sriman madhwa sidhantaonnahini permanent nidhi ltd · 2020. 11. 30. · 1 sriman madhwa...

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Sriman madhwa Sidhantaonnahini Permanent nidhi Ltd

NOTICE TO SHAREHOLDERS

Notice is hereby given that the One Hundred and Thirty Eighth Annual General Meeting of the shareholders of Sriman Madhwa Sidhantaonnahini Permanent Nidhi Limited will be held at

Sri Raghavendra Sabha Mandapam, No. 20/21, Singarachari Street, Triplicane, Chennai - 600 005 at 03.00 p.m., on Saturday the 19th December 2020 to transact the following business:

ORDINARY BUSINESS:

1. ToConsiderandifdeemedfit,topasswithorwithoutmodification,thefollowingresolutionasan Ordinary Resolution:

“RESOLVED that the Audited Balance Sheet of the Company as at 31st March 2020 and the StatementofProfitandLossaccountandtheCashflowstatementfortheyearendedonthatdate together with the Reports of Directors and of the Auditors thereon as presented to this Annual General Meeting, be and are hereby approved and adopted.”


“RESOLVED that dividend of `.1.00 per equity share be and is hereby declared, on the fully paid up Equity shares of `.10/- each in the paid up capital of the company as on 31/03/2020 to those members whose names appear in the Register of Members of the company as on the date of the Annual General Meeting.”


To appoint a Director in the place of Sri.S.Narayanan, Director / Vice President (DIN: 02740839) who retires by rotation in terms of Article 11(b) of the Articles of Association of the Company and who being eligible, offers himself for re-appointment.


To appoint a Director in the place of Sri. K.S.Madhukar, Director, (DIN: 05158265) who retires by rotation in terms of Article 11(b) of the Articles of Association of the Company and who being eligible, offers himself for re-appointment.


To appoint a Director in the place of Sri.L.Madhavan, Director (DIN: 00729891) who retires by rotation in terms of Article 11(b) of the Articles of Association of the Company and who being eligible, offers himself for re-appointment.

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SPECIAL BUSINESS:

6. ToconsiderandifthoughtfittopassthefollowingresolutionasanOrdinaryResolutionwithor

withoutmodification:

a. RESOLVED that the Authorized Share Capital of the Company be increased from

`.10,00,00,000/- (Rupees Ten Crores only) divided into 1,00,00,000/- (One Crore only) Equity

Shares of `.10/- (Rupees Ten only) each to `.25,00,00,000/- (Rupees Twenty Five Crores only)

divided into 2,50,00,000/- (Two Crores Fifty Lakh only) Equity Shares of `.10/- (Rupees Ten

only) each, by the creation of 1,50,00,000 Equity shares of `.10/- (Rupees Ten only ) each,

ranking paripassu with the existing equity shares of the Company.

b. Amendment to the Memorandum of Association :

ToconsiderandifthoughtfittopassthefollowingresolutionasaSpecialResolutionwithor


RESOLVED that the Memorandum of Association of the Company be amended in the following

manner:

The existing Clause 5 of the Memorandum of Association be and is hereby deleted and in its

place the following be and is hereby substituted as Clause 5.

The Authorised Share Capital of the company is `.25,00,00,000/- (Rupees Twenty Five crores

only) divided into 2,50,00,000 (Two Crores Fifty lakhs only) Equity Shares of `.10/- (Rupees

Ten only) each”.

C. Amendment to Articles of Association:

ToconsiderandifthoughtfittopassthefollowingresolutionasaSpecialResolutionwithor


RESOLVED that, the Articles of Association of the company be amended in the following

manner:

The existing Article 6 of the Articles of Association be and is herby deleted and the following be

and is hereby substituted as Article 6:

The Authorised Share Capital of the company shall be as per Clause 5 of the Memorandum

of Association of the Company. The company shall have the power to increase or reduce the

capital for the time being of the company.

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7. Appointment of Independent Director :

Toconsiderandifdeemedfit,topassthefollowingasaOrdinaryResolutionwithorwithoutmodification(s):

RESOLVED THAT pursuant to the provisions of Sections 149,152 read with Schedule IV and other applicable provisions of the Companies Act, 2013 and the Companies (appointment and QualificationsofDirectors)Rules,2014theretoorre-enactment(s)thereofforthetimebeingin force, Prof.Dr.R.Nagendran holding DIN 0894353 has offered himself for the appointment as Independent Director and in respect of whom the Company has received a Notice in writing from a Member under section 160 of the Companies Act, 2013 proposing his candidature for the officeofIndependentDirector,beandisherebyappointedasanIndependentDirectoroftheCompany,notliabletoretirebyrotation,toholdofficeforaperiodoffive(5)consecutiveyearsfrom 19th December 2020 upto 18th December 2025.

8. Payment of Donation to Sri Madhwa Sidhanta Charitable Trust, Chennai.

ToConsiderandifdeemedfit,topassthefollowingresolutionasanOrdinaryResolutionwithorwithoutmodification(s):

RESOLVED THAT pursuant to Section 181 of the Companies Act 2013, approval of the members be and is hereby accorded to the Board of the Nidhi to ratify the contributions made to Sri Madhwa Sidhantha Charitable Trust, Chennai, a sum of `.10,00,000/- (Rupees Ten lakhs only) towards donation.

9. Payment of Grant-in-Aid to Sriman Madhwa Sidhantaonnahini Sabha

ToConsiderandifdeemedfit,topassthefollowingresolutionasanOrdinaryResolutionwithorwithoutmodification(s):

RESOLVED THAT pursuant to Section 181 of the Companies Act 2013 and Clause 3 (c) of the Memorandum of Association of the Company read with clause 4(c) of Articles of Association, the consent of the members be and is hereby accorded for making a provision for a sum of `.16,00,000/- (Rupees Sixteen lakhs only) towards payment of a Grant-in-aid to Sriman Madhwa Sidhantaonnahini Sabha, Tiruchanur” for the year 2019– 2020.

(By order of the Board)

Place: Chennai M. BHAGAVANTHA RAO Date: 17.10.2020 Director / President DIN : 02895468

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NOTE:

1. The relative Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 in respect of items 6, 7, 8 and 9 are annexed hereto.

2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY/ PROXIES TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF. SUCH A PROXY/ PROXIES NEED NOT BE A MEMBER OF THE COMPANY. A person can act asproxyonbehalfofmembersnotexceedingfifty(50)andholdingintheaggregatenotmorethan ten percent of the total share capital of the Company. The instrument of Proxy in order to beeffective,shouldbedepositedattheRegisteredOfficeoftheCompany,dulycompletedandsigned, not less than 48 hours before the commencement of the meeting. A Proxy form is sent herewith.

3. Members are requested to advise the Company immediately of any change in their address.

4. The Register of Members and share transfer book of the Nidhi will be closed from 06.12.2020 to 19.12.2020 (both days inclusive).

5. The Nomination for Election of Director along with a deposit of `.10,000/- (Rupees Ten Thousandonly)mustbefilednot less than14daysbefore theMeetingasperSection160oftheCompaniesActasmodifiedforNidhiCompanybyNotificationNo.GSR465[E]dated05.06.2015 issued by Ministry of Corporate Affairs, Govt. of India, New Delhi.

6. Members intending to ask for information at the Annual General Meeting regarding any matter in the Directors’ Report or any item in the statement of accounts are requested to leave notice regardingtheparticularsofinformationrequiredattheRegisteredOfficeoftheNidhiatleastseven days before the General Body Meeting.

7. Members are requested to give instruction for matured deposits and interest accrued, if any, asthematureddepositsremainingunclaimedforsevenyearsfromthedatetheyfirstbecamedue for payment are now required to be transferred to the “Investors Education and Protection Fund” established by the Central Government under Section 125 of the Companies Act, 2013.

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EXPLANATORY STATEMENT IN RESPECT OF THE SPECIAL BUSINESS PURSUANT TO SECTION 102 OF THE COMPANIES ACT 2013

Item No.6 :

The Authorized share capital of the Company is `.10,00,00,000/-(Rupees Ten Crores only)

divided into 1,00,00,000/-(One Crore only) Equity Shares of `.10/- (Rupees Ten Only) each.

The paid up share capital of the company is `.6,48,61,590/- divided into 64,86,159 equity

shares of `.10/- each. Considering the future business expansion and the need of more funds for advances and to meet the NOF norms as per the Nidhi Rules 2014, your company proposes to increase the paid up capital by making a rights offer to the existing shareholders. To facilitate the proposed issue, it has been decided to increase the Authorised share capital

from `.10,00,00,000 to `. 25,00,00,000 by creation of additional 1,50,00,000 equity shares of

`.10/- each which will rank pari passu with the existing equity shares of the Company.

The proposed increase of the Authorised share capital of the Company requires amendments to the capital clause of the memorandum of association and the existing Article 6 of the Articles of Association which deals with share capital of the company.

None of the Directors and Key Managerial Personnel of the Company or their relatives is concernedorinterested,financialorotherwiseinthesaidordinaryresolutions.

The Board recommends the Ordinary / Special resolution set forth in item No. 6(a) to (c) above for approval of the shareholders.

Item No.7:

The Board proposed to induct Prof Dr.R.Nagendran as Independent Director of the Nidhi.

