CONTENTS

Vision, Mission,
Purpose Chairman’s Message
01 02

Board of Directors Eight Years of Pradhan

Mantri Mudra Yojana
04 05
Annexures to the Directors’
Directors’ Report Report
13 23

Independent Auditor’s
Balance Sheet
Report
32 41

Statement of Cash
Statement of Profit and
Flows
Loss
42 43

Statement of Changes Significant Accounting

in Equity Policies
45 47

Notes to Financial
Statements Notice
58 105

ii
 MUDRA Vision
To be an integrated financial
and support services provider
par excellence, benchmarked
with global best practices and
standards, for the bottom of
the pyramid universe for their
comprehensive economic and
social development.

MUDRA
Vision

MUDRA MUDRA
Mission Purpose

MUDRA Mission MUDRA Purpose

To create an inclusive, sustainable Our basic purpose is to attain
and value based entrepreneurial development in an inclusive and
culture, in collaboration with our sustainable manner by supporting
partner institutions in achieving and promoting partner institutions
economic success and financial and creating an ecosystem of
security. growth for micro enterprises
sector.

1
 CHAIRMAN’S MESSAGE

F
inancial Year 2023 (FY 2023) saw India continue THE YEAR GONE BY
its growth trajectory of development with the The previous year was a year of consolidation for most
objective of becoming a USD 5 trillion economy. of the intermediaries post the pandemic, especially the
Towards this objective, the role of Pradhan Mantri Mudra smaller ones who were affected the most. It also saw
Yojana (PMMY) and Micro Units Development & Refinance hardening of the interest rates driven by synchronised
Agency Limited (MUDRA) ensures that the bottom of tightening of the monetary policy across the world. This to
the pyramid is not left out and equally contributes to the some extent may have impacted the pace of consolidation
process of nation building and wealth creation. In the for the intermediaries especially, the smaller MFIs/NBFCs.
last 8 years since the launch of PMMY, MUDRA loan has
emerged as the preferred option for all the constituents However, the concessional refinance available out of
in the unorganised and unfunded segment to embark on the Priority Sector Shortfall fund from MUDRA ensured
their own individual mission of livelihood and growth and that many Banks, NBFCs and MFIs catering to the small
thus participate in the collective objective of development. borrowers continue their lending to the unorganised
During the last 8 years, we have seen MUDRA loans slowly segment uninterrupted. The understanding and empathy
transforming the semi-urban, rural and hinterlands of our of our Member Lending Institutions partners for their end-
country. MUDRA, in establishing and strengthening the customers has ensured that the liquidity is channelled to
formal credit channels for nurturing the green shoots at the MUDRA segment irrespective of the MUDRA refinance
grass root level, has come to become a brand synonymous which is evident from the 35% growth in PMMY during the
with empowerment and hope. year across MLIs.

The 8 years journey of MUDRA has had a positive impact During FY 2022-23, under PMMY, total amount of `4.56
at the ground level and has the potential to be scaled up lakh crore was sanctioned (Disbursement of `4.50 lakh
significantly since there is ample opportunity to make crore) in 6.23 crore loan accounts, which has helped in
a difference at the last mile. In the year gone by i.e., FY extending the much needed financial support to the poor
2022-23, has expanded the reach of MUDRA, with new entrepreneurs who are mostly from the weaker sections of
product while achieving milestones for the institution in the society, viz. SC/ST/OBC/Women in large numbers. The
the process. Banks, NBFCs and MFIs which have catered to the micro-

2
enterprise & small business segment under PMMY have MUDRA has overtaken the operational income. However,
yet again proven themselves as champions in sustaining this is planned to be addressed in the coming financial
the livelihoods and enterprise at the base of the economy. year through optimal utilisation of funds for operations.
Besides, MUDRA has also launched a new scheme where
MUDRA continues to provide refinance support to such it is expected that the operational income would be
Banks, NBFCs and MFIs against their loans under the increased comparatively to non-operational income.
PMMY, thereby contributing to affordability of borrowing
for the segment and lowering the lending cost of the LOOKING AHEAD
sector. As stated last year, MUDRA has already consolidated its
PTC portfolio which has come on its own this year and has
During FY 2021-22, MUDRA sanctioned `15,623 crores potential and scope to be taken forward. Understanding
and disbursed ₹15,253 crores. In FY 2022-23, while the significance of technology intervention at the grass
public sector banks continued to be the main partners root level, a small beginning has been made by partnering
in channelling MUDRA loans, the focus was also to enter with Fintech NBFCs. Recognising the critical role these
into new partnerships with MFIs/ NBFCs, Small Finance institutions play in reaching out to the remotest borrower
Banks (SFBs) and Regional Rural Banks (RRBs) to reach with their products on the strength of technology
out to the target segments, so as to reach out to maximum and innovation, MUDRA plans to take this forward by
intermediaries. MUDRA also used its own capital fund for partnering with similar other entities. Besides the business
deployment. As a result, the trend in growth witnessed in front, MUDRA would continue to interact with the various
the previous year has continued. The total sanctions to stakeholders for on-lending permission, DFI status and
Banks, SFBs and RRBs which increased from `11,557 crore other issues.
(16 entities) in FY 2020-2021 to `12,441 crore (17 entities)
in FY 2021-2022 and saw FY-2023 end with `10,173 crore As per the IMF’s World Economic Outlook (WEO) released
(20 Entities). In the NBFC and MFI segments, the sanction in April 2023, global growth for 2023 at 2.8 per cent is likely
stands at `675 crore and `973 crore in FY 2023 as against to be followed by the medium-term growth plateauing at
`2,090 crore and `1,025 crore in FY 2022 respectively. 3.0 per cent. However, India continued to be a silver lining
The sanction under PTCs has increased to `427 crore in with the real GDP growth projected at 6.50% for FY 2023-
FY 2023 from `67 crore in FY 2022. It is important to note 24. Hence, the coming year may see the continuation of
that this performance is against backdrop of ` 10,000 crore the growth momentum in the backdrop of opportunities
PSS fund allocation in FY 2022-23 as against `15,000 from global supply chain realignment which the country
crore drawn in FY 2021-22. with its resonant corporate sector and robust financial
sector backed by fiscal policy thrust on quality government
Taking Banks, SFBs and RRBs alone into account, there is expenditure is well placed to tap.
an increase of about 5% in outstanding as on March 31,
2023 vis-à-vis the previous year. The number of NBFCs MUDRA and PMMY initiatives have shown that bottom
and MFIs assisted (including PTC portfolio) by MUDRA most segment can grow and contribute on its own in a self-
during the year was 24 (entity disbursed) taking the sustaining manner with necessary formal credit support
number to 44 as on March 31, 2023. MUDRA also strived from institutions. In the last 8 years of its existence,
to provide liquidity to NBFCs/MFIs by subscribing to their MUDRA has strived and worked to create entrepreneurs
Pass Through Certificates (PTCs). A total of 7 such deals at the grass root level. This needs to be taken to newer/
were fructified aggregating `427 crore during the year higher level with involvement of all the stakeholders
which has been a noteworthy achievement considering including the private sector. There is huge market for small
the product has been launched in later half of FY 2021-22. loans to the underserved segments which needs to be
tapped. MUDRA would continue to play its role towards
The year gone by has also seen MUDRA achieving a few this end.
financial milestones in terms of portfolio and balance sheet
size, income, profit etc. where it has surpassed all previous At the end, I would like to thank all the stakeholders,
figures. During the year, the total revenue of MUDRA including Small Industries Development Bank of India,
recorded a substantial increase of 52% on account of Ministry of Finance and Reserve Bank of India and partner
Northward movement in the rates of interest as well as MLIs for their continuous support and feedback in our
the fact that maximum disbursement took place in the journey and to “Team MUDRA” for successfully meeting
last quarter of FY 2022. This has resulted in the revenue the challenges with their committed and dedicated work.
going up from `1,014.58 crore in FY 2021-22 to `1,537.20
crore in FY 2022-23. The Net Profit recorded a substantial
increase from `246.51 crore in FY 2021-22 to `577.45 (Sivasubramanian Ramann)
crore in FY 2022-23. This positive development also had CHAIRMAN
a different side where the non-operational income of

3
Board of Directors

Shri Sivasubramanian Ramann, IA&AS

Chairman

Shri Bhushan Kumar Sinha Shri Mukesh Kumar Bansal (IAS) Shri Vasantha Rao Satya Venkata Rao
Govt. Nominee Director Govt. Nominee Director SIDBI Nominee Director
Cessation w.e.f. November 18, 2022 Appointment w.e.f. November 22, 2022 Cessation w.e.f. June 02, 2023

Shri Sudatta Mandal Shri Arvind Kumar Jain Smt Smita Affinwalla
SIDBI Nominee Director Independent Director Independent Director
Cessation w.e.f February 07, 2023 Cessation w.e.f. June 04, 2023

Smt Mala Sinha Shri S V Sastry Shri Vinay Hedaoo

Independent Director Independent Director MD & CEO
Appointment w.e.f. June 05, 2023 Appointment w.e.f. February 15, 2023

4
Eight Years of Pradhan Mantri
Mudra Yojana

Cumulative Outreach Empowering Addressing the

to 41.16 crore Women with Credit Needs of
MSE Borrower 68.62% Loan Weaker Sections with
Accounts with Credit Accounts belonging 50.80% of the Loan
Support of to Women Accounts belonging
` 22.89 lakh crore Beneficiaries. to SC/ST/OBC

Pradhan Mantri Mudra Yojana (PMMY), the Flagship Programme of the Prime Minister aimed at Funding the Unfunded
micro enterprises and small businesses, completed 8 years of its operations, extending a cumulative amount of ` 22.89
lakh crore under the programme to 41.16 crore loan accounts, primarily benefitting the borrowers of weaker sections of
the society.

The Lending Institutions, which include all the Public Sector Banks, Private Sector Banks, Regional Rural Banks, Small
Finance Banks, Micro-Finance Institutions (MFIs) and Non-Banking Financial Companies (NBFCs), together have
exceeded the annual targets set out by the Government of India under PMMY every year.

PMMY: Target vs Achievement

(Amt. in ` lakh crore)

Note:-The data indicates targets & achievements pertaining to sanction figures for FY 2015-16 to 2021-22, whereas the data for FY 2022-23 is pertaining
to disbursement figures.

5
During these eight years, Micro Units Development & Refinancing Agency Ltd. (MUDRA), as a support institution,
has played a dual role by extending refinance support to various lending institutions and monitoring the progress of
implementation of PMMY closely through a dedicated portal which captures various aggregated data pertaining to the
scheme PMMY as per the requirements of the Govt. of India.

PMMY during 2022-23

Agency wise Achievement
The target set by the Government of India for disbursements under PMMY for the year 2022-2023 was ` 4.40 lakh
crore which was distributed across various lending institutions viz banks, MFIs and NBFCs based on their outreach and
presence in various parts of the country. The category-wise performance against their overall targets for the year 2022-23
is as follows:

Table 1: Institution wise performance

(` crore)

Category Target Disbursed Disbursed Growth

Amount FY Amount FY
2022-23 2021-2022

Public Sector Banks (incl. Regional Rural Banks) 1,71,118.78

1,85,460.00 1,17,260.88 46%
Percentages of achievement for FY 2022-23 92%
Private Sector Banks (incl. Foreign Banks) 1,41,116
1,28,700.00 1,17,406.42 20%
Percentages of achievement for FY 2022-23 110%
Small Finance Banks 38,297
28,930.00 29,189.50 31%
Percentages of achievement for FY 2022-23 132%
Micro Finance Institutions 66,830.62
60,260.00 48,847.97 37%
Percentages of achievement for FY 2022-23 111%
Non-Banking Finance Companies 33,061.27
36,650.00 18,697.08 77%
Percentages of achievement for FY 2022-23 90%
State Co-operative Banks 0
0 0.36 -
Percentages of achievement for FY 2022-23 NA
Total 4,40,000.00 4,50,423.62 3,31,402.21 36%

Bank Type wise Target Vs Achivement (` crore)

6
The achievement data indicates a disbursement of ` 1,41,116 crore Small Finance Banks achieved 132%
36% increase over the previous during the year, registering 20% of their target. During the year, the
year in the overall performance of growth over the previous year. The 9 SFBs disbursed a total amount of
the programme implemented by major contributors in the private ` 38,297 crore to 69.63 lakh loan
all the lending institutions. This is sector banks category were IndusInd accounts. Ujjivan Small Finance Bank
mainly due to the increased volume Bank and Bandhan Bank with was on top of the table among SFBs,
of disbursements done in FY 2022- ` 40,543 crore and ` 40,386 crore of with a disbursed amount of ` 12,486
23 by the NBFC-MFI, SFBs & Private disbursement respectively. crore to 20.46 lakh loan accounts.
Sector Banks.
MFIs disbursed a total loan amount State wise Performance
However, there is a sizeable growth of ` 66,830.62 crore to 155.81 While the Institution wise targets
in respect of disbursements of Public lakh loan accounts. Grameen were assigned by the Govt. of
Sector Banks and NBFCs. Koota Financial Services Private India, the same were further sub-
Limited was the leading MFI with a allocated state-wise by the respective
Among the Public Sector Banks, disbursed amount of `11,123.89 lending institutions based on their
State Bank of India (SBI), with crore in more than 22.62 lakh loan network and potential to lend. The
disbursement of ` 35,601.64 crore accounts. state level performance is being
to 15.40 lakh loan accounts topped monitored by the respective SLBCs
the table. SBI was followed by NBFCs have also emerged of the states. Of all the states,
Punjab National Bank and Canara contributor to the PMMY with a total Uttar Pradesh topped with sanction
Bank with a disbursement figure of disbursement of ` 33,061.27 crore. of ` 47,427.26 crore, followed by
` 20,370.70 crore and ` 19,147.82 In this category, Shri Ram Transport Bihar with ` 45,448.59 crore and
crore respectively. Finance Company Limited has been Tamil Nadu stood at third position
the highest contributor with a total with ` 43,730.39 crore.
The Private Sector Banks recorded sanction amount of ` 14,500 crore.
improvement in performance with

Table 2: Performance of top 10 states

(` crore)

Sr. Disbursement Amt Disbursement Amt

Name of state
No (2022-2023) (2021-2022)

1 Uttar Pradesh 47,427.26 32,850.8

2 Bihar 45,448.59 30,725.07
3 Tamil Nadu 43,730.39 32,262.94
4 Karnataka 40,746.09 28,374.92
5 West Bengal 38,353.85 33,949.81
6 Maharashtra 36,104.52 25,416.48
7 Madhya Pradesh 24,632.59 18,218.44
8 Rajasthan 24,492.62 18,728.94

9 Odisha 21,505.13 16,557.27

10 Gujarat 17,507.49 11,990.04

7
District wise performance
District wise performance under the scheme was also captured on the PMMY Portal. Except a few lending institutions,
almost all have reported their data of district-wise performance.

A few agencies which could not provide district-wise break up have entered their data in the “Other” districts under the
respective states. The top 10 districts under PMMY performance are given in the table below:

Table 3: District wise performance

FY 2022-23
Sr. No. District Name No of A/Cs Disbursement Amt Share in the Total
(` crore) amount disbursed

1 Bangalore urban 4,33,082 5,287.90 1.17%

2 Murshidabad 6,57,973 3,933.01 0.87%
3 Bellary 6,28,960 3,581.45 0.80%
4 North 24 Parganas 4,74,520 3,406.70 0.76%
5 Pune 3,14,046 3,225.90 0.72%
6 Patna 4,10,222 3,031.00 0.67%
7 Ahmedabad 1,59,474 3,016.83 0.67%
8 Chennai 4,37,406 2,891.60 0.64%
9 Jaipur 1,88,812 2,777.88 0.62%
10 Mysore 4,08,084 2,711.86 0.60%
41,12,579 33,864.12 7.52%

These 10 districts formed 7.52% share in the total disbursements during FY 2022-23. Better performance of these
districts was due to them being mostly urban centres with large potential of small business activities and presence of
large number of financial outlets to serve them.

