bhartiya samruddhi finance limited · 2018. 3. 28. · bhartiya samruddhi finance limited schedules...

BHARTIYA SAMRUDDHI FINANCE LIMITEDRupees in '000s

BALANCE SHEET AS AT Sch 31-Mar-05 31-Mar-04

``

SHAREHOLDERS FUNDS Share Capital 1 209,001 207,001 Reserves and Surplus 2 26,356 22,834

235,357 229,834 LOAN FUNDS Secured Loans 3 274,581 98,458 Unsecured Loans 4 71,059 101,125

345,640 199,583

Deferred taxation (net) 2,075 1,197

TOTAL 583,072 430,615

ASSETS

FIXED ASSETS (At cost less depreciation) 5 21,677 16,145

INVESTMENTS 6 90 10,090

CURRENT ASSETS, LOANS & ADVANCES

Cash and Bank Balances 7 46,099 82,814 Loans to Rural Producers 8 569,907 363,398

Interest Receivable on Loans 10,242 7,818 Advances Recoverable and other current assets 9 25,731 18,608

651,978 472,638 LESS: CURRENT LIABILITIES AND PROVISIONS Current Liabilities 10 79,462 59,649 Other Provisions 11 11,212 8,660

90,674 68,309

NET CURRENT ASSETS 561,305 404,329

MISCELLANEOUS EXPENDITURE - 51 (To the extent not written off or adjusted)

TOTAL 583,072 430,615

Accounting Policies and Notes to Accounts 17

As per our report of even datefor V.NAGARAJAN & CO., for BHARTIYA SAMRUDDHI FINANCE LIMITED

Chartered AccountantsHyderabadApril 23, 2005

(V.NAGARAJAN) Partner

Company Secretary Director Managing Director

Audited Financial Statements for the year ended March 31, 2005

BHARTIYA SAMRUDDHI FINANCE LIMITED

INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED Sch 31-Mar-05 31-Mar-04

INCOME

Income from Operations 12 123,745 94,375 Income from Investments 13 2,190 7,039 Other Income 14 3,634 1,039 Excess provision written back 172 (4,440) Total 129,741 98,013

EXPENDITURE

Interest on Borrowed Funds 22,255 18,120 Salaries, Allowances and Benefits to Staff 15 32,103 23,566 Remuneration to Managing Director 1,776 1,027 Financial Service Charges to Customer Service Agents 16,285 9,782 Other Operating Expenses 16 37,790 28,137 Non Cash ChargeBad Debts Written Off 7,747 8,315 Diminution in the value of Investments - 48 Depreciation 1,734 1,167 Amortisation of Intangible Assets & Miscellaneous Expenditure 1,051 1,051 Total 120,741 91,214 Profit Before Tax 9,000 6,799 Provision for Tax 2,600 3,506 Provision for deferred tax 878 151 Profit After Tax 5,522 3,142

APPROPRIATIONS:Profit brought forward from last account 122 1,280 Transferred to Portfolio Risk Reserve 5,500 4,300 Balance carried over 144 122

Accounting Policies and Notes to Accounts 17

As per our report of even datefor V.NAGARAJAN & CO.,




Rupees in '000s

for BHARTIYA SAMRUDDHI FINANCE LIMITED



SCHEDULES TO THE ACCOUNTS AS AT 31-Mar-05 31-Mar-04

SCHEDULE 1 : SHARE CAPITALAuthorised:Equity Shares25,000,000 Equity Shares of Rs. 10 each 250,000 250,000 Preference Shares50,00,000 Preference Shares of Rs. 10 each (Previous year: 50,00,000) 50,000 50,000 Total Authorised Capital 300,000 300,000 Issued Subscribed and Paid up:20,900,000 Equity Shares of Rs.10 each 209,000 207,000 Fully paid up (Previous Year : 20,700,000 Shares)Share warrants700 Sweat Equity Share Warrants (Previous Year:900 Warrants) 1 1 Total 209,001 207,001