Prof Dr.R.Nagendran having DIN 08943531 born in November 1951 is a graduate in Chemistry and holds a Master degree in Zoology from Bangalore University. He also holds a doctorate on Ecology and Ethology from the Bangalore University. He was an Assistant Professor from 1993 to 2001 and as a professor from 2001 to 2011 in the Centre for Environmental studies, Anna University. He served on the Bench of the National Green Tribunal, New Delhi from August 2011 to May 2016. His judgements have played a role in developing environmental jurisprudence in the country. His induction into the Board will enhance and greatly help the Nidhi in its future development and his appointment will be in the interest of the Nidhi.

In theopinionof theBoard,Prof.Dr.R.Nagendran fulfils thecriteria forbeingappointedasIndependent Director in accordance with Section 149 of the Act, and the rules framed there under.Consideringthequalification,experience,statureandstandinghisappointmentasanIndependentDirectorwouldimmenselybenefittheNidhi.

None of the Directors and Key Managerial Personnel of the Company or their relatives is concernedorinterested,financialorotherwiseinthesaidOrdinaryResolution.

The Board recommends the Ordinary resolution set forth in Item No.7 above for approval of the

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shareholders.

Item No. 8 :

The Madhwa Sidhanta Charitable Trust is managed and run by the Nidhi and it is a arm of the Nidhi forextendingfinancialassistanceto theneedy.Tocontinue theactivitiesof theTrust,

Nidhi has donated a sum of `.10 lakhs to Sri Madhwa Sidhantha Charitable Trust, Chennai for its various philanthropic activities during the year 2019-2020.

Since the company’s annual contribution towards this donations be in excess of limits stipulated under Section 181 of the Companies Act, 2013 the approval of the shareholders is sought under Section 181 of the Companies Act, 2013.


The Board recommends the Ordinary resolution set forth in Item No.8 above for approval of the shareholders. “

Item No.9 :

The Clause 3(c) of the Memorandum of Association read with clause 4(c) of Articles of Association empowers the Company to make provisions for payment of a Grant- in- Aid to Sriman Madhwa Sidhantaonnahini Sabha, Tiruchanur. The Grant-in-Aid payable for the year

2019-2020 works out to `.61,04,476/- (Rupees Sixty One lakh four thousand four hundred and seventysixonly)andconsideringtheprofitearnedforthesaidyearandtheneedtoaddress

the interests of the other stakeholders the payout has been restricted to `.16,00,000/- for the year.

The Nidhi has considered a sum of ̀ .16,00,000/- (Rupees Sixteen Lakhs only) towards payment of Grant-in-aid to S M S O Sabha for the year 2019 - 2020.

Since the company’s annual contribution towards this donation be in excess of limits stipulated under Section 181 of the Companies Act, 2013 the approval of the shareholders is sought under Section 181 of the Companies Act, 2013.


The Board recommends the Ordinary resolution set forth in Item No.9 above for approval of the shareholders.

(By order of the Board)

Place: Chennai M. BHAGAVANTHA RAO Date: 17.10.2020 Director / President DIN No. 02895468

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ONE HUNDRED AND THIRTY EIGHTH ANNUAL REPORT OF THE DIRECTORS OF SRIMAN MADHWA

SIDHANTAONNAHINI PERMANENT NIDHI LIMITED,

Regd.Office:No.37CarStreet,Triplicane,Chennai-600005.

BOARDS’ REPORT

To the Members,

Your Directors have pleasure in submitting their 138th Annual Report of the Company together with the Audited Statements of Accounts for the year ended 31st March, 2020.

1. FINANCIAL RESULTS

The Company’s performances for the year along-with previous year’s figures are givenhereunder:

Particulars 31st March 2020 31st March 2019 `. `.

Revenue from operations 32.63,89,674 31,31,24,838

Other income 31,29,519 49,35,288

Total Revenue 32,95,19,193 31,80,60,126

Expenses

Employeebenefitsexpense 6,59,81,742 6,46,89,811

Finance costs Interest expense 19,50,03,980 17,35,15,136

Depreciation and amortization expenses 81,88,011 82,98,906

Other Expenses 3,74,21,346 3,66,26,683

Total Expenses 30,65,95,079 28,31,30,536

ProfitbeforeTax 2,29,24,114 3,49,29,590

Tax expenses

(1) Current tax (74,60,000) (1,03,70,000)

(2) Deferred tax 75,711 3,10,978

(3) Previous year Income Tax (2,78,133) 30,750

Profit for the year 1,52,61,692 2,49,01,318

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2. DIVIDEND

Your Directors are pleased to recommend a dividend of 10 % (`.1.00 per equity share) on the paid-up capital of the company (For the year 2018-19 dividend was paid at 13%).

The dividend if approved and declared at this Annual General meeting would result in a Dividend outflowof`.64,86,159/- .

3. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION

FUND

The company has transferred unpaid dividend of `. 3,47,419/- to the Investor Education and Protection Fund as per the provisions of the Act. This pertains to unclaimed/ unpaid dividend for thefinancialyear2011-12.

4. AMOUNTS TRANSFERRED TO RESERVES :

The Directors have proposed to transfer a sum of `. 71,75,533/- to General Reserve. The Directors have also transferred the amount lying to the credit of Capital Redemption Reserve to General Reserve as the purpose for which the reserve was created ceased to exist.

5. REVIEW OF BUSINESS OPERATIONS AND FUTURE PROSPECTS

Your Directors wish to present the details of Business operations done during the year 2019-2020.

The Nidhi has received fresh Deposits to the extent of `.44.61 Crores during the year and the total deposits as at 31.03.2020 stood at `. 283.17 Crores.

The details regarding Registered Mortgage Loans and Jewel Loans advanced during the financialyear2019–2020ascomparedtotheearlierFinancialyeararegivenbelow

Particulars For the year For the year Increase/ % 31st March 2020 31st March 2019 Decrease `. `. `.

Jewel Loans advanced 402,14,88,577 315,45,33,505 86,69,55,072 27.48

Registered Mortgage Loans advanced 8,99,00,000 9,05,00,000 (- ) 6,00,000/- (0.66)

Theprofitaftertaxfortheyearis`.152.62lakhsasagainsttheprofitof`.249.01 lakhs for the previous year.

6. R M LOANS AND NPA’S :

The total number of Registered Mortgage Loans as on 31st March 2020 is 481 nos. of accounts for an outstanding balance amount of ` 29,93,99,880/-

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There are 25 NPA accounts with a total outstanding amount of `.2.16 Crores. The outstanding dues are secured adequately and the Nidhi is closely working to collect the dues and reduce the NPA’s.

7. BRANCHES:

Your Nidhi has proposed to open its 37th branch at Erode on 22nd October 2020 to cater to the needs of local members who are all having their deposits with our various branches.

It is a great pleasure to inform you that, your Nidhi had acquired a small piece of land around 1260sqft at 3rd Main Road, Nanganallur, Chennai-600061 at a cost of `. 1,72,05,270/- with an intent to construct a building to house its Nanganallur Branch. We hope that the building will be constructed during the year 2021 and our Nanganallur Branch will start functioning at the new premises before the end of the year 2021.

Further, we are happy to share that, all branches of the Nidhi are functioning well meeting the expectations of our members in their respective locations to enhance the business prospects of the Nidhi.

8. MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL

POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIALYEAR

TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT

The following material changes and commitment occurred during the year under review affecting thefinancialpositionoftheCompany.

The major exposure of the Nidhi’s business is in Jewel Loan and the market volatility in gold prices directly affect the business of the Nidhi. The Management’s prudent measures / decision at the appropriate time in advances of Jewel Loan have considerably reduced the risk in realisingtheloanamount.InthecaseofRegisteredMortgageLoanfewborrowersarefindingitdifficultinhonouringtheircommitmentsforduerepaymentofloanamountduetothesluggisheconomic condition witnessed in the country during the year which resulted and affected their earningcapacity.Theseloansstandfullysecured.Therearenomajorfinancialchangesoranyforeseeablechangesinthemarketconditionsaffectingthefinancialpositionofthecompanyexcept the above. The Nidhi doesn’t have any commitment to any authorities for payment of any dues except to the extent indicated in Para 19 hereunder.

9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE

EARNINGS AND OUTGO

The provisions of Section 134(m) of the Companies Act, 2013 do not apply to our Company. TherewasnoforeignexchangeinfloworOutflowduringtheyearunderreview.

10. STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK

MANAGEMENT POLICY OF THE COMPANY

TheNidhiisdealinginfinancialproductsbyacceptingDepositsfrommembersandlendingonsecurity based assets - on Gold ornaments and Mortgage of Properties. The risks associated

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in our business operations include credit risk, liquidity risk, interest rate risk and operational risk..The Risk Management and the Asset Liability Management are taken care of by the Board which reviews, monitors these risks at periodic intervals. The Nidhi manages credit risk through stringent credit norms established through several years of experience in this line of business and continues to follow the time tested practice of personally assessing every borrower, before committing to a credit exposure. This process ensures that the expertise in lending operations acquired by the Nidhi is put to best use and acts to mitigate credit risks.

Liquidity risk and interest rate risk arising out of maturity mismatch of assets and liabilities are managed through regularmonitoringof thematurity profilesby theBoardofDirectors.TheNidhi monitors Assets and Liabilities periodically to mitigate the liquidity risk. Operational risks arising from inadequate or failed internal process, people and systems or from external events are adequately addressed by the internal control systems and are continuously reviewed and monitored by the Board of Directors. Process improvements and quality control are on-going activities and are built into the employee’s training modules, as well.

11. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The provisions relating to Corporate Social Responsibility are not applicable to the Company.

12. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION

186 OF THE COMPANIES ACT, 2013

There were no loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review and hence the said provision is not applicable.

13. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES

TherewasnocontractorarrangementsmadewithrelatedpartiesasdefinedunderSection188of the Companies Act, 2013 during the year under review.

14. EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE

REMARKS OR DISCLAIMERS MADE BY THE AUDITORS AND THE PRACTICING

COMPANY SECRETARY IN THEIR REPORTS

Therewerenoadverseremarks/qualifications/reservationsintheauditor’sreport.

15. COMPANY’S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF

REMUNERATION AND DISCHARGE OF THEIR DUTIES

The provisions of Section 178(1) relating to constitution of Board of Directors by Nomination and Remuneration Committee are not applicable to the Company. The Company has a time

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tested policy relating to appointment of Directors in the Board, which was in vogue for the past several years and got its approval from the Shareholders of the Nidhi. The Directors are selectedconsideringtheirqualifications,experience,positiveattributes,andtheirutilityforthedevelopment of the institution with independence of Directors and other related matters as provided under Section 178(3) of the Companies Act, 2013.

16. NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW :

TheCompanyhadconductedthefollowingSevenBoardmeetingsduringthefinancialyear

Date of Board Meetings held :- 20/04/2019, 08/062019, 25/07/2019,11/08/2019, 26/09/2019, 20/10/2019 and 25/01/2020

Name of the Director DIN No. of meetings No. of meetings held Attended

Sri.M.Bhagavantha Rao 02895468 07 07

Sri.N.Vittal 00959126 07 05

Sri.C.R.Muralidharan 02443277 07 07

Sri.S.Narayanan 02740839 07 07

Sri.D.S.Srinivasa Rao 03196295 07 07

Sri.K.S.Madhukar 05158265 07 07

Sri.B.Nagaraja Rao 02801734 07 05

Sri.C.S.Ramamurthy 03196273 07 07

Dr.R.Narasimhan 06557701 07 02

Sri.L.Madhavan 00729891 07 05

Sri.V.Muralidharan 06716317 07 04

Sri.V.S.Sridhar 02371876 07 07

Sri.C.V.Raveendran 01122048 07 04

CA.R.Ananthan 01400178 07 06

CA.Vasudeva Rao Anand 07633238 07 05

17. NUMBER OF MANAGEMENT COMMITTEE OF THE BOARD (MCB) MEETINGS

CONDUCTED DURING THE YEAR UNDER REVIEW :

TheCompanyhadconductedthefollowingSixMCBmeetingsduringthefinancialyear.

Date of MCB Meeting held : 18/05/2019, 22/06/2019, 19/09/2019, 24/11/2019, 29/12/2019 and 29/02/2020.

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Sri.M.Bhagavantha Rao 02895468 06 06

Sri.N.Vittal 00959126 06 03

Sri.C.R.Muralidharan 02443277 06 05

Sri.S.Narayanan 02740839 06 03

Sri.D.S.Srinivasa Rao 03196295 06 02

Sri.B.Nagaraja Rao 02801734 06 03

Sri.C.S.Ramamurthy 03196273 06 02



CA.R.Ananthan 01400178 06 06

CA.Vasudeva Rao Anand 07633238 06 03

18. AUDIT COMMITTEE

During the year under review, One meeting of the Audit Committee is held on 21/03/2020.


Sri.V.Muralidharan 06716317 01 01



19. DIRECTORS RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submits its responsibility Statement : -

In the preparation of the annual accounts, the applicable accounting standards had been followed with proper explanation relating to material departures.

The directors had applied the accounting policies consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state ofaffairsofthecompanyattheendofthefinancialyearandoftheprofitandlossofthecompany for that period.

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The directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

The directors had prepared the annual accounts on a going concern basis.

The dispute on the applicability and coverage of our employees under the provisions of ESI Act was challenged in Principal Labour Court, Chennai in the year 2005 and the Principal Labour court dismissed our case and passed judgment against our Nidhi’s interest. Consequent to this the ESI Authorities raised a fresh demand totaling to `.33,20,116/- on 19.07.2018. Since, few Nidhi companies are exempted under the provisions of the ESI Act, the Board took a considered view on the issue and decided to challenge the judgment of thePrincipalLabourCourtintheHighCourtofMadrastogetrelief.Anappealwasfiledtoseek relief against the order on 04.09.2018 and a stay was granted by the Madras High Court against judgement. Except this disputed liability to the extent of `.33,20,116/- no other liabilities are payable by the Nidhi to ESI.

Claim of `.30,36,015/- by the Income Tax department under section 143(3) were under dispute. The Nidhi preferred an appeal by depositing `.6,07,203/- with Appellate Tribunal against the order / demand. Except this disputed liability to the extent of `.30,36,015/- no other liabilities are payable by the Nidhi to Income Tax Department.

Except the above two disputed liabilities no other liabilities are payable by the Nidhi to any authorities.

The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

AcertificatefromtheStatutoryAuditoroftheNidhicertifyingthattheNidhihascompliedwith all the provisions contained in the Nidhi Rules 2014 were published in this Annual Report.

20. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary, Joint venture or Associate Company.

21. DEPOSITS

a) Increase in deposits during the year is `.44.61 crores and it was `. 283.17 crores as at the end of the year.

b) Amount remained unpaid or unclaimed as at the end of the year `. 4,06,62,964/-

c) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved

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at the beginning of the year } There is no default by the Nidhi in repaying

maximum during the year } the deposits or interest to the depositors at

at the end of the year } any point of time.

22. DIRECTORS

a) Re-Election :

Sri.S.Narayanan, Sri.K.S.Madhukar and Sri. L.Madhavan are the directors who retire at this

Annual General Meeting and who are being eligible to offer themselves for re election.

b) Retirement :

Sri. D.S.Srinivasa Rao, Director retired on completion of 10 years service on 31/07/2020.

Sri. C.S.Ramamurthy, Director retired on completion of 10 years service on 31/07/2020.

Sri.D.S.Srinivasa Rao while discharging his responsibilities as Director of the Nidhi had visited

various branches. Further he suggested for the business improvement on several occasion by

his suggestions which greatly helped the Nidhi in its development.

Sri.C.S.Ramamurthy being a Civil Engineer by profession had helped your Nidhi on branch

expansion activities. His knowledge had improved the interiors and ambience of several

branches.

Both Directors during their association had greatly contributed to the Nidhi’s growth by their

impeccable service.

On behalf of you and on behalf of the Management of the Nidhi, we wish them a healthy and

peaceful retired life.

c) Obituary :

We deeply mourn the sad and untimely demise of our Independent Director Sri.C.R.Muralidharan

on 08/10/2020. Sri.C.R.Muralidharan, was a banking expert and by virtue of his knowledge and

experience in Banking and Insurance industry added value to the Nidhi.

We convey our condolences on behalf of the Nidhi to the bereaved family and pray to the God

that soul rests in peace.

We place on record our appreciation and gratitude for the services rendered to the above

Director during his time on our Board.

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23. DECLARATION OF INDEPENDENT DIRECTORS

The Independent Directors have submitted their disclosures to the Board that they fulfil allthe requirements as stipulated in Section 149(6) of the Companies Act, 2013 so as to qualify themselves to be appointed as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules.

24. STATUTORY AUDITORS

M/s Raman Associate, Chartered Accountants, No.13 Luz Avenue, Mylapore, Chennai - 600004,whohaveauditedtheannualaccountsforthefinancialyearended2019-20ofyourNidhi are holding the post of Statutory Auditors for a continuous period of 5 years until the conclusion of the 140th AGM of the Nidhi.

25. “DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVETION, PROHIBITION AND REDRESSAL) ACT, 2013 :

The Company has formulated a policy for prevention of Sexual Harassment at Workplace pursuant to the requirements of the Sexual Harassment Workplace (Prevention, Prohibition and Redressal) Act, 2013 read with relevant Rules made thereunder. Accordingly, Internal Complaints committee has been constituted for redressal of any sexual harassment complaint.

The following is the summary of the complaints received and disposed off during the Financial year 2019-20 :-

No. of complaints received : NIL

No. of complaints disposed : NIL

26. EXTRACTS OF ANNUAL RETURN

The Annual Return in Form No. MGT-7 is available in the website of the Company http://www.smsonidhi.com/.

27. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE.

Duringtheyearunderreviewtherehasbeennosuchsignificantandmaterialorderspassedby the regulators or courts or tribunals impacting the going concern status and company’s operations in future except to the extent mentioned in the Director’s Responsibility statement.

28. DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SUB-SECTION(12) OF SECTION 143 OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT.

Thereisnofraudcommittedorhappenedduringtheoperationsforthefinancialyearandassuch the auditors has not reported any reference under section 143(12).

http://www.smsonidhi.com/

http://www.smsonidhi.com/

16


29. MAINTENANCE OF COST RECORDS

TheCompanyisnotrequiredtomaintaincostrecordsasspecifiedbytheCentralGovernmentunder sub-section(1) of Section 148 of the Companies Act, 2013.Hence the provisions of Section 148 is not applicable to the Company.

30. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE

FINANCIAL STATEMENTS

TheBoardaffirmsthatthereareadequateInternalFinancialControls.

31. VIGIL MECHANISM

The Nidhi, deeply conscious of the need to remain continuously watchful, maintains a strict vigil soastopreventanyuntowardincidentwithadversefinancialimplicationsfortheorganizationand its members. No compliant was received during the year from any stakeholder.

