HARIBHAKTI A Shree

HARIBHAKTI A CO.Chartered Accountants

Shree Shanmugappriya 2nd Ftoor, 45,{, Ponnaiyan Street, Crosscut Road, candhipuram, Coimbatore - 641 012. India.Board |-91 4712237793 / 8793 Fax:+91 472 2233793 www.bdoindia.co.in

INDEPENDENT AUDITORS' REPORT

To the Members of Indian Association for Savings & Credit

Report on the Financial Statements

We have audited the accompanying financiat statements of lndian Association for Savings & Credit("the Company"), which comprise the Batance Sheet as at March 31, 2013, and the Statement ofProfit and Loss for the year then ended and a summary of significant accounting poticies and otherexptanatory information.

llonagement's Responsibi Ii ty f or the Fi nanciol Stotements

Management is responsibte for the preparation of these financiat statements that give a true andfair view of the financiat posjtion, financjat performance of the company in accordance with theAccounting standards referred to in sub-section (3c) of section 21'1 of the Companies Act. 1956("the Act"). This responsibitity inctudes the design, jmpLementation and majntenance of internalcontrol retevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from materiat misstatement, whether due to fraud or error.

Auditors' Responsibi Iity

Our responsibitity is to express an opinion on these financial statements based on our audit. Weconduct?d our audit in accordance with the standards on Auditing issued by the Institute ofCharter6d Accountants of India. Those Standards require that we compty with ethicat requirementsand plan and perform the audit to obtain reasonabte assurance about whether the financiatstatements are free from materiat misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anodisctosures in the financiaI statements. The procedures setected depend on the auditors' judgment,including the assessment of the risks of materiat misstatement of the financiat statements, whetherdue to fraud or error. In making those risk assessments, the auditor considers internal controtretevant to the Company's preparation and fair presentation of the financial statements in order todesign audit procedures that are appropriate in the circumstances. An audjt atso inctuoesevatuating the appropriateness of accounting poticies used and the reasonabteness of tneaccounting estimates made by management, as wett as evatuating the overatt presentation of thefinanciaI statements.

we betieve that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, thefinanciaI statements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principtes genera .y accepted in India:(a) in the case of the Balance sheet, of the state of affairs of the company as at March 31,2013;(b) in the case of the statement of Profit and Loss, of the Loss for the year ended on that date.

Othe. offices:Ahmedabad . Bengaluru . chennai . Hyderabad . Jaipur. Kotkata. Mumbai . New Dethi . pune .

HARIBHAKTI E CO.Chartered Accountants

Continuation Sheet

REPORT UNDER NBFC AUDITORS' REPORT (RBI) DIRECTION .I998

TO THE BOARD OF DIRECTORS OF INDIAN ASSOCIATION FOR SAVINGS & CREDIT

We have audited the attached Batance sheet of Indian Association for Savings & Credit as at

31.03.2013 under the Companies Act, 1956 and enctose our report thereon.

As required by the Non Banking Finance Companies Auditors' Report (Reserve Bank) Directions,

1998, we further report as foltows:

The Association is exempt from obtaining the Certificate of Registration from Reserve

Bank of India by Virtue of compliance with the conditions taid down in Reserve Bank of

India's Notification No: DNBS 138/CGM (VSNM)-2000 dated 13th January, 2000, referred

to in the Master Circutar No. DNBS. PD.CC. No.282l03 .02.004 /2012-13, dated 07.07.20i2

The Board of Directors of the Association has passed a resotution for the non-

acceptance of any pubtic deposit on 17th December 2012.

As per the Comptiance certifjcate received from a practicing company secretary, the

company has not accepted any Pub(ic deposits during the year ended 315t March, 201 3

As the Association has not accepted pubtic deposit, the NBFC Prudential Norms (RBl)

directions 1998 (Notification No. DFC.'l'19lDG (SPT) 98 dated 31.01.1998) are not

aDDlicabte to it.

For Haribhakti & Co.

Chartered Accountants

)

ilr)

tv)

"7T,.tn$C. S.Sathyanarayanan

Partner

Membership No.028328

Coimbatore

June 12,2013.

HARIBHAKTI & CO.Chartered Accountants

Continuation Sheet

Report on Other Legal and Regulatory Requirements

1. This report does not contain a statement on the matters specified in paragraphs 4 and 5 of theCompanies (Auditor's Report) Order, 2003 ("the order") issued by the Centrat Government oflndia in terms of sub-section (4A) of Section ZZ7 of the Act since in our opinion and according tothe information and exptanations given to us, the said Order is not appticabte to the company.

