Annual Report 2019 20

Annual Report
2019-20
Vision, Mission, Purpose 01
Chairman’s Message 02
Board of Directors 03
Contents Five Years of Pradhan Mantri Mudra Yojana 04
Directors’ Report 13
Auditor’s Report Under “Non-Banking

Financial Companies Auditor’s Report 33
(Reserve Bank) Directions, 2016”
Independent Auditors’ Report 35
Balance Sheet 42
Statement of Profit and Loss 43
Statement of Cash Flows 44
Statement of Changes in Equity 46
Significant Accounting Policies 47
Notes to Financial Statements 59
Notice 92
Mission
To create an inclusive, sustainable and
value-based entrepreneurial culture,
in collaboration with our partner
institutions in achieving economic
success and financial security.
Vision
To be an integrated financial and
support services provider par
excellence, benchmarked with global Purpose
best practices and standards, for the
bottom of the pyramid universe for Our basic purpose is to attain
their comprehensive economic and development in an inclusive and
social development. sustainable manner by supporting
and promoting partner institutions
and creating an ecosystem of
growth for micro enterprises sector.
Annual Report 2019-20 01

Corporate Overview
Chairman’s Message
This year, both Pradhan Mantri MUDRA continues to provide to mention, small businesses from
Mudra Yojana (PMMY) and Micro refinance support to Banks, NBFCs the micro segment have been
Units Development & Refinance and MFIs against their loans under the most impacted category. The
Agency (MUDRA) have completed 5 the PMMY, thereby extending Government of India is taking
successful years of operations and funding support to this vulnerable the challenge head-on and has
it gives me great pleasure to place sector. During FY 2019-20, MUDRA announced various measures to
before you the highlights of MUDRA’s sanctioned ` 4,812 crore and ensure adequate liquidity in the
performance during the financial year disbursed ` 4,000 crore. system and more money in pockets
2019-20 (FY 2020). to revive economic activity, which
FY 2019-20 has been a year of
had come to an almost standstill due
The year gone by inclusive financing with a focus on
to the lockdown. Atmanirbhar Bharat
PMMY, the flagship scheme of NBFCs and MFIs. Total Sanctions to
announced by the Prime Minister
Government of India, has been going NBFCs & MFIs increased from ` 1,436
has been a forward-looking initiative
from strength to strength, continuing crore to 12 entities in FY 2018-19
of the government with the dual
with its agenda of “funding the to ` 2,389 crore to 38 entities in
objective of ensuring that all sectors
unfunded”. It brings the Micro FY 2019-20. Taking MFIs alone, there
resume activity. Similarly, the Reserve
enterprises within the formal financial is a growth in the outstanding by
Bank of India too has reduced the
system and extends affordable about 132% as on March 31, 2020
policy rates and has announced a
credit to them, with interventions vis-à-vis the previous year. The
moratorium for all borrowers to ease
named ‘Shishu’, ‘Kishor’ and ‘Tarun’ coverage of MFIs has increased
out the repayments of loans.
through Banks, Non-Banking during the year, taking the number
Finance Companies (NBFCs) and of Borrowers in the segment to 35 Conclusion
Micro-Finance Institutions (MFIs). as on March 31, 2020 from 23 as In the last 5 years, MUDRA has
These interventions signify the of previous year-end. Similarly, the established itself as a key player
stages of development and funding coverage in NBFCs increased to 12 in ensuring adequate focus on
needs of the beneficiary micro unit as on March 31, 2020 from 10 as of micro-enterprises and continues
/ entrepreneur and also provide a previous year-end. to encourage a culture of
reference point for the next phase of entrepreneurship.
Revenue from operations increased
growth. During FY 2019-20, the total
by 29%, from ` 860.93 crore in I would like to thank all stakeholders,
sanctions under PMMY have grown
FY 2018-19 to ` 1,111.90 crore in including SIDBI, Ministry of Finance
to ` 3.37 lakh crore, exceeding the
FY 2019-20. The Net Profit too and Reserve Bank of India for
target set at ` 3.25 lakh crore and
has increased from ` 33.48 crore in their continuous support and
benefiting 6.22 crore beneficiaries.
FY 2018-19 to ` 219.82 crore. also the Team MUDRA for their
The programme also helped in
dedicated work.
extending financial support to the Looking ahead
weaker sections of the society, viz., FY 2020-21 has commenced under
SC/ST/OBC/women entrepreneurs, the shadows of the COVID pandemic Mohammad Mustafa
in large numbers. & its consequent lockdown. Needless Chairman
02 Micro Units Development and Refinance Agency Limited

Chairman’s Message | Board of Directors
Board of Directors
Shri Mohammad Mustafa – IAS

Chairman
Cessation w.e.f. August 27, 2020
Shri Pankaj Jain – IAS Shri Suchindra Misra

Govt. Nominee Director IAS Director
Cessation w.e.f. January 30, 2020 Appointment w.e.f. February 19, 2020
Shri Ajay Kumar Kapur Shri Manoj Mittal Shri Vasantharao Satya Venkatarao
SIDBI Nominee Director SIDBI Nominee Director SIDBI Nominee Director
Cessation w.e.f. October 31, 2019 Appointment w.e.f. June 26, 2020
Smt. Jyotsna Sitling – IFS Shri Pillarisetti Satish Shri Arvind Kumar Jain
Non-Executive Director Independent Director Independent Director
Cessation w.e.f. November 11, 2019
Shri Harsh Shrivastava Smt. Smita Affinwalla Shri Aalok Gupta

Independent Director Independent Director Managing Director & CEO
Cessation w.e.f. July 31, 2020 Appointment w.e.f. June 04, 2020

Corporate Overview
Five Years of Pradhan Mantri Mudra Yojana

- continuing support to the bottom of the pyramid
Cumulative Outreach to Addressing the Credit Needs

Empowering Women with
24.48 crore
of Weaker Sections with
MSE Borrower Accounts 68% 51%

with Credit Support of Loan Accounts belonging to of the Loan Accounts
` 12.30 lakh crore Women Beneficiaries belonging

to SC/ST/OBC
Pradhan Mantri Mudra Yojana (PMMY), the Flagship Programme of the Prime Minister aimed at Funding the Unfunded
micro enterprises and small businesses, completed 5 years of its operations, extending a cumulative amount of ` 12.30
lakh crore under the programme to 24.48 crore loan accounts, primarily benefiting the borrowers of weaker sections of
the society.
The Lending Institutions, which include all the Public Sector Banks, Private Sector Banks, Regional Rural Banks, Small
Finance Banks, Micro-Finance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs), together have
exceeded the annual targets set out by the Government of India under PMMY every year.
Pmmy: Target vs Achievement (Amt. in ` lakh crore)
Target Achievement
3.37
3.25
3.21
3.00
2.53
2.44
1.80
1.80
1.37
1.22
FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20
During these five years, Micro Units Development & Refinance Agency Ltd. (MUDRA), as a support institution, has played
a dual role by extending refinance support to various lending institutions and monitoring the progress of implementation
of PMMY closely through a dedicated portal which captures various aggregated data pertaining to the scheme PMMY as
per the requirements of the Govt. of India.

PMMY during 2019-20

Agency-wise Achievement
The target set by the Government of India under PMMY for the year 2019-20
was ` 3.25 lakh crore which was distributed across various lending institutions,
banks, MFIs and NBFCs based on their outreach and presence in various parts
of the country. The category-wise performance against their overall targets for
the year 2019-20 is as under:
Agency-wise performance
(` in crore)
Category Target Sanction Sanction Growth
(2019-20) Amt. Amt.
(2019-20) (2018-19)
Public Sector Banks 1,28,000 1,17,729 1,17,282 7%
(incl. Regional Rural (92%)
Banks)
Private Sector Banks 70,025 91,780 64,037 43%
(incl. Foreign Banks) (132%)
Small Finance 29,350 29,501 29,794 -1%

Banks (101%)
Micro Finance 57,425 57,967 63,471 -9%

Institutions (101%)
Non-Banking 40,200 40,518 47,137 -14%

Finance Companies (101%)
Note: The figures in the
3,37,495 parenthesis indicate the
Total 3,25,000 3,21,721 5% percentage achievement
(104%)
over targets.
Target vs Achievement in ` crore

1,28,000
Target Achievement
1,17,729
91,780
70,025
57,967
57,425
40,518
40,200
29,501
29,350
Public Sector Private Small Finance Micro Finance Non-Banking

Banks Sector Banks Banks Institutions Finance Companies

Corporate Overview
The achievement data indicates 5% growth over the State-wise Performance

previous year in the overall performance of the programme While the Institution-wise targets were assigned by the
implemented by all the lending institutions. While the Govt. of India, the same were further sub-allocated state-
growth in respect of Public Sector Banks was moderate at wise by the respective lending institutions based on their
7%, the same increased significantly by 43% for Private network and potential to lend. The state level performance
Sector Banks. is being monitored by the respective SLBCs of the states.
Among the Public Sector Banks, State Bank of India (SBI),
with sanction of ` 35,125 crore to 36.76 lakh accounts
topped the table. SBI was followed by Bank of Baroda and
Canara Bank with sanction figures of ` 10,282 crore and
` 9,489 crore respectively. Of all the states, Tamil Nadu
topped with sanction of
The Private Sector Banks recorded considerable
improvement in performance with a sanction of ` 91,780 ` 35,017 crore,
crore during the year, registering 43% growth over the followed by Uttar Pradesh with
previous year. This was mainly on account of merger of
SKS Microfinance (Bharat Finance Ltd.) with IndusInd ` 30,949 crore,
Bank, who topped the list with sanction of ` 38,199.43 and Karnataka stood at
third position with
crore grabbing over 41% of the aggregate sanctions by
Private Sector Banks. The other major contributors in the ` 30,188 crore.
private sector banks category were Bandhan Bank and
IDFC Bank.
Merger of SKS Microfinance (Bharat Finance Ltd.) with

IndusInd Bank resulted in lower performance of MFI
category during FY 2019-20, registering a decline by 9%
to the previous FY. MFIs sanctioned a total Loan amount Tamil Nadu Uttar Pradesh Karnataka
of ` 57,967 crore to 1.96 crore Borrowers. Credit Access
Grameen Limited was the leading MFI with a sanction
amount of ` 7,598 crore in more than 23 lakh loan accounts. Performance of top 10 states
(` in crore)
NBFCs have also emerged as a major contributor to the
Sanction Sanction
PMMY with a total sanction of ` 40,518 crore (12% of the Name of the
Amt. Amt. Growth
total sanction amount). In this category, Fullerton India State
(2019-20) (2018-19)
Credit Company Limited has been the highest contributor
Tamil Nadu 35,017 34,260 2%
with a total sanction amount of ` 11,666 crore.
Uttar
Small Finance Banks achieved 101% of their target. 30,949 26,191 18%
Pradesh
During the year, the 10 SFBs sanctioned a total
Karnataka 30,188 29,995 1%
amount of ` 29,501 crore to 71.60 lakh loan accounts.
Maharashtra 27,903 26,439 6%
Bihar 27,442 24,406 12%
Ujjivan Small Finance Bank was on West Bengal 26,790 26,462 1%

top of the table among SFBs, with a
Rajasthan 19,662 17,506 12%
sanction amount of ` 7,102 crore to
Madhya
18.42 lakh loan accounts. 19,060 17,408 9%
Pradesh
Odisha 15,419 15,770 -2%
Gujarat 13,746 13,217 4%
Total 2,46,176 2,31,654 7%

District-wise performance:
District-wise performance under the scheme was also captured on the PMMY Portal. Except a few lending institutions,
almost all have reported their data of district-wise performance. A few agencies which could not provide district-wise
break-up have entered their data in the “Other” districts under the respective states. The top 10 districts under PMMY
performance are given in the table below:
District-wise performance
FY 2019-20
Sr.
District Name
No. Sanction Amt. Share of the Total
No. of A/Cs
(` in crore) Account Sanctioned
1 Hyderabad 11,35,978 4,705 1.82%
2 Bengaluru urban 5,22,505 3,361 0.84%
3 Kolkata 6,76,424 2,831 1.09%
4 Pune 2,51,856 2,348 0.40%
5 North 24 Parganas 5,24,089 2,302 0.84%
6 Ahmedabad 3,96,763 2,276 0.64%
7 Tiruchirappalli 6,16,395 2,264 0.99%
8 Murshidabad 5,79,188 2,065 0.93%
9 Belgaum 3,48,394 2,012 0.56%
10 Chennai 2,56,599 2,001 0.41%
Total 53,08,191 26,165 8.52%
These 10 districts formed 8.52% share in the total sanctions during FY 2019-20. Better performance of these districts
was due to them being mostly urban centres with large potential of small business activities and presence of large number
of financial outlets to serve them.

Corporate Overview
Regional analysis
The region-wise performance of Targets vs. Achievements divided into five regions based on their geography and the
distribution of PMMY loans sanctioned during the year has been analysed and given below:
FY FY 2019-20 FY 2018-19
Growth in
Sanction Amt.
Region No. of A/Cs Sanction Amt. No. of A/Cs Sanction Amt.
(%)
(` in crore) (` in crore)
North 1,24,56,705 82,045 1,12,92,193 74,437 10%

(20%) (25%) (19%) (23%)
East 1,95,89,404 84,574 1,86,58,660 79,581 6%

(31%) (25%) (31%) (25%)
North East 22,78,699 10,824 30,60,244 13,145 (18%)

(4%) (3%) (5%) (4%)
South 1,74,54,720 98,767 1,73,15,948 96,930 2%

(28%) (29%) (29%) (30%)
West 1,04,68,078 61,285 95,43,273 57,629 6%

(17%) (18%) (16%) (18%)
Total 6,22,47,606 3,37,495 5,98,70,318 3,21,721 5%
North East:
Assam, Arunachal Pradesh, Manipur, Meghalaya, Region-wise distribution under PMMY
Mizoram, Nagaland, Sikkim, Tripura,
East :
Odisha, West Bengal, Bihar, Jharkhand, Chhattisgarh 61,285, 18% 82,045, 25%
West:
Dadra & Nagar Haveli, Daman & Diu, Gujarat, Goa,
98,767, 29%
Madhya Pradesh, Maharashtra
84,574, 25%
South:
Karnataka, Kerala, Puducherry, Tamil Nadu, Telangana,
Andhra Pradesh, Andaman & Nicobar, Lakshadweep
North: 10,824, 3%
Chandigarh, Haryana, Himachal Pradesh, Jammu &
Kashmir, Delhi, Uttar Pradesh, Uttarakhand, Punjab North East North-East
and Rajasthan South West

Loan Category Analysis

Mudra loans are extended in three categories based on the size of the loans.
They are Shishu (up to ` 50,000), Kishor (above ` 50,000 and up to ` 5 lakh) and
Tarun (above ` 5 lakh and up to ` 10 lakh). The share of the three categories of
Shishu PMMY has been analysed and is given below in the table:
(Up to ` 50,000)
Sub-categories of borrowers: Sanctions (FY 2019-20)
(` in crore)
FY 2019-20 FY 2018-19 % change

Category (Sanction
No. of Loan Sanction No. of Loan Sanction
Amt.)
Accounts Amt. Accounts Amt.
Shishu 5,44,90,617 1,63,559 5,15,07,438 1,42,345 15%
(88%) (48%) (86%) (44%)
Kishor 64,71,873 95,578 66,06,009 1,04,387 (8%)
(10%) (28%) (11%) (32%)
Tarun 12,85,116 78,358 17,56,871 74,991 (4%)
(2%) (24%) (3%) (23%)
TOTAL 6,22,47,606 3,37,495 5,98,70,318 3,21,723 5%
Note: Figures in parenthesis indicate the share in percentage.

Kishor
(Above ` 50,000
and up to ` 5 lakh) Among the three categories, Shishu loans
had the largest share of 88% in terms of
number of accounts and 48% in terms
of value. Further, Shishu Loans sanction
amount grew by 15% over last year.
Distribution by number of accounts
Kishor Tarun
64,71,873 12,85,116
10% 2%
Tarun
(Above ` 5 lakh Shishu
and up to ` 10 lakh) 5,44,90,617
88%

Corporate Overview
Assistance to less privileged sections

PMMY, since its implementation, has focussed on providing incremental funding support to the weaker sections of the
society. The share of sub-categories of borrowers like SC, ST, OBC, Women and Minorities under different categories of
PMMY loans was analysed and details of the same are given below:
Sub-categories of borrowers: Sanctions (FY 2019-20) (` in crore)
SHISHU KISHOR TARUN TOTAL

Category
No. of A/Cs Amount No. of A/Cs Amount No. of A/Cs Amount No. of A/Cs Amount
3,24,97,506 2,23,611
General 2,76,14,426 86,660 37,76,211 67,332 11,06,869 69,620
(52%) (66%)
1,02,81,553 34,662
SC 95,31,602 27,326 7,15,832 6,064 34,119 1,272
(16%) (10%)
38,89,696 13,794
ST 35,80,397 10,087 2,81,585 2,828 27,714 879
(6%) (4%)
1,55,78,851 65,428
OBC 1,37,64,192 39,486 16,98,245 19,354 1,16,414 6,588
(26%) (20%)
Total 5,44,90,617 1,63,559 64,71,873 95,578 12,85,116 78,359 6,22,47,606 3,37,495
Out of the above:
3,91,03,349 1,45,182
Woman 3,57,17,217 1,09,660 29,88,307 26,477 3,97,825 9,045
(63%) (43%)
New
1,19,13,903 99,263
Entrepreneur 96,60,059 28,230 1,825,475 38,710 4,28,369 32,323
(19%) (29%)
Accounts
64,27,116 30,923
Minorities 56,35,944 16,080 7,20,649 9,448 70,523 5,396
(10%) (9%)
Note: Figures in parenthesis indicate the share in percentage.
66% of the accounts in Shishu category belonged to women who were

sanctioned 67% of the amount in the Shishu category. The reason for high
share of women in Shishu category is lending of micro-loans by the MFIs
primarily to women.

Percentage share of Total number of accounts

in General, SC, ST & OBC
SC 16
ST 6
General
52
OBC 26
The share of the weaker section (SC/ST/OBCs) borrowers

of the society in the PMMY programme was 48% in
terms of loan accounts, and 34% in terms of loan amount
sanctioned. The shares of SC, ST and OBC category The borrowers from Minorities category accounted for
borrowers were 16%, 6% and 26%, respectively, in terms 10% and 9% in terms of number of accounts and amount
of the number of loans sanctioned. respectively in FY 2019-20 under PMMY.
Average loan size

The average size of loans extended under PMMY is analysed and given below:
Amount sanctioned No. of loan accounts Average loan size

(` in crore)
2018-19 2019-20 2018-19 2019-20 2018-19 2019-20
TOTAL 3,21,723 3,37,495 5,98,70,318 6,22,47,606 53,736 54,218
The average loan size under PMMY during FY 2019-20 increased marginally to ` 54,218 as against ` 53,736 in the
previous year. Similarly, the average loan size under Shishu category at ` 30,016 has been higher than that of ` 27,636 in
the previous year.
Mudra Card
To enable the MSE borrower to effectively avail the Since the cards issued during one year are
working capital funds at reasonable and affordable usable in the next year also, the number of cards
cost, a debit card on RuPay platform named Mudra Card reported relate to only the new cards issued during
has been issued to PMMY borrowers by various lending FY 2019-20. However, the cumulative number of
institutions. During FY 2019-20, 4.26 lakh Mudra Cards Mudra Cards including the existing cards in use is more
have been issued for an amount of ` 8,623 crore. than 10 lakh.
Conclusion
Pradhan Mantri Mudra Yojana (PMMY) continues to serve millions of unfunded micro-borrowers in the country with loans
much-needed for their business activities resulting in upliftment of their lives. The PMMY programme, during the last five
years, has benefited 24.48 crore loan accounts with a sanction of ` 12.30 lakh crore, thus enabling the grassroot economy
of the country to contribute in a bigger way to the overall economic growth of the nation.

Corporate Overview
STATUTORY
REPORTS &
FINANCIAL STATEMENTS

Directors’ Report
Directors’ Report
Dear Members, Table 1: Financial Results Highlights, FY 2019−2020

Your Directors take pleasure in presenting the
(` crore)
5th Annual Report on the business and operations of Micro
Units Development & Refinance Agency Ltd (MUDRA) Particulars 2019-20 2018−19
for the Financial Year (FY) ended March 31, 2020. Revenue from operations 616.51 574.32
The Audited Financial Statements, the Auditors’ Report Other income 495.39 286.61
and the Report of the Comptroller & Auditor General of (A) Total income 1111.90 860.93
India on the Accounts for FY 2019-20 are also attached. Employee benefit expenses 7.13 6.54
Finance costs 658.72 514.94
Financial Results Depreciation expense 0.05 0.09
Your Company’s revenue from operations increased from Provisions & write-off 68.26 282.34
` 574.32 crore to ` 616.51 crore in FY 2019-20. Other expenses 40.35 5.82
(B) Total expenses 774.51 809.73
Profit before tax (A-B) 337.39 51.2
(C) Total tax expenses 117.57 17.72
Profit for the year 219.82 33.48
Dividend @ 25.14 3.35
Dividend tax* 0.00 0.69
Amount transferred to 150.00 15.00
general reserves
Amount transferred to 43.96 6.70
Total income increased from ` 860.93 statutory reserves
crore to ` 1111.90 crore, while profit Amount transferred to 0.00 6.72
CSR Fund
after tax has increased from ` 33.48 Surplus 28.43 27.72
crore to ` 219.82 crore in FY 2019-20. Earnings per share(`) 1.31 0.20
The highlights of the financial results @ Subject to approval of Members at the Annual General
are presented in Table 1. Meeting (AGM)
* To be paid after the AGM

Statutory Reports
Appropriations Deposits
Transfer to Statutory Reserves Your Company has not accepted any deposits from the
Your Company is registered as a non-deposit taking, public during FY 2019-20, and shall not do so without
non-banking financial institution (NDSI-NBFC) under the prior approval of the RBI.
provisions of Section 45-IA of the Reserve Bank of India
Act, 1934. An amount of ` 43.96 crore (20% of the net Particulars Of Loans, Guarantees Or Investments
profit), has been transferred to Statutory Reserves as Pursuant to Section 186(11) (a) of the Companies Act,
stipulated under Section 45-IC of the Act. 2013, read with Rule 11(2) of the Companies (Meetings
of Board and its Powers) Rules, 2014, the loans made,
Transfer to General Reserves guarantees given, or securities provided in the ordinary
An amount of ` 150 crore has been transferred to General course of business by an NBFC registered with the RBI is
Reserves as proposed by the Board of Directors at its exempt from the applicability of provisions of Section 186
meeting held on June 04, 2020, in accordance with of the Act.
requirement under Section 123 (1) of the Companies
As such, particulars of refinance provided by your
Act, 2013.
Company have not been disclosed in this report.
Dividend The details of your Company’s investments are furnished

Your Directors have recommended first and final under Note 7 forming part of the financial statements for
dividend of ` 0.15 per equity share (of ` 10 face value) FY 2019-20.
(compared with ` 0.02 per share in FY 2018-19) on
a pro rata basis, FY 2019-20. The proposal is subject Related-Party Transactions
to the approval of shareholders at the ensuing fifth Related-party transactions as disclosed in Note 38
Annual General Meeting of your Company. The dividend of the audited financial statements, entered into during
shall be paid to members whose names appear in FY 2019-20, were conducted on an arm’s-length
the Register of Members of your Company, as on basis and in the ordinary course of business. The
March 31, 2020. approval of the Board of Directors was obtained
wherever required.
Share Capital
Further, there are no materially significant related-party
Your Company’s paid-up equity share capital stood at
transactions made by your Company. Accordingly,
` 1675.93 crore as on March 31, 2020, comprising
the particulars of the transactions as prescribed in
167.59 crore equity shares of ` 10 each, fully subscribed
Form AOC - 2 of the rules prescribed under Chapter IX
by SIDBI.
relating to Accounts of Companies under the Companies
Financial Highlights Act, 2013, are not required to be disclosed as they are
The Progress so far not applicable.
Amt. (`) in crore Operations

As on March 31 2020 2019 During FY 2019-20, your Company sanctioned
Total Assets 19,620 17,230
Outstanding Portfolio 9,004 11,834
Capital-Authorised 5,000 5,000
- Paid-up 1,676 1,676 ` 4,812 crore

Networth 2,309 2,094 to 9 Banks,
Capital Adequacy 26 MFIs and 12 NBFCs &

Your Company’s capital adequacy ratio was 61.23 % as
on March 31, 2020, which is significantly higher than the
` 4,000 crore
minimum threshold limit of 15% prescribed by the RBI for was disbursed
large-sized, non-deposit taking, systemically important
non-banking financial companies (NDSI-NBFCs).

