Samasta AR 2017-18 Final (Locked)

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Samasta Microfinance Limited | 23rd ANNUAL REPORT 2017-18

Between the pages
Corporate Overview 01-21

About IIFL Holdings Limited 02 | Business Segments 04 | Global Presence 05 |
Samasta Microfinance Limited at a glance 06 | Our Product Offerings 08 |
Our growing presence 09 | Financial Highlights 10 | Spreading smiles: Customer
success stories 12 | Investing in the latest technology 14 | Building foundation for
excellence 16 | Message from the Managing Director 18 | Board of Directors 20
Statutory Reports 22-43

Board’s Report 22 | Management Discussion and Analysis Report 37 |
Secretarial Audit Report 41
Financial Statements 44-116

Standalone Financials 44 | Consolidated Financials 81
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Economically independent women are a
huge asset for society. Being self-reliant and
financially secure enables them to bring
positive change in society and contribute
significantly to the nation’s development.
At Samasta Microfinance Limited, we help

women live better lives by providing them with
credit support. It is especially for those who have
limited access to the formal banking system. We
are pledged to bring women in the mainstream
economy and fulfil their aspirations.
Microfinance not only gives women access to

credit, but also supports the financial inclusion
initiative of the Government. Our loan products
and services fulfil the requirements of our
customers. We focus on generating more smiles
with presence across the length and breadth
of the country. We are committed to contribute
significantly towards increasing financial inclusion
in the country through our strong and efficient
business operations.
With an enthusiastic and strong workforce, we aim

to achieve enhanced value for our customers and
shareholders.
Samasta Microfinance Limited
About
IIFL Holdings Limited
IIFL was founded in 1995 by two

professionally qualified, driven entrepreneurs,
Nirmal Jain and R Venkataraman, with the vision of
becoming the most respected company in the
financial services space.
IIFL is mainly engaged in the business of loans and
mortgages, wealth and asset management, and capital
market related activities. The loans and mortgages
business comprises the non- banking finance, housing
finance and micro finance verticals. The wealth
management business includes wealth and asset
management. The capital market business consists of retail
and institutional broking and investment banking.
IIFL brings deep industry expertise, innovative solutions,
ability to reinvent and a differentiated digital experience
to the table, which has led to the Company’s phenomenal
success across business segments.
2
Annual Report 2017-18 About IIFL Holdings Limited CORPORATE OVERVIEW
`50,661 19.3% `11,621

million million
Net Worth Return on Equity Profit After Tax

`311,336 `1,317,617 500+
million million
Loan Assets Under Wealth Assets Under Stocks Under

Management (AUM) Management, Research
Distribution and Advice

2,500+ 15,000+ 5 million+
Locations Workforce Happy Customers

Note: The financial figures are as on March 31, 2018
Vision Values
FAIRNESS
“To be the Fairness in our transactions with all stakeholders including
most respected employees, customers and vendors, bereft of fear or favour.
financial services INTEGRITY

company in India.” Integrity and honesty of the utmost nature, in letter, in spirit,
and in all our dealings with people, internal or external.
- Not necessarily the largest or
most profitable TRANSPARENCY
Transparency in all our dealings with stakeholders, media,
investors and the public at large.
3
About IIFL Holdings Limited
Business Segments
Loans and Wealth and Asset Capital Market

Mortgages Management related Activities
BUSINESS
Diversified non-banking finance One of the largest and fastest- One of India’s leading broking houses
company offering comprehensive growing wealth management with extensive presence all over the
credit solutions to all classes companies in India offering a holistic country, providing financial planning,
of customers - salaried, self- approach towards managing clients’ investment banking and broking
employed, informal sector, HNIs portfolio with a broad range of services in mutual funds, equity,
and corporates innovative products and services commodities and currency trading
CUSTOMER SEGMENT
Retail and Corporate High Net-Worth Individuals Institutional and Retail
PRODUCTS
Home, Gold, Commercial Vehicles Asset management, Advisory, Investment Banking, Institutional
and SME Loans, Digital Finance, Financial Products Distribution, Broking, Research, Retail Broking
Micro Finance, Loan Against Brokerage and Credit Solutions and Financial Products Distribution
Property, Construction Finance
and Real Estate Loans
DISTRIBUTION CHANNELS
Agents, Banks, Brokers, Direct Direct channels and other Agents, Banks, Brokers,
channels and other distribution distribution agreements Direct channels, other distributors
agreements and independent financial advisors
GEOGRAPHICAL LOCATIONS
1,378 branches Pan-India 23 offices across 9 countries 1,122 locations pan India
FINANCIALS FY18
Income ` 38.6 billion Income ` 17.4 billion Income ` 8.4 billion
Net Profit ` 5.5 billion Net Profit ` 3.9 billion Net Profit ` 2.2 billion
4
Annual Report 2017-18 BUSINESS SEGMENTS CORPORATE OVERVIEW
About IIFL Holdings Limited
Global Presence
Our international subsidiaries are governed by the respective global regulators
including Financial Services Authority, UK; Securities Exchange Commission and
Financial Industry Regulatory Authority, USA; Monetary Authority of Singapore;
Dubai Financial Services Authority; Securities and Futures Commission, Hong
Kong; and Financial Services Commission, Mauritius.

International Subsidiaries’ Locations

UK
Singapore
Mauritius
CANADA
Hong Kong
SWITZERLAND UAE
USA
5

at a glance
Incorporated in 2008, Samasta Microfinance Limited is the fastest growing player in
the microfinance segment in the country. The Company provides financial services to
economically weaker sections of society for income generation activities.
In January 2017, India Infoline Finance Limited (IIFL Finance) acquired 95% stake in Samasta
Microfinance with the intent of benefiting both companies with an increased customer base
and easy access to a wide range of financial products and services.
Samasta has strong presence in the states of Tamil Nadu, Karnataka, Maharashtra, Goa and
Odisha. Through its reach, it is committed to make micro loans and credit linked insurance
available in the rural and semi-urban areas. The Company also offers a bouquet of non-
financial services including life and health insurance. As an add-on service, it also offers
financial counselling to its members. The Company is engaged as a ‘Business Correspondent’
with premier banks in India like YES Bank Limited and IDBI Bank Limited.
Samasta is pledged to transform the lives of working poor across India by providing them with
financial and non-financial services through a sustainable long-term relationship. Large unmet
credit demand in the microfinance sector, supportive industry regulations and best-in-class
technology help the Company secure a strong position.
`8,410 170
million
Assets Under Number of branches

Management
375,684 1,900+
Number of clients Employees
6
Annual Report 2017-18 Samasta Microfinance Limited at a glance CORPORATE OVERVIEW
Mission

Samasta Microfinance aims to bridge the
gap between ambition and achievement of
the working poor across India, by providing
financial and non-financial services, in a
sustainable long-term relationship to enable
a better quality of life.

7
Our Product Offerings

We are focussed on catering to the working capital requirements of women to support their micro
businesses. Our objective is to promote sustainable livelihood and self-employment opportunities.
Loans Repayment Health and welfare

We offer loans under various Group lending Samasta Microfinance
categories such as income methodology wherein continuously works for
generation, education, etc. loan is disbursed to each the health and welfare of
individual in the group and women
A series of training sessions
the group guarantees for
and a test is conducted A host of loans were
each other’s loans
before loan disbursal introduced such as water
This has resulted in great purifier loan, cattle loan,
It is ensured that members
success rate in repayment induction stove and
understand the product
of loans induction stove utensils
details and repayment
loan etc. to improve their
structure
living conditions
Insurance Business
Samasta Microfinance correspondence
provides credit insurance to The Company has been
all its members associated as a Business
Correspondent for Yes Bank
Limited and IDBI Bank Limited
8
Annual Report 2017-18 OUR PRODUCT OFFERINGS CORPORATE OVERVIEW
Our Growing Presence

Samasta has firmly set its footprint as one of the fastest growing microfinance
companies in India. Currently it operates through 173 branches, with more
than 100 new branches opened during the year in states such as Bihar, Odisha,
Chhattisgarh, Rajasthan, Gujarat and Kerala.

Rajasthan
3
Bihar
8
Gujarat
2

Chhattisgarh
2
Odisha
40
Maharashtra
5
Goa
2
Karnataka
55
Tamil Nadu
54
Kerala
2
9
Financial Highlights
Income (` million) Net Profit (` million)
967.8
25.8
14.7
328.4
8.1
201.4 5.9
130.7 132.4 4.6
2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18
YoY Growth: 195% YoY Growth: 219%

5 Years CAGR: 49.2% 5 Years CAGR: 41.2%
Loan Assets Under Capital Adequacy

Management (` billion) Ratio (%)
44.4
8.4
19.2 17.8 18.8

15.4
2.4
1.3
0.5 0.6
2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18
YoY Growth: 250% Capital Adequacy ratio was recorded
5 Years CAGR: 75.8%

at 18.8% as on March 31, 2018
10
Annual Report 2017-18 FINANCIAL HIGHLIGHTS CORPORATE OVERVIEW
Return on Average
Return on Equity (%) Cost of Funds (%)
Assets (%)

11.3 1.7
15.4 16.1
14.9 15.2
13.5
0.9
5.5
5.1 0.7
0.5 0.5

2.8
2.1
2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18
Return on Equity was 2.8% Return on Average Assets was 0.5% Cost of Funds was 13.5% for the
for the year ended March 31, 2018 for the year ended March 31, 2018 year ended March 31, 2018

Net Interest Margin (%) Gross NPA (%)
11.9 11.6 3.85
9.8
9.2 9.1
0.5
0.3 0.3 0.3
2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18
Net Interest Margin reduced marginally to

Gross NPA reduced to 0.3% for the
9.1% for the year ended March 31, 2018 year ended March 31, 2018
11
Spreading smiles:
Customer success stories
Nurturing the ambitions
Name: Urmila Devi
Urmila Devi, a lady in Bihar, runs a small vegetable business in the vicinity
of her village. Through this, she could support just the basic necessities of
her family. But, Urmila Devi and her husband were determined to increase
their earnings and lead a better life. A distant relative informed her about
the loan offerings from Samasta Microfinance and their benefits.
Urmila Devi, with the help of her neighbours, visited a Samasta
Microfinance centre. She successfully availed a loan of ₹ 30,000 and
invested the money in expanding her business. With her hard work,
dedication and financial support from Samasta, her daily income increased
from ₹ 900 to ₹ 1,200.
As a result, her family’s living conditions improved immensely. Today, she is
able to send her children to a good school and secure their future. Urmila
Devi is grateful to the timely support by Samasta and looks forward to
continuing with this relationship.
12
Annual Report 2017-18 Spreading smiles: Customer success stories CORPORATE OVERVIEW
Encouraging the entrepreneurial potential

Name: Mrs. E Lila Beni
Mrs. E Lila Beni is a successful entrepreneur, running a provision store

in the Chatrapur market in Odisha. She had the dream to take her
business forward and improve her family’s lifestyle. However, her
income was not sufficient enough to implement her dream.
At that point of time, she came to know about Samasta Microfinance.
It proved to be a blessing in disguise as the support received from
Samasta helped her avail a loan of ₹ 25,000. Lila invested the money
in business to add some inventory to the existing variety of stock.
As a result, the sale and hence the income from her shop increased
significantly. Today, she proudly claims that her income has grown from
₹ 1,000 to ₹ 1,500.

Lila was happy to share that she was able to grow her business well
through the financial assistance from Samasta. She further added that
it was convenient to repay the loans in instalments. She wishes to be
associated with Samasta Microfinance for her future needs as well.
Inspiring the big dreams

Name: Fatima Begum
Fatima Begum lives with her husband and two sons. She runs a salon in
Chatrapur. Her husband works in Paradeep Port and stays at Rourkela.
Fatima takes care of the daily needs of the family.
She aspired to have a good source of income to provide a decent
lifestyle to her family and higher education to her children. Fatima
approached Samasta to avail financial assistance. She availed a loan of
₹ 25,000 and managed to expand her services and grow operations.
Today, she contributes daily income of ₹ 500 and has improved the
living conditions of her family. Her children have also been admitted to a
good school.
Fatima has managed to realise her dreams through the support received
from Samasta. With all her gratitude, she wishes to be associated with
Samasta for her future requirements as well.
13
Investing in the latest

technology
Digitisation is essential for operational efficiencies in a developing economy like India.
We, at Samasta Microfinance, have embraced advanced technology to streamline our
business operations. We have realised the growing need of customers and accordingly
have created technology-led products to deliver a seamless experience. Besides, our
digital strategy will strengthen our pan-India reach, provide our business with the
ability to use data in innovative ways and help us set new industry benchmarks.
14
Annual Report 2017-18 Investing in the latest technology CORPORATE OVERVIEW
Our new age technology tools

The following has been proposed:
Samasta has signed up with the Stock Holding Corporation

of India Limited for loan document digitisation which will
help them become completely paperless
C-KYC & E-Sign are the future process improvements which
will take Samasta to the next level
Automation of workflows to streamline the existing process
and reduction of errors

15
Building foundation for

excellence
At Samasta, we believe in building a strong foundation for providing the best services
to our customers. The crux of this is the best-in-class work-life where employees are
contented and satisfied. We have continuously designed different training programs
for developing and retaining the best talent and creating a vibrant work culture.
Samasta has always invested in its people to build a culture of trust throughout the
organisation. Our human resource team is committed to enable a unified vision and
purpose among all employees through its initiatives and communication channels.
690 1,900+
Employees as on March 2017 Employees as on March 2018
16
Annual Report 2017-18 Building foundation for excellence CORPORATE OVERVIEW
Key highlights of the year 2017-18
Extensive policies and processes

A comprehensive handbook includes all reviewed HR policies and processes with
the aim of providing better employee benefits. We believe in policies through which

employees are free to put across their ideas to foster transparency, fairness, integrity and
innovation within the organisation.
Enhanced use of technology

Technology plays a vital role in managing employee life cycle and delivering a greater
customer experience. Regular investments have been made in technology and IT
infrastructure to automate processes. This reduces turnaround time and results in less
stress in employees and hence low attrition rates.

The Company has brought in a new software for improving the ease with which the
employee can access the HR portal. The implementation of the software is currently in
progress.
Regular training programs

The training team ensures to equip employees with all the necessary process and
functional trainings, people management, behavioural and leadership skills training

among others. In addition to this, refresher trainings, usage of BR.net, Glow, training on
mandatory laws etc. are delivered on a regular basis.
Rewards and Recognition (R&R)

We believe that our employees work with efficiency and higher commitment to meet
the Company’s goals. Therefore, the Company motivates the deserving employees to
perform better by presenting regular rewards through the R&R programs.
Employee engagement
Samasta believes in the purposeful involvement of employees at the workplace by
promoting an ecosystem where learning, self-growth and excellence are encouraged.
During the year, several employee engagement activities were planned for employees
such as Samasta Premier League, Christmas and New Year celebrations, Company get-
together etc.
17
Message from the

Managing Director
We, at Samasta, are

committed to serve
not only various
financial needs
of our customers
but also empower
them for leading
better lives with
a secured future.
The significant
increase in our loan
portfolio was an
evident result of
our well-planned
strategies.
18
Annual Report 2017-18 Message from the MANAGING DIRECTOR CORPORATE OVERVIEW
Dear Shareholders, We expanded footprint across the country by adding

104 branches to our network. The Company ventured
It gives me great pleasure to present the highlights of your
into the states of Odisha, Rajasthan, Bihar, Gujarat,
company’s performance, achievements and initiatives
Chhattisgarh, Kerala along with addition of branches in
during the financial year 2017-18. It was a defining year
Karnataka, Goa, Maharashtra and Tamil Nadu. The total
for Samasta as the Company attained higher levels of
number of branches at the end of the financial year
growth and sustainability.
stood at 173.
The Indian economy emerged as ‘the fastest growing
People are our most valuable assets and nurturing
economy’ with GDP recorded at 6.7% in FY 2017-18,

their capability is at the core of driving business
backed by improved global demand, better monsoon
excellence and meeting the demands of a transforming
prospects, credit uptick and continued reforms
organisation. We mentor and guide our employees
undertaken by the Government. Microfinance sector
through customised training programmes to create
emerged as a crucial link for financial inclusion of the
a strong leadership in future. Samasta has been
economically weaker section, primarily women. It has
aggressively hiring competent personnel to match the
generated employment, livelihood opportunities and
Company’s targets for the forthcoming financial years.
considerable enthusiasm, based on the small loans and
The total number of employees on roll as on March 31,
other financial services.
2018 were 1,900+ as against 690 as on March 31, 2017.
This is an encouraging sign for many medium and small
The microfinance landscape is changing in line

microfinance institutions who are set to expand their
with increasing technology usage. The Company is
reach and operations. The microfinance industry, which
proactively spreading digital tools in its operations by
has been reeling under pressure post demonetisation on
using tab-based enrolment for sourcing new customers
account of a substantial dip in collection rates, resulting
and for recording the repayment entries by the field
in the rise of non-performing assets (NPA), has started
officers at the field level. We shall continuously strive to
showing signs of recovery.
improve our position across all digital channels.
According to the Micrometer report by Microfinance
We will continue to grow, penetrate geographically and
Institutions Network (MFIN), equity investments
increase our product offerings in the future. Growth
in Non-Banking Finance Company-Microfinance
comes with lot of challenges and our preparedness to

Institutions (NBFC-MFIs) grew by 40% in FY 2017-18
overcome these will be the key. In the process of doing
as compared to FY 2016-17 and stood at ₹ 9,631
so we aspire to set a benchmark for the industry. Our
Crores. Overall the microfinance industry witnessed
pledge this year would be to Grow responsibly and
27% YoY growth in the loan portfolio during
Efficiently.
FY 2017-18. The total gross loan portfolio of the industry
stood at ₹ 136,633 Crores. Grow responsibly by adhering to definite principle
that lending in the microfinance model requires
We, at Samasta, are committed to serve not only various
financial needs of our customers but also empower Efficiently to standout as an organisation’s need to
them for leading better lives with a secured future. The display high efficiency levels in whatever we do
Company empowers women from the economically We are well-positioned in the industry with the strong
weaker section of the society by offering various loan support of the brand name IIFL that helps us set us on
products such as Income Generation loans, Top up loans, the path of a larger vision, making Samasta a household
Product loans and Educational loans among others. name.
The significant increase in our loan portfolio was an
With Best Wishes,
evident result of our well-planned strategies. The overall
gross loan book including growth in managed assets
grew by 253% as it has moved from ₹ 238 Crores to Venkatesh N.
₹ 840 Crores. We closed the financial year with a total Managing Director
income of ₹ 96.78 Crores, an increase of 195% over the
previous year.
19
Board of Directors
Mr. Venkatesh N.
Managing Director
Venkatesh has an experience of over 21 years in the financial services sector. He had founded
PNV Techno Acquisitions Private Limited that marketed financial products and Affluence
Edifice, which offered wealth management services for high net worth individuals. In 2008,
he founded Samasta Microfinance Limited, which has an asset size of ` 1,000 Crores at
present. He holds a B.Sc. Degree in Computer Science and has completed ACCIO-N program
for strategic leadership in Microfinance through Harvard Business School.
Mr. Shivaprakash D
Whole-time Director
Shivaprakash has over 2 decades of rich and diverse cross-industry experience in software
services, business operations and leadership positions. As Director and CIO, he has played a
pivotal role in setting up business support functions, deploying IT applications and running
IT as a support function for the organisation. Prior to Samasta, he has spent nearly a decade
with Wipro Technologies, leading and executing projects for global clients.
Mr. R. Venkataraman
Non-Executive Director
Mr. R. Venkataraman, Non-Executive Director of the Company, is a B.Tech (Electronics
and Electrical Communications Engineering, IIT Kharagpur) and an MBA (IIM, Bangalore).
He has been contributing immensely into the establishment of various businesses and
spearheading key initiatives of the group over the past 18 years. He previously held senior
managerial positions in ICICI Limited, including ICICI Securities Limited, their investment
banking joint venture with J P Morgan of US and Barclays – BZW. He worked as the
Assistant Vice President with G E Capital Services India Limited in their private equity
division. He has a varied experience of more than 26 years in the financial services sector.
Mr. Gaurav Malhotra

Director
Gaurav has a degree in Engineering and an MBA from IIM Bangalore. He joined CDC in
2016, mainly responsible for advertising, supporting the CDC Group on the investments
in Financial Institutions in South Asia. Gaurav has a wide range of consultancy experience,
working for several financial institutions during his 10 years with The Boston Consulting
Group in India and Europe. He also worked for a year as the head of strategy for an Indian
family business. He has experience in several areas including growth strategy, consumer
behaviour, distribution networks, operations and IT, various Microfinance Institutions.
20
Annual Report 2017-18 BOARD OF DIRECTORS CORPORATE OVERVIEW
Mr. Ramanathan A.
Independent Director
Ramanathan has extensive experience in the development banking for the
agriculture and rural sectors. He was Chief General Manager in the Micro Credit

Innovations Department of NABARD. He managed the SHG Bank Linkage program,
the largest microfinance program in the world. As in-charge of the Financial Inclusion
department, he has managed Financial Inclusion Fund and Financial Inclusion
Technology Fund etc.
Mr. Vikraman A.
A former Chief General Manager of SIDBI Foundation for Micro Credit, Mr. Vikraman

has extensive experience in the Microfinance Sector. In his experience spanning 38
years, he was with Reserve Bank of India for 5 years, IDBI for 16 years and SIDBI for 17
years. He is also in the Board of other microfinance and financial corporations.
Mr. Badri Seshadri

An alumnus of IIT, Chennai and with a Ph. D in Mechanical Engineering from

Cornell University in the USA, Mr. Badri Seshadri co-founded Cricinfo.com, a cricket
information portal, which is now owned by ESPN. His latest venture is New Horizon
Media, focusing on publishing in Indian languages.
Mrs. Malini B. Eden

Additional Director
A Development Specialist and Strategy Consultant for over two decades, on the lines
of Process based Management Principles. She has significant experience of working
for the marginalised and drawing these into policy across several development
themes. She has been a part of Bilateral agencies and Government Boards at State,
National and International bodies in areas of Economic empowerment, Health, Project
Management, Donor Relations and Stakeholders, Advocacy and Networking etc.
Mrs. Malini played key role in setting up initiatives like section 25 company, Software
company for assessing NGO sector and MFI, Co-Promoter of an NBFC, conceptualizing
the grassroots processes for policy decisions.
21
BOARD’S REPORT
To, d) The Directors had prepared the annual accounts on a

going concerns basis.
The Members,
e) The directors had laid down internal financial controls
to be followed by the Company and that such internal
Bangalore financial controls are adequate and were operating
Your Directors take pleasure in presenting the 23rd (Twenty Third) effectively.
Annual Report together with the audited financial statements f ) The directors had devised proper systems to ensure
and the Auditors’ Report of your company for the financial year compliance with the provisions of all applicable laws
ended March 31, 2018. The summarised results for the year ended and that such systems were adequate and operating
March 31, 2018 are as under: effectively.
1. PERIOD OF REPORT: Following frauds were reported during the financial year
This report is for the period from April 1, 2017 to March 31, 2017-2018. Appropriate measures have been taken in
2018. respect of the frauds.
2. DISCLOSURE UNDER SECTION 92(3) OF THE COMPANIES Details of instances of frauds during April 1 ,2017 to
ACT, 2013 (HEREINAFTER KNOWN AS THE “ACT”) March 31 ,2018 are given below-

Disclosure under Section 92(3) of the Act that relate to the 1) No. of instances of fraud reported to RBI from April 1,
Extracts of Annual Return has been placed at Annexure I 2017 to March 31, 2018:13 Cases.
and forms part of this Board Report. 2) Total amount involved in fraud: ` 615,550
3. MEETINGS OF THE BOARD AND DIFFERENT 3) Total amount recovered till March 2018: `260,038
COMMITTEES DURING THE FINANCIAL YEAR 2017-18:
5. DECLARATIONS BY INDEPENDENT DIRECTORS:

The Board duly met for 4 (Four) times during the year under

The Company has received declarations from the
review.
Independent Directors stating they meet the criteria as
4. DIRECTORS’ RESPONSIBILITY STATEMENT: specified under Section 149 (6) of the Companies Act, 2013.

Pursuant to Section 134(5) of the Act, the Board, based 6. COMPANY’S POLICIES ON APPOINTMENT OF
on the representations received from the management, DIRECTORS, REMUNERATION AND OTHER MATTERS:
confirms that:
The Company takes a cautious approach in relation to
a) In the preparation of the annual accounts, for year appointment of Directors on the Board of the Company.
ended on March 31, 2018, the applicable accounting It shall appoint such persons who are relevant expertise
standards have been followed and that there are no and vast experience in the field of microfinancing.
material departures; The remuneration of Directors shall be based on their
contribution towards the overall development of the
b) The Board has selected such accounting policies and Company as well as their participation in the meetings of
applied them consistently and made judgments and the Company. The terms and conditions for appointment
estimated that are reasonable and prudent so as to of Independent Directors are uploaded on the website of
give a true and fair view of the state of affairs of the the Company and may be accessed by visiting our website
Company at the end of the financial year and of the –www.samasta.co.in.
profit and loss of the Company for that period.
7. COMPOSITION OF BOARD OF DIRECTORS, COMMITTEES
c)
The Directors had taken proper and sufficient OF THE BOARD AND KEY MANAGERIAL PERSONNEL:
care for the maintenance of adequate accounting
records in accordance with the provisions of the A) The Board of Directors of the Company was duly
Act for safeguarding the assets of the Company constituted throughout the year. However, following
and for preventing and detecting fraud and other changes were made to the Board composition:
irregularities; and i) Mr. Venkatraman Rajamani, Mr. Kalyanaraman
Chandrachoodan and Mr. Gaurav Malhotra were
regularised as the Director of the Company in
22
Annual Report 2017-18 Board’s Report Statutory Reports
BOARD’S REPORT (contd.)
the Annual General Meeting dated July 11, 2017.
ii) Mr. Kalyanaraman Chandrachoodan resigned as Director of the Company with effect from August 30, 2017;
The current composition of the Board of Directors is as below:
SI. No Name of the Director Designation and Category

1 Mr. Venkatesh N. Managing Director
2 Mr. Shivaprakash D. Whole-Time Director
3 Mr. Venkataraman R. Non-Executive Director

4 Mr. Gaurav Malhotra Non-Executive Director
5 Mr. Vikraman A. Non-Executive, Independent Director
6 Mr. Badrinarayanan S. Non-Executive, Independent Director
7 Mr. Ramanathan A. Non-Executive, Independent Director
The meetings of Board of Directors and attendance of the Directors are as given below:
Presence of Directors
Date of Venkatesh Shivaprakash Gaurav Ramanathan Badrinarayan Chandrachoodan Venkataraman Vikraman
Sl No.
Meeting N. D. M. A. S. K. R. A.
1 21.04.2017 Y Y Y Y N Y Y Y
2 11.07.2017 Y Y Y N Y Y Y N
3 16.10.2017 Y Y Y Y Y NA Y Y
4 23.01.2018 Y N Y Y Y NA Y Y

Y –Yes
N –No
NA –Not Applicable
B) Committees of the Board:
i) Audit Committee
The Audit Committee currently consists of the following members:
1. Mr. Vikraman Ampalakkat

2. Mr. Badrinarayanan Seshadri
3. Mr. Shivaprakash D.
All the recommendations of the Committee have been adopted by the Board.
The meetings of the Audit Committee and attendance of its members are as given below:
Sl No. Date of Meeting Name of Directors

Shivaprakash D. Vikraman A. Badrinarayanan S.
1 April 21, 2017 Yes Yes No
2 July 11, 2017 Yes No Yes
3 October 16, 2017 Yes Yes Yes
4 January 23, 2018 No Yes Yes
ii) Nomination & Remuneration Committee:
The Nomination & Remuneration Committee currently consists of the Following members:
1. Mr. Ramanathan Annamalai
2. Mr. Badrinarayanan Seshadri
3. Mr. Venkatesh N.
The meetings of the Nomination and Remuneration Committee and attendance of its members are as given below:
23

Ramanathan A. Badrinarayanan S. Venkatesh N.
1 January 23, 2018 Yes Yes Yes
iii) Resourcing & Business Committee:
The Resourcing & Business Committee currently consists of the following members:
1. Mr. Narayanaswamy Venkatesh
2. Mr. Shivaprakash Deviah
The meetings of the Resourcing & Business Committee and attendance of its members are as given below:

N. Venkatesh D. Shivaprakash
1 April 27, 2017 Yes Yes
2 May 10, 2017 Yes Yes
3 May 26, 2017 Yes Yes
4 June 6, 2017 Yes Yes
7 July 5, 2017 Yes Yes
8 July 24, 2017 Yes Yes
9 August 1, 2017 Yes Yes
10 August 21,2017 Yes Yes
11 August 28, 2017 Yes Yes
12 September 14, 2017 Yes Yes
(10.30 A.M)
(5.00 P.M)
16 October 04, 2017 Yes Yes
17 November 10, 2017 Yes Yes
18 December 5, 2017 Yes Yes
21 January 27, 2018 Yes Yes
22 February, 21, 2018 Yes Yes
23 March 17, 2018 Yes Yes
24 March 26, 2018 Yes Yes
iv) Allotment Committee:
The Allotment Committee currently consists of the following members:
The meetings of the Allotment Committee and attendance of its members are as given below:

N. Venkatesh D. Shivaprakash
24
v) ALCO Committee:
The Asset and Liability Committee currently consists of the following members:
3. Mr. T. Anantha Kumar (Chief Financial Officer)
4. Mr. Gaurav Malhotra

All the recommendations of the Committee have been adopted by the Board
The meetings of the Asset & Liability Committee and attendance of its members are as given below:

N. Venkatesh D. Shivaprakash Gaurav Malhotra
1 July 7, 2017 Yes Yes Yes
2 October 7, 2017 Yes Yes Yes
3 January 8, 2018 Yes Yes Yes
vi) Risk Management Committee:
The Risk Management Committee currently consists of the following members:

3. Mr. Ramanathan A.
The meetings of the Risk Management Committee and attendance of its members are as given below:

N. Venkatesh D. Shivaprakash Ramanathan A.

1 July 11, 2017 Yes Yes Yes
C) Further, in relation to the changes in Key Managerial Personnel of the Company, there were no such changes.
8. CHANGES IN SHARE CAPITAL: and 18,55,000 Preference Shares of ` 10 each aggregating

to ` 1,85,50,000.
The Authorised Capital of the Company was increased
from the existing ` 65,00,00,000 (Rupees Sixty Five Crore The Paid-up Capital of the Company has been increased
Only) consisting of ` 63,00,00,000 (Rupees Sixty Three Crore from ` 61,34,46,110/- to ` 1,113,446,110/- on November 8,
Only) Equity share capital divided into 6,30,00,000 Equity 2017 pursuant to allotment of 50,000,000 Equity Shares of
Shares of ` 10 (Rupees Ten Only) each and, ` 2,00,00,000 ` 10/- each.
(Rupees Two Crore Only) Preference share capital divided
9. STATUTORY AUDITORS:
into 1,45,000 Redeemable Non-Convertible Cumulative
Preference Shares of ` 10 each aggregating to ` 14,50,000
The Company’s existing Statutory Auditors, M/s. Gowthama
and 18,55,000 Preference Shares of ` 10 each aggregating and Company, Chartered Accountants are retiring by
to ` 1,85,50,000 to the revised authorised capital of rotation at the ensuing Annual General Meeting.
` 115,00,00,000 (Rupees One Hundred and Fifteen Crore
Only) consisting of ` 113,00,00,000 (Rupees One Hundred M/s. V Sankar Aiyar & Co., Chartered Accountantsare
and Thirteen Crore Only) Equity share capital divided proposed to be appointed as the Statutory Auditorsof the
into 11,30,00,000 Equity Shares of ` 10 (Rupees Ten Only) Company at the ensuing Annual General Meeting.
each and, ` 2,00,00,000 Preference share Capital divided
into 1,45,000 Redeemable Non-Convertible Cumulative
Preference Shares of ` 10 each aggregating to ` 14,50,000
25
10. AUDITORS’ REPORT AND ITS QUALIFICATIONS: 14. PARTICULARS OF CONTRACTS OR ARRANGEMENTS
WITH RELATED PARTIES:

There are no qualifications, reservations or adverse remarks
or disclaimer made by the auditor in their report for the year
The particulars relating to the contracts or arrangements
under review and requires no further comments thereon. with related parties have been placed in Form No. AOC-2
enclosed as Annexure 2 to this and suitable disclosures as
11. SECRETARIAL AUDITOR: required in compliance with accounting standards with

The Company hasre-appointed Mr. Lakshmeenarayan Bhat, related parties are disclosed in note 27 of the financial
Practicing Company Secretary as the Secretarial Auditor statements in the annual report.
under Section 204 of the Companies Act, 2013 for the 15. DEPOSITS:
period under review.