2. As required by section 727 (31 of the Act, we report that:

a' we have obtained alt the information and explanations which to the best of our knowteogeand belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by taw have been kept by the Company sofar as appears from our examination of those books:

c. the Batance Sheet, Statement of Profit and Loss deatt with by this Report are in agreementwith the books of accounr.

d. in our opinion, the Balance sheet, statement of Profit and Loss compty with the AccountingStandards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e. on the basis of written representations received from the directors as on March 31, 2013, anotaken on record by the Board of Directors, none of the directors is disquatified as on Marcn31, 2013, from being appointed as a djrector in terms of clause (g) of sub-section (1) ofsection 274 of the Companies Act, 1956.



Firm Registration No. 1 03523W

,bhyanarayanan

Partner

Membership No.028328

Coimbatore

June 12,2013.

INDIAN ASSOCIATION FOR SAVINGS AND CREDIT

(Registered under section 25 of the Companis Act, 1956)

Balance Sheet as at 31st .rch 2013( Amount in < )

60,m,0(D

2,53,%,EO9

3,96,0E,956

15,39,256

cash and Cash Eqlivalents

Short-Telm Loans and Advances

Oth€r Current Arsets

60,m,0@

1,89,51,088

3,20,m,908

1,99,726

24,01,142

8,21,m1

36,27,6@

1,58,62,636

3,U,12,222

6,53,55,E96

76,96,011

r,'13,439

7,53,$29,3E,962

72,16,081

5,05,07,r91

13,23,25,@

76,61,121

Summary of Significant AccountinS Poticies 1

The accompanying not6 2 to 29 are an integrat part of the financiat statements

Vide our repon of date attached

For Haribhakti & co.


For and Behalf of the Board of Directors

tion No. 103521W

w&4&,lcrnbership No. 028328

Phce : Coimbatore

ortc :12.06-2011

$"

PARTICULARS Iotc *o. 5 rt 31rt

liarch,20'llA.t llrt

,i.rch, 20 | 2

EQUITY AND LIABILITIES

Sh.reholder's Fundl

Share CapitaL

Reservg and Surplus

Non-Current Liabilities

Long-Term Borrowings

Other Long Term Liabitities

Oth€r Cunent Lhbltltle!

A5S€T5

Total

2

3

4

f

6

7

8

9

10

11

12

12,73,76,808 19,76,16,158

12,73,76,808 19,76,',16,158


(Registered under Section 25 of the Companies Act, 1956)

Statement of Profit & Loss for the year ended 31st March 201 3( Amount in ( )

NoteNo.

Year ended 31stftlarch, 2013

Year ended 31stl{arch,2012

t.

il.

ilt.

tv.

v.

vt.

vll.

vlll

Revenue from Operations

Other Income

Total Revenue (l + ll)

Expenses:

Employee Benefit Expenses

Finance Costs

Other expenses

Depreciation and Amortization Expense

Total Expenses

ProfiV(Loss) before Tax ( lll ' lV)

Tax Expense:

(1) Current tax(2) Deferred Tax Asset

(3) Taxation for earlier years

ProfiU(Loss) for the Period (V - Vl)

Earnings Per Equity Share of face value t10 each

l( Refer note No.29)

laa*c & Dituted

13

14

15

16

17

7

3,68,19,576

24,78,175

7,23,60,625

14,13,796

3,92,97,751 7,37,74,421

1,73,90,250

1,70,39,784

1,79,13,248

10,26,502

1,97,54,1522,54,20,U21,53,52,5U

'l 5,05,641

4,83,69,783 6,2O,32,339

za,ag,6la(2,60,3271

(9O,72,0321 1,17,42,082

(39,71,000)

1,86,857

(64,43,7211 79,57,939

(10.74) 13.26

Summary of Significant Accounting Poticies 1

The accompanying notes 2to29 are an integrat part of the financial statements

Vide our report of date attached



ten No. 103523W

For and Behatf of the Board of Directors

,9w Y**4SDirector,NARAYANAN

Partner

liembership No. 028328

Place: Coimbatore

Drtc :12-06-2013

PARTICULARS

EQUITY AND LIABILITIES

SHAREHOLDRER's FUNDS

NOtC NO.2 SHARE CAPITAL

a) Terms/Rlghts rttached to equlty share3 :