SCHEDULE 2 : RESERVES AND SURPLUS

a. Capital Reserve Opening Balance 10,925 - Additions during the year (I) On account of acquisition of Intangible Assets - 9,000 (ii) Grant from Small Industries Development Bank of India - 1,925 Less: Amount transferred to Share Capital on Conversion of warrants to equity

2,000-

8,925 10,925

b. General Reserve 1,747 1,747

c. Portfolio Risk Reserve Opening Balance 10,040 5,740 Add: Transfers 5,500 4,300

15,540 10,040

d. Income and Expenditure Account 144 122 Total 26,356 22,835




Rupees in '000s




SCHEDULE 3: SECURED LOANS Rupess in '000s

Date availed Rupees 31-Mar-05 31-Mar-04 31-Mar-06

1 CORDAID-I, Netherlands 21-Mar-00 20,000 13,000 15,500 3,000 2 CORDAID-II, Netherlands 23-Dec-02 20,000 18,750 20,000 1,250

29-Mar-01 20,000 - 6,667 -

14-Sep-01 10,000 - 4,000 -

21-Oct-02 15,000 6,428 10,714 4,286 Moratorium: 6 months Repayable in: 41/2 years

15-Sep-03 15,000 7,500 12,500 5,000 Repayable in: 3 1/2 years

8-Nov-04 10,000 7,500 - 5,000 9.00% Repayable in: 3 1/2 years

10-Dec-04 20,000 20,000 - 4,286

11-Mar-05 50,000 50,000 - 10,714

3-Feb-03 10,000 - 5,000 - Repayable in: 2 years

31-Jul-03 10,000 2,500 7,500 2,500 Repayable in: 1 year 11 month

20-Mar-03 5,000 2,167 4,833 2,000 Moratorium: 1 year Repayable in: 3 1/2 years

21-Aug-03 10,000 6,333 9,667 4,000 Moratorium: 4 months Repayable in: 3 years

24-Aug-04 10,000 10,000 - 4,000 30-Aug-04 10,000 10,000 - 4,000 26-Oct-04 20,000 20,000 - 6,000 31-Aug-04 15,000 15,000 - 21-Sep-04 5,000 5,000 - 13-Oct-04 5,000 5,000 - 23-Nov-04 5,000 5,000 - 2-Dec-04 5,000 5,000 -

24-Dec-04 5,000 5,000 - 5-Jan-05 30,000 30,000 -

14-Feb-05 10,000 10,000 - 25-Feb-05 10,000 10,000 - 1-Mar-05 10,000 10,000 -

10 Cash Credit Facilities from Scheduled Banks - 15,000 - 569 - 12.50%

Open ended Short Term Working Capital Cash Credit Facility

A charge by hypothecating book debts present and future non-farmloans up to Rs 150 lakhs.

11 Overdraft Facilities from Scheduled Banks

- - 403 1,508 - Open ended

Against Pledge of Fixed Deposits Receipts of Rs. 20.12 Lakhs.

Total 370,000 274,581 98,458 89,356

Sl. No.

Name of bank/financial institution

Amount availed as on March 31, 2005

Balance outstanding as on Due for payment

by Repayment period including moratorium

Type of security

A lien of financial assets, being the loan portfolio of Agriculture Allied loans stated as first class (without any repayment problems) with initial worth of Rs 600 Lakhs (being 150% of the loan).

Interest rate

Moratorium: 2 years Repayable in: 10 years

HyderabadApril 23, 2005

(V.NAGARAJAN)Partner

Moratorium: 6 months Repayable in: 2.5 years

A charge in trust on assets created out of the said loan (viz: loans to Non Farm Sector) and pledge of fixed deposit receipts to the extent of 10% of the loan ie., 40 lacs.