Your Company has not accepted any deposits from public
12. QUALIFICATIONS IN THE SECRETARIAL AUDITORS’ during the financial year under review.
REPORT AND COMMENTS ON THE SAME:
16.
DETAILS OF SUBSIDIARY, JOINT VENTURE OR
• oint 1 of the Report states that the Company has not
P
ASSOCIATES:
appointed a Woman Director as per the provisions of
Section 149 of the Companies Act, 2013.
The Company has a 100% wholly owned subsidiary M/s.

Directors’ Comments: The Company has appointed Ayusha Dairy Private Limited. Currently, merger between
Mrs. Malini Eden as the Woman Director at the Board Ayusha and the Company is in process and the application
Meeting dated April 26, 2018. for the same is pending with the Regional Director, Southern
Region –Hyderabad for approval.
13. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
UNDER SECTION 186:

The Company being a Non-Banking Financial Company
is exempted from the purview of Section 186 of the
Companies Act, 2013.
17. FINANCIAL HIGHLIGHTS (STANDALONE AND CONSOLIDATED):
A. Standalone Financials of M/s. Samasta Microfinance Limited
(`)
Year ended Year ended
Particulars
March 31, 2018 March 31, 2017
Total Revenue 967,831,271 328,447,288
Total Expenses 898,635,725 322,212,993
Earnings before tax 43,795,546 6,234,295
Earnings after tax 25,829,713 8,089,888
B. Consolidated Financials with Subsidiary M/s. Ayusha Dairy Private Limited
(`)
Particulars
March 31, 2018 March 31, 2017
Turnover 968,301,603 330,802,429
Profit/ (loss) before Tax 41,631,765 6,771,125
Profit/ (loss) after Tax 23,762,849 8,476,718
26
18. OPERATIONAL HIGHLIGHTS:
(`)
Particulars
March 31, 2018 March 31, 2017
Active borrowers (Own Portfolio) 292,900 79,559
Loan disbursement (` in lakh) 94,088.11 24,480.48
Loan portfolio (` in lakh) 63,350.65 14,249.91

BC loan portfolio (` in lakh) 15,697.07 7,786.67
Securitisation (` in lakh) 5,002.04 1,756.88
No of Branches 173 70
No. of centers 46,757 15,335
No. of employees 1,655 690
Repayment rate 98% 85%
The Company has increased its income from operations from `320,382,354 for the financial year ended March 31, 2017 to
`959,805,592 for the period under review.
19. DIVIDEND: which, in the aggregate, or as the case may be, at a

rate which, in the aggregate, is in excess of that drawn
Your Board of Directors do not recommend any Dividend for
by the managing director or whole-time director
the financial year 2017-18.

or manager and holds by himself or along with his
20. TRANSFER TO RESERVES: spouse and dependent children, not less than two
percent of the equity shares of the Company

During the year, entire profits have been transferred to
Disclosure under Section 197 (12) read with Rule 5 of
Reserves.
the Companies (Appointment and Remuneration of
21. MATERIAL CHANGES POST END OF THE FINANCIAL Managerial Personnel) Rules, 2014:
YEAR: i) the ratio of the remuneration of each director to the median
remuneration of the employees of the Company for the

M/s Ayusha Dairy Private Limited, the wholly owned
financial year:
subsidiary is in the process of merger with the Company.

The members and creditors of both the transferor and Mr. Venkatesh N., Managing Director -34.19;
transferee companies have approved the scheme of
Mr. Shivaprakash D., Whole Time Director -25.90
amalgamation vide their respective meetings dated March
28, 2018 and the requisite forms have been filed with the ii) the percentage increase in remuneration of each director,
appropriate authorities. While the Official Liquidator has Chief Financial Officer, Chief Executive Officer, Company
given his consent for the merger, the application is now Secretary or Manager, if any, in the financial year:
pending with the Regional Director, Southern Region for Managing Director - 63.60%
approval. Whole Time Director - 75.25%
22. MANAGERIAL REMUNERATION: Chief Financial Officer - 21.09%
Company Secretary - 8.01%
There was no employee during the year-
iii) the percentage increase in the median remuneration of
• ho was in receipt of remuneration for that year
W employees in the financial year: 10.79%
which, in the aggregate, was not less than One Crore iv)
the number of permanent employees on the rolls of
and Two Lakh Rupees; company: -1,655
• If employed for a part of the financial year, was in v) the ratio of the remuneration of the highest paid director
receipt of remuneration for any part of that year, at a to that of the employees who are not directors but receive
rate which, in the aggregate, was not less than Eight remuneration in excess of the highest paid director during
Lakh Fifty Thousand rupees per month; the year: Not Applicable
vi) affirmation that the remuneration is as per the remuneration

• If employed throughout the financial year or part
policy of the Company: Yes, we affirm that the remuneration
thereof, was in receipt of remuneration in that year
was as per the remuneration policy of the Company.
27
23. CONSERVATION OF ENERGY, TECHNOLOGY evaluation of the working of its Committees. A structured
ABSORPTION, FOREIGN EXCHANGE EARNINGS/ exercise was carried out based on the criteria for evaluation
OUTGO IN TERMS OF SECTION 134(3)(m) OF THE forming part of the Directors Appointment, Remuneration
COMPANIES ACT, 2013 AND RULE, 8 OF COMPANIES & Evaluation Policy, including framework for performance
(ACCOUNTS) RULES, 2015: evaluation of Directors, Board & Committees, familiarisation
Program for Independent Directors Criteria for Evaluation
a) Energy Consumption:
and the inputs received from the Directors, covering various
There are no matters to be reported under this head as the aspects of the Board’s functioning such as adequacy of the
Company is not engaged in power-intensive activities and composition of the Board and its committee, attendance at
hence not applicable to this company. meetings, Board culture, duties of directors, and governance.
b) Technology Absorption: A separate exercise was carried out to evaluate the
There are no matters to be reported under this head as the performance of individual Directors including the Chairman
Company is not entered into any technical collaboration of the Board, who were evaluated on parameters such as
agreements. level of engagement and contribution, independence of
judgment, safeguarding the interest of the Company and
c) Foreign Exchange Outflow/Inflow: its stakeholders etc. The performance evaluation of the
The Company has no transactions in foreign currency Independent Directors was carried out by the entire Board.
during the Financial Year 2017-18. The performance evaluation of the Chairman and the Non-
Independent Directors was carried out by the Independent
24. RISK MANAGEMENT POLICY: Directors. The Directors have expressed their satisfaction
Successful mortgage lending calls for timely identification, with the evaluation process.
careful assessment and effective management of the 28. INTERNAL CONTROLS:
credit operational, market (interest-rate and liquidity) and
reputation risks. The Company has adopted efficient risk-
The Company has a well-established and adequate internal
management policies, systems and processes that seek to financial control and risk management framework, with
strike an appropriate balance between risk and returns. appropriate policies and procedures, to ensure the highest
standards of integrity and transparency in its operations and

The Company has also introduced appropriate risk-
a strong corporate governance structure, while maintaining
management measures, such as accessing the Applicant’s
excellence in services to all its stakeholders. Appropriate
credit history with credit information bureaus, field
controls are in place to ensure: (a) the orderly and efficient
investigation of the applicant’s credentials, multiple
conduct of business, including adherence to policies,
verification layers, adoption of prudent loan/value ratio
(b) safeguarding of assets. (c) prevention and detection
and analysis and adoption of a conservative debt-service
of frauds / errors, (d) accuracy and completeness of the
capacity of the borrowers, thorough in-house scrutiny of
accounting records and (e) timely preparation of reliable
legal documents, monitoring the end-use of approved
financial information.
loans and lending against approved properties.
The Company has an Audit Committee, which regularly
25. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
reviews and monitors systems, internal controls, risk
The Management Discussion and Analysis Report has been management measures, accounting procedures, financial
enclosed as Annexure IV to this Report. management and operations of the Company.
26. CORPORATE SOCIAL RESPONSIBILITY (CSR): The Audit Committee, Independent Directors and the Board
after review are satisfied with the internal financial controls

The Company was not required to comply with
and risk management systems put in place by the Company.
theprovisions of Section 135 of the Companies Act, 2013
relating to Corporate Social Responsibility (CSR). 29.
DETAILS OF SIGNIFICANT & MATERIAL ORDER
PASSED BY THE REGULATORS OR COURTS OR
27.
STATEMENT SHOWING ANNUAL PERFORMANCE
TRIBUNAL:
EVALUATION OF BOARD AND ITS COMMITTEE:

During the financial year, there are no significant and

As per the provisions of the Companies Act, 2013, the Board
material orders passed by the Regulators or Courts or
has carried out an annual performance evaluation of its
Tribunals impacting the going concern status and your
own performance, the directors individually as well as the
company’s operations in future.
28
30.
DISCLOSURE ON ESTABLISHMENT OF VIGIL b. Statement on contracts entered into with Related Parties in
MECHANISM: Form AOC-2 –Annexure II

Your Company has established a Vigil Mechanism & has c. Management Discussion and Analysis Report- Annexure III
adopted a Whistle Blower Policy for directors and employees d.
Statement containing salient features of the financial
to report their genuine concerns to the Chairman of the statement of subsidiaries in Form AOC-1- Annexure IV
Audit Committee.
e. Secretarial Audit Report- Annexure V
The Whistle Blower Policy has been formulated with a view

34. ACKNOWLEDGMENTS:
to provide a mechanism for employees and directors to
approach the Audit Committee of the Company.
Your Directors wish to place on record their appreciation
and acknowledge with gratitude the continued support
31.
DISCLOSURES UNDER SEXUAL HARASSMENT
and co-operation extended by the investors, clients,
0F WOMEN AT WORKPLACE (PREVENTION,
business associates and bankers and look forward for their
PROHIBITION & REDRESSAL) ACT, 2013:
continued support. Your Directors also place on record their

The Company has in place Anti-Sexual Harassment Policy appreciation for the services rendered by the employees at
named “Policy Against Sexual Harassment.’ in line with the all levels.
requirements of The Sexual Harassment of Women at the
For and on behalf of Samasta Microfinance Limited
Workplace (Prevention, Prohibition & Redressal) Act, 2013.
An Internal Complaints Committees (ICC) has been set up to Venkatesh Narayanaswamy Shivaprakash Deviah

redress complaints received regarding sexual harassment. Managing Director Whole Time Director
DIN: 01018821 DIN: 02216802
Your Directors further state that during the year under
review, no complaints have been received pursuant to the Date: April 26, 2018
Place: Bangalore
Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
32. COMPLIANCE WITH THE SECRETARIAL STANDARDS

ISSUED BY THE INSTITUTE OF COMPANY
SECRETARIES OF INDIA:

The Board hereby confirms the compliance of the provisions
of the Secretarial Standard-1 and 2 issued by the Institute of
Company Secretaries of India.
33.
ANNEXURE FORMING PART OF THIS REPORT OF
DIRECTORS:

The Annexure referred to in this Report and other
information which are required to be disclosed are annexed
herewith and form a part of this Report of the Directors:
a. Extracts of Annual Return in Form MGT-9- Annexure I
29
Annexure – A
FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN
As on financial year ended on March 31, 2018
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration)
Rules, 2014.
I. REGISTRATION & OTHER DETAILS:
1. CIN U65191KA1995PLC057884
2. Registration Date 09/08/1995
3. Name of the Company SAMASTA MICROFINANCE LIMITED
4. Category/Sub-category of the Company Company Limited by Shares
5. Address of the Registered office & contact details 418,1/2A, 4th Cross, 6th Main, Wilson Garden, Bangalore KA
560027 INDIA Contact Number: 08042913500
6. Whether listed company No, Debt Listed
7. Name, Address & contact details of the Registrar & Transfer Link Intime India Pvt. Ltd 247 Park, C 101 1st Floor, LBS Marg,
Agent, if any. Vikhroli (W), Mumbai – 400 083 Vishwas Attavar- +91 22
49186000
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 Product/service % to total turnover of the Company
products / services
1 Financing Services – Micro 64990 98.06
Finance Lending
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:
Sl No. Name and Address of the Percentage of Applicable

CIN CATEGORY
Company Shares Held Section
1 India Infoline Finance U67120MH2004PLC147365 Holding 97.37 2 (46)
Limited12A-10, 13th Floor, Parinee
Crescenzo, G Block, C-38 & 39,
Bandra Kurla Complex, Bandra- East
Mumbai Mumbai City 400051
2 Ayusha Dairy Private Limited U15490KA2011PTC058468 Subsidiary 100 2 (87)
418, 1/2A, 4th Cross, 6th Main,
Wilson Garden, Bangalore KA
560027
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
A) Category-wise Share Holding
Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year %
Shareholders
of Change
% of Total % of Total during the
Demat Physical Total Demat Physical Total
Shares Shares
Year
(A) Promoters
(1) Indian
(a) Individual/HUF 1680840 - 1680840 2.74 1680840 - 1680840 1.51 (1.23)
(b) Central Govt -- -- -- -- -- -- -- -- --
(c) State Govt (s) -- -- -- -- -- -- -- -- --
(d) Bodies Corp. 58417631 -- 58417631 95.23 108417631 -- 108417631 97.37 2.14
(e) Banks / FI -- -- -- -- -- -- -- -- --
30
Annexure – A (contd.)
Shareholders
of Change
Shares Shares
Year
(f ) Any 1246140 - 1246140 2.03 1246140 - 1246140 1.12 (0.91)
other(relative of
promoters)
Sub-Total (A) (1) 61344611 -- 61344611 100 111344611 -- 111344611 100 --

(2) Foreign
(a) NRIs – --
-- -- -- -- -- -- -- --
Individuals
(b) Other – --
-- -- -- -- -- -- -- --
Individuals
(c) Bodies Corp. -- -- -- -- -- -- -- -- --
(d) Banks / FI -- -- -- -- -- -- -- -- --
(e) Any Other…. -- -- -- -- -- -- -- -- --
Sub-Total (A) (2) -- -- -- -- -- -- -- -- --
Total Shareholding 61344611 -- 61344611 100 111344611 -- 111344611 100 --
of Promoter (A) = (A)
(1) + (A) (2)
(B) Public Shareholding

(1) Institutions
(a) Mutual Funds -- -- -- -- -- -- -- -- --
(b) Banks/FI -- -- -- -- -- -- -- -- --
(c) Central Govt -- -- -- -- -- -- -- -- --
(d) State Govt (s) -- -- -- -- -- -- -- -- --
(e) Venture Capital -- -- -- -- -- -- -- -- --
funds
(a) Insurance -- -- -- -- -- -- -- -- --
Companies
(b) FIIs -- -- -- -- -- -- -- -- --
(c) Foreign Venture -- -- -- -- -- -- -- -- --

Capital Funds
(i) Others (Specify) -- -- -- -- -- -- -- -- --
Sub-Total (B)(1) -- -- -- -- -- -- -- -- --
(2) Non- Institutions
(a) Bodies Corp
i. Indian -- -- -- -- -- -- -- -- --
ii. Overseas -- -- -- -- -- -- -- -- --
(b) Individuals -- -- -- -- -- -- -- -- --
i. Individual -- -- -- -- -- -- -- -- --
shareholders `
1 lakh
ii. Individual -- -- -- -- -- -- -- -- --
shareholders
holding
nominal share
capital in excess
of `1 lakh
(C) Others (Specify)
Sub-Total (B)(2) -- -- -- -- -- -- -- -- --
Total Public -- -- -- -- -- -- -- -- --
Shareholding = (B)
(1) + (B) (2)
31
Shareholders
of Change
Shares Shares
Year
C. Shares held
by custodian
for GDRs &
ADRs
Grand Total (A+B+C) 61344611 -- 61344611 100 111344611 -- 111344611 100 --
B) Shareholding of Promoters
SN Shareholder’s Name Shareholding at the beginning of the Shareholding at the end of the year % change in
year shareholding
No. of %of Shares %of Shares
% of total % of total during the
Shares Pledged / Pledged /
Shares No. of Shares
encumbered encumbered year
of the Shares of the
to total to total
Company Company
shares shares
1 Mr. Shivaprakash D. 345000 0.56 -- 345000 0.31 -- (0.25)
2 Mr. Venkatesh N 1335840 2.18 -- 1335840 1.20 -- (0.98)
3 India Infoline Finance Limited 58417631 95.23 -- 108417631 97.37 -- 2.14
C) Change in Promoters’ Shareholding (please specify, if there is no change)
Shareholding at the beginning of the year Cumulative Shareholding during the year
Particulars % of total shares of the % of total shares of the
No. of shares No. of shares
Company Company
At the beginning of the year:
1. Mr. Shivaprakash D 345000 0.56
2. Mr. Venkatesh N 1335840 2.18
3. India Infoline Finance 58417631 95.23
Limited
Changes in Promoters
Share holding during the year:
1. Mr. Shivaprakash D. (0.22)
2. Mr. Venkatesh N (0.98)
3. India Infoline Finance 2.14
Limited
At the End of the year:
1. Mr. Shivaprakash D. 345000 0.31
2. Mr. Venkatesh N 1335840 1.20
3. India Infoline Finance 108417631 97.37
Limited
D) Shareholding Pattern of top ten Shareholders: NIL
(Other than Directors, Promoters and Holders of GDRs and ADRs)
Particulars Shareholding at the beginning of the year Cumulative Shareholding during the year
% of total shares of the % of total shares of the
Company Company
Changes in Promoters
Share holding during the year:

32
E) Shareholding of Directors and Key Managerial Personnel:
Particulars Shareholding at the beginning of the year Cumulative Shareholding during the year
% of total shares of the % of total shares of the
Company Company
1. Mr. N Venkatesh 345000 0.56
2. Mr. D Shivaprakash 1335840 2.18
Changes in Promoters Share

holding during the year:
1. Mr. N Venkatesh (0.22)
2. Mr. D Shivaprakash (0.98)
1. Mr. N Venkatesh 345000 0.31
2. Mr. D Shivaprakash 1335840 1.20
Note: There is a change in the percentage of shareholding of Mr. D Shiva Prakash and Mr. Venkatesh N due to allotment made during the
year to M/s. India Infoline Finance Limited.
V) INDEBTEDNESS:
Indebtedness of the Company including interest outstanding/accrued but not due for payment

(`)
Particulars Secured Loans
Unsecured Loans Deposits Total Indebtedness
excluding deposits
Indebtedness at the beginning of the financial year
i) Principal Amount 1,414,607,976 500,000 - 1,415,107,976
ii) Interest due but not paid - - -
iii) Interest accrued but not due 6,058,172 - - 6,058,172
Total (i+ii+iii) 1,420,666,148 500,000 - 1,421,166,148
Change in Indebtedness during the financial year
* Addition 627,982,450 748,620,200 1,376,602,650
* Reduction - - -

Net Change 628,482,450 748,620,200 1,377,102,650
Indebtedness at the end of the financial year
i) Principal Amount 3,884,110,764 628,482,450 748,620,200 5,261,213,414
ii) Interest due but not paid - - -
iii) Interest accrued but not due 27,429,520 - - 27,429,520
Total (i+ii+iii) 3,911,540,284 628,482,450 748,620,200 5,288,642,934
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(`)
SN. Particulars of Remuneration Name of MD and WTD Total Amount
Mr. N Venkatesh Mr. D Shivaprakash
1 Gross salary
(a) Salary as per provisions contained 5,401,596 4,200,156 9,601,752
in section 17(1) of the Income-tax
Act, 1961
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961
(c) Profits in lieu of salary under section
17(3) Income- tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commission
33
- as % of profit
- others, specify…
5 Others, please specify
Total (A) 5,401,596 4,200,156 9,601,752
Ceiling as per the Act120 lakh
B. Remuneration to other directors
(`)
SN. Particulars of Remuneration Name of Directors Total Amount
Mr. B. Seshadri Mr. R. Annamalai Mr. V. Ampalakkat
1 Independent Directors
Fee for attending board committee meetings 58,332 47,222 58,332 163,886
Commission - - - -
Others, please specify - - - -
Total (1)
2 Other Non-Executive Directors
Fee for attending board committee meetings -- - -
Commission
Others, please specify -- - -
Total (2)
Total (B)=(1+2) - - - -
Total Managerial 0 0 0 0
Remuneration 58,332 47,222 58,332 163,886
58,332 47,222 58,332 163,886
C. Remuneration to other Key Managerial Personnel:
(`)
SN. Particulars of Remuneration Key Managerial Personnel
Mr. T. Anantha
Mr. Sutheja KJ Total
Kumar
1 Gross salary 598,502 1,220,026 1,818,528
(a) Salary as per provisions contained in section 17(1) of the
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commission
- as % of profit
others, specify…
5 Others, please specify
Total 598,502 1,220,026 1,818,528
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: Nil
34
Type Section of the Details of Authority Appeal made,

Companies Act Brief Penalty /
[RD / NCLT/ if any (give
Punishment/
Description COURT] Details)
Compounding
fees imposed
A. COMPANY
Penalty
Punishment NONE

Compounding
B. DIRECTORS
Penalty
Punishment NONE
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment NONE
Compounding
For and on behalf of Samasta Microfinance Limited

Venkatesh Narayanaswamy Shivaprakash Deviah
Managing Director Whole Time Director

DIN: 01018821 DIN: 02216802
Date: April 26, 2018

Place: Bangalore
35
Annexure - B
FORM NO. AOC2

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in
sub-section (1) of section 188 of the Companies Act, 2013 including certain armslength transactions under third proviso thereto
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8 (2) of the Companies (Accounts) Rules, 2014)
1. Details of contracts or arrangements or transactions not at arm’s length basis: NIL
a) Name of the related party and nature of relationship:
b) Nature of contracts/ arrangements / transactions:
c) Duration of the contracts/ arrangements/ transactions:
d) Salient terms of the contracts or arrangements or transactions including the value, if any:
e) Justification for entering into such contracts/ arrangements/ transactions:
f ) Date of approval by the Board:
g) Amount paid as advance, if any:
h) Date on which the special resolution was passed in general meeting as required under the first proviso to section 188:
2. Details of material contracts or arrangement or transactions at arm’s length basis:
Name Nature of Relationship Nature of Transactions Duration Date of approval Amount (in `)
India Infoline Holding Company Service Fee on Business 1 Year 21.04.2017 65,254,963
Finance Limited Correspondence
India Infoline Holding Company Interest 1 year 21.04.2017 62,257,683
Finance Limited
India Infoline Fellow Subsidiary Arranger Fee 1 year 21.04.2017 1,197,796
Housing Company
Finance Limited
IIFL Management Fellow subsidiary Rent 1 Year 21.04.2017 9,000
Services Company
Limited
Registered Office: By Order of the Board of Directors

Samasta Microfinance Limited, N Venkatesh D Shivaprakash
418, 1/2A, 4th Cross, 6th Main, Managing Director Wholetime Director
Wilson Garden,
Bangalore – 560027
Place: Bangalore
36
Annual Report 2017-18 Management Discussion and Analysis Report Statutory Reports
Management Discussion and Analysis Report
NBFCs have played a major role in complementing banks and Risk Management
other financial institutions, and help fill the gaps in availability of
Samasta Microfinance Limited has an established risk
financial services with respect to products as well as customer and
management and audit framework to identify, assess, monitor
geographical segments. Strong linkages at the grass root level
and manage credit, market, liquidity and operational risks.
makes them a critical cog in catering to the unbanked masses
This framework is driven actively by the Board through its
in rural and semi-urban reaches, enabling the Government
Audit committee and supported by an experienced senior
and Regulators to further the mission of financial inclusion.
management team.
The sheer size of the market in terms of financially excluded

households presents large opportunities for a business model We have a strong credit function, which is independent of our
that offers sustainable credit to the unbanked and under-banked business and a key controller of the overall portfolio quality.
at affordable rates and a repayment cycle spread over a longer
Audit and Internal Controls
duration. The dynamics of the NBFC sector is reflective of its
evolving role in niche areas of specialised services. Samasta Microfinance Limited has a well-established Internal
Audit and Control Systems in place that monitors the company’s
The MFI industry has almost gone past the effects of the
adherence to policies, procedures and systems. The Board Audit
demonetisation now and is optimistic to recover from the setback.
Committee reviews the adequacy and effectiveness of the
Samasta Microfinance Limited and its operations: internal audit function, including the structure of the internal
audit department, annual audit plan, staffing etc., and ensures
The Financial Year 2017-18 displayed a great impetus to the
effective and independent review process. The Internal Audit
growth of the Company with India Infoline Finance Limited (IIFL)

Department is responsible for monitoring and evaluating the
as its Holding Company. IIFL had acquired a substantial equity
internal controls of the organisation as well as its adherence to
stake in the Company and made a further equity infusion of ` 50
various statutory and regulatory compliances. These audits cover
crore during November 2017.
Branches, Regional offices and Head Office at regular intervals.
Business Growth: Our overall gross loan book including growth
Functional Audits
in managed assets grew by 251.61% and the GL book saw an
increase of 341.36%. Internal audits at Regional Offices and Head Office is carried out
on a quarterly basis by a board-appointed independent audit
Customer Segment: Our main target customers are the
firm, covering all key functions including HR, Operations, Credit,
economically backward women of the weaker sections of the
Administration, Finance and Accounts, Loan Processing, MIS, etc.,
society with a view to generate employment and empower them.