32. ACKNOWLEDGEMENTS

On behalf of the Board and on my own behalf, I place on record my sincere appreciation and gratitude to our shareholders for their patronage for all these years. Further our sincere thanks todepositorsfortheircontinuedsupportandtheconfidencetheyhavereposedinthisNidhi.Our thanks are also due to our Bankers who have all contributed immensely by their service to our depositors/ shareholders. I record my special appreciation of the efforts of the employees, a set of dedicated and loyal people who have shown their commitment to their work in these challenging times and helped the Nidhi in its growth.

Our Special thanks to our regulators for their support and guidance.

For and on behalf of the Board,

Place: Chennai M. BHAGAVANTHA RAO Date: 17.10.2020 Director / President DIN No : 02895468

17


INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF SRIMAN MADHWA SIDHANTAONNAHINI PERMANENT NIDHI LIMITED

Report on the Financial Statements

1. WehaveauditedtheaccompanyingfinancialstatementsofSRIMANMADHWASIDHANTAONNAHINI PERMANENT NIDHI LIMITED (“the Company”), which comprise the Balance Sheet as atMarch 31, 2020, the Statement of Profit and Loss, theCash FlowStatement for theyearthenendedandasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the CompaniesAct,2013(“theAct”)withrespecttothepreparationofthesefinancialstatementsthatgivea trueand fairviewof thefinancialposition,financialperformanceandcashflowsof the Company in accordance with the accounting principles generally accepted in India, includingtheAccountingStandardsspecifiedundersection133oftheAct,readwithRule7of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthat give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

3. Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

4. WeconductedourauditinaccordancewiththestandardsonauditingspecifiedunderSection143(10) of the Act. Those standards require that we comply with ethical requirements and plan andperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsare free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amounts and thedisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’s

18


judgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financialstatements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

6. Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthefinancialstatements.

Opinion

7. In our opinion and to the best of our information and according to the explanations given to us,theaforesaidfinancialstatementsgivetheinformationrequiredbytheActinthemannerso required and give a true and fair view in conformity with the accounting principles generally acceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2020anditsprofitanditscashflowsfortheyearendedonthatdate.

Report on Other Legal and Regulatory Requirements

8. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the“Annexure–A”astatementonthemattersspecifiedinparagraph3oftheOrder.

9. As required by Section 143(3) of the Act, we report that:

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

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

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c) TheBalanceSheet,theStatementofProfitandLossandtheCashFlowStatementdealtwithby this Report are in agreement with the books of account;

d) The aforesaid financial statements comply with the Accounting Standards specified underSection 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) On the basis of the written representations received from the directors as on March 31, 2020 takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2020 from being appointed as a director in terms of Section 164(2) of the Act;

19


f) With respect to theadequacyof the internalfinancialcontrolsoverfinancial reportingof theCompany and the operating effectiveness of such controls, refer to our separate Report in “Annexure-B”.Our report expresses an unmodified opinion on the adequacy and operatingeffectivenessoftheCompany’sinternalfinancialcontrolsoverfinancialreporting.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has, in accordance with the generally accepted accounting practice has disclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsfinancialstatements.(ReferNote22.2tothefinancialstatements).

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses under the applicable law or accounting standards.

For Raman Associate Chartered Accountants

Firm No.02910S

Place: Chennai DR A P VIJAYENDRAN Date : 09/10/2020 Partner

Membership No : 215166 UDIN: 20215166AAAAAJ8193

20


Annexure A to the Independent Auditors’ Report

(Referred to in paragraph 8 under ‘Report on Other Legal and Regulatory Requirements’ section of our Report of even date on the accounts of SRIMAN MADHWA SIDHANTAONNAHINI PERMANENT NIDHI LIMITED (“the company”) for the year ended March 31, 2020)

1. Inrespectofitsfixedassets:

a) The Company has maintained proper records showing full particulars including the quantitative detailsandsituationoffixedassets.

b) ThefixedassetswerephysicallyverifiedduringtheyearbytheManagement inaccordancewithaphasedprogrammeofverification,which,inouropinion,providesforphysicalverificationofallthefixedassetsatreasonableintervalshavingregardtothesizeoftheCompany,natureand value of its assets. According to the information and explanation given to us, no material discrepancieswerenoticedonsuchverification.

c) According to the information and explanations given to us and records submitted to us, such records comprising the registered sale deed/transfer deeds/conveyance deeds/ evidencing title provided to us, we report that, the title deeds comprising all the immovable properties of land and buildings which are freehold, are held in the name of the company as at the balance sheet date.

2. In our opinion and according to the information and explanations given to us the nature of the company’s business/ activities during the year has been such that clause (ii) of paragraph 3 of the Order in respect of inventory, is not applicable to the Company.

3. TheCompanyhasnotgrantedanyloans,securedorunsecured,toCompanies,firms,limitedliability partnerships or other parties covered in the Register maintained under Section 189 of the Act.

4. The provisions of Section 185 of the Act are not applicable to the company. According to information and explanations given to us, the company has not given any loan or guarantee or made any investments or provided any security covered under Section 186 of the Act.

5. According to information and explanations given to us, the Company has not accepted any deposits from public and hence clause (v) of paragraph 3 of the Order is not applicable to the Company.

6. The Government has not prescribed the maintenance of cost records under Section 148(1) of the Act.

7. According to the information and explanations given to us and the books of account examined by us, in respect of statutory dues:

a) The Company has been generally regular in depositing undisputed statutory dues, including Provident Fund, service tax and other statutory dues applicable.

b) There are no dues of Income Tax, Service Tax or Cess which have not been deposited on account of any dispute with the relevant authorities. Details of dues towards contribution to Employees State Insurance that have not been deposited as at March 31, 2018 on account of disputes are as stated below:

21


8. In our opinion and according to the information and explanations given to us, the Company has notdefaultedintherepaymentofloansorborrowingtofinancialinstitutions,banks,governmentor dues to debenture holders.

9. In our opinion and according to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and has not taken any term loan during the year.

10. To the best of our knowledge and belief, and according to the information and explanations given to us, and considering the size and nature of the Company’s operations, no fraud by the CompanyorontheCompanybyitsofficersoremployeeshasbeennoticedorreportedduringthe year.

11. In our opinion and according to the information and explanations given to us, the Company has paid/ provided managerial remuneration in accordance with the requisite approvals mandated bytheprovisionsofSection197asmodifiedandapplicabletoNidhi.

12. The Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and the Company is maintaining ten per cent unencumbered term deposits as specifiedintheNidhiRules,2014tomeetouttheliability.

13. In our opinion and according to the information and explanations given to us the company has not entered into transactions with related parties covered under Sections 177 and 188 of the Act.

14. According to the information and explanations provided to us and records examined by us, the company has made private placement of shares during the year under review by complying theprovisionsofsection42oftheAct,asmodifiedandapplicabletoaNidhicompanyandtheamount so raised have been used for the purpose for which funds were raised.

15. In our opinion and according to the information and explanations given to us and based on our examination of the records of the Company, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence compliance of provisions of section 192 of the Act is not applicable.

16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.


Firm No.002910S


Membership No:215166 UDIN: 20215166AAAAAJ8193

Nature of dues

Nature of dues

Amount

Amount

Period to which the amount relates

Period to which the amount relates

Forum where the dispute is pending

Forum where the dispute is pending

`.7,28,000 has been deposited under dispute in respect of above.

`.6,07,203 has been deposited under dispute in respect of above.

ESI

Income Tax

`.33,20,116/=

`.30,36,015/=

01/04/1999 to 19/07/2018

Fy. 16-17; Ay. 17-18

*Madras High Court

Appellate Tribunal

22


Annexure - B to the Independent Auditors’ Report - 31st March 2020

(Referred to in paragraph 9(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date) Report on the Internal Financial Controls Over Financial Reporting of SRIMAN MADHWA SIDHANTAONNAHINI PERMANENT NIDHI LIMITED under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

1. WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofSRIMANMADHWASIDHANTAONNAHINI PERMANENT NIDHI LIMITED (“the company”) as of March 31, 2020 in conjunctionwithourauditofthefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management Responsibility for Internal Financial Controls

2. TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrols based on the internal control over financial reporting criteria established by theCompany considering the essential components on internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include design, implementation and maintenance of adequate internal financial controls that were operating effectively forensuringtheorderlyandefficientconductofitsbusiness,includingadherencetoCompany’spolicies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of accounting records, and the timely preparation of reliable financialinformation,asrequiredbytheAct.

Auditors Responsibility

3. Ourresponsibility is toexpressanopinionontheCompany’s internalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNote on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) oftheAct,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoan audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinall material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterialmisstatement of the financial statements,whether due to fraud or error.

23


5. WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

6. Acompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonable assurance regarding the reliability of financial reporting and the preparation offinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesand procedures that (1) pertain to the maintenance of records that, in reasonable detail, accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheCompany;(2)provide reasonable assurance that transactions are recorded as necessary to permit preparation offinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceipts and expenditure of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthe possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesin conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolsystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2020,basedontheinternalcontroloverfinancialreportingcriteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.


Firm No.002910S


Membership No.215166 UDIN: 20215166AAAAAJ8193

24


AUDITOR’S CERTIFICATE

TO THE MEMBERS OF SRIMAN MADHWA SIDHANTAONNAHINI PERMANENT NIDHI LIMITED

According to the information and explanations given to us and the books of accounts examined

by us, pursuant to the requirement under Nidhi Rules 2014 (“the Rules”) prescribed under the

CompaniesAct2013,weherebycertifythat,forthefinancialyearended31stMarch2020,SRIMAN

MADHWA SIDHANTAONNAHINI PERMANENT NIDHI LIMITED (“the Nidhi”) has complied with all

the provisions contained in the rules.