Moratorium: 6 months Repayable in: 3 years

Specific first charge created by hypothecating book debts pertaining to Non Farm Sector to the extent of 110% of Loan Outstanding

All loans are Rupee denominated and carry no exchange risk. No payment is overdue as on March 31, 2005

As per our report of even datefor V.NAGARJAN & Co.,

Chartered Accountants

A charge created by hypothecating book debts pertaining to a)General Purpose loans to SHGs; Invididual; Individual S&C b)SHGswith Cash Security c) Federation of SHGs and MACTS andd)Housing Loans

Small Industries Development Bank of India - II

HDFC Bank (Term Loan)A charge by hypothecating book debts present and future non-farm loans up to Rs 200 lakhs. Interest was reduced from 12.10% to 10.75% w.e.f. July 01, 2003.

IDBI Bank

Small Industries Development Bank of India - III

Specific first charge created by hypothecating book debts pertaining to Non Farm Sector to the extent of Loan Outstanding

Paid on 01.03.2005.Moratorium: 1 year Repayable in: 4 years

Moratorium: 6 months Repayable in: 41/2 years

A Charge in trust on assets created out of the said loan (viz: loans to Non Farm Sector) and pledge of fixed deposit receitps to the extent of 10% f the loan ie., 70 lacs

3

4

6

7

Small Industries Development Bank of India- IV

8

UTI Bank

5

10 Development Credit Bank

8.75%

9.25%

ABN Amro Bank9

11.00%

9.50%

13,320

20,000 9.00%

11.00%

9.00%

10.00%

10.75%

9.00%

Moratorium:6 months Repayable in: 3 years

A charge created by hypothecating book debts pertaining to a) Agri Short term b) Agri Long term c) Crop thru onlenders Loans



Audited Financial Statements for the year ended March 31,2005


SCHEDULE 4: UNSECURED LOANS Rupees in '000s

Due for payment by

Interest rate

Repayment period including moratorium Payable in

Date availed Rupees 31-Mar-05 31-Mar-04 31-Mar-06

1 Developpement international Desjardins, Canada (Loan 1)

3-Jan-01 12,329 12,329 12,329 - 6.00% Principal amount shall be repayable in eight semi-annual installments beginning on Mar 31, 2009


5-Feb-02 13,739 13,739 13,739 - 6.00% Payable in eight semi-annual installments beginning on Sep 30, 2009


13-Dec-02 15,448 15,448 15,448 - 6.00% Payable in eight semi-annual installments beginning on Sep 30, 2011

4 Development International Desjardins, Canada (Loan 4)

31-Oct-03 17,129 17,129 17,129 - 6.00% Payable in eight semi-annual installments beginning on Mar 31, 2012

5 Housing Development Finance Corporation Limited.

29-Dec-03 20,000 12,414 18,560 6,817 10.50% Repayable in twelve quaterly equated installments beginning from 31st March 2004.

6 Shorebank Corporation, Chicago

10-Oct-01 23,920 - 23,920 - 8.33% Bulet payment paid on March 30, 2005.

Total 102,565 71,059 101,125 6,817


Sr. No.Amount availed as on

March 31, 2005Name of bank/financial institution Balance outstanding as on

Partner

As per out report of even date

All loans are Rupee denominated and carry no exchange risk. No payment is overdue upto March 31, 2005


for V.NAGARAJAN & CO.,Chartered Accounts

(V.NAGARAJAN)


Audited Financial Statements for the Year ended March 31,2005


DEPRECIATION

Assets As on 01.04.2004

Additions during year

Deletions during the

year

As on 31.03.2005

Accumulated Depreciation

Upto 01.04.2004

Depreciation for the year

Accumulated Depreciation on the assets

deleted

Accumulated Depreciation

Upto 31.03.2005

As on 31.03.2005

As on 31.03.2004

Furniture And Fixture 2,462 881 - 3,344 389 199 - 587 2,756 2,075

Professional Equipment 6,108 6,624 192 12,540 2,615 1,373 169 3,818 8,722 3,493

Office Equipment 1,863 784 2 2,646 288 162 0 450 2,195 1,574

Vehicles 5 - - 5 2 0 - 2 3 3

Sub Total 10,438 8,289 193 18,534 3,294 1,734 170 4,858 13,677 7,145

Intangible Assets 10,000 - - 10,000 1,000 1,000 - 2,000 8,000 9,000

Total 20,438 8,289 193 28,534 4,294 2,734 170 6,858 21,677 16,145 As on 31.03.2004 8,027 12,611 200 20,438 2,201 2,168 75 4,294 16,145

Notes: Depreciation has been provided on straight line method at the rates stated in Notes to Accounts


NET BLOCKGROSS BLOCK (AT COST)

for V.NAGARAJAN & Co. ,Chartered Accountants

(V.NAGARAJAN)Partner


SCHEDULE 5: FIXED ASSETS AS AT MARCH 31, 2005.


