (h) Travel and Conveyance 2,226.04 1,709.36 (i) Printing and Stationery 461.51 277.86 (j) Directors' Sitting Fees 13.79 14.42 (k) Business Promotion 9.72 10.12 (l) Donations and Contributions 58.77 69.50 (m) Legal and Professional Fees 477.10 350.79 (n) Provision for Insurance Claim Receivable 273.12 136.51 (o) Subscription Charges 11.27 1.53 (p) Software Costs 639.35 421.48 (q) Security Charges 12.27 6.24 (r) House Keeping Expenses 120.91 101.12 (s) Office Expenses 53.70 22.76 (t) Loss on Sale of Property, Plant & Equipment 2.21 5.07 (u) Payments to Statutory Auditors' (net of input tax credit) - Statutory Audit 18.00 18.00 - Tax Audit 2.00 2.00 - Other Services 21.50 6.50 - Out of Pocket expenses 0.83 - (v) Miscellaneous Expenses 259.51 224.43 Total 6,324.11 4,773.43
30. Segment Reporting
The Company is engaged in extending micro credit advances to poor women, who are otherwise unable to access finance from the mainstream banking channels. Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Marker (CODM) evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by the overal business segment, i.e. Microfinance Loans. As the allocation of resources and profitability of the business is evaluated the CODM on an overall by basis, with evaluation into individual categories to understand the reasons for variations, no separate segments have been no additional disclosure has been identified. Asirvad Microfinance Limited AccordinglyNotes forming part madeof the Financial for the Statements segmental for the year revenue, ended 31 March segmental 2019 results and the segmental assets & 30liabilities.Segment Reporting The Company is engaged in extending micro credit advances to poor women, who are otherwise unable to access finance from the mainstream banking channels. Based on the "management approach" as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Marker 31. (CODM)Earningsevaluates perthe Company'sshare performance and allocates resources based on an analysis of various performance indicators by the overall business segment, i.e. Microfinance Loans. As the allocation of resources and profitability of the business is evaluated by the CODM on an overall basis, with evaluation into individual categories to understand the reasons for variations, no separate segments have been identified. Accordingly Basicno additionaland Diluted disclosure hasearnings been made perfor the share segmental : revenue, segmental results and the segmental assets & liabilities.
31 Earnings per share The earnings and weighted average number of ordinary shares used in the calculation of basic Basic and Diluted earnings per share :
andThe diluted earnings andearnings weighted average per sharenumber of are ordinary as sharesfollows: used in the calculation of basic and diluted earnings per share are as follows:
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 (a) Net Profit attributable to Equity Shareholders - Rs. in lakhs (Basic and Diluted) 13,258.37 (928.50) (b) Weighted average number of equity shares in calculating basic 42,287,647.41 27,865,190.52 Earnings Per Share (Nos.) (c) Earnings per share - Basic and Diluted - Rs. 31.35 (3.33)
32 A. Obligation under Operating Lease 115
The Company has entered into operating lease agreements primarily for corporate office and branches. An amount of Rs.1,047.88 Lakhs (Previous Year : Rs.943.28 Lakhs) has been debited to the Statement of Profit and Loss towards lease rentals and other charges for the current year. The leases agreement for branches are non cancellable for periods of 11 months to 12 months and may be renewed based on mutual agreement of the parties. The future minimum lease payments for hospitals premises under operating lease contracted are as follows: Amount Rs.in Lakhs Expected Minimum Lease Commitment Particulars As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Payable not later than one year 96.07 49.25 66.51 Payable later than one year and not later than five years 112.23 27.16 76.41 Payable later than five years - - -
B. Obligation under Finance Lease Amount Rs.in Lakhs Expected Minimum Lease Commitment Particulars As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Rentals payable under Hire purchase agreement - Within one year 9.73 56.88 40.50 - Later than one year and not later than five years - 48.57 65.68 Less: Future finance charges 0.75 9.94 13.49
Total 8.98 95.51 92.69 Asirvad Microfinance Limited Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 Notes forming part of the Financial Statements for the year ended 31 March 2019
3030 SegmentSegment Reporting Reporting
TheTheCompanyCompanyisisengagedengagedininextendingextendingmicromicrocreditcredit advancesadvances toto poor women, who areare otherwiseotherwiseunableunabletotoaccessaccessfinancefinancefromfromthethemainstreammainstream bankingbankingchannels.channels.BasedBasedononthethe"management"managementapproach"approach" asas defineddefined in Ind-AS 108108 -- OperatingOperatingSegments,Segments,thetheChiefChiefOperatingOperatingDecisionDecisionMarkerMarker (CODM)(CODM)evaluatesevaluatesthetheCompany'sCompany'sperformanceperformance andand allocatesallocates resourcesresources based onon anan analysisanalysis ofof variousvariousperformanceperformanceindicatorsindicatorsbybythetheoveralloverall businessbusinesssegment,segment,i.e.i.e.MicrofinanceMicrofinanceLoans.Loans.AsAsthetheallocationallocation ofof resourcesresources and profitability ofofthethebusinessbusinessisisevaluatedevaluatedbybythetheCODMCODMononananoveralloverall basis,basis,withwithevaluationevaluationintointoindividualindividualcategoriescategoriestotounderstandunderstand thethe reasons for variations, nonoseparateseparatesegmentssegmentshavehavebeenbeenidentified.identified.AccordinglyAccordingly 12nothno additionalAnnual additional disclosure disclosureReport has has2018-19 been been made made for for the the segmental segmental revenue,revenue, segmental results andand thethe segmentalsegmental assets assets & & liabilities. liabilities.
3131AsirvadEarningsEarnings Microfinance per per share share Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 BasicBasic and and Diluted Diluted earnings earnings per per share share : : 32The The earningsA. earnings Obligation and and weighted weighted average averageunder number number Operating of of ordinary ordinary sharesshares Lease usedused in the calculation ofof basicbasic andand diluted diluted earnings earnings per per share share are are as as follows: follows:
For the Year EndedEnded ForFor the the Year Year Ended Ended ParticularsParticulars The Company has entered into operating lease 31agreements March 20192019 primarily3131 March March for2018 2018 corporate office and (a)(a) Net Net Profit Profit attributable attributable to to Equity Equity Shareholders Shareholders - - Rs.Rs. inin lakhslakhs branches.(Basic(Basic and and Diluted) Diluted)An amount of Rs.1,047.88 Lakhs (Previous Year 13,258.37 13,258.37 : Rs.943.28 Lakhs) (928.50) (928.50) has been debited (b) Weighted average number of equity shares in calculating basic (b) Weighted average number of equity shares in calculating basic 42,287,647.41 27,865,190.52 27,865,190.52 toEarnings theEarnings Statement Per Per Share Share (Nos.) (Nos.) of Profit and Loss towards lease rentals and other charges for the current year. (c) Earnings per share - Basic and Diluted - Rs. (c) Earnings per share - Basic and Diluted - Rs. 31.35 31.35 (3.33) (3.33) The leases agreement for branches are non cancellable for periods of 11 months to 12 months 3232andA.A. Obligation mayObligation be under underrenewed Operating Operating based Lease Lease on mutual agreement of the parties. The Company has entered into operating lease agreements primarily for corporate office and branches. An amount of Rs.1,047.88 Lakhs (Previous The Company has entered into operating lease agreements primarily for corporate office and branches. An amount of Rs.1,047.88 Lakhs (Previous Year : Rs.943.28 Lakhs) has been debited to the Statement of Profit and Loss towards lease rentals and other charges for the current year. The Year : Rs.943.28 Lakhs) has been debited to the Statement of Profit and Loss towards lease rentals and other charges for the current year. The leases agreement for branches are non cancellable for periods of 11 months to 12 months and may be renewed based on mutual agreement of the Theleases futureagreement minimumfor branches are leasenon cancellable paymentsfor periods forof hospitals11 months to 12premisesmonths and undermay be renewed operatingbased on mutualleaseagreement contractedof the parties. parties. areThe as future follows: minimum lease payments for hospitals premises under operating lease contracted are as follows: The future minimum lease payments for hospitals premises under operating lease contracted are as follows: Amount Rs.in Lakhs Amount Rs.in Lakhs Expected Minimum Lease Commitment Particulars Expected Minimum Lease Commitment Particulars As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Payable not later than one year 96.07 49.25 66.51 PayablePayable not later later than than one one year year and not later than five years 112.23 96.07 27.16 49.25 76.41 66.51 PayablePayable later later than than one five year years and not later than five years 112.23 - 27.16 - 76.41- Payable later than five years - - -
B. Obligation under Finance Lease B. Obligation Obligation under Finance under Lease Finance Lease Amount Rs.in Lakhs Expected Minimum Lease CommitmentAmount Rs.in Lakhs Particulars Expected Minimum Lease Commitment Particulars As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Rentals payable under Hire purchase agreement As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Rentals - Within payable one year under Hire purchase agreement 9.73 56.88 40.50 - Within- Later one than year one year and not 9.73 56.88 40.50 - Later later than than one five year years and not - 48.57 65.68 laterLess: thanFuture five finance years charges 0.75 - 9.9448.57 13.49 65.68 Less: Future finance charges 0.75 9.94 13.49 Total 8.98 95.51 92.69 Total 8.98 95.51 92.69 33. Employee benefits 33.1 Defined Contribution Plan (a) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also provides,
Asirvad Microfinance Limited Notes formingfor part coveredof the Financial employees, Statements for the health year ended insurance 31 March 2019 through the Employee State Insurance scheme.
Asirvad33 Employee Microfinance benefits Limited Notes formingUnder part of the theFinancial Schemes, Statements forthe the Company year ended 31 March is required 2019 to contribute a specified percentage of 33.1 Defined Contribution Plan 33 Employeethe benefits payroll costs to fund the benefits. The contributions payable to these plans by the (a) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also 33.1 Defined Contribution Plan provides,Companyfor covered employees, are healthat ratesinsurance specifiedthrough the Employee in theState rulesInsurance ofscheme. the Underschemes.the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the (a) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also schemes. provides,(b) Expensesfor covered employees, Recognisedhealth insurance through the Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a specified(b) Expensespercentage Recognisedof the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes. (Amount Rs. in Lakhs) For the year ended For the year ended (b) Expenses RecognisedParticulars 31 March 2019 31 March 2018 (Amount Rs. in Lakhs) (a) Included under 'Contributions to Provident For the year ended For the year ended and Other Funds' (ReferParticulars Note 28) 31 March 2019 31 March 2018 Contributions(a) Included under to provident 'Contributions and pension to Provident funds 672.73 630.44 and Other Funds' (Refer Note 28)
(b)Contributions Included under to provident 'Staff Welfare and pension Expenses' funds 672.73 630.44 (Refer Note 28) (b)Contributions Included under to Employee 'Staff Welfare State InsuranceExpenses' 309.47 242.53 (Refer Note 28) 33.2 ContributionsCompensated to Absences Employee State Insurance 309.47 242.53 (Amount Rs. in Lakhs) 33.2 Compensated Absences For the year ended For the year ended 33.2 Compensated AbsencesParticulars 31 March 2019 (Amount31 March Rs. 2018in Lakhs) Included under "Salaries & Wages" (Refer Note For the year ended For the year ended 28) Particulars 138.83 101.36 31 March 2019 31 March 2018 Included under "Salaries & Wages" (Refer Note 28) 138.83 101.36 (Amount Rs. in Lakhs) As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 (Amount Rs. in Lakhs) (b) Net asset / (liability) recognised in the As at 498.64 As at 430.96 As at 381.61 Balance Sheet Particulars 31 March 2019 31 March 2018 1 April 2017 Current portion of the above 323.02 116 293.30 262.11 (b) Net asset / (liability) recognised in the 498.64 430.96 381.61 NonBalance - current Sheet portion of the above 175.62 137.66 119.50 Current portion of the above 323.02 293.30 262.11 NonThe Key- current Assumptions portion ofused the in above the computation of provision for compensated 175.62 absences are as given 137.66 below: 119.50
As at As at As at The Key AssumptionsParticulars used in the computation of provision for compensated absences are as given below: 31 March 2019 31 March 2018 1 April 2017 Discount Rate (% p.a) 7.35% 7.60% 6.75% As at As at As at Particulars Future Salary Increase (% p.a) 31 March 201910.00% 31 March 201810.00% 1 April 201710.00% AttritionDiscount RateRate (% p.a) 16.00%7.35% 16.00%7.60% 16.00%6.75% Future Salary Increase (% p.a) 10.00% 10.00% 10.00% 33.3 AttritionDefined RateBenefit Plans: 16.00% 16.00% 16.00% The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act, 1972 and the benefit 33.3 vestsDefinedupon Benefitcompletion Plans:of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the The Company operates a gratuity plan covering qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act, 1972 and the benefit Life Insurance Corporation of India. vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31 Life Insurance Corporation of India. March 2019 by Mr. Arunachalam Rajaraman, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and paid service cost, were measured using the projected unit cost credit method. In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31 March(a) Amount2019 byrecognisedMr. Arunachalam in the statementRajaraman, ofFellow profitof &the lossInstitute in respectof Actuaries of the definedof India. benefitThe present plan arevalue as followsof the defined : benefit obligation, and the related current service cost and paid service cost, were measured using the projected unit cost credit method. (Amount Rs. in Lakhs) For the year ended For the year ended (a) Amount recognised in the statement Particularsof profit & loss in respect of the defined benefit plan are as follows : 31 March 2019 (Amount31 March Rs. in2018 Lakhs) Amounts recognised in statement of Profit & Loss in respect of these defined benefit plans For the year ended For the year ended Particulars are as follows: 31 March 2019 31 March 2018
ServiceAmounts Cost recognised in statement of Profit & Loss in respect of these defined benefit plans are- asCurrent follows: Service Cost 152.05 139.91 - Past Service Cost - 9.86 Service- Net Cost interest expense (5.90) (2.44) - Current Service Cost 152.05 139.91 Components - Past Service of defined Cost benefit costs recognised in statement of profit or loss (A) 146.15 - 147.33 9.86 - Net interest expense (5.90) (2.44) Actuarial (gain)/loss on Plan Obligations 35.36 58.09 Components of defined benefit costs recognised in statement of profit or loss (A) 146.15 147.33 Difference between Actual Return and Interest Income on Plan Assets- (gain)/loss (2.65) (24.53)
ActuarialComponents (gain)/loss of defined on Plan benefit Obligations costs recognised in other comprehensive income (B) (32.71) 35.36 (33.56) 58.09 Difference between Actual Return and Interest Income on Plan Assets- (gain)/loss (2.65) (24.53) Total 113.44 113.77 Components of defined benefit costs recognised in other comprehensive income (B) (32.71) (33.56)
Total 113.44 113.77 (i) The current service cost and interest expense for the year are included in the Note 28 - Employee Benefit Expenses in the statement of profit & loss under the line contribution to provident and other funds. (i)(ii) TheThe currentremeasurement service cost of theand net interest defined expense benefit for liability the year is included are included in other in the comprehensive Note 28 - Employee income. Benefit Expenses in the statement of profit & loss under the line contribution to provident and other funds. (ii) The remeasurement of the net defined benefit liability is included in other comprehensive income. Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
33 Employee benefits Asirvad Microfinance Limited Notes forming33.1 part ofDefined the Financial Contribution Statements Plan for the year ended 31 March 2019
33 Employee benefits(a) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also provides, for covered employees, health insurance through the Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a 33.1 Defined Contributionspecified Planpercentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes. (a) The Company makes Provident and Pension Fund contributions, which is a defined contribution plan, for qualifying employees. Additionally, the Company also (b) Expenses Recognised provides, for covered employees, health insurance through the Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a (Amount Rs. in Lakhs) specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the For the year ended For the year ended schemes. Particulars 31 March 2019 31 March 2018 (b) Expenses Recognised (a) Included under 'Contributions to Provident (Amount Rs. in Lakhs) and Other Funds' (Refer Note 28) For the year ended For the year ended Particulars Contributions to provident and pension31 funds March 2019 31 672.73 March 2018 630.44 (a) Included under 'Contributions to Provident and Other Funds' (Refer Note 28) (b) Included under 'Staff Welfare Expenses' Contributions to(Refer provident Note and28) pension funds 672.73 630.44 Contributions to Employee State Insurance 309.47 242.53 (b) Included under 'Staff Welfare Expenses' (Refer Note33.2 28)Compensated Absences th Contributions to Employee State Insurance 309.47 (Amount 242.53 Rs. in Lakhs)12 Annual Report 2018-19 For the year ended For the year ended Particulars 31 March 2019 31 March 2018 Asirvad33.2 AsirvadCompensated Microfinance Microfinance Absences Limited Limited Notes formingIncluded part of theunder Financial "Salaries Statements & Wages" (Refer for the Note year ended 31 March 2019 (Amount Rs. in Lakhs) Notes forming part28) of the Financial Statements for the year end ed 138.83 31 March 2019 101.36 For the year ended For the year ended 33 Employee benefitsParticulars 31 March 2019 31 March 2018 (Amount Rs. in Lakhs) 33.1IncludedDefined under "SalariesContribution & Wages" Plan (Refer Note 138.83As at 101.36 As at As at 28) Particulars (a) The Company makes Provident and Pension Fund contributions,31 Marchwhich 2019is a defined contribution31 March plan,2018for qualifying1 employees.April 2017 Additionally, the Company also provides,(b)for Netcovered assetemployees, / (liability)health recognisedinsurance inthrough the the Employee State Insurance scheme. Under the Schemes, the Company is required to contribute a 498.64 (Amount 430.96 Rs. in Lakhs) 381.61 specifiedBalancepercentage Sheetof the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the As at As at As at schemes.CurrentParticulars portion of the above 323.02 293.30 262.11 31 March 2019 31 March 2018 1 April 2017 (b) Net(b) asset Expenses Non/ (liability) - currentRecognised recognised portion of the in abovethe 175.62 137.66 119.50 498.64 430.96 381.61 Balance Sheet (Amount Rs. in Lakhs) For the year ended For the year ended Current portionThe of the Key above AssumptionsParticulars used in the computation of provision 323.02 for compensated absences 293.30 are as given below: 262.11 31 March 2019 31 March 2018 NonThe - current Key portion Assumptions of the above used in the computation 175.62 of provision 137.66 for compensated 119.50 absences are (a) Included under 'Contributions to Provident As at As at As at Particulars and Other Funds' (Refer Note 28) 31 March 2019 31 March 2018 1 April 2017 Theas Key given AssumptionsDiscount below: used Rate in (%the p.a)computation of provision for compensated absences7.35% are as given below: 7.60% 6.75% Contributions to provident and pension funds 672.73 630.44 Future Salary Increase (% p.a) As at 10.00%As at 10.00%As at 10.00% Particulars 31 March 2019 31 March 2018 1 April 2017 (b) IncludedAttrition under Rate 'Staff Welfare Expenses' 16.00% 16.00% 16.00% Discount Rate (% p.a) 7.35% 7.60% 6.75% (Refer Note 28) Future Salary33.3 IncreaseDefined (% Benefit p.a) Plans: 10.00% 10.00% 10.00% Contributions to Employee State Insurance 309.47 242.53 Attrition Rate The Company operates a gratuity plan covering qualifying16.00%employees. The benefit16.00%payable is calculated as16.00%per the Payment of Gratuity Act, 1972 and the benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of 33.2 Compensated Absences death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the 33.3 Defined Benefit Plans: (Amount Rs. in Lakhs) Life Insurance Corporation of India. For the year ended For the year ended 33.3The DefinedCompany operates BenefitaParticularsgratuity plan Plans:covering qualifying employees. The benefit payable is calculated as per the Payment of Gratuity Act, 1972 and the benefit 31 March 2019 31 March 2018 vests upon completionIn respectof fiveof theyearsplan,of thecontinuousmost recentserviceactuarialand oncevaluationvested ofit isthepayableplan assetsto employeesand the onpresentretirementvalue orof ontheterminationdefined benefitof employment.obligation wereIn casecarriedof out as at 31 death whileIncludedin service, under "Salariesthe gratuity & Wages"is payable (Referirrespective Note of vesting. The Company makes annual contribution to the group gratuity scheme administered by the March 2019 by Mr. Arunachalam Rajaraman, Fellow of the 138.83Institute of Actuaries of 101.36India. The present value of the defined benefit obligation, and the related The LifeCompany Insurance28) Corporationcurrent operates service of India. cost and a paidgratuity service cost, planwere measured covering using the projectedqualifying unit cost credit employees. method. The benefit payable (a) Amount recognised in the statement of profit & loss in respect of the defined benefit plan are as follows : In respect of the plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at 31 is calculated as per the Payment of Gratuity Act, 1972 and the benefit(Amount Rs. vestsin Lakhs) upon (Amountcompletion Rs. in Lakhs) March 2019 by Mr. Arunachalam Rajaraman, Fellow of the InstituteAs atof Actuaries of India. TheAs atpresent value of the definedAs at benefit obligation, and the related Particulars For the year ended For the year ended current service cost and paid service cost, were measured usingParticulars31 March the projected 2019 unit cost31 credit March method. 2018 1 April 2017 of five years of continuous service and once vested it is payable to employees31 March 2019 on retirement31 March 2018 (a) Amount(b) Net recognised asset / (liability) in the statement recognised of inprofit the & loss in respect of the defined benefit plan are as follows : 498.64 430.96 381.61 BalanceAmounts Sheet recognised in statement of Profit & Loss in respect of these defined benefit plans (Amount Rs. in Lakhs) or on terminationare as follows: of employment. In case of death while in service, the gratuity is payable Current portion of the above 323.02 293.30For the year ended 262.11 For the year ended Particulars 31 March 2019 31 March 2018 irrespectiveNon - current ofService vesting. portion Cost of the Theabove Company makes annual175.62 contribution 137.66 to the group 119.50 gratuity scheme Amounts recognised- Current in statement Service Cost of Profit & Loss in respect of these defined benefit plans 152.05 139.91 are as follows: - Past Service Cost - 9.86 administeredThe Key Assumptions by- Net theinterest used Life expense in the Insurance computation of provision Corporation for compensated of absences India. are as given below: (5.90) (2.44) Service Cost Components of defined benefit costs recognisedAs inat statement of profitAs or atloss (A) As at 146.15 147.33 - Current Service CostParticulars 152.05 139.91 - Past Service Cost 31 March 2019 31 March 2018 1 April 2017- 9.86 In respect- NetDiscount interest ofActuarial Rate expensethe (% plan,(gain)/lossp.a) the on Plan most Obligations recent actuarial7.35% valuation of7.60% the plan (5.90) assets 6.75% and 35.36 the (2.44) present 58.09 Difference between Actual Return and Interest Income on Plan Assets- (gain)/loss (2.65) (24.53) ComponentsFuture Salary of defined Increase benefit (% p.a) costs recognised in statement of profit10.00% or loss (A) 10.00% 146.1510.00% 147.33 value of the definedComponents ofbenefit defined benefit obligation costs recognised were in other carried comprehensive out as income at 31 (B) March 2019 by (32.71) Mr. Arunachalam (33.56) Attrition Rate 16.00% 16.00% 16.00% Actuarial (gain)/loss on Plan Obligations 35.36 58.09 Rajaraman,Difference between FellowTotal Actual Returnof the and InstituteInterest Income of on PlanActuaries Assets- (gain)/loss of India. The present value (2.65) of the 113.44 defined (24.53) benefit 113.77 33.3 Defined Benefit Plans: Components of defined benefit costs recognised in other comprehensive income (B) (32.71) (33.56) obligation,The Company and(i) The operatesthe current related servicea gratuity cost plancurrent andcovering interest qualifyingexpenseservice foremployees. the cost year areTheand includedbenefit paid inpayable the service Noteis calculated 28 - Employee cost,as per Benefit werethe Payment Expenses measuredof Gratuityin the statementAct, using1972 ofand profit the & benefitloss under the Total vests uponlinecompletion contributionof tofive providentyears of andcontinuous other funds.service and once vested it is payable to employees on retirement 113.44or on termination of employment. 113.77 In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the (ii) The remeasurement of the net defined benefit liability is included in other comprehensive income. projectedLife unitInsurance cost Corporation credit of India. method. (i) The current service cost and interest expense for the year are included in the Note 28 - Employee Benefit Expenses in the statement of profit & loss under the line(a) contributionIn Amountrespect toof providentthe plan,recognised andthe othermost funds.recent inactuarial the valuationstatementof the plan ofassets profitand the present& lossvalue inof respectthe defined benefit of theobligation definedwere carried benefitout as at 31 (ii) TheMarch remeasurement2019 by Mr. of Arunachalamthe net definedRajaraman, benefit liabilityFellow is ofincludedthe Institute in otherof comprehensiveActuaries of India. income.The present value of the defined benefit obligation, and the related currentplan service are cost as and follows paid service cost,: were measured using the projected unit cost credit method. (a) Amount recognised in the statement of profit & loss in respect of the defined benefit plan are as follows : (Amount Rs. in Lakhs) For the year ended For the year ended Particulars 31 March 2019 31 March 2018 Amounts recognised in statement of Profit & Loss in respect of these defined benefit plans are as follows:
Service Cost - Current Service Cost 152.05 139.91 - Past Service Cost - 9.86 - Net interest expense (5.90) (2.44) Components of defined benefit costs recognised in statement of profit or loss (A) 146.15 147.33
Actuarial (gain)/loss on Plan Obligations 35.36 58.09 Difference between Actual Return and Interest Income on Plan Assets- (gain)/loss (2.65) (24.53)
Components of defined benefit costs recognised in other comprehensive income (B) (32.71) (33.56)
Total 113.44 113.77
(i) The current service cost and interest expense for the year are included in the Note 28 - Employee Benefit Expenses in the statement of profit & loss under the line contribution to provident and other funds. (i) The(ii) The currentremeasurement service of the net definedcost benefit and liability interest is included expense in other comprehensive for the income. year are included in the Note 28 - Employee Benefit Expenses in the statement of profit & loss under the line contribution to provident and other funds.