Directors’ Report
Sanction & Disbursements (` crore)
4,529.00
Sanctioned Amount in crores
4,072.48
2,671.25
2,158.00
2,068.52
1,600.00
1,270.00
1,200.00
1,137.00
1,080.00
1,309.00
812.00
820.00
721.92
446.50
399.00
323.10
265.00
236.00
271.42
49.95
PSB + RRB Pvt Sector + SFB MFI NBFC PTC Transactions
2015-16 2016-17 2017-18 2018-19 2019-20
Disbursed Amount in crores

4,329.00
4,072.48
2,671.25
2,244.00
2,068.52
1,470.00
1,350.00
1,005.00
932.00
787.00
708.00
704.07
616.00
559.00
399.00
369.50
309.46
314.00
271.42
265.00
PSB + RRB Pvt Sector + SFB MFI NBFC 49.95

PTC Transactions
2015-16 2016-17 2017-18 2018-19 2019-20
MUDRA Overall Operations - Outstanding Year-wise
0, 0%
479, 4% 92, 1% 1112.28, 12%
1,864, 16%
315, 2% 1686.84, 19%
2019 6,843, 58% 2020 4635.35, 51%

2,254, 19% 273.78, 3%
1381.25, 15%
Refinance to Public Sector Banks Refinance to Private Sector Banks & SFBs
Refinance to RRB Refinance to NBFC
Refinance to MFIs Investment in PTC

Statutory Reports
Pradhan Mantri Mudra Yojana (PMMY) The names signify the stage of growth/development of
The Pradhan Mantri Mudra Yojana (PMMY) envisages the micro enterprises and their funding needs.
providing MUDRA loans up to ` 10 lakh by Banks, NBFCs
Monitoring of PMMY
and MFIs for income-generating micro/small enterprises
engaged in the manufacturing, trading and services MUDRA has developed a MUDRA PMMY portal to capture
sectors. data on lending by various agencies and submitting its
report to the GoI with granular information such as type
An overdraft amount of ` 10,000 sanctioned under of loan, type of borrowers and their details in agency-wise,
Pradhan Mantri Jan Dhan Yojana (PMJDY) is also classified state-wise and district-wise formats. The Department
as a MUDRA loan under PMMY. of Financial Services (DFS), GoI, and MUDRA review
progress on this regularly.
MUDRA loans are classified into three categories:
Pradhan Mantri Mudra Yojana (Pmmy)
• Shishu for loan up to ` 50,000 During 2019-20
More than 6.222 crore micro accounts were benefitted
• Kishor for loan from ` 50,000 to ` 5 lakh, and through PMMY during the year. A snapshot of various
• Tarun for loan from ` 5 lakh to ` 10 lakh categories of beneficiaries is presented in Table 2.
Table 2: Categories of MUDRA loans and beneficiaries 2019-20 and cumulative for 5 years.
2019-20 Cumulative for 5 years
No. of Amount Amount No. of Amount Amount
Category
Accounts sanctioned disbursed Accounts sanctioned disbursed
(` crore) (` crore) (` crore) (` crore)
Shishu 5,44,90,617 1,63,559 1,62,813 21,75,66,709 5,59,901 5,52,612
(88%) (48%) (49%) (89%) (45%) (46%)
Kishor 64,71,873 95,579 914,27 2,24,64,719 3,83,295 3,66,629
(10%) (28%) (28%) (9%) (31%) (31%)
Tarun 12,85,116 78,358 75,475 47,99,060 2,87,677 2,76,990
(2%) (24%) (23%) (2%) (24%) (23%)
TOTAL 6,22,47,606 3,37,496 3,29,715 24,48,30,488 12,30,873 11,96,231
Out of the above
Women 3,91,03,349 1,45,182 1,42,846 16,64,99,308 5,43,943 5,13,610
(63%) (43%) (43%) (68%) (44%) (43%)
New entrepreneur 1,19,13,903 99,263 94,896 6,03,31,170 4,37,354 4,18,360
Accounts (19%) (29%) (29%) (25%) (36%) (35%)
SC/ST/OBC 2,97,50,100 1,13,884 1,12,029 12,50,11,002 4,19,711 4,09,216
(48%) (34%) (34%) (51%) (34%) (34%)
(Figures in parenthesis indicate their share in the total)
High percentage of women in terms of number of accounts of loan amount sanctioned. The share of SC, ST and OBC
is mainly due to the high share of MFIs in Shishu loans, categories were 16%, 6% and 26%, respectively, in terms
where women mostly make up the clientele. of number of loan accounts sanctioned.
The share of special category of borrowers – SC, ST, OBC, The Minority category of borrowers accounted for 10%
women and minority – under different schemes of PMMY and 9%, respectively, in terms of number of accounts and
continues to be significant in FY 2019-20. The share of amount share in FY 2019-20.
women borrowers stands at 63% by number of accounts
and 43% by sanction amount. New loan accounts stood at 19% of total loan accounts
in FY 2019-20, and 29% of the total sanctioned amount.
The participation of the under-privileged sections (SC, ST Nearly 1.19 crore new loan accounts were sanctioned
& OBCs) of the society in the PMMY programme was 48% under PMMY during the year, compared with 1.33 crore in
in terms of number of loan accounts, and 34% in terms FY 2018-19

Directors’ Report
The MUDRA Yojana has thus helped the aspirations

of many micro entrepreneurs who were otherwise
outside the ambit of the formal banking system and is
addressing the problem of ‘funding the unfunded’ to a Empowerment &
large extent. Accountaiblity
Participation in Sectoral Events

Shri Aalok Gupta, MD & CEO and Shri Anjani Kumar
Srivastava, GM & CFO attended the 2nd SIDBI National
Microfinance Congress 2019 Nov 26-27, 2019.
Corporate Governance Nominations for Celebration of

Meetings of the Board of Directors Training to RBI. Vigilance week in
During FY 2019-20, the Board of MUDRA met 5 times Office.
on various dates in accordance with Section 173 of
Companies Act, 2013. Details of these meetings are given
in Annexure I.
The provisions of Companies Act, 2013, and rules made
Directors and Key Managerial Personnel
thereunder, and the Secretarial Standards were adhered
Inductions
to while considering the time gap between meetings and
holding the meetings according to prescribed procedures. The following appointments were made during the year:
Policy on Directors’ Appointment & Remuneration

• Shri Anjani Kumar Srivastava as Chief Financial Officer
of MUDRA effective December 20, 2019
Remuneration to Executive Directors
Your Company has one full-time executive director, • Shri Suchindra Misra, as Nominee Director of Department
who is on rolls of MUDRA. His remuneration is paid by of Financial Services, effective February 19, 2020.
your Company.
Reappointments
Remuneration to Non-Executive Directors
• As per the provisions of the Companies Act, 2013, Shri
Manoj Mittal, Nominee Director, and Shri Aalok Gupta,
Non-executive Directors and Independent Directors (other
Managing Director, retire by rotation at the ensuing AGM
than Nominee Directors and Directors from the GoI) are
and, being eligible, seek reappointment. The Board has
paid remuneration by way of sitting fees for each meeting
recommended their re-appointment
of the Board and Committee of Directors attended
by them.
Retirements & Resignations
Declaration by Independent Directors
• Shri Ajay Kumar Kapur, Nominee Director of SIDBI
on attaining the age of superannuation, resigned as
The Board of Directors of MUDRA has received a
Director of the Board effective October 31, 2019.
declaration from all Independent Directors as per Section
149(7) of the Companies Act, 2013, and the Board is • Smt Jyotsna Sitling, Director, in view of her transfer
satisfied that all of them meet the criteria of independence from the post of JS (Entrepreneurship), Ministry of
stipulated under Section 149(6) of the Companies Skill Development and Entrepreneurship, resigned as
Act, 2013. Director of Board effective November 11, 2019
Particulars of Employees
• Smt Rajni Sood, Chief Financial Officer, MUDRA
resigned effective from December 11, 2019.
Your Company has not employed any individual whose
remuneration falls within the purview of the limits • ShriPankaj Jain, Nominee Director of Department of
prescribed under Section 197 of the Companies Act, Financial Services (DFS), ceased to be Nominee Director
2013, read with Rule 5 (2) of the Companies (Appointment on account of withdrawal of his nomination by DFS
and Remuneration of Managerial Personnel) Rules, 2014. effective January 30,2020
Training & Career Development Change in Designation

Your Company has been focusing on continuous grooming The details of the Board of Directors of your Company, and
of its staff. During the year staff members attended training changes in directorship during FY 2019-20 are given in
Program organized by RBI. Annexure I.

Statutory Reports
Committees of the Board (c) They have taken proper and sufficient care for
As on March 31, 2020, the Board had six committees the maintenance of adequate accounting records
and sub-committees – Audit Committee, Nomination & in accordance with the provisions of this Act for
Remuneration Committee, Risk Management Committee, safeguarding the assets of the Company and
Corporate Social Responsibility Committee, Executive for preventing and detecting fraud and other
Committee and IT Strategy Committee – in compliance irregularities
with the applicable provisions of the Companies Act, 2013, (d) They have prepared the annual accounts on an
and the RBI regulations. The composition of the Board and ongoing-concern basis
the committees is provided in the Annexure I.
(e) They have laid down internal financial controls to
Internal Financial Control & Its Adequacy be followed by the Company, and these internal
Your Company has adopted policies and procedures for financial controls were adequate and operating
ensuring orderly and efficient conduct of business, and effectively and,
has put in place standard operating procedures (SOPs)
and internal financial control for various schemes and (f) They have devised proper systems to ensure
processes. Such internal financial controls were confirmed compliance with the provisions of all applicable laws,
by the Statutory Auditors after testing, as adequate and and that these systems were adequate and operating
operating effectively. effectively
Material Changes and Commitments Disclosures Regarding Sexual Harassment at

There have been no material changes and commitments Workplace
affecting the financial position of your Company after The Company has zero tolerance for sexual harassment
signing of the financial statements in this report. at workplace and has adopted a Policy on prevention,
prohibition and redressal of sexual harassment at
Significant and Material Orders Passed by workplace in line with the provisions of the Sexual
Regulators, Courts, or Tribunals Harassment of Women at Workplace (Prevention,
There are no significant and material orders passed by Prohibition and Redressal) Act, 2013 and the Rules
the regulators, courts, or tribunals impacting the going- thereunder (“the Act”) for prevention, prohibition and
concern status and the Company’s operations in future. redressal of complaints of sexual harassment at workplace.
The Anti Sexual Harassment Policy of the Company is
Annual Return available on MUDRAs bulletin board.
In accordance with Section 134 (3)(a) of the Companies
Act, 2013, an extract of the Annual Return in the prescribed The Company has also constituted an Internal Committee
format is enclosed as Annexure III to the Board’s Report. (IC) in compliance with Section 4 of the Act. The details of
the IC are provided on the bulletin board.
Secretarial Standards The Company has not received any complaint on sexual
The Company complies with all applicable Secretarial harassment during the Financial Year 2019-20.
Standards.
Directors Responsibility: Statements Audit Reports and Auditors

Audit Reports
Pursuant to Section 134(3)(c) of the Companies Act, 2013,
the directors confirm that, to the best of their knowledge
• The Auditors’ Report for FY 2019-20 does not contain
any qualification, reservation or adverse remark.
and belief,
Further, there had been no instance of fraud committed
(a) Applicable accounting standards had been followed against your Company by any officer or employee that
in the preparation of the annual accounts, along with was required to be reported to the central government
proper explanation relating to material departures by the auditors. The Auditors’ Report is enclosed with
(b) They have selected such accounting policies, applied the Financial Statements in this Annual Report
them consistently, and made such reasonable and • The Secretarial Audit Report for FY 2019-20 does not
prudent judgments and estimates, so as to give contain any qualifications or adverse remarks, which
a true and fair view of the state of affairs of the require any clarification/explanation. The Secretarial
Company at the end of FY 2019-20 and of the profit Audit Report is enclosed as Annexure II to the
and loss of the Company for that period Board’s Report.

Directors’ Report
Auditors Vigil Mechanism

Statutory Auditors In view of compliance with Section 177(9) & (10) of the
Your Company is owned or controlled by SIDBI, which Companies Act, 2013, read with Rule 7 of Companies
was set up under an Act of Parliament. Accordingly, (Meetings of Board and its Powers) Rules 2014, your
as per Section 139(5) of the Companies Act, 2013, Company has set up a vigilance cell and follows the Central
M/s V C Shah (chartered accountancy firm bearing Vigilance Commissioner’s guidelines under the overall
registration number 109818W, was appointed by the supervision of the Central Vigilance Officer (CVO) of SIDBI.
Comptroller and Auditor General (CAG) of India as the
Statutory Auditors of MUDRA, to conduct the audit of the The CVO in-charge is submitting a monthly report to the
FY 2019-20. CVO, SIDBI.
Secretarial Auditors Rbi Guidelines

As required under Section 204 of the Companies Act, As a Systemically Important Non-Deposit taking Non-
2013, the Board has appointed Deependra Omprakash Banking Finance Institution (NDSI), your Company always
Shukla, Practising Company Secretary to undertake aims to operate in compliance with applicable RBI laws
secretarial audit of your Company for FY 2019-20. and regulations, and employs its best efforts towards
achieving the same.
Supplementary Audit by Cag
Supplementary audit of your Company was undertaken by
the Indian Audit and Accounts Department (IAAD), Office Right to Information Act, 2005
of the Principal Director of Commercial Audit, from July 06, During the year under review, your Company has received
2020, to July 15, 2020. The information sought by IAAD, 106 Right to Information (RTI) applications through DFS,
along with audited financial statements for FY 2019-20, RBI, Mantralaya, SIDBI and direct under the RTI Act, 2005,
was duly furnished to their office. inquiring about PMMY and the MUDRA schemes. All
applications were disposed of by your Company within the
Based on the audit, the Office of the Principal Director prescribed timeframe.
of Commercial Audit, vide letter dated August 14, 2020,
has issued an Audit Certificate with NIL observation. Conservation of Energy; Foreign Exchange
A copy of the letter is enclosed with the Audited Earnings and Outgo
Financial Statements. The particulars required under Section 134(m) of the
Companies Act, 2013, in respect of conservation of
Internal Auditors
energy do not apply to your Company and hence are not
In terms of requirements under Section 139 of the
included in this report, considering the nature of activities
Companies Act, 2013, M/s Kochar & Associates, Chartered
undertaken during the year under review.
Accountants, were appointed as internal auditors of your
Company for FY 2019-20. Your company only consumes electricity in the course of
They submitted monthly internal audits reports, which operational and administrative activities.
have been duly taken into account, and corrective
There had been no earnings and outgo of foreign
actions have been carried out and reported to the
exchange, during the year.
Audit Committee.
Technology Absorption
Corporate Social Responsibility (Csr)
MUDRA is working in a computerised environment. It has
According to the audited financial position, the net worth,
acquired software for general ledger accounts and loan
turnover and paid-up share capital of your Company
management for meeting its comprehensive needs and
has, in 2019-20, crossed the threshold that requires the
major components of both have already been implemented.
constitution of a Corporate Social Responsibility (CSR)
A Portal is in place for collecting and collating data
Committee as laid down under Section 135(1) of the
from all banks/MFIs/ NBFCs pertaining to loans being
Companies Act, 2013.
given by them under PMMY. The portal is quite robust
Your Company has made a contribution of ` 6,71,58,130 and captures a variety of data and generates various kinds
towards the Prime Minister’s National Relief Fund. of reports.
The details of the CSR Policy are available on our website The portal is being used by the GoI for strategizing,
at www.mudra.org.in, follow-up and monitoring of PMMY performance.

Statutory Reports
Acknowledgements Your Board is also thankful to the Auditors of the Company

The Board takes this opportunity to express its sincere and CAG India for their advice and guidance.
appreciation for the excellent patronage received from all
its stakeholders, especially the Department of Financial
Services, Ministry of Finance, Government of India; the
Reserve Bank of India; the Ministry of Corporate Affairs; For and on behalf of the Board of
and, Small Industries Development Bank of India, and Micro Units Development & Refinance Agency Ltd
thank them for their continued support.
Chairman
The Board also expresses its gratitude for the continued
confidence and faith reposed on it by the shareholders.
The Board also acknowledges the zeal, commitment Date: August 21, 2020
and dedication of the executives and employees of the
Place: Mumbai
Company at all levels.

Directors’ Report
Annexures to the Director’s Report

Annexure I
Board of Directors as on March 31, 2020

S. No. Name (Smt./Shri/Ms.) Date of appointment
1. Mohammad Mustafa, IAS Chairman and Director, MUDRA August 28, 2017
Government and SIDBI Nominee
2. Suchindra Misra Joint Secretary, DFS, GoI, GoI Nominee February 19, 2020
3. Manoj Mittal DMD, SIDBI, February 22, 2017
4. Aalok Gupta SIDBI Nominee Director August 07, 2018
MD & CEO, MUDRA
Independent Directors
5. Pillarisetti Satish Executive Director, Sa-Dhan November 10, 2015
6. Arvind Kumar Jain February 08, 2018
7. Harsh Shrivastava September 27, 2019
Cessation during the year 2019-20

S. No. Name Designation Date of appointment Date of cessation
1. Ajay Kumar Kapur Nominee Director March 18, 2015 October 31, 2019
2. Jyotsna Sitling Director June 20, 2015 November 11, 2019
3. Pankaj Jain Nominee Director January 28, 2016 January 30, 2020
Board Meetings held during the year

S. No. Date of meeting Board strength No. of directors present
1. May 28, 2019 9 8
2. September 18, 2019 9 9
3. October 16, 2019 9 7
4. December 20, 2019 7 7
5. March 06, 2020 7 6

Statutory Reports
Board Committees of MUDRA under Companies Act

Audit Committee
Name Position Date of appointment
Shri Pillarisetti Satish Chairman December 01, 2015
Shri Arvind Kumar Jain Member July 18, 2018
Shri Manoj Mittal Member November 22, 2019
Nomination & Remuneration Committee
Shri Suchindra Misra Chairman February 19, 2020
Shri Pillarisetti Satish Member December 01, 2015
Shri Arvind Kumar Jain Member July 18, 2018
Corporate Social Responsibility Committee
Shri Aalok Gupta Chairman August 07, 2018
Shri Pillarisetti Satish Member January 28, 2016
Shri Harsh Shrivastava Member October 15, 2018
Risk Management Committee
Shri Aalok Gupta Chairman August 07, 2018
Shri Arvind Kumar Jain Member April 23, 2018
Shri Pillarisetti Satish Member January 01, 2019

Directors’ Report
SECRETARIAL AUDIT REPORT

For the financial year ended March 31, 2020
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
Annexure II
To (iii)
The Depositories Act, 1996 and the Regulations
The Members and Bye-laws framed thereunder; (Not Applicable to
Micro Units Development & Refinance Agency Ltd the Company)
[MUDRA Ltd.]
SWAVALAMBAN BHAVAN, C-11, G Block, (iv)
Foreign Exchange Management Act, 1999 and
Bandra Kurla Complex, Bandra (East), the rules and regulations made thereunder to the
Mumbai: 400 051, Maharashtra, India. extent of Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings;
I have conducted the secretarial audit of the compliance (Not Applicable to the Company)
of applicable statutory provisions and the adherence to
good corporate practices by Micro Units Development The following Regulations and Guidelines prescribed
& Refinance Agency Limited (hereinafter called ‘the under the Securities and Exchange Board of India Act,
Company’). In light of ongoing COVID-19 pandemic 1992 (‘SEBI Act’): —
situation, due to limitations of physical verifications of
various records, the Secretarial Audit was conducted in a (a)
The Securities and Exchange Board of India
manner that provided us a reasonable basis for evaluating (Substantial Acquisition of Shares and
the corporate conducts/ statutory compliances and Takeovers) Regulations, 2011; (Not Applicable to
expressing our opinion thereon. the Company)
(b)
Based on our verification of the Company’s books,
(Prohibition of Insider Trading) Regulations,
papers, minute books, forms and returns filed and other
1992; (Not Applicable to the Company)
records maintained by the Company in soft copy version,
duly authenticated, and also the information provided
(c)
by the Company, its officers, agents and authorized
(Issue of Capital and Disclosure Requirements)
representatives during the conduct of secretarial audit,
Regulations, 2009 (Not Applicable to the
we hereby report that in our opinion, the Company has,
Company);
during the audit period covering the financial year ended
on March 31, 2020 (‘Audit Period’) complied with the (d)
statutory provisions listed hereunder, subject to specified (Employee Stock Option Scheme and Employee
observation mentioned below, however, the Company Stock Purchase Scheme) Guidelines, 1999
has proper adequate Board-process and compliance- (Not Applicable to the Company);
mechanism in place to the extent, in the manner and
subject to the reporting made hereinafter: (e) The Securities and Exchange Board of India (Issue
and Listing of Debt Securities) Regulations, 2008
I have examined the books, papers, minute books, forms (Not Applicable to the Company);
and returns filed and other records maintained by the
Company for the financial year ended on March 31, 2020 (f)
according to the provisions of: (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies
(i)
The Companies Act, 2013 (the Act) and the rules Act and dealing with client; (Not Applicable
made thereunder; to the Company)
(ii)
The Securities Contracts (Regulation) Act, 1956 (g)
(‘SCRA’) and the rules made thereunder; (Not (Delisting of Equity Shares) Regulations, 2009;
Applicable to the Company) (Not Applicable to the Company); and

Statutory Reports
(h)
The Securities and Exchange Board of India • Adequate notice is given to all Directors to schedule
(Buyback of Securities) Regulations, 1998;(Not the Board Meetings, agenda and detailed notes on
Applicable to the Company); agenda were sent at least seven days in advance,
and a system exists for seeking and obtaining further
(v) Other laws applicable specifically to the Company, information and clarifications on the agenda items
namely: before the meeting and for meaningful participation
(a) *Systemically Important Non-Banking Financial at the meeting.
(Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, • All the resolutions were passed with consent of
2015 read with Master Circular as issued by majority Directors and minutes were prepared
Reserve Bank of India with respect to Returns to accordingly.
be submitted by NBFCs, as may be applicable.
I further report that:

*(Superceded the erstwhile Non-Banking
• there are adequate systems and processes in the
Financial (Non-Deposit Accepting or Holding)
Company commensurate with the size and operations
Companies Prudential Norms (Reserve Bank)
of the company to monitor and ensure compliance
Directions, 2007 vide notification No.DNBR.009/
with applicable laws, rules, regulations and guidelines.
CGM (CDS)-2015 dated March 27, 2015.)
I further report that during the audit period there were

I have also examined compliance with the applicable
no specific events/actions having a major bearing on the
clauses of the following:
Company’s affairs in pursuance of the above referred laws,
(a) Secretarial Standards issued by The Institute of rules, guidelines and standards.
Company Secretaries of India
(b)
The Listing Agreements entered into by the
Company with the Stock Exchanges. (Not
Applicable to the Company)
As explained by the Management of the Company, For: Deep Shukla & Associates
the Company has formed CSR Committee and spent Company Secretaries
the full amounts of CSR during F. Y. 2019-20.
___________________
I further report that:
Deep Shukla
• The Board of Directors of the Company is duly
{Proprietor}
constituted with proper balance of Executive
Directors, Non-Executive Directors and Independent FCS: 5652
Directors. The changes in the composition of the CP NO.5364
Board of Directors that took place during the period UDIN: F005652B000460810
under review were carried out in compliance with the Date: 16.07.2020
provisions of the Act.

Directors’ Report
ANNEXURE TO THE SECRETARIAL AUDIT REPORT
To 3. I have not verified the correctness and appropriateness

The Members of financial records and Books of Accounts of the
Micro Units Development & Refinance Agency Ltd Company.
[MUDRA Ltd.]
4. Wherever required I have obtained the Management
I further state that my said report of the even date has to representation about the compliance of laws, rules
be read along with this letter. and regulations and happenings of events etc.
1. Maintenance of Secretarial/ Statutory Records is the 5. The compliance of the provisions of corporate and
responsibility of the Management of the Company. other applicable laws, rules, regulations, standard is
My responsibility is to express an opinion on these the responsibility of management. My examination is
records based on the audit. limited to the verification of procedures on test basis.
2.
I have followed the audit practices and processes 6. The Secretarial Audit report is neither an assurance
as were appropriate to obtain reasonable assurance as to the future viability of the Company nor of the
about the correctness of the contents of the efficacy or effectiveness with which the management
Secretarial Records. has conducted the affairs of the Company.
For: Deep Shukla & Associates

Company Secretaries
___________________
Deep Shukla
{Proprietor}
FCS: 5652
CP NO.5364
Place: Mumbai
Date: 16.07.2020

Statutory Reports
Annexure III
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
As on period ended on March 31, 2020
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company
(Management and Administration) Rules, 2014
I. REGISTRATION & OTHER DETAILS

1. CIN U65100MH2015PLC274695
2. Registration Date March 18, 2015
3. Name of the Company Micro Units Development & Refinance Agency Limited
4. Category/Sub-category of the Company Public Limited by Shares / Indian Non-Government Company
5. Address of the Registered Office & contact SWAVALAMBAN BHAVAN, C-11, G-Block Bandra Kurla Complex,
details Bandra (E), Mumbai – 400051
6. Whether listed company No.
7. Name, Address & contact details of the Link Intime India Pvt Ltd
Registrar & Transfer Agent, if any. C 101, 247 Park, L.B.S.Marg,
Vikhroli (West),
Mumbai - 400083
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

(All the business activities contributing 10 per cent or more of the total turnover of the company shall be stated)
S. Name and Description of main products/ NIC Code of the Product/ % to total turnover of the
No. services service Company
1 Lending & Refinancing to Banks, NBFCs, 649 100.00

MFIs(Including NBFC-MFIs)
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

S. Name and Address of the Company CIN/GLN % of shares Applicable
No. held Section
1 *Small Industries Development Bank of India N.A 100% Sec. 2 (87)(II)

SIDBI Tower, 15, Ashok Marg, Lucknow - 226001
Uttar Pradesh
*SIDBI is a Development Financial Institution, incorporated under the Small Industries Development Bank of India Act, 1989.

