1503678725muthoot Finance AR 2016-17 PDF

$
Equity share
information
National Stock Exchange (NSE):
MUTHOOTFIN
Bombay Stock Exchange (BSE):

533398
Tribute to the
visionary
Our founder, Shri M George Muthoot, envisioned the prospects of gold loan in India long
back in 1939. His deep business insight and strong vision helped transform India’s gold loan
business. Guided by his values, we have strengthened our reputation over the years and
established ourselves as a trusted pan-India brand.
Unchanging values…
…in changing times
“Let us not judge ourselves by the profit we make but by the trust and the
confidence that people have in us. Let us cherish and nurture that trust and ensure
that every person who deals with us, deals with the confidence that he will not be
misguided but his interests will be carefully protected.”
- Late Shri. M. George Muthoot

Aspirations of our customers drive us
Aspirations of
our customers drive us
Muthoot’s Gold Loans helped Sameer, Munna Yadav began his own dairy with a
a road contractor in Raipur, overcome gold loan from Muthoot. The dairy that began
his working cash flow crunch. with a cow, now has 17 cows - each one
Entrepreneur, Gold Loan, Raipur bought with Muthoot Gold Loan.
Dairy Owner, Gold Loan, Patna
Savitri Tai, a widow, had the fire in her Ravi and Meena bought health insurance
belly to change her circumstances. Her cover through Muthoot. They were really
husband’s life insurance taken through happy when they could book a private cabin
Muthoot helped her start the food delivery at a top multi-specialty hospital for the birth
business – Satvik Khana. of their first child.
Homemaker, Life Insurance, Sangli Professional, Health Insurance, Delhi
Tired of living in rented homes, Jaya wanted to pursue her post-

Priya and Ramesh desired to own a graduation in the US and got admission
home. It was a home loan with Muthoot in one of the Ivy League colleges. Her
Housing Finance that helped them hard work and Muthoot Gold Loan
purchase a flat in an affordable housing helped chase her dreams.
colony of Mumbai. Student, Education loans, Coimbatore
Couple, Home Loans, Mumbai
Nidhi dreamt of starting her own beauty Jayawardane owned a small fishing vessel
parlour; and her dreams got wings with in Galle. He scaled his business with a larger
Muthoot Microfinance Loans. boat financed by Asia Asset Finance (AAF) –
Business owner, Microfinance loans, Pune a Muthoot subsidiary.
Fisherman, Gold Loan, Galle – Sri Lanka
2 Muthoot Finance Limited

A growing economy with a huge aspirational
population is creating more and more
opportunities for us. At the same time,
And help us
technology is quietly changing the rules
of the game, providing more diversity and
deliver on our
convenience to the consumer.
stakeholder
At Muthoot, we are expanding the scale and
scope of the business at a time of interesting commitments.
change. And the year gone by, saw us
continue our rich tradition of value creation
by implementing multiple initiatives.
During the year, we strengthened our

position as one of the most preferred and
trusted gold loan players in the markets we
serve. We further continued to grow our
portfolio of non-gold businesses - home
finance, microfinance and insurance - to
enhance our business diversity.
While conventional marketing continued

to be our primary area of focus, we also
deepened our digital footprint to reach more
customers across key markets.
Our role is to connect the aspirations of

New India with emerging opportunities,
which will take the country to a new
trajectory of growth.
Delivering on evolving aspirations
Delivering on
evolving aspirations
Our story dates back to over seven decades. It began
when M George Muthoot founded a gold loan business in
1939 under the heritage of a trading business established
by his father, Ninan Mathai Muthoot, in 1887.
Today, we are India’s largest gold CORE VALUES

financing company in terms of We take pride in our strong foundation, which is deeply
loan portfolio. We are a reputed rooted in the following pillars
‘Systemically Important Non-deposit
taking NBFC’. As part of our core Ethics people have turned to us for help in
business, we provide personal and Our main aim is to put the needs of their hour of need just because of this
business loans secured by gold the customer first before anything else. guiding principal of ours.
jewellery, or gold loans. We strive to provide you with the best
quality of service under the Muthoot
We primarily cater to individuals Brand Umbrella and we do the same
who possess gold jewellery, but with a smile. Trustworthiness
cannot access formal credit within a We pledge loyalty in our operations,
reasonable time, or for whom credit fairness in our dealings and openness in
may not be available at all. We help our our practices. At Muthoot Finance Ltd.,
customers meet unanticipated or other Values we embrace policies and practices that
short-term liquidity requirements. Accountability for all our operations and fortify trust.
services and towards the society makes
Our decades-rich experience and us a socially responsible and intelligent
expertise inspire trust and customer citizen. Our empire has grown leaps and
loyalty. Our core banking solution bounds on the basis of these values. Integrity
connects all branches to a central The times may change, but our values The value is innate to a corruption-free
server on a real-time basis. This will remain unchanged. atmosphere and an open work culture.
ensures enhanced control, scalability, We at Muthoot Finance Ltd. therefore
faster response to meet evolving cultivate transparency as a work ethic.
customer needs.
Reliability
With an unblemished track record
throughout the markets we serve; Goodwill
and across national as well as global Muthoot Finance serves more than 7
boundaries, Muthoot Finance values its million customers across the country.
commitment to customer-service. We serve over 1,30,000 customers
each day to our customer base. With
an unmatched goodwill, the Company
shoulders the responsibility of providing
Dependability its customers services of the highest
We do not judge ourselves by the quality.
profit we make but by the trust and
confidence that people have shown in
us for the past 130 years. Over 7 million

FUNDAMENTALLY
SPEAKING
`27,278 Crs. 1,30,000 + 149 tonnes

Loan Assets Under Customers served Gold jewellery kept
Management every day as security
325,000+ 24,000+ 4,300+

Retail investor base Team members Pan-India branches
across debenture and
subordinated debt portfolio
24.88 % 29
States and union territory
10.53 %
Borrowing cost
Capital adequacy ratio
presence - largest branch
network in India among NBFCs
`14,739 Crs. `6 73.88 %

Market capitalisation Dividend per share in Promoters & Relatives’
(31st March, 2017) FY 17 (Face value ` 10) holding
Annual Report 2016-17 5

Delivering on evolving aspirations
MULTIPLE OFFERINGS
$ $
Gold loans Foreign inward money Foreign exchange Collection

transfer services services services
Microfinance Insurance White label ATM Wind mill power

broking generation
Home Personal Domestic money Instant money

loans loans transfer services transfer services
INDIA’S PREFERRED
GOLD BRAND
At present, rural India accounts for Jammu & 15
~65% of India’s overall gold stock Kashmir
and houses a large part of the 5 Himachal Pradesh
country’s population with limited 8
Punjab 174 Chandigarh
credit access. Thus, with an objective
21 Uttarakhand
to serve the underserved, we have Haryana 126
placed over 70% of our branches in 225 Delhi
152 Uttar Pradesh
rural and semi-urban markets.
18 Assam
132 18 Bihar
Rajasthan
Gujarat 2 Tripura
177
18 Jharkhand
Madhya 85
Pradesh 144 West
Branches region wise (%) Daman & Diu
1
Bengal
15 Chhattisgarh
Dadra &Nagar Haveli 1
53 Odisha
Maharashtra 226
234 Telangana
15
Goa 361 Andhra Pradesh
442
Karnataka
3
8 Andaman &
Puducherry Nicobar
Kerala
926 Tamil Nadu
702
East 06 North 17
West 15 South 62
As of 31st March, 2017

Corporate Overview Statutory Reports Financial Statements
FUNDING AND CREDIT

RATINGS Diversified funding profile
We enjoy credit facilities from • Borrowings from Banks/FIs:
multiple banks - superior credit ` 9,202 Crores (43%)
rating and asset quality have enabled
• Secured Non-Convertible
mobilisation of adequate funds at the
Debentures: ` 6,229 Crores. (30%)
best possible cost.
• Commercial Paper:
STRONG CREDIT ` 3,155 Crores (15%)
RATING
We have the highest rating among • Subordinated Debt: ` 1,912
gold loan companies in India. Crores (9%)
• Other Loans: ` 598 Crores (3%)
Short-term Rating
Amount of rating Rating Indicates
(` in million)
COMMERCIAL PAPER
CRISIL 40,000 CRISIL A1+ Very strong degree of safety with regard to
timely payment of financial obligation and
carry lowest credit risk
ICRA 2,000 ICRA A1+ Very strong degree of safety and lowest
credit risk
BANK LOANS
ICRA* 108,180 ICRA A1+ Very strong degree of safety and lowest
credit risk
Long-term Rating
Amount of rating Rating Indicates
(` in million)
SUBORDINATED DEBT
CRISIL 1,000 CRISIL AA/(Stable) High degree of safety with regard to timely
servicing of financial obligations and carry
very low credit risk
ICRA 1,000 ICRA AA (Stable) High degree of safety with regard to timely
NON-CONVERTIBLE DEBENTURE
CRISIL 5,000 CRISIL AA/(Stable) High degree of safety with regard to timely
ICRA 2,000 ICRA AA (Stable) High degree of safety with regard to timely
BANK LOANS
ICRA* 93,370 ICRA AA (Stable) High degree of safety with regard to timely
*Within the overall rating of `1,27,600 millions

Business Review
Business Review
Our gold loan portfolio is the largest Besides, we offer online gold loans,
in India as well as globally. Since which enable our customers to withdraw
inception, our customers and their amounts from their accounts within the
interests have been our top priority. sanctioned limit at their convenience.
We deliver swift gold loan services and Customers can use internet banking
it takes no more than a few minutes at their own convenience through our
GOLD for our customers’ gold to generate WebPay domain under the tab ‘Online
LOAN money in their hands. Gold Loan’.
BUSINESS
`27,220
Gold loan portfolio as on
Crs. 73 Lakhs
Number of loan accounts
31st March, 2017 as on 31st March, 2017
Muthoot Insurance Brokers Pvt insurance companies and is reputed

Limited (MIBPL) is our wholly-owned for quality of business and after-sale
subsidiary. It is licensed as a direct services. We are instrumental in
broker by IRDA, since 2013. MIBPL developing and marketing new and
is actively distributing both life and unique products to its customers.
non-life insurance products of various
INSURANCE
BROKING
5,66,000 ` 70 Crs.
Lives insured in 2016-17 First year premium
collected under traditional,
term and health products in
2016-17
Asia Asset Finance PLC (AAF), Colombo, listed on the Colombo Stock Exchange.
Sri Lanka is our foreign subsidiary. At present, it is involved in retail finance,
AAF is a registered financial company hire purchase and business loans. In
based in Sri Lanka that is fully licensed, 2015, it entered the space of gold loans
deposit-taking institution registered with assistance of Muthoot Finance.
with the Central Bank of Sri Lanka; and
SRI LANKA
BUSINESS
15
Branches
448
Employees
` 369 Crs.
Loan portfolio as on
31st March, 2017

Muthoot Homefin (India) Limited operates on a ‘Hub and Spoke’ model,

(MHIL) - our subsidiary - is a housing with centralised processing based at its
finance company (HFC) registered with Corporate Office in Mumbai. MHIL has
the National Housing Bank (NHB). As operations in Maharashtra (including
on March 31, 2017, we hold 88.27% of Mumbai), Gujarat, Rajasthan, Madhya
equity capital in MHIL. MHIL’s primary Pradesh and Kerala. Recently, ICRA
objective is to contribute towards assigned long-term debt rating of ICRA
financial inclusion of LMI families by AA- (Stable) for its bank limits. The rating
opening doors of formal housing finance indicates high degree of safety with
HOUSING to them. Its focus is on extending regard to timely servicing of financial
FINANCE affordable housing finance. MHIL would obligations and carry very low credit risk.
be concentrating primarily on retail
housing loans in the initial stages. It
9
Branches
110
Sales offices
` 441 Crs.
Loan portfolio as on 31st
March, 2017
Belstar Investment and Finance Private Belstar was awarded by ACCESS-

Limited (BIFPL) is a microfinance ASSIST as the best Micro Finance
company where we have an equity Institution (MFI) under the ‘small
holding of 64.60%. BIFPL’s operations category’.
span across four states – in Tamil Nadu,
Karnataka, Madhya Pradesh, and
Maharashtra, and one union territory
- Puducherry. It has carved a niche
for itself in the microfinance arena by
155
Branches
focusing on the following areas during
2016-17:
• Facilitated access to microenterprise
loans, education loans and consumer
` 567 Crs.
Loan portfolio as on 31st
MICROFINANCE goods loans March, 2017
• Covered underserved regions with
a focus on financial literacy and skill
training through self-help group
(SHG) and joint-liability group (JLG)
lending models
• Introduced cashless channels of
disbursement, such as pre-paid cards
and direct credit to bank accounts
• Reduced vulnerability by offering
insurance services

Key performance indicators
Key performance
indicators
Gold loan assets ` in Crs. Revenue ` in Crs.
5747
27220
26000
5387
24336
4947
23350
4875
21618
4325
2012-13
2013-14
2014-15
2015-16
2016-17
2012-13
2013-14
2014-15
2015-16
2016-17
12% 18%
Y-o-Y growth Y-o-Y growth
Average gold loan ` in Crs. Gold holding In tonnes

per branch
149
142
6.32
6.36
134
131
5.69
5.50
118
5.06
2012-13
2013-14
2014-15
2015-16
2016-17
2012-13
2013-14
2014-15
2015-16
2016-17
11% 5%

Profit after tax ` in Crs. Earnings per share `
1180
29.56
27.02
1004
20.99
20.34
810
780
16.97
671
2012-13
2013-14
2014-15
2015-16
2016-17
2012-13
2013-14
2014-15
2015-16
2016-17
46% 45%
Net worth ` in Crs.

6516
5619
5084
Key ratios
4265
2014-15 2015-16 2016-17

3736
Capital Adequacy 24.78 24.48 24.88

Net NPA 1.88 2.46 1.69
Return on Assets 3.03 3.32 4.47
2012-13
2013-14
2014-15
2015-16
2016-17
Return on Equity 14.35 15.13 19.44

16% Debt Equity 3.83 3.32 3.24
Y-o-Y growth
Performance of the decade

(` in Crs.)
Year Ended
Particulars
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Revenue 369 620 1,089 2,316 4,549 5,387 4,947 4,325 4,875 5,747
Profit Before Tax 97 148 346 761 1,331 1,511 1,193 1,028 1,317 1,921
Provision for Taxation 33 50 118 267 439 507 413 357 507 741
Profit After Tax 64 98 228 494 892 1,004 780 671 810 1,180
Equity Share Capital 5 49 301 320 372 372 372 398 399 399
Reserves & Surplus 218 322 284 1,014 2,554 3,364 3,893 4,686 5,220 6,117
Net worth 223 371 585 1,334 2,926 3,736 4,265 5,084 5,619 6,516
Loan Assets 2,226 3,369 7,438 15,868 24,674 26,387 21,862 23,408 24,379 27,278
No. of branches 707 985 1,605 2,733 3,678 4,082 4,270 4,245 4,275 4,307
No. of employees 3,999 5,979 9,745 16,688 25,351 24,881 25,012 22,882 22,781 24,205

Chairman’s Communiqué
Chairman’s
Communiqué
DEAR SHAREHOLDERS,
India’s economy continued to grow
attractively amid a sluggish and fragile
global economic landscape in FY 2016-17.
The GDP grew by 7.2%, despite several
national and international challenges.
The government is implementing radical
reforms to make India’s economic growth
more inclusive and sustainable. One such
bold reform is the implementation of the
goods and services tax (GST). Apart from
unifying the segregated markets of India,
GST is expected to improve the country’s
indirect tax system. Other government
initiatives are also helping strengthen the
economy in different ways.
India’s financial sector is maturing to

keep pace with the country’s economic
progress. It is a diverse industry that
consists of various financial entities
including non-banking finance companies
(NBFCs). NBFCs like us play a vital
role in expanding financial inclusion by
complementing the banking sector - and
provide credit solutions to the unbanked
segments of society, especially to the
small enterprises. The NBFC sector has
come to be recognised as a significant
component of the financial system
and has shown consistent growth - a
compound annual growth rate (CAGR) of
~19% over the past few years.
CONNECTING -
ASPIRATIONS &
OPPORTUNITIES
Despite challenges, our overall results in FY17 were As India’s largest gold financing company,
robust. Our revenues grew by 18%, from ` 4875 we are increasingly creating opportunities
Crores in FY16 to ` 5747 Crores in FY17. for millions of people to achieve their
aspirations. Since inception, we have

helped transform India’s gold banking (MIBPL), an IRDA registered direct broker concentrated on building a stronger
system and today, we are a trusted pan- in insurance products, in FY17, making it team with enhanced capabilities through
India brand in this segment. as a wholly/owned subsidiary. It generated trainings. Our HR policies are aimed
a first-year premium collection of ` 70
at balancing business needs, and the
However, we believe that our journey Crores in FY17 as against ` 48 Crores
requirements and concerns of our
has just commenced; and we are keen in FY16.
people. Besides, Muthoot Management
to grow as a brand that offers various Academy trains and develops our people,
products and services to a wide cross- Further, we increased our shareholding in
the housing finance company - Muthoot cultivating leadership qualities. We have a
section of customers.
Homefin (India) Ltd from 79% to rewards and recognition programme that
88.27%. During the year, its loan portfolio motivates our team to deliver outcomes.
At the same time, we are catering to
different financial requirements of our increased by ` 409 Crores to touch ` 441
existing and potential customers in other Crores. Total revenue for FY17 stood at COMMUNITY CARE
segments of financial services business. ` 24 Crores vis-à-vis ` 2 Crores in FY16. For us, community care is an essential
Going forward, our objective will be to It achieved a PAT of ` 2.87 Crores during part of our sustainability strategy. As a
connect aspirations and opportunities the FY17. responsible organisation, we conduct
to help shape a happier and prosperous our business to enhance community
India. During FY17, we augmented our
lives around us. We believe in providing
shareholding in the Sri Lankan subsidiary
- Asia Asset Finance PLC. It improved its inclusive growth through community
PERFORMANCE IN FY17 development initiatives that will lead
Despite challenges, our overall results in loan portfolio by 23% at ` 369 Crores in
the year under review. Total revenue for to social prosperity. We deliver our
FY17 were robust. Our revenues grew
FY17 stood at ` 97 Crores, compared to community care with the help of our
by 18%, from ` 4875 Crores in FY16 to
` 5747 Crores in FY17. Our net profit total revenue of ` 66 Crores in FY16. It corporate responsibility arm, ‘Muthoot M
increased by 46% to ` 1180 Crores generated a PAT of ` 13 Crores in FY17. George Foundation’.
in FY17 from ` 810 Crores in FY16.
Besides, our loans under management These ventures have enabled us diversify We believe the road ahead of us will
increased from ` 24379 Crores in FY16 our product offerings to cater to various require consistent innovation and
to ` 27278 Crores in FY17, recording an customer needs. These developments technology upgradation to stay ahead of
increase of 12%. In addition, our branch have enabled us to derive synergies the curve. Going forward, we are devising
network increased to 4307 branches beneficial for the Company’s long-term strategies to enhance our products,
spread across India in 29 states and prospects. services and revenues, while increasing
union territories. contributions of our subsidiaries to our
group assets. Further, we will continue
Moreover, our subsidiaries contributed
CREDIT RATING to expand our operations nationally and
to about 5% of our group assets. ‘AA/Stable’ long-term credit rating from internationally, empowering masses
CRISIL and ICRA demonstrates our across the social spectrum and adding
In FY17, we increased our stake in consistent performance over the years. stakeholder value.
Belstar Investment and Finance Private Moreover, under short-term debt rating,
Limited (BIFPL) to 64.60%, thereby we already have the highest rating of Before I conclude, I want to thank all our
making it a subsidiary. BIFPL grew its A1+ from CRISIL and ICRA, which stakeholders on behalf of the Muthoot
loan portfolio by 114% at ` 567 Crores. indicates lowest credit risk. These ratings team for supporting our journey and
It achieved a profit after tax (PAT) of vision.
will enable us to draw better rates from
` 10 Crores during the year vis-à-vis financial institutions, reducing our cost
PAT of ` 6 Crores in FY16. Its gross and Warm regards,
of borrowing. This will eventually let us
net non-performing assets (NPAs) were
provide loans at more competitive rates. M. G. George Muthoot
0.09% and 0.02%, respectively as on
31st March, 2017. Chairman
TEAM MUTHOOT
We acquired 100% stake in Muthoot At Muthoot, our people are our biggest
Insurance Brokers Private Limited asset. In the year under review, we

Widening our digital outreach
Widening our
digital
outreach
As India witnesses a digital transformation across every facet
of its economy, at Muthoot, we are consistently introducing
or upgrading our digital tools to enhance our business.
Technology-based interventions and digitalisation help us cater
to a wider market and enhance our customer experience.
14
E-KYC multiple payment options, including app is available on Google Play and
To facilitate easier compliance to KYC debit cards, online banking, prepaid Apple Store. iMuthoot allows existing
norms by customers, we launched cards, and mobile wallets, among others. customers to view their loan statements
and balance as well as Online Gold
‘e-KYC facility’. It is a customer- It has already completed over 1 million
Loan facility. New customers can see
friendly and convenient digital KYC successful transactions, which reflects
our latest loan schemes, calculate
process based on Aadhaar with direct its acceptability among customers. loan eligibility, locate branches and fix
UIDAI link. The verification procedure appointments with their nearest branch
is conducted by using customers’ GOLD CASH CARD (GCC) officials and apply for gold loans. It is
fingerprints. This paperless and We are the only gold loan NBFC to available in six languages.
highly secure system enables faster offer Gold Cash Card (GCC), which
is a unique concept of cashless loan MISSED CALL SERVICE
loan processing and ensures 100%
disbursement using cards. The loan We launched the ‘Missed Call Service’
integrity in KYC verification. We
amount is disbursed through VISA for our customers in August 2015.
are the first ‘Gold Loan NBFC’ to cards, which customers use according
introduce this facility, with over 50% Through this facility, our customers
to their requirements at any merchant receive text messages showing their
adoption rate in the first rollout. outlet, e-commerce websites or any outstanding gold loan and interest
Today, we offer our e-KYC facility at VISA-enabled Point of Sale (PoS). The due as on date, as soon as they give a
3,702 branches and 86% of the new GCC can also be used to withdraw missed call on 08040751515. It allows
verifications are completed through cash from ATMs. Bank accounts are not customers to pay the exact amount
e-KYC. Besides, we are planning required for the issuance of this card. online, without visiting the branch.
to implement the e-Sign facility by
August 2017. DIRECT CREDIT FACILITY E-MAIL AND SMS ALERTS
Through our direct credit facility, we We generate real-time cyber receipts
transfer loan amounts directly to our
ONLINE GOLD LOAN (OGL) and send those to customers through
customers’ bank accounts. We employ text messages and e-mails. Repayment
Our Online Gold Loan (OGL)
various online banking services like reminders and transaction details are
service is one of our major digital National Electronic Funds Transfer
interventions. OGL helps customers provided through these mediums to
(NEFT), Real Time Gross Settlement ensure customer comfort and security.
meet their urgent loan requirement (RTGS) and Immediate Payment
at any place and anytime. The loan Service (IMPS). This reduces handling
AUTO DEBIT FOR EMI
amount they seek gets directly of cash and instantaneous credit to bank
PRODUCTS
credited to their bank accounts. accounts.
We offer National Payments Corporation
They even have the flexibility to of India’s (NPCI) Automated Debit
repay online. Under this model, loan POS TERMINALS System to our customers for ‘Gold Loan
customers get disbursal on the basis Point of Sale (PoS) terminals or card Instalment Scheme’ to provide them
swiping machines are installed at our convenience and flexibility.
of the value of gold they pledge at our
branches to facilitate cashless collection
branch beforehand.
of interests. We accept all debit cards
CUSTOMER FOLLOW-UP
issued by banks; and the swiping
MUTHOOT ONLINE MODULE
charges for interest payments were
(WEBPAY) Our Customer Follow-up module,
waived off during demonetisation.
integrated with the core banking
We have aligned Muthoot with digital Currently, 36% of our branches are
system, assures timely follow-up by our
transactions mode by introducing installed with these machines, and
branch and field staff. It also ensures
our online transaction platform we plan to roll out the same in all our
on-time repayment of loans, which
– Muthoot Online (WebPay). It branches by December 2017.
significantly reduces the amount of non-
enables customers to carry out all performing assets (NPA).
their gold loan related transactions iMUTHOOT – MOBILE APP
We developed a new mobile application
24x7 from the comfort of their
called iMuthoot that allows customers
home on their internet-enabled
to transact through their smartphones.
devices. This facility is available on This is our major initiative towards
our website muthootfinance.com. building a branch-less banking
Muthoot Online (WebPay) offers ecosystem for our customers. The

Democratising our brands
Democratising
our brands

At Muthoot, we are enhancing our consumer outreach

through innovative communication strategies that
differentiate our products and services in the crowd.
With our sharp focus on transforming aspirations into
achievements, we have created more customer touchpoints
across urban, semi-urban and rural areas.
presence in various events and for branches. It helped us to further

PRINT ADVERTISEMENT sponsorship programmes. increase awareness through banners,
We published advertisements in
notices, arches, vertical board, and
leading national and regional dailies OUTDOOR CAMPAIGNS indication board. We also employed
across India to promote our brand and We influenced our target customers auto back stickers, sun pack boards,
products. through various outdoor media no parking boards, jeep stepney,
advertisements. We increased our step branding, cable TV scrolls, glass
RADIO ADVERTISEMENT visibility in high footfall places, such branding, ATM branding, wall painting
We used promotional campaigns in as bus shelters, hoardings, pole kiosks, and others.
major national radio stations across gantries, road centre medians, bus
India for our various products. stands and police umbrellas. We used CUSTOMER ENGAGEMENT
these locations to promote our various INITIATIVES
TV ADVERTISEMENT products and brand through various We organised customer engagement
We released television commercials campaigns. initiatives like pan-India medical check-
(TVCs) in major TV channels in Hindi- up camps for ‘eyes’.
speaking markets (HSMs) and regional MARKETING INITIATIVES
markets. Van Marketing
Van marketing is a very effective
THEATRE ADVERTISEMENT publicity medium for Tier II and Tier
We released commercial III cities. We organised van campaigns
advertisements through digital in various urban and rural areas that
theatres. delivered successful results.
EVENTS AND SPONSORSHIP Branch Level Marketing

We gained increased mileage and We bolstered our brand presence
visibility for our brand through and visibility through local activities

Upping the information technology prowess
Upping the information
technology
prowess
A strong IT framework helps deliver seamless processes,
synchronising daily operations. Thus, we are capitalising on our
robust IT framework to enhance our efficiencies.
In FY17, we further strengthened our online training modules, which enable from regional offices and head offices.
IT systems. employees to effectively upgrade their With a 360-degree dashboard that
knowledge and skills. provides the data and KPIs of health of
HUMAN RESOURCES surveillance devices, we have designed
MANAGEMENT SYSTEM CUSTOMER FOLLOW-UP a robust system that closely monitors
(HRMS) MODULE working status of surveillance devices.
We have automated the entire employee Our asset recovery solution enables The surveillance system has instant data
life-cycle processes from ‘entry to exit’ effective and comprehensive customer recording facility and playback options.
through HRMS, which is accessible follow-up and recovery operations. The system provides a comprehensive
online to all branches, offices and It is tightly integrated with the core solution for complaint management
employees. Our HRMS is integrated banking solution and access is provided module and strong tracking systems.
with a biometric-based attendance to both branch and field staff. The asset
system. Besides, we have digitalised all recovery solution helps in reducing non-
employee-related documents and made performing assets (NPA) by proactive
them available across branches and monitoring of loans.
offices. The improved HRMS will allow
us to track employee performances 100+ API INTEGRATIONS
better and enhance our rewards and We have established a robust API
recognition programmes in future. (Application Programming Interface)
integration platform; and amalgamated
INTERNAL AUDIT more than 100 APIs for banking
SOFTWARE segments, money transfer, insurance
In FY17, we have implemented an providers and other external partners.
internal audit software that will schedule This helps us carry out multiple
audits and assignments of auditors. transactions simultaneously. Besides, we
The system will help carry out online are driving further API integration for
audit through accessing the system by other divisions of the Company.
regional auditors, recording irregularities
and non-compliance. The software CRM SYSTEM
will further make available effective In FY17, we began the process for
monitoring and control at branches, implementation of a functional CRM
regional offices, zonal offices and the solution that is rich and highly scalable.
head office. Moreover, all branch-based The CRM will be fully integrated with
rectifications can be reviewed and the core banking solution (CBS). With
approved by auditors online. the 360-degree view of our customers
through the CRM, we can manage
INTRANET FOR customer relations more effectively.
KNOWLEDGE Besides, it will help us in cross-selling
MANAGEMENT and upselling various products and
At Muthoot, we have our intranet services offered by our business
service – Muthoot Information divisions in the Group.
Network for Employees (MINE) that
provides comprehensive information CCTV SURVEILLANCE
to employees on their fingertips. MINE SYSTEM
is used for internal communication, We have incorporated a robust tracking
including distribution of messages and system through 24x7 CCTV surveillance
circulars. Moreover, the application that allows live streaming of visuals from
contains several multimedia-based cameras installed at branches and offices

Making The Team Future-Ready
Making The Team

Future-Ready
At Muthoot, we have an agile team that is committed to the
Company’s objectives. As an organisation, we foster a work ecosystem
that enables our people to perform to the best of their abilities. With
a transparent recruitment policy, we attract talent and consistently
motivate them through best-in-class training modules, along with
rewards and recognition programmes.
We have always been committed The programmes include product or development across all business
towards providing employees with process trainings, soft-skill trainings, segments. The academies are fully-
ample opportunities to learn and leadership trainings and certification equipped, professional training
advance their career. To nurture careers trainings for different group of facilities that design and deliver top-
at Muthoot, we focused on four major employees. notch training programmes aimed at
areas for employee engagement in enhancing employee productivity. They
FY 2016-17. For the purpose, we have developed are focused on improving management
two Muthoot Management Academies and leadership skills. Additionally, the
Training and development: We offer (South and North). These are apex MMAs produce online content for the
multiple training programmes to training institutions of the Muthoot corporate e-learning platform.
employees for their skill development. Group, responsible for learning and

In FY 17 we engaged our people in the following training programmes:
Managerial Effectiveness Programme: Muthoot Certified Business Manager

PERFORMANCE
Two-day people management and Programme MANAGEMENT
leadership programme exclusively for An ‘internal MBA’ in five levels covering We have formulated a ‘performance
promoted supervisory staff business management, operations risk, scorecard’ for performance assessment
Participants: 168 sales, career development of all employees in the branch
Participants: 1,689 model. We measure performances
Mentoring Effectiveness Programme of employees every quarter through
One-day mentoring skills programme Executive Development Programme the pre-defined scorecard; and ensure
exclusively for corporate office and Special programme for ‘fast-track corrective measures and performance
regional office supervisory staff promotes’ to develop their branch are fine-tuned for future. The use of
Participants: 171 management and leadership skills
performance scorecards has helped in
Participants: 140
improving role clarity and objectiveness
Leadership Effectiveness Programme
to performance assessment. On
One-day leadership programme for MS Excel Training Programme - Basic
supervisory staff, focused on leadership and Intermediate the basis of individual performance
and team management One-day MS Excel basic programme for scores, the increments were disbursed.
Participants: 487 corporate office staff Moreover, we encourage low performing
Participants: 115 employees through well-defined
Corporate Induction Programme performance growth programmes.
Five-day induction programme for One-day MS Excel intermediate
new recruits programme for those corporate office REWARDS AND
Participants: 2,740 staff who passed the basic programme RECOGNITION
Participants: 230 We introduced new means of payouts
Performance Management
and increased the payout percentage
Programme Finishing School Programme
for existing incentives based on
Five-months handholding and Students of Muthoot Institute of
mentoring programme for new recruits Technology and Science were imparted performance of employees. In FY17, an
Participants: 2,740 training on life skills, productivity ex-gratia payment along with festival
models, communication skills, public bonus, which was almost equal to
Distance Learning Programme speaking employees’ one month pay, were paid
Programme is exclusively designed for Participants: 280 to employees at each grade. Moreover,
branch level staff we increased the incentives for Gold
Participants: 6,200 i – think Loan Portfolio and interest collection.
Special programme for Corporate Office In addition, we reward employees with
Train the Trainer Programme; staff to create awareness on emerging foreign trips to exquisite locations based
and TTT-RLC trends and communicate expectations
on their achievements.
Specifically designed for Regional from regions and branches
Learning Centre’s trainers Participants: 40
Participants: 146
PROMOTIONS
Performance Improvement We have a robust mechanism for
Branch Manager Programme Programme identifying performers, take all steps to
Three-day business performance One-day programme aimed at promote eligible employees to the
programme, which focused on sales improving business performance of next level.
management and leadership underperforming staff
Participants: 491 Participants: 4,949
Performance Enhancement
Programme
63,088
Two-day programme aimed at Man Days
improving business performance of Total Training Man Days during
underperforming supervisory staff FY 2016-17
Participants: 91

Supporting Community Aspirations
Supporting
Community Aspirations
At Muthoot, our concern towards the society is a part of our all-
embracing sustainability strategy. Our need-based initiatives help
solve some of the persistent challenges in the areas of education,
poverty alleviation, disaster management, environmental protection
and women empowerment.
Kumar, Regional Admin Manager, Mr. Mr. Sojan Antony, HDC Member;
G. Venkatesan, CBM, Vellore; Mr. T. Ms. Gracy Joseph, Welfare Committee
Vimal Kumar, Regional Trainer, Vellore & Chairperson were present on the
Chennai South and other officials were occasion.
present on this occasion.
MUTHOOT VIVAHA
DISTRIBUTION OF SAHAYAM PROJECT
EDUCATIONAL MATERIAL Muthoot M. George Foundation, the
Educational kits and school bags were CSR arm of Muthoot Finance provided
distributed to underprivileged students financial assistance to daughters of
DISTRIBUTION OF of Thane Municipality School, Mumbai. widowed mothers, who are from
SCHOOL BAGS economically poor background as
As a part of CSR activities, school bags INAUGURATION OF marriage assistance. Muthoot Vivaha
were distributed to the students of RENOVATED EYE CARE Sahayam project was inaugurated by
Chowalloor VHSS in Kollam District. BLOCK OF GENERAL H.H. Baselios Mar Thoma Paulose II,
The programme was inaugurated by Mr. HOSPITAL Catholicos of the East & Malankara
George Jacob Muthoot, Joint Managing Muthoot Finance Ltd. has renovated Metropolitan in the presence of
Director, The Muthoot Group, in a the eye care block of General Hospital, Mr. M.G. George Muthoot, Chairman,
function witnessed by Sri. Mullakara Ernakulam. Prof. K.V. Thomas, The Muthoot Group; Mr. George
Ratnakaran, MLA (Ex-Minister), along Thomas Muthoot, Jt. Managing
with Mr. T.M. Mathews, retired AGM, Director; Mr. Thiruvanchoor
Muthoot Finance Ltd. Radhakrishnanan, MLA; Mr. G. Lijin Lal,
BJP District General Secretary;
NOTEBOOK DISTRIBUTION Dr. Paul Manalil; Mr. Babu John Malayil,
Over 1 lakh notebooks were distributed DGM, Corporate Communications were
through Muthoot Finance branches in present on this occasion.
South India. Note books distribution
SCHOLARSHIP LAUNCH –
TELENGANA
The Muthoot M George Excellence
MP; and Mr. George Alexander Muthoot, award for 10th standard toppers of
Managing Director, Muthoot Finance 200 Government schools in Telengana
Ltd., jointly inaugurated the renovated was inaugurated and distributed by Mr.
eye care block. Dr. Dalia V.S., Medical Eapen Alexander, Director, The Muthoot
Superintendent; Dr. Haneesh, RMO; Group. The other officials present
Dr. Vijayalakshmi, Ophthalmologist; during this occasion include Mrs.
Dr. K Kuttappan, DMO, Ernakulam; Dr. Anuradha Devi, Deputy Inspector of
at Govt. Municipal Girls Higher Haseena Muhammed, DPM; Dr. Junaid Schools, Golconda Mandal; Mrs. P. Veera
Secondary School, Vellore. Mr. S. Ashok Rahman, HDC principal advisor; Lakshmi, Head Mistress, Govt. High

School, Trishulpark (Bolaram); closing ceremony of ‘Hero Indian Super MUTHOOT FINANCE
Mr. Babu John Malayil, DGM, Corporate League 2016’. The award was presented YMCA CHANGE AGENT
Communications, Muthoot Finance by Mr. K.R. Bijimon, Chief General PROGRAMME
Ltd; Lt. Col. R. Sreekanth, Regional Manager, The Muthoot Group, to Mr. We launched ‘Muthoot Finance YMCA
Manager, Hyderabad Region; Lt.Col. Abhishek Bachchan and Ms. Vita Jalaj Change Agent Programme’ for the
Chandrasekharan Suresh, Regional Dani, Co-Owners of Chennayin FC. students of Government Schools. The
Manager, Secunderabad region. project focused on enhancing essential
MUTHOOT attributes/skills, which will help
HARITHATEERAM AROGYA SNEHASAMMANAM 2017 students to groom into young confident
GRAMAM PROJECT, Muthoot M George Foundation personalities. 10,000 students from
CHELLANAM launched ‘Muthoot Snehasammanam 32 schools in Ernakulam were covered
We inaugurated Harithateeram Arogya 2017’ to honour artists, writers and under the training programme. From
Gramam project at Chellanam. This their widows by providing monthly these, 250 students were identified for
project is to develop Chellanam village financial assistance. The first edition intensive training. These students will
by giving educational assistance to of Snehasammanam was launched act as ‘role models’ and inspire rest of
children, training and counselling to in January 2015. 14 beneficiaries the students in their schools to become
students, construction of rainwater were then honoured. In 2016, 12 better, ideal and well-disciplined
harvesting systems and toilet, marriage more artists were honoured. Muthoot personalities. The valedictory function
assistance, among others. We have Snehasammanam 2017 honoured 12 of ‘Muthoot Finance YMCA Change
already supported Chellanam Village more, thus, bringing the total number of
by giving vegetable grow bags for beneficiaries to 34. These beneficiaries
belong to different backgrounds,
specialised in their respective work
segments namely writers, music
directors, ganamela artists and
professional painters, among others.
The initiative aims to help the upcoming
generation of artists and writers, who
could get inspired and learn from the
work of these professionals. Padmashree
Agent Programme’ was inaugurated by
Dr. J. Latha, Vice Chancellor, CUSAT,
producing fresh vegetables. Prof. K.V. along with Mr. George M Jacob,
Thomas, MP, along with Mr. George Director, The Muthoot Group; Mr. C.A.
Alexander Muthoot, Managing Director, John Lukose, former President and
The Muthoot Group inaugurated Chairman, Social Service Committee;
Harithateeram Arogya Gramam project Mr. K. P. Paulson, Vice President and
at Chellanam. Mr. K.J. Maxy, MLA, Treasurer; Mr. Babu John Malayil,
Alice Luckose, Director, Win Society; Deputy General Manager, Muthoot
K.K. George, Mr. Babu John Malayil, Finance Ltd.; Mr. P. J. Kuriachan,
Deputy General Manager, Corporate Balachandra Menon, renowned film President, YMCA Ernakulam; Mr. N.
Communication, The Muthoot Group; artist, handed over the Muthoot V. Eldo, General Secretary, YMCA
Mrs. Annie Joseph were also present on Snehasammanam 2017 cheque to Shri. Ernakulam were present on this
this occasion. Sidharth Vijayan, music director. Also occasion.
seen in the picture (L-R), Shri. George
THE MUTHOOT GROUP Jacob Muthoot, Jt. Managing Director;
FAIR PLAY AWARD Dr. John V. George, Executive Vice
Chennayin FC was awarded ‘The President; Mr. John Mundakkayam,
Muthoot Group Fair Play Award’ at the Bureau Chief (Trivandrum), Malayala
Manorama.

Progressing down the decades
Progressing
down the decades 1887
The Group came into being as a trading
1939 business at a village in Kerala
Commenced gold loan business
2001
2004 Received the RBI license to function as an NBFC
Received highest rating of F1 from Fitch Ratings

for a short-term debt of ` 200 Million
2005
Retail loan and debenture portfolio crossed ` 5 Billion
2007
Retail loan portfolio crossed ` 14 Billion
Net owned funds crossed ` 1 Billion
Categorised as NBFC-ND-SI as per RBI norms 2008
Branch network crossed 500
Retail debenture portfolio crossed ` 12 Billion
Fitch affirmed the F1 short-term debt rating with an
enhanced amount of ` 800 Million
2009 Converted into a Public Limited Company

Gross annual income crossed ` 6 Billion
2010
Bank credit limits crossed ` 10 Billion
Branch network crossed 900 branches
CRISIL assigned ‘P1+’ rating for short-term debt of
` 4 Billion, ICRA assigned A1+ for short-term debt
of ` 2 Billion
2011 Net owned funds crossed ` 5 Billion
Retail loan portfolio crossed ` 158 Billion Bank credit limits crossed ` 17 Billion
Retail debenture portfolio crossed ` 39 Billion Branch network crossed 1,600 branches
CRISIL assigned long-term rating of AA- Stable for ` 1 Billion
subordinated debt issue and for ` 4 Billion Non-Convertible
Debenture issue, respectively
ICRA assigned long-term rating of AA- Stable for ` 1 Billion
subordinated debt issue and for ` 2 Billion Non-Convertible
Debenture issue, respectively
PE investments of ` 2,556.85 Million in the Company by
Matrix partners, LLC; The Welcome Trust; KotakPE; Kotak
Investments and Baring India PE
Bank credit limit crossed ` 60 Billion
Branch network crossed 2,700 branches

2012
ICRA assigned long-term rating of AA- Stable and short-term
rating of A1+ for ` 9,353 Crores line of credit
Successful IPO of ` 9,012.50 Million in April 2011
2013 Raised ` 6.93 Billion and ` 4.59 Billion through Secured Non-
Convertible Debenture Public Issue – Series I and Series II,
Retail loan portfolio crossed ` 260.00 Billion respectively
Retail debenture portfolio crossed ` 97.00 Billion
Net owned funds crossed ` 37.00 Billion
Bank credit limit crossed ` 92 Billion
Gross annual income crossed ` 53.00 Billion Branch network crossed 3,600 branches
Profit After Tax for the year crossed ` 10.00 Billion
Bank credit limit crossed ` 99.00 Billion
ICRA assigned long-term rating of AA- Stable and short-
term rating of A1+ for the 2014
` 10,428.00 Million line of credit
Raised ` 2.60 Billion and ` 2.70 Billion through public Retail loan portfolio crossed ` 219.00 Billion
issues of Series III and Series IV Secured Non-Convertible Listed debenture portfolio raised through public issue ` 11.00
Debentures, respectively Billion
ICRA & CRISIL revised the outlook on long-term rating Net owned funds crossed ` 42.00 Billion
from AA-/stable to AA-/ Negative Gross annual income touched ` 49.00 Billion
Profit after tax for the year crossed ` 8.00 Billion
ICRA revised their outlook on long-term ratings from ‘[ICRA]
AA-/Negative’ to ‘[ICRA]AA-/Stable’ on 14th January, 2014
2015 CRISIL revised their outlook on long-term ratings from ‘CRISIL
AA-/Negative’ to ‘CRISIL AA-/Stable’ on 5th February, 2014
Issued 25,351,062 fresh equity shares by way of an
institutional placement programme under Chapter VIII – A of
the SEBI ICDR Regulations, aggregating up to
` 4,182.93 Million
Listed Debenture Portfolio raised through public issue ` 14.62 2016
Billion
Retail Loan Portfolio touched ` 234.09 Billion Retail loan portfolio crossed ` 243.00 Billion
Net owned funds crossed ` 50 Billion Listed debenture portfolio raised through public issue ` 12.39
Gross annual income touched ` 43.25 Billion Billion
Profit after tax for the year touched ` 6.71 Billion Net owned funds crossed ` 55.00 Billion
Acquired 51% of capital of Asia Asset Finance PLC (AAF) Gross annual income touched ` 48.75 Billion
making it a subsidiary Profit after tax for the year touched ` 8.10 Billion
Acquired 79% of the equity capital of Muthoot Homefin
(India) Limited (MHIL). MHIL is a Housing Finance Company
Registered with The National Housing Bank
Acquired Muthoot Insurance Brokers Private Limited (MIBPL)
2017 as a wholly-owned subsidiary in June 2016. MIBPL is an
unlisted private limited company holding a licence to act as
direct broker from IRDA since 2013
Loan assets portfolio crossed ` 272.00 Billion Acquired 46.83% of the capital of Belstar Investment and
Listed debenture portfolio raised through public issue Finance Private Limited (BIFPL) in July 2016. BIFPL was
` 18.31 Billion reclassified as an ‘NBFC-MFI’ by RBI with effect from 11th
Net owned funds crossed ` 64.00 Billion December, 2013
Gross annual income touched ` 57.46 Billion CRISIL and ICRA upgraded long-term debt rating from AA-/
Profit after tax for the year touched ` 11.80 Billion Stable to AA/Stable.
Increased its stake in BIFPL to 64.60% thus making it a
subsidiary.
Increased its stake in MHIL to 88.27%.
Further increased its stake in AAF to 60.00%.

Board of Directors
Board of Directors
1 2 3
M. G. GEORGE GEORGE THOMAS GEORGE JACOB

MUTHOOT MUTHOOT MUTHOOT
4 5 6
GEORGE ALEXANDER K. GEORGE JOHN K. JOHN MATHEW

MUTHOOT
7 8 9
JOHN K. PAUL GEORGE JOSEPH ALEXANDER M.

GEORGE
10
PAMELA ANNA MATHEW

the fifth edition of AIMA Managing Member of Trivandrum Chamber

1
India Awards 2014 of Commerce
EDUCATION Honoured with the Distinguished
Graduate in Mechanical Engineering and Outstanding Alumnus of 2015 AWARDS
from Manipal University Award by the Manipal University Business Excellence Award 2012
Ranked as one of the top 40 BFSI from Trivandrum Chamber of
Attended various Executive Commerce
Management Courses at the Harvard CEOs in India by the country’s
leading business magazine -
Business School
Business Today in its January
4
EXPERIENCE 2017 issue. The research was EDUCATION
Over four decades of experience in jointly conducted by Business Qualified Chartered Accountant; ranked
managing businesses operations in the Today and reputed multinational first in Kerala and 20th in India in 1978
field of financial services audit, assurance and professional
Bachelor’s degree in Commerce with a
services firm - Price Waterhouse
MEMBERSHIPS gold medal from Kerala University
Coopers (PwC)
National Executive Committee EXPERIENCE
Member of the Federation of 2 Over three decades of experience in
Indian Chamber of Commerce and
PROFESSION managing businesses in the field of
Industry (FICCI) financial services
Businessman by profession
Current Chairman of FICCI Kerala
State Council EXPERIENCE MEMBERSHIPS
Member of the Managing Over three decades of experience in Served as the Chairman of the
Committee of the Malankara managing businesses operations in the Kerala Non-Banking Finance
Orthodox Syrian Church for over field of financial services Companies Welfare Association
three decades, and has selflessly from 2004 to 2007
served as its Lay Trustee for a AWARDS Acted as a member secretary
decade Received the ‘Sustainable of the Finance Companies
Leadership Award 2014’ by the Association, Chennai
AWARDS CSR Congress in the individual Has been a founder-member
Received several awards from category of The Indus Entrepreneurs
Rotary International and Y’s Men’s International, Kochi Chapter;
International for community 3 currently, a member of the
development and social service
EDUCATION core committee of the Indus
Conferred with the Mahatma Entrepreneurs International, Kochi
Degree in civil engineering from
Gandhi National Award for social Chapter
Manipal University
service in 2001 by the Mahatma Currently the President of
Gandhi National Foundation EXPERIENCE Association of Gold Loan
Received the H.H. Baselios Over three decades of experience in Companies in India
Mathew I Award by Catholicate managing businesses in the field of An active member of
of the Syrian Orthodox Church financial services Confederation of Indian Industry
Mathews the First Foundation for (CII)
2008 that recognised his services MEMBERSHIPS
to the Church Kerala Builders Forum, AWARDS
Bestowed with the Asian Trivandrum Awarded the ‘CA Business Leader
Businessman of the Year 2011 The Confederation of Real Estate Award’ under Financial Services
award from the UK Kerala Business Developers Association of India Sector from The Institute of
Forum (CREDAI) (Trivandrum) Chartered Accountants of India for
Conferred with the Business The Trivandrum Agenda Task 2013
Leadership Award for the year Force Rotary Club, Trivandrum Conferred with the Times of India
2012 at the Golden Peacock (South) group Business Excellence Award
Awards, Bengaluru Governing body member of in customised Financial Services in
Bestowed with the ‘Business the Charitable and Educational March, 2009
Leader Award 2014’, instituted by Society of Trivandrum Orthodox Bestowed with Dhanam
Cochin Herald Diocese, Ulloor, Trivandrum Businessman of the year Award
Conferred with ‘Emerging Finance Committee Member in 2012
Business Leader of the Year’ title at of Mar Dioscorus College of Received the Business Excellence
Pharmacy, Althara, Trivandrum Award for business promotion by

Board of Directors
ICICI Prudential Life Insurance Managing trustee of Kuttukaran strategies, expanded its branch network,
Company Limited in 2010 Foundation that runs the and implemented various IT initiatives
Kuttukaran Institute for HRD, that have benefited both customers and
5 a leading institution offering employees.
EDUCATION professional courses
Postgraduate in Mathematical Statistics Charter Member of TiE, Kerala,
MEMBERSHIPS
Served as the President of Indian
and Member of Board of Trustees
EXPERIENCE – TiE Global
Subcontinent Club at Thunderbird
Retired in 2008 as Chairman and University, and has been a member
President of Kerala Automobile
Managing Director for India, TBWA of various committees at the
Dealers Association (KADA)
Worldwide, a part of Omnicorn Group, university
and President of Federation of
the world’s largest holding company in
Automobiles Dealers Association 10
advertising
(FADA)
He previously managed Ulka Advertising Served as the President of the
EDUCATION
She holds a postgraduate degree in
(now FCB-Ulka) Kerala Chamber of Commerce and
Economics from Kerala University and
Founded Anthem Communications Pvt Industry from 2005 to 2006
in Business Administration from Cochin
Ltd, which was rated year after year as
8 University
the fastest growing advertising company
in the country; Anthem went on to EDUCATION EXPERIENCE
merge with TBWA Worldwide under a Certified Associate of Indian Institute of A leading industrialist in Kerala, and
joint venture in 1988 Banking and Finance a well-known business leader with a
remarkable career spanning over 43
6 Ranked first in the commerce stream in
years
graduation from Kerala University
EDUCATION
Currently, serving as the Managing
Graduate in law from the Government EXPERIENCE
Director of O/E/N India Limited
Law College, Ernakulam Over 39 years of experience in the
EXPERIENCE
banking sector MEMBERSHIPS
Served as Chairperson of Social
Retired judge of the High Court of Former Chairman and Managing
Development and Women
Kerala Director of Syndicate Bank
Empowerment Panel for southern
Served as the Chairman of the Cochin Joined Syndicate Bank as an Executive region of Confederation of Indian
Stock Exchange Director on 1st April, 2006, and was Industry (CII)
elevated to the post of Chairman and Was on the Board of
Was a SEBI Nominee Director of the
Managing Director on 2nd August, Apprenticeship Training by the
Cochin Stock Exchange from 2002 to
2008; subsequently retired from office Ministry of Human Resource
2007
on 30th April, 2009 Development
MEMBERSHIPS Employed with Canara Bank for
Held positions as Chairperson of
Currently, serves as the President CII Kerala, President of Cochin
almost four decades before joining the
of the People’s Council for Social Chamber of Commerce and Kerala
Syndicate Bank
Justice, Kerala Management Association.
9 Member of Academic Council of
7 Cochin University of Science and
EDUCATION
EDUCATION MBA Graduate from Thunderbird
Technology
Graduate in engineering from the Trustee of Global Public School,
University (USA)
Regional Engineering College, Kozhikode Cochin
Advanced diploma holder in
DIRECTORSHIPS AND AWARDS
Business Administration from Florida
MEMBERSHIPS International University, Miami (USA)
Awarded the CII award for best
Managing Director of Popular Chairperson at national level for
Vehicles and Services Pvt. Limited, EXPERIENCE outstanding contributions
a leading and well-reputed dealer Currently, heads the marketing Bestowed with Management
of vehicles and automobile operations of the Company in Northern, Leadership Award of Kerala
accessories for Maruti Suzuki in Eastern and Western India. Under his Management Association
Kerala and Chennai dynamic leadership and keen vision,
Managing Director of Prabal the Company has enhanced its brand
Trucking, dealers for Daimler Benz visibility through innovative marketing
Trucks

29-114
Statutory Reports
30 Report of the Board of Directors
86 Report on Corporate Governance
102 Management Discussion & Analysis
115-255
Financial Statements
116 Standalone Financial Statements
188 Consolidated Financial Statements
Report of The Board of Directors
Dear Stakeholders,
Directors of your Company have pleasure in presenting the 20th Annual Report of the Company together with the audited
financial statements (standalone and consolidated) for the year ended 31st March, 2017.
1. FINANCIAL SUMMARY
The financial performance of your Company for the year ended 31st March, 2017 are summarized below:
(` in Crores)
Standalone Consolidated
Year ended Year ended Year ended Year ended
Particulars
31st March, 2017 31st March, 2016 31st March, 2017 31st March, 2016
Total Revenue 5,747 4,875 5,938 4,941
Total Expenses 3,826 3,558 3,980 3,614
Profit Before Tax 1,921 1,317 1,958 1,327
Tax expense 741 507 751 509
Profit for the year 1,180 810 1,207 818
Shareholders’ Funds 6,516 5,619 6,538 5,622
Total Liabilities 24,197 21,430 25,646 21,773
Total Assets 30,713 27,049 32,184 27,395
2. DIVIDEND The list of unpaid dividend is available on the Company’s

The Company has during the year 2016-17 paid an website www.muthootfinance.com. Shareholders are
interim dividend of ` 6/- per equity share (60% of face requested to check the said list and if any dividend
value). due to them is remaining unpaid in the said list, then
shareholders can approach the Company or Registrar
The dividend payout amount including the dividend and Transfer Agent of the Company for release of unpaid
distribution tax will be ` 288 crs representing 24.45% of dividend.
profit after tax for the year.
As per Section 124(5) of the Companies Act, 2013,
Directors of your Company decided to plough back the the Company shall transfer the dividend that remained
remaining profit after tax for business activities and unclaimed for a period of seven years from the date
hence have not recommended any final dividend. of transfer to unpaid dividend account to the Investor
Education and Protection fund (IEPF). Further as
Directors of your Company has approved a Dividend per Section 124(6) of the Companies Act, 2013, the
Distribution Policy as per Securities and Exchange Company shall transfer all shares in respect of which the
Board of India (Listing Obligations and Disclosure unclaimed dividend has been transferred to IEPF. No
Requirements) Regulations, 2015. The Details of the claim will lie on Company on account of dividend after
policy is available on the website of the Company at the dividend is transferred to IEPF.
www.muthootfinance.com/policy/policy-investor and is
attached to this report as Annexure 1.

3. TRANSFER TO RESERVES Company believes that in the medium run it will lead to
Your Board of Directors has transferred an amount of more digitalization and will help in effective governance.
` 236 Crores to the Statutory Reserve maintained under
Section 45IC of the RBI Act, 1934. An amount of ` 482 5. COMPANY’S PERFORMANCE
Crores has been transferred to Debenture Redemption During the Financial Year, Company saw 46% increase
Reserve. Post transfer of profits to reserves and in its profitability with a net profit of ` 1,180 Crores for
distribution of dividend, your Board proposes to retain the year ended March 31, 2017 as compared to
` 1,056 Crores in the Profit and Loss Account. ` 810 Crores for the year ended March 31, 2016. Profit
before tax increased by 46% to `1,921 Crores. Total
4. ECONOMIC SCENARIO Income has increased from ` 4,875 Crores for the year
The Indian economy has weathered many challenges ended March 31, 2016 to ` 5,747 Crores for the year
successfully in recent times. Two important domestic ended March 31, 2017 which is mainly due to increase
policy developments in India: a constitutional in Interest Income of the Company. Interest income of
amendment making way for the Goods and Service the Company increased to ` 5,655 Crores from previous
Tax (GST) and withdrawal of the highest denomination year’s interest income of ` 4,813 Crores. Loan Portfolio
notes (` 500 and ` 1000) which intends to curb black of the Company increased by ` 2,899 Crores during
money and running of a parallel economy. the year reaching ` 27,278 crores as on March 31, 2017
as against ` 24,379 Crores as on March 31, 2016. The
Demonetisation is also very unusual in its monetary Return on Average Loan Assets increased to 4.47% in
consequences. It has reduced sharply, the supply of one FY 2016-17 as compared to 3.32% in FY 2015-16. The
type of money—cash—while increasing almost to the cost of funds declined to 8.69% compared to 9.25% in
same extent another type of money—demand deposits. fiscal 2015-16. Interest yield increased to 21.43% as
This also helped in increasing transactions through compared to 19.72% in FY 2015-16. On account of the
digital money. above, the Net Interest Margin improved to 12.74% as
against 10.47% in FY 2015-16. The Company remitted
With a slow start in 2016, the economic momentum to exchequer ` 804 crores as taxes.
recovered towards the middle of the year. While this
growth momentum was temporarily impacted with 6. RESOURCE MOBILIZATION
demonetization, the Indian economy appears to be (a) Non-Convertible Debentures:
recovering fast and will continue as one of the fastest Your Company successfully completed 15th
growing nations. Fixed investment rate in the and 16th Issue of Non-Convertible Debentures
economy has consistently declined in the past few years, through Public Issue during FY 2016-17 raising
more so the private investment. Raising the growth rate ` 1,832 Crores.
of the economy will to a great extent depend on quickly
reversing this downward trend in the investment. The Directors of your Company are thankful to all
economy is expected to grow by 7.7 per cent in the investors who have subscribed the debentures
current year. through Public Issue and shown their trust
towards your Company.
The Goods and Services Tax (GST) - constitution
amendment bill, passed by the government, effective Subordinated Debts represents long term source
from July 1st, 2017 showed a significant impact on the of funds for the Company and the amount
taxation structure in the country. The GST will create outstanding as on 31st March, 2017 was ` 1,912
a common Indian market, improve tax compliance Crores. It qualifies as Tier II capital under the
and governance, and boost investment and growth; Non-Banking Financial Company- Systemically
it is also a bold new experiment in the governance of Important Non- Deposit taking Company
India’s cooperative federalism. What will be critical is and Deposit taking Company (Reserve Bank)
the efficiency in relation to its implementation. Your Directions, 2016.

(b) Bank Finance: the ESOP scheme is implemented in accordance with

Bank Finance remains an important source of the applicable SEBI Guidelines/Regulations and is in
funding for your Company. Commercial Banks accordance with the resolution passed by the members
continued their support to your Company of the Company. The certificate would be placed at the
during Financial Year. As of 31st March, 2017, Annual General Meeting for inspection by members.
borrowings from banks were ` 9,202 Crores as
against ` 7,687 Crores in the previous year. The stock option schemes are in compliance with
Securities and Exchange Board of India (Share Based
7. EQUITY SHARE ISSUANCES Employee Benefits) Regulations, 2014 and there have
Employee Stock Options Schemes been no material changes to these plans during the
During the year, your Company has allotted 4,73,217 Financial Year 2016-17.
equity shares of face value of ` 10/- each under Muthoot
ESOP 2013 pursuant to exercise of 36,307 options of 8. CREDIT RATING
` 10/- each for Loyalty Options and 4,36,910 options Your Company’s debt instruments are rated by ICRA
of ` 50/- each for Growth Options by Employees of the and CRISIL, two of the leading Credit Rating Agencies
Company. in the country. In July 2016 CRISIL and in August 2016
ICRA upgraded your Company’s Long Term Debt rating
The disclosures as required under SEBI (Share Based from AA-/Stable to AA/Stable.
Employee Benefits) Regulations, 2014 read with SEBI
Circular CIR/CFD/POLICY CELL/2/2015 dated 16th The rating upgrade is a reflection of consistent
June 2015 is attached to this report as Annexure 2. The performance inspite of going through turbulent times
same disclosure is available at Company's website www. in the last four years as well as improvement in financial
muthootfinance.com/investors/disclosure-esop. Please performance. This upgrade is a recognition of the efforts
refer note 24(c) of Notes on Accounts in Standalone of ‘Team Muthoot’. We believe that, under AA category,
Financial Statements for further disclosures on ESOP. we enter a different league of credit rated companies.
The Company does not have any scheme to fund its We hope this upgrade will enable us to get finer rates
employees to purchase the shares of the Company. from financial institutions and banks enabling us to
reduce our cost of borrowings.
Your Company has received the certificate from the
Statutory Auditors of the Company certifying that
The Credit Ratings assigned to various instruments of the Company as of now are as follows:
Credit Rating Agency Instruments Ratings Limit in ` in Crores

CRISIL Commercial Paper CRISIL A1+ 4000
Subordinated Debts CRISIL AA/Stable 100
Non Convertible Debentures CRISIL AA/Stable 500
ICRA Commercial Paper ICRA A1+ 200
Short Term Bank Borrowings* ICRA A1+ 10,818
Long Term Bank Borrowings* ICRA AA/Stable 9,337
Subordinated Debts ICRA AA/Stable 100
Non Convertible Debentures ICRA AA/Stable 200
*subject to overall rating of ` 12,760 Crores for line of credit.

9. INTERNAL AUDIT AND FINANCIAL independence in its functioning and embodies best
CONTROL Corporate Governance standards.
In keeping with the size of the Company and its
business model, your Company has developed over Reference is invited to Note no. 34 to the standalone
the years, a proper, adequate and well documented financial statements contained in the annual report
internal audit and control system. The control system regarding frauds committed by employees of the
ensures that the Company’s assets are safeguarded Company. Company has taken or is in the process of
and protected. The audit system also takes care to see taking disciplinary / legal action against such employees.
that revenue leakages and losses to the Company are
prevented and our income streams are protected. The 10. HUMAN RESOURCES
control system enables reliable financial reporting . Your Company has always considered its employees as
an important resource of the Company and is aimed
A full fledged Audit and Inspection Department at providing employee satisfaction, enabling them to
has been set up to conduct timely and frequent deliver better results year over year.
internal audit to evaluate the adequacy of systems
and procedures and also to evaluate the status of As on March 31, 2017, the Company had 24,205
compliance to Company’s guidelines and other statutory employees in its rolls at various level of organizational
requirements. The department has on its rolls around structure. Your Company is always committed in
945 dedicated personnel who relentlessly safeguard the providing employees with ample opportunities to learn
safety of your Company’s assets, ensures the quality of and advance in career. In quest for having a satisfied
assets pledged and also evaluates the adequacy of risk work force, your Company focused on four major areas
management systems at its operating units. In keeping for employee engagement during the last financial year.
with the huge network and geographic outreach of the
operating units spread across the length and breadth of Rewards & Recognition
the country, the audit functions have been decentralized Based on performance of the employees, management
through setting up of Regional Audit offices in important has introduced new means of payouts and increased the
Regional centers. The Regional Audit Offices exercise percentage of payout for existing incentives. An ex-gratia
field level control over the branches through onsite payment along with Festival bonus, which is almost
visits and online audit systems. The field level Auditors equal to One month pay of employees at each grade
report to Regional Audit offices who in turn shares their were paid to employees. Management also took steps to
findings with the Audit & Inspection Department at the increase the payout of Incentive for Gold Loan Portfolio
Registered Office of the Company. Growth and for Interest Collection. The management is
also rewarding employees with foreign trips to exquisite
Under the present Audit Architecture, the Internal locations based on their achievement.
Auditor(s) at the Registered Office reports to the
Audit Committee regarding significant audit findings Training and Development
and also preventive and corrective measures to Your Company has offered multiple training programs to
protect the interests of the Company. The audit employees to help in their development. The programs
Committee undertakes an evaluation of the adequacy includes product/process related trainings, soft skill
and effectiveness of internal control systems. It also trainings, leadership trainings and certification trainings
oversees the implementation of audit recommendations for different group of employees. Training imparted
especially involving the risk management measures. through two premium training establishments of the
Company and 68 Regional Learning Centers, in the last
Apart from monitoring the internal control measures financial year was to the tune of 63,088 mandays.
adopted by the Audit department, the Committee
also imparts guidance and constructive suggestions for Promotions
improvement of the audit function in the Company. The Your Company has robust mechanism for identifying
Audit architecture now prevalent in the Company enjoys performers and has taken all steps to promote eligible
employees to the next level.

