ANNUAL REPORT 2 0 0 9 - 2 0 1 0 - Samasta...The Directors namely Mr. A. Ramanathan [w.e.f...

ANNUAL REPORT

Empowering Individuals, Enriching CommunitiesSamasta Microfinance Limited

2 0 0 9 - 2 0 1 0

1

CORPORATE INFORMATION

Board of Directors

1. A. Ramanathan

Director

2. A. Vikraman

Director

3. Badri Seshadri

Director

4. Solomon Jayaprakash

Director

5. R.C. Shekar

Director

6. D. Shivaprakash

Director

7. N. Venkatesh

Managing Director

AuditorsM/s. Gowthama & Co.

23/57, 41st Cross, East End 'C'

Main Road, 9th Block, Jayanagar,

BANGALORE 560 069.

Tel: +91 80 2665 6194

Registered Office

6, 1st Floor, Eastern Wing,

Plot No.4, Udayam Colony,

Vembuliamman Koil 1st Cross Street,

West KK Nagar,

Chennai - 600 078.

Tel: +91 44 4216 9557

Head Office

414/5, 4th Cross,

Wilson Garden,

Bangalore - 560027

Ph No: +91 80 4120 6915

Fax: +91 80 2224 4538

Email: [email protected]

Website: www.samasta.co.in

2

1 State Bank of India

2 Union Bank of India

3 State Bank of Travancore

4 Small Industries Development Bank of India

5 Lakshmi Vilas Bank Ltd.

6 Karur Vysya Bank Ltd.

7 Bank of Baroda

8 Bank of Maharashtra

9 HDFC Bank Ltd.

Institutional Lenders

1 IFMR Capital

2 Manaveeya Holdings & Investments Pvt. Ltd.

3 Reliance Consumer Finance Pvt. Ltd.

Bankers

Table of Contents

Corporate Information 1

Directors’ Report 4

Company Profile 9

Customer Profile 9

Performance Statistics 9

Other Activities 12

Samasta Team 14

Financial Statement 15

Auditor’s Report 28

4

DIRECTORS’ REPORT TO THE MEMBERS

1. INTRODUCTION

2. PHILOSOPHY BEHIND THE NAME AND THE LOGO

3. FINANCIAL RESULTS

The Board of Directors is pleased to present the 15th Annual Report together with the

audited Balance Sheet and Profit & Loss Account for the year ended 31st March,

2010. The working results for the year ended 31st March 2010 has been satisfactory.

The highlights are as under:

This annual report covers the second full year of microfinance operations. Our vision

is to partner with the working poor, create better opportunities for them and be

admired for our organizational model.

Our microfinance model is based on creating opportunities through social change and

alleviation of poverty. We also believe that financial discipline can be inculcated by

shifting the onus of loan repayment on a group of people rather than the individual.

Samasta’s vision (in Sanskrit: all-encompassing) is to involve the individual and

community in creating a social change where it is most needed. We believe that a

better quality of life can be achieved by being the catalyst for change and

development, thereby enabling individuals to rise above limiting circumstances.

At the core of our logo is the symbolic human figure with an arrow to represent a

forward movement of an individual towards development. The idea of a 'fractal' where

the same figure is replicated many times represents our belief that this change can be

replicated and grows organically from individual to society and further. Here, several

individuals come together as a group to support this growth and subsequently their

entire community. The three concentric circles represent the increasing reach of the

organisation to include more members, and the possibility of limitless growth and

change. The choice of colours represents warmth and energy.

The company has earned a Net Profit of Rs.11,38,086/- (Rupees Eleven Lakhs Thirty

Eight Thousand and Eighty Six only) after charging depreciation of Rs. 12,00,752/-

(Twelve Lakhs Seven Hundred and Fifty Two) and provisions for tax.

20% of this profit has been attested towards statutory reserve as per RBI Norms.

Particulars 2008-09 2009-10

Gross Income Rs. 1,21,30,929 Rs. 3,46,39,563

Net Interest Income Rs. 65,30,500 Rs. 1,64,15,024

Net Profit after Tax Rs. 3,10,798 Rs. 11,38,086

Creating social change


Active Customers 19,255 55,024

Loan Disbursement (Rs. Crores) 5.44 40.12

Portfolio Outstanding (Rs. Crores) 2.82 26.38

No. of Branches 7 24

No. of Centres 669 2198

No. of Employees 110 210

Repayment Rate 100% 100%

5

4. DIVIDEND

5. OPERATIONAL HIGHLIGHTS

The Directors do not recommend any dividend for the year.

The following table highlights the current year’s growth vis-a-vis last year’s numbers.

The following graphs provide the break-up across the three regions Chennai, Bangalore and Coimbatore.

Limitless growth

60,000

50,000

40,000

30,000

20,000

10,000

0

ACTIVE CUSTOMERS

Chennai

Bangalo

re

Com

bato

re

Tota

l

Chennai

Bangalo

re

Com

bato

re

Tota

l

Mar’10

Mar’0945

40

35

30

25

20

15

10

5

0

DISBURSEMENT

(Rs. Crores)

17.43

3.37

40.12

5.44

14.22

1.21

8.47

0.86

Mar’10

Mar’09

Chennai

Bangalo

re

Com

bato

re

Tota

l

Mar’10

Mar’0945

40

35

30

25

20

15

10

5

0

CENTRES

2198

669 878

336

754

217 566

116

22102

9675

20713

6515

12209

3065

55024.

19255

Chennai

Bangalo

re

Com

bato

re

Tota

l

Mar’10

Mar’09

30

25

20

15

10

5

0

PORTFOLIO OUTSTANDING

(Rs. Crores)

10.78

1.42

26.38

2.81

9.54

0.85

6.06

0.54

Paid up Capital Share Application Share Total Share Money Premium Capital

Capital Infusion Details (Rs. Crores)

5.70 0.07 2.00 0.6 8.37

Equity Preference Equity

9. EMPLOYEES

10. AUDITORS

11. DIRECTORS

12. DIRECTORS' RESPONSIBILITY STATEMENT

There are no employees attracting the provision of Section 217 (2A) of the Companies Act, 1956 as

amended by the Companies (Amendment) Act, 1988, who are in receipt of remuneration of not less than

Rs.24,00,000/- p.a., or Rs.2,00,000/- per month or part thereon. (Previous Year-Nil)

The existing Auditors M/s. Gowthama & Company, Chartered Accountants, having its office at No. 23/57,

41st Cross, East End 'C' Main Road, 9th Block, Jayanagar, Bangalore-560 069, retire at the conclusion of

the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

The Directors namely Mr. A. Ramanathan [w.e.f 23/04/2009], Mr. Vikraman Ampalakat [w.e.f 26/06/2009]

have been appointed as additional directors during the period under review. Their appointments have been

regularized at the Annual General Meeting held on 24th day of August 2009.