(ii) The remeasurement of the net defined benefit liability is included in other comprehensive income. 117 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
Asirvad Microfinance Limited Notes(b) forming The partamount of the Financial included Statements in thefor the balance year ended sheet 31 March arising 2019 from the entity's obligation in respect of Asirvad Microfinance Limited Notes forming(b)defined The partamount of the includedbenefit Financial in the Statements plan balance is sheetforas thefollows arising year endedfrom : the 31 entity'sMarch 2019 obligation in respect of defined benefit plan is as follows : (b) The amount included in the balance sheet arising from the entity's obligation in respect of defined benefit plan is(Amount as follows Rs. : in Lakhs) Asirvad Microfinance Limited As at As at As at Particulars (Amount Rs. in Lakhs) Notes forming part of the Financial Statements for the year ended 31 March 201931 March 2019 31 March 2018 1 April 2017 As at As at As at I. Net Asset/(Liability) recognisedParticulars in the Balance Sheet 31 March 2019 31 March 2018 1 April 2017 (b)Present The amountvalue of definedincluded benefit in the obligation balance sheet arising from the entity's obligation in respect385.30 of defined benefit 265.25 plan is as follows : 167.44 I. Net Asset/(Liability) recognised in the Balance Sheet Asirvad MicrofinanceFair value of plan Limited assets 399.30 291.61 94.77 Present value of defined benefit obligation 385.30 265.25 (Amount Rs. in167.44 Lakhs) Notes formingNet Asset/(Liability) part of the Financial recognised Statements in the Balance for Sheet the year ended 31 March 2019 14.00 26.36 (72.67) Fair value of plan assets As at 399.30 As at 291.61 As at 94.77 Current portion of the above Particulars - - - (b)Net The Asset/(Liability) amount included recognised in the in balancethe Balance sheet Sheet arising from the entity's obligation 31 March in 2019 respect 14.00 of defined 31 March benefit 2018 26.36 plan is as follows 1 April : 2017 (72.67) Non current portion of the above 14.00 26.36 72.67 I.Current Net Asset/(Liability) portion of the above recognised in the Balance Sheet - - - (Amount Rs. in Lakhs) PresentNon(c) currentMovement value portion of defined in theof the presentbenefit above obligation value of the defined benefit obligation are as follows : 385.3014.00 26.36265.25 72.67 167.44 As at As at As at (c)Fair Movement value of plan assets in theParticulars present value of the defined benefit 399.30 obligation are 291.61 as (Amountfollows Rs. : in Lakhs) 94.77 (c) Movement in the present value of the defined benefit obligation are as31 follows March :2019 For31 the March year ended2018 For the1 April year 2017ended Net Asset/(Liability) recognised in the BalanceParticulars Sheet 14.00 26.36 (72.67) I. Net Asset/(Liability) recognised in the Balance Sheet 31 March 2019 (Amount31 March Rs. 2018in Lakhs) Current portion of the above - - - PresentChange value in ofthe defined obligation benefit during obligation the year ended 385.30 For the year ended 265.25 For the year ended 167.44 Non current portion of the above Particulars 14.00 26.36 72.67 Fair value of plan assets 399.30 31 March 2019 291.61 31 March 2018 94.77 ChangePresent invalue the of obligation defined benefit during obligation the year at endedthe beginning of the year 265.25 167.44 Net(c)Expenses Asset/(Liability) Movement Recognised in therecognised inpresent Profit inand value the Loss Balance of Account the Sheetdefined benefit obligation are as follows : 14.00 26.36 (72.67) CurrentPresent - portionCurrent value ofService thedefined above Cost benefit obligation at the beginning of the year - 265.25152.05 - (Amount Rs. in139.91 167.44 Lakhs) - Expenses - Past Recognised Service Cost in Profit and Loss Account For the year ended - For the year ended 9.86 Non current portion of the above Particulars 14.00 26.36 72.67 - - Current Interest Service Expense Cost (Income) 31 March 2019152.05 19.72 31 March 2018139.91 11.93 Remeasurement gains / (losses) (c)Change Movement - Past in Service the in obligation the Cost present during value the of year the definedended benefit obligation are as follows : - 9.86 - Effect of Changes in Financial Assumptions 4.57 (8.03) - Interest Expense (Income) 19.72 (Amount Rs. in 11.93 Lakhs) Remeasurement - Effect of Experience gains /Adjustments (losses) (39.93) (50.06) Present value of defined benefit obligation at the beginning of the year For the year ended 265.25 For the year ended 167.44 -Benefit Effect paymentsof Changes in Financial AssumptionsParticulars (16.36) 4.57 (5.80)(8.03) Expenses Recognised in Profit and Loss Account 31 March 2019 31 March 2018 - Effect- Current of Experience Service Cost Adjustments (39.93) 152.05 (50.06) 139.91 ChangePresent in thevalue obligation of defined during benefit the obligation year ended at the end of the year 385.30 265.25 Benefit - Past payments Service Cost (16.36) - (5.80) 9.86 - Interest Expense (Income) 19.72 11.93 PresentPresent(i) The value weighted value of defined of average defined benefit duration benefit obligation of obligation the atbenefit the atbeginning obligation the end ofatof the 31the Marchyear year 2019 is 11.059 years (As at 31 March 2018 is 11.16 385.30 265.25 years). 265.25 167.44 ExpensesRemeasurement Recognised gains in /Profit (losses) and Loss Account - Effect of Changes in Financial Assumptions 4.57 (8.03) (d)- Current Movement Service in Costfair value of plan assets are as follows : 152.05 139.91 -(i) Effect The weightedof Experience average Adjustments duration of the benefit obligation at 31 March 2019 is 11.059 years (As at 31 March 2018 is 11.16 (39.93) years). (50.06) - Past Service Cost - (Amount Rs. in Lakhs) 9.86 Benefit(i) The payments weighted average duration of the benefit obligation at 31 March (16.36) 2019 is 11.059 (5.80)years (d) - Interest Movement Expense in fair (Income) value of plan assets are as follows : For the year ended 19.72 For the year ended 11.93 Remeasurement gains / (losses) Particulars 31 March 2019 (Amount31 March Rs. 2018in Lakhs) -Present Effect(As of valueChanges at of 31 definedin FinancialMarch benefit Assumptions 2018 obligation is 11.16 at the end years). of the year 385.30 4.57 265.25 (8.03) For the year ended For the year ended - EffectChange of Experiencein fair value Adjustments of assets during theParticulars year (39.93) (50.06) 31 March 2019 31 March 2018 Benefit(i)Fair The valuepayments weighted of plan average assets durationat the beginning of the benefit of the yearobligation at 31 March 2019 is 11.059 years (As at 31 March 2018 is 291.61 11.16 (16.36) years). 94.77 (5.80) ChangeExpenses in Recognised fair value inof Profitassets and during Loss Account the year (d)(d) Movement Movement in fair value in offair plan value assets are of as plan follows assets : are as follows : PresentFair value value of plan of defined assets at benefit the beginning obligation of the at year the end of the year 291.61 385.30 94.77265.25 - Expected return on plan assets 25.62 (Amount Rs. in 14.37 Lakhs) ExpensesRemeasurement Recognised gains in / Profit (losses) and Loss Account (i) The weighted average duration of the benefit obligation at 31 March 2019 is 11.059 years (As at 31 MarchFor the 2018 year is 11.16 ended years). For the year ended -- ExpectedActuarial gains/(loss)return on plan arising assets form changesParticulars in financial assumptions 25.62(2.65) (24.53) 14.37 31 March 2019 31 March 2018 RemeasurementContributions by gains employer / (losses) (including benefit payments recoverable) 101.08 212.80 (d)Change Movement in fair in value fair valueof assets of plan during assets the areyear as follows : Benefit- Actuarial payments gains/(loss) arising form changes in financial assumptions (16.36) (2.65) (Amount Rs. in (24.53) (5.80) Lakhs) FairContributions value of plan by employerassets at (includingthe beginning benefit of thepayments year recoverable) 101.08 291.61 212.80 94.77 Fair value of plan assets at the end of the year For the year 399.30 ended For the year 291.61 ended ExpensesBenefit payments Recognised in Profit and Loss AccountParticulars (16.36) (5.80) 31 March 2019 31 March 2018 - Expected return on plan assets 25.62 14.37 ChangeFair(e) valueThe in fair of valueplan assets ofof planassets at assets the during end for of theIndia the year yearat the end of the reporting year for each category are as follows : 399.30 291.61 Remeasurement gains / (losses) (Amount Rs. in Lakhs) Fair value of plan assets at the beginning of the year 291.61 94.77 (e)- Actuarial The fair gains/(loss) value of plan arising assets form for changes India atin financialthe end ofassumptions the reporting year for eachAs at category are as follows As at : (2.65) As at (24.53) Expenses Recognised in Profit andParticulars Loss Account Contributions by employer (including benefit payments recoverable) 31 March 2019 31 March 2018 101.08 (Amount 1 April Rs. 2017 in Lakhs) 212.80 - Expected return on plan assets 25.62 14.37 BenefitInvestment payments Funds with Insurance Company As at 399.30 As at 291.61 (16.36) As at 94.77 (5.80) Remeasurement gains / (losses) Particulars - Life Insurance Corporation of India 31 March 2019 31 March 2018 1 April 2017 -Fair Actuarial value gains/(loss)of plan assets arising at theform end changes of the in year financial assumptions 399.30 (2.65) 291.61 (24.53) Investment Funds with Insurance Company 399.30 291.61 94.77 Contributions by employer (including benefit payments recoverable) 101.08 212.80 - (i)LifeThe Insuranceplan assets Corporationcomprise ofinsurer India managed funds. None of the assets carry a quoted market price in active market or represent the entity's own transferable Benefit(e) The payments fair value of plan assets for India at the end of the reporting year for each category are as follows : (16.36) (5.80) (e)financial The instruments fair value or property of occupied plan by theassets entity. for India at the end of the reporting (Amountyear Rs.for in Lakhs)each Fair(i)(ii) valueThe Theplan Actual of planassets return assetscomprise on planat theinsurer asset end formanaged of the the year yearfunds. ended None 31 Marchof the 2019assets wascarry Rs. 2.65a quoted LakhsAsmarket at( For the price year in endedactive 31market As March at or399.30 2018: represent Rs. 24.53 the entity's Lakhs). As at own 291.61 transferable Particulars financialcategory instruments are or property as follows occupied by the : entity. 31 March 2019 31 March 2018 1 April 2017 (e)Investment(ii)(f) The The The fair Actual principal valueFunds return ofwith assumptions planon Insurance plan assets asset Companyusedfor for Indiathe for year the at endedpurposethe end 31 ofMarch actuarialthe 2019reporting wasvaluation Rs. year 2.65 were for Lakhs each as ( follows For category 399.30the :year are ended as follows 31 March : 291.612018: Rs. 24.53 Lakhs). 94.77 - Life Insurance Corporation of India (Amount Rs. in Lakhs) Investment Risk: As at As at As at (f) The principal assumptionsParticulars used for the purpose of actuarial valuation were as follows : 31 March 2019 31 March 2018 1 April 2017 (i)TheThepresentplan assetsvalue compriseof definedinsurerbenefitmanagedplan liabilityfunds.is calculatedNone of theusingassetsa discountcarry aratequotedwhichmarketis determinedprice in activeby referencemarket toortherepresentprevailingthemarketentity'syieldsown transferableof Indian InvestmentInvestment Funds Risk: with Insurance Company 399.30 291.61 94.77 financialgovernment instruments securities or asproperty at the balanceoccupied sheet by the date entity. for the estimated term of the obligations. - Life Insurance Corporation of India The present value of defined benefit plan liability is calculated using a discount rate which is determined by reference to the prevailing market yields of Indian (ii)Interest The Actual Risk: return on plan asset for the year ended 31 March 2019 was Rs. 2.65 Lakhs ( For the year ended 31 March 2018: Rs. 24.53 Lakhs). government securities as at the balance sheet date for the estimated term of the obligations. (i) TheA decreaseplan assets in thecomprise yield of Indianinsurer governmentmanaged funds.securitiesNone willof increasethe assets the plancarry liability.a quoted market price in active market or represent the entity's own transferable (f)Interest The principal Risk: assumptions used for the purpose of actuarial valuation were as follows : (i)financialLongevity The instruments plan Risk assets or property comprise occupied by the insurer entity. managed funds. None of the assets carry a quoted market A decrease in the yield of Indian government securities will increase the plan liability. (ii)Investment The Actual returnRisk: on plan asset for the year ended 31 March 2019 was Rs. 2.65 Lakhs ( For the year ended 31 March 2018: Rs. 24.53 Lakhs). LongevityThepricepresent Risk invalue activeof the defined marketbenefit planor liabilityrepresentis calculated theby referenceentity'sto theownbest estimatetransferableof the mortaility financialof plan participants instrumentsboth during and orafter Thetheirpresent employment.value of Andefined increasebenefit in the planlife expectancyliability is calculatedof the plan usingparticipantsa discount will increaserate which the isplan'sdetermined liability. by reference to the prevailing market yields of Indian (f) The principal assumptions used for the purpose of actuarial valuation were as follows : governmentThepropertypresent securitiesvalue ofoccupiedthe as atdefined the balancebenefit by sheet planthe liabilitydate entity. foris thecalculated estimatedby termreference of theto obligations.the best estimate of the mortaility of plan participants both during and after InvestmentInteresttheir employment. Risk: Risk: An increase in the life expectancy of the plan participants will increase the plan's liability. TheA decreasepresent valuein the ofyielddefined of Indianbenefit governmentplan liability securitiesis calculated will increaseusing thea discount plan liability.rate which is determined by reference to the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations. (ii)Longevity The ActualRisk return on plan asset for the year ended 31 March 2019 was Rs. 2.65 Lakhs ( For Interest Risk: Thethepresent yearvalue endedof the defined 31benefit Marchplan liability2018:is Rs.calculated 24.53by reference Lakhs).to the best estimate of the mortaility of plan participants both during and after A decrease in the yield of Indian government securities will increase the plan liability. their employment. An increase in the life expectancy of the plan participants will increase the plan's liability. Longevity Risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortaility of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability. 118 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 (f) The principal assumptions used for the purpose of actuarial valuation were as follows:
Investment Risk
The present value of defined benefit plan liability is calculated using a discount rate which is determined by reference to the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.
Interest Risk
A decrease in the yield of Indian government securities will increase the plan liability.
Longevity Risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortaility of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.
Salary Risk
The present value of the defined benefit plan liability is calculated by reference to the future Asirvad Microfinance Limited Notessalaries. forming part In of particular,the Financial Statements there is for a the risk year for ended the 31 CompanyMarch 2019 that any adverse salary growth can result
inSalary an Risk:increase in cost of providing these benefits to employees in future. The present value of the defined benefit plan liability is calculated by reference to the future salaries. In particular, there is a risk for the Company that any adverse salary growth can result in an increase in cost of providing these benefits to employees in future. TheThe principal principal assumptions assumptions used for the usedpurpose for of actuarial the purpose valuation wereof actuarial as follows : valuation were as follows
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Discount rate 7.50% 7.67% 7.67% Expected rate of salary increase 10.00% 10.00% 10.00% Withdrawal Rate 16.00% 16.00% 16.00% Mortality Indian Assured Lives Indian Assured Lives Indian Assured Lives (2006-2008) (2006-2008) (2006-2008)
1. The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligation. 1. The discount rate is based on the prevailing market yields of Indian Government securities 2. The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors. 3. Inasorder at tobalanceprotect the sheetcapital dateand optimize for thereturns estimatedwithin acceptable termrisk ofparameters, the obligation.the plan assets are maintained with an insurer managed fund (maintained by the Life Insurance Corporation ("LIC")) and is well diversed.
2.Sensitivity The estimates Analysis of future salary increases considered takes into account the inflation, seniority, The promotionbenefit obligation resultsand otherof a such relevanta scheme are factors.particularly sensitive to discount rate, longevity risk, salary growth and employee attrition, if the plan provision do provide for such increases on commencement of pension.
The following table summarizes the impact in financial terms on the reported defined benefit obligation at the end of the reporting period arising on account 3.changes In inorder these four to key protect parameters: the capital and optimize returns within acceptable risk parameters, the (Amount Rs. in Lakhs) plan assets are maintained with anAs insurerat managed As at fund (maintained As at by the Life Insurance Impact on the Defined benefit Obligation 31 March 2019 31 March 2018 1 April 2017 (a) DiscountCorporation Rate ("LIC")) and is well diversed. - Increase by 50 bps (13.18) (9.03) (11.38) Sensitivity- Decrease by 50 Analysis bps 14.02 9.60 12.92 (b) Salary Growth Rate - Increase by 50 bps 13.58 9.29 12.33 The- Decrease benefit by 50 bps obligation results of a such (12.90) a scheme are particularly (8.83) sensitive (11.13) to discount rate, longevity(c) Withdrawal risk, Rate salary growth and employee attrition, if the plan provision do provide for such - Increase by 50 bps (8.63) (6.15) (4.07) increases- Decrease by on 50 bps commencement of pension. 9.06 6.45 4.30 (d) Mortality Rate
- Increase by 50 bps (0.02) (0.01) (0.01) - Decrease by 50 bps 0.02119 0.01 0.01
These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There is no change in the methods and assumptions used in preparing the sensitivity analysis from the prior years. (h) Effect of Plan on Entity’s Future Cash Flows (i) The Company expects to make a contribution of Rs. 34.73 lakhs during the next financial year. (ii) The weighted average duration of the benefit obligation at 31 March 2019 is 11.059 years (As at 31 March 2018 is 11.16 years). (iii) Maturity profile of defined benefit obligation:
Expected cash flows over the next (valued Amount in Rs. Lakhs on undiscounted basis): Within 1 year 34.73 2 to 5 years 160.58 More than 5 years 209.07
(i) Experience Adjustments * (Amount Rs. in Lakhs) For the year ended For the year ended For the year ended Experience Adjustments 31 March 2019 31 March 2018 31 March 2017 Defined Benefit Obligation 385.30 265.25 167.44 Fair value of plan assets 399.30 291.61 94.77 Surplus/(Deficit) 14.00 26.36 (72.67) Experience adjustment on plan liabilities [(Gain)/Loss] (35.36) (58.09) (3.52) Experience adjustment on plan assets [Gain/(Loss)] (2.65) (24.53) 0.87
* Experience adjustments related to prior years have been disclosed based on the information to the extent available. Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
Salary Risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries. In particular, there is a risk for the Company that any adverse salary growth can result in an increase in cost of providing these benefits to employees in future. The principal assumptions used for the purpose of actuarial valuation were as follows :
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Discount rate 7.50% 7.67% 7.67% Expected rate of salary increase 10.00% 10.00% 10.00% Withdrawal Rate 16.00% 16.00% 16.00% Mortality Indian Assured Lives Indian Assured Lives Indian Assured Lives (2006-2008) (2006-2008) (2006-2008)
1. The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligation.
th 122. The Annual estimates Report of future 2018-19 salary increases considered takes into account the inflation, seniority, promotion and other relevant factors. Asirvad3. In order Microfinanceto protect Limitedthe capital and optimize returns within acceptable risk parameters, the plan assets are maintained with an insurer managed fund Notes(maintained forming by part the Lifeof the Insurance Financial Corporation Statements ("LIC")) for the and year is wellend eddiversed. 31 March 2019 Sensitivity AnalysisAsirvad Microfinance Limited The following tableNotes formingsummarizes part of thethe Financial impact Statements in financial for the terms year endedon the 31 reported March 2019 defined benefit The benefit obligation results of a such a scheme are particularly sensitive to discount rate, longevity risk, salary growth and employee attrition, if the plan obligationprovision do provide at the for end suchSalary ofincreases the Risk: reporting on commencement period of pension.arising on account of changes in these four key
parameters:The following table summarizesThe presentthe impactvalueinoffinancialthe definedtermsbenefiton theplanreportedliabilitydefinedis calculatedbenefitbyobligationreferenceat tothetheendfutureof thesalaries.reportingIn particular,period arisingthereonisaccounta risk for the Company that any changes in these four key parameters:adverse salary growth can result in an increase in cost of providing these benefits to employees in future. The principal assumptions used for the purpose of actuarial valuation(Amount were as Rs. follows in Lakhs) : As at As at As at Impact on the Defined benefit Obligation 31 March 2019 31 March 2018 1 AprilAs at2017 As at As at Particulars (a) Discount Rate 31 March 2019 31 March 2018 1 April 2017 - Increase by 50 bps Discount rate (13.18) (9.03) (11.38)7.50% 7.67% 7.67% - Decrease by 50 bps Expected rate of salary increase 14.02 9.60 10.00% 12.92 10.00% 10.00% Withdrawal Rate 16.00% 16.00% 16.00% (b) Salary Growth Rate Mortality Indian Assured Lives Indian Assured Lives Indian Assured Lives - Increase by 50 bps 13.58 9.29 (2006-2008) 12.33 (2006-2008) (2006-2008) - Decrease by 50 bps (12.90) (8.83) (11.13) 1. The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligation. (c) Withdrawal Rate
- Increase by 50 bps 2. The estimates of future salary increases (8.63) considered takes into account (6.15) the inflation, seniority, (4.07) promotion and other relevant factors. 9.06 6.45 4.30 - Decrease by 50 bps 3. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are maintained with an insurer managed fund (d) Mortality Rate (maintained by the Life Insurance Corporation ("LIC")) and is well diversed.
- Increase by 50 bps Sensitivity Analysis (0.02) (0.01) (0.01) - Decrease by 50 bps 0.02 0.01 0.01 The benefit obligation results of a such a scheme are particularly sensitive to discount rate, longevity risk, salary growth and employee attrition, if the plan These sensitivities have beenprovisioncalculated do provideto show for thesuchmovement increases onin definedcommencementbenefit obligationof pension.in isolation and assuming there are no other changes in market conditions at the accounting date. The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations as it Theseis unlikely sensitivities that the change have Thein assumptionsfollowing been calculatedtable wouldsummarizes occur into isolation showthe impact of the onein movementanotherfinancial asterms some in onof defined thethe assumptionsreported benefitdefined may bebenefit obligation correlated.obligation at the end of the reporting period arising on account changes in these four key parameters: inFurthermore isolationin andpresenting assumingthe above theresensitivity are noanalysis otherthe changespresent value in marketof defined conditionsbenefit obligation at thehas accountingbeen calculated (Amountusing the Rs.projected in Lakhs)unit credit method at the end of the reporting period which is the same as that applied in calculatingAs at the defined benefit obligation As at liability recognised inAs the at balance sheet. date. The sensitivity analysisImpact on presentedthe Defined benefitabove Obligation may not be representative of the actual change 31 March 2019 31 March 2018 1 April 2017 There is no change in the methods and assumptions used in preparing the sensitivity analysis from the prior years. in(h) the Effect defined of Plan onbenefit Entity’s(a) Discount Futureobligations Cash Rate Flows as it is unlikely that the change in assumptions would occur - Increase by 50 bps (13.18) (9.03) (11.38) in(i) isolationThe Company of expects one another to make a ascontribution some of of theRs. 34.73 assumptions lakhs during maythe next be financial correlated. year. - Decrease by 50 bps 14.02 9.60 12.92 (ii) The weighted average duration of the benefit obligation at 31 March 2019 is 11.059 years (As at 31 March 2018 is 11.16 years). Furthermore(iii) Maturity profile in of presenting defined(b) benefitSalary the obligation:Growth above Rate sensitivity analysis the present value of defined benefit - Increase by 50 bps 13.58 9.29 12.33 obligationExpected cash has flows been over calculated- theDecrease next (valuedby using50 bps the projected unit cost credit method (12.90) at the end of (8.83) the (11.13) Amount in Rs. Lakhs on undiscounted basis): reporting period which(c) Withdrawal is the same Rate as that applied in calculating the defined benefit obligation Within 1 year 34.73 liability2 to 5 years recognised in- Increasethe balance by 50 bps sheet. 160.58 (8.63) (6.15) (4.07) More than 5 years - Decrease by 50 bps 209.07 9.06 6.45 4.30 There(i) Experience is no change Adjustments in(d) the Mortality* methods Rate and assumptions used in preparing the sensitivity analysis (Amount Rs. in Lakhs) - Increase by 50 bps For the year ended (0.02) For the year ended (0.01) For the year ended (0.01) from the prior years.Experience Adjustments - Decrease by 50 bps 31 March 2019 0.02 31 March 2018 0.01 31 March 2017 0.01 Defined Benefit Obligation 385.30 265.25 167.44 (h)Fair valueEffect of planof Planassets onThese Entity’ssensitivities Futurehave Cashbeen calculated Flows to show the movement in 399.30defined benefit obligation 291.61in isolation and assuming 94.77there are no other changes in market Surplus/(Deficit) conditions at the accounting date. The sensitivity analysis presented 14.00above may not be representative 26.36 of the actual change (72.67)in the defined benefit obligations as it Experience adjustment on isplan unlikely liabilities that [(Gain)/Loss] the change in assumptions would occur in isolation of (35.36) one another as some of (58.09)the assumptions may be correlated. (3.52) Experience(i) The adjustment Company on plan expects assets [Gain/(Loss)] to make a contribution of Rs. 34.73 lakhs during (2.65) the next financial (24.53) 0.87 Furthermore in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit * Experience adjustments related to prior years have been disclosed based on the information to the extent available. year. method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There is no change in the methods and assumptions used in preparing the sensitivity analysis from the prior years. (ii) The weighted(h) averageEffect of Plan duration on Entity’s of Futurethe benefit Cash Flows obligation at 31 March 2019 is 11.059 years (As at 31(i) TheMarch Company 2018 expects is 11.16 to make years). a contribution of Rs. 34.73 lakhs during the next financial year. (ii) The weighted average duration of the benefit obligation at 31 March 2019 is 11.059 years (As at 31 March 2018 is 11.16 years). (iii) Maturity profile(iii) Maturity of defined profile of defined benefit benefit obligation: obligation:
Expected cash flows over the next (valued Amount in Rs. Lakhs on undiscounted basis): Within 1 year 34.73 2 to 5 years 160.58 More than 5 years 209.07 (i) Experience Adjustments * 120 (Amount Rs. in Lakhs) For the year ended For the year ended For the year ended Experience Adjustments 31 March 2019 31 March 2018 31 March 2017 Defined Benefit Obligation 385.30 265.25 167.44 Fair value of plan assets 399.30 291.61 94.77 Surplus/(Deficit) 14.00 26.36 (72.67) Experience adjustment on plan liabilities [(Gain)/Loss] (35.36) (58.09) (3.52) Experience adjustment on plan assets [Gain/(Loss)] (2.65) (24.53) 0.87
* Experience adjustments related to prior years have been disclosed based on the information to the extent available. Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
Salary Risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries. In particular, there is a risk for the Company that any adverse salary growth can result in an increase in cost of providing these benefits to employees in future. The principal assumptions used for the purpose of actuarial valuation were as follows :
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Discount rate 7.50% 7.67% 7.67% Expected rate of salary increase 10.00% 10.00% 10.00% Withdrawal Rate 16.00% 16.00% 16.00% Mortality Indian Assured Lives Indian Assured Lives Indian Assured Lives (2006-2008) (2006-2008) (2006-2008)
1. The discount rate is based on the prevailing market yields of Indian Government securities as at balance sheet date for the estimated term of the obligation.
2. The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors. 3. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are maintained with an insurer managed fund (maintained by the Life Insurance Corporation ("LIC")) and is well diversed.
Sensitivity Analysis
The benefit obligation results of a such a scheme are particularly sensitive to discount rate, longevity risk, salary growth and employee attrition, if the plan provision do provide for such increases on commencement of pension.
The following table summarizes the impact in financial terms on the reported defined benefit obligation at the end of the reporting period arising on account changes in these four key parameters: (Amount Rs. in Lakhs) As at As at As at Impact on the Defined benefit Obligation 31 March 2019 31 March 2018 1 April 2017 (a) Discount Rate - Increase by 50 bps (13.18) (9.03) (11.38) - Decrease by 50 bps 14.02 9.60 12.92
(b) Salary Growth Rate - Increase by 50 bps 13.58 9.29 12.33 - Decrease by 50 bps (12.90) (8.83) (11.13)
(c) Withdrawal Rate
- Increase by 50 bps (8.63) (6.15) (4.07) - Decrease by 50 bps 9.06 6.45 4.30
(d) Mortality Rate
- Increase by 50 bps (0.02) (0.01) (0.01) - Decrease by 50 bps 0.02 0.01 0.01
These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There is no change in the methods and assumptions used in preparing the sensitivity analysis from the prior years. (h) Effect of Plan on Entity’s Future Cash Flows (i) The Company expects to make a contribution of Rs. 34.73 lakhs during the next financial year. (ii) The weighted average duration of the benefit obligation at 31 March 2019 is 11.059 years (As at 31 March 2018 is 11.16 years). (iii) Maturity profile of defined benefit obligation:
Expected cash flows over the next (valued th Amount in Rs. Lakhs 12 Annual Report 2018-19 on undiscounted basis): AsirvadWithin 1 year Microfinance Limited 34.73 Notes2 to 5 years forming part of the Financial Statements for the 160.58 year ended 31 March 2019 More than 5 years 209.07 (i)(i) Experience Experience Adjustments Adjustments * * (Amount Rs. in Lakhs) For the year ended For the year ended For the year ended Experience Adjustments 31 March 2019 31 March 2018 31 March 2017 Defined Benefit Obligation 385.30 265.25 167.44 AsirvadFair value Microfinance of plan assets Limited 399.30 291.61 94.77 NotesSurplus/(Deficit) forming part of the financial statements for the year ended 31 March 2019 14.00 26.36 (72.67) Experience adjustment on plan liabilities [(Gain)/Loss] (35.36) (58.09) (3.52) 34ExperienceRelated adjustment Party onTransactions plan assets [Gain/(Loss)] (2.65) (24.53) 0.87
34.1** Experience ExperienceNames adjustmentsadjustments of Related related related Parties to toprior and prior years Nature years have have ofbeen Relationship been disclosed disclosed based based on the on information the information to the extent to the available. extent available.