For Raman Associate

Chartered Accountants

Firm No.002910S

Place: Chennai DR A P VIJAYENDRAN

Date : 09/10/2020 Partner

Membership No.215166

UDIN: 20215166AAAAAJ8193

25


BALANCE SHEET AS AT 31st MARCH 2020

Particulars Note 31st March 2020 31st March 2019 No. ` `I EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share Capital 1 6,48,61,590 6,43,52,290 (b) Reserves and Surplus 2 8,00,44,647 7,64,68,761 2 Share Application money pending allotment 3 - 37,300 3 Non-Current Liabilities (a) Long Term Borrowings 4 125,74,04,264 80,90,61,097 (b) Other Long term liabilities 5 16,42,106 15,28,259 (c) Long Term Provisions 6 32,30,758 23,89,910 4 Current Liabilities (a) Short term borrowings 7 78,09,42,630 73,98,63,158 (b) Other Current Liabilities 8 91,34,09,965 94,03,34,285 (c) Short term provisions 9 79,61,868 72,66,511 TOTAL 310,94,97,828 264,13,01,571II ASSETS 1 Non-Current Assets (a) Fixed Assets 10 (i) Tangible Assets 7,74,89,020 5,77,32,356 (ii) Intangible Assets 18,96,073 18,94,352 (b) Long Term Loans and Advances 11 35,02,37,031 35,88,67,378 (c) Other Non Current Assets 12 13,35,203 7,28,000 (d) Deferred Tax Asset (Net) 13 12,72,869 11,97,158 2 Current Assets (a) Cash and Bank Balances 14 31,63,72,489 32,62,60,430 (b) Short Term Loans and Advances 15 235,29,49,391 188,74,32,986 (c) Other Current Assets 16 79,45,752 71,88,911 TOTAL 310,94,97,828 264,13,01,571 The notes form an integral part of the financialstatements 22

M. Bhagavantha Rao S. Narayanan Vasudevarao Anand President Vice-President Independent Director K.S. Madhukar Dr. R. Narasimhan V. Muralidharan L. Madhavan V.S. Sridhar C.V. Raveendran Directors Directors Directors R. Srinivasan K. Gopal CA. R. Ananthan ChiefExecutiveOfficer ChiefAccountant Ex-OfficioDirector For Raman Associate Chartered Accountants Firm Registration No. 02910SPartner : DR . A.P.Vijayendran Membership No : 215166 UDIN : 20215166AAAAAJ8193 Date : 17/Oct/2020

Vidhya Arora Company Secretary

ACS Number : A12046

26


STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2020

Particulars Note 31st March 2020 31st March 2019 `. `.

Revenue from operations 17 32,63,89,674 31,31,24,838

Other income 18 31,29,519 49,35,288

Total Revenue 32,95,19,193 31,80,60,126

Expenses

Employeebenefitsexpense 19 6,59,81,742 6,46,89,811

Finance costs 20 19,50,03,980 17,35,15,136

Depreciation and amortisation expense 10 81,88,011 82,98,906

Other Expenses 21 3,74,21,346 3,66,26,683

Total Expenses 30,65,95,079 28,31,30,536

ProfitbeforeTax 2,29,24,114 3,49,29,590

Tax expenses

(1) Current tax (74,60,000) (1,03,70,000)

(2) Deferred tax 75,711 3,10,978

(3) Previous year Income Tax (2,78,133) 30,750

Profitfortheyear 1,52,61,692 2,49,01,318

Earnings per Equity share

Basic 2.36 3.88

The notes form an integral part of the financialstatements 22


ACS Number : A12046


27


CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2020 Particulars For the year ended For the year ended 31st March 2020 31st March 2019 ` ` ` `

A.Cashflowfromoperatingactivities Netprofit/[loss]beforeextra-ordinary items and tax 2,29,24,114 3,49,29,590 Adjustments for: Depreciation and amortisation 81,88,011 82,98,906 Provision for NPA made / (written back) 8,40,848 (19,44,045) [Profit]/Lossonsale/writeoffofassets - -Finance Costs 3,60,670 6,38,426 Rental Income from operating leases (29,62,000) (29,26,209) 64,27,529 40,67,078 Operatingprofit/[loss]before working capital changes 2,93,51,643 3,89,96,668 Changes in working capital: Adjustmentfor[increase]/decrease in operating assets: Short term loans and advances (46,55,16,404) (38,68,85,464) Long term loans and advances 60,62,444 3,88,19,429 Other Non current assets (6,07,203) (3,50,000) Bank deposits not considered as cash equivalents (3,08,27,238) 18,25,00,000 Bank accounts not considered as cash equivalents 1,13,342 3,65,736 Other current assets (7,56,841) (2,85,594) (49,15,31,901) (16,58,35,893)Adjustmentforincrease/[decrease] in operating liabilities: Other current liabilities (2,69,24,320) 27,33,82,460 Other long term liabilities 1,13,847 (71,809) Short term provisions 10,95,357 (36,19,500) (2,57,15,116) 26,96,91,151 (48,78,95,374) 14,28,51,926 Cash generated from operations (48,78,95,374) 14,28,51,926 Netincometax[paid]/refunds (51,70,230) (76,00,000)Netcashflowfrom/[usedin] operatingactivities[A] (49,30,65,604) 13,52,51,926

28


B. Cash flow from investing activitiesCapitalexpenditureonfixedassets including capital advances (2,81,63,555) (22,84,661) Proceedsfromsaleoffixedassets 2,17,158 3,41,543Rental income from operating leases 29,62,000 29,26,209 (2,49,84,397) 9,83,091 Net cash flow from / [used in] investment activities [B] (2,49,84,397) 9,83,091 C. Cash flow financing activities [C] Proceeds from issue of equity shares 4,72,000 3,72,200 Netincrease/[decrease]inlong term borrowings 44,83,43,167 (2,51,67,846) Netincrease/[decrease]inshort term borrowings 4,10,79,472 (9,36,19,349) Finance Cost (3,60,670) (6,38,426) Grant-in-aid paid (20,00,000) (20,00,000) Dividendpaid[includingdividendtax] (1,00,85,806) (1,00,16,673) 47,74,48,163 (13,10,70,093)Cashflowfromextraordinaryitems - -Netcashflowfrom/[usedin] financingactivities[C] 47,74,48,163 (13,10,70,093)Netincrease/[decrease]incash &cashequivalents[A+B+C] (4,06,01,838) 51,64,924Cash and cash equivalents at the beginning of the year 9,02,49,045 8,50,84,120 Cash and cash equivalents at the end of the year 4,96,47,208 9,02,49,044 Reconciliation of cash & cash equivalents with the Balance Sheet: Cash & Bank balances as per BalanceSheet[Aspernote14] 31,63,72,489 32,62,60,430Less: Bank deposits not considered as cash & cash equivalents (25,48,27,238) (23,40,00,000)Less: Bank account not considered as cash & cash equivalents (18,98,043) (20,11,385)Less: Bank account not considered as cash & cash equivalents (1,00,00,000) - Net cash & cash equivalents 4,96,47,208 9,02,49,044

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2020Particulars For the year ended For the year ended 31st March 2020 31st March 2019 ` ` ` `

29


Add: Current investments considered as part of cash & cash equivalents - - Cash and cash equivalents at the end of the year ** 4,96,47,208 9,02,49,044 **Comprises: [a]Cashonhand 1,98,72,459 2,63,46,732[b]Cheques,draftsonhand - -[c]Balanceswithbanks [i]incurrentaccounts 1,47,74,749 1,64,02,313[ii]debitbalanceinoverdraftaccounts - -[iii]indepositaccountswithoriginal maturity less than 3 months 1,50,00,000 4,75,00,000 [iii]inearmarkedaccounts-givedetails 2,97,74,749 6,39,02,313 [d]Stampsonhand - -Total 4,96,47,208 9,02,49,045

Notes:

1. TheCashFlowStatementreflectscombinedcashflowspertainingtocontinuinganddiscontinuingoperations.

2. Theearmarkedaccountbalanceswithbanksonlyforthespecificidentifiedpurposes.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2020 Particulars For the year ended For the year ended 31st March 2020 31st March 2019 ` ` ` `



ACS Number : A12046

30


Notestothefinancialstatementsfortheyearended31stMarch2020

Note Particulars 31st March 2020 31st March 2019

`. `.

1 SHARE CAPITAL AUTHORISED SHARE CAPITAL

1,00,00,000 Equity shares of `.10/- each 10,00,00,000 10,00,00,000 (Previous year 1,00,00,000 Equity shares of `.10/- each)

10,00,00,000 10,00,00,000

ISSUED, SUBSCRIBED & PAID-UP :

64,86,159 Equity Shares of `.10/- each 6,48,61,590 6,43,52,290 (Previous year 64,35,229 Equity shares of `. 10/- each) 6,48,61,590 6,43,52,290

a) Equity shares No of shares No of shares

Opening Balance 64,35,229 64,01,739

Fresh issue 50,930 33,490

Private Placement - -

Closing Balance 64,86,159 64,35,229

b) The equity shareholders are entitled to receive dividends as and when declared; a right to vote in proportion to holding etc. and their rights, preferences and restrictions are governed under the provisions of the Companies Act, 2013.

c) Shareholders holding more than 5% of the total share capital

Equity Shares of `.10/- each fully paid up 31st March 2020 31st March 2019

Name No of shares % of Holding No of shares % of Holding

Sriman Madhwa Sidhanta Onnahini Sabha 10,62,800 16.39% 10,62,800 16.52%

Srinivasa Murthy Banaji 3,55,000 5.47% 3,55,000 5.52%

However,righttovoteisrestrictedto5%videGovt.notificationNo.GSR465(E)dated5thJune2015.