The firm also audits the Company’s adherence to all Statutory
Branch Expansion: Having a foresight to grow the loan book as and Regulatory Guidelines that have been prescribed for NBFC-
well as to cater to the people in various other states, 103 branches MFIs. The scope of various audits are reviewed and continuously
were added to our network. Currently, the Company has branches modified to keep pace with a dynamic business environment.
across 10 states including Karnataka, Tamil Nadu, Kerala, Goa, A strong compliance monitoring mechanism ensures that all
Maharashtra, Odisha, Bihar, Rajasthan, Gujarat and Chhattisgarh. critical issues are tracked until closure within specified timelines.
The branch count as on March 31, 2018 was 173 as compared to All significant audit observations of Internal Audits and follow-
70 as on March 31, 2017 up actions are reported and discussed by the Board Audit
Committee, which meets every quarter. Monthly audit updates
Credit Quality: The PAR was at 1.01% in March 2018 as against
are also circulated to the board, summarizing audit trends and
3.76% in March 2017 on AUM.
critical issues.
The PAR was at 0.31% in March 2018 as against 3.86% in March
2017 on Loan Book. Operational Performance:
The major cause for the PAR was due to the effects of Particulars No.of Amount of loan
demonetisation . customers disbursed (in `)
Funding: The Company raised ` 20 crore through issuance of Own Book 309,187 7,596,177,590
Non-Convertible Debentures and ` 315 crore through Term loans Business 66,497 1,812,633,194
from banks as on March 2018 as against `132 crore in March 2017. Correspondent
Total 375,684 9,408,810,784
Further, we had an equity infusion of ` 50 crore from IIFL during
November 2017.
37
Management Discussion and Analysis Report (contd.)
Financial Performance: • Introduction of RBL work flow (funds transfer through

the system) has given complete control of NEFT returns
Particulars (`) FY 17-18 FY 16-17 and wrong account credits which are potential risks to
Net Interest Income 959,805,592 320,382,354 microfinance business considering the huge number of
Other Income 8,025,679 8,064,934 disbursements done on a daily basis.
Total Income 967,831,271 328,447,288
• Sending IVR messages to the members with loan related
Operating Expenses 728,912,099 311,695,737
details in various regional languages has been initiated
Operating Profit 238,919,172 16,651,551
with the help of ‘Awaaz De’. This will intimate customers at
Provisions 195,123,626 10,517,255
all stages in loan processing – sanction , disbursement and
Profit before Tax 43,795,546 6,234,295
funds transfer.
Taxes 17,965,833 (18,55,593)
Profit After Tax 25,829,713 8,089,888 • Signing with up Stock Holding Corporation of India for
loan document digitisation will help us reduce the burden
Information Technology of maintaining physical documents and can be great help
during internal and external audit checks.
Samasta believes in constant review and improvements to ensure
all functions are at its highest efficiency level. Each development • Zing HR giving us both app and web versions have both
is thought through, discussed with business and operation teams in automation of all HR processes. It has cut out most of
to achieve the lowest TAT possible, minimise human mistakes, the manual processes and streamlined all the routine HR
decrease cost, decentralisation, automation, and so forth. We activities.
have embraced technology with open arms and are streamlining
• Fresh Services which is already signed up for will be
many of our operations by adopting technology such as:
implemented and rolled out soon and will surely help
• For Sourcing: Group Loan Origination Workflow (GLOW), resolve all IT related issues faced by business, process and
an app used for tab based enrolment of customers wherein reconciliation teams.
the details of the customers are recorded in tablets provided
• Spot ways has helped us automate the Travel Allowance and
to the field officers which would reduce the time required
ensuring that adhoc TA calculations without valid data for
for enrolment in case of manual entry of details of the
field team has been eliminated.
customers and in turn increases the number of customers
for the Company; • C-KYC & E-Sign are process improvements in pipeline. Death
Settlement Module, Center weighted average, enabling
• For Collection: Trucell, an app which is used for recording
offline mode of all applications used are a few more in
the collection entries by the field officers / branch managers;
pipeline IT enhancements. Decentralisation of most of the
• Standardisation of some critical processes to validate operations such as booking to branches, COB and EOD
and accept only permissible range of values, alerts for automations will take Samasta to the next level and ensure
cross verification, customised reports to serve repetitive an error free reconciliation process.
work requirements of various team, data flows within the
system instead of external tracking of work flows etc have Human Resources
been deployed to help improve communication, reduce The year 2017-18 has been a year of growth and expansion for
redundancy and potential human errors. Samasta and so the role of the human resource function has been
• Several in-module automations and clean ups have been a key for enabling this growth both in terms of talent acquisition
introduced to ensure that data flows into screens ahead and talent management.
from the previous screens based on certain restrictions and • Competent Regional HR & training Teams in new
validations to avoid repeated data entry giving clear TAT states: To provide on-ground support and partner with
benefit. the business and address employee queries timely, conduct
• Automation of Sanction as a process has led to huge trainings as and when need arises, Regional HR and process
reduction of TAT and manpower dependence. Analytics training teams have been hired in all new states with
through Cynepia has brought in a new outlook to data and multiple HR/ Training reps for states with more number of
the way the same is read or projected to IIFL management. branches such as Odisha, Bihar etc.
• Several outsourced processed have been brought inhouse • Recruitment and Growth: Samasta has seen significant
post automation leading to time and cost benefits. growth in the last year in terms of people and number of
branches. From an employee strength of 690 as of March
38
Management Discussion and Analysis Report (contd.)
2017, the Company grew to an employee strength of 1900+ the positions of Divisional Manager Trainee / Area Manager
employees as of March 2018. Between April 2017 – Mar 2018, Trainee, Branch Manager Trainee etc. The training /induction
more than 100 new branches were opened including in new for each of these positions is set at different levels as per the
states such as Bihar, West Bengal, Chhattisgarh, Rajasthan, job role they have been hired for. In addition to this, refresher
Gujarat, etc. Samasta has set its footprint as a large and the trainings, process trainings, usage of BR.net, Glow, training on
fastest growing MFI in India currently. mandatory laws such as sexual harassment training etc. have
been delivered on a regular basis and will continue.
• Campus Recruitment: Samasta entered the campus
recruitment scenario for the first time to hire management • Automation: HR automation with the Humanet software

graduates from some of the top universities that offer did not meet with much success due to limitations of the
rural management / NBFC related courses. Some of the product/ issues during implementation. Hence, a new HR
universities visited are IRMA Anand, IIFM Bhopal, XIMB software, Zing HR, was identified and implementation is in
Bhubaneshwar, SDM Mysore, SIIB Pune etc. progress.
• Policies & Processes: All HR policies and processes have • Performance Management: Performance appraisals and
been reviewed, with the aim of providing better employee midyear appraisals (for those who were not part of the
benefits. A comprehensive employee hand book was annual appraisals) were conducted in May 2017 and Nov
published which includes all the important information 2017 respectively. A total of 12.5% and 9% wer given as
that employees need to be aware of. The translation of the increments to the employees for 2017-18 appraisal cycles.
employee handbook into different vernacular languages in
• Rewards and Recognition: Regular rewards are presented
currently in progress.

to those who are deserving employees through the R&R
• Compensation & Benefits: The compensation and program to motivate employees to do better. This program
benefits are reviewed on regular intervals to ensure Samasta will be reviewed and improved further as the Company
offers competitive salaries and benefits to its employees. grows.
The compensation levels have been increased in several
• Employee Engagement: Several employee engagement
locations to be on par with the market standards and ensure
activities were planned for Samasta employees such as
we are able to hire quality people. Benefits were improved
Samasta Premier League, Christmas / New year celebrations,
to include an annual performance bonus with salary,
Company get together etc. which were appreciated by
introduction of term life insurance, etc.
employees. More activities are planned for the coming year.

• Attrition management: Significant efforts are being made
While much progress has been made over the past year, a lot
to contain employee attrition. This includes hiring qualified
is yet to be accomplished in the coming years. The HR team
people with better salaries, hiring college graduates and
with its dedicated professionals is committed to achieving
management graduates and provide better training to make
success and taking the HR function to the next level.
them job ready etc. Efforts are on to reduce stress levels,
improve work conditions, better training and coaching for Outlook and challenges
Supervisors on team management etc.
Now that the effects of demonetisation has subsided, the industry
• Technology and continuous process improvements: growth potential is expected to come to its normal. There are a
Investments have been made significantly in technology few geographies which are less penetrated and can be utilised for
and IT infrastructure which help in better processes thus business expansion. However, few of the local / ring leaders in the
enabling a better experience for the customers and the communities cause a threat by influencing the customers not to
employees. This reduces turnaround times and reduces repay the loans or by spreading rumors of waiver of loans.
stress in employees thus helping in reduced attrition levels.
Conclusion
• Training & Development: The training team is on a mission
to equip our employees with all the necessary trainings such With the expansion of the branch network already taken place
as processes & functional related, people management, and equity infused by IIFL, the credit rating of the Company has
behavioral trainings, leadership skills, etc. The earlier 10-day improved and banks are willing to lend loans at lower interest
boot camp for all newly hired field staff has been increased rates. The platform has been laid for entering into other states for
to 1 month to equip them better when the go on field. disbursal of more micro loans and reaching the needy customers
with a mix of class room and field training has been put in across the country and we are confident of reaching new heights
place for all the newly hired Customer Relationship Officers. while satisfying our customers.
Management graduates hired from various institutes for
39
Annexure - IV
FORM NO. AOC1

Statement containing salient features of the financial statement of subsidiaries
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of
the Companies (Accounts) Rules, 2014)
(`)
Name of Subsidiary Company Ayusha Dairy Private Limited
Issued and Subscribed Capital 10,000,000/-
Reserves 434,692
Total Assets 10,622,672
Total Liabilities 10,622,672
Investments 0
Turnover 0
Profit / (Loss) Before Tax (2,163,782)
Provision for tax 0
Profit / (Loss) After Tax (2,066,865)
Proposed Dividend 0
% of Share holding 100%
Note: The Company does not have any Associate Companies and Joint Ventures.
Registered Office: By Order of the Board of Directors

Samasta Microfinance Limited, N Venkatesh D Shivaprakash
418, 1/2A, 4th Cross, 6th Main, Managing Director Wholetime Director
Wilson Garden,
Bangalore – 560027
Place: Bangalore
40
SECRETARIAL AUDIT REPORT
Form No.MR-3
SECRETARIAL AUDIT REPORT
Forthe financial year ended March 31, 2018
[Pursuant to section 204(1)of the Companies Act,2013andruleNo.9oftheCompanies(Appointment and Remuneration of Managerial
Personnel) Rules, 2014]
To, • T he Securities and Exchange Board of India (Listing
Obligation and Disclosures Requirements) Regulation, 2015;
The Members,
5.
Directions, Guidelines and Notifications issued by the

Reserve Bank of India from time to time with respect to the
418, 1/2A, 4th Cross, 6th Main, Wilson Garden ‘Non-Banking Financial Company-Micro Finance Institutions’
Bangalore -560027 (NBFC-MFIs)
I have conducted the secretarial audit of the compliance of I have also examined compliance with the applicable clauses of
applicable statutory provisions and the adherence to good the following:
corporate practices by Samasta Microfinance Limited (herein a) Secretarial Standards issued by The Institute of Company
after called the ‘Company’). Secretarial Audit was conducted in a Secretaries of India; and
manner that provided me a reasonable basis for evaluating the
b) The Listing Agreements entered in to by the Company with
corporate conducts/statutory compliances and expressing my
Bombay Stock Exchange(s), I further report that during
opinion there on.

the period under review the Company has complied with
Based on my verification of the Company’s books, papers, minute the provisions of the Act, Rules,Regulations,Guidelines,
books, forms and returns filed and other records maintained Standards, etc. mentioned above subject to the following
by the Company and also the information provided and observations:
representation made by the Company, its officers, agents and
1.
The Board of Directors of the Company is duly
authorised representatives during the conduct of secretarial audit,
constituted with proper balance of Executive
I hereby report that in my opinion, the Company has, during the
Directors,Non-Executive Directors and Independent
audit period covering the financial year ended on March 31, 2018
Directors. The changes in the composition of the
complied with the statutory provisions listed hereunder and also
Board of Directors that took place during the period
that the Company has proper Board-processes and compliance-
under review were carried out in compliance with

mechanism in place to the extent, in the manner and subject to
the provisions of the Act. Further, the Company has
the reporting made here in after:
appointed a Woman Director at the Board Meeting of
I have examined the books, papers, minute books, forms and the Company dated April 26, 2018.
returns filed and other records maintained by the Company for
Other statutes, Acts, laws, Rules, Regulations, Guidelines and
the financial year ended on March 31, 2018 according to the
Standards etc., as applicable to the Company are given below:
provisions of:
Labour Laws and other incidental laws related to labour and
1. The Companies Act, 2013(the Act) and the rules made there
employees appointed by the Company either on its payroll or
under;
on contractual basis as related to wages, gratuity, provident fund,
2. The Securities Contracts(Regulation) Act, 1956 (‘SCRA’) and ESIC, compensation etc.;
the rules made thereunder;
(i) Acts as prescribed under Direct Tax and Indirect Tax;
3. The Depositories Act, 1996 and the Regulations and Bye-
(ii) Acts prescribed under prevention and control of pollution;
laws framed there under;
(iii) Acts prescribed under environmental protection;
4. The following Regulations and Guidelines prescribed under
the Securities and Exchange Board of India Act, 1992 (iv) Land Revenue laws of respective States;
• T he Securities and Exchange Board of India (Prohibition of (v) Labour Welfare Act of respective States; and
Insider Trading) Regulations,1992;
(vi) Local laws as applicable to various offices of the Company.
• The Securities and Exchange Board of India (Issue and
Further, Adequate notice is given to all directors to schedule the
Listing of Debt Securities) Regulations,2008;
Board Meetings, agenda and detailed notes on agenda were sent
at least seven days in advance, and a system exists for seeking and
41
SECRETARIAL AUDIT REPORT (contd.)
obtaining further information and clarifications on the agenda shares of ` 10 each aggregating to ` 18,550,000 vide Extra-
items before the meeting and for meaningful participation at the Ordinary General Meeting held on November 4, 2017.
meeting.
4. The Paid-up Capital of the Company was increased from
During the period under review, decisions were carried through

` 613,446,110/-to ` 1,113,446,110/- on November 8, 2017
unanimously and no dissenting views were observed, while
pursuant allotment of 50,000,000 Equity Shares of ` 10/-
reviewing the minutes.
each to M/s India Infoline Finance Limited on Rights Issue
I further report that there are adequate systems and processes basis.
in the Company commensurate with the size and operations of
5. The Company has approved the scheme of Amalgamation
the Company to monitor and ensure compliance with applicable
of Ayusha Dairy Private Limited, the Wholly Owned
laws, rules, regulations and guidelines.
Subsidiary Company with the Company vide Extra-Ordinary
I further report that during the audit period the Company has General Meeting held on March 28, 2018. However, the
undertaken following events/actions having a major bearing on Company is Awaiting the approval of the Regional Director,
the Company’s affairs in pursuance of the above referred laws, Southern Region for the said merger
rules, regulations, guidelines, standards, etc. referred to above:
LakshmeenarayanBhat
1. Private Placement of Non-Convertible Debentures during Practicing Company Secretary
ACS No: 35993
the year CP No. 15003
S l . Issue Size Date: April 26, 2018
Date of Allotment Nature of Security
No. Place: Bengaluru
1. 200 28/09/2017 Rated Secured
This report is to be read with our letter of even date which is
Unlisted Redeemable
Non-Convertible annexed as Annexure A and forms an integral part of this report.
Debentures
2. Rights issue made during the year:
S l . Issue Size
Date of Allotment Nature of Security
No.
1. 50,000,000 08/11/2017 Equity Shares
3. The Authorised Capital of the Company was increased from

` 650,000,000 divided into 6,30,00,000 Equity shares of ` 10
each aggregating to ` 630,000,000 and 145,000 Redeemable
Non-Convertible Cumulative Preference shares of ` 10 each
aggregating to ` 1,450,000 and 1,855,000 Preference shares
of ` 10 each aggregating to ` 18,550,000 to ` 1,150,000,000
consisting of 113,000,000 Equity Shares of `10 each
aggregating to ` 1,130,000,000 and 145,000 Redeemable
Non-Convertible Cumulative Preference shares of ` 10
each aggregating to ` 1,450,000 and 1,855,000 Preference
42
Annexure A’
To, 5.
The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards is the
The Members,
responsibility of management. Our examination was limited
Samasta Microfinance Limited to the verification of procedures on test basis.
418, 1/2A, 4th Cross, 6th Main, Wilson Garden 6. The Secretarial Audit report is neither an assurance as to
the future viability of the Company nor of the efficacy or
Bangalore -560027
effectiveness with which the management has conducted
Our report of even date is to be read along with this letter. the affairs of the Company.

1. Maintenance of secretarial record is the responsibility of 7. We have prepared the Secretarial Audit Report on the draft
the management of the Company. Our responsibility is to Financials, therefore we are not able to comment on the
express an opinion on these secretarial records based on Related Party Transactions, Loans and advances which we
our audit. have to rely on the Audited Financials.
2. We have followed the audit practices and processes as LakshmeenarayanBhat

were appropriate to obtain reasonable assurance about the Practicing Company Secretary
ACS No: 35993
correctness of the contents of the Secretarial records. The CP No. 15003
verification was done on test basis to ensure that correct
facts are reflected in secretarial records. We believe that the Date: April 26, 2018
Place: Bengaluru
processes and practices, we followed provide a reasonable

basis for our opinion.
3. We have not verified the correctness and appropriateness of

financial records and Books of Accounts of the Company.
4. Where ever required, we have obtained the Management

representation about the compliance of laws, rules and
regulations and happening of events etc.
43
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF SAMASTA MICROFINANCE LIMITED the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial
Report on the Standalone Financial Statements
control relevant to the Company’s preparation of the financial
We have audited the accompanying standalone financial statements that give true and fair view in order to design audit
statements of SAMASTA MICROFINANCE LIMITED (“the procedures that are appropriate in the circumstances. An audit
Company”), which comprise the Balance Sheet as at March also includes evaluating the appropriateness of accounting
31, 2018, and the Statement of Profit and Loss and Cash Flow policies used and the reasonableness of the accounting estimates
Statement for the year then ended, and a summary of significant made by Company’s Directors, as well as evaluating the overall
accounting policies and other explanatory information. presentation of the standalone financial statements.
Management’s Responsibility for the Standalone Financial We believe that the audit evidence we have obtained is sufficient
Statements and appropriate to provide a basis for our audit opinion on the
The Company’s Board of Directors is responsible for the matters in standalone financial statements.
section 134(5) of the Companies Act, 2013 (“the Act”) with respect Opinion
to the preparation of these standalone financial statements
In our opinion and to the best of our information and according to
that give a true and fair view of the financial position, financial
the explanations given to us, the standalone financial statements
performance and cash flows of the Company in accordance with
give the information required by the Act in the manner so required
the accounting principles generally accepted in India, including
and give a true and fair view in conformity with the accounting
the Accounting Standards specified under Section 133 of the Act,
principles generally accepted in India:
read with Rule 7 of the Companies (Accounts) Rules, 2014.
a) In the case of the Balance Sheet, of the state of affairs of the
This responsibility also includes the maintenance of adequate
Company as at March 31, 2018;
accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing b) In the case of the Statement of Profit and Loss Account, of
and detecting the frauds and other irregularities; selection the profit for the year ended on that date; and
and application of appropriate accounting policies; making
c) In the case of the Cash Flow Statement, of the cash flows for
judgments and estimates that are reasonable and prudent; and
the year ended on that date.
design, implementation and maintenance of adequate internal
financial control, that were operating effectively for ensuring the Report on Other Legal and Regulatory Requirements
accuracy and completeness of the accounting records, relevant 1. As required by the Companies (Auditor’s Report) Order, 2016
to the preparation and presentation of the standalone financial (“the Order”) issued by the Central Government of India in
statements that give a true and fair view and are free from material terms of sub-section (11) of section 143 of the Act, we give
misstatement, whether due to fraud or error. in the ‘Annexure-A’ statement on the matters specified in
Auditors’ Responsibility paragraphs 3 and 4 of the Order to the extent applicable.
Our responsibility is to express an opinion on these standalone 2. As required by section 143(3) of the Act, we report that:
financial statements based on our audit. a) We have sought and obtained all the information and
We have taken into account the provisions of the Act, the explanations which to the best of our knowledge and
accounting and auditing standards and matters which are belief were necessary for the purposes of our audit.
required to be included in the audit report under the provisions b) In our opinion proper books of account as required by
of the Act and the Rules made there under. law have been kept by the Company so far as appears
We conducted our audit in accordance with the Standards from our examination of those books.
on Auditing specified under section 143(10) of the Act. Those c) The Balance Sheet, the Statement of Profit and Loss
Standards require that we comply with ethical requirements and the Cash Flow Statement dealt with by this Report
and plan and perform the audit to obtain reasonable assurance are in agreement with the books of account.
about whether the standalone financial statements are free from
material misstatement. d)
In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
An audit involves performing procedures to obtain audit evidence specified under Section 133 of the Act, read with Rule
about the amounts and disclosures in the financial statements. 7 of the Companies (Accounts) Rules, 2014 and and
The procedures selected depend on the auditor’s judgment, the Companies (Accounting Standards) Amendment
including the assessment of the risks of material misstatement of Rules, 2016.
44
Annual Report 2017-18 Standalone Financial Statements
e)
On the basis of written representations received i.
The Company does not have any pending
from the directors as on 31st March, 2018, taken on litigations which would impact its financial
record by the Board of Directors, none of the directors position.
is disqualified as on March 31, 2018, from being
ii.
The Company did not have any long-term
appointed as a director in terms of Section 164(2) of
contracts including derivatives contracts for
the Act.
which there were any material foreseeable
f ) With respect to the adequacy of the internal financial losses; and
controls over financial reporting of the company and

iii.
There were no amounts which required to
the operating effectiveness of such controls, refer to
be transferred to the Investor Education and
our separate report in ‘Annexure-B’
Protection Fund by the Company.
g) With respect to the other matters to be included in
For Gowthama & Company
the Auditor’s Report in accordance with Rule 11 of Chartered Accountants
the Companies (Audit and Auditors) Rules, 2014, in Firm No: 005917S
our opinion and to the best of our information and
H V Gowthama
according to the explanations given to us: Date: April 26, 2018 Partner
Place: Bangalore Mem. No: 014353

45
The Annexure-A
referred to in our Report of even date to the members of Samasta Microfinance Limited, on the standalone
financial statements of the company for the year ended March 31, 2018.
On the basis of such checks as we considered appropriate and to us, there is no amounts payable in respect of
according to the information and explanation given to us during Income Tax, Sales tax, Service tax, duties of customs,
the course of our audit, we report that: duties of excise, Value Added Tax or Cess and which
have not been deposited on account of any disputes.
1 (a) The Company has maintained proper records showing
full particulars including quantitative details and 8. According to the information and explanations given to
situation of its fixed assets. us and on the basis of our examination of the books of
account, we are of the opinion that, the Company has not
(b)
According to the information and explanation
defaulted in repayment of dues to a financial institution,
explained to us, fixed assets have been physically
bank or debenture holders.
verified by the management during the year which, in
our opinion, is reasonable having regard to the size of 9. According to the information and explanations give to us
the company and the nature of its Assets. No material and in our opinion, the money raised by way of term loans
discrepancies were noticed on such verification. and Private placed Debt instruments i.e. non Convertible
Debenture were applied for the purpose for which those
(c)
The Company does not hold any immovable
were raised though idle/surplus funds which were not
properties, therefore this clause is not applicable to
required for immediate utilisation were gainfully invested in
the Company.
liquid assets payable on demand.
2 According to the information and explanation explained
10. According to the information and explanations given to us
to us, the Company is a Non-Banking Financial Company
and based upon the audit procedures performed, fraud on
(‘NBFC’) engaged in the business of providing loans. As such,
the company by its employee of ` 715,936 /- the same has
the Company does not carry any inventory. Therefore, the
been noticed or reported during the year.
provisions of this clause are not applicable to the Company.
11. Managerial remuneration has been paid or provided in
3. According to the information and explanations given to us
accordance with the requisite approvals mandated by
and on the basis of our examination of the books of account,
the provisions of section 197 read with schedule V to the
the Company has not granted loans, secured or unsecured,
companies act.
to companies, as required to be specified in the register
maintained under Section 189 of the Act. Hence disclosure 12. According to the information and explanations given to us
under this clause is not applicable. and in our opinion, the Company is not a Nidhi Company
and therefore clause is not applicable.
4.
In our opinion and according to the information and
explanations given to us, the Company has complied with 13. According to the information and explanation given to us, all
the provisions of Sections 185 and 186 of the Companies the transactions with the related parties are in compliance
Act, 2013 in respect of, making investments. with section 188 and 177 and where applicable the details
have been disclosed in the financial statements as required
5. The Company has not accepted any deposits within the
by the accounting standard and Companies Act 2013.
meaning of Sections 73 to 76 of the Act and the Companies
(Acceptance of Deposits) Rules, 2014 (as amended). 14. According to the Information and Explanation given to us,
Accordingly, disclosure under this clause is not applicable. the company has made preferential allotment of shares
during the year, and the requirement of section 62 and
6. According to the information and explanations given to us,
other applicable provisions of Companies act 2013 have
the Central Government has not prescribed maintenance
been complied with and the amount raised has been used
of cost records under Section 148(1) of the companies act
for the purpose for which the funds were raised.
for any services rendered by the Company. Therefore this
clause is not applicable to the Company. 15. According to the Information and Explanation provided
to us, the company has not entered into any Non-cash
7. (a) According to the records of the company, undisputed
transactions with Directors or persons connected with him
statutory dues including Provident Fund, Employees’
and therefore this clause is not applicable to the company.
State Insurance, Income-tax, Sales Tax, Duty of
customs, Duty of Excise, Value Added Tax and any 16. According to the Information and Explanation given to us,
other statutory dues with the appropriate authorities the company has obtained the registration under section
have generally been regularly deposited with the 45-IA of the Reserve Bank of India Act, 1934.
appropriate authorities. According to the information
and explanations given to us there were no Chartered Accountants
outstanding statutory dues as on 31st of March, 2018 Firm No: 005917S
for a period of more than six months from the date
they became payable. H V Gowthama
Date: April 26, 2018 Partner
(b) According to the information and explanations given Place: Bangalore Mem. No: 014353
46
‘ANNEXURE-B’
TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF SAMASTA
MICROFINANCE LIMITED
Report on the Internal Financial Controls Company’s internal financial controls system over financial
under Clause (i) of Sub-section 3 of Section 143 of reporting.
the Companies Act, 2013 (“the Act”)
Meaning of Internal Financial Controls Over
We have audited the internal financial controls over financial Financial Reporting
reporting of Samasta Microfinance Limited (“the Company”) as
of March 31, 2018 in conjunction with our audit of the financial A company’s internal financial control over financial reporting is a
statements of the Company for the year ended on that date. process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
Management’s Responsibility for Internal

statements for external purposes in accordance with generally
Financial Controls accepted accounting principles. A company’s internal financial
control over financial reporting includes those policies and
The Company’s management is responsible for establishing
procedures that
and maintaining internal financial controls based on essential
components such as the control environment, the entity’s (1) Pertain to the maintenance of records that, in reasonable
risk assessment process, control activities, Information system detail, accurately and fairly reflect the transactions and
and communication and the monitoring of such controls. dispositions of the assets of the Company;
These responsibilities include the design, implementation and
(2) Provide reasonable assurance that transactions are recorded
maintenance of adequate internal financial controls that were
as necessary to permit preparation of financial statements in
operating effectively for ensuring the orderly and efficient
accordance with generally accepted accounting principles,
conduct of its business, including adherence to company’s
and that receipts and expenditures of the company are
policies, the safeguarding of its assets, the prevention and

being made only in accordance with authorisations of
detection of frauds and errors, the accuracy and completeness
management and directors of the Company; and
of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act, 2013. (3) Provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of
Auditors’ Responsibility the company’s assets that could have a material effect on
Our responsibility is to express an opinion on the Company’s the financial statements.
internal financial controls over financial reporting based on our
Inherent Limitations of Internal Financial
audit. We conducted our audit in accordance with the Guidance
Controls Over Financial Reporting
Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) and the Standards on Auditing, Because of the inherent limitations of internal financial controls

issued by ICAI and deemed to be prescribed under section over financial reporting, including the possibility of collusion
143(10) of the Companies Act, 2013, to the extent applicable to or improper management override of controls, material
an audit of internal financial controls, both applicable to an audit misstatements due to error or fraud may occur and not be
of Internal Financial Controls and, both issued by the Institute detected. Also, projections of any evaluation of the internal
of Chartered Accountants of India. Those Standards and the financial controls over financial reporting to future periods are
Guidance Note require that we comply with ethical requirements subject to the risk that the internal financial control over financial
and plan and perform the audit to obtain reasonable assurance reporting may become inadequate because of changes in
about whether adequate internal financial controls over financial conditions, or that the degree of compliance with the policies or
reporting was established and maintained and if such controls procedures may deteriorate.
operated effectively in all material respects.
Opinion
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls In our opinion, the Company has, in all material respects, an
system over financial reporting and their operating effectiveness. adequate internal financial controls system over financial
Our audit of internal financial controls over financial reporting reporting and such internal financial controls over financial
included obtaining an understanding of internal financial reporting were operating effectively as at March 31, 2018, based
controls over financial reporting, assessing the risk that a material on essential components such as the control environment, the
weakness exists, and testing and evaluating the design and entity’s risk assessment process, control activities, Information
operating effectiveness of internal control based on the assessed system and communication and the monitoring of such controls.
risk. The procedures selected depend on the auditor’s judgement, For Gowthama & Company
including the assessment of the risks of material misstatement of Chartered Accountants
the financial statements, whether due to fraud or error. Firm No: 005917S
We believe that the audit evidence we have obtained is sufficient H V Gowthama

and appropriate to provide a basis for our audit opinion on the Date: April 26, 2018 Partner
47
Standalone Balance Sheet

as at March 31, 2018
(`)
Note As at March 31, As at March 31,
Particulars
No. 2018 2017
I EQUITY AND LIABILITIES
(1) Shareholders’ funds
(a) Share Capital 2 1,113,446,110 613,446,110
(b) Reserve and Surplus 3 55,916,061 30,086,348
1,169,362,171 643,532,458
(2) Share application money pending allotment - -
(3) Non-Current Liabilities
(a) Long-term borrowings 4 1,956,414,608 682,670,317
(b) Other Long-term liabilities - -
(c) Long-term provisions 5 1,009,84,630 23,557,225
2,057,399,239 706,227,542
(4) Current Liabilities
(a) Short-term borrowings 6 1,376,602,650 -
(b) Trade payables 7 30,628,874 81,485,650
(c) Other current liabilities 8
-Current maturities of long term borrowings 2,129,377,029 783,637,803
-Others 603,167,056 38,563,552
(d) Short-term provisions 9 38,781,207 1,450,000
4,178,556,816 905,137,005
TOTAL 7,405,318,227 2,254,897,006
II ASSETS
(1) Non-current assets
(a) Fixed assets 10
(i) Tangible assets 44,504,269 21,315,419
(ii) Intangible assets 925,026 725,220
(iii) Capital work-in-progress - -
(iv) Intangible assets under development - -
45,429,296 22,040,639
(b) Non-current investments 11 10,500,000 10,500,000
(c) Deferred tax assets (Net) 12 24,663,572 4,787,015
(d) Long-term loans & advances 13
-Loans 2,113,382,091 369,165,027
-Others - -
(e) Other non-current assets 14 335,821,406 158,665,888
2,484,367,069 543,117,930
(2) Current assets
(a) Current investments - -
(b) Inventories - -
(c) Trade receivables 15 37,916,290 9,852,927
(d) Cash and Bank balances 16 459,586,218 561,482,281
(e) Short-term loans & advances 17
-Loans 4,226,703,989 1,067,314,077
-Others 60,311,529 4,198,856
(f ) Other current assets 18 91,003,836 46,890,296
4,875,521,862 1,689,738,436
Total 7,405,318,227 2,254,897,006
Significant Accounting Policies and Notes to Accounts 1
As per our attached report of even date For and on behalf of the Board of Directors
For Gowthama & Company of Samasta Microfinance Limited
Chartered Accountants
Firm No. 005917S
H.V. Gowthama N. Venkatesh D. Shivaprakash
Partner Managing Director Whole-time Director
M. No. 014353 DIN : 01018821 DIN : 02216802
Place: Bangalore T. Anantha Kumar K. J. Sutheja