Asirvad MicrofinanceDescription Limited of Relationship As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Notes34. formingRelated part of Partythe financial Transactions statements for the year ended 31 March 2019
34 Related Party Transactions Mr. S V Raja Vaidyanathan Mr. S V Raja Vaidyanathan Mr. S V Raja Vaidyanathan 34.1 Names of Related PartiesManaging and Director Nature of RelationshipManaging Director Managing Director 34.1 Names of Related Parties and Nature of Relationship Mr. Mayank Shyam Thatte Mr. Mayank Shyam Thatte Chief Financial Officer Mr. R. Govindarajan Description of Relationship ChiefAs at 31Financial March 2019 Officer As at 31(From March 06.02.2018) 2018 As at 1 April 2017 Chief Financial Officer Mr. S V Raja Vaidyanathan Mr. S V Raja Vaidyanathan Mr. S V Raja Vaidyanathan Managing Director Managing Director Mr. Ramachandran S Managing Director Ms. S.Simi Chief Financial Officer (From 07.08.2017 to Company Secretary Key Management PersonnelMr. of Mayankthe Shyam Thatte Mr. Mayank Shyam Thatte Chief Financial Officer Mr. R. Govindarajan Company and Holding CompanyChief Financial Officer (From 06.02.2018) 06.02.2018) Chief Financial Officer Ms. S.Simi, Company SecretaryMr. Ramachandran S Mr. R. Govindarajan Ms. S.Simi Key Management Personnel of the (From 01.04.2018 till 29.10.2018)Chief Financial Officer Chief(From 07.08.2017Financial Officerto (TillCompany 05.08.2017) Secretary Company and Holding Company 06.02.2018) Ms. S.Simi, Company Secretary Mr. R. Govindarajan (From 01.04.2018Mr. Anup till 29.10.2018)Kumar Gupta, Chief Financial Officer Ms.(Till 05.08.2017)S.Simi Company Secretary (from 03.11.2018) Company Secretary Mr. Anup Kumar Gupta, Ms. S.Simi Company Secretary (from 03.11.2018) Company Secretary Mr. V P Nandakumar - Managing Director & Mr. V P Nandakumar - Managing Director & CEO of Mr. V P Nandakumar - Managing Mr. V P NandakumarCEO of the - Managing Holding Director Company & Mr. V P Nandakumar -the Managing Holding Director Company & CEO of Mr. V P Nandakumar - Managing Director & CEO of the Holding CEO of the Holding Company the Holding Company Director & CEO of the Holding Company Company Mrs. BindhuMrs. AL -Bindhu Chief Financial AL - ChiefOfficer Financialof Mrs. Bindhu Officer AL of- Chief Mrs. Financial Bindhu Officer AL of -the Chief FinancialMrs. Bindhu Officer AL - Chief of theFinancial Mrs. Bindhu AL - Chief Financial the Holdingthe Company Holding Company Holding Company Holding Company Officer of the Holding Company Officer of the Holding Company Holding Company Manappuram Finance Limited Manappuram Finance Limited Manappuram Finance Limited Holding Company Manappuram Finance Limited Manappuram Finance Limited Manappuram Finance Limited Entity over which Key Managerial Asirvad Development Foundation Asirvad Development Foundation Asirvad Development Foundation Personnal has Significant InfluenceEntity over which Key Managerial Asirvad Development Foundation Asirvad Development Foundation Asirvad Development Foundation Personnal has Significant Note: Related party relationships are as identified by the Management. Influence Note: Related party relationships are as identified by the Management. 34.2 Transactions with the Related Parties Note: Related party relationships are as identified by the Management. (Amount Rs.in Lakhs) For the Year Ended For the Year Ended 34.2 TransactionsTransaction with theRelated Related Party Parties 34.2 Transactions with the Related Parties 31 March 2019 31 March 2018 Remuneration to Key Managerial Mr. S V Raja Vaidyanathan 291.72 219.00 (Amount Rs.in Lakhs) Personnel Managing Director For the Year Ended For the Year Ended Transaction Mr. Mayank Shyam Thatte, ChiefRelated Financial Party 62.02 7.27 Officer 31 March 2019 31 March 2018 Mr. Ramachandran S, - 23.23 Remuneration to Key ManagerialChief Financial Mr. Officer(S V Raja Till 06.02.2018)Vaidyanathan 291.72 219.00 Personnel Mr. R. Govindarajan,Managing Director - 11.46 Chief Financial Officer (Till 05.08.2017) Ms. S.Simi,Mr. Company Mayank Secretary Shyam Thatte, (Till Chief Financial 8.87 62.02 9.93 7.27 29.10.2018)Officer 5.50 - Mr. Anup KumarMr. Ramachandran Gupta, S, - 23.23 Company SecretaryChief Financial (from 03.11.2018) Officer( Till 06.02.2018) Donation Asirvad DevelopmentMr. R. Govindarajan, Foundation 25.77 - 69.50 11.46 ManappuramChief Finance Financial Limited Officer (Till 05.08.2017) 36,204.74 4,998.51 Mr. S V RajaMs. Vaidyanathan S.Simi, Company Secretary (Till 709.63 489.95 8.87 9.93 Issue of Rights Share (Including Managing Director Securities Premium) 29.10.2018) Mr. V P Nandakumar - Managing Director & 73.13 19.72 5.50 - CEO of theMr. Holding Anup Company Kumar Gupta, Company Secretary (from 03.11.2018) Donation Asirvad Development Foundation 25.77 (Amount Rs.in Lakhs) 69.50 As at As at As at Transaction Related Party Manappuram Finance Limited 31 March 2019 31 March 36,204.74 2018 1 April 2017 4,998.51 Balance as at Year End Mr. S V Raja Vaidyanathan 709.63 489.95 OtherIssue Receivable of Rights Share (IncludingManappuram Finance Limited - 35.88 35.88 Managing Director DonationSecurities Payable Premium) Asirvad Development Foundation - - 20.00 Note: Mr. V P Nandakumar - Managing Director & 73.13 19.72 (a) The Company accounts for costs incurredCEOby / onof behalfthe Holdingof the Related CompanyParties based on the actual invoices / debit notes raised and accruals as confirmed by such related parties. The Related Parties have confirmed to the Management that as at 31 March 2019 , 31 March 2018 and 1 April 2017 there are no further amounts payable to / receivable from them, other than as disclosed above. (b) The Related Parties have confirmed to the Management that as at 31 March1212019, 31 March 2018 and 1 April 2017 there are no further amounts payable to / receivable from them, other than as disclosed above. (Amount Rs.in Lakhs) (c) The above compensation to key management personnel excludes gratuity and compensated absences which Ascannot at be separately identified Asfrom at the composite As at amount advisedTransaction by the actuary. Related Party 31 March 2019 31 March 2018 1 April 2017
Balance as at Year End Other Receivable Manappuram Finance Limited - 35.88 35.88 Donation Payable Asirvad Development Foundation - - 20.00
Note: (a) The Company accounts for costs incurred by / on behalf of the Related Parties based on the actual invoices / debit notes raised and accruals as confirmed by such related parties. The Related Parties have confirmed to the Management that as at 31 March 2019 , 31 March 2018 and 1 April 2017 there are no further amounts payable to / receivable from them, other than as disclosed above. (b) The Related Parties have confirmed to the Management that as at 31 March 2019, 31 March 2018 and 1 April 2017 there are no further amounts payable to / receivable from them, other than as disclosed above. (c) The above compensation to key management personnel excludes gratuity and compensated absences which cannot be separately identified from the composite amount advised by the actuary. Asirvad Microfinance Limited Notes forming part of the financial statements for the year ended 31 March 2019
34 Related Party Transactions
34.1 Names of Related Parties and Nature of Relationship
Description of Relationship As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Mr. S V Raja Vaidyanathan Mr. S V Raja Vaidyanathan Mr. S V Raja Vaidyanathan Managing Director Managing Director Managing Director Mr. Mayank Shyam Thatte Mr. Mayank Shyam Thatte Chief Financial Officer Mr. R. Govindarajan Chief Financial Officer (From 06.02.2018) Chief Financial Officer Mr. Ramachandran S Ms. S.Simi Key Management Personnel of the Chief Financial Officer (From 07.08.2017 to Company Secretary Company and Holding Company 06.02.2018) Ms. S.Simi, Company Secretary Mr. R. Govindarajan (From 01.04.2018 till 29.10.2018) Chief Financial Officer (Till 05.08.2017)
Mr. Anup Kumar Gupta, Ms. S.Simi Company Secretary (from 03.11.2018) Company Secretary
Mr. V P Nandakumar - Managing Director & Mr. V P Nandakumar - Managing Director & CEO of Mr. V P Nandakumar - Managing CEO of the Holding Company the Holding Company Director & CEO of the Holding Company Mrs. Bindhu AL - Chief Financial Officer of Mrs. Bindhu AL - Chief Financial Officer of the Mrs. Bindhu AL - Chief Financial the Holding Company Holding Company Officer of the Holding Company Holding Company Manappuram Finance Limited Manappuram Finance Limited Manappuram Finance Limited
Entity over which Key Managerial Asirvad Development Foundation Asirvad Development Foundation Asirvad Development Foundation Personnal has Significant Influence
Note: Related party relationships are as identified by the Management.
34.2 Transactions with the Related Parties (Amount Rs.in Lakhs) For the Year Ended For the Year Ended Transaction Related Party 31 March 2019 31 March 2018
Remuneration to Key Managerial Mr. S V Raja Vaidyanathan 291.72 219.00 Personnel Managing Director Mr. Mayank Shyam Thatte, Chief Financial 62.02 7.27 Officer Mr. Ramachandran S, - 23.23 Chief Financial Officer( Till 06.02.2018) Mr. R. Govindarajan, - 11.46 Chief Financial Officer (Till 05.08.2017) Ms. S.Simi, Company Secretary (Till 8.87 9.93 29.10.2018) 5.50 - Mr. Anup Kumar Gupta, Company Secretary (from 03.11.2018) Donation Asirvad Development Foundation 25.77 69.50
Manappuram Finance Limited 36,204.74 4,998.51
Mr. S V Raja Vaidyanathan 709.63 489.95 Issue of Rights Share (Including th Managing Director 12Securities Annual Premium) Report 2018-19 Mr. V P Nandakumar - Managing Director & 73.13 19.72 Asirvad Microfinance LimitedCEO of the Holding Company Notes forming part of the Financial Statements for the year ended 31 March 2019
(Amount Rs.in Lakhs)
As at As at As at Transaction Related Party 31 March 2019 31 March 2018 1 April 2017
Balance as at Year End Other Receivable Manappuram Finance Limited - 35.88 35.88 Donation Payable Asirvad Development Foundation - - 20.00 Note:Note: (a) The Company accounts for costs incurred by / on behalf of the Related Parties based on the actual invoices / debit notes raised and accruals as confirmed by such related parties. The Related Parties have confirmed to the Management that as at 31 March 2019 , 31 March 2018 and 1 April 2017 there are no further amounts payable(a) toThe / receivable Company from them, otheraccounts than as disclosed for above.costs incurred by / on behalf of the Related Parties based (b) The Related Parties have confirmed to the Management that as at 31 March 2019, 31 March 2018 and 1 April 2017 there are no further amounts payable to / receivableon from the them, actualother than asinvoices disclosed above. / debit notes raised and accruals as confirmed by such related (c) The above compensation to key management personnel excludes gratuity and compensated absences which cannot be separately identified from the composite amount advisedparties. by the Theactuary. Related Parties have confirmed to the Management that as at 31 March 2019 , 31 March 2018 and 1 April 2017 there are no further amounts payable to / receivable from them, other than as disclosed above.
(b) The Related Parties have confirmed to the Management that as at 31 March 2019, 31 March 2018 and 1 April 2017 there are no further amounts payable to / receivable from them, other than as disclosed above.
(c) The above compensation to key management personnel excludes gratuity and compensated absences which cannot be separately identified from the composite amount advised by the actuary. 35. Financial Instruments
35.1. Capital Management The Company manages capital risk in order to maximize shareholders’ profit by
Asirvadmaintaining Microfinance Limitedsound/optimal capital structure. For the purpose of the Company’s capital Notes forming part of the Financial Statements for the year ended 31 March 2019 management, capital includes equity share Capital and Other Equity. Debt includes term 35 Financial Instruments loans from banks, NBFC and debentures net of Cash and bank balances. The Company 35.1 Capital Management monitors capital on the basis of the following gearing ratio. There is no change in the The Company manages capital risk in order to maximize shareholders’ profit by maintaining sound/optimal capital structure. For the purpose of the Company’s capital overallmanagement, capitalcapital riskincludes managementequity share strategyCapital andof theOther CompanyEquity. Debt comparedincludes term to loanslast year.from banks, NBFC and debentures net of Cash and bank balances. The Company monitors capital on the basis of the following gearing ratio. There is no change in the overall capital risk management strategy of the Company compared to last year. Gearing Ratio : Gearing Ratio : (Amount Rs. In Lakhs) As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Borrowings 223,650.65 208,242.13 160,033.01 Cash and Bank Balance (52,590.02) (19,026.25) (10,091.98) Net Debt (A) 171,060.63 189,215.88 149,941.03
Total Equity (B) 78,245.72 27,873.07 23,238.71 Net Debt to equity ratio (A/B) 2.19 6.79 6.45
35.2 Categories of Financial Instruments
The carrying value of the financial instruments by categories as on 31 March 2019, 31 March 2018 and 1 April 2017 is as follows:
(Amount Rs. In Lakhs) Carrying Value Fair Value Particulars As at As at As at As at As at As at 31 March 2019 31 March 2018 1 April 2017 31 March 2019 31 March 2018 1 April 2017 (a) Financial Assets (i) Measured at amortised cost - Loans 122 232,235.30 203,461.22 162,811.38 232,235.30 203,461.22 162,811.38 - Cash and Bank balance 68,814.21 27,596.69 16,916.37 68,814.21 27,596.69 16,916.37 - Other financial assets 3,328.95 2,174.76 1,172.59 3,328.95 2,174.76 1,172.59 - Loan given to staff 80.41 53.46 28.68 80.41 53.46 28.68
(ii) Measured at Fair value through OCI - Investments 5.00 5.00 5.00 5.00 5.00 5.00 304,463.87 233,291.13 180,934.02 304,463.87 233,291.13 180,934.02 (b) Financial Liabilities :
Measured at amortised cost - Borrowings 223,650.65 208,242.13 160,033.01 223,650.65 208,242.13 160,033.01 - Trade payables 1,656.06 1,035.90 835.11 1,656.06 1,035.90 835.11 - Other financial liabilities 4,209.10 1,512.82 398.83 4,209.10 1,512.82 398.83 229,515.81 210,790.85 161,266.95 229,515.81 210,790.85 161,266.95
The management assessed that fair value of Loans other receivables, cash and cash equivalents, other financial assets, trade payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The amortized cost of the Company’s interest-bearing borrowings are determined by using the Effective Interest method. The own non- performance risk as at 31 March 2019 was assessed to be insignificant.
There were no items of financial assets or financial liabilities which were valued at fair value as of 31 March 2019, 31 March 2018 and 1 April 2017.
36 Financial Risk Management Framework
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company manages financial risk relating to the operations through internal risk reports which analyse exposure by degree and magnitude of risk. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk. Compliance with policies and exposure limits is reviewed by the management on a continuous basis.
36.1 Liquidity Risk Management :
Liquidity risk refers to the risk that the Company cannot meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. The Company maintains adequate reserves and banking facilities, and continuously monitors the forecast and actual cash flows by matching maturing profiles of financial assets and financial liabilities in accordance with the approved risk management policy of the Company periodically. The Company believes that the working capital (including banking limits not utilised) and its cash and cash equivalent are sufficient to meet its short and medium term requirements. Liquidity and Interest Risk Tables :
Refer Note 41.6 which details the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the Company may be required to pay. 36.2 Market Risk Market Risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market factor. Such changes in the values of financial instruments may result from changes in the interest rates, credit, liquidity, and other market changes. The Company is exposed to two types of market risk as follows:
Interest Rate Risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
We are subject to interest rate risk, principally because we lend to clients at fixed interest rates and for periods that may differ from our funding sources, while our borrowings are at both fixed and variable interest ratesfor different periods. We assess and manage our interest rate risk by managing our assets and liabilities. Our Asset Liability Management Committee evaluates asset liability management, and ensures that all significant mismatches, if any, are being managed appropraitely.
The Company has Board Approved Asset Liability Management (ALM) policy for managing interest rate risk and policy for determining the interest rate to be charged on the loans given.
Price Risk
The Company's exposure to price risk is not material and it is primarily on account of investment of temporary treasury surpluses in the highly liquid debt funds for very short durations. The Company has a board approved policy of investing its surplus funds in highly rated debt mutual funds and other instruments having insignificant price risk, not being equity funds/ risk bearing instruments. 36.3 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required) The Management considers that the carrying amount of financial assets and financial liabilities recognized in the financial statements approximate their fair values.
36.4 Offsetting of financial assets and financial liabilities The Company has not offset financial assets and financial liabilities. Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
35 Financial Instruments 35.1 Capital Management
The Company manages capital risk in order to maximize shareholders’ profit by maintaining sound/optimal capital structure. For the purpose of the Company’s capital management, capital includes equity share Capital and Other Equity. Debt includes term loans from banks, NBFC and debentures net of Cash and bank balances. The Company monitors capital on the basis of the following gearing ratio. There is no change in the overall capital risk management strategy of the Company compared to last year. Gearing Ratio :
(Amount Rs. In Lakhs) As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Borrowings 223,650.65 208,242.13 160,033.01 th Cash and Bank Balance (52,590.02) (19,026.25) (10,091.98) 12 Annual Report 2018-19 AsirvadNet Debt (A)Microfinance Limited 171,060.63 189,215.88 149,941.03 Notes forming part of the Financial Statements for the year ended 31 March 2019 Total Equity (B) 78,245.72 27,873.07 23,238.71 Net Debt to equity ratio (A/B) 2.19 6.79 6.45 35.2 Categories of Financial Instruments
35.2 Categories of Financial Instruments The carrying value of the financial instruments by categories as on 31 March 2019, 31 The carrying value of the financial instruments by categories as on 31 March 2019, 31 March 2018 and 1 April 2017 is as follows: March 2018 and 1 April 2017 is as follows: (Amount Rs. In Lakhs) Carrying Value Fair Value Particulars As at As at As at As at As at As at 31 March 2019 31 March 2018 1 April 2017 31 March 2019 31 March 2018 1 April 2017 (a) Financial Assets (i) Measured at amortised cost - Loans 232,235.30 203,461.22 162,811.38 232,235.30 203,461.22 162,811.38 - Cash and Bank balance 68,814.21 27,596.69 16,916.37 68,814.21 27,596.69 16,916.37 - Other financial assets 3,328.95 2,174.76 1,172.59 3,328.95 2,174.76 1,172.59 - Loan given to staff 80.41 53.46 28.68 80.41 53.46 28.68
(ii) Measured at Fair value through OCI - Investments 5.00 5.00 5.00 5.00 5.00 5.00 304,463.87 233,291.13 180,934.02 304,463.87 233,291.13 180,934.02 (b) Financial Liabilities :
Measured at amortised cost - Borrowings 223,650.65 208,242.13 160,033.01 223,650.65 208,242.13 160,033.01 - Trade payables 1,656.06 1,035.90 835.11 1,656.06 1,035.90 835.11 - Other financial liabilities 4,209.10 1,512.82 398.83 4,209.10 1,512.82 398.83 229,515.81 210,790.85 161,266.95 229,515.81 210,790.85 161,266.95
The management assessed that fair value of Loans other receivables, cash and cash equivalents, other financial assets, trade payables and other financial liabilities approximateThe their managementcarrying amounts largely due assessed to the short-term that maturities fair of valuethese instruments. of Loans, other receivables, cash and cash equivalents, other financial assets, trade payables and other financial liabilities The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other thanapproximate in a forced or liquidation their sale. carrying amounts largely due to the short-term maturities of these The amortizedinstruments. cost of the Company’s interest-bearing borrowings are determined by using the Effective Interest method. The own non- performance risk as at 31 March 2019 was assessed to be insignificant. There wereThe no items fair of financialvalue assets of orthe financial financial liabilities which assetswere valued and at fair liabilitiesvalue as of 31 March is included2019, 31 March 2018at theand 1 Aprilamount 2017. at which the 36 Financialinstrument Risk Management couldFramework be exchanged in a current transaction between willing parties, other The Company’sthanboard in aof forceddirectors has oroverall liquidationresponsibility for thesale.establishment and oversight of the Company’s risk management framework. The Company manages financial risk relating to the operations through internal risk reports which analyse exposure by degree and magnitude of risk. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk. Compliance with policies and exposure limits is reviewed by the management on a continuous basis. The amortized cost of the Company’s interest-bearing borrowings are determined by 36.1 Liquidity Risk Management : using the Effective Interest method. The own non- performance risk as at 31 March 2019 Liquidity risk refers to the risk that the Company cannot meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring as far as possible,wasthat it willassessedalways have sufficientto beliquidity insignificant.to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. The Company maintains adequate reserves and banking facilities, and continuously monitors the forecast and actual cash flows by matching maturing profiles of financial assets and financial liabilities in accordance with the approved risk management policy of the Company periodically. The Company believes that the workingThere capital (includingwere banking no items limits not utilised)of financial and its cash and assetscash equivalent or arefinancial sufficient to meet liabilities its short and medium which term requirements. were valued at fair Liquidityvalue and Interest as Riskof 31Tables March : 2019, 31 March 2018 and 1 April 2017.
Refer Note 41.6 which details the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The contractual 36.maturity Financial is based on the earliestRisk date Management on which the Company may Framework be required to pay. 36.2 Market Risk TheMarket Risk Company’s is the risk that the fair board value or the of future directors cash flows of a hasfinancial overallinstrument will responsibilityfluctuate because of changes for in market the factor. establishment Such changes in the values and of financial instruments may result from changes in the interest rates, credit, liquidity, and other market changes. The Company is exposed to two types of market risk as oversightfollows: of the Company’s risk management framework. The Company manages financial
riskInterest relating Rate Risk to the operations through internal risk reports which analyse exposure by degree
andInterest magnitude rate risk is the risk thatof therisk. future Thesecash flows ofrisks a financial include instrument willmarket fluctuate because risk of (including changes in market interestinterest rates. rate risk and other
priceWe are subject risk),to interest creditrate risk, riskprincipally andbecause liquiditywe lend to risk.clients at Compliancefixed interest rates and withfor periods policiesthat may differ andfrom exposureour funding sources, limitswhile our is reviewedborrowings are at byboth thefixed andmanagementvariable interest ratesfor ondifferent a continuousperiods. We assess basis.and manage our interest rate risk by managing our assets and liabilities. Our Asset Liability Management Committee evaluates asset liability management, and ensures that all significant mismatches, if any, are being managed appropraitely.
The Company has Board Approved Asset Liability Management (ALM) policy for managing interest rate risk and policy for determining the interest rate to be charged on the loans given. 123
Price Risk
The Company's exposure to price risk is not material and it is primarily on account of investment of temporary treasury surpluses in the highly liquid debt funds for very short durations. The Company has a board approved policy of investing its surplus funds in highly rated debt mutual funds and other instruments having insignificant price risk, not being equity funds/ risk bearing instruments. 36.3 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required) The Management considers that the carrying amount of financial assets and financial liabilities recognized in the financial statements approximate their fair values.
36.4 Offsetting of financial assets and financial liabilities The Company has not offset financial assets and financial liabilities. 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 36.1 Liquidity Risk Management :
Liquidity risk refers to the risk that the Company cannot meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. The Company maintains adequate reserves and banking facilities, and continuously monitors the forecast and actual cash flows by matching maturing profiles of financial assets and financial liabilities in accordance with the approved risk management policy of the Company periodically. The Company believes that the working capital (including banking limits not utilised) and its cash and cash equivalent are sufficient to meet its short and medium term requirements.
Liquidity and Interest Risk Tables :
Refer Note 41.6 which details the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the Company may be required to pay.
36.2 Market Risk
Market Risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market factor. Such changes in the values of financial instruments may result from changes in the interest rates, credit, liquidity, and other market changes. The Company is exposed to two types of market risk as follows:
Interest Rate Risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
We are subject to interest rate risk, principally because we lend to clients at fixed interest rates and for periods that may differ from our funding sources, while our borrowings are at both fixed and variable interest ratesfor different periods. We assess and manage our interest rate risk by managing our assets and liabilities. Our Asset Liability Management Committee evaluates asset liability management, and ensures that all significant mismatches, if any, are being managed appropraitely.
The Company has Board Approved Asset Liability Management (ALM) policy for managing interest rate risk and policy for determining the interest rate to be charged on the loans given.
124 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 Price Risk
The Company’s exposure to price risk is not material and it is primarily on account of investment of temporary treasury surpluses in the highly liquid debt funds for very short durations. The Company has a board approved policy of investing its surplus funds in highly rated debt mutual funds and other instruments having insignificant price risk, not being equity funds/ risk bearing instruments.
36.3 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)
The Management considers that the carrying amount of financial assets and financial liabilities recognized in the financial statements approximate their fair values. 36.4 Offsetting of financial assets and financial liabilities
The Company has not offset financial assets and financial liabilities. 37 First-time adoption of Ind AS
These financial statements, for the year ended 31 March 2019, are the first financial statements the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2018, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP or previous GAAP) and Master Directions issued by Reserve Bank of India in this regard.
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2019, together with the comparative period data as at and for the year ended 31 March 2018, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2017, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2017 and the financial statements as at and for the year ended 31 March 2018.
37.1 Exemptions applied
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemption:
125 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 (i) Deemed Cost for Property, plant and equipment and intangible assets
The Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognized as at 1 April 2017 (transition date) measured as per the previous Indian GAAP (‘I GAAP’) and use that carrying value as its deemed cost as of the transition date.