31



Note Particulars 31st March 2020 31st March 2019 `. `.

2 RESERVES AND SURPLUS

Capital Redemption Reserve:

Opening balance 80,996 80996

Less: Transfer to General Reserve 80,996 -

TOTAL (A) 0 80,996

General Reserve:

Opening balance 5,79,36,161 4,51,64,186

Add: Transfer from Statement of ProfitandLoss-GeneralReserve 83,65,798 83,22,261

Add: Transfer from Statement of ProfitandLossSurplus 6,89,374 44,49,714

Add: Transfer from Capital Redemption Reserve 80,996 -

TOTAL (B) 6,70,72,329 5,79,36,161

Surplus in Statement of Profit and Loss

Opening balance 1,84,51,604 1,83,38,934

Less: Transfer to General Reserve (83,65,798) (83,22,261)

Less : Dividend on Equity Shares & Dividend Tax (1,00,85,806) (1,00,16,673)

ProfitfortheyearfromStatement ofProfitandLoss 1,52,61,692 2,49,01,318

Proposed Dividend on Equity Shares (Refer Note 22.10) - -

Proposed Grant-in-aid to S M S O Sabha (16,00,000) (20,00,000)

Transfer to General Reserve (6,89,374) (44,49,714)

TOTAL (C) 1,29,72,318 1,84,51,604

(A) +(B) + (C) 8,00,44,647 7,64,68,761

3 SHARE APPLICATION MONEY PENDING ALLOTMENT - 37,300

4 LONG TERM BORROWINGS UNSECURED

Fixed deposits 122,93,55,664 78,65,93,222

Recurring deposits 2,80,48,600 2,24,67,875

125,74,04,264 80,90,61,097

32


Notestothefinancialstatementsfortheyearended31stMarch2020Note Particulars 31st March 2020 31st March 2019 `. `.

5 OTHER LONG TERM LIABILITIES

Interest accrued but not due on deposits 7,92,106 6,78,259

(Net of tax deducted at source as applicable)

Rent Advance 8,50,000 8,50,000

16,42,106 15,28,259

6 LONG TERM PROVISIONS

For Non performing assets 32,30,758 23,89,910

32,30,758 23,89,910

7 SHORT TERM BORROWINGS

UNSECURED :-

Fixed deposits 45,80,46,583 41,61,38,827

Recurring deposits 5,51,38,275 5,65,80,780

Savings deposits 26,77,57,772 26,71,43,551

78,09,42,630 73,98,63,158

8 OTHER CURRENT LIABILITIES

Unpaid matured deposits and interest accrued thereon 4,06,62,964 2,85,06,478

Other Security Deposits 6,56,95,500 6,12,73,000

Cheques Pending Realisation 5,35,555 94,000

Unpaid dividends 35,23,390 33,67,323

Other liabilities 46,64,646 43,42,813

Interestaccruedanddueonfixeddeposits 10,479 2,451

Interest accrued but not due on Other Deposits 49,21,942 60,70,141

(Net of tax deducted at source as applicable)

Deposits maturing within next 12 months 79,33,95,489 83,66,78,079

91,34,09,965 94,03,34,285

9 SHORT TERM PROVISIONS

For Proposed Grant-in aid 16,00,000 20,00,000

Provision for Employee

In respect of Ex- gratia 38,96,300 45,89,000

Others 24,65,568 6,77,511

79,61,868 72,66,511

33


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34




11 LONG TERM LOANS AND ADVANCES FULLY SECURED (CONSIDERED GOOD)

Registered Mortgage Loan 29,78,87,107 31,64,33,446

Loan on deposits 1,55,74,302 1,12,43,507

UNSECURED (CONSIDERED GOOD)

Loan to Directors 15,12,773 13,61,659

Housing Loan to Staff 1,34,29,320 1,54,43,694

Other Deposits 2,09,800 2,06,900

# Taxesrecoverable[Netofprovision] 83,48,369 24,35,922

Rent Advances 1,31,75,000 1,15,90,000

Other Advances 1,00,360 1,52,250

35,02,37,031 35,88,67,378

# Taxes recoverable is net of provisions for taxation as stated below:

Taxes recoverable 5,26,82,369 5,17,63,922

Less: Provision for income tax 4,43,34,000 4,93,28,000

Taxes recoverable (Net of provision) 83,48,369 24,35,922

12 OTHER NON CURRENT ASSETS

Advance recoverable 13,35,203 7,28,000

13,35,203 7,28,000

13 DEFERRED TAX ASSET (NET)

Deferred Tax Asset on account of Depreciation 12,72,869 11,97,158

12,72,869 11,97,158

35



14 CASH AND BANK BALANCES

Cash and cash equivalents

Cash on hand 1,98,72,459 2,63,46,732

Balance with Banks in current accounts 1,47,74,749 1,64,02,313

# Bank deposit (upto 3 months maturity) 1,50,00,000 4,75,00,000

Other Bank balances

# Bank deposits (More than 3 months and upto 12 months maturity) 25,48,27,238 23,40,00,000

Mutual Funds 1,00,00,000 -

Balance with Banks in unpaid dividend account 18,98,043 20,11,385

31,63,72,489 32,62,60,430

# Represents deposit made to comply with requirement of maintenance of Statutory Liquid Ratio of 10% of deposits outstanding

15 SHORT TERM LOANS AND ADVANCES FULLY SECURED (CONSIDERED GOOD)

Jewel Loan 223,50,33,859 178,24,63,606

Loan on Deposits 2,71,99,527 2,04,72,631

Interest Accrued on Loans 9,06,96,256 8,43,39,967

UNSECURED (CONSIDERED GOOD)

Education Advance 19,749 96,782

Other Advances - 60,000

235,29,49,391 188,74,32,986

16 OTHER CURRENT ASSETS

Interest Accrued on Bank Deposits 22,21,467 31,68,571

Rent receivable 2,44,970 65,610

Prepaid Expenses 26,63,469 23,16,625

Stationery at cost 11,89,345 7,97,061

Input Tax Receivables 16,26,501 8,41,044

79,45,752 71,88,911


36


Note Particulars 31st March 2020 31st March 2019 ` `

17 REVENUE FROM OPERATIONS

Interest on Jewel Loans 24,76,23,468 21,98,75,032

Interest on Mortgage Loans 5,41,35,660 6,20,39,043

Interest on Loans on deposits 30,30,066 26,84,816

Interest on Loan to Employees 10,24,847 11,47,185

Interest on Deposit With Scheduled Banks 1,86,90,914 2,52,95,608

Interest on Deposit With Mutual fund 21,643 -

Processing and penal charges 18,63,076 20,83,154

32,63,89,674 31,31,24,838

18 OTHER INCOME

Rent Received 29,62,000 29,26,209

Miscellaneous income 1,67,519 65,034

Provision for NPA written back - 19,44,045

31,29,519 49,35,288

19 EMPLOYEE BENEFITS EXPENSES

Salaries and Allowances 5,27,41,149 5,17,25,734

Contribution to EPF & Deposit linked Insurance 52,82,666 51,82,892

Medical Reimbursement 12,97,400 12,70,250

Contribution to Gratuity Fund 11,47,882 23,28,175

National Pension Scheme (NPS) 26,98,617 -

Group Mediclaim Policy 5,01,375 5,15,085

Group Leave encashment Policy 9,76,640 25,41,199

Staff Welfare Expenses 13,36,014 11,26,476

6,59,81,743 6,46,89,811

20 FINANCE COSTS INTEREST EXPENSES

On Fixed Deposits 17,34,77,277 15,18,00,805

On Cumulative Deposits - 10,682

On Recurring Deposits 1,01,58,917 97,54,545

On Savings Deposits 1,10,07,116 1,13,10,678

On Bank Borrowings 3,60,670 6,38,426

19,50,03,980 17,35,15,136


37


21 OTHER EXPENSES

Electricity Charges 16,62,417 17,29,409

Insurance 8,29,703 6,31,580

Rent 1,42,83,255 1,24,41,138

Payment to Auditors

- Audit Fees 1,09,000 1,09,000

- Taxation Matters 54,500 53,175

Repairs to

- Building - 71,629

- Others 23,06,990 15,30,302

Rates & Taxes 4,05,129 11,90,758

Bad Debts 16,15,304 49,88,616

Provision for NPA 8,40,848 -

Payment to Directors

- Remuneration 45,000 45,000

- Sitting Fees 13,73,500 14,39,500

Miscellaneous expenses 1,38,95,700 1,23,96,576

3,74,21,346 3,66,26,683


Note Particulars 31st March 2020 31st March 2019 ` `

38


NOTE 22

1 SIGNIFICANT ACCOUNTING POLICIES A Revenue and expenses are generally accounted for on accrual basis, subject to policy in

item (B) and (C) below. B The company complies with the Nidhi Rules 2014 including compliance with Prudential

Norms for Income Recognition issued by Ministry of Corporate Affairs vide G.S.R No.258(E) dated 31/03/2014 w.e.f 01/04/2014.

C Interest on loans and advances is net of interest waived as per one time settlement with borrowers, if any. Penal charges for Non payment of advances and non payment of recurring deposit installments are recognised only at the time of ultimate realisation.