Directors’ Report
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
(i) Category-wise Share Holding
Category of shareholders No. of shares held at the beginning of the No. of shares held at the end of the year %
year [As on April 1, 2019] [As on March 31, 2020] Change
during
Demat Physical Total % of Demat Physical Total % of the
Total Total year
Shares Shares
A. Promoters
(1) Indian
a) Individual/ HUF 0 0 0 0 0 0 0 0 0
b) Central Govt. 0 0 0 0 0 0 0 0 0
c) State Govt.(s) 0 0 0 0 0 0 0 0 0
d) Bodies Corp. 0 0 0 0 0 0 0 0 0
e) Banks/FIs 1675925920 0 1675925920 100.00 1675925920 0 1675925920 100.00 0.00
f) Any other 0 0 0 0 0 0 0 0 0
2) Foreign Holdings
a) Individual 0 0 0 0 0 0 0 0 0
b) Body corporate 0 0 0 0 0 0 0 0 0
Total shareholding of 1675925920 0 1675925920 100.00 1675925920 0 1675925920 100.00 0.00
Promoter (A)
B. Public Shareholding
1. Institutions
a) Mutual Funds 0 0 0 0 0 0 0 0 0
b) Banks/FIs 0 0 0 0 0 0 0 0 0
c) Central Govt. 0 0 0 0 0 0 0 0 0
d) State Govt.(s) 0 0 0 0 0 0 0 0 0
e) Venture Capital Funds 0 0 0 0 0 0 0 0 0
f) Insurance companies 0 0 0 0 0 0 0 0 0
g) FIIs 0 0 0 0 0 0 0 0 0
h) Foreign Venture Capital 0 0 0 0 0 0 0 0 0
Funds
i) Others (specify) 0 0 0 0 0 0 0 0 0
Sub-total (B)(1): 0 0 0 0 0 0 0 0 0
2. Non-Institutions
a) Bodies Corporate
i) Indian 0 0 0 0 0 0 0 0 0
ii) Overseas 0 0 0 0 0 0 0 0 0
b) Individuals 6 0 6 0.01 6 0 6 0.01 0
i) Individual 6 0 6 0.01 6 0 6 0.01 0
shareholders
holding nominal
share capital up to
` 1 lakh
ii) Individual 0 0 0 0 0 0 0 0 0
shareholders
holding nominal
share capital in
excess of ` 1 lakh

Statutory Reports
Category of shareholders No. of shares held at the beginning of the No. of shares held at the end of the year %
year [As on April 1, 2019] [As on March 31, 2020] Change
during
Demat Physical Total % of Demat Physical Total % of the
Total Total year
Shares Shares
c) Others (specify) 0 0 0 0 0 0 0 0 0
Non-resident Indians 0 0 0 0 0 0 0 0 0
Overseas corporate bodies 0 0 0 0 0 0 0 0 0
Foreign nationals 0 0 0 0 0 0 0 0 0
Clearing members 0 0 0 0 0 0 0 0 0
Trusts 0 0 0 0 0 0 0 0 0
Foreign bodies - D R 0 0 0 0 0 0 0 0 0
Sub-total (B)(2):- 0 0 0 0 0 0 0 0 0
Total Public Shareholding 0 0 0 0 0 0 0 0 0
(B)=(B)(1)+ (B)(2)
C. Shares held by 0 0 0 0 0 0 0 0 0
custodian for GDRs &
ADRs
Grand total (A+B+C) 1675925926 0 1675925926 100 1675925926 0 1675925926 100 0
(ii) Shareholding of Promoter

SN Shareholder’s Shareholding at the beginning of the year Shareholding at the end of the year % change in
Name No. of shares % of total % of shares No. of shares % of total % of shares shareholding
shares pledged/ Shares pledged/ during the
of the encumbered to of the encumbered year
company total shares company to total shares
1 Small Industries 1675925920 100 0 1675925920 100 0 0.00
Development
Bank of India
TOTAL : 1675925920 100 0 1675925920 100 0 0.00
(iii) Change in Promoters’ Shareholding
Sl. Particulars Shareholding at the beginning Cumulative shareholding during

No. of the year the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
1 Small Industries Development Bank of India
At the beginning of the year 1,675,925,920 100 1,675,925,920 100
At the end of the year 1,675,925,920 100 1,675,925,920 100

Directors’ Report
(iv) Shareholding Pattern of top ten Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs)
Sl. Shareholding at Date Increase/ Reason Cumulative

No. the beginning of decrease in shareholding during
the year shareholding the year & at the
end of the year
No. of % of total No. of % of total
shares shares shares shares
of the of the
company company
1 Shri S. N. Singh 1 0 July 31, 2017 0 - 1 0
(Representative of
SIDBI)
2 Shri Kailash 1 0 July 31, 2017 0 - 1 0

Chander Bhanoo
(Representative of
SIDBI)
3 Shri Praveen Kumar 1 0 May 28, 2019 -1 Transfer of 0 0
Agarwal Shares
(Representative of
SIDBI)
4 Shri Vinay S Hedaoo 1 0 July 27, 2018 0 - 1 0
(Representative of
SIDBI)
5 Shri Anil Kulkarni 1 0 July 27, 2018 0 - 1 0
(Representative of
SIDBI)
6 Smt Y. Munni Kumari 1 0 July 27, 2018 0 - 1 0
(Representative of
SIDBI)
7 Ravi Tyagi 0 0 July 27, 2018 1 Transfer of 1 0
(Representative of Shares
SIDBI)
(v) Shareholding of Directors and Key Managerial Personnel
SN Shareholding of each Director and Key Shareholding at the Cumulative shareholding

Managerial Personnel beginning during the year
of the year
No. of shares % of total No. of shares % of total

shares of the shares of the
company company
1. - - 0.00 - 0.00

Statutory Reports
V) INDEBTEDNESS: of the Company including interest outstanding/accrued but not due for payment.
Secured loans Unsecured Deposits Total indebtedness
excluding loans
deposits
Indebtedness at the beginning of

the financial year
i) Principal amount - - 1,50,00,00,00,000.00 1,50,00,00,00,000.00
ii) Interest due but not paid - - 1,34,63,08,318.00 1,34,63,08,318.00
iii) Interest accrued but not due - - 0.00 0.00
Total (i+ii+iii) - - 1,51,34,63,08,318.00 1,51,34,63,08,318.00
Change in indebtedness during
the financial year
* Addition - - 50,00,00,00,000.00 50,00,00,00,000.00
Reduction - - 31,25,00,00,000.00 31,25,00,00,000.00
Net change - - 18,75,00,00,000.00 18,75,00,00,000.00
Indebtedness at the end of the
financial year
i) Principal amount - - 1,68,75,00,00,000.00 1,68,75,00,00,000.00
ii) Interest due but not paid - - 1,50,62,02,730.00 1,50,62,02,730.00
iii) Interest accrued but not due - - 0.00 0.00
Total (i+ii+iii) - - 1,70,25,62,02,730.00 1,70,25,62,02,730.00
* Deposits under priority sector shortfall from Banks.
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager
SN. Particulars of remuneration Name of MD/WTD (CEO)/ Total amount

Manager (2019-20)
1 Gross salary Shri Aalok Gupta (MD &
CEO)
(a)
Salary as per provisions contained in Section ` 70,00,000 ` 70,00,000
17(1) of the Income Tax Act, 1961
(b)
Value of perquisites under Section 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) ` 70,00,000 ` 70,00,000
Ceiling as per the Act

Directors’ Report
B. Remuneration to other directors

SN. Particulars of remuneration Name of Directors Total amount
1 Independent Directors Shri Shri Arvind Shri Harsh
Pillarisetti Kumar Jain Shrivastava
Satish
Fee for attending Board/ Committee ` 2,00,000 ` 5,40,000 ` 2,20,000 ` 9,60,000
meetings
Commission - - - -
Others, please specify - - - -
Total (1) ` 2,00,000 ` 5,40,000 ` 2,20,000 ` 9,60,000
2 Other Non-Executive Directors - - - -
Fee for attending board committee - - - -
meetings
Commission - - - -
Others, please specify - - - -
Total (2) - - - -
Total (B)=(1+2) - - -
Total Managerial
Remuneration
Overall Ceiling as per the Act Lower than 3% of the net profit of the Company calculated as per
Section 198 of Companies Act, 2013
C. Remuneration to Key Managerial Personnel Other than MD/Manager/WTD

SN Particulars of remuneration Key Managerial Personnel
Chief Financial Chief Financial Company Total
Officer Officer Secretary
Smt Rajni Sood Shri Anjani Ms Pooja
(upto December Kumar Srivastava Kukreti
11, 2019) (December 20,
2019 to present)
1 Gross salary
(a) Salary as per provisions ` 22,25,192.70 ` 8,99,994.58 ` 8,00,000 ` 39,25,187.28
contained in Section 17(1) of
the Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) ` 3,55,049.55 ` 3,04,381.51 - ` 6,59,431.06
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 ` 3,57,603.36 ` 1,54,108.83 - ` 5,11,712.2
- Perk Accommodation and
Encashment of OL
Total ` 29,37,845.62 ` 13,58,484.92 ` 8,00,000 ` 5096330.54
Note: - The details of CEO’s remuneration are given under item No. VI. A above.

Statutory Reports
VII. Penalties/Punishment/Compounding of Offences

Type Section of the Brief Details of penalty Authority Appeal
Companies description / punishment/ [RD/NCLT/ made,
Act compounding fees Court] if any (give
imposed details)
A. Company
Penalty
Punishment
Compounding
B. Directors
Penalty
Punishment NIL
Compounding
C. Other officers in default
Penalty
Punishment
Compounding
FOR & ON BEHALF OF THE BOARD OF DIRECTORS

Micro Units Development & Refinance Agency Limited
Chairman
Place: Mumbai
Date: August 21, 2020

Standalone
Auditor’s Report Under “Non-Banking

Financial Companies Auditor’s Report
(Reserve Bank) Directions, 2016”
To, assets to total assets of the company is 45.89%,
The Board of Directors of which is below the RBI stipulated norm of 50%. This
Micro Units Development & Refinance Agency Limited is primarily due to the tranche of PSS funds of ` 2,500
crore received in February 2020, which could not be
1. e have audited the financial statements of Micro
W fully disbursed in March due to COVID-19 lockdown.
Units Development & Refinance Agency Limited, As a result, the major fund has been deployed in Fixed
which comprise the Balance Sheet as at March 31, Deposits. The Company is registered with the RBI as
2020, the Statement of Profit and Loss (including an NBFI without accepting public deposits vide CoR
Other Comprehensive Income), the Statement No. B-13.02190 dated June 13, 2017.
of Cash Flows and the Statement of Changes
in Equity, for the year then ended, and notes to i.
Based on the Principal Business Criteria
the financial statements including a summary of (Financial asset / income pattern) as determined
significant accounting policies and other explanatory in accordance with the audited financial
information, and issued our audit opinion vide statements for the year ended March 31, 2020,
our Independent Auditors’ Report dated June 04, the Company is entitled to continue to hold the
2020 thereon. These financial statements are the CoR subject to the non-compliance as mentioned
responsibility of the Company’s management. Our in clause (i) above.
responsibility is to express an opinion of these
financial statements based on our audit. Our audit ii. As determined in accordance with the audited
was conducted in the manner specified in paragraph financial statements for the year ended
6 – ‘Auditors’ Responsibility’- of the said report. March 31, 2020, the non-banking financial
company is meeting the required net owned
2. As required by the Non-Banking Financial Companies fund requirement as laid down in accordance
Auditor’s Report (Reserve Bank) Directions, 2016 with Master Direction - Non-Banking Financial
(‘the Directions’) issued by Reserve Bank of India Company - Systemically Important Non-Deposit
(‘RBI’), based on our audit referred to in paragraph 1 taking Company and Deposit taking Company
above and information and explanations given to us, (Reserve Bank) Directions, 2016.
which to the best of our knowledge and belief were
necessary for this purpose, we furnish hereunder our B. Item 3(C) of the Directions:
report on the matters specified in paragraphs 3 and i. The Board of Directors has passed a resolution
4 of the said Directions, to the extent applicable to dated May 28, 2019 for the non-acceptance of
the company: public deposits.
A. Item 3(A) of the Directions: ii.

The Company has not accepted any public
3. The Company is engaged in the business of a non- deposits during the year under report.
banking financial institution (‘NBFI’), as defined
in section 45-I (a) of the Reserve Bank of India Act, iii. The Company has complied with the Prudential
1934 (‘the Act’) and most of the time during the year Norms relating to income recognition, accounting
meeting the Principal Business Criteria (Financial standards, assets classification and provisioning
asset/ income pattern) as laid down vide RBI’s for bad and doubtful debts, as applicable to it
press release dated April 08, 1999, and as per the during the financial year ended March 31, 2020
Master Direction - Non-Banking Financial Company - in terms of Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company Non-Systemically Important Non-Deposit taking
and Deposit taking Company (Reserve Bank) Company (Reserve Bank) Directions, 2016.
Directions, 2016, requiring it to obtain a Certificate
of Registration (‘CoR’) under section 45-IA of the iv.
In respect of Systemically Important Non-
Act. However, as on March 31, 2020, the financial deposit taking NBFCs as defined in Non-Banking

Financial Statements
Financial Company - Systemically Important 4. This report is issued solely for reporting on the matters
Non-Deposit taking Company and Deposit taking specified in paragraphs 3 and 4 of the Directions,
Company (Reserve Bank) Directions, 2016: and is not intended to be used or distributed for any
(a)
The capital adequacy ratio as disclosed other purpose.
in the return submitted to the Bank in
form NBS- 7, has been correctly arrived at For V. C. Shah & Co.
this date and whether such ratio is in Chartered Accountants
compliance with the minimum CRAR Firm Registration No. 109818W
prescribed by the Bank;
(b)
The company has furnished to the Bank Viral J. Shah
the annual statement of capital funds, Partner
risk assets/exposures and risk asset ratio Membership No.: 110120
(NBS-7) within the stipulated period. Mumbai, June 04, 2020 UDIN: 20110120AAAACU7405

Standalone
Independent Auditor’s Report

To the members of Micro Units Development & Refinance Agency Limited
Report on the Audit of the Financial Statements as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further
Opinion
described in the ‘Auditor’s Responsibilities for the Audit
We have audited the accompanying financial statements of
of the Financial Statements’ section of our report. We are
Micro Units Development & Refinance Agency Limited
independent of the Company in accordance with the ‘Code
(“the Company”), which comprise the Balance Sheet
of Ethics’ issued by the Institute of Chartered Accountants
as at March 31, 2020, the Statement of Profit and Loss
of India (ICAI) together with the ethical requirements
(including Other Comprehensive Income), the Statement
that are relevant to our audit of the financial statements
of Cash Flows and the Statement of Changes in Equity, for
under the provisions of the Act and the Rules thereunder,
the year then ended, and notes to the financial statements
and we have fulfilled our other ethical responsibilities in
including a summary of significant accounting policies and
accordance with these requirements and the ICAI’s Code
other explanatory information
of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
In our opinion and to the best of our information and
for our audit opinion on the financial statements.
according to the explanations given to us, the aforesaid
financial statements give the information required by
Key Audit Matter
the Companies Act, 2013 (“the Act”) in the manner so
Key audit matter are those matters that, in our professional
required and give a true and fair view in conformity with
judgement, were of most significance in our audit of the
the accounting principles generally accepted in India
standalone financial statements of the current period.
including the Indian Accounting Standards (“Ind AS”), of
These matters were addressed in the context of our audit
the state of affairs of the Company as at March 31, 2020,
of the standalone financial statements as whole, and in
and, total comprehensive income, its cash flows and the
forming our opinion thereon, and we do not provide a
changes in equity for the year ended on that date.
separate opinion on these matters. We have determined
the matters described below to be the key audit matters to
Basis for Opinion
be communicated in our report.
We conducted our audit of the financial statements
in accordance with the Standards on Auditing (SAs),
Sr. Key Audit Matter Auditor’s Response

No.
1. Recognition and measurement of impairment on In view of the significance of the matter, the following
loans and advances involve significant management audit procedures were applied in this area, among
judgement. With the applicability of IND AS 109, others to obtain sufficient appropriate audit evidence:
credit loss assessment is now based on expected Design / controls
credit loss (ECL) model. • Evaluated the appropriateness of the impairment
The impairment allowance is derived from estimates principles based on the requirements of IND AS 109
including the historical default and loss ratios. • Assessed the design and implementation of key internal
Management exercises judgement in determining financial controls over loan impairment process used to
the quantum of loss based on a range of factors. calculate the impairment charge.
The most significant areas are: • Tested management review controls over measurement
• Segmentation of loan book; of impairment allowances and disclosures in financial
• Loan staging criteria; statements. Substantives tests
• Calculation of probability of default / Loss given • Focused was placed on appropriate application of
default; accounting principles, validating completeness and
accuracy of the data and reasonableness of assumptions
• Consideration of probability weighted scenarios
used in the model.
and forward looking macro-economic factors.
• Test of details over calculation of impairment
• Compliance of disclosures with the applicable
allowance for assessing the completeness, accuracy
accounting standards
and relevance of data

Information other than the Financial Statements Those Board of Directors are also responsible for
and Auditor’s Report Thereon overseeing the Company’s financial reporting process.
The Company’s Board of Directors is responsible for the
other information. The other information comprises the Auditor’s Responsibilities for the Audit of the
information included in the Directors’ Report, but does Financial Statements
not include the financial statements and our auditor’s Our objectives are to obtain reasonable assurance about
report thereon. whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
Our opinion on the financial statements does not cover and to issue an auditor’s report that includes our opinion.
the other information and we do not express any form of Reasonable assurance is a high level of assurance, but is
assurance conclusion thereon. not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when
In connection with our audit of the financial statements, it exists. Misstatements can arise from fraud or error and
our responsibility is to read the other information identified are considered material if, individually or in the aggregate,
above and, in doing so, consider whether such other they could reasonably be expected to influence the
information is materially inconsistent with the financial economic decisions of users taken on the basis of these
statements or our knowledge obtained in the audit or financial statements.
otherwise appears to be materially misstated. If, based on
the work we have performed, we conclude that there is a As part of an audit in accordance with SAs, we exercise
material misstatement of this other information, we are professional judgment and maintain professional
skepticism throughout the audit. We also:
required to report that fact. We have nothing to report in
this regard. • Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud
Responsibility of Management and those charged or error, design and perform audit procedures
with governance for the Financial Statements responsive to those risks, and obtain audit evidence
The Company’s Board of Directors is responsible for the that is sufficient and appropriate to provide a basis
matters stated in section 134(5) of the Act with respect for our opinion. The risk of not detecting a material
to the preparation of these financial statements that give misstatement resulting from fraud is higher than for
a true and fair view of the financial position, financial one resulting from error, as fraud may involve collusion,
performance including other comprehensive income, cash forgery, intentional omissions, misrepresentations, or
flows and changes in equity of the Company in accordance the override of internal control.
with the accounting principles generally accepted in India,
• Obtain an understanding of internal control relevant
including Ind AS specified under section 133 of the Act. to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section
This responsibility also includes maintenance of adequate
143(3)(i) of the Act, we are also responsible for
accounting records in accordance with the provisions of expressing our opinion on whether the Company has
the Act for safeguarding of the assets of the Company and adequate internal financial controls system in place
for preventing and detecting frauds and other irregularities; and the operating effectiveness of such controls.
selection and application of appropriate accounting
policies; making judgments and estimates that are • Evaluate the appropriateness of accounting policies
reasonable and prudent; and the design, implementation used and the reasonableness of accounting estimates
and maintenance of adequate internal financial controls, and related disclosures made by management.
that were operating effectively for ensuring the accuracy • Conclude on the appropriateness of management’s
and completeness of the accounting records, relevant use of the going concern basis of accounting and,
to the preparation and presentation of the financial based on the audit evidence obtained, whether
statements that give a true and fair view and are free from a material uncertainty exists related to events or
material misstatement, whether due to fraud or error. conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
In preparing the financial statements, management If we conclude that a material uncertainty exists,
is responsible for assessing the Company’s ability to we are required to draw attention in our auditor’s
continue as a going concern, disclosing, as applicable, report to the related disclosures in the financial
matters related to going concern and using the going statements or, if such disclosures are inadequate, to
concern basis of accounting unless management either modify our opinion. Our conclusions are based on
intends to liquidate the Company or to cease operations, the audit evidence obtained up to the date of our
or has no realistic alternative but to do so. auditor’s report. However, future events or conditions

Standalone
may cause the Company to cease to continue as a (f)

With respect to the adequacy of the internal
going concern. financial controls over financial reporting of
• Evaluate the overall presentation, structure and the Company with reference to these financial
content of the financial statements, including the statements and the operating effectiveness of
disclosures, and whether the financial statements such controls, refer to our separate Report in
represent the underlying transactions and events in a “Annexure B” to this report. Our report expresses
manner that achieves fair presentation. an unmodified opinion on the adequacy and
operating effectiveness of the Company’s internal
We communicate with those charged with governance
financial controls over financial reporting;
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including (g) With respect to the other matters to be included
any significant deficiencies in internal control that we in the Auditor’s Report in accordance with Rule
identify during our audit. 11 of the Companies (Audit and Auditors) Rules,
We also provide those charged with governance with 2014, as amended in our opinion and to the
a statement that we have complied with relevant best of our information and according to the
ethical requirements regarding independence, and explanations given to us:
to communicate with them all relationships and other
i. The Company does not have any pending
matters that may reasonably be thought to bear on our
litigations as at March 31, 2020 which would
independence, and where applicable, related safeguards.
impact its financial position;
Report on Other Legal and Regulatory
ii. The Company did not have any long-term
Requirements
contracts including derivative contracts
1.
As required by the Companies (Auditor’s Report)
for which there were any material
Order, 2016 (“the order”), issued by the Central
Government of India in terms of Sub-Section (11) of foreseeable losses;
section 143 of the Act, we give in the “Annexure A”
iii. There were no amounts which were required
a statement on the matters specified in paragraphs 3
to be transferred to the Investor Education
and 4 of the order.
and Protection Fund by the Company.
2. As required by Section 143(3) of the Act, based on
3. As required by the revised directions under section
our audit of the financial statements, we report that:
143(5) of the Act we report that;
(a) We have sought and obtained all the information
and explanations which to the best of our i. The company has system in place to process all
knowledge and belief were necessary for the the accounting transactions through IT system.
purposes of our audit; There is no accounting transaction processed
outside IT system.
(b)
In our opinion, proper books of account as
required by law have been kept by the Company ii. There are no cases of waiver of fees/ Reversal of
so far as it appears from our examination of accounted fees which was due but not received/
those books; written off.
(c) The Balance Sheet, the Statement of Profit and
Loss including the Other Comprehensive Income, iii. The entity has received funds i.e. reimbursement
the Statement of Cash Flows and Statement of of public expenditure incurred on Pradhan Mantri
Changes in Equity dealt with by this Report are in Mudra Yojna (PMMY) from central agencies
agreement with the books of account; (Department of finance India). Further Mudra has
not received any fund from state government.
(d) In our opinion, the aforesaid financial statements
comply with Ind AS specified under Section 133
For V. C. Shah & Co.
of the Act;
Chartered Accountants
(e)
On the basis of the written representations Firm Registration No. 109818W
received from the directors as on March 31, 2020
taken on record by the Board of Directors, none Viral J. Shah
of the directors is disqualified as on March 31, Partner
2020 from being appointed as a director in terms Membership No.: 110120
of Section 164 (2) of the Act; Mumbai, June 04, 2020 UDIN: 20110120AAAACU7405