Estimates Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 37 First-timeInd ASadoption estimates of Ind AS as on 1 April 2017 are consistent with the estimates as at the same date These financial statements, for the year ended 31 March 2019, are the first financial statements the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2018, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indianmade GAAP or inprevious conformity GAAP) and Master Directions with issued by previous Reserve Bank of India GAAP. in this regard. The Company has made an estimate regarding
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2019, together with the comparative period data as at and for the year ended 31 Marchimpairment2018, as described in the ofsummary financialof significant accounting assetspolicies. In preparing basedthese financial onstatements, Expectedthe Company’s opening Creditbalance sheet was Lossprepared as atmodel1 April 2017, the whichCompany’s date ofwere not transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2017 and the financial statements as at and for the year ended 31 March 2018. 37.1 Exemptionsrequired applied under the Previous GAAP. Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemption: (i) Deemed Cost for Property, plant and equipment and intangible assets The Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognized as at 1 April 2017 (transition date) measured as per the previous Indian GAAP 37.2 (‘IFirst GAAP’) and timeuse that carrying IND value as itsAS deemed Adoption cost as of the transition date.Reconciliation : Estimates Ind AS estimates as on 1 April 2017 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company has made an estimate regarding impairment of financial assets based on(i) Expected Effect Credit Loss of model Ind which were AS not required adoption under the Previous on GAAP. the Balance Sheet as at 31 March 2018 : 37.2 First time IND AS Adoption Reconciliation :
(i) Effect of Ind AS adoption on the Balance Sheet as at 31 March 2018 : Amount Rs.in Lakhs As at 31 March 2018 As at 1 April 2017 (End of Last period Presented under Previous GAAP) (End of Last period Presented under Previous GAAP) Particulars Effect of transition IND AS balance Effect of transition Previous GAAP Previous GAAP IND AS balance sheet to IND AS sheet to IND AS ASSETS Financial assets (a) Cash and cash equivalents 19,026.25 - 19,026.25 10,091.98 - 10,091.98 (b) Bank Balances other than (a) above 8,570.44 - 8,570.44 6,824.39 - 6,824.39 (c) Loans 204,288.84 (827.62) 203,461.22 167,168.84 (4,357.46) 162,811.38 (d) Loans given to staff - at amortised cost 53.46 - 53.46 28.68 - 28.68 (e) Investments 5.00 - 5.00 5.00 - 5.00 (f) Other Financial assets 2,177.14 (2.38) 2,174.76 1,175.36 (2.77) 1,172.59
234,121.13 (830.00) 233,291.13 185,294.25 (4,360.23) 180,934.02
Non-financial Assets (a) Current tax assets (net) 817.43 - 817.43 - - - (b) Deferred tax assets (net) 3,981.05 463.60 4,444.65 2,218.15 1,718.58 3,936.73 (c) Investment Property 8.64 - 8.64 8.64 - 8.64 (d) Property, Plant and Equipment 628.88 - 628.88 551.68 - 551.68 (e) Intangible assets 73.34 - 73.34 7.01 - 7.01 (f) Other non financial assets 160.39 - 160.39 108.14 - 108.14
5,669.73 463.60 6,133.33 2,893.62 1,718.58 4,612.20
239,790.86 (366.40) 239,424.46 188,187.87 (2,641.65) 185,546.22
Amount Rs.in Lakhs Amount Rs.in Lakhs As at 31 March 2018 As at 1 April 2017 (End of Last period Presented under Previous GAAP) (End of Last period Presented under Previous GAAP) Particulars Effect of transition IND AS balance Effect of transition IND AS balance Previous GAAP Previous GAAP to IND AS sheet to IND AS sheet
Financial Liabilities (a)Other Payables (i) total outstanding dues of micro enterprises and small enterprises - - - -
(ii) total outstanding dues of creditors other than micro enterprises and 1,035.90 - 1,035.90 835.11 - 835.11 small enterprises (b) Debt Securities 62,152.20 (154.03) 61,998.17 43,310.05 0.69 43,310.74 (c) Borrowings (other than debt securities) 134,568.92 267.98 134,836.90 105,026.90 282.91 105,309.81 (d) Subordinated Liabilities 11,270.99 136.07 11,407.06 11,380.18 32.28 11,412.46 (e) Other Financial liabilities 1,512.82 - 1,512.82 398.83 - 398.83 210,540.83 250.02 210,790.85 160,951.07 315.88 161,266.95
Non-financial Liabilities (a) Provisions 184.29 - 184.29 567.10 - 567.10 (b) Other non-financial liabilities 329.58 246.67 576.25 231.48 241.98 473.46 513.87 246.67 760.54 798.58 241.98 1,040.56
Equity (a) Equity share capital 3,207.49 - 3,207.49 2,627.66 - 2,627.66 (b) Other equity 25,528.67 (863.09) 24,665.58 23,810.56 (3,199.51) 20,611.05 28,736.16 (863.09) 27,873.07 26,438.22 (3,199.51) 23,238.71
239,790.86 (366.40) 239,424.46 188,187.87 (2,641.65) 185,546.22
(ii) Reconciliation of equity as previously reported under Indian GAAP to Ind AS Amount Rs.in Lakhs As at As at Particulars 31 March 2018 1 April 2017 Equity as reported under previous GAAP 28,736.16 26,438.22
Ind AS: Adjustments increase (decrease):
(i) Impact on recognition of financial assets measured at amortised cost (244.50) (370.53) (ii) Impact on recognition of financial liabilities at amortised cost by application of Effective (267.98) (282.91) Interest Rate Method on Term loans (iii) Impact on recognition of financial liabilities at amortised cost by application of Effective 154.03 (0.69) Interest Rate Method on Debentures (iv) Impact on recognition of financial liabilities at amortised cost by application of Effective (136.07) (32.28) Interest Rate Method on Subordinated debt (v) Expected Credit loss method (ECL) as per Ind AS 109 126 (583.12) (3,986.93) (vi) Actuarial Loss on defined benefit obligation - (vii) Fair Valuation of Security Deposits (2.38) (2.77) (viii) Provision for Sick Leave (246.67) (241.98) (ix) Deferred Tax impact on above adjustments 463.60 1,718.58
Total adjustment to equity (863.09) (3,199.51)
Total Equity as reported under IND AS 27,873.07 23,238.71 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
37 First-time adoption of Ind AS
These financial statements, for the year ended 31 March 2019, are the first financial statements the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2018, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP or previous GAAP) and Master Directions issued by Reserve Bank of India in this regard.
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2019, together with the comparative period data as at and for the year ended 31 March 2018, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2017, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2017 and the financial statements as at and for the year ended 31 March 2018. 37.1 Exemptions applied Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemption: (i) Deemed Cost for Property, plant and equipment and intangible assets The Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognized as at 1 April 2017 (transition date) measured as per the previous Indian GAAP (‘I GAAP’) and use that carrying value as its deemed cost as of the transition date. Estimates Ind AS estimates as on 1 April 2017 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company has made an estimate regarding impairment of financial assets based on Expected Credit Loss model which were not required under the Previous GAAP.
37.2 First time IND AS Adoption Reconciliation :
(i) Effect of Ind AS adoption on the Balance Sheet as at 31 March 2018 : Amount Rs.in Lakhs As at 31 March 2018 As at 1 April 2017 (End of Last period Presented under Previous GAAP) (End of Last period Presented under Previous GAAP) Particulars Effect of transition IND AS balance Effect of transition Previous GAAP Previous GAAP IND AS balance sheet to IND AS sheet to IND AS ASSETS Financial assets (a) Cash and cash equivalents 19,026.25 - 19,026.25 10,091.98 - 10,091.98 (b) Bank Balances other than (a) above 8,570.44 - 8,570.44 6,824.39 - 6,824.39 (c) Loans 204,288.84 (827.62) 203,461.22 167,168.84 (4,357.46) 162,811.38 (d) Loans given to staff - at amortised cost 53.46 - 53.46 28.68 - 28.68 (e) Investments 5.00 - 5.00 5.00 - 5.00 (f) Other Financial assets 2,177.14 (2.38) 2,174.76 1,175.36 (2.77) 1,172.59
234,121.13 (830.00) 233,291.13 185,294.25 (4,360.23) 180,934.02
Non-financial Assets (a) Current tax assets (net) 817.43 - 817.43 - - - (b) Deferred tax assets (net) 3,981.05 463.60 4,444.65 2,218.15 1,718.58 3,936.73 (c) Investment Property 8.64 - 8.64 8.64 - 8.64 (d) Property, Plant and Equipment 628.88 - 628.88 551.68 - 551.68 (e) Intangible assets 73.34 - 73.34 7.01 - 7.01 (f) Other non financial assets 160.39 - 160.39 108.14 - 108.14
5,669.73 463.60 6,133.33 2,893.62 1,718.58 4,612.20
239,790.86 (366.40) 239,424.46 188,187.87 (2,641.65) 185,546.22
Amount Rs.in Lakhs Amount Rs.in Lakhs As at 31 March 2018 As at 1 April 2017 (End of Last period Presented under Previous GAAP) (End of Last period Presented under Previous GAAP) Particulars Effect of transition IND AS balance Effect of transition IND AS balance Previous GAAP Previous GAAP to IND AS sheet to IND AS sheet
Financial Liabilities (a)Other Payables (i) total outstanding dues of micro enterprises and small enterprises - - - -
(ii) total outstanding dues of creditors other than micro enterprises and 1,035.90 - 1,035.90 835.11 - 835.11 small enterprises (b) Debt Securities 62,152.20 (154.03) 61,998.17 43,310.05 0.69 43,310.74 (c) Borrowings (other than debt securities) 134,568.92 267.98 134,836.90 105,026.90 282.91 105,309.81 (d) Subordinated Liabilities 11,270.99 136.07 11,407.06 11,380.18 32.28 11,412.46 (e) Other Financial liabilities 1,512.82 - 1,512.82 398.83 - 398.83 210,540.83 250.02 210,790.85 160,951.07 315.88 161,266.95
Non-financial Liabilities (a) Provisions 184.29 - 184.29 567.10 - 567.10 (b) Other non-financial liabilities 329.58 246.67 576.25 231.48 241.98 473.46 513.87 246.67 760.54 12 798.58th Annual 241.98 Report 2018-19 1,040.56 Equity Asirvad(a) Equity Microfinanceshare capital Limited 3,207.49 - 3,207.49 2,627.66 - 2,627.66 (b) Other equity 25,528.67 (863.09) 24,665.58 23,810.56 (3,199.51) 20,611.05 Notes forming part of the Financial Statements for the 28,736.16 year end ed 31 (863.09) March 2019 27,873.07 26,438.22 (3,199.51) 23,238.71
239,790.86 (366.40) 239,424.46 188,187.87 (2,641.65) 185,546.22
(ii)(ii) Reconciliation Reconciliation of equity as previously of equity reported under as Indian previously GAAP to Ind AS reported under Indian GAAP to Ind AS Amount Rs.in Lakhs As at As at Particulars 31 March 2018 1 April 2017 Equity as reported under previous GAAP 28,736.16 26,438.22
Ind AS: Adjustments increase (decrease):
(i) Impact on recognition of financial assets measured at amortised cost (244.50) (370.53) (ii) Impact on recognition of financial liabilities at amortised cost by application of Effective (267.98) (282.91) Interest Rate Method on Term loans (iii) Impact on recognition of financial liabilities at amortised cost by application of Effective 154.03 (0.69) Interest Rate Method on Debentures (iv) Impact on recognition of financial liabilities at amortised cost by application of Effective (136.07) (32.28) Interest Rate Method on Subordinated debt (v) Expected Credit loss method (ECL) as per Ind AS 109 (583.12) (3,986.93) (vi) Actuarial Loss on defined benefit obligation - (vii) Fair Valuation of Security Deposits (2.38) (2.77) (viii) Provision for Sick Leave (246.67) (241.98) (ix) Deferred Tax impact on above adjustments 463.60 1,718.58
Total adjustment to equity (863.09) (3,199.51)
Total Equity as reported under IND AS 27,873.07 23,238.71
Asirvad Microfinance Limited Notes forming(iii) part Effect of the ofFinancial Ind AS Statements adoption for the on year the ended Statement 31 March 2019of Profit & Loss for the Year ended 31 March 2018 (iii) Effect of Ind AS adoption on the Statement of Profit & Loss for the Year ended 31 March 2018 Amount Rs.in Lakhs Year ended 31 March 2018 (latest period presented under previous GAAP) Effect of transition Particulars Previous GAAP Ind AS to Ind AS Revenue from operations I Interest income 43,558.60 12.67 43,571.27 II Other operating income 154.58 126.03 280.61
Total 43,713.18 138.70 43,851.88
Other Income 3,107.32 - 3,107.32
III Total Revenue (I + II) 46,820.50 138.70 46,959.20
IV EXPENSES Finance cost 21,384.11 (65.91) 21,318.20 Impairment of financial instruments 15,831.45 (3,403.78) 12,427.67 Employee benefit expenses 9,200.89 51.21 9,252.10 Depreciation, amortization and impairment 635.94 - 635.94 Other expenses 4,761.11 12.32 4,773.43 Total Expenses 51,813.50 (3,406.16) 48,407.34
V Loss before tax (III - IV) (4,993.00) 3,544.86 (1,448.14)
VI Tax Expense (a) Current tax - - - (b) Deferred tax (1,762.90) 1,243.26 (519.64)
Total tax expense (1,762.90) 1,243.26 (519.64)
VII Loss for the year (V - VI) (3,230.10) 2,301.60 (928.50)
VIII Other Comprehensive Income (i) Items that will not be recycled to profit or loss Remeasurement gains and (losses) on defined benefit - 33.55 33.55 obligations (net) (ii) Income tax relating to items that will not be reclassified to - (11.72) (11.72) profit or loss Total Other Comprehensive Income for the year - 21.83 21.83
IX Total Comprehensive Income for the year (VII + VIII) (3,230.10) 2,323.43 (906.67)
(iv) Reconciliation of Total Comprehensive Income for the year ended 31 March 2018 : Amount Rs.in Lakhs Year ended 31 March 2018 PARTICULARS (latest period presented under previous GAAP) Loss as per Previous GAAP (3,230.10) Ind AS: Adjustments (increase) decrease:
(i) Impact on recognition of financial assets measured at amortised cost 126.03 (ii) Impact on recognition of financial assets measured at amortised cost 12.67 (iii) Impact on recognition of financial liabilities at amortised cost by application of Effective 65.91 Interest Rate Method (iv) Expected Credit loss method (ECL) as per Ind AS 109 127 3,403.78 (v) Actuarial Loss on defined benefit obligation (33.55) (vi) Fair Valuation of Security Deposits (12.32) (vii) Provision for Sick Leave (4.66) (viii) Deferred Tax impact on above adjustments (1,243.26) (ix) ESOP Adjustments (13.00)
Total adjustment to profit or loss 2,301.60
Profit under Ind AS (928.50)
Other Comprehensive Income (Net of Tax) 21.83
Total Comprehensive Income under Ind AS (906.67)
Note : Under previous GAAP,total comprehensive income was not reported. Therefore the above reconciliation starts with loss under previous GAAP.
(v) Effect of Ind AS adoption on the Statement of Cash Flows for the Year ended 31 March 2018 Amount Rs.in Lakhs Year ended 31 March 2018 (latest period presented under previous GAAP) PARTICULARS Effect of Transition Previously Reported IND AS to IND AS Previous GAAP Net cash flows from operating activities (43,585.01) 20,586.96 (22,998.05) Net cash flows from investing activities (562.96) 31.87 (531.09) Net cash flows from financing activities 53,082.24 (20,618.83) 32,463.41 Net increase in cash and cash equivalents 8,934.27 - 8,934.27 Add: Cash and cash equivalents at beginning of year 10,091.98 - 10,091.98 Cash and cash equivalents at end of year 19,026.25 - 19,026.25
(vi) Analysis of Cash & cash equivalents as at 31 March 2018 and as at 1 April 2017 for the purpose of cashflows under IND AS :
As at 31 March 2018 As at 1 April 2017 (end of the last period PARTICULARS (Date of presented under Transition) previous GAAP) Cash and cash equivalents consist of: Cash and Bank Balances as per Balance sheet 19,026.25 10,091.98 Less: Bank balances not considered as cash and Cash Equivalents - -
Add: Current investments considered as part of Cash and Cash - - Equivalents (as defined in AS 3 Cash flow statements)
Total Cash and Cash Equivalents as at the end of the year 19,026.25 10,091.98 AsirvadAsirvad Microfinance Microfinance Limited Limited NotesNotes forming forming part partof the of Financialthe Financial Statements Statements for forthe the year year ended ended 31 31 March March 2019 2019 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 (iii) Effect(iii) Effect of Ind of ASInd adoption AS adoption on theon theStatement Statement of ofProfit Profit & &Loss Loss for for the the Year Year ended ended 3131 MarchMarch 2018 (iii) Effect of Ind AS adoption on the Statement of Profit & Loss for the Year ended 31 March 2018 AmountAmount Rs.in Rs.in Lakhs Lakhs YearYear ended ended 3131 March 2018 (latest(latestAmount period period Rs.inpresented presented Lakhs under under Year ended 31 March 2018 (latestprevious period GAAP) GAAP) presented under previous EffectGAAP) ofof transition transition ParticularsParticulars PreviousPrevious GAAPGAAP IndInd AS AS Effect of transitiontoto Ind Ind AS AS Particulars Previous GAAP Ind AS RevenueRevenue from from operations operations to Ind AS I RevenueInterestI Interest income from income operations 43,558.6043,558.60 12.67 12.67 43,571.27 43,571.27 II Other operating income 154.58 126.03 280.61 III InterestOther operating income income 43,558.60 154.58 12.67 126.03 43,571.27 280.61 II Other operating income 154.58 126.03 280.61 Total 43,713.18 138.70 43,851.88 Total 43,713.18 138.70 43,851.88 Total 43,713.18 138.70 43,851.88 Other Income 3,107.32 - 3,107.32 Other Income 3,107.32 - 3,107.32 Other Income 3,107.32 - 3,107.32 III Total Revenue (I + II) 46,820.50 138.70 46,959.20 III Total Revenue (I + II) 46,820.50 138.70 46,959.20 III Total Revenue (I + II) 46,820.50 138.70 46,959.20 IV EXPENSES IV EXPENSESFinance cost 21,384.11 (65.91) 21,318.20 IV EXPENSES FinanceImpairment cost of financial instruments 21,384.1115,831.45 (3,403.78) (65.91) 12,427.67 21,318.20 Finance cost 21,384.11 (65.91) 21,318.20 ImpairmentEmployee of benefitfinancial expenses instruments 15,831.45 (3,403.78) 51.21 12,427.67 Impairment of financial instruments 15,831.45 9,200.89 (3,403.78) 12,427.67 9,252.10 EmployeeDepreciation, benefit expensesamortization and impairment 9,200.89 635.94 51.21 - 635.94 9,252.10 Employee benefit expenses 9,200.89 51.21 9,252.10 Depreciation,Other expenses amortization and impairment 4,761.11 12.32 4,773.43 Depreciation, amortization and impairment 635.94 635.94 - - 635.94 635.94 Total Expenses 51,813.50 (3,406.16) 48,407.34 Other expenses expenses 4,761.11 4,761.11 12.32 12.32 4,773.43 4,773.43 Total Expenses 51,813.50 (3,406.16) 48,407.34 TotalV LossExpenses before tax (III - IV) 51,813.50 (4,993.00) (3,406.16) 3,544.86 48,407.34 (1,448.14) V Loss before tax (III - IV) (4,993.00) 3,544.86 (1,448.14) V LossVI beforeTax Expense tax (III - IV) (4,993.00) 3,544.86 (1,448.14) (a) Current tax - - - VI Tax ExpenseExpense (b) Deferred tax (1,762.90) 1,243.26 (519.64) (a)(a) CurrentCurrent tax tax ------(b)(b) DeferredDeferredTotal tax tax tax expense (1,762.90) (1,762.90) (1,762.90) 1,243.26 1,243.26 1,243.26 (519.64) (519.64) (519.64)
TotalVII Losstax tax expense forexpense the year (V - VI) (1,762.90) (1,762.90) (3,230.10) 1,243.26 2,301.60 1,243.26 (519.64) (928.50) (519.64)
VII VIIILoss forOtherfor the the Comprehensive year year (V (V - VI)- VI) Income (3,230.10) (3,230.10) 2,301.60 2,301.60 (928.50) (928.50) (i) Items that will not be recycled to profit or loss VIII Other ComprehensiveRemeasurement Income gains and (losses) on defined benefit VIII Other Comprehensive Income - 33.55 33.55 (i) Items that will not be recycled to profit or loss th (i) Itemsobligations that will not(net) be recycled to profit or loss Remeasurement(ii) Income tax gains relating and (losses)to items onthat defined will not benefit be reclassified to 12 AnnualRemeasurement Report 2018-19gains and (losses) on defined benefit - - 33.55 (11.72) 33.55 (11.72) obligations (net) - 33.55 33.55 Asirvad obligationsMicrofinanceprofit or loss (net) Limited (ii)(ii) IncomeIncomeTotal tax Othertax relating relating Comprehensive to toitems items that that willIncome willnot notbe for reclassified be the reclassified year to to - 21.83 21.83 Notes forming part of the Financial Statements for the year end ed 31 March 2019 - - (11.72) (11.72) (11.72) (11.72) profit oror loss loss TotalIX TotalOther Comprehensive Comprehensive IncomeIncome for the year (VII + VIII) - (3,230.10) 21.83 2,323.43 21.83 (906.67) Total Other Comprehensive Income for the year - 21.83 21.83 (iv) Reconciliation of Total Comprehensive Income for the year ended 31 March 2018 : (iv)IX ReconciliationTotal Comprehensive of Total Income Comprehensive for the year Income (VII +for VIII) the year ended 31 March (3,230.10) 2018 : 2,323.43 (906.67) IX Total Comprehensive Income for the year (VII + VIII) (3,230.10) 2,323.43 (906.67) Amount Rs.in Lakhs (iv) Reconciliation of Total Comprehensive Income for the year ended 31 March 2018 : (iv) Reconciliation of Total Comprehensive Income for the year ended 31 March 2018 : Year ended Amount Rs.in31 MarchLakhs 2018 PARTICULARS YearAmount ended(latest Rs.in period Lakhs 31 Marchpresented Year2018 ended under PARTICULARS (latestprevious 31period March GAAP) 2018 PARTICULARS (latest period Loss as per Previous GAAP presented under (3,230.10) presented under Ind AS: Adjustments (increase) decrease: previous GAAP) Loss as per Previous GAAP previous(3,230.10) GAAP) IndLoss AS: (i)as ImpactAdjustments per Previous on recognition (increase) GAAP of financial decrease assets: measured at amortised cost (3,230.10) 126.03 Ind AS:(ii) ImpactAdjustments on recognition (increase) of financial decrease assets: measured at amortised cost 12.67 (i) Impact(iii) Impacton recognition on recognition of financial of financial assets measured liabilities at amortised costcost by application of Effective 126.03 65.91 (ii)(i) ImpactInterest onon recognition Raterecognition Method of offinancial financial assets assets measured measured at amortised at amortised cost cost 12.67 126.03 (iii)(ii) Impact(iv) Expected onon recognition recognition Credit ofloss offinancial financialmethod liabilities (ECL) assets as at measured peramortised Ind AS at cost109 amortised by application cost of Effective 65.91 3,403.78 12.67 65.91 Interest(iii) Impact(v) Rate Actuarial on Method recognition Loss on defined of financial benefit liabilities obligation at amortised cost by application of Effective (33.55) (iv)Interest Expected(vi) RateFair Credit ValuationMethod loss ofmethod Security (ECL) Deposits as per Ind AS 109 3,403.78 (12.32) (v)(iv) Actuarial Expected(vii) Provision Loss Credit on fordefined loss Sick method Leavebenefit (ECL)obligation as per Ind AS 109 (33.55) 3,403.78 (4.66) (vi)(v) FairActuarial(viii) Valuation Deferred Loss of on TaxSecurity defined impact Deposits benefit on above obligation adjustments (12.32) (1,243.26) (33.55) (vii)(vi) ProvisionFair(ix) ValuationESOP for Adjustments Sick of LeaveSecurity Deposits (4.66) (13.00) (12.32) (viii)(vii) DeferredProvision Tax for impactSick Leave on above adjustments (1,243.26) (4.66) Total adjustment to profit or loss (13.00) 2,301.60 (ix)(viii) ESOP Deferred Adjustments Tax impact on above adjustments (1,243.26) (ix) ESOPProfit Adjustments under Ind AS (928.50) (13.00) Total adjustment to profit or loss 2,301.60 Other Comprehensive Income (Net of Tax) 21.83 ProfitTotal underadjustment Ind AS to profit or loss (928.50) 2,301.60 Total Comprehensive Income under Ind AS (906.67) OtherProfit Comprehensive under Ind AS Income (Net of Tax) 21.83 (928.50) Note : Under previous GAAP,total comprehensive income was not reported. Therefore the above reconciliation starts with loss under previous GAAP. TotalOtherNote ComprehensiveComprehensive : Under previous Income GAAP,total (Netunder of Ind Tax) comprehensive AS income was not reported. Therefore the above (906.67) reconciliation 21.83 starts with loss (v) Effectunder of Ind previous AS adoption GAAP. on the Statement of Cash Flows for the Year ended 31 March 2018 Note : UnderTotal previous Comprehensive GAAP,total comprehensive Income under income Ind was AS not reported. Therefore the above reconciliation starts with loss under (906.67) previous GAAP. (v) Effect of Ind AS adoption on the Statement of Cash Flows for the Year ended 31 MarchAmount Rs.in 2018 Lakhs Note(v) Effect: Under of previous Ind AS adoptionGAAP,total on comprehensive the Statement incomeof Cash was Flows not for reported. the Year Therefore ended 31 the March above 2018 reconciliationYear ended starts 31 March with loss2018 under previous GAAP. (latest period presented under previous GAAP) PARTICULARS Amount Rs.in Lakhs (v) Effect of Ind AS adoption on the Statement of Cash Flows for the Year ended 31 March 2018Effect of Transition PreviouslyYear Reported ended 31 March 2018 IND AS to IND AS (latest period presented under previous GAAP)Amount Rs.in Lakhs Previous GAAP PARTICULARS EffectYear endedof Transition 31 March 2018 Net cash flows from operating activities Previously Reported (43,585.01) 20,586.96IND AS (22,998.05) (latest period presentedto IND AS under previous GAAP) Net cash flows from investingPARTICULARS activities (562.96) 31.87 (531.09) Previous GAAP Effect of Transition Net cash flows from financing activities Previously Reported 53,082.24 (20,618.83) IND 32,463.41 AS Net cash flows from operating activities (43,585.01) 20,586.96to IND AS (22,998.05) Net increase in cash and cash equivalents 8,934.27 - 8,934.27 NetPrevious cash flows GAAP from investing activities (562.96) 31.87 (531.09) 10,091.98 - 10,091.98 Net cashcashAdd: flows flows Cash from from and financing operatingcash equivalents activities activities at beginning of year 53,082.24 (43,585.01) (20,618.83) 20,586.96 32,463.41 (22,998.05) Net increasecashCash flows and in from cashcash investing equivalentsand cash activities equivalents at end of year 8,934.27 19,026.25 (562.96) - 31.87 - 8,934.27 19,026.25 (531.09) Add:Net cash Cash flows and fromcash financingequivalents activities at beginning of year 10,091.98 53,082.24 - (20,618.83) 10,091.98 32,463.41 (vi) AnalysisCashNet increase and of cash Cash inequivalents & cash cash and equivalents atcash end equivalents of asyear at 31 March 2018 and as at 1 April 19,026.25 2017 8,934.27for the purpose of - cashflows - under 19,026.25 IND AS 8,934.27 : Add: Cash and cash equivalents at beginning of year 10,091.98 - 10,091.98 As at 31 March 2018 As at 1 April 2017 (vi) AnalysisCash of Cashand cash& cash equivalents equivalents at as end at 31 of March year 2018 and as at 1 April (end 2017 of for the the 19,026.25last purpose period of cashflows under - IND AS : 19,026.25 (vi) Analysis of Cash & PARTICULARScash equivalents as at 31 March 2018 and as at 1(Date April of 2017 for the presented under As at 31 March 2018 Transition) (vi) Analysispurpose of Cash of & cashcashflows equivalents under as at 31IND March AS 2018 : and as at 1 Aprilprevious 2017 GAAP)for theAs atpurpose 1 April 2017of cashflows under IND AS : (end of the last period Cash and cash equivalentsPARTICULARS consist of: (DateAmount of Rs. In Lakhs Cash and Bank Balances as per Balance sheet presented under 19,026.25 10,091.98 As at 31 March 2018Transition) Less: Bank balances not considered as cash and Cash Equivalentsprevious GAAP) - As at 1 April 2017 - (end of the last period Cash and cash equivalentsPARTICULARS consist of: (Date of presented under Cash andAdd: Bank Current Balances investments as per Balance considered sheet as part of Cash and Cash 19,026.25 - 10,091.98 Transition) - previous GAAP) Less: EquivalentsBank balances (as not defined considered in AS as3 Cashcash flowand Cashstatements) Equivalents - - Cash and cash equivalents consist of: Add:Cash Current Totaland Bank Cash investments Balances and Cash considered as Equivalentsper Balance as part assheet of at Cash the and end Cash of the year - 19,026.2519,026.25 - 10,091.98 10,091.98 EquivalentsLess: Bank (asbalances defined not in AS considered 3 Cash flow as statements)cash and Cash Equivalents - -
TotalAdd: CurrentCash and investments Cash Equivalents considered as at as the part end of ofCash the and year Cash 19,026.25 - 10,091.98 - Equivalents (as defined in AS 3 Cash flow statements)
Total Cash and Cash Equivalents as at the end of the year 19,026.25 10,091.98
128 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 Explanatory Notes to Ind AS adjustments
(a) Under previous GAAP, the company was recognizing provisions on non-performing assets as per Prudential Norms prescribed by the Reserve Bank of India. Further, under Ind AS 109, these provisions have been computed based on the Expected Credit Loss model. Accordingly, the provisions stands higher by Rs. 583.12 Lakhs as at 31 March 2018 and Rs.3,986.92 Lakhs as at 1 April 2017. Retained earnings under other Equity increased / decreased by Rs. 3,986.92 Lakhs as at 1 April 2017.
(b) Under previous GAAP, security deposits were recognised based on historical cost. Under Ind AS, these financial assets have been adjusted to be carried at amortised cost.The notional cost of interest on deposit under Ind AS has been recognized as rental expense and the interest accrual has been recognized as interest income earned on financial assets.
(c) Under previous GAAP, actuarial gains and loss on defined benefit plans were recognised in profit or loss. Under IND AS, the actuarial gains and losses form part of re-measurement of the net defined benefit obligation / asset which are recognised in other comprehensive income.