Regional analysis
The region wise achievements divided into five regions based on their geography and the distribution of PMMY loans
sanctioned during the year has been analysed and given below:

FY 2022-2023 2021-2022 Growth in

Disbursement
Region No of A/Cs Disbursement No of A/Cs Disbursement
Amt (%)
Amt (` crore) Amt (` crore)
Share Share

1,35,57,609 1,11,573.17 1,15,45,805 80,808

North 38.07%
21.76% 24.77% 21.46% 24.38%
2,10,09,744 1,24,667.22 1,87,24,571 95,645
East 30.34%
33.72% 27.68% 34.81% 28.86%
10,84,117 10,486.13 11,74,574 8,251
North East 27.08%
1.74% 2.33% 2.18% 2.49%
1,58,71,449 1,24,650.13 1,33,29,413 90,532
South 37.69%
25.47% 27.67% 24.78% 27.32%
1,07,87,679 79,047.00 90,21,163 56,166
West 40.74%
17.31% 17.55% 16.77% 16.95%
Total 6,23,10,598 4,50,423.65 5,37,95,526 3,31,402.19 35.91%

8
 North: East : North East: South: West:
• Chandigarh, • Odisha • Assam • Karnataka • Dadra & Nagar
• Haryana • West Bengal • Arunachal Pradesh • Kerala Haveli
• Himachal Pradesh • Bihar • Manipur • Puducherry • Daman & Diu
• Jammu & Kashmir • Jharkhand • Meghalaya • Tamil Nadu • Gujarat
• Delhi • Chhattisgarh • Mizoram • Telangana • Goa
• Uttar Pradesh • Nagaland • Andhra Pradesh • Madhya Pradesh
• Uttarakhand • Sikkim • Andaman & • Maharashtra
• Punjab • Tripura Nicobar
• Rajasthan • Lakshadweep

Region-wise Disbursement under PMMY and their share

(` crore)

Loan Category Analysis

Mudra loans are extended in three categories based on the size of the loans. They are Shishu (upto
` 50,000), Kishore (above ` 50,000 and upto `5 lakh) and Tarun (Above `5 lakh and upto ` 10 lakh). The
share of the three categories of PMMY has been analysed and is given below in the table:

Table 4: Category wise analysis of PMMY scheme

(` crore)
FY 2022-23 FY 2021-2022 % change
Category No. of loan Disbursement No. of loan Disbursement Disbursement
accounts Amt. accounts Amt. Amt.
Share Share

43077851 141609.85 4,17,21,154 1,23,969.05

Shishu 14.23%
69.13% 31.44% 77.56% 37.41%
17915912 200936.63 1,10,88,206 1,33,389.24
Kishor 50.64%
28.75% 44.61% 20.61% 40.25%
1316835 107877.18 9,86,166 74,043.91
Tarun 45.69%
2.12% 23.95% 1.83% 22.34%
TOTAL 62310598 450423.66 53795526 331402.20 35.91%

9
Among the three categories, Shishu loans had the largest share of 69.13% in terms of number of accounts and 31.44%
in terms of value.

Distribution by number of accounts

Shishu Kishor Tarun

43,077,851 17,915,912 13,16,835
69.13% 28.75% 2.12%

Among the three categories, Kishor loans had the largest share of 44.61% followed by Shishu loans at 31.44% in terms
of value.

Distribution by Disbursement Amount (` crore)

Shishu Kishor Tarun

1,41,609.85 2,00,936.63 1,07,877.18
31% 45% 24%

10
Assistance to less privileged sections
PMMY, since its implementation, has focussed on providing incremental funding support to the weaker sections of the
society. The share of sub-categories of borrowers like SC, ST, OBC, Women and Minorities under different categories of
PMMY loans was analysed and details of the same are given below.

Table 5: Sub - categories of borrowers: Sanctions (FY 2022-23)

(` in crore)
Shishu Kishore (Loans from Rs. Tarun
(Loans up to Rs. 50,000) 50,001 to Rs. 5.00 Lakh) (Loans from Rs. 5.00 to Total
Sr.
Category Rs. 10.00 Lakh)
No.
No Of Disbursement No Of Disbursement No Of Disbursement No Of Disbursement
A/Cs Amt A/Cs Amt A/Cs Amt A/Cs Amt

30856600 286445.74
1 General 19667831 64780.57 10084798 129512.71 1103971 92152.46
(49.52%) (63.59%)
10335914 47272.28
2 SC 8034399 26058.45 2265513 18612.13 36002 2601.71
(16.59%) (10.50%)
3536426 17293.9
3 ST 2770354 8689.36 740882 6741.82 25190 1862.71
(5.68%) (3.84%)
17581658 99411.74
4 OBC 12605267 42081.47 4824719 46069.97 151672 11260.29
(28.22%) (22.07%)
5 Total 43077851 141609.85 17915912 200936.63 1316835 107877.18 62310598 450423.66
Out of Above
Women 44256813 215034.55
6 32817496 112228.35 11285672 91691.19 153645 11115.01
Entrepreneurs (71.03%) (47.74%)
New
10066770 129422.76
7 Entrepreneurs 7251841 25825.09 2359449 48268.23 455480 55329.44
(16.16%) (28.73%)
/ Accounts
7517571 45328.75
8 Minority 5290565 16601.08 2143694 22347.96 83312 6379.72
(12.06%) (10.06%)
Note: Figure in parenthesis indicate the share in percentage.

Out of the total amount disbursed,

47.74% went to the women PERCENTAGE SHARE OF TOTAL NUMBER OF
borrowers. 52.67% of the accounts ACCOUNTS IN GENERAL, SC, ST & OBC
in Shishu category belonged to
women who were disbursed 24.92%
of the amount in the Shishu category. 16.59%
The reason for high share of women 28.22%
in Shishu category is lending of
5.68%
micro-loans by the MFIs primarily to
women.

The share of the weaker section (SC/

49.52%
ST/OBCs) borrowers of the society in
the PMMY programme was 50.48% in
terms of loan accounts, and 36.41% in
terms of loan amount disbursed. The
shares of SC, ST and OBC category
borrowers were 10.50%, 3.84% and
22.07%, respectively, in terms of the
number of loans disbursed.

11
The borrowers from Minorities category accounted for 12.06% in terms of number of accounts and 10.06% in terms of
amount disbursed in FY 2022-23 under PMMY.

Average loan size

The average size of loans extended under PMMY in different categories of loan is analysed and given below:

Amount Disbursed (` in crore) No. of loan accounts Average loan size (`)

FY 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23

TOTAL 3,31,402.20 4,50,423.66 5,37,95,526 6,23,10,598 61,604.04 72,286.85

The average loan size under PMMY during FY 2022-23 increased to ` 72,286.85 as against ` 61,604.04 in the previous
year.

This shows the increasing share of Kishore and the Tarun Borrowers in PMMY.

Mudra Card
To enable the MSE borrowers to effectively avail
the working capital funds at reasonable and
affordable cost, a debit card on RuPay platform
named Mudra Card has been issued to PMMY
borrowers by various lending institutions. During
FY 2022-23, 1.71 lakh Mudra cards have been
issued for an amount of ` 4,402.61 crore.

Since the cards issued during one year are usable

in the next years also, the number of cards
reported relate to only the new cards issued
during the FY 2022-23. However, the cumulative
number of Mudra Cards including the existing
cards in use are more than 20 lakh.

Interest Subvention Scheme for Shishu Loans under Pradhan Mantri Mudra Yojana
Under the Aatmanirbhar Bharat Package to mitigate the impact of Covid 19, GOI had launched “Interest Subvention
Scheme for MUDRA – Shishu loans” wherein SIDBI was the implementing agency for an interest subvention of 2%
provided to all MUDRA - Shishu loan payees. Total claims of `636.90 crore were settled as on September 30, 2022 towards
loans sanctioned to the Shishu loan beneficiaries of 104 lending institutions.

Conclusion
Pradhan Mantri Mudra Yojana (PMMY) continues to serve millions of unfunded
micro-borrowers in the country with loans much needed for their business
activities resulting in upliftment of their lives.

The PMMY programme, during the last eight years, has benefitted 41.16 crore
loan accounts with a disbursement of ` 22.89 lakh crore. Thus, enabling the
grass-root economy of the country to contribute in a bigger way to the overall
economic growth of the nation.

12
 Directors’ Report

Dear Members, Table 1: Financial Results Highlights FY 2022−2023

Your Directors take pleasure in (` crore)
presenting the 8th Annual Report Particulars 2022-23 2021-22
on the business and operations
of Micro Units Development & Revenue from operations # 752.40 525.36
Refinance Agency Ltd. (MUDRA) Other income # 784.80 489.22
for the Financial Year (FY) ended
(A) Total income 1,537.20 1,014.58
31st March 2023. The Audited
Financial Statements, the Auditors’ Employee benefit expenses 9.63 7.39
Report and the Report of the Finance costs 750.83 661.39
Comptroller & Auditor General Depreciation expense 0.42 0.22
of India on the Accounts for
Provisions & write-off (60.65) 4.49
FY 2022-23 are also attached.
Net Loss on de-recognition of financial
51.33 -
FINANCIAL RESULTS instruments under amortized cost category
Your Company’s revenue from Other expenses 11.70 10.06
operations increased from `525.36 (B) Total expenses 763.25 683.55
crore to `752.40 crore in FY 2022-
Profit before tax (A-B) 773.95 331.03
23. Total income increased from
`1,014.58 crore to `1,537.20 crore, (C ) Total tax expenses 196.50 84.52
while profit after tax has increased Profit for the year 577.45 246.51
from ` 246.51 crore to ` 577.45 Opening Surplus 18.37 38.39
crore in FY 2022-23. The highlights Dividend @ 33.52 25.14
of the financial results are presented
Amount transferred to general reserves 415.00 125.00
in Table 1.
Amount transferred to statutory reserves 115.49 49.30
Amount transferred to Impairment Reserve 10.92 67.09
Surplus 20.89 18.37

@ Subject to approval of Members at the Annual General Meeting (AGM)

#Figures for FY 2021-22 are regrouped.

13
APPROPRIATIONS DEPOSITS
Your Company has not accepted any deposits from the
Transfer to Statutory Reserves
public during FY 2022-23 and shall not do so without prior
Your Company is registered as a systemically important approval of the RBI.
non-deposit taking, non-banking financial institution
(NDSI-NBFC) under the provisions of Section 45-IA of the PARTICULARS OF LOANS, GUARANTEES OR
Reserve Bank of India Act, 1934. An amount of `115.49 INVESTMENTS
crore (20% of the net profit), has been transferred to Pursuant to section 186 (4) of The Companies Act,
Statutory Reserves as stipulated under Section 45-IC of 2013 every Company shall disclose to the members in
the Act. the financial statement the full particulars of the loans
given, investment made, or guarantee given, or security
Transfer to General Reserves provided and the purpose for which the loan or guarantee
or security is proposed to be utilised by the recipient of
An amount of `415 crore has been transferred to General
the loan or guarantee or security. However, pursuant to
Reserves as proposed by the Board of Directors at its
Section 186(11) of the Companies Act, 2013, read with
meeting held on June 01, 2023, in accordance with
Rule 11(2) of the Companies (Meetings of Board and its
requirement under Section 123 (1) of the Companies Act,
Powers) Rules, 2014, the loans made, guarantees given,
2013.
or securities provided in the ordinary course of business
by an NBFC registered with the RBI is exempt from the
Dividend applicability of provisions of Section 186 of the Act. As
Your Directors have recommended first and final dividend such, particulars of refinance provided by your Company
of `0.20 per equity share (of `10 face value) (compared have not been disclosed in this report.
with `0.15 per share in FY 2021-22) on a pro rata basis
for FY 2022-23. The proposal is subject to the approval The details of your Company’s investments are furnished
of shareholders at the ensuing eighth Annual General under Note 7 forming part of financial statements for FY
Meeting of your Company. The dividend shall be paid to 2022-23.
members whose names appear in the Register of Members
of your Company, as on 31st March 2023. RELATED-PARTY TRANSACTIONS
Related-party transactions as disclosed in Note 41 of the
SHARE CAPITAL audited financial statements, entered during FY 2022-
Your Company’s paid-up equity share capital stood at 23, were conducted on an arm’s-length basis and in the
`1,675.93 crore as on 31st March 2023, comprising 167.59 ordinary course of business. The approval of the Board of
crore equity shares of `10 each, fully subscribed by SIDBI. Directors was obtained wherever required.

Financial Highlights Further, there are no materially significant related-party

The Progress so far transactions made by your Company. Accordingly, the
Amt. (`) in Crore particulars of the transactions as prescribed in Form AOC
- 2 of the rules prescribed under Chapter IX relating to
As on March 31 2023 2022
Accounts of Companies under the Companies Act, 2013,
Total Assets 38,453 33,048 are not required to be disclosed as they are not applicable.

Outstanding Portfolio 21,547 19,943

Capital-Authorised 5,000 5,000
- Paid-up 1,676 1,676
Net-worth 3,313 2,760
OPERATIONS
CAPITAL ADEQUACY
Your Company’s capital adequacy ratio was 71.61 % as During FY 2022-23, your Company sanctioned
on 31st March 2023, which is significantly higher than the ` 12,248 crore
minimum threshold limit of 15% prescribed by the RBI for to 20 Banks, 7 MFIs, 7 NBFCs and through 7 PTCs &
large-sized, non-deposit taking, systemically important
non-banking financial companies (NDSI-NBFCs).
` 12,513 crore was disbursed.

14
Sanctions & Disbursements (` in crore)
Trends in Refinance Sanctions

(` in crore)
Borrower Category 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

PSB + RRB 2,671.25 2,068.52 4,072.48 4,529 2,158 10,479.65 11,807.87 8683
PVT+ SFB 0 0 1,600 1,270 264 1,077 633.28 1490
MFI 812 820 446.5 236 1,080 356 1,025 973
NBFC 0 399 1,137 1,200 1,309 400 2,090 675
PTC 49.95 271.42 721.92 323.1 0 0 66.66 427
Total 3533.20 3558.94 7977.90 7558.10 4811.00 12312.65 15622.81 12248.00

15
Trend in Refinance Disbursements

(` in crore)

Borrower Category 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

PSB + RRB 2,671.25 2,068.52 4,072.48 4,329 2,244 10,479.65 11,807.87 8683
PVT+SFB 0 0 1,350 1,470 265 947 708.28 1490
MFI 616 787 369.5 314 932 508.5 705 1118
NBFC 0 399 1,005 708 559 367.5 1,965 795
PTC 49.95 271.42 704.07 309.46 0 0 66.66 427
Total 3337.20 3525.94 7501.05 7130.46 4000.00 12302.65 15252.81 12513.00

MUDRA Overall Operations - Outstanding Year-wise

Category-wise Breakup of Refinance Category-wise Breakup of Refinance

Outstanding as on March 31, 2023 Outstanding as on March 31, 2022

16
Pradhan Mantri Mudra Yojana (PMMY) Monitoring of PMMY
The Pradhan Mantri Mudra Yojana (PMMY) envisages MUDRA has developed a MUDRA PMMY portal to capture
providing MUDRA loans up to `10 lakh by Banks, NBFCs, data on lending by various agencies and submitting its
and MFIs for income-generating micro/small enterprises report to the GoI with granular information such as type
engaged in the manufacturing, trading, and services of loan, type of borrowers, and their details agency-
sectors. wise, state-wise, and district-wise etc. The Department
of Financial Services (DFS), GoI, and MUDRA reviews
An overdraft amount of `10,000 sanctioned under progress of PMMY regularly.
Pradhan Mantri Jan Dhan Yojana (PMJDY) is also classified
as a MUDRA loan under PMMY. PRADHAN MANTRI MUDRA YOJANA (PMMY)
DURING FY 2022-23
MUDRA loans are classified into three categories: More than 6.23 crore MSME Loan accounts were
benefitted through PMMY during the year. A snapshot
• Shishu for loan up to ` 50,000 of various categories of beneficiaries is presented in
• Kishor for the loan above ` 50,000 up to ` 5 lakh, and Table 2.
• Tarun for the loan above ` 5 lakh up to ` 10 lakh

The names signify the stage of growth/development of

the micro-enterprises and their funding needs.