Annexure A to the Independent Auditors’ Report
(Referred to in paragraph 1 under ‘Report on Other Legal of the clause 3(v) of the companies (Auditors’ Report)
and Regulatory Requirements’ of our report of even date to Order, 2016 are not applicable to the Company.
the members of Micro Units Development & Refinance
Agency Limited for the year ended March 31, 2020) vi. According to the information and explanations given
to us, the Central Government has not specified the
i. (a)
The Company has maintained proper records maintenance of cost records under section 148 (1)
showing full particulars including quantitative of the Act, for any of the services rendered by the
details and situation of fixed assets. Company. Accordingly, reporting under clause 3(vi)
of the Order is not applicable to the Company.
(b) The Company has a program of verification to
cover all the item of fixed assets in a phased vii. (a) The Company is generally regular in depositing
manner which, in our opinion, is reasonable with appropriate authorities undisputed statutory
having regards to the size of the company and dues including provident fund, employees’
the nature of its assets. Pursuant to program, state insurance, income tax, sales tax, service
certain fixed assets were physically verified tax, goods and services tax, value added tax,
by the management during the year. According custom duty, excise duty, cess and other material
to the information and explanations given to statutory dues where applicable to it.
us, no material discrepancies were noticed on
such verification. There were no undisputed amounts payable
in respect of provident fund, employees’ state
(c) According to the information and explanations insurance, income-tax, sales-tax, service tax,
given to us and on the basis of our examination of goods and service tax, duty of customs, duty of
the records of the company, the Company does excise, value added tax, cess and other material
not have any immovable property as at March 31, statutory dues in arrears as at March 31, 2020 for
2020 included under the head Property, Plant a period of more than six months from the date
and Equipment. they became payable.
ii.
The Company is a Non-banking Finance Company According to the information and explanations
and has not dealt with any goods and the company given to us, there are no dues of income tax, sales
does not hold any inventory during the period under tax, service tax, goods and services tax, customs
audit. Accordingly, the provisions of clause 3 (ii) of or excise duty or value added tax which have not
the companies (Auditor’s Report) Order 2016 is not been deposited on account of any dispute.
applicable to the Company.
viii.
To the best of our knowledge and according to
iii.
The company has not granted any loans, secured the information and explanations given to us, the
or unsecured, to parties covered in the register Company has not defaulted in repayment of loans
maintained u/s 189 of the companies Act, 2013 or borrowings to banks, financial institutions and
government. Accordingly, clause (viii) of paragraph 3
iv.
In our opinion and according to the information of the Order is not applicable.
and explanations given to us, there are no loans,
investments, guarantees and securities granted in ix.
The Company has not raised moneys by way of
respect of which provisions of section 185 and 186 of initial public offer or further public offer (including
the Companies Act 2013 are applicable. Accordingly, debt instruments) or term loans during the year.
the provisions of Clause (iv) of paragraph 3 of the said Accordingly, clause (ix) of paragraph 3 of the Order is
Order is not applicable to the Company. not applicable.
v. The Company has not accepted any deposits from x. During the course of our examination of the books and
the public within the meaning of Sections 73 to 76 of records of the Company, carried out in accordance with
the Act and the Companies (Acceptance of Deposits) the generally accepted auditing practices in India, and
Rules, 2014 (as amended). Accordingly, the provisions according to the information and explanations given

Standalone
to us, no instance of material fraud by the Company convertible debentures during the year. Accordingly,
or on the Company by its officers or employees, has the provisions of Clause (xiv) of paragraph 3 of the
been noticed or reported during the year, nor have we Order are not applicable to the Company.
been informed of any such case by the Management.
xv. According to the information and explanation given
xi.
The Managerial Remuneration has been paid in to us and based on our examination of the records
accordance with the requisite approvals mandated of the Company, the Company has not entered into
by the provisions of the section 197 read with any non-cash transactions with directors or persons
Schedule V to the companies Act, 2013. connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable to the Company.
xii. The Company is not a Nidhi Company. Accordingly,
clause (xii) of paragraph 3 of the Order is not applicable.
xvi.
The company is registered and the holding the
certificate of registration (CoR) under Section 45-IA of
xiii.
According to the information and explanations
the Reserve Bank of India Act, 1934. The company is
given to us, transactions with the related parties are
registered with the RBI as a “NBFI without accepting
in compliance with section 188 of the Act, where
applicable and the details of related party transactions Public Deposits” vide CoR No. N-14.03313 dated
have been disclosed in the notes to the financial April 06, 2015.
statements, as required by the applicable accounting
standards. The provisions of section 177 are not For V. C. Shah & Co.
applicable to the Company and accordingly reporting Chartered Accountants
under clause (xiii) in so far as it relates to section 177 Firm Registration No. 109818W
of the Act is not applicable to the Company and hence
not commented upon. Viral J. Shah
Partner
xiv. The Company has not made any preferential allotment Membership No.: 110120
or private placement of shares or fully or partly Mumbai, June 04, 2020 UDIN: 20110120AAAACU7405

Annexure B to the Independent Auditor’s Report
(Referred to in paragraph 2(f) under ‘Report on Other Legal were established and maintained and if such controls
and Regulatory Requirements’ of our report of even date operated effectively in all material respects.
to the members of Micro Units Development & Refinance
Agency Limited for the year ended March 31, 2020) Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
Report on the Internal Financial Controls controls system over financial reporting and their
Over Financial Reporting under Clause (i) of operating effectiveness. Our audit of internal financial
Sub-section 3 of Section 143 of the Companies controls over financial reporting included obtaining an
Act, 2013 (“the Act”) understanding of internal financial controls over financial
We have audited the internal financial controls over reporting, assessing the risk that a material weakness
financial reporting of Micro Units Development & exists, and testing and evaluating the design and operating
Refinance Agency Limited (“the Company”) as of effectiveness of internal control based on the assessed
March 31, 2020 in conjunction with our audit of the risk. The procedures selected depend on the auditor’s
financial statements of the Company for the year ended judgment, including the assessment of the risks of material
on that date. misstatement of the financial statements, whether due to
fraud or error.
Management’s Responsibility for Internal
Financial Controls We believe that the audit evidence we have obtained is
The Company’s management is responsible for establishing sufficient and appropriate to provide a basis for our audit
and maintaining internal financial controls based on the opinion on the internal financial controls system over
internal control over financial reporting criteria established financial reporting.
by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Meaning of Internal Financial Controls Over
Internal Financial Controls over Financial Reporting issued Financial Reporting
by the Institute of Chartered Accountants of India (‘ICAI’). A company’s internal financial control over financial
These responsibilities include the design, implementation reporting is a process designed to provide reasonable
and maintenance of adequate internal financial controls assurance regarding the reliability of financial reporting
that were operating effectively for ensuring the orderly and the preparation of financial statements for external
and efficient conduct of its business, including adherence purposes in accordance with generally accepted
to company’s policies, the safeguarding of its assets, accounting principles. A company’s internal financial
the prevention and detection of frauds and errors, the control over financial reporting includes those policies and
accuracy and completeness of the accounting records, procedures that (1) pertain to the maintenance of records
and the timely preparation of reliable financial information, that, in reasonable detail, accurately and fairly reflect the
as required under the Act. transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are
Auditors’ Responsibility recorded as necessary to permit preparation of financial
Our responsibility is to express an opinion on the statements in accordance with generally accepted
Company’s internal financial controls over financial accounting principles, and that receipts and expenditures
reporting with reference to these financial statements of the company are being made only in accordance with
based on our audit. We conducted our audit in accordance authorisations of management and directors of the
with the Guidance Note on Audit of Internal Financial company; and (3) provide reasonable assurance regarding
Controls over Financial Reporting (the “Guidance Note”) prevention or timely detection of unauthorised acquisition,
and the Standards on Auditing deemed to be prescribed use, or disposition of the company’s assets that could have
under section 143(10) of the Act, to the extent applicable a material effect on the financial statements.
to an audit of internal financial controls, both issued by
the ICAI. Those Standards and the Guidance Note require Inherent Limitations of Internal Financial
that we comply with ethical requirements and plan and Controls Over Financial Reporting
perform the audit to obtain reasonable assurance about Because of the inherent limitations of internal financial
whether adequate internal financial controls over financial controls over financial reporting, including the possibility
reporting with reference to these financial statements of collusion or improper management override of controls,

Standalone
material misstatements due to error or fraud may occur as at March 31, 2020, based on the internal control over
and not be detected. Also, projections of any evaluation financial reporting criteria established by the Company
of the internal financial controls over financial reporting considering the essential components of internal control
to future periods are subject to the risk that the internal stated in the Guidance Note on Audit of Internal Financial
financial control over financial reporting may become Controls Over Financial Reporting issued by the Institute
inadequate because of changes in conditions, or that of Chartered Accountants of India.
the degree of compliance with the policies or procedures
may deteriorate. For V. C. Shah & Co.
Chartered Accountants
Opinion Firm Registration No. 109818W
In our opinion, to the best of our information and according
to the explanations given to us, the Company has, in all Viral J. Shah
material respects, an adequate internal financial controls Partner
system over financial reporting and such internal financial Membership No.: 110120
controls over financial reporting were operating effectively Mumbai, June 04, 2020 UDIN: 20110120AAAACU7405

Balance Sheet
as at March 31, 2020
(` in lakhs)
Particulars Note As at As at
No. March 31, 2020 March 31, 2019
Assets
Financial Assets
(a) Cash and cash equivalents 4 4,21,125.99 1,73,461.18
(b) Bank balances other than cash and cash equivalents 5 6,09,957.15 3,13,301.98
(c) Loans 6 9,00,400.11 11,83,404.34
(d) Investments 7 18,727.22 40,040.37
Non Financial Assets
(a) Current Tax Assets (Net) 8 2,028.10 498.77
(b) Deferred Tax Assets (Net) 9 9,739.04 10,950.61
(c) Property, Plant and Equipment 10 4.09 7.78
(d) Intangible assets under development 47.50 47.50
(e) Other Intangible assets 11 0.55 1.42
(f) Other non-financials assets 12 - 1,358.95
Total Assets 19,62,029.75 17,23,072.91
LIABILITIES AND EQUITY
Liabilities
Financial Liabilities
(a) Payables 13
I) Trade payables - -
II) Other payables 251.32 248.48
(b) Deposits 14 17,02,562.03 15,13,463.08
(c) Other financial liabilities 15 13.12 4.62
Non-Financial Liabilities
(a) Other non-financial liabilities 16 28,269.13 -
Total Liabilities 17,31,095.59 15,13,716.18
Equity
(a) Equity Share capital 17 1,67,592.59 1,67,592.59
(b) Other Equity 18 63,341.56 41,764.14
Total Equity 2,30,934.15 2,09,356.73
Total Liabilities and Equity 19,62,029.75 17,23,072.91
See accompanying Notes forming part of the Financial Statements 1 to 65
In terms of our report attached of even date

For V. C. Shah & Co
Chartered Accountants For and on behalf of the Board of Directors
Firm No.: 109818W
Sd/- Sd/- Sd/-
Viral J. Shah Aalok Gupta Manoj Mittal
Partner MD & CEO Director
Membership No.: 110120 DIN: 08195214 DIN: 01400076
Sd/- Sd/-
Anjani Kumar Srivastava Pooja Kukreti
Chief Financial Officer Company Secretary
Place: Mumbai
Date: June 04, 2020

Standalone
Statement of Profit and Loss

for the year ended March 31, 2020
(` in lakhs)
Particulars Note For the For the
No. year ended year ended
March 31, 2020 March 31, 2019
I. Revenue from operations
Interest Income 19 1,10,334.29 78,358.40
Fees and commission Income 20 476.25 385.59
Net gain on fair value changes 21 299.02 7,347.66
Total Revenue from operations 1,11,109.56 86,091.65
II. Other Income 22 80.61 1.13
III. Total Income (I+II) 1,11,190.17 86,092.79
IV. Expenses
Finance costs 23 65,872.35 51,494.52
Impairment on financial instruments 24 6,826.15 28,234.02
Employee Benefits Expenses 25 712.70 653.57
Depreciation, amortization and impairment 26 4.99 9.09
Others expenses 27 4,034.56 581.94
Total Expenses (IV) 77,450.75 80,973.14
V. Profit/(loss) before tax (III-IV) 33,739.42 5,119.65
VI. Tax expense: 28
Current tax 10,546.33 11,634.87
Deferred tax 1,211.57 (9,863.34)
VII. Profit/(loss) for the year (VI-VII) 21,981.52 3,348.12
Other Comprehensive Income
A. Items that will not be reclassified to profit or loss - -
B. Items that will reclassified to profit or loss - -
Other comprehensive income (A+B) - -
Total comprehensive income 21,981.52 3,348.12
VIII. Earnings per equity share 29
Basic (`) 1.31 0.20
Diluted (`) 1.31 0.20
The accompanying notes form an integral part of the financial statements.

For V. C. Shah & Co
Firm No.: 109818W
Sd/- Sd/- Sd/-
Sd/- Sd/-
Place: Mumbai
Date: June 04, 2020

Statement of Cash Flows

(` in lakhs)
Particulars Year ended Year ended
March 31, 2020 March 31, 2019
I. CASH FLOW FROM OPERATING ACTIVITIES:
Profit before tax 33,739.42 5,119.65
Net Profit Before Taxes
Adjustment for:
Interest Income from Fixed Deposits & CDs (49,099.29) (21,312.39)
Profit on sale Mutual Funds (299.02) (7,347.66)
Depreciation and amortisation 4.99 9.09
Impairment on financial instruments 6,826.15 28,234.02
Interest on Tax Refund (78.97) -
Amotisation of upfront fees 474.78 (15.59)
Corporate Social Responsibility (CSR) Expenses 671.58 -
Operating (loss)/ profit before working capital changes (7,760.36) 4,687.11
Movement in working capital
(Increase)/Decrease in Loans 2,75,960.78 (1,29,229.53)
(Increase)/Decrease in other financial assets - 768.63
(Increase)/Decrease in other assets 1,358.95 (1,081.90)
Increase/(Decrease) in Other payables 2.84 (14.58)
Increase/(Decrease) in Other finacial liabilities 8.50 1.28
Increase/(Decrease) in Other liabilities 28,269.13 -
Cash generated from Operations 2,97,839.84 (1,24,868.99)
Income taxes paid (11,996.69) (11,169.04)
Paid for Corporate Social Responsibility (CSR) (671.58) -
Net cash from/(utilised in) operating activities 2,85,171.58 (1,36,038.02)
II. CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of fixed assets and intangible assets (0.43) (47.70)
(Increase)/Decrease in Investments- Certificate of Deposits (17,712.33) 12,189.41
(Increase)/Decrease in Investments- Corporate Deposits - 59,527.38
(Increase)/Decrease in Fixed Deposits (with a maturity of more than 3 months) (2,96,749.84) (2,02,911.68)
Interest Income from Fixed Deposits & CDs 48,082.53 31,457.70
Gain on sale of Mutual Fund 299.02 7,347.66
Decrease in Investment in Mutual Fund 40,040.37 35,169.17
Net cash from/(utilised in) investing activities (2,26,040.68) (57,268.03)

Standalone
(` in lakhs)
March 31, 2020 March 31, 2019
III. CASH FLOW FROM FINANCING ACTIVITIES:
Increase/(Decrease) in Deposits 1,89,098.94 (3,095.19)
Dividend paid (335.19) (2,094.91)
Dividend Distribution Tax (DDT) paid (68.91) (430.69)
Net Cash from financing activities 1,88,694.85 (5,620.78)
Net (Decrease)/ Increase In Cash Aand Cash Equivalents 2,47,825.75 (1,98,926.84)
Cash and cash equivalents at the beginning of the financial year 1,73,461.18 3,72,388.02
Cash and cash equivalents at end of the year 4,21,286.92 1,73,461.18
Reconciliation of cash and cash equivalents as per the cash flow statement
Cash and cash equivalents as per above comprise of the following

March 31, 2020 March 31, 2019
Balances with banks in Current accounts 48.55 498.97
Cash on hand 0.04 0.04
Bank deposits with maturity of less than 3 months 4,21,238.33 1,72,962.17
Total 4,21,286.92 1,73,461.18
For disclosures relating to changes in liabilities arising from financing activities, refer note 37
Significant accounting policies on Note No. 1 to 3
The accompanying notes form an integral part of these Financial Statements.

For V. C. Shah & Co
Firm No.: 109818W
Sd/- Sd/- Sd/-
Sd/- Sd/-
Place: Mumbai
Date: June 04, 2020

Statement of Changes in Equity

A. Equity Share Capital

(` in lakhs)
Particulars As at As at
March 31, 2020 March 31, 2019
Balance at the beginning of the year 1,67,592.59 1,67,592.59
Changes in Equity Share capital during the year - -
Balance at the end of the year 1,67,592.59 1,67,592.59
B. Other Equity
(` in lakhs)
Particulars Reserve and Surplus Other Total
Securities Development General Retained Corporate Statutory reserve compre-
Premium Fund Reserve Earnings Social created u/s 45-IC hensive
Responsibility of Reserve Bank income
Fund (CSR) of India Act, 1934
Balance at April 01, 2018 7,407.41 200.00 21,500.00 5,194.40 - 6,639.81 - 40,941.62
Profit for the period 3,348.12 - 3,348.12
Transfer to statutory - - - (669.62) 669.62 - -
reserve created u/s 45-IC
of Reserve Bank of India
Act, 1934
Transfer to general reserve - - 1,500.00 (1,500.00) - - -
Transfer to development - - - - - - -
fund
Transfer to CSR Fund (671.58) 671.58 -
Total 7,407.41 200.00 23,000.00 5,701.31 671.58 7,309.44 - 44,289.74
Dividends paid - - - (2,094.91) - - (2,094.91)
Dividend distribution tax - - - (430.69) - - (430.69)
At March 31, 2019 7,407.41 200.00 23,000.00 3,175.72 671.58 7,309.44 - 41,764.14
Profit for the period 21,981.52 - 21,981.52
Transfer to statutory - - - (4,396.30) 4,396.30 - -
reserve created u/s 45-IC
of Reserve Bank of India
Act, 1934
Transfer to general reserve - - 15,000.00 (15,000.00) - -
Transfer to CSR Fund - - - - - - -
Transfer from CSR Fund 671.58 (671.58) -
Total 7,407.41 200.00 38,000.00 6,432.51 - 11,705.74 - 63,745.66
Dividends paid - - - (335.19) - - (335.19)
Dividend distribution tax - - - (68.91) - - (68.91)
At March 31, 2020 7,407.41 200.00 38,000.00 6,028.42 - 11,705.74 - 63,341.57

For V. C. Shah & Co
Firm No.: 109818W
Sd/- Sd/- Sd/-
Sd/- Sd/-
Place: Mumbai
Date: June 04, 2020

Standalone
Significant Accounting Policies

1. Corporate Information The financial statements have been prepared on a
Micro Units Development & Refinance Agency Limited historical cost basis, except for the following assets
(MUDRA), is a public limited company domiciled in and liabilities:
India and incorporated under the provisions of The i)
Certain financial assets and liabilities that are
Companies Act 2013 and registered as Non-Banking measured at fair value
Financial Institutions (NBFI) with RBI U/s 45-IA of
ii) Defined benefit plans-plan assets measured at
RBI Act 1934 with the registered office located in
fair value
Swavalamban Bhavan, C-11 G-Block, Bandra Kurla
Complex, Bandra East, Mumbai, Maharashtra-400051.
The financial statements are presented in Indian
Rupees (‘INR’) which is Company’s functional and
The MUDRA provides refinance to Banks (including
presentation currency and all values are rounded to
Regional Rural Banks and Small Finance Banks),
nearest lakhs, except when otherwise indicated.
Non-Banking Financial Companies (NBFCs) and also
Micro Finance Institutions (MFIs) and participates in These financial statements are prepared under the
securitization transactions. historical cost convention on an accrual basis, to
comply, in all material aspects, with all the applicable
2. Basis of Preparation accounting principles in India, the applicable
These financial statements comply in all material accounting standards notified u/s 133 of the
aspects with the Indian Accounting Standards (Ind Companies Act, 2013 and the relevant provisions of
AS) notified under section 133 of the Companies the Companies Act, 2013. MUDRA is registered as a
Act, 2013 (‘Act’) read with the Companies (Indian Non-Banking Financial Institution (NBFI) and has to
Accounting Standards) Rules, 2015 as amended v adhere to the regulatory and disclosure standards as
and other relevant provisions of the Act. applicable to NBFC-ND-SIs.
MUDRA is registered as a Non-Banking Financial The novel corona virus COVID-19 pandemic continues
Institution (NBFI) and has to adhere to the to spread rapidly across the globe including India. The
regulatory and disclosure standards as applicable to COVID-19 outbreak was declared a global pandemic
NBFC-ND-SIs. by the World Health Organization. COVID-19 has
taken its toll on not just human life, but business

The financial statements up to year ended and financial markets too, the extent of which is
March 31, 2018 were prepared in accordance currently indeterminable. Various Governments have
with the accounting standards notified under introduced a variety of measures to contain the spread
of the virus. The Indian Government announced a
Companies (Accounting Standard) Rules, 2006
strict lockdown with effect from March 24, 2020 to
(as amended) and other relevant provisions of the Act.
contain the spread of virus.
(Indian Accounting Standards) Rules, 2015 .
Due to uncertainty around the course of the COVID-19
These financial statements for the year ended March
pandemic, we do not have visibility into the extent to
31, 2019 are the first financial statements, which
which it will impact the Company’s results and it will
have been prepared in accordance with the Ind AS
depend upon on the future developments. The impact
notified under the Companies (Indian Accounting of global health pandemic may be different from
Standards) Rules, 2015 as amended by the companies that estimated as at the date of approval Company’s
(Indian Accounting Standards) Rules, 2016 including Financial Statements and the Company will continue
Ind AS 101 First time Adoption of Ind AS. to closely monitor any material changes to future
economic conditions that may have any financial
The date of transition to Ind AS is April 01, 2017. impact on the company.
Refer note 41 for an explanation of how the transition
from previous GAAP to Ind AS has affected the Presentation of Financial Statements
Company’s financial position, financial performance The Company presents its financial statements
and cash flows. to comply with Division III of Schedule III to the

Companies Act, 2013 (which provides general Profit or loss on sale of investment: Profit or loss on
instructions for the preparation of financial statements sale of investments in any category is taken to profit
of a non-banking financial company (NBFC to comply and loss account as Other Income.
with Ind AS). An analysis regarding recovery or
Interest income on Fixed Deposit and certificate of
settlement within 12 months after the reporting date
deposit has been accounted on time period basis.
(current) and more than 12 months after the reporting
date (non-current) is presented in note no. 33. The corpus fund of India Microfinance Equity Fund
is operated / managed by MUDRA, for which 1%
3. Significant Accounting Policies per annum administrative fee on the drawn amount
3.1 Revenue Recognition has been charged to the fund and is received and
Recognition & Measurement: recognised as income for the period MUDRA operated
Revenue is recognised when the amount of revenue the fund.
can be measured reliably and it is probable that the
economic benefits associated with the transaction will 3.2 Taxation
Income tax expense represents the sum of the tax
flow to the entity. Revenue shall be measured at the
currently payable and deferred tax.
fair value of the consideration received or receivable.
Current Tax
3.1.1 Interest Income:
Interest income for all financial instruments except The current income tax charge is calculated on the
for those measured or designated as at FVTPL are basis of the tax laws enacted or substantively enacted
at the end of the reporting period. Taxable profit differs
recognised in the profit or loss account using the
from ‘profit before tax’ as reported in the statement of
effective interest method (EIR). Interest on financial
profit and loss because of items of income or expense
instruments measured as at FVTPL is included within
that are taxable or deductible in other years and items
the fair value movement during the period.
that are never taxable or deductible.
The interest income is calculated by applying the EIR

Deferred Tax
to the gross carrying amount of non-credit impaired
Deferred tax is recognised on temporary differences
financial assets (i.e. at the amortised cost of the
between the carrying amounts of assets and liabilities
financial asset before adjusting for any expected
in the financial statements and the corresponding
credit loss allowance). For credit-impaired financial
tax bases used in the computation of taxable profit.
assets the interest income is calculated by applying
Deferred tax liabilities are generally recognised for all
the EIR to the amortised cost of the credit-impaired taxable temporary differences. Deferred tax assets
financial assets (i.e. the gross carrying amount less are generally recognised for all deductible temporary
the allowance for expected credit losses (ECLs)). differences to the extent that it is probable that
taxable profits will be available against which those
EIR is the rate that exactly discounts the estimated deductible temporary differences can be utilised. Such
future cash payments or receipts over the expected deferred tax assets and liabilities are not recognised
life of the financial instrument or a shorter period, if the temporary difference arises from the initial
where appropriate, to the gross carrying amount recognition (other than in a business combination)
of the financial asset or to the amortised cost of a of assets and liabilities in a transaction that affects
financial liability. When calculating the effective neither the taxable profit nor the accounting profit.
interest rate, the expected cash flows are estimated
by considering all the contractual terms of the Carrying amount of deferred tax assets is reviewed
financial instrument (for example, prepayment, at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
extension, call and similar options) but does not
taxable profits will be available to allow all or part of
consider the expected credit losses.
the asset to be recovered.
However, Upfront fees shared by MUDRA with its Deferred tax liabilities and assets are measured at
parent company is not amortized during the future the tax rates that are expected to apply in the period
life of the loans and advances (Ind-AS requirement) in which the liability is settled or the asset realised,
taking conservative view, being expenditure and also based on tax rates (and tax laws) that have been
because the amount is not material (0.1% of total enacted or substantively enacted by the end of the
revenue and also expenditure). reporting period.