Performance Management Association with Indian Super League

Your Company had formulated a Performance Score Your Company continue its association with Indian
card method of performance assessment for all Super League (ISL) as the Official Referee Partner and
employees in the branch model. A pre-defined score Fair Play Award Sponsor. Your Company have always
card was used to capture performance of employees been in the forefront to promote sports and celebrate
on a quarterly basis and all related corrective measure sportsmanship. Association with Indian Super League
and fine tuning of performance was done using this has given the Muthoot brand an exposure to the young
method. The company also encouraged low performing Indian diaspora. As soccer is gaining popularity in India,
employees through well-defined performance growth an association like this has further helped your Company
programs. Use of Performance Score cards has helped in present its fair and trustworthy credentials as a financial
improving role clarity and objectiveness to performance supermarket with a business legacy of over 130 years.
assessment. Performance score is used as an important
parameter for deciding the Annual Increments of the Mission Lead Demonetization
employees. During the time of demonetization when customers
were struggling with problems precipitated by the
Your Company offers various other benefits to shortage of currency, your Company stepped up and
employees including Employee Stock Options and launched an initiative across North, East and West India
various Statutory and Non Statutory Staff Welfare that entailed meeting and interacting with people while
Measures. All eligible employees are covered under they were waiting in long serpentine queues. Objective
statutory provisions namely EPF, ESI, Maternity was to educate them on the various modes of financial
Benefits, Gratuity etc. Employees were enrolled under assistance that could be provided by Muthoot Finance
the National Pension System (NPS) with Company also across cash and cashless channels. These include various
making contribution along with their contribution . digital offerings like Muthoot WebPay, iMuthoot mobile
app, utilization of Muthoot Finance DCB VISA Card for
11. MAJOR MARKETING & PROMOTION availing gold loans directly on card, direct bank credits,
INITIATIVES use of POS machines for repayments, Aadhar enabled
Inbound Call Management System e-KYC. etc.
Your Company introduced the Inbound Call
Management System designed to bring down the 12. CAPITAL ADEQUACY
turnaround time while reaching out to customers. Your Company’s Capital Adequacy Ratio as of March 31,
This platform has enabled your Company to reach 2017 stood at 24.88% of the aggregate risk weighted
out to potential customers almost instantly. Once a assets on balance sheet and risk adjusted value of
customer observes our advertisement he/she attempts the off-balance sheet items, which is well above the
to contact Muthoot Finance by calling our Toll Free regulatory minimum of 15%. Out of the above, Tier
Number. He will be asked to feed the pincode of his I capital adequacy ratio stood at 21.78% and Tier II
location and thereafter he is directly connected to the capital adequacy ratio stood at 3.10%.
nearest Muthoot Finance branch . This prompt response
mechanism has helped your Company to upgrade its 13. PUBLIC DEPOSITS
customer service levels. The Company is a Systemically Important Non-Deposit
Taking NBFC and hence has not accepted any public
Introduction of state-of-the-art CRM deposits.
Your Company launched the State of the art CRM
Software in pan India. This has enabled to understand 14. RBI GUIDELINES
and profile our customers better and deliver increased Your Company has complied with all the applicable
value to them. This new system will help us evolve regulations prescribed by the Reserve Bank of India
better schemes and products tailor-made for different from time to time. Please refer note 41 and 42 of Notes
customer groups. on Accounts in Standalone Financial Statements for
additional disclosures required under RBI Guidelines
applicable to the Company.

15. SUBSIDIARIES/ ASSOCIATES/ JOINT Financial Performance & position of

VENTURES Subsidiaries
As on March 31, 2017 your Company has four a. Asia Asset Finance PLC:
subsidiaries namely M/s. Asia Asset Finance PLC, Asia Asset Finance PLC, (AAF), a Company listed
M/s. Muthoot Homefin (India) Limited, M/s. Muthoot in Colombo Stock Exchange, is a subsidiary
Insurance Brokers Private Limited and M/s. Belstar of your Company from December 31, 2014.
Investment and Finance Private Limited. Your Company increased its shareholding in Asia Asset
Company’s subsidiaries have considerably contributed Finance PLC from 59.70% to 60% during the
to the overall growth of your Company during the year. year. AAF is a registered Financial Company with
As per Section 136 of the Companies Act, 2013 the Central Bank of Sri Lanka and is mainly engaged
audited financial statements, including the consolidated in Vehicle Finance and Hire Purchase Activities.
financial statements of your Company and the audited The Company also started business relating to
accounts of each of its subsidiaries are available on the lending against collateral of gold jewellery and
website of the Company at www.muthootfinance.com/ micro finance and is presently contributing a
corporate/our_subsidary. The above documents will also significant part of loan portfolio and income. AAF
be available for inspection at the Registered Office of the has operations across Sri Lanka with 15 branches
Company during business hours. as on March 31, 2017. AAF has made considerable
progress in its business. Its major financial
The Board of Directors of your Company has formulated parameters for Financial Year 2016-17 are as
a policy on material subsidiary, which is displayed on the follows:
web site of the Company at www.muthootfinance.com/
policy/policy-investor.
Total Profit Before Profit After Total Outside

Parameters Shareholder’s Funds Total Assets
Income Taxation Taxation Liabilities
Amount in ` (in Crores)LKR/`
as on 31.03.2017–0.42621
97* 14* 13* 74 444 370
/ Average Exchange Rate
-0.45423*
Amounts in LKR (in crores) 213 31 28 174 1003 829
The total income of AAF has increased by 48% b. Muthoot Homefin (India) Ltd:
at ` 97crs, which has contributed to the overall M/s. Muthoot Homefin (India) Ltd (MHIL), a
improvement of its profitability by 51% reaching registered Housing Finance Company licensed
`13crs. Its asset base grew by 25% reaching by National Housing Bank is a subsidiary of your
`444crs. Directors of your Company are hopeful Company. During the Financial Year 2016-17,
that AAF will be showing continuous growth in your Company increased its shareholding in MHIL
the coming years and will contribute significantly by acquiring 26,700,000 shares for a consideration
to consolidated profit of your Company. of ` 30Crores. Post-acquisition your Company
holds 88.27% of the equity capital of MHIL.
Its major financial parameters for Financial Year
2016-17 are as follows:

Amount in ` (in Crores) 24 5 3 88 450 362

During the year, its loan portfolio increased by c. Muthoot Insurance Brokers Private Limited:
` 409crs at ` 441crs. Total revenue for FY17 stood Muthoot Insurance Brokers Private Limited
at ` 24crs as against previous year total revenue of (MIBPL), is an unlisted Private Limited Company
`2crs. It achieved a profit after tax of ` 3crs during holding a license to act as Direct Broker from
FY17 as against previous year profit after tax of Insurance Regulatory and Development
`0.01crs. We believe that housing finance sector Authority of India (IRDA) since 2013. During
is the next best secured lending opportunity after the Financial Year 2016-17, your Company
gold loan and with the central government making acquired 100% equity shares of MIBPL from the
a major push for affordable housing , we expect existing shareholders for a consideration of ` 20
your Subsidiary Company to tap this opportunity Crores. Post-acquisition MIBPL is a Wholly-
in the coming years and to contribute significantly Owned Subsidiary Company. Its major financial
to the consolidated profit of your Company. parameters for Financial Year 2016-17 are as
follows:

MIBPL generated a First year premium collection During the Financial Year 2016-17, your Company
amounting to ` 70crs during FY17 as against ` acquired 15,017,459 equity shares of BIFPL,
49 Crores during previous year. Its total revenue by investing ` 63 Crores. Post-acquisition your
increased by 16% at `12crs as against previous Company holds 64.60% of the equity capital
year. Its profit after tax increased by 18% at `6crs of BIFPL thus making it a Subsidiary Company.
as against previous year. Its major financial parameters for Financial Year
2016-17 are as follows:
d. Belstar Investment and Finance Private
Limited:
M/s. Belstar Investment and Finance Private
Limited (BIFPL) is a micro finance Company.

During the year, its loan portfolio grew by 115% There are no other Companies which have
at ` 567crs. It achieved a profit after tax of `10crs become or ceased to be Subsidiaries/ Associates/
during the year as against previous year profit Joint Ventures of the Company during the
after tax of `6crs. Its Gross and Net NPA stood at Financial Year 2016-17.
0.09% and 0.02% respectively as on March 31,
2017. 16. PARTICULARS OF LOANS,
GUARANTEES OR INVESTMENTS
The statement containing the salient features UNDER SECTION 186 OF THE
of the financial statement of your Company’s COMPANIES ACT, 2013
Subsidiaries is attached as Annexure – A to Pursuant to Section 186(11)(a) of the Companies Act,
Standalone Financial Statements of the Company 2013 (the ‘Act’) read with Rule 11(2) of the Companies
as required under Rule 5 of The Companies (Meetings of Board and its Powers) Rules, 2014, the
(Accounts) Rules, 2014. loan made, guarantee given or security provided in the

ordinary course of business by a Non- Banking Financial The Risk Management Committee Comprises of:
Company (NBFC) registered with Reserve Bank of
India are exempt from the applicability of provisions of Designation in the Nature of
Name of the Director
Section 186 of the Act. As such the particulars of loans Committee Directorship
and guarantee have not been disclosed in this Report. Independent
K. George John Chairman
Director
The details of the Current Investments and Non-
Independent
Current Investments of the Company are furnished Justice K John Mathew Member
Director
under Note no. 10 forming part of the Standalone Whole- time
George Jacob Muthoot Member
Financial Statements for the year ended March 31, Director
2017.
Risk Management Department periodically places its
17. EXTRACT OF ANNUAL RETURN report on risk management to the Risk Management and
Extract of Annual Return as required under Companies Audit Committee of the Board of Directors. During the
Act, 2013 is annexed as Annexure 3. year, your Company has incorporated various practices
and suggestion as directed by the Risk Management
18. CONSOLIDATED FINANCIAL and Audit Committee which helped the Company in
STATEMENTS attaining an improved vigilance and security system,
The audited consolidated financial statements of the improved security of gold jewellery and cash, improved
Company along with its subsidiaries AAF, MHIL, BIFPL system of grading of branches, Regional Offices etc.
and MIBPL prepared in accordance with the Generally IT based risk management initiatives are discussed in
Accepted Accounting Principles in India (Indian GAAP) section related to ‘Technology Absorption’ in this report
to comply with the Accounting Standards specified of Board of Directors.
under Section 133 of the Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014 20. CORPORATE SOCIAL RESPONSIBILITY
and the relevant provisions of the Companies Act, 2013 As per Section 135 of Companies Act, 2013, your Board
is provided in the Annual Report. has constituted a Corporate Social Responsibility (CSR)
committee to support the Company in achieving the
19. RISK MANAGEMENT AND RISK CSR objectives of the Company. The CSR committee of
MANAGEMENT POLICY the Board of Directors comprises of the following:
Your Company has a Board approved Integrated Risk
Management Policy which has laid down a framework Designation in the Nature of
for identifying, assessing, measuring various elements Committee Directorship
of risk involved in the business and formulation of Independent
K. George John Chairman
Director
procedures and systems for mitigating such risks.
Independent
During the Financial Year, your Directors have approved John K. Paul Member
Director
the updated Risk Management Framework of the George Alexander
Member Managing Director
Company which has incorporated various new practices Muthoot
and risk control measures.
The Company’s CSR policy is committed towards CSR
Risk Management Committee of the Board of Directors activities as envisaged in Schedule VII of the Companies
of your Company constituted in accordance with Act, 2013. The Details of CSR policy of the Company
the Reserve Bank of India guidelines has overall are available on the website of the Company at www.
responsibility for overseeing the Risk Management muthootfinance.com/policy/policy-investor. The Annual
activities of the Company, approving measurement Report on CSR activities as required under Companies
methodologies and appropriate risk management (Corporate Social Responsibility Policy) Rules, 2014 is
procedures across the organization. attached to this report as Annexure 4.

In terms of Section 135 of the Companies Act, 2013 party transactions as required under Section 134(3)
read with Companies (Corporate Social Responsibility) (h) of the Companies Act, 2013 in Form AOC 2 is not
Rules, 2014 as amended (“CSR Rules”) and in applicable to your Company.
accordance with CSR Policy, during the year, the
Company has spent ` 15 crores towards CSR projects/ The details of related party and transactions with the
programs. related parties as required under chapter IV of SEBI
(Listing Obligations and Disclosure Requirements)
21. BUSINESS RESPONSIBILITY REPORT Regulations, 2015 appears on the Note no. 32 of
The Securities and Exchange Board of India (Listing the Notes to Accounts of the Standalone Financial
Obligations and Disclosures Requirements) Regulations, Statements of the Company.
2015 mandates the inclusion of the Business
Responsibility Report (BRR) as part of the Annual 23. AUDIT COMMITTEE
Report for top 500 listed entities based on their market The Audit Committee of our Board was reconstituted
capitalization. The BRR is attached to this report as vide board resolution dated May 26, 2014 pursuant
Annexure 5. to Section 177 of the Companies Act 2013. The Audit
Committee comprises of:
22. PARTICULARS OF CONTRACTS
Designation in the Nature of
OR ARRANGEMENTS MADE WITH Name of the Director
Committee Directorship
RELATED PARTIES Independent
George Joseph Chairman
The Board of Directors of your Company has formulated Director
a policy on related party transactions, which is Independent
John K. Paul Member
displayed on the web site of the Company at www. Director
George Alexander
muthootfinance.com/policy/policy-investor. This policy Member Managing Director
Muthoot
deals with review of the related party transactions and
regulates all transactions between the Company and its
Related Parties. All recommendations of Audit Committee are accepted
by your Board and details on Audit committee appear on
Prior omnibus approval is obtained for related party the report on Corporate Governance.
transactions which are of repetitive nature and entered
in the ordinary course of business and at arm’s length. 24. VIGIL MECHANISM
All related party transactions are placed before the Audit To conduct affairs of your Company and its various
Committee for review and approval. constituents in a fair and transparent manner and as part
of Vigil Mechanism, and providing whistle blowers a safe
All transactions or arrangements with related parties and reliable way of sharing information, your Company
referred to in Section 188 (1) of the Act, entered into has formulated a Whistle Blower Policy in compliance
during the year were on arm’s length basis or were in with Companies Act, 2013 and SEBI (Listing Obligations
ordinary course of business or with approval of the and Disclosure Requirements) Regulations, 2015. There
Audit Committee. is graded reporting structure under the Policy and also
provides provision for direct access to Chairman of Audit
During the year, your Company had not entered into any Committee. The whistle blower policy is available at
contract / arrangement / transaction with related parties website of the Company at www.muthootfinance.com/
which could be considered material in accordance with policy/policy-investors.
the policy of the Company on materiality of related
party transactions. Further, there were no material 25. LISTING
related party transactions which required approval of Equity Shares of your Company are listed on NSE India
shareholders as required under Chapter IV of SEBI Ltd and BSE Ltd. Your Company has paid required
(Listing Obligations and Disclosure Requirements) listing fees to Stock Exchanges.
Regulations, 2015. Accordingly, the disclosure of related

26. CHANGES IN DIRECTORS AND KEY Drugs and Pharmaceuticals Ltd. Your Board believes his
MANAGERIAL PERSONNEL appointment will benefit the Company through his role
The term of Mr. John K Mathew as Independent as Independent Director.
Director is expiring at the ensuing 20th Annual General
Meeting and hence he is retiring at the Annual General After evaluating the eligibility criteria under Reserve
Meeting this year. Bank of India guidelines, Companies Act, 2013 and
SEBI LODR Regulations 2015, your Board recommends
Mr. George Joseph, Mr. K George John, and Mr. John appointment of Mr. Jacob Benjamin Koshy, Mr. Pratip
K Paul were appointed as Independent Directors and Chaudhuri and Mr. Jose Mathew as Independent
hence shall not be liable to retire by rotation. Directors of the Company. Detailed profile of proposed
Directors as required under SEBI LODR is annexed to
Term of Ms. Pamela Anna Mathew as Independent the notice calling Annual General Meeting of members
Director is expiring at the ensuing 20th Annual General of the Company.
Meeting and Board recommends her re-appointment as
Independent Director for a further period of three years. 27. MEETING OF THE BOARD
During the Financial Year 2016-17, your Board of
Mr. George Jacob Muthoot, Whole- time Director Directors met seven times on 12.04.2016, 27.05.2016,
and Mr. Alexander M George, Whole Time Director of 28.07.2016, 23.08.2016, 11.11.2016, 13.02.2017 and
the Company retire by rotation at the ensuing Annual 23.03.2017.
General Meeting and being eligible, offer themselves for
reappointment. 28. DECLARATION FROM INDEPENDENT
DIRECTORS
On recommendation of Nomination and Remuneration The Independent Directors have submitted disclosure
committee, your Board has considered induction of that they meet the criteria of independence as provided
three new directors - Mr. Jacob Benjamin Koshy, Mr. under Section 149(6) of Companies Act, 2013 and
Pratip Chaudhuri and Mr. Jose Mathew in the Board as SEBI Regulations. A statement by Managing Director
Independent Directors to be appointed by members in confirming receipt of this declaration from Independent
the ensuing 20th Annual General Meeting. Directors is annexed to this report as Annexure 6.
Mr. Jacob Benjamin Koshy is the retired Chief Justice 29. POLICY ON APPOINTMENT AND
of Patna High Court. He also served as the Acting REMUNERATION OF DIRECTORS
Chief Justice Of High Court Of Kerala. He was also AND PERFORMANCE EVALUATION
the Chairman of the Kerala State Human Rights OF BOARD, COMMITTEES AND
Commission. Your Board believes that his appointment DIRECTORS
will benefit your Company through his role as a) Policy on Appointment and
Independent Director. Remuneration Of Directors
Board of Directors of your Company,
Mr. Pratip Chaudhuri is the former Chairman of State on recommendation of Nomination and
Bank of India. He held several important positions Remuneration Committee, has formulated a policy
during his 38 years career in SBI. Your Board believes for selection, appointment and remuneration of
his appointment will benefit the Company through his the directors, senior management personnel as
role as Independent Director. required under Section 178(3) of Companies Act,
2013. Details of the said Policy is annexed to this
Mr. Jose Mathew is a Chartered Accountant by report as Annexure 7.
profession and is also a distinguished entrepreneur in
the field of Tourism. He has served in various capacities The Nomination and Remuneration Committee
like General Manager of Kerala State Industrial which was reconstituted on January 28, 2016
Enterprises and Managing Director of Kerala State comprises of the following directors:

Designation in the Nature of and the individual directors. The Board carried
Committee Directorship out annual evaluation of its own performance,
Independent its Committees and individual Directors based
John K Paul Chairman
Director
on criteria and framework adopted by the Board
Independent
Kariath George John Member and in accordance with existing regulations. The
Director
Independent details of training, appointment, resignation and
K John Mathew Member
Director retirement of Directors, if any, are dealt with in the
report of Corporate Governance. Brief details of
Terms of reference of the Nomination and Remuneration profile of each Director appear in Annual Report of
Committee include the following: the Company.
● Identifying persons who are qualified to become c) Independent Directors Meeting

Directors and who may be appointed in Senior During the year, a meeting of Independent
Management in accordance with Criteria as laid down Directors was held as required under Companies
and recommend to Board their appointment and Act, 2013 and in Compliance with requirement
removal. under Schedule IV of the Act and as per
requirements of SEBI (Listing Obligations and
● Review and carry out every Director’s performance, Disclosure Requirements) Regulations, 2015 and
the structure, size and composition including discussed matters specified therein.
skills, knowledge and experience required of the
Board compared to its current position and make 30. CORPORATE GOVERNANCE REPORT
recommendations to the Board with regard to any Your Company has complied with the Corporate
changes; Governance norms as stipulated in Chapter IV of SEBI
(Listing Obligations and Disclosure Requirements)
● Determine and agree with the Board the framework for Regulations, 2015. As per Regulation 34 of SEBI (Listing
broad policy for criteria for determining qualifications, Obligations and Disclosure Requirements) Regulations,
positive attitudes and independence of a director 2015, the Detailed report on Corporate Governance is
and recommend to the Board a policy, relating to attached to this Report as Annexure 8.
remuneration for the Directors, Key Managerial
Personnel and other employees. 31. MANAGEMENT DISCUSSION AND
ANALYSIS STATEMENT
● Review the on-going appropriateness and relevance of Management Discussion and Analysis on the business of
the remuneration policy. the Company is attached to this Report as Annexure 9.
● Ensure that all provisions regarding disclosure of 32. CONSERVATION OF ENERGY,

remuneration and Remuneration Policy as required TECHNOLOGY ABSORPTION, FOREIGN
under the Companies Act, 2013 or such other acts, EXCHANGE EARNINGS AND OUTGO:
rules, regulations or guidelines are complied with. The information pursuant to Section 134(3)(m) of
the Companies Act, 2013 read with the Companies
● To administrate Employee Stock Options of the (Accounts) Rules, 2014 is as follows:
Company.
a) Conservation of energy
b) Performance evaluation of Board, Your Company being a Non-Banking Finance
Committees and Directors Company, its activities are not energy intensive.
The SEBI (Listing Obligations and Disclosures However, your Company has taken adequate
Requirements) Regulations, 2015 and the measures for conservation of energy and usage of
Companies Act, 2013 require the evaluation of alternative source of energy, wherever required.
the performance of the Board, its Committees

b) Technology Absorption bank account and has facility to repay through online.
Your Company being a Non-Banking Finance The loan is disbursed on the basis of the value of gold
Company, its activities do not require adoption of already pledged at the branch.
any specific technology. However, your Company
has been in the forefront in implementing Aadhaar-based Electronic KYC
latest information technologies & tools towards The Company being an approved KYC User Agency
enhancing our customer convenience. (KUA) by UIDAI, it can accept customer Aadhaar
number and complete KYC verification with Customer
Few of the initiatives taken by the company fingerprint image with high security . This e-KYC facility
are as follows: available across the Branches is found convenient to
Core Banking Solution(CBS) customers and helps us in ensuring the authenticity of
The in-house developed and maintained core banking the KYC data and effective risk management. Presently
solution(CBS) has been providing very high(99.99%) around 86% of New KYCs are through e-KYC.
uptime which handles the transactions processing, back
office and MIS for the Company’s entire branches and Mobile App iMuthoot
offices. The CBS has been continually updated so as to We have developed and implemented a new Mobile
meet the varied business changes as also to comply with Application in Android & iOS and enabled transactions
the operational and control requirements. through the convenient channel for customers. Multiple
local language option also has been made available.
The critical CBS system is collocated at the high Presently the Interest payment, availing Gold loans
availability ITI-Trimax data center in Bangalore. The online, Live Chat with Support Desk & Helpline, Google
disaster recovery(DR) systems are set up in Infopark, Maps to locate nearest branch & Book Appointment
Kochi so as to ensure business continuity in case of a with branch are made available in iMuthoot.
major disaster in Data Centre.
CRM System
Online Payment Channel for Customers The Company has implemented a functionally rich,
As one of our digital initiative, the online facility for highly scalable CRM solution across its Branches and
payment of Interest and principal has been widely offices. The CRM is tightly integrated with the core
accepted by the customers. This has immensely helped banking solution(CBS). APIs are used for integrating
the company and the customers during the post- CRM with the different business applications running in
demonitisation period. The online channel has become the Group.
very popular among the customers due to its availability
anywhere, on a 24 by 7 basis. With the 360-degree view of the customers provided
by the CRM, we can manage their relationship more
Customers can use any of the multiple options for effectively. Also it is expected to help us in cross selling
payment such as Debit card, Direct debit through online and upselling the various products & services offered by
banking, Prepaid cards, Mobile wallets, UPI, etc. Also the business divisions in the Group.
POS machines are enabled in our Branches to enable
our customers do cashless transactions. For loan amount Auto Debit for EMI Products
payout to customer bank accounts, we have enabled Enabled NPCI’s automated debiting system of Gold
IMT, RTGS, NEFT, IMPS. Loan installment scheme. This channels electronic
transactions which are repetitive and periodic in nature
Online Gold Loan (OGL) with a robust, secure and scalable are provided to
Online Gold Loan is a convenient product launched customers on transaction updates. It is highly flexible
to meet the urgent loan requirement of a customer and convenient to customers platform with end-to-end
who can avail of the same anytime, anywhere. The transaction processing capabilities.
loan amount will be directly credited to the customer’s

API Integrations The Company has received a certificate from

We have developed a strong API integration platform the above Auditors to the effect that if they are
and integrated more than 100 + APIs for banking appointed, it shall be in accordance with the
segments, money transfer, insurance providers and provisions of Section 141 of the Companies Act,
other external partners. This has taken care of multiple 2013.
transaction concurrency and meets the needs of systems
integration for other Divisions of the company. The Report given by M/s Rangamani & Co.,
Statutory Auditors on the financial statement
CCTV Surveillance System of the Company for the year 2016-17 is part of
The solution enables live streaming of visuals from the Annual Report. The Board place on record
cameras installed at branches and offices from ROs/ its appreciation for the services rendered by M/s
HO. It provides a 360 degree dashboard on the data and Rangamani & Co., as the Auditors of the Company.
KPIs of health of surveillance devices. Facilitates close
monitoring of working status of surveillance devices and b) Secretarial Audit under Section 204
has instant data recording facility and playback options. The Board had appointed M/s KSR & Co.,
Company Secretaries LLP, Coimbatore to conduct
c) Total Foreign Exchange Earned : NIL Secretarial Audit for the Financial Year 2016-17.
Total Foreign Exchange Used : ` 0.10 Crores The Secretarial Audit report is annexed to this
report as Annexure 10.
33. AUDITS
a) Statutory Audit under section 139 c) Explanations or comments by the
As per Section 139 of the Companies Act, 2013 Board on qualification, reservation or
read with Companies (Audit and Auditors) Rules, adverse remark or disclaimer on audits
2014, the term of the Company’s auditors M/s for financial year 2016-17
Rangamani & Co. (Firm Reg No. 003050 S), There are no qualifications, reservation or adverse
Chartered Accountants, Alleppey as Statutory remark or disclaimer on audits under Section
Auditors of the Company expires at the conclusion 139 and Section 204 of Companies Act, 2013 for
of the ensuing 20th Annual General Meeting of financial year 2016-17.
the Company and hence will be retiring at the
Annual General Meeting. 34. REPORTING ON SEXUAL HARASSMENT
OF WOMEN AT WORKPLACE
The Board of Directors of the Company at its (PREVENTION, PROHIBITION AND
meeting held on 08th August, 2017, based on the REDRESSAL) ACT, 2013
recommendation of the Audit Committee, have The Internal Complaints Committee constituted by your
recommended for appointment of M/s. Varma & Company under the Sexual Harassment of Women at
Varma, Chartered Accountants, Kochi (Firm Reg Workplace (Prevention, Prohibition and Redressal) Act
No. 004532 S) as the Auditors of the Company by 2013 looks into the complaints of aggrieved women
the Members at the 20th Annual General Meeting employees, if any, and is instrumental in:
of the Company for a term of 5 consecutive years.
Accordingly, a resolution proposing appointment • promoting gender equality and justice and the
of M/s Varma & Varma as the Auditors of the universally recognized human right to work with
Company for a term of five year from the dignity
conclusion of 20th Annual General Meeting till
the conclusion of 25th Annual General Meeting • prevention of sexual harassment of women at the
pursuant to Section 139 of the Companies Act, workplace
2013, forms part of the Notice of the 20th Annual
General Meeting of the Company. There were 8 reported cases of sexual harassment,
wherein lady officials had complained against
harassment by their senior official in their Branch/

Region. Action taken was prompt following investigation judgments and estimates that are reasonable and
by the Internal Complaints Committee. Evidence prudent so as to give a true and fair view of the
was examined and the erring officials were heard. On state of affairs of the company at the end of the
finding truth in the complaints, a Report was sent to financial year and of the profit and loss of the
HRD Department. Disciplinary action was initiated company for that period;
based on the Report, against the officials concerned and
disciplinary procedures were completed speedily. (c) the directors had taken proper and sufficient
care for the maintenance of adequate accounting
35. PERSONNEL records in accordance with the provisions of this
The Disclosure required under the provisions of Section Act for safeguarding the assets of the company
197 of the Companies Act, 2013 read with Rule 5 (1) and for preventing and detecting fraud and other
and Rule 5(2) of the Companies (Appointment and irregularities;
Remuneration of Managerial Personnel) Rules, 2014 is
annexed to this report as Annexure 11. (d) the directors had prepared the annual accounts on
a going concern basis;
36. SIGNIFICANT AND MATERIAL ORDERS
PASSED BY REGULATORS OR COURTS (e) the directors had laid down internal financial
OR TRIBUNALS controls to be followed by the company and that
There are no significant and material orders passed such internal financial controls are adequate and
by the regulators or courts or tribunals, which would were operating effectively.
impact the going concern status of your Company and
its future operations. (f) the directors had devised proper systems to
ensure compliance with the provisions of all
37. MATERIAL CHANGES AND applicable laws and that such systems were
COMMITMENTS AFFECTING THE adequate and operating effectively.
FINANCIAL POSITION OF THE
COMPANY BETWEEN THE END OF 39. DISCLOSURE PURSUANT TO PART A
THE FINANCIAL YEAR TO WHICH OF SCHEDULE V OF SEBI LODR
FINANCIAL STATEMENTS RELATE AND Disclosure pursuant to Part A of Schedule V read with
THE DATE OF THE REPORT Regulation 34(3) and 53(f) of SEBI is attached as
No material changes and commitments affecting the Annexure 12 of this report.
financial position of your Company occurred between
the end of the financial year to which this financial 40. ACKNOWLEDGEMENT
statements relate and the date of this report. Your Directors thank the Company’s stakeholders in
large including investors, customers, banks, financial
38. DIRECTORS’ RESPONSIBILITY institutions, rating agencies, debenture holders,
STATEMENT debenture trustees and well-wishers for their continued
In accordance with the provisions of Section 134(5) support during the year. Your Directors place on record
of the Companies Act, 2013 with regard to Director’s their appreciation of the contribution made by the
Responsibility Statement, Directors state that:— employees of your Company and its subsidiaries at all
levels. Your Company’s consistent growth was made
(a) in the preparation of the annual accounts, the possible by their hard work, solidarity, cooperation and
applicable accounting standards had been followed support. The Board sincerely expresses its gratitude to
along with proper explanation relating to material Reserve Bank of India, Securities and Exchange Board of
departures; India and Ministry of Corporate Affairs for the guidance
and support received from them including officials there
(b) the directors had selected such accounting at from time to time.
policies and applied them consistently and made

41. FORWARD LOOKING STATEMENTS

This Report(s) contains certain forward looking
statements within the provisions of Listing agreements
and hence reasonable caution is to be exercised by
stakeholders while relying on these statements.
For and On Behalf of the Board of Directors
M G George Muthoot George Alexander Muthoot

Chairman Managing Director
Kochi,
08th August, 2017
Registered Office:
2nd Floor, Muthoot Chambers,
Opposite Saritha Theatre Complex,
Banerji Road,
Kochi – 682 018

Annexure- 1
MUTHOOT FINANCE LTD

Policy for Distribution of Dividends
[Pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]
The Policy for Distribution of Dividends shall come into effect 2. Dividends shall generally be declared out of the
from the date it is approved by the Board of Directors. Standalone Profit After Tax of the Company relating to
the current financial year, subject to any other regulatory
The Policy is being framed in compliance with the provisions that may be introduced from time to time.
requirement stipulated under Regulation 43A of the SEBI The consolidated performance will be not considered for
(Listing Obligations and Disclosure Requirements) Regulations, declaration or recommendation of dividend.
2015 (Listing Regulations) for distribution of dividends, based
on the following parameters: 3. The Board will generally endeavour to maintain an even
dividend per share every year but this shall be subject
OBJECTIVE to review by Board on various parameters including
This Policy intents to create a framework for deciding financial parameters at the time of declaration or
distribution of profits created by the Company as dividend to recommendation of dividend.
its equity shareholders.
INTERNAL AND EXTERNAL FACTORS TO
TIMING OF DIVIDEND DECLARATION BE CONSIDERED FOR DECLARATION OF
The Board of Directors may declare one or more interim DIVIDEND
dividends any time during the financial year. The Board The factors, internal and external, to be considered by the
may recommend final dividend after approval of the audited Board, for determining the declaration of dividend, will
financial statements by the Board and will be paid after include the following:
approval of shareholders in the Annual General Meeting.
Board will consider Financial and other parameters stated a) Internal Factors
in the policy for declaring both interim dividend and also for • Business growth
recommending final dividend.
• Yield on Loans
FINANCIAL PARAMETERS TO BE • Cost of Borrowing

CONSIDERED WHILE DECLARING • Operating Expenses
DIVIDEND
1. The Board of Directors may declare dividend after • Quality of assets and NPA
considering various financial parameters. Financial • Profitability of the Company
parameter will include but not limited to profit for the
period, availability and need of liquidity in the Company, • Asset-Liability Management Position
Capital to Risk Assets Ratio, Leverage ratio , Net Interest • Ability to raise or availability of Debt capital
Margin , Operating Expenses Ratio , Return on Assets ,
requirement of maintaining reserves including statutory • Future fund requirements in business
reserves prescribed by various regulators such as • Carried forward balance in P & L account
Debenture redemption reserve, fund requirement for
future expansion etc. • Accumulated reserves

Annexure- 1
b) External Factors i) Business Growth ;

• Macro-economic environment
ii) Capital expenditure;
• Overall retail credit growth in the economy.
iii) Working capital requirements;
• Liquidity position in the economy
iv) Acquisition of businesses/entities including new
• Performance and Outlook of the Gold Loan sector lines of business
• Monetary policy of Reserve Bank Of India v) Declaration of dividend
• Changes in government policies vi) Buyback of shares
• Regulatory changes vii) Issue of Bonus Shares
• Change in tax structure applicable on dividend viii) Investment in new lines of business
both for the Company as well as Shareholders.
ix) Repayment of debt;
CIRCUMSTANCES UNDER WHICH THE x) Meeting contingency plans; and
SHAREHOLDERS OF THE COMPANY MAY
OR MAY NOT EXPECT DIVIDENDS xi) Any other purpose as may be permitted by law
Shareholders of the Company may not expect declaration of
dividend in below mentioned circumstances- PARAMETERS TO BE ADOPTED WITH
REGARD TO VARIOUS CLASSES OF SHARES
i) Expectation of growth opportunity in the existing Company has only one class of equity shares and hence there
business and capital is required to be conserved will be no differential treatment in dividend.
for meeting the growth
REVIEW
ii) In the event of an opportunity for acquisition The Board shall have right to modify or amend any or all of
and/or strategic investment in existing lines of the clauses of this policy in accordance with the provisions of
business or new business where company may be the applicable laws. In case of any change in applicable laws
required to allocate capital which make any of the clauses or provisions of this policy
inconsistent with changes then such changes will prevail over
iii) In the event of requirement of working capital in this policy and policy shall deemed to be amended accordingly
business from the date of effect of change in applicable laws.
iv) In the event of inadequacy of cashflow available DISCLOSURES

for distribution of dividend The Company shall make necessary disclosures in compliance
with the provisions of the Listing Regulations, in particular
v) In the event of absence or inadequacy of profits disclosures required in Annual Report and website of the
Company.
POLICY GUIDELINES ON UTILIZATION OF
THE RETAINED EARNINGS In case, Company proposes to declare dividend on the basis
The retained earnings of the Company may be used, inter alia, of parameters in addition those specified under this policy
for one or more of the following purposes: or proposes to change such additional parameters, it shall
disclose such changes along with rationale for the same in its
annual report and on its website.

DISCLOSURE PURSUANT TO THE PROVISIONS OF SECURITIES AND EXCHANGE BOARD OF INDIA (SHARE
BASED EMPLOYEE BENEFITS) REGULATIONS, 2014 AS AT MARCH 31, 2017.
ESOP 2013
ESOP 2013 - Tranche 1 ESOP 2013 - Tranche 2 ESOP 2013 - Tranche 4
Particulars - Tranche 3
Loyalty Grant A Grant B Loyalty Grant A Grant B Grant A Loyalty Grant A Grant B
Date of
1 shareholder’s 27.09.2013 27.09.2013 27.09.2013 27.09.2013 27.09.2013 27.09.2013 27.09.2013 27.09.2013 27.09.2013 27.09.2013
approval
Annexure- 2
Number of options
2 1,571,075 3,711,200 1,706,700 6,100 456,000 380,900 325,000 8,150 390,400 728,300
granted
3 Exercise price (`) 10/- 50/- 50/- 10/- 50/- 50/- 50/- 10/- 50/- 50/-
4 Source of shares Primary Primary Primary Primary Primary Primary Primary Primary Primary Primary
5 Vesting period 1-2 years 1-5 years 2-6 years 1-2 years 1-5 years 2-6 years 1-5 years 1-2 years 1-5 years 2-6 years
In a graded In a graded In a graded
manner over manner over manner over
In a graded In a graded In a graded In a graded In a graded In a graded In a graded
a 2 year a 2 year a 2 year
manner over manner over manner over manner over manner over manner over manner over
period with period with period with
a 5 year a 6 year a 5 year a 6 year a 6 year a 5 year a 6 year
50% vesting 50% vesting 50% vesting
period with period with period with period with period with period with period with
at the end of at the end of at the end of
10%, 15%, 10%, 15%, 10%, 15%, 10%, 15%, 10%, 15%, 10%, 15%, 10%, 15%,
12 months 12 months 12 months
20%, 25% 20%, 25% 20%, 25% 20%, 25% 20%, 25% 20%, 25% 20%, 25%
from the from the from the
and 30% of and 30% of and 30% of and 30% of and 30% of and 30% of and 30% of
Vesting date of grant date of grant date of grant
6 the grants the grants the grants the grants the grants the grants the grants
requirements and the and the and the
vesting in vesting in vesting in vesting in vesting in vesting in vesting in
remaining remaining remaining
each year each year each year each year each year each year each year
50% of 50% of 50% of
commencing commencing commencing commencing commencing commencing commencing
Corporate Overview
the grants the grants the grants

from the end from the end from the end from the end from the end from the end from the end
vesting at vesting at vesting at
of 12 months of 24 months of 12 months of 24 months of 24 months of 12 months of 24 months
the end of 24 the end of 24 the end of 24
from the date from the from the from the from the from the from the
months from months from months from
of grant date of grant date of grant date of grant date of grant date of grant date of grant
the date of the date of the date of
grant grant grant
Statutory Reports
Annual Report 2016-17

47
ESOP 2013
ESOP 2013 - Tranche 1 ESOP 2013 - Tranche 2 ESOP 2013 - Tranche 4
Particulars - Tranche 3
48
Loyalty Grant A Grant B Loyalty Grant A Grant B Grant A Loyalty Grant A Grant B
Options
outstanding at the
7 80,666 1,880,500 8,21,430 2,262 345,630 2,36,800 2,92,500 - - -
beginning of the
year
Options granted
8 - - - - - - - 8,150 390,400 728,300
Annexure- 2
during the year

Options exercised
9 34,295 321,115 47,940 2,012 45,655 4,600 17,600 - - -
during the year
Number of shares
Muthoot Finance Limited

10 arising as a result of 34,295 321,115 47,940 2,012 45,655 4,600 17,600 - - -
exercise of option
Options vested
11 - 742,240 256,005 3,049 91,200 38,090 48,750 - - -
during the year
Forfeited/Lapsed
12 17,147 656,595 487,285 50 68,625 123,690 - 325 39,700 82,100
during the year
Options
13 outstanding at the 29,224 902,790 286,205 200 231,350 108,510 274,900 7,825 350,700 646,200
end of the year
14 Options exercisable 29,224 62,990 25,450 200 4,100 7,170 31,150 - - -
Money realised by
15 exercise of options 342,950/- 16,055,750/- 2,397,000/- 20,120/- 2,282,750/- 230,000/- 880,000/- - - -
(`)
Annexure- 2
Other details are as under :-

16 Directors and Employees to whom options were granted during the year :-
i) Director(s) including Managing Director and Senior Managerial personnel Nil
ii) Other employee who recieves a grant in any one year of option amounting to 5% or
None
more of option granted during the year
iii) Identified employees who were granted option during the year, equal to or exceeding
1% of the issued capital (excluding outstanding warrants and conversions) of the None
company at the time of grant
17 Variations of terms of Options Nil
18 Diluted Earnings Per Share (EPS) ` 29.45/- per Share
19 i) Method of calculation of employee compensation cost Intrinsic value method
Employee compensation cost as per
Intrinsic value method - ` 361.94 lacs
ii) Difference between the employee compensation and cost so computed at i) above Employee compensation cost as per Fair
and the employee compensation cost that shall have been recognised if it had used value method using Black Scholes Model -
the fair value of the options ` 306.04 lacs
Difference in costs - ` 55.90 lacs
Impact on profits: -Profits of the company
would have been higher by ` 55.90 lacs
iii) The impact of this difference on profits and on EPS of the company
Impact on EPS: - EPS would have been
higher by `0.01/-per share
20 Weighted Average exercise price of options whose:- Loyalty Grant A Grant B

i) Exercise price either equals market price (`) or Nil Nil Nil
ii) Exercise price greater than market price (`) or Nil Nil Nil
iii) Exercise price less than market price (`) 10/- 50/- 50/-
21 Weighted Average fair price of options whose:- Loyalty Grant A Grant B
i) Exercise price either equals market price (`) or Nil Nil Nil
ii) Exercise price greater than market price (`) or Nil Nil Nil
iii) Exercise price less than market price (`)
Tranche 1 100.33/- 70.95/- 71.20/-
Tranche 2 164.23/- 128.48/- 126.92/-
Tranche 3 NA 159.37/- NA
Tranche 4 259.93/- 220.05/- 217.46/-
Impact of fair value method on net profit and on EPS :-

Particulars As at 31.03.2017
Net Profit as reported (` In lacs) 117983.16
Proforma Net Profit based on fair value approach (` In lacs) 118039.06
Basic EPS as reported (`) 29.56/- per Share
Basic EPS ( Proforma) (`) 29.57/-per Share
Diluted EPS as reported (`) 29.45/- per Share
Diluted EPS ( Proforma) (`) 29.46/- per Share

22 Description of the method and significant assumptions used to estimate fair value: -
50
The Securities Exchange Board of India (SEBI) has prescribed two methods to account for employee stock options; (1)the intrinsic value method; (2)
the fair value method.The company adopts the intrinsic value method to account for the stock options it grants to the employees.Intrinsic value is
the amount, by which the quoted closing market price of the underlying shares as on the date of grant exceeds the exercise price of the option. The
fair value of the option is estimated on the date of grant using Black Scholes options pricing model with following assumptions:-
Year ended 31-03-2017

Annexure- 2
ESOP 2013
Particulars ESOP 2013 - Tranche 1 ESOP 2013 - Tranche 2 ESOP 2013 - Tranche 4
- Tranche 3
Loyalty Loyalty Loyalty
Grant A Grant B Grant A Grant B Grant A Grant A Grant B

option option option
i) Exercise Price per share
10/- 50/- 50/- 10/- 50/- 50/- 50/- 10/- 50/- 50/-
(`)
ii) Vesting Period (Years) 1-2 1-5 2-6 1-2 1-5 2-6 1-5 1-2 1-5 2-6
iii) Price of Share in market
at the time of Grant of 117.30/- 117.30/- 117.30/- 184.30/- 184.30/- 184.30/- 219.05 280.35/- 280.35/- 280.35/-
options (`)
iv) Weighted Average fair
100.33/- 70.95/- 71.20/- 164.23/- 128.48/- 126.92/- 159.37/- 259.93/- 220.05/- 217.46/-
price of options (`)
v) Expected Volatility (%) 57.68 57.68 57.68 53.96 53.96 53.96 34.5 36.98 36.98 36.98
vi) Expected Life of the
1.5-2.5 1.5 -5.5 2.5-6.5 1.5-2.5 1.5 -5.5 2.5-6.5 1.5 -5.5 1.5-2.5 1.5 -5.5 2.5-6.5
options granted (years)
vii) Weighted Average
Contractual Life of the 2 4 5 2 4 5 4 2 4 5
options granted (years)
viii) Average Risk Free
8.4-8.45 8.4-8.8 8.4-8.95 8.32-8.35 8.26-8.35 8.24-8.32 7.45-7.60 6.91-7.08 6.91-7.41 7.08-7.47
Interest rate (% p.a )
ix) Expected Dividend
3.84 3.84 3.84 3.26 3.26 3.26 2.74 2.14 2.14 2.14
Yield (%)
Annexure- 3
FORM NO. MGT 9

Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management & Administration ) Rules, 2014.
EXTRACT OF ANNUAL RETURN

as on the Financial Year ended on 31st March, 2017
I REGISTRATION & OTHER DETAILS:

i CIN : L65910KL1997PLC011300
ii Registration Date : 14/03/1997
iii Name of the Company : MUTHOOT FINANCE LIMITED
iv Category/ Sub-Category of the Company : Company Limited by Shares/ Non-govt company
v Address of the Registered office & contact details
2nd Floor, Muthoot Chambers, Opposite Saritha Theatre
Address :
Complex, Banerji Road
Town / City : Ernakulam -682018
State : Kerala
Country Name : India
Telephone (with STD Code) : 0484 2394712
Fax Number : 0484 2396506
Email Address : [email protected]
Website, if any : www.muthootfinance.com
vi Whether listed company : Yes
vii Name and Address of Registrar & Transfer Agents ( RTA ):-
Name of RTA : LINKINTIME INDIA PRIVATE LIMITED
Surya 35, Mayflower Avenue, Behind Senthil Nagar,
Address :
Sowripalayam Road
Town / City : Coimbatore
State : Tamil Nadu
Pin Code : 641028
Telephone : 0422 2314792
Fax Number : 0422 2314792
Email Address : [email protected]

Annexure- 3
II. PRINCIPAL BUSINESS ACTIVITY OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-
Sl.
Name and Description of main products / services NIC Code of the Product / service % to total turnover of the company
No.
ii Loan (Financing) against collateral of Gold Jewellery 64-649 99.27%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -

No. of Companies for which information is being filled - 4
HOLDING/
Sl. NAME AND ADDRESS OF THE
CIN/GLN SUBSIDIARY / % of shares held Applicable Section
No. COMPANY
ASSOCIATE
ASIA ASSET FINANCE PLC
1 No.76/1, Dharmapala Mawatha, Colombo NA Foreign subsidiary 60% Section 2(87)
03, Sri Lanka
MUTHOOT HOMEFIN (INDIA)
LIMITED, Muthoot Chambers, Kurians U65922KL2011PL
2 Subsidiary 88.27% Section 2(87)
Tower, Banerji Road, Ernakulam, Kerala - C029231
682018, India
MUTHOOT INSURANCE BROKERS
PRIVATE LIMITED, 3rd Floor, Muthoot U67200KL2002PT
3 Subsidiary 100% Section 2(87)
Chambers, Kurians Tower, Banerji Road, C015200
Ernakulam, Kerala - 682018, India
BELSTAR INVESTMENT AND
FINANCE PRIVATE LIMITED,
U06599TN1988PT
4 New No. 33, Old No. 14, 48th Street, Subsidiary 64.60% Section 2(87)
C081652
9th Avenue, Ashok Nagar, Chennai, Tamil
Nadu - 600083, India

IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY)
i. Category-wise Share Holding
No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Category of Shareholders % of Total % of Total during the
Demat Physical Total Demat Physical Total
Shares Shares year
A. PROMOTERS
Annexure- 3
(1) Indian
a) Individual/ HUF 297797872 0 297797872 74.636% 294463872 0 294463872 73.713% -0.923%
b) Central Govt. 0 0 0 0.000% 0 0 0 0.000% 0.000%
c) State Govt(s). 0 0 0 0.000% 0 0 0 0.000% 0.000%
d) Bodies Corp. 0 0 0 0.000% 0 0 0 0.000% 0.000%
e) Banks / FI 0 0 0 0.000% 0 0 0 0.000% 0.000%
f) Any other 0 0 0 0.000% 0 0 0 0.000% 0.000%
Sub Total (A)(1) 297797872 0 297797872 74.636% 294463872 0 294463872 73.713% -0.923%
(2) Foreign
a) NRI - Individual/ 0 0 0 0.000% 0 0 0 0.000% 0.000%
b) Other - Individual/ 0 0 0 0.000% 0 0 0 0.000% 0.000%
c) Bodies Corp. 0 0 0 0.000% 0 0 0 0.000% 0.000%
d) Banks / FI 0 0 0 0.000% 0 0 0 0.000% 0.000%
e) Any Others 0 0 0 0.000% 0 0 0 0.000% 0.000%
Corporate Overview
Sub Total (A)(2) 0 0 0 0.000% 0 0 0 0.000% 0.000%

Total shareholding of Promoter
297797872 0 297797872 74.636% 294463872 0.00 294463872 73.713% -0.923%
(A) = (A) (1) + (A) (2)
B. PUBLIC SHAREHOLDING
1. Institutions
a) Mutual Funds 27353381 0 27353381 6.855% 32347346 0 32347346 8.097% 1.242%
b) Banks / FI 13022 0 13022 0.003% 38977 0 38977 0.010% 0.007%
Statutory Reports
c) Central Govt. 0 0 0 0.000% 0 0 0 0.000% 0.000%

d) State Govt(s). 0 0 0 0.000% 0 0 0 0.000% 0.000%
e) Venture Capital Funds 0 0 0 0.000% 0 0 0 0.000% 0.000%
f) Insurance Companies 0 0 0 0.000% 0 0 0 0.000% 0.000%

g) Foreign institutional
Investors/ Foreign
64076830 0 64076830 16.059% 57019244 0 57019244 14.273% -1.786%
Portfolio Investor/
Foreign Companies
53
No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
Category of Shareholders % of Total % of Total during the
Demat Physical Total Demat Physical Total
54
Shares Shares year
h) Foreign Venture
0 0 0 0.000% 0 0 0 0.000% 0.000%
Capital Funds
i) Others (specify) 0 0 0 0.000% 0 0 0 0.000% 0.000%
Sub-total (B)(1) 91443233 0 91443233 22.917% 89405567 0 89405567 22.380% -0.537%
Annexure- 3
2. Non-Institutions
a) Bodies Corp.
i) Indian 3042038 0 3042038 0.762% 3863238 0 3863238 0.967% 0.205%

ii) Overseas 0 0 0 0.000% 0 0 0 0.000% 0.000%
b) Individuals
i) Individual
shareholders holding
5161797 567 5162364 1.294% 5900700 140 5900840 1.477% 0.183%
nominal share capital
upto ` 1 lakh
ii) Individual
shareholders holding
975374 0 975374 0.244% 4810370 0 4810370 1.204% 0.960%
nominal share capital
in excess of ` 1 lakh
c) Others (specify)
i) Trusts 7480 0 7480 0.002% 17555 0 17555 0.004% 0.002%
iii) Non Resident Indians
59873 0 59873 0.015% 177611 0 177611 0.044% 0.029%
(Non Repat)
iv) Non Resident Indians
175171 0 175171 0.044% 336141 0 336141 0.084% 0.040%
(Repat)
v) Clearing Member 165233 0 165233 0.041% 230882 0 230882 0.058% 0.017%
vi) Hindu Undivided
173694 0 173694 0.044% 256311 0 256311 0.064% 0.020%
Family
vii) Foreign Nationals 0 0 0 0.000% 3682 0 3682 0.001% 0.001%
viii) Foreign Portfolio
0 0 0 0.000% 9480 0 9480 0.002% 0.002%
Investor (Individual)
Sub-total (B)(2) 9760660 567 9761227 2.446% 15605970 140 15606110 3.907% 1.461%
Total Public Shareholding (B)=(B)
101203893 567 101204460 25.363% 105011537 140 105011677 26.287% 0.924%
(1) + (B)(2)
C. SHARES HELD BY
CUSTODIAN FOR GDRS & 0 0 0 0.000% 0.00 0 0 0.000% 0.000%
ADRS
Grand Total (A+B+C) 399001765 567 399002332.00 100.00% 399475409.00 140 399475549 100.000% -
Annexure- 3
ii Shareholding of Promoters
Shareholding at the beginning of the year Share holding at the end of the year
01.04.2016 31.03.2017 % change
% of Shares %of Shares in share
Sl
Shareholder’s Name % of total Pledged / % of total Pledged / holding
No. No. of No. of
Shares of the encumbered Shares of the encumbered during the
Shares Shares
company to total company to total year
shares shares
1 M G George Muthoot 47385132 11.876% 0.000% 46551632 11.653% 0 -0.223%
2 George Alexander Muthoot 44464400 11.144% 0.000% 43630900 10.922% 0 -0.222%
3 George Jacob Muthoot 44464400 11.144% 0.000% 43630900 10.922% 0 -0.222%
4 George Thomas Muthoot 44464400 11.144% 0.000% 43630900 10.922% 0 -0.222%
TOTAL 180778332 45.308% 0.000% 177444332 44.419% 0 -0.889%
iii Change in Promoters’ Shareholding

1 Mr. M. G. George Muthoot
Shareholding at the beginning of year Cumulative Shareholding during the
Sl No. Shareholder’s Name
2016-17 year 2016-17
% of total Shares % of total Shares
No. of Shares No. of Shares
of the company of the company
1 At the beginning of the year 47385132 11.876% 47385132 11.876%
2 Decrease by way of transfer (04/03/2017) 833500 0.209% 46551632 11.667%
3 At the end of the year - - 46551632 11.653%*
2 Mr. George Alexander Muthoot

2016-17 year 2016-17
3 Mr. George Jacob Muthoot

2016-17 year 2016-17

Annexure- 3
4 Mr. George Thomas Muthoot

2016-17 year 2016-17
*The percentage change in the Promoters holding as on 31/03/2017 post 04/03/2017 is due to increase in the paid up share capital of the Company.
iv Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and
Holders of GDRs and ADRs):
Shareholding at the beginning of Cumulative Shareholding
the year during of the year
Sl. Shareholder's Increase/Decrease
No. of shares % of total shares Date Reason % of total
No. Name in shareholding No. of
at beginning of the company at shares of the
shares
of year beginning of year company
RELIANCE
CAPITAL TRUSTEE
COMPANY
1 12898091 3.229% 01 Apr 2016 12898091 3.229%
LIMITED A/C
RELIANCE
GROWTH FUND
15 Apr 2016 25000 12923091 3.235%
06 May 2016 13700 12936791 3.238%
30 Jun 2016 (118933) 12817858 3.209%
01 Jul 2016 (100000) 12717858 3.184%
22 Jul 2016 25000 12742858 3.190%
05 Aug 2016 (214900) 12527958 3.136%
12 Aug 2016 (82938) 12445020 3.115%
Transfer
02 Sep 2016 200000 12645020 3.165%
11 Nov 2016 100000 12745020 3.190%
18 Nov 2016 791511 13536531 3.389%
25 Nov 2016 370000 13906531 3.481%
02 Dec 2016 (50461) 13856070 3.469%
16 Dec 2016 15000 13871070 3.472%
23 Dec 2016 45000 13916070 3.484%
30 Dec 2016 25000 13941070 3.490%
06 Jan 2017 21 13941091 3.490%
03 Feb 2017 299000 14240091 3.565%
17 Feb 2017 74972 14315063 3.584%

Annexure- 3

shares
24 Feb 2017 25000 14340063 3.590%
03 Mar 2017 10 14340073 3.590%
31 Mar 2017 (24000) 14316073 3.584%
14316073 3.584% 31 Mar 2017 14316073 3.584%
BIRLA SUN
LIFE TRUSTEE
COMPANY
2 PRIVATE LIMITED 9664228 2.419% 01 Apr 2016 9664228 2.419%
A/C BIRLA SUN
LIFE FRONTLINE
EQUITY FUND
29 Apr 2016 (750000) 8914228 2.232%
13 May 2016 (20000) 8894228 2.227%
10 Jun 2016 (145002) 8749226 2.190%
17 Jun 2016 (335000) 8414226 2.106%
24 Jun 2016 (65853) 8348373 2.090%
08 Jul 2016 170000 8518373 2.132%
29 Jul 2016 (151000) 8367373 2.095%
05 Aug 2016 (546989) 7820384 1.958%
12 Aug 2016 (317287) 7503097 1.878%
28 Oct 2016 (25000) Transfer 7478097 1.872%
11 Nov 2016 (11000) 7467097 1.869%
18 Nov 2016 (173800) 7293297 1.826%
02 Dec 2016 (41000) 7252297 1.816%
09 Dec 2016 (169260) 7083037 1.773%
16 Dec 2016 11000 7094037 1.776%
23 Dec 2016 80000 7174037 1.796%
30 Dec 2016 11600 7185637 1.799%
03 Mar 2017 (10000) 7175637 1.796%
24 Mar 2017 (10000) 7165637 1.794%
7165637 1.794% 31 Mar 2017 7165637 1.794%
6166482 1.544% 01 Apr 2016 6166482 1.544%
GOLDMAN SACHS
3 31 Mar 2017 108682 Transfer 6275164 1.571%
INDIA LIMITED
6275164 1.571% 31 Mar 2017 6275164 1.571%
TATA BALANCED
4 0 0.000% 01 Apr 2016 0 0.000%
FUND ##

Annexure- 3

shares
10 Jun 2016 423000 423000 0.106%
17 Jun 2016 112000 535000 0.134%
24 Jun 2016 120000 655000 0.164%
30 Jun 2016 115000 770000 0.193%
08 Jul 2016 1045000 1815000 0.454%
22 Jul 2016 75000 1890000 0.473%
29 Jul 2016 450000 2340000 0.586%
12 Aug 2016 190000 2530000 0.633%
19 Aug 2016 125000 2655000 0.665%
26 Aug 2016 127000 Transfer 2782000 0.696%
02 Sep 2016 100000 2882000 0.721%
09 Sep 2016 100000 2982000 0.747%
11 Nov 2016 236700 3218700 0.806%
18 Nov 2016 150000 3368700 0.843%
25 Nov 2016 12000 3380700 0.846%
24 Feb 2017 (5900) 3374800 0.845%
17 Mar 2017 2600 3377400 0.846%
24 Mar 2017 35000 3412400 0.854%
31 Mar 2017 165000 3577400 0.896%
3577400 0.896% 31 Mar 2017 3577400 0.896%

Annexure- 3

shares
GMO EMERGING
DOMESTIC
5 OPPORTUNITIES 4348268 1.089% 01 Apr 2016 4348268 1.089%
FUND, A SERIES
OF GMO TRUST
29 Apr 2016 188674 4536942 1.136%
13 May 2016 345031 4881973 1.222%
15 Jul 2016 (60000) 4821973 1.207%
22 Jul 2016 (87272) 4734701 1.185%
29 Jul 2016 (343878) 4390823 1.099%
05 Aug 2016 372722 4763545 1.192%
12 Aug 2016 (130000) 4633545 1.160%
19 Aug 2016 (279010) 4354535 1.090%
26 Aug 2016 (146190) 4208345 1.054%
Transfer
02 Sep 2016 423917 4632262 1.160%
09 Sep 2016 30315 4662577 1.167%
21 Oct 2016 (148701) 4513876 1.130%
28 Oct 2016 (64565) 4449311 1.114%
13 Jan 2017 (122878) 4326433 1.083%
20 Jan 2017 (430108) 3896325 0.975%
27 Jan 2017 (85405) 3810920 0.954%
10 Feb 2017 (56978) 3753942 0.940%
17 Feb 2017 (321023) 3432919 0.859%
3432919 0.859% 31 Mar 2017 3432919 0.859%
ACACIA No change in
6 INSTITUTIONAL 3360000 0.841% 01 Apr 2016 shareholding 3360000 0.841%
PARTNERS, LP during the
3360000 0.841% 31 Mar 2017 year 3360000 0.841%
GOLDMAN
SACHS FUNDS
- GOLDMAN
SACHS GROWTH
7 0 0.000 01 Apr 2016 0 0.000
& EMERGING
MARKETS
BROAD EQUITY
PORTFOLIO ##

Annexure- 3

shares
03 Jun 2016 346120 346120 0.087%
10 Jun 2016 312559 658679 0.165%
05 Aug 2016 709259 1367938 0.342%
Transfer
12 Aug 2016 1198313 2566251 0.642%
16 Sep 2016 325921 2892172 0.724%
30 Sep 2016 339452 3231624 0.809%
3231624 0.809% 31 Mar 2017 3231624 0.809%
BARCLAYS
MERCHANT BANK
8 0 0.000 01 Apr 2016 0 0.000
(SINGAPORE) LTD.
## Transfer
30 Sep 2016 3056502 3056502 0.7651
3056502 0.7651 31 Mar 2017 3056502 0.7651
BARING INDIA
9 PRIVATE EQUITY 5167891 1.294% 01 Apr 2016 5167891 1.294%
FUND III LIMITED
27 May 2016 (9719) 5158172 1.291%
03 Jun 2016 (1121258) 4036914 1.011%
Transfer
30 Sep 2016 (165400) 3871514 0.969%
24 Feb 2017 (1000000) 2871514 0.719%
2871514 0.719% 31 Mar 2017 2871514 0.719%
ACACIA PARTNERS,
10 4080000 1.021% 01 Apr 2016 4080000 1.021%
LP
26 Aug 2016 (979000) 3101000 0.776%
Transfer
02 Sep 2016 (249000) 2852000 0.714%
2852000 0.714% 31 Mar 2017 2852000 0.714%
BARING INDIA
PRIVATE EQUITY
11 FUND III LISTED 4748740 1.189% 01 Apr 2016 4748740 1.189%
INVESTMENTS
LIMITED **
20 May 2016 (1141558) 3607182 0.903%
27 May 2016 (2840) Transfer 3604342 0.902%
30 Sep 2016 (3056502) 547840 0.137%
547840 0.137% 31 Mar 2017 547840 0.137%

Annexure- 3

shares
GOVERNMENT OF
12 3553314 0.890% 01 Apr 2016 3553314 0.890%
SINGAPORE **
29 Apr 2016 (61319) 3491995 0.874%
06 May 2016 (17978) 3474017 0.870%
13 May 2016 (868126) 2605891 0.652%
20 May 2016 (161298) 2444593 0.612%
27 May 2016 (41012) 2403581 0.602%
03 Jun 2016 (72815) 2330766 0.584%
10 Jun 2016 (343071) 1987695 0.498%
17 Jun 2016 (137563) 1850132 0.463%
24 Jun 2016 (271366) Transfer 1578766 0.395%
30 Jun 2016 (55125) 1523641 0.381%
01 Jul 2016 (67670) 1455971 0.365%
08 Jul 2016 (397165) 1058806 0.265%
29 Jul 2016 (171806) 887000 0.222%
05 Aug 2016 (143826) 743174 0.186%
02 Sep 2016 (97983) 645191 0.162%
09 Sep 2016 (155928) 489263 0.123%
11 Nov 2016 (134378) 354885 0.089%
354885 0.089% 31 Mar 2017 354885 0.089%
ALLARD GROWTH
13 3380423 0.846% 01 Apr 2016 3380423 0.846%
FUND **
13 May 2016 (261811) 3118612 0.781%
20 May 2016 (488977) 2629635 0.658%
27 May 2016 (6922) 2622713 0.657%
03 Jun 2016 (227017) 2395696 0.600%
10 Jun 2016 (646701) 1748995 0.438%
17 Jun 2016 (12501) 1736494 0.435%
24 Jun 2016 (18084) 1718410 0.430%
29 Jul 2016 (139986) Transfer 1578424 0.395%
05 Aug 2016 (915235) 663189 0.166%
02 Sep 2016 (74885) 588304 0.147%
16 Sep 2016 (58644) 529660 0.133%
23 Sep 2016 (178379) 351281 0.088%
07 Oct 2016 (93209) 258072 0.065%
14 Oct 2016 (14345) 243727 0.061%
04 Nov 2016 (35059) 208668 0.052%
208668 0.052% 31 Mar 2017 208668 0.052%
## Not in the list of Top 10 shareholders as on 31.03.2016. The same is reflected above since the shareholder is one of the Top 10 shareholder as on 31.03.2017
** Ceased to be in the list of Top 10 shareholder as on 31.03.2017. The same is reflected above since the shareholder was one of the Top 10 shareholder as on
31.03.2016

Annexure- 3
v Shareholding of Directors and Key Managerial Personnel:

2016-17 year 2016-17
A. DIRECTORS
M G George Muthoot
1
Chairman & Whole time Director
At the beginning of the year 47385132 11.876% 47385132 11.876%
Decrease by way of transfer (04/03/2017) 833500 0.209% 46551632 11.667%
At the end of the year - - 46551632 11.653%*
George Alexander Muthoot
2.
Managing Director
George Jacob Muthoot
3.
Whole Time Director
George Thomas Muthoot
4.
Whole Time Director
Alexander M George
5. 6772500 1.697% 6772500 1.695%
Whole Time Director
George Joseph
6. 1134 0.000% 1134 0.000%
Independent Director
John K Paul
7. NIL 0.000% NIL 0.000%
K George John
8. NIL 0.000% NIL 0.000%
K John Mathew
9. NIL 0.000% NIL 0.000%
Pamela Anna Mathew
10. NIL 0.000% NIL 0.000%
B. KEY MANAGERIAL PERSON

Oommen K Mammen
1.
Chief Financial Officer
Increase by way of ESOP Allotment (21/12/
1600 0.000% 15534 0.004%
2016)

Annexure- 3

2016-17 year 2016-17
8600 0.002% 10334 0.003%
2017)
At the end of the year - - 10334 0.003%
Maxin James
2.
Company Secretary
At the beginning of the year NIL 0.000% NIL 0.000%
220 0.000% 220 0.000%
2016)
Decrease by way of transfer (21/01/2017) 20 0.000% NIL 0.000%
At the end of the year - - NIL 0.000%
*The percentage change in the Promoters holding as on 31/03/2017 post 04/03/2017 is due to increase in the paid up share
capital of the Company.
V INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans
Unsecured Loans Deposits Total Indebtness
excluding deposits
Indebtedness at the beginning of the
financial year
i) Principal Amount 154,188,728,916.70 32,220,771,081.42 - 186,409,499,998.12
ii) Interest due but not paid 234,817,551.27 127,443,207.00 - 362,260,758.27
iii) Interest accrued but not due 5,591,009,315.66 15,467,038,115.69 - 21,058,047,431.35
Total (i+ii+iii) 160,014,555,783.63 47,815,252,404.11 - 207,829,808,187.74
Change in Indebtedness during the
financial year
* Addition - 23,360,772,618.64 - 23,360,772,618.64
* Reduction (480,728,744.81) - - (480,728,744.81)
Net Change (480,728,744.81) 23,360,772,618.64 - 22,880,043,873.83
Indebtedness at the end of the financial
year
i) Principal Amount 153,557,708,363.34 57,401,915,610.44 - 210,959,623,973.78
ii) Interest due but not paid 208,525,149.98 379,692,983.00 - 588,218,132.98
iii) Interest accrued but not due 5,767,593,525.50 13,394,416,429.31 - 19,162,009,954.81
Total (i+ii+iii) 159,533,827,038.82 71,176,025,022.75 - 230,709,852,061.57

Annexure- 3
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(` in Lakhs)
Name of MD/WTD/ Manager
Sl. Particulars of
M G George George Alexander George Jacob George Thomas Alexander M Total Amount
no. Remuneration
Muthoot Muthoot Muthoot Muthoot George
1 Gross salary
(a) Salary as per
provisions
contained in
880.00 880.00 880.00 880.00 60.00 3580.00
section 17(1) of
the Income-tax
Act, 1961
(b) Value of
perquisites u/s
- - - - - -
17(2) Income-tax
Act, 1961
(c) Profits in lieu
of salary under
section 17(3) - - - - - -
Income- tax Act,
1961
2 Stock Option - - - - - -
3 Sweat Equity - - - - - -
4 Commission - - - - - -
- as % of profit - - - - - -
- others, specify - - - - - -
5 Others, please specify - - - - - -
Total (A) 880.00 880.00 880.00 880.00 60.00 3580.00
` 19209.77 lakhs being 10% of the Net Profit of the Company calculated as per Section 198 of the Companies
Ceiling as per the Act
Act, 2013

Annexure- 3
B. Remuneration to other directors:

(` in Lakhs)
Name of Directors
Sl. Particulars of
Pamela Anna Total Amount
no. Remuneration George Joseph John K Paul K George John K John Mathew
Mathew
1 Independent Directors
Fee for attending board
1.20 1.50 1.30 1.20 0.50 5.70
committee meetings
Commission 7.00 7.00 7.00 7.00 7.00 35.00
Others, please specify - - - - - 0.00
Total (1) 8.20 8.50 8.30 8.20 7.50 40.70
Other Non-Executive
2
Directors
Fee for attending board
- - - - - -
committee meetings
Commission - - - - - -
Others, please specify - - - - - -
Total (2) - - - - - -
Total (B)=(1+2) 8.20 8.50 8.30 8.20 7.50 40.70
` 1920.98 lakhs being 1% of the Net Profit of the Company calculated as per Section 198 of the Companies
Ceiling as per the Act
Act, 2013
Total Managerial
- - - - - 3620.70
Remuneration
Overall Ceiling as per ` 21130.75 lakhs being 11% of the Net Profit of the Company calculated as per Section 198 of the Companies
the Act Act, 2013
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/

WTD
Sl. no. Particulars of Remuneration Key Managerial Personnel
CFO Company Secretary Total
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 56.34 23.40 79.74
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961* - - -
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - - -
2 Stock Option** 29.66 0.54 30.20
3 Sweat Equity - - -
4 Commission - - -
- as % of profit - - -
- others, specify… - - -
5 Others, please specify - - -
Total 86.00 23.94 109.94
*Excludes the value of perquisite on exercise of stock options

**Value of perquisite on exercise of stock options

Annexure- 3
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Details of Penalty / Appeal made,
Section of the Brief Authority [RD /
Type Punishment / Compounding if any (give
Companies Act Description NCLT/ COURT]
fees imposed Details)
A. COMPANY
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS
Penalty - - NIL - - -
C. OTHER OFFICERS IN DEFAULT
Penalty - - - - -
For and on behalf of the Board of Directors For and on behalf of the Board of Directors
M G George Muthoot George Alexander Muthoot

Chairman Managing Director
(DIN: 00018201) (DIN:00016787)
Place: Kochi
Date: 08th August, 2017

Annexure- 4
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

[Pursuant to clause (o) of sub-section (3) of section 134 of the Act and Rule 9 of the Companies (Corporate Social Responsibility)
Rules, 2014]
1. CSR vision and policy of the Company is aimed to create a nationwide social impact by constantly giving back to the
community by identifying and facilitating growth in areas which are less privileged. At present the Company has focused
on Health awareness and education initiatives and is in process of expanding its CSR activities at pan India Level.
Company have undertaken CSR activities through Muthoot M George Foundation, a charity foundation for CSR activities
of the Company and was mostly focused on Scholarships for brilliant students and Educational support to under privileged
students, medical support given for healthcare like expenditure for treatments like cancer, dialysis, surgeries mainly through
a project called ‘Snehasraya’ during the year.
The Company’s CSR policy is committed towards CSR activities as envisaged in Schedule VII of the Companies Act, 2013.
The Details of CSR policy of the Company are available on the website of the Company at www.muthootfinance.com/
policy/policy-investor
2. The CSR Committee constituted by our Directors by a board resolution dated August 11, 2014 and comprises of:
Name of the Director Designation in the Committee Nature of Directorship

K George John Chairman Independent Director
John K Paul Member Independent Director
George Alexander Muthoot Member Managing Director
3. Average net profit of the company for last three financial years: ` 1,179.39 Crores
4. Prescribed CSR Expenditure: ` 23.59 Crores
5. Details of CSR spent during the financial year.
(a) Total amount spent for the financial year: ` 15 crores
(b) Amount unspent, if any: ` 8.59 crores
(c) Manner in which the amount spent during the financial year is detailed below.

