Note 1.1:
Terms/ Rights attached to equity shares
The company has only one class of Equity shares having par value of Rs.10 each.
Each holder of equity shares is entitled to one vote per share.
The holders of equity shares are entitled to dividends,if any,proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.
In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaning assets of the company, after distribution of all preferential amounts.
However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
a) As per Section 29C(1) of National Housing Bank Act 1987, the Company is required to transfer atleast 20% of its Net profit every year to a reserve before any dividend is declared.For this purpose any Special Reserve created by the Company under Section 36(1)(viii) of the Income Tax Act,1961 is considered to be an eligible transfer.
b) The Company has transferred an amount of Rs.5,190 Lakhs(Previous Year Rs.4,205 Lakhs) to Special Reserve in terms of Section 36(1)(viii) of the Income TaxAct,1961.
The NCD are redeemable at par.The NCD are secured by way of first charge on book-debts equivalent to loan outstanding and mortgage on immovable property.The NCD are reedeemable on April 23,2018.
For Non Current portion of Secured Long Term Borrowings Refer Note 4 Note 8.2 :
The Company has transferred Rs.12.66 Lakhs(Previous YearRs.10.88 Lakhs) to Investor Education and Protection Fund during the year.
Note 2.1 :
According to the amended Companies (Accounting Standard) Rules, 2016, the proposed dividend of Rs.2,962 Lakhs (Previous Year Rs.2,693 Lakhs) and dividend distribution tax thereon of Rs.609 Lakhs (Previous Year Rs.548 Lakhs) are not recognised as liability as at March 31, 2018. However, the same will be recognised as liability on approval of shareholders at ensuing Annual General Meeting. Due to such change, Current liability is lower by Rs.3,571 Lakhs (Previous Year Rs.3,241 Lakhs) and Reserves & Surplus is higher to that extent.
Note 3.1 :
The Company has pledged one of its residential flat located at Mumbai, as collateral security against the Non convertible Debentures aggregating to Rs.4,500 Lakhs.
NOTE 4 NOTES FORMING PART OF THE ACCOUNTS:
1. Housing Loans are secured by:
a) Equitable mortgage of property and / or;
b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,
c) Corporate Guarantees, wherever applicable.
2. Contingent Liabilities:
a) With respect to pending Income Tax disputes of Rs.275 Lakhs (Previous Year - Rs.277 Lakhs). The company has preferred appeal/s against the same and also has made payments under protest.
b) Bank Guarantees:
i) Rs.150 Lakhs given in favor of Kotak Mahindra Life Insurance Company Ltd. in lieu of premium deposit for “Kotak Term Group Plan” Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs.75 Lakhs).
ii) Rs.100 Lakhs given in favor of Future Generali India Life Insurance Company Ltd. in lieu of premium deposit for “Future Generali Loan Suraksha Plan” policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - Rs.50 Lakhs).
iii) Rs.50 Lakhs given in favor of Aditya Birla Sun Life Insurance Company Ltd. in lieu of premium deposit for “Aditya Birla Sun Life Insurance Group Asset Assure Plan” policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - Rs.50 Lakhs)
3. Housing Loans include loans amounting toRs. 12,444 Lakhs (Previous YearRs.8,553 Lakhs) against which the company has taken possession (including symbolic possession) of the property under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and held such properties for disposal.
4. Employee Benefits: Defined Contribution Plan:
The Company makes contribution to Employees’ Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees. The Company has recognized Rs.74 Lakhs (Previous yearRs. 21 Lakhs) for Employees’ Pension Scheme and ' NIL (Previous yearRs.1 Lakhs) for Employee State Insurance Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.
Defined Benefit Plans:
Provident Fund
An amount of Rs.130 Lakhs (Previous year Rs.167 Lakhs) has been charged to Statement of Profit and Loss on account of this defined benefit scheme.
Leave Encashment
An amount of Rs.1 Lakhs (Previous year Rs.24 Lakhs) has been charged to Statement of Profit and Loss for this benefit scheme during the year.
Gratuity Plan
Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.
The estimate of future salary increase considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors such as demand and supply in the employment market.