Date: April 26, 2018 Chief Financial Officer Company Secretary
48
Standalone Statement of Profit and Loss

for the year ended March 31, 2018
(`)
Note Year ended Year ended
Particulars
No March 31, 2018 March 31, 2017
Revenue
(A) Revenue from Operations 19 959,805,592 320,382,354
(B) Other Income 20 8,025,679 8,064,934
(C) Total Revenue (A+B) 967,831,271 328,447,288
(D) Expenses

a) Employee benefits expenses 21 280,081,104 112,174,370
b) Finance costs 22 313,024,282 146,308,160
c) Depreciation and amrotisation expenses 10 13,081,181 4,580,939
d) Administrative and Other expenses 23 122,725,532 48,632,269
e) Provisions / write off receivables under 24 195,123,626 10,517,255
financial activity
Total Expenses (D) 924,035,725 322,212,992
(E) Profit for the year before tax (C-D) 43,795,546 6,234,295
(F) Tax expenses
(a) Current tax 36,500,000 1,450,000
(b) Deferred tax 12 (19,876,557) (1,963,203)
(c) MAT credit availed and utilised 1,342,390 (1,342,390)

Total tax expense (F) 17,965,833 (1,855,593)
(G) Profit for the year after tax (E-F) 25,829,713 8,089,888
(H) Profit for the period from continuing 25,829,713 8,089,888
operations
(I) Loss for the period from discontinuing - -
operations
(J) Tax expense of discontinuing operations - -
(K) Profit from discontinuing operations - -
(after tax) (I-J)
(L) Profit for the period ( H+K) - -
(M) Earnings per Equity Share (Face value of

`10/- each):
(a) Basic 0.32 0.59
(b) Diluted 0.32 0.59
Significant accounting policies and notes to the accounts 1
Firm No. 005917S
M. No. 014353 DIN : 01018821 DIN : 02216802

49
Standalone Cash Flow Statement

(`)
Particulars
March 31, 2018 March 31, 2017
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax 43,795,546 6,234,295
Adjustments for:
Depreciation 13,081,181 4,580,939
Dividend on Mutual funds - (6,947,850)
Short Term Capital Gain (4,851,909) -
Provisions for Standard and Non Performing Assets 49,045,000 7,558,375
Bad Debts Written Off 120,678,626 2,958,880
Interest on Fixed Deposits (18,603,421) (13,081,047)
Interest on Income Tax 1,509,368 -
Loss on sale of Fixed assets - 87,965
Operating Profit before Working Capital Changes A 204,654,391 1,391,557
Working Capital Changes:
(Increase) / Decrease in trade and other receivables (28,063,363) (567,891,098)
(Increase) / Decrease in Short term loans and advances (3,215,502,584) (10,498,254)
(Increase) / Decrease in Other Current Assets (44,113,540) (17,787,465)
(Increase) / Decrease in Loans & Advances (1,913,940,690) (190,884,377)
(Increase) / Decrease in Other Non- Current Assets (161,565,145) (35,454,235)
Increase / (Decrease) in Long term Liabilities 2,026,531,224 (339,701,973)
Increase / (Decrease) in long term provisions 75,977,405 (1,579,164)
Increase / (Decrease) in Other current liabilities (1,657,275,007) 403,155,821
Increase / (Decrease) in trade payables (50,856,776) -
Changes in Working Capital B (4,968,808,475) (760,640,745)
Cash generated from operations A+B (4,764,154,084) (759,249,188)
Income taxes paid (16,932,764) (7,869,013)
Net cash from operating activities (4,781,086,848) (767,118,201)
CASH FLOW FROM INVESTING ACTIVITIES
Sale of Fixed Assets 29,731 590,500
Dividend from Mutual Funds - 6,947,850
Short Term Capital Gain 4,851,909
Purchase of Fixed Assets (36,499,570) (16,426,835)
Interest on Fixed Deposits 18,603,421 13,081,047
Net Cash used in Investing activities (13,014,508) 4,192,562
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of Equity Share Capital 500,000,000 500,000,000
Redemption of Preference Share Capital - -
Proceeds from Borrowings 6,397,227,364 1,361,286,036
Repayment of Borrowings (2,205,022,072) (665,604,845)
Dividends paid (including DDT) - (1,939,376)
Net cash used in financing activities 4,692,205,292 1,193,741,815
Net increase in cash and cash equivalents (101,896,064) 430,816,176
Cash and cash equivalents as at 01-April-2017 561,482,281 130,666,105
Cash and cash equivalents as at 31-March-2018 459,586,218 561,482,281
The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard -3 on Cash Flow Statement.
Firm No. 005917S
M. No. 014353 DIN : 01018821 DIN : 02216802

50
Notes forming part of Standalone Financial Statements as at March 31, 2018
note 1 : Significant Accounting Policies & Notes can be made. Provisions are not discounted to their present
forming part of the Accounts value and are determined based on best estimate required
to settle the obligation at the Balance Sheet date. These are
1. Basis of Preparation:
reviewed at each Balance Sheet date and adjusted to reflect
The financial statements of the Company have been prepared the current best estimates.
in accordance with Generally Accepted Accounting Principles
A contingent liability is a possible obligation that arises
in India (Indian GAAP) to comply with the Accounting
from past events whose existence will be confirmed by the
Standard specified under section 133 of the Companies Act,

occurrence or non-occurrence of one or more uncertain
2013, read with Rule 7 of the Companies (Accounts) Rules,
future events beyond the control of the Company or a
2014 and the relevant provisions of the Companies Act, 2013
present obligation that is not recognised because it is not
(“the 2013 Act”)/Companies Act 1956, (“the 1956 Act”), as
probable that an outflow of resources will be required to
applicable. The financial statements have been prepared on
settle the obligation. A contingent liability also arises in
accrual basis and the directions issued by the Reserve Bank of
extremely rare cases where there is a liability that cannot be
India (RBI) to the extent applicable to the Company.
recognised because it cannot be measured reliably.
The Company follows the prudential norms for Income
The Company does not recognise a contingent liability but
recognition, asset classification and provisioning as
discloses its existence in the financial statements.
prescribed by the RBI for Non-deposit taking Non-Banking
Financial Companies (NBFC-MFI). 6. Income Taxes and Deferred Taxes:

2. Use of Accounting Estimates: Current tax is the amount of tax payable on the taxable
income for the year as determined in accordance with the
The presentation of financial statements in conformity with
provisions of the Income Tax Act, 1961.
Indian Generally Accepted Accounting Principles requires
management to make estimates and assumptions that Deferred tax is recognised, on timing difference, being
affect the reported amounts of assets and liabilities and the difference between taxable income and accounting
disclosure of contingent assets and liabilities at the date of income that originate in one period and are capable of
the financial statements and reported amounts of revenues reversal in one or more subsequent periods. Deferred tax
and expenses during the reporting period. Although such assets are recognised only if there is virtual certainty that
estimates are made on a reasonable and prudent basis they will be realised and are reviewed every year. The tax

taking into account all available information, actual results effect is calculated on the accumulated timing differences
could differ from those estimates. at the end of the year based on enacted or substantially
enacted tax rates.
3. Cash flow statement:
7. Tangible fixed assets:
The Cash Flow are reported using the indirect method,
whereby profit / (loss) before tax is adjusted for the effects of All fixed assets are stated at historical cost less accumulated
transactions of non-cash nature and any deferrals or accruals depreciation and impairment losses, if any. Cost comprises
of past or future cash receipts or payments. The cash flows the purchase price and any attributable cost of bringing the
from operating, investing and financing activities of the asset to its working condition for its intended use.
Company are segregated based on available information.
8. Intangible assets:
4. Cash and cash equivalents:
Computer software are stated at the cost of acquisition and
Cash and cash equivalents for the purpose of cash flow are amortised over a period of five years, based on expected
statement comprise cash in hand and cash at bank and future economic benefits accruing to the Company from
short-term investments with an original maturity of three the year of acquisition.
months or less.
9. Depreciation & Amortisation:
5. Provisions and contingent liabilities:
Depreciable amount for assets is the cost of an asset, or
A provision is recognised when the Company has a present other amount substituted for cost, less its estimated residual
legal or constructive obligation as a result of past events and value.
it is probable that an outflow of resources will be required
Depreciation on tangible fixed assets has been provided on
to settle the obligation, in respect of which reliable estimate
the straight-line method as per the useful life prescribed in
51
Notes forming part of Standalone Financial Statements as at March 31, 2018 (Contd.)
Schedule II to the Companies Act, 2013 The useful life of the a) 1% of the outstanding loan portfolio or
assets is as under: b) 50% of the aggregate loan installments which are
Category of Assets Useful Life overdue for more than 90 days and less than 180 days
and 100% of the aggregate loan installments which
Furniture and Fixtures 10 years
are overdue for 180 days or more.
Office Equipment 5 years
Vehicles 8 years In addition to the above provision, the Company has
Computers 3 years provided 0.40% of the Loan Portfolio as Standard Asset
provision.
Intangible assets are amortised over their estimated useful
life as follows: 12. Trade receivables under Financing Activity:
Software - 3 Years Trade receivables under financing activity include Income

Generating Loan, Dairy Cow Loan / Cattle Loan, Water
Servers & Networks - 6 Years
Purifier Loan, Solar Products Loan and Individual Loan.
Individual assets costing less than ` 5,000 each are Loans are classified into ‘Performing and Non- Performing
depreciated fully in the year of purchase. assets in terms of the Non-Banking Financial Companies
10. Investments: Prudential Norms (Reserve Bank) Directions, 1998 and
NBFC-MFI Directions (as applicable) issued by the Reserve
Investments which are long term in nature are stated at cost Bank of India as amended from time to time.
with provisions where necessary for diminution, other than
temporary, in the value of Investment. 13. Revenue Recognition:
a) Revenue from Interest on loans financed by the
Investments, which are readily realisable and intended
Company is recognised on accrual basis, considering
to be held for not more than one year from the date
the directions issued by the Reserve Bank of India
on which such investments are made, are classified as
from time to time in terms of the Non Banking
current investments. All other investments are classified
Financial Companies Prudential Norms (Reserve Bank)
as long-term investments. Current investments are carried
Directions, 1998.
in the financial statements at lower of cost and fair value
determined on an individual investment basis except for b) Interest income on Fixed Deposits with Banks is
investments in the units of mutual funds in the nature of recognised on a time proportion basis taking into
current investments that have been valued at the net account the amount outstanding and the rate
asset value declared by the mutual fund in respect of each applicable.
particular scheme, in accordance with the NBFC directions. c) Processing fee is recognised as and when collected at
Long-term investments are carried at cost. However, the time of loan disbursement.
provision for diminution in value is made to recognise d) Dividend income from investments in mutual fund is
a decline other than temporary in the value of the recognised when the right to receive is established.
investments. On disposal of an investment the difference
e) Facilitation fee is recognised on accrual basis according
between carrying amount and net disposal proceeds are
to the terms of agreement.
charged or credited to the statement of profit and loss.
f ) Profit/Premium arising at the time of securitisation
11. Classification & Provisions of Loan Portfolio: of loan portfolio is amortised over the life of the
Loans are classified and provided as per norms required underlying loan/portfolio/securities and loss arising
in Non-Banking Financial (Non-Deposit Accepting) thereon is accounted immediately.
Companies Prudential Norms (Reserve Bank) Directions, g) All other income is recognised on an accrual basis,
2007, as amended from time to time. when there is no uncertainty in the ultimate realisation
/ collection.
The Company has got classified as NBFC-MFI and
accordingly has provided its provisioning norms for loan 14. Borrowing Costs:
portfolio vide RBI circular dated December 02, 2011 as
Borrowing costs attributable to qualifying assets (assets
amended vide circular dated March 20, 2012. According to
which require substantial period of time to get ready for
which the provision will be higher of:
their intended use) are capitalised as part of the cost of such
52
assets. All other borrowing costs are charged to revenue. any indication exists, or when annual impairment testing
for an asset is required, the Company estimates the asset’s
15. Earnings per Share:
recoverable amount. An asset’s recoverable amount is the
Basic and diluted earnings per share are computed in higher of an asset’s net selling price and its value in use.
accordance with Accounting Standard (AS)-20 – Earnings The recoverable amount is determined for an individual
per share. In determining the Earning per share the asset, unless the asset does not generate cash inflows that
Company considers the Net Profit after Tax. The number are largely independent of those from other assets or
of Shares used in computing Basic Earning per share groups of assets. Where the carrying amount of an asset

is number of share outstanding during the period. The exceeds its recoverable amount, the asset is considered
number of shares used in computing diluted earnings per impaired and is written down to its recoverable amount. In
share comprises the weighted average shares considered assessing value in use, the estimated future cash flows are
for deriving basic earnings per share and also the weighted discounted to their present value using a pre-tax discount
average number of equity shares that could have been rate that reflects current market assessments of the
issued on the conversion of all dilutive potential equity time value of money and the risks specific to the asset. In
shares. determining net selling price, recent market transactions
16. Employee Benefits: are taken into account, if available. If no such transactions
can be identified, an appropriate valuation model is used.
a) Short Term Employee Benefits:
18. Leases:

All employee benefits falling due wholly within twelve
months of rendering the services are classified as Leases where the lessor effectively retains, substantially all
short-term employee benefits, which include benefits the risks and benefits of ownership of the leased item, are
like Salary, Allowances and incentives, and are classified as operating leases. Operating lease payments are
recognised as expenses in the period in which the recognised as an expense in the statement of profit and loss
employee renders the related service. on a straight-line basis over the lease term.
b) Post- employment Benefits: 19. Foreign Currency Transactions:
Defined Contribution Plans: I. All transactions in foreign currency are recognised

The Company’s contributions to provident fund are at the exchange rate prevailing on the date of the

considered as defined contribution plans and are transaction.
charged as an expense as they fall due based on the II. Foreign currency monetary items are reported using
amount of contribution required to be made. the exchange rate prevailing at the close of the
Defined Benefit Plans: financial year.
For defined benefit plans in the form of gratuity, III. Exchange differences arising on the settlement of
the cost of providing benefits is determined using monetary items or on the restatement of Company’s
the Projected Unit Credit method, with actuarial monetary items at rates different from those at which
valuations being carried out at each Balance Sheet they were initially recorded during the year, or reported
date. Actuarial gains and losses are recognised in the in previous financial statements, are recognised as
Statement of Profit and Loss in the period in which income or as expenses in the year in which they arise.
they occur. Past service cost is recognised immediately
20. General:
to the extent that the benefits are already vested
and otherwise is amortised on a straight-line basis Any other accounting policy not specifically referred to are
over the average period until the benefits become consistent with generally accepted accounting principles.
vested. The retirement benefit obligation recognised
in the Balance Sheet represents the present value
of the defined benefit obligation as adjusted for
unrecognised past service cost.
17. Impairment:
The Company assesses at each reporting date whether

there is an indication that an asset may be impaired. If
53
NOTE 2 : Share Capital
(`)
As at March 31, As at March 31,
Particulars
2018 2017
Authorised :
13,000,000 (Previous year 63,000,000 Equity Shares of ` 10/- each) 1,130,000,000 630,000,000
Equity Shares of ` 10/- each
2,000,000 (Previous year 2,000,000 Preference Shares of ` 10/- each) 20,000,000 20,000,000
Preference Shares of ` 10/- each
Total 1,150,000,000 650,000,000
Issued, Subscribed and Paid-up share capital
111,344,611 (Previous year : 61,344,611 shares) Equity Shares of ` 10/- each fully paid-up 1,113,446,110 613,446,110
Total 1,113,446,110 613,446,110
i) Reconciliation of the number of shares outstanding at the beginning and at the end of the year:
(` in Millions)
2018 2017
Equity Shares:
Number of shares at the beginning of the year 61,344,611 10,470,000
Add: Equity shares issued during the year 50,000,000 50,874,611
Number of shares at the end of the year 111,344,611 61,344,611
Preference Shares:
Preference Shares: - 1,000,000
Preference Shares: - -
Preference Shares: - 1,000,000
Number of shares at the end of the year - -
ii) Number of shares held by each shareholder holding more than 5% shares in the Company are as follows:
Class of shares / Name of the shareholder
(`)
2018 2017
Particulars
Number of Number of
shares shares
Equity Shares:
India Infoline Finance Limited 108,417,631 58,417,631
Total 108,417,631 58,417,631
iii) Terms / rights attached to Equity Shares:
The Company has Equity Shares having par value of ` 10/- per share. Each holder of Equity Shares is entitled to one vote per
share. Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors
subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company,
the holders of Equity Shares will be entitled to receive any of the remaining assets of the company, after distribution of all
preferential amounts.
iv) Terms / rights attached to Preference Shares:
a) Rights/preferences attached to Preference Shares
The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the
ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share only on resolutions
placed before the Company which directly affect the rights attached to the said shares. In the event of liquidation of the
Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in
54
the payment of dividend and repayment of capital and premium thereon but shall not be entitled to any surplus arising
thereto.
Note 3 : Reserve and Surplus
(`)
Particulars
2018 2017
Securities Premium Reserve

Opening balance 1,253,890 -
Addition during the year - 1,253,890
Deduction during the year - -
Closing balance 1,253,890 1,253,890
Special Reserve
Opening balance 7,757,977 6,132,977
Addition during the year 5,173,000 1,625,000
Closing balance 12,930,977 7,757,977
Surplus / (Deficit) in Statement of Profit and Loss

Opening balance 21,074,481 15,465,751
Addition: Profit for the year 25,829,713 8,089,888
Less: Appropriations
Dividend on Preference Shares - 729,863
Dividend Distribution Tax - Preference Shares - 126,295
Special Reserve* 5,173,000 1,625,000
Closing balance 41,731,194 21,074,481
Total 55,916,061 30,086,348

*As required by Section 45 1C of Reserve Bank of India Act, 1934.
note4 : Long-term borrowings
(`)
Particulars
2018 2017
Secured Loans
a) Term Loans - Secured
1) From Banks (Refer Note 4.1) 1,586,950,435 247,656,453
2) From Other Parties 168,354,898 246,197,121
(Refer Note 4.1)
b) Non-Convertible Debentures - Secured (Refer Note 4.1) 150,000,000 137,500,800
c) Non-Convertible Debentures - Unsecured (Refer Note 4.1) - Tier II Capital 50,000,000 50,000,000
d) Vehicle Loans - Unsecured
1) From Banks (Refer Note 4.1) 670,093 676,627
2) From Other Parties (Refer Note 4.1) 439,182 639,316
Total 1,956,414,608 682,670,317
55
56
Note 4.1 Term Loan from Banks - Secured
(`)
As at March 31, 2018 As at March 31, 2017
Name of the Bank Terms of repayment Security Offered Current Non-current Current Non-current
Liabilities Liabilities Liabilities Liabilities
Bank of Maharashtra Rate of Interest - Base rate + 4.50%, Hypothecation of book debts, cash 2,749,137 - 10,920,000 2,874,738
loan repayable in 33 monthly collateral and personal guarantee of
installments. Mr. N. Venkatesh, Director.
Bank of Maharashtra Rate of Interest - Base rate + 4.50%, Hypothecation of book debts, cash 13,344,000 14,734,476 13,344,000 28,255,787
Bank of Rate of Interest 1Y Hypothecation of book debts and 25,008,000 75,100,042
Maharastra-8396 MCLR+0.25%+0.95%,loan cash collateral
repayable in 48 monthly
installaments
Bank of Baroda Rate of Interest 1Y Hypothecation of book debts and 150,300,000 349,700,000
MCLR+0.25%,loan repayable in 30 cash collateral
monthly installments for BOB
Canara Bank Rate of Interest - Base rate + 3.00%, Hypothecation of book debts, cash 5,000,000 - 10,000,000 5,000,000
loan repayable in 12 quarterly collateral and personal guarantee of
Corporation Bank Rate of Interest - Base rate + 2.10%, Hypothecation of book debts - -
loan repayable in 12 quarterly and personal guarantee of Mr. N.
installments. Venkatesh, Director.
Dena Bank Rate of Interest 1Y Hypothecation of book debts and 18,181,824 24,340,709 - -
monthly installaments
Indian Bank Rate of Interest - Base rate + 3.80%, Hypothecation of book debts, cash 5,819,882 -
Indian Bank Rate of Interest - Base rate + 3.80%, Hypothecation of book debts, cash 9,166,675 1,044,075 9,999,996 10,380,872
Kaveri Grameena Rate of Interest - 14.25%, Hypothecation of book debts, cash 12,646,933 -
Bank loan repayable in 36 monthly collateral and personal guarantee of
Kaveri Grameena Rate of Interest - 13.75%, Hypothecation of book debts, cash - - 16,666,680 17,042,654
Lakshmi Vilas Bank Rate of Interest - Base rate + 2.25%, Hypothecation of book debts and 18,821,491 1,427,645 16,396,547 20,273,934
loan repayable in 36 monthly cash collateral
installments.
(`)
Lakshmi Vilas Bank Rate of Interest - 12.55% loan Hypothecation of book debts and 6,666,672 6,111,104 6,666,672 12,777,772
repayable in 33 monthly cash collateral
Annual Report 2017-18
installments.
Lakshmi Vilas Bank Rate of Interest - MCLR + 0.15%, Hypothecation of book debts and 12,500,001 37,499,999
installments.
Lakshmi Vilas Bank Rate of Interest - MCLR + 0.15%, Hypothecation of book debts 62,499,999 187,500,001
loan repayable in 39 monthly
installments.
Pallavan Grama Bank Rate of Interest - 14.00%, Hypothecation of book debts, cash - - 3,448,663 -
Pallavan Grama Bank Rate of Interest - 14.00%, Hypothecation of book debts, cash 12,415,340 - 11,259,481 12,413,177
Pallavan Grama Bank Rate of Interest - 14.00%, Hypothecation of book debts, cash 3,865,058 2,532,763 3,367,499 6,476,080
Ratnakar Bank Ltd. Rate of Interest - 13.50% loan Hypothecation of book debts, cash 11,428,571 - 22,857,143 11,428,571
repayable in 24 monthly collateral and personal guarantee of
Ratnakar Bank Ltd. Rate of Interest 1Y Hypothecation of book debts 125,000,000 93,750,000
MCLR+0.50%,loan repayable in 24
South Indian Bank Rate of Interest - Base rate + 3.70%, Hypothecation of book debts, 3,334,000 - 3,636,000 3,334,000
loan repayable in 33 monthly cash collateral and personal
installments. guarantee of Mr. N. Venkatesh, Mr.
D. Shivaprakash, & Mr. R.C. Shekar
Director.
Standalone
South Indian Bank Rate of Interest - Base rate + 3.70%, Hypothecation of book debts, 3,334,000 - 3,636,000 3,334,000
loan repayable in 33 monthly cash collateral and personal
installments. guarantee of Mr. N. Venkatesh, Mr.
D. Shivaprakash, & Mr. R.C. Shekar
Director.
South Indian Bank Rate of Interest - 13.30% loan Hypothecation of book debts, cash 9,096,000 8,324,000 8,338,000 16,662,000
57
Financial Statements
Financial Statements 44-116 Statutory Reports 22-43 Corporate Overview 1-21

58
Note 4.1 Term Loan from Banks - Secured (contd.)
(`)
State Bank of India Rate of Interest - 12.25%loan Hypothecation of book debts and 40,000,000 13,810,441 40,000,000 54,261,539
repayable in 36 monthly cash collateral.
installments.
State Bank of India Rate of Interest - 11.30%loan Hypothecation of book debts and 120,000,000 162,798,685
installments.
State Bank (Mauritius) Rate of Interest 1Y Hypothecation of book debts and 33,333,336 59,170,259 - -
Ltd MCLR+2.00%,loan repayable in 39 cash collateral.
State Bank of Mysore Rate of Interest - Base rate + 2.25%, Hypothecation of book debts, cash 1,330,378 - 10,909,200 2,321,689
State Bank of Patiala Rate of Interest - Base rate + 3.50%, Hypothecation of book debts, cash 3,683,751 -
State Bank of Rate of Interest - Base rate + 4.50%, Hypothecation of book debts, cash 18,466,503 -
Travancore loan repayable in 33 monthly collateral and personal guarantee of
Standard Chartered Rate of Interest- 8.55%, loan Hypothecation of book debts 200,000,000 -
Bank repayable as may be agreed with and corporate guarantee of India
the Bank Infoline Finance Limited.
UCO Bank Rate of Interest - Base rate + 3.00%, Hypothecation of book debts, cash 7,286,685 -
UCO Bank Rate of Interest - Base rate + 3.00%, Hypothecation of book debts, cash 8,000,004 6,644,070 8,000,004 13,995,996