Annexure- 4
Amount spent on the

Projects or programs.
Amount projects or programs
Cumulative
Specify the outlay Amount spent:
Sector in which expenditure
Sl. CSR project or activity State and (budget) Direct Direct or through
the project is up to the
No identified Local area district where project or expenditure implementation
covered Overheads reporting
or other projects or programs on projects or agency
period (`)
programs was wise programs (`)
undertaken
Harithatheeram &
adoption of Chellanam
(In order to promote Muthoot M George
organic cultivation of Kerala, Foundation,
Environmental
1 vegetables, assistance Local Area Ernakulam, 1,000,000 388,496 388,496 Implementation
protection
and training was Alleppy agency for CSR
provided to the coastal activities
village women of
Chellanam)
Marriage Assistance
Muthoot M George
(This assistance is
Foundation,
provided to eligible girls Women
2 Kerala All Kerala 10,000,000 8,614,000 8,614,000 Implementation
of families who have lost Empowerment
agency for CSR
their breadwinner/ girl
activities
children of widows)
Muthoot M George
Foundation,
Poverty
3 Charity Assistance Others All India 14,700,000 22,614,900 22,614,900 Implementation
alleviation
agency for CSR
activities

Annexure- 4
Amount spent on the

Cumulative
period (`)
undertaken
Snehasraya & Anbin
Nizhal (‘Muthoot
Snehasraya’ is a Mobile
Laboratory intended
for Prevention and
early detection of
Kidney related diseases,
diabetes and Hyper
tension ailments. The
mobile ambulance is
being operated across
Tamil Nadu & Kerala
and facilitates blood &
urine tests and create
awareness among
people about the
dreaded disease All Kerala & Muthoot M George
Exclusive camps are Coimbatore, Foundation,
Improving Kerala &
4 held at various centres Tirupur 5,000,000 1,787,630 1,787,630 Implementation
Quality of life Tamil Nadu
in Kerala & Tamil Nadu, districts of agency for CSR
where the blood sample Tamil Nadu activities
of participants will be
collected and tested for
possible kidney related
diseases. The camps are
being organised with the
help of local agencies,
clubs, etc. The project
in Kerala up to March
2017 have conducted
950 camps touching
the lives of 1,10,854
people. The project in
Tamil Nadu up to March
2017 have conducted
680 camps touching the
lives of 67,148 people)

Annexure- 4
Amount spent on the

Cumulative
period (`)
undertaken
Muthoot M George
Foundation,
Implementation
agency and
Construction of Improving Kerala and New
5 Nil 2,617,200 2,617,200 Muthoot M George
Anganwadi, toilet etc Quality of life Delhi
Foundation,
Implementation
agency- Delhi for
CSR activities
Dialysis (Assistance
will be released Muthoot M George
through hospitals who Foundation,
6 are offering special Health care South India 5,000,000 2,906,993 2,906,993 Implementation
discounted rates for agency for CSR
patients recommended activities
by MMGF)
Medical & Sustenance
Assistance (To needy
Muthoot M George
and financially weak
Foundation,
applicants. Cases will
7 Health care South India 23,500,000 23,525,189 23,525,189 Implementation
be processed through
agency for CSR
the applications
activities
received in MMGF from
branches)

Annexure- 4
Amount spent on the

Cumulative
period (`)
undertaken
Muthoot
Snehasammanam
project (Muthoot
Finance launched
“Muthoot Sneha
Samanam 2017”
to honour artists,
writers and their
widows by providing
financial assistance.
This initiative is a
part of the Corporate Muthoot M George
Social Responsibility National Foundation,
8 activities undertaken Heritage, art and Kerala All Kerala 1,500,000 987,000 987,000 Implementation
by the Company. culture agency for CSR
The first edition of activities
Snehasammanam
was launched on
January, 2015. 14
beneficiaries were then
honoured. Muthoot
Snehasammanam
2016 honored 12 more
and as of now 2017,
thus bringing the total
number of beneficiaries
to 34 artists.

Annexure- 4
Amount spent on the

Cumulative
period (`)
undertaken
These beneficiaries
were selected from
applications received
from artists, writers,
and their dependents.
These beneficiaries
belong to various
different backgrounds,
which specialise in
their respective work
segments namely
writers, music directors,
ganmela artist,
professional painters
etc. The initiative aims
to help the upcoming
generation of artist
and writers who could
get inspired and learn
from the work of
these professionals.
Perhaps it will also help
the young minds of
today in learning from
their experiences and
carrying forward their
work in their respective
fields.
Muthoot M George
General Hospital Eye Foundation,
Improving the
9 block (Rennovation and Ernakulam Kerala 500,000 667,560 667,560 Implementation
quality of Life
modification) agency for CSR
activities

Annexure- 4
Amount spent on the

Cumulative
period (`)
undertaken
Muthoot Shape a
smile project (Muthoot
Finance Ltd started a
project called “Muthoot
Shape a Smile” for
providing cleft lip &
palate surgeries to bring
back smiles to children
suffering from cleft lip
Muthoot M George
and palate deformity.
Improving the Foundation,
Through this initiative,
10 quality of life and Tamil Nadu Tamil Nadu Nil 315,286 315,286 Implementation
Muthoot M. George
Health Care agency for CSR
Foundation aims to
activities
spread awareness on
this problem and also
educate the public
that an early surgical
intervention can safely
correct this defect. Free
surgeries are sponsored
for children at Kumaran
Hospital, Chennai.

Annexure- 4
Amount spent on the

Cumulative
period (`)
undertaken
The screening of the
patients would initially
be carried out by a cleft
& maxillofacial surgeon.
Once the patients
are screened and
selected, they would
be further evaluated
by the anesthesiologist,
pediatrician, and speech
therapist at Kumaran
Hospital, Chennai. The
necessary laboratory
investigations will then
be carried out and if
found fit for surgery,
they will be operated
at the same hospital.
All treatment costs are
free, which include cost
of surgery, laboratory
investigations,
medicines, and hospital
stay. The patient can be
discharged within 5-7
days from the day of
admission.)
Muthoot M George
MMGF Assistance for Foundation,
11 deserving patients Health care Kerala Kerala 6,500,000 11,379,179 11,379,179 Implementation
through hospitals agency for CSR
activities

Annexure- 4
Amount spent on the

Cumulative
period (`)
undertaken
Muthoot M. George
Excellence Award
to 10th Standard
Topers of Government
Schools in Andhra
Pradesh, Telangana,
Karnataka and Kerala
(1,800 schools in these
states are covered
under this program.
Topers of these schools
are given cash award
and a certificate Kerala, Muthoot M George
signed by Government Karnataka, Foundation,
Promotion of
12 School authorities and Tamil Nadu 5,400,000 3,642,000 3,642,000 Implementation
education
Chairman Muthoot M. & Andhra agency for CSR
George Foundation. Pradesh activities
Majority of these
children are coming
from low income group
or lower middle class
families. This program
is implemented with
a clear vision to make
progress in forming
an equitable and
sustainable society by
uplifting the younger
generation)
Scholarships for
Muthoot M George
Engineering students
Foundation,
(Assistance provided to Promotion of
13 Kerala 70,000,000 66,247,000 66,247,000 Implementation
brilliant students and education
agency for CSR
those who scored over
activities
90% in Mathematics)

Annexure- 4
Amount spent on the

Cumulative
period (`)
undertaken
Muthoot M George
Foundation,
Other Educational Promotion of
14 All India 3,000,000 2,714,498 2,714,498 Implementation
Assistance education
agency for CSR
activities
Notebook distribution
- South regions (In
Muthoot M George
order to encourage the
Foundation,
children of our needy Promotion of
15 South India 1,500,000 1,440,069 1,440,069 Implementation
customers, one lakh education
agency for CSR
notebooks distributed
activities
through our branches in
South India)
Muthoot M George
Foundation,
Coaching for Civil Promotion of
16 Kerala 2,000,000 150,000 150,000 Implementation
Services examination education
agency for CSR
activities
Total 149,600,000 149,997,000 149,997,000
6. The Company has spent ` 15 Crores in promoting education, Medical Aid and others. Amount spent in the previous
year on CSR activities was ` 14.62 Crores. There is an increase in CSR expenditure in comparison to the previous year.
However, the amount spent is short of amount required to be spend under Section 135 of Companies Act, 2013, as the
Company was unable to identify suitable projects within its CSR Policy. Hence your Company was not able to spend entire
` 23.59 Crores. Your Company is focused on creating sustainable and long term CSR model and hence your Company will
be able to spend more amount for CSR expenditure in future.
7. CSR Committee of Board affirms that CSR activities are implemented in accordance with CSR objectives of Companies
Act, 2013 and CSR Policy of your Company.
K. George John George Alexander Muthoot

Chairman - CSR Committee Managing Director
Place : Kochi
Date : 08th August, 2017

Annexure- 5
BUSINESS RESPONSIBILITY REPORT

Business Responsibility Report For the year ended on 31st March, 2017
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1 Corporate Identity Number (CIN) of the Company L65910KL1997PLC011300
2 Name of the Company Muthoot Finance Limited
Muthoot Chambers, Opposite Saritha Theatre Complex, 2nd
3 Registered address
Floor, Banerji Road, Kochi 682 018, India
4 Website www.muthootfinance.com
5 E-mail id [email protected]
6 Financial Year reported 2016-17
7 Sector(s) that the Company is engaged in (industrial activity code-wise) NIC Code : 64-649
List three key products/services that the Company manufactures/ Please refer section titled "Multiple Offerings" of Corporate
8
provides (as on March 31, 2017) Overview Page of this Annual Report
Total number of locations where business activity is undertaken by the
9
Company (as on March 31, 2017)
(a) Number of International Locations (Provide details of major 5) Nil
(b) Number of National Locations (as on March 31, 2017) 4307 branches in 24 States and 5 Union Territories
10 Markets served by the Company – Local/State/National/International National
SECTION B: FINANCIAL DETAILS OF THE COMPANY
1 Paid up Capital (` in Crores) 399.47
2 Total Turnover (` in Crores) 5746.70 (Total Revenue)
3 Total profit after taxes (` in Crores) 1,179.83
Total Spending on Corporate Social Responsibility (CSR) as percentage
4 ` 15 Crs representing 1.27% of standalone Profit After Tax.
of profit after tax (%) (Standalone)
Promoting Education, Medical Aid and others. ( For more detail
5 List of activities in which expenditure in 4 above has been incurred:- please refer to CSR Activities attached as part of Report of
Board of Directors in the Annual Report)
SECTION C: OTHER DETAILS
1 Does the Company have any Subsidiary Company/ Companies? Yes
Do the Subsidiary Company/Companies participate in the BR Initiatives
2 of the parent company? If yes, then indicate the number of such No
subsidiary company(s)
Do any other entity/entities (e.g. suppliers, distributors etc.) that the
Company does business with, participate in the BR initiatives of the
3 No
Company? If yes, then indicate the percentage of such entity/entities?
[Less than 30%, 30-60%, More than 60%]
SECTION D: BR INFORMATION
1 Details of Director/Directors responsible for BR
Details of the Director/Directors responsible for implementation of the DIN - 00016787
(a)
BR policy/policies George Alexander Muthoot
Managing Director
(b) Details of the BR head Telephone number: 0484-2394712
[email protected]

Annexure- 5
2 PRINCIPLE-WISE (AS PER NVGS) BR POLICY/POLICIES

(a) Details of compliance (Reply in Y/N)
Sl Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1 Do you have a policy/ policies for.... Y Y Y Y Y Y Y Y Y
Has the policy being formulated in consultation with the relevant
2 Y Y Y Y Y Y Y Y Y
stakeholders?
Does the policy conform to any national / international standards? If yes,
3 N N N N N N N N N
specify? (50 words) *
Has the policy being approved by the Board? Is yes, has it been signed by
4 Y Y Y Y Y Y Y Y Y
MD/ owner/ CEO/ appropriate Board Director?
Does the company have a specified committee of the Board/ Director/ Official
5 Y Y Y Y Y Y Y Y Y
to oversee the implementation of the policy?
6 Indicate the link for the policy to be viewed online? **
Has the policy been formally communicated to all relevant internal and
7 Y Y Y Y Y Y Y Y Y
external stakeholders?
8 Does the company have in-house structure to implement the policy/ policies. Y Y Y Y Y Y Y Y Y
Does the Company have a grievance redressal mechanism related to the
9 policy/ policies to address stakeholders’ grievances related to the policy/ Y Y Y Y Y Y Y Y Y
policies?
Has the company carried out independent audit/ evaluation of the working of
10 Y Y Y Y Y Y Y Y Y
this policy by an internal or external agency?
Businesses should conduct and govern themselves with Ethics, Business should respect, protect, and make efforts to restore
P1 P6
Transparency and Accountability the environment
Businesses should provide goods and services that are safe and Businesses, when engaged in influencing public and
P2 P7
contribute to sustainability throughout their life cycle regulatory policy, should do so in a responsible manner
Businesses should support inclusive growth and equitable
P3 Businesses should promote the wellbeing of all employees P8
development
Businesses should respect the interests of, and be responsive
Businesses should engage with and provide value to their
P4 towards all stakeholders, especially those who are P9
customers and consumers in a responsible manner
disadvantaged, vulnerable and marginalized.
P5 Businesses should respect and promote human rights
(b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
Not Applicable
*Some of the policies and principles have been put into practice by the Founder Late Shri. M . George Muthoot decades back. The
Company has not tested the policies for adherence to any National or International Standards. However , these policies are now
framed based on applicable regulations and general practices.
**http://www.muthootfinance.com/policy/policy-investor
3 GOVERNANCE RELATED TO BR
(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the
Company. Within 3 months, 3-6 months, Annually, More than 1 year.
Annually
(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is
published?
Yes. BR is available at http://www.muthootfinance.com/investors/annual-reports . The report is published annually.

Annexure- 5
SECTION E: PRINCIPLE-WISE PERFORMANCE

Principle 1
1 Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/Joint Ventures/
Suppliers/Contractors/NGOs /Others?
Yes. The policy covers only the company. It does not extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others.
2 How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the
management? If so, provide details thereof, in about 50 words or so.
Nil
Principle 2
1 List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
Gold Loan - The flagship product of the Company i.e., loan against security of gold jewellery provides access to credit within a reasonable
time to a person who otherwise do not have access to credit or access to credit within a reasonable time. We service about 1.30 lakh
customers per day. This supports social well being as well as business activities.
e-KYC - To facilitate easier compliance to KYC norms by customers, we launched ‘e-KYC facility’. It is a customer-friendly and convenient
digital KYC process based on Aadhaar with direct UIDAI link. The verification procedure is conducted by using customers’ fingerprints.
This paperless and highly secure system enables faster loan processing and ensures 100% integrity in KYC verification. We are the first
‘Gold Loan NBFC’ to introduce this facility, with over 50% adoption rate in the first roll out. Today, we offer our e-KYC facility in 3,702
branches and 86% of the new verifications are completed through e-KYC. Besides, we are planning to implement the e-Sign facility by
August 2017.
iMuthoot- Mobile App - We developed a new mobile application called iMuthoot that allows customers to transact through their
smartphones. This is our major initiative towards building a branch-less banking ecosystem for our customers. The app is available on
Google Play and Apple Store. iMuthoot allows existing customers to view their loan statements and balance as well as Online Gold Loan
facility. New customers can see our latest loan schemes, calculate loan eligibility, locate branches and fix appointments with their nearest
branch officials and apply for gold loans. It is available in six languages.
2 For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of
product(optional):
(a) Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain?
(b) Reduction during usage by consumers (energy, water) has been achieved since the previous year?
Not Applicable
3 Does the company have procedures in place for sustainable sourcing (including transportation)?
(a) If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.
Not Applicable
4 Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their
place of work?
(a) If yes, what steps have been taken to improve their capacity and capability of local and small vendors?
Not Applicable
5 Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste
(separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
Not Applicable

Annexure- 5
PRINCIPLE 3
1 Please indicate the Total number of employees as on March 31, 2017 24205
Please indicate the Total number of employees hired on temporary/contractual/casual
2 Nil
basis.
3 Please indicate the Number of permanent women employees. 7126
The company does not specifically track the
information of employees with disability or
4 Please indicate the Number of permanent employees with disabilities make any discrimination on disability. Hence
such an information is not available with the
Company.
5 Do you have an employee association that is recognized by management. No
What percentage of your permanent employees is members of this recognized employee
6 Not Applicable
association?
Please indicate the Number of complaints relating to child labour, forced labour,
7 involuntary labour, sexual harassment in the last financial year and pending, as on the
end of the financial year.
No of complaints No of complaints
Sl Category filed during the pending as on end of
financial year the financial year
(a) Child labour/forced labour/involuntary labour Nil Nil
(b) Sexual harassment 8 8
(c) Discriminatory employment Nil Nil
8 What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?
All employees with the Company are covered

by skill upgradation training programmes
(a) Permanent Employees conducted through our "Regional Learning
Centers" and "Muthoot Management
Academies"
All employees with the Company are covered
by skill upgradation training programmes
(b) Permanent Women Employees conducted through our "Regional Learning
Centers" and "Muthoot Management
Academies"
(c) Casual/Temporary/Contractual Employees Not Applicable
(d) Employees with Disabilities Please refer Sl.No.4 under Principle 3

Annexure- 5
PRINCIPLE 4
1 Has the company mapped its internal and external stakeholders?
Yes
2 Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders.
Yes
3 Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. If so,
provide details thereof, in about 50 words or so.
Though we have identified the above stakeholders , we have not created any product or services specifically for them. Since loan against
security of gold jewellery provides access to credit within a reasonable time to a person who otherwise do not have access to credit or access
to credit within a reasonable time , we believe that our services will address the needs of the above stakeholders. Our presence through
4307 branches in 24 States and 5 Union Territories again will address the needs of the above stakeholders.However , we have taken special
initiatives to address the needs of the above stakeholders through our CSR activities details of which are available in the Annual Report on
CSR activities in the Annual Report
PRINCIPLE 5
1 Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/Contractors/
NGOs/Others?
The policy covers only the company
2 How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the
management?
Nil
PRINCIPLE 6
1 Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/Contractors/NGOs/others.
The policy covers only the company
2 Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc? Y/N. If
yes, please give hyperlink for webpage etc.
No
3 Does the company identify and assess potential environmental risks? Y/N
No
4 Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if
Yes, whether any environmental compliance report is filed?
No
5 Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please give
hyperlink for web page etc.
We have three windmills installed in Tamilnadu with a combined power generation capacity of 3.75Megawatt
6 Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being
reported?
Not Applicable
7 Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial
Year.
Not Applicable
PRINCIPLE 7
1 Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with:
(a) Kerala Chamber of Commerce & Industries

(b) Federation of Indian Chamber of Commerce & Industries
(c) Kerala Management Association
(d) Association of Gold Loan Companies
(e) Confederation Of Indian Industry
(f) Kerala Non-Banking Finance Companies Association

Annexure- 5
2 Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the
broad areas ( drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food
Security, Sustainable Business Principles, Others)
No
PRINCIPLE 8
1 Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof.
The flagship product of the Company ie., loan against security of gold jewellery provides access to credit within a reasonable time to a
person who otherwise do not have access to credit or access to credit within a reasonable time.Hence this will support inclusive growth and
equitable development. Our presence through 4307 branches in 24 States and 5 Union Territories again will address the needs of larger
section of Indian population.Please refer to Annual Report on CSR Activities attached in the Annual Report.
2 Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other organization?
Programmes/projects are undertaken through the trust M/s. Muthoot M George Foundation .Please refer to Annual Report on CSR Activities
attached in the Annual Report.
3 Have you done any impact assessment of your initiative?
Programmes are reviewed periodically for its effectiveness and whether its desired objectives are met.
4 What is your company’s direct contribution to community development projects- Amount in INR and the details of the projects undertaken.
Amount Spent on CSR activities is ` 15 crs. Please refer to Annual Report on CSR Activities attached in the Annual Report
5 Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50
words, or so.
CSR activities are constantly monitored for implementation and fresh support is given only where adoptions are at a better level. Please refer
to Annual Report on CSR Activities attached in the Annual Report.
PRINCIPLE 9
1 What percentage of customer complaints/consumer cases are pending as on the end of financial year.
25%
2 Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A. /
Remarks(additional information)
Yes
3 Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-
competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so.
No
4 Did your company carry out any consumer survey/ consumer satisfaction trends?
Yes. Done Periodically

Annexure- 6
DECLARATION REGARDING RECEIPT OF CERTIFICATE OF INDEPENDENCE FROM ALL

INDEPENDENT DIRECTORS
I hereby confirm that the Company has received from all the independent directors namely Mr. George Joseph, Mr. John K Paul,
Mr. K George John, Mr. K John Mathew and Ms. Pamela Anna Mathew, a certificate stating their independence as required under
section 149 (6) of the Companies Act, 2013 and also from Ms. Pamela Anna Mathew, Justice Jacob Benjamin Koshy, Mr. Pratip
Chaudhuri and Mr. Jose Mathew for their proposed appointment as Independent Director.

Place : Kochi Managing Director
Date : August 08, 2017
Annexure- 7
d) to ensure that all provisions regarding Remuneration

NOMINATION AND REMUNERATION Policy and duties of Committee as required under
POLICY the Companies Act, 2013 or such other acts, rules,
Board of Directors of Muthoot Finance Limited (“the regulations or guidelines are complied with.
Company”) in order to align with the provisions of the
Companies Act, 2013 and the Listing Agreement with Stock DEFINITIONS
Exchanges has constituted a Committee as “Nomination and (a) Key Managerial Personnel: Chief Executive Officer,
Remuneration Committee.” Executive Directors, Chief Financial Officer and
Company Secretary or any other personnel as
OBJECTIVE prescribed under Companies Act, 2013.
The Nomination and Remuneration Committee and this Policy
are in compliance with the Companies Act, 2013, Reserve (b) Senior Management: Senior Management means
Bank of India Guidelines read along with the applicable rules personnel of the company who are members of its core
thereto and Listing Agreement with Stock Exchanges and management team excluding the Board of Directors.
Policy Guidelines of Muthoot Finance Limited. This would also include all members of management
one level below the executive directors including all
The Key Objectives of the Committee would be: functional heads.
a) to guide the Board in relation to appointment and
removal of Directors, Key Managerial Personnel and ROLE AND RESPONSIBILITIES
Senior Management. The role of the Committee inter alia will be the
following:
b) to evaluate the performance of the members of the a. Identifying persons who are qualified to become
Board and provide necessary report to the Board for Directors and who may be appointed in Senior
further evaluation of the Board and recommending the Management in accordance with Criteria as laid down
Board on Remuneration payable to the Directors, Key and recommend to Board their appointment and
Managerial Personnel and Senior Management. removal.

Annexure- 7
b. Ensure persons proposed to be appointed on the Board j. Review the on-going appropriateness and relevance of
do not suffer any disqualifications for being appointed as the remuneration policy.
a director under the Companies Act, 2013.
k. Ensure that contractual terms of the agreement that
c. Ensure that the proposed appointees have given their Company enters into with Directors as part of their
consent in writing to the Company; employment in the Company are fair to the individual
and the Company.
d. Review and carry out every Director’s performance,
the structure, size and composition including l. Ensure that all provisions regarding disclosure of
skills, knowledge and experience required of the remuneration and Remuneration Policy as required
Board compared to its current position and make under the Companies Act, 2013 or such other acts,
recommendations to the Board with regard to any rules, regulations or guidelines are complied with.
changes;
CONSTITUTION
e. Plan for the succession planning for directors in the Members:
course of its work, taking into account the challenges a. The Committee shall consist of a minimum 3
and opportunities facing the Company, and what skills non-executive directors, majority of them being
and expertise are therefore needed on the Board in the independent.
future;
b. Minimum two (2) members shall constitute a quorum
f. Be responsible for identifying and nominating for the for the Committee meeting.
approval of the Board, candidates to fill board vacancies
as and when they arise; c. Membership of the Committee shall be disclosed in the
Annual Report.
g. Keep under review the leadership needs of the
organization, both executive and non-executive, d. Term of the Committee shall be continued unless
with a view to ensuring the continued ability of the terminated by the Board of Directors.
organization to compete efficiently in the market place;
and Chairman:
a. Chairman of the Committee shall be an Independent
h. Ensure that on appointment to the Board, non-executive Director.
directors receive a formal letter of appointment setting
out clearly what is expected of them in terms of b. Chairman of the Committee shall be decided by Board
committee services and involvement outside board of Directors of the Company.
meetings.
c. In the absence of the Chairman, the members of the
i. Determine and agree with the Board the framework for Committee present at the meeting shall choose one
broad policy for criteria for determining qualifications, amongst them to act as Chairman.
positive attitudes and independence of a director
and recommend to the Board a policy, relating to FREQUENCY OF MEETINGS
remuneration for the Directors, Key Managerial The meeting of the Committee shall be held at such regular
Personnel and other employees. intervals as may be required by the Committee or as directed
by Board of Directors of the Company.

Annexure- 7
GUIDING PRINCIPLES to carry out all functions/duties in compliance of

Committee while exercising its functions as described in Companies Act, 2013, Equity Listing agreements and
ROLE AND RESPONSIBILITIES of the Committee in this Reserve Bank of India Guidelines.
policy, will be guided by following broad principles:
DECISION MAKING AND VOTING
a. The level and composition of remuneration is reasonable a. Matters arising for determination at Committee
and sufficient to attract, retain and motivate directors of meetings shall be decided by a majority of votes of
the quality required to run the company successfully; Members present and voting and any such decision shall
for all purposes be deemed a decision of the Committee.
b. The relationship of remuneration to performance is clear
and meets appropriate performance benchmarks; and b. In the case of equality of votes, the Chairman of the
meeting will have a casting vote.
c. The remuneration to directors, key managerial personnel
and senior management involves a balance between c. Committee may refer any matter for consideration and
fixed and incentive pay reflecting short and long-term decision by full Board of Directors of the Company,
performance objectives appropriate to the working of if majority of members deem the matter fit for the
the company and its goals. said purpose. Such matters which are referred by the
Committee will be deemed to be agenda of the meeting
d. In case, subject matter is related to appointment/ of Board of Directors.
remuneration of Independent Directors, the requirement
under Code of Conduct of Independent Directors and MINUTES OF COMMITTEE MEETING
other Statutory Requirements are met. Proceedings of all meetings must be minuted and signed by
the Chairman of the Committee at the subsequent meeting.
e. In case, subject matter is related to appointment/ Minutes of the Committee meetings will be tabled at the
remuneration of Directors other than Independent subsequent Board and Committee meeting.
Directors, Key Managerial Persons, Senior Management,
the requirement under Code of Conduct of Senior REVIEW AND ALTERATION OF
Management of the Company is met. NOMINATION AND REMUNERATION
POLICY
f. A member of the Committee is not entitled to be The Nomination and Remuneration Committee of the
present when his or her own remuneration is discussed Company will be guided by this policy and subject to the
at a meeting or when his or her performance is power granted to/ terms of reference of the Committee as
being evaluated. The Committee may invite such decided by Board of Directors of Company from time to
executives including Key Managerial Persons and Senior time and requirement under the Companies Act, 2013 or
Management, as it considers appropriate, to be present such other acts, rules, regulations or guidelines including
at the meetings of the Committee. Listing Agreement with Stock Exchanges. Nomination and
Remuneration Committee of the Company may review this
g. ‘Fit and Proper’ Criteria as per guidelines of Reserve policy from time to time as it may deem fit. Any modification
Bank of India, will be most fundamental guidelines and Change in this policy will be subject to approval of Board
for appointment of Directors and due diligence in this of Directors based on recommendation of Nomination and
regard will be carried out. Committee will be required Remuneration Committee of the Company.

Report on Corporate Governance
Annexure- 8

“If management is about running the business, governance is about seeing that it is run properly.”
- R TRICKER
The composition of your Board of Directors is in
1. COMPANY’S PHILOSOPHY ON compliance with the requirements of Securities
CORPORATE GOVERNANCE Exchange Board of India (Listing Obligations and
Inclusion is foundation of our business and governance Disclosures Requirements) Regulations, 2015
practices adopted by us from inception of your (SEBI LODR) and the Companies Act, 2013 as
Company and this is primarily reflected in financial amended from time to time.
inclusion practices of your Company. Company’s
Philosophy of Corporate Governance is always aimed The day to day management of affairs of your
at value creation, keeping interest of all stakeholders Company is managed by Senior Management
protected in most inclusive way. This principal of of your Company which includes Whole-Time
inclusion is always reflected in Financial Inclusion Directors and Managing Director and functional
practices of your Company. heads, who function under overall supervision
and guidance of Board of Directors. Board of
Your Company have aligned its corporate governance Directors of your Company plays the primary
practice in a manner so as to achieve the objectives of role as the trustees to safeguard and enhance
principal as envisaged in revised SEBI LODR (SEBI stakeholders’ value through its effective decisions
(Listing Obligations and Disclosure Requirement) and supervision.
Regulations, 2015).
Your Company’s Board of Directors have optimum
2. BOARD OF DIRECTORS combination of Executive and Independent
A. Composition of Board Directors and half of the members of the Board
At present Board of Directors of your Company is Independent. Independent Directors meet the
consists of Ten Directors which is combination of criteria of independence as specified in SEBI
Five Executive (four Whole Time Directors and LODR and also meet the criteria for appointment
a Managing Director) and Five Non-Executive formulated by Nomination and Remuneration
Directors. All Non-Executive Directors of your Committee and as approved by your Board of
Company are independent Directors i.e. they do Directors. The Appointment and Remuneration
not have any material pecuniary relationship with policy of the Company is annexed to Report of
the Company, its promoters or its management, Board of Directors. The appointment of Directors
which may affect the independence of the of your Company is in Compliance of SEBI LODR
judgment of the Director. and afore stated policy of the Company.
The names and categories of Directors and their dates of appointment are as follows:
Date of Present
Name of Director Category DIN Position
Appointment
M G George Muthoot Non-Independent, Executive 00018201 Chairman and Whole Time Director 11.08.2014*
George Alexander Muthoot Non-Independent, Executive 00016787 Managing Director 11.08.2014*
George Jacob Muthoot Non-Independent, Executive 00018235 Whole Time Director 11.08.2014*
George Thomas Muthoot Non-Independent, Executive 00018281 Whole Time Director 11.08.2014*
K John Mathew Independent, Non - Executive 00371128 Independent Director 29.09.2016 #
George Joseph Independent, Non - Executive 00253754 Independent Director 29.09.2016 #
John K Paul Independent, Non - Executive 00016513 Independent Director 29.09.2016 #
K George John Independent, Non -Executive 00951332 Independent Director 29.09.2016 #
Pamela Anna Mathew Independent, Non -Executive 00742735 Independent Director 30.09.2015
Alexander M George Non-Independent, Executive 00938073 Whole Time Director 30.09.2015

Annexure- 8
* Appointment of Managing Director and Whole Time None of the Independent Directors are related to any other
Directors except Mr. Alexander M George were made under Directors on the Board of Directors in terms of the definition
provision of Section 196 of Companies Act, 2013 on August of “relative” given under the Companies Act, 2013.
11, 2014 and confirmed by members in Annual General
Meeting dated September 25, 2014 with effect from April 1, B. Meetings, Attendance of each of
2015. Directors and other Details
During the Financial Year 2016-17, your Board
# The Independent Directors Mr. George Joseph, Mr. John K of Directors met seven times on 12-04-2016,
Paul and Mr. K George John were re-appointed at the 19th 27-05-2016, 28-07-2016, 23-08-2016, 11-11-
Annual General Meeting for a second term of consecutive 2016, 13-02-2017 and 23-03-2017. Your Board
three years i.e. till the third Annual General Meeting from the has met atleast once in a calendar quarter and the
date of appointment, except Mr. K John Mathew who was maximum gap between these Board Meetings did
appointed for a term of one year and is retiring at the ensuing not exceed one hundred and twenty days. The
Annual General meeting. requisite quorum was present for all the meetings.
All the Independent Directors have furnished individual The names and categories of the Directors on the
declarations to the Board that they qualify the conditions Board, their attendance at Board Meetings held
of their being Independent Director in compliance of during the year and the number of Directorships
requirements under SEBI LODR. None of the Directors on the and Committee Chairmanships/Memberships
Board of Directors are Members of more than ten Committees held by them in other Companies are given
or Chairman of more than five Committees across all the herein below. Other directorships do not include
Companies in which they are Directors. alternate directorships, directorships of private
limited companies, Section 8 companies under
All Executive Directors (Whole Time Directors and Managing the Companies Act, 2013 and of Companies
Director) are related to each other being brothers except Mr. incorporated outside India. Chairmanships/
Alexander M George, who is son of Mr. M G George Muthoot, Memberships of Board Committees include only
Chairman & Whole Time Director of the Company. Audit and Stakeholder’s Relationship Committees.
Number of Board Whether Number of Directorships Number of Committee

Name of Director Category Meetings During the attended last in Other Public positions held in other
Year AGM Companies Public Companies*
Held Attended Chairman Member Chairman Member
Non-Independent,
M G George Muthoot 7 5 Yes 0 5 0 0
Executive
George Alexander Non-Independent,
7 7 Yes 0 5 0 3
Muthoot Executive
Non-Independent,
George Jacob Muthoot 7 7 Yes 0 4 0 1
Executive
George Thomas Non-Independent,
7 7 Yes 0 4 0 1
Muthoot Executive
Non-Independent,
Alexander M George 7 7 Yes 0 3 0 0
Executive
Independent, Non
K John Mathew 7 7 Yes 0 0 0 0
– Executive
Independent, Non
George Joseph 7 7 Yes 1 1 1 1
– Executive
Independent, Non
John K Paul 7 7 Yes 0 0 0 0
– Executive
Independent, Non
K George John 7 6 Yes 0 1 0 1
–Executive
Independent,
Pamela Anna Mathew 7 4 No 0 5 0 2
Non-Executive

Annexure- 8
* For purpose of calculating Number of Committee positions the Company- its operations, business, industry
held in other Public Companies of Directors only membership and environment in which it functions and the
in Audit Committee and Stakeholders Relationship Committee regulatory environment applicable to it. The
is counted as required under SEBI LODR. Company updates the members of Board of
Directors on a continuing basis on any significant
C. Meeting of Independent Directors changes therein and provides them an insight to
In compliance with requirement under Schedule their expected roles and responsibilities so as to
IV of the Companies Act, 2013 and SEBI LODR, be in a position to take well-informed and timely
one Independent Directors meeting was held decisions and contribute significantly to the
during the year under review. This meeting was Company.
well attended by all Independent Directors and
they reviewed and discussed matters as required The Company through its Managing Director/
under Companies Act, 2013 and SEBI LODR. Senior Managerial Personnel makes presentations
regularly to the Board and, the business strategies,
D. Performance Evaluation of Board, operations review, quarterly and annual results,
Committees and Directors review of Internal Audit Report and Action Taken
The Board of Directors carried out annual Report, statutory compliances, risk management,
evaluation of its own performance, its Committees operations of its Subsidiaries etc. This enables
and individual Directors based on criteria the Directors to get a deeper insight into the
and framework adopted by the Board and in operations of the Company. Functional Heads
accordance with existing regulations. of Company are required to give presentation in
Board Meeting to familiarise the Board with their
The evaluation of performance of each activities and allied matters. Company held a
independent director is being done by all the separate training and familiarisation programme
directors except the independent director for Independent Directors during the financial
evaluated. The review of the performance of year which was conducted by external experts
non-independent directors, the Board as a whole, to gain familiarisation with change in regulations
the Chairperson of the Company, quantity and especially in SEBI LODR and Companies Act,
timeliness of flow of information is done by 2013 and on allied matters including duties
independent directors of the Company. This of Independent Directors and performance
evaluation is being carried out once in a year. evaluation.
Criteria for evaluation includes qualification,
experience, age, participation, attendance, The detail of familiarisation programme is
knowledge, quality of discussion, beneficial available at the website of the Company at www.
contribution etc. Annual Commission payable to muthootfinance.com/investors/family_program.
Directors are decided on basis of performance
review by Board of Directors of your Company 3. AUDIT COMMITTEE
without presence of Director being reviewed. The Audit Committee of Board of Directors was
constituted pursuant to Section 177 of the Companies
E. Familiarisation Programme Act, 2013, SEBI Regulations and Reserve Bank of India
The Company has adopted a structured Regulations.
orientation of Independent Directors at the time
of their joining so as to familiarise them with

Annexure- 8
Composition of Audit Committee and Attendance of Directors in Audit Committee meetings:
The Audit Committee met 6 times during the Year on 27.05.2016, 28.07.2016, 23.08.2016, 10.11.2016, 08.02.2017 and
23.03.2017. The Audit Committee comprises of:
No. of Meetings
Held Attended
George Joseph Chairman Independent Director 6 6
John K Paul Member Independent Director 6 6
George Alexander Muthoot Member Managing Director 6 6
Terms of reference of the Audit Committee include: g. Qualifications in the draft audit report.
versight of the Company’s financial reporting process

O eviewing, with the management, the quarterly
R
and the disclosure of its financial information to ensure financial statements before submission to the board for
that the financial statement is correct, sufficient and approval.
credible.
eviewing, with the management, the statement of uses
R
ecommending to the Board, the appointment,
R / application of funds raised through an issue (public
re-appointment and, if required, the replacement or issue, rights issue, preferential issue, etc.), the statement
removal of the statutory auditor and the fixation of audit of funds utilized for purposes other than those stated
fees or any payment to statutory auditors for any other in the offer document/prospectus/notice and the report
services. submitted by the monitoring agency monitoring the
utilisation of proceeds of a public or rights issue, and
eviewing, with the management, the annual financial
R making appropriate recommendations to the Board to
statements and Auditors Report thereon before take up steps in this matter.
submission to the board for approval, with particular
reference to: eviewing, with the management, performance of
R
statutory and internal auditors, evaluation of the internal
a. Matters required being included in the Director’s control systems including internal financial controls and
Responsibility Statement to be included in the Risk Management.
Board’s report and other matters.
eviewing the adequacy of internal audit function,
R
b. Changes, if any, in accounting policies and if any, including the structure of the internal audit
practices and reasons for the same. department, staffing and seniority of the official heading
the department, reporting structure coverage and
c. Major accounting entries involving estimates frequency of internal audit.
based on the exercise of judgment by
management. iscussion with internal auditors on any significant
D
findings and follow up there on.
d. Significant adjustments made in the financial
statements arising out of audit findings. eviewing the findings of any internal investigations
R
by the internal auditors into matters where there is
e. Compliance with listing and other legal suspected fraud or irregularity or a failure of internal
requirements relating to financial statements. control systems of a material nature and reporting the
matter to the board.
f. Disclosure of any related party transactions.

Annexure- 8
iscussion with statutory auditors before the audit

D 4. NOMINATION AND REMUNERATION
commences, about the nature and scope of audit as well COMMITTEE
as post-audit discussion to ascertain any area of concern. The Nomination and Remuneration Committee of the
Board of Directors was reconstituted as per requirement
o look into the reasons for substantial defaults in the
T of Section 178 of Companies Act, 2013, SEBI and
payment to the debenture holders, shareholders (in case Reserve Bank of India Regulations on January 28, 2016
of non-payment of declared dividends) and creditors. and its terms of references were revised to include
power of erstwhile ESOP Committee of Board of
o review the functioning of the Whistle Blower
T Directors. The ESOP Committee of Board of Directors
mechanism, in case the same exists. was discontinued from January 28, 2016.
o approve the appointment of Chief Financial Officer, if

T Composition, name of members and Chairperson
any. and Attendance during the year of Nomination and
Remuneration Committee:
arrying out any other function as is mentioned in the
C
terms of reference of the Audit Committee. The Nomination and Remuneration Committee met six
times during the year i.e. on 26.05.2016, 27.06.2016,
pproval or any subsequent modification of transactions
A 23.08.2016, 11.11.2016, 21.12.2016 and 23.03.2017.
of the Company with related parties. The Nomination and Remuneration Committee
comprises of:
aluation of undertakings or assets of the Company,
V
wherever it is necessary.
No. of Meetings
Held Attended
John K Paul Chairman Independent Director 6 6
K John Mathew Member Independent Director 6 6
K George John Member Independent Director 6 6
Terms of reference of the Remuneration Committee include Board compared to its current position and make
the following: recommendations to the Board with regard to any
changes;
Identifying persons who are qualified to become
Directors and who may be appointed in Senior lan for the succession planning for directors in the
P
Management in accordance with Criteria as laid down course of its work, taking into account the challenges
and recommend to Board their appointment and and opportunities facing the Company, and what skills
removal. and expertise are therefore needed on the Board in the
future;
nsure persons proposed to be appointed on the Board
E
do not suffer any disqualifications for being appointed as e responsible for identifying and nominating for the
B
a director under the Companies Act, 2013. approval of the Board, candidates to fill board vacancies
as and when they arise;
nsure that the proposed appointees have given their
E
consent in writing to the Company; eep under review the leadership needs of the
K
organization, both executive and non-executive,
eview and carry out every Director’s performance,
R with a view to ensuring the continued ability of the
the structure, size and composition including organization to compete efficiently in the market place;
skills, knowledge and experience required of the and

Annexure- 8
nsure that on appointment to the Board, non-executive

E ny matter which may be relevant to Administration
A
directors receive a formal letter of appointment setting of Employee Stock Option Plans including allotment of
out clearly what is expected of them in terms of shares pursuant to exercise of options from time to time.
committee services and involvement outside board
meetings. Board of Directors of your Company aligns the remuneration
of Directors with the long term interest of the Company and
etermine and agree with the Board the framework for
D its stakeholders. The non-executive Independent Directors
broad policy for criteria for determining qualifications, are paid sitting fees at the rate of ` 10,000 for each of the
positive attitudes and independence of a director Board meeting attended and ` 5,000 for Committee Meeting
and recommend to the Board a policy, relating to attended during the Financial Year under review. There are
remuneration for the Directors, Key Managerial no other pecuniary relationships or transactions by Non-
Personnel and other employees. Executive Directors with the Company.
eview the on-going appropriateness and relevance of

R The Managing Director and Executive Directors of the
the remuneration policy. Company are paid remuneration as per terms of their
appointment. No other remuneration is paid to the
nsure that contractual terms of the agreement that
E Directors. The criteria for payment of remuneration to non-
Company enters into with Directors as part of their executive directors are in accordance with Nomination and
employment in the Company are fair to the individual Remuneration Policy of the Company and they are eligible for
and the Company. commission within limits approved by Shareholders of the
Company. Company have not given any options under ESOP
nsure that all provisions regarding disclosure of
E Plan to any members of Board of Directors.
remuneration and Remuneration Policy as required
under the Companies Act, 2013 or such other acts, Nomination and Remuneration Policy of the Company is
rules, regulations or guidelines are complied with. annexed to Report of Board of Directors. The said policy and
criteria of making payments to Non-Executive Directors is
available at website of the Company at www.muthootfinance.
com/policy/policy-investor.
The sitting fees / remuneration paid to the directors during the Year 2016-17 are given below:
Sitting fees Salary
Commission Shares & Other
S. Name of the for attending Allowances & Total (`
Category Position Paid (` In Convertible
No. Directors meeting (` in Perquisites in Lakhs)
Lakhs) Securities Held
lakhs) (` In lakhs)
M G George Non Independent,
1 Chairman - 880 - 880 46,551,632
Muthoot Executive
George Alexander Non-Independent, Managing
2 - 880 - 880 43,630,900
Muthoot Executive Director
George Jacob Non-Independent, Whole Time
3 - 880 - 880 43,630,900
George Thomas Non-Independent, Whole Time
4 - 880 - 880 43,630,900
Alexander M Non Independent, Whole Time
5 - 60 - 60 6,772,500
George Executive Director
Independent,
6 K John Mathew Director 1.20 - 7 8.20 -
Non – Executive
Independent,
7 John K Paul Director 1.50 - 7 8.50 -
Non – Executive
Independent,
8. K George John Director 1.30 - 7 8.30 -
Non –Executive

Annexure- 8
Independent,
9. George Joseph Director 1.20 - 7 8.20 1,134
Non –Executive
Pamela Anna Independent,
10. Director 0.50 - 7 7.50 -
Mathew Non -Executive
5. STAKEHOLDERS’ RELATIONSHIP i. The Stakeholders’ Relationship Committee

COMMITTEE met four times during the Year on 27.05.2016,
Stakeholders’ Relationship Committee of the Board of 15.07.2016, 15.10.2016 and 13.02.2017. The
Directors looks after Shareholders’/Investors’ Grievance Stakeholders’ Relationship Committee comprises
like redressal of complaints of investors such as transfer of:
or credit of shares, non-receipt of dividend/notices/
annual reports etc.
No. of Meetings
Held Attended
K John Mathew Chairman Independent Director 4 4
John K Paul Member Independent Director 4 4
George Thomas Muthoot Member Whole Time Director 4 4
Terms of reference of the Committee includes the following: ii. The number of complaints received and resolved to
the satisfaction of investors and number of complaints
o approve or otherwise deal with applications for
T pending during the year under review are as under:
transfer, transmission, transposition and mutation of
shares and certificates including duplicate, split, sub- Particulars Equity NCD
division or consolidation of certificates and to deal with
No. of Complaints Received during the year 07 81
all related matters; and also to deal with all the matters
No. of Complaints Resolved during the year 07 81
related to de-materialisation or re-materialisation of
shares, change in the beneficial holders of de-mat shares No. of Complaints pending on March 31, 2017 Nil Nil
and granting of necessary approvals wherever required.
iii. Compliance Officer
o look into and redress shareholders / investors
T
grievances relating to: Mr. Maxin James, Company Secretary of the Company
is the Compliance Officer for complying with the
o Transfer/Transmission of shares requirements of SEBI Regulations.
o Non-receipt of declared dividends 6. GENERAL BODY MEETINGS

i. Details of Annual General Meetings held during
o Non-receipt of annual reports the previous 3 financial years and details of special
businesses, if any, transacted are as under:
o All such complaints directly concerning the
Year 2015-16 2014-15 2013-14
shareholders / investors as stakeholders of the
September 29, September 30, September 25,
Company Date and Time 2016 2015 2014
10.30 AM 10.30 AM 10.30 AM
o Any such matters that may be considered Kerala Fine Arts Kerala Fine Arts
Kerala Fine Arts
necessary in relation to shareholders and investors Society Hall Society Hall
Society Hall
of the Company. Place of Fine Arts Avenue Fine Arts Avenue
Fine Arts Avenue
Meeting Fore shore Road Fore shore Road
Fore shore Road
Cochin – 682 Cochin – 682
Cochin – 682 016
016 016

Annexure- 8
ii. Special Resolutions Passed during the previous 3 Annual iii. Postal ballot:
General Meetings: Details of resolutions passed through Postal ballot during
the year 2016-17:
Date of AGM Details of Special Resolution Passed
1. To re- appoint Mr. John K Paul as Date of Postal Ballot Notice : 11th November, 2016
2. To re- appoint Mr. George Joseph as Voting Period : 19th November, 2016 to
Independent Director 18th December, 2016
September 29, 3. To re- appoint Mr. K George John as
2016 Independent Director Date of Declaration of Results : 20th December, 2016
4. To re- appoint Mr. John K Mathew as
Independent Director As per Section 110 of the Companies Act, 2013 read with
5. Issue of securities under Section 42 of the Act Companies (Management and Administration) Rules, 2014,
on private placement basis five Special resolutions were passed through Postal ballot
September 30, Issue of securities under Section 42 of the Act on during the year. Mr. Thomas Shanti, Practicing Chartered
2015 private placement basis Accountant of M/s. Thomas Shanti & Co. was appointed as the
To borrow monies for the purpose of the business of
Scrutiniser to overview the voting process.
Company under Section 180(1)(c) of the Act
September 25,
2014 The details of voting pattern of special resolutions passed
Issue of securities under Section 42 of the Act on
private placement basis through Postal ballot are as below:
I. Special resolution under Section 13 of the Companies Act, 2013 and the Rules made thereunder for shifting sub-clause
(13) and (15) of Clause III (C) of Other Objects to Clause III (A) of the Main Objects.
Votes casted in favour Votes casted against

Type of Voting No. of Percentage of No. of Percentage of
No. of Votes No. of Votes
shareholders Votes shareholders Votes
Voted by physical ballot 173 1114531 0.31 2 140 0
Voted by electronic mode 310 355014196 99.69 9 925 0
II. Special resolution under Section 13 of the Companies Act, 2013 and the Rules made thereunder for inserting a new sub –
clause under Clause III (A) to carry out mutual fund activities.

III. Special resolution under Section 13 of the Companies Act, 2013 and the Rules made thereunder for inserting a new sub –
clause under Clause III (A) to provide financial services and advisory services.


Annexure- 8
IV. Special resolution under Section 13 of the Companies Act, 2013 and the Rules made thereunder for shifting sub-clause
(10) of Clause III (C) of Other Objects to Clause III (B) of Objects incidental and ancillary to the attainment of main
objects.

V. Special resolution under Section 13 of the Companies Act, 2013 and the Rules made thereunder for deletion of Clause III
(C)(1) to (C ) (15) of Other Objects.

PROCEDURE FOR POSTAL BALLOT: The Scrutinizer submits his report to the Chairman or
The shareholders of the Company have the option to vote Managing Director of the Company after the completion of
either by physical ballot or e-voting. The Postal Ballot Notice the scrutiny and the results are declared accordingly by the
is being sent to the Members whose names appear on the Company within the prescribed time frame.
Register of Members / List of Beneficial Owners maintained
by the depositories as on the cut-off date. The Postal Ballot The Postal Ballot notice, the result and the report of the
Notice is being sent to Members who have registered their scrutiniser is available on the website of the Company www.
email IDs for receipt of documents in electronic form to their muthootfinance.com/investors/notice-investors.
email addresses registered with their Depository Participants
/ the Company’s Registrar and Transfer Agent. For members At present there is no proposal to pass any resolution through
whose email IDs are not registered, physical copies of the Postal Ballot.
Postal Ballot Notice along with Postal Ballot Form are being
sent by permitted mode along with a postage prepaid self- 7. DISCLOSURES
addressed Business Reply Envelope. A. Monitoring of Subsidiary Companies:
Belstar Investment and Finance Private Limited,
In compliance with Regulation 44 of SEBI LODR and Section Muthoot Insurance Brokers Private Limited
108, 110 and other applicable provisions of the Companies Muthoot Homefin (India) Limited and Asia Asset
Act, 2013 read with the Companies (Management and Finance PLC, Colombo, Sri Lanka (AAF), are
Administration) Rules, 2014, your Company has provided the subsidiaries of your Company as on March 31,
facility to the Members to exercise their votes electronically 2017.
and vote on the resolution through the e-voting service facility.
Your Board appointed National Securities Depository Ltd i. Belstar Investment and Finance Private
(NSDL) as agency in respect of remote e-voting for the postal Limited
ballot. The Company also publishes notice in newspapers Belstar Investment and Finance Private
declaring completion of dispatch of postal ballot notice and Limited (BIFPL), is a micro finance
other requirements as specified in the Act and the Rules made Company and has become the subsidiary
thereunder. of the Company during the Financial Year

Annexure- 8
2016-17. BIFPL is a non material subsidiary required to appoint any of its independent
and is not a listed company. No Non Directors as a Director on the Board of
Independent Director of your Company is MHIL. However Mr. K George John,
a director of BIFPL. The Company is not Independent Director of your Company
required to appoint any of its independent was appointed as Independent Director
Directors as a Director on the Board of of MHIL. The financials in particular, the
BIFPL. The financials in particular, the investments made by MHIL are reviewed by
investments made by BIFPL are reviewed by the Audit Committee. All minutes, financial
the Audit Committee. All minutes, financial statements, significant transactions of MHIL
statements, significant transactions of BIFPL are available to Board of Directors of your
are available to Board of Directors of your Company.
Company.
iv. Asia Asset Finance PLC
ii. Muthoot Insurance Brokers Private AAF is listed in Colombo Stock Exchange,
Limited Sri Lanka. The said subsidiary is non
Muthoot Insurance Brokers Private Limited material subsidiary and is not listed in
(MIBPL), is an IRDA registered insurance India for the purpose of SEBI LODR. AAF
direct broker and has become the wholly is managed by its Board of Directors. Your
owned subsidiary of the Company during Company is not required to appoint any
the Financial Year 2016-17. MIBPL is a of its Independent Director as a Director
non- material subsidiary and is not a listed on the Board of AAF. The financials, in
Company. Mr. George Alexander Muthoot, particular, the investments made by AAF
who is the Managing Director of the are reviewed by the Audit Committee. All
Company, Mr. George Jacob Muthoot and minutes, financial statements, significant
Mr. Alexander M George, who are Whole- transactions of AAF are available to Board of
time Directors of your Company are also Directors of your Company.
Non Executive Non Independent Directors
in MIBPL. Your Company is not required The Policy for determining material
to appoint any of its Independent Directors subsidiary is available at website of the
as a Director on the Board of MIBPL. The Company at www.muthootfinance.com/
financials in particular, the investments policy/policy-investor.
made by MIBPL are reviewed by the
Audit Committee. All minutes, financial B. Related Party Transaction
statements, significant transactions of All transactions or arrangements with related
MIBPL are available to Board of Directors of parties referred to in Section 188 (1) of the Act,
your Company. entered into during the year were on arm’s length
basis or were in ordinary course of business
iii. Muthoot Homefin (India) Limited or with approval of the Audit Committee. The
Muthoot Homefin (India) Limited (MHIL) Board has formulated a policy on related party
is a registered housing finance Company transactions, which is displayed on the web site of
with National Housing Bank. MHIL is a the Company at www.muthootfinance.com/policy/
non material subsidiary and is not a listed policy-investor. During the year, the Company
Company. Mr. George Alexander Muthoot, had not entered into any contract / arrangement
Managing Director, Mr. M G George Muthoot / transaction with related parties which could be
and Mr. George Thomas Muthoot who are considered material in accordance with the policy
Whole Time Directors of your Company of the Company on materiality of related party
are Non Executive Non Independent transactions. Unanimous approvals granted by
Directors in MHIL. The Company is not Audit Committee are for transactions which are

Annexure- 8
of repetitive nature and are in compliance of SEBI The whistle blower policy is available at website of
LODR. the Company at www.muthootfinance.com/policy/
policy-investor.
In the opinion of the Board of Directors, none
of the transactions of the Company entered into F. Code of Conduct
with the related parties were in conflict with the All the members of the Board and Senior
interests of the Company. Further, there were no Management personnel have affirmed compliance
material related party transactions which required with the Code of Conduct. A declaration to
approval of shareholders as required under SEBI this effect by the Managing Director is given as
LODR. Annexure A to this report. The Code is displayed
on the web site of the Company at www.
The details of the related party transactions are muthootfinance.com/policy/policy-investor.
disclosed in notes on accounts, forming part of
Financial Statements. The stakeholders may G. CEO/CFO Certification
kindly refer to the same. The Managing Director and CFO have certified
to the Board in accordance with SEBI LODR
C. Proceeds of the Public issue pertaining to the CEO/CFO Certification for the
Money raised through Public Issue of Equity financial year ended March 31, 2017. The same is
Shares as well as Public Issues of Secured Non- annexed as Annexure B to this report.
Convertible Debentures have been utilized for
the purposes, as disclosed in the Prospectuses, H. Certificate of Corporate Governance
for which it was raised and there has been no The certificate received from the Statutory
deviation as on date in the utilisation of the Auditors of the Company, M/s Rangamani &
moneys so raised. Co., Chartered Accountants (FRN: 003050S),
confirming compliance with the conditions of
D. Details of Non Compliance, Penalties Corporate Governance as stipulated under SEBI
and Strictures imposed LODR, is annexed as Annexure C to this report.
There were no instances of non-compliance
by the Company, penalties, strictures imposed I. General Disclosures
on the Company by Stock Exchanges or SEBI Board of Directors of your Company periodically
or any other statutory authority on any matter discuss, review and decides upon matters related
related to Capital Market during the last three to policy formulations, appraisal of performances,
financial years. Company has been regular in overall supervision and control of your Company,
filing necessary returns with regulators and all review to Compliance Reports pertaining to
necessary informations with the Stock Exchanges compliance of all laws prepared by management
where the shares are listed. etc. Board of Directors of your Company have also
delegated various powers to Committees which
E. Whistle Blower Policy & Vigil monitors day to day activities of your Company.
Mechanism Notice and Agendas setting out the business to be
Your Company has formulated a Whistle Blower transacted are being sent to Directors in advance
Policy in compliance with Companies Act, 2013 by complying necessary regulations in this regard.
and SEBI LODR as part of vigil mechanism of the In some instances, documents which are primarily
Company. There is graded reporting structure price sensitive information are tabled at meetings
under the Policy and also provides provision for and presentations are also made by Senior
direct access to Chairman of Audit Committee. Executives on matters related to them in Board
Board of Directors affirms that no personnel have as well as Committee meetings. Your Company
been denied access to the audit committee. also have suitable policies on Code of Conduct
for Directors and Senior Management, Code

Annexure- 8
of conduct of Independent Directors, plans for As required under SEBI LODR particulars of Directors
succession of Board of Directors. Your Company seeking re-appointment at the forthcoming Annual
has complied with Corporate Governance General Meeting are given in the Annexure to the Notice
requirements specified in Regulation 17 to 27 of the AGM to be held on September 20, 2017.
and clauses (b) to (i) of sub regulation (2) of
Regulation 46 of SEBI LODR. c. Financial Year : April 01, 2016 to
March 31, 2017
8. MEANS OF COMMUNICATION
The quarterly, half yearly and annual results were d. Date of book closure : September 14,
published in leading national dailies and regional 2017 to September
dailies. The Company is also maintaining a functional 20, 2017 (both days
website www.muthootfinance.com, wherein all the inclusive)
communications are updated including the quarterly
financial results of the Company. Presentations made to e. Dividend Payout Date : Not Applicable
the institutional investors and analysts after declaration
of the quarterly results are also displayed in the web f. Listing of Securities : BSE Limited
site of the Company. The Annual reports containing the Floor 25, P. J
Audited Annual Accounts, Auditors’ Reports, Directors’ Towers, Dalal Street
Report, the Management Discussion and Analysis Report Mumbai – 400 001
forming part of Directors’ Report and other material &
information are circulated to the members and others National Stock
entitled thereto. Annual Reports of the Company are Exchange of India
emailed to all shareholders who have provided their Limited
email IDs in the records of the Depository. All the Exchange Plaza,
disclosures and communications to be filed with the Bandra Kurla
Stock Exchanges were submitted through e-filing Complex,
platform/email and there were no instances of non Bandra (E),
compliances. Mumbai – 400 051
9. GENERAL SHAREHOLDER g. Stock Code/Symbol/ISIN of Equity

INFORMATION Shares
a. Company Registration Details BSE : 533398
The Company is registered in the state of Kerala, NSE : MUTHOOTFIN
India. The Corporate Identity Number (CIN) ISIN : INE414G01012
allotted to the Company by the Ministry of
Corporate Affairs is L65910KL1997PLC011300. h. Listing Fees and Depository Fees
The Company being Systemically Important Non- Annual Listing Fees and Annual Custody/Issuer
Deposit Taking NBFC is registered with Reserve Fee for the financial year have been paid to Stock
Bank of India. Exchanges and Depositories respectively.
b. Annual General Meeting i. Stock market price data (in ` Per

Date : September 20, 2017 share)
Time : 10:30 A M High, Low (based on closing prices) and number
Venue : Kerala Fine Arts Society Hall of shares traded during each month in the year
Fine Arts Avenue 2016-17 on National Stock Exchange of India
Fore shore Road Limited and BSE Limited:
Cochin – 682 016

Annexure- 8
National Stock Exchange BSE Limited m. Distribution of Shareholding as on

Month March 31, 2017
High Price Low Price High Price Low Price
Category No. of Shares %
April 213.45 175.50 213.50 175.50
Promoters and Promoter Group
May 238.50 188.55 238.85 186.00 2,944,63,872 73.71
Holding
Jun 296.00 232.70 294.85 232.95 Foreign Institutional Investors 5,034,156 1.26
Jul 340.00 266.50 340.00 263.00 Mutual Funds 32,347,346 8.10
Aug 406.80 323.50 405.35 323.40 Foreign Portfolio Investors(Corporate) 49,113,574 12.29
Sep 388.90 330.20 387.00 331.35 Other Bodies Corporate 3,863,238 0.97
Oct 377.35 334.15 376.90 335.00 Others including Public 14,653,363 3.67
Nov 373.80 280.00 373.50 280.00 Total 399,475,549 100
Dec 307.55 262.00 307.65 261.05
Jan 330.00 281.15 329.80 270.10
n. Shareholding pattern by size as on
Feb 364.60 307.00 364.30 291.90
March 31, 2017
Mar 389.95 325.00 389.90 326.65
Category No. of % of Total
Shares
(Shares) Shareholders Shares
j. Performance of the share price in 1 – 500 37,560 3,292,807 0.8243
comparison (based on closing prices) 501 – 1000 1,310 992,153 0.2484
to broad based indices – BSE Sensex 1001 – 2000 608 887,639 0.2222
and NSE Nifty during financial year 2001 – 3000 201 506,611 0.1268
2016-17
3001 – 4000 92 331,363 0.0829
BSE (% Change) NSE (% Change)
4001 – 5000 79 368,199 0.0922
Muthoot S&P Muthoot CNX Nifty
Period 5001 – 10000 116 847,604 0.2122
Finance Sensex Finance 50
10001 and above 307 392,249,173 98.1910
FY
107.41% 16.88% 106.40% 18.55%
2016-17 Grand Total 40,273 399,475,549 100.00
k. Registrars and Transfer Agent o. Top ten Equity Shareholders of the

Link Intime India Private Limited Company as on March 31, 2017
Surya, 35, Mayflower Avenue Sl. Number of Percentage
Name of Share Holders
Behind Senthil Nagar No. Shares (%)
Sowripalayam Road, 1 M G George Muthoot 46,551,632 11.6232
Coimbatore – 641028 2 George Alexander Muthoot 43,630,900 10.9220
Tel: + 91 422 – 2314792, 2315792 3 George Jacob Muthoot 43,630,900 10.9220
Fax: + 91 422 - 2314792
4 George Thomas Muthoot 43,630,900 10.9220
E – Mail: [email protected]
5 Susan Thomas 29,985,068 7.5061
Contact Person: S Dhanalakshmi
6 George M Jacob 15,050,000 3.7674
l. Share transfer system 7 Elizabeth Jacob 14,935,068 3.7387
The share transfer applications received in physical 8 Anna Alexander 14,935,068 3.7387
form are processed and share certificates returned 9 Sara George 13,519,336 3.3843
within a period of 15 days from the date of
10 Eapen Alexander 7,525,000 1.8837
receipt, subject to the documents being valid and
complete in all respects.