(d) Under the previous GAAP, transaction costs in relation to borrowings are amortized over tenor of the borrowings. As per Ind AS 109, transaction costs including processing fee, prepayment charges, in relation to borrowings are to be adjusted to borrowings and amortised over the repayment period of the said liability. The same has been considered in the opening and comparative period financial statements.
(e ) Under the previous GAAP, the cost of Equity settled Employee stock options plan (ESOP) of holding company which were granted to the employees of the Company, was not recorded as there were no debits received from the holding company, which assessed, managed and administered the ESOP. Under INDAS 102, the cost of such grants needs to be accounted for in accordance with the said standard by determining the fair value at the date of the grant is expensed on a straight line basis over the vesting period for equity settled share based payments, based on the holding company's estimate of the equity instruments that will eventually vest. At the end of each reporting period the holding company's revises its estimate of the number of equity instruments expected to vest. At the end of the vesting period, the holding company raises a debit note on the Company for the amount paid to the employees.
(f) Under the previous GAAP, documentation fees collected from customers were amortized over average tenor of the loan (i.e 18 months). Under Ind AS 109, the documentation fee is included as part of the Loan and amortised over the repayment period of the said Loan.
129 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
(g) Opening Reserves as at 1 April 2017 has been adjusted consequent to the above IND AS Transition adjustments.
(h) Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains or losses are required to be presented in other comprehensive income.
(i) The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.
38 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
Based on and to the extent of information received by the Company from the suppliers
Asirvad Microfinanceduring Limited the year regarding their status under the Micro Small and Medium Enterprises Notes forming part of the Financial Statements for the year ended 31 March 2019
Asirvad MicrofinanceDevelopment Limited Act, 2006 (MSMED Act), the relevant particulars for the years ended 31 38 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 Notes forming part of the Financial Statements for the year ended 31 March 2019 BasedMarchon and to the 2019,extent of information31 Marchreceived by2018the Company andfrom 31the Marchsuppliers during 2017the year areregarding furnishedtheir status under below:the Micro Small and Medium Enterprises Development Act, 38 2006Disclosures (MSMED required Act), the underrelevant Section particulars 22 of for the the Micro, years endedSmall 31and March Medium 2019, Enterprises 31 March 2018 Development and 31 March Act, 2017 2006 are furnished below:
Based on and to the extent of information received by the Company from the suppliers during the year regarding their For thestatus Yearunder Endedthe Micro ForSmall theand YearMedium EndedEnterprises For theDevelopment Year EndedAct, 2006 (MSMED Act), the relevant particulars for theParticulars years ended 31 March 2019, 31 March 2018 and 31 March 2017 are31 furnished March 2019 below: 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs. Amount Rs.in Lakhs Principal amount remaining unpaid to any supplier as at the end of the accounting year. For the Year Ended - For the Year Ended - For the Year Ended - Particulars 31 March 2019 31 March 2018 1 April 2017 Interest due thereon remaining unpaid to any supplier as at the end of the accounting year. - - - Amount Rs.in Lakhs Amount Rs.in Lakhs. Amount Rs.in Lakhs The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed - - - dayPrincipal amount remaining unpaid to any supplier as at the end of the accounting year. - - - Interest due thereon remaining unpaid to any supplier as at the end of the accounting year. - - - The amount of interest due and payable for the year. - - - The amount of interest paid along with the amounts of the payment made to the supplier beyond the appointed - - - The amount of interest accrued and remaining unpaid at the end of the accounting year. - - - day The amount of further interest due and payable even in the succeeding year, until such date when the interest - - - The amount of interest due and payable for the year. - - - dues as above are actually paid. The amount of interest accrued and remaining unpaid at the end of the accounting year. - - - The amount of further interest due and payable even in the succeeding year, until such date when the interest - - - Note: Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information dues as above are actually paid. Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. collected by the Management. 39 Note:Commitments and Contingencies Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. 39 Commitments and Contingencies As at As at As at 39 Commitments and Contingencies Particulars 31 March 2019 31 March 2018 Amount1 April Rs. 2017In Lakhs Amount in Rs. Amount in Rs. Amount in Rs. A. Contingent Liabilities: As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Income Tax Amount in Rs. Amount in Rs. Amount in Rs. A.- Income Contingent Tax (A.Y. Liabilities: 2011-12) - - 408.08 - Income Tax (A.Y. 2014-15) - - 9.60 Income- Income Tax Tax (A.Y. 2015-16) 1,124.50 1,124.50 - - Income Tax (A.Y. 2011-12)2016-17) 1,978.91 - - 408.08 - - Income Tax (A.Y. 2014-15) - - 9.60 B.- Income Commitments Tax (A.Y. 2015-16) 1,124.50 1,124.50 - - Income Tax (A.Y. 2016-17) 1,978.91 - - Estimated amount of contracts remaining to be executed on capital account and not provided for:
B.- Intangible Commitments Assets - 20.35 8.75 Estimated amount of contracts remaining to be executed on capital account and not provided for:
A)- Intangible Income TaxAssets - 20.35 8.75
Income Tax (A.Y. 2011-12) & (A.Y.2014-15) A) Income Tax The Company had received an Assessment order u/s. 148 for the AY 2011-12 with a demand of Rs. 408.08 Lakhs by taxing the receipt of share premium amount received by the Company as A)unexplainedIncome Income Taxcash (A.Y. Taxcredits. 2011-12)Further, & (A.Y.2014-15)the Company had also received an Assessment Order u/s. 143(3) for the AY 2014-15 with a demand of Rs. 959,630 disallowing ESOP expenses, interest expenses incurred to earn exempted income and penalties & fines. The Company had received an Assessment order u/s. 148 for the AY 2011-12 with a demand of Rs. 408.08 Lakhs by taxing the receipt of share premium amount received by the Company as unexplainedHowever duringcashthecredits.year theFurther,Companythe Companyhas paid anhadamountalso receivedof Rs. 83.52an AssessmentLakhs beingOrder20%u/s.of the143(3)totalfordemandthe AYfor2014-15the abovewithtwoa demandcases andof Rs.the 959,630same hasdisallowingbeen disclosedESOP asexpenses,part of Advanceinterest IncomeexpensesTax. Also Referincurred Tax Note to 10earn (A.Y. and exempted 11. 2011-12) income and penalties & (A.Y.2014-15)& fines.
HoweverThe Companyduringhadthefiledyearappealsthe Companyagainsthasthepaidabovean withamountthe ofCommissionerRs. 83.52 Lakhsof Incomebeing 20%Tax -ofAppealsthe totalanddemandthe Companyfor the abovehas receivedtwo casesa favourableand the sameorderhasvidebeentheirdisclosedorder datedas part30 ofAprilAdvance2018. TheTax.Based Also Companyon Referprofessional Note 10 advice, and had11. the company received strongly believe an that Assessment case will be decided in ordertheir favour andu/s. hence 148no provision for has the been considered. AY 2011-12 with a demand TheIncomeCompany Tax (A.Y.had filed2015-16)appeals against the above with the Commissioner of Income Tax - Appeals and the Company has received a favourable order vide their order dated 30 April 2018. Based on professional advice, the company strongly believe that case will be decided in their favour and hence no provision has been considered. ofDuring Rs.the 408.08FY1718, the LakhsCompany has byreceived taxingan Assessment the orderreceiptunder Section of 143(3)sharefor the premiumAY 2015-16 with amounta demand of Rs. received1,124.49 Lakhs bybytaxing thethe receiptCompanyof share premium as amount received by the Company as unexplained cash credits, expense claimed towards employee stock option scheme and disallowance of depreciation under Section 32 of the Income Tax Income Tax (A.Y. 2015-16) Act, 1961. unexplainedDuring the FY1718, the Companycash hascredits.received an AssessmentFurther,order theunder SectionCompany143(3) for the hadAY 2015-16 alsowith areceiveddemand of Rs. 1,124.49 an AssessmentLakhs by taxing the receipt Orderof share premiumu/s. TheamountCompanyreceivedhasbyfiledtheappealsCompanyagainstas unexplainedthe above withcashthecredits,Commissionerexpense claimedof IncometowardsTax - Appeals.employeeBasedstockonoptionprofessionalscheme advice,and disallowancethe companyof depreciationstrongly believeunderthatSectioncase will32 beof thedecidedIncomein theirTax 143(3)Act,favour 1961.and forhence notheprovision AYhas 2014-15been considered. withHowever aIn thedemandFY1718 the Company of Rs.has paid 959,630an amount of disallowingRs. 224.89 Lakhs being 20%ESOPof the total expenses,demand and the sameinteresthas been disclosed as part of Deposit under protest The Company has filed appeals against the above with the Commissioner of Income Tax - Appeals. Based on professional advice, the company strongly believe that case will be decided in their expensesConsideringfavour and hencethe factincurrednothat,provisionthe groundhas beentoof orderearnconsidered.received exemptedHoweverfor AY 2015-16In the FY1718is incomesimilarthetoCompanyorder andreceivedhas paid penaltiesforanAYamount2011-12ofandRs. &AY224.89 2014-15fines.Lakhsforbeingwhich20%the Companyof the totalhasdemandreceivedandfavourablethe sameorderhas beenfrom CIT(A),disclosedthe as Companypart of Depositexpects undera favourable protest order to received for AY 2015-16 also. Further, outflows, if any, arising out of these claims would depend on the outcome of the decision of the appellate authorities and the Company’s rights for future appeals. ConsideringIncome Taxthe (A.Y.fact 2016-17)that, the ground of order received for AY 2015-16 is similar to order received for AY 2011-12 and AY 2014-15 for which the Company has received favourable order from CIT(A), the Company expects a favourable order to received for AY 2015-16 also. Further, outflows, if any, arising out of these claims would depend on the outcome of the decision of the Duringappellatethe authoritiesFY1819, theandCompany the Company’shas received rights foran futureAssessment appeals.order under Section 143(3) for the AY 2016-17 with a demand of Rs. 1,978.90 Lakhs by taxing the receipt of share premium amountIncome received Tax (A.Y. by 2016-17)the Company as unexplained cash credits under Section 56(2)(viib) of the130 Income Tax Act, 1961. DuringThe Companythe FY1819,has filedtheappealsCompanyagainsthas receivedthe aboveanwithAssessmentthe Commissionerorder underof IncomeSectionTax143(3)- Appeals.for theBasedAY 2016-17on professionalwith a demandadvice, oftheRs.company1,978.90stronglyLakhs believeby taxingthatthecasereceiptwill beof decidedshare premiumin their amountfavour and receivedhence byno theprovision Companyhas asbeen unexplainedconsidered. cashHowever credits underIn the SectionFY1718 56(2)(viib)the Company of thehas Incomepaid an Taxamount Act, 1961.of Rs. 395.78 Lakhs being 20% of the total demand and the same has been disclosed as part of Deposit under protest The Company has filed appeals against the above with the Commissioner of Income Tax - Appeals. Based on professional advice, the company strongly believe that case will be decided in their Consideringfavour and hencethe factnothat,provisionthe groundhas beenof orderconsidered.receivedHoweverfor AY 2016-17In the FY1718is similarthetoCompanyorder receivedhas paidforanAYamount2011-12ofandRs. AY395.782014-15Lakhsforbeingwhich20%the Companyof the totalhasdemandreceivedandfavourablethe sameorderhas beenfrom CIT(A),disclosedthe as Companypart of Depositexpects undera favourable protest order to received for AY 2015-16 also. Further, outflows, if any, arising out of these claims would depend on the outcome of the decision of the appellate authorities and the Company’s rights for future appeals. Considering the fact that, the ground of order received for AY 2016-17 is similar to order received for AY 2011-12 and AY 2014-15 for which the Company has received favourable order from CIT(A), the Company expects a favourable order to received for AY 2015-16 also. Further, outflows, if any, arising out of these claims would depend on the outcome of the decision of the appellate authorities and the Company’s rights for future appeals. 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 However during the year the Company has paid an amount of Rs. 83.52 Lakhs being 20% of the total demand for the above two cases and the same has been disclosed as part of Advance Tax. Also Refer Note 10 and 11.
The Company had filed appeals against the above with the Commissioner of Income Tax - Appeals and the Company has received a favourable order vide their order dated 30 April 2018. Based on professional advice, the company strongly believe that case will be decided in their favour and hence no provision has been considered.
Income Tax (A.Y. 2015-16)
During the FY1718, the Company has received an Assessment order under Section 143(3) for the AY 2015-16 with a demand of Rs. 1,124.49 Lakhs by taxing the receipt of share premium amount received by the Company as unexplained cash credits, expense claimed towards employee stock option scheme and disallowance of depreciation under Section 32 of the Income Tax Act, 1961.
The Company has filed appeals against the above with the Commissioner of Income Tax - Appeals. Based on professional advice, the company strongly believe that case will be decided in their favour and hence no provision has been considered. However In the FY1718 the Company has paid an amount of Rs. 224.89 Lakhs being 20% of the total demand and the same has been disclosed as part of Deposit under protest Considering the fact that, the ground of order received for AY 2015-16 is similar to order received for AY 2011-12 and AY 2014-15 for which the Company has received favourable order from CIT(A), the Company expects a favourable order to received for AY 2015-16 also. Further, outflows, if any, arising out of these claims would depend on the outcome of the decision of the appellate authorities and the Company’s rights for future appeals.
Income Tax (A.Y. 2016-17)
During the FY1819, the Company has received an Assessment order under Section 143(3) for the AY 2016-17 with a demand of Rs. 1,978.90 Lakhs by taxing the receipt of share premium amount received by the Company as unexplained cash credits under Section 56(2)(viib) of the Income Tax Act, 1961.
The Company has filed appeals against the above with the Commissioner of Income Tax - Appeals. Based on professional advice, the company strongly believe that case will be decided in their favour and hence no provision has been considered. However In the FY1718 the Company has paid an amount of Rs. 395.78 Lakhs being 20% of the total demand and the same has been disclosed as part of Deposit under protest Considering the fact that, the ground of order received for AY 2016-17 is similar to order received for AY 2011-12 and AY 2014-15
131 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
for which the Company has received favourable order from CIT(A), the Company expects a favourable order to received for AY 2015-16 also. Further, outflows, if any, arising out of these claims would depend on the outcome of the decision of the appellate authorities and the Company’s rights for future appeals.
40. Disclosure Pursuant to Reserve Bank of India Master Direction DNBR. PD. Asirvad Microfinance Limited Notes forming008/03.10.119/2016-17 part of the Financial Statements for the yearupdated ended 31 March 16 2019 April 2019
40 Disclosure Pursuant to Reserve Bank of India Master Direction DNBR. PD. 008/03.10.119/2016-17 updated 16 April 2019 Asirvad40.1 Microfinance Customer Limited Complaints * Notes40.1 formingCustomer part Complaints of the Financial * Statements for the year ended 31 March 2019 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 - Asirvad40 MicrofinanceDisclosure Pursuant Limited to Reserve(a) Bank of India Master DirectionNo. of complaints DNBR. PD.pending 008/03.10.119/2016-17 as on 1 April 2018 updated 16 April 2019 Notes forming part of the Financial Statements for the year ended 31 March 2019 40.1 Customer Complaints * 9,967 40 Disclosure Pursuant to Reserve(b) Bank of India Master DirectionNo. of complaints DNBR. PD.received 008/03.10.119/2016-17 during the year updated 16 April 2019
(c) No. of complaints redressed during the year 9,965 - 40.140 DisclosureCustomer Complaints Pursuant to * Reserve(a) Bank of India Master DirectionNo. of complaints DNBR. PD.pending 008/03.10.119/2016-17 as on 1 April 2018 updated 16 April 2019 2 40.1 Customer Complaints * (d) No. of complaints pending as on 31 March 2019 9,967 - (a)(b) No. of complaints pendingreceived asduring on 1 theApril year 2018
9,9679,965 - * As disclosed by the Management(b)(a)(c) and relied upon by the Auditors.No. of complaints receivedpendingredressed asduring during on 1 theApril the year year2018 * As disclosed by the Management and relied upon by the Auditors. 9,967 2 40.2 Details of Registration with(b)(d)(c) Financial Regulators No. of complaints redressedreceivedpending asduring during on 31 the theMarch year year 2019 9,965 9,965 2 * As disclosed by the ManagementS.No(d)(c) and relied upon by the Auditors.No. of complaints pendingredressed as during on 31Regulator theMarch year 2019 Registration No. 1 Ministry of Company Affairs CIN:U65923TN2007PLC064550 2 40.240.2Details Details of Registration of with(d) Registration Financial Regulators No.with of complaints Financial pending as on 31 MarchRegulators 2019 * As disclosed by the Management and relied upon by the Auditors. N-07-00769 dated 2 Reserve Bank of India 4 October 2013 40.2 *Details As disclosed of Registration by the Management withS.No Financial and relied Regulators upon by the Auditors. Regulator Registration No. 40.3 Ratings assigned by Credit Rating Agencies 40.2 Details of Registration with1 Financial Regulators Ministry of Company Affairs CIN:U65923TN2007PLC064550 Asirvad Microfinance Limited S.No Regulator Registration No. N-07-00769 dated Notes forming part of the Financial2 Statements for the year endedReserve 31 March Bank of 2019 India As at As at As at 1 ParticularsMinistry of Company Affairs CIN:U65923TN2007PLC0645504 October 2013 S.No Regulator 31 March 2019 31 March 2018Registration No.1 April 2017 N-07-00769 dated 40.3 Ratings assigned by Credit12 Rating Agencies MinistryReserve ofBank Company of India Affairs CIN:U65923TN2007PLC064550 40 CommercialDisclosure paperPursuant to Reserve Bank of India Master Direction DNBR. PD. 008/03.10.119/2016-17 updatedCRISIL 16 April A1+ 2019 CRISIL A1+/Stable4 October 2013CRISIL A1+/Stable N-07-00769 dated 2 Reserve Bank of India CRISIL A+/Positive 40.340.1 LongRatingsCustomer Term assigned BankComplaints Facilities by Credit * Rating Agencies As at CRISILAs A+/Stable at 4 October 2013 CRISILAs A+/Stable at 40.3 Ratings assigned byParticulars Credit Rating Agencies CARE A+ / Stable 31 March 2019 31 March 2018 1 April 2017 40.3 Ratings assigned by Credit Rating Agencies As at ICRA AsA (Stable) at ICRA As A (Stable) at - Commercial paper (a) ParticularsNo. of complaints pending as on 1 April 2018 CRISIL A1+ CRISIL A1+/Stable CRISIL A1+/Stable 31 March 2019 31 March 2018 1 April 2017 CRISIL A+/Positive Long term Non-Convertible Debentures CRISILAs A+/Positive at CRISILAs A+/Stable at CRISIL As A+/Stable at 9,967 CommercialLong Term Bank paper Facilities (b) ParticularsNo. of complaints received during the year CARE A+ / Stable CRISIL A+/Stable CRISIL A+/Stable CARE31CRISIL March A+ / A1+ Stable2019 CRISIL31 March A1+/Stable 2018 CRISIL1 April A1+/Stable 2017 CRISIL A+/Positive CARE A+ CARE A+ 9,965 LongCommercial Term Bank paper Facilities (c) No. of complaints redressed during the year CRISIL A1+ CRISIL CRISILICRA AA1+/Stable A+/Stable (Stable) CRISIL CRISILICRA AA1+/Stable A+/Stable (Stable) CARE A+ / Stable MFI Grading MFICRISIL 1 (MFI A+/Positive One) - CARE MFI 1 (MFI One) - CARE MFI 1 (MFI One) - CARE 2 Long Termterm Non-ConvertibleBank Facilities Debentures(d) No. of complaints pending as on 31 March 2019 CRISILCRISIL A+/StableA+/Stable CRISILCRISIL A+/StableA+/Stable CARE A+ / Stable ICRA A (Stable) ICRA A (Stable) Subordinated Debt CRISILCRISIL A+A+/Positive / Positive CRISIL A+ Stable CRISIL A+ Stable Long term Non-Convertible Debentures CRISILICRACARE A A+/Stable (Stable) A+ CRISILICRACARE A A+/Stable (Stable) A+ * As disclosed by the Management and relied upon by the Auditors. CARE A+ / Stable CRISIL A+/Positive 40.4 LongMFIConcentration Grading term Non-Convertible of Advances, Debentures Exposures and NPA's MFI 1 (MFI One) - CARE MFICRISIL 1 (MFI A+/Stable One) - CARE MFICRISIL 1 (MFI A+/Stable One) - CARE 40.2 Details of Registration with Financial Regulators CARE A+ / Stable CARE A+ CARE A+ Subordinated Debt As at As at As at MFI Grading Particulars MFICRISIL 1 (MFI A+ One) / Positive - CARE MFICRISIL 1 (MFICARE A+One) A+ Stable - CARE MFICRISIL 1 (MFICARE A+One) A+ Stable - CARE S.No Regulator 31 March 2018 31 March 2018Registration No.1 April 2017 40.4 SubordinatedTotalMFIConcentration Grading Advances Debt andof Advances, Exposures1 toExposures twenty largest and NPA'sborrowers Ministry of Company Affairs MFICRISILRefer 1 (MFI A+Note One) / Positivebelow - CARE MFICRISILRefer 1 (MFI Note A+CIN:U65923TN2007PLC064550One) Stablebelow - CARE MFICRISILRefer 1 (MFI Note A+One) Stablebelow - CARE Total Exposure to top four NPA accounts Refer Note below Refer Note belowN-07-00769 datedRefer Note below 2 Reserve Bank of India Subordinated Debt CRISIL AsA+ at/ Positive CRISILAs A+ at Stable 4 October 2013CRISILAs A+ at Stable 40.4 PercentageConcentration of Advances of Advances, and Exposures Exposures to twenty and NPA's largestParticulars borrowers to Total Advances of the NBFC Refer Note below Refer Note below Refer Note below 31 March 2018 31 March 2018 1 April 2017 40.440.340.4TotalConcentrationRatings AdvancesConcentration assigned andof Advances, byExposures Credit RatingtoExposures twenty Agencies oflargest and Advances, NPA'sborrowers Exposures and NPA'sRefer AsNote at below Refer AsNote at below Refer AsNote at below The Company operates in the business of microfinanceParticularsproviding collateral free loans for fixed amounts ranging from Rs. 20,000 to Rs. 45,000 to women engaged in various income generating Total Exposure to top four NPA accounts Refer31 March Note 2018below Refer31 March Note 2018below Refer1 April Note 2017 below activities. As at 31 March 2019, the Company has provided loans to more than 18 lakhs women and hence, the disclosureAsrelating at to concentrationAsto advances,at exposures andAs NPA'sat are not Total Advances and Exposures to twenty largest borrowersParticularsParticulars Refer Note below Refer Note below Refer Note below applicablePercentage to of the Advances Company. and Exposures to twenty largest borrowers to Total Advances of the NBFC Refer3131 MarchMarch Note 2018below2019 Refer3131 MarchMarch Note 2018below2018 Refer11 AprilApril Note 20172017 below Total Exposure to top four NPA accounts Refer Note below Refer Note below Refer Note below TotalCommercial Advances paper and Exposures to twenty largest borrowers ReferCRISIL Note A1+ below CRISILRefer Note A1+/Stable below CRISILRefer Note A1+/Stable below 40.5 PercentageDetails of non-performingof Advances and Exposuresfinancial assetsto twenty purchased largest borrowers / sold to Total Advances of the NBFC TheTotalCompany Exposureoperates to top fourin theNPAbusiness accountsof microfinance providing collateral free loans for fixed amounts ranging from ReferRs. 20,000 Note belowto Rs. 45,000 toReferwomen Noteengaged below in variousReferincome Note belowgenerating CRISIL A+/Positive activities.Long TermAs Bankat 31 FacilitiesMarch 2019, the Company has provided loans to more than 18 lakhs women and hence, the disclosure relating to concentration CRISILto A+/Stableadvances, exposures CRISILand A+/StableNPA's are not TherePercentage have ofbeen Advances no Non andperforming Exposures assets to twenty purchased largest or borrowerssold by the to Company Total Advances as at 31 of March the NBFC 2019, 31 March 2018 andRefer 1 AprilNote 2017.below Refer Note below Refer Note below applicableThe Company to theoperates Company.in the business of microfinance providing collateral free loans for fixed amounts ranging from CARERs. 20,000 A+ / Stableto Rs. 45,000 to women engaged in various income generating activities. As at 31 March 2019, the Company has provided loans to more than 18 lakhs women and hence, the disclosure relating to concentration to advances, exposures and NPA's are not 40.6 Sector-wise NPAs as on 31 March 2019 ICRA A (Stable) ICRA A (Stable) 40.5 applicableTheDetailsCompany of to non-performing theoperates Company.in the financialbusiness ofassetsmicrofinance purchasedproviding / soldcollateral free loans for fixed amounts ranging from Rs. 20,000 to Rs. 45,000 to women engaged in various income generating CRISIL A+/Positive activities.Long termAs Non-Convertibleat 31 March 2019, Debenturesthe Company has provided loans to more than 18 lakhs women and hence, the disclosure relating to concentrationCRISILto A+/Stableadvances, exposuresCRISILand A+/StableNPA's are not The Company operates in the business of microfinancePercentageCARE providingA+ of/ Stable NPAs to Percentage collateral of NPAs freePercentage loans of NPAs forto 40.5 applicableThereDetails have of to non-performingbeen the Company.no Non performing financial assets assets purchased purchased or sold / soldby the Company as at 31 March 2019, 31 March 2018 and 1 April 2017. Total Advances in that to Total Advances in Total Advances in that Sl.No Sector CARE A+ CARE A+ sector as on that sector as on sector as on 40.540.6 ThereDetailsSector-wise have of non-performingbeen NPAs no asNon on performing 31 financial March assets 2019 assets purchased purchased or sold / soldby the Company as at 31 March 2019, 31 March 2018 and 1 April 2017. fixed amounts ranging from Rs. 20,000 to Rs. 45,000 to 31 Marchwomen 2019 engaged31 March 2018in various1 April income 2017 MFI Grading MFI 1 (MFI One) - CARE MFI 1 (MFI One) - CARE MFI 1 (MFI One) - CARE 40.6 ThereSector-wise have been NPAs no asNon on performing 311 March assets 2019 purchased or soldAgriculture by the Company & allied as activities at 31 March 2019, 31 March 2018Percentage and 1 0.53%April of 2017. NPAs to Percentage1.65% of NPAs Percentage2.62% of NPAs to generatingSubordinated Debt activities.2 As at 31MSME March 2019, the CompanyTotalCRISIL has Advances0.40% A+ provided/ Positive in that to CRISILTotal loans2.88% Advances A+ Stable to in moreTotalCRISIL Advances5.64% thanA+ Stable in that 18 40.6 Sector-wise NPAs as on Sl.No313 March 2019 Corporate borrowers Sector NA NA NA Percentagesector ofas NPAson to Percentagethat sector of as NPAs on Percentagesector ofas NPAson to 4 Services NA NA NA 40.4 Concentration of Advances, Exposures and NPA's Total31 Advances March 2019 in that to Total31 March Advances 2018 in Total1 Advances April 2017 in that Sl.No5 Unsecured personal loansSector NA NA NA lakhs women and hence, the disclosure relating to concentrationPercentagesector ofas NPAson to to advances,Percentagethat sector of as NPAs on exposures Percentagesector ofas NPAson and to 61 AutoAgriculture loans (commercial& allied activities vehicles) 0.53%NA 1.65%NA 2.62%NA Total Advances in that to Total Advances in Total Advances in that Sl.No72 OtherMSME loans Sector 31 March0.40%AsNA at 2019 31 March2.88%AsNA at 2018 1 April5.64%AsNA at2017 Particulars sector as on that sector as on sector as on 13 AgricultureCorporate borrowers & allied activities 31 March0.53%NA 2018 31 March1.65%NA 2018 1 April2.62%NA 2017 NPA's are not applicable to the Company. 31 March 2019 31 March 2018 1 April 2017 40.7 ProvisionsTotal Advances and and Contingencies Exposures24 to twenty largest borrowers MSMEServices Refer0.40% NoteNA below Refer2.88% NoteNA below Refer5.64% NoteNA below 5 Unsecured personal loans NA NA NA Total Exposure to top four NPA31 accounts CorporateAgriculture borrowers & allied activities Refer0.53% NoteNA below Refer1.65% NoteNA below Refer2.62% NoteNA below 6 Auto loans (commercial vehicles) NA NA NA 42 ServicesMSME For the0.40% YearNA Ended For the2.88% YearNA Ended 5.64%NA Percentage of Advances and Exposures7 to twenty largest borrowersOther loans to Total Advances of the NBFC Refer NoteNA below Refer NoteNA below Refer NoteNA below 40.5 Details of 53non-performingParticularsUnsecuredCorporate financial borrowerspersonal loans assets purchased31 MarchNA 2019 /sold 31 MarchNA 2018 NA 64 AutoServices loans (commercial vehicles) Amount Rs.inNA Lakhs Amount Rs.inNA Lakhs NA 40.7 Provisions and Contingencies75 OtherUnsecured loans personal loans NA NA NA ImpairmentThe Company Lossoperates Allowancein the business of microfinance providing collateral free loans for fixed amounts ranging from Rs. 20,000 1,977.89to Rs. 45,000 to women 12,427.67engaged in various income generating activities. As at 31 March 2019,6 the Company has providedAutoloans loansto more (commercialthan 18 lakhsvehicles)women and hence, the disclosure NArelating to concentration toNAadvances, exposures andNANPA's are not ProvisionProvisions for andIncome Contingencies Tax (excluding7 deferred tax) Other loans For the Year NA 4,711.00Ended For the Year NA Ended - NA 40.7 applicable to the Company. There have been no Non Particularsperforming assets purchased 31or March sold 2019 by the31 March Company 2018 as at 31 40.7 Provisions and Contingencies AmountFor the YearRs.in Ended Lakhs AmountFor the YearRs.in Ended Lakhs 40.5 Details of non-performing financial assets purchased / sold MarchImpairment 2019, Loss Allowance 31 March 2018Particulars and 1 April 2017. 31 March 2019 1,977.89 31 March 12,427.67 2018 For the Year Ended For the Year Ended Provision for Income Tax (excluding deferred tax) Amount Rs.in 4,711.00 Lakhs Amount Rs.in Lakhs - There have been no Non performing assets purchasedParticulars or sold by the Company as at 31 March 2019, 31 March 2018 and31 March1 April 2017.2019 31 March 2018 Impairment Loss Allowance 1,977.89 12,427.67 Amount Rs.in Lakhs Amount Rs.in Lakhs 40.6 ProvisionSector-wise for Income NPAs asTax on (excluding 31 March deferred 2019 tax) 4,711.00 - Impairment Loss Allowance 1,977.89 12,427.67 Provision for Income Tax (excluding deferred tax) Percentage of 4,711.00 NPAs to Percentage of NPAs - Percentage of NPAs to Total Advances in that to Total Advances in Total Advances in that Sl.No Sector 132 sector as on that sector as on sector as on 31 March 2019 31 March 2018 1 April 2017 1 Agriculture & allied activities 0.53% 1.65% 2.62% 2 MSME 0.40% 2.88% 5.64% 3 Corporate borrowers NA NA NA 4 Services NA NA NA 5 Unsecured personal loans NA NA NA 6 Auto loans (commercial vehicles) NA NA NA 7 Other loans NA NA NA