The comparry has onty one ctass of equity shares having a par vatue of a 10 per share. Each equity shareholder ls entltted to one vote per share.

xote No.3 RESERVES &suRPLUs

NOIE NO./I LONG TERIA BORROWINGS

i) Debentures repreeents 20, 0o,oo0 s€cured Non - convertible 6.5N debentures of ( 10 each issued for cash at par to Housing Developm€nt Finance

dorporatton Limited. These debentur6 are s€cured by a mortgage of Land owned by the company at Lonavala. The debentures are redeemabte on

30.(X.2013.

ll) Term toan from Gruh finance are secured by way of hypothecation of standard book debts and fixed deposits to the extent of 8i of the loan amount

to be hetd till the date of currency of the toan. The loans are repayable in 5 & 17 monthty equated instalments respectively. The interest is payabte on

monthly basis and the rate of interest is in the range of 13% to 16% per annum'

lll) Term Loans from Canfin Homes Limited are secured by way of hypothecation of book debts and receivables. The loans are repayable in 17 & 22

lhare celt lAs rt 31.03.2013 As.t 31.03.20'12

ln Numb€rt Amount In t ln Numb€6 Amount ln tAuthorl3ed

30,00,000 Equlty Shares of I 10/- each

lssued. Subscrlbed md Pald uo

6,m,000 Equity Shares of < 10/' Each

30,00,000 3,00,00,000 r0,00,000 r,00,00,000

6,00,000 60,00,000 6,00,000 60,00,000

60,@,000 60,00,000

ilafile of the *urehotder

Equlty Sh.retAsat 31.03.2013 A5.t 31.03'2012

No. ofShares held

trofHotdirB

No. ofShar6 he{d

xofttotdlrB

;ur!r'oday Micro Finance h^ Limited

HDFC Ltd

Palmyrah Worke6 DevetoPment Society

5,99,930 99.99X

z,cc,9loI,m,m0

49.99%

50.00%

5,99,9 30 99.99* 5,99,930 99.9

ReierYes d|d Surplu3As rt 11.03.2013 & at 3t.03.2O12

Arnouflt ln T Amount |n <

iurplus In the Statement of ttofft & Lods

)pening balance

Md : Net profit/(Loss) transferred from Statement of Profit and Loss

2,53,94,809

(64,43,721

1,74,36,87079,57,939

t,89,51,0E8 2,5 3,9,f,E09

Lory Term lorrowlrBsfloo - curtent portkr Curr€{t lLtrsltle!At at

3t,o3.20r 3

A5 rt31.03.2012

Ar$31.03.2013

Ar at3r.0t.2012

ic.cwed

Debenture

20,00,000 - 6.5% Secured Non ' Convertlble Debentures of t 10 each

Loans fro{n bank and financiat institutions

UnsecurEd

Loans and advances from Related Partl€s

3E'89'/t'15

2,81,13,162

1,71,52,45

2,21,ft,173

2,00,00,000

1,56,41,789

1,58,60,781

2,00,m,000

8,68,63,81 8

84,02,016

3,20,02,908 3,96,OE,95E 5,15,O1,570 1 I,52,65,E34

Amount disclosed under the head "Other Current Liabitities -

Current maturities of Long term debts ( Refer Note No. 6)

(5,1 5,04,570) (1 1,52,65,8341

3,20,02,90E 3,96,08,958

a)monthty instatments respectivety . The interest is payable on monthty basis and the rate of interest is in the range of 22% to 25% per annum'

iv) Unsecured Term Loans from Suryoday Micro Finance Pvt Ltd are repayabte in 6 & 7 equated quarterty instatments resp€ctively. The interest is payabte

on quarterly basis ant the rate of interest is 1 7% p€r annum.

v) Unsecured Term Loans from HDFC are repayabte with variable maturity terms ranging between 30 to'180 months respectively. The interest is payable

on monthly basis and the rate of interest is in the range of 7.5% to 9% per annum.

NOIE NO.5 OTHER LONG TERI,I LIABIL]TIES

Note No.6 OTHER CURRENT LIABIL]TIEs

ASSETS

NOX CURRENT ASSETS

NOIE XO.E DEFERRED TAX AsSETs

CURREXT AssETS

NOIE XO.10 CAsH AND CASH EQUIVALENTS

f Margin Oeposit inctudes deposits of < 54,00,000/- under lien for toans obtained from Gruh Finance Limited and ( 40'00,000/' towards

flnanciat services agreement entered into with Yes Bank.