Annexure- 8
p. Equity Shares in the Suspense Account t. Commodity price risk or foreign

Details in respect of equity shares* lying in the exchange risk and hedging activities:
Suspense Account which were issued in the Initial The Company do not have any outstanding foreign
Public Offering of Equity Shares of the Company: exchange exposure as on March 31, 2017 other
than investment made in its subsidiary M/s. Asia
Sl. No. Description No. of Shares Asset Finance PLC, Sri Lanka. The Company
Number of shareholders and follows accounting policy as stated under note
442 Shares for 4
1 outstanding shares in the suspense no. 2.6 ‘Foreign Exchange Transactions’ and note
Investors
account as on 01.04.2016 no. 2.9 ‘Investments’ in notes on accounts with
Number of shareholders who respect to accounting of the same.
approached for transfer of shares from
2 1 shareholder
suspense account during the period
The primary business of the Company is lending
01.04.2016 to 31.03.2017
Number of shareholders to whom against gold ornaments. Risk arising out of
shares were transferred from suspense 134 shares for 1 fluctuations in gold prices is mitigated through
3
account during the period 01.04.2016 Investor Risk Management systems which are briefly stated
to 31.03.2017 under the head ‘Risk Management’ in Management
Number of shareholders and Discussion and Analysis section of this Annual
308 Shares for 3
4 outstanding shares in the suspense
Investors Report.
account as on 31.03.2017
u. Address for Correspondence

* Voting rights in respect of these shares shall remain frozen till Muthoot Finance Limited
the rightful owners of such shares claims the shares. 2nd Floor, Muthoot Chambers
Opposite Saritha Theatre Complex
q. Dematerialization of shares Banerji Road
The Company has arrangements with both Kochi 682 018
National Securities Depositories Limited (NSDL) Kerala, India
and Central Depository Services (India) Limited Tel: (91 484) 239 4712
(CDSL) to establish electronic connectivity of our Fax: (91 484) 239 6506
shares for scripless trading. 99.99 % of shares of Website: www.muthootfinance.com
the Company were held in dematerialized form as Email: [email protected]
on March 31, 2017.
10. ADOPTION OF MANDATORY AND NON-
r. Outstanding Global Depository MANDATORY REQUIREMENTS OF PART
receipts or American Depository E OF SCHEDULE II OF SEBI LODR:
receipts or warrants or any convertible Your Company has complied with all mandatory
instruments, conversion date and requirements as stipulated in SEBI LODR and fulfilled
likely impact on equity: the following non – mandatory requirements:
Not Applicable.
The Report of the Auditor on financial statement doesn’t
s. Branch locations: contain any qualification. The position of Chairman and
Company has 4,285 branches as on June 30, Managing Directors are held by different individuals and
2017. The details of locations are available in Internal Auditor of the Company directly reports to the
Company’s website at: www.muthootfinance.com/ Audit Committee of the Board of the Company.
contact/branch_locator#branchLocator.

Annexure- A
DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR

MANAGEMENT PERSONNEL WITH THE COMPANY’S CODE OF CONDUCT
I hereby confirm that the Company has obtained from all the members of the Board and designated senior management
employees of the Company affirmation that they have complied with “Code of Conduct for Board Members and Senior
Management” (“Code”) of the Company for the year ended March 31, 2017.

Place : Kochi Managing Director
Date : 18th May, 2017
Annexure- B
CEO / CFO CERTIFICATION

To
The Board of Directors
Kochi - 18
We, George Alexander Muthoot, Managing Director and Oommen K Mammen, Chief Financial Officer of Muthoot Finance
Limited to the best of our knowledge and belief, certify that:
A. We have reviewed financial statements and the cash flow statement for the year ended on March 31, 2017 and that to the
best of our knowledge and belief:
(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(2) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
B. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s code of conduct.
C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have
disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of
which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
D. We have indicated to the auditors and the Audit committee;

(1) significant changes in internal control over financial reporting during the year;
(2) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements; and
(3) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the Company’s internal control system over financial
reporting.
Place : Kochi George Alexander Muthoot Oommen K Mammen

Date : 18th May, 2017 Managing director Chief Financial Officer

Annexure- C
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To
The Members of Muthoot Finance Limited
We have examined the compliance of conditions of Corporate Governance by Muthoot Finance Limited (‘the Company’) for
the year ended 31st March 2017, as per Regulations 17-27, clauses (b) to (i) of Regulation 46(2) and paragraphs C, D and E of
Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(‘Listing Regulations’).
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited
to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
We conducted our examination in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised
2016) issued by the Institute of Chartered Accountants of India. The Guidance Note requires that we comply with the ethical
requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India. We have complied with the
relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and
Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
In our opinion, and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as specified in Regulations 17 to 27, clauses (b) to (i) of sub-regulation
(2) of Regulation 46 and paragraphs C, D and E of Schedule V of the Listing Regulations, as applicable.
We state that such compliance is neither an assurance as to the future viability of the Company nor as to the efficiency or
effectiveness with which the Management has conducted the affairs of the Company.
For Rangamani & Co.

Chartered Accountants
(FRN: 003050 S)
Place : Kochi R. Sreenivasan

Date : 18th May, 2017 Partner
Membership No.: 020566

Management Discussion and Analysis
Annexure- 9

GLOBAL ECONOMY 2015 2016 2017 (P) 2018 (P)
The world economic growth rate remained subdued at 3.1% Japan 1.2 1.0 1.2 0.6
in 2016 characterized by an imminent productivity growth United Kingdom 2.2 1.8 2.0 1.5
crisis. This was largely due to weak international trade and Other Advanced
2.0 2.2 2.3 2.4
subdued investment coupled with socio-political turbulences Economies*
in the world markets during the first half of the year. Brexit, Emerging and
4.1 4.1 4.5 4.8
China’s slowdown, low oil prices and overall economic Developing Economies
weakness in Japan, the US and Europe were primarily China 6.9 6.7 6.6 6.2
responsible for slow economic growth.
P: Projections *(Excludes the G7 - Canada, France, Germany,
Besides, the recovery of global economy was weighed down Italy, Japan, United Kingdom, United States and euro area
by spillover effects of Brexit and uncertain trade policies of the countries) (Source: International Monetary Fund)
new White House regime; both of which led to unpredictable
policies cautioning investors. The private investments were INDIAN ECONOMY
further dampened due to the shrink in the US Federal Reserve India continues to be one of the fastest growing major
purse. economies in the world, reporting a robust GDP growth of
7.2% in FY 2016-17. The domestic economy has sustained a
Advanced economies like US, UK, Europe, Japan and others macroeconomic environment of relatively lower inflation, fiscal
envision a stronger rebound. Post the US election, dollar discipline and a moderate current account deficit coupled with
strengthening and higher US treasury interest rates have led a broadly stable rupee dollar exchange rate.
to significant gains in equity markets in advanced economies.
The growth rate of these economies is anticipated to rise from In Q3 of 2016-17, the Government of India announced
an estimated 1.7 percent in 2016 to 2.0 percent in 2017 and withdrawal of the country’s two highest value notes.
2.0 percent in 2018. However, weak productivity growth and The strategy was aimed towards restricting corruption,
high-income inequality are persisting problems that needs to counterfeiting, terrorist activities and accumulation of
be exterminated. black money. Eventually ‘demonetisation’ is likely to have
an encouraging influence in the future with improved tax
As per IMF, the emerging market and developed economies obedience, digitalisation and formal channelisation of the
(EMDEs) have shown moderate economic performance. savings system.
Receding obstacles to activity in commodity exporters and
growing domestic demand in commodity importers, EMDEs The Goods and Services Tax (GST) bill has come into effect
are expected to pick up growth in 2017. The emerging in July 2017. GST is expected to bolster the economy
markets are expecting a mounting growth rate of 4.1 percent with a simplified indirect tax system, and more competitive
in 2016 to 4.5 percent in 2017 and 4.8 percent in 2018. and transparent markets. Moreover, it will consolidate the
However, weak investment and low productivity growth are fragmented Indian market under uniform taxation, widening
hurdles for the medium-term prospects across many EMDEs. the tax net. GST is expected to contribute significantly to
India’s GDP growth, going forward.
GLOBAL GDP GROWTH TREND (%)
2015 2016 2017 (P) 2018 (P) India’s GDP is likely to reach 7.4% in FY 2017-18, as a
result of rebound in consumption demand, which had
World Output 3.2 3.1 3.4 3.6
slackened post demonetisation. A normal monsoon is
Advanced Economies 2.1 1.7 2.0 2.0
expected to strengthen agricultural incomes stimulating rural
United States 2.6 1.6 2.3 2.5 consumption. Likewise, softer interest rates driven by RBI will
Euro Area 2.0 1.7 1.7 1.6 encourage overall demand in the market. These are expected

Annexure- 9
to culminate into a benign inflation supported by on-going better product lines, lower cost, wider and effective reach,
remonetisation and past policy reforms. strong risk management capabilities, control on bad debts, and
better understanding of their customer segment.
India’s GDP growth (%)
NBFCs are now able to fill the service gap of traditional banks
2015-16 2016-17 2017-18
and cater to the credit demands of an evolving India. They
6.8 7.2 7.7
have surpassed their traditional strongholds of passenger
and commercial vehicle finance to build substantial assets
GOVERNMENT INITIATIVES under management (AUM) in the personal loan and housing
(Source: PwC Union budget Publication 2017-18) finance segment. Their credit is expected to grow at a healthy
rate of 7–10% (real growth rate) over the next five years
The Government initiatives as outlined in the Union Budget due to improving macroeconomic conditions, higher credit
2016-17 were directed towards building greater transparency penetration, increasing consumption and disruptive digital
and bringing corrective actions for various sectors , some of trends.
which are as below:
(Source: Assocham India, PwC)
• The liberalisation in the foreign direct investment (FDI)
policy, resulted in almost 90% of proposals falling under Figure 1 : Credit Growth at NBFCs as a % of total credit
the automatic route. The FDI inflows were positively
(%)
impacted as it increased from $350 billion to $361
20.9
billion over 2015-16. 25.0
19.0
18.2
17.3
17.0
15.9
20.0
15.7
14.9
14.3
13.9
13.0
13.0
• The limit of loans that the government guarantees to

15.0
micro, small and medium enterprises was doubled
to `2 crore. In addition, the cash credit limit to these 10.0
businesses was raised from 20% to 25%. As for senior 5.0
citizens, a minimum of 8% interest will be paid to them 0.0
on deposits of up to `7.5 lakh made for 10 years. 2015 2016E 2017E 2018E 2019E 2020E
7 CAGR 10 CAGR
• Listing and trading of Security Receipts issued by a
securitization company or a reconstruction company
will be permitted on stock exchanges registered under Way forward
the Security Exchange Board of India (SEBI). This will
enhance capital flows into the securitisation industry • The launch of government-backed schemes (such as the
and effectively deal with bank’s non-performing assets. Pradhan Mantri Jan-Dhan Yojana [PMJDY]), will see a
substantial increase in the number of bank accounts
• Non-banking finance companies (NBFCs) above a
certain net worth will be categorised as qualified • Focused approach of industry bodies such as the
institutional buyers (QIBs) by SEBI. This will help National Payments Corporation of India (NCPI) will
strengthen and channelise investments for the initial further boost the payments ecosystem by launching
public offering (IPO) market. the Unified Payment Interface (UPI) and Bharat Bill
Payments System
NBFCS IN INDIA
The NBFC sector in India is considered to be one of the • Higher disposable incomes corroborated by increased
systemically important components of the financial system. It effectiveness of government schemes and the 7th Pay
has shown consistent year-on-year growth despite undergoing Commission will deliver high growth for the consumer
several transformations. NBFCs contribution to the economy finance segment
has grown considerably and can be clearly attributed to their

Annexure- 9
• Due to increased digital consumption, NBFCs will find Declining interest rates and introduction of beneficial schemes
emerging ways to serve customers through creative for the customers will act as a catalyst to the growing demand
digital platforms in gold loan sector. NBFCs in gold loan market
GOLD STRENGTHS
GOLD DEMAND IN INDIA CORE FOCUS
Gold is popular in Indian households due to its cultural and The primary focus of the gold loan NBFCs is to provide gold
investment utilities. People in India make investment in gold loans. Thus, NBFCs can concentrate largely on enhancing
in expectation of high returns and other considerations such customer experience through better and faster customer
as adornment, consumption and liquidity. Weddings being service. A higher focus on one product allows proper
a key occasion for buying gold in India, the demand for gold structuring of the offerings and adopts faster corrective
are favourable. Bars and coins are also considered a safe measures to meet the changing behavioural needs of the
investment and though jewellerry is the preferred savings customer.
vehicle. Also, it is observed that income levels are the most
significant long-term determinants of consumer gold demand. BRANCH NETWORK
Branches play a significant role in building an institution’s
Valued at over USD 800bn, India’s gold stocks are around brand image. A wide network of branches enables NBFCs to
24,000 tonnes. Southern India has the highest market work closely with the customers. Customers prefer service
share for gold demand of 40%, Western India at 25% and providers based on location and easy access to branches. This
Northern and Eastern India have 20% and 15% of the market expansion strategy by NBFCs led to significant customer
share respectively. India’s gold industry is becoming more addition.
organized as retailers with large regional and national chains
are gaining market share. These firms with refined inventory FASTER TURNAROUND TIME
management, well-designed advertising campaigns will be Customer loyalty can be achieved through providing superior
important in meeting modern consumers’ demands. Over the service to the customers. It is important in this industry to
long-run, economic growth is considered to be the main driver maintain strong relationships with the customers. Gold loans
of India’s gold demand. (World Gold Council: Press release) also enjoy an advantage of having a quick-turnaround time at
NBFCs.
GOLD LOAN SECTOR
The first two quarters of FY17 brought optimism to the TRANSPARENT AND STANDARD
sector, as Specialised Gold Loan NBFCs registered a growth OPERATING PRACTICES
of 11-13% during this period. The total gold loan portfolio NBFCs focus on providing enhanced customer comfort. They
of NBFCs is estimated to have crossed ` 55,000 crore as on achieve this by offering transparent transactions, capturing
quarter ending September 2016, up from ` 49,700 crore as on all the terms clearly in the loan document and operating with
year ending March 2016. The repercussions of demonetisation standard operating procedures.
brought a jolting effect to the sector and suffered volume de-
growth during the third quarter of FY17. However, the market FLEXIBLE REPAYMENT OPTION
is recovering and is expected to achieve a 7-10% growth on an Customers get a trouble-free loan period where he is not
annualized basis. troubled for any payment of equated monthly installment
rather would be allowed to make payment of interest and
The southern states of Tamil Nadu, Kerala, Andhra Pradesh, principal on closure of the loan.
and Telangana and Karnataka have been the traditional hub
of gold and gold lending market in India. With the improving RESOURCES AVAILABILITY
economy, other states such as Maharashtra, Uttar Pradesh, NBFCs have access to organised credit and hence do not
Gujarat, Rajasthan, West Bengal and Madhya Pradesh are face any constraint. The unorganised sector operates on
emerging as large markets in terms of gold holdings. proprietary funds, which limits its ability to lend and on better
terms.

Annexure- 9
HASSLE FREE DOCUMENTATION services, travel services and ATM services, SME finance,
Since security is gold ornament which is a movable asset , housing finance, working capital loans among others.
documentation process is easier unlike availment of a loan
from financial institutions/banks on the security of land/ INDUSTRY THREATS
building which is a cumbersome process. Competition
Banks which have significant advantage in terms of cost of
CUSTOMER VALUE funds can impose threat to gold loan to the NBFCs by offering
Customers expect to pay an appropriate price for the services it lower interest rates. Further, the unorganised sector , for
they receive, not necessarily the lowest. The quality of which no data is available on its market size , can remain
services rendered determines the loyalty of customers to catering to their niche customers.
the service provider. NBFCs abide by this philosophy and
have been offering loans at rates of interest lower than the Fall in collateral value
unorganised segment for maximum retention of its customers. Though several risk management mechanism is in place to
meet the eventualities of fall in collateral value i.e. fall in gold
LOW-COST STRUCTURE price, a steep decline in value and it remaining at those levels
NBFCs have built minimum investment network and simultaneously borrowers losing sentimental attachment
corresponding to the potential of business in which it towards the collateral, can pose a threat to the business.
operates. Employees are sourced locally and are trained to
deliver performance keeping the operating cost low. This Adverse regulatory changes
has enabled NBFCs to reach the break-even level faster and Despite adequate regulations framed for regulating the sector,
contribute to the bottom line. This also provides downside any future developments necessitating framing of additional
protection in terms of closing down the operation in case regulatory framework, can adversely affect the growth and
desired level of business is not achieved. sustainability of this sector.
POTENTIAL FOR THE GOLD LOAN Alternative loan products

INDUSTRY Growth of this sector is primarily based on availability of gold
Unexploited market jewellery with the borrowers and his willingness to pledge.
An average gold holding per household is indicative of market Popularisation and availability of other loan products like
attractiveness in terms of potential ticket size and propensity personal loan, loan against property and home loan, among
to borrow against gold. Higher gold holdings are indicative others can reduce the demand for gold loan.
of higher investment demand, prosperity and availability of
sizeable gold holdings to borrow against. Earlier, people used to Industry outlook
deal with the unorganised sector. But now, they are becoming The future prospects of the gold loan industry looks promising
more safety conscious and aware. To tap this opportunity, and the credit demand is expected to rise. The gold loan
aggressive network expansion by NBFCs on a pan-India basis, market is projected to grow between 13-15% over the next
enabled the product to reach the masses and thereby widened three years from FY17-20 and reach a market size of ` 2,100-
the customer base. NBFCs having core focus invested in 2,250 billion by FY20. A consistent regulatory regime for
infrastructure thereby building service quality. Customers specialised gold loan NBFCs, a reduced but sustained focus
found comfort and confidence in their transparent practices of commercial banks in the sector, successful geographical
and started shifting their loyalties from the unorganised sector expansion of gold loans market to non-south geographies, and
to the organised sector. Further, the industry is expanding its attractive risk-adjusted returns on gold loans are opportunistic
presence in the untapped non-south geographies of India. factors for the future growth of the industry. Going forward,
we expect the market share of gold loan NBFCs to increase
DIVERSIFICATION OF BUSINESS steadily for the next two years.
To manage the risk of concentration, specialised gold loan
NBFCs are expanding in other business segments. Leading Muthoot Finance Limited
financiers are venturing into multiple financial services such Muthoot Finance Limited is the flagship Company of the
as insurance, foreign exchange, money transfer, PAN card Muthoot Group, which has pioneered the concept of gold
banking in the country. We are a ‘Systematically Important

Annexure- 9
Non deposit taking NBFC’, listed on the country’s premier 1. Operational risk
stock exchanges, namely BSE and NSE. We have emerged as The risk of direct or indirect loss due to the failure of
a leader in gold loan business and have a network of 4,307 systems, people or processes, or due to external events
branches all over India. It has become a trusted pan-India is broadly defined as operational risk. We have started
name in the gold loan business providing financial assistance installing offsite surveillance cameras in our branches,
to the needy on reasonable and convenient conditions. and intend to implement this across the branch
network. We have installed centralised monitoring and
FINANCIAL PERFORMANCE REVIEW surveillance cameras in almost all branches across India.
Gross loan assets under management We have instituted a series of checks and balances,
Our loan portfolio increased by ` 2899 Crores during FY 17, including an operating manual, and both internal and
a net growth of 12%, to ` 27278 Crores from ` 24379 Crores external audit reviews. Although, the disbursements of
in FY 16. loans are very quick, a well-defined appraisal method
as well as KYC compliance procedure exists to mitigate
Average gold loan outstanding per branch the risk involved in the business. Furthermore, we train
Our average gold loan outstanding per branch increased from existing and new employees in appraisal skills, customer
`5.69 Crores in FY 16 to `6.32 Crores in FY 17 on account relations, communication skills and risk management
of increase in gold loan portfolio. procedures. We also periodically update its employees
with the latest developments to mitigate risks against
Revenues frauds, cheating and unauthentic gold and strengthen
Our revenues grew by 18% from ` 4875 Crores in FY 16 to their gold assessment skills. Internal audit department
` 5747 Crores in FY 17. and centralised monitoring systems assist in the overall
management of operational risk.
Profit before tax
Our profit before tax rose by 46%, from ` 1317 Crores in 2. Collateral risk
FY 16 to ` 1921 Crores in FY 17. The fluctuation in gold prices resulting in downward
gold price gives birth to collateral risk. This risk is in
Profit after tax part alleviated by retention of at least 25% margin on
Muthoot Finance’s profit after tax increased by 46% at ` 1180 the value of jewellery for the purpose of calculation
Crores in FY 17 from ` 810Crores in FY 16. of the loan amount. Further, risk is reduced because
the price of gold jewellery is higher given that the
Capital adequacy ratio production costs, design cost and the gemstones
Our capital adequacy ratio increased from 24.48% in FY 16 to associated with making the item is not considered for
24.88% in FY 17 with Tier I capital of 21.78%, on account of arriving at the value of jewellery for the calculation of
ploughing back of profit for the year net of dividend payment. the loan amount. We appraise the jewellery collateral
solely based on the weight of its gold content, excluding
Earnings per share (EPS) weight and value of the stone studded in the jewellery.
Earnings per share increased to ` 29.56 in FY 17 from In addition, the sentimental value of gold jewellery to
` 20.34 in FY 16 on account of higher profits generated the customers may induce repayment and redemption
during the year. of the collateral even if the value of the collateral falls
below the repayment amount.
RISK MANAGEMENT
During the course of the business, we are exposed to various 3. Credit risk
risks. The objective of risk management systems is to Failure of any counterparty to abide by the terms and
measure and monitor the various risks that we are subjected conditions of any financial contract with us gives rise
to and implement policies and procedures to address these. to credit risk. We aim to reduce credit risk through a
We continue to improve our operating processes and risk rigorous loan approval and collateral appraisal process, as
management systems that will further enhance our ability to
manage these risks.

Annexure- 9
well as a strong NPA monitoring and collection strategy. are used by customers in various industries, resulting
This risk is diminished because the gold jewellery used in trade cycles having limited impact on our business.
as collateral for loans can be readily liquidated, and Furthermore, the geographic spread of branches
there is only a remote possibility of recovering less than will allow us to mitigate the cyclical pressures in the
the amount due because of adequate collateral being economic growth of different regions
available.
ADEQUACY OF INTERNAL SYSTEMS
4. Market risk Our internal control procedures are commensurate with
Market risk refers to potential losses arising from the the size and nature of our business. These controls ensure
movement in market values of interest rates in our business. optimum use and protection of the resources and compliance
The objective of market risk management is to avoid excessive with the policies, procedures and statutes. The internal
exposure to the volatility inherent in financial instruments. control systems provide for well-defined policies, guidelines
Our majority borrowings, and all the loans and advances are at authorisations and approval procedures. The operation
fixed rates of interest. This minimises our interest rate risk. and monitoring of internal control systems is entrusted
to employees who possess the necessary skills, technical
5. Liquidity risk knowledge, understanding of the Company, industry and
Liquidity risk is the risk of being unable to raise funds markets in which it operates. We ensure that the recorded
from the market at optimal costs to meet operational data is reliable to prepare financial information and maintain
and debt servicing requirements. The purpose of accountability of assets.
liquidity management is to ensure sufficient cash flow
to meet all financial commitments and to capitalise CAUTIONARY STATEMENTS
on opportunities for business expansion. An Asset and Statements in this Management Discussion and Analysis
Liabilities Committee (“ALCO”) meeting is held regularly describing the Company’s objectives, projections, estimates
to review the liquidity position based on future cash and expectations may be ‘forward looking statements’ within
flow. In addition, we also track the potential impact of the meaning of applicable laws and regulations. Important
prepayment of loans at a realistic estimate of its near developments that could affect the Company’s operations
to medium-term liquidity position. The nature of our include a downtrend in the financial services industry —global
business is such that source of funds, primarily proceeds or domestic or both, significant changes in the political and
from issue of debentures and bank loan, has longer economic environment in India or key markets abroad, tax
maturities than the loans and advances given resulting in laws, litigation, labour relations, exchange rate fluctuations,
low liquidity risk in its operations. interest and other factors. Actual results might differ
substantially or materially from those expressed or implied.
6. Business cycle risk
Business cycle risk is the risk associated with the This report should be read in conjunction with the financial
seasonal or cyclical nature of a business. As customers statements included herein and the notes thereto.
include both individuals and businesses, loan products

Annexure- 10
KSR/CBE/M154/468/2017-2018
The Members,
Muthoot Chambers, Opposite Saritha Theatre Complex,
2nd Floor, Banerji Road,
Kochi – 682 018.
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express
an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices we followed, provide a reasonable basis for
our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Our audit under NBFC Regulations listed in our report is limited to verification of registration, licenses, approvals and filing
of forms and returns under NBFC Regulations, corporate governance requirements and also the related Board Process
thereto.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the company.
Date: August 04, 2017 For KSR & Co Company Secretaries LLP
Place: Coimbatore C.V.Madhusudhanan
Partner
(FCS: 5367; CP: 4408)

Annexure- 10
Secretarial Audit Report

(Pursuant to Section 204(1) of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014
For the Financial Year ended 31st March, 2017
To (iv) The Foreign Exchange Management Act, 1999 and the

The Members, Rules and Regulations made there under to the extent of
Muthoot Finance Limited Foreign Direct Investment, Overseas Direct Investment
Muthoot Chambers, Opposite Saritha Theatre Complex, and External Commercial Borrowings.
2nd Floor, Banerji Road,
Kochi – 682 018. (v) The following Regulations and Guidelines prescribed
under Securities and Exchange Board of India Act, 1992:
We have conducted the Secretarial Audit of the compliance
of applicable statutory provisions and the adherence to good a. The Securities and Exchange Board of India
corporate practices by Muthoot Finance Limited (hereinafter (Substantial Acquisition of Shares and Takeovers)
called “the Company”). Secretarial Audit was conducted for Regulations, 2011
the financial year ended on 31st March, 2017 in a manner
that provided us reasonable basis for evaluating the corporate b. The Securities and Exchange Board of India
conduct / statutory compliances and expressing our opinion (Prohibition of Insider Trading) Regulations, 2015
thereon.
c. The Securities and Exchange Board of India
On the basis of the above and on our verification of (Issue of Capital and Disclosure Requirements)
documents, books, papers, minutes, forms and returns filed Regulations, 2009
and other records maintained by the Company and also the
information provided by the Company, its officers, agents d. The Securities and Exchange Board of India (Share
and authorised representatives during the conduct of the Based Employee Benefits) Regulations, 2014
Audit, We hereby report that in our opinion, the Company
has, during the period covered under the Audit as aforesaid, e. The Securities and Exchange Board of India (Issue
complied with the statutory provisions listed hereunder and Listing of Debt Securities) Regulations, 2008
and also that the Company has proper Board processes and
compliance mechanism in place to the extent, in the manner f. The Securities and Exchange Board of India
and subject to the reporting made hereinafter. (Registrar to an Issue and Share Transfer Agents)
Regulations, 1993
We have examined the books, papers, minute books, forms
and returns filed and other records maintained by the g. The Securities and Exchange Board of India
Company for the financial year ended 31st March, 2017 (Delisting of Equity Shares) Regulations, 2009
according to the provisions of:
h. The Securities and Exchange Board of India (Buy
(i) The Companies Act, 2013 and the Rules made there Back of Securities) Regulations, 1998
under and the Companies Act, 1956 and the Rules made
there under to the extent applicable. i. Securities Exchange Board of India (Listing
Obligations and Disclosure Requirements)
(ii) The Securities Contracts (Regulation) Act, 1956 and the Regulations, 2015
Rules made there under.
(iii) The Depositories Act, 1996 and the Regulations and

Bye-Laws framed there under.

Annexure- 10
(vi) The following laws, regulations, directions, orders e. Issue of securities other than Equity shares issued
applicable specifically to the Company: under Employee stock option scheme and issue of
Debt Securities.
a. The Reserve Bank of India Act, 1934.
f. The Securities and Exchange Board of India
b. Master Direction - Non-Banking Financial (Registrar to an Issue and Share Transfer Agents)
Company - Systemically Important Non-Deposit Regulations, 1993 is not applicable to the
taking Company and Deposit taking Company company, since it does not carry on the business
(Reserve Bank) Directions, 2016. of Registrar and Share Transfer agents.
c. Non-Banking Financial Companies – Corporate We further report that The Board of Directors of the Company
Governance (Reserve Bank) Directions, 2015 is duly constituted with the proper balance of Executive
Directors, Non-Executive Directors and Independent
d. Master Direction- Non-Banking Financial Directors. The changes in the composition of the Board of
Company Returns (Reserve Bank) Directions, Directors that took place during the period covered under the
2016 Audit were carried out in compliance with the provisions of
the Act.
We have also examined compliance with the applicable
clauses of the following: Adequate notice and detailed notes on Agenda was given to all
Directors at least seven days in advance to schedule the Board
(i) Secretarial Standards 1 & 2 issued by The Meetings. There exist a system for seeking and obtaining
Institute of Company Secretaries of India. further information and clarifications on the Agenda items
before the Meeting and for meaningful participation at the
(ii) Listing Agreement for equity and debt securities Meeting.
entered into with BSE Limited and National Stock
Exchange of India Limited. Majority decision is carried through and recorded as part of
the minutes. We did not find any dissenting directors’ views
During the period under review the Company has recorded in the minutes.
complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards, etc. mentioned We further report that there are adequate systems and
above. processes in the Company commensurate with the size and
operations of the Company to monitor and ensure compliance
On the basis of the information and explanation with applicable laws, rules, regulations and guidelines.
provided, the Company had no transaction during
the period under Audit requiring the compliance We further report that during the period covered under the
of applicable provisions of Act / Regulations / Audit, the Company has made the following specific actions
Directions as mentioned above in respect of: having a major bearing on the company’s affairs in pursuance
of the above referred laws, rules, regulations, guidelines,
a. Foreign Direct Investment and External referred to above:
Commercial Borrowings.
1. The objects clause of the Memorandum of Association
b. Buy-back of securities. was amended to carry on new business in the nature
of micro finance activities, mutual fund activities, bill
c. Delisting of equity shares. collection services, advisory and management services
including information technology services.
d. SEBI(Substantial Acquisition of Shares and
Takeovers) Regulations, 2011.

Annexure- 10
2. The company acquired 64.60% of capital of Belstar

Investment and Finance Private Limited, thereby
making it a subsidiary.
3. The company acquired 100% stake in Muthoot

Insurance Brokers Private Limited thereby making the
said company its wholly owned subsidiary.
For KSR & Co Company Secretaries LLP

C.V.Madhusudhanan
Date: August 04, 2017 Partner
Place: Coimbatore (FCS: 5367; CP: 4408)

Annexure- 11
(A) DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION

197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES
(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
a) the ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
financial year 2016-17 ; the percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive
Officer, Company Secretary or Manager, if any, in the financial year 2016-17;
% increase in Ratio of Remuneration of each
Sl.
Name of Director and KMP Designation remuneration during Director to median remuneration
No.
year 2016-17 of employees of the company
Chairman & Whole Time
1. M G George Muthoot 83% 466:1
Director
2. George Thomas Muthoot Whole Time Director 83% 466:1
3. George Jacob Muthoot Whole Time Director 83% 466:1
4. George Alexander Muthoot Managing Director 83% 466:1
5. Alexander M George Whole Time Director 67% 32:1
6. George Joseph Independent Director 17% 4:1
7. K George John Independent Director 17% 4:1
8. John K Paul Independent Director 17% 4:1
9. K John Mathew Independent Director 17% 4:1
10. Pamela Anna Mathew Independent Director 17% 4:1
11. Oommen K Mammen Chief Financial Officer 116% NA
12. Maxin James Company Secretary 155% NA
b) the percentage increase in the median remuneration of employees in the financial year 2016-17 : 17%
c) The number of permanent employees on the rolls of company as on March 31, 2017 : 24,205
d) average percentile increase already made in the salaries of employees other than the managerial personnel in the last
financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and
point out if there are any exceptional circumstances for increase in the managerial remuneration;
The Average percentile increase made in the salaries of employees other than the managerial personnel is 22%. The total
managerial remuneration for the Financial Year 2016-17 was ` 36.15 Crores as against ` 19.86 Crores during the previous
year, an increase of 82%. The increase in managerial remuneration is on account of 83% increase in remuneration of four
Whole-Time Directors. This was based on the overall performance of the Company during the Year. Loan Assets under
management increased by 12% reaching an all time high of ` 27,278 Crores. Profit after tax increased by 46% at a record
level of ` 1,180 crores. Hence the Board considered increasing Annual Performance Incentive of four Promoter Whole-
Time Directors from ` 1.80 Crores to ` 5.80 Crores each due to exceptional performance of the Company during the
year. Commission to Non-Executive Directors were also increased by 17% for the above reasons. The above increase in
managerial remuneration is within the limits approved by shareholders. There is no exceptional circumstance for increase in
managerial remuneration except as stated above.
e) The remuneration paid is as per the remuneration policy of the Company.

Annexure- 11
(B) DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION

197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(2) OF THE COMPANIES
(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
Mr. M G George Mr. George Thomas Mr. George Jacob Mr. George Alexander
Name of Employee
Muthoot Muthoot Muthoot Muthoot
Chairman & Whole Time
Designation Whole Time Director Whole Time Director Managing Director
Director
Remuneration ` 8.8 Crs ` 8.8 Crs ` 8.8 Crs ` 8.8 Crs
Nature of Employment whether
Permanent Permanent Permanent Permanent
contractual or permanent
Qualifications B. Tech Graduate B. Tech. B.Com., FCA
Experience (in years) 42 41 39 36
Date of Commencement of
28.07.2000 16.08.2005 16.08.2005 28.07.2000
Employment
Age (in years) 67 66 64 61
Last Employment held before
Muthoot Bankers Muthoot Bankers Muthoot Bankers Muthoot Bankers
joining the Company
All Whole Time Directors All Whole Time Directors All Whole Time Directors All Whole Time Directors
except Mr. Alexander M except Mr. Alexander M except Mr. Alexander M except Mr. Alexander M
George are related to George are related to George are related to George are related to
Relationship with Director/
each other as Brothers. each other as Brothers. each other as Brothers. each other as Brothers.
Manager of the Company
Mr Alexander M George Mr Alexander M George Mr Alexander M George Mr Alexander M George
is son of Mr. M G George is son of Mr. M G George is son of Mr. M G George is son of Mr. M G George
Muthoot. Muthoot. Muthoot. Muthoot.

Annexure- 12
DISCLOSURE PURSUANT TO PART A OF SCHEDULE V READ WITH REGULATION

34(3) AND 53(F) OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)
REGULATIONS, 2015
Sl. Amount Outstanding Maximum Amount
Loans and Advances in the nature of Loans
No. as at 31.03.2017 Outstanding during the year
(A) To Subsidiaries 183,333,000.00 623,333,000.00
(B) To Associates N.A N.A
To Firms/Companies in which Directors are Interested (other than (A) and (B)
(C) Nil Nil
above)
Investments by the loanee in the shares of Parent Company and Subsidiary

(D) Company when the Company has made a loan or advance in the nature of Nil Nil
loan

115-255
116 Standalone Financial Statements
188 Consolidated Financial Statements
Standalone Financials
Independent Auditors’ Report
TO THE MEMBERS OF MUTHOOT FINANCE account the provisions of the Act, the accounting and auditing
LIMITED standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules
REPORT ON THE STANDALONE FINANCIAL made thereunder.
STATEMENTS
We have audited the accompanying standalone financial We conducted our audit in accordance with the Standards on
statements of Muthoot Finance Limited, Registered and Auditing specified under Section 143(10) of the Act. Those
Corporate Office: Muthoot Chambers, Opposite Saritha Standards require that we comply with ethical requirements
Theatre Complex, 2nd Floor, Banerji Road, Kochi 682 018, and plan and perform the audit to obtain reasonable assurance
India, (“the Company”), which comprise the Balance Sheet as about whether the standalone financial statements are free
at March 31, 2017, the Statement of Profit and Loss and the from material misstatement.
Cash Flow Statement for the year then ended, and a summary
of the significant accounting policies and other explanatory An audit involves performing procedures to obtain audit
information. evidence about the amounts and the disclosures in the
standalone financial statements. The procedures selected
MANAGEMENT’S RESPONSIBILITY depend on the auditors’ judgement, including the assessment
FOR THE STANDALONE FINANCIAL of the risks of material misstatement of the standalone
STATEMENTS financial statements, whether due to fraud or error. In
The Company’s Board of Directors is responsible for the making those risk assessments, the auditor considers internal
matters stated in section 134(5) of the Companies Act, 2013 financial control relevant to the Company’s preparation of
(‘the Act’) with respect to the preparation of these standalone the standalone financial statements that give a true and fair
financial statements that give a true and fair view of the view in order to design audit procedures that are appropriate
financial position, financial performance and cash flows of in the circumstances. An audit also includes evaluating
the Company in accordance with the accounting principles the appropriateness of the accounting policies used and
generally accepted in India, including the Accounting the reasonableness of the accounting estimates made by
Standards specified under section 133 of the Act, read the Company’s Directors, as well as evaluating the overall
with Rule 7 of the Companies (Accounts) Rules, 2014. presentation of the financial statements.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of We believe that the audit evidence we have obtained is
the Act for safeguarding the assets of the Company and for sufficient and appropriate to provide a basis for our audit
preventing and detecting frauds and other irregularities; opinion on the standalone financial statements.
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and OPINION
prudent; and design, implementation and maintenance of In our opinion and to the best of our information and
adequate internal financial controls, that were operating according to the explanations given to us, the aforesaid
effectively for ensuring the accuracy and completeness of standalone financial statements give the information required
the accounting records, relevant to the preparation and by the Act in the manner so required and give a true and fair
presentation of these standalone financial statements that give view in conformity with the accounting principles generally
a true and fair view and are free from material misstatement, accepted in India, of the state of affairs of the Company as at
whether due to fraud or error. March 31, 2017, and its profit and its cash flows for the year
ended on that date.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into

REPORT ON OTHER LEGAL AND i. The Company has disclosed the impact of
REGULATORY REQUIREMENTS pending litigations on its financial position
1. As required by the Companies (Auditor’s Report) Order, in its standalone financial statements- Refer
2016 (“the Order”) issued by the Central Government Note 26 to the financial statements;
of India in terms of sub-section (11) of section 143 of
the Act, we give in the Annexure ‘A’, a statement on the ii. The Company has made provision,
matters specified in the paragraph 3 and 4 of the Order. as required under the applicable law
or accounting standards, for material
2. As required by Section 143(3) of the Act, we report that: foreseeable losses, if any, on long term
contracts including derivative contracts;
a) We have sought and obtained all the information
and explanations which to the best of our iii. There were no amounts which were
knowledge and belief were necessary for the required to be transferred to the Investor
purposes of our audit. Education and Protection Fund by the
Company.
b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it iv. The Company has provided requisite
appears from our examination of those books. disclosures in its standalone financial
statements as to holdings as well as dealings
c) The Balance Sheet, the Statement of Profit and in Specified Bank Notes as defined in
Loss, and the Cash Flow Statement dealt with by the Notification S.O. 3407 (E) dated the
this Report are in agreement with the books of 8th of November, 2016 of the Ministry
account. of Finance, during the period from 8th
November, 2016 to 30th December, 2016
d) In our opinion, the aforesaid standalone financial and these are in accordance with the books
statements comply with the Accounting Standards of account maintained by the Company
specified under Section 133 of the Act, read with and as produced to us by the management.
Rule 7 of the Companies (Accounts) Rules, 2014. Refer Note 36 to the standalone financial
statements.
e) On the basis of the written representations
received from the Directors as on March 31, 2017, For Rangamani & Co
taken on record by the Board of Directors, none of Chartered Accountants
the Directors is disqualified as on March 31, 2017 (Firm Registration No.: 003050 S)
from being appointed as a Director in terms of
Section 164 (2) of the Act.
Sd/-
f) With respect to the adequacy of the internal R. Sreenivasan
financial controls over financial reporting of the Place: Kochi Partner
Company and the operating effectiveness of such Date: 18th May, 2017 Membership No. 020566
controls, refer to our separate Report in ‘Annexure
B’ to this report.
g) With respect to the other matters to be included

in the Independent Auditors’ Report in accordance
with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our opinion
and to the best of our information and according
to the explanations given to us:

ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on Companies (Auditor’s Report) Order, 2016 (‘the Order’) issued by the Central Government in terms of
Section 143(11) of the Companies Act, 2013 (‘the Act’) of Muthoot Finance Limited (‘the Company’)
(i) In respect of the Company’s fixed assets: (v) According to the information and explanations given to
us, the Company has not accepted deposits from the
(a) The Company has maintained proper records public attracting the directives issued by the Reserve
showing full particulars, including quantitative Bank of India and the provisions of Section 73 to 76
details and situation of fixed assets; or any other relevant provisions of the Companies Act,
2013 and the rules framed there under. Therefore, the
(b) As informed to us, not all the fixed assets have provisions of Clause 3(v) of the Order are not applicable
been physically verified by the management to the Company.
during the year, but there is a regular programme
of verification, which, in our opinion, is reasonable (vi) The Central Government has not prescribed the
having regard to the size of the Company and maintenance of cost records under section 148(1) of the
the nature of its assets. We are informed that Act, for any of the services rendered by the Company
no material discrepancies were noticed on such and therefore, the provisions of the clause 3 (vi) of the
verification. Order are not applicable to the Company.
(c) According to the information and explanations (vii) (a) According to the information and explanations
given to us and the records examined by us given to us, the Company has generally been
and based on the examination of the title deed regular in depositing undisputed statutory dues,
provided to us, we report that, the title deeds, including Provident Fund, Employees’ State
comprising all the immovable properties of Insurance, Income Tax, Sales Tax, Service Tax,
land and buildings, are held in the name of the Value Added Tax, Duty of Customs, Duty of
Company as at the balance sheet date. Excise, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(ii) The Company is a Non-Banking Finance Company and
has not dealt with any goods and the company does According to the information and explanations
not hold any inventory during the period under audit. given to us, no undisputed statutory dues payable
Accordingly, the provisions of clause 3 (ii) of the Order is in respect of Provident Fund, Employees State
not applicable to the Company. Insurance, Income Tax, Sales Tax, Service Tax,
Duty of Customs, Duty of Excise, Value Added
(iii) The Company has granted unsecured loans to its Tax, Cess and other material statutory dues were
subsidiary during the year and the same is covered in outstanding as at March 31, 2017, for a period of
the register maintained under Section 189 of the Act. more than six months from the date they became
The terms and conditions of the grant of such loans payable.
are not prejudicial to the Company’s interest. The
repayment or receipts of principal and interest are as (b) According to the information and explanations
per schedule stipulated and are regular. There are no given to us, there are no material dues of Sales tax,
overdue amounts. Duty of Customs, Wealth Tax, Duty of Excise and
Cess which have not been deposited on account
(iv) In our opinion and according to the information and of any dispute. The following dues of Service Tax
explanations given to us, the Company has complied and Income Tax have not been deposited with
with the provisions of Sections 185 and 186 of the Act appropriate authorities on account of dispute:
in respect of grant of loans, making investments and
providing guarantees and securities, as applicable.

Period to (xi) In our opinion and according to the information and

Nature of Amount `. In Forum where
which the
dues Lakhs * dispute is pending explanations given to us, the Company has paid/
amount relates
provided managerial remuneration in accordance with
499.21 2003-2008 CESTAT, Bangalore
the requisite approvals mandated by the provisions of
48,958.83 2007-2012 CESTAT, Bangalore
Section 197 read with Schedule V to the Act.
Commissioner
7.90 2013-2014
(Appeals), Kochi
445.72 2010-2013 CESTAT, Bangalore (xii) The Company is not a Nidhi Company and hence
Commissioner reporting under clause 3(xii) of the Order is not
Service 21.55 2008-2011 of Central applicable.
tax Excise(Appeals), Kochi
Commissioner (xiii) In our opinion and according to the information and
53.65 2007-2013 of Central
explanations given to us, the Company is in compliance
Excise(Appeals), Kochi
with Section 177 and 188 of the Act, where applicable,
110.39 2013-2014 High Court of Kerala
for all transactions with the related parties and the
April to
Commissioner details of related party transactions have been disclosed
68.05 September
(Appeals), Kochi. in the standalone financial statements as required by the
2014
Commissioner of applicable accounting standards.
Assessment
271.20 Income Tax (Appeals)-
Income Year 2012-13
II, Kochi (xiv) During the year, the Company has not made any
Tax
Assessment Income Tax Appellate
145.64 preferential allotment or private placement of shares
Year 2010-11 Tribunal, Kochi
or fully or partly convertible debentures and hence
* Amount is net of payments made and without considering interest for the
reporting under clause 3(xiv) of the Order is not
overdue period, if any, as may be levied if demand raised is upheld
applicable to the Company.
(viii) According to the records of the Company examined by us
and the information and explanations given to us, we are (xv) In our opinion and according to the information and
of the opinion that the Company has not defaulted in the explanations given to us, during the year, the Company
repayment of loans or borrowings to financial institutions, has not entered into any non-cash transactions with
banks, government or dues to debenture holders. its Directors or persons connected to its Directors and
hence reporting under clause 3(xv) of the Order is not
(ix) In our opinion and according to the information and applicable to the Company.
explanations given to us, the Company has utilized
the moneys raised by way of public offer of debt (xvi) The Company is engaged in the business of Non-
instruments and term loans for the purposes for which Banking Financial Institution and has obtained the
they were raised. certificate of registration under section 45-IA of the
Reserve Bank of India Act, 1934.
(x) According to the information and explanations given
to us, For Rangamani & Co
a) there have been certain instances of fraud by (Firm Registration No.: 003050 S)
employees of the Company amounting to
` 12,827,281.00 as given in Note 34 to the
financial statements; and Sd/-
R. Sreenivasan
b) no fraud by the Company has been noticed or Place: Kochi Partner
reported during the course of our audit. Date: 18th May, 2017 Membership No. 020566

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (‘the Act’)
We have audited the internal financial controls over financial Our audit involves performing procedures to obtain audit
reporting of Muthoot Finance Limited, Registered and evidence about the adequacy of the internal financial
Corporate Office: Muthoot Chambers, Opposite Saritha controls system over financial reporting and their operating
Theatre Complex, 2nd Floor, Banerji Road, Kochi 682 018, effectiveness. Our audit of internal financial controls over
India, (‘the Company’) as of March 31, 2017 in conjunction financial reporting included obtaining an understanding of
with our audit of the standalone financial statements of the internal financial controls over financial reporting, assessing
Company for the year ended on that date. the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal
MANAGEMENT’S RESPONSIBILITY FOR control based on the assessed risk. The procedures selected
INTERNAL FINANCIAL CONTROLS depend on the auditors’ judgment, including the assessment
The Company’s management is responsible for establishing of the risks of material misstatement of the standalone
and maintaining internal financial controls based on the financial statements, whether due to fraud or error.
internal control over financial reporting criteria established
by the Company considering the essential components of We believe that the audit evidence we have obtained is
internal control stated in the Guidance Note on Audit of sufficient and appropriate to provide a basis for our audit
Internal Financial Controls Over Financial Reporting issued opinion on the Company’s internal financial controls system
by the Institute of Chartered Accountants of India(‘ICAI’). over financial reporting.
These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were MEANING OF INTERNAL FINANCIAL
operating effectively for ensuring the orderly and efficient CONTROLS OVER FINANCIAL REPORTING
conduct of its business, including adherence to Company’s A Company’s internal financial control over financial reporting
policies, the safeguarding of its assets, the prevention and is a process designed to provide reasonable assurance
detection of frauds and errors, the accuracy and completeness regarding the reliability of financial reporting and the
of the accounting records, and the timely preparation of preparation of financial statements for external purposes in
reliable financial information, as required under the Companies accordance with generally accepted accounting principles. A
Act, 2013. Company’s internal financial control over financial reporting
includes those policies and procedures that;(1) pertain to the
AUDITORS’ RESPONSIBILITY maintenance of records that, in reasonable detail, accurately
Our responsibility is to express an opinion on the Company’s and fairly reflect the transactions and dispositions of the
internal financial controls over financial reporting based on assets of the Company; (2) provide reasonable assurance that
our audit. We conducted our audit in accordance with the transactions are recorded as necessary to permit preparation
Guidance Note on Audit of Internal Financial Controls Over of financial statements in accordance with generally accepted
Financial Reporting (the “Guidance Note”) and the Standards accounting principles, and that receipts and expenditures
on Auditing, issued by ICAI and deemed to be prescribed of the Company are being made only in accordance with
under section 143(10) of the Companies Act, 2013, to the authorizations of management and directors of the Company;
extent applicable to an audit of internal financial controls, and (3) provide reasonable assurance regarding prevention
and, both issued by the Institute of Chartered Accountants of or timely detection of unauthorized acquisition, use, or
India. Those Standards and the Guidance Note require that disposition of the Company’s assets that could have a material
we comply with ethical requirements and plan and perform effect on the financial statements.
the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting
was established and maintained and if such controls operated
effectively in all material respects.

INHERENT LIMITATIONS OF INTERNAL OPINION

FINANCIAL CONTROLS OVER FINANCIAL In our opinion, to the best of our information and according to
REPORTING the explanations given to us, the Company has, in all material
Because of the inherent limitations of internal financial respects, an adequate internal financial controls system over
controls over financial reporting, including the possibility financial reporting and such internal financial controls over
of collusion or improper management override of controls, financial reporting were operating effectively as at March 31,
material misstatements due to error or fraud may occur and 2017, based on the internal control over financial reporting
not be detected. Also, projections of any evaluation of the criteria established by the Company considering the essential
internal financial controls over financial reporting to future components of internal control stated in the Guidance Note on
periods are subject to the risk that the internal financial Audit of Internal Financial Controls Over Financial Reporting
control over financial reporting may become inadequate issued by the Institute of Chartered Accountants of India.
because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate. For Rangamani & Co
(Firm Registration No.: 003050 S)
Sd/-
R. Sreenivasan
Place: Kochi Partner
Date: 18th May, 2017 Membership No. 020566

Balance Sheet
as at 31st March, 2017
`
As at As at
Particulars Note No.
31st March, 2017 31st March, 2016
EQUITY AND LIABILITIES
Shareholders’ funds
(a) Share capital 3 3,994,755,490.00 3,990,023,320.00
(b) Reserves and surplus 4 61,169,657,530.67 52,202,467,885.91
Non-current liabilities
(a) Long-term borrowings 5 42,311,912,309.00 52,762,585,403.10
(b) Other Long-term liabilities 6 6,719,692,255.90 11,268,290,971.06
(c) Long-term provisions 24 5,273,000.00 2,391,462.94
Current liabilities
(a) Short-term borrowings 5 127,549,094,570.68 83,635,160,020.65
(b) Trade Payables
-Total outstanding dues of micro enterprises and small enterprises - -
-Total outstanding dues of creditors other than micro enterprises and small
929,221,852.34 611,288,364.41
enterprises
(c) Other current liabilities 7 57,942,075,938.19 60,888,953,479.56
(d) Short-term provisions 8 6,509,035,598.87 5,126,167,830.86
Total 307,130,718,545.65 270,487,328,738.49
ASSETS
Non-current assets
(a) Fixed assets 9
(i) Tangible Assets 2,021,785,830.62 2,138,118,841.37
(ii) Intangible Assets 60,523,561.34 46,702,267.34
(iii) Capital work-in-progress 99,749,115.00 88,904,661.00
(b) Non-current investments 10 2,091,155,228.64 982,618,409.97
(c) Deferred tax assets (net) 11 560,238,722.16 519,739,833.16
(d) Long-term loans and advances 12 1,085,258,834.68 1,002,979,121.78
Current assets
(a) Trade receivables 13 12,706,045,258.50 14,672,646,786.57
(b) Cash and Bank Balances 14 15,342,536,598.46 6,791,096,663.90
(c) Short-term loans and advances 15 273,156,801,470.44 244,237,688,095.40
(d) Other current assets 16 6,623,925.81 6,834,058.00
Total 307,130,718,545.65 270,487,328,738.49
Notes on accounts form part of standalone financial statements For and on behalf of the Board of Directors
As per our report of even date attached
For Rangamani & Co Sd/- Sd/-

Chartered Accountants M. G. George Muthoot George Alexander Muthoot
(FRN: 003050 S) Chairman & Whole time Director Managing Director
Sd/- Sd/- Sd/-

R. Sreenivasan Oommen K. Mammen Maxin James
Partner Chief Financial Officer Company Secretary
Membership No. 020566
Place: Kochi
Date: 18th May, 2017

Statement of Profit and Loss

for the year ended 31st March, 2017
`
Year Ended Year Ended
Revenue from Operations 17 57,286,271,141.15 48,614,005,916.28
Other income 18 180,743,778.86 136,145,020.02
Total Revenue 57,467,014,920.01 48,750,150,936.30
Expenses:-
Employee benefits expense 19 7,280,477,378.46 6,418,778,569.56
Finance costs 20 22,938,151,818.69 22,576,929,357.51
Other expenses 21 4,382,199,828.40 4,191,762,810.85
Directors Remuneration 358,000,000.00 195,600,000.00
Depreciation and amortization expense 9 482,504,385.81 575,147,459.91
Provisions and Write Offs 22 2,815,908,970.75 1,624,391,450.50
Total Expenses 38,257,242,382.11 35,582,609,648.33
Profit Before Tax 19,209,772,537.90 13,167,541,287.97
Tax expense:-
Current tax 7,451,954,940.14 5,219,432,887.00
Deferred tax (40,498,889.00) (171,349,310.00)
Taxes relating to Previous Years - 23,926,173.68
Profit for the year 11,798,316,486.76 8,095,531,537.29
Earnings per equity share of ` 10/- each 28
Basic 29.56 20.34
Diluted 29.45 20.10

Sd/- Sd/- Sd/-

Place: Kochi

Cash Flow Statement

`
Particulars
A CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Taxation 19,209,772,537.90 13,167,541,287.97
Adjustments for :
Add: Provisions for Non-performing Assets and bad debt written off 165,435,823.75 401,079,392.50
Add: Provisions for Standard Assets and Other Losses 2,650,473,147.00 1,223,312,058.00
Add: Finance Cost 22,938,151,818.69 22,576,929,357.51
Add: Loss on Sale of Fixed Assets 755,203.66 106,712.06
Add: Depreciation and amortisation 482,504,385.81 575,147,459.91
Add :Provision for Gratuity 5,273,000.00 2,391,462.94
Add :Expenses on ESOP 36,194,255.00 115,299,604.00
Less :Interest received - Others (152,640,632.65) (130,155,978.42)
Less :Income from Investments (24,861,189.69) (4,389,370.60)
Operating profit before working capital changes 45,311,058,349.47 37,927,261,985.87
Adjustments for:
(Increase) / Decrease in Loans and Advances (29,001,393,087.94) (9,851,418,800.46)
(Increase) / Decrease in Trade receivables 1,801,165,704.32 (3,240,874,570.94)
(Increase) / Decrease in Other current assets - 17,018,414.35
(Increase) / Decrease in Bank balances other than Cash and Cash Equivalents (2,423,911,480.68) (3,741,199.10)
Increase / (Decrease) in Current liabilities 555,678,698.62 484,511,065.00
Increase / (Decrease) in Other Long Term Provisions (2,391,462.94) (7,508,745.00)
Increase / (Decrease) in Other Long Term Liabilities (34,801,382.12) 45,896,322.09
Cash generated from operations 16,205,405,338.73 25,371,144,471.81
Finance cost paid (24,608,231,920.52) (19,452,860,621.37)
Direct tax paid (8,719,560,319.13) (3,782,103,005.14)
Net cash from operating activities (17,122,386,900.92) 2,136,180,845.30
B CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (382,649,036.97) (189,860,122.56)
Sale of Fixed Assets 1,901,164.25 2,813,045.50
(Increase) / Decrease in Capital Work in Progress (10,844,454.00) (20,266,769.00)
Purchase of Securities (112,107,611.00) (100,000,000.00)
Sale of Securities 140,000,000.00 -
Acquisition of shares in subsidiary (1,136,429,207.67) (497,744,914.81)
Interest received - Others 152,850,764.84 129,502,209.78
Income from Investments 24,861,189.69 4,389,370.60
Net Cash from Investing Activities (1,322,417,190.86) (671,167,180.49)

Cash Flow Statement

`
Particulars
C CASH FLOW FROM FINANCING ACTIVITIES
Net Proceeds from Issue of Debentures (15,023,934,000.00) (13,182,460,000.00)
Increase / (Decrease) in Loan from Directors / Relatives of Directors (780,472,970.98) 1,568,803,173.12
Increase / (Decrease) in Borrowings from Bank /Financial Institutions 15,142,913,446.64 4,457,884,112.76
Increase / (Decrease) in Subordinated debt (6,336,833,000.00) (1,081,805,566.00)
Increase / (Decrease) in Commercial Papers 31,548,450,500.00 -
Dividend paid (including Dividend distribution tax) - (3,832,718,413.89)
Proceeds from issue of Share Capital 22,208,570.00 26,470,010.00
Net Cash from Financing Activities 24,572,332,545.66 (12,043,826,684.01)
D NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C) 6,127,528,453.88 (10,578,813,019.20)

Cash and Cash Equivalent at the Beginning of the Year 6,764,448,173.41 17,343,261,192.61
Cash and Cash Equivalent at the end of the Year 12,891,976,627.29 6,764,448,173.41
Components of Cash and Cash Equivalents at the end of the Year
Current Account with Banks 11,264,656,156.29 5,288,344,057.54
Cash on Hand 1,627,320,471.00 1,476,104,115.87
Total (Refer Note 2(xi)) 12,891,976,627.29 6,764,448,173.41
Notes:
1) The above cash flow statement have been prepared under the indirect method set out in Accounting Standard (AS)-3, ‘Cash Flow Statement’, in compliance
with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
2) All figures in brackets indicate outflow.
3) The cash flows from operating, investing and financing activities are segregated.

Sd/- Sd/- Sd/-

Place: Kochi

Notes on Accounts
1. BACKGROUND Company - Systemically Important Non-Deposit

Muthoot Finance Ltd. was incorporated as a private taking Company and Deposit taking Company
limited Company on 14th March 1997 and was (Reserve Bank) Directions, 2016.
converted into a public limited Company on 18th
November 2008. The Company is promoted by Mr. 2.2 Use of Estimates
M. G. George Muthoot, Mr. George Thomas Muthoot, The preparation of the financial statements
Mr. George Jacob Muthoot and Mr. George Alexander requires use of estimates and assumptions that
Muthoot collectively operating under the brand name of affect the reported amount of assets and liabilities
‘The Muthoot Group’, which has diversified interests in as at the Balance Sheet date, reported amount
the fields of Financial Services, Healthcare, Education, of income and expenses during the reporting
Plantations, Real Estate, Foreign Exchange, Information period and disclosure of contingent liabilities
Technology, Insurance Distribution, Hospitality etc. The as at that date. The estimates and assumptions
Company obtained permission from the Reserve Bank used in these financial statements are based upon
of India for carrying on the business of Non-Banking the management evaluation of the relevant facts
Financial Institutions on 13.11.2001 vide Regn No. and circumstances as of the date of the financial
N 16.00167. The Company is presently classified as statements. Management believes that these
Systemically Important Non Deposit Taking NBFC estimates and assumptions used are prudent and
(NBFC-ND-SI). reasonable. Future results may vary from these
estimates.
The Company made an Initial Public Offer of
51,500,000 Equity Shares of the face value ` 10/- each 2.3 Revenue Recognition
at a price of ` 175/- raising ` 9,012,500,000.00 during Revenues are recognized and expenses are
the month of April 2011. The equity shares of the accounted on accrual basis with necessary
Company are listed on National Stock Exchange of India provisions for all known liabilities and losses.
Limited and BSE Limited from 6th May 2011. Revenue is recognised to the extent it is realizable
wherever there is uncertainty in the ultimate
2. SIGNIFICANT ACCOUNTING POLICIES collection. Income from Non-Performing Assets
2.1 Accounting Concepts is recognized only when it is realized. Income and
The financial statements of the Company are expense under bilateral assignment of receivables
prepared in accordance with the Generally accrue over the life of the related receivables
Accepted Accounting Principles in India (Indian assigned. Interest income and expenses on
GAAP) to comply with the Accounting Standards bilateral assignment of receivables are accounted
specified under Section 133 of the Companies on gross basis. Interest income on deposits are
Act, 2013, read with Rule 7 of the Companies recognised on time proportionate basis.
(Accounts) Rules, 2014 and other relevant
provisions of the Companies Act, 2013 and / or 2.4 Employee Benefits
Companies Act, 1956 , as applicable. The financial A) Short Term Employee Benefits:
statements are prepared on accrual basis under Short Term Employee Benefits for services
the historical cost convention. The accounting rendered by employees are recognized
policies adopted in the preparation of the financial during the period when the services are
statements are consistent with those followed rendered.
in the previous year. The Company follows
prudential norms for income recognition, asset B) Post employment benefits:
classification and provisioning as prescribed by a) Defined Contribution Plan
Reserve Bank of India vide Non-Banking Financial Provident Fund

Notes on Accounts
c) Employee share based payments

All eligible employees of the Company
are entitled to receive benefits under the Stock options granted to the employees
provident fund, a defined contribution under the stock option scheme established
plan in which both the employee and are accounted as per the accounting
the Company contribute monthly at a treatment prescribed by the SEBI
stipulated percentage of the covered (Employee Stock Option Scheme and
employees salary. Contributions are made Employee Stock Purchase Scheme )
to Employees Provident Fund Organization Guidelines, 1999 / SEBI (Share Based
in respect of Provident Fund, Pension Fund Employee Benefits) Regulations , 2014
and Employees Deposit Linked Insurance issued by Securities Exchange Board of
Scheme at the prescribed rates and are India. The Company follows the intrinsic
charged to Statement of Profit & Loss at value method of accounting for the options
actuals.The company has no liability for and accordingly, the excess of market value
future provident fund benefits other than its of the stock options as on the date of grant
annual contribution. over the exercise price of the options, if
any, is recognized as deferred employee
b) Defined Benefit Plan compensation cost and is charged to the
Gratuity Statement of Profit and Loss on graded
The Company provides for gratuity covering vesting basis over the vesting period of the
eligible employees underwhich a lumpsum options.
payment is paid to vested employees
at retirement , death , incapacitation or 2.5 Fixed Assets
termination of employment , of an amount Fixed assets are stated at historical cost less
reckoned on the respective employee’s accumulated depreciation. Cost comprises the
salary and his tenor of employment with purchase price and any attributable cost of
the Company. The Company accounts for bringing the asset to its working condition for its
its liability for future gratuity benefits based intended use.
on actuarial valuation determined at each
Balance Sheet date by an Independent Depreciation is charged at the rates derived
Actuary using Projected Unit Credit Method. based on the useful lives of the assets as
The Company makes annual contribution specified in Schedule II of the Companies Act,
to a Gratuity Fund administered by 2013 on Written Down Value method. All fixed
Trustees and separate schemes managed assets costing individually upto `5000/- is fully
by Kotak Mahindra Old Mutual Life depreciated by the company in the year of its
Insurance Limited and ICICI Prudential capitalisation.
Life Insurance Company Limited. The
Company recognizes the net obligation of 2.6 Foreign Exchange Transactions
the gratuity plan in the Balance Sheet as an Foreign currency transactions are recorded, on
asset or liability , respectively in accordance initial recognition, by applying to the foreign
with Accounting Standard 15 , ‘Employee currency amount the exchange rate at the date of
Benefits’. Actuarial gains and losses arising the transaction. Foreign currency monetary assets
from experience adjustments and changes in and liabilities are reported using the exchange
actuarial assumptions are recognised in the rate as on the Balance Sheet date. Non-monetary
Statement of Profit and Loss in the period in items, which are carried in terms of historical cost
which they arise.