Table 2: Categories of MUDRA loans and beneficiaries FY 2022-23 and cumulative for 8 years under Pradhan Mantri
Mudra Yojana

2022-2023 Cumulative for 8 years since inception

No. of Amount Amount No. of Amount Amount
Category
Accounts sanctioned disbursed Accounts sanctioned disbursed
(`crore) (`crore) (`crore) (`crore)
Share Share

43077851 142766 141610 34,25,36,204 9,37,338 9,26,798

Shishu
69.13% 31.27% 31.44% 83.21% 39.92% 40.48%
17915912 204007 200937 6,09,54,997 8,57,463 8,28,194
Kishore
28.75% 44.69% 44.61% 14.81% 36.51% 36.17%
13,16,835 1,09,765 1,07,877 81,70,832 5,53,450 5,34,788
Tarun
2.12% 24.04% 23.95% 1.98% 23.57% 23.35%
TOTAL 6,23,10,598 4,56,538 4,50,424 41,16,62,033 23,48,250 22,89,781
Out of the above
4,42,56,813 2,16,954 2,15,035 28,24,88,984 10,58,623 10,21,457
Women
71.03% 47.52% 47.74% 68.62% 45.08% 44.61%
New entrepreneur 1,00,66,770 1,32,693 1,29,423 8,46,68,872 7,26,070 6,96,287
Accounts 16.16% 29.07% 28.73% 20.57% 30.92% 30.41%
3,14,53,998 1,65,955 1,63,978 20,91,35,349 8,16,714 8,00,056
SC/ST/OBC
50.48% 36.35% 36.41% 50.80% 34.78% 34.94%

The high percentage of women in terms of the number of The share of women borrowers stands at 71.03% by the
accounts is mainly due to the high share of Micro Finance number of accounts and 47.74% by disbursement amount
Institutions in Shishu loans, where women Borrowers in FY 2022-23.
mostly make up the clientele.
The participation of the under-privileged sections (SC, ST
The share of special categories of borrowers – SC, ST, & OBCs) of the society in the PMMY program was 50.48%
OBC, women, and minority – under different schemes of in terms of the number of loan accounts, and 36.41% in
PMMY continues to be significant in FY 2022-23. terms of the loan amount disbursed. The share of SC, ST,

17
and OBC categories were 10.50%, 3.84%, and 22.07%, is on deputation from SIDBI. His remuneration is paid by
respectively, in terms of the number of loan accounts your Company.
disbursed in FY 2022-23.
NRC CHARTER
The Minority category of borrowers accounted for The Nomination and Remuneration Charter of the
12.06%, in terms of the number of accounts and amount Company can be accessed on the Company’s website at
in FY 2022-23. www.mudra.org.in

New entrepreneur loan accounts stood at 16.16% of total REMUNERATION TO NON-EXECUTIVE

loan accounts in FY 2022-23, and 28.73% of the total DIRECTORS
disbursed amount. Nearly One crore new entrepreneur Non-executive Directors and Independent Directors (other
loan accounts were disbursed loan under PMMY during than Nominee Directors and Directors from the GoI) are
the year, compared with 65 lakhs in FY 2021-2022, paid remuneration by way of sitting fees for each meeting
registering a growth of 53.85%. of the Board and Committee of Directors attended by
them.
The MUDRA Yojana has thus continued helping fulfil
the aspirations of many MSE entrepreneurs who were DECLARATION BY INDEPENDENT DIRECTORS
otherwise outside the ambit of the formal banking system The Board of Directors of MUDRA has received a
and is addressing the issue of ‘funding the unfunded’ to a declaration from all Independent Directors as per Section
large extent. 149(7) of the Companies Act, 2013, and the Board is
satisfied that all of them meet the criteria of independence
PARTICIPATION IN SECTORAL EVENTS stipulated under Section 149(6) of the Companies Act,
Your Company sponsored a programme under Promotion 2013.
and Development (P&D) initiative for branding of MUDRA
in FY 2022-23 under the aegis of Hindustan Media Limited BOARD EVALUATION
(HT media Ltd.) for organizing the Mint MSME Summit on The evaluation of Directors, Committees, Chairman of the
08th February 2023 at New Delhi. Board, and the Board was conducted based on the criteria
and framework adopted by the Board. The outcome
This was an in-person event that brought together of the evaluation for FY 2022-23 was discussed by the
Industry leaders, economists, experts from Microfinance Nomination & Remuneration Committee and the Board.
Industry, MSME Owners, and policy makers to explore
the challenges and opportunities for state to revitalize the PARTICULARS OF EMPLOYEES
economy and become self- reliant. Your Company has not employed any individual whose
remuneration falls within the purview of the limits
This event allowed MUDRA to leverage upon HT’s brand prescribed under Section 197 of the Companies Act,
equity amongst esteemed stakeholders and generate 2013, read with Rule 5 (2) of the Companies (Appointment
awareness about MUDRA and its Schemes. and Remuneration of Managerial Personnel) Rules, 2014.

CORPORATE GOVERNANCE TRAINING & CAREER DEVELOPMENT

MEETINGS OF THE BOARD OF DIRECTORS Your Company has been focusing on continuous grooming
of its staff. During the year staff members attended
During FY 2022-23, the Board of MUDRA met 5 times training programmes on Securitization concepts and
on various dates in accordance with Section 173 of CRISIL framework for assessing securitization issuances
Companies Act, 2013. Details of these meetings are given and POSH sensitization drive through e-learning module.
in Annexure I.

The provisions of Companies Act, 2013, and rules made Empowerment & Accountability
thereunder, and the Secretarial Standards were adhered
Training Programme on Securitization concepts
to while considering the time gap between meetings and
holding the meetings according to prescribed procedures.
Celebration of Vigilance week in Office.

POLICY ON DIRECTORS’ APPOINTMENT &

Training programme on Sexual Harassment of
REMUNERATION
Women at Workplace (Prevention, Prohibition
REMUNERATION TO EXECUTIVE DIRECTORS and Redressal) Act, 2013.
Your Company has one full-time executive director, who

18
DIRECTORS AND KEY MANAGERIAL valuable contributions made by him during his tenure
PERSONNEL as a Chief Financial officer of the Company.
INDUCTIONS • Smt Pooja Kukreti, Company Secretary and
Compliance officer ceased to be Company Secretary
The following appointments were made during the year:
and Compliance officer of MUDRA, effective
• Shri Rishi Dwivedi was appointed as Chief Financial November 04, 2022. The Board of Directors
officer of MUDRA, effective May 12, 2022. placed on record their appreciation for the valuable
• Shri Mukesh Kumar Bansal as Nominee Director contributions made by her during her tenure as
of Department of Financial Services, Ministry of Company Secretary and Compliance officer of the
Finance, Government of India, effective November Company.
21, 2022. • Shri Arvind Kumar Jain, Independent Director ceased
• Shri Rajesh Kale as Chief Financial officer of MUDRA, to be Independent Director on account of completion
effective November 21, 2022. of his tenure, effective February 07, 2023. The Board
of Directors placed on record their appreciation for
• Shri Sadhu Venkataramana Sastry as Additional Non-
the valuable contributions made by him during his
Executive Independent Director of MUDRA, effective
tenure as an Independent Director of the Company.
February 15, 2023.
• Shri Vishnu Sah, Company Secretary and Compliance
• Shri Vishnu Sah as Company Secretary and
officer ceased to be Company Secretary and
Compliance officer of MUDRA, effective March 27,
Compliance officer of MUDRA, effective June 01,
2023.
2023. The Board of Directors placed on record their
• Shri Umesh Patil as Company Secretary and appreciation for the valuable contributions made by
Compliance officer of MUDRA, effective June 02, him during his tenure as Company Secretary and
2023. Compliance officer of the Company.
• Smt Mala Sinha as Additional Non-Executive • Smt Smita Affinwalla, Independent Director
Independent Director of MUDRA, effective June 05, ceased to be Independent Director on account of
2023 completion of her tenure, effective June 04, 2023.
The Board of Directors placed on record their
REAPPOINTMENTS appreciation for the valuable contributions made by
• As per the provisions of the Companies Act, 2013 her during her tenure as an Independent Director of
and relevant rules made thereunder Shri Sudatta the Company.
Mandal, Nominee Director, retire by rotation at the
ensuing AGM and, being eligible for reappointment. CHANGE IN DESIGNATION
The Board has recommended his re-appointment. The details of the Board of Directors of your Company,
and changes in directorship during FY 2022-23 are given
RETIREMENTS & RESIGNATIONS in Annexure I.
• Shri Bhushan Kumar Sinha, GoI Nominee Director
ceased to be Nominee Director on account of COMMITTEES OF THE BOARD
withdrawal of his nomination by DFS, effective As on March 31, 2023, the Board had Six Board
November 18, 2022. The Board of Directors Level Committees – Audit Committee, Nomination &
placed on record their appreciation for the valuable Remuneration Committee, Risk Management Committee,
contributions made by him during his tenure as a Corporate Social Responsibility Committee, Executive
Nominee Director of the Company. Committee, and IT Strategy Committee in compliance
• Shri Amitabh Mishra, Chief Financial officer ceased with the applicable provisions of the Companies Act,
to be Chief Financial officer of the Company effective 2013, and the RBI regulations. The composition of the
May 12, 2022. The Board of Directors placed on record Board and the Board Committees is provided in the
their appreciation for the valuable contributions made Annexure I.
by him during his tenure as a Chief Financial officer of
the Company.
BOARD AND BOARD COMMITTEES’ MEETINGS
CONDUCTED DURING THE PERIOD UNDER
• Shri Rishi Dwivedi, Chief Financial officer ceased to REVIEW
be Chief Financial officer on account of repatriation During the FY 2022-23,5 (Five) meetings of the Board
to SIDBI effective October 20, 2022. The Board of of Directors, 5 (five) Meetings of the Audit Committee,
Directors placed on record their appreciation for the 4 (four) meetings of the Nomination and Remuneration

19
Committee, 1 (one) meeting of the Corporate Social prudent judgments and estimates, to give a true and
Responsibility Committee, 5 (five) meetings of the Risk fair view of the state of affairs of the Company at the
Management Committee, 3 (three) meetings of the IT end of FY 2022-23 and of the profit and loss of the
Strategy Committee and 4 (four) meeting of the Executive Company for that period
Committee were held. (c) They have taken proper and sufficient care for
the maintenance of adequate accounting records
INTERNAL FINANCIAL CONTROL & ITS
in accordance with the provisions of this Act for
ADEQUACY
safeguarding the assets of the Company and
Your Company has adopted policies and procedures for
for preventing and detecting fraud and other
ensuring orderly and efficient conduct of business and
irregularities
has put in place standard operating procedures (SOPs)
and internal financial control for various schemes and (d) They have prepared the annual accounts on an
processes. Such internal financial controls were confirmed ongoing-concern basis
by the Statutory Auditors after testing, as adequate and (e) They have laid down internal financial controls to be
operating effectively. followed by the Company, and these internal financial
controls were adequate and operating effectively,
MATERIAL CHANGES AND COMMITMENTS
There have been no material changes and commitments (f) They have devised proper systems to ensure
affecting the financial position of your Company after compliance with the provisions of all applicable laws,
signing of the financial statements in this report. and that these systems were adequate and operating
effectively.
SIGNIFICANT AND MATERIAL ORDERS PASSED
BY REGULATORS, COURTS, OR TRIBUNALS DISCLOSURES REGARDING SEXUAL
There are no significant and material orders passed by HARASSMENT AT WORKPLACE
the regulators, courts, or tribunals impacting the going- The Company has zero tolerance for sexual harassment
concern status and the Company’s operations in future. at workplace and has adopted a Policy on prevention,
prohibition, and redressal of sexual harassment at
ANNUAL RETURN workplace in line with the provisions of the Sexual
As per the provisions of section 92(3) and 134(3)(a) Harassment of Women at Workplace (Prevention,
read with Rule 11 of the Companies (Management and Prohibition and Redressal) Act, 2013 and the Rules
Administration) Rules, 2014 as amended, every company thereunder (“the Act”) for prevention, prohibition, and
shall place a copy of the annual return on the website of redressal of complaints of sexual harassment at workplace.
the company, if any, and the web-link of such annual return The Anti Sexual Harassment Policy of the Company is
shall be disclosed in the Board’s report. Hence, it is no available on MUDRA’s bulletin board.
longer required to attach the extract of the Annual Return
i.e. Form MGT-9 in the Board’s report. The Company has also constituted an Internal Complaints
Committee (ICC) in compliance with Section 4 of the Act.
In compliance with section 134(3)(a), the annual return The details of the ICC are provided on the notice board.
referred to in sub-section (3) of Section 92 has been placed
on the website of the Company at www.mudra.org.in The Company has not received any complaint on sexual
harassment during the Financial Year 2022-23.
SECRETARIAL STANDARDS
The Company complied with all applicable Secretarial AUDIT REPORTS AND AUDITORS
Standards. AUDIT REPORTS
• The Auditors’ Report for FY 2022-23 does not
DIRECTORS RESPONSIBILITY: STATEMENTS
contain any qualification, reservation, or adverse
Pursuant to Section 134(3)(c) of the Companies Act, 2013,
remark. Further, there had been no instance of fraud
the directors confirm that, to the best of their knowledge
committed against your Company by any officer or
and belief,
employee that was required to be reported to the
(a) Applicable accounting standards had been followed central government by the auditors. The Auditors’
in the preparation of the annual accounts, along with Report is enclosed with the Financial Statements in
proper explanation relating to material departures this Annual Report.
(b) They have selected such accounting policies, applied • The Secretarial Audit Report for FY 2022-23 does not
them consistently, and made such reasonable and contain any qualifications or adverse remarks, which

20
 require any clarification/explanation. The Secretarial MAINTENANCE OF COST RECORDS & COST AUDITOR
Audit Report is enclosed as Annexure II to the The Company is not required to maintain cost accounts
Board’s Report. and records as required under Section 148(1) of the
Companies Act, 2013 read with rules made thereunder and
AUDITORS
hence appointment of Cost Auditor is also not applicable
STATUTORY AUDITORS to your Company.
Your Company is owned or controlled by SIDBI, which was
set up under an Act of Parliament. Accordingly, as per RISK MANAGEMENT POLICY
Section 139(5) of the Companies Act, 2013, M/s V C Shah Your Company has developed a Risk Management Policy
(chartered accountancy firm bearing registration number which inter-alia includes therein identification of elements
109818W), was appointed by the Comptroller and of risk which in the opinion of the Board may threaten the
Auditor General (CAG) of India as the Statutory Auditors existence of the Company.
of MUDRA, to conduct the audit of the FY 2022-23.
The risk management policy sets out the objectives and
SECRETARIAL AUDITORS includes identification of key risks and their mitigation
plans.
As required under Section 204 of the Companies Act,
2013, the Board has appointed Shri Deependra Omprakash
The Board reviews the Risk Management framework
Shukla, Practising Company Secretary to undertake
including significant risks, if any, and steps taken to
secretarial audit of your Company for FY 2022-23.
mitigate the same. There are no risks that may threaten the
existence of the Company.
SUPPLEMENTARY AUDIT BY CAG
Supplementary audit of your Company was undertaken by CORPORATE SOCIAL RESPONSIBILITY (CSR)
the Indian Audit and Accounts Department (IAAD), Office According to the audited financial position, the net worth,
of the Principal Director of Commercial Audit, from July 10, turnover and paid-up share capital of your Company has,
2023, to July 28, 2023. The information sought by IAAD, in FY 2022-23, crossed the threshold that requires the
along with audited financial statements for FY 2022-23, constitution of a Corporate Social Responsibility (CSR)
was duly furnished to their office. Committee as laid down under Section 135(1) of the
Companies Act, 2013 during FY 2022-23.
Based on the audit, the Office of the Principal Director
of Commercial Audit, vide letter dated August 25, 2023, Your Company has contributed `6,73,50,000/- towards
has issued an Audit Certificate with NIL observations. A the Prime Minister’s National Relief Fund (PMNRF) during
copy of the letter is enclosed with the Audited Financial FY 2022-23.
Statements.
The details of the CSR Policy are available on the website
at www.mudra.org.in
INTERNAL / CONCURRENT AUDITORS
In terms of requirements under Section 138 of the Annual Report on CSR as required under the Companies
Companies Act, 2013, M/s Chhajed & Doshi, Chartered Act, 2013 is given in Annexure III.
Accountants was appointed as internal auditors of your
Company for FY 2022-23. VIGIL MECHANISM
In view of compliance with Section 177(9) & (10) of the
Besides w.e.f. January 01, 2023, M/s R.B. Jain Chartered Companies Act, 2013, read with Rule 7 of Companies
Accountants has been appointed as Concurrent Auditors (Meetings of Board and its Powers) Rules 2014,
of your company. Earlier the concurrent Audit was your Company follows SIDBI’s and Central Vigilance
conducted by Internal Auditor M/s Chhajed & Doshi. Commission’s guidelines under the overall supervision of
the Central Vigilance Officer (CVO) of SIDBI.
They submitted monthly audit reports, which have been
duly taken into account, and corrective actions have been The Vigilance Officer in-charge submits monthly report to
carried out and reported to the Audit Committee. the CVO, SIDBI.

