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 of Profit and Loss for the year then ended and a summary of significant accounting poticies and other exptanatory 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 and fair view of the financiat posjtion, financjat performance of the company in accordance with the Accounting 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 internal control retevant to the preparation and presentation of the financial statements that give a true and 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. We conduct?d our audit in accordance with the standards on Auditing issued by the Institute of Charter6d Accountants of India. Those Standards require that we compty with ethicat requirements and plan and perform the audit to obtain reasonabte assurance about whether the financiat statements are free from materiat misstatement. An audit involves performing procedures to obtain audit evidence about the amounts ano disctosures 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, whether due to fraud or error. In making those risk assessments, the auditor considers internal controt retevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audjt atso inctuoes evatuating the appropriateness of accounting poticies used and the reasonabteness of tne accounting estimates made by management, as wett as evatuating the overatt presentation of the financiaI statements. we betieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financiaI statements give the information required by the Act in the manner so required and give a true 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 .
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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
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.
For Haribhakti & Co.
Chartered Accountants
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.
Chartered Accountants
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
INDIAN ASSOCIATION FOR SAVINGS AND CREDIT
(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
For Haribhakti & Co.
Chartered Accountants
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
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.