Notes on Accounts
denominated in foreign currency, are reported investments. Current investments are carried
using the exchange rate at the date of the at lower of cost and fair value determined on
transaction. Exchange differences arising on the an individual investment basis. Non-Current
settlement of monetary items are recognised as investments are carried at cost. However, provision
income or as expenses in the period in which they for diminution in value is made to recognise a
arise. decline, other than temporary, in the value of the
investments.
2.7 Intangible Assets
Intangible Assets are amortized over their 2.10 Impairment of Assets
expected useful life. It is stated at cost, net of The carrying amounts of assets are reviewed at
amortization. Computer Software is amortized each balance sheet date to ascertain impairment
over a period of five years on straight line method. based on internal / external factors. An
impairment loss is recognized when the carrying
2.8 Taxes on Income amount of an asset exceeds its recoverable
Income Tax expenses comprises of current tax amount. The recoverable amount is the higher
and deferred tax (asset or liability). Current tax is of the net selling price of the assets or their
the amount of tax payable on the taxable income value in use. After impairment, depreciation is
for the year determined in accordance with the provided on the revised carrying amount of the
provisions of the Income Tax Act 1961. Deferred asset over its remaining useful life. A previously
tax is recognized, on timing differences, being the recognized impairment loss is increased or
difference between taxable income and accounting reversed depending on changes in circumstances.
income that originate in one period and are However, the carrying value after reversal is not
capable of reversal in one or more subsequent increased beyond the carrying value that would
periods. Deferred tax assets are recognised only have prevailed by charging usual depreciation if
to the extent that there is a reasonable certainty there was no impairment.
that sufficient future income will be available
except that deferred tax assets , in case there are 2.11 Cash and Cash Equivalents
unabsorbed depreciation or losses, are recognised Cash and cash equivalents comprise of cash at
if there is virtual certainty that sufficient future bank, cash in hand and bank deposits having
taxable income will be available to realise the maturity of 3 months or less.
same. Deferred tax assets are reviewed for the
appropriateness of their respective carrying values 2.12 Provisions, Contingent Liabilities &
at each reporting date. Deferred tax assets and Contingent Assets
deferred tax liabilities are offset wherever the Provisions are recognized only when the Company
company has a legally enforceable right to set off has present, legal or constructive obligations as a
current tax assets against current tax liabilities and result of past events, for which it is probable that
where the deferred tax assets and deferred tax an outflow of economic benefit will be required to
liabilities relate to income taxes levied by the same settle the transaction and a reliable estimate can
taxation authority. be made for the amount of the obligation.
2.9 INVESTMENTS Contingent liability is disclosed for

Investments intended to be held for not more than (i) possible obligations which will be confirmed
one year are classified as current investments. All only by future events not wholly within the
other investments are classified as non-current control of the Company or

Notes on Accounts
(ii) present obligations arising from past events Where the Company is the Lessor:
where it is not probable that an outflow Assets given on operating leases are included
of resources will be required to settle the in fixed assets. Lease income is recognised in
obligation or a reliable estimate of the the Statement of Profit and Loss on a straight-
amount of the obligation cannot be made. line basis over the lease term. Costs, including
depreciation are recognised as an expense in
Contingent assets are not recognized in the the Statement of Profit and Loss. Initial direct
financial statements since this may result in the costs such as legal costs, brokerage costs, etc. are
recognition of income that may never be realized. recognised immediately in the Statement of Profit
and Loss.
2.13 Debenture Redemption Reserve
In terms of Section 71 of the Companies Act, Where the Company is the lessee:
2013 read with Rule 18 (7) of Companies Operating lease payments are recognized as an
(Share Capital and Debentures) Rules 2014 , the expense in the Statement of Profit and Loss on a
Company has created Debenture Redemption straightline basis over the lease term.
Reserve in respect of Secured Redeemable
Non-Convertible Debentures and Unsecured 2.16 Segment Reporting
Redeemable Non-Convertible Debentures issued Identification of segments:
through public issue as per SEBI (Issue and Listing a) The Company’s operating businesses are
of Debt Securities) Regulations, 2008. organized and managed separately according
to the nature of services provided, with
No Debenture Redemption Reserve is to be each segment representing a strategic
created for privately placed debentures of Non- business unit that offers different products
Banking Finance Companies. and serves different markets. The Company
has identified two business segments –
2.14 Provision for Standard Assets and Non Financing and Power Generation.
Performing Assets
The Company makes provision for standard assets b) In the context of Accounting Standard
and non performing assets as per Non-Banking 17 on Segment Reporting, issued by the
Financial Company - Systemically Important Institute of Chartered Accountants of India,
Non-Deposit taking Company and Deposit Company has identified business segment
taking Company (Reserve Bank) Directions, as the primary segment for the purpose of
2016. Provision for standard assets in excess disclosure.
of the prudential norms, as estimated by the
management, is categorised under Provision for c) The Company operates in a single
Standard Assets , as General provisions and/or as geographical segment. Hence, secondary
Gold Price Fluctuation Risk provisions. geographical segment information disclosure
is not applicable.
2.15 Leases
Leases where the lessor effectively retains d) The segment revenues, results, assets and
substantially all the risks and benefits of liabilities include the respective amounts
ownership of the leased assets, are classified as identifiable to each of the segment and
operating leases. amounts allocated on a reasonable basis.

Notes on Accounts
Unallocated items: 2.17 Current / Non-current classification of

Unallocated items include income, expenses, assets / liabilities
assets and liabilities which are not allocated to any The Company has classified all its assets / liabilities
reportable business segment. into current / non-current portion based on
the time frame of 12 months from the date of
Segment Policies: financial statements. Accordingly, assets/liabilities
The Company prepares its segment information expected to be realised /settled within 12 months
in conformity with the accounting policies from the date of financial statements are classified
adopted for preparing and presenting the financial as current and other assets/ liabilities are classified
statements of the Company as a whole. as non-current.

Notes on Accounts
(Amounts in the financial statements are stated in Rupees, except for share data and as otherwise stated.)
3. SHARE CAPITAL `
3.1 Share Capital
As at As at
Particulars
Authorised
450,000,000 Equity Shares of ` 10/- each 4,500,000,000.00 4,500,000,000.00
(Previous year: 450,000,000 Equity Shares of ` 10/- each)
5,000,000 Preference Shares of ` 1000/- each 5,000,000,000.00 5,000,000,000.00
(Previous year: 5,000,000 Preference Shares of ` 1000/- each)
Issued, Subscribed & Paid up
399,475,549 Equity Shares of ` 10/- each fully paid 3,994,755,490.00 3,990,023,320.00
(Previous Year: 399,002,332 Equity Shares of ` 10/- each fully paid)
Total 3,994,755,490.00 3,990,023,320.00
3.2 Terms and Rights attached to Equity In the event of liquidation of the Company, the holders of
Shares equity shares will be entitled to receive any of the remaining
The Company has only one class of equity share assets of the Company, after distribution of all preferential
having face value ` 10/- per share. All these shares have amounts. The distribution will be in proportion to the
the same rights and preferences with respect to the number of equity shares held by the shareholders.
payment of dividend, repayment of capital and voting.
3.3 The reconciliation of the number of shares outstanding and the amount of share capital as at
March 31, 2017 and March 31, 2016 is set out below:-
`
Particulars Equity Shares Equity Shares
Number Amount Number Amount
Shares outstanding at the beginning of the year 399,002,332 3,990,023,320.00 397,966,419 3,979,664,190.00
Shares issued in exercise of Employee Stock Options during the year 473,217 4,732,170.00 1,035,913 10,359,130.00
Shares outstanding at the end of the year 399,475,549 3,994,755,490.00 399,002,332 3,990,023,320.00
3.4 Disclosure as to the shareholders holding more than 5 percent shares

Sl. 31st March, 2017 31st March, 2016
Name of Shareholder
No. No. of Shares held % of Holding No. of Shares held % of Holding
1 M. G. George Muthoot 46,551,632 11.65% 47,385,132 11.88%
2 George Alexander Muthoot 43,630,900 10.92% 44,464,400 11.14%
3 George Jacob Muthoot 43,630,900 10.92% 44,464,400 11.14%
4 George Thomas Muthoot 43,630,900 10.92% 44,464,400 11.14%
5 Susan Thomas 29,985,068 7.51% 29,985,068 7.52%

Notes on Accounts
3.5 Disclosure as to aggregate number and class of shares allotted as pursuant to contract(s)
without payment being received in cash, fully paid up by way of bonus shares and shares
bought back.
Fully paid up pursuant
Sl. to contract(s) without Fully paid up by way of
Particulars Shares bought back
No. payment being received bonus shares
in cash
Equity Shares :
1 2016-2017 Nil Nil Nil
2 2015-2016 Nil Nil Nil
3 2014-2015 Nil Nil Nil
4 2013-2014 Nil Nil Nil
5 2012-2013 Nil Nil Nil
3.6 Shares reserved for issue under Employee Stock Option Scheme
The Company has reserved 2,837,904 equity shares ( Previous year : 3,659,788) for issue under the Employee Stock
Option Scheme 2013. (Refer Note.24.c)
4. RESERVES AND SURPLUS

`
As at As at
Particulars
a. Securities Premium Account

Balance at the beginning of the year 14,665,742,013.56 14,551,281,673.66
Add : Securities premium on Equity Share issue 56,068,873.10 114,460,339.90
Closing Balance 14,721,810,886.66 14,665,742,013.56
b. General Reserve
Add: Amount transferred from surplus balance in the Statement of Profit and Loss - -
Closing Balance 2,676,332,599.00 2,676,332,599.00
c. Debenture Redemption Reserve (Refer Note.4.1)
Add: Amount transferred from surplus in the Statement of Profit and Loss 4,818,119,028.50 3,509,466,198.50
Closing Balance 20,335,907,310.50 15,517,788,282.00
d. Statutory Reserve (Refer Note.4.2)
Closing Balance 12,654,507,239.80 10,294,843,942.80
e. Share options outstanding account ( Refer Note.24 c )
Balance at the beginning of the year 223,669,846.40 206,719,702.30
Additions during the year 36,194,255.00 115,299,604.00

Notes on Accounts
`
As at As at
Particulars
Deduction during the year on share allotment 38,592,473.10 98,349,459.90
Closing Balance 221,271,628.30 223,669,846.40
f. Surplus in the Statement of Profit and Loss
Add: Net Profit For the year 11,798,316,486.76 8,095,531,537.29
Less: Appropriations
Interim Dividend 2,396,853,294.00 2,390,180,648.00
Dividend relating to earlier years - 3,081,125.00
Corporate Dividend Tax 487,944,203.00 486,590,582.00
Transfer to Debenture Redemption Reserve 4,818,119,028.50 3,509,466,198.50
Transfer to Statutory Reserve 2,359,663,297.00 1,619,106,307.00
Closing Balance 10,559,827,866.41 8,824,091,202.15
Total 61,169,657,530.67 52,202,467,885.91
4.1 Debenture Redemption Reserve 4.2 Statutory Reserve

During the year, the Company has transferred an Statutory Reserve represents the Reserve Fund created
amount of ` 4,818,119,028.50 (Previous Year: under Section 45 IC of the Reserve Bank of India Act,
` 3,509,466,198.50) to the Debenture Redemption 1934. An amount of `2,359,663,297.00 representing
Reserve. No appropriation was made from this Reserve 20% of Net Profit is transferred to the Fund for the year
during the year. ( Previous Year: `1,619,106,307.00) . No appropriation
was made from the Reserve Fund during the year.
5. BORROWINGS
5.1 Borrowings – Secured and Unsecured
`
Non Current Non Current Current Current
Particulars As at As at As at As at
31st March 2017 31st March, 2016 31st March 2017 31st March, 2016
SECURED
(a) Debentures
Secured Non-Convertible Debentures 5,269,448,000.00 14,378,919,000.00 19,920,630,000.00 26,529,927,000.00
(Secured by mortgage of immovable
property and paripassu floating charge on
current assets, book debts and Loans &
advances)
(Refer Note No. 5.2)

Notes on Accounts
5.1 Borrowings – Secured and Unsecured (Contd.)

`
Secured Non-Convertible Debentures
24,341,527,000.00 20,195,055,000.00 12,756,626,000.00 16,208,264,000.00
-Listed
advances)
(Refer Note No. 5.3 & 5.4)
(b) Term loans

From banks
Term Loan (Secured by specific charge on
- 78,039.10 78,039.10 478,750.00
vehicles)
(Terms of Repayment : ` 78,039.10 during
F Y 2017-18 in 3 monthly installments,
Rate of Interest :10.51 % p.a.)
Term Loan (Secured by paripassu floating
charge on current assets, book debts, Loans 2,000,000,000.00 - - -
& advances)
(Terms of Repayment : During F Y 2018-19
in 4 quarterly installments, Rate of Interest
:8.75 % p.a.)
From Financial Institutions
1,154,309.00 2,851,364.00 1,697,055.00 2,564,824.37
vehicles)
(Terms of Repayment: ` 1,697,055.00
during F Y 2017-18 in 12 monthly
installments & ` 1,154,309.00 during F Y
2018-19 in 7-8 monthly installments , Rate
of Interest : 9.19-9.30 % p.a. )
(c) Loans repayable on demand

From banks
Overdraft against Deposit with Banks - - 3,711,833.26 7,782,787.27
(Secured by a lien on Fixed Deposit with
Banks)
Cash Credit - - 29,722,836,126.66 23,912,808,151.96
(Secured by paripassu floating charge
on current assets, book debts, Loans
& advances and personal guarantee of
promoter directors)

Notes on Accounts

`
(d) Short Term Loans
From Banks - - 59,540,000,000.32 52,950,000,000.00
promoter directors)
Sub Total -Secured 31,612,129,309.00 34,576,903,403.10 121,945,579,054.34 119,611,825,513.60
UNSECURED
(a) Loans repayable on demand
From banks - - 750,000,000.00 -
(b) Loans and advances from related parties

Loan from Directors and Relatives - - 5,984,096,110.44 6,764,569,081.42
Subordinated Debt (Refer Note.5.5) 50,000.00 262,000.00 212,000.00 84,145,000.00
(c) Other loans and advances

Subordinated Debt Listed (Refer Note.5.6
3,661,807,000.00 3,108,046,000.00 - -
& 5.7)
Commercial Paper - - 31,548,450,500.00 -
Subordinated Debt (Refer Note.5.5) 7,037,926,000.00 15,077,374,000.00 8,419,374,000.00 7,186,375,000.00
Sub Total-Unsecured 10,699,783,000.00 18,185,682,000.00 46,702,132,610.44 14,035,089,081.42
Total 42,311,912,309.00 52,762,585,403.10 168,647,711,664.78 133,646,914,595.02

Less: Amount included under Current
Liabilities
Current maturities of long term debt (Refer

- - 39,993,674,094.10 49,272,351,574.37
Note.7.1)
Unpaid Matured Debentures (Refer

- - 1,104,943,000.00 739,403,000.00
Note.7.2)
As per Balance Sheet 42,311,912,309.00 52,762,585,403.10 127,549,094,570.68 83,635,160,020.65
Long Term Borrowings 42,311,912,309.00 52,762,585,403.10

Short Term Borrowings 127,549,094,570.68 83,635,160,020.65
There is no continuing default as on the balance sheet date in repayment of loans and interest.

Notes on Accounts
5.2 Secured Redeemable Non-Convertible Debentures

The Company had privately placed Secured Redeemable Non-Convertible Debentures for a maturity period of 60-120
months with an outstanding amount of ` 25,190,078,000.00 (Previous Year: ` 40,908,846,000.00).
`
Amount Amount Redemption Period
Series Date of allotment from the date of Interest Rate %
As at 31st March 2017 As at 31st March 2016
allotment
CU 31.03.2014 15,000,000.00 20,000,000.00 120 months 10.50-12.50
CT 14.03.2014-31.03.2014 34,000,000.00 47,000,000.00 120 months 10.50-12.50
CS 27.02.2014-14.03.2014 47,000,000.00 57,000,000.00 120 months 10.50-12.50
CR 07.02.2014-27.02.2014 25,000,000.00 49,500,000.00 120 months 10.50-12.50
CQ 04.02.2014-07.02.2014 44,500,000.00 59,500,000.00 120 months 10.50-12.50
CP 20.01.2014-04.02.2014 84,000,000.00 92,000,000.00 120 months 10.50-12.50
CO 10.01.2014-20.01.2014 130,000,000.00 137,000,000.00 120 months 10.50-12.50
CN 03.01.2014-10.01.2014 87,500,000.00 109,000,000.00 120 months 10.50-12.50
CM 24.12.2013-03.01.2014 37,500,000.00 80,000,000.00 120 months 10.50-12.50
CL 05.12.2013-24.12.2013 41,500,000.00 64,000,000.00 120 months 10.50-12.50
CK 18.11.2013-05.12.2013 34,500,000.00 58,000,000.00 120 months 10.50-12.50
CJ 29.10.2013-18.11.2013 34,500,000.00 73,500,000.00 120 months 10.50-12.50
CI 09.10.2013-29.10.2013 39,500,000.00 47,000,000.00 120 months 10.50-12.50
CH 27.09.2013 - 09.10.2013 66,500,000.00 71,500,000.00 120 months 10.50-12.50
CG 06.09.2013 - 27.09.2013 28,000,000.00 38,500,000.00 120 months 10.50-12.50
CF 31.08.2013 - 06.09.2013 25,500,000.00 43,000,000.00 120 months 10.50-12.50
CE 12.08.2013 - 31.08.2013 36,000,000.00 62,000,000.00 120 months 10.50-12.50
CD 31.07.2013 - 10.08.2013 41,000,000.00 61,000,000.00 120 months 10.50-12.50
CC 08.07.2013 - 31.07.2013 46,000,000.00 51,500,000.00 120 months 10.50-12.50
CB 24.06.2013 - 07.07.2013 1,521,760,000.00 2,077,202,000.00 120 months 10.50-12.50
CA 18.04.2013 - 23.06.2013 2,907,819,000.00 4,145,538,000.00 120 months 10.50-12.50
BZ 01.03.2013 - 17.04.2013 2,835,202,000.00 3,766,665,000.00 120 months 10.50-12.50
BY 18.01.2013 - 28.02.2013 2,627,205,000.00 3,009,281,000.00 120 months 10.50-12.50
CZ 04.05.2016 415,000,000.00 - 60 months 9.25-9.50
CY 03.02.2016 260,000,000.00 260,000,000.00 60 months 9.50-9.75
CX 03.11.2014 - 390,000,000.00 60 months 10.00-12.00
CW 08.05.2014 60,500,000.00 72,000,000.00 60 months 10.00-12.00
CV 24.04.2014 97,000,000.00 111,000,000.00 60 months 10.00-12.00
BX 26.11.2012 - 17.01.2013 2,430,069,000.00 2,755,174,000.00 60 months 10.50-12.50
BW 01.10.2012 - 25.11.2012 3,141,937,000.00 3,568,659,000.00 60 months 11.50-12.50
BV 17.08.2012 - 30.09.2012 1,919,045,000.00 2,411,077,000.00 60 months 11.50-12.50
BU 01.07.2012 - 16.08.2012 2,234,008,000.00 2,851,060,000.00 60 months 11.50-12.50
BT 21.05.2012 - 30.06.2012 1,509,716,000.00 1,893,736,000.00 60 months 11.50-12.50
BS 01.05.2012 - 20.05.2012 662,877,000.00 807,592,000.00 60 months 11.50-12.50

Notes on Accounts
5.2 Secured Redeemable Non-Convertible Debentures (Contd.)
`
allotment
BR 01.03.2012 - 30.04.2012 1,333,893,000.00 2,562,963,000.00 60 months 11.50-12.50
BQ 23.01.2012 - 29.02.2012 154,856,000.00 1,928,350,000.00 60 months 11.50-12.50
BP 01.12.2011 - 22.01.2012 67,275,000.00 1,738,951,000.00 60 months 11.50-12.50
BO 19.09.2011 – 30.11.2011 41,730,000.00 1,602,397,000.00 60 months 11.00-12.00
BN 01.07.2011 – 18.09.2011 25,764,000.00 1,592,606,000.00 60 months 11.00-12.00
BM 01.04.2011 – 30.06.2011 12,698,000.00 1,530,981,000.00 60 months 11.00-12.00
BL 01.01.2011 - 31.03.2011 9,049,000.00 512,024,000.00 60 months 10.00-11.50
BK 01.10.2010 - 31.12.2010 5,318,000.00 54,639,000.00 60 months 9.50-11.50
BJ 01.07.2010 – 30.09.2010 5,340,000.00 19,824,000.00 60 months 9.50-11.00
BI 01.04.2010 - 30.06.2010 1,607,000.00 6,103,000.00 60 months 9.00-10.50
BH 01.01.2010 - 31.03.2010 2,077,000.00 5,617,000.00 60 months 9.00-10.50
BG 01.10.2009 - 31.12.2009 1,450,000.00 2,769,000.00 60 months 9.50-10.50
BF 01.07.2009 - 30.09.2009 1,826,000.00 2,008,000.00 60 months 10.50
BE 01.04.2009 - 30.06.2009 544,000.00 677,000.00 60 months 10.50-11.50
BD 01.01.2009 - 31.03.2009 2,862,000.00 3,032,000.00 60 months 11.00-12.00
BC 22.09.2008 - 31.12.2008 378,000.00 435,000.00 60 months 11.00-12.00
BB 10.07.2008 - 21.09.2008 105,000.00 255,000.00 60 months 11.00-11.50
AZ 01.04.2008 - 02.07.2008 1,049,000.00 1,203,000.00 60 months 10.50-11.00
AY 01.01.2008 - 31.03.2008 70,000.00 105,000.00 60 months 10.50-11.00
AX 01.10.2007 - 31.12.2007 115,000.00 115,000.00 60 months 10.50-11.00
AW 01.07.2007 - 30.09.2007 292,000.00 312,000.00 60 months 10.50-11.00
AV 01.04.2007 - 30.06.2007 117,000.00 137,000.00 60 months 10.50-11.00
AE 15.07.2004 - 30.09.2004 32,000.00 32,000.00 90 months 10.83-12.00
AU 01.01.2007 - 31.03.2007 1,237,000.00 1,262,000.00 60 months 9.00-11.00
AT 13.08.2006 - 31.12.2006 203,000.00 820,000.00 60 months 9.00-9.50
AS 01.05.2006 - 12.08.2006 186,000.00 186,000.00 60 months 8.50-9.00
AR 15.06.2005 - 30.04.2006 110,000.00 437,000.00 60 months 8.00-8.50
AQ 01.04.2005 - 14.06.2005 30,000.00 365,000.00 60 months 8.00-8.50
AP 07.02.2005 - 14.06.2005 30,000.00 30,000.00 60 months 9.27-10.08
AO 07.02.2005 - 31.03.2005 39,000.00 39,000.00 60 months 8.00-8.50
AN 01.01.2005 - 06.02.2005 148,000.00 148,000.00 60 months 8.50-9.00
AI 01.10.2004 - 06.02.2005 10,000.00 10,000.00 60 months 10.20-12.00
AD 01.07.2004 - 14.11.2004 - 30,000.00 60 months 9.50
Total 25,190,078,000.00 40,908,846,000.00
Of the above, ` 5,269,448,000.00 (Previous Year: ` 14,378,919,000.00) is included in long-term borrowings and
` 19,195,613,000.00 (Previous Year: ` 25,917,313,000.00) is included in current maturities of long-term debt (Refer Note.7.1)
and ` 725,017,000.00 (Previous Year: ` 612,614,000.00) is included in unpaid matured debentures (Refer Note.7.2).

Notes on Accounts
5.3 Secured Redeemable Non Convertible Debentures – Listed

The Company had privately placed Rated Secured Redeemable Non-Convertible Listed Debentures which matured and
was redeemed during the year.
`
Series Date of allotment As at As at from the date of Interest Rate %
31st March, 2017 31st March, 2016 allotment
L4 12.01.2012 - 1,000,000,000.00 60 Months 13.00
Total - 1,000,000,000.00
5.4 Secured Non Convertible Debentures – Public Issue

The outstanding amount of Secured Rated Non-Convertible Listed Debentures raised through Public Issue stood at
` 37,098,153,000.00 (Previous Year: ` 35,403,319,000.00 )
`
PL 16 30.01.2017 13,000,000,000.00 - 400 Days,1.5,2,3,5 years 8.25-9.25
PL 15 12.05.2016 4,763,997,000.00 - 400 Days,1.5,2,3,5 years 8.75-9.75
PL 14 20.01.2016 3,652,779,000.00 4,154,843,000.00 400 Days,2,3,5 years 9.00-10.00
PL 13 14.10.2015 3,945,916,000.00 4,640,533,000.00 400 Days,2,3,5 years 9.25-10.25
PL 12 23.04.2015 2,266,789,000.00 2,710,855,000.00 400 Days,2,3,5 years 9.75-10.75
PL 11 29.12.2014 2,039,475,000.00 3,033,948,000.00 400 Days,2,3,5 years 10.25-11.25
PL 10 26.09.2014 2,336,743,000.00 3,216,416,000.00 400 Days,2,3,5 years 10.25-11.50
PL 9 04.07.2014 2,345,257,000.00 3,793,100,000.00 400 Days,2,3,5 years 10.50-11.75
PL 8 02.04.2014 13,006,000.00 1,553,624,000.00 400 Days,2,3,5 years 10.50-11.75
PL 7 04.02.2014 37,872,000.00 2,458,544,000.00 400 Days,2,3,5 years 11.00-12.25
PL 6 04.12.2013 39,228,000.00 1,568,290,000.00 400 Days,2,3,5 years 11.00-12.25
PL 5 25.09.2013 51,760,000.00 1,533,527,000.00 400 Days,2,3,5 years 11.00-12.55
PL 4 01.11.2012 926,177,000.00 926,177,000.00 2,3,5,6 years 11.50-12.25
PL 3 18.04.2012 768,938,000.00 768,938,000.00 2, 3, 5, 5.5 years 13.00-13.43
PL 2 18.01.2012 910,216,000.00 1,502,868,000.00 2, 3, 5, 5.5 years 13.00-13.43
PL 1 14.09.2011 - 3,541,656,000.00 2, 3, 5 years 11.75-12.25
Total 37,098,153,000.00 35,403,319,000.00
Out of the above, ` 24,341,527,000.00 (Previous Year: ` 20,195,055,000.00) is classified as Long-term borrowings and
` 12,756,626,000.00 (Previous Year: ` 15,208,264,000.00 ) is classified as Current maturities of Long-term Debt (Refer
Note.7.1)

Notes on Accounts
5.5 Subordinated Debt

Subordinated Debt is subordinated to the claims of other creditors and qualifies as Tier II capital under the Non-Banking
Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016. The outstanding amount of privately placed subordinated debt stood at ` 15,457,562,000 (Previous
year: ` 22,348,156,000.00)
`
XVII 09.05.2014 21,000,000.00 21,000,000.00 72 months 11.61
XVI 18.02.2014 - 31.03.2014 46,000,000.00 46,000,000.00 66 months 12.67
XV 22.12.2013 - 17.02.2014 98,500,000.00 98,500,000.00 66 months 12.67
XIV 18.09.2013 - 21.12.2013 298,000,000.00 298,000,000.00 66 months 12.67
XIII 08.07.2013 - 17.09.2013 98,000,000.00 98,000,000.00 66 months 12.67
XII 01.04.2013 - 07.07.2013 1,825,156,000.00 1,825,156,000.00 66 months 12.67
XI 01.10.2012 - 31.03.2013 4,651,420,000.00 4,651,420,000.00 66 months 12.67-13.39
X 01.04.2012 - 30.09.2012 3,548,456,000.00 3,548,456,000.00 66 months 12.67-13.39
IX 01.11.2011 - 31.03.2012 4,081,076,000.00 4,081,076,000.00 66 months 12.67-13.39
E 21.03.2005 - 65,942,062.00 144 months 15.00
VIII 01.07.2011 - 31.10.2011 686,459,000.00 2,343,849,000.00 66 months 12.67
VII 01.01.2011 - 07.02.2011 26,059,000.00 437,284,000.00 72 months 11.61
VII 01.04.2011 - 30.06.2011 30,245,000.00 1,270,315,000.00 66 months 12.67
VII 08.02.2011 - 31.03.2011 8,992,000.00 1,080,398,000.00 66 months 12.67
VI 01.07.2010 - 31.12.2010 29,595,000.00 1,912,708,000.00 72 months 11.61
D 03.04.2004 - 14,057,938.00 144 months 15.00
V 01.01.2010 - 30.06.2010 3,064,000.00 537,538,000.00 72 months 11.61
IV 17.08.2009 - 31.12.2009 2,136,000.00 11,199,000.00 72 months 11.61
IV 01.07.2009 - 16.08.2009 50,000.00 160,000.00 72 months 12.50
IV 01.07.2009 - 16.08.2009 2,176,000.00 4,078,000.00 69 months 12.12
III 15.12.2008 - 30.06.2009 230,000.00 530,000.00 72 months 12.50
III 15.12.2008 - 30.06.2009 948,000.00 2,276,000.00 69 months 12.12
II 18.08.2008 - 13.12.2008 - 213,000.00 72 months 11.61
Total 15,457,562,000.00 22,348,156,000.00
Out of the above, ` 7,037,976,000.00 is classified as long term borrowings (Previous year: ` 15,077,636,000.00)
and ` 8,039,660,000.00 is classified as current maturities of long term debt (Previous year: ` 7,143,731,000.00) and
` 379,926,000.00 (Previous year : ` 126,789,000.00) is included in unpaid matured debentures ( Refer Note.7.2)

Notes on Accounts
5.6 Subordinated Debt – Public Issue

The outstanding amount of Unsecured, Rated, Redeemable Non-Convertible, Listed Subordinated Debt which qualifies
as Tier II capital under the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company
and Deposit taking Company (Reserve Bank) Directions, 2016 issued through public issue stood at ` 3,561,807,000.00
(Previous Year : ` 3,008,046,000.00). This amount is classified as long term borrowings.
`
PL 16 30.01.2017 317,758,000.00 - 8 Years 9.06
PL 15 12.05.2016 236,003,000.00 - 7.50 Years 9.67
PL 14 20.01.2016 230,392,000.00 230,392,000.00 7.25 Years 10.02
PL 13 14.10.2015 359,467,000.00 359,467,000.00 7 Years 10.41
PL 12 23.04.2015 289,145,000.00 289,145,000.00 6.75 Years 10.80
PL 11 29.12.2014 386,544,000.00 386,544,000.00 6.5 Years 11.23
PL 10 26.09.2014 304,362,000.00 304,362,000.00 6.5 Years 11.23
PL 9 04.07.2014 364,494,000.00 364,494,000.00 6.25 Years 11.70
PL 8 02.04.2014 193,456,000.00 193,456,000.00 6.25 Years 11.70
PL 7 04.02.2014 437,571,000.00 437,571,000.00 6 Years 12.25
PL 6 04.12.2013 232,879,000.00 232,879,000.00 6 Years 12.25
PL 5 25.09.2013 209,736,000.00 209,736,000.00 6 Years 12.25
Total 3,561,807,000.00 3,008,046,000.00
5.7 Subordinated Debt - Listed

The privately placed Unsecured, Rated, Redeemable Non-Convertible Listed Subordinated Debt which qualifies as Tier II
capital under the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit
taking Company (Reserve Bank) Directions, 2016 stood at ` 100,000,000.00 (Previous Year : ` 100,000,000.00 ). This
amount is classified as long term borrowings.
`
IA 26.03.2013 100,000,000.00 100,000,000.00 10 Years 12.35
Total 100,000,000.00 100,000,000.00
6. OTHER LONG TERM LIABILITIES

`
As at As at
Particulars
Interest accrued but not due on long term borrowings 6,643,075,352.37 11,156,872,685.41
Security Deposit Received 76,616,903.53 111,418,285.65
Total 6,719,692,255.90 11,268,290,971.06

Notes on Accounts
7. OTHER CURRENT LIABILITIES

`
As at As at
Particulars
(a) Current maturities of long term debt ( Refer Note.7.1) 39,993,674,094.10 49,272,351,574.37
(b) Interest accrued but not due on borrowings 12,518,934,602.44 9,901,174,745.94
(c) Interest accrued and due on borrowings 98,549,273.98 147,349,221.27
(d) Unpaid matured debentures and interest accrued thereon (Refer Note.7.2) 1,594,611,859.00 954,314,537.00
(e) Other payables
Statutory Payables 228,802,590.11 376,075,360.96
Unpaid Dividend 3,256,463.44 4,513,503.77
Interim Dividend Payable (Refer Note.27) 2,396,853,294.00 -
Corporate Dividend Tax Payable 487,944,203.00 -
Others 619,449,558.12 233,174,536.25
Total 57,942,075,938.19 60,888,953,479.56
7.1 Current Maturities of Long Term debts

`
As at As at
Particulars
SECURED
Secured Non- Convertible Debentures 19,195,613,000.00 25,917,313,000.00
(Secured by mortgage of immovable property and paripassu floating charge on current assets,
book debts and Loans & advances)
Secured Non-Convertible Debentures -Listed 12,756,626,000.00 16,208,264,000.00
From Banks
Term loan (Secured by specific charge on vehicles) 78,039.10 478,750.00
Term loan (Secured by specific charge on vehicles) 1,697,055.00 2,564,824.37
UNSECURED
Subordinated Debt 8,039,448,000.00 7,059,586,000.00
Subordinated Debt - From Related Parties 212,000.00 84,145,000.00
Total 39,993,674,094.10 49,272,351,574.37
7.2 Unpaid matured debentures and interest accrued thereon

`
As at As at
Particulars
Unpaid Matured Debentures 1,104,943,000.00 739,403,000.00
Interest accrued on Unpaid Matured Debentures 489,668,859.00 214,911,537.00
Total 1,594,611,859.00 954,314,537.00

Notes on Accounts
8. SHORT TERM PROVISIONS

`
As at As at
Particulars
Provision for Non Performing Assets (Refer Note.8.1) 1,019,266,455.00 1,019,266,455.00
Provision for Standard Assets (Refer Note.8.1)
- As per RBI Prudential Norms 935,074,201.00 710,293,427.00
- General 1,750,399,356.00 1,657,351,330.00
- Gold Price Fluctuation Risk 2,330,000,000.00 -
Provision for Other Losses 3,157,370.00 513,023.00
Provision for Income Tax (Net of Advance Tax and TDS of ` 6,980,816,723.27, Previous Year:
471,138,216.87 1,738,743,595.86
`3,595,461,569.14)
Total 6,509,035,598.87 5,126,167,830.86
8.1 Movement of Provision for Standard and Non-Performing Assets

As per the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking
Company (Reserve Bank) Directions, 2016, Company has created provision for Standard Assets as well as Non-Performing
Assets. Company has separately created General Standard Asset Provision and Gold Price Fluctuation Risk Standard Asset
Provision over and above RBI Prudential norms, as estimated by the management. Details are as per the table below:-
`
As at As at
Particulars
Provision for Standard Assets
Standard Assets 267,164,057,334.70 236,764,475,670.31
Provision at the beginning of the year
- General 1,657,351,330.00 572,422,861.00
- Gold Price Fluctuation Risk - -
Additional provision made / ( Reversed ) during the year
- General 93,048,026.00 1,084,928,469.00
Provision at the close of the year
- General 1,750,399,356.00 1,657,351,330.00
5,015,473,557.00 2,367,644,757.00
Non-Performing Assets
Substandard Assets 4,967,757,507.00 6,668,310,565.00
Doubtful Assets 653,538,619.71 356,302,035.00
Total Non-Performing Assets 5,621,296,126.71 7,024,612,600.00
Provision for Non-Performing Assets
Provision at the beginning of the year 1,019,266,455.00 725,382,249.00
Additional provision made during the year - 293,884,206.00
Provision at the close of the year 1,019,266,455.00 1,019,266,455.00

Notes on Accounts
9. FIXED ASSETS - 31st March 2017
`
Fixed Assets Gross Block Accumulated Depreciation Net Block
Depreciation/ Deductions/
As at As at As at Amortisation adjustments As at As at As at
Additions Disposals
April 1, 2016 March 31, 2017 April 1, 2016 Charge for during the March 31, 2017 March 31, 2017 March 31, 2016
the Period Period
a Tangible
Assets
Land 546,698,212.00 - - 546,698,212.00 - - - - 546,698,212.00 546,698,212.00
Buildings 692,746,420.70 71,074,942.00 - 763,821,362.70 221,406,975.31 47,306,782.00 - 268,713,757.31 495,107,605.39 471,339,445.39
Furniture and
1,221,613,244.58 60,651,866.28 5,578,533.26 1,276,686,577.60 897,690,336.78 116,837,210.55 3,798,414.00 1,010,729,133.33 265,957,444.27 323,922,907.80
Fixtures
Plant and
1,848,575,661.19 149,127,042.17 1,886,986.11 1,995,815,717.25 1,172,204,034.46 234,767,482.22 1,377,621.00 1,405,593,895.68 590,221,821.57 676,371,626.73
Equipment
Computer 837,172,863.39 61,656,258.52 1,366,429.54 897,462,692.37 770,654,791.76 51,212,451.81 1,292,545.00 820,574,698.57 76,887,993.80 66,518,071.63
Motor Car 82,720,215.09 3,475,551.00 1,892,743.00 84,303,023.09 54,906,172.21 7,432,314.23 1,599,744.00 60,738,742.44 23,564,280.65 27,814,042.88
Wind Mill 180,598,860.00 - - 180,598,860.00 155,144,325.06 2,106,062.00 - 157,250,387.06 23,348,472.94 25,454,534.94
Total 5,410,125,476.95 345,985,659.97 10,724,691.91 5,745,386,445.01 3,272,006,635.58 459,662,302.81 8,068,324.00 3,723,600,614.39 2,021,785,830.62 2,138,118,841.37
Previous Year 5,249,559,214.95 180,971,422.56 20,405,160.56 5,410,125,476.95 2,731,041,105.67 558,450,932.91 17,485,403.00 3,272,006,635.58 2,138,118,841.37 2,518,518,109.28
Corporate Overview
b Intangible
Assets
Computer
90,131,820.34 36,663,377.00 - 126,795,197.34 43,429,553.00 22,842,083.00 - 66,271,636.00 60,523,561.34 46,702,267.34
software
Total 90,131,820.34 36,663,377.00 - 126,795,197.34 43,429,553.00 22,842,083.00 - 66,271,636.00 60,523,561.34 46,702,267.34
Previous Year 81,243,120.34 8,888,700.00 - 90,131,820.34 26,733,026.00 16,696,527.00 - 43,429,553.00 46,702,267.34 54,510,094.34
Statutory Reports
c Capital Work
- - - - - - - - 99,749,115.00 88,904,661.00
In Progress
Total - - - - - - - - 99,749,115.00 88,904,661.00
Previous Year - - - - - - - - 88,904,661.00 63,317,949.00

d Intangible
assets under
Development
Computer
- - - - - - - - - -
143
Software
Total - - - - - - - - - -
Previous Year - - - - - - - - - 5,319,943.00
Notes on Accounts
10. NON – CURRENT INVESTMENTS

Non – Current Investments in Equity instruments, Government Securities and Debentures (Valued at cost less other than
temporary diminution in value, if any) :-
`
As at As at
Particulars
TRADE INVESTMENTS
(I) INVESTMENTS IN EQUITY INSTRUMENTS
- In Subsidiary Companies
Quoted:
Asia Asset Finance PLC, Sri Lanka 392,851,226.84 386,753,469.97
503,524,700 Equity shares of Sri Lankan Rupee 1/- each fully paid up
(Previous year: 501,031,126 Equity shares of Sri Lankan Rupee 1/- each fully paid up )
Unquoted:
Muthoot Homefin (India) Limited 752,694,000.00 449,115,000.00
66,200,000 Equity shares of ` 10/- each fully paid up (Previous Year: 39,500,000 Equity
shares of ` 10/- each fully paid up)
Muthoot Insurance Brokers Private Limited 200,000,000.00 -

500,000 Equity shares of ` 10/- each fully paid up (Previous Year: Nil)
Belstar Investment and Finance Private Limited 626,752,450.80 -

15,017,459 Equity shares of ` 10/- each fully paid up (Previous Year: Nil)
- In Other Companies
Unquoted:
Muthoot Forex Limited 19,700,000.00 19,700,000.00
1,970,000 Equity shares of ` 10/- each fully paid up (Previous year: 1,970,000 Equity
Muthoot Securities Limited 27,000,000.00 27,000,000.00

2,700,000 Equity share of ` 10/- each fully paid up (Previous Year: 2,700,000 Equity
share of ` 10/- each fully paid up)
(II) INVESTMENTS IN DEBENTURES

- In Subsidiary Companies
Unquoted:
Belstar Investment and Finance Private Limited 10,000,000.00 100,000,000.00
(10 , 15% Unsecured Subordinated Redeemable Non-convertible Debentures of
` 1,000,000/- each fully paid up (Previous year: 100 , 15% Unsecured Subordinated
Redeemable Non-convertible Debentures of ` 1,000,000/- each fully paid up))

Notes on Accounts
10. NON – CURRENT INVESTMENTS (CONTD.)

`
As at As at
Particulars
OTHER INVESTMENTS
- In Other Companies
Quoted:
Union Bank of India 49,940.00 49,940.00
454 Equity shares of ` 10/- each fully paid up
(Previous year: 454 Equity shares of ` 10/- each fully paid up)
(II) INVESTMENTS IN GOVERNMENT SECURITIES

Quoted:
Gujarat State Development Loan 15,408,625.00 -
(50,000, 8.89% bonds of `100 each and 100,000, 8.94% bonds of `100
each (Previous year : Nil)
Kerala State Development Loan 20,687,550.00 -

(100,000, 9.03% bonds of `100 each and 100,000, 9.72% bonds of `100 each
(Previous year : Nil)
Karnataka State Development Loan 5,200,250.00 -

(50,000, 8.90% bonds of `100 each (Previous year : Nil)
Tamilnadu State Development Loan 10,429,686.00 -

Punjab State Development Loan 10,381,500.00 -

Total Non-Current Investments 2,091,155,228.64 982,618,409.97
Investments - Category wise
Aggregate Amount of Quoted Investments 455,008,777.84 386,803,409.97

Aggregate Market Value of Quoted Investments 366,062,468.64 284,636,545.24
Aggregate Amount of Unquoted Investments 1,636,146,450.80 595,815,000.00

Notes on Accounts
11. DEFERRED TAX ASSET / (LIABILITY)

As per the requirement of the Accounting Standard 22, the Company has created a deferred tax asset provision, which
consist of the following :-
`
Deferred Tax Asset/(Liability)
Particulars At the beginning of Credits/(Charge) At the close of the
the Period during the period period
Deferred Tax Asset:
Timing Difference on account of :
Depreciation and Amortization 173,436,638.26 40,498,889.00 213,935,527.26
Provisions 346,303,194.90 - 346,303,194.90
Net Deferred Tax Asset 519,739,833.16 40,498,889.00 560,238,722.16
The Company has not recognized any deferred tax asset on provision for standard assets as the Company is of the opinion that
such provision does not give rise to a timing difference which has a reasonable certainty of its reversal in future.
12. LONG TERM LOANS AND ADVANCES

`
As at As at
Particulars
Loan Assets (Refer Note.15.1)
Secured, Considered good
-Related parties
Belstar Investment and Finance Private Ltd (Subsidiary) 116,665,000.00 -
Other Deposits and Advances
Unsecured, considered good
Capital Advances 79,043,827.00 57,999,610.10
Security Deposits 889,550,007.68 944,979,511.68
Total 1,085,258,834.68 1,002,979,121.78
Security Deposit includes ` 1,770,000.00 (Previous Year: ` 1,770,000.00) being rent deposit due by Promoter Directors and `
1,470,000.00 (Previous Year: ` 1,470,000.00) being rent deposits due by firms in which Promoter Directors are partners.
13. TRADE RECEIVABLES

`
As at As at
Particulars
Trade receivables outstanding for a period less than six months from the date they are
due for payment
Secured, considered good
Interest Receivable on Loan Assets 12,568,973,736.00 9,489,434,454.04
Interest Receivable on Loan Assets - 293,913.00
Receivables from Money Transfer business 117,117,995.00 158,804,030.03
Receivables from Auction Proceeds - 5,012,609,250.00
Wind Mill income receivable 3,293,254.00 1,380,670.00
Sub-Total 12,689,384,985.00 14,662,522,317.07

Notes on Accounts
13. TRADE RECEIVABLES (CONTD.)

`
As at As at
Particulars
Trade receivables outstanding for a period exceeding six months from the date they are
due for payment
Sub-Total 16,660,273.50 10,124,469.50
Grand Total 12,706,045,258.50 14,672,646,786.57
14. CASH AND BANK BALANCES

`
As at As at
Particulars
I. Cash and Cash Equivalents
a. Cash on hand 1,627,320,471.00 1,476,104,115.87
b. Balances with banks
Current Accounts 11,264,656,156.29 5,288,344,057.54
Fixed Deposits (maturing within a period of 3 months ) - -
II. Other Bank Balances
Fixed Deposits on which lien is marked 1,349,818.48 1,225,927.47
Balance in other Escrow Accounts
Interim Dividend 2,396,853,294.00 -
Unpaid Dividend Account 3,256,463.44 4,513,503.77
Unclaimed Interest and redemption proceeds of Non Convertible debentures-
31,739,108.25 4,183,271.25
Public Issue
Fixed Deposits given as Security for borrowings 11,767,537.00 11,582,038.00
Fixed Deposits given as Security for Guarantees 5,593,750.00 5,143,750.00
Total 15,342,536,598.46 6,791,096,663.90
15. SHORT TERM LOANS AND ADVANCES

`
As at As at
Particulars
Loan Assets (Refer Note.15.1)
Secured, Considered good
-Related parties
- Other than Related parties 266,801,983,651.00 236,469,457,958.00
Secured, Doubtful 5,435,986,812.00 7,018,949,304.00
Unsecured, Considered good 178,740,683.70 295,017,712.31
Unsecured, Doubtful 185,309,314.71 5,663,296.00

Notes on Accounts
15. SHORT TERM LOANS AND ADVANCES (CONTD.)

`
As at As at
Particulars
Prepaid Expenses 43,214,305.00 42,613,905.00
Service tax Pre-Deposit 8,952,903.00 8,329,590.00
Others 435,799,891.03 397,656,330.09
Unsecured, Considered doubtful 145,910.00 -
Total 273,156,801,470.44 244,237,688,095.40
15.1 Loan Assets

`
As at As at
Particulars
Loan assets 272,785,353,461.41 243,789,088,270.31
Breakup of Loan assets

Gold Loan Receivables 272,199,599,670.00 243,355,407,815.00
Other Loans
- Related parties
- Other than Related parties 402,420,791.41 433,680,455.31
16. OTHER CURRENT ASSETS

`
As at As at
Particulars
Interest receivable on Bank Deposits 522,672.81 732,805.00
Stock of Gold 6,101,253.00 6,101,253.00
Total 6,623,925.81 6,834,058.00
17. REVENUE FROM OPERATIONS

`
Particulars
31st March 2017 31st March 2016
Interest Income on Loan Assets 56,368,880,421.96 47,995,240,372.96
Income from Windmill 19,953,527.50 11,443,093.50
Other Operating Income 897,437,191.69 607,322,449.82
Total 57,286,271,141.15 48,614,005,916.28

Notes on Accounts
18. OTHER INCOME

`
Particulars
Interest Income- Others 152,640,632.65 130,155,978.42
Interest on Income tax Refund - 516,320.00
Other non-operating income 3,241,956.52 1,083,351.00
Total 180,743,778.86 136,145,020.02
19. EMPLOYEE BENEFITS EXPENSE

`
Particulars
Salaries and incentives 6,680,902,664.12 5,770,647,121.10
Contribution to Provident and Other Funds 461,043,082.00 432,114,887.94
Expenses on Employees Stock Option Plan ( Refer Note.24 c ) 36,194,255.00 115,299,604.00
Staff welfare expenses 102,337,377.34 100,716,956.52
Total 7,280,477,378.46 6,418,778,569.56
20. FINANCE COSTS

`
Particulars
Interest Expenses 22,674,108,399.40 22,418,307,045.78
Other Borrowing Costs 264,043,419.29 158,622,311.73
Total 22,938,151,818.69 22,576,929,357.51

Notes on Accounts
21. OTHER EXPENSES

`
Particulars
Postage, Telegram and Telephone 372,101,063.11 378,105,239.04
Printing and Stationery 128,981,100.39 143,743,985.99
Rent Paid 1,807,851,412.79 1,712,975,594.74
Travelling and Conveyance 186,482,410.74 187,391,157.20
Bank Charges 42,017,240.22 18,630,635.13
Electricity Charges 261,076,711.37 245,645,044.77
Repairs and Maintenance - Buildings 91,935,813.51 84,314,525.00
Repairs and Maintenance - Plant & Machinery 188,662,052.39 127,082,328.97
Repairs and Maintenance - Others 35,186,954.47 2,491,920.06
ATM Service charges 47,105,974.05 76,397,616.52
Water Charges 6,084,153.83 5,176,092.78
Rates & Taxes and License Fee 38,554,492.81 35,273,526.76
Legal & Professional Charges 124,114,764.73 92,421,321.23
Insurance Charges 60,569,394.00 56,736,487.95
Newspaper and Periodicals 176,725.50 1,934,200.00
Business Promotion Expense 200,538,649.50 148,871,551.92
Advertisement 531,812,484.21 626,121,370.18
Vehicle Hire & Maintenance 14,787,995.47 13,575,336.55
Internal Audit and Inspection Expenses 85,889,431.65 82,225,164.00
Remuneration to Auditors ( Refer Note.21.1) 3,363,750.00 2,975,500.00
Directors' Sitting Fee 655,050.00 380,000.00
Commission to Non-Executive Directors 3,500,000.00 3,000,000.00
Loss on Sale of Fixed Assets 755,203.66 106,712.06
CSR Expenses ( Refer Note.25) 149,997,000.00 146,187,500.00
Total 4,382,199,828.40 4,191,762,810.85
21.1 Auditors’ Remuneration (including Service Tax)

`
Particulars
Statutory Audit 2,185,000.00 1,946,500.00
Tax Audit 575,000.00 343,500.00
Other Services 603,750.00 685,500.00
Total 3,363,750.00 2,975,500.00

Notes on Accounts
22. PROVISIONS AND WRITE OFFS

`
Particulars
Provision for Non-Performing Assets (Refer Note.8.1) - 293,884,206.00
- General 93,048,026.00 1,084,928,469.00
Bad Debts Written Off 165,435,823.75 107,195,186.50
Total 2,815,908,970.75 1,624,391,450.50
23. LEASES Lease rentals received for assets let out on operating
The Company has not taken or let out any assets on lease ` 3,241,956.52 (Previous year: ` 1,011,051.00)
financial lease. are recognized as income in the Statement of Profit and
Loss under the head ‘Other Income’ and lease rental
All operating lease agreements entered into by the payments for assets taken on an operating lease
Company are cancellable in nature. Hence Company ` 1,807,851,412.79 (Previous year:
has debited/credited the lease rent paid/received to the ` 1,712,975,594.74) are recognized as ‘Rent Paid’ in the
Statement of Profit and Loss. Statement of Profit and Loss.
Consequently, disclosure requirement of future

minimum lease payments in respect of non-cancellable
operating lease as per AS 19 is not applicable to the
Company.

Notes on Accounts
24. EMPLOYEE BENEFITS

a) Defined Contribution Plan
During the year, the Company has recognized the contribution to Provident Fund, in the Statement of Profit and
Loss in Note.19- Employee Benefit Expenses as under:-
`
Particulars
Contribution to Provident Fund 252,585,899.00 246,915,284.00
Total 252,585,899.00 246,915,284.00
b) Defined Benefit Plan

Gratuity Plan
Gratuity liability is funded through a Gratuity Fund managed by Kotak Mahindra Old Mutual Life Insurance Limited
and ICICI Prudential Life Insurance Company Limited.
The following table sets out the status of the Gratuity Plan as required under AS 15.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets:-
`
As at As at
Particulars
A) Reconciliation of opening and closing balance of defined benefit obligation
Present value of Defined Benefit Obligation at the beginning of the year 604,607,427.00 496,663,797.00
Interest Cost 44,740,949.60 38,739,776.00
Current Service Cost 129,949,535.64 113,495,321.00
Benefits paid (36,366,510.00) (33,303,027.00)
Actuarial (gain)/loss 18,589,858.35 (10,988,440.00)
Present value of Defined benefit obligation at the end of the year 761,521,260.59 604,607,427.00
B) Reconciliation of opening and closing balance of fair value of Plan Assets
Fair value of plan assets at the beginning of the year 602,215,964.00 489,155,052.00
Expected rate of return on plan assets 43,498,930.20 38,770,045.00
Contributions 122,392,000.00 109,308,745.00
Benefits paid (36,366,510.00) (33,303,027.00)
Actuarial gains/(losses) on plan assets 24,508,594.73 (1,714,851.00)
Fair value of plan assets at the end of the year 756,248,978.93 602,215,964.00
C) Expenses recognised in the Statement of Profit and Loss
Current service cost 129,949,535.64 113,495,321.00
Interest Cost 44,740,949.60 38,739,776.00
Expected rate of return on plan assets (43,498,930.20) (38,770,045.00)

Notes on Accounts
b) Defined Benefit Plan (Contd.)

`
As at As at
Particulars
Actuarial (gains)/losses (5,918,736.38) (9,273,589.00)
Employer Expense 125,272,818.66 104,191,463.00
D) Investment details
Insurer managed funds 756,248,978.96 602,215,964.00
E) Experience adjustment
On Plan Liability (Gain)/Losses (6,398,468.65) (23,928,570.00)
On Plan Assets (Losses)/Gain 22,308,000.00 (5,194,215.00)
F) Actuarial assumptions
Discount rate 6.8% p.a 7.4% p.a
Salary Escalation 7.0% p.a 7.0% p.a
Rate of return on plan assets 7.4% p.a 7.8% p.a
The estimates of rate of escalation in salary considered in The deficit in funding of gratuity ` 5,273,000/-(rounded off in
actuarial valuation, take into account inflation, seniority, ‘000) (Previous year ` 2,391,462.94) has been accounted as
promotion and other relevant factors including supply and Long term provisions.
demand in the employment market. Discount rate is based
on the prevailing market yields of the Government Bond as at Estimated employer contribution for 2017-18 -
Balance Sheet date for the estimated term of obligation. ` 130,000,000/-
Amounts for the current year and previous four years are as follows:
`
Particulars 31st March, 2017 31st March, 2016 31st March 2015 31st March 2014 31st March 2013
Defined benefit obligation 761,521,260.59 604,607,427.00 496,663,797.00 393,042,542.00 304,110,843.00
Plan Assets 756,248,978.93 602,215,964.00 489,155,052.00 374,309,455.00 301,701,553.00
Surplus / ( Deficit) (5,272,281.66) (2,391,463.00) (7,508,745.00) (18,733,087.00) (2,409,290.00)
Experience adjustments on Plan Liabilities -
(6,398,468.65) (23,928,570.00) (56,396,310.00) 5,783,620.00 141,138,572.00
(Gains) / Losses
Experience adjustments on Plan Assets -
22,308,000.00 (5,194,215.00) 25,442,982.00 (7,892,817.00) 7,758,169.00
(Losses) / Gains

Notes on Accounts
154
c) Employee stock option
Pursuant to approval by the shareholders at their meeting held on 27th September, 2013, the Company has established “Muthoot ESOP 2013” scheme
administered by the ESOP Committee of Board of Directors. The following options were granted as on 31st March, 2017 :-
Tranche 1 Tranche 2 Tranche 3 Tranche 4
Particulars
Grant A Grant B Loyalty Grant A Grant B Loyalty Grant A Grant A Grant B Loyalty
Date of Grant 09.11.2013 09.11.2013 09.11.2013 08.07.2014 08.07.2014 08.07.2014 06.03.2015 27.06.2016 27.06.2016 27.06.2016

Date of Board
09.11.2013 09.11.2013 09.11.2013 08.07.2014 08.07.2014 08.07.2014 06.03.2015 27.06.2016 27.06.2016 27.06.2016
approval
Method of
Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled
settlement
Number of
One option - One option - One option - One option - One option - One option - One option - One option - One option - One option -
equity shares
One share One share One share One share One share One share One share One share One share One share
for an option
Number
of options 3,711,200 1,706,700 1,571,075 456,000 380,900 6,100 325,000 390,400 728,300 8,150
granted
Exercise price ` 50 ` 50 ` 10 ` 50 ` 50 ` 10 ` 50 ` 50 ` 50 ` 10
Vesting period 1-5 years 2-6 years 1-2 years 1-5 years 2-6 years 1-2 years 1-5 years 1-5 years 2-6 years 1-2 years
In a graded In a graded manner over a In a graded In a graded manner over a In a graded In a graded In a graded manner over a
manner over a manner over a 2 year period manner over a manner over a 2 year period manner over a manner over a manner over a 2 year period
5 year period 6 year period with 50% 5 year period 6 year period with 50% 5 year period 5 year period 6 year period with 50%
with 10%, with 10%, vesting at with 10%, with 10%, vesting at with 10%, with 10%, with 10%, vesting at
15%, 20%, 15%, 20%, the end of 12 15%, 20%, 15%, 20%, the end of 12 15%, 20%, 15%, 20%, 15%, 20%, the end of 12
25% and 25% and months from 25% and 25% and months from 25% and 25% and 25% and months from
Manner of 30% of the 30% of the the date of 30% of the 30% of the the date of 30% of the 30% of the 30% of the the date of
vesting grants vesting grants vesting grant and the grants vesting grants vesting grant and the grants vesting grants vesting grants vesting grant and the
in each year in each year remaining 50% in each year in each year remaining 50% in each year in each year in each year remaining 50%
commencing commencing of the grants commencing commencing of the grants commencing commencing commencing of the grants
from the end from the end vesting at from the end from the end vesting at from the end from the end from the end vesting at
of 12 months of 24 months the end of 24 of 12 months of 24 months the end of 24 of 12 months of 12 months of 24 months the end of 24
from the date from the date months from from the date from the date months from from the date from the date from the date months from
of grant of grant the date of of grant of grant the date of of grant of grant of grant the date of
grant grant grant
Notes on Accounts
Movement in the options granted under ESOP is as follows :-
Year ended 31st March 2017
Particulars Tranche 1 Tranche 2 Tranche 3 Tranche 4
Total
Options
outstanding-
1,880,500 821,430 80,666 345,630 236,800 2,262 292,500 - - - 3,659,788
beginning of the
year
Options granted
- - - - - - - 390,400 728,300 8,150 1,126,850
during the year
Options exercised
321,115 47,940 34,295 45,655 4,600 2,012 17,600 - - - 473,217
during the year
Options lapsed
656,595 487,285 17,147 68,625 123,690 50 - 39,700 82,100 325 1,475,517
during the year
Options
outstanding- end 902,790 286,205 29,224 231,350 108,510 200 274,900 350,700 646,200 7,825 2,837,904
of the year
Options
62,990 25,450 29,224 4,100 7,170 200 31,150 - - - 160,284
exercisable

Corporate Overview

Total
Options
outstanding-
2,844,390 1,235,700 783,817 415,200 291,592 5,350 325,000 - - - 5,901,049
beginning of the
year
Options granted
- - - - - - - - - - -
during the year
Statutory Reports
Options exercised
295,040 38,440 630,665 35,400 1,392 2,476 32,500 - - - 1,035,913
during the year
Options lapsed
668,850 375,830 72,486 34,170 53,400 612 - - - - 1,205,348
during the year
Options
outstanding- end 1,880,500 821,430 80,666 345,630 236,800 2,262 292,500 - - - 3,659,788

of the year
Options
66,035 23,590 69,194 4,080 - 50 - - - - 162,949
exercisable
155
The Company has used Intrinsic value method for accounting of Employee Stock Compensation costs. Intrinsic Value is the amount by which, the quoted closing
market price of the underlying shares as on the date of grant exceeds the exercise price of the option.
Notes on Accounts
156
The fair value of options based on valuation of independent valuer using Black-Scholes Method as of the respective date of grant are given below :-
Particulars
` 68.75 ` 70.21 ` 102.01 ` 131.77 ` 130.56 ` 166.69 ` 165.61 ` 226.42 ` 223.87 ` 262.48
(Nov 9,2014) (Nov 9, 2015) (Nov 9,2014) (July 8,2015) (July 8,2016) (July 8,2015) (Mar 6,2016) (June 27, 2017) (June 27, 2018) (June 27, 2017)
Fair value per
` 70.21 ` 71.13 ` 98.64 ` 130.56 ` 129.33 ` 161.77 ` 163.16 ` 223.87 ` 221.34 ` 257.37
option tranche

(Nov 9, 2015) (Nov 9,2016) (Nov 9,2015) (July 8,2016) (July 8,2017) (July 8,2016) (Mar 6,2017) (June 27, 2018) (June 27, 2019) (June 27, 2018)
on grant date
` 71.13 ` 71.52 ` 129.33 ` 127.91 ` 160.66 ` 221.34 ` 218.80
(corresponding
(Nov 9,2016) (Nov 9,2017) (July 8,2017) (July 8,2018) (Mar 6,2018) (June 27, 2019) (June 27, 2020)
vesting date
` 71.52 ` 71.47 ` 127.91 ` 126.26 ` 158.13 ` 218.80 ` 216.20
shown in
bracket)
` 71.47 ` 71.11 ` 126.26 ` 124.39 ` 155.57 ` 216.20 ` 213.54
The significant assumptions made for calculation of fair value are as follows :-
Particulars
Risk free 8.4% - 8.8% 8.4%-8.95% 8.4% -8.45% 8.26% - 8.35% 8.24% - 8.32% 8.32% - 8.35% 7.45% - 7.60 6.91% - 7.41% 7.08% - 7.47% 6.91% - 7.08%
interest rate p.a. p.a. p.a. p.a. p.a. p.a. % p.a. p.a. p.a. p.a.
Expected
average life of 1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years 1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years 1.5 – 5.5 years 1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years
option
Expected
0.5768 0.5768 0.5768 0.5396 0.5396 0.5396 0.3450 0.3698 0.3698 0.3698
Volatility
Expected
3.84 % p.a. 3.84 % p.a. 3.84 % p.a. 3.26% p.a. 3.26% p.a. 3.26% p.a. 2.74% p.a. 2.14% p.a. 2.14% p.a. 2.14% p.a.
Dividend Yield
Notes on Accounts
The Company has used Intrinsic value method for accounting of Employees Stock Compensation costs.
`
As at As at
Particulars
Employee Stock Option Liability
Opening Total Employee Stock Option Liability 325,179,165.50 506,390,012.40
Increase in Liability on account of fresh ESOP grants 259,895,890.25 -
Reduction in Liability on account of Exercise on vesting (38,592,473.10) (98,349,459.90)
Reduction in Liability on account of lapse of grants (68,127,764.70) (82,861,387.00)
Closing Total Employee Stock Option Liability 478,354,817.95 325,179,165.50
Employee Stock Option Compensation Expenses

Opening Deferred Stock Option Compensation Expenses 101,509,319.10 299,670,310.10
Increase in ESOP Compensation Expenses on account of fresh ESOP grants 259,895,890.25 -
Compensation Expenses amortised during the year (36,194,255.00) (115,299,604.00)
Reduction in Compensation Expenses on account of lapse of grants (68,127,764.70) (82,861,387.00)
Closing Deferred Stock Option Compensation Expenses 257,083,189.65 101,509,319.10
Employee Stock Option Reserve

Employee Stock Option Liability 478,354,817.95 325,179,165.50
Less: Deferred Employee Stock Option Compensation Expenses 257,083,189.65 101,509,319.10
Employee Stock Option Reserve 221,271,628.30 223,669,846.40
Had the Company adopted Fair value method in respect of Options granted instead of Intrinsic value method, the impact in the
financial statements for the year would be :-
`
Particulars
Decrease in employee compensation costs 5,590,268 22,098,908.00
Increase in profit after tax 5,590,268 22,098,908.00
Increase in Basic EPS ( ` per share) 0.01 0.06
Increase in Diluted EPS ( ` per share) 0.01 0.05

Notes on Accounts
25. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The company has constituted CSR Committee and has undertaken CSR activities in accordance with Schedule VII to
the Companies Act, 2013 mainly through the trust, Muthoot M George Foundation. Muthoot M George Foundation is a
public charitable trust formed under Indian Trust Act, 1882 which has registration under section 12 AA of Income Tax
Act, 1961. The gross amount required to be spent by the Company as per Section 135 of the Companies Act, 2013 is
` 235,877,834.00 (Previous Year : ` 248,857,253.00 ) and the Company has spent ` 149,997,000.00
(Previous Year: ` 146,187,500.00 ) towards various activities as below:-
`
As at As at
CSR Activity
Promoting Education 71,176,933.00 81,442,195.00
Medical Aid 60,375,575.00 52,324,261.00
Others 18,444,492.00 12,421,044.00
Total 149,997,000.00 146,187,500.00
26. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR):-
`
As at As at
Particulars
(i) Contingent Liabilities
(a) Claims against the Company not acknowledged as debt
(i) Service Tax demand for the period 2003-2008, pending in appeal with CESTAT,
49,921,307.00 49,921,307.00
Bangalore (Net of amount already remitted).
Commissioner of Central Excise, Customs and Service Tax, Kochi has raised a demand
of ` 52,007,698.00 (Previous year: ` 52,007,698.00) as Service tax liability and penalty.
During the course of the proceedings, Company paid ` 2,086,391.00. The Appellate
Authority admitted the appeal preferred by the Company and granted stay of recovery,
on predeposit of ` 8,300,000.00 (Previous year: ` 8,300,000.00). Pending disposal of
appeal, no provision has been made by the Company during the year.
(ii) Service Tax demand for the period from 2007-08 to 2011-12 as per Order No.COC-
EXCUS-000-COM-035-14-15 DT.19.12.2014, served on 30.12.2014, pending in appeal 4,895,883,216.00 4,895,883,216.00
with CESTAT, Bangalore.
Commissioner of Central Excise, Customs and Service Tax, Kochi, as per order
mentioned above, has raised a demand of ` 1,531,458,734.00 as service tax payable
on securitisation transactions with banks for the period from 2007 to 2012, along
with interest U/s.75, Penalty U/s.76, Penalty U/s.77 and Penalty U/s.78 (Total liability
including tax, interest and penalty under various sections if confirmed is estimated
approximately at ` 4,895,883,216.00 till date of demand) . Pending disposal of appeal,
no provision has been made by the Company during the year.
(iii) Service Tax demand for the financial year 2013-14 as per Order No.03/2015-ST
790,046.00 790,046.00
DT.20.01.2015, served on 23.01.2015, pending in appeal before CESTAT, Bangalore.