Rupees in '000s



SCHEDULES TO THE ACCOUNTS AS AT 31-Mar-05 31-Mar-04Rupees in '000s

SCHEDULE 6: INVESTMENTSShort Term:Non-Trade - QuotedInvestment in Mutual Funds - 10,000 13.05 % Government Stock 2007 90 90 800 units of Face Value of Rs. 100/-Total 90 10,090

SCHEDULE 7 : CASH AND BANK BALANCESCash in hand 188 780 Balances with Scheduled Banks in: Current Accounts (including in transit) 27,399 17,602 Fixed Deposits Unencumbered 5,500 52,633 Pledged 13,012 11,800 Total 46,099 82,814

SCHEDULE 8: LOANS TO RURAL PRODUCERS Nonfarm-Micro Enterprises (ST) 286,482 195,913 Agri Allied 156,286 86,964 Agri Short Term 55,196 33,579 Agri Long Term 15,711 11,167 House Repairs & Extensions 21,340 15,773 Crop Thru On Lenders 996 1,016 Nonfarm-Small & Medium (Long Term) 248 620 Nonfarm-Growth Micro Enterprises 755 528 SHGs and Federation of SHGs 31,647 17,529 Vehicle Loans to CSA/Employees 4,014 3,162 Loans: SUDAMA - 87 Sub Total 572,675 366,339 LESS: Provision for Doubtful debts (2,769) (2,941) Total* 569,907 363,398 * Secured to the extent of Rs.72,717 (Previous year: Rs.53,500)(Rs. in '000)







SCHEDULES TO THE ACCOUNTS AS AT 31-Mar-05 31-Mar-04Rupees in '000s

SCHEDULE 9 : ADVANCES RECOVERABLE (Unsecured - Considered Good)Advances and other amounts recoverable in cash or kind or value to be received -Due from Company under same Management - Bhartiya Samruddhi Investments & Consulting Services Limited 1,106 - Indian Grameen Services 1,937 - -Advance for Expenses 3,433 1,515 -Other Current Assets 972 862 -Interest accrued on Fixed Deposits 1,408 2,520 -Rent and Telephone Deposits 1,112 1,001 -Advance Tax 7,329 5,867 -Premium & Service Charges Receivable 5,028 3,436 -Other Recoverables 3,406 3,406 Total 25,731 18,608

SCHEDULE 10 : CURRENT LIABILITIESCash Security from Borrowers 72,717 53,500 Sundry Creditors 4,753 5,088 Interest Accrued but not due on Loans 801 443 Statutory Liabilities 1,191 618 Total 79,462 59,649

SCHEDULE 11 : OTHER PROVISIONSProvision for Taxation 7,806 5,206 Provision for Doubtful Advances 3,406 3,406 Diminution in the Value of Investments - 48 Total 11,212 8,660







SCHEDULES TO THE ACCOUNTS AS AT 31-Mar-05 31-Mar-04SCHEDULE 12: INCOME FROM OPERATIONSa. Income from Loans to Rural ProducersInterest on Loans to Rural Producers 92,790 78,302 Loan Processing Fees and Other Service Charges 13,746 10,006 Recovery of debts written off in earlier years 2,224 481 Reimbursement of expenses for management of securitised Portfolio 1,157 1,790 b. Income from Insurance DistributionIncome from Insurance Distribution 11,477 3,796 c. Income from Agricultural & Business Development Services