Pursuant to section 217(2AA) of the Companies Act, 1956, the Directors confirm to the best of their

knowledge and belief that:


Capital Adequacy Ratio 97.83% 31.59%

6

6. SHIFTING OF REGISTERED OFFICE

7. CAPITAL ADEQUACY

8.CAPITAL INFUSION

The Company is in the process of shifting its Registered Office from Chennai in the

State of Tamilnadu to Bangalore in the State of Karnataka. In this connection an

Extraordinary General Meeting of the company was held on 15th March 2010.

Samasta's Promoter-Directors, along with a Venture Capitalist and High Networth

Individuals, have brought into Samasta an additional capital of Rs. 5.60 crores during

the financial year 2009-10.

Catalyst for development

Company Profile

Our Vision

Our Mission

Samasta Microfinance is a public limited, for profit

Non Banking Financial Company, established in

March 2008. We offer microfinance solutions to the

urban and rural poor in South India, and currently

operate in the states of Tamil Nadu and Karnataka.

Our aim is to drive social change and be a catalyst for

entrepreneurial ambition by providing a host of

financial and non-financial products to our members.

To be a valued partner of the working poor,

appreciated for its role in creating opportunities and

admired for its organizational model.

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.

Products

Samasta currently offers Income Generation Loans to women running the micro and small businesses.

joint-liability group loan repayable in 50 weeks with an interest rate (flat) of 13% per annum.

The loan amount varies between Rs. 7,500 and Rs. 15,000 depending on the loan cycle.

Customers who have completed one loan cycle are eligible for educational loans. The educational loan is for

school-going children of customers and will cover annual tuition fees and the cost of books for a tier II or tier

III private school.

It is a

8

No. of Customers 55,024

Loan Disbursement Rs. 40.12 Cr.

Portfolio O/S Rs. 26.38 Cr.

No. of Branches 24

No. of Employees 210

Repayment Rate 100%

Outreach Snapshot

Providing financial assistance

Bangalore20713

Chennai22102

Coimbatore12209

CUSTOMERS

Bangalore10

Chennai11

Coimbatore6

PORTFOLIO OUTSTANDING(Rs.in crores)

Customer Profile

Samasta caters to customers from diverse backgrounds, living and working in urban and semi-urban areas.

Performance Statistics

Samasta expanded significantly during the year 2009-10 as compared to 2008-2009

identified and new branches were opened. Existing customers with good track record were upgraded to

higher loan amount in the subsequent loan cycles.

. New areas were

9

Customer Segmentation Age-wise

18-2

0

21-2

5

26-3

0

31-3

5

36-4

0

41-4

5

46-5

0

51-5

5

14000

12000

10000

8000

6000

4000

2000

0

No. of Members

347

5063

1

0881

1

1671

10832

9061

5

859

1

310

Customer Occupation Sector-wise

12000

10000

8000

6000

4000

2000

0

Agriculture - Indirect Professional & SelfEmployed

Retail Trade Small Business

Chennai

Bangalore

Coimbatore

Empowering individuals

Top Occupations

Others40%

VegetableVendor

5%Tailor16%

SmallEatery

4%

IdlyBatter

4%

FlowerVendor 8%

FlourVendor4%

DailyLabour

4%

ClothSales15%

494

440

410

420

430

440

450

460

470

480

490

500

2008-09 2009-10

No. of Members per FWO (Amount in Crores)

No. of members per FWO

Outstanding per FWO0.07

0.21

0.00

0.05

0.10

0.15

0.20

0.25

2008-09 2009-10

Outstanding per FWO (Amount in Crores)

Extending microfinance solutions

10

Mar’10

Mar’09

Mar’10

Mar’09

9

3 61

24

7 9

3

Disbursement Region-wise

35

30

25

20

15

10

0

Chennai

Bangalo

re

Com

bato

re

Tota

l

BRANCHES

70%

60%

50%

40%

30%

20%

10%

0%

Chenna

i

Bangalo

re

Com

bato

re

Tota

l

DISBURSEMENT(Rs. Crores)

3.3

7 1

7.4

3

1.2

1 14.2

2

0.8

6 8.4

7

5.4

4 40.1

2

Branch Network

11

Better quality of life

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

2008-09 2009-10

Operating Expenses Ratio

0%

5%

10%

15%

20%

25%

30%

2008-09 2009-10

Administrative Expenses Ratio

Administrative Expenses Ratio

106%

106%

107%

107%

108%

108%

109%

109%

2008-09 2009-10

Operational Self Sufficiency Ratio

Operational Self Sufficiency Ratio

0%

5%

10%

15%

20%

25%

30%

35%

2008-09 2009-10

Personnel Expenses Ratio

Personnel Expenses Ratio

Operating Expenses Ratio (Personnel Cost + Admin.Cost + Depreciation) /

Average Loan Outstanding

Financial Ratios

Operational Self Sufficiency Ratio (Income from Operations & Investments) /

Total Expenses

Personnel Expenses Ratio (Personnel Cost/Average Loan Outstanding)

Administrative Expense Ratio(Administrative Expense / Average

Loan Outstanding)

Supplementing income generation

Other Activities

Health Awareness Camp:

Dental Camp:

A Free Dental Camp was conducted by .

The camp was in association with Ambedkar Dental College, Cooke Town, Bangalore. Over 200

Samasta customers were screened and around 80 patients were referred for treatments like restoration,

cleaning, tooth removal and filling.

The Doctors also spoke about the importance of dental hygiene and dental care.

In response to increasing number of viral fever and chikungunya cases, Samasta conducted a health camp

at Hegde Nagar on 28.07.09. This free camp was conducted in association with K Narayanapura Primary

Samasta for its customers at Shampur branch office on 23.05.2009

Health Centre. Over 100 members attended the camp. The Doctors explained about various diseases,

causes of the diseases and steps to prevent them. Issues on malaria, HIV/AIDS, TB & population control

were addressed in detail along with the various Government Schemes and benefits available to the people.