Standalone
The measurement of deferred tax liabilities and assets The present value of the defined benefit obligation
reflects the tax consequences that would follow from is determined by discounting the estimated future
the manner in which the entity expects, at the end of cash outflows by reference to market yields at the
the reporting period, to recover or settle the carrying end of the reporting period on government bonds
amount of its assets and liabilities. that have terms approximating to the terms of the
related obligation.
Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same The net interest cost is calculated by applying the
governing tax laws and the entity has a legally discount rate to the net balance of the defined
enforceable right for such setoff. benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense in
MAT Credits are in the form of unused tax credits that the Statement of Profit and Loss.
are carried forward by the entity for a specified period
of time; hence it is grouped with Deferred Tax Asset.
Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
Current and deferred tax for the year
assumptions are recognised in the period in which
Current and deferred tax are recognised in profit they occur, directly in other comprehensive income.
or loss, except when they relate to items that are
recognised in other comprehensive income or directly Defined Contribution plans
in equity, in which case, the current and deferred tax
Defined Contribution Plans such as superannuation
are also recognised in other comprehensive income
scheme, provident fund are charged to the statement
or directly in equity respectively.
of profit and loss as an expense, when an employee
renders the related services. If the contribution
3.3 Employee Benefits:
Recognition & Measurement: payable to scheme for service received before the
balance sheet date exceeds the contribution already

The liabilities for compensated absences are
paid, the deficit payable to the scheme is recognised
measured as the present value of expected future
as liability after deducting the contribution
payments to be made in respect of services provided
already paid. If the contribution already paid exceeds
by employees up to the end of the reporting period
the contribution due for services received before
using the projected unit credit method. The benefits
the balance sheet date, then excess is recognised
are discounted using the market yields at the end of
as an asset.
the reporting period that have terms approximating to
the terms of the related obligation. Re-measurements
Currently, there are no employee which are on payroll
as a result of experience adjustments and changes
of the Company except two employee which are on
in actuarial assumptions are recognised in the
contract basis for which post-employment benefits
statement of profit and loss.
are not applicable.
Post-employment obligations:
3.4 Property, Plant and Equipment
Company operates the following post-employment
Recognition and Measurement:
schemes:
Property, plant and equipment shall be recognised as
(a)
Defined benefit plans such as gratuity and an asset if it is probable that future economic benefits
pension obligations flow to the entity and cost can be reliably measured.
(b)
Defined contribution plans such as Freehold land is carried at historical cost. All other
superannuation scheme, provident fund. items of property, plant and equipment are measured
at historical cost less depreciation and impairment
Gratuity: loss. Historical cost includes expenditure directly
The liability or asset recognised in the balance sheet attributable to the acquisition of the items. Cost
in respect of defined benefit gratuity plans is the includes its purchase price including non-refundable
present value of the defined benefit obligation at taxes and duties after deducting trade discounts/
the end of the reporting period less the fair value of rebates, directly attributable costs of bringing the
plan assets. The defined benefit obligation is asset to its present location and condition and initial
calculated annually by actuaries using the projected estimate of costs of dismantling and removing the
unit credit method. item and restoring the site on which it is located.


Subsequent costs are included in the asset’s 3.5 Intangible Assets
carrying amount or recognised as a separate asset, Intangible assets that are acquired by the Company,
as appropriate, only when it is probable that future which have finite useful lives, are measured at cost
economic benefits associated with the item will flow less accumulated amortisation and accumulated
to the Company and the cost of the item can be impairment losses. Cost includes expenditures that
measured reliably. are directly attributable to the acquisition of the
intangible asset.
The carrying amount of any component accounted for
as a separate asset is derecognised when replaced. Transition Date:
All other repairs and maintenance are charged to the On the date of transition to Ind AS, the Company
Statement of Profit and Loss during the reporting has elected to continue with the net carrying value
period in which they are incurred. of intangible assets recognised as at April 01, 2017
measured as per previous GAAP and use that carrying
Transition Date: value as the deemed cost of intangible assets.
The entity has elected to continue with the carrying
Amortisation: Intangible assets are amortised on
value of all of its property, plant and equipment
straight line basis over the estimated useful life. The
recognised as of April 01, 2017 (the transition
method of amortisation and useful life is reviewed
date) measured as per the previous GAAP and use
at the end of each accounting year with the effect of
such carrying value as its deemed cost as of the
any changes in the estimate being accounted for on a
transition date.
prospective basis.
Depreciation Methods, Estimated Useful Life and

Useful life considered for amortisation of intangible
Residual Value assets for various classes of assets are as follows-
Depreciation on property, plant & equipment has
been provided on straight line method based on the Asset Class Useful Life
useful life specified in Schedule II of the Companies Computer software 3 years
Act, 2013 except where management estimate of
useful life is different. Depreciation commences when Gains or losses arising from the retirement or disposal
the assets are ready for their intended use. of an intangible asset are determined as the difference
between the net disposal proceeds and the carrying
Property Plant and Equipment, individually costing amount of the asset and recognised as income or
less than Rupees five thousand, are fully depreciated expense in the Statement of Profit and Loss.
in the year of purchase
3.6 Borrowing Costs
Useful life considered for calculation of depreciation General and specific borrowing costs that are
for various classes of assets are as follows- directly attributable to the acquisition, construction
or production of a qualifying asset are capitalised
Asset Class Useful Life during the period of time that is required to complete
Office Equipment 5 years and prepare the asset for its intended use. Qualifying
assets are assets that necessarily take a substantial
Computer-hardware 3 years
period of time to get ready for their intended use.
Electrical Installations 10 years Other borrowing costs are expensed in the period in
which they are incurred. Transaction costs relating to

An asset’s carrying amount is written down borrowings are considered under effective interest
immediately to its recoverable amount if the asset’s rate method.
carrying amount is greater than its estimated
recoverable amount. 3.7 Impairment of Non-Financial Assets:
The Entity need to assess at the end of each reporting
Gains or losses arising from the retirement or disposal period whether there is any impairment indication for
of Property Plant and Equipment are determined all the assets. If the asset is impaired then the entity
as the difference between the net disposal need to estimate the recoverable amount of the asset.
proceeds and the carrying amount of the asset and Impairment loss is recognised when the recoverable
recognised as income or expense in the Statement of amount of an asset is less than its carrying amount.
Profit and Loss. The difference between the recoverable amount and

Standalone
the carrying amount is recognised as impairment loss

Contingent assets are not recognized in the
in Statement of Profit & Loss A/c. financial statements. If the inflow of economic
benefits is probable, then it is disclosed in the
If there is indication of impairment then recoverable financial statements.
amount shall be estimated for each individual asset
and if it is not possible to estimate the recoverable
Provisions, Contingent liabilities, contingent
amount for each individual asset an entity shall assets and commitments are reviewed at each
determine the recoverable amount of the cash- balance sheet date.
generating unit to which the asset belongs.
3.9 Cash & Cash Equivalents
3.8 Provisions and Contingencies For the purpose of presentation in the statement
Provisions of cash flows, cash and cash equivalents includes
cash on hand, demand deposits with entities,
A provision is recognised when the Company has a
corporate deposits and other short-term highly liquid
present obligation (legal or constructive) as a result of
investments with original maturities of three months
past event, it is probable that an outflow of resources or less that are readily convertible to known amounts
embodying economic benefits will be required to of cash and which are subject to an insignificant risk
settle the obligation and a reliable estimate can be of changes in value.
made of the amount of the obligation. These estimates
are reviewed at each reporting date and adjusted to 3.10 Financial Instruments
reflect the current best estimates. A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
If the effect of the time value of money is material, equity instrument of another entity.
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to 3.10.1 Financial Assets
the liability. When discounting is used, the increase in (i) Classification, Recognition and Measurement:
the provision due to the passage of time is recognised Financial assets are recognized when the entity
as a finance cost. becomes a party to the contractual provisions of
the instrument.
A provision for onerous contracts is recognized when
the expected benefits to be derived by the Company The entity classifies its financial assets in the
from a contract are lower than the unavoidable following measurement categories:
cost of meeting its obligations under the contract.
a) those to be measured subsequently at fair
The provision is measured at the present value of
value (either through other comprehensive
the lower of the expected cost of terminating the
income, or through profit or loss), and
contract and the expected net cost of continuing
with the contract. Before a provision is established, b) those to be measured at amortised cost.
the Company recognizes any impairment loss on the
assets associated with that contract.
The classification depends on the entity’s
business model for managing the financial
Contingent Liabilities & Contingent Assets assets and whether the contractual terms of the
financial asset give rise on specified dates to cash
A contingent liability is a possible obligation that arises
flows that are solely payments of principal and
from past events whose existence will be confirmed
interest on the principal amount outstanding.
by the occurrence or non-occurrence of one or
more uncertain future events beyond the control For assets measured at fair value, gains and
of the Company or a present obligation that is not losses will either be recorded in profit or loss or
recognised because it is not probable that an outflow other comprehensive income. For investments
of resources will be required to settle the obligation. A in debt instruments, this will depend on the
contingent liability also arises in extremely rare cases, business model in which the investment is held.
where there is a liability that cannot be recognised For investments in equity instruments, this will
because it cannot be measured reliably. The Company depend on whether the entity has made an
does not recognize a contingent liability but discloses irrevocable election at the time of initial recognition
its existence in the financial statements unless the to account for the equity investment at fair value
probability of outflow of resources is remote. through other comprehensive income.

Initial Recognition:
All financial assets are recognised initially at fair value and for those instruments that are not subsequently
measured at FVTPL, plus/minus transaction costs that are attributable to the acquisition of the financial assets.
Subsequent measurement:
Type of Classification Rationale for classification Subsequent measurement
instruments
Debt Amortized cost Assets that are held for collection of Amortized cost is calculated using
instruments contractual cash flows where those Effective Interest Rate (EIR) method,
cash flows represent solely payments taking into account interest income,
of principal and interest on principal transaction cost and discount
amount outstanding are measured at or premium on acquisition. EIR
amortised cost. amortization is included in finance
Income. Any gain and loss on
derecognition of the financial
instrument measured at amortised
cost recognised in profit and loss
account.
Fair value Assets that are held for collection Changes in carrying value of such
through other of contractual cash flows and for instruments are recorded in OCI
comprehensive selling the financial assets, where the except for impairment losses, interest
income (FVOCI) assets’ cash flows represent solely income (including transaction
payments of principal and interest cost and discounts or premium on
on principal amount outstanding, are amortization) and foreign exchange
measured at FVOCI. gain/loss which is recognized in
income statement.
Interest income, transaction cost and
discount or premium on acquisition
are recognized in to income
statement (finance income) using
effective interest rate method.
On derecognition of the financial
assets measured at FVOCI, the
cumulative gain or loss previously
recognized in OCI is classified from
Equity to Profit and Loss account in
other gain and loss head.
Fair value through Assets that do not meet the criteria Change in fair value of such assets
profit or loss for amortised cost or FVOCI are are recorded in income statement as
(FVTPL) measured at fair value through profit other gains/ (losses) in the period in
or loss. A gain and loss on a debt which it arises.
instrument that is subsequently
Interest income from these financial
measured at fair value through profit
assets is included in the finance
or loss and is not part of a hedging
income.
relationship is recognized in profit or
loss in the period in which arise.

Standalone
Type of Classification Rationale for classification Subsequent measurement

instruments
Equity FVOCI The Entity’s management has made Change in fair value of such
instruments an irrevocable election at the time of instrument are recorded in OCI.
initial recognition to account for the
On disposal of such instruments,
equity investment (On an instrument
no amount is reclassified to income
by instrument basis) at fair value
statement.
through other comprehensive
income. This election is not permitted Impairment losses (and reversal
if the equity investment is held for of impairment losses) on equity
trading. The classification is made on investments measured at FVOCI are
initial recognition and is irrevocable. not reported separately from other
changes in fair value.
Dividend income from such
instruments are however recorded in
income statement.
FVTPL When no such election is made, Change in fair value of such assets
the equity instruments are measured are recorded in income statement.
at FVTPL
(ii) Derecognition of Financial Assets:

For foreign currency denominated financial
A financial asset is derecognised only when assets measured at amortised cost and FVTPL,
the exchange difference are recognised in profit
(a)
the Entity has transferred the rights to or loss except for those which are designated as
receive cash flows from the financial asset or hedging instruments in the hedging relationship.
(b)
retains the contractual rights to receive
the cash flows of the financial asset, but Changes in the carrying amount of investments
assumes a contractual obligation to pay the in equity instruments at FVTOCI relating to
cash flows to one or more recipients. changes in foreign currency rates are recognised
in other comprehensive income.
Where the Entity has transferred an asset, the
For the purpose of recognising foreign exchange
Entity evaluates whether it has transferred
gain and losses, FVTOCI debt instruments
substantially all risks and rewards of ownership
are treated as financial assets measured at
of the financial asset. In such cases, the financial
amortised cost. Thus, the exchange differences
asset is derecognised. Where the Entity has not
on the amortised cost are recognised in profit
transferred substantially all risks and rewards
or loss and other changes in the fair value of
of ownership of the financial asset, the financial FVTOCI financial assets are recognised in other
asset is not derecognised. comprehensive income.
Where the Entity has neither transferred a 3.10.2 Financial Liabilities and Equity Instruments:
financial asset nor retains substantially all risks Debt and equity instruments issued by an entity are
and rewards of ownership of the financial asset, classified as either financial liabilities or as equity in
the financial asset is derecognised if the Entity accordance with the substance of the contractual
has not retained control of the financial asset. arrangements and the definitions of a financial liability
Where the Entity retains control of the financial and an equity instrument.
asset, the asset is continued to be recognised
to the extent of continuing involvement in the Classification, Recognition and Measurement:
financial asset. (a) Equity Instruments:
An equity instrument is any contract that
(iii) Foreign Exchange Gain or Losses:
evidences a residual interest in the assets of
The fair value of financial assets denominated in an entity after deducting all of its liabilities.
a foreign currency is determined in that foreign Equity instruments issued by the Entity are
currency and translated at the spot rate at the recognised at the proceeds received, net of
end of each reporting period. direct issue costs.

(b) Financial Liabilities: to be made to reimburse the holder for a loss it

Initial recognition and measurement: incurs because the specified debtor fails to make
a payment when due in accordance with the
Financial liabilities are initially recognised at fair
terms of a debt instrument. Financial guarantee
value plus any transaction that are attributable to
contracts are recognised initially as a liability at
the acquisition of the financial liabilities except
fair value, adjusted for transaction costs that
financial liabilities at FVTPL which are initially
measured at fair value. are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured
Subsequent measurement: at the higher of the amount of loss allowance
determined as per impairment requirements

The financial liabilities are classified for
of Ind AS 109 and the amount recognised less
subsequent measurement into following
cumulative amortisation.
categories:
• at amortised cost 3.10.3 Impairment of Financial Assets:
In accordance with Ind AS 109, Entity applies
• at fair value through profit or loss (FVTPL)
expected credit loss (ECL) model for measurement
(i) Financial liabilities at amortised cost: and recognition of impairment loss on the following
financial assets and credit risk exposure:

Amortised cost for financial liabilities
represents amount at which financial liability • Financial assets carried at amortised cost
is measured at initial recognition minus the e.g., advances, debt securities, deposits and
principal repayments, plus or minus the entity balance
cumulative amortisation using the effective
• Financial assets that are debt instruments and
interest method of any difference between
are measured as at FVTOCI
that initial amount and the maturity amount.
• Loan commitments which are not measured as at
(ii) Financial liabilities at fair value through profit FVTPL, financial guarantee contracts which are
or loss: not measured as at FVTPL
Financial liabilities held for trading are ECL is the difference between all contractual cash
measured at FVTPL. flows that are due to the entity in accordance with the
contract and all the cash flows that the entity expects
Financial liabilities at FVTPL are stated at to receive (i.e., all cash shortfalls), discounted at the
fair value with any gains or losses arising on original effective interest rate. When estimating the
remeasurement, recognised in profit or loss. cash flows, an entity is required to consider:
The net gain or loss recognised in profit or
loss incorporates any interest paid on the • All contractual terms of the financial instrument
financial liability. (including prepayment, extension, call and similar
options) over the expected life of the financial
Derecognition: instrument. However, in rare cases when the
A financial liability is removed from the balance expected life of the financial instrument cannot
sheet when the obligation is discharged, or is be estimated reliably, then the entity is required
cancelled, or expires. When an existing financial to use the remaining contractual term of the
liability is replaced by another from the same financial instrument
lender on substantially different terms, or the
terms of an existing liability are substantially • Cash flows from the sale of collateral held or
modified, such an exchange or modification other credit enhancements that are integral to
is treated as the derecognition of the original the contractual terms
liability and the recognition of a new liability. The
difference in the respective carrying amounts is The impairment methodology applied depends on
recognised in the Statement of Profit and Loss. whether there has been a significant increase in
credit risk. In general, it is presumed that credit risk
(c) Financial Guarantees Contracts: has significantly increased since initial recognition
Financial guarantee contracts issued by the if the payments are more than 30 days past due.
Entity are those contracts that require a payment Entity considers the probability of default upon initial

Standalone
recognition of asset and whether there has been a which are considered to have experienced a
significant increase in credit risk on an ongoing basis significant increase in credit risk (Stage 2) and
throughout each reporting period. for financial assets that are credit impaired at the
reporting date (Stage 3). The lifetime expected credit
To assess whether there is a significant increase in losses represent all possible default events over
credit risk, the entity compares the risk of a default the expected life of a financial instrument. Financial
occurring on the asset as at the reporting date with
assets will be transferred to Stage 2 if 30 days past
the risk of default as at the date of initial recognition.
due. The interest revenue is calculated on the gross
It considers available reasonable and supportive
carrying amount for financial assets in Stage 2.
forwarding-looking information. Especially the
following indicators are incorporated:
As the primary definition for credit impaired financial
• Internal credit rating assets moving to Stage 3,
• External credit rating (as far as available)
The Company considers the following as constituting
• Actual or expected significant adverse changes an event of default:
in business, financial or economic conditions
that are expected to cause a significant change • the borrower is past due more than 90 days on
to the borrower’s ability to meet its obligations any material credit obligation to the entity
• Actual or expected significant changes in the • the borrower is unlikely to pay its credit
operating results of the borrower obligations to the Group in full.
• Significant increase in credit risk on other

A financial asset is ‘credit-impaired’ when one or
financial instruments of the same borrower
more events that have a detrimental impact on the
• Significant changes in the value of the collateral estimated future cash flows of the financial asset
supporting the obligation or in the quality of third have occurred.
party guarantees or credit enhancements
• significant financial difficulty of the borrower
• Significant changes in the expected performance or issuer
and behaviour of the borrower, including
changes in the payment status of borrowers in • a breach of contract such as a default or past
the group and changes in the operating results due event
of the borrower. • the lender of the borrower, for economic or
contractual reasons relating to the borrower’s
A loss allowance at an amount equal to 12-month
financial difficulty, having granted to the
expected credit losses is recognised, if the credit risk
borrower a concession that the lender would not
at the reporting date has not increased significantly
since initial recognition (Stage 1). This amount otherwise consider
represents the expected credit losses resulting from • the disappearance of an active market for a
default events that are possible within the next 12 security because of financial difficulties
months. The interest revenue is calculated on the
gross carrying amount for financial assets in Stage 1. • the purchase of a financial asset at a deep
discount that reflects the incurred credit losses.
Definition of default
Critical to the determination of ECL is the definition of Credit impaired assets will include defaulted assets
default. The definition of default is used in measuring as well as other non-defaulted assets given the
the amount of ECL and in the determination of whether definition of credit impaired is broader than the
the loss allowance is based on 12-month or lifetime definition of default.
ECL, as default is a component of the probability of
default (PD) which affects both the measurement of Interest revenues are calculated on the net carrying
ECLs and the identification of a significant increase in amount for credit-impaired financial assets only.
credit risk.

Forward-looking information, including macro-
Credit losses over the remaining life of the financial economic factors must be taken into account to
assets (‘lifetime expected losses’) are recognised measure the expected credit losses.


Macroeconomic information (such as regulatory • Level 1 — Quoted (unadjusted) market prices in
changes, market interest rate or growth rates) is active markets for identical assets or liabilities
incorporated as part of the internal rating model.
• Level 2 — Valuation techniques for which the
Key concepts and management judgements: lowest level input that is significant to the fair
value measurement is directly or indirectly
• Determining a significant increase in credit risk
observable
since initial recognition
• Forward-looking information • Level 3 — Valuation techniques for which the

lowest level input that is significant to the fair
• Definition of default and credit impaired assets
value measurement is unobservable
• Expected life
3.12 Derivative Financial Instruments
• Modelling techniques
Derivative financial instruments such as forward
Purchased or originated credit-impaired (POCI) contracts are taken by the Company to hedge its
financial assets foreign currency risks, are initially recognised at fair
value on the date a derivative contract is entered into
POCI financial assets are credit-impaired since initial
and are subsequently re-measured at their fair value
recognition. For such assets, the entity recognises
with changes in fair value recognised in the Statement
a loss allowance equal to lifetime ECL since initial
of Profit and Loss in the period when they arise (other
recognition with any changes recognised in profit or
than in case of hedge accounting).
loss. A favourable change for such assets creates an
impairment gain.
3.13 Offsetting Financial Instruments:
Financial assets and liabilities are offset and the net
3.11 Fair Value Measurement:
amount is reported in the balance sheet where there
The Entity measures financial instruments, such
is a legally enforceable right to offset the recognised
as, certain investments at fair value at each balance
amounts and there is an intention to settle on a
sheet date.
net basis or realise the asset and settle the liability
Fair value is the price that would be received to sell simultaneously. The legally enforceable right must
an asset or paid to transfer a liability in an orderly not be contingent on future events and must be
transaction between market participants at the enforceable in the normal course of business and in
measurement date. The fair value measurement is the event of default, insolvency or bankruptcy of the
based on the presumption that the transaction to sell Entity or the counterparty.
the asset or transfer the liability takes place either:
3.14 Segment Reporting:
• In the principal market for the asset or liability, or Operating segments are reported in a manner
• In the absence of a principal market, in the most consistent with the internal reporting provided
advantageous market for the asset or liability. to the chief operating decision maker. The chief
operational decision maker monitors the operating
The principal or the most advantageous market must results of its business Segments separately for the
be accessible by the Entity. purpose of making decision about the resources
allocation and performance assessment. Segment
The fair value of an asset or a liability is measured performance is evaluated based on the profit or loss
using the assumptions that market participants and is measured consistently with profit or loss in
would use when pricing the asset or liability, the financial statements. The operating segments
assuming that market participants act in their have been identified on the basis of the nature of
economic best interest. products/ services.

All assets and liabilities for which fair value is 3.15 Dividend
measured or disclosed in the financial statements are Final dividend is recognised in the Statement of
categorised within the fair value hierarchy, described Profit & Loss A/c on approval of shareholders. Interim
as follows, based on the lowest level input that is dividend is recorded as a liability on the date of
significant to the fair value measurement as a whole: declaration of the Entity’s Board of Directors

Standalone
3.16 Earnings Per Share: also needs to be made, when Entity assesses,
Basic earnings per share whether as asset may be capitalised and
Basic earnings per share are calculated by dividing: which components of the cost of the assets may
be capitalised.
• the profit attributable to owners of the Company
• by the weighted average number of equity shares b. Defined benefit plan: The cost of the defined
outstanding during the financial year. benefit gratuity obligation is determined using
actuarial valuations. An actuarial valuation
Diluted earnings per share involves making various assumptions that may
Diluted earnings per share adjust the figures used in differ from actual developments in the future.
the determination of basic earnings per share to take These include the determination of the discount
into account: rate, future salary increases and mortality rates.
Due to the complexities involved in the valuation
• the after income tax effect of interest and other and its long term nature, a defined benefit
financing costs associated with dilutive potential
obligation is highly sensitive to changes in these
equity shares, and
assumptions. All assumptions are reviewed at
• the weighted average number of additional each reporting date.
equity shares that would have been outstanding
assuming the conversion of all dilutive potential c.
Allowances for uncollected accounts
equity shares. receivable and advances: Impairment is made
on the expected credit loss model, which are
3.17 Significant Accounting Estimates, Judgements the present value of the cash shortfall over
and Assumptions: the expected life of the financial assets. The
The preparation of the Entity’s financial statements in impairment provisions for financial assets are
conformity with Ind AS requires management to make based on assumption about the risk of default
judgements, estimates and assumptions that affect and expected loss rates. Judgement in making
the reported amounts of revenues, expenses, assets these assumptions and selecting the inputs to
and liabilities and the accompanying disclosures, and the impairment calculation are based on past
the disclosure of contingent liabilities. Uncertainty history, existing market condition as well as
about these assumptions and estimates could result forward looking estimates at the end of each
in outcomes that require a material adjustment to reporting period.
the carrying amount of assets or liabilities affected
in future periods. The estimates and associated d. Contingencies: Management judgement is
assumptions are based on historical experience and required for estimating the possible outflow of
various other factors that are believed to be reasonable resources, if any, in respect of contingencies/
under the circumstances existing when the financial claim/ litigation against Entity as it is not possible
statements were prepared. The estimates and to predict the outcome of pending matters
underlying assumptions are reviewed on an ongoing with accuracy.
basis. Revision to accounting estimates is recognised
in the year in which the estimates are revised and in 3.18 Prudential Norms:
any future year affected. The Company continues to be registered as a
Non-Banking Financial Institution (NBFI) classified
In the process of applying the Entity’s accounting as a Loan Company and is therefore required to
policies, management has made the following follow the Non-Banking Financial (Non-Deposit
judgements which have significant effect on the
Accepting or Holding) Companies Prudential Norms
amounts recognised in the financial statements:
(Reserve Bank) Directions, 2007 for its NBFC
a. Useful lives of property, plant and equipment: activities for Systemically Important Non-Deposit
Determination of the estimated useful life of Taking Companies.
tangible assets and the assessment as to which
components of the cost may be capitalised.
Non-performing assets are provided for as per
Useful life of tangible assets is based on the life management estimates, subject to the minimum
specified in Schedule II of the Companies Act, provision as per Non-Banking Financial (Non-Deposit
2013 and also as per management estimate Accepting or Holding) Companies Prudential Norms
for certain category of assets. Assumption (Reserve Bank) Directions, 2007.