1,300 -

d. Income from Institutional Development Services 817 - e.Consulting Services 235 - Total 123,745 94,375 SCHEDULE 13:INCOME FROM INVESTMENTSInterest 2,078 2,253 Dividend 112 291 Profit on Sale of Investments - 4,494 Total 2,190 7,039 SCHEDULE 14: OTHER INCOMEGrant from SIDBI 3,000 - Other Income 634 1,039 Total 3,634 1,039 SCHEDULE 15 : SALARIES, ALLOWANCES AND BENEFITS TO STAFFSalaries, Allowances and other Benefits 28,607 20,669 Contributions to Provident and Other Funds 1,607 1,171 Training and Staff Expenses 1,890 1,726 Total 32,103 23,566 SCHEDULE 16 : OTHER OPERATING EXPENSESTravel and Conveyance - Directors 882 1,080 - Staff,Agents and Others 14,797 10,446 Postage and Telecommunications 4,115 2,702 Printing and Stationery 2,922 2,119 Administrative Expenses 1,267 382 Rent, Rates and Taxes 2,637 2,222 Office Maintenence 2,585 1,840 Professional Charges 2,229 3,145 Bank Charges 1,751 884 Insurance Expenses 1,615 724 Auditors' Remuneration and Expenses 1,289 942 Internal Audit Fees 754 581 Sundry Balances Written Off 545 673 Loss on Sale of Investments/Assets 261 71 Technical Assistance and Support Services 73 97 Legal Charges 68 231 Total 37,790 28,137

As per our report of even datefor V.NAGARAJAN & CO.,

Chartered Accountants for BHARTIYA SAMRUDDHI FINANCE LIMITEDHyderabadApril 23, 2005


Rupees in '000s



Rs in thousandsYear Ended 31.03.2005 Year Ended

31.03.2004

Cash Flow From Operating ActivitiesNet Profit before taxes 9,000 6,799

Adjustments forProvision for Doubtful Debts - 4,440 Diminution in the value of investments - 48 Depreciation On Fixed Assets 1,734 1,167 Amortisation of Intangible Assets/Miscellaneous Expenditure written off 1,051 1,051 Loss on sale of assets 261 71

(Increase)/Decrease in Operating AssetsInterest Receivable on Loans to Borrowers (207) Other Advances/Recoverables (44,340) (24,752) Other liabilities and provisions 10,426

Loans to Rural ProducersUnsecured Loans to Rural Producers (500,881) Cash Security Returned (27,328)

Loans Recovered 428,220 Cash Security Received 42,683

Net (Increase)/Decrease in Loans (57,306)

Gross Cash used in operating activities (A) (58,263)

Cash Flows from Investment ActivitiesPurchase of Fixed Assets (2,611) Sale of Fixed Assets 54 Sale of Investments 29,850 Net cash flows from Investments Activities (B) 27,293

Cash Flows from Financing ActivitiesIncrease/(decrease) in Borrowed Funds-Global Trust Bank - -HDFC Bank 2,500 -UTI Bank 9,500 -CORDAID (2,000) -SIDBI (10,490) -DID 17,129 -HDFC 12,605 -ICICI Bank 21,512 -Bhartiya Samruddhi Investments and Consulting Services Ltd - -Increase in Overdraft facilities 1,746 Capital Grant from SIDBI 1,925 Net Cash Flows from Financing Activities (C) 54,427

Net increase or decrease in Cash or Cash equivalents (A)+(B)+(C) 23,457 Add: Opening Cash and Cash equivalents 59,357 Closing Cash and Cash Equivalents as per the Books 82,814

As per our report even datefor V. NAGARAJAN & Co.,Chartered Accountants

Hyderabad

(V. NAGARAJAN)Partner Company Secretary Director Managing Director

Cash Flow Statement

April 23, 2005



SCHEDULE TO ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2005 SCHEDULE 17: NOTES ON ACCOUNTS

I) ACCOUNTING POLICIES:

a) Basis of preparation of Financial Statements: The financial statements are prepared under historical cost convention, on accrual basis of accounting and in accordance with the provisions of Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) to the extent applicable, except otherwise stated and the directions issued by Reserve Bank of India for Non Banking Financial Companies from time to time, wherever applicable.