Notes on Accounts
FOR):- (CONTD.)
`
As at As at
Particulars
Deputy Commissioner of Central Excise & Customs, & Service Tax, Kochi, as per order
mentioned above, has raised a demand of ` 790,046.00 (including penalty U/s 77 (2)
and 78) as service tax payable, on foreign payments during financial year 2013-14.
Appeal filed before Commissioner (Appeals), Kochi rejected. Pending disposal of appeal
filed before CESTAT, Bangalore, no provision has been made by the Company during the
year.
(iv) Service Tax demand for the period 2010-2011 to 2012-13 as per Order No.04-15-16
44,572,043.00 44,572,043.00
dated 11.05.2015, pending in appeal with CESTAT, Bangalore.
Commissioner of Central Excise, Customs & Service Tax, Kochi, as per order mentioned
above has raised a demand of ` 26,000,802.00 along with penalty U/s 76 and 78, as
service tax payable, on money transfer commission received during financial years
2010-11 to 2012-13. Total liability of tax and penalty if confirmed is estimated at
` 44,572,043.00. Pending disposal of the appeal, no provision has been made by
the Company during the year.
v) Service Tax demand for the period 2008-09 to 2010-2011 as per Order No.32/2015
2,155,312.00 2,155,312.00
dated 30.04.2015 pending in appeal with CESTAT, Bangalore.
Joint Commissioner of Central Excise, Customs & Service Tax, Kochi, as per order
mentioned above has raised a demand of ` 2,155,312.00 (including penalty under
Rule 15 and Section 78) as service tax payable, stating that some CENVAT credit was
wrongly availed during the period 2008-09 to 2010-11. Appeal filed by the Company
before Commissioner (Appeals), Kochi has been rejected. Pending disposal of appeal
filed before CESTAT, Bangalore against the above order, no provision has been made by
the Company during the year.
vi) Service Tax demand relating to foreign payments for the period 2007-08 to 2012-2013
as per consolidated Order Nos.70 to 72/2016/ST dated 18.03.2016 pending in appeal 5,364,614.00 5,364,614.00
with Commissioner of Central Excise (Appeals), Kochi.
mentioned above has raised a demand of ` 5,364,614.00 including tax and penalty
relating to service tax on marketing expenses reimbursed abroad. Pending disposal of
the appeal, no provision has been made by the Company during the year.
vii) Service Tax demand relating to money transfer commission received for the period
2013-14 as per Order No.85/2015-16/ST dated 18.02.2016 pending in Writ Petition 11,038,893.00 11,038,893.00
before the High Court of Kerala.
above has raised a demand of ` 11,038,893.00 including tax and penalty, by disposing
SCN.26/2015 relating to service tax on money transfer income for the period 2013-14.
Pending disposal of the Writ Petition, no provision has been made by the Company
during the year.

Notes on Accounts
FOR):- (CONTD.)
`
As at As at
Particulars
viii) Service Tax demand relating to money transfer commission received for the period April
to September 2014 as per Order No.13/2017 ST dated 27.01.2017 pending in appeal 6,805,240.00 -
before the Commissioner (Appeals), Kochi.
The Additional Commissioner of Central Excise, Customs & Service Tax, Kochi, as per
order mentioned above has raised a demand of ` 6,182,037/- along with penalties
U/s.77(2) and U/s.76 and interest u/s.75 relating to service tax on money transfer
income for the period April to September 2014. Pending disposal of appeal before the
Commissioner(Appeals), Kochi, no provision has been made by the Company during the
year.
ix) Income tax demand for the Assessment Year ( A.Y ) 2012-13, pending rectification
27,120,000.00 27,120,000.00
petition and in appeal with Commissioner of Income Tax (Appeals)-II, Kochi.
The demand outstanding as per Intimation U/s.143(1) was ` 5,099,103.00. Additional
Commissioner of Income Tax, Corp. Range -1, Kochi issued an Order U/s.143(3) dated
02.03.2015 superseding the earlier order by demanding tax of ` 29,230,000.00. Out
of the above, the Company remitted ` 2,110,000.00 and the balance outstanding is
` 27,120,000.00. Appeal filed with CIT (A)-II, Kochi and rectification application with
Addl. CIT are pending for disposal. Pending disposal no provision has been made by the
company for the year.
x) Income Tax demand for Assessment Year 2010-11, pending in appeal with Income tax
14,563,505.00 14,563,505.00
Appellate Tribunal, Kochi.
Additional Commissioner of Income Tax, Range 1, Kochi has passed an order
demanding ` 36,384,640.00 towards income tax due for the Assessment Year 2010-
11 U/s.143(3).The Company has remitted ` 21,821,135.00 and the balance demand
outstanding as on 31.03.2017 is ` 14,563,505.00. CIT (A), Kochi has partly allowed
the appeal, but the rectification order is pending. Company has filed appeal with ITAT,
Kochi. Pending rectification order and appeal with ITAT, Kochi, no provision has been
made by the company during the year.
xi) Draft order on proposed action U/s.13 of Prevention of Money Laundering Act,2002
pending in appeal with Appellate Tribunal under Prevention of Money Laundering Act, 26,970,000.00 26,970,000.00
2002 .
xii) Disputed claims against the company under litigation not acknowledged as debts 88,799,925.00 53,749,585.00
xiii) Guarantees - Counter Guarantees Provided to Banks 228,693,750.00 199,943,750.00
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital account and not
450,000,000.00 44,452,000.00
provided for.

Notes on Accounts
27. DIVIDEND DISTRIBUTED TO EQUITY SHAREHOLDERS

The Board declared an interim dividend for the year 2016-17 of `6/- per equity share (60% of face value of share at `10/-
each per equity share) at their meeting held on March 23, 2017.
28. EARNINGS PER SHARE

As per Accounting Standard 20, Earnings Per Share is calculated by dividing the net profit or loss for the year attributable
to equity shareholders by the weighted average number of equity shares outstanding during the year. The details of
calculation of the basic and diluted earnings per share are stated below:-
`
Particulars
Profit/(Loss) after tax for the year 11,798,316,486.76 8,095,531,537.29
Weighted average number of equity shares outstanding during the period - Basic EPS 399,152,518 398,057,351
Weighted average number of equity shares outstanding during the period - Diluted EPS 400,628,247 402,817,783
Face Value per share 10/- 10/-
Earnings Per Share (Basic) 29.56 20.34
Earnings Per Share (Diluted) 29.45 20.10
29. DISCLOSURE WITH REGARD TO DUES TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Company and has been relied upon by the auditors, none of the suppliers
have confirmed to be registered under “The Micro, Small and Medium Enterprises Development (‘MSMED’) Act, 2006”.
Accordingly, no disclosures relating to principal amounts unpaid as at the period ended 31st March, 2017 together with
interest paid /payable are required to be furnished.
30. ADDITIONAL INFORMATION PURSUANT TO PROVISIONS OF PART II OF SCHEDULE

III OF THE COMPANIES ACT, 2013
`
Particulars
a) CIF Value of Imports of Capital Goods Nil Nil
b) Expenditure in foreign currency on accrual basis
Professional Charges Nil 2,376,927.24
Others 1,022,209.00 981,407.00
31. UTILIZATION OF PROCEEDS OF PUBLIC ISSUE OF NON - CONVERTIBLE

DEBENTURES
The Company has during the year raised through public issue (a) ` 17,763,997,000.00 of Rated Secured Redeemable Non
- Convertible Debentures and (b) ` 553,761,000.00 of Rated Unsecured Redeemable Non-Convertible Debentures in the
nature of Subordinated Debt. As at 31st March, 2017, the Company has utilised the entire proceeds of the public issue, net
of issue expenses in accordance with the objects stated in the offer documents.

Notes on Accounts
32. DISCLOSURE OF RELATED PARTY TRANSACTION IN ACCORDANCE WITH

ACCOUNTING STANDARD (AS18) “RELATED PARTY DISCLOSURES” ISSUED BY THE
INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.
(a) Names of Related Parties with whom transactions has taken place:-
Category Name of the Related Party
1. M. G. George Muthoot
2. George Thomas Muthoot
Key Management Personnel 3. George Jacob Muthoot
4. George Alexander Muthoot
5. Alexander M. George s/o M. G. George Muthoot
1. Sara George w/o M. G. George Muthoot
2. Susan Thomas w/o George Thomas Muthoot
3. Elizabeth Jacob w/o George Jacob Muthoot
4. Anna Alexander w/o George Alexander Muthoot
5. George M. George s/o M. G. George Muthoot
Relatives of Key Management Personnel 6. George M. Jacob s/o George Jacob Muthoot
7. Reshma Susan Jacob d/o George Jacob Muthoot
8. George Alexander (Jr.) s/o George Alexander Muthoot
9. Eapen Alexander s/o George Alexander Muthoot
10. Anna Thomas d/o George Thomas Muthoot
11. Valsa Kurien w/o George Kurien
1. Asia Asset Finance PLC, Sri Lanka
2. Muthoot Homefin (India) Limited.
Subsidiary Companies
3. Belstar Investment and Finance Private Limited
4. Muthoot Insurance Brokers Private Limited
1. Muthoot Vehicle & Assets Finance Limited
2. Muthoot Leisure And Hospitality Services Private Limited
3. MGM Muthoot Medical Centre Private Limited.
4. Muthoot Marketing Services Private Limited.
5. Muthoot Broadcasting Private Limited
6. Muthoot Forex Limited
7. Emgee Board and Paper Mills Private Limited
8. Muthoot Health Care Private Limited
9. Muthoot Precious Metals Corporation
10. GMG Associates
11. Muthoot Commodities Limited
Entities over which Key Management Personnel and their relatives are 12. Emgee Muthoot Benefit Funds (India) Limited
able to exercise significant influence 13. Geo Bros Muthoot Funds (India) Limited
14. Muthoot Investment Advisory Services Private Limited
15. Muthoot Securities Limited
16. Muthoot M George Permanent Fund Limited
17. Muthoot Housing & Infrastructure
18. Muthoot Properties & Investments
19. Venus Diagnostics Limited
20. Muthoot Systems & Technologies Private Limited
21. Muthoot Infotech Private Limited
22. Muthoot Anchor House Hotels Private Limited
23. Marari Beach Resorts Private Limited.
24. Muthoot M George Foundation

Notes on Accounts
b) Transactions with Related Parties during the year:-

`
Entities over which Key
Relatives of Key Management Management Personnel and their
Key Management Personnel Subsidiaries
Nature of transaction Personnel relatives are able to exercise
significant influence
31st March 2017 31st March 2016 31st March 2017 31st March 2016 31st March 2017 31st March 2016 31st March 2017 31st March 2016
Purchase of Travel
Tickets for Company
- - - - 4,520,513.00 5,421,694.00 - -
Executives/Directors/
Customers
Travel Arrangements for
Company Executives/ - - - - 956,423.00 8,603,884.00 - -
Customers
Accommodation facilities
for Company Executives/ - - - - 554,134.00 463,577.00 - -
Clients/Customers
Complementary Medical
Health Check Ups for - - - - - 6,850.00 - -
Customers/ Employees
Brokerage paid for NCD
- - - - 5,542,009.00 6,496,832.00 - -
Corporate Overview
Public Issue
Business Promotion
- - - - 9,766,657.00 12,957,321.00 - -
Expenses
CSR Expenses - - - - 144,247,000.00 131,637,500.00 - -
Foreign Currency
- - - - 537,084.00 981,407.00 - -
purchased for travel
Interest paid on loans/
325,863,007.00 266,922,278.09 373,190,944.00 313,716,914.30 - - - -
subordinated debts
Interest paid on Secured
39,215.00 42,235.00 589,291.00 597,055.00 - 1,193,969.18 - -
Statutory Reports
NCD
Interest paid on Secured
183,005.00 298,517.00 1,426,967.81 1,565,508.00 14,104,132.78 8,526,719.03 - -
NCD - Listed
Directors Remuneration 358,000,000.00 195,600,000.00 2,325,000.00 2,325,000.00 - - - -
Rent paid 3,888,150.00 3,519,000.00 793,500.00 690,000.00 4,998,246.00 4,481,615.00 - -

Dividend paid - 1,500,406,656.00 - 881,976,320.00 - - - -
Interim Dividend
1,105,300,992.00 - 661,482,240.00 - - - - -
declared
Interest received on Inter
- - - - - - 1,535,342.00 -
163
Corporate Loan
Notes on Accounts
164
b) Transactions with Related Parties during the year:-(Contd)

`

Rent received - - - - 1,264,470.00 410,000.00 2,136,700.00 -
Interest received on
- - - - - - 14,038,356.00 -
Subordinated Debt
Term Loan interest
- - - - - - 18,229,868.00 -
received
Dividend received - - - - - 4,305,000.00 - -
Commission received on
- - - - 79,539,644.00 61,549,908.00 - -
Money Transfer business
Service Charges
- - - - 15,068,867.00 4,821,409.00 - -
Collected
Inter Corporate Loans
- - - - - - 440,000,000.00 -
given
Repayment of Inter
- - - - - - 440,000,000.00 -
Corporate Loans given
Term Loan given - - - - - - 200,000,000.00 -
Repayment of Term Loan
- - - - - - 16,667,000.00 -
given
Investment in Equity
shares of Subsidiary - - - - - - 1,136,429,207.67 497,744,914.81
companies
Purchase of Shares of
Muthoot Insurance 120,000,000.00 - 80,000,000.00 - - - - -
Brokers Private Ltd
Purchase of Securities - - - - 81,436,611.00 - - -
Sale of Securities - - - - - - 142,887,671.00 -
Loans accepted 1,553,550,901.92 3,482,494,302.26 537,981,603.63 2,170,944,489.88 - - - -
Loans repaid 2,019,287,709.00 2,977,756,167.44 852,717,767.53 1,106,879,451.58 - -
Subordinated debts
64,645,000.00 162,135,566.00 19,500,000.00 47,100,000.00
repaid
Purchase of Secured
- 385,000.00 - 230,000.00 - - - -
NCD
Notes on Accounts
b) Transactions with Related Parties during the year:-(Contd)

`
Redemption of Secured
- 385,000.00 228,000.00 230,000.00 - 20,000,000.00 - -
NCD
Purchase of Secured
30,000,000.00 - 230,643,000.00 - 321,138,000.00 - - -
NCD - Listed
Redemption of Secured
1,050,000.00 - 9,033,000.00 - 203,476,000.00 40,279,000.00 - -
NCD - Listed
Loans availed by the
Company for which
86,350,000,000.00 82,250,000,000.00 - - - - - -
guarantee is provided by
related parties
Corporate Overview
Statutory Reports

165
Notes on Accounts
166
c) Net Amount Receivable / (Due) as at the year end : -
`
Management Personnel and their
Nature of Key Management Personnel Relatives of Key Management Personnel Subsidiaries
relatives are able to exercise
transaction

Investments
in Subsidiary
- - - - - - 1,972,297,677.64 835,868,469.97
companies -
Equity Shares
Investments
in Subsidiary
- - - - - - 10,000,000.00 -
companies -
Subordinated debt
Term Loan
- - - - - - 183,333,000.00 -
Outstanding
Investments in
- - - - 46,700,000.00 46,700,000.00 - -
Equity Shares
Rent Deposit 1,770,000.00 1,770,000.00 300,000.00 300,000.00 1,470,000.00 1,470,000.00 - -
Trade Receivables - - - - 72,813,489.33 69,560,540.91 - -
Secured NCD (407,000.00) (407,000.00) (4,631,000.00) (4,859,000.00) - - - -
Secured NCD -
(30,000,000.00) (1,050,000.00) (231,893,000.00) (10,283,000.00) (253,890,000.00) (136,228,000.00) - -
Listed
Loans &
Subordinated (2,707,548,137.18) (3,237,929,944.26) (3,276,809,973.26) (3,611,046,137.16) - - - -
Debts
Security Deposit - - - - (40,000,000.00) (40,000,000.00) - -
Directors
Remuneration (160,000,000.00) - - - - - - -
Payable
Interest payable
on Loan from
- - - (1,359,413.00) - - - -
Directors and
Relatives
Interest payable on
(16,213.00) (14,810.77) (56,562.00) (558,326.23) - - - -
Secured NCD
Interest payable
on Subordinated - (476,756.00) - - - - - -
Debts
Interim Dividend
(1,105,300,992.00) - (661,482,240.00) - - - - -
Payable
Trade Payables (303,513.00) (263,923.00) (59,513.00) (51,749.00) (12,507,545.75) (17,227,900.22) - -
Notes on Accounts
d) Disclosure in respect of material related party transactions during the year as per Accounting
Standard 18 issued by the Institute of Chartered Accountants of India i.e., amount which is in
excess of 10% of total related party transactions of the same type : -
`
As at As at
Particulars
Purchase of Travel Tickets for Company Executives/Directors/Customers
GMG Associates 4,520,513.00 5,421,694.00
Travel Arrangements for Company Executives/Customers
GMG Associates 956,423.00 8,603,884.00
Accommodation facilities for Company Executives/Clients/Customers
Muthoot Leisure & Hospitality Services Private Limited 159,731.00 234,830.00
Muthoot Anchor House Hotels Private Limited 204,807.00 76,921.00
Marari Beach Resorts Private Limited 189,596.00 151,826.00
Complementary Medical Health Check Ups for Customers/ Employees
Muthoot Health Care Private Limited - 6,850.00
Brokerage paid for NCD Public Issue
Business Promotion Expenses
CSR Expenses paid
Muthoot M George Foundation 144,247,000.00 131,637,500.00
Foreign currency purchased for travel
Muthoot Forex Limited 537,084.00 981,407.00
Interest paid on loan from Directors and relatives
M G George Muthoot 63,505,394.00 50,404,398.27
George Thomas Muthoot 76,611,415.00 55,826,840.66
George Jacob Muthoot 77,276,719.00 59,302,306.27
George Alexander Muthoot 79,649,590.00 60,562,428.08
Susan Thomas 87,632,332.00 77,487,405.81
Interest paid on subordinated debts
George Alexander Muthoot 809,302.00 3,374,081.27
Interest paid on Secured NCD
Muthoot Commodities Limited - 1,193,969.18
Valsa Kurien 550,125.00 550,125.00
Interest paid on Secured NCD - Listed
Muthoot Precious Metals Corporation 3,755,255.55 502,308.09

Notes on Accounts
excess of 10% of total related party transactions of the same type : - (Contd.)
`
As at As at
Particulars
Muthoot Forex Limited 2,345,089.23 -
Directors Remuneration
Rent paid
Muthoot Properties & Investments 1,983,756.00 1,725,000.00
Muthoot Housing & Infrastructure 1,904,400.00 1,656,000.00
Muthoot Vehicle And Asset Finance Limited 1,110,096.00 1,100,615.00
George Thomas Muthoot 991,872.00 862,500.00
George Alexander Muthoot 981,959.00 931,500.00
Dividend paid
M G George Muthoot - 379,081,056.00
George Alexander Muthoot - 355,715,200.00
George Jacob Muthoot - 355,715,200.00
George Thomas Muthoot - 355,715,200.00
Susan Thomas - 239,880,544.00
Interim Dividend declared
M G George Muthoot 279,309,792.00 -
George Alexander Muthoot 261,785,400.00 -
George Jacob Muthoot 261,785,400.00 -
George Thomas Muthoot 261,785,400.00 -
Susan Thomas 179,910,408.00 -
Interest Received on Inter corporate Loan
Muthoot Homefin (India) Limited 1,535,342.00 -
Rent received
Muthoot Securities Limited 643,470.00 -
Interest received on Subordinated Debt
Term Loan Interest Received
Dividend Received

Notes on Accounts
`
As at As at
Particulars
Muthoot Forex Limited - 2,955,000.00
Muthoot Securities Limited - 1,350,000.00
Commission received on Money Transfer business
Service Charges Collected
Muthoot Precious Metals Corporation 1,515,201.00 1,535,846.00
Muthoot Vehicle And Asset Finance Limited 12,593,712.00 -
Inter Corporate Loans given
Repayment of Inter Corporate Loans given
Term Loan Given
Repayment of Term Loan given
Investment in Equity shares of Subsidiary companies
Asia Assets Finance PLC , Srilanka 6,097,756.87 48,629,914.81
Muthoot Homefin (India) Limited
Subscription to Rights Issue 284,250,000.00 -
Subscription to Preferential Allotment - 449,115,000.00
Purchase from Muthoot Vehicle And Asset Finance Limited 19,329,000.00 -
Purchase of Shares of Muthoot Insurance Brokers Private Limited
Anna Alexander 40,000,000.00 -
George M Alexander 40,000,000.00 -
Purchase of Securities
Sale of Securities
Loan from Directors and Relatives accepted

Notes on Accounts
`
As at As at
Particulars
Loan from Directors and Relatives repaid
Subordinated debts repaid
Purchase of Secured NCD
M G George Muthoot - 97,000.00
Alexander M George - 288,000.00
George M George - 230,000.00
Redemption of Secured NCD
George M George 228,000.00 230,000.00
Purchase of Secured NCD- Listed
Muthoot Securities Limited 147,981,000.00 -
George M Jacob 65,533,000.00 -
Redemption of Secured NCD - Listed
Muthoot Precious Metals Corporation 36,735,000.00 -
Loans availed by the Company for which guarantee is provided by related parties (Jointly
and Severally held)
M G George Muthoot 80,350,000,000.00 76,250,000,000.00
George Alexander Muthoot 86,350,000,000.00 82,250,000,000.00
George Jacob Muthoot 76,600,000,000.00 72,500,000,000.00
George Thomas Muthoot 76,600,000,000.00 72,500,000,000.00

Notes on Accounts
e) Net Amount Receivable / (Due) as at the year end : -

`
As at As at
Particulars
Investments in Equity Shares
Investments in Subsidiary companies - Equity shares
Asia Assets Finance PLC , Srilanka 392,851,226.84 386,753,469.97
Muthoot Homefin (India) Limited 752,694,000.00 449,115,000.00
Investments in Subsidiary companies - Subordinated debt
Rent Deposit
Muthoot Properties & Investments 750,000.00 750,000.00
Muthoot Housing & Infrastructure 720,000.00 720,000.00
M G George Muthoot 355,000.00 355,000.00
George Jacob Muthoot 555,000.00 555,000.00
Sara George 100,000.00 100,000.00
Valsa Kurien 200,000.00 200,000.00
Trade Receivables
GMG Associates - 39,294.00
Muthoot Precious Metals Corporation - 84,501.00
Term Loan Outstanding
Secured NCD
M G George Muthoot (97,000.00) (97,000.00)
Alexander M George (310,000.00) (310,000.00)
George M George (230,000.00) (458,000.00)
Valsa Kurien (4,401,000.00) (4,401,000.00)
Secured NCD - Listed
Muthoot Securities Limited (73,558,000.00) (79,493,000.00)
Muthoot Precious Metals Corporation - (36,735,000.00)
Muthoot Forex Limited (180,332,000.00) (20,000,000.00)
Alexander M George (30,000,000.00) (1,050,000.00)
George M George (20,920,000.00) (3,790,000.00)
George M Jacob (65,533,000.00) (1,010,000.00)
George M Alexander (89,677,000.00) (1,907,000.00)

Notes on Accounts
e) Net Amount Receivable / (Due) as at the year end : - (Contd.)

`
As at As at
Particulars
Eapen Alexander (55,763,000.00) (3,576,000.00)
Loan from Directors and Relatives
M G George Muthoot (546,138,378.55) (697,396,297.13)
George Thomas Muthoot (660,217,538.47) (717,753,896.52)
George Jacob Muthoot (660,227,123.55) (728,695,707.13)
George Alexander Muthoot (654,548,259.44) (799,728,061.94)
George M George (154,066,572.94) (178,839,180.94)
George M Jacob (359,168,284.38) (444,586,514.38)
Eapen Alexander (227,447,521.51) (274,036,844.88)
Sara George (426,536,170.57) (417,243,992.57)
Elizabeth Jacob (469,798,901.11) (459,273,412.11)
Susan Thomas (771,232,985.81) (867,213,076.81)
Anna Alexander (614,937,266.53) (600,390,421.53)
Valsa Kurien (36,395,079.76) (77,864,100.76)
Anna Thomas - (10,210,490.53)
Reshma Susan Jacob (323,012.25) (9,231,857.25)
Subordinated debts from Directors and Relatives
M G George Muthoot - (11,300,000.00)
George Thomas Muthoot - (16,300,000.00)
George Jacob Muthoot - (22,700,000.00)
George Alexander Muthoot (262,000.00) (13,407,000.00)
Alexander M George - (1,200,000.00)
George M George - (1,300,000.00)
George M Jacob - (1,199,999.00)
Sara George - (2,100,000.00)
Elizabeth Jacob - (2,200,001.00)
Susan Thomas - (2,200,000.00)
Anna Alexander - (2,500,000.00)
George M Alexander - (1,200,000.00)
Valsa Kurien - (6,800,000.00)
Security Deposit
Directors Remuneration Payable
M G George Muthoot (40,000,000.00) -
George Thomas Muthoot (40,000,000.00) -
George Jacob Muthoot (40,000,000.00) -

Notes on Accounts

`
As at As at
Particulars
George Alexander Muthoot (40,000,000.00) -
Interest payable on Loan from Directors and Relatives
Anna Thomas - (783,260.00)
Reshma Susan Jacob - (576,153.00)
Interest payable on Secured NCD
George M George (8,202.00) (8,201.23)
Valsa Kurien (48,360.00) (550,125.00)
Interest payable on Subordinated debts
George Alexander Muthoot - (476,756.00)
Interim Dividend Payable
Alexander M George (40,635,000.00) -
Susan Thomas (179,910,408.00) -
George M Jacob (90,300,000.00) -
Anna Alexander (89,610,408.00) -
Elizabeth Jacob (89,610,408.00) -
Sara George (81,116,016.00) -
Eapen Alexander (45,150,000.00) -
George Alexander (45,150,000.00) -
George M George (40,635,000.00) -
Trade Payables
Muthoot Properties & Investments (148,782.00) (129,375.00)
Muthoot Housing & Infrastructure (142,830.00) (124,200.00)
Muthoot Vehicle And Asset Finance Limited (84,525.00) (96,321.09)
GMG Associates - (391,682.13)
Muthoot Precious Metals Corporation (12,131,408.75) (16,486,322.00)
George Thomas Muthoot (74,390.00) (64,687.00)
George Jacob Muthoot (86,293.00) (75,037.00)
George Alexander Muthoot (80,342.00) (69,862.00)
Sara George (19,837.00) (17,249.00)
Valsa Kurien (39,676.00) (34,500.00)

Notes on Accounts
174
33. SEGMENT REPORTING

a) The Company is engaged in two segments of business – Financing and Power Generation.
b) In the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, Company has identified
business segment as the primary segment and geographical segment as secondary segment for the purpose of disclosure.
c) Company operates in a single geographical segment. Hence, secondary geographical segment information disclosure is not applicable.

Primary Business Segment Information
`
Financing Power Generation Consolidated Totals
Particulars
31st March 2017 31st March 2016 31st March 2017 31st March 2016 31st March 2017 31st March 2016
Segment Revenue:
External Revenue 57,266,317,613.65 48,602,562,822.78 19,953,527.50 11,443,093.50 57,286,271,141.15 48,614,005,916.28
Inter segment Revenue - - - - - -
Total Revenue 57,266,317,613.65 48,602,562,822.78 19,953,527.50 11,443,093.50 57,286,271,141.15 48,614,005,916.28
Result:
Segment Result 19,381,769,973.54 13,226,677,633.60 12,777,585.50 5,988,634.36 19,394,547,559.04 13,232,666,267.96
Other Income - - - - - -
Unallocated corporate income - - - - 180,743,778.86 136,145,020.02
Unallocated corporate expenses - - - - (365,518,800.00) (201,270,000.00)
Profit Before Tax 19,381,769,973.54 13,226,677,633.60 12,777,585.50 5,988,634.36 19,209,772,537.90 13,167,541,287.98
Less: Provision for Current Tax / Deferred
7,411,456,051.14 5,072,009,750.68
Tax
Profit after Tax 11,798,316,486.76 8,095,531,537.30
Other Information:
Segment Assets 304,430,225,904.42 268,942,214,130.93 49,098,690.44 42,756,364.44 304,479,324,594.86 268,984,970,495.37
Unallocated Corporate Assets 2,651,393,950.80 1,502,358,243.13
Total Assets 304,430,225,904.42 268,942,214,130.93 49,098,690.44 42,756,364.44 307,130,718,545.66 270,487,328,738.50
Segment Liabilities 238,176,589,394.31 212,160,916,524.74 - - 238,176,589,394.31 212,160,916,524.74

Unallocated Corporate Liabilities 3,789,716,130.67 2,133,921,007.84
Total Liabilities 238,176,589,394.31 212,160,916,524.74 - - 241,966,305,524.98 214,294,837,532.58
Capital Expenditure 382,649,036.97 189,860,122.56 - - 382,649,036.97 189,860,122.56

Depreciation 480,398,323.81 572,851,428.77 2,106,062.00 2,296,031.14 482,504,385.81 575,147,459.91

Non-Cash Expenditure other than
2,647,828,800.00 1,516,683,241.00 - - 2,647,828,800.00 1,516,683,241.00
Depreciation
Notes on Accounts
34. FRAUDS DURING THE YEAR

During the year, frauds committed by employees of the company amounted to ` 12,827,281.00 ( Previous year:
` 16,266,785.00) which has been recovered /written off / provided for.
35. DIVIDEND REMITTED IN FOREIGN CURRENCY

`
Particulars As at 31st March 2017 As at 31st March 2016
Dividend remitted in foreign currency Nil 79,333,048.00
No. of non-resident shareholders to which this relates Nil 1
No. of equity shares of face value of ` 10/- held by them Nil 9,916,631
Financial year to which dividend relates F Y 2016-17 F Y 2014-15 & F Y 2015-16
36. DETAILS OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED DURING THE
PERIOD FROM 8TH NOVEMBER, 2016 TO 30TH DECEMBER, 2016, AS REQUIRED BY
MCA NOTIFICATION DATED 30th MARCH, 2017
`
Other denomination
Particulars SBNs Total
notes and coins
Closing cash in hand as on 08.11.2016 1,774,032,500 378,300,139 2,152,332,639
(+) Permitted receipts - 50,057,114,047 50,057,114,047
(-) Permitted payments - 49,839,822,760 49,839,822,760
(-) Amount deposited in Banks 1,774,032,500 30,167,637 1,804,200,137
Closing cash in hand as on 30.12.2016 - 565,423,789 565,423,789
For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the
Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407( E), dated 8th November,
2016.
37. INVESTMENT IN ASIA ASSET FINANCE PLC, SRI LANKA (AAF)

During the year, the company has made an additional investment in 2,493,574 equity shares (Previous year : 73,019,415
equity shares) amounting to ` 6,097,756.87 ( Previous year : ` 48,629,914.81 ) of its subsidiary company, Asia Asset
Finance PLC, Sri Lanka. As at 31st March, 2017 , the total shareholding in Asia Asset Finance PLC, Sri Lanka, amounts to
503,524,700 equity shares ( Previous year : 501,031,126 equity shares ) representing 60.00% ( Previous year : 59.70%)
of their total equity share capital.
38. INVESTMENT IN MUTHOOT HOMEFIN (INDIA) LIMITED

During the year, the company acquired 26,700,000 equity shares (Previous year : 39,500,000 equity shares) in Muthoot
Homefin (India) Limited for a consideration of ` 303,579,000.00 (Previous year : 449,115,000.00). As at 31st March,
2017, the total share holding in Muthoot Homefin (India) Limited amounts to 66,200,000 equity shares (Previous year :
39,500,000 equity shares) representing 88.27% ( Previous year : 79%) of their total equity share capital.
39. INVESTMENT IN MUTHOOT INSURANCE BROKERS PRIVATE LIMITED

The company has during the year acquired 100% of equity shares of Muthoot Insurance Brokers Private Limited for a
consideration of ` 200,000,000.00 and making it a wholly owned subsidiary.

Notes on Accounts
40. INVESTMENT IN BELSTAR INVESTMENT AND FINANCE PRIVATE LIMITED

During the year, the company acquired 15,017,459 equity shares in Belstar Investment and Finance Private Limited
representing 64.60% of equity share capital of Belstar Investment and Finance Pvt Ltd for a consideration of
` 626,752,450.80 and thus making it a subsidiary of the company.
41. DISCLOSURE REQUIRED AS PER RESERVE BANK OF INDIA NOTIFICATION NO. DNBS.
CC.PD.NO. 265/03.10.01/2011-12 DATED 21st MARCH, 2013
`
As at As at
Particulars
Gold Loans granted against collateral of gold jewellery 272,199,599,670.00 243,355,407,815.00
Total assets of the Company 307,130,718,545.65 270,487,328,738.49
Percentage of gold loans to Total Assets 88.63% 89.97%
42. DISCLOSURES REQUIRED AS PER RESERVE BANK OF INDIA MASTER DIRECTION –

NON-BANKING FINANCIAL COMPANY – SYSTEMICALLY IMPORTANT NON-DEPOSIT
TAKING COMPANY AND DEPOSIT TAKING COMPANY (RESERVE BANK) DIRECTIONS,
2016
`
Amount Amount
Sl. Amount overdue Amount overdue
Particulars outstanding outstanding
No.
LIABILITIES :
(1) Loans and advances availed by the non-banking financial company inclusive of interest accrued thereon but not paid :-
(a) Debentures: Secured 68,112,008,175.26 Nil 82,986,943,451.96 Nil
: Unsecured Nil Nil Nil Nil
(other than falling within the meaning of public
deposits)
: Perpetual Debt Instrument Nil Nil Nil Nil
(b) Deferred credits Nil Nil Nil Nil
(c) Term Loans 2,002,938,750.71 Nil 5,997,128.75 Nil
(d) Inter-corporate loans and borrowing Nil Nil Nil Nil
(e) Commercial Paper 31,765,177,100.60 Nil Nil Nil
(f) Other Loans (specify nature)
Loan from Directors/ Relatives of
5,984,096,110.44 Nil 6,765,928,494.42 Nil
Directors
Subordinated Debt 32,676,751,811.70 Nil 41,049,323,909.69 Nil
Borrowings from Banks/FI 90,165,168,279.60 Nil Nil

77,013,832,415.65
Overdraft against Deposit with Banks 3,711,833.26 Nil 7,782,787.27 Nil

Notes on Accounts

2016 (CONTD.)
`
Amount outstanding Amount outstanding
Sl.
As at As at
No.
ASSETS :
Break-up of Loans and Advances including bills receivables (other than those included
(2)
in (4) below) :- (including interest accrued)
(a) Secured 284,990,277,199.00 252,977,841,716.04
(b) Unsecured 1,957,828,364.62 6,935,472,287.71
Break-up of Leased Assets and stock on hire and other assets counting towards AFC
(3)
activities:-
(i) Lease assets including lease rentals under sundry debtors:-
(a) Financial lease Nil Nil
(b) Operating lease Nil Nil
(ii) Stock on hire including hire charges under sundry debtors
(a) Assets on hire Nil Nil
(b) Repossessed Assets Nil Nil
(iii) Other loans counting towards AFC activities
(a) Loans where assets have been repossessed Nil Nil
(b) Loans other than (a) above Nil Nil
(4) Break-up of Investments (net of provision for diminution in value) :-

Current Investments:-
1. Quoted:
(i) Shares : (a) Equity Nil Nil
(b) Preference Nil Nil
(ii) Debentures and Bonds Nil Nil
(iii) Units of mutual funds Nil Nil
(iv) Government Securities(net of amortisation) Nil Nil
(v) Others Nil Nil
2. Unquoted:
(i) Shares : (a) Equity Nil Nil
(iv) Government Securities Nil Nil
(v) Others Nil Nil

Notes on Accounts

2016 (CONTD.)
`
Amount outstanding Amount outstanding
Sl.
As at As at
No.
Long Term investments:-
1. Quoted:
(i) Shares : (a) Equity 392,901,166.84 386,803,409.97
(iv) Government Securities(net of amortisation) 62,107,611.00 Nil
(v) Others Nil Nil
2. Unquoted:
(i) Shares : (a) Equity 1,626,146,450.80 495,815,000.00
(ii) Debentures and Bonds 10,000,000.00 100,000,000.00
(iv) Government Securities Nil Nil
(v) Others - Investment in Pass Through Certificates Nil Nil
(5) Borrower Group-wise Classification of Assets Financed as in (2) and (3) above:-
As at 31st March 2017
Category Amount (Net of provisioning)
Secured Unsecured Total
1. Related Parties
(a) Subsidiaries 183,333,000.00 Nil 183,333,000.00
(b) Companies in the same group Nil Nil Nil
(c) Other related parties Nil Nil Nil
2. Other than related parties 271,240,713,722.71 342,040,283.70 271,582,754,006.41
Total 271,424,046,722.71 342,040,283.70 271,766,087,006.41
As at 31st March 2016

Category Amount (Net of provisioning)
Secured Unsecured Total
1. Related Parties
(a) Subsidiaries Nil Nil Nil
(b) Companies in the same group Nil Nil Nil
(c) Other related parties Nil Nil Nil
2. Other than related parties 242,474,804,103.00 295,017,712.31 242,769,821,815.31
Total 242,474,804,103.00 295,017,712.31 242,769,821,815.31

Notes on Accounts

2016 (CONTD.)
(6) Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and unquoted) :-
`
Market Value / Break Market Value / Break
Category Book Value (Net of Book Value (Net of
up value or fair value up value or fair value
provisioning) provisioning)
or Net Asset Value or Net Asset Value
1. Related Parties
(a) Subsidiaries 1,889,896,618.14 1,982,297,677.64 733,692,162.04 835,868,469.97
(b) Companies in the same
46,700,000.00 46,700,000.00 46,700,000.00 46,700,000.00
group
(c) Other related parties Nil Nil Nil Nil
2. Other than related parties 65,612,301.30 62,157,551.00 100,059,383.20 100,049,940.00
Total 2,002,208,919.44 2,091,155,228.64 880,451,545.24 982,618,409.97
(7) Other information

Amount outstanding as at
Particulars As at As at
(i) Gross Non-Performing Assets
(a) With Related parties Nil Nil
(b) With Others 5,621,296,126.71 7,024,612,600.00
(ii) Net Non-Performing Assets
(b) With Others 4,602,029,671.71 6,005,346,145.00
(iii) Assets acquired in satisfaction of debt
(b) With Others Nil Nil
(8) Details of the Auctions conducted with respect to Gold Loan

The Company auctioned 255,852 loan accounts (Previous Year: 905,056 accounts) during the financial year. The
outstanding dues on these loan accounts were ` 12,994,357,734.00 (Previous Year: ` 46,910,938,525.00) till the
respective date of auction. The Company realised ` 11,846,996,934.00 (Previous Year: ` 38,799,978,043.00) on
auctioning of gold jewellery taken as collateral security on these loans. Company confirms that none of its sister concerns
participated in the above auctions.

Notes on Accounts

2016 (CONTD.)
(9 a) Capital
`
As at As at
Particulars
i) CRAR (%) 24.88 24.48
ii) CRAR-Tier I capital (%) 21.78 20.92
iii) CRAR-Tier II capital (%) 3.10 3.56
iv) Amount of subordinated debt raised as Tier-II capital 19,119,369,000.00 25,456,202,000.00
v) Amount raised by issue of Perpetual Debt Instruments Nil Nil
(9 b) Investments
`
As at As at
Particulars
1. Value of Investments
(i) Gross Value of Investments
(a) In India 1,698,304,001.80 595,864,940.00
(b) Outside India 392,851,226.84 386,753,469.97
(ii) Provisions for Depreciation
(a) In India Nil Nil
(b) Outside India Nil Nil
(iii) Net Value of Investments
(a) In India 1,698,304,001.80 595,864,940.00
(b) Outside India 392,851,226.84 386,753,469.97
2. Movement of provisions held towards
Depreciation on investments
(i) Opening balance Nil Nil
(ii) Add : Provisions made during the year Nil Nil
(iii) Less : Write-off / write-back of excess provisions during the year Nil Nil
(iv) Closing balance Nil Nil

Notes on Accounts
42. DISCLOSURES REQUIRED AS PER RESERVE BANK OF INDIA MASTER DIRECTION – NON-BANKING FINANCIAL
COMPANY – SYSTEMICALLY IMPORTANT NON-DEPOSIT TAKING COMPANY AND DEPOSIT TAKING COMPANY
(RESERVE BANK) DIRECTIONS, 2016 (CONTD.)
(9 c) Asset Liability Management
Maturity pattern of certain items of assets and liabilities
`
As at 1 to 30/31 days Over one month Over 2 months Over 3 months Over 6 months Over 1 year Over 3 to 5 Over 5
Total
31st March 2017 (one month) to 2 months to 3 months to 6 months to 1 year to 3 year years years
Liabilities
Deposits - - - - - - - - -
Borrowings 5,084,663,324.10 20,814,415,593.10 15,844,585,371.90 13,495,360,278.00 113,408,687,097.68 38,397,662,309.00 2,662,619,000.00 1,251,631,000.00 210,959,623,973.78
Foreign Currency
- - - - - - - -
Liabilities
Assets
Advances 54,487,836,171.74 40,894,523,188.24 32,715,705,277.44 73,619,773,910.42 60,062,865,926.77 11,004,648,986.80 - - 272,785,353,461.41
Investments - - - - - 10,381,500.00 30,645,050.00 1,657,277,451.80 1,698,304,001.80

Foreign Currency
- - - - - - - 392,851,226.84 392,851,226.84
assets
Corporate Overview
As at 1 to 30/31 days Over one month Over 2 months Over 3 months Over 6 months Over 1 year over 3 to 5 Over 5
Total
31st March 2016 (one month) to 2 months to 3 months to 6 months to 1 year to 3 year years years
Liabilities
Deposits - - - - - - - - -
Borrowings 5,823,603,987.22 3,849,243,373.35 2,797,036,809.58 14,625,574,984.40 106,551,455,440.47 48,809,181,403.10 2,581,427,000.00 1,371,977,000.00 186,409,499,998.12
Foreign Currency
Statutory Reports
- - - - - - - - -
Liabilities
Assets -
Advances 46,307,495,419.78 39,006,833,185.33 21,985,254,582.98 51,194,839,943.64 65,826,232,513.38 19,468,432,625.20 - - 243,789,088,270.31
Investments - - - - - - 100,000,000.00 495,864,940.00 595,864,940.00

Foreign Currency

- - - - - - 386,753,469.97 386,753,469.97
assets
181
Notes on Accounts

2016 (CONTD.)
(9 d) Exposures
i) Exposure to Real Estate Sector
`
As at As at
Category
a) Direct exposure (Net of Advances from Customers)
(i) Residential Mortgages -
Lending fully secured by mortgages on residential property that is or will be
Nil Nil
occupied by the borrower or that is rented.
(ii) Commercial Real Estate -
Lending secured by mortgages on commercial real estates (office buildings, retail
space, multipurpose commercial premises, multi-family residential buildings,
multi-tenanted commercial premises, industrial or warehouse space, hotels, land 180,797,748.00 169,997,748.00
acquisition, development and construction, etc.). Exposure would also include
non- fund based (NFB) limits.
(iii) Investments in Mortgage Backed Securities (MBS) and other securitised exposures - Nil Nil
a. Residential
b. Commercial Real Estate
Total Exposure to Real Estate Sector 180,797,748.00 169,997,748.00
ii) Exposure to Capital Market

`
As at As at
Category
i) direct investment in equity shares, convertible bonds, convertible debentures
and units of equity-oriented mutual funds the corpus of which is not exclusively 49,940.00 49,940.00
invested in corporate debt
ii) advances against shares / bonds / debentures or other securities or on clean basis
to individuals for investment in shares (including IPOs / ESOPs), convertible Nil Nil
bonds, convertible debentures, and units of equity-oriented mutual funds
iii) advances for any other purposes where shares or convertible bonds or convertible
Nil Nil
debentures or units of equity oriented mutual funds are taken as primary security
iv) advances for any other purposes to the extent secured by the collateral security of
shares or convertible bonds or convertible debentures or units of equity oriented
mutual funds i.e. where the primary security other than shares / convertible bonds Nil Nil
/convertible debentures / units of equity oriented mutual funds does not fully
cover the advances
v) secured and unsecured advances to stockbrokers and guarantees issued on behalf
Nil Nil
of stockbrokers and market makers
vi) loans sanctioned to corporates against the security of shares /bonds / debentures
or other securities or on clean basis for meeting promoter's contribution to the Nil Nil
equity of new companies in anticipation of raising resources
vii) bridge loans to companies against expected equity flows /issues Nil Nil
viii) all exposures to Venture Capital Funds (both registered and unregistered) Nil Nil
Total Exposure to Capital Markets 49,940.00 49,940.00

Notes on Accounts

2016 (CONTD.)
(9 e) Registration obtained from financial sector regulators
Sl.
Regulator Registration Number
No.
1 Reserve Bank of India Certificate of Registration No. N 16.00167
(9 f) Penalties levied by the above Regulators- Nil
(9 g) Ratings assigned by Credit rating Agencies

Sl. As at As at
Particulars
No 31st March 2017 31st March 2016
1 Commercial paper & Non - convertible Debentures- Short Term CRISIL A1+, ICRA A1+ CRISIL A1+, ICRA A1+
2 Bank Loans - Working Capital Demand Loans ICRA A1+ ICRA A1+
3 Bank Loans - Cash Credit ICRA AA(Stable) ICRA AA-(Stable)
4 Bank Term Loans ICRA AA(Stable) ICRA AA-(Stable)
CRISIL AA(Stable), CRISIL AA-(Stable),
5 Non Convertible Debentures- Long term
ICRA AA(Stable) ICRA AA-(Stable)
CRISIL AA(Stable), CRISIL AA-(Stable),
6 Subordinated Debt
ICRA AA(Stable) ICRA AA-(Stable)
During the year, CRISIL Ltd. has upgraded the long term rating from ‘CRISIL AA-(Stable)’ to ‘CRISIL AA(Stable)’ and ICRA Ltd. has upgraded
the long term rating from ‘ICRA AA-(Stable)’ to ‘ICRA AA(Stable)’.
(9 h) Provisions and Contingencies

Sl. Break up of ‘Provisions and Contingencies’ shown under the head Expenditure in As at As at
No Profit and Loss Account 31st March 2017 31st March 2016
1 Provisions for depreciation on Investment Nil Nil
2 Provision towards NPA Nil 293,884,206.00
3 Provision made towards Income Tax 7,411,456,051.14 5,048,083,577.00
4 Other Provision and Contingencies (with details)
Provision for Gratuity 5,273,000.00 2,391,462.94
5 Provision for Standard Assets 2,647,828,800.00 1,222,799,035.00
(9 i) Concentration of Advances
Sl. As at As at
Particulars
1 Total Advances to twenty largest borrowers 467,489,412.00 731,081,619.00
2 Percentage of Advances to twenty largest borrowers to Total Advances of the NBFC 0.17% 0.30%

Notes on Accounts

2016 (CONTD.)
(9 j) Concentration of Exposures
Sl. As at As at
Particulars
1 Total Exposures to twenty largest borrowers/customers 467,489,412.00 731,081,619.00
Percentage of Exposures to twenty largest borrowers/Customers to Total Advances of
2 0.17% 0.30%
the NBFC on borrowers/Customers.
(9 k) Concentration of NPAs
Sl. As at As at
Particulars
1 Total Exposures to top four NPA accounts 32,820,700.00 33,979,100.00
(9 l) Sector-wise NPAs as on 31st March, 2017

Percentage of NPAs to Percentage of NPAs to
Sl. Total Advances in that Total Advances in that
Sector
No sector as on sector as on
1 Agriculture & allied activities Nil Nil
2 MSME Nil Nil
3 Corporate borrowers Nil Nil
4 Services Nil Nil
5 Unsecured personal loans Nil Nil
6 Auto loans (commercial vehicles) Nil Nil
7 Other loans 2.06% 2.88%
(9 m) Movement of NPAs
Sl.
Particulars 31st March 2017 31st March 2016
No
(i) Net NPAs to Net Advances (%) 1.69% 2.46%
(ii) Movement of NPAs (Gross)
(a) Opening balance 7,024,612,600.00 5,116,663,567.00
(b) Additions during the year 4,754,372,264.00 6,720,256,238.00
(c) Reductions during the year 6,157,688,737.29 4,812,307,205.00
(d) Closing balance 5,621,296,126.71 7,024,612,600.00
(iii) Movement of Net NPAs
(a) Opening balance 6,005,346,145.00 4,391,281,318.00
(b) Additions during the year 4,754,372,264.00 6,426,094,009.00
(c) Reductions during the year 6,157,688,737.29 4,812,307,205.00

Notes on Accounts

2016 (CONTD.)
(iv) Movement of provisions for NPAs (excluding Provisions on Standard Assets)
(a) Opening balance 1,019,266,455.00 725,382,249.00
(b) Provisions made during the year - 293,884,206.00
(c) Write-off / write -back of excess provisions - -
(9 n) Overseas Assets
Sl.
Name of the Subsidiary Country Total assets
No
1 Asia Asset Finance PLC, Sri Lanka Sri Lanka 392,851,226.84
(9 o) Customer Complaints
(a) No. of complaints pending as on 01st April, 2016 Nil
(b) No of complaints received during the year 193
(c) No of complaints redressed during the year 177
(d) No. of complaints pending as on 31st March, 2017 16
43. PREVIOUS YEAR’S FIGURES HAVE BEEN REGROUPED / REARRANGED, WHEREVER

NECESSARY TO CONFORM TO CURRENT YEAR’S CLASSIFICATIONS / DISCLOSURE.

Form AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint
ventures
PART “A”: SUBSIDIARIES
(Amount in `.)
Sl.
Particulars Details Details Details Details
No.
Belstar Investment Muthoot Insurance
Asia Asset Finance Muthoot Homefin
1 Name of the subsidiary and Finance Private Brokers Private
PLC (India) Limited
Limited Limited
Reporting period for the subsidiary
2 concerned, if different from the holding NA NA NA NA
company’s reporting period
LKR , Exchange Rate
Reporting currency and Exchange rate as on as on 31.03.2017–
3 the last date of the relevant Financial year in 0.42621 / Average INR INR INR
the case of foreign subsidiaries Exchange Rate -
0.45423*
4 Share capital 591,978,102.71 750,000,000.00 232,465,680.00 5,000,000.00
5 Reserves & surplus 148,302,579.50 131,665,606.00 670,985,131.00 165,768,375.94
6 Total assets 4,442,763,376.31 4,505,838,734.00 7,629,064,762.00 180,600,616.90
7 Total Liabilities 3,702,482,694.10 3,624,173,128.00 6,725,613,951.00 9,832,240.96
8 Investments 206,304,818.60 0.00 600,164,109.00 140,000,000.00
9 Turnover 967,785,879.25* 241,653,521.00 1,033,835,862.00 116,416,642.88
10 Profit before taxation 142,526,527.44* 52,868,720.00 159,685,825.00 88,148,680.97
11 Provision for taxation 17,449,559.32* 24,131,371.00 55,264,070.00 27,983,006.66
12 Profit after taxation 125,076,968.12* 28,737,349.00 104,421,755.00 60,165,674.31
13 Proposed Dividend Nil Nil Nil Nil
14 % of shareholding 60.00% 88.27% 64.60% 100.00%
Notes:
1 Names of subsidiaries which are yet to commence operations: NA
2 Names of subsidiaries which have been liquidated or sold during the year: NA

PART “B”: ASSOCIATES AND JOINT VENTURES
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures.
Not Applicable
For and on behalf of the Board of Directors
Sd/- Sd/-
M. G. George Muthoot George Alexander Muthoot
Chairman & Whole time Director Managing Director
Sd/- Sd/-
Place: Kochi Oommen K. Mammen Maxin James
Date: 18th May, 2017 Chief Financial Officer Company Secretary

Consolidated Financials
Independent Auditors’ Report
TO THE MEMBERS OF MUTHOOT FINANCE AUDITORS’ RESPONSIBILITY

LIMITED Our responsibility is to express an opinion on these
consolidated financial statements based on our audit. We have
REPORT ON THE CONSOLIDATED taken into account the provisions of the Act, the accounting
FINANCIAL STATEMENTS and auditing standards and matters which are required to be
We have audited the accompanying consolidated financial included in the audit report under the provisions of the Act
statements of Muthoot Finance Limited (hereinafter referred and the Rules made thereunder.
to as “the Holding Company”) and its subsidiaries (the
Holding Company and its subsidiaries together referred to We conducted our audit in accordance with the Standards on
as “the Group”), which comprise the Consolidated Balance Auditing specified under Section 143(10) of the Act. Those
Sheet as at March 31, 2017, the Consolidated Statement of Standards require that we comply with ethical requirements
Profit and Loss, the Consolidated Cash Flow Statement for the and plan and perform the audit to obtain reasonable assurance
year then ended, and a summary of the significant accounting about whether the consolidated financial statements are free
policies and other explanatory information(hereinafter referred from material misstatement.
to as “the consolidated financial statements”).
An audit involves performing procedures to obtain audit
MANAGEMENT’S RESPONSIBILITY evidence about the amounts and the disclosures in the
FOR THE CONSOLIDATED FINANCIAL consolidated financial statements. The procedures selected
STATEMENTS depend on the auditors’ judgement, including the assessment
The Holding Company’s Board of Directors is responsible for of the risks of material misstatement of the consolidated
the preparation of these consolidated financial statements in financial statements, whether due to fraud or error. In making
terms of the requirements of the Companies Act, 2013 (‘the those risk assessments, the auditor considers internal financial
Act’) that give a true and fair view of the consolidated financial control relevant to the Holding Company’s preparation of the
position, consolidated financial performance and consolidated consolidated financial statements that give a true and fair
cash flows of the Group in accordance with the accounting view in order to design audit procedures that are appropriate
principles generally accepted in India, including the in the circumstances. An audit also includes evaluating the
Accounting Standards specified under section 133 of the Act, appropriateness of the accounting policies used and the
read with Rule 7 of the Companies (Accounts) Rules, 2014. reasonableness of the accounting estimates made by the
The respective Board of Directors of the companies included Holding Company’s Board of Directors, as well as evaluating
in the Group are responsible for maintenance of adequate the overall presentation of the consolidated financial
accounting records in accordance with the provisions of the statements.
Act for safeguarding the assets of the Group and for preventing
and detecting frauds and other irregularities; the selection We believe that the audit evidence we have obtained and
and application of appropriate accounting policies; making the audit evidence obtained by the other auditors read along
judgments and estimates that are reasonable and prudent; and with sub paragraph (a) of the Other Matters paragraph below,
design, implementation and maintenance of adequate internal is sufficient and appropriate to provide a basis for our audit
financial controls, that operate effectively for ensuring the opinion on the consolidated financial statements.
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the financial statements OPINION
that give a true and fair view and are free from material In our opinion and to the best of our information and
misstatement, whether due to fraud or error, which have according to the explanations given to us, the aforesaid
been used for the purpose of preparation of the consolidated consolidated financial statements give the information
financial statements by the Directors of the Holding Company, required by the Act in the manner so required and give a true
as aforesaid. and fair view in conformity with the accounting principles

generally accepted in India, of the consolidated state of affairs c) The Consolidated Balance Sheet, the Consolidated
of the Group as at March 31, 2017, and their consolidated Statement of Profit and Loss, and the Consolidated
profit and their consolidated cash flows for the year ended on Cash Flow Statement dealt with by this Report are in
that date. agreement with the books of account.
OTHER MATTERS d) In our opinion, the aforesaid consolidated financial

a) We did not audit the financial statements of Asia Asset statements comply with the Accounting Standards
Finance PLC, Muthoot Insurance Brokers Private specified under Section 133 of the Act, read with Rule 7
Limited and Belstar Investment and Finance Private of the Companies (Accounts) Rules, 2014.
Limited (subsidiaries), whose financial statements
reflect total assets of ` 121,625.09 Lakhs as at March e) On the basis of the written representations received
31, 2017, total revenues of ` 17,109.03 Lakhs and net from the Directors of the Holding Company as on March
cash inflow amounting to ` 4,131.10 Lakhs for the year 31, 2017, taken on record by the Board of Directors of
ended on that date, as considered in the consolidated the Holding Company and the reports of the statutory
financial statements. These financial statements have auditors of its Group Companies, incorporated in
been audited by other auditors whose reports have been India, none of the Directors of the aforesaid Companies
furnished to us by the Management and our opinion incorporated in India are disqualified as on March 31,
on the consolidated financial statements, in so far as 2017 from being appointed as a Director in terms of
it relates to the amounts and disclosures included in Section 164 (2) of the Act.
respect of these subsidiaries, is based solely on the
reports of the other auditors. f) With respect to the adequacy of the internal financial
controls over financial reporting of the Holding
b) Financial statements of Muthoot Homefin (India) Company and its subsidiary companies incorporated in
Limited (a subsidiary)which reflect total assets of India and the operating effectiveness of such controls,
` 45,058.39 lakhs as at March 31, 2017, total revenues refer to our separate Report in ‘Annexure A’ to this
of ` 2,416.53 lakhs and net cash inflow amounting to report.
` 106.31 lakhs for the year then ended, as considered in
the consolidated financial statements, have been audited g) With respect to the other matters to be included in the
by us. Independent Auditors’ Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014,
Our opinion on the consolidated financial statements, and our (as amended) in our opinion and to the best of our
report on Other Legal and Regulatory Requirements below, information and according to the explanations given to
is not modified in respect of the above matters with respect us:
to our reliance on the work done and the reports of the other
auditors. i. The Group has disclosed the impact of pending
litigations on its consolidated financial position in
REPORT ON OTHER LEGAL AND its consolidated financial statements- Refer Note
REGULATORY REQUIREMENTS 28 to the consolidated financial statements;
As required by Section 143(3) of the Act, we report, to the
extent applicable, that: ii. The Group has made provision in the consolidated
financial statements, as required under the
a) We have sought and obtained all the information and applicable law or accounting standards, for
explanations which to the best of our knowledge and material foreseeable losses, if any, on long term
belief were necessary for the purposes of our audit of contracts including derivative contracts;
the aforesaid consolidated financial statements.
iii. There were no amounts which were required
b) In our opinion, proper books of account as required to be transferred to the Investor Education and
by law relating to the preparation of the consolidated Protection Fund by the Holding Company or its
financial statements have been kept by the Holding subsidiary companies incorporated in India.
Company so far as it appears from our examination of
those books and the reports of the other auditors.

iv. The Holding Company has provided requisite and as produced to us and the other auditors by
disclosures in its standalone financial statements the management of the respective Group entities.
as to holdings as well as dealings in Specified Bank Refer Note 38 to the consolidated financial
Notes as defined in the Notification S.O. 3407 (E) statements.
dated the 8th of November, 2016 of the Ministry
of Finance, during the period from 8th November,
2016 to 30th December, 2016 of the Group
entities, as applicable and these are in accordance For Rangamani & Co
with the books of account maintained by the Chartered Accountants
Holding Company and by those entities for the (Firm Registration No.: 003050 S)
preparation of consolidated financial statements
Sd/-
R. Sreenivasan
Place: Kochi Partner
ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (‘the Act’)
We have audited the internal financial controls over financial internal financial controls that operate effectively for
reporting of Muthoot Finance Limited, (hereinafter referred ensuring the orderly and efficient conduct of its business,
to as “the Holding Company”) and its subsidiary companies including adherence to the respective company’s policies,
incorporated in India as of March 31, 2017 in conjunction with the safeguarding of its assets, the prevention and detection
our audit of the consolidated financial statements of Muthoot of frauds and errors, the accuracy and completeness of the
Finance Limited as of and for the year ended on that date. accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act,
MANAGEMENT’S RESPONSIBILITY FOR 2013.
INTERNAL FINANCIAL CONTROLS
The respective Board of Directors of the Holding Company AUDITORS’ RESPONSIBILITY
and its subsidiary companies incorporated in India are Our responsibility is to express an opinion on the internal
responsible for establishing and maintaining internal financial controls over financial reporting of the Holding
financial controls based on the internal control over financial Company and its subsidiary companies incorporated in India
reporting criteria established by the Holding Company and based on our audit. We conducted our audit in accordance
its subsidiary companies incorporated in India considering with the Guidance Note on Audit of Internal Financial
the essential components of internal control stated in the Controls Over Financial Reporting (the “Guidance Note”) and
Guidance Note on Audit of Internal Financial Controls Over the Standards on Auditing, issued by ICAI and deemed to
Financial Reporting issued by the Institute of Chartered be prescribed under section 143(10) of the Companies Act,
Accountants of India (ICAI). These responsibilities include 2013, to the extent applicable to an audit of internal financial
the design, implementation and maintenance of adequate controls. Those Standards and the Guidance Note require that

we comply with ethical requirements and plan and perform INHERENT LIMITATIONS OF INTERNAL
the audit to obtain reasonable assurance about whether FINANCIAL CONTROLS OVER FINANCIAL
adequate internal financial controls over financial reporting REPORTING
was established and maintained and if such controls operated Because of the inherent limitations of internal financial
effectively in all material respects. controls over financial reporting, including the possibility
of collusion or improper management override of controls,
Our audit involves performing procedures to obtain audit material misstatements due to error or fraud may occur and
evidence about the adequacy of the internal financial not be detected. Also, projections of any evaluation of the
controls system over financial reporting and their operating internal financial controls over financial reporting to future
effectiveness. Our audit of internal financial controls over periods are subject to the risk that the internal financial
financial reporting included obtaining an understanding of control over financial reporting may become inadequate
internal financial controls over financial reporting, assessing because of changes in conditions, or that the degree of
the risk that a material weakness exists, and testing and compliance with the policies or procedures may deteriorate.
evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected OPINION
depend on the auditors’ judgement, including the assessment In our opinion, to the best of our information and according to
of the risks of material misstatement of the consolidated the explanations given to us and based on the consideration
financial statements, whether due to fraud or error. of reports of other auditors, as referred to in Other Matters
paragraph, the Holding Company and its subsidiary
We believe that the audit evidence obtained by us and the companies incorporated in India have, in all material respects,
other auditors in terms of their reports referred to in the an adequate internal financial controls system over financial
Other Matters paragraph below, is sufficient and appropriate reporting and such internal financial controls over financial
to provide a basis for our audit opinion on the internal financial reporting were operating effectively as at March 31, 2017,
controls system over financial reporting of the Holding based on the internal control over financial reporting criteria
Company and its subsidiary companies incorporated in India. established by the Holding Company and its subsidiary
companies incorporated in India, considering the essential
MEANING OF INTERNAL FINANCIAL components of internal control stated in the Guidance Note on
CONTROLS OVER FINANCIAL REPORTING Audit of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting issued by the ICAI.
is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the OTHER MATTERS
preparation of financial statements for external purposes in Our aforesaid report under section 143(3)(i) of the Act on the
accordance with generally accepted accounting principles. A adequacy and operating effectiveness of the internal financial
company’s internal financial control over financial reporting control over financial reporting insofar as it relates to two
includes those policies and procedures that (1) pertain to the subsidiary companies incorporated in India, is based on the
maintenance of records that, in reasonable detail, accurately corresponding reports of the auditors of such companies.
and fairly reflect the transactions and dispositions of the
assets of the Company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted For Rangamani & Co
accounting principles, and that receipts and expenditures Chartered Accountants
of the Company are being made only in accordance with (Firm Registration No.: 003050 S)
authorizations of management and directors of the Company;
and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or Sd/-
disposition of the Company’s assets that could have a material R. Sreenivasan
effect on the financial statements. Place: Kochi Partner

Consolidated Balance Sheet

as at 31st March, 2017
`
As at As at
EQUITY AND LIABILITIES
Shareholders’ funds
(a) Share capital 3 3,994,755,490.00 3,990,023,320.00
(b) Reserves and surplus 4 61,385,640,575.15 52,232,850,037.98
Minority Interest 719,379,771.44 376,765,307.63
Non-current liabilities
(a) Long-term borrowings 5 48,451,337,451.91 54,265,572,299.51
(b) Other Long-term liabilities 6 6,719,692,255.90 11,268,290,971.06
(c) Long-term provisions 7 97,051,810.57 9,123,843.89
Current liabilities
(a) Short-term borrowings 5 127,658,658,528.63 83,708,091,354.78
(b) Trade Payables
-Total outstanding dues of micro enterprises and small enterprises
-Total outstanding dues of creditors other than micro enterprises and small
975,466,934.79 624,219,397.94
enterprises
(c) Other current liabilities 8 65,047,407,170.79 62,191,659,967.39
(d) Short-term provisions 9 6,792,030,215.24 5,280,934,758.13
Total 321,841,420,204.43 273,947,531,258.31
ASSETS
Non-current assets
(a) Fixed assets 10
(i) Tangible Assets 2,262,400,317.03 2,264,535,511.59
(ii) Intangible Assets 99,918,994.00 51,764,158.93
(iii) Capital Work-in-progress 99,783,210.00 107,155,498.40
(b) Goodwill on consolidation 39-42 211,495,018.13 35,779,973.58
(c) Non-current investments 11 159,073,494.13 146,971,304.38
(d) Deferred tax assets (net) 12 635,146,885.17 563,588,226.27
(e) Long-term loans and advances 13 8,365,977,780.75 2,389,133,231.25
Current assets
(a) Current investments 14 806,252,984.47 343,870,172.18
(b) Trade receivables 15 12,769,313,382.69 14,679,182,447.67
(c) Cash and Bank Balances 16 16,448,756,373.12 7,140,055,589.84
(d) Short-term loans and advances 17 279,923,226,507.71 246,198,115,404.81
(e) Other current assets 18 60,075,257.22 27,379,739.41
Total 321,841,420,204.43 273,947,531,258.31
Notes on accounts form part of consolidated financial statements For and on behalf of the Board of Directors

Sd/- Sd/- Sd/-

Place: Kochi

Consolidated Statement of Profit and Loss

`
Revenue from Operations 19 59,108,007,360.54 49,199,840,167.31
Other income 20 275,902,209.32 207,765,907.66
Total Revenue 59,383,909,569.86 49,407,606,074.97
Expenses:-
Employee benefits expense 21 7,642,315,188.24 6,538,238,006.00
Finance costs 22 23,688,399,963.82 22,856,225,101.88
Other expenses 23 4,623,649,487.16 4,300,332,310.20
Directors Remuneration 358,000,000.00 195,600,000.00
Depreciation and amortization expense 10 519,208,989.72 586,566,472.73
Provisions and Write Offs 24 2,966,497,773.58 1,664,049,832.02
Total Expenses 39,798,071,402.52 36,141,011,722.83
Profit Before Tax 19,585,838,167.34 13,266,594,352.14
Tax expense:-
Current tax 7,569,922,592.58 5,219,481,129.25
Deferred tax (54,947,717.87) (155,208,815.40)
Taxes relating to Previous Years (1,740,485.34) 23,926,173.68
Profit for the year (before adjustment for Minority Interest) 12,072,603,777.96 8,178,395,864.61
Less : Share of profit transferred to Minority Interest (74,750,963.27) (33,392,140.88)
Profit for the year (after adjustment for Minority Interest) 11,997,852,814.69 8,145,003,723.73
Earnings per equity share of ` 10/- each 30
Basic 30.06 20.46
Diluted 29.95 20.22

Sd/- Sd/- Sd/-

Place: Kochi

Consolidated Cash Flow Statement

`
Particulars
A CASH FLOW FROM OPERATING ACTIVITIES
Net Profit Before Taxation 19,585,838,167.34 13,266,594,352.14
Adjustments for :
Add: Provisions for Non-performing Assets and bad debt written off 165,435,823.75 401,079,392.50
Add: Provisions for Standard Assets and Other Losses 2,697,793,631.00 1,223,411,389.42
Add: Provision for Impairment 103,268,318.83 39,559,050.10
Add: Finance Cost 23,688,399,963.82 22,856,225,101.88
Add: Loss on Sale of Fixed Assets 2,234,273.11 106,712.06
Add: Depreciation and amortisation 519,208,989.72 586,566,472.73
Add :Provision for Gratuity 10,558,144.00 2,397,678.60
Add :Expenses on ESOP 36,194,255.00 115,299,604.00
Less :Interest received - Others (205,088,946.58) (145,663,570.95)
Less: Income from Investments (31,006,080.31) (14,425,504.14)
Less: Profit on sale of Investments (5,671,217.00) (21,187.10)
Operating profit before working capital changes 46,567,165,322.69 38,331,129,491.24
Adjustments for:
(Increase) / Decrease in Loans and Advances (33,585,015,027.45) (11,089,607,293.25)
(Increase) / Decrease in Trade receivables 104,658,826.57 (3,236,404,648.94)
(Increase) / Decrease in Other current assets (31,733,970.44) 42,596,256.79
(Increase) / Decrease in Bank balances other than Cash and Cash Equivalents (2,573,992,351.55) 67,118,452.51
Increase / (Decrease) in Current liabilities 1,922,116,322.77 455,719,945.70
Increase / (Decrease) in Other Long Term Provisions 2,489,441.68 629,845.21
Increase / (Decrease) in Other Liabilities (89,518,235.72) 30,171,094.50
Cash generated from operations 12,316,170,328.56 24,601,353,143.76
Finance cost paid (25,358,480,065.65) (19,732,156,365.74)
Direct tax paid (8,863,596,684.57) (3,785,989,334.40)
Net cash from operating activities (21,905,906,421.66) 1,083,207,443.62
B CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (551,436,797.62) (282,302,792.49)
Sale of Fixed Assets 8,731,563.57 23,068,084.84
(Increase) / Decrease in Capital Work in Progress 7,372,288.40 (20,266,769.00)
Purchase of Securities (694,739,247.21) (353,262,208.95)
Sale of Securities 320,925,462.18 65,000,000.00
Acquisition of shares in subsidiary (1,136,429,207.67) (48,629,914.81)
Interest received - Others 204,088,178.76 145,009,802.31
Net Cash from Investing Activities (1,810,481,679.29) (456,958,293.96)

Consolidated Cash Flow Statement

`
Particulars
C CASH FLOW FROM FINANCING ACTIVITIES
Increase / (Decrease) in Debentures (15,023,934,000.00) (13,182,460,000.00)
Increase / (Decrease) in Loan from Directors / Relatives of Directors (780,472,970.98) 1,568,803,173.12
Increase / (Decrease) in Borrowings from Bank /Financial Institutions 20,259,397,956.88 5,075,936,986.17
Increase / (Decrease) in Borrowings from customers 294,590,442.16 409,286,227.26
Increase / (Decrease) in Subordinated debt (6,336,833,000.00) (1,081,805,566.00)
Increase / (Decrease) in Commercial Papers 31,548,450,500.00 -
Dividend paid (including Dividend distribution tax) - (3,832,718,413.89)
Proceeds from issue of Share Capital 306,458,570.00 26,470,010.00
Net Cash from Financing Activities 30,267,657,498.05 (11,016,487,583.34)
D NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C) 6,551,269,397.11 (10,390,238,433.67)

Cash and Cash Equivalent at the Beginning of the Year 7,113,407,099.35 17,477,445,469.71
Add : Addition upon acquisition of subsidiary 84,434,905.49 26,200,063.32
Cash and Cash Equivalent at the end of the Year 13,749,111,401.95 7,113,407,099.35
Components of Cash and Cash Equivalents at the end of the Year
Current Account with Banks 11,893,876,298.61 5,523,120,283.28
Deposit with Banks 207,474,947.04 110,333,503.83
Cash on Hand 1,647,760,156.30 1,479,953,312.24
Total (Refer Note 2(xii)) 13,749,111,401.95 7,113,407,099.35
Notes:
1) The above cash flow statement have been prepared under the indirect method set out in Accounting Standard (AS)-3, ‘Cash Flow Statement’, in compliance
with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
2) All figures in brackets indicate outflow.
3) The cash flows from operating, investing and financing activities are segregated.