Customer-Consumer Meet:

In an effort to enable Samasta’s customers to showcase their products to a bigger audience, a Customer-

Consumer Meet was organized on 02.08.09 in Shampur Main Road.

About 100 customers participated in the meet and displayed their products for sale.

The members sold homemade, hygienic and good quality products like pickles, papads, jams, sweets,

snacks, bakery items, agarbathis, candles, chamki work, footwear, masala and trading products like

vegetables, fruits, fish, dry fish, oriflame products, cosmetics, artificial jewelry, groceries, sarees, dress

materials, watches, fancy items, toys, etc. Around 1500 to 2000 people visited the unique consumer meet

and most of the items were sold.

The meet was inaugurated by Mr. G. D. Suresh, Branch Manager, Union Bank of India, Richmond Town.

12

13

Visit by SBI Officials:

Officials of the State Bank of India, Samasta's debt partner, met the customers at the time of the initial loan

disbursement.

Mr. K. Venkatachalapathy, DGM, SBI, flagged off the event.

Mr. V.K. Bagalkote, Chief Manager of SBI, Yelahanka Branch, while speaking on the occasion, encouraged

the Samasta customers to open no-frills accounts with State Bank of India as it will help them to save.

Offering non financial services

14

The Samasta Team

N. Venkatesh, Managing Director & Chief Executive Officer

Venkatesh began his foray into financial services with PNV Techno Acquisitions Private Limited that markets

financial products and expanded with his new operations, Affluence Edifice offering wealth management

services for high net worth individuals. He is imbued with a passion for social welfare and outreach of

financial services to the lesser privileged coupled with a financial acumen for reaching the double bottom-

line for Samasta.

D. Shivaprakash, Director & Chief Information Officer

Shivaprakash has been associated with major IT corporates for over a decade, successfully executing

projects for global clients and nurturing client relationships, in Asian, European and US markets. As CIO at

Samasta, he brings a unique combination of technological expertise and management skills. He provides

strategic technology direction to the company, by implementing efficient Portfolio and Management

Information Systems to control and monitor the business.

V. Sriram, Chief Financial Officer

Sriram brings with him a wide array of experience in fields as diverse as shipping, manufacturing, trading and

construction. He is trained in risk management and has to his credit papers on liquidity risk in the

microfinance sector. He brings with him diverse experience on cost reduction and cost control as the former

CFO of SMILE Ltd. He is a Chartered Accountant and a Cost Accountant by profession and a certified Oracle

Financial Consultant.

M. Ezilan, Head Operations

Ezilan has worked in Retail & Corporate Sales and Credit & Collections for over two decades. He headed the

Risk & Fraud Control Department at Bank Muscat. He was also associated with Ujjivan as Manager, Risk &

Fraud Control. He brings with him the expertise of building the quality business and concurrently, arresting

frauds in the business.

T.M. Viswanathan, Head Internal Audit

Viswanathan is an experienced Banker with over 27 years in UCO Bank, where he was Chief Officer (Credit)

at Head Office Pan India. He has varied exposure in Banking, N.G.O work & teaching. He was a Senior

Member of the National Leadership Team at Ujjivan since inception and was involved in setting up Credit

processes, Training and rural & urban business initiatives besides being designated as Chief of Field Audit.

He was also associated with Satin Credit Care Ltd. Delhi, as a part of the Top Management Team heading

Internal Audit. He is a Post Graduate in Agriculture from University of Kerala.

Sustaining relationships

15

SAMASTA MICROFINANCE LIMITED (FORMERLY COLANAC FINANCE LIMITED)

BALANCE SHEET AS AT 31ST MARCH, 2010

Particulars Sch 31.03.2010 31.03.2009 Rs. Rs.

SOURCES OF FUNDS :

(1) SHAREHOLDERS' FUNDS :

(a) Share Capital 1 57,700,000 27,710,000

(b) Share Application Money 1A 20,000,000 -

(c) Reserves and Surplus 2 7,603,227 507,465

(2) LOAN FUNDS :

(a) Secured Loans 3 206,447,296 4,638,844

(b) Unsecured Loans - -

(3) DEFERRED TAX LIABILITY 145,775

TOTAL 291,896,298 32,856,309

APPLICATIONS OF FUNDS :

(1) FIXED ASSETS : 4

(a) Gross Block 6,502,090 2,458,500

(b) Less : depreciation 1,610,427 417,518

(c) Net Block 4,891,663 2,040,982

(d) Capital WIP 2,169,861 2,901,500

(2) INVESTMENTS 5 500,000 -

(3) DEFERRED TAX ASSET 85,648 107,608

(4) CURRENT ASSETS, LOANS AND

ADVANCES :

(a) Sundry Debtors 6 - 370,716

(b) Cash and Bank Balances 7 36,140,023 839,618

(c) Loans and Advances 8 267,242,413 26,680,095

A 303,382,436 27,890,429

Less: CURRENT LIABILITIES AND

PROVISIONS :

(a) Current Liabilities 9 22,169,143 1,296,360

(b) Provisions 10 436,000 259,313

B 22,605,143 1,555,672

NET CURRENT ASSETS (A-B) 280,777,293 26,334,757

(5) Miscellaneous expenditure

to the extent not written off 11 3,471,832 1,471,462

TOTAL 291,896,298 32,856,309

Note: These Schedules, Notes and Statement on Accounting Policies form an Integral part of the Balance Sheet

INCOME

Income from Operations 12 28,325,057 12,066,180

Other Income 13 6,314,506 64,749

34,639,563 12,130,929

EXPENDITURE

Personnel Cost 14 11,764,966 6,006,073

Administration & Operational 15 12,825,058 4,874,507Expenses

Financial Cost 16 7,319,451 437,686

31,909,476 11,318,266

Profit Before Depreciation 2,730,087 812,663

Less: Depreciation 1,200,752 417,518

Profit/Loss for the year 1,529,335 395,145

Less: Provision for Taxation

Current Tax MAT 256,000 70,000

Taxes for Earlier years (32,485) -

Fringe Benefit Tax - 110,000

Deffered Tax Asset 167,734 (95,653)

Profit After Tax 1,138,086 310,798

Appropriations

Transfer to Statutory Reserve 227,617 62,160

Tranfer to Loan Loss Reserve 263,828 -

Dividend on Preference Share 36,296

Dividend Distribution Tax 6,028

Balance carried to Balance Sheet 604,316 248,639

1,138,086 310,798

EPS 0.20 0.11

SAMASTA MICROFINANCE LIMITED

(FORMERLY COLANAC FINANCE LIMITED)

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010

16

Particulars Sch 31.03.2010 31.03.2009

Rs. Rs.