21
RBI GUIDELINES ACKNOWLEDGEMENTS
As a Systemically Important, Non-Deposit taking, Non- The Board takes this opportunity to express its sincere
Banking Finance Institution (NDSI), your Company always appreciation for the excellent patronage received from all
aims to operate in compliance with applicable RBI laws and its stakeholders, especially the Department of Financial
regulations and employs its best efforts towards achieving Services, Ministry of Finance, Government of India; the
the same. Reserve Bank of India; the Ministry of Corporate Affairs;
and, Small Industries Development Bank of India, and
RIGHT TO INFORMATION ACT, 2005 thank them for their continued support.
During the year under review, your Company has received
41 Right to Information (RTI) applications through DFS, The Board also expresses its gratitude for the continued
RBI, SIDBI and directly under the RTI Act, 2005, inquiring confidence and faith reposed in it by the shareholders.
about PMMY and the MUDRA schemes. All applications The Board also acknowledges the zeal, commitment
were disposed off by your Company within the prescribed and dedication of the executives and employees of the
timeframe. Company at all levels.

Your Board is also thankful to the Auditors of the Company

and CAG India for their advice and guidance.

Transparency/ Disclosures For and on behalf of the Board of

Micro Units Development & Refinance Agency Ltd
41 RTI applications recieved.
Sivasubramanian Ramann
All such applications were disposed off
Chairman
within the stipulated time.
DIN: 07685657

Date: September 27, 2023

Place: Mumbai
CONSERVATION OF ENERGY; FOREIGN
EXCHANGE EARNINGS AND OUTGO
The particulars required under Section 134(3) (m) of
the Companies Act, 2013, in respect of conservation of
energy do not apply to your Company and hence are not
included in this report, considering the nature of activities
undertaken during the year under review.

Your company only consumes electricity during operational

and administrative activities.

There had been no earnings and outgo of foreign

exchange, during the year.

TECHNOLOGY ABSORPTION
MUDRA is working in a computerised environment. It has
acquired software for general ledger accounts and loan
management for meeting its comprehensive needs and
major components of both have already been implemented.
A Portal is in place for collecting and collating data from
all banks/MFIs/ NBFCs pertaining to loans being given by
them under PMMY. The portal is quite robust and captures
a variety of data and generates various kind of reports.

The portal is being used by the GoI for strategizing, follow-

up, and monitoring of PMMY performance.

22
Annexures to the Directors’ Report
Annexure I

Board of Directors as on March 31, 2023

S. No. Name (Smt./Shri/Ms.) Date of appointment

Government and SIDBI Nominee

1 Sivasubramanian Ramann, IA&AS Chairman and SIDBI Nominee Director April 28, 2021
2 Mukesh Kumar Bansal, IAS DFS, GoI, GoI Nominee Director November 21, 2022,
3 # Vasantha Rao Satya Venkat Rao DMD, SIDBI, SIDBI Nominee Director June 26, 2020
4 Sudatta Mandal DMD, SIDBI, SIDBI Nominee Director May 28, 2021
5 Vinay Hedaoo MD & CEO, MUDRA August 02, 2021
Independent Directors
6 #Arvind Kumar Jain February 08, 2018
7 #Smita Affinwalla June 04, 2020
8 Sadhu Venkataramana Sastry February 15, 2023
9 # Mala Sinha June 05, 2023
# Shri Vasantha Rao Satya Venkat Rao ceased to be Nominee Director w.e.f. June 02, 2023. Shri Arvind Kumar Jain ceased to be Independent Director
w.e.f. February 07, 2023, Smt Smita Affinwalla ceased to be Independent Director w.e.f. June 04, 2023, and Smt Mala Sinha was appointed as Independent
Director w.e.f. June 05, 2023.

Cessation during the year 2022-23

Sr. No Name (Smt./Shri/Ms.) Designation Date of appointment Date of cessation

Joint Secretary, DFS, GoI,

1. Shri Bhushan Kumar Sinha February 28, 2022 November 18, 2022
GoI Nominee
2. Shri Arvind Kumar Jain Independent Director February 08, 2018 February 07,2023

Appointment and Cessation after FY 2022-23

S. No Name (Smt./Shri/Ms.) Designation Date of appointment Date of cessation

Vasantha Rao Satya Venkat DMD, SIDBI, SIDBI

1. June 26, 2020 June 02, 2023
Rao Nominee Director
2. Mala Sinha Independent Director June 05, 2023 --
3. Smita Affinwalla Independent Director June 04, 2020 June 04, 2023

Board Meetings held during the year

S. No. Date of meeting Board strength No. of Director present

1 May 12, 2022 7 6

2 June 25, 2022 7 7
3 September 21, 2022 7 7
4 November 21, 2022 7 7
5 February 22, 2023 7 7

23
Audit Committee Meeting held during the year
S No. Date of meeting Board strength No. of Directors present

1 May 12, 2022 3 3

2 June 22, 2022 3 3
3 September 21, 2022 3 3
4 November 21, 2022 3 3
5 February 21, 2023 3 3

Nomination and Remuneration Committee Meetings held during the year

S No. Date of meeting Board strength No. of Directors present

1 May 11, 2022 3 3

2 September 15, 2022 3 3
3 November 21, 2022 3 3
4 February 15, 2023 2 2

Risk Management Committee Meetings held during the year

S No. Date of meeting Board strength No. of Directors present

1 May 12, 2022 4 3

2 June 22, 2022 4 3
3 September 15, 2022 4 4
4 November 17, 2022 4 4
5 February 21, 2023 4 4

Corporate Social Responsibility Committee Meetings held during the year

S No. Date of meeting Board strength No. of Directors present

1 February 21, 2023 3 3

IT Strategy Committee Meetings held during the year

S No. Date of meeting Board strength No. of Directors present

1 May 05, 2022 4 4

2 September 15, 2022 4 3
3 February 03, 2023 4 3

Executive Committee Meetings held during the year

S No. Date of meeting Board strength No. of Directors present

1 October 03, 2022 4 4

2 January 17, 2023 4 4
3 February 27, 2023 4 4
4 March 13, 2023 4 3

24
Constitution of Committees of MUDRA under Companies Act, 2013
Audit Committee
Name Position

Shri Arvind Kumar Jain# Chairman

Shri Sadhu Venkataramana Sastry# Chairman
Smt Mala Sinha* Chairperson
Shri Sudatta Mandal Member
Smt Smita Affinwalla## Member
Shri Sadhu Venkataramana Sastry* Member
# Shri Arvind Kumar Jain ceased to be Independent Director and Chairman of ACB w.e.f. February 07,2023 and Shri Sadhu Venkataramana Sastry was
designated as Chairman of ACB w.e.f. February 16, 2023.
##Smt Smita Affinwalla ceased to be Independent Director and member of ACB w.e.f. June 04,2023.
*Smt Mala Sinha was designated as Chairperson of ACB and Shri Sadhu Venkataramana Sastry was designated as Member of ACB w.e.f. June 24, 2023.

Nomination & Remuneration Committee

Name Position

Shri Vasantha Rao Satya Venkat Rao * Chairman

Shri Sudatta Mandal* Chairman
Shri Arvind Kumar Jain** Member
Shri Sadhu Venkataramana Sastry** Member
Smt Smita Affinwalla# Member
Smt Mala Sinha# Member
*Shri Vasantha Rao Satya Venkat Rao ceased to be Nominee Director and Chairman of NRC w.e.f. June 02,2023 and Shri Sudatta Mandal was designated as
a Chairman of NRC w.e.f. June 24,2023.
**Shri Arvind Kumar Jain ceased to be Independent Director and Member of NRC w.e.f. February 07,2023 and Shri Sadhu Venkataramana Sastry was
designated as Member of NRC w.e.f. February 16, 2023.
#Smt Smita Affinwalla ceased to be Independent Director and Member of NRC w.e.f. June 04,2023 and Smt Mala Sinha was designated as Member of NRC
w.e.f. June 24, 2023.

Corporate Social Responsibility Committee

Name Position

Shri Vinay Hedaoo Chairman

Shri Vasantha Rao Satya Venkat Rao # Member
Shri Sudatta Mandal# Member
Smt Smita Affinwalla* Member
Smt Mala Sinha* Member
#Shri Vasantha Rao Satya Venkat Rao ceased to be Nominee Director and Member of CSRC w.e.f. June 02,2023 and Shri Sudatta Mandal was designated
as a Member of CSRC w.e.f. June 24,2023.
*Smt Smita Affinwalla ceased to be Independent Director and Member of CSRC w.e.f. June 04,2023 and Smt Mala Sinha was designated as Member of NRC
w.e.f. June 24,2023.

Risk Management Committee

Name Position

Shri Sudatta Mandal Chairman

Shri Vasantha Rao Satya Venkat Rao # Member
Shri Arvind Kumar Jain# Member
Shri Sadhu Venkataramana Sastry# Member
Shri Vinay Hedaoo Member
#Shri Vasantha Rao Satya Venkat Rao ceased to be Nominee Director and Member of RiMC w.e.f. June 02,2023. Shri Arvind Kumar Jain ceased to be
Independent Director and Member of RiMC w.e.f. February 07,2023 and Shri Sadhu Venkataramana Sastry was designated as Member of RiMC w.e.f.
February 16, 2023.

25
 Annexure-II

Form No. MR-3

SECRETARIAL AUDIT REPORT
For the financial year ended March 31, 2023
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To (iv) Foreign Exchange Management Act, 1999 and

The Members the rules and regulations made thereunder to the
Micro Units Development & Refinance Agency Ltd extent of Foreign Direct Investment, Overseas Direct
[MUDRA Ltd.] Investment and External Commercial Borrowings;
Swavalamban Bhavan, Plot No. C-11, G Block, (Not Applicable to the Company)
Bandra Kurla Complex, Bandra (East),
Mumbai: 400 051, Maharashtra, India. The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India
I have conducted the secretarial audit of the compliance Act, 1992 (‘SEBI Act’): —
of applicable statutory provisions and the adherence to
good corporate practices by Micro Units Development (a) The Securities and Exchange Board of India
& Refinance Agency Limited (hereinafter called ‘the (Substantial Acquisition of Shares and
Company’). Secretarial Audit was conducted in a manner Takeovers) Regulations, 2011; (Not Applicable
that provided us a reasonable basis for evaluating to the Company)
the corporate conducts/ statutory compliances and
expressing our opinion thereon. (b) The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
Based on our verification of the Company’s books, 1992; (Not Applicable to the Company)
papers, minute books, forms and returns filed and other
records maintained by the Company in soft copy version, (c) The Securities and Exchange Board of India
duly authenticated, and also the information provided (Issue of Capital and Disclosure Requirements)
by the Company, its officers, agents and authorized Regulations, 2009 (Not Applicable to the
representatives during the conduct of secretarial audit, Company);
we hereby report that in our opinion, the Company has,
during the audit period covering the financial year ended (d) The Securities and Exchange Board of India
on 31st March 2023 (‘Audit Period’) complied with the (Employee Stock Option Scheme and Employee
statutory provisions listed hereunder, subject to specified Stock Purchase Scheme) Guidelines, 1999 (Not
observation mentioned below, however, the Company Applicable to the Company);
has proper adequate Board-process and compliance-
mechanism in place to the extent, in the manner and (e) The Securities and Exchange Board of
subject to the reporting made hereinafter: India (Issue and Listing of Debt Securities)
Regulations, 2008 (Not Applicable to the
I have examined the books, papers, minute books, forms Company);
and returns filed, and other records maintained by the
Company for the financial year ended on 31st March 2023 (f) The Securities and Exchange Board of India
according to the provisions of: (Registrars to an Issue and Share Transfer
Agents) Regulations, 1993 regarding the
(i) The Companies Act, 2013 (the Act) and the rules Companies Act and dealing with client; (Not
made the thereunder; Applicable to the Company)

(ii) The Securities Contracts (Regulation) Act, 1956 (g) The Securities and Exchange Board of India
(‘SCRA’) and the rules made thereunder; (Not (Delisting of Equity Shares) Regulations, 2009;
Applicable to the Company) (Not Applicable to the Company); and

(iii) The Depositories Act, 1996 and the Regulations and (h) The Securities and Exchange Board of India
Bye-laws framed thereunder; (Not Applicable to the (Buyback of Securities) Regulations, 1998; (Not
Company) Applicable to the Company).

26
(v) Other laws applicable specifically to the Company, and a system exists for seeking and obtaining further
namely: information and clarifications on the agenda items
before the meeting and for meaningful participation
(a) Systemically Important Non-Banking Financial at the meeting.
(Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, - All the resolutions were passed with consent of
2015 read with Master Circular as issued by majority Directors and minutes were prepared
Reserve Bank of India with respect to Returns to accordingly.
be submitted by NBFCs, as may be applicable.
I further report that:
I have also examined compliance with the applicable
clauses of the following: - there are adequate systems and processes in
the Company commensurate with the size and
(a) Secretarial Standards issued by The Institute of operations of the company to monitor and ensure
Company Secretaries of India compliance with applicable laws, rules, regulations
and guidelines.
(b) The Listing Agreements entered into by the
Company with the Stock Exchanges. (Not I further report that during the audit period there were
Applicable to the Company) no specific events/actions having a major bearing on the
Company’s affairs in pursuance of the above referred laws,
I further report that: rules, guidelines and standards.

- The Board of Directors of the Company is duly

constituted with proper balance of Executive For: M/s Deep Shukla & Associates
Directors, Non-Executive Directors, and Independent Company Secretaries
Directors. The changes in the composition of the
Board of Directors that took place during the period Sd/-
under review were carried out in compliance with the Deep Shukla
provisions of the Act. Proprietor

- Adequate notice is given to all Directors to schedule M. No.: 5652
the Board Meetings, agenda and detailed notes on Place: Mumbai CP. No.: 5364
agenda were sent at least seven days in advance, Date: 31/08/2023 UDIN: F005652E000900920

27
 ANNEXURE TO THE SECRETARIAL AUDIT REPORT

To 5. The compliance of the provisions of corporate and

The Members other applicable laws, rules, regulations, standard is
Micro Units Development & Refinance Agency Ltd the responsibility of management. My examination is
[MUDRA Ltd.] limited to the verification of procedures on test basis.

I further state that my said report of the even date has to 6. The Secretarial Audit report is neither an assurance
be read along with this letter. as to the future viability of the Company nor of the
efficacy or effectiveness with which the management
1. Maintenance of Secretarial/ Statutory Records is the has conducted the affairs of the Company.
responsibility of the Management of the Company.
My responsibility is to express an opinion on these
records based on the audit.