3.19 Ind AS Standard Not Yet Notified: while performing the determination of taxable profit
The amendments to standards that are issued, but (or loss), tax bases, unused tax losses, unused tax
not yet effective, up to the date of issuance of the credits and tax rates, when there is uncertainty over
Entity’s financial statements are disclosed below. The income tax treatments under Ind AS 12. According
Entity intends to adopt these standards, if applicable, to the appendix, companies need to determine the
when they become effective. probability of the relevant tax authority accepting
each tax treatment, or group of tax treatments, that
Ind AS 116 “Leases”: the companies have used or plan to use in their income
On March 30, 2019, Ministry of Corporate Affairs has tax filing which has to be considered to compute the
notified Ind AS 116, Leases. Ind AS 116 will replace most likely amount or the expected value of the tax
the existing leases Standard, Ind AS 17 Leases, treatment when determining taxable profit (tax loss),
and related Interpretations. The Standard sets out tax bases, unused tax losses, unused tax credits
the principles for the recognition, measurement, and tax rates.
presentation and disclosure of leases for both
parties to a contract i.e., the lessee and the lessor. The effective date for adoption of Ind AS 12 Appendix
Ind AS 116 introduces a single lessee accounting C is annual periods beginning on or after April 01, 2019.
model and requires a lessee to recognize assets and The Company is currently evaluating the effect of this
liabilities for all leases with a term of more than twelve amendment on the standalone financial statements.
months, unless the underlying asset is of low value.
Currently, operating lease expenses are charged to Amendment to Ind AS 12 – Income Taxes:
the statement of Profit & Loss. The Standard also On March 30, 2019, Ministry of Corporate Affairs
contains enhanced disclosure requirements for issued amendments to the guidance in Ind AS 12,
lessees. Ind AS 116 substantially carries forward the ‘Income Taxes’, in connection with accounting for
lessor accounting requirements in Ind AS 17. dividend distribution taxes.
The effective date for adoption of Ind AS 116 is The amendment clarifies that an entity shall recognise
annual periods beginning on or after April 01, 2019. the income tax consequences of dividends in profit or
Currently, there is no lease agreement with the loss, other comprehensive income or equity according
Company as lessor or lessee. to where the entity originally recognised those past
transactions or events.
Ind AS 12 Appendix C, Uncertainty over Income
Tax Treatments: Effective date for application of this amendment is
On March 30, 2019, Ministry of Corporate Affairs annual period beginning on or after April 01, 2019.
has notified Ind AS 12 Appendix C, Uncertainty There is no impact of the above amendment to the
over Income Tax Treatments which is to be applied company as on transition date.

Standalone
Notes to Financial Statements

4. Cash and Cash Equivalents
(` in lakhs)
March 31, 2020 March 31, 2019
Cash on hand 0.04 0.04
Balance with Banks:
- in Current account 48.55 498.97
- In Fixed Deposits with Bank having original maturity less than 3 months 4,21,238.33 1,72,962.17
Less: Impairment loss allowance (160.93) -
Total 4,21,125.99 1,73,461.18
5. Bank Balances Other Than Cash and Cash Equivalents

(` in lakhs)
March 31, 2020 March 31, 2019
Fixed Deposits with Banks- Maturity more than 3 months but not 6,10,051.82 3,13,301.98
exceeding 12 months
Less: Impairment loss allowance (94.67) -
Total 6,09,957.15 3,13,301.98
Note: Fixed deposit earns interest at a fixed interest rate.
6. Loans
(` in lakhs)
March 31, 2020 March 31, 2019
Carried at amortised cost
Term Loans
(A) Banks-Secured against bookdebts held in trust, 6,29,095.52 9,41,576.50
by the financing Banks
(B) Micro Finance Institutions (MFIs)- Secured against 1,10,810.97 47,632.00
hypothecation of bookdebts of MFIs
(C) Non-Banking Financial Campany (NBFCs)- Secured against 1,69,290.88 1,87,188.98
hypothecation of bookdebts of NBFCs
Subscription to Pass Through Certificate (PTC) - 9,235.45
Total Gross (A) 9,09,197.37 11,85,632.93
Less: Impairment loss allowance (8,797.26) (2,228.59)
Total Net (A) 9,00,400.11 11,83,404.34
(i) Secured by tangible assets 9,09,197.37 11,85,632.93
(ii) Secured by intangible assets - -
(iii) Covered by Bank/Government Guarantees - -
(iv) Unsecured - -
Total Gross (B) 9,09,197.37 11,85,632.93
Total Net (B) 9,00,400.11 11,83,404.34
Loans in India
(i) Public Sector 5,05,317.52 8,67,197.90
(ii) Others 4,03,879.85 3,18,435.03
Loans outside India - -
Total Gross (C) 9,09,197.37 11,85,632.93
Less:Impairment loss allowance (8,797.26) (2,228.59)
Total Net (C) 9,00,400.11 11,83,404.34
*The banks availing refinance have executed General Refinance Agreement with MUDRA, wherein they are obligated to hold
securities in Trust for the refinance availed.

7. Investments
(` in lakhs)
March 31, 2020 March 31, 2019
Carried at Amortised Cost
Certificate of Deposits-SIDBI 18,729.09 -
Corporate Deposits 28,500.00 28,500.00
Total Gross (A) 47,229.09 28,500.00
Less:Impairment loss allowance (Refer Note 24) (28,501.87) (28,500.00)
Total Net (A) 18,727.22 -
Carried at Fair Value through profit and loss (FVTPL)
Mutual Funds (Liquid Schemes) -Unquoted (B) - 40,040.37
Total (A+B) 18,727.22 40,040.37
(i) Investments in India 47,229.09 68,540.37
(ii) Investments outside India - -
Total Gross (C) 47,229.09 68,540.37
Total Net (C) 18,727.22 40,040.37
8. Current Tax Assets (Net)

(` in lakhs)
March 31, 2020 March 31, 2019
Tax Assets
Advance income tax 12,569.70 12,140.56
Tax Liabilities
Provision for current tax (10,541.59) (11,641.79)
Total 2,028.10 498.77
9. Deferred Tax Assets/(Liabilities) (Net)

(` in lakhs)
March 31, 2020 March 31, 2019
Deferred tax asset on account of:
Preliminary Expenses - 40.32
Loan upfornt fees recognition as per EIR model 286.90 186.66
Expected Credit Loss on Loans and advances 2,278.43 778.76
Impairment Allowance on Investments 7,173.35 9,959.04
Deferred tax liability on account of:
Timing difference between tax depreciation and depreciation charged 0.36 (0.06)
in the books
Fair Valuation of Mutual Fund - (14.11)
Net deferred tax assets 9,739.04 10,950.61

Standalone
9(a): Summary of Deferred Tax Assets/(Liabilities)

(` in lakhs)
Particulars As at (Charged)/ As at (Charged)/ As at
March 31, Credited to March 31, Credited to March 31,
2018 P&L 2019 P&L 2020
Timing difference between tax (1.34) 1.28 (0.06) 0.42 0.36
depreciation and depreciation
charged in the books
Expected Credit Loss on Loans and 860.37 (81.61) 778.76 1,499.67 2,278.43
advances
Impairment Allowance on 2.95 9,956.09 9,959.04 (2,785.69) 7,173.35
Investments
Fair Valuation of Mutual Fund (37.91) 23.80 (14.11) 14.11 -
Preliminary Expenses 72.95 (32.63) 40.32 (40.32) -
Loan upfornt fees recognition as per 190.26 (3.60) 186.66 100.24 286.90
EIR model
Net deferred tax assets/(liability) 1,087.28 9,863.34 10,950.61 (1,211.57) 9,739.04
10. Property, Plant and Equipment

(` in lakhs)
Particulars Office Computers Electrical Total
Equipments Installtions
and
Equipment
For the year ended March 31, 2020
Gross Carrying Amount
Cost as at April 01, 2019 1.18 19.13 0.46 20.76
Additions during the year - 0.43 - 0.43
Disposals during the year
Gross carrying value as at March 31, 2020 1.18 19.56 0.46 21.19
Accumulated Depreciation and impairment
Accumulated Depreciation and impairment 0.57 12.31 0.09 12.98
as at April 01, 2019
Depreciation Expenses for the year 0.31 3.76 0.05 4.12
Accumulated depreciation and impairment 0.88 16.07 0.14 17.10
as of March 31, 2020
Net carrying amount as at March 31, 2020 0.30 3.49 0.32 4.09
For the period ended March 31, 2019
Cost as at April 01, 2018 0.98 19.13 0.46 20.57
Additions during the year 0.20 - - 0.20
Disposals during the year - - - -
Gross carrying value as at March 31, 2019 1.18 19.13 0.46 20.76
Accumulated Depreciation and impairment
Accumulated Depreciation as at April 01, 2018 0.28 5.46 0.05 5.79
Depreciation Expenses for the year 0.29 6.86 0.04 7.19
Accumulated depreciation as of March 31, 2019 0.57 12.31 0.09 12.98
Net carrying amount as at March 31, 2019 0.61 6.82 0.37 7.78

11. Other Intangible Assets

(` in lakhs)
Particulars Computer Total
software
For the year ended March 31, 2020
Cost as at April 01, 2019 4.91 4.91
Additions during the year -
Gross carrying value as at March 31, 2020 4.91 4.91
Accumulated Amortization and impairment
Accumulated Amortization and impairment as at April 01, 2019 3.49 3.49
Amortization for the year 0.87 0.87
Accumulated Amortization and impairment as of March 31, 2020 4.36 4.36
Net carrying amount as at March 31, 2020 0.55 0.55
For the period ended March 31, 2019
Deemed cost as at April 01, 2018 4.91 4.91
Additions during the year - -
Gross carrying value as of March 31, 2019 4.91 4.91
Accumulated Amortization and impairment
Accumulated Amortization and impairment as at April 01, 2018 1.59 1.59
Depreciation Expenses for the year 1.90 1.90
Accumulated Amortization and impairment as at March 31, 2019 3.49 3.49
Net carrying value as at March 31, 2019 1.42 1.42
12. Other Non-Financials Assets

(` in lakhs)
March 31, 2020 March 31, 2019
Recoverable from Govt. of India for PMMY Advertisement - 1,305.11
Goods and Service Tax Input Receivable - 53.84
Total - 1,358.95

Standalone
13. Payables
(` in lakhs)
March 31, 2020 March 31, 2019
Trade Payables
Total outstanding dues of micro enterprises and small enterprises - -
Total outstanding dues of creditors other than micro enterprises and - -
small enterprises
Total - -
Other Payables
Total outstanding dues of micro enterprises and small enterprises - -
Total outstanding dues of creditors other than micro enterprises and 251.32 248.48
small enterprises
Total 251.32 248.48
Note (a): F
or amount payable to related parties, refer Note 38.
Note (b): There are no Micro,Small and Medium Enterprises, to whom the company owe amount which are outstanding for
more than 45 days during the year. The information, as required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available
with the company regarding the status of the supplier. Further, no interest is outstanding to be paid to any such parties.

14. Deposits
(` in lakhs)
March 31, 2020 March 31, 2019
Carried at amortised cost
From Banks 17,02,562.03 15,13,463.08
Total 17,02,562.03 15,13,463.08
The company has not accepted any deposit from directors / key management personnel’s. The company have
not been guaranteed by directors or others. Also, the company has not defaulted in repayment of deposits and
interest thereon.
15. Other Financial Liabilities

(` in lakhs)
March 31, 2020 March 31, 2019
Security Deposits 13.12 4.62
Total 13.12 4.62
16. Other Non-Financial Liabilities

(` in lakhs)
March 31, 2020 March 31, 2019
Statutory dues payable 16.20 -
Revenue received in advance 131.00 -
Advance Received From Govt. of India 1,000.00 -
Indian Microfinance Equity Fund (IMEF) 27,121.93 -
Total 28,269.13 -

17. Equity Share Capital

(` in lakhs)
March 31, 2020 March 31, 2019
a. Authorised Share Capital
5,00,00,00,000 Equity Shares (March 31, 2019: 5,00,00,00,000) 5,00,000.00 5,00,000.00
of ` 10 each
Total 5,00,000.00 5,00,000.00
b. Issued, Subscribed and Paid-up:
1,67,59,25,926 Equity Shares (March 31, 2019: 1,67,59,25,926) 1,67,592.59 1,67,592.59
of ` 10 each
Total 1,67,592.59 1,67,592.59
c. Reconciliation of number of shares outstanding at the beginning and at the end of the year :
(` in lakhs)
Particulars As at March 31, 2020 As at March 31, 2019
No. of Shares Amount No. of Shares Amount
Balance at the beginning of the year 1,67,59,25,926 1,67,592.59 1,67,59,25,926 1,67,592.59
Add/(less) : Movement during the year - - - -
Balance at the end of the year 1,67,59,25,926 1,67,592.59 1,67,59,25,926 1,67,592.59
d. Equity Shares in the Company held by each shareholder holding more than 5 per cent shares and the
number of equity shares held are as under
Particulars As at March 31, 2020 As at March 31, 2019
No. of Shares % of Total No. of Shares % of Total
Paid-up Equity Paid-up Equity
Share Capital Share Capital
Small Industries Development Bank of 1,67,59,25,920 99.9999996% 1,67,59,25,920 99.9999996%
India (SIDBI)
Total 1,67,59,25,920 99.9999996% 1,67,59,25,920 99.9999996%
e. Details of shares held by holding company

(` in lakhs)
March 31, 2020 March 31, 2019
Small Industries Development Bank of India (SIDBI) 1,67,59,25,920 1,67,59,25,920
Total 1,67,59,25,920 1,67,59,25,920
f. Terms and rights attached to equity shares

The Company has only one class of equity shares having par value of ` 10 per share. Each holder of equity shares
is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting (AGM).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining
assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.
g.
Bonus Shares
There are no bonus shares issued since inception (Incorporation year 2015-2016).

Standalone
18. Other Equity

(` in lakhs)
Particulars Note As at As at
March 31, 2020 March 31, 2019
Securities Premium Reserve (i) 7,407.41 7,407.41
General Reserve (ii) 38,000.00 23,000.00
Retained Earnings (iii) 6,028.41 3,175.71
Statutory reserve created u/s 45-IC of Reserve Bank of India (iv) 11,705.74 7,309.44
Act, 1934
Development Fund (v) 200.00 200.00
Corporate Social Responsibility fund (CSR) (vi) - 671.58
Total 63,341.56 41,764.14
(i) Securities Premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised in
accordance with the provisions of the Companies Act, 2013.
(` in lakhs)
March 31, 2020 March 31, 2019
Opening Balance 7,407.41 7,407.41
Movement during the year - -
Closing Balance 7,407.41 7,407.41
(ii)
General Reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income
at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to
ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company
for that year, then compulsory transfer to General reserve at a specified rate was obligatory. Consequent to
introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the
net profit to general reserve has been withdrawn. However, the amount previously transferred to the general
reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(` in lakhs)
March 31, 2020 March 31, 2019
Balance at the beginning of the year 23,000.00 21,500.00
Movement during the year* 15,000.00 1,500.00
Balance at the end of the year 38,000.00 23,000.00

(iii) Retained Earnings

Retained earnings represents surplus/accumulated earnings of the Company and are available for distribution
to shareholders
(` in lakhs)
March 31, 2020 March 31, 2019
Profit for the year 21,981.52 3,348.11
Transfer to statutory reserve created u/s 45-IC of Reserve Bank of (4,396.30) (669.62)
India Act, 1934
Transfer to General Reserve (15,000.00) (1,500.00)
Transfer to Development Fund - -
Transfer to Corporate Social Responsibility (CSR) fund - (671.58)
Transfer from Corporate Social Responsibility (CSR) fund 671.58 -
Dividends paid (335.19) (2,094.91)
Dividend distribution tax (68.91) (430.69)
(iv) Statutory reserve created u/s 45-IC of Reserve Bank of India Act, 1934
Statutory Reserve represents the reserve created pursuant to the Reserve Bank of India Act, 1934
(the “RBI Act”). In terms of Section 45-IC of the RBI Act, a Non-Banking Finance Company is required to
transfer an amount not less than 20 per cent of its net profit to a Reserve Fund before declaring any dividend.
Appropriation from this Reserve Fund is permitted only for the purposes specified by RBI.
(` in lakhs)
March 31, 2020 March 31, 2019
Movement during the year 4,396.30 669.62
(v) Development Fund

The Company has created Development Fund for the developmental activities
(` in lakhs)
March 31, 2020 March 31, 2019
Opening Balance 200.00 200.00
Movement during the year - -
Closing Balance 200.00 200.00
(vi) Corporate Social Responsibilty Fund (CSR)

The enity appropriates amount towards its Corporate Social Responsibility (CSR) fund
(` in lakhs)
March 31, 2020 March 31, 2019
Opening Balance 671.58 -
Transferred from Retained Earnings - 671.58
Transferred to Retained Earnings (671.58) -
Closing Balance - 671.58


Standalone
19. Interest Income

(` in lakhs)
Particulars For the year ended For the year ended
March 31, 2020 March 31, 2019
Interest on Loans
(A) Interest on Refinance to Banks 43,243.44 38,841.30
(B) Interest on Refinance to MFIs /NBFC's 17,778.36 15,135.64
Interest on FDRs & CDs 49,099.29 21,312.39
Interest Income on Pass Through Certificates 212.51 3,069.07
Other interest Income 0.70 -
Total 1,10,334.29 78,358.40
20. Fees and Commission Income

(` in lakhs)
March 31, 2020 March 31, 2019
Fee income that are recognised over a period 415.72 385.59
Administrative Fee Income on IMEF 60.53 -
Total 476.25 385.59
21. Net gain on Fair Value Changes

(` in lakhs)
March 31, 2020 March 31, 2019
(A) Net gain on financial instruments at fair value through profit or loss
Mutual Funds at FVTPL 299.02 7,347.66
Fair Value changes:
Realised 299.02 7,238.12
Unrealised - 109.54
22. Other Income

(` in lakhs)
March 31, 2020 March 31, 2019
Others 80.61 1.13
Total 80.61 1.13
23. Finance Costs

(` in lakhs)
March 31, 2020 March 31, 2019
Interest on deposits 65,872.35 51,494.52
Total 65,872.35 51,494.52

24. Impairment on Financial Instruments

(` in lakhs)
March 31, 2020 March 31, 2019
On Loans Held at Amortised Cost 6,568.67 (257.44)
Investments 1.87 28,491.46
Fixed Deposits including Bank Balance 255.61 -
Total 6,826.15 28,234.02
The table below shows the ECL charges on financial instruments for the year recorded in the profit and loss based
on evaluation stage:
(` in lakhs)
Particulars For the year ended March 31, 2020
Stage 1 Stage 2 Stage 3 Total
Debt instruments measured at (538.25) - 7,106.92 6,568.67
Amorised Cost (Loans)
Debt instruments measured at 1.87 - - 1.87
Amorised Cost (Investment)
Debt instruments measured at 255.61 - - 255.61
Amorised Cost (Fixed Deposit including
Bank Balances)
Total impairment loss (280.77) - 7,106.92 6,826.15
(` in lakhs)
Particulars For the year ended March 31, 2019
Stage 1 Stage 2 Stage 3 Total
Debt instruments measured at (257.44) - - (257.44)
Amorised Cost (Loans)
Debt instruments measured at - - 28,491.46 28,491.46
Amorised Cost (Investment)
Debt instruments measured at - - - -
Amorised Cost (Fixed Deposit including
Bank Balances)
Total impairment loss (257.44) - 28,491.46 28,234.02
Note: Refer Note 40 (A) for ECL methodology and assumptions.
25. Employee Benefits Expenses

(` in lakhs)
March 31, 2020 March 31, 2019
Salaries and wages 712.70 653.57
Total 712.70 653.57
26. Depreciation, Amortization and Impairment

(` in lakhs)
March 31, 2020 March 31, 2019
Depreciation of property, plant and equipment (Refer Note No. 10) 4.12 7.19
Amortization of intangible assets (Refer Note No. 11) 0.87 1.90
Total 4.99 9.09

Standalone
27. Others Expenses

(` in lakhs)
March 31, 2020 March 31, 2019
PMMY publicity expenditure (Refer Note 27.3) 2,842.28 -
Rent,rates and taxes 85.72 70.01
Postage & Telegram 0.27 0.39
Travelling and conveyance 7.03 11.82
Printing and stationery 10.59 10.74
Advertisement and publicity 4.47 11.52
Bank Charges 0.04 0.06
Director’s sitting fees 10.42 5.83
Auditor’s fees and expenses 2.85 2.80
Legal and Professional charges 31.63 68.81
Insurance 0.12 0.17
Administrative Expenses 36.89 70.51
Website and Webportal expenses 10.49 7.09
Computer Consumables - 4.54
Processing and monitoring expenses 203.88 317.67
Software Maintainace & Hosting Charges 116.32 -
Corporate Social Responsibility Expenses (Refer Note 27.2) 671.58 -
Total 4,034.56 581.94
27.1 Payment to Auditors

(` in lakhs)
March 31, 2020 March 31, 2019
(a) Statutory audit of Company 2.00 2.00
(b) For company law matters - 0.25
(c) For other services (TAX & GST Audit) 0.85 0.55
Total 2.85 2.80
27.2 Details of Corporate Social Responsibility Expenditure:

(` in lakhs)
March 31, 2020 March 31, 2019
a) Amount required to be spent during the year 317.53 354.05
b) Amount spent during the year ending on :
i) Construction/acquisition of any asset - -
ii) On purposes other than (i) above# 671.58 -
#
The current spent amount of ` 671.58 lakh include the amount to be spent for the FY 2018-19
27.3 Pradhan Mantri MUDRA Yojana (PMMY) Publicity Campaign Expenses:

The Company has been spending money on the publicity campaign of Pradhan Mantri MUDRA Yojana (PMMY)
launched by GOI in FY 2015-16 onwards. So far the amount spent was being subsequently fully reimbursed through
Grant-in-Aid from GOI.
However, during the FY 2018-19, GOI provided Grant-in-Aid of ` 1,000 lakhs, as against the total actual expenditure
of ` 3,842.88 lakhs for the PMMY Publicity Campaign for the FY 2018-19, and the amount shown in the balance
sheet as receivable. It was indicated during FY 2019-20, that MUDRA being the nodal agency for implementation of
PMMY, the expenses relating to popularising the PMMY scheme will have to be partly borne by MUDRA. Hence, the
management decided to expense out the difference amount (Amount incurred and amount received from GOI) of
` 2,842.28 lakhs in the FY 2019-20. The PMMY Publicity Expenses is shown under other expenses currently.