Sd/- Sd/- Sd/-

Place: Kochi

Notes on Accounts
1. BACKGROUND Systemically Important Non Deposit Taking NBFC

Muthoot Finance Ltd. was incorporated as a private (NBFC-ND-SI).
limited Company on 14th March 1997 and was
converted into a public limited Company on 18th The Company made an Initial Public Offer of
November 2008. The Company is promoted by Mr. 51,500,000 Equity Shares of the face value ` 10/- each
M. G. George Muthoot, Mr. George Thomas Muthoot, at a price of ` 175/- raising ` 9,012,500,000.00 during
Mr. George Jacob Muthoot and Mr. George Alexander the month of April 2011. The equity shares of the
Muthoot collectively operating under the brand name of Company are listed on National Stock Exchange of India
‘The Muthoot Group’, which has diversified interests in Limited and BSE Limited from 6th May 2011.
the fields of Financial Services, Healthcare, Education,
Plantations, Real Estate, Foreign Exchange, Information BASIS OF CONSOLIDATION
Technology, Insurance Distribution, Hospitality etc. The The Consolidated financial statements relate to Muthoot
Company obtained permission from the Reserve Bank Finance Ltd ( the Company ) and its subsidiaries which
of India for carrying on the business of Non-Banking constitute the ‘Group’ hereinafter. Following subsidiary
Financial Institutions on 13.11.2001 vide Regn No. companies have been considered in the preparation of
N 16.00167. The Company is presently classified as the consolidated financial statements:-
Name of the Company Relationship with % of holding as at % of holding as at

Abbreviation used
(Country of Incorporation) the company 31st March, 2017 31st March, 2016
Asia Asset Finance PLC (Sri Lanka) AAF Subsidiary Company 60.00 59.70
Muthoot Homefin (India) Limited (India) MHIL Subsidiary Company 88.27 79.00
Belstar Investment and Finance Private
BIFPL Subsidiary Company 64.60 -
Limited(India)
Wholly owned
Muthoot Insurance Brokers Private Limited (India) MIBPL 100.00 -
subsidiary Company
2. SIGNIFICANT ACCOUNTING POLICIES consistent with those followed by the Company

(i) BASIS FOR PRESENTATION OF in the previous year. The Company follows
FINANCIAL STATEMENTS prudential norms for income recognition, asset
The consolidated financial statements of the classification and provisioning as prescribed by
Company along with its subsidiaries have been Reserve Bank of India (RBI) vide Non-Banking
prepared in accordance with the Generally Financial Company - Systemically Important
Accepted Accounting Principles in India (Indian Non-Deposit taking Company and Deposit taking
GAAP) to comply with the Accounting Standards Company (Reserve Bank) Directions, 2016.
specified under Section 133 of the Companies MHIL follows prudential norms prescribed by the
Act, 2013, read with Rule 7 of the Companies National Housing Bank, the regulator for Housing
(Accounts) Rules, 2014 and the relevant provisions Finance Companies. BIFPL follows prudential
of the Companies Act, 2013 (“the 2013 Act”) norms for asset classification and provisioning
/ Companies Act, 1956 (“the 1956 Act”), as as prescribed by RBI for Non-Banking Financial
applicable. The financial statements have been Company-Micro Finance Institution (NBFC-MFI)
prepared on accrual basis under the historical vide Non-Banking Financial Company – Micro
cost convention. The accounting policies adopted Finance Institutions (Reserve Bank) Directions,
in the preparation of the financial statements are 2011.

Notes on Accounts
(ii) PRINCIPLES OF CONSOLIDATION identified and presented in the consolidated

The consolidated financial statements have been balance sheet separate from liabilities and
prepared on the following basis:- the equity of the Company’s shareholders.
(a) The financial statement of the subsidiary (e) The excess of cost to the Company of its
companies used in the consolidation are investments in the subsidiary companies
drawn upto the same reporting date as that over its share of equity of the subsidiary
of the Company i.e., Year ended 31st March, companies, at the dates on which the
2017. investments in the subsidiary companies
were made, is recognised as ‘Goodwill’
(b) The financial statements of the Company being an asset in the consolidated financial
and its subsidiaries have been consolidated statements and is tested for impairment
in accordance with the principles and on annual basis. Alternatively, where the
procedures for the preparation and share of equity in the subsidiary companies
presentation of consolidated financial as on the date of investment is in excess of
statements as laid down under Accounting cost of investments of the Company, it is
Standard – 21 ‘ Consolidated Financial recognised as ‘Capital Reserve’ and shown
Statements’, on a line-by-line basis by under the head ‘Reserves & Surplus’, in the
adding together the like items of assets, consolidated financial statements.
liabilities, income and expenses, after
eliminating intra-group balances, intra group (f) Goodwill arising on consolidation is not
transactions and resulting unrealized profits/ amortised but tested for impairment.
losses, unless cost cannot be recovered.
(g) In respect of the foreign subsidiary, its
(c) Consolidated financial statements are financial statements are converted into
prepared using uniform accounting policies Indian currency as per accounting standard
except as stated in (iv), (vi), (viii), (x), (xv) (AS 11) “The effect of changes in Foreign
of this Schedule, the adjustments arising out Exchange Rates”.
of the same are not considered material.
(iii) USE OF ESTIMATES
(d) Minority Interest in the net assets of The preparation of the financial statements requires use
the consolidated subsidiaries consist of of estimates and assumptions that affect the reported
the amount of equity attributable to the amount of assets and liabilities as at the Balance Sheet
minority shareholders at the date on which date, reported amount of income and expenses during
investments in the subsidiary companies the reporting period and disclosure of contingent
were made and further movements in liabilities as at that date. The estimates and assumptions
their share in the equity, subsequent to the used in these financial statements are based upon
dates of investment. Net profit / loss for the management evaluation of the relevant facts and
the year of the subsidiaries attributable to circumstances as of the date of the financial statements.
minority interest is identified and adjusted Management believes that these estimates and
against the profit after tax of the Group in assumptions used are prudent and reasonable. Future
order to arrive at the income attributable results may vary from these estimates. Any revision to
to shareholders of the Company. Minority accounting estimates is recognized in current and future
Interest’s share of net assets of subsidiaries is periods.

Notes on Accounts
(iv) REVENUE RECOGNITION the securitization transaction. Profit on sale of loan

Revenues are recognized and expenses are accounted assets through direct assignment, without any recourse
on accrual basis with necessary provisions for all known obligation or otherwise is recognised over the residual
liabilities and losses. Revenue is recognized to the life of the loan. In respect of loans that have become
extent it is realizable wherever there is uncertainty in Non Performing Asset, interest is recognised only to the
the ultimate collection. Income from Non-Performing extent collected.
Assets is recognized only when it is realized. Income
and expense under bilateral assignment of receivables In respect of its subsidiary, MIBPL, Revenue is
accrue over the life of the related receivables assigned. recognized and expenses are accounted on accrual basis
Interest income and expenses on bilateral assignment of with necessary provision for all known liabilities and
receivables are accounted on gross basis. Interest income losses.
on deposits is recognized on time proportionate basis.
(v) EMPLOYEE BENEFITS
In respect of its subsidiary AAF, for all financial Short Term Employee Benefits:-
instruments interest income or expense is recorded Short Term Employee Benefits for services
using Effective Interest Rate (EIR). EIR is the rate that rendered by employees are recognized during the
exactly discounts the estimated future cash payments period when the services are rendered.
or receipts through the expected life of the financial
instrument or a shorter period, where appropriate, to Post employment benefits:-
the net carrying amount of the financial asset or liability. a) Defined Contribution Plan
The calculation takes into account all contractual terms Provident Fund
of the financial instrument and includes any fees or All eligible employees of the Group are
incremental costs that are directly attributable to the entitled to receive benefits under the
instrument and are an integral part of the EIR, but not provident fund, a defined contribution
future impairment loss. The carrying amount of the plan in which both the employee and the
financial asset or liability is adjusted if the subsidiary group contribute monthly at a stipulated
revises its estimates of payments or receipts. The percentage of the covered employees salary.
adjusted carrying amount is calculated based on the Contributions are charged to Statement of
original EIR and the change in carrying amount is Profit & Loss at actuals. The Group has no
recorded as “Interest Income” for financial assets and liability for future provident fund benefits
“Interest Expense” for financial liabilities. other than its stipulated contribution during
the year. Contributions of the Company
In respect of its subsidiary, MHIL, interest on are made to Employees Provident Fund
standard assets is recognised on accrual basis and Organization in respect of Provident Fund,
on non-performing assets on realisation basis as per Pension Fund and Employees Deposit
the guidelines prescribed by the National Housing Linked Insurance Scheme at the prescribed
Bank. Processing fees and documentation charges are rates. In respect of its subsidiary AAF ,
recognised on disbursal of loans. Contributions to the extent of 12% and
3% of gross emoluments of employees are
In respect of its subsidiary, BIFPL, Interest charges on made to Employees Provident Fund and
loans given to borrowers are recognized on reducing Employees Trust Fund respectively.
balance method. Profit on securitization of loan
portfolio through bankruptcy remote Special Purpose
Vehicle (SPV) is recognized over the residual life of

Notes on Accounts

India.The Company follows the intrinsic
Gratuity value method of accounting for the options
The group provides for gratuity covering and accordingly, the excess of market value
eligible employees under which a lumpsum of the stock options as on the date of grant
payment is made to vested employees over the exercise price of the options, if
at retirement , death , incapacitation or any, is recognized as deferred employee
termination of employment , of an amount compensation cost and is charged to the
reckoned on the respective employee’s Statement of Profit and Loss on graded
salary and his tenor of employment with the vesting basis over the vesting period of the
group.The group accounts for its liability for options.
future gratuity benefits based on actuarial
valuation determined at each Balance (vi) FIXED ASSETS
Sheet date by an Independent Actuary Fixed assets are stated at historical cost less
using Projected Unit Credit Method. The accumulated depreciation. Cost comprises the
group recognizes the net obligation of the purchase price and any attributable cost of
gratuity plan in the Balance Sheet as an bringing the asset to its working condition for its
asset or liability , respectively in accordance intended use.
with Accounting Standard 15 , ‘Employee
Benefits’. Actuarial gains and losses arising In respect of the Company and its subsidiaries-
from experience adjustments and changes in MHIL and MIBPL, depreciation is charged at the
actuarial assumptions are recognised in the rates derived based on the useful lives of the
Statement of Profit and Loss in the period assets as specified in Schedule II of the Companies
in which they arise.The Holding Company Act, 2013 on Written Down Value method. In
makes annual contribution to a Gratuity respect of BIFPL depreciation is charged using
Fund administered by Trustees and separate Straight Line method over the estimated useful life
schemes managed by Kotak Mahindra of each asset as determined by the management.
Old Mutual Life Insurance Limited and The useful life estimates specified in Schedule II of
ICICI Prudential Life Insurance Company the Companies Act, 2013 are generally adhered to
Limited. In respect of its subsidiary BIFPL, except in respect of asset classes where, based on
contribution to gratuity fund is made technical evaluation, a different estimate of useful
through Life Insurance Corporation of India life is considered suitable. All fixed assets costing
group gratuity fund. In respect of the other individually upto `5,000/- are fully depreciated by
subsidiaries gratuity liability is not funded. the Company and its subsidiaries incorporated in
India in the year of its capitalisation.
c) Employee share based payments
Stock options granted to the employees In respect of its foreign subsidiary- AAF, the
of the Company under the stock option estimated useful life is arrived at based on
scheme established are accounted as per management’s estimate of the period for which it
the accounting treatment prescribed by intends to derive future economic benefits from
the SEBI (Employee Stock Option Scheme the use of the asset.The assets are depreciated on
and Employee Stock Purchase Scheme) Straight Line Method on the estimated useful lives
Guidelines, 1999 / SEBI (Share Based so arrived at.
Employee Benefits) Regulations , 2014
issued by Securities Exchange Board of

Notes on Accounts
(vii) FOREIGN EXCHANGE at each reporting date. Deferred tax assets and
TRANSACTIONS deferred tax liabilities are offset wherever the
Foreign currency transactions are recorded, on company has a legally enforceable right to set off
initial recognition, by applying to the foreign current tax assets against current tax liabilities and
currency amount the exchange rate at the date of where the deferred tax assets and deferred tax
the transaction. Foreign currency monetary assets liabilities relate to income taxes levied by the same
and liabilities are reported using the exchange taxation authority.
rate as on the Balance Sheet date. Non-monetary
items, which are carried in terms of historical cost (x) INVESTMENTS
denominated in foreign currency, are reported Investments intended to be held for not more than
using the exchange rate at the date of the one year are classified as current investments. All
transaction. Exchange differences arising on the other investments are classified as non-current
settlement of monetary items are recognized as investments. Current investments are carried
income or as expenses in the period in which they at lower of cost and fair value determined on
arise. an individual investment basis. Non-Current
investments are carried at cost. However, provision
(viii) INTANGIBLE ASSETS for diminution in value is made to recognize a
Intangible Assets are amortized over their decline, other than temporary, in the value of the
expected useful life. It is stated at cost, net of investments.
amortization. The Company amortizes Computer
Software over a period of five years on straight The Group, in respect of the foreign subsidiary,
line method. In respect of its subsidiary AAF, has considered Financial Assets-Held for Trading,
Computer Software is amortized over a period of Investments in Repurchase agreements against
eight years on straight line method. treasury bills and bonds and Investments in
Debentures and Fixed Deposits as current
(ix) TAXES ON INCOME investments. Financial Assets under available
Income Tax expenses comprises of current tax for sale category is treated under non-current
and deferred tax (asset or liability). Current tax is investments. Financial assets held for trading
the amount of tax payable on the taxable income are recorded in the Balance Sheet at fair value.
for the year determined in accordance with the Investments in Repurchase agreements against
relevant Income Tax statutes. Deferred tax is treasury bills and bonds and Investments in
recognized, on timing differences, being the Debentures and Fixed Deposits are measured
difference between taxable income and accounting at amortized cost using Effective Interest Rate
income that originate in one period and are less provision for impairment. After initial
capable of reversal in one or more subsequent measurement, available-for-sale financial
periods. Deferred tax assets are recognised only investments are subsequently measured at fair
to the extent that there is a reasonable certainty value with unrealised gains or losses recognised as
that sufficient future income will be available other comprehensive income in the available-for-
except that deferred tax assets , in case there are sale reserve until the investment is derecognised,
unabsorbed depreciation or losses, are recognised after which , the cumulative gain or loss is
if there is virtual certainty that sufficient future recognised in the statement of comprehensive
taxable income will be available to realise the income in finance costs and removed from the
same. Deferred tax assets are reviewed for the available-for-sale reserve.
appropriateness of their respective carrying values

Notes on Accounts
(xi) IMPAIRMENT OF ASSETS (xiv) DEBENTURE REDEMPTION

The carrying amounts of assets are reviewed at RESERVE
each balance sheet date to ascertain impairment In terms of Section 71 of the Companies Act,
based on internal / external factors. An 2013 read with Rule 18 (7) of Companies
impairment loss is recognized when the carrying (Share Capital and Debentures) Rules 2014 , the
amount of an asset exceeds its recoverable Company has created Debenture Redemption
amount. The recoverable amount is the higher Reserve in respect of Secured Redeemable
of the net selling price of the assets or their Non-Convertible Debentures and Unsecured
value in use. After impairment, depreciation is Redeemable Non-Convertible Debentures issued
provided on the revised carrying amount of the through public issue as per SEBI (Issue and
asset over its remaining useful life. A previously Listing of Debt Securities) Regulations, 2008. No
recognized impairment loss is increased or Debenture Redemption Reserve is to be created
reversed depending on changes in circumstances. for privately placed debentures of Non-Banking
However, the carrying value after reversal is not Finance Companies. Other subsidiary companies
increased beyond the carrying value that would except BIFPL have no outstanding amount of
have prevailed by charging usual depreciation if debentures.
there was no impairment.
(xv) PROVISION FOR STANDARD
(xii) CASH AND CASH EQUIVALENTS ASSETS AND NON PERFORMING
Cash and cash equivalents comprise of cash at ASSETS
bank, cash in hand and bank deposits having Company makes provision for standard assets
maturity of 3 months or less. and non performing assets as per Non-Banking
Financial Company - Systemically Important
(xiii) PROVISIONS, CONTINGENT Non-Deposit taking Company and Deposit
LIABILITIES & CONTINGENT taking Company (Reserve Bank) Directions,
ASSETS 2016. Provision for standard assets in excess
Provisions are recognized only when the Group of the prudential norms, as estimated by the
has present, legal, or constructive obligations as a management, is categorised under Provision for
result of past events, for which it is probable that Standard Assets , as General provisions and/or as
an outflow of economic benefit will be required to Gold Price Fluctuation Risk provisions.
settle the transaction and a reliable estimate can
be made for the amount of the obligation. In respect of its Subsidiary AAF, financial assets
carried at amortized cost such as lease , hire
Contingent liability is disclosed for (i) possible purchase and loans and advances are assessed for
obligations which will be confirmed only by objective evidence of impairment as individually
future events not wholly within the control of the significant or collectively , if not individually
Group or (ii) present obligations arising from past significant, as on the date of Balance Sheet. If
events where it is not probable that an outflow of impairment loss has been incurred , the amount
resources will be required to settle the obligation of loss is measured as the difference between the
or a reliable estimate of the amount of the assets carrying amount and the present value of
obligation cannot be made. estimated future cash flows and is recognised as
Provision for Impairment through Statement of
Contingent assets are not recognized in the Profit and Loss.
financial statements since this may result in the
recognition of income that may never be realized.

Notes on Accounts
In respect of its Subsidiary, MHIL, provision unit that offers different products and serves
has been made on standard as well as on non- different markets. Based on the operation,
performing housing loans as per the Prudential the Group has identified primary business
Norms prescribed by the National Housing Bank. segments – Financing, Power Generation
and Insurance broking and based on the
In respect of its subsidiary BIFPL, norms as geography of operation , the Group has
prescribed by RBI for the classification and identified secondary segments - Within
provisioning of assets have been followed. India and Outside India.
(xvi) LEASES b) The segment revenues, results, assets and

Leases where the lessor effectively retains liabilities include the respective amounts
substantially all the risks and benefits of identifiable to each of the segment and
ownership of the leased assets, are classified as amounts allocated on a reasonable basis.
operating leases.
Unallocated items:-
Where the Group is the Lessor: Unallocated items include income, expenses,
Assets given on operating leases are included assets and liabilities which are not allocated to any
in fixed assets. Lease income is recognized in reportable business segment.
the Statement of Profit and Loss on a straight-
line basis over the lease term. Costs, including Segment Policies:-
depreciation are recognized as an expense in The Group prepares its segment information in
the Statement of Profit and Loss. Initial direct conformity with the accounting policies adopted
costs such as legal costs, brokerage costs, etc. are for preparing and presenting the financial
recognized immediately in the Statement of Profit statements of the Group as a whole.
and Loss.
(xviii) CURRENT/NON-CURRENT
Where the Group is the lessee: CLASSIFICATION OF ASSETS/
Operating lease payments are recognized as an LIABILITIES
expense in the Statement of Profit and Loss on a The Group has classified all its assets / liabilities
straight-line basis over the lease term. into current / non-current portion based on
the time frame of 12 months from the date of
(xvii) SEGMENT REPORTING financial statements. Accordingly, assets/liabilities
Identification of segments:- expected to be realised /settled within 12 months
a) The Group’s operating businesses are from the date of financial statements are classified
organized and managed separately according as current and the rest of assets/ liabilities are
to the nature of services provided, with each classified as non-current.
segment representing a strategic business

Notes on Accounts
(Amounts in the financial statements are stated in Rupees, except for share data and as otherwise stated.)
3. SHARE CAPITAL `
3.1 Share Capital
As at As at
Particulars
Authorised
450,000,000 Equity Shares of ` 10/- each 4,500,000,000.00 4,500,000,000.00
(Previous year: 450,000,000 Equity Shares of ` 10/- each)
5,000,000 Preference Shares of ` 1000/- each 5,000,000,000.00 5,000,000,000.00
(Previous year: 5,000,000 Preference Shares of ` 1000/- each)
Issued, Subscribed & Paid up
399,475,549 Equity Shares of ` 10/- each fully paid 3,994,755,490.00 3,990,023,320.00
(Previous Year: 399,002,332 Equity Shares of ` 10/- each fully paid)
Total 3,994,755,490.00 3,990,023,320.00
3.2 Terms and Rights attached to Equity In the event of liquidation of the Company, the holders of
Shares equity shares will be entitled to receive any of the remaining
The Company has only one class of equity share assets of the Company, after distribution of all preferential
having face value ` 10/- per share. All these shares have amounts. The distribution will be in proportion to the
the same rights and preferences with respect to the number of equity shares held by the shareholders.
payment of dividend, repayment of capital and voting.
3.3 The reconciliation of the number of shares outstanding and the amount of share capital as at
31st March, 2017 and 31st March, 2016 is set out below:-
`
As at 31st March, 2017 As at 31st March, 2016
Particulars Equity Shares Equity Shares
Number Amount Number Amount
Shares outstanding at the beginning of the year 399,002,332 3,990,023,320.00 397,966,419 3,979,664,190.00
Shares issued in exercise of Employee Stock Options during the year 473,217 4,732,170.00 1,035,913 10,359,130.00
Shares outstanding at the end of the year 399,475,549 3,994,755,490.00 399,002,332 3,990,023,320.00
3.4 Disclosure as to the shareholders holding more than 5 percent shares

Sl. As at 31st March, 2017 As at 31st March, 2016
Name of Shareholder
No. No. of Shares held % of Holding No. of Shares held % of Holding
1 M. G. George Muthoot 46,551,632 11.65% 47,385,132 11.88%
2 George Alexander Muthoot 43,630,900 10.92% 44,464,400 11.14%
3 George Jacob Muthoot 43,630,900 10.92% 44,464,400 11.14%
4 George Thomas Muthoot 43,630,900 10.92% 44,464,400 11.14%
5 Susan Thomas 29,985,068 7.51% 29,985,068 7.52%

Notes on Accounts
3.5 Disclosure as to aggregate number and class of shares allotted as pursuant to contract(s)
without payment being received in cash, fully paid up by way of bonus shares and shares
bought back.
Fully paid up pursuant
Sl. to contract(s) without Fully paid up by way of
Particulars Shares bought back
No. payment being received bonus shares
in cash
Equity Shares :
1 2016-2017 Nil Nil Nil
2 2015-2016 Nil Nil Nil
3 2014-2015 Nil Nil Nil
3.6 Shares reserved for issue under Employee Stock Option Scheme
The Company has reserved 2,837,904 equity shares ( Previous year : 3,659,788) for issue under the Employee Stock
Option Scheme 2013. (Refer Note.26.c)
4. RESERVES AND SURPLUS

`
As at As at
Particulars
a. Securities Premium Account

Add : Securities premium on Equity Share issue 56,068,873.10 114,460,339.90
Closing Balance 14,721,810,886.66 14,665,742,013.56
b. General Reserve
Add: Amount transferred from surplus balance in the Statement of Profit and Loss - -
Closing Balance 2,676,332,599.00 2,676,332,599.00
c. Debenture Redemption Reserve (Refer Note.4.1)
Closing Balance 20,335,907,310.50 15,517,788,282.00
d. Statutory Reserve (Refer Note.4.2)
Closing Balance 12,654,507,239.80 10,294,843,942.80
e. Share options outstanding account ( Refer Note.26 c )
Balance at the beginning of the year 223,669,846.40 206,719,702.30
Additions during the year 36,194,255.00 115,299,604.00
Deduction during the year on share allotment 38,592,473.10 98,349,459.90
Closing Balance 221,271,628.30 223,669,846.40

Notes on Accounts
4. RESERVES AND SURPLUS (CONTD.)

`
As at As at
Particulars
f. Foreign Currency Translation Reserve
Balance at the beginning of the year (19,342,881.05) (30,435.01)
Additions during the year ( Net ) (13,256,932.36) (19,312,446.04)
Closing Balance (32,599,813.41) (19,342,881.05)
g. Surplus in the Statement of Profit and Loss
Add: Net Profit For the year 11,997,852,814.69 8,145,003,723.73
Less: Consequent to change in Group’s Interest 678,503.15 4,953,632.21
Less: Appropriations
Interim Dividend ( Refer Note.29 a ) 2,396,853,294.00 2,390,180,648.00
Dividend relating to earlier years - 3,081,125.00
Corporate Dividend Tax 487,944,203.00 486,590,582.00
Transfer to Debenture Redemption Reserve 4,818,119,028.50 3,509,466,198.50
Transfer to Statutory Reserve 2,359,663,297.00 1,619,106,307.00
Closing Balance 10,808,410,724.31 8,873,816,235.27
Total 61,385,640,575.15 52,232,850,037.98
4.1 Debenture Redemption Reserve 4.2 Statutory Reserve

During the year, the company has transferred an amount Statutory Reserve represents the Reserve Fund created under
of ` 4,818,119,028.50 (Previous Year: Section 45 IC of the Reserve Bank of India Act, 1934. No
` 3,509,466,198.50) to the Debenture Redemption appropriation was made from the Reserve Fund during the
Reserve. No appropriation was made from this Reserve year.
during the year.
5. BORROWINGS
5.1 Borrowings – Secured and Unsecured
`
SECURED
(a) Debentures
Secured Non-Convertible Debentures 5,269,448,000.00 14,378,919,000.00 19,920,630,000.00 26,529,927,000.00
advances)
(Refer Note No. 5.2)

Notes on Accounts

`
Secured Non-Convertible Debentures-
24,341,527,000.00 20,195,055,000.00 12,756,626,000.00 16,208,264,000.00
Listed
advances)
(Refer Note. 5.3 & 5.4)
Secured Non-Convertible Debentures 400,000,000.00 - - -
(Secured by way of charge on hypothecated
receivables)
(Refer Note.5.5)
(b) Term loans

From banks
- 78,039.10 78,039.10 478,750.00
vehicles)
(Terms of Repayment : ` 78,039.10 during
F Y 2017-18 in 3 monthly installments,
Rate of Interest :10.51 % p.a.)
Term Loan (Secured by promissory notes,
loans, lease and hire purchase receivables,
Mortgage bond over loan recoverable 244,305,895.27 134,671,434.77 128,033,821.98 36,642,052.40
consist of business loan, corporate loan and
mortgage loan)
repayable during FY 17-18 in monthly
installments & ` 244,305,895.27 after FY
17-18 repayable in monthly installments,
Rate of Interest :- Base rate + (2.5% - 3.5
%) p.a)
Securitisation Loans (Secured by lease and
68,967,583.72 504,630,110.32 614,209,530.85 27,408,614.99
hire purchase assets and receivables)
( Terms of Repayment : Repayable in 14-37
monthly installments. Rate of Interest :
11%- 17% p.a.)
Term Loan (Secured by paripassu floating
charge on current assets, book debts, Loans 2,000,000,000.00 - - -
& advances )
( Terms of Repayment : During F Y 2018-
19 in 4 quarterly installments, Rate of
Interest :8.75 % p.a.)

Notes on Accounts

`
Term Loan from Banks
(Secured by paripassu floating charge on
housing loan receivables, credit and current
assets)
repayable during FY 17-18 in quarterly / 2,053,472,222.00 - 96,527,778.00 -
half yearly installments &
` 2,053,472,222.00 after FY 17-18
repayable in quarterly / half yearly
installments,
Rate of Interest: 8.75% - 9.70%)
Term Loan from Banks
(Secured by way of specific charge on
receivables created out of the proceeds of
the loan)
(Terms of Repayment: ` 1,255,284,974.00
1,540,489,098.06 - 1,255,284,974.00 -
repayable during FY 17-18 in quarterly /
monthly installments & ` 1,540,489,098.00
after FY 17-18 repayable in quarterly /
monthly installments, Rate of Interest:
11.00% - 15.00%)
Term Loan - (Secured by specific charge on
1,154,309.00 2,851,364.00 1,697,055.00 2,564,824.37
vehicles)
during F Y 2017-18 in 12 monthly
installments & ` 1,154,309.00 during F Y
2018-19 in 7-8 monthly installments , Rate
of Interest : 9.19-9.30 % p.a. )
Term Loan - (Secured by specific charge on
receivables created out of the proceeds of 1,202,320,038.00 - 1,677,524,497.00 -
the loan.)
(Terms of Repayment: Amount
` 1,677,524,497.00 repayable during F Y
2017-18 in quarterly / monthly installments
& ` 1,202,320,038.00 after F Y 2017-18
in quarterly / monthly installments , Rate of
Interest : 9.75-16.00 % p.a. )

Notes on Accounts
`
(c) Loans repayable on demand

From banks
Overdraft against Deposit with Banks - - 3,711,833.26 7,782,787.27
(Secured by a lien on Fixed Deposit with
Banks)
Cash Credit - - 29,832,400,084.61 23,985,739,486.09
on current assets, receivables, Loans
Promoter Directors)
(d) Short Term Loans

From Banks - - 59,540,000,000.32 52,950,000,000.00
Promoter Directors)
Sub Total (1) 37,121,684,146.05 35,216,204,948.19 125,826,723,614.12 119,748,807,515.12
UNSECURED
(a) Debentures
11.5% Unsecured, Redeemable, Rated,
Unlisted, Subordinated, Taxable, Non- 100,000,000.00 - - -
Convertible Debentures
(Refer Note.5.9)
(b) Loans repayable on demand

From banks - - 750,000,000.00 -
(c) Loans and advances from related parties

Loan from Directors and Relatives - - 5,984,096,110.44 6,764,569,081.42
Subordinated Debt (Refer Note 5.6) 50,000.00 262,000.00 212,000.00 84,145,000.00

Notes on Accounts
`
(d) Other loans and advances

Subordinated Debt Listed (Refer Note.5.7
3,661,807,000.00 3,108,046,000.00 - -
& 5.8)
Commercial Paper - - 31,548,450,500.00 -
Subordinated Debt (Refer Note.5.6) 7,037,926,000.00 15,077,374,000.00 8,419,374,000.00 7,186,375,000.00
Due to customers (Fixed Deposits)(Refer
529,870,305.86 863,685,351.32 1,891,504,629.20 1,231,866,037.56
Note.5.10)
Sub Total (2) 11,329,653,305.86 19,049,367,351.32 48,593,637,239.64 15,266,955,118.98
Total (1)+(2) 48,451,337,451.91 54,265,572,299.51 174,420,360,853.76 135,015,762,634.10

Less: Amount included under Current
Liabilities
Current maturities of long term debt (Refer

- - 45,656,759,325.13 50,568,268,279.32
Note.8.1)
Unpaid Matured Debentures (Refer
- - 1,104,943,000.00 739,403,000.00
Note.8.2)
As per Balance Sheet 48,451,337,451.91 54,265,572,299.51 127,658,658,528.63 83,708,091,354.78
Long Term Borrowings 48,451,337,451.91 54,265,572,299.51 - -

Short Term Borrowings - - 127,658,658,528.63 83,708,091,354.78
There is no continuing default as on the balance sheet date in repayment of loans and interest.

Notes on Accounts
5.2 Secured Redeemable Non-Convertible Debentures

The Company had privately placed Secured Redeemable Non-Convertible Debentures for a maturity period of 60-120
months with an outstanding amount of ` 25,190,078,000.00 (Previous Year: ` 40,908,846,000.00) .
`
allotment
CU 31.03.2014 15,000,000.00 20,000,000.00 120 months 10.50-12.50
CT 14.03.2014-31.03.2014 34,000,000.00 47,000,000.00 120 months 10.50-12.50
CS 27.02.2014-14.03.2014 47,000,000.00 57,000,000.00 120 months 10.50-12.50
CR 07.02.2014-27.02.2014 25,000,000.00 49,500,000.00 120 months 10.50-12.50
CQ 04.02.2014-07.02.2014 44,500,000.00 59,500,000.00 120 months 10.50-12.50
CP 20.01.2014-04.02.2014 84,000,000.00 92,000,000.00 120 months 10.50-12.50
CO 10.01.2014-20.01.2014 130,000,000.00 137,000,000.00 120 months 10.50-12.50
CN 03.01.2014-10.01.2014 87,500,000.00 109,000,000.00 120 months 10.50-12.50
CM 24.12.2013-03.01.2014 37,500,000.00 80,000,000.00 120 months 10.50-12.50
CL 05.12.2013-24.12.2013 41,500,000.00 64,000,000.00 120 months 10.50-12.50
CK 18.11.2013-05.12.2013 34,500,000.00 58,000,000.00 120 months 10.50-12.50
CJ 29.10.2013-18.11.2013 34,500,000.00 73,500,000.00 120 months 10.50-12.50
CI 09.10.2013-29.10.2013 39,500,000.00 47,000,000.00 120 months 10.50-12.50
CH 27.09.2013 - 09.10.2013 66,500,000.00 71,500,000.00 120 months 10.50-12.50
CG 06.09.2013 - 27.09.2013 28,000,000.00 38,500,000.00 120 months 10.50-12.50
CF 31.08.2013 - 06.09.2013 25,500,000.00 43,000,000.00 120 months 10.50-12.50
CE 12.08.2013 - 31.08.2013 36,000,000.00 62,000,000.00 120 months 10.50-12.50
CD 31.07.2013 - 10.08.2013 41,000,000.00 61,000,000.00 120 months 10.50-12.50
CC 08.07.2013 - 31.07.2013 46,000,000.00 51,500,000.00 120 months 10.50-12.50
CB 24.06.2013 - 07.07.2013 1,521,760,000.00 2,077,202,000.00 120 months 10.50-12.50
CA 18.04.2013 - 23.06.2013 2,907,819,000.00 4,145,538,000.00 120 months 10.50-12.50
BZ 01.03.2013 - 17.04.2013 2,835,202,000.00 3,766,665,000.00 120 months 10.50-12.50
BY 18.01.2013 - 28.02.2013 2,627,205,000.00 3,009,281,000.00 120 months 10.50-12.50
CZ 04.05.2016 415,000,000.00 - 60 months 9.25-9.50
CY 03.02.2016 260,000,000.00 260,000,000.00 60 months 9.50-9.75
CX 03.11.2014 - 390,000,000.00 60 months 10.00-12.00
CW 08.05.2014 60,500,000.00 72,000,000.00 60 months 10.00-12.00
CV 24.04.2014 97,000,000.00 111,000,000.00 60 months 10.00-12.00
BX 26.11.2012 - 17.01.2013 2,430,069,000.00 2,755,174,000.00 60 months 10.50-12.50
BW 01.10.2012 - 25.11.2012 3,141,937,000.00 3,568,659,000.00 60 months 11.50-12.50
BV 17.08.2012 - 30.09.2012 1,919,045,000.00 2,411,077,000.00 60 months 11.50-12.50
BU 01.07.2012 - 16.08.2012 2,234,008,000.00 2,851,060,000.00 60 months 11.50-12.50
BT 21.05.2012 - 30.06.2012 1,509,716,000.00 1,893,736,000.00 60 months 11.50-12.50
BS 01.05.2012 - 20.05.2012 662,877,000.00 807,592,000.00 60 months 11.50-12.50

Notes on Accounts
5.2 Secured Redeemable Non-Convertible Debentures (Contd.)
`
allotment
BR 01.03.2012 - 30.04.2012 1,333,893,000.00 2,562,963,000.00 60 months 11.50-12.50
BQ 23.01.2012 - 29.02.2012 154,856,000.00 1,928,350,000.00 60 months 11.50-12.50
BP 01.12.2011 - 22.01.2012 67,275,000.00 1,738,951,000.00 60 months 11.50-12.50
BO 19.09.2011 – 30.11.2011 41,730,000.00 1,602,397,000.00 60 months 11.00-12.00
BN 01.07.2011 – 18.09.2011 25,764,000.00 1,592,606,000.00 60 months 11.00-12.00
BM 01.04.2011 – 30.06.2011 12,698,000.00 1,530,981,000.00 60 months 11.00-12.00
BL 01.01.2011 - 31.03.2011 9,049,000.00 512,024,000.00 60 months 10.00-11.50
BK 01.10.2010 - 31.12.2010 5,318,000.00 54,639,000.00 60 months 9.50-11.50
BJ 01.07.2010 – 30.09.2010 5,340,000.00 19,824,000.00 60 months 9.50-11.00
BI 01.04.2010 - 30.06.2010 1,607,000.00 6,103,000.00 60 months 9.00-10.50
BH 01.01.2010 - 31.03.2010 2,077,000.00 5,617,000.00 60 months 9.00-10.50
BG 01.10.2009 - 31.12.2009 1,450,000.00 2,769,000.00 60 months 9.50-10.50
BF 01.07.2009 - 30.09.2009 1,826,000.00 2,008,000.00 60 months 10.50
BE 01.04.2009 - 30.06.2009 544,000.00 677,000.00 60 months 10.50-11.50
BD 01.01.2009 - 31.03.2009 2,862,000.00 3,032,000.00 60 months 11.00-12.00
BC 22.09.2008 - 31.12.2008 378,000.00 435,000.00 60 months 11.00-12.00
BB 10.07.2008 - 21.09.2008 105,000.00 255,000.00 60 months 11.00-11.50
AZ 01.04.2008 - 02.07.2008 1,049,000.00 1,203,000.00 60 months 10.50-11.00
AY 01.01.2008 - 31.03.2008 70,000.00 105,000.00 60 months 10.50-11.00
AX 01.10.2007 - 31.12.2007 115,000.00 115,000.00 60 months 10.50-11.00
AW 01.07.2007 - 30.09.2007 292,000.00 312,000.00 60 months 10.50-11.00
AV 01.04.2007 - 30.06.2007 117,000.00 137,000.00 60 months 10.50-11.00
AE 15.07.2004 - 30.09.2004 32,000.00 32,000.00 90 months 10.83-12.00
AU 01.01.2007 - 31.03.2007 1,237,000.00 1,262,000.00 60 months 9.00-11.00
AT 13.08.2006 - 31.12.2006 203,000.00 820,000.00 60 months 9.00-9.50
AS 01.05.2006 - 12.08.2006 186,000.00 186,000.00 60 months 8.50-9.00
AR 15.06.2005 - 30.04.2006 110,000.00 437,000.00 60 months 8.00-8.50
AQ 01.04.2005 - 14.06.2005 30,000.00 365,000.00 60 months 8.00-8.50
AP 07.02.2005 - 14.06.2005 30,000.00 30,000.00 60 months 9.27-10.08
AO 07.02.2005 - 31.03.2005 39,000.00 39,000.00 60 months 8.00-8.50
AN 01.01.2005 - 06.02.2005 148,000.00 148,000.00 60 months 8.50-9.00
AI 01.10.2004 - 06.02.2005 10,000.00 10,000.00 60 months 10.20-12.00
AD 01.07.2004 - 14.11.2004 - 30,000.00 60 months 9.50
Total 25,190,078,000.00 40,908,846,000.00
Of the above, ` 5,269,448,000.00 (Previous Year: ` 14,378,919,000.00) is included in long-term borrowings and
` 19,195,613,000.00 (Previous Year: ` 25,917,313,000.00) is included in current maturities of long-term debt (Refer Note.8.1)
and ` 725,017,000.00 (Previous Year: ` 612,614,000.00) is included in unpaid matured debentures (Refer Note.8.2).

Notes on Accounts
5.3 Secured Redeemable Non Convertible Debentures – Listed

The Company had privately placed Rated Secured Redeemable Non-Convertible Listed Debentures which matured and
was redeemed during the year.
`
allotment
L4 12.01.2012 - 1,000,000,000.00 60 Months 13.00
Total - 1,000,000,000.00
5.4 Secured Non Convertible Debentures – Public Issue

The outstanding amount of Secured Rated Non-Convertible Listed Debentures raised through Public Issue stood at
` 37,098,153,000.00 (Previous Year: ` 35,403,319,000.00 )
`
allotment
PL 16 30.01.2017 13,000,000,000.00 - 400 Days,1.5,2,3,5 years 8.25-9.25
PL 15 12.05.2016 4,763,997,000.00 - 400 Days,1.5,2,3,5 years 8.75-9.75
PL 14 20.01.2016 3,652,779,000.00 4,154,843,000.00 400 Days,2,3,5 years 9.00-10.00
PL 13 14.10.2015 3,945,916,000.00 4,640,533,000.00 400 Days,2,3,5 years 9.25-10.25
PL 12 23.04.2015 2,266,789,000.00 2,710,855,000.00 400 Days,2,3,5 years 9.75-10.75
PL 11 29.12.2014 2,039,475,000.00 3,033,948,000.00 400 Days,2,3,5 years 10.25-11.25
PL 10 26.09.2014 2,336,743,000.00 3,216,416,000.00 400 Days,2,3,5 years 10.25-11.50
PL 9 04.07.2014 2,345,257,000.00 3,793,100,000.00 400 Days,2,3,5 years 10.50-11.75
PL 8 02.04.2014 13,006,000.00 1,553,624,000.00 400 Days,2,3,5 years 10.50-11.75
PL 7 04.02.2014 37,872,000.00 2,458,544,000.00 400 Days,2,3,5 years 11.00-12.25
PL 6 04.12.2013 39,228,000.00 1,568,290,000.00 400 Days,2,3,5 years 11.00-12.25
PL 5 25.09.2013 51,760,000.00 1,533,527,000.00 400 Days,2,3,5 years 11.00-12.55
PL 4 01.11.2012 926,177,000.00 926,177,000.00 2,3,5,6 years 11.50-12.25
PL 3 18.04.2012 768,938,000.00 768,938,000.00 2, 3, 5, 5.5 years 13.00-13.43
PL 2 18.01.2012 910,216,000.00 1,502,868,000.00 2, 3, 5, 5.5 years 13.00-13.43
PL 1 14.09.2011 - 3,541,656,000.00 2, 3, 5 years 11.75-12.25
Total 37,098,153,000.00 35,403,319,000.00
Out of the above, ` 24,341,527,000.00 (Previous Year: ` 20,195,055,000.00) is classified as Long-term borrowings and
` 12,756,626,000.00 (Previous Year: ` 15,208,264,000.00 ) is classified as Current maturities of Long-term Debt
(Refer Note.8.1)

Notes on Accounts
5.5 Secured Redeemable Non Convertible Debentures

BIFPL privately placed Rated Secured Redeemable Non-Convertible Debentures with an outstanding amount of `
400,000,000.
`
Amount Amount Redemption Period from the
Date of allotment Interest Rate %
As at 31st March 2017 As at 31st March 2016 date of allotment
30.03.2017 400,000,000.00 - 36 months 12.00
Total 400,000,000.00 -
5.6 Subordinated Debt

Subordinated Debt is subordinated to the claims of other creditors and qualifies as Tier II capital under the Non-Banking
Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016. The outstanding amount of privately placed subordinated debt stood at ` 15,457,562,000.00 (Previous
year: ` 22,348,156,000.00)
`
allotment
XVII 09.05.2014 21,000,000.00 21,000,000.00 72 months 11.61
XVI 18.02.2014 - 31.03.2014 46,000,000.00 46,000,000.00 66 months 12.67
XV 22.12.2013 - 17.02.2014 98,500,000.00 98,500,000.00 66 months 12.67
XIV 18.09.2013 - 21.12.2013 298,000,000.00 298,000,000.00 66 months 12.67
XIII 08.07.2013 - 17.09.2013 98,000,000.00 98,000,000.00 66 months 12.67
XII 01.04.2013 - 07.07.2013 1,825,156,000.00 1,825,156,000.00 66 months 12.67
XI 01.10.2012 - 31.03.2013 4,651,420,000.00 4,651,420,000.00 66 months 12.67-13.39
X 01.04.2012 - 30.09.2012 3,548,456,000.00 3,548,456,000.00 66 months 12.67-13.39
IX 01.11.2011 - 31.03.2012 4,081,076,000.00 4,081,076,000.00 66 months 12.67-13.39
E 21.03.2005 - 65,942,062.00 144 months 15.00
VIII 01.07.2011 - 31.10.2011 686,459,000.00 2,343,849,000.00 66 months 12.67
VII 01.01.2011 - 07.02.2011 26,059,000.00 437,284,000.00 72 months 11.61
VII 01.04.2011 - 30.06.2011 30,245,000.00 1,270,315,000.00 66 months 12.67
VII 08.02.2011 - 31.03.2011 8,992,000.00 1,080,398,000.00 66 months 12.67
VI 01.07.2010 - 31.12.2010 29,595,000.00 1,912,708,000.00 72 months 11.61
D 03.04.2004 - 14,057,938.00 144 months 15.00
V 01.01.2010 - 30.06.2010 3,064,000.00 537,538,000.00 72 months 11.61
IV 17.08.2009 - 31.12.2009 2,136,000.00 11,199,000.00 72 months 11.61
IV 01.07.2009 - 16.08.2009 50,000.00 160,000.00 72 months 12.50
IV 01.07.2009 - 16.08.2009 2,176,000.00 4,078,000.00 69 months 12.12
III 15.12.2008 - 30.06.2009 230,000.00 530,000.00 72 months 12.50
III 15.12.2008 - 30.06.2009 948,000.00 2,276,000.00 69 months 12.12
II 18.08.2008 - 13.12.2008 - 213,000.00 72 months 11.61
Total 15,457,562,000.00 22,348,156,000.00
Out of the above, ` 7,037,976,000.00 is classified as long term borrowings (Previous year: ` 15,077,636,000.00) and `
8,039,660,000.00 is classified as current maturities of long term debt (Previous year: ` 7,143,731,000.00) and
` 379,926,000.00 (Previous year : ` 126,789,000.00) is included in unpaid matured debentures ( Refer Note.8.2)

Notes on Accounts
5.7 Subordinated Debt – Public Issue

The outstanding amount of Unsecured, Rated, Redeemable Non-Convertible, Listed Subordinated Debt which qualifies
as Tier II capital under the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company
and Deposit taking Company (Reserve Bank) Directions, 2016 issued through public issue stood at ` 3,561,807,000.00
(Previous Year : ` 3,008,046,000.00). This amount is classified as long term borrowings.
`
allotment
PL 16 30.01.2017 317,758,000.00 - 8 Years 9.06
PL 15 12.05.2016 236,003,000.00 - 7.50 Years 9.67
PL 14 20.01.2016 230,392,000.00 230,392,000.00 7.25 Years 10.02
PL 13 14.10.2015 359,467,000.00 359,467,000.00 7 Years 10.41
PL 12 23.04.2015 289,145,000.00 289,145,000.00 6.75 Years 10.80
PL 11 29.12.2014 386,544,000.00 386,544,000.00 6.5 Years 11.23
PL 10 26.09.2014 304,362,000.00 304,362,000.00 6.5 Years 11.23
PL 9 04.07.2014 364,494,000.00 364,494,000.00 6.25 Years 11.70
PL 8 02.04.2014 193,456,000.00 193,456,000.00 6.25 Years 11.70
PL 7 04.02.2014 437,571,000.00 437,571,000.00 6 Years 12.25
PL 6 04.12.2013 232,879,000.00 232,879,000.00 6 Years 12.25
PL 5 25.09.2013 209,736,000.00 209,736,000.00 6 Years 12.25
Total 3,561,807,000.00 3,008,046,000.00
5.8 Subordinated Debt - Listed

The privately placed Unsecured, Rated, Redeemable Non-Convertible Listed Subordinated Debt which qualifies as Tier II
capital under the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit
taking Company (Reserve Bank) Directions, 2016 stood at ` 100,000,000.00 (Previous Year : ` 100,000,000.00 ). This
amount is classified as long term borrowings.
`
allotment
IA 26.03.2013 100,000,000.00 100,000,000.00 10 Years 12.35
Total 100,000,000.00 100,000,000.00

Notes on Accounts
5.9 Unsecured Redeemable Non Convertible Debentures

BIFPL privately placed Rated Unsecured Redeemable Non-Convertible Debentures with an outstanding amount of
` 100,000,000.
`
Amount Amount Redemption Period from the
Date of allotment Interest Rate %
As at 31st March 2017 As at 31st March 2016 date of allotment
31.03.2017 100,000,000.00 - 74 months 11.50
Total 100,000,000.00 -
5.10 Due to customers ( Fixed Deposits)

`
Amount Amount
Redeemable from the Balance Sheet date Interest Rate %
36-60 months 122,163,338.42 48,889,584.12 7.25-16.25
12-36 months 407,706,967.43 814,795,767.20 8.25-18.65
Upto 12 months 1,891,504,628.77 1,231,866,037.56 6.50-18.50
Total 2,421,374,934.62 2,095,551,388.88
6. OTHER LONG TERM LIABILITIES

`
Interest accrued but not due on long term borrowings 6,643,075,352.37 11,156,872,685.41
Security Deposit Received 76,616,903.53 111,418,285.65
Total 6,719,692,255.90 11,268,290,971.06
7. LONG-TERM PROVISIONS
`
Provision for Gratuity 13,651,887.57 7,864,330.89
- As per RBI Prudential Norms 14,169,402.00 -
- As per NHB Prudential Norms 17,332,869.00 1,259,513.00
- General 51,897,652.00 -
Total 97,051,810.57 9,123,843.89

Notes on Accounts
8. OTHER CURRENT LIABILITIES

`
(a) Current maturities of long term debt ( Refer Note.8.1) 45,656,759,325.13 50,568,268,279.32
(b) Interest accrued but not due on borrowings 12,521,025,660.44 9,901,174,745.94
(c) Interest accrued and due on borrowings 98,549,273.98 147,349,221.27
(d) Unpaid matured debentures and interest accrued thereon (Refer Note.8.2) 1,594,611,859.00 954,314,537.00
(e) Other payables
Statutory Payables 243,912,288.50 381,979,385.98
Unpaid Dividend 3,256,463.44 4,513,503.77
Interim Dividend Payable 2,396,853,294.00 -
Corporate Dividend Tax Payable 487,944,203.00 -
Others 2,044,494,803.30 234,060,294.11
Total 65,047,407,170.79 62,191,659,967.39
8.1 Current Maturities of Long Term debts

`
As at As at
Particulars
SECURED
Secured Non-Convertible Debentures 19,195,613,000.00 25,917,313,000.00
Secured Non-Convertible Debentures - Listed 12,756,626,000.00 16,208,264,000.00
From Banks
Term loan ( Secured by specific charge on vehicles) 78,039.10 478,750.00
Term loan (Secured by promissory notes, loans, lease and hire purchase receivables, Mortgage
128,033,821.98 36,642,052.40
bond over loan recoverable consist of business loan, corporate loan and mortgage loan)
Securitisation Loans (Secured by lease and hire purchase assets and receivables) 614,209,530.85 27,408,614.99
Term Loans from Banks (Secured by specific charge on receivables created out of the proceeds
1,255,284,974.00 -
of the loan.)
Term Loan from Banks (Secured by paripassu floating charge on housing loan receivables,
96,527,778.00 -
credit and current assets)
Term Loan (Secured by specific charge on vehicles) 1,697,055.00 2,564,824.37
Term Loans from NBFC (Secured by specific charge on receivables created out of the proceeds
1,677,524,497.00 -
of the loan.)
UNSECURED
Due to customers ( Fixed Deposits) 1,891,504,629.20 1,231,866,037.56
Subordinated Debt 8,039,448,000.00 7,059,586,000.00
Subordinated Debt - From Related Parties 212,000.00 84,145,000.00
Total 45,656,759,325.13 50,568,268,279.32

Notes on Accounts
8.2 Unpaid matured debentures and interest accrued thereon

`
Unpaid Matured Debentures 1,104,943,000.00 739,403,000.00
Interest accrued on Unpaid Matured Debentures 489,668,859.00 214,911,537.00
Total 1,594,611,859.00 954,314,537.00
9. SHORT TERM PROVISIONS

`
Provision for Non Performing Assets (Refer Note.9.1) 1,024,046,411.00 1,019,266,455.00
- As per NHB Prudential Norms 300,574.00 -
- General 1,750,399,356.00 1,657,351,330.00
Provision for Impairment Loss (Refer Note 9.1) 169,183,222.85 142,513,997.35
Provision for Income Tax (Net of Advance Tax and TDS) 567,505,289.39 1,750,996,525.78
Provision for Employee benefits
- Provision for Bonus 9,526,330.00 -
- Provision for Gratuity 2,837,461.00 -
Total 6,792,030,215.24 5,280,934,758.13
9.1 Movement of Provision for Standard and Non-Performing Assets and Impairment
`
Provision for Standard Assets
Standard Assets 271,572,418,107.70 237,079,353,975.31
Provision at the beginning of the year
- As per NHB Directions 2010 1,259,513.00 67,536.00
- General 1,657,351,330.00 572,422,861.00
- Gold Price Fluctuation Risk - -
Additional provision made / ( Reversed ) during the year
- As per NHB Directions 2010 16,373,930.00 1,191,977.00
- General 109,868,566.00 1,084,928,469.00
Subsidiaries acquired during the year (General) 35,077,112.00 -

Notes on Accounts
9.1 Movement of Provision for Standard and Non-Performing Assets and Impairment (Contd.)
`
Provision at the close of the year
- As per NHB Directions 2010 17,633,443.00 1,259,513.00
- General 1,802,297,008.00 1,657,351,330.00
5,099,174,054.00 2,368,904,270.00
Non-Performing Assets
Substandard Assets 4,973,373,854.00 6,668,310,565.00
Doubtful Assets 653,538,619.71 356,302,035.00
Total Non-Performing Assets 5,626,912,473.71 7,024,612,600.00
Provision for Non-Performing Assets

Provision at the beginning of the year 1,019,266,455.00 725,382,249.00
Additional provision made during the year - 293,884,206.00
Addition upon acquisition of subsidiary 4,779,956.00 -
Provision at the close of the year 1,024,046,411.00 1,019,266,455.00
Provision for impairment

Provision at the beginning of the year 142,513,997.35 111,171,429.83
Additional provision made / Reversed during the year 26,669,225.50 31,342,567.52
Provision at the close of the year 169,183,222.85 142,513,997.35

Notes on Accounts
10. FIXED ASSETS - 31st March 2017
`
Fixed Assets Gross Block Accumulated Depreciation Net Block
Accumulated
Depreciation/ Deductions/
Assets Depreciation
As at As at As at Amortisation adjustments Effect of As at As at As at
Additions Acquired on Disposals on Assets
April 1, 2016 March 31, 2017 April 1, 2016 Charge for the during the Translation March 31, 2017 March 31, 2017 March 31, 2016
Acquisition Acquired on
Period Period
Acquisition
a Tangible
Assets
Land 613,444,831.65 78,798,480.88 - 4,964,938.76 687,278,373.77 3,959,784.78 - - - 6,092,215.98 10,052,000.76 677,226,373.01 609,485,046.87
Buildings 702,246,518.31 71,074,942.00 - - 773,321,460.31 222,741,225.01 - 48,451,441.60 - 129,372.60 271,322,039.21 501,999,421.10 479,505,293.30
Furniture and
1,229,439,662.88 79,265,856.81 9,424,092.59 5,742,828.71 1,312,386,783.57 901,331,164.84 7,503,581.72 122,322,140.96 3,930,891.09 119,243.57 1,027,345,240.00 285,041,543.57 328,108,498.04
Fixtures
Plant and
1,895,371,794.40 163,072,369.39 4,777,021.43 4,565,525.46 2,058,655,659.76 1,184,213,653.00 3,358,908.35 242,768,552.49 3,284,034.31 993,823.53 1,428,050,903.06 630,604,756.70 711,158,141.40
Equipment
Computer 848,191,017.60 83,733,815.49 16,409,256.00 3,160,995.06 945,173,094.03 775,608,453.19 8,520,483.44 57,638,657.85 3,045,279.58 338,624.12 839,060,939.02 106,112,155.01 72,582,564.41
Motor Car 103,390,593.59 13,521,125.44 2,512,908.99 8,241,179.58 111,183,448.44 65,149,160.95 982,255.00 11,989,483.12 5,449,425.91 444,380.56 73,115,853.72 38,067,594.72 38,241,432.64
Wind Mill 180,598,860.00 - - - 180,598,860.00 155,144,325.07 - 2,106,062.00 - - 157,250,387.07 23,348,472.93 25,454,534.93
Total 5,572,683,278.43 489,466,590.01 33,123,279.01 26,675,467.57 6,068,597,679.88 3,308,147,766.84 20,365,228.51 485,276,338.02 15,709,630.89 8,117,660.36 3,806,197,362.84 2,262,400,317.03 2,264,535,511.59
Previous Year 5,340,705,779.09 272,551,747.24 85,952.00 40,660,199.90 5,572,683,278.43 2,754,056,559.13 20,830.00 568,712,613.59 17,485,403.00 2,843,167.12 3,308,147,766.84 2,264,535,511.59 2,586,649,219.96
Corporate Overview
b Intangible
Assets
Computer
99,812,307.53 61,970,207.61 32,179,643.00 - 193,962,158.14 48,048,148.60 11,949,791.00 33,932,651.70 - 112,572.84 94,043,164.14 99,918,994.00 51,764,158.93
software
Total 99,812,307.53 61,970,207.61 32,179,643.00 - 193,962,158.14 48,048,148.60 11,949,791.00 33,932,651.70 - 112,572.84 94,043,164.14 99,918,994.00 51,764,158.93
Previous Year 89,820,612.27 9,991,695.26 - - 99,812,307.53 29,902,042.78 - 17,890,176.56 - 255,929.26 48,048,148.60 51,764,158.93 59,918,569.50
Statutory Reports
c Capital Work
- - - - - - - - 99,783,210.00 107,155,498.40
In Progress
Total - - - - - - - - 99,783,210.00 107,155,498.40
Previous Year - - - - - - - - 107,155,498.40 63,317,949.00
d Intangible

assets under
Development
Computer
- - - - - - - - - -
Software
219
Total - - - - - - - - - -
Previous Year - - - - - - - - - 5,319,943.00

Notes on Accounts
11. NON – CURRENT INVESTMENTS

Non – Current Investments in Equity instruments, Government Securities and Debentures:-
`
TRADE INVESTMENTS
Unquoted:
1,970,000 Equity shares of ` 10/- each fully paid up (Previous year: 1,970,000 Equity

2,700,000 Equity shares of ` 10/- each fully paid up (Previous Year: 2,700,000
Equity shares of `10/- each fully paid up)
20,000 shares (Previous year: 20,000 shares) of Finance Houses Consortium Private
85,242.00 87,382.00
Limited
67 shares (Previous year: 67 shares) of Credit Information Bureau of SL (CRIB) 130,701.13 133,982.38
(II) INVESTMENTS IN DEBENTURES

Quoted:
Yes Bank Limited 50,000,000.00 -
50, 9.50% Unsecured Perpetual Subordinated Bond of ` 1,000,000/- each fully paid
up (Previous year : Nil)
Unquoted:
Belstar Investment & Finance Private Limited - 100,000,000.00
(Previous year: 100 , 15% Unsecured Subordinated Redeemable Non-convertible
Debentures of ` 1,000,000/- each fully paid up. As at 31.03.2016 BIFPL was not a
subsidiary)
OTHER INVESTMENTS
Quoted:
Union Bank of India 49,940.00 49,940.00
454 Equity shares of ` 10/- each fully paid up
(Previous year: 454 Equity shares of ` 10/- each fully paid up)

Notes on Accounts
11. NON – CURRENT INVESTMENTS (CONTD.)