2. I have followed the audit practices and processes

as were appropriate to obtain reasonable assurance
about the correctness of the contents of the For: M/s Deep Shukla & Associates
Secretarial Records. Company Secretaries

3. I have not verified the correctness and appropriateness

of financial records and Books of Accounts of the Sd/-
Company. Deep Shukla
Proprietor
4. Wherever required I have obtained the Management M. No.: 5652
representation about the compliance of laws, rules Place: Mumbai CP. No.: 5364
and regulations and happenings of events etc. Date: 31/08/2023 UDIN: F005652E000900920

28
 Annexure-III

Annual Report on CSR Activities

1. Brief outline of the CSR Policy of the Company.

To realise MUDRA’S vision, MUDRA recognizes the importance of contributing to sustainable social transformation
through funding and development interventions. As a responsible corporate entity, MUDRA also believes in
contributing to the causes of society by extending support to under privileged sections of the society through
funding and promotional assistance. MUDRA’s Corporate Social Responsibility (CSR) policy thus consists of both
business and developmental initiatives, aimed at sustainable growth with social orientation. The efforts would be to
cover frontiers which are beyond the basic regulatory and stakeholder requirements. The CSR Policy of MUDRA has
been framed in accordance with Section 135 of Companies Act, 2013 and the Rules framed there under to achieve
this objective.

2. Composition of CSR Committee:

Sl. Name of Director Designation / Nature of Number of Number of meetings
No. Directorship meetings of CSR of CSR Committee
Committee held attended during the
during the year year

1 Shri Vinay Hedaoo Chairman, MD & CEO 1 1

Shri Vasantha Rao* Satya Member, SIDBI Nominee
2 1 1
Venkat Rao* Director
Member, SIDBI Nominee
3 Shri Sudatta Mandal 1 NA
Director
Member, Independent
4 Smt Smita Affinwalla* 1 1
Director
Member, Independent
5 Smt Mala Sinha 1 NA
Director
*Shri Vasantha Rao Satya Venkat Rao ceased to be Nominee Director and Member of CSRC w.e.f. June 02,2023 and Shri Sudatta Mandal was
designated as a Member of CSRC w.e.f. June 24, 2023. Smt Smita Affinwalla ceased to be Independent Director and Member of CSRC w.e.f. June
04,2023 and Smt Mala Sinha was designated as Member of CSRC w.e.f. June 24,2023.

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects
approved by the board are disclosed on the website of the company:
The CSR Policy and other details are available on MUDRA’s website at www.mudra.org.in

4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects
carried out in pursuance of sub-rule (3) of rule 8, if applicable:
Not Applicable

5. (a) Average net profit of the company as per section 135(5): `3,36,71,13,036

(b) Two percent of average net profit of the company as per section 135(5): ` 6,73,42,261

(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: 0 (Zero)

(d) Amount required to be set off for the financial year, if any: 0 (Zero)

(e) Total CSR obligation for the financial year [(b+c-d)]: ` 6,73,42,261

29
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): `6,73,50,000

(b) Amount spent in Administrative Overheads: 0 (Zero)

(c) Amount spent on Impact Assessment, if applicable: 0 (Zero)

(d) Total amount spent for Financial Year [(a)+(b) +(c)]: ` 6,73,50,000

(e) CSR amount spent or unspent for the Financial Year:

Total Amount Amount Unspent (in `)

Spent for Total Amount transferred to Amount transferred to any fund specified under
the Financial Unspent CSR Account as per Schedule VII as per second proviso to section 135(5).
Year. (In `) section 135(6).
Amount. Date of transfer Name of the Fund Amount. Date of transfer

6,73,50,000 -- - -- -- --

Your Company has made a contribution of `6,73,50,000 towards the Prime Minister’s National Relief Fund (PMNRF).

(f) Excess amount for set off, if any: NIL

Sl. No. Particular Amount (in `)

(i) Two percent of average net profit of the company as per section 135(5) --
(ii) Total amount spent for the Financial Year --
(iii) Excess amount spent for the financial year [(ii)-(i)] --
Surplus arising out of the CSR projects or programmes or activities of the
(iv) --
previous financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] --

7 (a) Details of Unspent Corporate Social Responsibility amount for the preceding three financial years: Not
Applicable

Sl. Preceding Amount Balance Amount Amount transferred Amount Deficiency,

No. Financial transferred Amount in spent to a fund as remaining if any
Year(s) to Unspent Unspent in the specified under to be
CSR CSR Financial Schedule VII as per spent in
Account Account Year second proviso to succeeding
under sub under sub (in `) sub section (5) of financial
section 135 section 135, if any. Years (In `)
(6) (in `) 135 (6) Name of Date of
(in `) the Fund transfer
Amount
(in `)

Not Applicable

30
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount
spent in the Financial Year: NIL

If Yes, enter the number of Capital assets created/ acquired:

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount
spent in the Financial Year:

Sl. Short particulars of Pin code of Date of Amount Details of entity/ Authority/
No. the property or the creation of CSR beneficiary of the registered owner
asset(s) [including property amount CSR Name Registered
complete address or asset(s) spent Registration Registered address
and location of the Number, if
property] applicable

Not Applicable

9. Specify the reason(s) if the company has failed to spend two per cent of the average net profit as per section
135(5).

The Company has spent the required amount on CSR activities as per section 135(5) and hence reporting under this
clause does not arise.

Vinay Hedaoo
Date: September 27, 2023 Managing Director & Chairman of CSR Committee
Place: Mumbai DIN: 07916221

31
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF Micro Units Development and Refinance Agency Limited

Report on the Audit of the Financial Statements Opinion Basis for Opinion
We conducted our audit of the financial statements
We have audited the accompanying financial statements in accordance with the Standards on Auditing (“SA”s)
of Micro Units Development and Refinance Agency specified under section 143(10) of the Act. Our
Limited (the “Company”), which comprise the Balance responsibilities under those Standards are further
Sheet as at March 31, 2023, the Statement of Profit described in the Auditor’s Responsibilities for the Audit
and Loss (including Other Comprehensive Income), the of the Financial Statements section of our report. We are
Statement of Changes in Equity and the Statement of independent of the Company in accordance with the Code
Cash Flows for the year ended on that date and a summary of Ethics issued by the Institute of Chartered Accountants
of significant accounting policies and other explanatory of India (“ICAI”) together with the ethical requirements that
information (hereinafter referred to as the “financial are relevant to our audit of the financial statements under
statements”). the provisions of the Act and the Rules made thereunder,
and we have fulfilled our other ethical responsibilities in
In our opinion and to the best of our information and accordance with these requirements and the ICAI’s Code
according to the explanations given to us, the aforesaid of Ethics. We believe that the audit evidence obtained by
financial statements give the information required by us is sufficient and appropriate to provide a basis for our
the Companies Act, 2013 (the “Act”) in the manner so audit opinion on the financial statements.
required and give a true and fair view in conformity with
the Indian Accounting Standards prescribed under Key Audit Matter
section 133 of the Act read with the Companies (Indian Key audit matter are those matters that, in our professional
Accounting Standards) Rules, 2015, as amended, (“Ind judgement, were of most significance in our audit of the
AS”) and other accounting principles generally accepted standalone financial statements of the current period.
in India, of the state of affairs of the Company as at March These matters were addressed in the context of our audit
31, 2023 and its profit, total comprehensive income, of the standalone financial statements as a whole, and
changes in equity and its cash flows for the year ended on in forming our opinion thereon, and we do not provide a
that date. separate opinion on these matters. We have determined
the matters described below to be the key audit matters to
be communicated in our report.

Sr No Key Audit Matter Auditor’s Response

1. Recognition and measurement of impairment In view of the significance of the matter, the following
on loans and advances involve significant audit procedures were applied in this area, among others
management judgement. With the applicability of to obtain sufficient appropriate audit evidence: Design /
IND AS 109, credit loss assessment is now based controls
on expected credit loss (ECL) model.
The impairment allowance is derived from estimates • Evaluated the appropriateness of the impairment
including the historical default and loss ratios. principles based on the requirements of IND AS 109
Management exercises judgement in determining • Assessed the design and implementation of key internal
financial controls over loan impairment process used to
the quantum of loss based on a range of factors.
calculate the impairment charge.
The most significant areas are:
• Tested management review controls over measurement
• Segmentation of loan book;
of impairment allowances and disclosures in financial
• Loan staging criteria;
statements. Substantives tests
• Calculation of probability of default / Loss
• Focus was placed on appropriate application of accounting
given default;
principles, validating completeness and accuracy of the
• Consideration of probability weighted scenarios
data and reasonableness of assumptions used in the model.
and forward looking macro- economic factors.
• Compliance of disclosures with the applicable • Test of details over calculation of impairment allowance
for assessing the completeness, accuracy and relevance
accounting standards
of data

32
Information Other than the Financial Statements The Board of Directors is also responsible for overseeing
and Auditor’s Report Thereon the Company’s financial reporting process.
The Company’s Board of Directors is responsible for
the other information. The other information comprises Auditor’s Responsibilities for the Audit of the
the information included in the Board’s Report including Financial Statements
Annexures to Board’s Report but does not include the Our objectives are to obtain reasonable assurance about
financial statements and our auditor’s report thereon. whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
Our opinion on the financial statements does not cover and to issue an auditor’s report that includes our opinion.
the other information and we do not express any form of Reasonable assurance is a high level of assurance, but is
assurance conclusion thereon. not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when
In connection with our audit of the financial statements, it exists. Misstatements can arise from fraud or error and
our responsibility is to read the other information and, are considered material if, individually or in the aggregate,
in doing so, consider whether the other information is they could reasonably be expected to influence the
materially inconsistent with the financial statements or economic decisions of users taken on the basis of these
our knowledge obtained during the course of our audit financial statements.
or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is As part of an audit in accordance with SAs, we exercise
a material misstatement of this other information, we are professional judgment and maintain professional
required to report that fact. We have nothing to report in skepticism throughout the audit. We also:
this regard.
• Identify and assess the risks of material misstatement
Responsibilities of Management and Those of the financial statements, whether due to fraud
Charged with Governance for the Financial or error, design and perform audit procedures
Statements responsive to those risks, and obtain audit evidence
The Company’s Board of Directors is responsible for the that is sufficient and appropriate to provide a basis
matters stated in section 134(5) of the Act with respect for our opinion. The risk of not detecting a material
to the preparation of these financial statements that give misstatement resulting from fraud is higher than for
a true and fair view of the financial position, financial one resulting from error, as fraud may involve collusion,
performance, including other comprehensive income, forgery, intentional omissions, misrepresentations,
changes in equity and cash flows of the Company or the override of internal control.
in accordance with the Ind AS and other accounting
principles generally accepted in India. This responsibility • Obtain an understanding of internal control relevant
also includes maintenance of adequate accounting to the audit in order to design audit procedures that
records in accordance with the provisions of the Act for are appropriate in the circumstances. Under section
safeguarding the assets of the Company and for preventing 143(3)(i) of the Act, we are also responsible for
and detecting frauds and other irregularities; selection expressing our opinion on whether the Company has
and application of appropriate accounting policies; adequate internal financial controls system in place
making judgments and estimates that are reasonable and and the operating effectiveness of such controls.
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating • Evaluate the appropriateness of accounting policies
effectively for ensuring the accuracy and completeness used and the reasonableness of accounting estimates
of the accounting records, relevant to the preparation and and related disclosures made by the management.
presentation of the financial statements that give a true
and fair view and are free from material misstatement, • Conclude on the appropriateness of management’s
whether due to fraud or error. use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
In preparing the financial statements, management a material uncertainty exists related to events or
is responsible for assessing the Company’s ability to conditions that may cast significant doubt on the
continue as a going concern, disclosing, as applicable, Company’s ability to continue as a going concern. If
matters related to going concern and using the going we conclude that a material uncertainty exists, we
concern basis of accounting unless management either are required to draw attention in our auditor’s report
intends to liquidate the Company or to cease operations, to the related disclosures in the financial statements
or has no realistic alternative but to do so. or, if such disclosures are inadequate, to modify our

33
 opinion. Our conclusions are based on the audit d) In our opinion, the aforesaid financial statements
evidence obtained up to the date of our auditor’s comply with the Ind AS specified under Section
report. However, future events or conditions may 133 of the Act read with the Companies
cause the Company to cease to continue as a going (Indian Accounting Standards) Rules, 2015, as
concern. amended.

• Evaluate the overall presentation, structure and e) On the basis of the written representations
content of the financial statements, including the received from the directors as on March 31,
disclosures, and whether the financial statements 2023 taken on record by the Board of Directors,
represent the underlying transactions and events in none of the directors are disqualified as on
a manner that achieves fair presentation. March 31, 2023 from being appointed as a
director in terms of Section 164(2) of the Act.
We communicate with those charged with
governance regarding, among other matters, the f) With respect to the adequacy of the internal
planned scope and timing of the audit and significant controls over financial reporting of the Company
audit findings, including any significant deficiencies and the operating effectiveness of such controls,
in internal control that we identify during our audit. refer to our separate Report in “Annexure B”.
Our report expresses an unmodified opinion on
We also provide those charged with governance with the adequacy and operating effectiveness of
a statement that we have complied with relevant the Company’s internal financial controls over
ethical requirements regarding independence, and financial reporting.
to communicate with them all relationships and other
matters that may reasonably be thought to bear on g) In our opinion and according to the information
our independence, and where applicable, related and explanation given to us, the managerial
safeguards. remuneration paid by the company during the
year, is in compliance with respect to section
Report on Other Legal and Regulatory 197 of the Act.
Requirements
1. As required by the Companies (Auditor’s Report) h) With respect to the other matters to be included
Order, 2020 (“the Order”) issued by the Central in the Auditor’s Report in accordance with Rule
Government of India in terms of section 143(11) of 11 of the Companies (Audit and Auditors) Rules,
the Act, we give in “Annexure A”, a statement on the 2014, as amended, in our opinion and to the
matters specified in paragraphs 3 and 4 of the Order, best of our information and according to the
to the extent applicable. explanations given to us:

2. As required by Section 143(3) of the Act, based on i. The Company does not have any pending
our audit we report that: litigation which would impact its financial
position.
a) We have sought and obtained all the information
and explanations which to the best of our ii. The Company did not have any long-term
knowledge and belief were necessary for the contracts including derivative contracts for
purposes of our audit. which there were any material foreseeable
losses.
b) In our opinion, proper books of account as
required by law have been kept by the Company iii. There were no amounts which were
so far as it appears from our examination of required to be transferred to the Investor
those books. Education and Protection Fund by the
Company.
c) The Balance Sheet, the Statement of Profit
and Loss including Other Comprehensive iv. (a) The Management has represented
Income, Statement of Changes in Equity and that, to the best of its knowledge and
the Statement of Cash Flows dealt with by belief, no funds (which are material
this Report are in agreement with the books of either individually or in the aggregate)
account. have been advanced or loaned or
invested (either from borrowed funds