D Fixed assets are stated at cost less depreciation. E “In respect of Tangible assets (other than leasehold improvements), Depreciation on assets

is provided on the written down value method. The Company has adopted depreciation ratesaspertheusefullifespecifiedintheScheduleIIoftheCompaniesAct,2013excepton certain category of assets for which the Company has re-assessed the useful life of the assetsbasedoninternalassessmentandtechnicaladvice,asspecifiedbelow:

Asset Nature Estimated Useful Life

Lockers&StrongRoomDoorsclassifiedunderFurniture&Fixtures 50years

Computers 6 years

Residual value has been considered @5% of the cost. Leasehold improvements are amortized over the period of lease. Intangible assets represent Computer software whose cost is amortised fully over their

expected useful life of 10 years, on a straight-line basis. Residual value is taken to be NIL.

Based on the concept of materiality, assets costing ̀ .5,000 or less acquired during the year are written down @ 100% based on the number of days of usage.

F EmployeeRetirementBenefits: (i) During the year the company has adopted Accounting Standards 15 (Revised 2005)

Employee Benefits. Accordingly the company has calculated the various benefitsprovided to employees as under:

a) Provident Fund: The company’s contribution to Provident Fund is vested with the Employees Provident Fund Scheme of the Government of India.

b) Postemploymentbenefits-DefinedBenefitPlans: Company’s contribution to provident fund is determined under the relevant schemes

and / or statute and charged to revenue. The Gratuity and Leave Encashment liability are funded through the scheme administered by the Life Insurance Corporation of Indiaandtheamountspaid/providedundertheschemearechargedtoProfitandLoss account.

c) Superannuation benefits are now routed through National Pension Fund bycontributing to the individual accounts of the employees.


39


d) In respect of Gratuity

Reconcilation of liablity recognised in the Balance Sheet

Present value of commitments 2,38,69,680 2,20,82,896

Fair value of Plan Assets 2,60,36,248 2,37,11,290

Funded Stated assets 21,66,568 16,28,394

Movement in the assets recognised in the Balance Sheet

Net Asset as at beginning of the year 16,28,394 (21,10,697)

Contribution during the year 13,35,842 46,26,214

Net expenses recognised/(written back) intheProfitandLossAccount 7,97,668 8,87,123

Net Assets as at the end of the year 21,66,568 16,28,394 (Included in Prepaid expenses in Note 16)

Expenses recognised in the Profit and Loss Account

Current Service Cost 13,45,956 9,87,011

Interest cost 16,56,217 17,37,692

Expected return on plan assets (17,58,115) (16,06,131)

Net Actuarial (Gain)/Loss recognised in the year (4,46,390) (4,45,417)

Expenses recognised/(written back) intheProfitandLossAccount 7,97,668 6,73,155

Return on Plan Assets

Expected return on plan assets 17,58,115 16,06,131

Net Actuarial Loss/(Gain) recognised in the year - -

Actual Return on Plan Assets 17,58,115 16,06,131

Changes in present value of obligations

Present value of obligations as at beginning of the year 2,20,82,896 2,34,06,295

Interest cost 16,56,217 17,37,692


Paidbenefits (7,68,999) (36,02,685)

Actuarial (gains)/Losses (4,46,390) (4,45,417)

Present Value/Commitment as at end of the year 2,38,69,680 2,20,82,896

As at As at 31.03.2020 31.03.2019 `. `.

40


Changes in fair value of plan assets

Fair value of plan assets as at beginning of the year 2,37,11,290 2,10,81,630


Contributions 13,35,842 46,26,214

Benefitspaid (7,68,999) (36,02,685)

Acturial Loss/(Gain) on plan Assets - -

Fair value of plan assets as at end of the year 2,60,36,248 2,37,11,290

Principle Assumption

Discount Rate 7.25% 7.5%

Expected return on plan assets

Expected rate of Salary increase 5% 5%

Attrition Rate

e) In respect of Leave Encashment

Reconcilation of liablity recognised in the Balance Sheet

Present value of commitments 1,01,39,817 88,18,042

Fair value of Plan Assets 1,06,90,245 91,57,716

Funded Stated assets 5,50,428 3,39,674

Movement in the assets recognised in the Balance Sheet

Net Asset as at beginning of the year 3,39,674 (9,37,727)

Contribution during the year 10,13,697 20,48,404

Net expenses recognised/(written back) intheProfitandLossAccount 8,02,943 7,71,004

Net Assets/(Liability) as at the end of the year 5,50,428 3,39,674 (Included in Prepaid expenses in Note 16)

Expenses recognised in the Profit and Loss Account


Interest cost 6,61,353 5,39,232

Expected return on plan assets (7,18,651) (5,23,959)

Net Actuarial (Gain)/Loss recognised in the year 46,922 (18,809)

Expenses recognised/(written back) intheProfitandLossAccount 8,02,943 6,21,356

As at As at 31.03.2020 31.03.2019 `. `.

41


Return on Plan Assets


Net Actuarial Loss/(Gain) recognised in the year - -

Actual Return on Plan Assets 7,18,651 5,23,959

Changes in present value of obligations

Present value of obligations as at beginning of the year 88,18,042 86,11,689

Interest cost 6,61,353 5,39,232


Paidbenefits (1,99,819) (9,38,962)

Actuarial (gains)/Losses 46,922 (18,809)

Present Value/Commitment as at end of the year 1,01,39,817 88,18,042

Changes in fair value of plan assets

Fair value of plan assets as at beginning of the year 91,57,716 75,24,314


Contributions 10,13,697 20,48,404

Benefitspaid (1,99,819) (9,38,962)

Acturial Loss/(Gain) on plan Assets - -

Fair value of plan assets as at end of the year 1,06,90,245 91,57,716

Principle Assumption

Discount Rate 7.25% 7.50%

Expected return on plan assets

Expected rate of Salary increase 5% 5%

Attrition Rate

G Payments made for assets taken on operating lease are recognised as expenses over the lease period.

H Deffered Tax Asset is recognised, subject to consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and or capable of reversal in one or more subsequent periods. Deffered Tax Assets are recognised on unabsorbed depreciation and/or on carry forward lossesonlytotheextentthatthereisvirtualcertainityofsufficientfuturetaxableincomethat may be available against which such Deffered Tax Assets can be realised.

As at As at 31.03.2020 31.03.2019 `. `.

42


2 Claim of ̀ . 33,20,116/- along with interest for the period upto 19/07/2018 from ESI Corporation is under dispute and not recognized as debt. Advances recoverable in cash or in kind includes `. 7,28,000 the disputed liability deposited with The Principal Labour Court, Chennai.

Claim of `. 30,36,015 under section 143(3) by Income Tax authorities are under dispute, and not recognized as debt. the Nidhi preferred an appeal by depositing `. 6,07,203/- against the demand with the Appellate Tribunal. Advances recoverable in cash or in kind includes `. 6,07,203 the disputed liability deposited with Income Tax Dept.

3 TheCompanyisinthepracticeoftakingofficebuildingsonoperatinglease.

As at As at 31.03.2020 31.03.2019

4 A Deferred Tax Details:- `. `.

Deferred Tax Liablity on account of Depreciation - -

Deferred Tax Assets on account of expenses allowable in income tax under payment basis - -

Deferred Tax Asset on account of Depreciation 12,72,869 11,97,158

B Profitfortheyearaftertaxation 1,52,61,692 2,49,01,318

Weighted Average number of equity shares of `.10 each 64,56,766 64,22,552

Earnings Per Share of `.10 each (Basic & Diluted) 2.36 3.88

5 Particulars

(i) Total Amount of provision to be made on account of Non-performing assets other than those stated above, remaining unrealised 32,30,758 23,89,910

Amount of provision in respect of above till the previous year 23,89,910 43,33,955

Amount provided / (Excess provision reversed) in the current year 8,40,848 (19,44,045)

Balance to be provided - -

“The Company generally follows the prudential norms of provisioning for non-performing assets as per the notifications referred inNote 1 above.Provision forNon performingassets have been made taking into consideration the events occurred after the Balance sheetdatebutbeforethedateofapprovaloffinancialstatementsbyBoardofDirectors.”

The company has waived off interest of `.16,15,304/- (included in “Bad Debts”under Note 21 to financial statements) during the year underone timesettlement. [Previous year `.49,88,616]

43


6 Disclosure as per Accounting Standard 18 - Related Party Disclosure Related parties disclosure A. Relationships Key-Management Personnel (KMP) As at 31.03.2020 As at 31.03.2019

President Sri M.Bhaghavantha Rao Sri M.Bhaghavantha Rao

ChiefExecutiveOfficer Sri.R.Srinivasan Sri.R.Srinivasan

B. Nature and volume of Transactions Particulars for the year for the

ended year ended 31.03.2020 31.03.2019 ` `

Income (i) Interest income from KMP 1,172 70,159 Expenditure (i) Remuneration of KMP 7,66,340 7,69,880 (ii) Interest paid to KMP 77,841 68,808 Dividend Paid 23,309 23,309 Assets (i) Loans and Advances Paid to KMP - - (ii) Loans and Advances repaid by KMP 1,00,047 9,40,145 Liabilities *(i) Deposits received from KMP - - *(ii) Deposits repaid to KMP - -

* Does not include transactions in the Savings Deposit account entered during the normal course of business.