b) Revenue Recognition:

i) Interest on loans and income on insurance distribution is recognized on accrual basis, while the Agricultural, Business Development Service charges and Institutional Development Service Charges are recognized on cash basis as per contracts with the borrowers.

ii) Income on non-performing assets is recognized only when realized and no interest, which has remained overdue for more than six months at the end of the accounting period, is treated as income.

iii) In respect of service contracts income is recognized on the basis of proportionate completion of the contract with reference to the stage of performance and corresponding income.

c) Fixed assets:

i) These are stated at cost. ii) Depreciation is provided on the straight-line method at the following rates:

Category of Asset Rate of depreciation Furniture & Fixtures 6.33% Professional Equipment 16.21% Office Equipment 7.07% Vehicles 9.5%

iii) In respect of additions the depreciation is provided prorata from the date the assets are

put into use. iv) No depreciation is provided on assets acquired through grants.

d) Loans and Advances:

These are classified as standard assets, sub-standard assets, doubtful assets and loss assets in terms of the Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions 1998.

e) Provision for Loan Losses:

i) Provision for doubtful loans and advances have been made as per the norms stated in the Non-Banking Financial Companies Norms (Reserve Bank) Directions, 1988.

f) Write-off Policy:

Loans are written off after the management has exhausted all reasonable options for recovery of principal and interest on the loan.

g) Employee Benefits: i) Provident Fund: Contribution is accounted on actual liability basis and paid to the

Government managed Employees’ Provident Fund Organization.



ii) Gratuity: is being computed as per statutory norms on actuarial valuation basis and paid into a Trust created with and for this purpose, through the group schemes of Life Insurance Corporation of India.

h) Miscellaneous Expenditure:

Miscellaneous Expenditure consists of statutory payments for increasing Authorized Capital. It is written off over five years in equal installments.

i) Accounting for Taxes on Income: Taxes on income have been accounted in accordance with Accounting Standards-22 of the ICAI. Deferred tax liability and asset are recognized subject to consideration of prudence and timing difference.

j) Foreign Exchange Transactions: Foreign currency current assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rates prevailing on that date and the net gain or loss is recognized in the Income and Expenditure Account. All other currency gains and losses are recognized in the Income and Expenditure Account.

k) Intangible Assets:

The acquisition of copyrights, technical know-how and intellectual proprietary rights in the field of Micro finance and Livelihood Promotion has been accounted for as intangible assets. Valued at the cost of acquisition, these assets are amortized over a period of 10 years in equal installments, based on expected future economic benefits accruing to the company.

II. NOTES TO ACCOUNTS 1) Estimated amount of contracts (net of advances) remaining to be executed on capital account and

not provided for Rs. 3,543,750 (Previous year: 3,543,750). 2) CONTINGENT LIABILITES:

a) A demand of Rs. 16,06,224 (excluding accruing interest) has been raised by the Income Tax

Department towards disallowance of certain expenditure claimed as deductions. The company has filed an appeal to Income Tax Appellate Tribunal against the order of the Commissioner of Income Tax.

3) DEFERRED TAX LIABILTY/ASSET:

The Company has accounted for Deferred Tax in accordance with Accounting Standard 22 “Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India. Accordingly, the component of the deferred tax asset/liability as at March 31, 2005 is as follows:

(Rs. in 000s) Deferred Tax Liability As at

31.03.2005As at

31.03.2004 Deferred Tax Asset Nil Nil Deferred Tax Liability Depreciation 2,063 1,185 Miscellaneous Expenses 12 12 Total Deferred Tax Liability 2,075 1,197 Deferred Tax Liability (Net) 2,075 1,197



4) BUSINESS OPERATIONS: The Company provides livelihood promotion services mainly to low-income rural households, comprising •

•

•

Livelihood financial services, namely micro-credit and micro-insurance distribution (for lives and livelihoods of customers) to rural customers mostly un-reached by the formal banking system and insurance companies, with the main purpose of promoting sustainable livelihoods. The company does not provide any savings services as it does not take any deposits.