Expected contribution to Gratuity Fund in next year aggregates to Rs.263 Lakhs. (Previous YearRs.87 Lakhs)
6. Segment Reporting:
The company’s main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard - 17 on Segment Reporting as specified under Sec. 133 of the Companies Act, 2013.
7. Leases:
Company has entered into agreements for taking on lease basis certain office premises. Lease payments recognized in the Statement of Profit and Loss for the year is Rs.710 Lakhs (Previous YearRs.662 Lakhs).
Future lease rental obligation under non-cancellable leases:
a) Not later than one year: Rs.201 Lakhs (P.Y. Rs.136 Lakhs)
b) Later than one year and not later than five years. : Rs.536 Lakhs (P.Y. Rs.440 Lakhs)
c) Later than five years. : Rs.280 Lakhs (P.Y. Rs.141 Lakhs)
In compliance with the Accounting Standard - 22 relating to “Accounting for Taxes on Income” as specified under Sec. 133 of the Companies Act, 2013, the Company has released Rs.710 Lakhs (Previous year charged Rs.302 Lakhs) in the Statement of Profit and Loss during the current financial year.
Outflow in respect of above provisions; both timing & certainty would depend on developments/ Outcome of these events.
11. The Classification ofAssets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Schedule III to the Companies Act, 2013.
The following disclosures have been given in terms of NHB’S Notification No.NHB.HFC.CG- DIR.1/MD&CEO/2016, dated 9th February, 2017 and in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-11 dated October 11, 2010:
** According to the accounting standards specified under Sec. 133 of Companies Act, 2013, the proposed dividend of Rs.2,962 Lakhs and dividend distribution tax thereon of Rs.609 Lakhs are not recognized as liability as at 31st March, 2018 in the Financial Statements. However, the Company has reduced such proposed dividend and dividend distribution tax thereon, for determining capital funds for computing capital adequacy ratio as on 31st March, 2018.
a) Derivative transaction,
b) Securitization and assignment transaction,
c) Transaction of purchase and / or sale of non-performing financial assets,
d) Financing of parent company product, and
e) Finance of any unsecured advances against intangible securities such as rights, licenses, authority etc. as collateral security.
Accordingly, disclosures required under para no 3.5. as per NHB Notification No.NHB.HFC.CG- DIR.1/ MD&CEO/2016, dated 9th February, 2017 are not applicable.
VIII. The Company has not exceeded limit prescribed by NHB for Single Borrower Limit (SGL) and Group Borrower Limit (GBL).
IX. The Company has not obtained registration from any other financial sector regulators.
X. NHB has not raised any stricture or direction in their inspection carried out during the year. Further, NHB has not imposed any penalty on the Company during the year.
i) Names of Related Parties and description of relationship Key Management Personnel:
a. Shri. S. Gopakumar - Managing Director & CEO
b. Shri. S. Sridharan - Sr. Vice President, Company Secretary & CFO
ii) Details of transactions and balance at the year end with related parties: a. Shri S. Gopakumar - Managing Director & CEO:
There are no transactions other than sitting fees paid to Non-Executive Directors. During the year, Rs.12 Lakhs (Previous YearRs.9.40 Lakhs) were paid to Non-Executive Directors towards Sitting Fees. Details are as under:
XIV. During the year,
a) No prior period items occurred which has impact on Statement of Profit & Loss,
b) No change in any accounting policy, and
c) There were no circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.
XV. The Company has no subsidiary. Hence, requirement of consolidated financial statement is not applicable to the Company.
XVII. Concentration of Public Deposits: The Company has not accepted any public deposits.
*Pursuant to the communication received from National Housing Bank (NHB), the additional provision made by the Company in the previous financial years towards the Standard assets and Non-Performing Assets are reclassified to provisions for Non-Performing Assets.
XXIII. The Company does not have any overseas assets and any off balance sheet Special
Purpose Vehicle (SPV), which requires to be consolidated as per accounting norms.
5. Underthe Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management and confirmation sought from suppliers on registration with specified authority under MSMED, principal amount, interest accrued and remaining unpaid and interest paid during the year to such enterprise is as follows;
6. Figures for previous year have been regrouped / reclassified wherever necessary.
7. Figures have been rounded off to the nearest Rupees in Lakhs.
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