34
 or share premium or any other sources 3. As required by the revised directions under Section
or kind of funds) by the Company to or 143(5) and of the Act, we report that:
in any other person or entity, including
foreign entity (“Intermediaries”), with i) The Company has system in place to process all
the understanding, whether recorded the accounting transaction through IT System.
in writing or otherwise, that the There are no accounting transactions processed
Intermediary shall, whether, directly outside IT system during the year.
or indirectly lend or invest in other
persons or entities identified in any ii) There are no cases of restructuring of any
manner whatsoever by or on behalf of existing loans taken or cases of waiver/ write off
the Company (“Ultimate Beneficiaries”) of debts/Loans/interest etc. made by lender to
or provide any guarantee, security the Company during the year due to Company’s
or the like on behalf of the Ultimate inability to repay the loans taken. For the cases
Beneficiaries; where the loan given is not repaid the Company
has made necessary provision as per the
(b) The Management has represented, regulation and applicable accounting standard.
that, to the best of its knowledge
and belief, no funds (which are iii) The entity has not received any funds (grants/
material either individually or in the subsidy etc.) for specific schemes from Central
aggregate) have been received by the / State Government or its agencies during the
Company from any person or entity, year.
including foreign entity (“Funding
Parties”), with the understanding, iv) RBI provided a window (vide circular dated 6
whether recorded in writing or August 2020) under the prudential framework
otherwise, that the Company shall, to implement a resolution plan to borrowers
whether, directly or indirectly, lend having stress on account of Covid 19, as per
or invest in other persons or entities which existing loans can be restructured without
identified in any manner whatsoever downgrading the asset classification. As per the
by or on behalf of the Funding Party information received from the management,
(“Ultimate Beneficiaries”) or provide there were no loans which were restructured
any guarantee, security or the like on during the year in the window provided during
behalf of the Ultimate Beneficiaries; COVID 19 by RBI in terms of above mentioned
circular.
(c) Based on the audit procedures that
have been considered reasonable
and appropriate in the circumstances, For V. C. Shah & Co.
nothing has come to our notice that Chartered Accountants
has caused us to believe that the ICAI Firm Registration No.109818W
representations under sub-clause
(i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any Sd/-
material misstatement. Viral J. Shah
Partner
v. The Company has declared and paid Membership No.: 110120 Place: Mumbai
dividend during the year in compliance Date: June 01, 2023
with section 123 of the Act. UDIN: 23110120BGXNJH4230

35
ANNEXURE ‘A’ TO THE INDEPENDENT
AUDITOR’S REPORT
(Referred to in paragraph 1 under ‘Report on Other Legal (b) The Company has not been sanctioned working
and Regulatory Requirements’ section of our report of capital limits in excess of ` 5 crore, in aggregate,
even date to the Members of Micro Units Development at any points of time during the year, from banks
and Refinance Agency Limited on the Ind AS financial or financial institutions on the basis of security
statements for the year ended March 31, 2023) of current assets and hence reporting under
Based on the audit procedures performed for the purpose clause (ii)(b) of the paragraph 3 of the Order is
of reporting a true and fair view on the Ind AS financial not applicable.
statements of the Company and to the best of our iii. The Company has not made any investments in
information and according to the explanations provided to companies, firms, Limited Liability Partnerships, and
us by the Company and the books of account and records granted unsecured loans to other parties, during
examined by us in the normal course of audit, we state the year, hence reporting under clause (iii)(b) of the
that: paragraph 3 of the Order is not applicable.
i. (a) (A) The Company is maintaining proper Further, the Company has not provided any guarantee
records showing full particulars including or security or granted any advances in the nature of
quantitative details and situation of loans, secured or unsecured, to companies, firms,
Property, plant and equipment. Limited Liability Partnerships or any other parties but
(B) The company is maintaining proper records has provided loans
showing full particulars of intangible assets. (a) Since the company is registered NBFC whose
(b) The Property, plant and equipment were principal business is to give loans, the clause (iii)
physically verified during the year by the (a) and (e ) of the paragraph 3 is not applicable
management in accordance with a regular to the company.
programme of verification which, in our opinion, (b) In our opinion, the investments made during
provides for physical verification of all the the year are, prima facie, not prejudicial to the
property, plant and equipment at reasonable Company’s interest. As represented by the
intervals. According to the information Management, the Company has not granted
and explanation given to us, no material any loans and advances in the nature of loans
discrepancies were noticed during such or provided any guarantee during the year to
verification. anyone.
(c) There is no immovable property in the name of (c) In respect of loan granted, the schedule of
the company, hence reporting under clause (i)(c) repayment of principal and payment of interest
of the paragraph 3 is not applicable. has been stipulated. As per the information
(d) The company has not revalued it’s property, given to us and based on the verification carried
plant and equipment (including right of use out, we opine that the repayment of principal
assets) and intangible assets during the year. and interest is generally regular.
Hence, reporting under clause (i)(d) of the (d) In respect of the Loans, the total amount
paragraph 3 is not applicable. overdue for more than 90 days as at March 31,
(e) As represented by the Management, no 2023. The clause (iii)(d) of the paragraph 3 is not
proceedings have been initiated during the year applicable to the company.
or are pending against the Company as at March (e) The company has not granted any loans or
31, 2023 for holding any benami property under advances in the nature of loans either repayable
the Benami Transactions (Prohibition) Act, on demand or without specifying any terms or
1988 (as amended in 2016) and rules made period of repayment. Hence, reporting under
thereunder. clause (iii)(f) of the paragraph 3 is not applicable.
ii. (a) The Company does not have any inventory iv. The Company has not given any loan to directors
and hence reporting under clause (ii)(a) of the and the provisions of Sections 185 and 186 of the
paragraph 3 of the Order is not applicable. Companies Act, 2013 in respect of loans granted,

36
 investments made and guarantees and securities (b) The Company has not been declared wilful
provided, are not applicable. Hence, reporting under defaulter by any bank or financial institution or
clause (iv) of the paragraph 3 of the Order is not government or any government authority.
applicable. (c) The Company has not taken any term loan during
v. The Company has not accepted any deposit or the year and there are no outstanding term
amounts which are deemed to be deposits, as per loans at the beginning of the year and hence,
the directives issued by Reserve Bank of India and reporting under clause (ix)(c) of the paragraph 3
the provisions of the section 73 to 76 or any other of the Order is not applicable.
relevant provisions of the Companies Act, 2013 and (d) On an overall examination of the financial
the rules made thereunder. Hence, reporting under statements of the Company, there are no funds
clause (v) of the paragraph 3 of the Order is not raised on short- term basis which have been
applicable. utilized for long term purpose. Hence, reporting
vi. The maintenance of cost records has not been under clause (ix)(d) of the paragraph 3 of the
specified by the Central Government under sub- Order is not applicable.
section (1) of section 148 of the Companies Act, (e) The Company does not have any subsidiary,
2013 for the business activities carried out by the joint venture or associate. Hence, reporting on
Company. Hence, reporting under clause (vi) of the clause (ix)(e) and (f) of the paragraph 3 of the
paragraph 3 of the Order is not applicable to the Order is not applicable.
Company.
x. (a) The Company has not raised moneys by way of
vii. In respect of statutory dues: initial public offer or further public offer (including
(a) In our opinion, the Company has generally been debt instruments) during the year and hence,
regular in depositing undisputed statutory dues, reporting under clause (x)(a) of the paragraph 3 of
including Goods and Services tax, Provident the Order is not applicable.
Fund, Employees’ State Insurance, Income Tax, (b) During the year, the Company has not made any
Sales Tax, Service Tax, duty of Custom, duty preferential allotment or private placement of
of Excise, Value Added Tax, Cess and other shares or convertible debentures (fully or partly
material statutory dues applicable to it with the or optionally) and hence, reporting under clause
appropriate authorities. (x)(b) of the paragraph 3 of the Order is not
There were no undisputed amounts payable applicable.
in respect of Goods and Service tax, Provident xi. (a) As represented by the Management, there was
Fund, Employees’ State Insurance, Income Tax, fraud reported on the Company during the year
Sales Tax, Service Tax, duty of Custom, duty which has been shown under Note 69 in the
of Excise, Value Added Tax, Cess and other financial statement.
material statutory dues in arrears as at March
31, 2022 for a period of more than six months (b) No report under sub-section (12) of section 143
from the date they became payable. of the Companies Act has been filed in Form
ADT-4 as prescribed under rule 13 of Companies
(b) According to the information and explanations (Audit and Auditors) Rules, 2014 with the Central
given to us, there are no dues of income tax, Government, during the year and upto the date of
sales tax, service tax, goods and services tax, this report.
customs or excise duty or value added tax which
have not been deposited on account of any (c) Establishment of vigil mechanism is not mandated
dispute. for the Company as required under section 177 of
the Act. As represented to us by the management,
viii. As represented by the Management, there were no there are no whistle blower complaints received
transactions which were previously not recorded in by the Company during the year under the vigil
the books of account that have been surrendered mechanism established by the parent company
or disclosed as income during the year in the tax for the Group.
assessments under the Income Tax Act, 1961 (43 of
1961). xii. The Company is not a Nidhi Company and hence,
reporting under clause (xii) of the paragraph 3 of the
ix. (a) The Company has not defaulted any loans Order is not applicable.
or other borrowings from any lender. Hence
reporting under clause (ix)(a) of the paragraph 3 xiii. Transactions with the related parties are in compliance
of the Order is not applicable. with section 188 of the Act, where applicable, and

37
 the details have been disclosed in the notes to the xix. On the basis of the financial ratios refer note 43,
financial statements, as required by the applicable ageing and expected dates of realisation of financial
accounting standards. The provisions of section 177 assets and payment of financial liabilities, other
are not applicable to the Company and accordingly information accompanying the financial statements
the requirements to report under clause (xiii) of the and our knowledge of the Board of Directors and
paragraph 3 of the Order insofar as it relates to section Management plans and based on our examination of
177 of the Act is not applicable to the Company. the evidence supporting the assumptions, nothing
xiv. (a) In our opinion the Company has an adequate has come to our attention, which causes us to believe
internal audit system commensurate with the that any material uncertainty exists as on the date
size and the nature of its business. of the audit report indicating that Company is not
capable of meeting its liabilities existing at the date
(b) We have considered, the internal audit reports of balance sheet as and when they fall due within a
for the year under audit, issued to the Company period of one year from the balance sheet date. We,
during the year and till date, in determining however, state that this is not an assurance as to the
the nature, timing and extent of our audit future viability of the Company. We further state that
procedures. our reporting is based on the facts up to the date of
xv. In our opinion during the year the Company has the audit report and we neither give any guarantee
not entered into any non-cash transactions with its nor any assurance that all liabilities falling due within
Directors or persons connected with its directors as a period of one year from the balance sheet date, will
per the provisions of section 192 of the Companies get discharged by the Company as and when they fall
Act, 2013. Hence, reporting under clause (xv) of the due.
paragraph 3 of the Order is not applicable to the xx. (a) There are no unspent amounts towards
Company. Corporate Social Responsibility (CSR) on other
xvi. (a) According to the information and explanation than ongoing projects requiring a transfer to a
given to us, the Company is required to be Fund specified in Schedule VII to the Companies
registered under Section 45-IA of the Reserve Act in compliance with second proviso to sub-
Bank of India Act, 1934 and it has obtained the section (5) of Section 135 of the said Act. Hence,
Certificate of registration under section 45-IA of reporting under clause (xx)(a) of the paragraph
the Reserve Bank of India Act, 1934 vide COR 3 of the Order is not applicable for the year to
No. N-13.02124 dated 28th July. 2016. the Company.
(b) According to the information given to us, the (b) There are no unspent amounts towards
company is conducting Non Banking Finance Corporate Social Responsibility (CSR) on any
activities and has a valid certificate of registration ongoing projects requiring a transfer to a special
issued by Reserve Bank of India. account in compliance with sub-section (6) of
Section 135 of the said Act. Hence, reporting
(c) The company is not a core investment company
under clause (xx)(b) of the paragraph 3 of
as defined in the regulations made by the Reserve
the Order is not applicable for the year to the
bank of India, hence reporting under clause (xvi)
Company.
(c) of the paragraph 3 is not applicable.
(d) As informed to us, there is no core investment
company within the Group (as defined in the For V. C. Shah & Co.
Core Investment Companies (Reserve Bank) Chartered Accountants
Directions, 2016) and accordingly reporting ICAI Firm Registration No.109818W
under clause (xvi)(d) of the paragraph 3 of the
Order is not applicable.
xvii. The Company has not incurred cash losses during
Sd/-
the financial year covered by our audit and the
Viral J. Shah
immediately preceding financial year. Hence,
Partner
reporting under clause (xvii) of the paragraph 3 of the
Membership No.: 110120 Place: Mumbai
Order is not applicable to the Company
Date: June 01, 2023
xviii. During the year there was no resignation of the UDIN: 23110120BGXNJH4230
previous Auditors. Hence reporting under clause
(xviii) of the paragraph 3 of the Order is not applicable
to the company.

38
ANNEXURE “B” TO THE INDEPENDENT
AUDITOR’S REPORT
(Referred to in paragraph 2(f) under ‘Report on Other Auditor’s Responsibility
Legal and Regulatory Requirements’ section of our Our responsibility is to express an opinion on the
report of even date to the Members of Micro Units Company’s internal financial controls over financial
Development and Refinance Agency Limited on the Ind reporting of the Company based on our audit. We
AS financial statements for the year ended March 31, conducted our audit in accordance with the Guidance
2022) Note on Audit of Internal Financial Controls Over
Financial Reporting (the “Guidance Note”) issued by
Report on the Internal Financial Controls Over Financial the ICAI and the Standards on Auditing prescribed
Reporting under Clause (i) of sub- section 3 of Section under Section 143(10) of the Companies Act, 2013,
143 of the Companies Act, 2013 (the “Act”) to the extent applicable to an audit of internal financial
We have audited the internal financial controls over controls. Those Standards and the Guidance Note require
financial reporting of Micro Units Development and that we comply with ethical requirements and plan
Refinance Agency Limited (the “Company”) as of March and perform the audit to obtain reasonable assurance
31, 2023 in conjunction with our audit of the Ind AS about whether adequate internal financial controls over
financial statements of the Company for the year ended financial reporting was established and maintained
on that date. and if such controls operated effectively in all material
respects.
Opinion
In our opinion, to the best of our information and Our audit involves performing procedures to obtain audit
according to the explanations given to us, the Company evidence about the adequacy of the internal financial
has, in all material respects, an adequate internal financial controls system over financial reporting and their
controls system over financial reporting and such internal operating effectiveness. Our audit of internal financial
financial controls over financial reporting were controls over financial reporting included obtaining
operating effectively as at March 31, 2023, based on the an understanding of internal financial controls over
criteria for internal financial control over financial reporting financial reporting, assessing the risk that a material
established by the Company considering the essential weakness exists, and testing and evaluating the design
components of internal control stated in the Guidance and operating effectiveness of internal control based on
Note on Audit of Internal Financial Controls Over Financial the assessed risk. The procedures selected depend on
Reporting issued by the ICAI. the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial statements,
Management’s Responsibility for Internal Financial whether due to fraud or error.
Controls
The Management of the Company is responsible for We believe that the audit evidence we have obtained, is
establishing and maintaining internal financial controls sufficient and appropriate to provide a basis for our audit
based on the internal control over financial reporting opinion on the Company’s internal financial controls
criteria established by the Company considering the system over financial reporting.
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Meaning of Internal Financial Controls over Financial
Financial Reporting issued by the Institute of Chartered Reporting
Accountants of India (the “ICAI”). These responsibilities A company’s internal financial control over financial
include the design, implementation and maintenance of reporting is a process designed to provide reasonable
adequate internal financial controls that were operating assurance regarding the reliability of financial reporting
effectively for ensuring the orderly and efficient conduct and the preparation of financial statements for external
of its business, including adherence to company’s policies, purposes in accordance with generally accepted
the safeguarding of its assets, the prevention and detection accounting principles. A company’s internal financial
of frauds and errors, the accuracy and completeness of the control over financial reporting includes those policies and
accounting records, and the timely preparation of reliable procedures that
financial information, as required under the Act.