UCO Bank Rate of Interest - 11.75% loan Hypothecation of book debts and 10,000,000 -
installments.
UCO Bank Rate of Interest MCLR+2.65%,loan Hypothecation of book debts and 13,333,333 27,054,832
installaments
YES Bank Ltd. Rate of Interest - 12.25% loan Hypothecation of book debts, cash 10,000,000 10,161,644
(`)
YES Bank Ltd. Rate of Interest 1YR MCLR+3%,loan Hypothecation of book debts and 25,000,000 7,083,333
installaments
YES Bank Ltd. Rate of Interest 1Y MCLR+0.5%,loan Hypothecation of book debts and 500,000,000 500,000,000
installaments
Total 1,692,803,820 1,586,950,435 275,687,639 247,656,453
Term Loan from Other Parties - Secured
(`)
Name of the FI / NBFC Terms of repayment Security Offered Current Non-current Current Non-current
Agri Business Finance Rate of Interest - 13% loan Hypothecation of book debts, cash 16,680,000 16,640,000 16,680,000 33,320,000
Ltd. repayable in 36 monthly collateral and personal guarantee
installments. of Mr. N. Venkatesh, Director.
Ananya Finance for Rate of Interest - 15.75%, Hypothecation of book debts, 2,812,500 -
Inclusive Growth Private loan repayable in 18 monthly cash collateral and 18 no. advance
Limited installments. post-dated cheques.
Fedbank Financial Rate of Interest - 12% loan Hypothecation of book debts and 13,500,000 36,500,000
Services Limited repayable in 36 monthly cash collateral.
installments.
Fedbank Financial Rate of Interest - 11.20% loan Hypothecation of book debts and 72,719,880 87,871,412
Services Limited-TL repayable in 36 monthly cash collateral.
installments.
IFMR Capital Finance Rate of Interest - 15.75%, Hypothecation of book debts and - - 27,664,709 -
Private Limited loan repayable in 24 monthly cash collateral.
installments.
Standalone
installments.
IFMR Capital Finance Rate of Interest - 14.95% loan Hypothecation of book debts and 20,504,788 - 24,025,357 20,504,788
Private Limited repayable in 24 monthly cash collateral.
installments.
installments.
59

60
(`)
Name of the FI / NBFC Terms of repayment Security Offered Current Non-current Current Non-current
Maanaveeya Rate of Interest - 14.50%, loan Hypothecation of book debts and 40,008,000 19,988,000
Development & repayable in 24 installments. cash collateral.
Finance Private Limited
Reliance Capital Ltd. Rate of Interest - 15.00%, Hypothecation of book debts and 10,758,883 -
loan repayable in 15 monthly cash collateral.
installments.
Reliance Capital Ltd. Rate of Interest - 13%, loan Hypothecation of book debts and 14,256,994 0
installments.
Reliance Capital Ltd. Rate of Interest - 13%, loan Hypothecation of book debts and 48,269,667 0 47,373,373 48,269,667
installments.
installments.
Religare Finvest Limited Rate of Interest - 15.75%, Hypothecation of book debts, cash 16,232,023 -
loan repayable in 26 monthly collateral and personal guarantee
Religare Finvest Limited Rate of Interest - 14.50%, Hypothecation of book debts, cash 1,37,71,278 0 2,49,35,233 1,38,81,848
loan repayable in 24 monthly collateral and personal guarantee
instalments. of Mr. N. Venkatesh, Director.
Hero Fin Corp Rate of Interest - 9.5%, loan Hypothecation of book debts 36,156,514 63,843,486
installments.
Total 281,834,944 168,354,898 336,733,363 246,197,121
Non-Convertible Debentures - Secured
(`)

Name of
Terms of repayment Security Offered Current Non-current Current Non-current
Debenture Holder
Hinduja Leyland Rate of Interest - 12.78% p.a. Hypothecation of Book Debts 45,833,400 -
Finance Limited calculated on a XIRR basis,
principal repayable in 24 monthly
installments.
Hinduja Leyland Rate of Interest - 12.51% p.a. Hypothecation of Book Debts 12,500,000 - 49,999,200 12,500,800
installments.
(`)
Name of
Debenture Holder
Hinduja Leyland Rate of Interest - 10.56% p.a. Hypothecation of Book Debts 66,666,667 100,000,000

installments.
IFMR Flmpact Long Rate of Interest - 15.25% loan Hypothecation of Book Debts - 50,000,000 - 50,000,000
Term Multi Asset repayable in 72 monthly
Class-Senior Debt installments.
Mahindra & Rate of Interest - 11.40% loan Hypothecation of Book Debts 75,000,000 - 75,000,000 75,000,000
Mahindra Financial repayable in 24 monthly
Services Ltd installments.
Total 15,41,66,667 15,00,00,000 17,08,32,600 13,75,00,800
Cash Credit - Secured
(`)
Ratnakar Bank Ltd. Rate of Interest - 13.75% loan Hypothecation of Book Debts - 3,586 -
repayable on demand - Tenor -12
Months
Total - - 3,586
Non-Convertible Debentures - Unsecured
(`)
Name of
Debenture Holder
Standalone

IFMR Flmpact Long Rate of Interest - 15.25% loan No security offered - 50,000,000 - 50,000,000
Class-Sub Debt installments.
Total - 50,000,000 - 50,000,000
61

62
Vehicle Loan from Banks - Unsecured

(`)
HDFC Bank Rate of Interest - 9.65%, loan Hypothecation of Car 218,078 458,550 198,093 676,627
installments.
HDFC Bank Rate of Interest - 8.88%, loan Hypothecation of Car 153,387 211,543 - -
installments.
Total 371,464 670,093 198,093 676,627
Vehicle Loan from Other Parties - Unsecured

(`)
Name of the FI /
NBFC
Kotak Mahindra Loan repayable in 60 monthly Hypothecation of Car 200,134 439,182 182,522 639,316
Prime Ltd installments (Monthy EMI).
Total 200,134 439,182 182,522 639,316
Note 4.1: The Company has not defaulted in the repayment of dues to banks / financial institutions.
note 5: Long-term Provisions
(`)
Particulars
2018 2017
a) Provision for Employee Benefits:
i) Provision for Gratuity 1,126,226 1,570,357

ii) Provision for Leave encashment 1,976,536 -
b) Other Provisions:
i) Provision for Taxation 9,071,868 7,621,868
ii) Provision against Standard Assets under financing activity 25,400,000 -
iii) Provision against Loan Assets under financing activity 63,410,000 14,365,000
Total 100,984,630 23,557,225
note 6: Short-term borrowings

(`)
Particulars
2018 2017
Unsecured Loans
Inter Corporate Deposits 748,620,200 -
Commercial Paper 650,000,000 -
Less : Unexpired discount on commercial paper (22,017,550) -
Total 1,376,602,650 -

note 7: Trade payables
(`)
Particulars
2018 2017
Outstanding dues of creditors 30,628,874 81,485,650
Total 30,628,874 81,485,650
note 8: Other current liabilities
(`)
Particulars
2018 2017
Current maturities of long term borrowings
Secured Non Convertible Debentures (Refer Note 4.1) 154,166,667 170,832,600
Loans from Banks (Secured against receivables- Refer Note 4.1) 1,692,803,820 275,687,639
Term Loan from Other Parties - Secured (Refer Note 4.1) 281,834,944 336,733,363
Cash Credit (Refer Note 4.1) - 3,586
Vehicle Loans - Unsecured
63
(`)
Particulars
2018 2017
Sub-total 2,129,377,029 783,637,803
Other Payable
Payable to Holding Company 196,119,125 -
Interest accrued but not due on borrowings 27,429,520 6,058,172
Payables on account of assignments and securitisation 25,961,592 21,824,760
Advances from customers 3,656,190 -
Statutory remittances (Contributions to PF and ESIC, Service Tax, etc.) 15,654,046 3,484,133
Accrued Salaries & Benefits 16,782,645 4,084,136
Provision for expenses 10,640,298 3,112,351
Other payables 306,923,640 -
Sub-total 603,167,056 38,563,552
Total 2,732,544,085 822,201,355
note 9: Short-term provisions
(`)
Particulars
2018 2017
Provision for Leave encashment 771,839 -
Provision for Tax 38,009,368 1,450,000
Total 38,781,207 1,450,000
64
note 10:Fixed Assets
(`)
Tangible Assets Intangible Assets
Particulars Furntiure Office Computers Vehicles Total Computer Total Total
& Fixtures Equipment Softwares

As at April 1, 2017 8,544,535 7,592,905 12,024,511 4,506,014 32,667,965 5,463,036 5,463,036 38,131,001
Additions 6,705,872 8,111,394 19,625,473 1,041,500 35,484,239 1,015,331 1,015,331 36,499,570
Disposals/Adjustments (40,719) (40,719) - (40,719)
As at March 31, 2018 15,250,407 15,704,299 31,609,265 5,547,514 68,111,485 6,478,367 6,478,367 74,589,852
Depreciation / Amortisation
As at April 1, 2017 3,030,855 2,464,892 4,290,208 1,566,591 11,352,546 4,737,816 4,737,816 16,090,362
Depreciation / Amortisation for the year 1,089,905 1,908,157 8,688,382 579,214 12,265,657 815,525 815,525 13,081,182
Disposals (10,988) (10,988) - (10,988)
As at March 31, 2018 4,120,760 4,373,049 12,967,602 2,145,805 23,607,215 5,553,341 5,553,341 29,160,556
Net Block
Balance as at March 31, 2018 (`) 11,129,647 11,331,250 18,641,663 3,401,709 44,504,269 925,026 925,026 45,429,296
Balance as at March 31, 2017 (`) 5,513,680 5,128,013 7,734,303 2,939,423 21,315,419 725,220 725,220 22,040,639
Standalone
65

note 11: Non-Current Investments
(`)
Particulars
2018 2017
a) Trade - Unquoted Investments, at cost
i) Investments in Equity Instruments
1) Alpha Micro Finance Consultants Pvt. Ltd., 50,000 Equity shares of
`10/- each fully paid up. 500,000 500,000
(Previous year 50,000 Equity shares of `10/- per share)"
2) Ayusha Dairy Private Limited (Subsidiary), 1,000,000 Equity shares of
`10/- each fully paid up. 10,000,000 10,000,000
(Previous year 1,000,000 Equity shares of `10/- per share)"
Total 10,500,000 10,500,000
Aggregate amount of unquoted investments 10,500,000 10,500,000
note 12: Deferred Tax
(`)
Particulars AS PER BOOKS AS PER IT DIFFERENCE Deferred Tax
1) Deferred tax liability
Fixed asset 45,429,296 45,160,878 268,418 (77,412)
Provision for bad and doubtful debts
- (6,897,556) 6,897,556 (1,989,255)
under Section 36(1)(viia)
(2,066,667)
2) Deffered tax asset
Provision for Gratuity 1,126,226 - 1,126,226 324,804
Provision for Leave Encashment 2,748,375 - 2,748,375 792,631
Provision for Loan portfolio 88,810,000 - 88,810,000 25,612,804
26,730,239
Particulars Difference
Deferred Tax Liability as on 31.03.2018 2,066,667
Opening Balance of Deferred Tax Liability 748,513
Provision made in Profit & Loss Account 1,318,154
Deferred Tax Asset as on 31.03.2018 26,730,239
Opening Balance of Deferred Tax Asset 5,535,528
Total Provision made in Profit & Loss Account (19,876,557)
Deferred Tax Asset as on 31.03.2018 (Net) 24,663,572
note 13: Long-term loans & advances
(`)
Particulars
2018 2017
Loans & Advances
- Unsecured 2,113,382,091 369,165,027
Total 2,113,382,091 369,165,027
66
note 14: Other non-current assets
(`)
Particulars
2018 2017
Others
i) Deposits with Banks more than 12 months maturity 257,512,951 110,536,853
ii) Deposits with other NBFC for term loans 30,766,434 13,373,558

iii) Deferred Revenue Expenditure 1,573,730 10,243,433
iv) Rent Deposits 14,494,623 8,628,750
v) Advance Tax 14,698,900 7,298,900
vi) TDS Receivables 16,774,768 7,242,004
vii) MAT Credit - 1,342,390
Total 335,821,406 158,665,888
* Represents margin money deposits placed to avail tem loans from banks, financial institutions, non banking financial companies
and as cash collateral in connection with securtisation transactions.

note 15: Trade receivables
(`)
Particulars
2018 2017
Trade receivables 37,916,290 9,852,927
Total 37,916,290 9,852,927
note 16: Cash and Cash equivalents
(`)

Particulars
2018 2017
Cash on hand 953,986 1,147,622
Balances with banks 430,711,213 190,487,432
Others
(i) In Fixed Deposit accounts with maturity less than 12 months & all the deposits are 27,921,019 369,847,227
lien noted against the term loans.
Total 459,586,218 561,482,281
note 17: Short-term loans & advances
(`)
Particulars
2018 2017
Loans & Advances
- Unsecured 4,226,703,989 1,067,314,077
Sub-total 4,226,703,989 1,067,314,077
Others loans & advances
Dues from customers -
- Unsecured 59,178,693 -
Staff Loans 909,993 844,117
Prepaid expenses 222,843 3,354,739
Sub-total 60,311,529 4,198,856
Total 4,287,015,518 1,071,512,933
67
note 18: Other current assets
(`)
Particulars
2018 2017
Deferred Revenue Expenditure 8,669,706 11,584,937
Accrued Income on Loans 63,690,587 25,634,429
Accrued Interest on Fixed Deposits 14,095,108 9,670,930
Others 4,548,435 -
Total 91,003,837 46,890,296
note 19: Revenue from operations
(`)
Particulars
2018 2017
Interest Income on Loans 718,173,021 197,194,881
Income from securitisation / assignment of loans 24,535,040 29,642,588
Income from Business Correspondents 121,748,084 64,478,357
Processing fee 76,746,025 15,985,481
Interest on fixed deposits 18,603,421 13,081,047
Total 959,805,592 320,382,354
note 20: Other Income
(`)
Particulars
2018 2017
Dividend income - 6,947,849
Short Term Capital Gain 4,851,909 -
Commission Income 1,867,878 -
Administration fee & other charges from customer 139,167 609,450
Miscelleneous income 1,166,725 507,635
Total 8,025,679 8,064,934
note 21: Employee cost
(`)
Particulars
2018 2017
Salaries and bonus 246,696,350 101,530,529
Contribution to provident and other funds 18,784,898 6,974,010
Leave Encashment 3,277,501 -
Gratuity 2,056,638 1,120,776
Staff Welfare Expenses 9,265,717 2,549,055
Total 280,081,104 112,174,370
note 22: Finance cost
(`)
Particulars
2018 2017
Interest Expenses on :
Term Loans 192,135,654 104,553,356
Cash Credit and Overdraft 666,019 37,320
68
(`)
Particulars
2018 2017
Non Convertible Debentures 45,965,627 29,399,786
Commercial Papers 15,981,297 -
Vehicle Loan 173,983 131,765

Other borrowing cost 25,326,640 12,185,933
Interest Expense on Income Tax 1,509,368 -
Total 313,024,282 146,308,160
note 23: Administration and other expenses
(`)
Particulars
2018 2017
Advertisement 377,153 490,892
Bank Charges 5,035,802 1,184,174

Communication 5,150,726 1,661,246
Electricity 1,771,378 648,516
Legal & Professional Fees 19,182,187 10,185,289
Miscelleneous Expenses 1,242,407 985,439
Office expenses 8,824,902 2,343,957
Postage & Courier 2,462,430 1,162,985
Printing & Stationary 6,195,047 2,358,770
Rates & Taxes 7,505,756 1,203,123

Rent 19,656,061 9,030,644
Repairs & Maintenance
- Computer 875,045 461,126
Remuneration to Auditors :
Audit Fees 250,000 175,000
Certificaton Expenses 50,000 -
Software Charges 7,564,087 4,576,919
Subscription 1,667,358 814,571
Travelling & Conveyance 34,915,193 11,211,651
Loss on sale of fixed assets - 87,965
Corporate Social Responsibility Expenses - 50,000
Total 122,725,532 48,632,269
69
note 23: Administration and other expenses (contd.)
Note (i)
(`)
Particulars
2018 2017
Auditor's Remuneration
- Statutory Audit Fee 150,000 110,000
- Tax Audit Fee 50,000 40,000
- Certification Charges 50,000 -
- Other Services ( Limited Review) 50,000 25,000
Total 300,000 175,000
note 24: Provisions / write off receivables under financial activity
(`)
Particulars
2018 2017
Portfolio loans written off 120,678,626 2,958,880
Provision against Loans 49,045,000 7,558,375
Provision against Standard Assets 25,400,000 -
Total 195,123,626 10,517,255
note 25: Employee Benefits
Disclosures envisaged in Accounting standard (AS) 15 - Employee Benefits as given below:
Note 25.1: Defined Contribution Plans
During the year, the Company has recognised the following amounts in the statement of profit and loss
(`)
For the year For the year
ended ended
Particulars
2018 2017
Employers Contribution to Provident & Pension Fund 10,706,738 4,910,772
Note 25.2: Defined Benefit Plans
T he Company has funded defined benefit gratuity plan. Every employees who has completed five years or more of service is
eligible for gratuity on separation at 15 days basic salary (Last Drawn salary) for each completed year of service. Consequent to
the adoption of AS 15 ’Employee Benefits’ specified under section 133 of Companies Act, 2013 read with rule 7 of Companies
(Accounts) Rules, 2014, the following disclosures have been made as required by standard:
Contribution to Gratuity Fund:

Details of defined benefit plan of gratuity are given below:
(`)
ended ended
Particulars
2018 2017
i) Changes in the Present Value of Obligation (PVO)
PVO as at the beginning of the period 3,862,741 3,149,521
Interest Cost 262,666 219,015
Current service cost 1,181,267 795,240
70
Note 25.2: Defined Benefit Plans (contd.)
(`)
Particulars ended ended
March 31, 2018 March 31, 2017
Past service cost - (non vested benefits) -
Past service cost - (vested benefits)

Benefits paid (141,433) (458,650)
Actuarial loss/(gain) on obligation (balancing figure) 219,853 157,615
PVO as at the end of the year 5,385,094 3,862,741
ii) Changes in the Fair Value of Plan Assets
Fair value of plan assets as at the beginning of the period 2,292,384 -
Expected return on plan assets 155,882 86,290
Contributions 2,000,000 2,699,940
Benefits paid (141,433) (458,650)
Actuarial gain/(loss) on plan assets [balancing figure] (47,965) (35,196)
Fair value of plan assets as at the end of the period 4,258,868 2,292,384
iii) Amount recognised in the Balance Sheet and Related Analysis
Present value of the obligation 5,385,094 3,862,741

Fair value of plan assets 4,258,868 2,292,384
Difference 1,126,226 1,570,357
Unrecognised transitional liability -
Unrecognised past service cost - non vested benefits -
Liability recognised in the balance sheet 1,126,226 1,570,357
iv) Expenses recognised in the Profit & Loss Account
Expected return on plan assets - -86,290
Net actuarial (gain)/loss recognised in the year 267,818 192,811
Transitional Liability recognised in the year - -

Past service cost - non-vested benefits - -
Past service cost - vested benefits - -
Expenses recognised in the statement of profit and loss 1,555,869 1,120,776
v) Major categories of Plan Assets (As percentage of Total Plan Assets)
Government of India Securities 0.00% 0.00%
State Government Securities 0.00% 0.00%
High Quality Corporate Bonds 0.00% 0.00%
Equity shares of listed companies 0.00% 0.00%
Property 0.00% 0.00%
Insurer Managed 100.00% 100.00%
Mutual Funds 0.00% 0.00%
Bank Deposits 0.00% 0.00%
Total 100.00% 100.00%
vi) Principal Actuarial Assumptions (Expressed as weighted averages)
Discount Rate 7.18% 6.80%
Salary escalation rate 7.00% 7.00%
Attrition rate 24.00% 24.00%
Expected rate of return on Plan Assets 7.18% 7.70%
vii) Assumptions
Discount rate as per para 78 of AS15R 7.18% 6.80%
Salary escalation fixed by the Enterprise as per para 83-91 and 120[l] of AS15R 7.00% 7.00%
Attrition rate fixed by Enterprise 24.00% 24.00%
Age of Retirement 60 60
Funding Mechanism Insurer Managed Insurer Managed
71
note 26: Segment Information
The Company operates in a single reportable segment i.e. lending to microfinance customers which have similar risks and returns
for the purpose of AS 17 on ‘Segment Reporting’ specified under section 133 of the Companies Act 2013 read with Rule 7 of the
Companies (Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules. The Company operates in a
single geographical segment i.e. domestic
note 27: Related Party Disclosures
Related party disclosures as required under the Accounting Standard (AS) - 18 on “Related Party Disclosures” specified under
section 133 of Companies Act 2013 read with rule 7 of Companies (Accounts) Rules 2014 are given below:
Note 27.1: Names of Related Parties and Nature of Relationship
(`)
Description of Relationship As at March 31, 2018 As at March 31, 2017
Holding Company India Infoline Finance Limited India Infoline Finance Limited
Subsidiary Company Ayusha Dairy Private Limited Ayusha Dairy Private Limited
Fellow Subsidiary Company IIFL Management Services Limited IIFL Management Services Limited
Fellow Subsidiary Company India Infoline Housing Finance Limited India Infoline Housing Finance
Limited
Key Management Personnel Mr. N. Venkatesh, Mr. N. Venkatesh,
Managing Director Managing Director
Mr. D. Shivaprakash, Mr. D. Shivaprakash
Whole-time Director
Whole-time Director
Mr. T. Anantha kumar, Mr. R.C.Shekar,
CFO Director
Mr. K J Sutheja, Mr. T. Anantha kumar,
Company Secretary CFO
Mr. A. Vikraman, Mr. K J Sutheja,
Independent Director Company Secretary
Mr. R Venkataraman, Director Mr. S. Parthasarathy, CFO Upto 31st
Mr. Gaurav Malhotra, Director May’16
Mr. A. Ramanathan Ms. Ritu Singh Company Secretary
Upto 31st Oct’16
Mr. Badrinarayan Seshadri Mr. Badrinarayan Seshadri,
Independent Director Independent Director
Mr. A. Vikraman,
Mr. A. Ramanathan Independent
Director
Note 27.2: Transactions with Related Parties
(`)
For the year ended For the year ended
Transaction Related Party
March 31, 2018 March 31, 2017
Income
Service Fee on Business India Infoline Finance Limited 65,254,963 Nil
Correspondence
Arranger Fee India Infoline Housing Finance 1,197,796 Nil
Limited
Expense
Interest India Infoline Finance Limited 62,257,683 Nil
Rent IIFL Management Services 9,000 Nil
Limited
72
Note 27.2: Transactions with Related Parties (contd.)
(`)
March 31, 2018 March 31, 2017
Remuneration to Director Mr. N. Venkatesh, 5,401,596 3,301,704
Managing Director
Mr. D. Shivaprakash, 4,200,156 2,401,908

Whole-time Director
Mr. R.C. Shekar, -
Director upto 16th Feb 2017 1,512,718
Reimbursement of expenses to Mr. N. Venkatesh, - 60,000
Director Managing Director
Sitting fee to Independent Mr. Badrinarayanan Seshadri, 58,332 76,222
Directors Director
Mr. A. Vikraman, Director 58,332 85,555
Mr. A. Ramanathan, Director 47,222 80,000
Remuneration to KMP Mr. S. Parthasarathy, - 157,926
CFO Upto 31st May’16

Mr. T. Anantha kumar, 1,257,429 811,813
CFO From 02nd July’16
Ms. Ritu Singh, - 83,293
Company Secretary Upto
31st Oct’16
Mr. K J Sutheja, 628,158 250,000
Company Secretary from
11th Nov’16
Remuneration / Sitting fee Relatives of Directors and Key Nil Nil
Management Personnel

Other Transactions
Loans and Advances received India Infoline Finance Limited 42,575,00,000 -
from Holding Company
Loans and Advances repaid to India Infoline Finance Limited 3,312,760,675 -
Holding Company
Equity Share Capital India Infoline Finance Limited 500,000,000 584,176,310
Balance as at year end
Equity Share Capital India Infoline Finance Limited 1,084,176,310 584,176,310
Investment in Subsidiary Ayusha Dairy Private Limited 10,000,000 10,000,000
(1000000 Equity shares of
`10/- each)
Term Loans (Including ICD) India Infoline Finance Limited 944,739,325 -
note 28: Additional information
Note 28.1: Contingent liabilities and commitments (to the extent not provided for)
(`)
Particulars
2018 2017
Contingent liabilities Nil Nil
73
Note 28.2: Disclosure on foreign currency exposure:

Earning in Foreign Exchange in Foreign Currency during the year is Nil (Previous Year: Nil). Expenditure in Foreign Exchange in
Foreign Currency during the year is Nil (Previous Year: Nil).
Note 28.3: Disclosures required under Section 22 of the Micro Small and Medium Enterprises Development Act 2006
There are no Micro and Small Enterprises to whom the Company owes dues which are outstanding for more than 45 days at
the Balance Sheet date. The above information regarding Micro Enterprises and Small Enterprises has been determined to the
extent such parties have been identified on the basis of information available with the Company. This has been relied upon by
the Auditors.
Note 28.4: Asset Classification & Provisioning:
The Company follows Prudential Norms of the Reserve Bank of India with regard to classification in respect of all loans extended
to its customer. The Company complies with the Prudential Norms of the Reserve Bank of India with regard to Income recognition
asset classification and provisioning. The Company is following provisioning norms as recommended vide DNBS.CC.PD.No.
250/03.10.01/2011-12 dated 02nd December 2011 DNBS.PD/CC.No.263/03.10.038/2011-12 dated 20th March 2012 and DNBS.
(PD).CC.No.347/03.10.38/2013-14 dated 01st July 2013. Accordingly, the Company in line with guidelines laid down the DNBS(PD)
CC.No. 347/30.10.038/2013-14 dated 01st July 2013 has provided 1% of the total loan portfolio outstanding as at 31st March 2018.
Classification of loan portfolio:

(`)
Loan Portfolio Loan Portfolio
Asset Classification
as on 31.03.2018 as on 31.03.2017
Less than 90 days 6,320,538,349 1,381,080,882
91 - 180 days 14,110,483 53,243,308
More than 180 days 5,437,248 2,154,914
Total loan assets / loan portfolio 6,340,086,080 1,436,479,104
Provisioning Norms for Loans:
(`)
Asset Classification RBI Norms As at March 31, 2018 As at March 31, 2017
Total loan assets / loan portfolio - A 1% of the 63,400,861 14,364,791
outstanding loan
portfolio
Provision for Non-performing assets 50% 2,850,493 5,312,593
(91-180 days)
Provision for Non-performing assets 100% 845,918 837,205
(> 180 days)
TOTAL PROVISION FOR NPA – B 36,96,411 61,49,798
Provision required - the higher of 63,400,861 14,364,791
A) or B)
Less: Provision for loan portfolio 14,364,791 6,806,625
already made
Provision made for the year ended 49,036,070 7,558,375
In addition to the above provision, the Company has provided 0.40% of the Loan Portfolio as Standard Asset provision
74
Note 28.5: Disclosure Pursuant to Reserve Bank of India Notification DNBS.200/CGM (PK)-2008 dated August-1- 2008
i) Capital to risk Assets ratio (CRAR) (computed as per the method prescribed by RBI)
(`)
Particulars As at March 31, 2018 As at March 31, 2017
Tier I Capital 1,159,550,617 616,191,852
Tier II Capital 83,018,946 64,365,000
Total Capital Funds 1,242,569,563 68,05,56,852

Total Risk Weighted Assets 6,620,690,512 1,533,754,137
CRAR - Tier I Capital (%) 17.51% 40.17%
CRAR - Tier II Capital (%) 1.25% 4.20%
CRAR (%) 18.77% 44.37%
All Fixed Deposits with Banks under lien against term loans availed by the Company. However, considering the converge of secured
loans by assets like book debts etc. the risk weighted with respect to fixed deposits with Banks has been considered as Zero.
ii) Exposure to Real Estate Sector (Direct & Indirect Exposure) – Nil (PY: Nil)
iii) Amount of Subordinated Debt raised as Tier II Capital – Nil (PY: `50000000)
iv) Exposure to Capital Markets – Nil (PY: Nil)

v) Ratings assigned during the year
a) MFI Grading – mfR3 rated by CRISIL Ratings (MFI Grading Scale – mfR1 Highest mfR8 Lowest)
b) Bank loan rating – CRISIL A/Stable rated by CRISIL Ratings ICRA A/Stable rated by ICRA Ratings
c) COCA Rating – SMERA C1
vi) Maturity Pattern of Assets and Liabilities

Maturity pattern of certain items of assets and liabilities as on March 31 2018 (Amount in ` )
(`)
Liabilities Assets