Note: These Schedules, Notes and Statement on Accounting Policies form an Integral part of the Profit & Loss Account.



Cash Flow Statement for the year ended 31st March 2010

A CASH FLOW FROM OPERATING ACTIVITIES

Net Profit Before Tax 1,529,335.00

Adjustments for:

Depreciation 1,200,752.00

Preliminary Expenses w/off 867,958.00

Deferred Revenue Expenditure 2,868,328.00

(Profit)/loss on sale of Assets (1,243.00)

Interest & Finance Charges 7,319,451.00

Interest on FD 268,123.00

Dividend Income - 12,523,369.00

Operating Profit before Working Capital Changes 14,052,704.00

Adjustments for:

Decrease/(Increase) in Receivables (239,469,964.00)

Decrease/(Increase) in Inventories -

Increase/(Decrease) in Payables 20,872,783.00 (218,597,181.00)

Cash generated from operations (204,544,477.00)

Income Tax paid 176,124.00

Net Cash flow from Operating activities (204,368,353.00)

B CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets 4,083,590.00

Mutual Fund / Shares 500,000.00

Sale of Fixed Assets 33,400.00

Increase in Advances & others 560,540.00


Dividend Income -

Net Cash used in Investing activities 5,445,653.00

C CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Long term Borrowings 227,000,000.00

Interest paid 7,319,451.00

Net Cash used in financing activities 234,319,451.00

Net increase in cash & Cash Equivalents 35,396,751.00

Cash and Cash equivalents as at 01.04.09 839,618.00

Cash and Cash equivalents as at 31.03.10 36,140,023.00

Particulars Amount (Rs.) Amount (Rs.)

The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard -3 on Cash Flow Statement

As per our Report of even date

For Gowthama and Company

Chartered Accountants

Firm No. 005917S

H.V.Gowthama

Partner

Membership No. 014353

Bangalore

15.05.2010

For and on behalf of the Board

Managaing Director

Director Director

Company Secretary Chief Financial Officer

17



SCHEDULES TO BALANCE SHEET AS AT MARCH 31, 2010

1 SHARE CAPITAL

Authorized Capital

8,000,000 Equity Shares of Rs.10/- each 80,000,000 50,000,000

(Previous year 5,000,000 Equity Shares of Rs.10/- each)

200,000 Preference Shares of Rs 100/- each 20,000,000 -

(Previous year NIL)

100,000,000 50,000,000

Issued, Subscribed & Paid-up

5,700,000 Equity Shares of Rs.10/- each fully paid-up 57,000,000 27,710,000

(Previous year 2,771,000 Equity Shares of Rs.10/- each)

(2,929,000 shares have been allotted during the year)

7,000 12% Redeemable, Cumulative, Non Convertible

Preference Shares of Rs.100/- each fully paid-up 700,000 -

(Previous year NIL)

(7,000 shares have been allotted during the year)

57,700,000 27,710,000

1A EQUITY SHARE APPLICATION MONEY 20,000,000 -

2 RESERVES & SURPLUS

Profit & Loss Account

Opening Balance 434,491 185,853

Add: Profit for the year 604,316 248,639

A 1,038,808 434,491

Statutory Reserve

Opening Balance 72,974 10,814

Add: Transferred from Profit & Loss Account 227,617 62,160

B 300,591 72,974

Loan Loss reserve C 263,828 -

D=(A+B+C) 1,603,227 507,465

Share Premium F 6,000,000 -

Premium on allotment of 1,200,000 Equity Shares of Rs.10 each

during the year at a premium of Rs.5

D+F 7,603,227 507,465

Sch PARTICULARS 31.03.2010 31.03.2009

No. Rs. Rs.

18

3

(Secured against receivables and guranteed by 3 Promoter Directors)

Lakshmi Vilas Bank Ltd - Term Loan A/c I [Due within next 12 months Rs.1,666,668/-] 2,950,896 4,638,844

Bank of Baroda – Term Loan a/c [Due within next 12 months Rs.3,333,300/-] 9,820,711 -

Bank of Maharashtra – Term Loan a/c II [Due within next 12 months Rs.1,820,000/-] 5,033,100 -

Bank of Maharashtra – Term Loan a/c I [Due within next 12 months Rs.1,820,000/-] 5,050,231 -

HDFC Bank - Term Loan a/c [Due within next 12 months Rs.3,333,332/-] 5,000,000 -

High Land Leasing & Finance Pvt Ltd - Loan I [Due within next 12 months Rs.3,589,744/-] 3,589,744 -

IMFR Capital Finance Pvt Ltd - Loan II [Due within next 12 months Rs.36,760,810/-] 36,832,366 -

Karur Vysya Bank Ltd-Term Loan [Due within next 12 months Rs.1,666,668/-] 4,583,333 -

Lakshmi Vilas Bank-Term Loan A/c II [Due within next 12 months Rs.1,666,668/-] 4,636,876 -

Maanaveeya Holdings & Investments Pvt Ltd [Due within next 12 months Rs.3,000,000/-] `15,000,000 -

Small Industries Development Bank of India [Due within next 12 months Rs.5,714,000/-] 20,000,000 -

Union Bank of India-Term loan [Due within next 12 months Rs.6,672,000/-] 16,110,125 -

State Bank of India - Cash Credit I 16,732,633 -

State Bank of India - Cash Credit II 50,088,871 -

State Bank of Travancore - Cash Credit 11,018,411 -

206,447,296 4,638,844

SECURED LOANS




Sch PARTICULARS 31.03.2010 31.03.2009

No. Rs. Rs.