39
(1) pertain to the maintenance of records that, in reasonable and not be detected. Also, projections of any evaluation
detail, accurately and fairly reflect the transactions and of the internal financial controls over financial reporting
dispositions of the assets of the company; (2) provide to future periods are subject to the risk that the internal
reasonable assurance that transactions are recorded as financial control over financial reporting may become
necessary to permit preparation of financial statements in inadequate because of changes in conditions, or that the
accordance with generally accepted accounting principles, degree of compliance with the policies or procedures may
and that receipts and expenditures of the company are deteriorate.
being made only in accordance with authorisations of
management and directors of the company; and (3)
provide reasonable assurance regarding prevention or For V. C. Shah & Co.
timely detection of unauthorised acquisition, use, or Chartered Accountants
disposition of the company’s assets that could have a ICAI Firm Registration No.109818W
material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Sd/-

Financial Reporting Viral J. Shah
Because of the inherent limitations of internal financial Partner
controls over financial reporting, including the possibility Membership No.: 110120 Place: Mumbai
of collusion or improper management override of controls, Date: June 01, 2023
material misstatements due to error or fraud may occur UDIN: 23110120BGXNJH4230

40
Balance Sheet
as at March 31, 2023
(` in Lakhs)
Particulars Note As at As at
No. March 31, 2023 March 31, 2022

ASSETS
Financial Assets
(a) Cash and cash equivalents 4 47,658.73 184,959.45
(b) Bank balances other than cash and cash equivalents 5 1,640,662.87 1,119,037.99
(c) Loans 6 2,154,666.16 1,994,323.37
(d) Investments 7 - -
(e) Other Financials Assets 8 4.98 148.61
Non Financial Assets
(a) Current Tax Assets (Net) 9 842.73 3,474.79
(b) Deferred Tax Assets (Net) 10 1,335.66 2,750.28
(c) Property, Plant and Equipment 11 17.20 22.08
(d) Intangible assets under development - -
(e) Other Intangible assets 12 92.26 52.55
(f) Other non-financials assets 13 22.54 28.68
Total Assets 3,845,303.14 3,304,797.80
LIABILITIES AND EQUITY
LIABILITIES
Financial Liabilities
(a) Payables 14
I) Trade payables - -
II) Other payables 292.33 52.88
(b) Deposits 15 3,513,655.66 2,997,274.68
(c) Other financial liabilities 16 7.93 8.93
Non-Financial Liabilities
(a) Provisions 17 47.61 76.54
(b) Other non-financial liabilities 18 46.15 31,362.40
Total Liabilities 3,514,049.68 3,028,775.42
EQUITY
(a) Equity Share capital 19 167,592.59 167,592.59
(b) Other Equity 20 163,660.87 108,429.79
Total Equity 331,253.47 276,022.38
Total Liabilities and Equity 3,845,303.14 3,304,797.80

In terms of our report attached of even date

For V. C. Shah & Co For and on behalf of the Board of Directors
Chartered Accountants
Firm No.:109818W

Sd/- Sd/- Sd/-
Viral J. Shah Vinay Hedaoo Sudatta Mandal
Partner MD & CEO Director
Membership No.:110120 DIN : 07916221 DIN :00942070

Sd/- Sd/-
Place : Kasauli Rajesh D.Kale Vishnu Kumar Sah
Date: June 01, 2023 Chief Financial Officer Company Secretary

41
Statement of Profit and Loss
for the year ended March 31, 2023
(` in Lakhs)
Particulars Note For the year ended For the year ended
No. March 31, 2023 March 31, 2022

I. Revenue from operations

Interest Income 21 152,616.92 99,923.67
Fees and commission Income 22 697.23 852.64
Total Revenue from operations 153,314.15 100,776.31
II. Other Income
Net gain on fair value changes 23 147.49 674.20
Other Income 24 258.39 7.81
III. Total Income(I+II) 153,720.03 101,458.32
IV. Expenses
Amortised Finance costs 25 75,082.86 66,138.65
Impairment on financial instruments 26 (6,064.96) 448.51
Net Loss on de-recognition of financial instruments under
27 5,132.86 -
amortized cost category
Employee Benefits Expenses 28 962.78 738.74
Depreciation, amortization and impairment 29 41.65 22.46
Others expenses 30 1,169.53 1,006.92
Total Expenses(IV) 76,324.71 68,355.27
V. Profit / (loss) before exceptional items and tax (III-IV) 77,395.32 33,103.04
Exceptional Items - -
VI. Profit/(loss) before tax 77,395.32 33,103.04
VII. Tax expense: 31
Current tax 18,235.73 8,667.94
Deferred tax 1,414.62 (216.02)
VIII. Profit/(loss) for the year (VI-VII) 57,744.98 24,651.12
Other Comprehensive Income
A. Items that will not be reclassified to profit or loss - -
B. Items that will reclassified to profit or loss - -
Other comprehensive income (A+B) - -
Total comprehensive income 57,744.98 24,651.12
IX Earnings per equity share 32
Basic (`) 3.45 1.47
Diluted (`) 3.45 1.47

In terms of our report attached of even date

For V. C. Shah & Co For and on behalf of the Board of Directors
Chartered Accountants
Firm No.:109818W

Sd/- Sd/- Sd/-
Viral J. Shah Vinay Hedaoo Sudatta Mandal
Partner MD & CEO Director
Membership No.:110120 DIN : 07916221 DIN :00942070

Sd/- Sd/-
Place : Kasauli Rajesh D.Kale Vishnu Kumar Sah
Date: June 01, 2023 Chief Financial Officer Company Secretary

42
Statement of Cash Flows
for the year ended March 31, 2023
(` in Lakhs)
Particulars Year ended Year ended
March 31, 2023 March 31, 2022

A. CASH FLOW FROM OPERATING ACTIVITIES:

Profit before tax 77,395.32 33,103.04
Net Profit Before Taxes
Adjustment for:
Interest Income from Fixed Deposits & CDs (78,074.37) (48,240.70)
Profit on sale Mutual Funds (147.49) (674.20)
Depreciation and amortisation 41.65 22.46
Impairment on financial instruments (6,064.96) 448.51
Net Loss on de-recognition of financial instruments under amortized
5,132.86 -
cost category
Interest on Tax Refund - -
Amotisation of upfront fees 445.48 287.15
Corporate Social Responsibility (CSR) Expenses 673.50 486.87
Operating (loss)/ profit before working capital changes (598.01) (14,566.87)
Movement in working capital
(Increase)/Decrease in Loans (159,867.56) (641,241.88)
(Increase)/Decrease in other financial assets 143.64 (63.19)
(Increase)/Decrease in other assets 6.14 1.77
Increase/(Decrease) in Other payables 239.45 (12.64)
Increase/(Decrease) in Short Term Provisions (28.93) 11.54
Increase/(Decrease) in Other financial liabilities (1.00) -
Increase/(Decrease) in Other liabilities (31,316.25) 1,425.52
Cash generated from Operations (191,422.52) (654,445.75)
Income taxes paid (15,603.67) (8,985.90)
Paid for Corporate Social Responsibility (CSR) (673.50) (486.87)
Net cash from/(utilised in) operating activities (207,699.69) (663,918.52)

B. CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of fixed assets and intangible assets (76.49) (20.94)
(Increase)/Decrease in Investments- Certificate of Deposits - -
(Increase)/Decrease in Investments- Corporate Deposits - -
(Increase)/Decrease in Fixed Deposits (with a maturity of more than
(521,716.83) (199,424.13)
3 months)
Interest Income from Fixed Deposits & CDs 78,074.37 48,240.70
Gain on sale of Mutual Fund 147.49 674.20
Decrease in Investment in Mutual Fund - -
Net cash from/(utilised in) investing activities (443,571.46) (150,530.17)

C. CASH FLOW FROM FINANCING ACTIVITIES:

Increase/(Decrease) in Deposits 516,380.98 988,857.31
Dividend paid (2,513.89) (2,681.48)
Net Cash from financing activities 513,867.09 986,175.83
NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS (137,404.06) 171,727.15
Cash and cash equivalents at the beginning of the financial year 185,086.61 13,359.46
Cash and cash equivalents at end of the year 47,682.55 185,086.61

43
Statement of Cash Flows
for the year ended March 31, 2023

Reconciliation of cash and cash equivalents as per the cash flow statement
Cash and cash equivalents as per above comprise of the following

(` in Lakhs)
Particulars Year ended Year ended
March 31, 2023 March 31, 2022

Balances with banks in Current accounts 0.29 0.81

Cash on hand 0.05 0.03
Bank deposits with maturity of less than 3 months 47,682.21 185,085.77
Total 47,682.55 185,086.61

Significant accounting policies on Note No. 1 to 3

In terms of our report attached of even date

For V. C. Shah & Co For and on behalf of the Board of Directors
Chartered Accountants
Firm No.:109818W

Sd/- Sd/- Sd/-
Viral J. Shah Vinay Hedaoo Sudatta Mandal
Partner MD & CEO Director
Membership No.:110120 DIN : 07916221 DIN :00942070

Sd/- Sd/-
Place : Kasauli Rajesh D.Kale Vishnu Kumar Sah
Date: June 01, 2023 Chief Financial Officer Company Secretary

44
Statement of Changes in Equity
as at March 31, 2023

A. Equity share capital

1) For the Period Ending March 31, 2023
(` in Lakhs)
Balance at the beginning of Changes in Equity Restated balance Changes in Equity Balance at the
the current reporting period Share Capital at the beginning of Share Capital end of the current
period errors current reporting during the current Reporting Period
period year

167,592.59 - 167,592.59 - 167,592.59

2) For the period ending March 31, 2022

(` in Lakhs)
Balance at the beginning Changes in Equity Restated balance Changes in Balance at the end
of the previous reporting Share Capital at the beginning of Equity Share of the previous
period period errors previous reporting Capital during the Reporting Period
period previous year

167,592.59 - 167,592.59 - 167,592.59

B. Other Equity
(` in Lakhs)
Particulars Reserve and Surplus Other Total
comprehensive
Capital Securities Development General Retained Corporate Statutory Impairment income
Reserve Premium Fund Reserve Earnings Social reserve Reserve
Responsibility created
Fund (CSR) u/s 45-IC
of Reserve
Bank of
India Act,
1934

Balance at April
- 7,407.41 200.00 68,000.00 4,350.87 - 21,762.45 6,709.04 - 108,429.78
01, 2022
Changes in
accounting
- - - - - - - - - -
policy/ Prior
period errors
Restated balance
at the beginning
- 7,407.41 200.00 68,000.00 4,350.87 - 21,762.45 6,709.04 - 108,429.78
of current
reporting period
Total
Comprehensive
- - - - 57,744.98 - - - - 57,744.98
income of the
current year
Dividends - - - - (2,513.89) - - - - (2,513.89)
Transfer to
statutory reserve
created u/s 45-IC - - - - (11,549.00) - 11,549.00 - - -
of Reserve Bank
of India Act, 1934
Transfer to
Impairment (1,092.22) 1,092.22 -
Reserve
Transfer to
- - - 41,500.00 (41,500.00) - - - - -
general reserve
At March 31,
- 7,407.41 200.00 109,500.00 5,440.74 - 33,311.45 7,801.27 - 163,660.86
2023

Balance at April
- 7,407.41 200.00 55,500.00 6,520.50 - 16,832.23 - - 86,460.14
01, 2021

45
Particulars Reserve and Surplus Other Total
comprehensive
Capital Securities Development General Retained Corporate Statutory Impairment income
Reserve Premium Fund Reserve Earnings Social reserve Reserve
Responsibility created
Fund (CSR) u/s 45-IC
of Reserve
Bank of
India Act,
1934
Changes in
accounting
- - - - - - - - -
policy/ Prior
period errors
Restated balance
at the beginning
- 7,407.41 200.00 55,500.00 6,520.50 - 16,832.23 - - 86,460.14
of reporting
period
Total
Comprehensive
- - - - 24,651.12 - - - - 24,651.12
income of the
year
Dividends - - - - (2,681.48) - - - - (2,681.48)
Transfer to
statutory reserve
created u/s 45-IC - - - - (4,930.22) - 4,930.22 - - -
of Reserve Bank
of India Act, 1934
Transfer to
Impairment - - - - (6,709.04) - - 6,709.04 - -
Reserve
Transfer to
- - - 12,500.00 (12,500.00) - - - - -
general reserve
At March 31,
- 7,407.41 200.00 68,000.00 4,350.87 - 21,762.45 6,709.04 - 108,429.78
2022

In terms of our report attached of even date

For V. C. Shah & Co For and on behalf of the Board of Directors
Chartered Accountants
Firm No.:109818W

Sd/- Sd/- Sd/-
Viral J. Shah Vinay Hedaoo Sudatta Mandal
Partner MD & CEO Director
Membership No.:110120 DIN : 07916221 DIN :00942070

Sd/- Sd/-
Place : Kasauli Rajesh D.Kale Vishnu Kumar Sah
Date: June 01, 2023 Chief Financial Officer Company Secretary

46
Significant Accounting Policies – Standalone
Financial Statements
1. Corporate Information i) Certain financial assets and liabilities that are
Micro Units Development & Refinance Agency measured at fair value
Limited (MUDRA), is a public limited company
domiciled in India and incorporated under the ii) Defined benefit plans-plan assets measured at fair
provisions of The Companies Act 2013 and value
registered as Non-Banking Financial Institutions
(NBFI) with RBI U/s 45-IA of RBI Act 1934 with the The financial statements are presented in Indian
registered office located in Swavalamban Bhavan, Rupees (‘INR’) which is Company’s functional and
C 11, G Block, Bandra Kurla Complex, Bandra East, presentation currency and all values are rounded to
Mumbai, Maharashtra 400051. nearest lakhs, except when otherwise indicated.

The MUDRA provides refinance to Banks (including Presentation of Financial Statements

Regional Rural Banks and Small Finance Banks),
The Company presents its financial statements
Non-Banking Financial Companies (NBFCs) and
to comply with Division III of Schedule III to the
Micro Finance Institutions (MFIs) and also subscribe
Companies Act, 2013 (which provides general
to Pass Through Certificate of securitised pool of
instructions for the preparation of financial
PMMY Loans.
statements of a non-banking financial company
(NBFC to comply with Ind AS). An analysis regarding
2. Basis of Preparation
recovery or settlement within 12 months after the
These financial statements comply in all material
reporting date (current) and more than 12 months
aspects with the Indian Accounting Standards (Ind
after the reporting date (non-current) is presented
AS) notified under section 133 of the Companies
in note no. 36
Act, 2013 (‘Act’) read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended
Standards issued but not yet effective upto the date
and other relevant provisions of the Act.
of issuance of the financial statements :
MUDRA is registered as a Non-Banking Financial
Ministry of Corporate affairs have made changes on
Institution (NBFI) and has to adhere to the
March 31, 2023, in the following Indian Accounting
regulatory and disclosure standards as applicable
Standards (Ind AS) amended namely Ind AS 101,
to NBFC-ND-SIs.
Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109,
Ind AS 115, Ind AS 1, Ind AS 8, Ind AS 12 and Ind
The financial statements up to year ended March
AS 34. These amendments shall be applicable from
31, 2018 were prepared in accordance with the
annual reporting periods beginning on or after April
accounting standards notified under Companies
01, 2023.
(Accounting Standard) Rules, 2006 (as amended)
and other relevant provisions of the Act.
3. Significant Accounting Policies
These financial statements for the year ended 3.1 Revenue Recognition
March 31, 2019 onwards, the financial statements, Recognition & Measurement:
which have been prepared in accordance with
the Ind AS notified under the Companies (Indian Revenue is recognised when the amount of revenue
Accounting Standards) Rules, 2015 including Ind can be measured reliably and it is probable that the
AS 101 First time Adoption of Ind AS. economic benefits associated with the transaction
will flow to the entity. Revenue shall be measured
The financial statements have been prepared on a at the fair value of the consideration received or
historical cost basis, except for the following assets receivable.
and liabilities:

47
3.1.1 Interest Income: Deferred tax
Interest income for all financial instruments except Deferred tax is recognised on temporary differences
for those measured or designated as at FVTPL are between the carrying amounts of assets and
recognised in the profit or loss account using the liabilities in the financial statements and the
effective interest method (EIR). Interest on financial corresponding tax bases used in the computation
instruments measured as at FVTPL is included of taxable profit. Deferred tax liabilities are generally
within the fair value movement during the period. recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for
The interest income is calculated by applying the EIR all deductible temporary differences to the extent
to the gross carrying amount of non-credit impaired that it is probable that taxable profits will be
financial assets (i.e. at the amortised cost of the available against which those deductible temporary
financial asset before adjusting for any expected differences can be utilised. Such deferred tax assets
credit loss allowance). For credit-impaired financial and liabilities are not recognised if the temporary
assets the interest income is calculated by applying difference arises from the initial recognition (other
the EIR to the amortised cost of the credit-impaired than in a business combination) of assets and
financial assets (i.e. the gross carrying amount less liabilities in a transaction that affects neither the
the allowance for expected credit losses (ECLs)). taxable profit nor the accounting profit.