Particulars Borrowings Market Advances FD with Banks Investments
from Banks and Borrowings (Loan portfolio (Free of Lien)
others outstanding
Up to one month 928,098,820 - 332,730,736 - -
Over one month to 2 171,241,885
34,21,63,150 353,518,983 - -
months
Over 2 months up to 3 214,156,333 28,58,19,300 348,884,635 - 10,000,000
months
Over 3 months up to 6 622,379,919 - 1,088,879,813 - -
months
Over 6 months to 1 year 1,133,840,937 - 2,102,689,822 - -
Over 1 year to 3 years 1,860,813,068 - 2,113,382,091 - -
Over 3 years to 5 years 100,000,000 - - - -
Over 5 years - - - - 500,000
Total 5,030,530,963 627,982,450 6,340,086,0800 - 10,500,000
75
Note 28.6: Disclosures of frauds reported during the year vide DNBS PD.CC.No. 256 / 03.10.042 / 2011-12 dated March-02-2012
(`)
Less than 1 Lakh 1 - 5 Lakhs 5 - 25 Lakhs Total
No. of Value ` in No. of Value ` in No. of Value ` in No. of Value ` in
Accounts Lakhs Accounts Lakhs Accounts Lakhs Accounts Lakhs
A) Person involved 18 2.82 6 4.34 Nil Nil 24 7.16
Staff 18 2.82 6 4.34 Nil Nil 24 7.16
Customer 0 0 0 0 Nil Nil Nil Nil
Staff and Customer 0 0 0 0 Nil Nil Nil Nil
Total 18 2.82 6 4.34 Nil Nil 24 7.16
B) Type of fraud
Misappropriation and 12 2.44 1 4.34 Nil Nil 13 6.78
criminal breach
of trust
Fraudulent 2 0.38 0 0 Nil Nil 2 0.38
encashment /
Manipulation of books
of Accounts
Unauthorised credit 0 0 0 0 Nil Nil Nil Nil
facility extended
Cheating and forgery 0 0 0 0 Nil Nil Nil Nil
Total 14 2.82 1 4.34 Nil Nil 15 7.16
Note 28.7: Disclosure as required under DNBS (PD) CC. No. 300/03.10.038/2012-13 dated August-3-2012
The cap on margins (as defined by Malegam Committee) and in compliance with RBI circular RBI/2012-13/161 DNBS (PD)
CC.No.300 /03.10.038/2012-13 August-03-2012 is 9.09% as at March-31-2018 (9.22% as at March-31-2017).
Note 28.8: Merger with wholly owned Subsidiary:
Ayusha Dairy Private Limited (hereinafter referred to as the Company) is the Wholly Owned Subsidiary of Samasta Microfinance
Ltd. in which Samasta holds 100% of the equity capital of the Company. Since the operations in the Company had completely
stopped, it was proposed to merge the Company with its holding Company vide the Board Meeting dated 23.01.2018. The Scheme
of Amalgamation was also approved by the members of both the companies and Creditors of Samasta vide EGM and Creditors
Meetings dated 28.03.2018. Samasta -the Transferee Company has filed the application for merger with the Regional Director in
Form RD-1 on 04.04.2018 and approval is awaited on the same.
note 29: Earnings per Share
(`)
Profit after Tax (`) 25,829,713 8,089,888
Less : Dividend on preference shares and Dividend Distribution - 856,158
Tax
Net Profit available to equity share holders 25,829,713 7,233,730
Weighted Average Number of Equity Shares
- Basic 81,070,638 1,2,283,965
- Diluted 81,070,638 12,283,965
Earnings Per Share
- Basic 0.32 0.59
- Diluted 0.32 0.59
Face Value of Shares (`) 10 10
76
note30: Recognition of MAT Credit
The Company has availed and utilised the MAT credit of `13,42,390/- during the year (previous year : Nil). No MAT credit is
recognised during the year (previous year : `13,42,390).
note 31: Disclosure Pursuant to Reserve Bank of India Notification DNBS.193DG (VL) 2007 dated
February-22-2007:
(`)

As at March 31, 2018
Sl No. Particulars Amount Amount
Outstanding Overdue
Liabilities
(1) Loan and Advances availed by the NBFC inclusive of Interest accrued thereon
but not paid:
A Debentures - -
- Secured - -
- Unsecured - -
(Other than falling the meaning of Public Deposits) - -
B Deferred Credits - -

C Term Loan 3,729,944,097 -
D Inter-corporate Loans & Borrowings 944,739,325 -
E Commercial Paper 627,982,450 -
F Public Deposits - -
G Other Loans – Vehicle Loan 1,680,874 -
-Non-Convertible Debentures 354,166,667
(`)
Amount Outstanding
Sl No. Particulars

(2) Break-up of (1) (f) above (Outstanding public deposits inclusive of interest
accrued thereon but not paid)
(a) In the form of Unsecured debentures
(b) In the form of partly secured debentures i.e debentures where there is a shortfall
in the value of security
(c) Other public deposits
Assets
(3) Break-up of Loans & Advances including Bills Receivables [ Other than those
included in (4) below]
(a) Secured -
(b) Unsecured 6,340,086,080
(4) Breakup of Leased and Stock on Hire and other Assets counting towards AFC -
activities
(i) Lease assets including Lease rentals under sundry debtors: -
(a) Finance Lease -
(b) Operating Lease -
(ii) Stock on Hire including Hire Charges under sundry debtors: -
(a) Assets on Hire -
(b) Repossessed Assets -
(iii) Other Loans counting towards AFC Activities -
(a) Loans where assets have been repossessed -
(b) Loans other than (a) above -
77
note 31: Disclosure Pursuant to Reserve Bank of India Notification DNBS.193DG (VL) 2007 dated 22nd
February 2007:(contd.)
(`)
Amount Outstanding
Sl No. Particulars
(5) 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 -
II Unquoted: -
(i) Shares: -
(a) Equity -
(b) Preference -
(iv) Government Securities
(v) Others
Long term Investments -
I Quoted: -
(i) Shares: -
(a) Equity -
(b) Preference -
(v) Others -
II Unquoted: -
(i) Shares: -
(a) Equity 10,500,000
(b) Preference -
(v) Others -
(6) Borrower Group wise classification of Assets Financed as in (3) and (4) above
(`)
Sl No. Particulars Amount in (`) (Net of Provisions)
Secured Unsecured Total
1 Related Parties
(a) Subsidiaries - - -
(b) Companies in the same group - - -
(c) Other Related Parties - - -
2 Other than related parties - 6,276,685,219 6,276,685,219
Total - 6,276,685,219 6,276,685,219
78
note 31: Disclosure Pursuant to Reserve Bank of India Notification DNBS.193DG (VL) 2007 dated 22nd
(7) Investor Group-wise classification of all investments (Current and Long Term) in Share and Securities
(both Quoted and Unquoted):
(`)
Market Value
/ Breakup value
Sl No. Category

or Fair Value or
Net Assets Value Book Value
1 Related Parties
(a) Subsidiaries - 10,000,000
(b) Companies in the same group - -
(c) Other Related Parties - -
2 Other than related parties - 500,000
Total - 10,500,000
(8) Other Information Amount

(i) Gross Non - Performing Assets
(a) Related Parties -

(b) Other than related parties 19,547,731
(ii) Net Non - Performing Assets
(b) Other than related parties -
(iii) Assets acquired in Satisfaction of Debt -
note 32: The Company has not disbursed any loan against security of gold.
note 33: Details of average interest paid on borrowings and charged on loans given to JLGs

(`)
Particulars Rate of Interest in % Rate of Interest in %
for Microfinance loan for Microfinance loan
Average Rate of Interest on Borrowings 13.48% 15.19%
Average Rate of Interest on Loans given 22.60% 24.41%
Net Interest Margin 9.12% 9.22%
note 34: Securitization / Assignment of Loans
During the year, the Company has sold loans through direct Securitization / assignments. The information on direct assignment
activity of the Company as an Originator / Assignor is as shown below:
(`)
Particulars
2018 2017
Total number of loans securitized / assigned 40,268 23,917
Total book value of loans securitized / assigned 811,119,735 231,599,843
Sale consideration received for loans securitized / assigned 742,310,050 253,816,937
Income recognised in the statement of profit and loss 24,535,040 29,642,588
Balance of loans assigned / securitized as at the balance sheet date 452,660,769 175,687,865
Cash collateral provided and outstanding as at the balance sheet date 52,486,646 24,089,612
79
Notes forming part of Standalone Financial Statements for the Year ended March 31, 2018 (Contd.)
note 34: Securitization / Assignment of Loans(contd.)
Disclosure to be made under Securitization guidelines issued by Reserve Bank of India vide policy no. DNBS. PD.
No. 301/3.10.01/2012-13 dated August - 21- 2012.
(`)
Sl No. Particulars
2018 2017
1 No. of SPVs sponsored by the NBFC for Securitization transactions 2 3
2 Total amount of securitized assets as per the books of the SPVs sponsored by 811,119,735 231,599,843
the Company
3 Total amount of exposures retained by the Company to comply with MRR as on - -
the date of balance sheet
i) Off-Balance Sheet exposures
a) First Loss - -
b) Others - -
ii) On-Balance Sheet exposures
a) First Loss (in the form of Fixed Deposit) 52,486,646 24,089,612
b) Others - -
4 Amount of exposures to securitization transactions other than MRR
a) Exposure to own securitization
First Loss - -
Others - -
b) Exposure to third party securitization transaction - -
First Loss
Others - -
ii) On-Balance Sheet exposures - -
First Loss - -
Others - -
b) Exposure to third party securitization transaction
First Loss - -
Others - -
note 35: Previous year Figures
Previous year’s figures have been reclassified to conform with the current year’s classification / presentation wherever applicable.
Firm No. 005917S
M. No. 014353 DIN : 01018821 DIN : 02216802
T. Anantha Kumar K. J. Sutheja

Place: Bangalore Chief Financial Officer Company Secretary
80
Annual Report 2017-18 Consolidated Financial Statements
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF SAMASTA MICROFINANCE LIMITED material misstatement.
Report on the Consolidated Financial Statements An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the consolidated financial
We have audited the accompanying consolidated financial
statements. The procedures selected depend on the auditor’s
statements of SAMASTA MICROFINANCE LIMITED (“the Holding
judgment, including the assessment of the risks of material
Company”) its subsidiary (Ayusha Dairy Pvt Ltd), which comprise
misstatement of the consolidated financial statements, whether
the Consolidated Balance Sheet as at March 31, 2018 and the
due to fraud or error. In making those risk assessments, the
Consolidated Statement of Profit and Loss and Consolidated

auditor considers internal financial control relevant to the Holding
Cash Flow Statement for the year then ended, and a summary of
Company’s preparation of the consolidated financial statements
significant accounting policies and other explanatory information.
that give true and fair view in order to design audit procedures
Management’s Responsibility for the Consolidated that are appropriate in the circumstances. An audit also includes
Financial Statements evaluating the appropriateness of accounting policies used and
The Holding Company’s Board of Directors is responsible for the the reasonableness of the accounting estimates made by the
matters in section 134(5) of the Companies Act, 2013 (“the Act”) Holding Company’s Directors, as well as evaluating the overall
with respect to the preparation of these consolidated financial presentation of the financial statements.
statements that give a true and fair view of the consolidated We believe that the audit evidence we have obtained is sufficient
financial position, consolidated financial performance and and appropriate to provide a basis for our audit opinion on the

consolidated cash flows of the Company in accordance with the consolidated financial statements.
accounting principles generally accepted in India, including the
Opinion
Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014. In our opinion and to the best of our information and according
to the explanations given to us, the consolidated financial
This responsibility also includes the maintenance of adequate
statements give the information required by the Act in the
accounting records in accordance with the provision of the Act
manner so required and give a true and fair view in conformity
for safeguarding of the assets of the Company and for preventing
with the accounting principles generally accepted in India:
and detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments a) In the case of the Consolidated Balance Sheet, of the state of

and estimates that are reasonable and prudent; and design, affairs of the Company as at March 31, 2018;
implementation and maintenance of adequate internal financial
b) In the case of the Consolidated Statement of Profit and Loss
control, that were operating effectively for ensuring the accuracy
Account, of the profit for the year ended on that date; and
and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that c) In the case of the Consolidated Cash Flow Statement, of the
give a true and fair view and are free from material misstatement, cash flows for the year ended on that date.
whether due to fraud or error. Report on Other Legal and Regulatory Requirements
Auditors’ Responsibility 1. As required by section 143(3) of the Act, we report that:
Our responsibility is to express an opinion on these consolidated a) We have sought and obtained all the information and
financial statements based on our audit. explanations which to the best of our knowledge and
We have taken into account the provisions of the Act, the belief were necessary for the purposes of our audit.
accounting and auditing standards and matters which are b) In our opinion proper books of account as required by
required to be included in the audit report under the provisions law have been kept by the Company so far as appears
of the Act and the Rules made thereunder. from our examination of those books.
We conducted our audit in accordance with the Standards c)
The Consolidated Balance Sheet, the consolidated
on Auditing specified under section 143(10) of the Act. Those Statement of Profit and Loss and the consolidated
Standards require that we comply with ethical requirements and Cash Flow Statement dealt with by this Report are in
plan and perform the audit to obtain reasonable assurance about agreement with the books of account.
whether the consolidated financial statements are free from
81
INDEPENDENT AUDITORS’ REPORT (contd.)
d) In our opinion, the aforesaid consolidated financial the Companies (Audit and Auditors) Rules, 2014, in
statements comply with the Accounting Standards our opinion and to the best of our information and
specified under Section 133 of the Act, read with according to the explanations given to us:
Rule 7 of the Companies (Accounts) Rules, 2014 and
i.
The Company does not have any pending
the Companies (Accounting Standards) Amendment
litigations which would impact its financial
Rules, 2016.
position.
e)
On the basis of written representations received
ii.
The Company did not have any long-term
from the directors as on 31st March, 2018, taken on
contracts including derivatives contracts for
record by the Board of Directors, none of the directors
which there were any material foreseeable
is disqualified as on 31st March, 2018, from being
losses; and
appointed as a director in terms of Section 164(2) of
the Act. iii. There were no amounts which required to be
transferredtotheInvestorEducationandProtectionFundbythe
f ) With respect to the adequacy of the internal financial
Company.
controls over financial reporting of the company and
the operating effectiveness of such controls, refer to
our separate report in ‘Annexure-A’ Firm No: 005917S
g) With respect to the other matters to be included in H V Gowthama

the Auditor’s Report in accordance with Rule 11 of Date: April 26, 2018 Partner
82
ANNEXURE-A
TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL STATEMENTS OF
SAMASTA MICROFINANCE LIMITED
Report on the Internal Financial Controls under We believe that the audit evidence we have obtained is sufficient
Clause (i) of Sub-section 3 of Section 143 of the and appropriate to provide a basis for our audit opinion on
Companies Act, 2013 (“the Act”) the Company’s internal financial controls system over financial
reporting.
In conjunction with our audit of the consolidated financial
statements of the company as of and for the year ended March Meaning of Internal Financial Controls Over
31, 2018, we have audited the internal financial controls over Financial Reporting
financial reporting of Samasta Microfinance Limited (“the Holding
Company”) and its subsidiary company, which are company A company’s internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the

incorporated in India, as of that date.
reliability of financial reporting and the preparation of financial
Management’s Responsibility for Internal statements for external purposes in accordance with generally
Financial Controls accepted accounting principles. A company’s internal financial
control over financial reporting includes those policies and
The Company’s management is responsible for establishing procedures that
and maintaining internal financial controls based on essential
components such as the control environment, the entity’s (1) Pertain to the maintenance of records that, in reasonable
risk assessment process, control activities, Information system detail, accurately and fairly reflect the transactions and
and communication and the monitoring of such controls. dispositions of the assets of the company;
These responsibilities include the design, implementation and (2) Provide reasonable assurance that transactions are recorded
maintenance of adequate internal financial controls that were as necessary to permit preparation of financial statements in
operating effectively for ensuring the orderly and efficient conduct accordance with generally accepted accounting principles,

of its business, including adherence to company’s policies, the and that receipts and expenditures of the company are being
safeguarding of its assets, the prevention and detection of frauds made only in accordance with authorisations of management
and errors, the accuracy and completeness of the accounting and directors of the company; and
records, and the timely preparation of reliable financial information,
as required under the Companies Act, 2013. (3) Provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of
Auditors’ Responsibility the company’s assets that could have a material effect on the
financial statements.
Our responsibility is to express an opinion on the Company’s
internal financial controls over financial reporting based on our Inherent Limitations of Internal Financial
audit. We conducted our audit in accordance with the Guidance Controls Over Financial Reporting
Note on Audit of Internal Financial Controls Over Financial

Reporting (the “Guidance Note”) and the Standards on Auditing, Because of the inherent limitations of internal financial controls over
issued by ICAI and deemed to be prescribed under section 143(10) financial reporting, including the possibility of collusion or improper
of the Companies Act, 2013, to the extent applicable to an audit of management override of controls, material misstatements due to
internal financial controls, both applicable to an audit of Internal error or fraud may occur and not be detected. Also, projections
Financial Controls and, both issued by the Institute of Chartered of any evaluation of the internal financial controls over financial
Accountants of India. Those Standards and the Guidance Note reporting to future periods are subject to the risk that the internal
require that we comply with ethical requirements and plan and financial control over financial reporting may become inadequate
perform the audit to obtain reasonable assurance about whether because of changes in conditions, or that the degree of compliance
adequate internal financial controls over financial reporting with the policies or procedures may deteriorate.
was established and maintained and if such controls operated
Opinion
effectively in all material respects.
In our opinion, the Holding Company and its subsidiary company,
Our audit involves performing procedures to obtain audit evidence
which are incorporated in India have in all material respects, an
about the adequacy of the internal financial controls system over
adequate internal financial controls system over financial reporting
financial reporting and their operating effectiveness. Our audit
and such internal financial controls over financial reporting were
of internal financial controls over financial reporting included
operating effectively as at March 31, 2018, based on essential
obtaining an understanding of internal financial controls over
components such as the control environment, the entity’s risk
financial reporting, assessing the risk that a material weakness
assessment process, control activities, Information system and
exists, and testing and evaluating the design and operating
communication and the monitoring of such controls.
effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgement, For Gowthama & Company
including the assessment of the risks of material misstatement of Firm No: 005917S
the financial statements, whether due to fraud or error.
H V Gowthama
Date: April 26, 2018 Partner
83
Consolidated Balance Sheet

as at March 31, 2018
(`)
Note As at March 31, As at March 31,
Particulars
No. 2018 2017
I EQUITY AND LIABILITIES
(1) Shareholders’ funds
(a) Share Capital 2 1,113,446,110 613,446,110
(b) Reserve and Surplus 3 56,350,753 32,587,905
1,169,796,863 646,034,015
(2) Share application money pending allotment - -
(3) Non-Current Liabilities
(a) Long-term borrowings 4 1,956,414,608 682,670,317
(b) Other Long-term liabilities - -
(c) Long-term provisions 5 101,134,630 23,557,225
2,057,549,239 706,227,542
(4) Current Liabilities
(a) Short-term borrowings 6 1,376,602,650 -
(b) Trade payables 7 30,628,874 81,485,650
(c) Other current liabilities 8
-Current maturities of long term borrowings 2,129,377,029 783,637,803
-Others 603,205,036 38,470,193
(d) Short-term provisions 9 38,781,207 3,400,000
4,178,594,796 906,993,646
Total 7,405,940,899 2,259,255,204
II ASSETS
(1) Non-current assets
(a) Fixed assets 10
(i) Tangible assets 44,504,269 21,315,419
(ii) Intangible assets 925,026 725,220
(iii) Capital work-in-progress - -
(iv) Intangible assets under development - -
45,429,296 22,040,639
(b) Non-current investments 11 500,000 500,000
(c) Deferred tax assets (Net) 12 24,663,572 4,787,015
(d) Long-term loans & advances 13
-Loans 2,113,382,091 369,165,027
-Others - -
(e) Other non-current assets 14 336,048,074 160,595,639
2,474,593,737 535,047,681
(2) Current assets
(a) Current investments 10,216,998 9,746,942
(b) Inventories - -
(c) Trade receivables 15 37,916,290 12,310,485
(d) Cash and Bank balances 16 459,765,224 561,701,052
(e) Short-term loans & advances 17
-Loans 4,226,703,989 1,067,314,077
-Others 60,311,529 4,198,856
(f ) Other current assets 18 91,003,836 46,895,471
4,885,917,866 1,702,166,883
Total 7,405,940,899 2,259,255,204
Significant Accounting Policies and Notes to Accounts 1
Firm No. 005917S

M. No. 014353 DIN : 01018821 DIN : 02216802

84
Consolidated Statement of Profit and Loss

(`)
Note Year ended Year ended
Particulars
No March 31, 2018 March 31, 2017
Revenue
(A) Revenue from Operations 19 959,805,592 320,382,354
(B) Other Income 20 8,496,012 10,420,076
(C) Total Revenue (A+B) 968,301,603 330,802,429
(D) Expenses
a) Employee benefits expenses 21 280,081,104 112,174,370

b) Finance costs 22 313,024,282 146,308,160
c) Depreciation and amrotisation expenses 10 13,081,181 4,580,939
d) Administrative and Other expenses 23 122,902,087 50,450,581
e) Provisions / write off receivables under 24 197,581,185 10,517,255
financial activity
Total Expenses (D) 926,669,839 324,031,304
(E) Profit for the year before tax (C-D) 41,631,765 6,771,125
(F) Tax expenses
(a) Current tax 36,500,000 1,600,000
(b) Deferred tax 12 (19,876,557) (1,963,203)
(c) MAT credit availed and utilised 1,342,390 (1,342,390)
(d) Taxes for earlier years (96,917) -
Total tax expense (F) 17,868,916 (1,705,593)
(G) Profit for the year after tax (E-F) 23,762,849 8,476,718

(H) Profit for the period from continuing 23,762,849 8,476,718
operations
(I) Loss for the period from discontinuing - -
operations
(J) Tax expense of discontinuing operations - -
(K) Profit from discontinuing operations - -
(after tax) (I-J)
(L) Profit for the period ( H+K) - -
(M) Earnings per Equity Share (Face value of
`10/- each):
(a) Basic 0.29 0.62
(b) Diluted 0.29 0.62

Significant accounting policies and notes to the accounts 1
Firm No. 005917S

M. No. 014353 DIN : 01018821 DIN : 02216802

85
Consolidated Cash Flow Statement

(`)
Particulars
March 31, 2018 March 31, 2017
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Tax 41,631,765 6,771,125
Adjustments for:
Depreciation 13,081,181 4,580,939
Dividend on Mutual funds (470,332) (7,259,028)
Short Term Capital Gain (4,851,909) -
Provisions for Standard and Non Performing Assets 49,045,000 7,558,375
Bad Debts Written Off 123,136,185 2,958,880
Interest on Fixed Deposits (18,603,421) (13,081,047)
Interest on Income Tax 1,509,368 -
Loss on sale of Fixed assets - 87,965
Operating Profit before Working Capital Changes A 204,477,835 1,617,209
Working Capital Changes:
(Increase) / Decrease in trade and other receivables (25,605,805) (564,901,720)
(Increase) / Decrease in Short term loans and advances (3,215,502,585) (10,713,666)
(Increase) / Decrease in Other Current Assets (44,108,365) (4,149,697)
(Increase) / Decrease in Loans & Advances (1,916,398,248) (190,884,377)
(Increase) / Decrease in Other Non- Current Assets (161,565,144) (42,295,385)
Increase / (Decrease) in Long term Liabilities 2,026,531,224 (339,701,975)
Increase / (Decrease) in long term provisions 75,977,405 (1,579,164)
Increase / (Decrease) in Short term provisions
Increase / (Decrease) in Other current liabilities (1,657,143,666) 403,125,789
Increase / (Decrease) in trade payables (50,856,776) -
Changes in Working Capital B (4,968,671,960) (751,100,195)
Cash generated from operations A+B (4,764,194,125) (749,482,986)
Income taxes paid (16,932,764) (7,980,680)
Net cash from operating activities (4,781,126,888) (757,463,666)
CASH FLOW FROM INVESTING ACTIVITIES
Sale of Fixed Assets 29,731 590,500
Dividend from Mutual Funds 470,332 7,259,028
Short Term Capital Gain 4,851,909
Investment in Mutual Funds (470,055) (9,746,942)
Purchase of Fixed Assets (36,499,570) (16,426,835)
Interest on Fixed Deposits 18,603,421 13,081,047
Net Cash used in Investing activities (13,014,231) (5,243,202)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of Equity Share Capital 500,000,000 500,000,000
Redemption of Preference Share Capital - -
Proceeds from Borrowings 6,397,227,364 1,361,286,036
Repayment of Borrowings (2,205,022,072) (665,604,845)
Dividends paid (including DDT) - (1,939,376)
Net cash used in financing activities 4,692,205,292 1,193,741,815
Net increase in cash and cash equivalents (101,935,828) 431,034,947
Cash and cash equivalents as at 01-April-2017 561,701,052 130,666,105
Cash and cash equivalents as at 31-March-2018 459,765,224 561,701,052
The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard -3 on Cash Flow Statement.
Firm No. 005917S

M. No. 014353 DIN : 01018821 DIN : 02216802

86
Notes forming part of Consolidated Financial Statements as at March 31, 2018
note 1 : Significant Accounting Policies & Notes value and are determined based on best estimate required
forming part of the Consolidated to settle the obligation at the Balance Sheet date. These are
Financial Statements: reviewed at each Balance Sheet date and adjusted to reflect
the current best estimates.
1. Basis of Preparation:
A contingent liability is a possible obligation that arises
The financial statements of the Company have been prepared from past events whose existence will be confirmed by the
in accordance with Generally Accepted Accounting Principles occurrence or non-occurrence of one or more uncertain
in India (Indian GAAP) to comply with the Accounting future events beyond the control of the Company or a

Standard specified under section 133 of the Companies Act, present obligation that is not recognised because it is not
2013, read with Rule 7 of the Companies (Accounts) Rules, probable that an outflow of resources will be required to
2014 and the relevant provisions of the Companies Act, 2013 settle the obligation. A contingent liability also arises in
(“the 2013 Act”)/Companies Act 1956, (“the 1956 Act”), as extremely rare cases where there is a liability that cannot be
applicable. The financial statements have been prepared on recognised because it cannot be measured reliably.
accrual basis and the directions issued by the Reserve Bank of
India (RBI) to the extent applicable to the Company. The Company does not recognise a contingent liability but
discloses its existence in the financial statements.
The Company follows the prudential norms for Income
recognition, asset classification and provisioning as 5. Income Taxes and Deferred Taxes:
prescribed by the RBI for Non-deposit taking Non-Banking Current tax is the amount of tax payable on the taxable
Financial Companies (NBFC-MFI).