28. Income Tax Expense

(` in lakhs)
March 31, 2020 March 31, 2019
Current tax
Current tax on profits for the period 10,541.59 11,641.79
Adjustment In respect of prior years 4.73 (6.92)
Total Current Tax 10,546.33 11,634.87
Deferred tax expense
Origination and reversal of temporary differences (Refer Note 9) 1,211.57 (9,863.34)
Total deferred tax expense 1,211.57 (9,863.34)
Total tax expense 11,757.90 1,771.53
28.1 The Income Tax expense comprises of Current Tax and Deferred Tax. Current tax is measured at the amount
expected to be paid in respect of taxable income for the year in accordance with Income Tax Act, 1961. The new
section – Section 115BAA has been inserted in the Income Tax Act, 1961 to give the benefit of a reduced corporate
tax rate for the domestic companies. Section 115BAA states that domestic companies have the option to pay tax at
a rate of 22% from the FY 2019-20 (AY 2020-21) onwards if such domestic companies adhere to certain conditions
specified.The Company has availed the benefit of the same from current year and Tax Provision has been made
accordingly in the books of accounts.
28.2 Reconciliation of Effective Tax Rate:

(` in lakhs)
For the % For the %
year ended year ended
March 31, 2020 March 31, 2019
Profit/(Loss) before tax as per 33,739.42 5,119.65
Statement of profit and loss
Enacted income tax rate in India 8,491.54 25.17% 1,789.01 34.94%
applicable to the Company 25.168%
(2018-2019: 34.944%)
Tax effect of:
Difference due to differential Tax rates 3,063.56 8.99% (3.65) -0.07%
Prior Period Items 4.73 0.01% (6.92) -0.14%
Others (including provisions) 198.07 0.58% (12.37) -0.24%
Total tax expense 11,757.90 1,766.07
Effective tax rate 34.85% 34.75% 34.50% 34.50%
28.3 Amounts Recognised Directly in Equity

No aggregate amounts of current and deferred tax have arisen in the reporting period which have been recognised
in equity.
29. Earnings Per Share

(` in lakhs)
March 31, 2020 March 31, 2019
Profit attributable to the equity holders of the company (A) 21,981.52 3,348.12
Weighted Average number of shares issued for Basic EPS (B) 1,67,59,25,926 1,67,59,25,926
Adjustment for calculation of Diluted EPS ( C) - -
Weighted Average number of shares issued for Diluted EPS (D= B+C) 1,67,59,25,926 1,67,59,25,926
Basic EPS in ` (A/B) 1.31 0.20
Diluted EPS in ` (A/D) 1.31 0.20

Standalone
30. Segment Reporting

The Company is engagened in financing activities. It operates in a single business and geographical segment.
31. Contingent Liabilities & Commitments

(a) The company does not have any Contingent liability as on March 31, 2020 and March 31, 2019.
(b) The company has a capital commitment towards development of intangible capital assets of ` 38.64 lakhs as on
March 31, 2020 (March 31, 2019 : ` 38.64 lakhs).
(c ) The companny has off-balance sheet exposure of Undisbursed-Sanction loans amounting to ` 85,450 lakhs as
on March 31, 2020 (March 31, 2019 : ` 39,425 lakhs).
32. Employee Benefits

Majority of employees are on deputation from Small Industrial Development Bank of India (SIDBI), Gratuity, Leave
Encashment and Arrears of Salary in respect of employees deputed to MUDRA are taken care by the employer, who
have deputed the employees to this company except few emplyoees which are on contract basis . Further, MUDRA
has provided an amount of ` 20.54 lakhs (March 2019: ` 23.83 lakhs) to Profit and Loss account during the current
year. The same would be paid to SIDBI when such costs are demanded by the said companies. With respect to
contract employees, no post employment benefits are applicable.
33. Maturity Analysis of Assets and Liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be
recovered or settled.With regard to loans and advances to customers, the company uses the same basis of expected
repayment behaviour as used for estimating the Effective Interest Rate(EIR).
(` in lakhs)
Assets March 31, 2020 March 31, 2019
Within After Total Within After Total
12 months 12 months 12 months 12 months
Financials Assets
Cash and cash equivalents 4,21,125.99 - 4,21,125.99 1,73,461.18 - 1,73,461.18
Bank balances other than cash 6,09,957.15 - 6,09,957.15 3,13,301.98 - 3,13,301.98
and cash equivalents
Loans 5,31,243.88 3,69,156.23 9,00,400.10 6,18,667.90 5,64,736.44 11,83,404.34
Investments 18,727.22 - 18,727.22 40,040.37 - 40,040.37
Other Financials Assets - - - - - -
Non Financials Assets
Tax Assets (Net) 2,028.10 - 2,028.10 498.77 - 498.77
Deferred Tax Assets (Net) - 9,739.04 9,739.04 - 10,950.61 10,950.61
Property, Plant and Equipment - 4.09 4.09 - 7.78 7.78
Intangible assets under - 47.50 47.50 - 47.50 47.50
development
Other Intangible assets - 0.55 0.55 - 1.42 1.42
Other non-financials assets - - - 1,358.95 - 1,358.95
Total Assets 15,83,082.33 3,78,947.41 19,62,029.74 11,47,329.16 5,75,743.75 17,23,072.91

(` in lakhs)
Liabilities March 31, 2020 March 31, 2019
Within After Total Within After Total
12 months 12 months 12 months 12 months
Financials Assets
Payables
I) Trade payables - - - - - -
II) Other payables 251.32 - 251.32 248.48 - 248.48
Deposits 7,02,562.03 10,00,000.0017,02,562.03 3,25,963.08 11,87,500.00 15,13,463.08
Other financial liabilities 13.12 - 13.12 4.62 - 4.62
Non-Financial Liabilities - -
Other non-financial liabilities 1,147.20 27,121.93 28,269.13 - - -
Total Liabilities 7,03,973.66 10,27,121.93 17,31,095.59 3,26,216.18 11,87,500.00 15,13,716.18
Net 8,79,108.67 (6,48,174.52) 2,30,934.15 8,21,112.98 (6,11,756.25) 2,09,356.73
34. Capital Management

The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure
and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of
changes in economic conditions, annual operating plans and long term and other strategic investment plans. In order to
maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue
new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the
objectives, policies or processes for managing capital during the year ended March 31, 2020 and March 31, 2019.
The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘equity’. For this purpose, adjusted net debt is defined
as total liabilities, comprising interest-bearing loans and borrowings less cash and cash equivalents. Equity comprises
all components of equity including share premium and all other equity reserves attributable to the equity share holders.
The Company’s adjusted net debt to equity ratio is as follows.
(` in lakhs)
March 31, 2020 March 31, 2019
Deposits 17,02,562.03 15,13,463.08
Less: Cash and cash equivalents including Bank Balances (10,31,083.13) (4,86,763.16)
Adjusted net debt 6,71,478.89 10,26,699.92
Total Equity 2,30,934.15 2,09,356.73
Adjusted net debt to adjusted equity ratio 2.91 4.90
34.1 Regulatory Capital

As per RBI, NBFCs are required to maintain a minimum capital to risk weighted assets ratio (“CRAR”) consisting of
Tier I and Tier II capital of 15% of its aggregate risk weighted assets. Further, the total of Tier II capital cannot exceed
100% of Tier I capital at any point of time. The capital management process of the Company ensures to maintain the
minimum CRAR at all the times.
The primary objectives of the Company’s capital management policy are to ensure that the Company complies
with capital requirements required by regulator, maintains strong credit ratings and healthy capital ratios in order
to support its business and to maximise shareholder value.The Company manages its capital structure and makes
adjustments to it according to changes in economic conditions and the risk characteristics of its activities.
(` in lakhs)
March 31, 2020 March 31, 2019
Tier 1 capital 2,20,947.07 1,97,485.62
Tier 2 capital 1,690.34 2,228.59
Total Capital funds 2,22,637.41 1,99,714.21
Risk weighted assets 3,63,618.02 3,10,601.66
Tier 1 Capital ratio (%) 60.76 63.58
Tier 2 Capital ratio (%) 0.46 0.72
Total capital ratio (%) 61.23 64.30

Standalone
35. Events After Reporting Date

There have been no events after the reporting date that require disclosure in these financial statements.
36. Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
Since the format of the profit and loss account of applicable NBFCs does not specifically provide for disclosure of
the impact of prior period items on the current year’s profit and loss, such disclosures, wherever warranted, shall be
made in the NTA.
37. Change in Liabilities Arising from Financing Activities

(` in lakhs)
April 01, Cash Flows Changes in Exchange Other March 31,
2019 fair values difference 2020
Deposits 15,13,463.08 1,89,098.94 17,02,562.03
Total liabilities from 15,13,463.08 1,89,098.94 - - - 17,02,562.03
financing activities
(` in lakhs)
April 01, Cash Flows Changes in Exchange Other March 31,
2018 fair values difference 2019
Deposits 15,16,558.27 (3,095.19) 15,13,463.08
Total liabilities from 15,16,558.27 (3,095.19) - - - 15,13,463.08
financing activities
38. Related Party Disclosures

A. Names of related parties and nature of relationship:
Description of relationship Name of the related party
Holding Company Small Industries Development Bank of India (SIDBI)
Key Management Personnel Shri Jiji Mammen - Managing Director & CEO (Upto April, 2018)
(KMP) Shri Aalok Gupta - Managing Director & CEO (wef August, 2018)
Shri Surendra Srivastava - Chief Financial Officer (CFO)
(Upto December, 2018)
Smt. Rajni Sood - Chief Financial Officer (CFO)
(wef February 2019 Upto December 2019)
Km. Pooja Kukreti - Company Secretary (CS) (wef February 2019)
Anjani Kumar Srivastava, CFO (Since December 2019)
Related Party Shri Suchindra Misra - Director of Holding Company
Shri Mohammad Mustafa - Chairman SIDBI
Shri Ajay Kapur - Deputy Managing Director of Holding Company
Shri Manoj Mittal - Deputy Managing Director of Holding Company
Arvind kumar Jain, Non-Executive Director
Harsh Shrivastava, Non-Executive Director
Pilarisetti Satish , Non-Executive Director
Ratna D Vishwanathan, Non-Executive Director

B. Names of related parties and nature of relationship:

(` in lakhs)
Name of the Nature of Transaction For the year ended For the year ended
related party March 31, 2020 March 31, 2019
Holding Interest income on CDs 1,016.76 178.77
Company Investment in Certificate of Deposits 17,712.33 -
Receipts from Investment in Certificate of Deposits - -
Reimbursement made for Salary 585.09 552.83
Rent paid for Office - Expense 85.72 92.49
Dividend Paid 335.19 2,094.91
Charges paid towards Appraisal and 242.54 295.46
monitoring & Follow up
Receipt of India Microfinance Equity Fund (IMEF) * 25,524.80 -
Reimbursement of Other Expenses 100.81 118.73
Total 45,603.23 3,333.18
Key Salary / Remineration paid to
Management Jiji Mammen, MD & CEO (Upto April, 2018) - 2.50
Personnel Aalok Gupta, MD & CEO (Since August 2018) 70.00 46.48
(KMP)
Surendra Srivastava, CFO (Upto December 2018) - 32.09
Rajni Sood, CFO (Upto December 2019) 29.38 11.44
Anjani Kumar Srivastava, CFO 13.58 -
(Since December 2019)
Pooja Kukreti, Company Secretary 8.00 1.07
(Since February 2019)
Related Party Sitting Fees paid to
Transactions Arvind kumar Jain, Non-Executive Director 5.40 2.40
Harsh Shrivastava, Non-Executive Director 2.20 0.60
Pilarisetti Satish, Non-Executive Director 2.00 2.20
Ratna D Vishwanathan, Non-Executive Director - 0.60
C. Details of balances outstanding for related party transactions:

(` in lakhs)
Name of the Nature of Transaction As at As at
related party March 31, 2020 March 31, 2019
Holding Investment in corporate Deposits 18,729.09 -
Company Expense Payable 44.03 42.79
*Note: Government of India (GOI) has created “India Microfinance Equity Fund(IMEF)” with SIDBI with a corpus of
` 300 crore. The fund shall be utilised for extending equity or any other form of capital to Tier-II and Tier-III NBFC MFIs and
all Non-NBFC MFIs, with a focus on smaller socially oriented MFIs with the objective of poverty alleviation and achieving
long term sustainability of operations in unserved and underserved parts of the country. During the current financial year the
corpus fund of IMEF has been transferred from SIDBI to MUDRA during the January 2020. The fund is operated / managed
by MUDRA for which 1% per annum administrative fee on the drawn amount has been charged to the fund and is received by
MUDRA. Further, the inflows and outflows are credited / debited to the fund. Hence, fund balance of IMEF, net of investment
is grouped under “Other Current Liabilities” in the Balance Sheet. The balance in the fund is ` 271,21,93,059/- as on
March 31, 2020 (previous year Zero).
D. The transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. This
assessment is undertaken each financial year through examining the financial position of the related party and
the market in which the related party operates.

39. Financial Instruments – Fair Values And Risk Management
A. Classification of financial assets and financial liabilties:
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value
hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is
a reasonable approximation of fair value.
(` in lakhs)
Financial Assets and Liabilities Carrying Amount Fair Value
as at March 31, 2020 Fair value Fair value Amortised Total Level 1 Level 2 Level 3 Total
through profit through other Cost
and loss comprehensive
account Income
Financial Assets -
Cash and cash equivalents - - 4,21,125.99 4,21,125.99 - - 4,21,125.99 4,21,125.99
Bank balances other than cash - - 6,09,957.15 6,09,957.15 - - 6,09,957.15 6,09,957.15
Loans - - 9,00,400.11 9,00,400.11 - - 9,00,400.11 9,00,400.11
Investments - - 18,727.22 18,727.22 - - 18,727.22 18,727.22
Other Financials Assets - - - - - - - -
- - 19,50,210.46 19,50,210.46 - - 19,50,210.46 19,50,210.46
Payables - -
Trade payables - - - - - - - -
Other payables - - 251.32 251.32 - - 251.32 251.32
Deposits - - 17,02,562.03 17,02,562.03 - - 17,02,562.03 17,02,562.03
Other financial liabilities - - 13.12 13.12 - - 13.12 13.12
- - 17,02,826.47 17,02,826.47 - - 17,02,826.47 17,02,826.47
During the reporting period ending March 31, 2020, there were no transfers between Level 1 and Level 2 fair value measurements.
(` in lakhs)
Financial Assets and Liabilities Carrying Amount Fair Value
as at March 31, 2019 Fair value Fair value Amortised Total Level 1 Level 2 Level 3 Total
through profit through other Cost
and loss comprehensive
account Income
Financial Assets -
Cash and cash equivalents - - 1,73,461.18 1,73,461.18 - - 1,73,461.18 1,73,461.18
Bank balances other than cash - - 3,13,301.98 3,13,301.98 - - 3,13,301.98 3,13,301.98
Loans - - 11,83,404.34 11,83,404.34 - - 11,83,404.34 11,83,404.34
Investments 40,040.37 - - 40,040.37 - 40,040.37 - 40,040.37
Other Financials Assets - - - - - - - -
40,040.37 - 16,70,167.50 17,10,207.87 - 40,040.37 16,70,167.50 17,10,207.87
Payables - -
Trade payables - - - - - - - -
Other payables - - 248.48 248.48 - - 248.48 248.48
Deposits - - 15,13,463.08 15,13,463.08 - - 15,13,463.08 15,13,463.08
Annual Report 2019-20

Other financial liabilities - - 4.62 4.62 - - 4.62 4.62
- - 15,13,716.18 15,13,716.18 - - 15,13,716.18 15,13,716.18
Standalone
75
During the reporting period ending March 31, 2019, there were no transfers between Level 1 and Level 2 fair value measurements.
B. Measurement of fair value

The following methods and assumptions were used to estimate the fair values:
a. The carrying amounts of cash equivalent including other current bank balances,other receivables and other
financial liabilities including trade and other payables, etc. are considered to be the same as their fair values,
due to current and short term nature of such balances.
b. Financial instruments with fixed interest rates are evaluated by the company based on parameters such as
interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances if
required, are taken to account for expected losses of these instruments.Thus, Amortised cost shown in A,
above, is after adjusting ECL amount.
c. These are classified as Level 3 fair value hierarchy due to inclusion of unobservable inputs including counter
party credit risk.
C. Fair Value Hierarchy

The fair value of financial instruments as referred to above have been classified into three categories depending
on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active
markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs
(Level 3 measurements).

Level 1: Level 1 hierarchy includes financial instruments measured using unadjusted quoted prices in active
markets that the Company has the ability to access for the identical assets or liabilities. A financial instrument
is classified as a Level 1 measurement if it is listed on an exchange. This includes listed equity instruments,
traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds)
which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual
funds are valued at the closing NAV.Level 1: Level 1 hierarchy includes financial instruments measured using
quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value
of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the
reporting period.
Level 2: The fair value of financial instruments that are not traded in active markets is determined using valuation
techniques which maximize the use of observable market data either directly or indirectly, such as quoted prices
for similar assets and liabilities in active markets, for substantially the full term of the financial instrument but
do not qualify as Level 1 inputs. If all significant inputs required to fair value an instrument are observable the
instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based in observable market data, the instruments is
included in level 3. That is, Level 3 inputs incorporate market participants’ assumptions about risk and the risk
premium required by market participants in order to bear that risk. The Company develops Level 3 inputs based
on the best information available in the circumstances.
40. Financial Risk Management

The company has in place comprehensive risk management policy in order to identify measure, monitor and mitigate
various risks pertaining to its business. Along with the risk management policy, an adequate internal control system,
commensurate to the size and complexity of its business, is maintained to align with the philosophy of the company.
Together they help in achieving the business goals and objectives consistent with the company’s strategies to
prevent inconsistencies and gaps between its policies and practices. The Board of Directors/committtees reviews
the adequacy and effectiveness of the risk management policy and internal control system. The company’s financial
risk management is an integral part of how to plan and execute its business strategies.
The Company, through its training and management standards and procedures, aims to maintain a disciplined and
constructive control environment in which all employees understand their roles and obligations. The audit committee
is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.

Standalone
The Company’s activities expose it to a variety of risks namely:

• Credit risk
• Liquidity risk and
• Market risk
(A) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company’s loan, investment and other
financial assets. The carrying amounts of financial assets represent the maximum credit risk exposure.
i. Loans and financial assets measured at amortized cost

An impairment analysis is performed at each reporting date.
Impairment loss has been calculated based on Exposure at Default (EAD)* Probability of Default (PDs)*
Loss given Default (LGDs).
Internal rating model incorporates both qualitative and quantitative information and, in addition to
information specific to the borrower, utilise supplemental external information that could affect the
borrower’s behaviour.

Probability of Default (PDs): As there is no past trend available with the company for its own portfolio for
calculation of probability of default, the Company has taken rating based PD’s from its holding company’s
risk assessment model for Stage 1 and Stage 2 based on ratings. In cases where ratings are not available,
PDs are taken same as parent company/sponsporing company. PDs are then adjusted for Ind AS 109 ECL
calculations to incorporate forward looking information and the Ind AS 109 Stage classification of the
exposure. For the purpose of Stage 3, PDs are taken as 100%.

Loss given Default (LGDs): For the purpose of LGD calculation, the Company does not have its own
default and recovery history. Hence, In case of Secured loan portfolio, LGD has been considered based
on Minimum LGD prescribed in risk assessment model of holding Company based on security type of
loan portfolio. Currently, all loan portfolio are secured by receivables and LGD has been taken as 50%
for the same. While considering LGD 50%, collateral security held by MUDRA (lien Marked in favour of
MUDRA on the FDR) is factored for. For the purpose of Stage 3, LGD is considered at 100%. In case of
unsecured investments, LGD is considered at 100%, since there is no past history of recovery available and
forward looking information of no circumstances of recovery in future based on current position of such
investee companies.
Loans (including undrawn committed line of credit)

The ageing analysis of loans (gross of provision) has been considered from the date the contractual
payment falls due -
(` in lakhs)
March 31, 2020 March 31, 2019
0-30 Days Past Due 9,87,540.45 12,25,057.93
30-90 Days Past due - -
More than 90 Days Past Due 7,106.92 -
Total 9,94,647.37 12,25,057.93

The following table summarizes the changes in loss allowances measured using expected credit loss model -
(` in lakhs)
March 31, 2020 March 31, 2019
Opening Provision 2,228.59 2,486.03
Provision during the year 6,568.67 -
Reversal of provision - (257.44)
Total 8,797.26 2,228.59
Investment measured at amortised Cost

(` in lakhs)
March 31, 2020 March 31, 2019
No significant increase in credit risk 18,729.09 -
Significant increase in credit risk - -
Defaulted Portfolio 28,500.00 28,500.00
Total 47,229.09 28,500.00
The following table summarizes the changes in loss allowances measured using life time expected credit
loss model -
(` in lakhs)
March 31, 2020 March 31, 2019
Opening Provision 28,500.00 8.54
Provision during the year 1.87 28,491.46
Reversal of provision - -
Total 28,501.87 28,500.00
ii. Cash and bank balances

The Company held cash and cash equivalent and other bank balance of ` 10,31,083.13 lakhs at
March 31, 2020 (March 31, 2019: ` 4,86,763.13 lakhs). The same are held with bank and financial
institution counterparties with good credit rating.
Fixed Deposits measured at amortised Cost

(` in lakhs)
March 31, 2020 March 31, 2019
No significant increase in credit risk 10,31,290.15 4,86,264.16
Significant increase in credit risk - -
Defaulted Portfolio - -
Total 10,31,290.15 4,86,264.16

The following table summarizes the changes in loss allowances measured using life time expected credit
loss model -
(` in lakhs)
March 31, 2020 March 31, 2019
Opening Provision - -
Provision during the year 255.61 -
Reversal of provision - -
Total 255.61 -

Standalone
iii.
Others
Apart from loans, Investment and fixed deposits measured at amortised cost the company has no other
financial assets which carries any significant credit risk.
(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach
to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company’s reputation. Asset Liability Management Committee (ALCO) of the Company defines
its liquidity risk management strategy and sets the overall policy and risk tolerances.
(i) Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date.
The amounts are gross and undiscounted, and include contractual interest payments.
(` in lakhs)
Contractual maturities of financial 1 year 1-3 years More than Total
liabilities March 31, 2020 or less 3 years
Deposits 7,02,562.03 10,00,000.00 - 17,02,562.03
Other Payables 251.32 - - 251.32
Other financial liabilities 13.12 - - 13.12
Total 7,02,826.47 10,00,000.00 - 17,02,826.47
(` in lakhs)
Contractual maturities of financial 1 year 1-3 years More than Total
liabilities March 31, 2019 or less 3 years
Deposits 3,25,963.08 11,87,500.00 - 15,13,463.08
Other Payables 248.48 - - 248.48
Other financial liabilities 4.62 - - 4.62
Total 3,26,216.18 11,87,500.00 - 15,13,716.18
(C)
Market Risk
Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity
prices – will affect the company’s income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return.The company’s exposure to, and management of, these risks is explained below.
(i) Foreign currency risk

The Company caters mainly to the Indian Market. Most of the transactions are denominated in the company’s
functional currency i.e. Rupees. Hence the Company is not exposed to Foreign Currency Risk.
(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cashflows of a financial instrument will fluctuate
because of changes in market interest rates. The Company’s exposure to the risk of changes in market
interest rates relates primarily to the Company’s long term debt obligation at floating interest rates.
The company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest
rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate
because of a change in market interest rates.

Exposure to Interest rate risk

The interest rate profile of the Company’s interest bearing financila instruments as reported to the
management of the Company is as follows:
(` in lakhs)
March 31, 2020 March 31, 2019
Fixed-rate instruments
Borrowings 17,02,562.03 15,13,463.08
Financial Assets
Certificate of Deposits-SIDBI 18,727.22 -
Fixed Deposits 10,31,034.55 4,86,264.16
Total net (6,52,800.26) (10,27,198.93)
Fair value sensitivity analysis for fixed-rate instruments

The Company’s fixed rate instruments are carried at amortised cost and are not measured for interest rate
risk, as neither the carrying amount nor the future cash flows will fluctuate because of changes in market
interest rates.
(iii)
Price Risk
The company’s exposure to mutual fund price risk arises from investments held by the company and
classified in the balance sheet at fair value through profit or loss. Since the mutual fund are higly liquid debt
oriented funds company does not have a material price risk exposure.
41. Previous Year Regrouping

Figures for the previous year have been regrouped/reclassified/rearranged wherever necessary to make them
comparable to those for the current year.
Additional disclosures required by the Reserve Bank of India

42. Capital to Risk-Assets Ratio (CRAR)
(` in lakhs)
Particulars March 31, 2020 March 31, 2019
CRAR (%)* 61.23 64.30
CRAR - Tier I capital (%) 60.76 63.58
CRAR - Tier II capital (%) 0.46 0.72
Amount of subordinate debt raised as Tier II Capital (`) - -
Amount received on issue of Perpetual Debt Instrument (`) - -
RBI vide its letter No. DNBR(PD)No. 0026/03.10.001/2015-16 dated July 03, 2015, has approved assigning zero
risk weight to all refinance provided to Scheduled Commercial Banks including RRBs. The above ratios are based on
the same.
*Undisbursed santion amount of ` 854.5 crore is included.
43. Exposure to Real Estate Sector and Capital Market

(a) The company has no exposure to Real Estate Sector for the period ending March 31, 2020 and corresponding
period ended March 31, 2019
(b) The company has no exposure to the Capital Market for the period ending March 31, 2020 and corresponding
period ended March 31, 2019.