40.7 Provisions and Contingencies
For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in Lakhs Amount Rs.in Lakhs Impairment Loss Allowance 1,977.89 12,427.67 Provision for Income Tax (excluding deferred tax) 4,711.00 - Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
40 Disclosure Pursuant to Reserve Bank of India Master Direction DNBR. PD. 008/03.10.119/2016-17 updated 16 April 2019
40.1 Customer Complaints *
- (a) No. of complaints pending as on 1 April 2018 Asirvad Microfinance Limited 9,967 Notes forming part of the Financial Statements(b) for the year ended 31 MarchNo. 2019 of complaints received during the year 9,965 40 Disclosure Pursuant to Reserve(c) Bank of India Master Direction DNBR.No. of PD. complaints 008/03.10.119/2016-17 redressed during updated the year 16 April 2019 2 40.1 Customer Complaints * (d) No. of complaints pending as on 31 March 2019
- (a) No. of complaints pending as on 1 April 2018 * As disclosed by the Management and relied upon by the Auditors. 9,967 (b) No. of complaints received during the year 40.2 Details of Registration with Financial Regulators (c) No. of complaints redressed during the year 9,965 S.No Regulator Registration 2 No. (d) No. of complaints pending as on 31 March 2019 1 Ministry of Company Affairs CIN:U65923TN2007PLC064550 * As disclosed by the Management and relied upon by the Auditors. N-07-00769 dated 2 Reserve Bank of India 4 October 2013 40.2 Details of Registration with Financial Regulators 40.3 Ratings assigned by Credit Rating Agencies S.No Regulator Registration No. 1 Ministry of Company Affairs As atCIN:U65923TN2007PLC064550 As at As at Particulars N-07-00769 dated 2 Reserve Bank of India 31 March 2019 31 March 2018 1 April 2017 4 October 2013 Commercial paper CRISIL A1+ CRISIL A1+/Stable CRISIL A1+/Stable 40.3 Ratings assigned by Credit Rating Agencies CRISIL A+/Positive Long Term Bank Facilities CRISIL A+/Stable CRISIL A+/Stable As at CARE A+ /As Stable at As at Particulars 31 March 2019 31 March 2018 1 April 2017 ICRA A (Stable) ICRA A (Stable) Commercial paper CRISIL A1+ CRISIL A1+/Stable CRISIL A1+/Stable CRISIL A+/Positive Long term Non-Convertible Debentures CRISIL A+/Positive CRISIL A+/Stable CRISIL A+/Stable Long Term Bank Facilities CARE CRISIL A+ / StableA+/Stable CRISIL A+/Stable CARE A+ / Stable ICRA A (Stable) ICRACARE A (Stable) A+ CARE A+ CRISIL A+/Positive LongMFI term Grading Non-Convertible Debentures MFI 1 (MFICRISIL One) A+/Stable - CARE MFI 1CRISIL (MFI One)A+/Stable - CARE MFI 1 (MFI One) - CARE CARE A+ / Stable
Subordinated Debt CRISIL A+CARE / Positive A+ CRISILCARE A+ A+Stable CRISIL A+ Stable
MFI Grading MFI 1 (MFI One) - CARE MFI 1 (MFI One) - CARE MFI 1 (MFI One) - CARE 40.4 Concentration of Advances, Exposures and NPA's Subordinated Debt CRISIL A+ / Positive CRISIL A+ Stable CRISIL A+ Stable As at As at As at Particulars 40.4 Concentration of Advances, Exposures and NPA's 31 March 2018 31 March 2018 1 April 2017 Total Advances and Exposures to twenty largest borrowers Refer Note below Refer Note below Refer Note below As at As at As at Particulars Total Exposure to top four NPA accounts 31 March 2018 Refer31 Note March below 2018 Refer1 April Note 2017 below Refer Note below TotalPercentage Advances ofand Advances Exposures and to twenty Exposures largest to borrowers twenty largest borrowers to Total Advances of the NBFC Refer Note below ReferRefer Note Note below below ReferRefer Note Note belowbelow Refer Note below Total Exposure to top four NPA accounts Refer Note below Refer Note below Refer Note below Percentage of Advances and Exposures to twenty largest borrowers to Total Advances of the NBFC Refer Note below Refer Note below Refer Note below The Company operates in the business of microfinance providing collateral free loans for fixed amounts ranging from Rs. 20,000th to Rs. 45,000 to women engaged in various income generating activities. As at 31 March 2019, the Company has provided loans to more than 18 lakhs women and hence, the disclosure12 relating Annualto concentration Reportto 2018-19advances, exposures and NPA's are not TheapplicableCompany tooperates the Company.in the business of microfinance providing collateral free loans for fixed amounts ranging from Rs. 20,000 to Rs. 45,000 to women engaged in various income generating Asirvadactivities. MicrofinanceAs at 31 March 2019, Limitedthe Company has provided loans to more than 18 lakhs women and hence, the disclosure relating to concentration to advances, exposures and NPA's are not applicable to the Company. 40.5NotesDetails forming of non-performing part of the financial Financial assets Statements purchased / for sold the year ended 31 March 2019 40.5 Details of non-performing financial assets purchased / sold There have been no Non performing assets purchased or sold by the Company as at 31 March 2019, 31 March 2018 and 1 April 2017. There have been no Non performing assets purchased or sold by the Company as at 31 March 2019, 31 March 2018 and 1 April 2017. 40.640.6Sector-wise Sector-wise NPAs as on 31 NPAs March 2019 as on 31 March 2019 40.6 Sector-wise NPAs as on 31 March 2019
Percentage of NPAsPercentage to Percentage of NPAs of NPAs to PercentagePercentage of of NPAs NPAs to Percentage of NPAs to Total Advances inTotal that Advancesto Total Advances in that in toTotal Total Advances Advances in that in Total Advances in that Sl.NoSl.No Sector Sector sector as on sectorthat sectoras on as on thatsector sector as as on on sector as on 31 March 2019 31 March31 March 2019 2018 31 1March April 2017 2018 1 April 2017 1 Agriculture & allied activities 0.53% 1.65% 2.62% 1 Agriculture & allied activities 0.53% 1.65% 2.62% 2 MSME 0.40% 2.88% 5.64% 3 2 Corporate borrowersMSME NA 0.40%NA 2.88%NA 5.64% 4 3 Services Corporate borrowers NA NA NA NANA NA 5 4 Unsecured Servicespersonal loans NA NA NA NANA NA 6 5 Auto loans Unsecured(commercial personalvehicles) loans NA NA NA NANA NA 7 6 Other loansAuto loans (commercial vehicles) NA NA NA NANA NA 7 Other loans NA NA NA 40.7 Provisions and Contingencies
40.740.7Provisions Provisions and Contingencies and Contingencies For the Year Ended For the Year Ended Particulars 31 March 2019 31 March 2018 Amount Rs.in LakhsFor theAmount Year Rs.in Ended Lakhs For the Year Ended Impairment Loss Allowance Particulars 1,977.8931 March 2019 12,427.67 31 March 2018 Provision for Income Tax (excluding deferred tax) 4,711.00Amount Rs.in Lakhs - Amount Rs.in Lakhs Impairment Loss Allowance 1,977.89 12,427.67 Provision for Income Tax (excluding deferred tax) 4,711.00 - Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
40.840.8Movement Movement of NPAs of NPAs
As at As at As at 1 April 2017 Sl.No Particulars 31 March 2019 31 March 2018 Amount Rs.in lakhs Amount Rs.in lakhs Amount Rs.in lakhs (i) Net NPAs to Net Advances (%) 0.00% 0.23% 1.36% (ii) Movement of NPAs (Gross) (a) Opening balance 5,676.13 8,022.48 97.06 (b) Additions during the year 1,694.17 12,003.83 8,349.36 (c) Reductions during the year (5,523.09) (14,350.18) (423.94) (d) Closing balance 1,847.21 5,676.13 8,022.48 (iii) Movement of Net NPAs (a) Opening balance - 2,339.49 71.84 (b) Additions during the year - - 2,267.65 (c) Reductions during the year - (1,769.70) - (d) IND AS Adjustments 569.79 2,339.49 (e) Closing balance - - - Movement of provisions for receivables under (iv) financing activities (a) Opening balance 7,747.39 9,676.84 1,023.09 (b) Provisions made during the year 1,977.89 12,427.67 9,208.56 (c) Write-off / write-back of excess provisions (5,523.09) (14,357.12) (554.81) (d) Closing balance 4,202.19 7,747.39 9,676.84
40.9 40.9During During the year there the are no yearinstances thereof Single Borrower are Limitno (SGL) instances / Group Borrower of Limit Single (GBL) exceeding Borrower the sanctioned limit Limit or outstanding (SGL) or entire / outstanding Group whichever Borrower is higher. 40.10 During the year company has not given any advances with intangible collateral such as charge over the rights, licenses, authority etc. 40.11 RegistrationLimit Obtained(GBL) from Otherexceeding Financial Sector Regulatorsthe sanctioned limit or outstanding or entire outstanding During the year the company has not obtained any registrations from other financial regulators. 40.12 Penaltieswhichever Imposed by RBIis andhigher. Other Regulators No penalties imposed by RBI or Other Regulators. 40.1340.10Investments During the year company has not given any advances with intangible collateral such As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 as charge over the rights, licenses, authority etc. Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Value of Investments (i) Gross Value of Investments (a) In India 5.00 5.00 5.00 40.11 (b) RegistrationOutside India, Obtained from Other Financial Sector Regulators - - - (ii) Provisions for Depreciation - - - (a) In India - - - (b) Outside India, - - - (iii) NetDuring Value of Investments the year the company has not obtained any registrations - from other - financial - (a) In India 5.00 5.00 5.00 (b) Outside India. - - - Movementregulators. of provisions held towards depreciation on investments - - - (i) Opening balance - - - (ii) Add : Provisions made during the year - - - (iii) Less : Write-off / write-back of excess - - - 40.12(iv) Closing Penalties balance Imposed by RBI and Other Regulators - - - 40.14 Derivatives: The Company has no transactions / exposure in derivatives for all years presented.
41 DisclosureNo Pursuant penalties to Reserve imposed Bank of India Master by DirectionRBI or DNBR. Other PD. 008/03.10.119/2016-17 Regulators. (updated 16th April, 2019)
Capital Adequacy Ratio
As at As at As at Particulars 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Tier I Capital 70,811.78 22,116.84 23,850.19 Tier II Capital 5,315.30 10,114.06 11,194.08 Total Capital 76,127.08 32,230.90 35,044.28 Total Risk Assets 239,688.73 212,241.96 170,150.08 Capital Ratios Tier I Capital as a percentage of Total Risk Assets (%) 29.54% 10.42% 14.02% Tier II Capital as a percentage of Total Risk Assets (%) 2.22% 4.77% 6.58% Total Capital (%) 31.76% 15.19% 20.60%
Amount of subordinated debt raised as Tier II Capital 11,414.15 11,407.06 11,412.46 Amount raised by issue of Perpetual Debt Instruments - - -
41.1 Exposure to Real Estate Sector (Amount Rs.in Lakhs) Category As 133at 31 March 2019 As at 31 March 2018 As at 1 April 2017 a) Direct Exposure (i) Residential Mortgages Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented
(ii) Commercial Real Estate - Lending secured by mortgages on commercial real estates (office buildings, retail space, multi-purpose commercial premises, multi-family residential buildings, multi- tenanted commercial premises, industrial or warehouse space, hotels, land 203.59 333.74 315.41 acquisition, development and construction, etc.). Exposure shall also include non- fund based limits
(iii) Investments in Mortgage Backed Securities (MBS) and other - - - securitised exposures - a.Residential b.Commercial Real Estate Total Exposure to Real Estate Sector 203.59 333.74 315.41
41.2 Exposure to Capital Market
The Company does not have any exposure to Capital market as at 31 March 2019 ,31 March 2018 and 1 April 2017.
41.3 Draw Down from Reserves
No Drawdown from Reserves has been noted in the financial years ended 31 March 2019, 31 March 2018 and 1 April 2017.
41.4 Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
There are no overseas assets of the Company as there are no Joint Ventures and subsidiaries abroad
41.5 Off-balance Sheet SPVs sponsored
There have been no off- balance sheet SPVs sponsored by the Company during the financial years ended 31 March 2019, 31 March 2018 and 1 April 2017 Asirvad Microfinance Limited AsirvadNotes Microfinance forming part Limited of the Financial Statements for the year ended 31 March 2019 Notes forming part of the Financial Statements for the year ended 31 March 2019 40.8 Movement of NPAs Movement of NPAs 40.8 As at As at As at 1 April 2017 Sl.No Particulars 31 March 2019 31 March 2018 As at Amount Rs.in lakhsAs at Amount Rs.in lakhs Amount Rs.in lakhs As at 1 April 2017 Sl.No(i) Net NPAs to Net Advances (%) Particulars 0.00% 31 March 0.23%2019 31 March1.36% 2018 Amount Rs.in lakhs Asirvad Microfinance Limited (ii) Movement of NPAs (Gross) Amount Rs.in lakhs Amount Rs.in lakhs Notes forming part of the Financial Statements(i) for the year ended 31(a) MarchOpeningNet 2019 balance NPAs to Net Advances (%) 5,676.13 8,022.480.00% 97.06 0.23% 1.36% (b) Additions during the year 1,694.17 12,003.83 8,349.36 (ii) Movement of NPAs (Gross) (c) Reductions during the year (5,523.09) (14,350.18) (423.94) (a) Opening balance 5,676.13 8,022.48 97.06 40.8 Movement of NPAs (d) Closing balance 1,847.21 5,676.13 8,022.48 1,694.17 12,003.83 8,349.36 (iii) Movement(b) of Additions Net NPAs during the year As at As at (14,350.18) (423.94) (a) Opening(c) balance Reductions during the year - 2,339.49 (5,523.09) As at 1 71.84April 2017 Sl.No Particulars 31 March 2019 31 March 2018 (b) Additions(d) duringClosing the balanceyear - 1,847.21 - Amount 2,267.65 Rs.in 5,676.13 lakhs 8,022.48 Amount Rs.in lakhs Amount Rs.in lakhs (iii) (c) ReductionsMovement during the ofyear Net NPAs - (1,769.70) - (i) Net NPAs to Net Advances (%) 0.00% 0.23% 1.36% (d) IND AS(a) Adjustments Opening balance 569.79 - 2,339.49 2,339.49 71.84 (ii) Movement(e) Closing of balanceNPAs (Gross) (b) Additions during the year - - - - - 2,267.65 (a) OpeningMovement balanceof provisions for receivables under 5,676.13 8,022.48 97.06 (c) Reductions during the year 1,694.17 12,003.83 - (1,769.70) 8,349.36 - (iv) (b) Additionsfinancing duringactivities the year (c) Reductions(d) during IND theAS yearAdjustments (5,523.09) (14,350.18) 569.79 (423.94) 2,339.49 (d) Closing(a) Opening balance(e) balance Closing balance 7,747.39 1,847.21 9,676.84 5,676.13 - 1,023.09 8,022.48 - - (iii) Movement(b) Provisions ofMovement Net made NPAs duringof theprovisions year for receivables under 1,977.89 12,427.67 9,208.56 (iv) (a) Opening(c) Write-off balancefinancing / write-back activities of excess provisions (5,523.09) - (14,357.12) 2,339.49 (554.81) 71.84 (b) Additions during the year - - 2,267.65 (d) Closing balance 4,202.19 7,747.39 9,676.84 (c) Reductions(a) during Opening the year balance - 7,747.39 (1,769.70) 9,676.84 - 1,023.09 (d) IND AS Adjustments 569.79 2,339.49 40.9 (b) Provisions made during the year 1,977.89 12,427.67 9,208.56 th During the year there are no instances of Single Borrower(e) Limit Closing (SGL) balance / Group Borrower Limit (GBL) exceeding the sanctioned limit or outstanding - or entire outstanding - whichever is higher. - 12 Annual Report 2018-19 Movement of(c)provisions Write-off /for write-backreceivables of underexcess provisions (5,523.09) (14,357.12) (554.81) (iv) financing activities Asirvad40.10 MicrofinanceDuring the year company Limited has not given any advances with intangible collateral(d) Closing such asbalance charge over the rights, licenses, authority etc. 4,202.19 7,747.39 9,676.84 (a) Opening balance 7,747.39 9,676.84 1,023.09 40.11 Registration Obtained from Other Financial Sector Regulators 40.9 (b) Provisions made during the year 1,977.89 12,427.67 9,208.56 NotesDuring formingDuring the yearthe part year there the of companyare the no Financialhasinstances not obtained of Single Statementsany registrations Borrower from Limitfor other (SGL)the financial year / Groupregulators. end Borrowered 31 Limit March (GBL) 2019 exceeding the sanctioned limit or outstanding or entire outstanding whichever is higher. (c) Write-off / write-back of excess provisions (5,523.09) (14,357.12) (554.81) 40.12 Penalties Imposed by RBI and Other Regulators (d) Closing balance 40.10 During the year company has not given any advances with intangible collateral such as charge over the rights, 4,202.19 licenses, authority etc. 7,747.39 9,676.84 No penalties imposed by RBI or Other Regulators. 40.9 40.11DuringRegistration the year there Obtained are no instances from ofOther Single Financial Borrower Limit Sector (SGL) Regulators / Group Borrower Limit (GBL) exceeding the sanctioned limit or outstanding or entire outstanding whichever is higher. 40.1340.13 InvestmentsInvestments During the year the company has not obtained any registrations from other financial regulators. 40.10 During the year company has not given any advances with intangible collateral such as charge over the rights, licenses, authority etc. As at As at As at 40.12 Penalties Imposed by RBI and Other Regulators 40.11 Registration Obtained from Other Financial SectorParticulars Regulators 31 March 2019 31 March 2018 1 April 2017 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs DuringNo thepenalties year the imposed company byhas RBI not orobtained Other anyRegulators. registrations from other financial regulators. Value of Investments 40.1240.13PenaltiesInvestments (i)Imposed Gross Value by ofRBI Investments and Other Regulators (a) In India 5.00 5.00 5.00 No penalties imposed by RBI or Other Regulators. (b) Outside India, - - - As at As at As at 40.13 Investments(ii) Provisions for Depreciation - - - (a) In India Particulars - 31 March 2019 - 31 March 2018- 1 April 2017 (b) Outside India, As at - Amount Rs.in As at Lakhs - Amount As Rs.in at - Lakhs Amount Rs.in Lakhs (iii) Net Value of Investments - - - Value of Investments Particulars 31 March 2019 31 March 2018 1 April 2017 (a) In India 5.00 5.00 5.00 Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs (i) Gross (b)Value Outside of InvestmentsIndia. - - - Value of (a) Investments Movement In India of provisions held towards depreciation on investments - - 5.00 - 5.00 5.00 (i) Gross (b)Value(i) Outside Opening of Investments balanceIndia, ------(ii)(a) InProvisions India(ii) Add : Provisionsfor Depreciation made during the year -5.00 - 5.00 - - 5.00 - - (b) Outside India, - - - (a)(iii) In Less India : Write-off / write-back of excess ------(ii) Provisions(iv) forClosing Depreciation balance ------(a) In (b) India Outside India, ------(iii) Net Value of Investments - - - 40.14(b) OutsideDerivatives: India, - - - (iii) Net Value(a) In of India Investments - 5.00 - 5.00 - 5.00 40.14 (a) In (b)Derivatives: IndiaThe Outside Company India. has no transactions / exposure in derivatives for all years presented. 5.00 5.00 - 5.00 - - (b)Movement Outside India. of provisions held towards depreciation on investments - - - 41 Disclosure Pursuant to Reserve Bank of India Master Direction DNBR. PD. 008/03.10.119/2016-17 (updated 16th April, 2019) - - - Movement(i) Opening of provisions balance held towards depreciation on investments ------(i) Opening balance - - - (ii) Add : Provisions made during the year - - - (ii) AddThe : ProvisionsCapital Company Adequacy made during Ratio the has year no transactions / exposure in derivatives for - all years presented. - - (iii) (iii)Less Less: Write-off : Write-off / write-back / write-back of excess of excess ------(iv) (iv)Closing Closing balance balance As at - As at - - As at -- - Particulars 31 March 2019 31 March 2018 1 April 2017 40.1440.14Derivatives:Derivatives: Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs 41. DisclosureTier I Capital Pursuant to Reserve Bank of India Master 70,811.78 Direction 22,116.84 DN 23,850.19BR. PD. The TheCompany CompanyTier hasII Capital no has transactions no transactions / exposure / exposurein derivatives in derivativesfor all years presented.for all years presented. 5,315.30 10,114.06 11,194.08 Total Capital 76,127.08 32,230.90 35,044.28 41 Disclosure Pursuant to Reserve Bank of India Master Direction DNBR. PD. 008/03.10.119/2016-17 (updated 16th April, 2019) 41 008/03.10.119/2016-17DisclosureTotal Risk Pursuant Assets to Reserve Bank of(updated India Master Direction 16th DNBR.April, PD. 008/03.10.119/2016-17 2019) Capital 239,688.73 (updated Adequacy 16th 212,241.96 April, Ratio 2019) 170,150.08 Capital Ratios Capital Adequacy Ratio CapitalTier Adequacy I Capital as a Ratiopercentage of Total Risk Assets (%) 29.54% 10.42% 14.02% Tier II Capital as a percentage of Total Risk Assets (%) 2.22% 4.77% 6.58% As at As at As at Total Capital (%) 31.76% 15.19% 20.60% Particulars 31 March 2019 31As March at 2018 1 AprilAs at 2017 As at Amount of subordinated debt raised as Tier II CapitalParticulars Amount 11,414.15Rs.in Lakhs 31 Amount March 11,407.06 Rs.in 2019 Lakhs Amount 31 11,412.46 March Rs.in 2018 Lakhs 1 April 2017 Tier I Capital 70,811.78 22,116.84 23,850.19 Amount raised by issue of Perpetual Debt Instruments - Amount Rs.in - Lakhs Amount Rs.in - Lakhs Amount Rs.in Lakhs Tier II Capital 5,315.30 10,114.06 11,194.08 TotalTier Capital I Capital 76,127.08 70,811.78 32,230.90 22,116.84 35,044.28 23,850.19 41.1 Exposure to Real Estate Sector TotalTier Risk II CapitalAssets 239,688.73 212,241.965,315.30 10,114.06170,150.08 11,194.08 (Amount Rs.in Lakhs) CapitalTotal Ratios Capital 76,127.08 32,230.90 35,044.28 Tier TotalI Capital Risk as a Assets percentage of Total Risk AssetsCategory (%) As at 31 March 2019 As at 31 March 201829.54% As at 1 April 239,688.73 2017 10.42% 212,241.9614.02% 170,150.08 Tier CapitalII Capital Ratios as a percentage of Total Risk Assets (%) 2.22% 4.77% 6.58% Total Capitala) Direct (%) Exposure 31.76% 15.19% 20.60% Tier I Capital(i) Residential as a percentage Mortgages of Total Risk Assets (%) 29.54% 10.42% 14.02% Tier II Capital as a percentage of Total Risk Assets (%) 2.22% 4.77% 6.58% Amount ofLending subordinated fully secured debt by mortgagesraised as on Tier residential II Capital property that is or will be 11,414.15 11,407.06 11,412.46 AmountTotal raised occupiedCapital by by issue(%) the borrower of Perpetual or that isDebt rented Instruments - 31.76% - 15.19% - 20.60%
41.1 ExposureAmount (ii)to Real Commercialof subordinated Estate RealSector Estate debt - raised as Tier II Capital 11,414.15 11,407.06 11,412.46 41.1 Amount ExposureLending raised secured by by issue tomortgages ofReal Perpetual on commercial Estate Debt real estates Instruments Sector(office buildings, retail (Amount Rs.in Lakhs) - - - space, multi-purpose commercialCategory premises, multi-family residential buildings, multi- As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 41.1 Exposuretenanted to commercialReal Estate premises, Sector industrial or warehouse space, hotels, land 203.59 333.74 315.41 a) Direct Exposureacquisition, development and construction, etc.). Exposure shall also include non- (Amount Rs.in Lakhs) (i) Residentialfund based Mortgages limits Lending fully secured by mortgages on residentialCategory property that is or will be As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 occupied by(iii) the Investments borrower or inthat Mortgage is rented Backed Securities (MBS) and other - - - a) Directsecuritised Exposure exposures - (ii) (i)Commercial Residentiala.Residential Real MortgagesEstate - LendingLending securedb.Commercial fully by secured mortgages Real Estate by on mortgages commercial on real residential estates (office property buildings, that retail is or will be space,occupied multi-purposeTotal by Exposure the commercial borrower to Real Estate premises,or that Sector is multi-familyrented residential buildings, multi- 203.59 333.74 315.41 tenanted commercial premises, industrial or warehouse space, hotels, land 203.59 333.74 315.41 Exposure to Capital Market acquisition,41.2 development and construction, etc.). Exposure shall also include non- (ii) Commercial Real Estate - fund based limits LendingThe secured Company bydoes mortgages not have any on exposure commercial to Capital real market estates as at 31 (office March 2019buildings, ,31 March retail 2018 and 1 April 2017. (iii)space, Investments multi-purpose in Mortgage commercial Backed Securitiespremises, (MBS)multi-family and other residential buildings, multi- 41.3 Draw Down from Reserves - - - securitisedtenanted exposures commercial - premises, industrial or warehouse space, hotels, land 203.59 333.74 315.41 a.Residentialacquisition, development and construction, etc.). Exposure shall also include non- b.CommercialNo DrawdownReal Estate from Reserves has been noted in the financial years ended 31 March 2019, 31 March 2018 and 1 April 2017. Totalfund Exposure based to limits Real Estate Sector 203.59 333.74 315.41 41.4 Overseas Assets (for those with Joint Ventures and Subsidiaries abroad) Exposure(iii) Investments to Capital Market in Mortgage Backed Securities (MBS) and other 41.2 - - - securitisedThere are exposures no overseas assets - of the Company as there are no Joint Ventures and subsidiaries abroad The a.ResidentialCompany does not have any exposure to Capital market as at 31 March 2019 ,31 March 2018 and 1 April 2017. 41.5 Off-balance Sheet SPVs sponsored b.Commercial Real Estate 41.3 Draw Down from Reserves Total ExposureThere have beento Real no off- Estate balance Sector sheet SPVs sponsored by the Company during the financial years ended 31 March 2019, 31 March 203.59 2018 and 1 April 2017 333.74 315.41 No Drawdown from Reserves has been noted in the financial years ended 31 March 2019, 31 March 2018 and 1 April 2017. 41.2 Exposure to Capital Market 41.4 Overseas Assets (for those with Joint Ventures and Subsidiaries abroad) 41.2 TheExposure Company does notto have Capital any exposure Market to Capital market as at 31 March 2019 ,31 March 2018 and 1 April 2017. There are no overseas assets of the Company as there are no Joint Ventures and subsidiaries abroad 41.3 Draw Down from Reserves 41.5 Off-balanceThe Sheet Company SPVs sponsored does not have any exposure to Capital market as at 31 March 2019 ,31 ThereNo have Drawdown been no off-from balance Reserves sheet has SPVs been sponsored noted byin the Company financial during years the ended financial 31 Marchyears ended 2019, 31 31 March March 2019, 2018 31 Marchand 1 2018April and 2017. 1 April 2017
41.4 MarchOverseas Assets 2018 (for and those with1 April Joint Ventures 2017. and Subsidiaries abroad)
There are no overseas assets of the Company as there are no Joint Ventures and subsidiaries abroad
41.341.5 Off-balanceDraw SheetDown SPVs sponsoredfrom Reserves There have been no off- balance sheet SPVs sponsored by the Company during the financial years ended 31 March 2019, 31 March 2018 and 1 April 2017 No Drawdown from Reserves has been noted in the financial years ended 31 March 2019, 31 March 2018 and 1 April 2017.