I

OfiER LONS TER,I* LIA8|LITIESAs.t 31.03.2013 As it 31.O3,2O12

Amount In < Amount in <

Joint LiabiLity Fund (Refer Note No.23) 1,99,776 1 5,39,258

1,99,726 1 5,39,258

Oth€r curtent Ll.aHtltl6Ai.t 3i.03.2013 As.t 31.o3.2o12

Amount ln ( Amount ln {Curreflt llaturltic of Long Tefm Hts (Refer Note No: '{)Statutory UretProvlslon for ExDentet

Joint Liabltlty Fund (Refer Note No.23)

Disbursements In Pipetine

Other Liabitities

5,15,U,5703,1 5,1 05

1,4,1871 0,3,1,080

1,59,80,31,{

9,40,830

1 1,52,65,83.1

9,6,0719,25,869

79,69,196

1 1,860

7,02,23,086 1 2,50,73,1 33

Deferred tax Ass€{5As at 11.03.2013 As at 31.o3.2o12

Amount ln I Arnount ln (Fircd Assets

Disallowances under the income tax Act

1,12,126

36,E5,174

1,63,365

7,75,597

3E,77,eO 9,38,962

NOtC NO.9 LONG TER'A LOANS AND ADVANCES

LorE t€fm Loat6 and AdvanceiAs.t 31.03.2013 As at 31.03.2012

Amount In ? Amount Ir tJnjecured consldered Good

Loans granted (Refer Note No.2'l )

Advance Income Tax (Net of provisions)

Security Deposits

99,99,1 1 9

42,73,041 5,90,471

56,55,31 1

1,30,725

1 2,30,045

1,58,62,636 72,16,O81

Cr3h rtd C.ift ESrlvolcntsAs rt 31.03.2013 As at 31.03.2011

Amount h < Amour|t ln tCash and Cash Eoulvalents

Cash on Hand

Batance with Banks

ln Current Account

In Short term Deposits

Other bank balance

Term Deoosits

Margin Deposits #

6,61,388

1,89,50,835

73,00,000

I,00,000

94,00,000

6,20,n1

78,86,121

2,90,00,000

25,00,000

1,05,00,000

3,61,12,222 5,05,07,1 91

NOIE NO.1 I SHORT TERA.i LOANS & ADVANCES

Loans Granted (Refer Note No.21 )

Consldered Good

considered Doubtfut

!C!!: Provision for Bad Debts & doubtfut Debts

Provlslon for Bad and Doubtful Debts

The Company has a prudent poticy of reviewing its internal guidetines for determining the provision to be made for bad and doubtful advance on an

Bad & doubtful Debts

The Loans identified as bad and doubtfut debts and remain uncoltected for 365 days after the expiry of tenure/death of the borrower is futty written off.

XOIE NO.12 OTHER CURREXT ASSETS

provides for doubtful loans in the

amount with age 91 to 180

amount with age 181 to 365

accrued and due on the

Commission Receivable

Prepaid Expenses

Receivable from Related Partie6

Advance to Employee6

Interest Accnied on Flxed deposits

Gratuity

Other Receivables

3,38,338

3,75,993

3,96,189

1,02,m41 3,1 1,846

I,57,610

1 4,031

,r,30,564

1,/13,500

19,,18,390

3,38,870

Short tsrm Lo.ns & Adv.nceg


Note No. 13 REVENUE FRm OPERATIONS ( Amount in ( )

Revenue from Operations

Interest Income

Other operatinq income

Admission fees

Centre fees

Loan Processing fees

Training fees/income

Commission Income

Stationery fees

Bad Debts recovered

Provision for Doubtful debts,no longer required written back

3,30,4E,73E

't 1,94,850

3,38,338

2,81,150

'1,81,46

17,75,034

6,4,n,154

74,070

18,108

22,52,158

11,72,W

4,74,07f

39,20,05g

Note No. 14 OTHER INCOME

Profit on Sale of Assets

Miscellaneous Income

Excess provision written back

Note No. 15 EilPLOYEE BENEFIT EXPENSES

Contribution to PF and Other Funds

lncentives

Staff Welfare Expenses

Note No. 16 FINANCE COST

Interest Expense

Other Borrowing Costs

T{AK ' 7)