C. Balances outstanding As at 31.03.2020 As at 31.03.2019

Loans and Advances outstanding from KMP - 1,00,047

Interest Accrued on Loans outstanding from KMP - 24,580

Deposits outstanding to KMP 8,52,202 13,42,617

D TheRelated party relationship is as identified by the company and relied upon by theauditor

7 ThepresentationintheBalanceSheet,ProfitandLossStatementandNotestotheAccountsisin terms of Schedule III to the Companies Act, 2013 which has become mandatory with effect from1stApril2014.Theassetsandliabilitieshavebeenclassifiedascurrentandnon-currentbased on twelve month operating cycle.

44


8 Dividend For the year ended For the year ended 31st March 2020 31st March 2019 `. `.

Amount of Proposed Dividend 64,86,159 83,65,798

Proposed dividend per share of `.10 each 1.00 1.30

9 There arenoamountsduetoSmallScaleIndustriesasdefinedin“TheMicro,SmallandMediumEnterprises Development Act, 2006”

10 Dividend at the rate of 10% amounting to `.64,86,159 (`.1.00 per share on fully paidup equity share of `.10/- each) has been recommended by the Board for the year ended 31st March 2020.TheCentralGovernmentvidenotificationdated30.03.2016hasamendedtheCompanies(Accounting Standards) Rules, 2006. According to the amended Rule, the dividend declared after the Balance Sheet date shall not be recorded as a liability in the previous year. Therefore, the Company has not recorded `.64,86,159/- as liability for proposed dividend - as at 31st March 2020. However, the same will be recognised as liability on approval of the shareholders intheAnnualGeneralMeeting.Thecompanyhassufficientprofitstotransfertogeneralreserveequivalent to proposed dividend, as required by Nidhi Rules 2014, computation of which is furnished below:

Particulars For the year ended For the year ended 31st March 2020 31st March 2019

SurplusinStatementofProfitandLoss 1,29,72,318 1,84,51,604 Less: Appropriations Proposed Dividend on Equity Shares (64,86,159) (83,65,798) Dividend Tax on above - (17,20,008) Transfer to General Reserve (64,86,159) (83,65,798)

11 Previousyear’sfigureshavebeenregroupedwherevernecessaryinconfirmitywiththecurrent



ACS Number : A12046

45


S.No Resolution

ORDINARY BUSINESS

1. Toreceive,considerandadopttheauditedfinancialstatementforthefinancialyearended 31.03.2020

2. To declare dividend.

3. To re- appoint Sri. S.Narayanan (DIN: 02740839), director eligible for re-appointment.

4. To re-appoint Sri. K.S.Madhukar (DIN: 05158265), director eligible for re-appointment.

5. To re- appoint Sri. L.Madhavan (DIN: 00729891), director eligible for re-appointment.

SPECIAL BUSINESS

6. To Increase the Authorised Share capital.

7. To appoint Independent Director.

8. To make donation to Sri Madhwa Sidhanta Charitable Trust, Chennai

9. To make grants to Sriman Madhwa Sidhantaonnahini Sabha.

46


STATUTORY AUDITOR

M/s Raman Associate, Chartered Accountants, New No. 13, Luz Avenue, Mylapore, Chennai - 600 004.

INTERNAL AUDITORS

M/sMindscapeSolutionsPvt Ltd,Newno: 397OldNo:280,SRMTowers, First floor,MKNRoad, Alandur, Chennai - 600 016.

M/s M.Srinivasan & Associates, Chartered Accountants, No.5 B Wing, Parsn Manere, 9th Floor, 442, Anna Salai, Chennai 600 006.

M/s K.Ramkumar & Co. Chartered Accountants, No. A1, 7th Floor, Tower 3, Sakthi Towers, No. 766, Anna Salai, Chennai-600 002.

COMPANY SECRETARY IN PRACTICE

Sri.K.N.RaghavanBCom.,FCS,HouseofHiranandani,TowerAmalfi,FlatNo.1804,18thFloor,No.5/63, OMR Egattur, Chennai-600130.

S.No. Our Counsel / Advocates

1 Sri. K Raghavendiran, B.Com., LL.B, DLL (Hons) Roll No.5 / 3, 9th Street, Guru Kalki Apartment, Nanganallur, Chennai –600 061.

2 Sri. L Prabahar New No.51 Old No.22 Ground Floor, Royal Builders, Soorappan Street, Triplicane, Chennai- 600005

3 Sri .T R V Vittal, B.Com., B. L., Advocate “Vittal Vihar” No.45, Bharathipark Cross Road- 3, Coimbatore- 641 011

4 Sri R Seshagiri Rao B.A., B.L., (DP & PA) (P G Diploma in Law) Senior Advocate, “Sri Raghavendra Apartments” No 36/9 G K Venkataraman Street, Kumbakonam – 612 001

5 Sri .V Rajagopal, B.Sc., LL.B., Advocate & Commissioner of Oaths No 369/5, Sooramangalam Main Road, Sooramangalam, Salem – 636 005

6 Sri. S Ganesh Babu M.A ., B.L., Advocate & Commissioner of Oaths No 237, Naicker New Street, Madurai – 625 001

7 1. Sri. S.Ramesh, B.Sc. B.C, Advocate, No.8, Pasupathipalayam, Karur - 639 001

2. Sri. V.Prakasam, Advocate, No.88 B/16, Alamara Street, Karur-639 001

8 Sri. N.S.Raja Ganesh, B.Sc. LLB. Advocate, No.485, Bengaluru Road, Krishnagiri - 635 001

9 Sri. J.Sriram, B.A.B.L, Advocate, No.16/66, T.S.Puram,Valipalayam Main Road Tirupur-641 601.

10 Sri. V.Srinivasan, M.A.B.L, Advocate, No.15, Upstairs Kannakurichi Main Road, Hasthampatti, Salem-636004

11 Sri.S.Balaji, B.Com, M.A., LLB, Advocate, No. 9/7,M.G.Road, Hosur-635109

47


Proxy Form (Form No. MGT-11)

[PursuanttoSection105(6)oftheCompaniesAct,2013andRule19(3)oftheCompanies (ManagementandAdministration)Rules,2014]

Name of the Company : Sriman Madhwa Sidhantaonnahini Permanent Nidhi Limited

CIN : U65110TN1881PLC002799

Registeredoffice :No.37CarStreet,Triplicane,Chennai-600005

Name of the Member(s):

Registered address:

E-mail Id:

I/ We being the member of …………, holding…..shares, hereby appoint

1. Name : .....................................................................................................

Address : ..................................................................................................

E-mail Id : .................................................................................................

Signature: .......................................................................... , or failing him

2. Name : .....................................................................................................

Address : ..................................................................................................

E-mail Id : .................................................................................................

Signature : .............................................................................................. ,

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at 138th Annual General Meeting of members of the Company, to be held on Saturday the 19th December 2020 at Sri Raghavendra Mandapam, Singarachari Street, Triplicane, Chennai - 600 005 at 3.00 p.m, and at any adjournment thereof in respect of such resolutions as indicated below:

Signed this ............. day of ....................... 2020

Signature of Shareholder

Signature of Proxy holder(s)

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, before the commencement of the Meeting.

Affix

`. 1 /-

Revenue

Stamp

""

""

48


MEETING VENUE - MAP

49


ATTENTION SHARE HOLDERS

Since, our 138th AGM is being held in the midist of COVID-19 Pandemic the

shareholders are advised to adhere to the following guidelines issued by the

Government for any large assembly of people.

1. The assembly of members are presently restricted to 100 persons.

2. All the shareholders, who wish to participate in the meeting should wear

Face Mask compulsorily. It is informed that without face mask members

are not allowed to enter and sit inside the meeting hall to participate.

3. Hand sanitizer are being provided on the main entrance to the meeting hall

and all are requested to clean their hands before entering the meeting hall.

4. Considering the Pandemic, the meeting should be concluded at the earliest

to avoid large gathering of share holders for a longer duration.

We earnestly request your co-operation for holding the meeting smoothly.

Management S.M.S.O.Permanent Nidhi Ltd

50


ATTENTION SHARE HOLDERS

Sub : Payment of Dividend –Deduction of Tax.

Under the Income Tax Act 1961 and the subsequent amendment of the Finance

Act 2020, the deduction of TDS on dividend is mandatory if the quantum of

dividend payable exceeds `.5,000/- and above. The Nidhi is expected to

deduct Income Tax @7.5% on the dividend payout and remit it to Central

Government.

For Non-deduction of TDS the shareholders are to submit either Form15G/

or Form 15H whichever is applicable in their case to the Nidhi on or before

19/12/2020.

Kindly note if there is no communication and non receipt of either Form 15G or

15H before the said due date the Nidhi is empowered to deduct TDS at 7.5%

on the dividend payout and remit it to the Central Government.


51


ATTENTION SHARE HOLDERSSub : Payment of Dividend –Crediting to your Bank Account.

We now made easy for getting dividend from our Nidhi.

Under the Scheme dividend payout are now directly credited to your bank account instantly or you may also draw from your savings deposit account with our 37 branches nearer to your home.

Kindly advice immediately for transferring the dividend amount either to your bank account or Savings deposit account with our Nidhi by furnishing the following details.

1. Bank Name & Branch

2. Account Number

3. IFSC Code

In case of exercising the option of crediting in our Nidhi’s Savings deposit account kindly furnish Savings deposit account number and branch.

Your requisition may be forwarded either by post or on Nidhi’s email.

Our Email id will be smso1881@ gmail.com.


52


For the records of share holders

sriman madhwa sidhantaonnahini permanent nidhi ltd · 2020. 11. 30. · 1 sriman madhwa...

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