19

1F

urn

tiure

& F

ixtu

res

18.1

0%

1,3

95,2

89

415,0

62

40,0

00

1,7

70,3

51

193,6

59

223,3

03

7,8

43

409,1

19

1,3

61,2

32

1,2

01,6

30

2O

ffic

e E

quip

ment

13.9

1%

89,6

06

303,1

83

-

392,7

89

10,9

43

20,1

59

-

31,1

02

361,6

87

78,6

63

3C

om

pute

r40.0

0%

326,7

80

2,6

62,2

18

-

2,9

88,9

98

97,7

01

802,2

00

-

899,9

01

2,0

89,0

97

229,0

79

4V

ehic

les

25.8

9%

646,8

25

703,1

27

-

1,3

49,9

52

115,2

15

155,0

90

-

270,3

05

1,0

79,6

47

531,6

10

To

tal C

urr

en

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20




5 INVESTMENTS (At Cost)

Unquoted, Untraded 50,000 Equity shares of Alpha Micro

Finance Consultants Pvt. Ltd. Of face value Rs.10/- per share 500,000 -

(Previous year NIL)

500,000 -

6 SUNDRY DEBTORS

Unsecured, Considered Good

Due for more than 6 months - 370,716

Others - -

- 370,716

7 CASH & BANK BALANCE

Cash on Hand 296,877 97,550

With Scheduled Banks in Current Account 24,443,508 742,069

In Deposits with Scheduled Bank Under Lien 11,399,638 -

36,140,023 839,618

8 LOANS AND ADVANCES

Unsecured Loans, Considered Good 263,828,246 23,987,566

Advances & Deposits in Cash or Kind or Value to be received 3,238,043 2,677,503

Fringe Benefit Tax 110,784 3,037

Income tax 65,340 11,989

267,242,413 26,680,095

9 CURRENT LIABILITIES

Sundry Creditors

- Due to SME Units - -

- For Expenses 21,313,041 839,158

- For Other Finance 856,102 457,202

22,169,143 1,296,360

10 PROVISIONS

For Taxation 326,000 107,620

For Fringe Benefit Tax 110,000 114,621

For NPA - 37,072

436,000 259,313

11 MISCELLANEOUS EXPENDITUR TO THE EXTENT NOT

WRITTEN OFF

Deferred revenue Expenditure - FY 2008 - 09 1,177,170 1,471,462

Deferred revenue Expenditure - FY 2009 - 10 2,294,662 -

3,471,832 1,471,462

Sch PARTICULARS 31.03.2010 31.03.2009

No. Rs. Rs.

21

Sch PARTICULARS 31.03.2010 31.03.2009

No. Rs. Rs.



SCHEDULE TO PROFIT & LOSS ACCOUNT FOR THE

YEAR ENDED 31ST MARCH 2010

12 INCOME FROM OPERATIONS

Interest Income from Loans 16,415,024 6,530,500

Document Fee & Service Charges 9,802,546 4,813,750

Enrollment Fees 2,107,487 721,930

28,325,057 12,066,180

13 OTHER INCOME

Credits Written Back - 59,191

Interest on staff Loans 1,842 1,194

Interest on Deposit - [TDS - Rs.7,607/-] 268,123 4,364

Centre Fund 463,121 -

Insurance Received 5,534,394 -

Misc Income 8,711 -

Provision for NPA no longer required 37,072 -

Profit on Sale of Fixed Asset 1,243 -

6,314,506 64,749

14 PERSONNEL COST

Salaries & Allowances 9,813,575 5,025,773

Employers ESI Contribution 282,131 107,704

Employers PF Contribution 485,953 183,218

Staff Welfare 558,415 98,878

Staff Incentive 291,268 28,000

Staff Traning 56,445 -

Gratuity 277,179 -

Executive Directors Remuneration - 562,500

11,764,966 6,006,073

22

15 ADMINISTRATION & GENERAL EXPENSES

Consultation charges 1,684,949 396,082

Advertisement expenses - 59,944

Assets written off - 137,341

Auditor's Remuneration

- Audit Fee 30,000 33,090

- Tax Audit Fee 20,000 22,060

- Other Expenses 1,820 -

Audit certification charges 48,229 -

Annual Maintenance Charges 185,304 -

Association Charges 1,000 -

Board meeting expenses 54,712 6,208

Books and Periodicals 3,496 2,080

Brokerage 47,000 -

Computer consumables 114,858 44,907

Donation 6,000 -

Deposits Written Off - 54,618

Directors expenses 616,718 352,467

Deferred Revenue Expenditure Written Off 867,958 -

Electricity and Water charges 131,427 91,716

Equipment maintenance 67,033 5,051

Guest House maintenance 25,500 -

Insurance for Members 2,666,118 596,720

Insurance On FWO's - 35,880

Insurance - General 15,368 -

Interest On Vehicle Loan 55,973 55,029

Internal audit expenses 171,024 10,928

Legal expenses 25,000 25,500

Local conveyance 1,050,265 474,749

Meeting and Conference expenses 516,519 84,257

Members Welfare 19,387 1,851

Membership Subscription Charges 108,000 -

Miscellaneous expenses 500 4,171

NPA on Loans - 37,072

Office Maintenance 272,084 447,166

Postage 85,106 28,269

Printing And Stationery 786,711 448,614

Prompt Payment Rebate to Members 2,200 -

Rates and Taxes 116,008 58,098

Rent 1,489,821 765,074

Service Tax Paid 654,159 -

Telephone Charges 517,795 288,935

Tours and Travels 131,693 184,182

Vehicle insurance 14,541 21,548

Vehicle Maintenance 209,220 100,901

Website Charges 11,564 -

12,825,058 4,874,507

16 FINANCIAL COST

Financial Expenses 149,049 248,454

Bank Interest 5,267,087 189,232

Interest Paid to Financial Institution 1,903,315 -

7,319,451 437,686

Sch PARTICULARS 31.03.2010 31.03.2009

No. Rs. Rs.



SCHEDULE TO PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010

23

PARTICULARS 31.03.2010

Rs.