income for the year as determined in accordance with the
2. Use of Accounting Estimates: provisions of the Income Tax Act, 1961.
The presentation of financial statements in conformity with Deferred tax is recognised, on timing difference, being
Indian Generally Accepted Accounting Principles requires the difference between taxable income and accounting
management to make estimates and assumptions that income that originate in one period and are capable of
affect the reported amounts of assets and liabilities and reversal in one or more subsequent periods. Deferred tax
disclosure of contingent assets and liabilities at the date of assets are recognised only if there is virtual certainty that
the financial statements and reported amounts of revenues they will be realised and are reviewed every year. The tax
and expenses during the reporting period. Although such effect is calculated on the accumulated timing differences
estimates are made on a reasonable and prudent basis at the end of the year based on enacted or substantially

taking into account all available information, actual results enacted tax rates.
could differ from those estimates. 6. Tangible fixed assets:
2. Cash flow statement: All fixed assets are stated at historical cost less accumulated
The Cash Flow are reported using the indirect method, depreciation and impairment losses, if any. Cost comprises
whereby profit / (loss) before tax is adjusted for the effects of the purchase price and any attributable cost of bringing the
transactions of non-cash nature and any deferrals or accruals asset to its working condition for its intended use.
of past or future cash receipts or payments. The cash flows 7. Intangible assets:
from operating, investing and financing activities of the
Computer software are stated at the cost of acquisition and
Company are segregated based on available information.
are amortised over a period of five years, based on expected
3. Cash and cash equivalents: future economic benefits accruing to the Company from
Cash and cash equivalents for the purpose of cash flow the year of acquisition.
statement comprise cash in hand and cash at bank and 8. Depreciation & Amortisation:
short-term investments with an original maturity of three
Depreciable amount for assets is the cost of an asset, or
months or less.
other amount substituted for cost, less its estimated residual
4. Provisions and contingent liabilities: value.
A provision is recognised when the Company has a present Depreciation on tangible fixed assets has been provided on
legal or constructive obligation as a result of past events and the straight-line method as per the useful life prescribed in
it is probable that an outflow of resources will be required Schedule II to the Companies Act, 2013 The useful life of the
to settle the obligation, in respect of which reliable estimate
can be made. Provisions are not discounted to their present
87
Notes forming part of Consolidated Financial Statements as at March 31, 2018 (Contd.)
assets is as under: and 100% of the aggregate loan installments which

are overdue for 180 days or more
Category of Assets Useful Life
In addition to the above provision, the Company has
Furniture and Fixtures 10 years
provided 0.40% of the Loan Portfolio as Standard Asset
Office Equipment 5 years
provision.
Vehicles 8 years
12. Trade receivables under Financing Activity:
Computers 3 years
Trade receivables under financing activity include Income
Intangible assets are amortised over their estimated useful
Generating Loan, Dairy Cow Loan / Cattle Loan, Water
life as follows:
Purifier Loan, Solar Products Loan and Individual Loan.
Software - 3 Years Loans are classified into ‘Performing and Non- Performing
Servers & Networks - 6 Years assets in terms of the Non-Banking Financial Companies
Prudential Norms (Reserve Bank) Directions, 1998 and
Individual assets costing less than ` 5,000 each are
NBFC-MFI Directions (as applicable) issued by the Reserve
depreciated fully in the year of purchase.
Bank of India as amended from time to time.
10. Investments:
13. Revenue Recognition:
Investments which are long term in nature are stated at cost
a) Revenue from Interest on loans financed by the
with provisions where necessary for diminution, other than
Company is recognised on accrual basis, considering
temporary, in the value of Investment.
the directions issued by the Reserve Bank of India
Investments, which are readily realisable and intended to be from time to time in terms of the Non Banking
held for not more than one year from the date on which such Financial Companies Prudential Norms (Reserve Bank)
investments are made, are classified as current investments. Directions, 1998.
All other investments are classified as long-term investments. b) Interest income on Fixed Deposits with Banks is
Current investments are carried in the financial statements recognised on a time proportion basis taking into
at lower of cost and fair value determined on an individual account the amount outstanding and the rate
investment basis except for investments in the units of applicable.
mutual funds in the nature of current investments that have
c) Processing fee is recognised as and when collected at
been valued at the net asset value declared by the mutual
the time of loan disbursement.
fund in respect of each particular scheme, in accordance
d) Dividend income from investments in mutual fund is
with the NBFC directions. Long-term investments are
recognised when the right to receive is established.
carried at cost. However, provision for diminution in value
is made to recognise a decline other than temporary in e) Facilitation fee is recognised on accrual basis according
the value of the investments. On disposal of an investment to the terms of agreement.
the difference between carrying amount and net disposal f ) Profit/Premium arising at the time of securitisation
proceeds are charged or credited to the statement of profit of loan portfolio is amortised over the life of the
and loss. underlying loan/portfolio/securities and loss arising
thereon is accounted immediately.
11. Classification & Provisions of Loan Portfolio:
g) All other income is recognised on an accrual basis,
Loans are classified and provided as per norms required
when there is no uncertainty in the ultimate realisation
in Non-Banking Financial (Non-Deposit Accepting)
/ collection.
Companies Prudential Norms (Reserve Bank) Directions,
2007, as amended from time to time. 14. Borrowing Costs:
The Company has got classified as NBFC-MFI and Borrowing costs attributable to qualifying assets (assets
accordingly has provided its provisioning norms for loan which require substantial period of time to get ready for
portfolio vide RBI circular dated December 02, 2011 as their intended use) are capitalised as part of the cost of such
amended vide circular dated March 20, 2012. According to assets. All other borrowing costs are charged to revenue.
which the provision will be higher of: 15. Earnings per Share:
a) 1% of the outstanding loan portfolio or Basic and diluted earnings per share are computed in
b) 50% of the aggregate loan installments which are accordance with Accounting Standard (AS)-20 – Earnings
overdue for more than 90 days and less than 180 days per share. In determining the Earning per share, the
88
Company considers the Net Profit after Tax. The number recoverable amount. An asset’s recoverable amount is the
of Shares used in computing Basic Earning per share higher of an asset’s net selling price and its value in use.
is number of share outstanding during the period. The The recoverable amount is determined for an individual
number of shares used in computing diluted earnings per asset, unless the asset does not generate cash inflows
share comprises the weighted average shares considered that are largely independent of those from other assets or
for deriving basic earnings per share and also the weighted groups of assets. Where the carrying amount of an asset
average number of equity shares that could have been exceeds its recoverable amount, the asset is considered
issued on the conversion of all dilutive potential equity impaired and is written down to its recoverable amount. In

shares. assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
16. Employee Benefits:
rate that reflects current market assessments of the
a) Short Term Employee Benefits: time value of money and the risks specific to the asset. In
All employee benefits falling due wholly within twelve determining net selling price, recent market transactions
months of rendering the services are classified as short are taken into account, if available. If no such transactions
term employee benefits, which include benefits like can be identified, an appropriate valuation model is used.
Salary, Allowances and Incentives, and are recognised 18. Leases:
as expenses in the period in which the employee
Leases where the lessor effectively retains, substantially all
renders the related service.
the risks and benefits of ownership of the leased item, are

b) Post- employment Benefits: classified as operating leases. Operating lease payments are
Defined Contribution Plans: recognised as an expense in the statement of profit and
The Company’s contributions to provident fund are loss on a straight-line basis over the lease term.
considered as defined contribution plans and are 19. Foreign Currency Transactions:
charged as an expense as they fall due based on the
I. All transactions in foreign currency are recognised
amount of contribution required to be made
at the exchange rate prevailing on the date of the
Defined Benefit Plans: transaction.
For defined benefit plans in the form of gratuity, II. Foreign currency monetary items are reported using
the cost of providing benefits is determined using the exchange rate prevailing at the close of the

the Projected Unit Credit method, with actuarial financial year.
valuations being carried out at each Balance Sheet
III. Exchange differences arising on the settlement of
date. Actuarial gains and losses are recognised in the
monetary items or on the restatement of Company’s
Statement of Profit and Loss in the period in which
monetary items at rates different from those at which
they occur. Past service cost is recognised immediately
they were initially recorded during the year, or reported
to the extent that the benefits are already vested
in previous financial statements, are recognised as
and otherwise is amortised on a straight-line basis
income or as expenses in the year in which they arise.
over the average period until the benefits become
vested. The retirement benefit obligation recognised 20. General:
in the Balance Sheet represents the present value
Any other accounting policy not specifically referred to are
of the defined benefit obligation as adjusted for
consistent with generally accepted accounting principles.
unrecognised past service cost.
17. Impairment:
The Company assesses at each reporting date whether

there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing
for an asset is required, the Company estimates the asset’s
89
NOTE 2. Share Capital
(`)
Particulars
2018 2017
Authorised :
113,000,000 (Previous year 63,000,000 Equity Shares of ` 10/- each) Equity Shares of 1,130,000,000 630,000,000
` 10/- each
2,000,000 (Previous year 2,000,000 Preference Shares of ` 10/- each) Preference Shares 20,000,000 20,000,000
of ` 10/- each
Total 1,150,000,000 650,000,000
Issued, Subscribed and Paid-up share capital
111,344,611 (Previous year : 61,344,611 shares) Equity Shares of ` 10/- each fully paid-up 1,113,446,110 613,446,110
- -
Total 1,113,446,110 613,446,110
i) Reconciliation of the number of shares outstanding at the beginning and at the end of the year:
(` in Millions)
2018 2017
Equity Shares:
Number of shares at the beginning of the year 61,344,611 10,470,000
Add: Equity shares issued during the year 50,000,000 50,874,611
Number of shares at the end of the year 111,344,611 61,344,611
Preference Shares:
Number of shares at the beginning of the year - 1,000,000
Add: Preference shares issued during the year - -
Less: Preference shares converted during the year - 1,000,000
Number of shares at the end of the year - -
ii) Number of shares held by each shareholder holding more than 5% shares in the Company are as follows:
Class of shares / Name of the shareholder
(`)
2018 2017
Particulars
Number of Number of
shares shares
Equity Shares:
India Infoline Finance Limited 108,417,631 58,417,631
Total 108,417,631 58,417,631
iii) Terms / rights attached to Equity Shares:

The Company has Equity Shares having par value of ` 10/- per share. Each holder of Equity Shares is entitled to one vote per
share. Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors
subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company,
the holders of Equity Shares will be entitled to receive any of the remaining assets of the company, after distribution of all
preferential amounts.
iv) Terms / rights attached to Preference Shares:
a) Rights/preferences attached to Preference Shares
The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the
ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share only on resolutions
placed before the Company which directly affect the rights attached to the said shares. In the event of liquidation of the
Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in
90
the payment of dividend and repayment of capital and premium thereon but shall not be entitled to any surplus arising
thereto.
Note 3. Reserve and Surplus
(`)
Particulars
2018 2017
Securities Premium Reserve

Opening balance 1,253,890 -
Addition during the year - 1,253,890
Closing balance 1,253,890 1,253,890
Special Reserve
Opening balance 7,757,977 6,132,977
Addition during the year 5,173,000 1,625,000
Closing balance 12,930,977 7,757,977
Surplus / (Deficit) in Statement of Profit and Loss

Opening balance 23,576,038 17,580,478
Addition: Profit for the year 23,762,849 8,476,718
Less: Appropriations
Dividend on Preference Shares - 729,863
Dividend Distribution Tax - Preference Shares - 126,295
Special Reserve* 5,173,000 1,625,000
Closing balance 42,165,886 23,576,038
Total 56,350,753 32,587,905
*As required by Section 45 1C of Reserve Bank of India Act, 1934.

note 4. Long-term borrowings
(`)
Particulars
2018 2017
Secured Loans
a) Term Loans - Secured
1) From Banks (Refer Note 4.1) 1,586,950,435 247,656,453
2) From Other Parties (Refer Note 4.1) 168,354,898 246,197,121
b) Non-Convertible Debentures - Secured (Refer Note 4.1) 150,000,000 137,500,800
c) Non-Convertible Debentures - Unsecured (Refer Note 4.1) - Tier II Capital 50,000,000 50,000,000
d) Vehicle Loans - Unsecured
Total 1,956,414,608 682,670,317
91
92
(`)
Bank of Maharashtra Rate of Interest - Base rate + 4.50%, Hypothecation of book debts, cash 2,749,137 - 10,920,000 2,874,738
Bank of Maharashtra Rate of Interest - Base rate + 4.50%, Hypothecation of book debts, cash 13,344,000 14,734,476 13,344,000 28,255,787
Bank of Maharastra Rate of Interest 1Y Hypothecation of book debts and 25,008,000 75,100,042
MCLR+0.25%+0.95%,loan cash collateral
installaments
Bank of Baroda Rate of Interest 1Y Hypothecation of book debts and 150,300,000 349,700,000
monthly installments for BOB
Canara Bank Rate of Interest - Base rate + 3.00%, Hypothecation of book debts, cash 5,000,000 - 10,000,000 5,000,000
loan repayable in 12 quarterly collateral and personal guarantee of
Corporation Bank Rate of Interest - Base rate + 2.10%, Hypothecation of book debts - -
loan repayable in 12 quarterly and personal guarantee of Mr. N.
installments. Venkatesh, Director.
Dena Bank Rate of Interest 1Y Hypothecation of book debts and 18,181,824 24,340,709 - -
Indian Bank Rate of Interest - Base rate + 3.80%, Hypothecation of book debts, cash 5,819,882 -
Indian Bank Rate of Interest - Base rate + 3.80%, Hypothecation of book debts, cash 9,166,675 1,044,075 9,999,996 10,380,872
Kaveri Grameena Rate of Interest - 14.25%, Hypothecation of book debts, cash 12,646,933 -

Kaveri Grameena Rate of Interest - 13.75%, Hypothecation of book debts, cash - - 16,666,680 17,042,654
Lakshmi Vilas Bank Rate of Interest - Base rate + 2.25%, Hypothecation of book debts and 18,821,491 1,427,645 16,396,547 20,273,934
installments.
Lakshmi Vilas Bank Rate of Interest - 12.55% loan Hypothecation of book debts and 6,666,672 6,111,104 6,666,672 12,777,772
repayable in 33 monthly installments. cash collateral
(`)
Lakshmi Vilas Bank Rate of Interest - MCLR + 0.15%, Hypothecation of book debts and 12,500,001 37,499,999
installments.
Lakshmi Vilas Bank Rate of Interest - MCLR + 0.15%, Hypothecation of book debts 62,499,999 187,500,001
loan repayable in 39 monthly
installments.
Pallavan Grama Bank Rate of Interest - 14.00%, Hypothecation of book debts, cash - - 3,448,663 -
Pallavan Grama Bank Rate of Interest - 14.00%, Hypothecation of book debts, cash 12,415,340 - 11,259,481 12,413,177
Pallavan Grama Bank Rate of Interest - 14.00%, Hypothecation of book debts, cash 3,865,058 2,532,763 3,367,499 6,476,080
Ratnakar Bank Ltd. Rate of Interest - 13.50% loan Hypothecation of book debts, cash 11,428,571 - 22,857,143 11,428,571
Ratnakar Bank Ltd. Rate of Interest 1Y Hypothecation of book debts 125,000,000 93,750,000
MCLR+0.50%,loan repayable in 24
South Indian Bank Rate of Interest - Base rate + 3.70%, Hypothecation of book debts, cash 3,334,000 - 3,636,000 3,334,000
installments. Mr. N. Venkatesh, Mr. D. Shivaprakash,
& Mr. R.C. Shekar Director.
South Indian Bank Rate of Interest - Base rate + 3.70%, Hypothecation of book debts, cash 3,334,000 3,636,000 3,334,000
installments. Mr. N. Venkatesh, Mr. D. Shivaprakash,
& Mr. R.C. Shekar Director.
Consolidated

State Bank of India Rate of Interest - 12.25%loan Hypothecation of book debts and 40,000,000 13,810,441 40,000,000 54,261,539
installments.
State Bank of India Rate of Interest - 11.30%loan Hypothecation of book debts and 120,000,000 162,798,685
installments.
93

94
(`)
State Bank Rate of Interest 1Y Hypothecation of book debts and 33,333,336 59,170,259 - -
(Mauritius) Ltd MCLR+2.00%,loan repayable in 39 cash collateral.
State Bank of Mysore Rate of Interest - Base rate + 2.25%, Hypothecation of book debts, cash 1,330,378 - 10,909,200 2,321,689
State Bank of Patiala Rate of Interest - Base rate + 3.50%, Hypothecation of book debts, cash 3,683,751 -
State Bank of Rate of Interest - Base rate + 4.50%, Hypothecation of book debts, cash 18,466,503 -
Travancore loan repayable in 33 monthly collateral and personal guarantee of
UCO Bank Rate of Interest - Base rate + 3.00%, Hypothecation of book debts, cash 7,286,685 -
UCO Bank Rate of Interest - Base rate + 3.00%, Hypothecation of book debts, cash 8,000,004 6,644,070 8,000,004 13,995,996
UCO Bank Rate of Interest - 11.75% loan Hypothecation of book debts and 10,000,000 -
installments.
UCO Bank Rate of Interest MCLR+2.65%,loan Hypothecation of book debts and 13,333,333 27,054,832
installaments
YES Bank Ltd. Rate of Interest - 12.25% loan Hypothecation of book debts, cash 10,000,000 10,161,644

YES Bank Ltd. Rate of Interest 1YR MCLR+3%,loan Hypothecation of book debts and 25,000,000 7,083,333
installaments
YES Bank Ltd. Rate of Interest 1Y MCLR+0.5%,loan Hypothecation of book debts and 500,000,000 500,000,000
installaments
Total 1,692,803,820 1,586,950,435 275,687,639 247,656,453

(`)
Name of the FI /
NBFC
Agri Business Finance Rate of Interest - 13% loan Hypothecation of book debts, cash 16,680,000 16,640,000 16,680,000 33,320,000
Ltd. repayable in 36 monthly collateral and personal guarantee

Ananya Finance for Rate of Interest - 15.75%, Hypothecation of book debts, 2,812,500 -
Inclusive Growth loan repayable in 18 monthly cash collateral and 18 no. advance
Private Limited installments. post-dated cheques.
Fedbank Financial Rate of Interest - 12% loan Hypothecation of book debts and 13,500,000 36,500,000
Services Limited repayable in 36 monthly cash collateral.
installments.
Fedbank Financial Rate of Interest - 11.20% loan Hypothecation of book debts and 72,719,880 87,871,412
Services Limited-TL repayable in 36 monthly cash collateral.
installments.
installments.
installments.
installments.
installments.
Maanaveeya Rate of Interest - 14.50%, loan Hypothecation of book debts and 40,008,000 19,988,000
Development & repayable in 24 installments. cash collateral.
Finance Private Limited
Reliance Capital Ltd. Rate of Interest - 15.00%, Hypothecation of book debts and 10,758,883 -
loan repayable in 15 monthly cash collateral.
installments.
Consolidated
Reliance Capital Ltd. Rate of Interest - 13%, loan Hypothecation of book debts and 14,256,994 0

installments.
installments.
installments.
Religare Finvest Rate of Interest - 15.75%, Hypothecation of book debts, cash 16,232,023 -
Limited loan repayable in 26 monthly collateral and personal guarantee
95

96
Religare Finvest Rate of Interest - 14.50%, Hypothecation of book debts, cash 13,771,278 0 24,935,233 13,881,848
Limited loan repayable in 24 monthly collateral and personal guarantee
Hero Fin Corp Rate of Interest - 9.5%, loan Hypothecation of book debts 36,156,514 63,843,486
installments.
Total 281,834,944 168,354,898 336,733,363 246,197,121
Non-Convertible Debentures - Secured
(`)
Name of
Debenture Holder
Hinduja Leyland Rate of Interest - 12.78% p.a. Hypothecation of Book Debts 45,833,400 -
installments.
Hinduja Leyland Rate of Interest - 12.51% p.a. Hypothecation of Book Debts 12,500,000 - 49,999,200 12,500,800
installments.
Hinduja Leyland Rate of Interest - 10.56% p.a. Hypothecation of Book Debts 66,666,667 100,000,000
installments.
IFMR Flmpact Long Rate of Interest - 15.25% loan Hypothecation of Book Debts - 50,000,000 - 50,000,000
Class-Senior Debt installments.
Mahindra & Rate of Interest - 11.40% loan Hypothecation of Book Debts 75,000,000 - 75,000,000 75,000,000
Mahindra Financial repayable in 24 monthly
Services Ltd installments.
Total 154,166,667 150,000,000 170,832,600 137,500,800
Cash Credit - Secured
(`)
As at March 31, 2018 March 31, 2017
Ratnakar Bank Ltd. Rate of Interest - 13.75% loan Hypothecation of Book Debts - 3,586 -
repayable on demand - Tenor -12
Months
Total - - 3,586 -
Non-Convertible Debentures - Unsecured
(`)
Name of
Debenture Holder
IFMR Flmpact Long Rate of Interest - 15.25% loan No security offered - 50,000,000 - 50,000,000
Class-Sub Debt installments.
Total - 50,000,000 - 50,000,000
Vehicle Loan from Banks - Unsecured
(`)
HDFC Bank Rate of Interest - 9.65%, loan Hypothecation of Car 218,078 458,550 198,093 676,627
installments.
HDFC Bank Rate of Interest - 8.88%, loan Hypothecation of Car 153,387 211,543 - -
installments.
Total 371,464 670,093 198,093 676,627
Vehicle Loan from Other Parties - Unsecured
(`)
Name of the FI /
NBFC
Consolidated
Kotak Mahindra Loan repayable in 60 monthly Hypothecation of Car 200,134 439,182 182,522 639,316
Prime Ltd installments (Monthy EMI).

Total 200,134 439,182 182,522 639,316
Note 4.1: The Company has not defaulted in the repayment of dues to banks / financial institutions.
97

note 5. Long-term Provisions
(`)
Particulars
2018 2017
a) Provision for Employee Benefits:
i) Provision for Gratuity 1,126,226 1,570,357
ii) Provision for Leave encashment 1,976,536 -
b) Other Provisions:
i) Provision for Taxation 9,221,868 7,621,868
ii) Provision against Standard Assets under financing activity 25,400,000 -
iii) Provision against Loan Assets under financing activity 63,410,000 14,365,000
Total 101,134,630 23,557,225
note 6. Short-term borrowings
(`)
Particulars
2018 2017
Unsecured Loans
Commercial Paper 650,000,000 -
Less : Unexpired discount on commercial paper (22,017,550) -
Total 1,376,602,650 -
note 7. Trade payables
(`)
Particulars
2018 2017
Outstanding dues of creditors 30,628,874 81,485,650
Total 30,628,874 81,485,650
note 8. Other current liabilities
(`)
Particulars
2018 2017
Current maturities of long term borrowings
Secured Non Convertible Debentures (Refer Note 4.1) 154,166,667 170,832,600
Loans from Banks (Secured against receivables- Refer Note 4.1) 1,692,803,820 275,687,639
Term Loan from Other Parties - Secured (Refer Note 4.1) 281,834,944 336,733,363
Cash Credit (Refer Note 4.1) - 3,586
Vehicle Loans - Unsecured
Sub-total 2,129,377,029 783,637,803
Other Payable
Payable to Holding Company 196,119,125 -
Interest accrued but not due on borrowings 27,429,520 6,058,172
Payables on account of assignments and securitisation 25,961,592 21,824,760
Advances from customers 3,656,190 -
98
note 8. Other current liabilities (Contd.)
(`)
Particulars
2018 2017
Statutory remittances (Contributions to PF and ESIC, Service Tax, etc.) 15,656,546 3,368,274
Accrued Salaries & Benefits 16,782,645 4,084,136
Provision for expenses 10,675,778 3,134,851

Other payables 306,923,640 -
Sub-total 603,205,036 38,470,193
Total 2,732,582,065 822,107,996
note 9. Short-term provisions
(`)
Particulars
2018 2017
Provision for Leave encashment 771,839 -
Provision for Tax 38,009,368 3,400,000
Total 38,781,207 3,400,000

99
note 10. Fixed Assets
100
(`)
Tangible Assets Intangible Assets
Partculars Furntiure Office Computers Vehicles Total Computer Total Total
& Fixtures Equipment Softwares
As at 1st April, 2017 8,544,535 7,592,905 12,024,511 4,506,014 32,667,965 5,463,036 5,463,036 38,131,001
Additions 6,705,872 8,111,394 19,625,473 1,041,500 35,484,239 1,015,331 1,015,331 36,499,570
Disposals/Adjustments (40,719) (40,719) - (40,719)
As at March 31, 2018 15,250,407 15,704,299 31,609,265 5,547,514 68,111,485 6,478,367 6,478,367 74,589,852
Depreciation / Amortisation
As at 1st April, 2017 3,030,855 2,464,892 4,290,208 1,566,591 11,352,546 4,737,816 4,737,816 16,090,362
Depreciation / Amortisation for the year 1,089,905 1,908,157 8,688,382 579,214 12,265,657 815,525 815,525 13,081,182
Disposals (10,988) (10,988) - (10,988)
As at March 31, 2018 4,120,760 4,373,049 12,967,602 2,145,805 23,607,215 5,553,341 5,553,341 29,160,556
Net Block
Balance as at 31st March, 2018 (`) 11,129,647 11,331,250 18,641,663 3,401,709 44,504,269 925,026 925,026 45,429,296
Balance as at 31st March, 2017 (`) 5,513,680 5,128,013 7,734,303 2,939,423 21,315,419 725,220 725,220 22,040,639
note 11. Non-Current Investments
(`)
Particulars
2018 2017
a) Trade - Unquoted Investments, at cost
i) Investments in Equity Instruments
1) Alpha Micro Finance Consultants Pvt. Ltd., 50,000 Equity shares of

` 10/- each fully paid up. 500,000 500,000
(Previous year 50,000 Equity shares of ` 10/- per share)"
Total 500,000 500,000
Aggregate amount of unquoted investments 500,000 500,000
note 12. Deferred Tax
(`)
Particulars AS PER BOOKS AS PER IT DIFFERENCE Deferred Tax
1) Deferred tax liability
Fixed asset 45,429,296 45,160,878 268,418 (77,412)
Provision for bad and doubtful debts
- (6,897,556) 6,897,556 (1,989,255)

under Section 36(1)(viia)
(2,066,667)
2) Deferred tax asset
Provision for Gratuity 1,126,226 - 1,126,226 324,804
Provision for Leave Encashment 2,748,375 - 2,748,375 792,631
Provision for Loan portfolio 88,810,000 - 88,810,000 25,612,804
26,730,239
Particulars Difference
Deferred Tax Liability as on 31.03.2018 2,066,667
Opening Balance of Deferred Tax Liability 748,513

Deferred Tax Asset as on 31.03.2018 26,730,239
Opening Balance of Deferred Tax Asset 5,535,528
Total Provision made in Profit & Loss Account (19,876,557)
Deferred Tax Asset as on 31.03.2018 (Net) 24,663,572
note 13. Long-term loans & advances
(`)
Particulars
2018 2017
Loans & Advances
- Unsecured 2,113,382,091 369,165,027
Total 2,113,382,091 369,165,027
note 14. Other non-current assets
(`)
Particulars
2018 2017
Others
i) Deposits with Banks more than 12 months maturity 257,512,951 110,536,853
ii) * Deposits with other NBFC for term loans 30,766,434 13,373,558
iii) Deferred Revenue Expenditure 1,573,730 10,243,433
101
iv) Rent Deposits 14,494,623 8,628,750

v) Advance Tax 14,798,900 7,397,280
vi) TDS Receivables 16,901,436 9,073,375
vii) MAT Credit - 1,342,390
Total 336,048,074 160,595,639
* Represents margin money deposits placed to avail tem loans from banks, financial institutions, non banking financial companies
and as cash collateral in connection with securtisation transactions.
note 15. Trade receivables
(`)
Particulars
2018 2017
Trade receivables 37,916,290 12,310,485
Total 37,916,290 12,310,485
note 16. Cash and Cash equivalents
(`)
Particulars
2018 2017
Cash on hand 954,496 1,148,132
Balances with banks 430,889,709 190,705,693
Others
(i) In Fixed Deposit accounts with maturity less than 12 months & all the deposits are 27,921,019 369,847,227
lien noted against the term loans.
Total 459,765,224 561,701,052
note 17. Short-term loans & advances
(`)
Particulars
2018 2017
Loans & Advances
- Unsecured 4,226,703,989 1,067,314,077
Sub-total 4,226,703,989 1,067,314,077
Others loans & advances
Dues from customers -
- Unsecured 59,178,693 -
Staff Loans 909,993 844,117
Prepaid expenses 222,843 3,354,739
Sub-total 60,311,529 4,198,856
Total 4,287,015,518 1,071,512,933
102
note 18. Other current assets
(`)
Particulars
2018 2017
Deferred Revenue Expenditure 8,669,706 11,584,938
Accrued Income on Loans 63,690,587 25,634,429
Accrued Interest on Fixed Deposits 14,095,108 9,670,930

Others 4,548,435 5,174
Total 91,003,837 46,895,471
note 19. Revenue from operations
(`)
Particulars
2018 2017
Interest Income on Loans 718,173,021 197,194,881
Income from securitisation / assignment of loans 24,535,040 29,642,588

Income from Business Correspondents 121,748,084 64,478,357
Processing fee 76,746,025 15,985,481
Interest on fixed deposits 18,603,421 13,081,047
Total 959,805,592 320,382,354
note 20. Other Income
(`)
Particulars
2018 2017

Dividend income 470,332 7,259,028
Short Term Capital Gain 4,851,909 -
Commission Income 1,867,878 -
Administration fee & other charges 139,167 609,450
Miscelleneous income 1,166,725 2,551,598
Total 8,496,012 10,420,076
note 21. Employee cost
(`)
Particulars
2018 2017
Salaries and bonus 246,696,350 101,530,529
Contribution to provident and other funds 18,784,898 6,974,010
Leave Encashment 3,277,501 -
Gratuity 2,056,638 1,120,776
Staff Welfare Expenses 9,265,717 2,549,055
Total 280,081,104 112,174,370
103
note 22. Finance cost
(`)
Particulars
2018 2017
Interest Expenses on :
Term Loans 192,135,654 104,553,356
Cash Credit and Overdraft 666,019 37,320
Non Convertible Debentures 45,965,627 29,399,786
Commercial Papers 15,981,297 -
Vehicle Loan 173,983 131,765
Other borrowing cost 25,326,640 12,185,933
Interest Expense on Income Tax 1,509,368 -
Total 313,024,282 146,308,160
note 23. Administration and other expenses
(`)
Particulars
2018 2017
Advertisement 377,153 490,892
Bank Charges 5,035,802 1,184,549
Communication 5,150,726 1,661,246
Electricity 1,771,378 648,516
Legal & Professional Fees 19,198,757 11,677,236
Miscelleneous Expenses 1,367,344 1,174,726
Office expenses 8,824,902 2,350,607
Postage & Courier 2,462,430 1,162,985
Printing & Stationary 6,195,047 2,358,770
Rates & Taxes 7,509,356 1,305,651
Rent 19,656,061 9,030,644
Repairs & Maintenance
- Computer 875,045 461,126
Remuneration to Auditors :
Audit Fees 281,448 202,525
Certificaton Expenses 50,000 -
Software Charges 7,564,087 4,576,919
Subscription 1,667,358 814,571
Travelling & Conveyance 34,915,193 11,211,651
Loss on sale of fixed assets - 87,965
Corporate Social Responsibility Expenses - 50,000
Total 122,902,087 50,450,581
Note (i)
(`)
Particulars
2018 2017
Auditor's Remuneration
- Statutory Audit Fee 175,000 135,000
- Tax Audit Fee 50,000 40,000
- Certification Charges 50,000 -
- Other Services ( Limited Review) 56,448 27,525
Total 331,448 202,525
104
note 24. Provisions / write off receivables under financial activity
(`)
Particulars
2018 2017
Portfolio loans written off 123,136,185 2,958,880