Agricultural and Business Development Services to enhance productivity and income or reduce cost of production and mitigate risk to its customers. Local value addition and market linkages are also sought to be provided, through collaborators.

Institutional Development Services for rural producers’ institutions to build their capacity establish information and management systems and build collaborations and undertake occasional sector and policy work.

5) SHARE CAPITAL:

a) Shareholding Pattern: Sl. No Shareholder's Name Nos

Amount Rs.000s

% Holding

Amount Rs.000s

% Holding

Equity Shares of Rs 10 each March 31, 2005 March 31,2004

1 Bhartiya Samruddhi Investment and Consulting Services Ltd. 9,990,500 99,905 47.8% 97,905 47.3%

2 International Finance Corporation, Washington 4,700,000 47,000 22.5% 47,000 22.7%

3 Stichting Hivos – Triodos Fonds, Netherlands 2,350,000 23,500 11.2% 23,500 11.4%

4 Shorebank Corporation, Chicago 2,350,000 23,500 11.2% 23,500 11.4%5 ICICI Ltd. 1,000,000 10,000 4.8% 10,000 4.8%

6 Housing Development Finance Company Ltd. 500,000 5,000 2.4% 5,000 2.4%

7 Other Individuals 9,500 95 0.0% 95 0.0% Total 20,900,000 209,000 100.0% 207,000 100.0%

Optionally Convertible Share Warrants of Re. 1 each

8 Bhartiya Samruddhi Investment and Consulting Services Ltd. 700 1 100% 1 100%

Total Equity Funds 209,001 207,001 b) Issue of share warrants for “Sweat Equity”.

The owner of the warrants cumulatively has opted for conversion of 300 warrants amounting to Rs. 3 million in the form of equity shares and the same has been converted into equity. The balance warrants have a value of Rs. 7.0 Million of conversion value into equity. Accordingly, as per the terms of allotment of warrants, the acquisition of copyrights, technical know how and intellectual proprietary rights in the field of Microfinance and Livelihood Promotion has been accounted for as intangible assets, for appropriate amortization over a period of 10 years time as per the accounting policy followed by the company.

c) Issue of Share Warrants to Employee Stock Option Trust: The Board of Directors of the Company had been authorized (by a resolution in the Annual General Meeting of the company held on May 29, 2000) to create a trust for BASIX-



Employees and Agents Stock Option Plan and issue warrants carrying a right to subscribe / convert into the capital of the company up to 10,00,000 equity shares. Such shares, when converted, shall rank pari passu with the existing shares at the time of conversion. However the company is yet to create such trust and hence is yet to issue the warrants.

6) LOANS AND ADVANCES:

a) Asset Classification: The loan portfolio has been classified as per the norms prescribed for classification by the Reserve Bank of India through Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998. The necessary provisions as per RBI norms have been made. The details are shown below:

Rs. ‘000s Asset

Classification Loan Outstanding

(Without provisioning) Provision Loan Outstanding

(Net of provisioning)

As on 31.03.05 As on 31.03.04 Up to 31.03.05

During the period

Up to 31.03.04

As on 31.03.05

As on 31.03.04

Assets No of A/cs

Amount No of A/cs

Amount Amount Amount Amount Amount Amount

Standard 81,105 555,892 52,972 347,349 0 - 555,892 347,349Sub-Standard 2,184 15,516 2,897 17,833 1,502 (281) 1,783 14,015 16,050Doubtful 9 1,267 20 1,157 1,267 110 1,157 - -Sub-Total 83,297 572,675 55,889 366,339 2,769 (171) 2,940 569,907 363,399Other Advances recoverable

3,406 - 3,406

Total 83,297 572,675 55,889 366,339 6,175 (171) 6,346 7) RESERVE AND SURPLUS:

Out of its reserves, in addition to the provisions for doubtful debt as required under RBI guidelines, the Company has established a Portfolio Risk Reserve (PRR) amounting to Rs. 15.5 million as on March 31, 2005 (Rs. 10.0 million on March 31, 2004).