Standalone
44. Asset Liability Management

(` in crore)
Particulars 1 to 7 8 to 14 15 days Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over Total
As at March 31, 2020 days days to 30 month month month month to yr upto 3 years 5
days upto 2 upto 3 upto 6 1 year years upto 5 years
months months month years
Deposits* 171.88 476.75 1,250.84 2,311.30 - - 6,099.57 - - - 10,310.35
Advances 12.56 94.57 - 186.45 276.13 1,587.76 3,159.88 3,686.65 - - 9,004.00
Investments** - - - - 187.29 - - - - - 187.29
Borrowings *** 150.62 - - - 6,875.00 10,000.00 - - 17,025.62
Foreign Currency Assets - - - - - - - - -
Foreign Currency Liabilities - - - - - - - - -
* Deposits include Fixed deposits placed with Banks

** Investments includes deposits kept with Corporates (Net off Provision) and Mutual Fund.
*** Borrowings include amount received from banks under Priority Sector Shortfalls Fund as allocated by Reserve Bank of India
45. Details of Registration with Financial Regulators

Regulator Registration No.
Ministry of Company Affairs CIN U65100MH2015PLC274695
Reserve Bank of India N-14.03313
Note: There are no penalties imposed by RBI or any other regulators during the current and previous year
46. Investments
(` in crore)
S. Particulars March 31, 2020 March 31, 2019
No.
1 Value of Investments
Gross Value of Investments
In India 472.29 685.40
Outside India - -
- -
Provision for depreciation
In India 285.02 285.00
Outside India - -
- -
Net Value of Investments
In India 187.27 400.40
Outside India - -
2 Movement of provision held towards depreciation on
investments
Opening Balance 285.02 0.09
Add: Provision made during the year - 284.91
Less: Write off / write back of excess provision during the year - -
Closing Balalnce 285.02 285.00

47. Provisions & Contigencies made during the year

(` in crore)
No.
Break up of ‘Provisions and Contingencies’ shown under the
head Expenditure in Profit and Loss Account:
1 Impairment loss on Investments and Deposits 2.57 284.91
2 Impairment loss on loans and other receivables 65.69 (2.57)
3 Provision towards Current Income tax 105.46 116.35
4 Other Provision and Contingencies (with details) - -
5 Provision towards Deferred Tax Assets 12.12 (98.63)
48.
Derivatives
The company has no transaction / exposure in Forward Rate Agreement / Interest Rate Swap and Exchange Traded
Interest Rate (IR) Derivatives during the current and previous year.
The company has no unhedged foreign currency exposure during the current and previous year.
The company has no repo transactions during the current and previous year.
49. Disclosures Relating to Securitisation

1. There are no SPVs sponsored by the NBFC for securitisation transactions for the current and previous year;
and Hence,
(a) there is no amount of securitised assets as per books of the SPVs sponsored.
(b) there is no amount of exposure retained by the NBFC to comply with MRR as on the date of balance sheet
2.
The company has no exposure to securitization transactions other than MRR in the current year and
previous year
3.
The company has not sold any Financial Assets to Securitization / Reconstruction Company for Asset
Reconstruction during the current and previous year.
4. The company has not undertaken any assignment transaction during the current and previous year.
5. The company has not purchased/sold any non-performing financial assets during the current and previous year.
50. Details of Financial Assets Sold to Securitisation / Reconstruction Company for Asset Reconstruction
The Company has not sold financial assets to securitisation / reconstruction company for asset reconstruction in the
current and previous year.
51. Details of Non Performing Financial Assets Purchased / Sold

The Company has not purchased / sold non performing financial assets in the current and previous year.
52. Details of Financing of Parent Company Products

The Company has not financed any products of its Parent Company in the current and previous year, except
Investment of ` 177,12,33,200/- in purchase of Certificate of Deposit of SIDBI in current year and ` 1,21,89,41,100/-
in previous year.
53. Unsecured Advances

The Company does not have any unsecured advances in the current and previous year.

Standalone
54. Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL)
RBI vide its letter No. DNBR(PD).CO.No. 244/03.10.001/2015-16 dated August 03, 2015, has exempted MUDRA
from the applicability of credit concentration norm (single borrower) in respect of its exposure to Scheduled
Commercial Banks including Regional Rural Banks(RRB). However, in respect of other exposures, MUDRA complies
with single / group Borrower exposure norms as prescribed by RBI and during the year, the company did not exceed
Prudential Exposure Limits - Single Borrower Limit (SGL) / Group Borrower Limit (GBL).
55. Draw Down from Reserves

There has been no draw down from reserves during the current and previous year.
56. Information on Net Interest Margin

Particulars March 31, 2020 March 31, 2019
Average interest (a) 5.46% 5.52%
Average effective cost of borrowing (b) 3.76% 4.13%
Net Interest Margin (a-b) 1.70% 1.39%
57. Customer Complaints *

The Company has not received any complaint from its direct customers and it doesn’t include general enquiries/
complaints from Individuals on Prime Minister MUDRA Yojana (PMMY) or complaints by Individuals against Banks.
58. Sector wise NPAs & Movemement of NPAs

A) Sector wise NPAs
Particulars Year Ended Year Ended
March 31, 2020 March 31, 2019
% of NPA to % of NPA to
Total advance in Total advance in
that sector that sector
Agriculture & allied activities - -
MSME - -
Corporate Borrowers * 3.73% 2.35%
Services - -
Unsecured Personal Loans - -
Auto Loans - -
Other Personal Loans - -
* Coprorate borrower includes advances to Banks, NBFCs, MFIs as well as Investments made with Corporates.
B) Movement of NPAs
(` in crore)
March 31, 2020 March 31, 2019
i) Net NPAs to Net Advances (%) 0.00% 0.00%
ii) Movement of NPAs (Gross)*
a) Opening balance 285.00 -
b) Additions during the year 71.07 286.22
c) Reductions during the year - 1.22
d) Closing balance 356.07 285.00
iii) Movement of NPAs (Net)*
a) Opening balance - -
b) Additions during the year - -
c) Reductions during the year - -
d) Closing balance - -

(` in crore)
March 31, 2020 March 31, 2019
iv) Movement of provisions for NPAs (excludings provisions
on standard assets)*
a) Opening balance 285.00 -
b) Provisions made during the year 71.07 286.22
c) Write off/ write back of excess provisions - 1.22
d) Closing balance 356.07 285.00
* includes non performing (Stage 3) investments
59. Ratings Assigned by Credit Rating Agencies

Company does not have any rating as on March 31, 2020.
60. Concentration of Advances, Exposures and NPA’s

(` in crore)
No.
1 Total Advances of twenty largest borrowers * 7,977.84 11,001.42
2 Total Advances of top four NPA accounts 71.07 -
3 Percentage of Advances of twenty largest borrowers to all 87.65% 92.82%
Advances of banks and MFIs.
*The amount of borrowers do not include Undisbursed Sanction loan amount.
(` in crore)
No.
1 Total Advances and Exposures of twenty largest borrowers * 17,884.96 10,999.62
2 Total Exposure of top four NPA accounts 71.07 285.00
3 Percentage of Advances and Exposures of twenty largest 92.12% 92.85%
borrowers to all Advances of banks and MFIs.
*The amount of borrowers do not include Undisbursed Sanction loan amount.
61. Remuneration of Directors

All pecuniary relationship or transactions of the non-executive directors vis-à-vis the company shall be disclosed in
the Annual Report.
62. Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
The Company does not have Overseas assets during the current year and previous year.

Standalone
63. Disclosure related to Schedule to the balance sheet of company, as required by Annex IV of the Master Direction-
Non-Banking Finance Company - Systemically Important Non-Deposit taking Company and Deposit taking
Company (Reserve Bank) Directions, 2016 issued by the Reserve Bank of India (“RBI”) vide their Notification
No. RBI/DNBR/2016-17/45 Master Direction DNBR. PD. 008/03.10.119/2016-17 updated on February 17, 2020
(the “Notification).
Particulars Amount Outstanding Amount Overdue
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
Liabilities Side :
63.1 Loans and advances availed
by the non-banking financial
company inclusive of interest
accrued thereon but not paid:
a) Debentures :
i) Secured - - - -
ii) Unsecured (other than - - - -
falling within the meaning
of public deposits)
b) Deferred Credits - - - -
c) Term Loans (Priority Sector 17,026 15,135 - -
Shortfall Fund deposited by
Banks)
d) Inter-corporate loans and - - - -
borrowing
e) Commercial Paper - - - -
f) Public Deposits - - - -
g) Other Loan - - - -
63.2 Break-up of 1(f) above
(Outstanding public
depositsinclusive of interest
accrued thereon but not paid):
a) In the form of Unsecured - - - -
debentures
b) In the form of partly secured - - - -
debentures i.e. debentures
where there is no shortfall in
the value of security
c) Other public deposits - - - -
Assets Side :
63.3 Break-up of Loans and
Advances including bills
receivables [other than those
included in (4) below] :
a) Secured 9,004.00 11,834.04 - -
b) Unsecured - - - -
63.4 Break up of Leased Assets
and stock on hire and other
assets counting towards AFC
activities
a) Lease assets including lease
rentals under sundry debtors
i) Financial lease - - - -
ii) Operating lease - - - -

Particulars Amount Outstanding Amount Overdue

b) Stock on hire including hire
charges under sundry debtors
i) Assets on hire - - -
ii) Repossessed Assets - - -
c) Other loans counting towards - - -
AFC activities
i) Loans where assets have been - - - -
repossessed
ii) Loans other than (i) above - - - -
63.5 Break-up of Investments :

Current Investments :
a) Quoted :
i) Shares : A. Equity - - - -
B. Preference - - - -
ii) Debentures and Bonds - - - -
iii) Units of mutual funds - - - -
iv) Government Securities - - - -
v) Others (Please Specify) - - - -
b) Unquoted :
iii) Units of mutual funds - 400.40 - -
v) Others- Certificate of deposit & 472.29 285.00 - -
Corporate Deposits
Long Term investments :
a) Quoted :
v) Others-(Please specify) - - - -
b) Unquoted :
v) Others - - - -

Standalone
(` in crore)
63.6 Borrower group-wise classification of assets financed as in (63.3) and (63.4) above :
Category Secured Unsecured Total

(Amount net of provisions) March 31, March 31, March 31, March 31, March 31, March 31,
2020 2019 2020 2019 2020 2019
a) Related Parties - - - - - -
i) Subsidiaries - - - - - -
ii) Companies in the same group - - - - - -
iii) Other related parties - - - - - -
b) Other than related parties 9,004.00 11,834.04 - - 9,004.00 11,834.04
Total 9,004.00 11,834.04 - - 9,004.00 11,834.04
63.7 Investor group-wise classification of all investments (current and long term) in shares and securities
(both quoted and unquoted):
Category Market Value / Break up Book Value

or fair value or NAV (Net of Provisions)
a) Related Parties - -
i) Subsidiaries - - - -
ii) Companies in the same group 187.29 - 187.29 -
iii) Other related parties - - - -
b) Other than related parties - 400.40 - 400.40
Total 187.29 400.40 187.29 400.40
63.8 Other information
Category Amount Amount

March 31, 2020 March 31, 2019
a) Gross Non-Performing Assets
i) Related parties - -
ii) Other than related parties 356.07 285.00
b) Net Non-Performing Assets
i) Related parties - -
ii) Other than related parties - -
c) Assets acquired in satisfaction of debt - -

64. Disclosure Related to Schedule to the Balance Sheet of Company, as Required by Annex of the
Notification No. RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 Issued by the
Reserve Bank of India (“RBI”) Dated March 13, 2020
(Amount ` in crore)
Asset Classification Asset Gross Loss Net Provisions Difference
as per RBI Norms classification Carrying Allowances Carrying required as between
as per Amount (Provisions) Amount per IRACP Ind AS 109
Ind AS 109 as per Ind as required norms provisions
AS under Ind and IRACP
AS 109 norms
(1) (2) (3) (4) (5) = (3)-(4) (6) (7) =
(4) - (6)
Performing Assets Stage 1 9,208.20 16.90 9,191.29 36.07 (19.17)
Standard Stage 2 - - - - -
Subtotal 9,208.20 16.90 9,191.29 36.07 (19.17)
Non -Performing Assets
Substandard Stage 3 71.07 71.07 - 7.11 63.96
Doubtful - up to 1 year Stage 3 285.00 285.00 - 285.00 -
1 to 3 years Stage 3 - - - - -
More than 3 years Stage 3 - - - - -
Subtotal for doubtful 285.00 285.00 - 285.00 -
Loss Stage 3 - - - - -
Subtotal for NPA 356.07 356.07 - 292.11 63.96
Other items such Stage 1 - - - -
as guarantees, loan Stage 2 - - - -
commitments, etc. which
are in the scope of Ind AS Stage 3 - - - -
109 but not covered under
current Income Recognition,
Asset Classification and
Provisioning (IRACP) norms
Stage 1 9,208.20 16.90 9,191.29 36.07 (19.17)
Stage 2 - - - - -
Total
Stage 3 356.07 356.07 - 292.11 63.96
Total 9,564.26 372.97 9,191.29 328.18 44.79
Note: Performing Assets and Non-performing Assets include Investments and advances.

Standalone
65. COVID-19 Regulatory Package - Disclosure in Terms of RBI Circular Dated April 17, 2020:
(` in crore)
Particulars As at
March 31, 2020
(i) Respective amounts in SMA/overdue categories, where the moratorium/deferment was NIL
extended
(ii) Respective amount where asset classification benefits is extended NIL
(iii) Provisions made during the year NIL
(iv) Provisions adjusted during the respective accounting periods against slippages and the NIL
residual provisions
Non performing assets include Investments and advances.
Previous year’s figures have been regrouped and reclassified to conform to the current year’s methodology.

For V. C. Shah & Co
Firm No.: 109818W
Sd/- Sd/- Sd/-
Sd/- Sd/-
Anjani Kumar
Pooja Kukreti
Srivastava
Place: Mumbai
Date: June 04, 2020

Statutory Reports
Notice to Members
Notice is hereby given that 5th Annual General Meeting of hereby, re-appointed as a Nominee Director and shall
Micro Units Development & Refinance Agency Limited be liable to retirement by rotation.”
(“MUDRA”) will be held on Tuesday, September 22,
2020 at 12.00 noon through Video Conferencing (“VC”) / 4) To appoint Shri Aalok Gupta (DIN 08195214),
Other Audio Visual Means (“OAVM”) to transact the who retires by rotation at this meeting
following business: and being eligible, offers himself for
re-appointment as Director, liable for
Ordinary Businesses: retirement by rotation.
To consider and if thought fit, to pass with or without “RESOLVED THAT Shri Aalok Gupta (DIN 08195214),
modification(s), if any, the following Ordinary resolutions: Managing Director of the Company, who retires by
rotation at this Meeting and being eligible has offered
1) To consider and adopt the Audited Financial himself for re-appointment be, and is hereby, re-
Statements of MUDRA for the 5th financial appointed as a Managing Director and shall be liable
year ended on March 31, 2020, the Directors to retirement by rotation”.
Report and Auditor’s Report and Comments
and Certificate of the Comptroller & Auditor 5) To take note of the appointment of Statutory
General of India, in term of section 143(6) of Auditors of MUDRA for FY 2020-21 and their
the companies Act, 2013. remuneration.
“RESOLVED THAT the Audited Financial Statement “RESOLVED THAT pursuant to the provisions of
of the Company for the financial year ended on section 139(5), 142(1) and other applicable provisions
March 31, 2020, together with the Directors’ Report, of The Companies Act, 2013, and the Companies
Auditors’ Report along with Notes which forms an (Audit and Auditors) Rules, 2014 (including any
integral part of the Audited Annual Accounts for the statutory modification(s) or re-enactment(s)
thereof for the time being in force), the aggregate
period and Comments of the Comptroller & Auditor
remuneration of ` 3.75 lakhs, plus applicable taxes
General of India, as already circulated amongst
and out of pocket expenses payable, if any, up to
the Members of the Company, be and are hereby
` 0.50 lakh to any firm as appointed by the Comptroller
received, considered, approved and adopted.”
General of India (CAG), to conduct the statutory audit
of MUDRA, for the financial year 2020-21 be and is
2)
To declare final dividend of INR 0.15 per
hereby approved.”
equity share, aggregating to ` 25.14 crore, on
the equity shares, as on March 31, 2020. Special Business by Ordinary Resolution:
“RESOLVED THAT, a dividend of INR 0.15 per equity 6)
To consider appointment of Smt Smita
share, for the period from April 01, 2019 to March 31, Affinwalla as an Independent Director of
2020, on the Company’s Share Capital of ` 1675.93 MUDRA.
crore, as at March 31, 2020, aggregating to ` 25.14 To consider, and if thought fit, to pass with or
crore, excluding dividend distribution tax be, and is without modification the following resolution as an
hereby, declared for payment to those holders of equity Ordinary Resolution:
shares, on pro rata basis, whose names appears on

RESOLVED THAT pursuant to the provisions of
the Register of Members of the company, as on
Section 149, 150 and 152 and other applicable
March 31, 2020.”
provisions, if any, of the Companies Act, 2013 read
with the Articles of Association of the Company and
3) To appoint Shri Manoj Mittal (DIN 01400076)
the Rules made thereunder, read with Schedule IV of
who retires by rotation at this meeting the said act, Mrs. Smita Affinwalla (DIN: 07106628),
and being eligible, offers himself for who was appointed as an Additional Director
re-appointment as Director, liable for (Non-Executive Independent Director) of the Company
retirement by rotation. with effect from June 04, 2020 under section 149,
“RESOLVED THAT Shri Manoj Mittal (DIN 01400076), 150, 152 (2) and 161 (1) of the Companies act, 2013
Nominee Director (SIDBI) of the Company, who be and is hereby appointed as Independent Director
retires by rotation at this meeting and being eligible of the Company to hold office for a term up to three
has offered himself for re-appointment be, and is consecutive years commencing from June 04, 2020.

Notice

RESOLVED FURTHER THAT MD & CEO / CFO / CS of the Company, be and are hereby severally authorized to do
such acts, matters, deeds and things as may be necessary and incidental to give effect to this resolution including
filing of e-Form DIR-12 with the Ministry of Corporate Affairs.”
By order of the Board of Directors
For Micro Units Development &

Refinance Agency Limited
Aalok Gupta
MD & CEO
Date: August 21, 2020 Address: Swavalamban Bhavan, C-11, G-Block,

Place: Mumbai Bandra Kurla Complex, Bandra East, Mumbai-400051.
1.
In view of the continuing Covid-19 pandemic, the General of India (C & AG) and in terms of sub-section
Ministry of Corporate Affairs (“MCA”) has vide its (1) of Section 142 of the Companies Act, 2013,
circular dated May 05, 2020 read with circulars their remuneration has to be fixed by the Company
dated April 08, 2020 and April 13, 2020 (collectively in the Annual general meeting or in such manner as
referred to as “MCA Circulars”) permitted the holding the Company in General Meeting may determine.
of the AGM through VC / OAVM, without the physical The Members of your Company at this Annual
presence of the Members at a common venue. In general meeting authorised the Board of Directors
compliance with the provisions of the Companies to fix the remuneration of Statutory Auditors for the
Act, 2013 (“Act”) and MCA Circulars, the AGM of the FY 2020-21.
Company is being held through VC / OAVM.
6.
In compliance with the aforesaid MCA Circulars,
2.
Pursuant to the provisions of the Act, a Member Notice of the AGM along with the Annual Report
entitled to attend and vote at the AGM is entitled 2019-20 is being sent only through electronic mode
to appoint a proxy to attend and vote instead of to all the Members at their email ID registered with the
himself/herself and such proxy/ proxies need not be a Company/RTA. Members are requested to promptly
Member of the Company. Since this AGM is being held notify any changes in their email ID to the Company at
pursuant to the MCA Circulars through VC / OAVM, [email protected].
physical attendance of Members has been dispensed
with. Accordingly, the facility for appointment of 7.
Members may note that the Notice and Annual
proxies by the Members will not be available for the Report 2019-20 will also be made available on
AGM and hence the Proxy Form and Attendance Slip the Company’s website www.mudra.org.in under
are not annexed to this Notice. Section 103 of the Act.
3. Members attending the AGM through VC / OAVM 8. Members are requested to send their queries, if any,
shall be counted for the purpose of reckoning on Annual Report, to the Company Secretary, not less
the quorum. than 2 days before the date of Meeting, so that the
requisite information/ explanations can be provided
4.
Corporate Members intending to send their in time.
authorized representatives to attend the Meeting are
requested to send to the Company a certified copy of 9.
Since the AGM will be held through VC / OAVM,
its Board or governing body Resolution/Authorization the Route Map is not annexed in this Notice.
etc., authorizing their representative to attend the
AGM through VC / OAVM and vote on their behalf at 10. Details for attending the AGM through VC / OAVM will
the Meeting. be shared with the members.
5. Pursuant to Section 139 of the Companies Act, 2013, 11. Explanatory Statement pursuant to Section 102 of
the Auditors of the Company is to be appointed the Companies Act, 2013 for all Items annexed to
or re-appointed by the Comptroller and Auditor this Notice.

Statutory Reports
EXPLANATORY STATEMENT PURSUANT TO Proposal for appointment of Independent Director

SECTION 102 OF THE COMPANIES ACT, 2013: requires the approval from Members of the Company.
Item No. 06:
The Board of Directors of the Company had appointed She holds NIL equity shares in MUDRA. None of the
Mrs. Smita Affinwalla (DIN: 07106628), aged 57 years, directors and key managerial personnel of the company
as an Additional Director (Non-Executive Independent or their relatives except Mrs. Smita Affinwalla are in any
Director) of MUDRA w.e.f. June 04, 2020, for a period way concerned or interested, financially or otherwise, in the
of three years, in terms of appointment letter dated said resolution.
June 22, 2020. Her appointment as an Additional
Your directors recommend the above resolution for
Director (Non-Executive Independent Director) was
approval of members.
subject to approval of members in the forthcoming
Annual General meeting. In accordance of section
By order of the Board of Directors
149 (1), 150, 152 (2) and 161 (1) of the Companies act,
2013, Mrs. Smita Affinwalla shall hold office up to the For Micro Units Development &
date of forthcoming Annual General Meeting and is Refinance Agency Limited
eligible to be appointed as an Independent Director for
a term up to 3 years. Aalok Gupta
MD & CEO
Declaration has been received from Mrs. Smita
Affinwalla that she meets the criteria of Independence Address: Swavalamban Bhavan,
prescribed under Section 149 of the Act read with C-11, G-Block,
the Companies (Appointment and Qualification of Date: August 21, 2020 Bandra Kurla Complex,
Directors) Rules, 2014. Place: Mumbai Bandra East, Mumbai-400051.

Notes
Notes
Corporate & Registered Office:
Swavalamban Bhavan, C-11, G-Block, Bandra-Kurla Complex,
Bandra (E), Mumbai-400 051.
www.mudra.org.in | Email: ceo@ mudra.org.in

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Annual Report

Contents Five Years of Pradhan Mantri Mudra Yojana 04

Auditor’s Report Under “Non-Banking

Independent Auditors’ Report 35

Statement of Profit and Loss 43

Statement of Cash Flows 44

Statement of Changes in Equity 46

Significant Accounting Policies 47

Notes to Financial Statements 59

Annual Report 2019-20 01

02 Micro Units Development and Reﬁnance Agency Limited

Shri Mohammad Mustafa – IAS

Shri Pankaj Jain – IAS Shri Suchindra Misra

Shri Harsh Shrivastava Smt. Smita Affinwalla Shri Aalok Gupta

Annual Report 2019-20 03

Five Years of Pradhan Mantri Mudra Yojana

Cumulative Outreach to Addressing the Credit Needs

MSE Borrower Accounts 68% 51%

` 12.30 lakh crore Women Beneficiaries belonging

Pmmy: Target vs Achievement (Amt. in ` lakh crore)

FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20

04 Micro Units Development and Reﬁnance Agency Limited

PMMY during 2019-20

Small Finance 29,350 29,501 29,794 -1%

Micro Finance 57,425 57,967 63,471 -9%

Non-Banking 40,200 40,518 47,137 -14%

Target vs Achievement in ` crore

Public Sector Private Small Finance Micro Finance Non-Banking

Annual Report 2019-20 05

The achievement data indicates 5% growth over the State-wise Performance

Merger of SKS Microfinance (Bharat Finance Ltd.) with

Bihar 27,442 24,406 12%

Ujjivan Small Finance Bank was on West Bengal 26,790 26,462 1%

Gujarat 13,746 13,217 4%

Total 2,46,176 2,31,654 7%

06 Micro Units Development and Reﬁnance Agency Limited

1 Hyderabad 11,35,978 4,705 1.82%

2 Bengaluru urban 5,22,505 3,361 0.84%

3 Kolkata 6,76,424 2,831 1.09%

4 Pune 2,51,856 2,348 0.40%

5 North 24 Parganas 5,24,089 2,302 0.84%

6 Ahmedabad 3,96,763 2,276 0.64%

7 Tiruchirappalli 6,16,395 2,264 0.99%

8 Murshidabad 5,79,188 2,065 0.93%

9 Belgaum 3,48,394 2,012 0.56%

10 Chennai 2,56,599 2,001 0.41%

Total 53,08,191 26,165 8.52%

Annual Report 2019-20 07

North 1,24,56,705 82,045 1,12,92,193 74,437 10%

East 1,95,89,404 84,574 1,86,58,660 79,581 6%

North East 22,78,699 10,824 30,60,244 13,145 (18%)

South 1,74,54,720 98,767 1,73,15,948 96,930 2%

West 1,04,68,078 61,285 95,43,273 57,629 6%

Total 6,22,47,606 3,37,495 5,98,70,318 3,21,721 5%

08 Micro Units Development and Reﬁnance Agency Limited

Loan Category Analysis

FY 2019-20 FY 2018-19 % change

Note: Figures in parenthesis indicate the share in percentage.

Distribution by number of accounts