134 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
41.4 Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
There are no overseas assets of the Company as there are no Joint Ventures and subsidiaries abroad
41.5 Off-balance Sheet SPVs sponsored
There have been no off- balance sheet SPVs sponsored by the Company during the financial years ended 31 March 2019, 31 March 2018 and 1 April 2017
Asirvad41.6 Microfinance Asset Limited Liability Management Notes forming part of the Financial Statements for the year ended 31 March 2019
Asirvad Microfinance Limited Notes41.6 (formingAsseta) LiabilityMaturity part of Management the Financial Pattern Statements for of the certainyear ended 31 Marchitems 2019 of Assets and Liabilities as at 31 March 2019: Asirvad(a) Maturity Microfinance Pattern Limitedof certain items of Assets and Liabilities as at 31 March 2019: Notes41.6 formingAsset Liability part of Management the Financial Statements for the year ended 31 March 2019 (Amount Rs.in Lakhs) 1 day to 30 – 31 Over one month Over 2 months Over 3 months upto 6 Over 6 months to 1 Over 1 year to 3 Over 3 years to 5 (a) MaturityParticulars Pattern of certaindays items of Assets and Liabilities as at 31 March 2019: Over 5 years Total to 2 months upto 3 months months year years years 41.6 Asset Liability Management(One Month) (Amount Rs.in Lakhs) 1 day to 30 – 31 Liabilities Over one month Over 2 months Over 3 months upto 6 Over 6 months to 1 Over 1 year to 3 Over 3 years to 5 (a) MaturityParticulars Pattern of certaindays items of Assets and Liabilities as at 31 March 2019: Over 5 years Total Borrowings from to 2 months upto 3 months months year years years (One Month)6,168.43 8,121.68 6,165.77 23,718.72 38,090.30 47,895.44 3,044.00 - (Amount 133,204.34Rs.in Lakhs) Banks & NBFCs 1 day to 30 – 31 Liabilities Over one month Over 2 months Over 3 months upto 6 Over 6 months to 1 Over 1 year to 3 Over 3 years to 5 Particulars days Over 5 years Total MarketBorrowings from to 2 months upto 3 months months year years years (One Month)5,658.336,168.43 5,041.678,121.68 2,500.006,165.77 12,158.0023,718.72 14,425.00 38,090.30 37,091.6747,895.44 11,500.00 3,044.00 - 133,204.34 88,374.67 BorrowingsBanksLiabilities & NBFCs
MarketBorrowings from Assets 5,658.336,168.43 5,041.678,121.68 2,500.006,165.77 12,158.0023,718.72 14,425.00 38,090.30 37,091.6747,895.44 11,500.00 3,044.00 - 133,204.34 88,374.67 BorrowingsBanks & NBFCs Advances (Micro Market 26,760.03 26,255.43 21,972.72 64,226.13 102,485.40 142,376.18 2.37 - 384,078.26 FinanceAssets Loans) 5,658.33 5,041.67 2,500.00 12,158.00 14,425.00 37,091.67 11,500.00 - 88,374.67 Borrowings InvestmentsAdvances (Micro ------5.00 5.00 26,760.03 26,255.43 21,972.72 64,226.13 102,485.40 142,376.18 2.37 - 384,078.26 Finance Loans) Assets AdvancesInvestments (Micro ------5.00 5.00 (b) Maturity Pattern of certain items 26,760.03 of Assets and 26,255.43Liabilities as at 31 March 21,972.72 2018: 64,226.13 102,485.40 142,376.18 2.37 - 384,078.26 Finance Loans) (b) Maturity Pattern of certain items of Assets and Liabilities as at 31 March 2018:(Amount Rs.in Lakhs) 1 day to 30 – 31 Investments - Over one month - Over 2 months - Over 3 months upto - 6 Over 6 months to- 1 Over 1 year to - 3 Over 3 years to - 5 5.00 5.00 (b) MaturityParticulars Pattern of certaindays items of Assets and Liabilities as at 31 March 2018: Over 5 years Total to 2 months upto 3 months months year years years (One Month) (Amount Rs.in Lakhs) 1 day to 30 – 31 Liabilities Over one month Over 2 months Over 3 months upto 6 Over 6 months to 1 Over 1 year to 3 Over 3 years to 5 (b) MaturityParticulars Pattern of certaindays items of Assets and Liabilities as at 31 March 2018: Over 5 years Total to 2 months upto 3 months months year years years Borrowings from (One Month) (Amount Rs.in Lakhs) 1 day to 4,121.41 30 – 31 4,058.37 3,279.03 14,756.04 26,823.92 40,746.74 2,145.76 - 95,931.27 BanksLiabilities & NBFCs Over one month Over 2 months Over 3 months upto 6 Over 6 months to 1 Over 1 year to 3 Over 3 years to 5 Particulars days Over 5 years Total to 2 months upto 3 months months year years years MarketBorrowings from (One Month) 4,121.411,303.23 4,058.374,852.06 3,279.033,959.80 14,756.04 8,692.02 25,058.4626,823.92 55,431.8840,746.74 10,000.00 2,145.76 1,500.00 - 110,797.45 95,931.27 BorrowingsBanksLiabilities & NBFCs
MarketBorrowings from 1,303.234,121.41 4,852.064,058.37 3,959.803,279.03 14,756.04 8,692.02 26,823.9225,058.46 40,746.7455,431.88 10,000.00 2,145.76 1,500.00 - 110,797.45 95,931.27 BorrowingsBanksAssets & NBFCs Advances (Micro 19,902.60 17,147.26 14,897.00 47,233.89 74,848.75 38,158.15 - - 212,187.65 FinanceMarket Loans) Assets 1,303.23 4,852.06 3,959.80 8,692.02 25,058.46 55,431.88 10,000.00 1,500.00 110,797.45 Borrowings InvestmentsAdvances (Micro ------5.00 5.00 19,902.60 17,147.26 14,897.00 47,233.89 74,848.75 38,158.15 - - 212,187.65 Finance Loans) Assets InvestmentsAdvances (Micro ------5.00 5.00 19,902.60 17,147.26 14,897.00 47,233.89 74,848.75 38,158.15 - - 212,187.65 (c) FinanceMaturity Loans)Pattern of certain items of Assets and Liabilities as at 1 April 2017: (Amount Rs.in Lakhs) Investments 1 day to 30 – - 31 ------5.00 5.00 Over one month Over 2 months Over 3 months upto 6 Over 6 months to 1 Over 1 year to 3 Over 3 years to 5 Over 5 years to 7 (c) MaturityParticulars Pattern of certaindays items of Assets and Liabilities as at 1 April 2017: Total to 2 months upto 3 months months year years years years (One Month) (Amount Rs.in Lakhs) (c) Maturity1 day to Pattern 30 – 31 of certain items of Assets and Liabilities as at 1 April 2017: Liabilities Over one month Over 2 months Over 3 months upto 6 Over 6 months to 1 Over 1 year to 3 Over 3 years to 5 Over 5 years to 7 (c) MaturityParticulars Pattern of certaindays items of Assets and Liabilities as at 1 April 2017: Total Borrowings from to 2 months upto 3 months months year years years years (One Month) 2,722.21 3,089.09 2,794.32 9,043.76 18,876.74 28,402.93 166.67 - (Amount Rs.in 65,095.72 Lakhs) Banks & NBFCs 1 day to 30 – 31 Liabilities Over one month Over 2 months Over 3 months upto 6 Over 6 months to 1 Over 1 year to 3 Over 3 years to 5 Over 5 years to 7 Particulars days Total MarketBorrowings from to 2 months upto 3 months months year years years years (One Month) 1,037.432,722.21 1,198.653,089.09 1,992.112,794.32 8,422.499,043.76 11,197.3118,876.74 43,373.6228,402.93 12,660.00 166.67 14,200.00 - 94,081.6165,095.72 BorrowingsBanksLiabilities & NBFCs BorrowingsMarket from Assets 2,722.211,037.43 3,089.091,198.65 2,794.321,992.11 9,043.768,422.49 11,197.3118,876.74 43,373.6228,402.93 12,660.00 166.67 14,200.00 - 65,095.7294,081.61 BanksBorrowings & NBFCs Advances (Micro 17,858.96 14,355.82 14,314.73 39,743.17 60,934.26 25,416.31 15.46 - 172,638.71 Finance Loans) MarketAssets Investments 1,037.43 - 1,198.65 - 1,992.11 - 8,422.49 - 11,197.31 - 43,373.62 - 12,660.00 - 14,200.00 5.00 94,081.61 5.00 BorrowingsAdvances (Micro 17,858.96 14,355.82 14,314.73 39,743.17 60,934.26 25,416.31 15.46 - 172,638.71 Finance Loans) Assets Investments ------5.00 5.00 Advances (Micro 17,858.96 14,355.82 14,314.73 39,743.17 60,934.26 25,416.31 15.46 - 172,638.71 Finance Loans) Investments ------5.00 5.00
135 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
42 Disclosure Pursuant to paragraph 13 of Non-Banking Financial (Non-Deposit Accepting Asirvad Microfinance Limited Notes formingor part Holding) of the Financial Statements Companies for the year ended Prudential 31 March 2019 Norms (Reserve Bank) Directions, 2016): 42 Disclosure Pursuant to paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2016): (Amount Rs.in Lakhs) Asirvad Microfinance Limited As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 NotesS.No forming part of the FinancialParticulars Statements for the year ended 31 March 2019 Amount Outstanding Amount Overdue Amount Outstanding Amount Overdue Amount Outstanding Amount Overdue 42 DisclosureLiabilities: Pursuant to paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2016): (Amount Rs.in Lakhs) 1 Loans and Advances availed by the NBFC As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 S.Noinclusive of interest Particularsaccrued thereon but not Amount Outstanding Amount Overdue Amount Outstanding Amount Overdue Amount Outstanding Amount Overdue paid: Liabilities:
(a)1 DebenturesLoans and (Refer Advances Note Below) availed by the NBFC - Securedinclusive of interest accrued thereon but not 38,915.32 - 54,848.80 - 36,305.42 - - Unsecuredpaid: 46,332.82 - 17,414.23 - 18,790.96 - (other than falling within the meaning of public - deposits) (a) Debentures (Refer Note Below) (b) Deferred Credits ------Secured 38,915.32 - 54,848.80 - 36,305.42 - (c) Term Loans (Refer Note Below) - - Unsecured 46,332.82 - 17,414.23 - 18,790.96 - - Secured 128,954.01 - 127,729.94 - 103,220.64 - (other than falling within the meaning of public - - Unsecureddeposits) 5,043.19 - 7,540.80 - - - (d)(b) Inter-CorporateDeferred Credits Loans and Borrowings ------(c) Term Loans (Refer Note Below) - (e) Commercial- Secured Paper 128,954.015,000.00 - - 127,729.94 1,500.00 - - 103,220.64 - -- (f) Finance Lease obligations 8.98 - Unsecured 5,043.19 - 7,540.80 - - -
(g)(d) CashInter-Corporate Credits Loans and Borrowings - - - - - 2,499.17 - --
(e) Commercial Paper 5,000.00 - 1,500.00 - - - (f) Finance Lease obligations 8.98 Note:Note: Includes Interest InterestAccrued Accruedbut Not Due onbutDebentures Not Dueamounting on Debenturesto Rs. 1,873.47 Lakhsamounting(As at 31 March to Rs.2018 1,873.47: Rs. 1,481.36 LakhsLakhs ;(AsAs at at1 April31 March2017 : Rs. 2018999.38 :Lakhs) Rs. 1,481.36and Term Loans Lakhsamounting ; As to Rs. 792.86 Lakhs (As at 31 March 2018: Rs.823.70 Lakhs ; As at 1 April 2017 : Rs.639.47 Lakhs). (g) Cash Credits - - - 2,499.17 - at 1 April 2017 : Rs. 999.38 Lakhs) and Term Loans amounting to Rs. 792.86 Lakhs (As at 31 March 2018: Rs.823.70 Lakhs ; As(Amount at 1 April Rs.in Lakhs) 2017 Amount Outstanding Amount Outstanding Amount Outstanding : Rs.639.47S.NoNote: Includes Lakhs).Interest Accrued but Not Due on Debentures amountingParticularsto Rs. 1,873.47 Lakhs (As at 31 March 2018 : Rs. 1,481.36 Lakhs ; Asasat at1 April 2017 : Rs. 999.38as atLakhs) and Term Loansas atamounting to Rs. 792.86 Lakhs (As at 31 March 2018: Rs.823.70 Lakhs ; As at 1 April 2017 : Rs.639.47 Lakhs). 31 March 2019 31 March 2018 1 April 2017 (Amount Rs.in Lakhs) Assets: Amount Outstanding Amount Outstanding Amount Outstanding 2S.NoBreak-up of Loans and Advances including Bills ReceivablesParticulars [other than those included in (3) below] : as at as at as at (a) Secured 31 March 2019 203.53 31 March 2018333.74 1 April 2017 315.41 (b) Unsecured (Refer Note Below) 236,233.96 210,874.87 172,165.89 Assets:
3 2 BreakBreak-up up of ofLeased Loans Assets and Advances and Stock including on Hire Billsand OtherReceivables Assets [other counting than towards those included AFC activities in (3) below] : (i)(a) LeaseSecured Assets including Lease Rentals Accrued and Due: 203.53 333.74 315.41 (b) (a)Unsecured Financial Lease(Refer Note Below) 236,233.96 - 210,874.87 - 172,165.89 - (b) Operating Lease - - - (ii)3 StockBreak on Hireup of including Leased HireAssets Charges and Stockunder onSundry Hire Debtors: and Other Assets counting towards AFC activities (i) (a)Lease Assets Assets on Hire including Lease Rentals Accrued and Due: - - - (b)(a) Repossessed Financial Lease Assets ------(iii) Other(b) OperatingLoans counting Lease towards AFC Activities - - - (ii) (a)Stock Loans on where Hire includingAssets have Hire been Charges Repossessed under Sundry Debtors: - - - (b)(a) Loans Assets other on thanHire (a) above ------(b) Repossessed Assets - - - (iii) Other Loans counting towards AFC Activities (a) Loans where Assets have been Repossessed - - - (b) Loans other than (a) above - - - Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
(Amount Rs.in Lakhs)
Amount Outstanding Amount Outstanding Amount Outstanding S.No Particulars as at as at as at 31 March 2019 31 March 2018 1 April 2017
4 Break-up of Investments
Current Investments I Quoted: (i) Shares: (a) Equity - - - (b) Preference - - - (ii) Debentures and Bonds - - - (iii) Units of Mutual Funds - - - (iv) Government Securities - - - (v) Others (please specify) - - II Unquoted: (i) Shares: (a) Equity - - - (b) Preference - - - (ii) Debentures and Bonds - - - (iii) Units of Mutual Funds - - - (iv) Government Securities - - - (v) Others (please specify) - -
Long Term Investments I Quoted: (i) Shares: (a) Equity - - - (b) Preference - - - (ii) Debentures and Bonds - - - (iii) Units of Mutual Funds - - - (iv) Government Securities - - - (v) Others (please specify) - - - II Unquoted: - (i) Shares: (a) Equity 5 5 5 (b) Preference - - - (ii) Debentures and Bonds - - - (iii) Units of Mutual Funds - - - (iv) Government Securities - - - (v) Investment in Pass Through Certificates - - - -
(Amount Rs.in Lakhs) Borrower Group-wise Classification of Assets Financed as in (2) and (3) above As at 31 March 2019 136 As at 31 March 2018 As at 1 April 2017 5 (Net of Provisions) (Net of Provisions) (Net of Provisions) Category (Refer Note below) (Refer Note below) (Refer Note below) Secured Unsecured Secured Unsecured Secured Unsecured 1 Related Parties (a) Subsidiaries ------(b) Companies in the same Group ------(c) Other Related Parties ------
2 Other than Related Parties 115.80 232,042.40 260.04 203,201.18 309.64 162,501.74
Total 115.80 232,042.40 260.04 203,201 310 162,502
Note: The amount of Assets financed represents the net owned portfolio outstanding after adjusting the provisions for standard, substandard and doubtful assets. Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
(Amount Rs.in Lakhs)
Amount Outstanding Amount Outstanding Amount Outstanding S.No Particulars as at as at as at 31 March 2019 31 March 2018 1 April 2017
4 Break-up of Investments
Current Investments I Quoted: (i) Shares: (a) Equity - - - (b) Preference - - - (ii) Debentures and Bonds - - - (iii) Units of Mutual Funds - - - (iv) Government Securities - - - (v) Others (please specify) - - II Unquoted: (i) Shares: (a) Equity - - - (b) Preference - - - (ii) Debentures and Bonds - - - (iii) Units of Mutual Funds - - - (iv) Government Securities - - - (v) Others (please specify) - -
Long Term Investments I Quoted: (i) Shares: (a) Equity - - - (b) Preference - - - (ii) Debentures and Bonds - - - (iii) Units of Mutual Funds - - - (iv) Government Securities - - - (v) Others (please specify) - - - II Unquoted: - (i) Shares: (a) Equity th5 5 5 (b) Preference 12 - Annual Report - 2018-19 - (ii) Debentures and Bonds - - - Asirvad(iii) Units Microfinanceof Mutual Funds Limited - - - (iv) Government Securities - - - Notes(v) Investment forming in Pass part Through of Certificatesthe Financial Statements for the year ended 31 March 2019 - - - -
(Amount Rs.in Lakhs) Borrower Group-wise Classification of Assets Financed as in (2) and (3) above As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 5 (Net of Provisions) (Net of Provisions) (Net of Provisions) Category (Refer Note below) (Refer Note below) (Refer Note below) Secured Unsecured Secured Unsecured Secured Unsecured 1 Related Parties (a) Subsidiaries ------(b) Companies in the same Group ------(c) Other Related Parties ------
2 Other than Related Parties 115.80 232,042.40 260.04 203,201.18 309.64 162,501.74
Total 115.80 232,042.40 260.04 203,201.18 203,201 309.64 310 162,501.74 162,502
Note: The amount of Assets financed represents the net owned portfolio outstanding after adjusting the provisions for standard, substandard and doubtful assets. AsirvadNote: Microfinance The Company’s Limited share of Net Asset Value of Alpha Micro Finance Consultants Private Limited has been calculated based on the audited Notesfinancial forming part statementsof the Financial of Statements the Company for the year as endedat 31 31 MarchMarch 20192018.