Rs. ‘000

Portfolio Risk Reserve As on 31.03.05

During the year

Up to 31.03.04

Portfolio at Risk (90 days) 20,884 (1,184) 22,068Other Advance recoverable 3,406 - 3,406Total 24,290 (1,184) 25,474Provision for Doubtful Debts 6,175 (171) 6,346Portfolio Risk Reserve 15,540 5,500 10,040Total 21,715 5,329 16,386Provision and Portfolio Risk Reserve as a % of PAR 90 89.4% 25.1% 64.3%

8) DETAILS OF BAD DEBTS WRITTEN OFF

a) In the opinion of the Board of Directors the following loans are unrecoverable and the company has exhausted all reasonable options for the recovery.

Rs.000s

During the year 31.03.2005 During the year 31.03.2004 No of A/c Amount No of A/c Amount Loans overdue by 730 days or over 977 7451 520 4,488Loans overdue between 400 to 730 days 43 284 509 3,746Loans overdue below 400 days 3 12 18 81Total 1,023 7,747 1,047 8,315



In the opinion of the Board of Directors, all the other loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Accounts b) During the year an amount of Rs. 2,224,071 (Previous year Rs 480,838) has been recovered in respect of the loans written off in earlier years.

9) INTEREST ON LOANS TO RURAL PRODUCERS:

This is net of rebates for on-time repayment of Rs. 1,734,356 (Previous year Rs. 1,561,247) and interest de recognized of Rs. 4,897,167 (Previous year Rs.7,080,356).

10) SERVICE CHARGES TO CUSTOMER SERVICE AGENTS: The amount paid to Customer Service Agents consists of the following: Rs. 000s

Sl No Account Head March 31, 2005 1 Credit Operations 15,209 2 Insurance - Credit Plus 286 3 Insurance - Direct Sales 20 4 Service Charges to LPAs 633 5 Expenses of LPAs 137 Total 16,285

11) REMUNERATION TO MANAGING DIRECTORS Total Remuneration includes: Rs.000s

Sl No Account Head March 31, 2005 March 31, 2004 (i) Salary & Allowances 1,691 836 (ii) Contribution to Provident

and other funds 86 53

(iii) Estimated amount of Gratuity

- 138

Total 1,776 1,027 12) AUDITORS’ REMUNERATION

This includes: Rs. 000s Year ended March 31, 2005 March 31, 2004 a) Audit Fees 748 539 b) Fee for Certification 77 45 c) Taxation 95 90 d) Systems Audit & Other Services 120 - e) Out of Pocket Expenses 384 267

Total 1,424 941




13) EARNINGS AND OUTGO IN FOREIGN CURRENCY:

Rs.000s Year ended March 31, 2005 March 31, 2004 Earnings: - - Expenditure: Interest on Loans Travel Staff Training

1,98715728

5,847

614

Outgo: Remittance on account of Principal Repayment of loan

23,920

2,000

14) MISCELLANEOUS:

a) Assets in the form of Information Technology, Systems Design and related Hardware, Software for improvement of the business operations of the Company under IFC Technical Assistance Facility through Bhartiya Samruddhi Investments and Consulting Services Ltd have been completed. The cost of such assets have not yet been valued and recorded in the books of the company as on 31st March 2005.

b) No amount is due to any small-scale industrial undertaking by the company. c) Balance sheet abstract and company’s general business profile, pursuant to Part IV to

Schedule VI is separately attached d) Additional information pursuant to paragraph 4-C and 4-D of Part B to Schedule VI of the

Companies Act, 1956 – None other than stated above. e) Previous Year figures have been regrouped and rearranged wherever necessary.

for V. NAGARAJAN & Co., for BHARTIYA SAMRUDDHI FINANCE LIMITED

Chartered Accountants Hyderabad, April 23, 2005.

(V. NAGARAJAN) Partner Company Secretary Director Managing Director

bhartiya samruddhi finance limited · 2018. 3. 28. · bhartiya samruddhi finance limited schedules...

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