ANNEXURES TO SCHEDULES

ANNEXURE TO SCHEDULE - 7

Balance With Scheduled Banks in Current Account

Bank of Baroda 407,956

Bank of india 27,630

Bank of Maharashtra 749,160

Canara Bank - Abhiramapuram Branch 238,440

Dena Bank 83

HDFC – Wilson Garden Branch 20,099,629

Karur Vysya Bank 30,573

The Lakshmi Vilas Bank Ltd. 586,690

State Bank of India – B R Pura 15,626

State Bank of India - Kacharakanahalli 20,437

State Bank of India – Krishnagiri 17,616

State Bank of India – K R Pura(Battarahalli) 42,164

State Bank of India – Perambur 60,914

State Bank of India – Perur 69,681

State Bank of India – R N puram 248,030

State Bank of India - R.T.Nagar 19,026

State Bank of India - Saligramam 30,428

State Bank of India - Tambaram 1,309

State Bank of India - Thiruvotriyoor 505,797

State Bank of India – Vadavalli 10,956

State Bank of India - Wilson Garden 359,685

State Bank of India - Yelahanka 66,341

State Bank of India – Yeshwantpur 22,375

State Bank of Travancore 650,960

Union Bank of India 147,111

Vijaya Bank 14,892

24,443,508

On Deposits with Scheduled Bank

Fixed Deposit - State Bank of India 4,800,000

Fixed Deposit - Bank of Baroda 1,010,838

Fixed Deposit - Bank of Maharashtra 1,000,000

Fixed Deposit - HDFC Bank 503,651

Fixed Deposit - SIDBI 2,000,000

Fixed Deposit - Union Bank of India 2,085,149

11,399,638


Unsecured Loans

Loan Installment Receivable 263,828,246

263,828,246

Advances & Deposits

Accrued Interest on FD but not due 25,814

Prepaid Expenses 1,000

SBI Life Insurance Co. Ltd., 50,000

IFMR Security Deposit 1,257,614

Rent Deposit 1,835,000

Telephone Deposit 7,668

Water deposit 930

Staff Advances 52,410

TDS receivables - FY 2009 - 10 7,607

3,238,043 24

PARTICULARS 31.03.2010

Rs.



ANNEXURES TO SCHEDULES


Sundry Creditors for Expenses

Security Deposit 17,082,625

Salary Payable 320,695

Service Tax Payable 1,103,594

Contingent Liabilities 250

TDS payable 101,784

Audit Fees Payable 46,123

Professional Tax Payable 10,952

Advance Collection - Principal 7,425

Advance Collection - Interest 1,585

Travelling Imprest Account 132,428

Provision for Expenses

Interest Payable to HDFC Bank 37,397

Interest Payable to MHPL 284,794

Interest Payable to SIDBI 108,288

Local Conveyance Payable 132,286

Electricity Payable 20,460

Provision for Gratuity 277,179

Preference Dividend Payable 36,296

Distribution Distribution Tax on Preference Shares 6,028

Postage and courier payable 4,000

Provision for member insurance 1,464,352

Servicare Labs Pvt Ltd 2,000

Staff Incentive Payable 51,500

Staff Telephone Allowance Payable 25,050

Telephone Charges Payable 55,950

21,313,041

Sundry Creditors for Other Finance

Vehicle Loan - Reliance Capital Ltd 364,302

Vehicle Loan - Kotak Mahindra Prime Ltd 491,800

856,102

Director Expenses

Director Expenses - Telephone Charges 24,809

Directors Expenses - Tours & Travels 349,607

Directors Expenses - Vehicle Maintenance 123,806

Directors Expenses - Welfare 34,827

Directors-Meeting & Conference Expenses 27,669

Director Sitting Fee 56,000

616,718

25



Cash Flow Statement for the year ended 31st March 2010

A CASH FLOW FROM OPERATING ACTIVITIES

Net Profit Before Tax 1,529,335.00

Adjustments for:

Depreciation 1,200,752.00

Preliminary Expenses w/off 867,958.00

Deferred Revenue Expenditure 2,868,328.00

(Profit)/loss on sale of Assets (1,243.00)

Interest & Finance Charges 7,319,451.00


Dividend Income - 12,523,369.00

Operating Profit before Working Capital Changes 14,052,704.00

Adjustments for:

Decrease/(Increase) in Receivables (239,469,964.00)

Decrease/(Increase) in Inventories -

Increase/(Decrease) in Payables 20,872,783.00 (218,597,181.00)

Cash generated from operations (204,544,477.00)

Income Tax paid 176,124.00

Net Cash flow from Operating activities (204,368,353.00)

B CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets 4,083,590.00

Mutual Fund / Shares 500,000.00

Sale of Fixed Assets 33,400.00

Increase in Advances & others 560,540.00


Dividend Income -

Net Cash used in Investing activities 5,445,653.00

C CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Long term Borrowings 227,000,000.00

Interest paid 7,319,451.00

Net Cash used in financing activities 234,319,451.00

Net increase in cash & Cash Equivalents 35,396,751.00

Cash and Cash equivalents as at 01.04.09 839,618.00

Cash and Cash equivalents as at 31.03.10 36,140,023.00

The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard -3 on Cash Flow Statement

Particulars Amount (Rs.) Amount (Rs.)

As per our Report of even date



Firm No. 005917S

H.V.Gowthama

Partner


Bangalore

15.05.2010

For and on behalf of the Board

Managaing Director

Director Director


26


BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

I Registration Details :

Registration No PTC032563 State Code 008

Balance Sheet Date 31st March 2010

[Rs.in '000']

II Capital Raised During the year

Public Issue Right issue Bonus Issue Private Placement

Nil Nil Nil 29,990

III Position of Mobilisation and Development of Funds.

Total Liabilities Total Assets

291,896 291,896

SOURCE OF FUND

Paid-up Capital Reserves and Surplus

57,700 7,603

Secured Loans Unsecured Loans

206,447 - -

Deffrred Tax Liability Share Application Money

146 20,000

APPLICATION OF FUND

Net Fixed Assets Investments

7,062 500

Net current Assets Deffrred Tax Assets

280,777 86

MISCELLANEOUS EXPENDITURE WRITTEN OFF

3,472

IV Performance of the Company

Turnover Other Income Total Expenditure

28,325 6,315 33,110

Profit Before Tax Profit After Tax

1,529 1,138

V Generic names of Principal products

Item Code No ( ITC No.) It is not Applicable since it is not a manufacturing or Trading Company

Product Description It is not Applicable since it is not a manufacturing or Trading Company

BANGALORE15.05.2010 MANAGING DIRECTOR DIRECTOR DIRECTOR

COMPANY SECRETARY CHIEF FINANCIAL OFFICER

27

AUDITORS’ REPORT

To the Members of M/S SAMASTA MICRO FINANCE LIMITED


1. We have audited the attached Balance Sheet of M/s SAMASTA MICROFINANCE LIMITED. As at MARCH 31st, 2010 and also the Profit & Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. In our opinion and based on the information available this provisions of the companies ( Auditor’s Report ) order,2003 as amended by companies (Auditor’s Report) (Amendment) order, 2004,issued by the Central Government of India in Terms of Sub-Section (4A)of Section 227 of the Companies Act, 1956, are applicable to this company. We enclose in the annexure a statement on the matters specified in paragraph 4.