(Amount Rs.in Lakhs) Market Value / Market Value / Investor Group-wise Classification of all Market Value / Break Break up Value or Break up Value or Investments (Current and Long Term) in up Value or Fair Value Book Value as on Fair Value or Net Book Value as on Fair Value or Net Book Value as on 6 Shares and Securities (both Quoted and or Net Asset Value 31 March 2019 Asset Value 31 March 2018 Asset Value 1 April 2017 Unquoted) : (Company’s Share) as (Company’s Share) (Company’s Share) on 31 March 2019 Category as on 31 March 2018 as on 1 April 2017
1 Related Parties (a) Subsidiaries - - - - (b) Companies in the Same Group - - - - (c) Other Related Parties - - - -
2 Other than Related Parties 8.08 5.00 7.48 5.00 7.48 5.00 (Refer Note Below) Total 8.08 5.00 7.48 5.00 7.48 5.00
As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Amount Rs. In Lakhs Amount Rs. In Lakhs Amount Rs. In Lakhs 7 Other Information Other than Related Other than Related Other than Related Related Parties Related Parties Related Parties Parties Parties Parties
(i) Gross Non-Performing Assets - 1,847.21 - 5,676.14 - 8,022.48
(ii) Net Non-Performing Assets ------
(iii) Assets Acquired in Satisfaction of Debt ------
Note:Note: The Company’s share of Net Asset Value of Alpha Micro Finance Consultants Private Limited has been calculated based on the audited financialThe Company's statements share of Net Asset of theValue ofCompany Alpha Micro Financeas at Consultants31 March Private 2018. Limited has been calculated based on the audited financial statements of the Company as at 31 March 2018. Asirvad Microfinance Limited AsirvadNotes43. forming Microfinance Loan part of PortfolioLimited the Financial Statements and Provision for the year ended for 31 March Standard 2019 and Non Performing Assets Notes forming part of the Financial Statements for the year ended 31 March 2019 Asirvad43 Loan Microfinance Portfolio and Limited Provision for Standard and Non Performing Assets Notes forming part of the Financial Statements for the year ended 31 March 2019 43 (a)Loan Current Portfolio and Provision Year for Standard and Non Performing Assets (a) Current Year (a)43 CurrentLoan Portfolio Year and Provision for Standard and Non Performing Assets Loan Outstanding as at Provision as at Loan Outstanding as at (a) Current Year Asset Classification Loan31 March Outstanding 2019 (Gross) as at 31Provision March 2019as at Loan31 March Outstanding 2019 (Net) as at Asset Classification 31Amount March in2019 Rs. (Gross)Lakhs Amount31 March in Rs 2019in Lakhs Amount31 March in Rs.2019 In (Net) Lakhs LoanAmount Outstanding in Rs. Lakhs as at AmountProvision in Rs asin Lakhsat AmountLoan Outstanding in Rs. In Lakhs as at Receivables under FinancingAsset ActivitiesClassification (including securitised 31 March 2019 (Gross) 31 March 2019 31 March 2019 (Net) Receivablesassets) under Financing Activities (including securitised Amount in Rs. Lakhs Amount in Rs in Lakhs Amount in Rs. In Lakhs Standardassets) Assets 382,231.00 2,354.98 379,876.02 Receivables under Financing Activities (including securitised NonStandardassets) - Performing Assets Assets 382,231.00 1,847.21 1,847.212,354.98 379,876.02 - StandardNonTotal - Performing Assets Assets 384,078.21 382,231.00 1,847.21 4,202.19 2,354.981,847.21 379,876.02 379,876.02 - Total (b) NonPrevious - Performing Year Assets 384,078.21 1,847.21 4,202.19 1,847.21 379,876.02 - (b) (b)PreviousTotal Previous Year Year 384,078.21 4,202.19 379,876.02 Loan Outstanding as at Provision as at Loan Outstanding as at (b) Previous Year Asset Classification 31Loan March Outstanding 2018 (Gross) as at 31Provision March 2018as at Loan31 March Outstanding 2018 (Net) as at Asset Classification 31Amount March 2018Rs.in (Gross)Lakhs Amount31 March Rs.in 2018 Lakhs 31Amount March Rs.in 2018 Lakhs (Net) Receivables under Financing Activities (including securitised LoanAmount Outstanding Rs.in Lakhs as at Amount Provision Rs.in as Lakhs at LoanAmount Outstanding Rs.in Lakhs as at Asset Classification 31 March 2018 (Gross) 31 March 2018 31 March 2018 (Net) Receivablesassets) under Financing Activities (including securitised Standard Assets Amount Rs.in 238,044.15Lakhs Amount Rs.in 2,071.25Lakhs Amount Rs.in 235,972.90Lakhs assets) StandardNonReceivables - Performing Assets under Assets Financing Activities (including securitised 238,044.15 5,676.14 2,071.255,676.14 235,972.90 - NonTotalassets) - Performing Assets 243,720.29 5,676.14 7,747.39 5,676.14 235,972.90 - Standard Assets 238,044.15 2,071.25 235,972.90 Total 243,720.29 7,747.39 235,972.90 (C) NonPrevious - Performing Year (FY Assets 16-17) 5,676.14 5,676.14 - Total (C) Previous Year (FY 16-17) 243,720.29 7,747.39 235,972.90 Loan Outstanding as at Provision as at Loan Outstanding as at (C) (C)Previous Previous Year (FY 16-17) Year (FY 16-17) Asset Classification Loan1 April Outstanding 2017 (Gross) as at Provision1 April 2017 as at Loan1 April Outstanding 2017 (Net) as at Asset Classification 1Amount April 2017 Rs.in (Gross) Lakhs Amount1 April Rs.in 2017 Lakhs Amount1 April 2017Rs.in (Net)Lakhs LoanAmount Outstanding Rs.in Lakhs as at Amount Provision Rs.in as Lakhs at LoanAmount Outstanding Rs.in Lakhs as at Receivables under FinancingAsset ActivitiesClassification (including securitised 1 April 2017 (Gross) 1 April 2017 1 April 2017 (Net) Receivablesassets) under Financing Activities (including securitised Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Standardassets) Assets 171,571.38 1,647.44 169,923.94 Receivables under Financing Activities (including securitised StandardNon - Performing Assets Assets 171,571.38 8,022.48 1,647.448,022.48 169,923.94 - assets) NonTotal - Performing Assets 8,022.48 8,022.48 - Standard Assets 179,593.86 171,571.38 9,669.92 1,647.44 169,923.94 169,923.94 NonTotal - Performing Assets 179,593.86 8,022.48 9,669.92 8,022.48 169,923.94 - 44 Changes in Provisions Total 179,593.86 9,669.92 169,923.94 (a)44 CurrentChanges Year in Provisions (a)44 ChangesCurrent Year in Provisions Amount Rs.in Lakhs As at AmountAs at Rs.in Lakhs (a) Current Year Particulars Provision for the Year Utilization/ Reversal 1 AprilAs at2018 137 31 MarchAs at 2019 Particulars Provision for the Year Utilization/ Reversal Amount Rs.in Lakhs 1 April 2018 31 March 2019 As at As at Loans Particulars 7,747.39 Provision for the 1,977.89Year Utilization/ Reversal 5,523.09 4,202.19 1 April 2018 31 March 2019 ProvisionLoans for Credit Enhancements on Assets 7,747.39 1,977.89 5,523.09 4,202.19 - - - - De-RecognisedProvision for Credit Enhancements on Assets Loans 7,747.39 - 1,977.89 - 5,523.09 - 4,202.19 - De-RecognisedTotal 7,747.39 1,977.89 5,523.09 4,202.19 Provision for Credit Enhancements on Assets Total 7,747.39 - 1,977.89 - 5,523.09 - 4,202.19 - (b) De-RecognisedPrevious Year Amount Rs.in Lakhs (b) PreviousTotal Year 7,747.39 1,977.89 5,523.09 4,202.19 As at AmountAs at Rs.in Lakhs (b) Previous Year Particulars Provision for the Year Utilization/ Reversal 1 AprilAs at2017 31 MarchAs at 2018 Particulars Provision for the Year Utilization/ Reversal Amount Rs.in Lakhs 1 April 2017 31 March 2018 As at As at Loans Particulars 9,669.92 Provision for the 12,427.67 Year Utilization/ Reversal 14,350.20 7,747.39 1 April 2017 31 March 2018 ProvisionLoans for Credit Enhancements on Assets 9,669.92 12,427.67 14,350.20 7,747.39 6.92 - 6.92 - De-RecognisedProvision for Credit Enhancements on Assets Loans 9,669.92 6.92 12,427.67 - 14,350.20 6.92 7,747.39 - De-RecognisedTotal 9,676.84 12,427.67 14,357.12 7,747.39 Provision for Credit Enhancements on Assets Total 9,676.84 6.92 12,427.67 - 14,357.12 6.92 7,747.39 - De-Recognised Total 9,676.84 12,427.67 14,357.12 7,747.39 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 Asirvad Microfinance Limited Notes43 Loanforming Portfolio part of and the Provision Financial for Statements Standard forand the Non year Performing ended 31 Assets March 2019
(a) Current Year 43 Loan Portfolio and Provision for Standard and Non Performing Assets
(a) Current Year Loan Outstanding as at Provision as at Loan Outstanding as at Asset Classification 31 March 2019 (Gross) 31 March 2019 31 March 2019 (Net) LoanAmount Outstanding in Rs. Lakhs as at AmountProvision in Rs asin Lakhsat AmountLoan Outstanding in Rs. In Lakhs as at Receivables under FinancingAsset ActivitiesClassification (including securitised 31 March 2019 (Gross) 31 March 2019 31 March 2019 (Net) assets) Amount in Rs. Lakhs Amount in Rs in Lakhs Amount in Rs. In Lakhs StandardReceivables Assets under Financing Activities (including securitised 382,231.00 2,354.98 379,876.02 Nonassets) - Performing Assets 1,847.21 1,847.21 - Standard Assets 382,231.00 2,354.98 379,876.02 Total 384,078.21 4,202.19 379,876.02 Non - Performing Assets 1,847.21 1,847.21 - (b) Previous Year Total 384,078.21 4,202.19 379,876.02
(b) Previous Year Loan Outstanding as at Provision as at Loan Outstanding as at Asset Classification 31 March 2018 (Gross) 31 March 2018 31 March 2018 (Net) LoanAmount Outstanding Rs.in Lakhs as at Amount Provision Rs.in as Lakhs at LoanAmount Outstanding Rs.in Lakhs as at Receivables under FinancingAsset ActivitiesClassification (including securitised 31 March 2018 (Gross) 31 March 2018 31 March 2018 (Net) assets) Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs Standard Assets 238,044.15 2,071.25 235,972.90 Receivables under Financing Activities (including securitised Non - Performing Assets assets) 5,676.14 5,676.14 - StandardTotal Assets 243,720.29 238,044.15 7,747.39 2,071.25 235,972.90 235,972.90 Non - Performing Assets 5,676.14 5,676.14 - (C) Previous Year (FY 16-17) Total 243,720.29 7,747.39 235,972.90
(C) Previous Year (FY 16-17) Loan Outstanding as at Provision as at Loan Outstanding as at Asset Classification 1 April 2017 (Gross) 1 April 2017 1 April 2017 (Net) th 12 Annual Report 2018-19 LoanAmount Outstanding Rs.in Lakhs as at Amount Provision Rs.in as Lakhs at LoanAmount Outstanding Rs.in Lakhs as at AsirvadReceivables Microfinance under FinancingAsset LimitedActivitiesClassification (including securitised 1 April 2017 (Gross) 1 April 2017 1 April 2017 (Net) assets) Amount Rs.in Lakhs Amount Rs.in Lakhs Amount Rs.in Lakhs 171,571.38 1,647.44 169,923.94 NotesStandardReceivables forming Assets under part Financing of the Activities Financial (including Statements securitised for the year ended 31 March 2019 Nonassets) - Performing Assets 8,022.48 8,022.48 - 44.StandardTotal Changes Assets in Provisions 179,593.86 171,571.38 9,669.92 1,647.44 169,923.94 169,923.94 Non - Performing Assets 8,022.48 8,022.48 - 44 Changes in Provisions Total 179,593.86 9,669.92 169,923.94 (a) (a)Current Current Year Year 44 Changes in Provisions Amount Rs.in Lakhs (a) As at As at Current Year Particulars Provision for the Year Utilization/ Reversal 1 April 2018 31 AmountMarch 2019 Rs.in Lakhs As at As at Particulars Provision for the Year Utilization/ Reversal Loans 1 April 7,747.392018 1,977.89 5,523.09 31 March 2019 4,202.19 Provision for Credit Enhancements on Assets - - - - De-RecognisedLoans 7,747.39 1,977.89 5,523.09 4,202.19 ProvisionTotal for Credit Enhancements on Assets 7,747.39 1,977.89 5,523.09 4,202.19 - - - - De-Recognised (b) Previous Year Total 7,747.39 1,977.89 5,523.09 4,202.19 (b) Previous Year Amount Rs.in Lakhs As at As at (b) Previous Year Particulars Provision for the Year Utilization/ Reversal 1 April 2017 31 AmountMarch 2018 Rs.in Lakhs As at As at Particulars Provision for the Year Utilization/ Reversal Loans 1 April 9,669.922017 12,427.67 14,350.20 31 March 2018 7,747.39 Provision for Credit Enhancements on Assets 6.92 - 6.92 - De-RecognisedLoans 9,669.92 12,427.67 14,350.20 7,747.39 ProvisionTotal for Credit Enhancements on Assets 9,676.84 12,427.67 14,357.12 7,747.39 6.92 - 6.92 - De-Recognised Total 9,676.84 12,427.67 14,357.12 7,747.39
44.1 An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to loans is as follows:
Reconciliation of ECL balance is given below:
Asirvad45. Microfinance Disclosures Limited of Fraud Notes forming part of the Financial Statements for the year ended 31 March 2019
45 a)Disclosures Current of Fraud Year a) Current Year
More than Rs. 1 lakh Less than Rs. 1 lakh Category Number of Amount in Rs. Number of Amount in Rs. Instances In Lakhs Instances In Lakhs
Embezzlement of Cash - By Employees 22 197.97 7 12.96 - By Others 6 9.05 25 13.15
Total 28 207.02 32 26.11
b) b)Previous Previous Year 17-18 Year 17-18
More than Rs. 1 lakh Less than Rs. 1 lakh Category Number of Amount in Rs. Number of Amount in Rs. Instances In Lakhs Instances In Lakhs
Embezzlement of Cash - By Employees 15 87.61 9 3.16 - By Others 2 2.64 11 7.76
Total 17 90.25 20 10.92
c) Previous Year 16-17
More than Rs. 1 lakh Less than Rs. 1 lakh
Category Number of Amount in Rs. Number of Amount in Rs. Instances In Lakhs Instances In Lakhs Embezzlement of Cash - By Employees 6 29.30 2 1.56 - By Others 138 5 34.49 7 4.11 Total 11 63.79 9 5.67
Note: The above summary is prepared based on the information available with the Company and relied upon by the Auditors.
45.1 Disclosure as required under Reserve Bank of India Master Direction DNBR. PD. 008/03.10.119/2016-17 (updated 16th April, 2019)
Net Interest Margin during the Year:
For the Year ended For the Year ended For the Year ended Particulars 31 March 2019 31 March 2018 31 March 2017 Average Interest (a) 21.70% 22.25% 23.24% Average effective cost for borrowing Interest (b) 12.31% 12.39% 13.30% Net Interest Margin (a-b) 9.39% 9.86% 9.94%
The Average interest represents the effective rate at which loans have been disbursed to the customers for the year ended 31 March 2019, 31 March 2018 and 1 April 2017.
The Average interest cost of borrowings of the Company for the year ended 31 March 2019, 31 March 2018 and 1 April 2017 has been computed based on the monthly interest cost divided by the average monthly balances of outstanding borrowings. The Average cost of borrowings include the following :
a) Upfront processing fees paid by the Company for availing loans. b) Interest on the borrowings. Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
45 Disclosures of Fraud a) Current Year Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 More than Rs. 1 lakh Less than Rs. 1 lakh Category Number of Amount in Rs. Number of Amount in Rs. Instances In Lakhs Instances In Lakhs 45 Disclosures of Fraud a) EmbezzlementCurrent Year of Cash - By Employees 22 197.97 7 12.96 - By Others More6 than Rs. 1 lakh 9.05 Less25 than Rs. 1 lakh 13.15 Category Number of Amount in Rs. Number of Amount in Rs. Total 28 207.02 32 26.11 Instances In Lakhs Instances In Lakhs
Embezzlement of Cash b) Previous - By Employees Year 17-18 22 197.97 7 12.96 - By Others 6 9.05 25 13.15 More than Rs. 1 lakh Less than Rs. 1 lakh CategoryTotal Number28 of Amount 207.02in Rs. Number32 of Amount in26.11 Rs. Instances In Lakhs Instances In Lakhs th Embezzlement of Cash b) Previous Year 17-18 12 Annual Report 2018-19 - By Employees 15 87.61 9 3.16 Asirvad - By Others Microfinance Limited More2 than Rs. 1 lakh 2.64 Less11 than Rs. 1 lakh 7.76 Category Number of Amount in Rs. Number of Amount in Rs. Notes forming part of the FinancialTotal Statements for the year ended 31 MarchInstances 201917 In Lakhs 90.25 Instances20 In Lakhs 10.92 c)Embezzlement Previous of Cash Year 16-17 c) Previous - By Employees Year 16-17 15 87.61 9 3.16 - By Others 2 2.64 11 7.76 More than Rs. 1 lakh Less than Rs. 1 lakh Total Category Number17 of Amount in 90.25 Rs. Number20 of Amount in10.92 Rs. Instances In Lakhs Instances In Lakhs
c) EmbezzlementPrevious Year of 16-17Cash - By Employees 6 29.30 2 1.56 - By Others More5 than Rs. 1 lakh 34.49 Less7 than Rs. 1 lakh 4.11 Category Number of Amount in Rs. Number of Amount in Rs. Total Instances In Lakhs Instances In Lakhs 11 63.79 9 5.67 Embezzlement of Cash Note:Note: - By EmployeesThe above summary is prepared based on the information available with the Company6 and relied upon 29.30 by the Auditors.2 1.56 The - By above Others summary is prepared based on the information available with the Company and relied upon by the Auditors.5 34.49 7 4.11
Total 45.1 Disclosure as required under Reserve Bank of India Master Direction DNBR. PD. 008/03.10.119/2016-17 (updated 16th April, 2019) 45.1 Disclosure as required under Reserve Bank of India11 Master 63.79 Direction 9 DNBR. 5.67
NetNote: Interest Margin during the Year: The abovePD. summary 008/03.10.119/2016-17 is prepared based on the information available(updated with the Company 16th and April, relied upon by 2019) the Auditors. For the Year ended For the Year ended For the Year ended Particulars 31 March 2019 31 March 2018 31 March 2017 45.1 Disclosure as required under Reserve Bank of India Master Direction DNBR. PD. 008/03.10.119/2016-17 (updated 16th April, 2019) NetAverage Interest Interest (a) Margin during the Year: 21.70% 22.25% 23.24% AverageNet Interest effective Margin cost during for borrowing the Year: Interest (b) 12.31% 12.39% 13.30% Net Interest Margin (a-b) 9.39% 9.86% 9.94% For the Year ended For the Year ended For the Year ended Particulars 31 March 2019 31 March 2018 31 March 2017 The Average interest represents the effective rate at which loans have been disbursed to the customers for the year ended 31 March 2019, 31 March 2018 and 1 April 2017. Average Interest (a) 21.70% 22.25% 23.24% Average effective cost for borrowing Interest (b) 12.31% 12.39% 13.30% The Average interest cost of borrowings of the Company for the year ended 31 March 2019, 31 March 2018 and 1 April 2017 has been computed based on the monthly interest costNet dividedInterest by Margin the average (a-b) monthly balances of outstanding borrowings. The Average9.39% cost of borrowings include the following9.86% : 9.94%
a) UpfrontThe Average processing interest fees represents paid by the the Company effective forrate availing at which loans. loans have been disbursed to the customers for the year ended 31 March 2019, 31 March 2018 and 1 April 2017. b) Interest on the borrowings.
The AverageTheinterest Averagecost of borrowings interestof the Company representsfor the year endedthe31 effectiveMarch 2019, 31 rateMarch 2018at whichand 1 April 2017loanshas been havecomputed beenbased ondisbursedthe monthly interest to cost divided by the average monthly balances of outstanding borrowings. The Average cost of borrowings include the following : the customers for the year ended 31 March 2019, 31 March 2018 and 1 April 2017. a) Upfront processing fees paid by the Company for availing loans. b) Interest on the borrowings. The Average interest cost of borrowings of the Company for the year ended 31 March 2019, 31 March 2018 and 1 April 2017 has been computed based on the monthly interest cost divided by the average monthly balances of outstanding borrowings. The Average cost of borrowings include the following :
a) Upfront processing fees paid by the Company for availing loans.
b) Interest on the borrowings.
46Asirvad Disclosures Microfinance Limited of Transactions Pursuant to Regulation 34(3) of SEBI (LODR) Regulations, Notes forming part of the Financial Statements for the year ended 31 March 2019 2015: 46 Disclosures of Transactions Pursuant to Regulation 34(3) of SEBI (LODR) Regulations, 2015:
As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 Amount in Rs. In Lakhs Amount in Rs. In Lakhs Amount in Rs. In Lakhs
Maximum Maximum Maximum S.No Loans and Advances in the nature of Loans Amount Amount Amount Amount Amount Amount Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding during the year during the year during the year
(a) From Holding Company: - Mannapuram Finance Limited ------
(b) To Fellow Subsidiaries - No Fellow Subsidiaries during the Current Year ------
(c) To Associates - No Associate during the Current Year ------
(d) Where there is - No Repayment Schedule ------Repayment Schedule beyond seven years ------No Interest ------Interest below the rate as specified in section 186 of the Companies Act, 2013 ------
To Firms / Companies in which directors are interested (e) (Other the (a) and (b) above)
Investments by the Loanee in the Shares of Parent (f) Company and Subsidiary Company ------
Note: The information on maximum amount outstanding has been disclosed from the date on which the concerned director was appointed on the Board of the Company.
47 Referral Fees 139
The Company has entered into agreements with Inthree Access, Uniq Synergy, Aspire Innovate, Eureka Forbes, Gloworld and Greenlight Planet for facilitating sale of their products (solar lamps, water purifier, cookware etc.) to its members. The Company receives referral fees for the products disbursed based on slab rates specified in the terms of the agreements entered with them. The Company has received an amount of Rs. 5,318.57 Lakhs (Previous Year : Rs. 2,836.48 Lakhs) towards referral fee for the facilitating of their products.
48 Corporate Social Responsibility (CSR)
During the year, the Company incurred an aggregate amount of Rs. 31.00 Lakhs (Previous Year - Rs. 89.50 Lakhs) towards corporate social responsibility in compliance of Section 135 of the Companies Act 2013 read with relevant schedule and rules made thereunder. The details of the CSR spend are given below: (i) Gross amount required to be spent by the Company during the year: Rs. 25.82 Lakhs (ii) Amount spent by the Company during the year: (Amount Rs.in Lakhs) Particulars Amount Paid Yet to be Paid Total Donation for Cyclone 31.00 - 31.00 Rehabiliation
49 Statutory Reserve
As per Section 45-IC of the Reserve Bank of India Act, 1934, the Company is required to create a reserve fund at a rate of 20% of the net profit after tax of the Company every year. Considering the Profit after tax for the year ended 31 March 2019, Rs.2,651.67 Lakhs is transferred to the statutory reserve as required under Section 45-IC of Reserve Bank of India (RBI) Act, 1934. Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019
46 Disclosures of Transactions Pursuant to Regulation 34(3) of SEBI (LODR) Regulations, 2015:
As at 31 March 2019 As at 31 March 2018 As at 1 April 2017 th 12 Annual Report 2018-19 Amount in Rs. In Lakhs Amount in Rs. In Lakhs Amount in Rs. In Lakhs Asirvad Microfinance Limited Maximum Maximum Maximum S.No Loans and Advances in the nature of Loans Notes forming part of the Financial Statements for the year Amountended 31 March 2019Amount Amount Amount Amount Amount Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding during the year during the year during the year Note: The information on maximum amount outstanding has been disclosed from the date on which the concerned director was appointed on(a) the BoardFrom Holdingof the Company. Company: - Mannapuram Finance Limited ------
47.(b) ReferralTo Fellow Subsidiaries Fees - No Fellow Subsidiaries during the Current Year ------
The(c) CompanyTo Associates has entered into agreements with Inthree Access, Uniq Synergy, Aspire Innovate, - No Associate during the Current Year ------Eureka Forbes, Gloworld and Greenlight Planet for facilitating sale of their products (solar (d) Where there is lamps, -water No Repayment purifier, Schedule cookware etc.) to its members. - The Company - receives - referral fees - for - - - Repayment Schedule beyond seven years ------the products - No Interest disbursed based on slab rates specified - in the terms - of the agreements - entered - - - - Interest below the rate as specified in section 186 of with thethem. Companies The Act, Company 2013 has received an amount of - Rs. 5,318.57 - Lakhs (Previous - Year - : Rs. - - To Firms / Companies in which directors are interested (e) 2,836.48(Other Lakhs) the (a) and towards (b) above) referral fee for the facilitating of their products.
Investments by the Loanee in the Shares of Parent (f) 48. CorporateCompany and Subsidiary Social Company Responsibility (CSR) ------
DuringNote: The informationthe year, on maximum the Company amount outstanding incurred has been disclosedan aggregate from the date onamount which the concernedof Rs. director 31.00 was Lakhs appointed (Previouson the Board of the Company. Year47 -Referral Rs. 89.50 Fees Lakhs) towards corporate social responsibility in compliance of Section 135 of the CompaniesThe Company has Actentered 2013into agreementsread withwith relevantInthree Access, scheduleUniq Synergy, andAspire rulesInnovate, madeEureka thereunder.Forbes, Gloworld and TheGreenlight detailsPlanet for facilitating sale of their products (solar lamps, water purifier, cookware etc.) to its members. The Company receives referral fees for the products disbursed based on slab rates specified in the terms of the agreements entered with them. The Company has received an amount of Rs. 5,318.57 Lakhs (Previous Year : Rs. 2,836.48 Lakhs) towards referral fee for the facilitating of of thetheir CSR products. spend are given below:
48 Corporate Social Responsibility (CSR) (i) Gross amount required to be spent by the Company during the year: Rs. 25.82 Lakhs During the year, the Company incurred an aggregate amount of Rs. 31.00 Lakhs (Previous Year - Rs. 89.50 Lakhs) towards corporate social responsibility in compliance of Section 135 of the Companies Act 2013 read with relevant schedule and rules made thereunder. The details of the CSR spend are given below: (ii)(i) AmountGross amount requiredspent to by be spentthe byCompany the Company during during the year: the Rs. year:25.82 Lakhs (ii) Amount spent by the Company during the year: (Amount Rs.in Lakhs) Particulars Amount Paid Yet to be Paid Total Donation for Cyclone 31.00 - 31.00 Rehabiliation
49 Statutory Reserve
49. StatutoryAs per Section 45-IC Reserveof the Reserve Bank of India Act, 1934, the Company is required to create a reserve fund at a rate of 20% of the net profit after tax of the Company every year. Considering the Profit after tax for the year ended 31 March 2019, Rs.2,651.67 Lakhs is transferred to the statutory reserve as required under Section 45-IC of Reserve As perBank Section of India (RBI) 45-IC Act, 1934. of the Reserve Bank of India Act, 1934, the Company is required to create a reserve fund at a rate of 20% of the net profit after tax of the Company every year. Considering the Profit after tax for the year ended 31 March 2019, Rs.2,651.67 Lakhs is transferred to the statutory reserve as required under Section 45-IC of Reserve Bank of India (RBI) Act, 1934.
50. As stated in Note 3.1, the Company has adopted Indian Accounting Standards with effect from 31 March 2018 with date of transition to Ind AS being 1 April 2017. Accordingly, the comparative financial information of the Company as at 1 April 2017 and 31 March 2018 included in these financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006, and have been restated to comply with Ind AS.
51. Previous Year Figures
Previous year's figures have been regrouped / reclassified, wherever necessary, to correspond with the current year's classification / disclosure.
140 12th Annual Report 2018-19 Asirvad Microfinance Limited Notes forming part of the Financial Statements for the year ended 31 March 2019 52 The Board of Directors of the Company has reviewed the realisable value of all the financial assets and has confirmed that the value of such assets in the ordinary course of business will not be less that the value at which these are recognized in the financial statements. In addition, the Board has also confirmed the carrying value of the non-financial assets in the financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements in its meeting held on 13 May 2019.
For and on behalf of the Board of Directors
V P Nandakumar Mayank Shyam Thatte S V Raja Vaidyanathan Anup Gupta Chairman Chief Financial Officer Managing Director Company Secretary (DIN No.00044512) (DIN No.01467098)
Place : Chennai Date : 13 May 2019
141 NOTICE OF 12th ANNUAL GENERAL MEETING
142 12th Annual Report 2018-19 NOTICE
NOTICE IS HEREBY GIVEN THAT THE 12TH ANNUAL GENERAL MEETING OF THE MEMBERS OF M/S. ASIRVAD MICRO FINANCE LIMITED WILL BE HELD ON THURSDAY, THE 8TH AUGUST, 2019, AT 4.00 P.M. AT HOTEL BLU RADISSION GRT, MEENAMBAKKAM, CHENNAI- 600 016, TO TRANSACT THE FOLLOWING BUSINESSES:
Ordinary Business:
1. To receive, consider and adopt the Audited Financial Statement of the Company for the Financial Year ended 31st March, 2019, and reports of the Board of Directors and Auditors thereon.
2. To appoint a Director in place of Mr.Vazhappully Padmanabhan Nandakumar (DIN 00044512), who retire by rotation, and being eligible, offer himself for re-appointment.
3. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to provisions of Section 139, 142 and other applicable provisions, if any, of the Companies Act, 2013, and the rules made thereunder (including any statutory modification(s) or re-enactment thereof for the time being in force), Deloitte Haskins & Sells, Chartered Accountants, Chennai (FRN 008072S)be and are hereby appointed as Statutory Auditors of the Company for the Financial Year 2019-20 and shall hold office from the conclusion of this Annual General Meeting till the conclusion of 13th Annual General Meeting at such remuneration as determined by the Board of Directors of the Company in consultation with Auditors.” By the order of the Board For, Asirvad Micro Finance Limited
Sd/- Company Secretary Date: 15/07/2019 Place: Chennai
143 12th Annual Report 2018-19
Notes:
1. IN TERMS OF THE PROVISIONS OF SECTION 105 OF THE COMPANIES ACT, 2013, READ WITH RULE 19 OF THE COMPANIES (MANAGEMENT AND ADMINISTRATION) RULES, 2014, A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE ON A POLL, INSTEAD OF HIMSELF/HERSELF AND THE PROXY NEED NOT BE A MEMBER. A PERSON CAN ACT AS PROXY ON BEHALF OF MEMBERS UPTO AND NOT EXCEEDING FIFTY (50) AND HOLDING IN AGGREGATE NOT MORE THAN TEN PERCENT (10%) OF THE TOTAL SHARE CAPITAL OF THE COMPANY. FURTHER, A MEMBER HOLDING MORE THAN TEN PERCENT (10%) OF THE TOTAL 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 MEMBER. THE INSTRUMENT APPOINTING PROXY MUST BE DEPOSITED AT THE CORPORATE OFFICE OF THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE TIME OF HOLDING THE MEETING. PROXY FORM FOR THE MEETING IS ENCLOSED
2. The form of proxy to be valid should be duly completed, stamped and signed and must be deposited with the Company at least 48 hours before the time scheduled for the Meeting.
3. Corporate Members intending to send their authorised representative(s) are requested to send a duly certified copy of the board resolution authorizing their representative(s) to attend the Annual General Meeting, pursuant to provisions of Section 113 of the Companies Act, 2013, along with their respective specimen signature authorizing the representative on their behalf at the meeting.
4. Members are requested to register the changes, from time to time, in their email-address with the Company to enable the Company to service various notice(s), reports, documents, etc. in the electronic mode.
5. Members are requested to bring their attendance slips duly filled together with their copies of Annual Report to the meeting
6. All relevant documents referred to in the AGM Notice will be available for inspection by the Members at the Corporate Office of the Company during normal business hours on all working days (except 2nd& 4th Saturday(s), Sunday(s) and Public Holiday(s) up to the date of the Annual General Meeting and during the continuance of the Annual General Meeting.
7. AGM Notice along with the Attendance Slip and Proxy Form is being sent by electronic mail/ registered post/ speed post etc. to all the Members whose email addresses are
144 12th Annual Report 2018-19
registered with the Company unless a Member has requested for a hard copy of the same.
8. AGM Notice will also be available on the website of the Company www. asirvadmicrofinance.co.in.
9. Route map for venue of the meeting is enclosed.
By the order of the Board
For, Asirvad Micro Finance Limited
Sd/- Company Secretary
Date: 15 /07/2019 Place: Chennai
145 12th Annual Report 2018-19
ATTENDANCE SLIP
12th ANNUAL GENERAL MEETING TO BE HELD ON 8TH AUGUST, 2019 AT 4.00 P.M.
NAME OF THE ATTENDING MEMBER (IN BLOCK LETTER)
ADDRESS OF THE MEMBER DP ID NO. CLIENT ID NO. NO.OF SHARES HELD
I ______, being a member(s) of Asirvad Microfinance Ltd hereby record my presence at an 12TH ANNUAL GENERAL MEETING of the Company being held on 8TH August, 2019, at 4.00 P.M.
Signature: ______
Date:
146 12th Annual Report 2018-19
Form No. MGT-11 Proxy form
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014]
CIN: U65923TN2007PLC064550 Name of the Company: Asirvad MicroFinance Limited Registered Office: 1st Floor, Desabandhu Plaza, 47, Whites Road, Royapettah,Chennai – 600 014.
Name of the Member (s):
Registered address :
E-mail Id:
Folio No/ Client Id : DP ID :
I/We, being the member (s) of …………. shares of the above named company, hereby appoint
1. Name: ______E-mail Id: ______
Address: ______
______Signature:______as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Annual General Meeting of the Company, to be held on 8th August, 2019 indicated below :
147 12th Annual Report 2018-19
Optional Ordinary Resolutions For Against To receive, consider and adopt the Audited Financial Statement of the Company for the Financial Year ended 31st March, 2019, and reports of the Board of Directors and Auditors thereon. To Appoint a Director in place of Mr. Vazhappully Padmanabhan Nandakumar (DIN 00044512), who retire by rotation, being eligible, offer himself for re-appointment. Appointment of Deloitte Haskins & Sells, Chartered Accountants, Chennai (Firm Regn No. 008072S) as Statutory Auditors of the Company.
______Signature of Shareholder
Affix ______Revenue Signature of Proxy holder(s) Stamp
Date: Place: Chennai
148 12th Annual Report 2018-19
149 Corporate Events
150 12th Annual Report 2018-19
Inauguration of Zonal office in Karanataka
151 12th Annual Report 2018-19
Lenders Meet
152 12th Annual Report 2018-19
Business meet in Goa
153 Drive meet in Hyderabad
154 12th Annual Report 2018-19
HR Training Program
155 12th Annual Report 2018-19
CSR Activites
156