Provision against Loans 49,045,000 7,558,375
Provision against Standard Assets 25,400,000 -
Total 197,581,185 10,517,255
note 25. Employee Benefits

Disclosures envisaged in Accounting standard (AS) 15 - Employee Benefits as given below:
Note 25.1. Defined Contribution Plans
During the year, the Company has recognised the following amounts in the statement of profit and loss
(`)

March 31, 2018 March 31, 2017
Employers Contribution to Provident & Pension Fund 10,706,738 4,910,772
Note 25.2. Defined Benefit Plans
T he Company has funded defined benefit gratuity plan. Every employees who has completed five years or more of service is
eligible for gratuity on separation at 15 days basic salary (Last Drawn salary) for each completed year of service.
onsequent to the adoption of AS 15 ’Employee Benefits’ specified under section 133 of Companies Act, 2013 read with rule 7 of
C
Companies (Accounts) Rules, 2014, the following disclosures have been made as required by standard:

Contribution to Gratuity Fund:
Details of defined benefit plan of gratuity are given below:

(`)
March 31, 2018 March 31, 2017
i) Changes in the Present Value of Obligation (PVO)
PVO as at the beginning of the period 3,862,741 3,149,521
Past service cost - (non vested benefits) -
Past service cost - (vested benefits) -
Benefits paid (141,433) (458,650)
Actuarial loss/(gain) on obligation (balancing figure) 219,853 157,615
PVO as at the end of the year 5,385,094 3,862,741
ii) Changes in the Fair Value of Plan Assets
Fair value of plan assets as at the beginning of the period 2,292,384 -
105
Note 25.2. Defined Benefit Plans (contd.)
(`)
March 31, 2018 March 31, 2017
Expected return on plan assets 155,882 86,290
Contributions 2,000,000 2,699,940
Benefits paid (141,433) (458,650)
Actuarial gain/(loss) on plan assets [balancing figure] (47,965) (35,196)
Fair value of plan assets as at the end of the period 4,258,868 2,292,384
iii) Amount recognised in the Balance Sheet and Related Analysis
Present value of the obligation 5,385,094 3,862,741
Fair value of plan assets 4,258,868 2,292,384
Difference 1,126,226 1,570,357
Unrecognised transitional liability -
Unrecognised past service cost - non vested benefits -
Liability recognised in the balance sheet 1,126,226 1,570,357
iv) Expenses recognised in the Profit & Loss Account
Expected return on plan assets - -86,290
Net actuarial (gain)/loss recognised in the year 267,818 192,811
Transitional Liability recognised in the year -
Past service cost - non-vested benefits -
Past service cost - vested benefits -
Expenses recognised in the statement of profit and loss 1,555,869 1,120,776
v) Major categories of Plan Assets (As percentage of Total Plan Assets)
Government of India Securities 0.00% 0.00%
State Government Securities 0.00% 0.00%
High Quality Corporate Bonds 0.00% 0.00%
Equity shares of listed companies 0.00% 0.00%
Property 0.00% 0.00%
Insurer Managed 100.00% 100.00%
Mutual Funds 0.00% 0.00%
Bank Deposits 0.00% 0.00%
Total 100.00% 100.00%
vi) Principal Actuarial Assumptions (Expressed as weighted averages)
Discount Rate 7.18% 6.80%
Salary escalation rate 7.00% 7.00%
Attrition rate 24.00% 24.00%
Expected rate of return on Plan Assets 7.18% 7.70%
vii) Assumptions
Discount rate as per para 78 of AS15R 7.18% 6.80%
Salary escalation fixed by the Enterprise as per para 83-91 and 120[l] of AS15R 7.00% 7.00%
Attrition rate fixed by Enterprise 24.00% 24.00%
Age of Retirement 60 60
Funding Mechanism Insurer Managed Insurer Managed
106
note 26. Segment Information
The Company operates in a single reportable segment i.e. lending to microfinance customers which have similar risks and returns
for the purpose of AS 17 on ‘Segment Reporting’ specified under section 133 of the Companies Act 2013 read with Rule 7 of the
Companies (Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules. The Company operates in a
single geographical segment i.e. domestic.
note 27. Related Party Disclosures

Related party disclosures as required under the Accounting Standard (AS) - 18 on “Related Party Disclosures” specified under
section 133 of Companies Act 2013 read with rule 7 of Companies (Accounts) Rules 2014 are given below:
Note 27.1. Names of Related Parties and Nature of Relationship
Description of Relationship As at March 31, 2018 As at March 31, 2017

Holding Company India Infoline Finance Limited India Infoline Finance Limited
Subsidiary Company Ayusha Dairy Private Limited Ayusha Dairy Private Limited
Fellow Subsidiary Company IIFL Management Services Limited IIFL Management Services Limited
Fellow Subsidiary Company India Infoline Housing Finance Limited India Infoline Housing Finance Limited
Mr. N. Venkatesh Managing Mr. N. Venkatesh Managing
Director Director

Mr. D. Shivaprakash Mr. D. Shivaprakash
Whole-time Director Whole-time Director
Mr. T. Anantha kumar CFO Mr. R.C.Shekar Director
Mr. K J Sutheja Company Secretary Mr. T. Anantha kumar CFO
Mr. A. Vikraman Independent Mr. K J Sutheja Company Secretary
Director
Key Management Personnel Mr. R Venkataraman, Director Mr. S. Parthasarathy CFO Upto
May’16
Mr. Gaurav Malhotra, Director Ms. Ritu Singh Company Secretary
Independent Director Upto 31st Oct’16
Mr. Badrinarayan Seshadri Mr. Badrinarayan Seshadri

Independent Director Independent Director
Mr. A. Vikraman Independent
Director
Mr. A. Ramanathan Independent
Director
Note 27.2. Transactions with Related Parties
(`)
March 31, 2018 March 31, 2017
Income
Service Fee on Business India Infoline Finance Limited 65,254,963 Nil
Correspondence
Arranger Fee India Infoline Housing Finance 1,197,796 Nil
Limited
Expense
Interest India Infoline Finance Limited 62,257,683 Nil
Rent IIFL Management Services 9,000 Nil
Limited
107
Note 27.2. Transactions with Related Parties (contd.)
(`)
March 31, 2018 March 31, 2017
Remuneration to Director Mr. N. Venkatesh Managing 5,401,596 3,301,704
Director
Mr. D. Shivaprakash Whole- 4,200,156 2,401,908
time Director
Mr. R.C. Shekar Director upto -
16th Feb 2017 1,512,718
Reimbursement of expenses to Mr. N. Venkatesh Managing - 60,000
Director Director
Sitting fee to Independent Mr. Badrinarayanan Seshadri 58,332 76,222
Directors Director
Mr. A. Vikraman Director 58,332 85,555
Mr. A. Ramanathan Director 47,222 80,000
Mr. S. Parthasarathy CFO - 157,926
Upto 31st May’16
Mr. T. Anantha kumar CFO 1,257,429 811,813
From 02nd July’16
Remuneration to KMP
Ms. Ritu Singh Company - 83,293
Secretary Upto 31st Oct’16
Mr. K J Sutheja Company 628,158 250,000
Secretary from 11th Nov’16
Remuneration / Sitting fee Relatives of Directors and Key Nil Nil
Management Personnel
Other Transactions
Loans and Advances received India Infoline Finance Limited 4,257,500,000 -
from Holding Company
Loans and Advances repaid to India Infoline Finance Limited 3,312,760,675 -
Holding Company
Equity Share Capital India Infoline Finance Limited 500,000,000 584,176,310
Balance as at year end
Equity Share Capital India Infoline Finance Limited 1,084,176,310 584,176,310
Investment in Subsidiary Ayusha Dairy Private Limited 10,000,000 10,000,000
(1000000 Equity shares of `
10/- each)
Term Loans (Including ICD) India Infoline Finance Limited 944,739,325 -
note 28. Additional information
Note 28.1. Contingent liabilities and commitments (to the extent not provided for)
(`)
Particulars
2018 2017
Contingent liabilities Nil Nil
108
Note 28.2. Disclosure on foreign currency exposure:

Earning in Foreign Exchange in Foreign Currency during the year is Nil (Previous Year: Nil). Expenditure in Foreign Exchange in
Foreign Currency during the year is Nil (Previous Year: Nil).
Note 28.3. Disclosures required under Section 22 of the Micro Small and Medium Enterprises Development Act 2006
There are no Micro and Small Enterprises to whom the Company owes dues which are outstanding for more than 45 days at
the Balance Sheet date. The above information regarding Micro Enterprises and Small Enterprises has been determined to the

extent such parties have been identified on the basis of information available with the Company. This has been relied upon by
the Auditors.
Note 28.4: Asset Classification & Provisioning:
The Company follows Prudential Norms of the Reserve Bank of India with regard to classification in respect of all loans extended
to its customer. The Company complies with the Prudential Norms of the Reserve Bank of India with regard to Income recognition
asset classification and provisioning. The Company is following provisioning norms as recommended vide DNBS.CC.PD.No.
250/03.10.01/2011-12 dated 02nd December 2011 DNBS.PD/CC.No.263/03.10.038/2011-12 dated 20th March 2012 and DNBS.
(PD).CC.No.347/03.10.38/2013-14 dated 01st July 2013. Accordingly, the Company in line with guidelines laid down the DNBS(PD)
CC.No. 347/30.10.038/2013-14 dated 01st July 2013 has provided 1% of the total loan portfolio outstanding as at 31st March 2018.

Classification of loan portfolio:
(`)
Loan Portfolio Loan Portfolio
Asset Classification
as on March 31, 2018 as on March 31, 2017
Less than 90 days 6,320,538,349 1,381,080,882
91 - 180 days 14,110,483 53,243,308
More than 180 days 5,437,248 2,154,914
Total loan assets / loan portfolio 6,340,086,080 1,436,479,104

Provisioning Norms for Loans:
(`)
Asset Classification RBI Norms As at March 31, 2018 As at March 31, 2017
Total loan assets / loan portfolio - A 1% of the 63,400,861 14,364,791
outstanding loan
portfolio
Provision for Non-performing assets 50% 2,850,493 5,312,593
(91-180 days)
Provision for Non-performing assets 100% 845,918 837,205
(> 180 days)
TOTAL PROVISION FOR NPA – B 3,696,411 6,149,798
Provision required - the higher of 63,400,861 14,364,791
A) or B)
Less: Provision for loan portfolio 14,364,791 6,806,625
already made
Provision made for the year ended 49,036,070 7,558,375
In addition to the above provision, the Company has provided 0.40% of the Loan Portfolio as Standard Asset provision
109
Note 28.5. Disclosure Pursuant to Reserve Bank of India Notification DNBS.200/CGM (PK)-2008 dated August 1, 2008
i) Capital to risk Assets ratio (CRAR) (computed as per the method prescribed by RBI)
(`)
Tier I Capital 1,159,550,617 616,191,852
Tier II Capital 83,018,946 64,365,000
Total Capital Funds 1,242,569,563 680,556,852
Total Risk Weighted Assets 6,620,690,512 1,533,754,137
CRAR - Tier I Capital (%) 17.51% 40.17%
CRAR - Tier II Capital (%) 1.25% 4.20%
CRAR (%) 18.77% 44.37%
All Fixed Deposits with Banks under lien against term loans availed by the Company. However, considering the converge of secured
loans by assets like book debts etc. the risk weighted with respect to fixed deposits with Banks has been considered as Zero.
ii) Exposure to Real Estate Sector (Direct & Indirect Exposure) – Nil (PY: Nil)
iii) Amount of Subordinated Debt raised as Tier II Capital – Nil (PY: ` 50,000,000)
iv) Exposure to Capital Markets – Nil (PY: Nil)
v) Ratings assigned during the year
a) MFI Grading – mfR3 rated by CRISIL Ratings (MFI Grading Scale – mfR1 Highest mfR8 Lowest)
b) Bank loan rating – CRISIL A/Stable rated by CRISIL Ratings ICRA A/Stable rated by ICRA Ratings
c) COCA Rating – SMERA C1
vi) Maturity Pattern of Assets and Liabilities
Maturity pattern of certain items of assets and liabilities as on March 31, 2018 (Amount in ` )
(`)
Liabilities Assets
Particulars Borrowings Market Advances FD with Banks Investments

from Banks and Borrowings (Loan portfolio (Free of Lien)
others outstanding
Up to one month 928,098,820 - 332,730,736 - -
Over one month to 2 171,241,885
342,163,150 353,518,983 - -
months
Over 2 months up to 3 214,156,333 28,58,19,300 348,884,635 - 10,000,000
months
Over 3 months up to 6 622,379,919 - 1,088,879,813 - -
months
Over 6 months to 1 year 1,133,840,937 - 2,102,689,822 - -
Over 1 year to 3 years 1,860,813,068 - 2,113,382,091 - -
Over 3 years to 5 years 100,000,000 - - - -
Over 5 years - - - - 500,000
Total 5,030,530,963 627,982,450 6,340,086,080 - 10,500,000
110
Note 28.6. Disclosures of frauds reported during the year vide DNBS PD.CC.No. 256 / 03.10.042 / 2011-12 dated March 2 , 2012
(`)
Less than ` 1 Lakh ` 1 - 5 Lakhs ` 5 - 25 Lakhs Total
No. of Value ` No. of Value ` No. of Value ` No. of Value `
Accounts in Lakhs Accounts in Lakhs Accounts in Lakhs Accounts in Lakhs
A) Person involved 18 2.82 6 4.34 Nil Nil 24 7.16

Staff 18 2.82 6 4.34 Nil Nil 24 7.16
Customer 0 0 0 0 Nil Nil Nil Nil
Staff and Customer 0 0 0 0 Nil Nil Nil Nil
Total 18 2.82 6 4.34 Nil Nil 24 7.16
B) Type of fraud
Misappropriation and 12 2.44 1 4.34 Nil Nil 13 6.78
criminal breach
of trust
Fraudulent 2 0.38 0 0 Nil Nil 2 0.38
encashment /
Manipulation of books
of Accounts

Unauthorised credit 0 0 0 0 Nil Nil Nil Nil
facility extended
Cheating and forgery 0 0 0 0 Nil Nil Nil Nil
Total 14 2.82 1 4.34 Nil Nil 15 7.16
Note 28.7. Disclosure as required under DNBS (PD) CC. No. 300/03.10.038/2012-13 dated August 3, 2012
The cap on margins (as defined by Malegam Committee) and in compliance with RBI circular RBI/2012-13/161 DNBS (PD)
CC.No.300 /03.10.038/2012-13 August 03, 2012 is 9.09% as at March-31-2018 (9.22% as at March 31, 2017).
Note 28.8. Merger with wholly owned Subsidiary:

Ayusha Dairy Private Limited (hereinafter referred to as the Company) is the Wholly Owned Subsidiary of Samasta Microfinance
Ltd. in which Samasta holds 100% of the equity capital of the Company. Since the operations in the Company had completely
stopped, it was proposed to merge the Company with its holding Company vide the Board Meeting dated 23.01.2018. The Scheme
of Amalgamation was also approved by the members of both the companies and Creditors of Samasta vide EGM and Creditors
Meetings dated 28.03.2018. Samasta -the Transferee Company has filed the application for merger with the Regional Director in
Form RD-1 on 04.04.2018 and approval is awaited on the same.”
note 29. Earnings per Share
(`)
Profit after Tax (`) 23,762,849 8,476,718
Less : Dividend on preference shares and Dividend Distribution Tax - 8,56,158
Net Profit available to equity share holders 23,762,849 7,620,560
Weighted Average Number of Equity Shares
- Basic 81,070,638 12,283,965
- Diluted 81,070,638 12,283,965
Earnings Per Share
- Basic 0.29 0.62
- Diluted 0.29 0.62
Face Value of Shares (`) 10 10
111
note 30. Recognition of MAT Credit
The Company has availed and utilised the MAT credit of ` 1,342,390/- during the year (previous year : Nil). No MAT credit is
recognised during the year (previous year : ` 13,42,390).
note 31. Disclosure Pursuant to Reserve Bank of India Notification DNBS.193DG (VL) 2007 dated
February 22, 2007:
(`)
Sl No. Particulars Amount Amount
Outstanding Overdue
Liabilities
(1) Loan and Advances availed by the NBFC inclusive of Interest accrued thereon
but not paid:
A Debentures - -
- Secured - -
- Unsecured - -
(Other than falling the meaning of Public Deposits) - -
B Deferred Credits - -
C Term Loan 3,729,944,097 -
E Commercial Paper 627,982,450 -

F Public Deposits - -
G Other Loans – Vehicle Loan 1,680,874 -
- Non-Convertible Debentures 354,166,667
(`)
Amount Outstanding
Sl No. Particulars
(2) Break-up of (1) (f) above (Outstanding public deposits inclusive of interest
accrued thereon but not paid)
(a) In the form of Unsecured debentures
(b) In the form of partly secured debentures i.e debentures where there is a shortfall
in the value of security
(c) Other public deposits
Assets
(3) Break-up of Loans & Advances including Bills Receivables [ Other than those
included in (4) below]
(a) Secured -
(b) Unsecured 6,340,086,080
(4) Breakup of Leased and Stock on Hire and other Assets counting towards AFC -
activities
(i) Lease assets including Lease rentals under sundry debtors: -
(a) Finance Lease -
(b) Operating Lease -
(ii) Stock on Hire including Hire Charges under sundry debtors: -
(a) Assets on Hire -
(b) Repossessed Assets -
(iii) Other Loans counting towards AFC Activities -
(a) Loans where assets have been repossessed -
(b) Loans other than (a) above -
112
note 31. Disclosure Pursuant to Reserve Bank of India Notification DNBS.193DG (VL) 2007 dated 22nd
(`)
Amount Outstanding
Sl No. Particulars
(5) Break-up of Investments Current Investments -
I Quoted: -

(i) Shares: -
(a) Equity -
(b) Preference -
(v) Others -
II Unquoted: -
(i) Shares: -
(a) Equity -
(b) Preference -

(iv) Government Securities
(v) Others
Long term Investments -
I Quoted: -
(i) Shares: -
(a) Equity -
(b) Preference -

(v) Others -
II Unquoted: -
(i) Shares: -
(a) Equity 10,500,000
(b) Preference -
(v) Others -
(6) Borrower Group wise classification of Assets Financed as in (3) and (4) above
(`)
Sl No. Particulars Amount in (`) (Net of Provisions)
Secured Unsecured Total
1 Related Parties
(a) Subsidiaries - - -
(b) Companies in the same group - - -
(c) Other Related Parties - - -
2 Other than related parties - 6,276,685,219 6,276,685,219
Total - 6,276,685,219 6,276,685,219
113
note 31. Disclosure Pursuant to Reserve Bank of India Notification DNBS.193DG (VL) 2007 dated 22nd
(7) Investor Group-wise classification of all investments (Current and Long Term) in Share and Securities
(both Quoted and Unquoted):
(`)
Market Value
/ Breakup value
Sl No. Category
or Fair Value or
Net Assets Value Book Value
1 Related Parties
(a) Subsidiaries - 10,000,000
(b) Companies in the same group - -
(c) Other Related Parties - -
2 Other than related parties - 500,000
Total - 10,500,000
(8) Other Information Amount

(i) Gross Non - Performing Assets
(b) Other than related parties 19,547,731
(ii) Net Non - Performing Assets
(b) Other than related parties -
(iii) Assets acquired in Satisfaction of Debt -
note 32. The Company has not disbursed any loan against security of gold.
note 33. Details of average interest paid on borrowings and charged on loans given to JLGs
(`)
2017-18 2016-17
Particulars Rate of Interest in % Rate of Interest in %
for Microfinance loan for Microfinance loan
Average Rate of Interest on Borrowings 13.48% 15.19%
Average Rate of Interest on Loans given 22.60% 24.41%
Net Interest Margin 9.12% 9.22%
note 34. Securitization / Assignment of Loans
During the year, the Company has sold loans through direct Securitization / assignments. The information on direct assignment
activity of the Company as an Originator / Assignor is as shown below:
(`)
Particulars March 31, 2018 March 31, 2017
Total number of loans securitised / assigned 40,268 23,917
Total book value of loans securitised / assigned 811,119,735 231,599,843
Sale consideration received for loans securitised / assigned 742,310,050 253,816,937
Income recognised in the statement of profit and loss 24,535,040 29,642,588
Balance of loans assigned / securitised as at the balance sheet date 452,660,769 175,687,865
Cash collateral provided and outstanding as at the balance sheet date 52,486,646 24,089,612
114
note 34. Securitization / Assignment of Loans(contd.)
Disclosure to be made under Securitization guidelines issued by Reserve Bank of India vide policy no. DNBS. PD.
No. 301/3.10.01/2012-13 dated August 21, 2012.
(`)
Sl No. Particulars
2018 2017
1 No. of SPVs sponsored by the NBFC for Securitisation transactions 2 3

2 Total amount of securitised assets as per the books of the SPVs sponsored by 811,119,735 231,599,843
the Company
3 Total amount of exposures retained by the Company to comply with MRR as on - -
the date of balance sheet
a) First Loss - -
b) Others - -
ii) On-Balance Sheet exposures
a) First Loss (in the form of Fixed Deposit) 52,486,646 24,089,612
b) Others - -
4 Amount of exposures to securitization transactions other than MRR

First Loss - -
Others - -
b) Exposure to third party securitization transaction - -
First Loss
Others - -
ii) On-Balance Sheet exposures - -
First Loss - -

Others - -
b) Exposure to third party securitization transaction
First Loss - -
Others - -
115
note 35. Discontinued Operations:
Ayusha Dairy Private Limited, the wholly owned subsidiary Company, discontinued its Dairy product business. Accordingly, Dairy
product business was treated as a discontinuing operation under Accounting Standard (AS) 24 – Discontinuing Operations. The
Dairy product business was operational till 30- April- 2015 and discontinued thereafter.
note 36. Basis of Consolidation
The financial statements of the following subsidiary Company have been consolidated as per Accounting Standard – 21
on ‘Consolidated Financial Statements’.
Name of the Subsidiary Country of Incorporation Proportion of ownership interest (%))

Ayusha Dairy Private Limited India 100%
note 37. Previous year Figures
Previous year’s figures have been reclassified to conform with the current year’s classification / presentation wherever applicable.
Firm No. 005917S

M. No. 014353 DIN : 01018821 DIN : 02216802

116
Corporate Information
BOARD OF DIRECTORS RISK Management Committee Vistra (ITCL) Limited
Mr. Venkatesh N. Mr. Ramanathan Annamalai The IL&FS Financial Centre,
Managing Director Independent Director Plot C- 22, G Block, BKC Road,
Bandra Kurla Complex, Bandra East,
Mr. Shivaprakash D. Mr. Venkatesh N.
Mumbai, Maharashtra 400 051
Whole Time Director Managing Director
Mr. R. Venkataraman Mr. Shivaprakash D. Beacon Trusteeship Limited
Non-Executive Director Whole Time Director 4C, Siddhivinayak Chambers,
Gandhi Nagar, Opp MIG Cricket Club,
Mr. Gaurav Malhotra
CHIEF FINANCIAL OFFICER CUM HEAD - Bandra (E), Mumbai, Maharashtra 400 051
TREASURY
Mr. Badrinarayanan S. RATING AGENCIES
Independent Director Mr. Sreepal Jain
CRISIL Limited
Mr. Vikraman A. Hiranandani Business Park,
COMPANY SECRETARY
Independent Director Central Ave, Hiranandani Gardens,
Mr. Sutheja K.J
Mr. Ramanathan A. Powai, Mumbai, Maharashtra 400 076
Independent Director Statutory Auditors CARE Ratings Limited
Mrs. Malini B. Eden M/s. Gowthama and Company 4th Floor, Godrej Coliseum,
Additional Director Chartered Accountant Somaiya Hospital Road,
Off Eastern Express Highway, Sion (East),
COMMITTEES OF BOARD INTERNAL AUDITORS Mumbai, Maharashtra 400 022
Audit Committee Mr. Subramanya Puranik ICRA Limited
Mr. Vikraman Ampalakkat Chartered Accountant Electric Mansion, 3rd Floor
Independent Director Appasaheb Marathe Marg
Mr. Badrinarayanan Seshadri SECRETARIAL AUDITORS Prabhadevi, Mumbai 400 025
Independent Director Mr. Lakshmeenarayan Bhat
Mr. Shivaprakash D. Practicing Company Secretary REGISTERED OFFICE
Whole Time Director 418, 1/2A, 4th Cross, 6th Main,
CORE MANAGEMENT TEAM Wilson Garden, Bangalore 560 027,
Nomination and Remuneration Name Designation Karnataka, India
Committee
Mr. Ramanathan Annamalai Mr. Naveen Chief Operating CORPORATE OFFICE
Independent Director Mallik Officer #37 A Sannathi Street
Mr. Badrinarayanan Seshadri Theradi Thiruvottriyur, Chennai 600 019
Mr. Prakash R. Head – Internal
Independent Director Audit List of Bankers
Mr. Venkatesh N.
Managing Director Mr. Sabari K. Chief Risk Officer Bank of Maharashtra
Canara Bank
Asset Liability Management REGISTRAR AND TRANSFER AGENT Indian Bank
Committee Lakshmi Vilas Bank
Link Intime India Private Limited
Pallavan Grama Bank
Mr. Venkatesh N. C 101, 247 Park,
RBL Bank Limited
Managing Director L B S Marg, Vikhroli West,
South Indian Bank
Mr. Shivaprakash D. Mumbai 400 083
State Bank of India
Whole Time Director UCO Bank
DEBENTURE TRUTEES
Mr. Sreepal Jain Yes Bank Limited
Chief Financial Officer Catalyst Trusteeship Limited Bank of Baroda
Office No. 83 – 87, 8th Floor, Dena Bank
Mr. Gaurav Malhotra
Mittal Tower, ‘B’ Wing, Nariman Point, Standard Chartered Bank
Mumbai, Maharashtra 400 021 SBM Bank (Mauritius) Limited
Cautionary Statement
This document contains forward-looking statement and information. Such statements are based on our current expectations and certain assumptions, and
are, therefore, subject to certain risk and uncertainties. Should one or more of these risks or uncertainties materialise, or should underlying assumptions
prove incorrect, actual results may vary. IIFL does not intend to assume any obligation or update or revise these forward-looking statements in light of
developments, which differs from those anticipated.
SAMASTA MICROFINANCE LIMITED
No. 418-1/2A, 4th Cross, 6th Main,
Wilson Garden, Bengaluru 560 027
Phone: +91 80 4291 3500
E-mail: contactus@samasta.co.in
www.iifl.com | www.samasta.co.in

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Live better lives with us

Samasta Microfinance Limited | 23rd ANNUAL REPORT 2017-18

Corporate Overview 01-21

Statutory Reports 22-43

Financial Statements 44-116

Read our online version at

At Samasta Microfinance Limited, we help

Microfinance not only gives women access to

With an enthusiastic and strong workforce, we aim

IIFL was founded in 1995 by two

`50,661 19.3% `11,621

Net Worth Return on Equity Profit After Tax

Corporate Overview 1-21

Loan Assets Under Wealth Assets Under Stocks Under

Statutory Reports 22-43

Locations Workforce Happy Customers

Financial Statements 44-116

financial services INTEGRITY

About IIFL Holdings Limited

Loans and Wealth and Asset Capital Market

About IIFL Holdings Limited

Corporate Overview 1-21

Statutory Reports 22-43

Samasta Microfinance Limited

Assets Under Number of branches

Number of clients Employees

Corporate Overview 1-21

Statutory Reports 22-43

Our Product Offerings

Loans Repayment Health and welfare

Our Growing Presence

Corporate Overview 1-21

Financial Statements 44-116

Income (` million) Net Profit (` million)

YoY Growth: 195% YoY Growth: 219%

Loan Assets Under Capital Adequacy

19.2 17.8 18.8

YoY Growth: 250% Capital Adequacy ratio was recorded

5 Years CAGR: 75.8%

Corporate Overview 1-21

Statutory Reports 22-43

Financial Statements 44-116

11.9 11.6 3.85

Net Interest Margin reduced marginally to

Encouraging the entrepreneurial potential

Corporate Overview 1-21

Statutory Reports 22-43

Inspiring the big dreams

Financial Statements 44-116

Investing in the latest

Our new age technology tools

Corporate Overview 1-21

Statutory Reports 22-43

Building foundation for

Employees as on March 2017 Employees as on March 2018

Key highlights of the year 2017-18

Extensive policies and processes

Corporate Overview 1-21

Enhanced use of technology

Statutory Reports 22-43

Regular training programs

Financial Statements 44-116

Rewards and Recognition (R&R)

Message from the

To, d) The Directors had prepared the annual accounts on a

vi) affirmation that the remuneration is as per the remuneration

32. COMPLIANCE WITH THE SECRETARIAL STANDARDS