4. Further to our comments in the Annexure referred to above, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

b. In our opinion, the Company has kept proper books of account as required by law, so far as appearfrom our examination of those books.

c. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

d. In our opinion the Balance Sheet and Profit and Loss Account comply with the Accounting Standards referred to the sub-section (3C) of section 211 of the Companies Act 1956, to the extent applicable Subject to Provision for Gratuity (Refer Point 5 of Schedule B Notes forming part of the Accounts).

e. On the basis of written representations received from the directors, as on 31st March, 2010 andtaken on record by the Board of Directors, we report that none of the directors of the Company isdisqualified as on 31st March, 2010 from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956

28

f. In our opinion and to the best of our information and according to the explanations given to us the Financial Statements read together with the notes thereon, give the information required by the Companies Act, 1956 in the manner so required and subject to Point 5 of Schedule B Notes forming part of the accounts regarding the provision for gratuity, give a true and fair view in confinement with the accounting principles generally accepted in India:

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010,

(ii) In the case of the Profit and Loss Account, of the Profit of the Company for the year ended as on that date.

(iii) In the case of the Cash flow Statement, of the Cash flows of the Company for the year ended as on that date.

For Gowthama & Company


Firm No. 005917S

H. V. Gowthama

Partner


Place: Bangalore

Date: 15.05.2010

29

ANNEXURE TO THE AUDITORS’ REPORT

1. In respect of Fixed Assets

2. In respect of inventories

9. In respect of statutory dues

Annexure referred to in paragraph ‘3’ of the Auditors’ Report to the Members of M/s SAMASTAMICROFINANCE LIMITED, on the accounts for the year ended 31ST MARCH, 2010.

a. The Company has maintained proper records to show full particulars, including quantitative details and situation of fixed assets.

b. Fixed assets have been physically verified by the management on various occasions during the year, and there is a regular program of verification which, is in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c. There was no substantial disposal of fixed assets during the year.

The Company is a Non-Banking Financial Company granting Micro Loans. Accordingly, there are no Inventories; hence this clause is not applicable.

3. The Company has neither granted nor taken any loans, secured or unsecured, to/from Companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

4. According to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of fixed assets and with regard to the rendering of Services. During the course of our audit, no major weakness has been noticed in the underlying internal controls.

5. In respect of transactions entered in the register maintained in pursuance of section 301 of the companies Act, 1956.

a) To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to enter in to the register have been so entered.

b) According to the information and explanations given to us transaction of purchase of fixed assets and sale of goods exceeding Rs. 5 lakhs in respect of each party, the transaction have been made at prices which are prime facie reasonable having regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and as such, compliance with directives issued by the Reserve bank of India and provisions of Section 58A of the Companies Act, 1956 and the rules framed there under does not arise.

7. The Company has an Internal Audit System commensurate with the size of the Company and the nature of its business.

8. Maintenance of cost records have not been prescribed by the Central Government and therefore comment under section 209 (1) (d) of the Companies Act, 1956, does not arise.

a. According to the information and explanation given to us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Service Tax, Cess and any other material Statutory dues with the appropriate authorities.

30

b. According to information and explanation given to us, there are no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax, Service Tax, Cess and any other material Statutory dues outstanding as at March 31, 2010 for a period of more than six months from the date they became payable.

c. According to the information and explanation given to us, there are no amounts in respect ofProvident Fund, Employees State Insurance, Income Tax, Service Tax, Cess and any other material Statutory dues outstanding which have not been deposited on account of any dispute.

10.The company has no accumulated losses at the end of the financial year and has not incurred Cash losses in the financial year and in the immediately preceding financial year.

11.Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to banks, financial institutions and has not issued debentures.

12.The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13.In our opinion and according to the information and explanations given to us, the nature of activities of the company does not attract any special statute applicable to chit fund / nidhi / mutual benefit funds / society.

14.The Company is not dealing or trading in shares, securities, debentures and other investment.

15.According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial Institutions.

16.In our opinion, according to the information and explanations given to us and to the best of our knowledge and belief on an overall basis, the Company did not have any term loans overdue during the year.

17.We have been informed by the management that the funds raised on short term basis have been used for short term investment.

18.The Company has made preferential allotment of shares to parties covered in the register maintained under section 301 of the Act. The price at which shares issued by the company under preferential allotment to parties covered under Section 301 of the Act is not prejudicial to the interest of the company.

19.During the year under consideration the Company has not issued any debentures.

20.During the year under consideration the Company has not raised money by way of public issue.

21.Bases upon the audit procedures performed and information and explanations given by the management, we report that, no fraud on or by the Company has been noticed or reported during the course of our audit.

For Gowthama & Company Chartered Accountants Firm No. 005917S

H. V. Gowthama Partner


Place: BangaloreDate: 15.05.2010

31

M/S SAMASTA MICRO FINANCE LIMITED(FORMERLY COLANAC FINANCE LIMITED)

SIGNIFICANT ACCOUNTING POLICIES & NOTES FORMING

PART OF THE ACCOUNTS

A] SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation

2. Use of Estimates

3. Fixed Assets and Depreciation

4. Revenue Recognition

The financial statements are prepared under historical cost convention on an accrual basis and in accordance with the applicable mandatory accounting standards and the provisions of the Companies Act 1956 and the directions issued by the Reserve Bank of India (RBI) to the extent applicable to the Company.

The Company follows prudential norms for Income recognition, asset classification and provisions as prescribed by the RBI for Non-deposit taking Non-Banking Finance Companies (NBFC).

The presentation of financial statements in conformity with Indian Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Although such estimates are made on a reasonable and prudent basis taking into account all available information, actual results could differ from those estimates.

Fixed Assets of the Company are accounted at cost of acquisition, less depreciation. Cost of acquisition includes direct expenses attributable to brining the assets to their present location and working condition for their intended use. Financial cost attributable to acquisition of fixed asset is capitalised to the period up to, which the assets are ready to be put to use.

Deprecation on fixed assets is provided using Written down Value Method at the rates given in the schedule XIV of the Companies Act, 1956.

Revenue from Interest on loans financed by the company is recognized on accrual basis, considering the directions issued by the Reserve Bank of India from time to time in terms of the Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

Revenue from interest income on Fixed Deposits with Banks is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

Documentation Fees, Service charges, Enrollment fees and Insurance charges which are due at the time of disbursement of loan, are recognized as Income on upfront basis.

32

5. Investments

6. Income Tax and Deferred Tax

7. Classification & Provisions of Loan Portfolio

8. Earnings per Share

B] Notes forming part of the Accounts

1. Secured Loans

2. Investment Activity during the year

Long Term Investments

Investments which are long term in nature, are stated at cost with provisions where necessary for diminution, other than temporary, in the value of Investment.