t--\q

ParticularrFor the Year Ended

31.03.2013For the Year Ended

31.03.2012

3,68,19,576 7,23,60,625

ParticularcFor the Year Ended

31.03.201 3

For the Year Ended

31.03.2012

16,)6,zKr9

2,',t6,fi4'1,14,766

4,88,496

12,21,4_29

78,076

't,'14,291

21,78,17s 14,13,796

ParticularrFor the Year Ended

31.03.201 3For the Year Ended

31.03.20t 2

1r3E,27,53O

17,72,916

9,03,432

8,86,372

1,5/,10, JUy

18,69,26

5,06,865

'16,67,632

1,73,9O,25O 1,97,54,152

ParticularsFor the Year Ended

31 .03.201 3

For the Year Ended

31.03.20r 2

1,69,U,5@

55,274

2,49,20,042

5,00,000

1,7O,39,784 2,54,2O,O42

AY?-/

tl

R

Note No. 17 OTHER EXPENSES

Travelling & Conveyance

Postage & Telephone

lnsurance

Rent

Etectricity Charges

Printing and Stationery

Repair & Maintenance

- Buitdings

- Computers

- Office Equipment

- Vehicle

Professional & Legal Expenses

Auditor Remuneration

Rates & taxes

Service tax paid

Professiona[ Tax

Brokerage and Incentives

Bank Charges

Provision for Bad Debts

Bad debts writtenoff

Loss on sale of assets

Miscellaneous Expenses

18,41 ,8098,46,567

2,69,942

15,19,152

7,80,666

4,77,920

1,32,636

4,83,318

7,357

1,24,754

9,02,365

2,24,720

30,674

1,29,7N

35,828'l ,38,139

99,418

5,01 ,328

43,03,339

5,63,621

24,93,340

15,02,211

10,57,992

15,U,799

4,53,670

5,92,123

25,U72,16,008

57,792

2,03,575

9,98,894

4,19,670

6,77,071

3,1 7,035

1,10,U0

4,98,097

2,12,922

1,(X,010

32,36,591

3,742

5,96,695

1,29,',13,249

a. for Statutory Audit

b. for Taxation Matters

c. for Other SeMces

d. Service Tax

l

I

ParticularsFor the Year Ended

31 .03.201 3

For the Year Ended31.03.2012

1,53,52,5(X

Remuneration to audltors For the Year Ended31 -O1-?O1 I

For the Year Ended1r ,o1-?o1?

ar*r:

24,720

l,u0,Ltr.x)

26,255

1,47,250

46,',!65

2,24,720 4,19,670

xo cnrortb-t-DrE

At on 01.0,1.2012 At oh!i.01.2011 uPro ti.01.2012 upto3l.0l.201:l A3 611.01.2011 !r.o!.2012

f I I I a t I

ItlrDlelrllltLano

lmprovementt toL.asehotd Buildlng

Furniture 6 Flxturet

Oftice Equipm.nta

Vehicles

Computers

20.00i

18.10X

1t.9tx

25.89X

40.00x

6,74,000

16,21,899

2t,95,776

7,10,761

11,70,559

15,05,033

11,662

88,888

1,98,U1

31,970

r,25,500

6,74,0m

16,74,E99

21,96,932

6,90,156

13,70,559

32,68,421

16,21,899

15,78,742

3,72,528

10,17,001

26,54,119

1,4,946

47,E17

66,358

3,50,818

1,19,526

| 8,700

3,07,42

16,24,E99

15,76,161

1,O1,615

11,23,361

26,97,755

6,74,000

6,20,16a

2,6E,E11

2,47,19a

5,70,666

6,74,004

8,17,034

1,18,215

1,13,556

8,50,6r4

Tot.l 1,02,tt,o3t 1,00,550 5,5 6,314 94,2s,267 72,57,591 6,11,911 1,75,7OE 7+Zt,a21 21,O1,112 30, | 3,4,10

lnt.mible Asset3

Computer Software t3.ll% 22,59,266 4,62,000 27,21,266 15,05,704 3,94,561 19,00,255 8,21,001 7,53,562

Total 22,59,266 ,4,62,000 27,21,266 15,O5,701 3,9.t,56r r9,00,265 E,21,001 7,53,562

Grand Total 1,25,10,297 5,62,550 5,56,31,4 1,25,46,533 E7,73,295 1o,26,502 1,75,704 93,24,0t9 12,22,113 t7,67,O02

6P*\\r (cot,"u"ront,; tL^\ /

=\tX--1",1

Documents

HARIBHAKTI A Shree