`
(II) INVESTMENTS IN GOVERNMENT SECURITIES
Quoted:
Gujarat State Development Loan 15,408,625.00 -
50,000, 8.89% bonds of ` 100 each and 100,000, 8.94% bonds of ` 100
each (Previous year : Nil)
Kerala State Development Loan 20,687,550.00 -

100,000, 9.03% bonds of ` 100 each and 100,000, 9.72% bonds of ` 100 each
(Previous year : Nil)
Karnataka State Development Loan 5,200,250.00 -

50,000, 8.90% bonds of ` 100 each (Previous year : Nil)
Tamilnadu State Development Loan 10,429,686.00 -

Punjab State Development Loan 10,381,500.00 -

Total Non-Current Investments 159,073,494.13 146,971,304.38
Investments - Category wise
Aggregate Amount of Quoted Investments 112,157,551.00 49,940.00

Aggregate Market Value of Quoted Investments 65,617,297.80 59,383.20
Aggregate Amount of Unquoted Investments 46,915,943.13 146,921,364.38

Notes on Accounts
12. DEFERRED TAX ASSET / (LIABILITY)

As per the requirement of the Accounting Standard 22, the Company has created a deferred tax asset provision, which
consist of the following :-
`
Deferred Tax Asset/(Liability)
Particulars At the beginning of Credits/(Charge) At the close of the
the Period during the period period
Deferred Tax Asset:
Timing Difference on account of :
Depreciation and Amortization 165,909,561.74 39,589,942.98 205,499,504.72
Provisions 346,303,194.90 - 346,303,194.90
Special Reserve as per Section 36 (i)(viii) of the Income Tax Act, 1961 - (4,708,990.00) (4,708,990.00)
Lease rental receivable (811,954.42) 11,537,830.40 10,725,875.98
Gratuity provision 1,511,518.54 729,061.89 2,240,580.43
Carried forward tax losses 39,761,160.58 (19,999,742.56) 19,761,418.02
Specific Provisions for doubtful debts 10,914,744.93 40,640,299.19 51,555,044.13
Interest disallowable U/S 43B of the Income Tax Act, 1961 - 3,770,257.00 3,770,257.00
Net Deferred Tax Asset 563,588,226.27 71,558,658.90 635,146,885.17
The Company has not recognized any deferred tax asset on provision for standard assets as the Company is of the opinion that
such provision does not give rise to a timing difference which has a reasonable certainty of its reversal in future.
13. LONG TERM LOANS AND ADVANCES

`
As at As at
Particulars
Loan Assets
Secured, Considered good 785,422,963.82 244,550,188.75
Secured, Doubtful 138,884,443.54 7,797,986.09
Unsecured, considered good 1,403,010,579.00 502,054,366.29
Unsecured, Doubtful - 38,014,410.13
Lease Rentals Receivable and Hire Purchase
Secured considered good 285,949,777.31 221,262,419.20
Housing Loans
Standard Loans 4,333,217,323.00 306,815,085.00
a. Capital Advances 79,043,827.00 63,625,810.10
b. Security Deposits 890,810,007.68 944,979,511.68
c. Others 394,687,420.83 22,277,647.68
Total 8,365,977,780.75 2,389,133,231.25
Security Deposit includes ` 1,770,000.00 (Previous Year: ` 1,770,000.00) being rent deposit due by Promoter Directors of the
Company and ` 1,470,000.00 (Previous Year: ` 1,470,000.00) being rent deposits due by firms in which Promoter Directors of
the Company are partners.

Notes on Accounts
14. CURRENT INVESTMENTS

`
(i) Investments in Equity Instruments
Quoted:
702 shares (Previous year: 84,786 shares) of Commercial Bank of Ceylon PLC 39,015.69 4,499,379.13
50 shares (Previous year: 50 shares) of Chilaw Finance PLC 451.78 367.00
50 shares (Previous year: 50 shares) of Abans Finance PLC 513.58 834.50
666 shares (Previous year: 50 shares) of Alliance Finance Company PLC 15,612.07 16,165.67
50 shares (Previous year: 50 shares) of Associated Motor Finance Company PLC 9,800.70 8,594.02
50 shares (Previous year: 50 shares) of Arpico Finance Company PLC 3,522.63 3,932.19
100 shares (Previous year: 100 shares) of Bimputh Finance PLC 2,527.43 2,721.95
50 shares (Previous year: 50 shares) of Capital Alliance Finance PLC 213.11 220.64
50 shares (Previous year: 50 shares) of Citizens Development Business Finance PLC 1,368.13 1,638.41
103 shares (Previous year: 50 shares) of Central Finance Company PLC 3,784.32 4,587.56
50 shares (Previous year: 50 shares) of Central Investments and Finance PLC 14.92 10.92
50 shares (Previous year: 50 shares) of Commercial Leasing & Finance PLC 55.41 83.01
50 shares (Previous year: 50 shares) of Commercial Credit & Finance PLC 843.90 928.43
50 shares (Previous year: 50 shares) of Softlogic Finance PLC 660.63 836.68
50 shares (Previous year: 50 shares) of Nation Lanka Finance PLC 21.31 21.85
50 shares (Previous year: 50 shares) of George Steuart Finance PLC 618.00 406.33
100 shares (Previous year: 100 shares) of LB Finance PLC 5,046.33 4,635.62
50 shares (Previous year: 50 shares) of Lanka Orix Leasing Company PLC 46.88 61.17
50 shares (Previous year: 50 shares) of Merchant Bank Of Sri Lanka & Finance PLC 230.15 222.82
50 shares (Previous year: 50 shares) of Multi Finance PLC 294.08 249.04
50 shares (Previous year: 50 shares) of Peoples Leasing Company PLC 332.44 349.53
50 shares (Previous year: 50 shares) of People's Merchant Finance PLC 296.22 262.15
50 shares (Previous year: 50 shares) of Singer Finance Lanka PLC 364.41 395.40
50 shares (Previous year: 50 shares) of Sinhaputhra Finance PLC 245.07 364.82
50 shares (Previous year: 50 shares) of Swarnamahal Financial PLC 15.34 24.03
50 shares (Previous year: 50 shares) of The Finance Company PLC 100.16 174.77
50 shares (Previous year: 50 shares) of Vallibel Finance PLC 1,246.66 1,173.10
Nil shares (Previous year: 116,400 shares) of Asia Capital PLC - 294,966.68
Nil shares (Previous year: 88,609 shares) of Overseas Realty (Ceylon) PLC - 905,911.48
Nil shares (Previous year: 40,000 shares) of National Development Bank PLC - 2,950,016.32
Nil shares (Previous year: 60,000 shares) of Sampath Bank PLC - 6,079,820.23
Nil shares (Previous year: 43,715 shares) of John Kheels Holding PLC - 3,230,547.49
Nil shares (Previous year: 216,111 shares) of Lanka IOC PLC - 3,068,684.13

Notes on Accounts
14. CURRENT INVESTMENTS (CONTD.)

`
(ii) Investments in Debentures
Quoted:
499,990 Debentures (Previous year: Nil) of Citizen Development Business Finance
21,310,500.00 -
PLC
Unquoted:
Debentures - 3,852,379.65
(iii) Investments in Mutual Funds

Quoted:
Investments in UTI Mutual Fund - 175,254,245.18
(Previous Year: UTI-Liquid Fund -Cash Plan -Institutional - Direct Plan - Growth
71,039.393 units)
HDFC Liquid Fund -Regular Plan-Dividend Daily Reinvest 294274.757 units

300,107,282.00 -
(Previous Year-Nil)
Kotak Liquid Fund-Regular Plan-Daily Dividend-81794.3341 units (Previous Year -
100,018,929.00 -
Nil)
ICICI Prudential Money Market Fund-Daily Dividend 1997791.844 units (Previous
200,037,898.00 -
Year-Nil)
(iv) Investment in Reverse Repurchase Agreements against Treasury Bills and Bonds 184,691,134.12 143,684,960.28
Total 806,252,984.47 343,870,172.18
15. TRADE RECEIVABLES

`
Trade receivables outstanding for a period less than six months from the date they are
due for payment
Interest Receivable on Loan Assets 12,568,973,736.00 9,489,434,454.04
Interest Receivable on Loan Assets - 293,913.00
Receivables from Money Transfer business 117,117,995.00 158,804,030.03
Receivables from Auction Proceeds - 5,012,609,250.00
Commission receivable from Insurance Companies 21,973,197.96 -
Other 41,294,926.23 6,535,661.10
Sub-Total 12,752,653,109.19 14,669,057,978.17

Notes on Accounts
15. TRADE RECEIVABLES (CONTD.)

`
Trade receivables outstanding for a period exceeding six months from the date they
are due for payment
Sub-Total 16,660,273.50 10,124,469.50
Grand Total 12,769,313,382.69 14,679,182,447.67
16. CASH AND BANK BALANCES

`
I. Cash and Cash Equivalents
a. Cash on hand 1,647,760,156.30 1,479,953,312.24
b. Balances with banks
Current Accounts 11,893,876,298.61 5,523,120,283.28
Fixed Deposits (maturing within a period of 3 months ) 207,474,947.04 110,333,503.83
II. Other Bank Balances
Fixed Deposits on which lien is marked 1,349,818.48 1,225,927.47
Other Deposit Balances (Ear-marked) 249,085,000.00 -
Balance in other Escrow Accounts
Interim Dividend 2,396,853,294.00 -
Unpaid Dividend Account 3,256,463.44 4,513,503.77
Unclaimed Interest and redemption proceeds of Non Convertible debentures-
31,739,108.25 4,183,271.25
Public Issue
Fixed Deposits given as Security for borrowings 11,767,537.00 11,582,038.00
Fixed Deposits given as Security for Guarantees 5,593,750.00 5,143,750.00
Total 16,448,756,373.12 7,140,055,589.84
17. SHORT TERM LOANS AND ADVANCES

`
Loan Assets
Secured, Considered good 268,825,760,394.94 236,894,665,108.01
Secured, Doubtful 5,521,246,330.94 7,032,507,909.13
Unsecured, considered good 178,740,683.70 1,167,955,522.47
Unsecured, Doubtful 185,309,314.71 71,760,153.55
Lease Rentals Receivable and Hire Purchase
Secured considered good 256,101,424.52 482,947,835.15

Notes on Accounts
17. SHORT TERM LOANS AND ADVANCES (CONTD.)

`
Housing Loans
Standard Loans 75,143,450.00 8,063,220.00
Micro Finance Loans
Short term maturities of receivables under financing activities 4,264,750,194.00 -
Prepaid Expenses 43,214,305.00 42,613,905.00
Service tax Pre-Deposit 10,337,262.63 8,329,590.00
Others 501,847,394.77 406,862,844.10
Unsecured, Considered doubtful 145,910.00 -
Total 279,923,226,507.71 246,198,115,404.81
18. OTHER CURRENT ASSETS

`
Interest receivable on Bank and Other Deposits 48,093,837.66 732,805.00
Stock of Gold 6,101,253.00 6,101,253.00
Real Estate Inventories - 15,059,621.41
Prepaid Expenses 1,020,498.00 394,315.00
Service Income Receivable - 2,508,000.00
Others 4,859,668.56 2,583,745.00
Total 60,075,257.22 27,379,739.41
19. REVENUE FROM OPERATIONS

`
Particulars
Interest Income on Retail and Other Loans 57,782,357,361.66 48,566,072,475.44
Income from Windmill 19,953,527.50 11,443,093.50
Interest on Housing loans 151,362,753.00 915,566.31
Commission Income 107,940,836.93 -
Other Operating Income 1,046,392,881.45 621,409,032.06
Total 59,108,007,360.54 49,199,840,167.31

Notes on Accounts
20. OTHER INCOME

`
Particulars
Interest Income- Others 205,088,946.58 145,663,570.96
Interest on Income tax Refund - 516,320.00
Other non-operating income 34,135,965.43 47,160,512.56
Total 275,902,209.32 207,765,907.66
21. EMPLOYEE BENEFITS EXPENSE

`
Particulars
Salaries and incentives 7,019,194,071.25 5,882,676,556.24
Contribution to Provident and Other Funds 476,497,415.63 439,534,752.96
Expenses on Employees Stock Option Plan ( Refer Note.26 c ) 36,194,255.00 115,299,604.00
Staff welfare expenses 110,429,446.36 100,727,092.80
Total 7,642,315,188.24 6,538,238,006.00
22. FINANCE COSTS

`
Particulars
Interest Expenses 23,382,526,060.26 22,697,602,790.15
Other Borrowing Costs 305,873,903.56 158,622,311.73
Total 23,688,399,963.82 22,856,225,101.88

Notes on Accounts
23. OTHER EXPENSES

`
Particulars
Postage, Telegram and Telephone 385,671,469.93 384,236,338.72
Printing and Stationery 140,774,910.80 148,345,654.35
Rent Paid 1,834,284,171.08 1,721,643,954.63
Travelling and Conveyance 215,582,114.62 191,382,838.03
Bank Charges 51,479,359.48 19,998,975.67
Electricity Charges 268,551,677.61 250,410,119.90
Repairs and Maintenance -Buildings 104,212,588.51 86,574,920.45
Repairs and Maintenance -Plant & Machinery 188,662,052.39 129,293,918.45
Repairs and Maintenance -Others 52,609,563.72 2,724,573.27
ATM Service Charges 47,105,974.05 76,397,616.52
Water Charges 6,201,776.09 5,484,671.97
Rates & Taxes and License Fee 81,324,435.99 68,763,387.18
Legal & Professional Charges 155,512,349.93 103,876,650.03
Insurance Charges 64,251,081.98 62,359,901.32
Newspaper and Periodicals 214,292.41 4,026,350.18
Business Promotion Expenses 213,504,134.44 159,644,885.80
Advertisement 534,138,076.39 628,830,884.15
Vehicle Hire & Maintenance 17,049,057.88 13,587,641.38
Internal Audit and Inspection Expenses 85,889,431.65 82,390,096.02
Remuneration to Auditors (Refer Note.23.1) 3,464,000.00 2,980,270.83
Directors' Sitting Fee 1,075,050.00 380,000.00
Commission to Non-Executive Directors 3,500,000.00 3,000,000.00
Loss on Sale of Fixed Assets 2,234,273.11 106,712.06
Loss on Sale of Securities - 3,744,927.16
C S R Expenses (Refer Note.27) 151,767,000.00 146,187,500.00
Miscellaneous Expenses 14,590,645.10 3,959,522.13
Total 4,623,649,487.16 4,300,332,310.20
23.1 Auditors’ Remuneration (including Service Tax)

`
Particulars
Statutory Audit 2,225,000.00 1,948,885.41
Tax Audit 585,000.00 345,885.42
Other Services 654,000.00 685,500.00
Total 3,464,000.00 2,980,270.83

Notes on Accounts
24. PROVISIONS AND WRITE OFFS

`
Particulars
Provision For Non-Performing Assets - 293,884,206.00
Provision For Standard Assets (Refer Note.9.1)
- As per NHB Directions 2010 16,373,930.00 99,331.42
- General 109,868,566.00 1,084,928,469.00
Provision For Impairment 103,268,318.83 39,559,050.10
Bad Debts Written Off 165,435,823.75 107,195,186.50
Total 2,966,497,773.58 1,664,049,832.02
25. LEASES Lease rentals received for assets let out on operating
All operating lease agreements entered into by the lease ` 1,383,956.52 (Previous year: ` 1,011,051.00)
Group are cancellable in nature. Hence Group has are recognized as income in the Statement of Profit and
debited/credited the lease rent paid/received to the Loss under the head ‘Other Income’ and lease rental
Statement of Profit and Loss. Consequently, disclosure payments for assets taken on an operating lease
requirement of future minimum lease payments in ` 1,834,284,171.08 (Previous year: ` 1,721,643,954.63)
respect of non-cancellable operating lease as per AS 19 are recognized as ‘Rent Paid’ in the Statement of Profit
is not applicable to the Group. and Loss.
26. EMPLOYEE BENEFITS

a) Defined Contribution Plan
During the year, the Group has recognized the contribution to Provident Fund, in the Statement of Profit and Loss in
Note.21- Employee Benefit Expenses as under:-
`
Particulars
Contribution to Provident Fund 257,948,016.00 246,920,555.17
Total 257,948,016.00 246,920,555.17

Within India
Gratuity Plan
Eligible employees of the Group are covered under a Gratuity plan. The scheme is funded with Insurance companies
except in case of MHIL.
The following table provides disclosures with respect to Gratuity Plan as required under Accounting Standard 15
“Employee Benefits”.

Notes on Accounts

Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets:-
`
A) Reconciliation of opening and closing balance of defined benefit obligation
Present value of Defined benefit obligation at the beginning of the year 604,682,015.00 496,663,797.00
Defined benefit obligation acquired on acquisition 6,224,490.00 -
Interest Cost 45,175,432.60 38,739,776.00
Current Service Cost 131,744,399.64 113,560,573.00
Benefits paid (37,816,450.00) (33,303,027.00)
Actuarial (gain)/loss 22,191,543.35 (10,979,104.00)
Present value of Defined benefit obligation at the end of the year 772,201,430.59 604,682,015.00
B) Reconciliation of opening and closing balance of fair value of Plan Assets
Fair value of plan assets at the beginning of the year 602,215,964.00 489,155,052.00
Plan Assets acquired on acquisition 6,112,880.00 -
Expected rate of return on plan assets 44,085,410.20 38,770,045.00
Contributions 124,649,067.00 109,308,745.00
Benefits paid (37,816,450.00) (33,303,027.00)
Actuarial gains/(losses) on plan assets 24,468,002.73 (1,714,851.00)
Fair value of plan assets at the end of the year 763,714,873.93 602,215,964.00
C) Expenses recognised in the Statement of Profit and Loss
Current service cost 131,744,399.64 113,560,573.00
Interest Cost 45,175,432.60 38,739,776.00
Expected rate of return on plan assets (44,085,410.20) (38,760,709.00)
Past Service Cost - 9,336.00
Actuarial gains/(losses) (2,276,459.38) (9,264,253.00)
Employer Expense 130,557,962.66 104,284,723.00
D) Investment details
Insurer managed funds 756,248,978.96 602,215,964.00
E) Experience adjustment
On Plan Liability (Gain)/Losses (9,658,313.09) (23,928,570.00)
On Plan Assets (Losses)/Gain 22,267,408.09 (5,194,215.00)
F) Actuarial assumptions
Discount rate 6.8% p.a - 7.4% p.a 7.4% p.a
Salary Escalation 6% p.a - 7% p.a 7% p.a
Rate of return on plan assets 7.4% p.a. - 15% p.a. 7.8% p.a. - 15% p.a.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors including supply and demand in the employment market. Discount rate is based on the prevailing market
yields of the Government Bond as at Balance Sheet date for the estimated term of obligation.
Estimated employer contribution for 2017-18 - ` 130,303,356.00

Notes on Accounts

`
Defined benefit obligation 772,201,430.59 604,682,015.00
Plan Assets 763,714,873.93 602,215,964.00
Surplus / (Deficit) (8,486,556.66) (2,466,051.00)
Experience adjustments on Plan Liabilities - (Gains) / Losses (9,658,313.09) (23,928,570.00)
Experience adjustments on Plan Assets - (Losses) / Gains 22,267,408.09 (5,194,215.00)
Outside India
Retirement Benefit Liability
The Gratuity plan obligation in respect of foreign subsidiary has been arrived at each year on the basis of an actuarial valuation
report. Accordingly the net change in obligation is charged/ reversed in the Statement of Profit and Loss during the year. The
liabililty is not funded.
`
Retirement Benefit Obligations - Gratuity As at 31st March 2017 As at 31st March 2016
Balance at the beginning of the period 5,360,050.33 4,768,434.74
Adjustment to the Opening Balance due to exchange variation (273,845.83) (231,464.31)
Payments made during the period (266,860.13) (175,856.27)
Amount Charged/(Reversed) for the period 3,182,729.20 998,936.17
Balance at the end of the period 8,002,073.57 5,360,050.33
`
Expenses on Defined Benefit Plan
Current Service Cost for the Year 1,504,282.58 911,083.61
Interest Cost for the Year 724,429.17 453,697.05
Actuarial Loss for the Year (954,017.45) (365,844.49)
1,274,694.29 998,936.17
Actuarial assumptions :-
The principal assumptions used are as follows:-
`
Discount Rate 13% p.a. 13% p.a.
Salary Increment Rate 12% p.a. 10% p.a.
Staff Turnover 15% p.a 15% p.a
Retirement age 55 Years 55 Years
A 1967/70 Mortality A 1967/70 Mortality
Mortality Table (Institute of Table (Institute of
Actuaries London) Actuaries London)

Notes on Accounts
232
c) Employee stock option

Pursuant to approval by the shareholders at their meeting held on September 27, 2013, the Company has established “Muthoot ESOP 2013” scheme
administered by the ESOP Committee of Board of Directors. The following options were granted as on 31st March, 2017 :-
Particulars
Date of Grant 09.11.2013 09.11.2013 09.11.2013 08.07.2014 08.07.2014 08.07.2014 06.03.2015 27.06.2016 27.06.2016 27.06.2016

Date of Board
09.11.2013 09.11.2013 09.11.2013 08.07.2014 08.07.2014 08.07.2014 06.03.2015 27.06.2016 27.06.2016 27.06.2016
approval
Method of
Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled
settlement
Number of
One option - One option - One option - One option - One option - One option - One option - One option - One option - One option -
equity shares
One share One share One share One share One share One share One share One share One share One share
for an option
Number
of options 3,711,200 1,706,700 1,571,075 456,000 380,900 6,100 325,000 390,400 728,300 8,150
granted
Exercise price ` 50 ` 50 ` 10 ` 50 ` 50 ` 10 ` 50 ` 50 ` 50 ` 10
Vesting period 1-5 years 2-6 years 1-2 years 1-5 years 2-6 years 1-2 years 1-5 years 1-5 years 2-6 years 1-2 years
In a graded In a graded manner over a In a graded In a graded manner over a In a graded In a graded In a graded manner over a
manner over a manner over a 2 year period manner over a manner over a 2 year period manner over a manner over a manner over a 2 year period
5 year period 6 year period with 50% 5 year period 6 year period with 50% 5 year period 5 year period 6 year period with 50%
with 10%, with 10%, vesting at with 10%, with 10%, vesting at with 10%, with 10%, with 10%, vesting at
15%, 20%, 15%, 20%, the end of 12 15%, 20%, 15%, 20%, the end of 12 15%, 20%, 15%, 20%, 15%, 20%, the end of 12
25% and 25% and months from 25% and 25% and months from 25% and 25% and 25% and months from
Manner of 30% of the 30% of the the date of 30% of the 30% of the the date of 30% of the 30% of the 30% of the the date of
vesting grants vesting grants vesting grant and the grants vesting grants vesting grant and the grants vesting grants vesting grants vesting grant and the
in each year in each year remaining 50% in each year in each year remaining 50% in each year in each year in each year remaining 50%
commencing commencing of the grants commencing commencing of the grants commencing commencing commencing of the grants
from the end from the end vesting at from the end from the end vesting at from the end from the end from the end vesting at
of 12 months of 24 months the end of 24 of 12 months of 24 months the end of 24 of 12 months of 12 months of 24 months the end of 24
from the date from the date months from from the date from the date months from from the date from the date from the date months from
of grant of grant the date of of grant of grant the date of of grant of grant of grant the date of
grant grant grant
Notes on Accounts
Movement in the options granted under ESOP is as follows :-

Total
Options
outstanding at
1,880,500 821,430 80,666 345,630 236,800 2,262 292,500 - - - 3,659,788
the beginning of
the year
Options granted
- - - - - - - 390,400 728,300 8,150 1,126,850
during the year
Options exercised
321,115 47,940 34,295 45,655 4,600 2,012 17,600 - - - 473,217
during the year
Options lapsed
656,595 487,285 17,147 68,625 123,690 50 - 39,700 82,100 325 1,475,517
during the year
Options
outstanding at
902,790 286,205 29,224 231,350 108,510 200 274,900 350,700 646,200 7,825 2,837,904
the end of the
year
Options
62,990 25,450 29,224 4,100 7,170 200 31,150 - - - 160,284
exercisable
Corporate Overview

Total
Options
outstanding at
2,844,390 1,235,700 783,817 415,200 291,592 5,350 325,000 - - - 5,901,049
the beginning of
the year
Statutory Reports
Options granted
- - - - - - - - - - -
during the year
Options exercised
295,040 38,440 630,665 35,400 1,392 2,476 32,500 - - - 1,035,913
during the year
Options lapsed
668,850 375,830 72,486 34,170 53,400 612 - - - - 1,205,348
during the year

Options
outstanding at
1,880,500 821,430 80,666 345,630 236,800 2,262 292,500 - - - 3,659,788
the end of the
year
233
Options
66,035 23,590 69,194 4,080 - 50 - - - - 162,949
exercisable
Notes on Accounts
234
The Company has used Intrinsic value method for accounting of Employee Stock Compensation costs. Intrinsic Value is the amount by which, the quoted closing
market price of the underlying shares as on the date of grant exceeds the exercise price of the option.
The fair value of options based on valuation of independent valuer using Black-Scholes Method as of the respective date of grant are given below :-
Particulars

` 68.75 ` 70.21 ` 102.01 ` 131.77 ` 130.56 ` 166.69 ` 165.61 ` 226.42 ` 223.87 ` 262.48
(9th Nov, 2014) (9th Nov, 2015) (9th Nov, 2014) (8th July, 2015) (8th July, 2016) (8th July, 2015) (6th Mar, 2016) (27th June, 2017) (27th June, 2018) (27th June, 2017)
` 70.21 ` 71.13 ` 98.64 ` 130.56 ` 129.33 ` 161.77 ` 163.16 ` 223.87 ` 221.34 ` 257.37
Fair value per option
(9th Nov, 2015) (9th Nov, 2016) (9th Nov,2015) (8th July, 2016) (8th July, 2017) (8th July, 2016) (6th Mar, 2017) (27th June, 2018) (27th June, 2019) (27th June, 2018)
tranche on grant
` 71.13 ` 71.52 ` 129.33 ` 127.91 ` 160.66 ` 221.34 ` 218.80
date (corresponding
(9th Nov, 2016) (9th Nov, 2017) (8th July, 2017) (8th July, 2018) (6th Mar, 2018) (27th June, 2019) (27th June, 2020)
vesting date shown in
` 71.52 ` 71.47 ` 127.91 ` 126.26 ` 158.13 ` 218.80 ` 216.20
bracket)
` 71.47 ` 71.11 ` 126.26 ` 124.39 ` 155.57 ` 216.20 ` 213.54
The significant assumptions made for calculation of fair value are as follows :-
Particulars
8.4% - 8.8% 8.4%-8.95% 8.4% -8.45% 8.26% - 8.24% - 8.32% - 7.45% - 6.91% - 7.08% - 6.91% -
Risk free interest rate
p.a. p.a. p.a. 8.35% p.a. 8.32% p.a. 8.35% p.a. 7.60 % p.a. 7.41% p.a. 7.47% p.a. 7.08% p.a.
Expected average life of
1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years 1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years 1.5 – 5.5 years 1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years
option
Expected Volatility 0.5768 0.5768 0.5768 0.5396 0.5396 0.5396 0.3450 0.3698 0.3698 0.3698
Expected Dividend
3.84 % p.a. 3.84 % p.a. 3.84 % p.a. 3.26% p.a. 3.26% p.a. 3.26% p.a. 2.74% p.a. 2.14% p.a. 2.14% p.a. 2.14% p.a.
Yield
Notes on Accounts
The Company has used Intrinsic value method for accounting of Employees Stock Compensation costs.
`
As at As at
Particulars
Employee Stock Option Liability
Opening Total Employee Stock Option Liability 325,179,165.50 506,390,012.40
Increase in Liability on account of fresh ESOP grants 259,895,890.25 -
Reduction in Liability on account of Exercise on vesting (38,592,473.10) (98,349,459.90)
Reduction in Liability on account of lapse of grants (68,127,764.70) (82,861,387.00)
Closing Total Employee Stock Option Liability 478,354,817.95 325,179,165.50
Employee Stock Option Compensation Expenses

Opening Deferred Stock Option Compensation Expenses 101,509,319.10 299,670,310.10
Increase in ESOP Compensation Expenses on account of fresh ESOP grants 259,895,890.25 -
Compensation Expenses amortised during the year (36,194,255.00) (115,299,604.00)
Reduction in Compensation Expenses on account of lapse of grants (68,127,764.70) (82,861,387.00)
Closing Deferred Stock Option Compensation Expenses 257,083,189.65 101,509,319.10
Employee Stock Option Reserve

Employee Stock Option Liability 478,354,817.95 325,179,165.50
Less: Deferred Employee Stock Option Compensation Expenses 257,083,189.65 101,509,319.10
Employee Stock Option Reserve 221,271,628.30 223,669,846.40
Had the Company adopted Fair value method in respect of Options granted instead of Intrinsic value method, the impact in the
financial statements for the year would be :-
`
Particulars
Decrease in employee compensation costs 5,590,268 22,098,908.00
Increase in profit after tax 5,590,268 22,098,908.00
Increase in Basic EPS ( ` per share) 0.01 0.06
Increase in Diluted EPS ( ` per share) 0.01 0.05

Notes on Accounts
27. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Group has undertaken CSR activities in accordance with Schedule VII to the Companies Act, 2013. Group has spent
` 151,767,000.00 (Previous Year: ` 146,187,500.00 ) towards various activities as below:-
`
CSR Activity
Promoting Education 71,176,933.00 81,442,195.00
Medical Aid 61,545,575.00 52,324,261.00
Others 19,044,492.00 12,421,044.00
Total 151,767,000.00 146,187,500.00
FOR):-
`
As at As at
Particulars
(i) Contingent Liabilities
(a) Claims against the company not acknowledged as debt

(i) Service Tax demand for the period 2003-2008, pending in appeal with CESTAT,
49,921,307.00 49,921,307.00
Bangalore (Net of amount already remitted).
Commissioner of Central Excise, Customs and Service Tax, Kochi has raised a demand
of ` 52,007,698.00 (Previous year: ` 52,007,698.00) as Service tax liability and penalty.
During the course of the proceedings, Company paid ` 2,086,391.00. The Appellate
Authority admitted the appeal preferred by the company and granted stay of recovery,
on predeposit of ` 8,300,000.00 (Previous year: ` 8,300,000.00). Pending disposal of
appeal, no provision has been made by the company during the year.
(ii) Service Tax demand for the period from 2007-08 to 2011-12 as per Order No.COC-
EXCUS-000-COM-035-14-15 DT.19.12.2014, served on 30.12.2014, pending in appeal 4,895,883,216.00 4,895,883,216.00
with CESTAT, Bangalore.
Commissioner of Central Excise, Customs and Service Tax, Kochi, as per order
mentioned above, has raised a demand of ` 1,531,458,734.00 as service tax payable
on securitisation transactions with banks for the period from 2007 to 2012, along
with interest U/s.75, Penalty U/s.76, Penalty U/s.77 and Penalty U/s.78 (Total liability
including tax, interest and penalty under various sections if confirmed is estimated
approximately at ` 4,895,883,216.00 till date of demand) . Pending disposal of appeal,
no provision has been made by the company during the year.

Notes on Accounts
FOR):- (CONTD.)
`
As at As at
Particulars
(iii) Service Tax demand for the financial year 2013-14 as per Order No.03/2015-ST
790,046.00 790,046.00
DT.20.01.2015, served on 23.01.2015, pending in appeal before CESTAT, Bangalore.
Deputy Commissioner of Central Excise & Customs, & Service Tax, Kochi, as per order
mentioned above, has raised a demand of ` 790,046.00 (including penalty U/s 77 (2)
and 78) as service tax payable, on foreign payments during financial year 2013-14.
Appeal filed before Commissioner (Appeals), Kochi rejected. Pending disposal of appeal
filed before CESTAT, Bangalore, no provision has been made by the company during the
year.
(iv) Service Tax demand for the period 2010-2011 to 2012-13 as per Order No.04-15-16
44,572,043.00 44,572,043.00
dated 11.05.2015, pending in appeal with CESTAT, Bangalore.
above has raised a demand of ` 26,000,802.00 along with penalty U/s 76 and 78, as
service tax payable, on money transfer commission received during financial years 2010-
11 to 2012-13. Total liability of tax and penalty if confirmed is estimated at
` 44,572,043.00. Pending disposal of the appeal, no provision has been made by the
company during the year.
v) Service Tax demand for the period 2008-09 to 2010-2011 as per Order No.32/2015
2,155,312.00 2,155,312.00
dated 30.04.2015 pending in appeal with CESTAT, Bangalore.
mentioned above has raised a demand of ` 2,155,312.00 (including penalty under
Rule 15 and Section 78) as service tax payable, stating that some CENVAT credit was
wrongly availed during the period 2008-09 to 2010-11. Appeal filed by the company
before Commissioner (Appeals), Kochi has been rejected. Pending disposal of appeal
filed before CESTAT, Bangalore against the above order, no provision has been made by
the company during the year.
vi) Service Tax demand relating to foreign payments for the period 2007-08 to 2012-2013
as per consolidated Order Nos.70 to 72/2016/ST dated 18.03.2016 pending in appeal 5,364,614.00 5,364,614.00
with Commissioner of Central Excise (Appeals), Kochi.
mentioned above has raised a demand of ` 5,364,614.00 including tax and penalty
relating to service tax on marketing expenses reimbursed abroad. Pending disposal of
the appeal, no provision has been made by the company during the year.

Notes on Accounts
FOR):- (CONTD.)
`
As at As at
Particulars
vii) Service Tax demand relating to money transfer commission received for the period
2013-14 as per Order No.85/2015-16/ST dated 18.02.2016 pending in Writ Petition 11,038,893.00 11,038,893.00
before the High Court of Kerala.
above has raised a demand of ` 11,038,893.00 including tax and penalty, by disposing
SCN.26/2015 relating to service tax on money transfer income for the period 2013-14.
Pending disposal of the Writ Petition, no provision has been made by the company
during the year.
viii) Service Tax demand relating to money transfer commission received for the period April
to September 2014 as per Order No.13/2017 ST dated 27.01.2017 pending in appeal 6,805,240.00 -
before the Commissioner (Appeals), Kochi.
The Additional Commissioner of Central Excise, Customs & Service Tax, Kochi, as per
order mentioned above has raised a demand of ` 6,182,037/- along with penalties
U/s.77(2) and U/s.76 and interest u/s.75 relating to service tax on money transfer
income for the period April to September 2014. Pending disposal of appeal before the
Commissioner(Appeals), Kochi, no provision has been made by the company during
the year.
ix) Income tax demand for the Assessment Year (A.Y) 2012-13, pending rectification
27,120,000.00 27,120,000.00
petition and in appeal with Commissioner of Income Tax (Appeals)-II, Kochi.
The demand outstanding as per Intimation U/s.143(1) was ` 5,099,103.00. Additional
Commissioner of Income Tax, Corp. Range -1, Kochi issued an Order U/s.143(3) dated
02.03.2015 superseding the earlier order by demanding tax of ` 29,230,000.00. Out
of the above, the company remitted ` 2,110,000.00 and the balance outstanding is
` 27,120,000.00. Appeal filed with CIT (A)-II, Kochi and rectification application with
Addl. CIT are pending for disposal. Pending disposal no provision has been made by the
company for the year.
x) Income Tax demand for Assessment Year 2010-11, pending in appeal with Income tax
14,563,505.00 14,563,505.00
Appellate Tribunal, Kochi.
Additional Commissioner of Income Tax, Range 1, Kochi has passed an order
demanding ` 36,384,640.00 towards income tax due for the Assessment Year 2010-
11 U/s.143(3).The Company has remitted ` 21,821,135.00 and the balance demand
outstanding as on 31.03.2017 is ` 14,563,505.00. CIT (A), Kochi has partly allowed
the appeal, but the rectification order is pending. Company has filed appeal with ITAT,
Kochi. Pending rectification order and appeal with ITAT, Kochi, no provision has been
made by the company during the year.
xi) Draft order on proposed action U/s.13 of Prevention of Money Laundering Act,2002
pending in appeal with Appellate Tribunal under Prevention of Money Laundering Act, 26,970,000.00 26,970,000.00
2002 .

Notes on Accounts
FOR):- (CONTD.)
`
As at As at
Particulars
xii) Disputed claims against the company under litigation not acknowledged as debts 88,799,925.00 53,749,585.00
xiii) Guarantees - Counter Guarantees Provided to Banks 228,693,750.00 199,943,750.00
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital account and not
450,000,000.00 44,452,000.00
provided for.
Loan commitments on account of partly disbursed loans 360,065,229.00 15,932,677.00
Uncalled liability on shares and other investments partly paid 5,455,500.00
Promissory notes provided to Banks and other parties. 500,000,000.00
29. DIVIDEND DISTRIBUTED TO EQUITY SHAREHOLDERS

a) Muthoot Finance Limited
The Board declared an interim dividend for the year 2016-17 of ` 6/- per equity share (60% of face value of share at
` 10/- each per equity share) at their meeting held on March 23, 2017.
b) Belstar Investment and Finance Private Limited

The Board of Directors have declared a final dividend of ` 0.45 per equity share for the financial year ended 31st
March, 2017. The payment is subject to approval of the shareholders in the ensuing Annual General Meeting of the
Company subsequent to which the same will be accounted.
30. EARNINGS PER SHARE

As per Accounting Standard 20, Earnings Per Share is calculated by dividing the net profit or loss for the year attributable
to equity shareholders by the weighted average number of equity shares outstanding during the year. The details of
calculation of the basic and diluted earnings per share are stated below:-
`
Particulars
Profit/(Loss) after tax for the year 11,997,852,814.69 8,145,003,723.73
Weighted average number of equity shares outstanding during the period - Basic EPS 399,152,518 398,057,351
Weighted average number of equity shares outstanding during the period - Diluted EPS 400,628,247 402,817,783
Face Value per share ` 10/- ` 10/-
Earnings Per Share (Basic) 30.06 20.46
Earnings Per Share (Diluted) 29.95 20.22

Notes on Accounts
31. DISCLOSURE WITH REGARD TO DUES TO MICRO AND SMALL ENTERPRISES

Based on the information available with the Group and has been relied upon by the auditors, none of the suppliers have
confirmed to be registered under “The Micro, Small and Medium Enterprises Development (‘MSMED’) Act, 2006”.
Accordingly, no disclosures relating to principal amounts unpaid as at the period ended 31st March, 2017 together with
interest paid /payable are required to be furnished.
32. ADDITIONAL INFORMATION PURSUANT TO PROVISIONS OF PART II OF SCHEDULE

III OF THE COMPANIES ACT, 2013
`
Particulars
a) CIF Value of Imports of Capital Goods Nil Nil
b) Expenditure in foreign currency on accrual basis
Professional Charges Nil 2,376,927.24
Others 1,299,772.00 981,407.00
33. UTILIZATION OF PROCEEDS OF PUBLIC ISSUE OF NON - CONVERTIBLE

DEBENTURES
The Company has during the year raised through public issue (a) ` 17,763,997,000.00 of Rated Secured Redeemable Non
- Convertible Debentures and (b) ` 553,761,000.00 of Rated Unsecured Redeemable Non-Convertible Debentures in the
nature of Subordinated Debt. As at 31.03.2017, the Company has utilised the entire proceeds of the public issue, net of
issue expenses in accordance with the objects stated in the offer documents.

Notes on Accounts
34. DISCLOSURE OF RELATED PARTY TRANSACTION IN ACCORDANCE WITH

ACCOUNTING STANDARD (AS18) “RELATED PARTY DISCLOSURES” ISSUED BY THE
INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.
(a) Names of Related Parties with whom transactions has taken place:-
Category Name of the Related Party

1. M. G. George Muthoot
2. George Thomas Muthoot
Key Management Personnel 3. George Jacob Muthoot
4. George Alexander Muthoot
5. Alexander M. George s/o M. G. George Muthoot
1. Sara George w/o M. G. George Muthoot
2. Susan Thomas w/o George Thomas Muthoot
3. Elizabeth Jacob w/o George Jacob Muthoot
4. Anna Alexander w/o George Alexander Muthoot
5. George M. George s/o M. G. George Muthoot
Relatives of Key Management Personnel 6. George M. Jacob s/o George Jacob Muthoot
7. Reshma Susan Jacob d/o George Jacob Muthoot
8. George Alexander (Jr.) s/o George Alexander Muthoot
9. Eapen Alexander s/o George Alexander Muthoot
10. Anna Thomas d/o George Thomas Muthoot
11. Valsa Kurien w/o George Kurien
1. Muthoot Vehicle & Assets Finance Limited
2. Muthoot Leisure And Hospitality Services Private Limited
3. MGM Muthoot Medical Centre Private Limited.
4. Muthoot Marketing Services Private Limited.
5. Muthoot Broadcasting Private Limited
6. Muthoot Forex Limited
7. Emgee Board and Paper Mills Private Limited
8. Muthoot Health Care Private Limited
9. Muthoot Precious Metals Corporation
10. GMG Associates
11. Muthoot Commodities Limited
Entities over which Key Management Personnel and their relatives are 12. Emgee Muthoot Benefit Funds (India) Limited
able to exercise significant influence 13. Geo Bros Muthoot Funds (India) Limited
14. Muthoot Investment Advisory Services Private Limited
15. Muthoot Securities Limited
16. Muthoot M George Permanent Fund Limited
17. Muthoot Housing & Infrastructure
18. Muthoot Properties & Investments
19. Venus Diagnostics Limited
20. Muthoot Systems & Technologies Private Limited
21. Muthoot Infotech Private Limited
22. Muthoot Anchor House Hotels Private Limited
23. Marari Beach Resorts Private Limited.
24. Muthoot M George Foundation

Notes on Accounts
242
b) Transactions with Related Parties during the year:-

Entities over which Key Management
Relatives of Key Management
Nature of transaction Key Management Personnel Personnel and their relatives are able
Personnel
to exercise significant influence

Purchase of Travel Tickets for Company Executives/Directors/
- - - - 4,520,513.00 5,421,694.00
Customers
Travel Arrangements for Company Executives/Customers - - - 956,423.00 8,603,884.00
Accommodation facilities for Company Executives/Clients/
- - - - 554,134.00 463,577.00
Customers
Complementary Medical Health Check Ups for Customers/
- - - - - 6,850.00
Employees
Brokerage paid for NCD Public Issue - - - - 5,542,009.00 6,496,832.00
Business Promotion Expenses - - - - 9,766,657.00 12,957,321.00
CSR Expenses - - - - 144,247,000.00 131,637,500.00
Foreign Currency purchased for travel - - - - 537,084.00 981,407.00
Interest paid on loans/subordinated debts 326,926,130.29 266,922,278.09 373,190,944.00 313,716,914.30 - -
Interest paid on Secured NCD 39,215.00 42,235.00 589,291.00 597,055.00 - 1,193,969.18
Interest paid on Secured NCD - Listed 183,005.00 298,517.00 1,426,967.81 1,565,508.00 14,104,132.78 8,526,719.03
Directors Remuneration 358,000,000.00 195,600,000.00 3,525,000.00 2,325,000.00 - -
Rent paid 3,888,150.00 3,519,000.00 793,500.00 690,000.00 4,998,246.00 4,481,615.00
Dividend paid - 1,500,406,656.00 - 881,976,320.00 - -
Interim Dividend declared 1,105,300,992.00 - 661,482,240.00 - - -
Rent received - - - - 1,264,470.00 410,000.00
Dividend received - - - - - 4,305,000.00
Commission received on Money Transfer business - - - - 79,539,644.00 61,549,908.00
Service Charges Collected - - - - 15,068,867.00 4,821,409.00
Purchase of Shares of Muthoot Insurance Brokers Private Ltd 120,000,000.00 - 80,000,000.00 - - -
Purchase of Securities - - - - 81,436,611.00 -
Loans accepted 1,853,550,901.92 3,482,494,302.26 537,981,603.63 2,170,944,489.88 - -
Loans repaid 2,319,287,709.00 2,977,756,167.44 852,717,767.53 1,106,879,451.58 - -
Subordinated debts repaid 64,645,000.00 162,135,566.00 19,500,000.00 47,100,000.00 - -
Notes on Accounts
b) Transactions with Related Parties during the year:- (Contd.)

Relatives of Key Management
Nature of transaction Key Management Personnel Personnel and their relatives are able
Personnel
to exercise significant influence
Purchase of Secured NCD - 385,000.00 - 230,000.00 - -
Redemption of Secured NCD - 385,000.00 228,000.00 230,000.00 - 20,000,000.00
Purchase of Secured NCD - Listed 30,000,000.00 - 230,643,000.00 - 321,138,000.00 -
Redemption of Secured NCD - Listed 1,050,000.00 - 9,033,000.00 - 203,476,000.00 40,279,000.00
Loans availed by the Company for which guarantee is provided
86,350,000,000.00 82,250,000,000.00 - - - -
by related parties
c) Net Amount Receivable / (Due) as at the year end : -

Particulars Key Management Personnel Relatives of Key Management Personnel Personnel and their relatives are able to
exercise significant influence
Corporate Overview
Investments in Equity Shares - - - - 46,700,000.00 46,700,000.00

Rent Deposit 1,770,000.00 1,770,000.00 300,000.00 300,000.00 1,470,000.00 1,470,000.00
Trade Receivables - - - - 72,813,489.33 69,560,540.91
Secured NCD (407,000.00) (407,000.00) (4,631,000.00) (4,859,000.00) - -
Secured NCD - Listed (30,000,000.00) (1,050,000.00) (231,893,000.00) (10,283,000.00) (253,890,000.00) (136,228,000.00)
Loans & Subordinated Debts (2,707,548,137.18) (3,237,929,944.26) (3,276,809,973.26) (3,611,046,137.16) - -
Statutory Reports
Security Deposit - - - - (40,000,000.00) (40,000,000.00)

Directors Remuneration Payable (160,000,000.00) - - - - -
Interest payable on Loan from Directors and
- - - (1,359,413.00) - -
Relatives
Interest payable on Secured NCD (16,213.00) (14,810.77) (56,562.00) (558,326.23) - -

Interest payable on Subordinated Debts - (476,756.00) - - - -
Interim Dividend Payable (1,105,300,992.00) - (661,482,240.00) -
Trade Payables (303,513.00) (263,923.00) (59,513.00) (51,749.00) (12,507,545.75) (17,227,900.22)
243
Notes on Accounts
excess of 10% of total related party transactions of the same type : -
`
Purchase of Travel Tickets for Company Executives/Directors/Customers
GMG Associates 4,520,513.00 5,421,694.00
Travel Arrangements for Company Executives/Customers
GMG Associates 956,423.00 8,603,884.00
Accommodation facilities for Company Executives/Clients/Customers
Muthoot Leisure & Hospitality Services Private Limited 159,731.00 234,830.00
Muthoot Anchor House Hotels Private Limited 204,807.00 76,921.00
Marari Beach Resorts Private Limited 189,596.00 151,826.00
Complementary Medical Health Check Ups for Customers/ Employees
Muthoot Health Care Private Limited - 6,850.00
Brokerage paid for NCD Public Issue
Business Promotion Expenses
CSR Expenses paid
Muthoot M George Foundation 144,247,000.00 131,637,500.00
Foreign currency purchased for travel
Interest paid on loan from Directors and relatives
Susan Thomas 87,632,332.00 77,487,405.81
Interest paid on subordinated debts
George Alexander Muthoot 809,302.00 3,374,081.27
Interest paid on Secured NCD
Valsa Kurien 550,125.00 550,125.00

Notes on Accounts
`
Interest paid on Secured NCD - Listed
Muthoot Precious Metals Corporation 3,755,255.55 502,308.09
Directors Remuneration
Rent paid
Muthoot Properties & Investments 1,983,756.00 1,725,000.00
Muthoot Housing & Infrastructure 1,904,400.00 1,656,000.00
Muthoot Vehicle And Asset Finance Limited 1,110,096.00 1,100,615.00
Dividend paid
M G George Muthoot - 379,081,056.00
George Alexander Muthoot - 355,715,200.00
George Jacob Muthoot - 355,715,200.00
George Thomas Muthoot - 355,715,200.00
Susan Thomas - 239,880,544.00
Interim Dividend declared
M G George Muthoot 279,309,792.00 -
George Jacob Muthoot 261,785,400.00
George Thomas Muthoot 261,785,400.00 -
Susan Thomas 179,910,408.00 -
Rent received
Muthoot Securities Limited 643,470.00 -

Notes on Accounts
`
Dividend Received
Muthoot Securities Limited - 1,350,000.00
Commission received on Money Transfer business
Service Charges Collected
Muthoot Precious Metals Corporation 1,515,201.00 1,535,846.00
Purchase of Shares of Muthoot Insurance Brokers Private Limited
Anna Alexander 40,000,000.00 -
Purchase of Securities
Loan from Directors and Relatives accepted
Loan from Directors and Relatives repaid
Subordinated debts repaid

Notes on Accounts
`
Purchase of Secured NCD
M G George Muthoot - 97,000.00
Alexander M George - 288,000.00
George M George - 230,000.00
Redemption of Secured NCD
George M George 228,000.00 230,000.00
Purchase of Secured NCD- Listed
Muthoot Securities Limited 147,981,000.00 -
George M Jacob 65,533,000.00 -
Redemption of Secured NCD - Listed
Muthoot Precious Metals Corporation 36,735,000.00
Loans availed by the Company for which guarantee is provided by related parties
(Jointly and Severally held)
M G George Muthoot 80,350,000,000.00 76,250,000,000.00
George Alexander Muthoot 86,350,000,000.00 82,250,000,000.00
George Jacob Muthoot 76,600,000,000.00 72,500,000,000.00
George Thomas Muthoot 76,600,000,000.00 72,500,000,000.00

Notes on Accounts
e) Net Amount Receivable / (Due) as at the year end : -

`
Investments in Equity Shares
Rent Deposit
Muthoot Properties & Investments 750,000.00 750,000.00
Muthoot Housing & Infrastructure 720,000.00 720,000.00
M G George Muthoot 355,000.00 355,000.00
George Jacob Muthoot 555,000.00 555,000.00
Sara George 100,000.00 100,000.00
Valsa Kurien 200,000.00 200,000.00
Trade Receivables
GMG Associates - 39,294.00
Muthoot Precious Metals Corporation - 84,501.00
Secured NCD
George M George (230,000.00) (458,000.00)
Valsa Kurien (4,401,000.00) (4,401,000.00)
Secured NCD - Listed
Muthoot Securities Limited (73,558,000.00) (79,493,000.00)
Muthoot Precious Metals Corporation - (36,735,000.00)
George M George (20,920,000.00) (3,790,000.00)
George M Jacob (65,533,000.00) (1,010,000.00)
Eapen Alexander (55,763,000.00) (3,576,000.00)
Loan from Directors and Relatives
M G George Muthoot (546,138,378.55) (697,396,297.13)
George Thomas Muthoot (660,217,538.47) (717,753,896.52)
George Jacob Muthoot (660,227,123.55) (728,695,707.13)
George Alexander Muthoot (654,548,259.44) (799,728,061.94)

Notes on Accounts

`
George M George (154,066,572.94) (178,839,180.94)
George M Jacob (359,168,284.38) (444,586,514.38)
Eapen Alexander (227,447,521.51) (274,036,844.88)
Sara George (426,536,170.57) (417,243,992.57)
Elizabeth Jacob (469,798,901.11) (459,273,412.11)
Susan Thomas (771,232,985.81) (867,213,076.81)
Anna Alexander (614,937,266.53) (600,390,421.53)
Valsa Kurien (36,395,079.76) (77,864,100.76)
Anna Thomas - (10,210,490.53)
Reshma Susan Jacob (323,012.25) (9,231,857.25)
Subordinated debts from Directors and Relatives
M G George Muthoot - (11,300,000.00)
George Thomas Muthoot - (16,300,000.00)
George Jacob Muthoot - (22,700,000.00)
George Alexander Muthoot (262,000.00) (13,407,000.00)
Alexander M George - (1,200,000.00)
George M George - (1,300,000.00)
George M Jacob - (1,199,999.00)
Sara George - (2,100,000.00)
Elizabeth Jacob - (2,200,001.00)
Susan Thomas - (2,200,000.00)
Anna Alexander - (2,500,000.00)
George M Alexander - (1,200,000.00)
Valsa Kurien - (6,800,000.00)
Security Deposit
Directors Remuneration Payable
Interest payable on Loan from Directors and Relatives
Anna Thomas - (783,260.00)

Notes on Accounts

`
Reshma Susan Jacob - (576,153.00)
Interest payable on Secured NCD
George M George (8,202.00) (8,201.23)
Valsa Kurien (48,360.00) (550,125.00)
Interest payable on Subordinated debts
George Alexander Muthoot - (476,756.00)
Interim Dividend Payable
Alexander M George (40,635,000.00) -
Susan Thomas (179,910,408.00) -
George M Jacob (90,300,000.00) -
Anna Alexander (89,610,408.00) -
Elizabeth Jacob (89,610,408.00) -
Sara George (81,116,016.00) -
Eapen Alexander (45,150,000.00) -
George Alexander (45,150,000.00) -
George M George (40,635,000.00) -
Trade Payables
Muthoot Properties & Investments (148,782.00) (129,375.00)
Muthoot Housing & Infrastructure (142,830.00) (124,200.00)
Muthoot Vehicle And Asset Finance Limited (84,525.00) (96,321.09)
GMG Associates - (391,682.13)
Muthoot Precious Metals Corporation (12,131,408.75) (16,486,322.00)
George Thomas Muthoot (74,390.00) (64,687.00)
George Jacob Muthoot (86,293.00) (75,037.00)
George Alexander Muthoot (80,342.00) (69,862.00)
Sara George (19,837.00) (17,249.00)
Valsa Kurien (39,676.00) (34,500.00)

Notes on Accounts
35. SEGMENT REPORTING

In the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, based on the operation, the Group
has identified primary business segments – Financing, Power Generation and Insurance broking and based on the geography of operation , the Group has
identified secondary segments - Within India and Outside India for the purpose of disclosure.
Primary Business Segment Information

Particulars Financing Power Generation Insurance Broking Consolidated Totals
Segment Revenue:
External Revenue 58,980,112,996.11 49,188,397,073.81 19,953,527.50 11,443,093.50 107,940,836.93 - 59,108,007,360.54 49,199,840,167.31
Inter segment
- - - - - - - -
Revenue
Total Revenue 58,980,112,996.11 49,188,397,073.81 19,953,527.50 11,443,093.50 107,940,836.93 - 59,108,007,360.54 49,199,840,167.31
Result:
Segment Result 19,670,648,566.01 13,325,730,697.76 12,777,585.50 5,988,634.36 87,187,036.97 - 19,770,613,188.48 13,331,719,332.12
Other Income - - - - - - - -
Corporate Overview
Unallocated corporate
- - - - - - 180,743,778.86 136,145,020.02
income
Unallocated corporate
- - - - - - (365,518,800.00) (201,270,000.00)
expenses
Profit Before Tax 19,670,648,566.01 13,325,730,697.76 12,777,585.50 5,988,634.36 87,187,036.97 - 19,585,838,167.34 13,266,594,352.14
Less: Provision
for Current Tax / 7,513,234,389.38 5,088,198,487.53
Deferred Tax
Profit after Tax 12,072,603,777.97 8,178,395,864.61
Statutory Reports
Other Information:
Segment Assets 320,943,227,325.55 272,402,356,415.75 49,098,690.44 42,756,364.44 179,997,915.28 - 321,172,323,931.27 272,445,112,780.18
Unallocated
669,096,273.16 1,502,358,243.13
Corporate Assets

Total Assets 320,943,227,325.55 272,402,356,415.75 49,098,690.44 42,756,364.44 179,997,915.28 - 321,841,420,204.43 273,947,471,023.31
251
Notes on Accounts
252
35. SEGMENT REPORTING (CONTD.)
Particulars Financing Power Generation Insurance Broking Consolidated Totals

Segment Liabilities 252,661,475,767.64 215,590,676,657.50 - - 9,832,240.97 - 252,671,308,008.61 215,590,676,657.50
Unallocated

- - 3,789,716,130.67 2,133,921,007.83
Corporate Liabilities
Total Liabilities 252,661,475,767.64 215,590,676,657.50 - - 9,832,240.97 - 256,461,024,139.28 217,724,597,665.33
Capital Expenditure 551,436,797.62 282,543,442.49 - - - - 551,436,797.62 282,543,442.49

Depreciation 516,479,720.64 584,270,441.59 2,106,062.00 2,296,031.14 623,207.08 - 519,208,989.72 586,566,472.73
Non-Cash
Expenditure other 2,798,460,990.83 1,556,341,622.53 - - - - 2,798,460,990.83 1,556,341,622.53
than Depreciation
Notes on Accounts
35. SEGMENT REPORTING (CONTD.)

Secondary Business Segment Information
1 Segment Revenue - External Turnover
Within India 58,192,796,090.54 48,614,935,396.84
Outside India 915,211,270.00 584,904,770.47
Total Revenue 59,108,007,360.54 49,199,840,167.31
2 Segment Assets
Within India 317,398,656,828.13 270,259,257,305.90
Outside India 4,442,763,376.31 3,688,213,717.41
Total Assets 321,841,420,204.43 273,947,471,023.31
3 Segment Liabilities
Within India 252,462,425,182.47 214,417,598,773.18
Outside India 3,998,598,956.81 3,306,998,892.15
Total Liabilities 256,461,024,139.28 217,724,597,665.33
4 Capital Expenditure
Within India 446,351,824.97 190,100,772.56
Outside India 105,084,972.65 92,442,669.93
Total Expenditure 551,436,797.62 282,543,442.49
36. FRAUDS DURING THE YEAR

During the year, frauds committed by employees of the company amounted to ` 12,827,281.00 (Previous year:
` 16,266,785.00) which has been recovered /written off / provided for.
37. DIVIDEND REMITTED IN FOREIGN CURRENCY

`
Dividend remitted in foreign currency Nil 79,333,048.00
No. of non-resident shareholders to which this relates Nil 1
No. of equity shares of face value of ` 10/- held by them Nil 9,916,631
Financial year to which dividend relates F Y 2016-17 F Y 2014-15 & F Y 2015-16

Notes on Accounts
38. DETAILS OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED DURING THE
PERIOD FROM 8TH NOVEMBER, 2016 TO 30TH DECEMBER, 2016, AS REQUIRED BY
MCA NOTIFICATION DATED MARCH 30,2017
`
Other denomination
Particulars SBNs Total
notes and coins
Closing cash in hand as on 08.11.2016 1,775,763,000.00 378,447,381.69 2,154,210,381.69
(+) Permitted receipts 72,756,500.00 50,354,730,758.44 50,427,487,258.44
(-) Permitted payments - 49,841,586,900.94 49,841,586,900.94
(-) Amount deposited in Banks 1,848,519,500.00 310,440,991.50 2,158,960,491.50
Closing cash in hand as on 30.12.2016 - 581,150,247.69 581,150,247.69
For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification
of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407( E), dated 8th
November, 2016.
39. INVESTMENT IN ASIA ASSET FINANCE PLC, SRI LANKA

The excess of cost to the Company of its investments in the subsidiary company over its share of equity of the subsidiary
company, at the dates on which the investments in the subsidiary company were made amounting to ` 40,684,942.35
(Previous Year: ` 35,911,859.77), is recognised as ‘Goodwill’ being an asset in the consolidated financial statements.
40. INVESTMENT IN MUTHOOT HOMEFIN (INDIA) LIMITED

The excess of the Company’s share of equity of the subsidiary company over its cost of its investments, at the dates on
which the investments in the subsidiary company were made amounting to ` 662,578.58 (Previous Year: ` 131,886.19), is
recognised as ‘Capital Reserve’ and thereafter set off against the Goodwill recognized as asset in the consolidated financial
statements.
41. INVESTMENT IN MUTHOOT INSURANCE BROKERS PRIVATE LIMITED

company, at the dates on which the investments in the subsidiary company were made amounting to ` 89,397,298.38, is
recognised as ‘Goodwill’ being an asset in the consolidated financial statements.
42. INVESTMENT IN BELSTAR INVESTMENT AND FINANCE PRIVATE LIMITED

company, at the dates on which the investments in the subsidiary company were made amounting to ` 82,075,355.98, is
recognised as ‘Goodwill’ being an asset in the consolidated financial statements.

Notes on Accounts
43. ADDITIONAL INFORMATION AS REQUIRED BY PARAGRAPH 2 OF THE GENERAL

INSTRUCTIONS FOR PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS TO
SCHEDULE III TO THE COMPANIES ACT, 2013:
Share in profit or (loss) for the year ended
Net Assets as at 31.03.2017
SL 31.03.2017
Name of the entity
No As % of consolidated As % of consolidated
Amount ` Amount `
net assets profit or loss
1 2 3 4 5
1 Parent
Muthoot Finance Limited 98.58 65,164,413,020.67 97.73 11,798,316,486.76
2 Subsidiaries
a Indian
Muthoot Homefin(India) Limited 0.04 24,860,263.21 0.21 25,365,500.05
Belstar Investment and Finance
0.06 38,958,971.93 0.32 38,958,971.93
Private Limited
Muthoot Insurance Brokers Private
0.09 60,165,673.63 0.50 60,165,673.63
Limited
b Foreign
Asia Asset Finance PLC 0.14 91,998,135.71 0.62 75,046,182.31
Minority interests in all
3 subsidiaries (Investment as per 1.09 719,379,771.44 0.62 74,750,963.27
the equity method)
a Indian subsidiaries 0.64 423,263,508.73 0.20 24,720,176.02
b Foreign subsidiary 0.45 296,116,262.71 0.42 50,030,787.25
TOTAL 100.00 66,099,775,836.59 100.00 12,072,603,777.96
44. PREVIOUS YEAR’S FIGURES HAVE BEEN REGROUPED / REARRANGED, WHEREVER

NECESSARY TO CONFORM TO CURRENT YEAR’S CLASSIFICATIONS / DISCLOSURE.
For and on behalf of the Board of Directors
Sd/- Sd/-
M. G. George Muthoot George Alexander Muthoot
Chairman & Whole time Director Managing Director
Sd/- Sd/-
Oommen K. Mammen Maxin James
Chief Financial Officer Company Secretary
Place: Kochi

Notes
concept, content and design at ([email protected])

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$

Bombay Stock Exchange (BSE):

- Late Shri. M. George Muthoot

Tired of living in rented homes, Jaya wanted to pursue her post-

2 Muthoot Finance Limited

During the year, we strengthened our

While conventional marketing continued

Our role is to connect the aspirations of

Today, we are India’s largest gold CORE VALUES

4 Muthoot Finance Limited

`27,278 Crs. 1,30,000 + 149 tonnes

325,000+ 24,000+ 4,300+

`14,739 Crs. `6 73.88 %

Annual Report 2016-17 5

Gold loans Foreign inward money Foreign exchange Collection

Microﬁnance Insurance White label ATM Wind mill power

Home Personal Domestic money Instant money

6 Muthoot Finance Limited

FUNDING AND CREDIT

Annual Report 2016-17 7

Muthoot Insurance Brokers Pvt insurance companies and is reputed

8 Muthoot Finance Limited

Muthoot Homeﬁn (India) Limited operates on a ‘Hub and Spoke’ model,

Belstar Investment and Finance Private Belstar was awarded by ACCESS-

Annual Report 2016-17 9

Gold loan assets ` in Crs. Revenue ` in Crs.

Average gold loan ` in Crs. Gold holding In tonnes

10 Muthoot Finance Limited

Proﬁt after tax ` in Crs. Earnings per share `

Net worth ` in Crs.

2014-15 2015-16 2016-17

Capital Adequacy 24.78 24.48 24.88

Return on Equity 14.35 15.13 19.44

Performance of the decade

Annual Report 2016-17 11

India’s ﬁnancial sector is maturing to

12 Muthoot Finance Limited

Annual Report 2016-17 13

Annual Report 2016-17 15

16 Muthoot Finance Limited

At Muthoot, we are enhancing our consumer outreach

presence in various events and for branches. It helped us to further

EVENTS AND SPONSORSHIP Branch Level Marketing

Annual Report 2016-17 17

Upping the information

Annual Report 2016-17 19

Making The Team

20 Muthoot Finance Limited

In FY 17 we engaged our people in the following training programmes:

Managerial Effectiveness Programme: Muthoot Certiﬁed Business Manager

Annual Report 2016-17 21

22 Muthoot Finance Limited

Annual Report 2016-17 23

Received highest rating of F1 from Fitch Ratings

Retail loan portfolio crossed ` 33 Billion

24 Muthoot Finance Limited

Annual Report 2016-17 25

M. G. GEORGE GEORGE THOMAS GEORGE JACOB

GEORGE ALEXANDER K. GEORGE JOHN K. JOHN MATHEW