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only if there is virtual certainty that they will be realized and are reviewed every year. The tax effect is calculated on the accumulated timing differences at the end of the year based on enacted or substantially enacted tax rates.

Loans are classified and provided as per norms required in Non-Banking Financial (Non-Deposit Accepting) Companies Prudential Norms (Reserve Bank) Directions, 2007

In determining the Earning per Share the Company considers the Net Profit after Tax. The number of Shares used in computing Basic Earning per share is number of share outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

As at 31st March 2010, the total amount of Secured Loans outstanding is Rs.206,447,296 (As at 31st March 2009 – Rs.4,638,844). All loans are Secured by hypothecation of Book Debts Receivable and personally guaranteed by Three Promoter Directors. Further the Company has provided a specific lien on deposits with amounting to Rs.11,399,638 (As at 31st March 2009 – Rs.Nil) for the Term Loans.

(Previous year – Nil)

ParticularsNo. of Shares

Purchased

during the year

Amount Invested

(Rs.)

No. of Shares Sold during the

year

Sale Proceeds (Rs.)

Alpha Micro Finance Consultants Pvt. Ltd. 50,000 500,000 - -

33

3. Managerial Remuneration

4. Expenditure in Foreign Currency

5. Gratuity

6. Earnings Per Share

There are no employees attracting Provisions of Section 217(2A) of the Companies Act, 1956 as amended by the Companies (Amendment) Act, 1988, who are in receipt of remuneration of not less than Rs.24,00,000/- per annum or Rs.2,00,000/- per month

Executive director has been paid gross remuneration of Rs. Nil (Previous year Rs. 562,500/-)

Expenditure and Earning in Foreign Exchange in Foreign Currency during the year is Nil (Previous Year Rs. NIL).

The Company has made a Gratuity Provision of Rs.277,179/- for year ended 31st March 2010 (As on 31st March 2009 – Rs. Nil)

The Company has made a provision of Gratuity payable based on the procedures laid down in Payment of Gratuity Act, 1972. However as per ‘Accounting Standard – 15’ as notified under Companies Act, the provision is required to be made on the basis of Actuarial Valuation, the same is not made.

For the year For the yearParticulars ended 31st ended 31st

March 2010 March 2009

Profit after Tax (Rs.) 1,138,086 310,798

No. of Equity Shares -0

- Basic 5,700,000 2,771,000

- 1 Diluted (Refer Note) 6,500,000 2,771,000

Earnings Per Share -2

- Basic 0.20 0.11

- 3 Diluted 0.18 0.11

Face Value of Shares (Rs.) 10 10

Note: For Calculating No. of Diluted Shares for the year ended 31st March 2010 Share application money pending on 800,000 equity shares has been considered.

The Major components of Deferred Tax Asset / Liabilities based on Tax effect of timing differences, as at 31st March 2010 are as under

7. Deferred Tax

As at Provision As atParticulars 31st March made in Profit 31st March

2010 and Loss A/c 2009

Deferred Tax Liability

Difference between

Tax & book depreciation on Fixed Assets 145,775 145,775 -

Sub Total 145,775 145,775 -

Deferred Tax Asset

Difference between Tax & book depreciation on Fixed Assets - 107,608 107,608

Provision for Gratuity 85,648 (85,648)

Sub Total 85,648 21,960 107,608

34

8 .Disclosure Pursuant to Reserve Bank of India Notification DNBS.193DG (VL) 2007 dated 22nd February 2007:

Sl. As at 31st March

No. Particulars Amount Amount

Outstanding Overdue

Liabilities:

(1) Loans and advances availed by the NBFC

inclusive of Interest accrued thereon but not paid:

(a) Debentures

- 4 Secured - -

- 5 Unsecured - -

(Other than falling within the meaning of Public Deposit)

(b) Deferred Credits -

(c) Term Loans 206,447,296 -

(d) Inter-corporate Loans & Borrowings - -

(e) Commercial Paper - -

(f) Other Loans - -

Sl. Amount Outstanding

No. Particulars 31st March 2010

Assets:

(2) Break-up of Loans and Advances including Bills

Receivables [Other than those included in (3) below]

(a) Secured -

(b) Unsecured 267,242,413

(3) Breakup of Leased Assets and Stock on Hire and other

Assets counting towards AFC activities

(i) Lease assets including Lease rentals accrued and due:

(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 contributing towards AFC Activities

(a) Loans where assets have been repossessed -

(b) Loans other than (a) above

35

Sl. Amount Outstanding

No. Particulars 31st March 2010

(4) Break-up of Investments Current Investments

I Quoted:

(i) Shares: (a) Equity -

(b) Preference -

(ii) Debentures and Bonds -

(iii) Units of Mutual Funds -

(iv) Government Securities -

(v) Others -

II Unquoted:


(b) Preference -




(v) Others -

Long term Investments

I Quoted:


(b) Preference -




(v) Others -

II Unquoted:

(i) Shares: (a) Equity 500,000

(b) Preference -




(v) Others -

36

Sl. As at 31st March 2010

No. Category Amount in Rs. (Net of Provisions)

1 Related Parties

(a) Subsidiaries - - -

(b) Companies in the same group - - -

(c) Other Related Parties - - -

2 Other than related parties - 267,242,413 267,242,413

Total - 267,242,413 267,242,413

Secured Unsecured Total

Market Value/ Break Up value

Sl. Category or Fair Value or Net Book ValueNo. Assets Value

1 Related Parties

(a) Subsidiaries - -

(b) Companies in the same group - -

(c) Other Related Parties - -

2 Other than related parties - 500,000

Total - 500,000

Other than

(7) Other Information Related Parties Related Parties

(i) Gross Non-Performing Assets - -

(ii) Net Non-Performing Assets - -

(iii) Assets acquired in Satisfaction of debt - -

9. Previous year Figures

Previous year’s figures have been reclassified to conform with the current year’s classification / presentation, wherever applicable.

For and on behalf of the Board Vide our annexed Report



Managing Director Firm No. 005917S

Director Director H.V.Gowthama

Partner

M. No. 014353


Place: Bangalore¬

Date: 15.05.201037

(5) Borrower Group-wise classification of Assets Financed as in (2) and (3) above

(6) Investor Group-wise classification of all Investments (Current and Long Term) in Share

and Securities (both Quoted and Unquoted) :

www.samasta.co.in

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