EIR is the rate that exactly discounts the estimated Carrying amount of deferred tax assets is reviewed
future cash payments or receipts over the expected at the end of each reporting period and reduced to
life of the financial instrument or a shorter period, the extent that it is no longer probable that sufficient
where appropriate, to the gross carrying amount taxable profits will be available to allow all or part of
of the financial asset or to the amortised cost of a the asset to be recovered.
financial liability. When calculating the effective
interest rate, the expected cash flows are estimated Deferred tax liabilities and assets are measured at
by considering all the contractual terms of the the tax rates that are expected to apply in the period
financial instrument (for example, prepayment, in which the liability is settled or the asset realised,
extension, call and similar options) but does not based on tax rates (and tax laws) that have been
consider the expected credit losses. enacted or substantively enacted by the end of the
reporting period.
Administrative fee income on Interest Subvention
Scheme is accounted for on accrual basis as The measurement of deferred tax liabilities and
percentage of work completed. Administrative fee assets reflects the tax consequences that would
income on IMEF is recognised as per the contact. follow from the manner in which the entity expects,
at the end of the reporting period, to recover or settle
3.2 Taxation the carrying amount of its assets and liabilities.

Income tax expense represents the sum of the tax Deferred tax assets and liabilities are offset if such
currently payable and deferred tax. items relate to taxes on income levied by the same
governing tax laws and the entity has a legally
Current tax enforceable right for such setoff.
The current income tax charge is calculated on
MAT Credits are in the form of unused tax credits
the basis of the tax laws enacted or substantively
that are carried forward by the entity for a specified
enacted at the end of the reporting period. Taxable
period of time; hence it is grouped with Deferred
profit differs from ‘profit before tax’ as reported in
Tax Asset.
the statement of profit and loss because of items
of income or expense that are taxable or deductible
in other years and items that are never taxable or Current and deferred tax for the year
deductible. Current and deferred tax are recognised in profit
or loss, except when they relate to items that

48
 are recognised in other comprehensive income benefit obligation and the fair value of plan assets.
or directly in equity, in which case, the current This cost is included in employee benefit expense
and deferred tax are also recognised in other in the Statement of Profit and Loss.
comprehensive income or directly in equity
respectively. Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in which
3.3 Employee Benefits:
they occur, directly in other comprehensive income.
Recognition & Measurement:
The liabilities for compensated absences are Defined Contribution plans
measured as the present value of expected future Defined Contribution Plans such as superannuation
payments to be made in respect of services scheme, provident fund are charged to the
provided by employees up to the end of the statement of profit and loss as an expense, when
reporting period using the projected unit credit an employee renders the related services. If
method. The benefits are discounted using the the contribution payable to scheme for service
market yields at the end of the reporting period received before the balance sheet date exceeds the
that have terms approximating to the terms of the contribution already paid, the deficit payable to the
related obligation. Re-measurements as a result of scheme is recognised as liability after deducting
experience adjustments and changes in actuarial the contribution already paid. If the contribution
assumptions are recognised in the statement of already paid exceeds the contribution due for
profit and loss. services received before the balance sheet date,
then excess is recognised as an asset.
Post-employment obligations:
Currently, there are no employee which are on
The Company operates the following post-
payroll of the Company except five employees which
employment schemes:
are on contract basis for which post-employment
benefits are not applicable.
(a) Defined benefit plans such as gratuity and
pension obligations
3.4 Property, Plant and Equipment
(b) Defined contribution plans such as
Recognition and Measurement:
superannuation scheme, provident fund.
Property, plant and equipment shall be recognised
Gratuity: as an asset if it is probable that future economic
benefits flow to the entity and cost can be reliably
The liability or asset recognised in the balance measured. Freehold land is carried at historical
sheet in respect of defined benefit gratuity plans is cost. All other items of property, plant and
the present value of the defined benefit obligation equipment are measured at historical cost less
at the end of the reporting period less the fair value depreciation and impairment loss. Historical cost
of plan assets. The defined benefit obligation is includes expenditure directly attributable to the
calculated annually by actuaries using the projected acquisition of the items. Cost includes its purchase
unit credit method. price including non-refundable taxes and duties
after deducting trade discounts/rebates, directly
The present value of the defined benefit obligation
attributable costs of bringing the asset to its present
is determined by discounting the estimated future
location and condition and initial estimate of costs
cash outflows by reference to market yields at the
of dismantling and removing the item and restoring
end of the reporting period on government bonds
the site on which it is located.
that have terms approximating to the terms of the
related obligation. Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset,
The net interest cost is calculated by applying the
as appropriate, only when it is probable that future
discount rate to the net balance of the defined
economic benefits associated with the item will

49
 flow to the Company and the cost of the item can Amortisation:
be measured reliably. Intangible assets are amortised on straight line
basis over the estimated useful life. The method
The carrying amount of any component accounted
of amortisation and useful life is reviewed at the
for as a separate asset is derecognised when
end of each accounting year with the effect of any
replaced. All other repairs and maintenance are
changes in the estimate being accounted for on a
charged to the Statement of Profit and Loss during
prospective basis.
the reporting period in which they are incurred.
Useful life considered for amortisation of intangible
Depreciation methods, estimated useful life and assets for various classes of assets are as follows-
residual value
Depreciation on property, plant & equipment has Asset Class Useful Life
been provided on straight line method based on the
useful life specified in Schedule II of the Companies Computer software 3 years
Act, 2013 except where management estimate of
useful life is different. Depreciation commences Gains or losses arising from the retirement or
when the assets are ready for their intended use. disposal of an intangible asset are determined as the
difference between the net disposal proceeds and
Assets costing ` 5,000/- or less have been the carrying amount of the asset and recognised as
depreciated over period of one year. income or expense in the Statement of Profit and
Loss.
Useful life considered for calculation of depreciation
for various classes of assets are as follows- 3.6 Borrowing costs
General and specific borrowing costs that are
Asset Class Useful Life directly attributable to the acquisition, construction
or production of a qualifying asset are capitalised
Office Equipment 5 years
during the period of time that is required to
Computer-hardware 3 years complete and prepare the asset for its intended use.
Electrical Installations 10 years Qualifying assets are assets that necessarily take
a substantial period of time to get ready for their
An asset’s carrying amount is written down intended use. Other borrowing costs are expensed
immediately to its recoverable amount if the asset’s in the period in which they are incurred. Transaction
carrying amount is greater than its estimated costs relating to borrowings are considered under
recoverable amount. effective interest rate method.

Gains and losses on disposals are determined by

3.7 Impairment of non-financial assets:
comparing proceeds with carrying amount. These
are included in profit or loss within other income or The Entity need to assess at the end of each
other expenses, as applicable. reporting period whether there is any impairment
indication for all the assets. If the asset is impaired
then the entity need to estimate the recoverable
3.5 Intangible Assets
amount of the asset. Impairment loss is recognised
Intangible assets that are acquired by the Company, when the recoverable amount of an asset is less
which have finite useful lives, are measured at cost than its carrying amount. The difference between
less accumulated amortisation and accumulated the recoverable amount and the carrying amount
impairment losses. Cost includes expenditures that is recognised as impairment loss in Statement of
are directly attributable to the acquisition of the Profit & Loss A/c.
intangible asset.

50
 If there is indication of impairment then recoverable measured reliably. The Company does not recognize
amount shall be estimated for each individual asset a contingent liability but discloses its existence in
and if it is not possible to estimate the recoverable the financial statements unless the probability of
amount for each individual asset an entity shall outflow of resources is remote.
determine the recoverable amount of the cash-
generating unit to which the asset belongs. Contingent assets are not recognized in the financial
statements. If the inflow of economic benefits
is probable, then it is disclosed in the financial
3.8 Provisions and Contingencies
statements.
Provisions
Provisions, Contingent liabilities, contingent assets
A provision is recognised when the Company has
and commitments are reviewed at each balance
a present obligation (legal or constructive) as a
sheet date.
result of past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable 3.9 Cash & cash equivalents
estimate can be made of the amount of the For the purpose of presentation in the statement
obligation. These estimates are reviewed at each of cash flows, cash and cash equivalents includes
reporting date and adjusted to reflect the current cash on hand, demand deposits with entities,
best estimates. corporate deposits and other short-term highly
liquid investments with original maturities of three
If the effect of the time value of money is material, months or less that are readily convertible to known
provisions are discounted using a current pre- amounts of cash and which are subject to an
tax rate that reflects, when appropriate, the risks insignificant risk of changes in value.
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
3.10 Financial instruments
time is recognised as a finance cost.
A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
A provision for onerous contracts is recognized
when the expected benefits to be derived by
the Company from a contract are lower than the
unavoidable cost of meeting its obligations under 3.10.1 Financial assets
the contract. The provision is measured at the
(i) Classification, recognition and measurement:
present value of the lower of the expected cost of
Financial assets are recognized when the entity
terminating the contract and the expected net cost
becomes a party to the contractual provisions of
of continuing with the contract. Before a provision
the instrument.
is established, the Company recognizes any
impairment loss on the assets associated with that
The entity classifies its financial assets in the
contract.
following measurement categories:

Contingent Liabilities & Contingent Assets a) those to be measured subsequently at fair

A contingent liability is a possible obligation that value (either through other comprehensive
arises from past events whose existence will be income, or through profit or loss), and
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the b) those to be measured at amortised cost.
control of the Company or a present obligation that
is not recognised because it is not probable that The classification depends on the entity’s business
an outflow of resources will be required to settle model for managing the financial assets and
the obligation. A contingent liability also arises whether the contractual terms of the financial asset
in extremely rare cases, where there is a liability give rise on specified dates to cash flows that are
that cannot be recognised because it cannot be solely payments of principal and interest on the
principal amount outstanding.

51
 For assets measured at fair value, gains and losses for the equity investment at fair value through other
will either be recorded in profit or loss or other comprehensive income.
comprehensive income. For investments in debt
instruments, this will depend on the business Initial Recognition:
model in which the investment is held. For All financial assets are recognised initially at fair
investments in equity instruments, this will depend value and for those instruments that are not
on whether the entity has made an irrevocable subsequently measured at FVTPL, plus/minus
election at the time of initial recognition to account transaction costs that are attributable to the
acquisition of the financial assets.

Subsequent measurement:
Type of Classification Rationale for Classification Subsequent measurement
Instruments

Debt Amortized cost Assets that are held for collection of Amortized cost is calculated using Effective
instruments contractual cash flows where those Interest Rate (EIR) method, taking into
cash flows represent solely payments account interest income, transaction cost
of principal and interest on principal and discount or premium on acquisition. EIR
amount outstanding are measured at amortization is included in finance Income.
amortised cost. Any gain and loss on derecognition of the
financial instrument measured at amortised
cost recognised in profit and loss account.
Fair value Assets that are held for collection of Changes in carrying value of such
through other contractual cash flows and for selling instruments are recorded in OCI except for
comprehensive the financial assets, where the assets’ impairment losses, interest income (including
income (FVOCI) cash flows represent solely payments transaction cost and discounts or premium on
of principal and interest on principal amortization) and foreign exchange gain/loss
amount outstanding, are measured at which is recognized in income statement.
FVOCI.
Interest income, transaction cost and discount
or premium on acquisition are recognized in
to income statement (finance income) using
effective interest rate method.

On derecognition of the financial assets

measured at FVOCI, the cumulative gain or
loss previously recognized in OCI is classified
from Equity to Profit and Loss account in
other gain and loss head.
Fair value Assets that do not meet the criteria for Change in fair value of such assets are
through profit amortised cost or FVOCI are measured recorded in income statement as other gains/
or loss (FVTPL) at fair value through profit or loss. A (losses) in the period in which it arises.
gain and loss on a debt instrument that
is subsequently measured at fair value Interest income from these financial assets is
through profit or loss and is not part of included in the finance income.
a hedging relationship is recognized
in profit or loss in the period in which
arise.

52
 Type of Classification Rationale for Classification Subsequent measurement
Instruments

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

Dividend income from such instruments are

however recorded in income statement.
FVTPL When no such election is made, the Change in fair value of such assets are
equity instruments are measured at recorded in income statement.
FVTPL

(ii) De-recognition of financial assets: Changes in the carrying amount of investments in

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

53
 liabilities except financial liabilities at FVTPL Subsequently, the liability is measured at the higher
which are initially measured at fair value. of the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the
Subsequent measurement:
amount recognised less cumulative amortisation.
The financial liabilities are classified for
subsequent measurement into following 3.10.3 Impairment of financial assets:
categories: In accordance with Ind AS 109, Entity applies
- at amortised cost expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following
- at fair value through profit or loss (FVTPL)
financial assets and credit risk exposure:
(i) Financial liabilities at amortised cost:
• Financial assets carried at amortised cost
Amortised cost for financial liabilities e.g., advances, debt securities, deposits and
represents amount at which financial liability entity balance
is measured at initial recognition minus the
• Financial assets that are debt instruments
principal repayments, plus or minus the
and are measured as at FVTOCI
cumulative amortisation using the effective
interest method of any difference between • Loan commitments which are not measured
that initial amount and the maturity amount. as at FVTPL, financial guarantee contracts
which are not measured as at FVTPL
(ii) Financial liabilities at fair value
through profit or loss: ECL is the difference between all contractual cash
flows that are due to the entity in accordance
Financial liabilities held for trading are
with the contract and all the cash flows that the
measured at FVTPL.
entity expects to receive (i.e., all cash shortfalls),
Financial liabilities at FVTPL are stated at fair value discounted at the original effective interest rate.
with any gains or losses arising on remeasurement, When estimating the cash flows, an entity is
recognised in profit or loss. The net gain or loss required to consider:
recognised in profit or loss incorporates any interest
• All contractual terms of the financial
paid on the financial liability.
instrument (including prepayment,
extension, call and similar options) over the
Derecognition:
expected life of the financial instrument.
A financial liability is removed from the balance However, in rare cases when the expected
sheet when the obligation is discharged, or is life of the financial instrument cannot be
cancelled, or expires. When an existing financial estimated reliably, then the entity is required
liability is replaced by another from the same lender to use the remaining contractual term of the
on substantially different terms, or the terms of financial instrument
an existing liability are substantially modified,
• Cash flows from the sale of collateral held or
such an exchange or modification is treated as
other credit enhancements that are integral
the derecognition of the original liability and the
to the contractual terms
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the The impairment methodology applied depends on
Statement of Profit and Loss. whether there has been a significant increase in
credit risk. In general, it is presumed that credit risk
(c) Financial guarantees contracts : has significantly increased since initial recognition
Financial guarantee contracts issued by the Entity if the payments are more than 30 days past due.
are those contracts that require a payment to be Entity considers the probability of default upon
made to reimburse the holder for a loss it incurs initial recognition of asset and whether there has
because the specified debtor fails to make a been a significant increase in credit risk on an
payment when due in accordance with the terms ongoing basis throughout each reporting period.
of a debt instrument. Financial guarantee contracts To assess whether there is a significant increase in
are recognised initially as a liability at fair value, credit risk, the entity compares the risk of a default
adjusted for transaction costs that are directly occurring on the asset as at the reporting date with
attributable to the issuance of the guarantee. the risk of default as at the date of initial recognition.

54
It considers available reasonable and supportive • the borrower is unlikely to pay its credit
forwarding-looking information. Especially the obligations to the Group in full.
following indicators are incorporated:
A financial asset is ‘credit-impaired’ when one or
• Internal credit rating more events that have a detrimental impact on the
estimated future cash flows of the financial asset
• External credit rating (as far as available)
have occurred.
• Actual or expected significant adverse
• significant financial difficulty of the borrower
changes in business, financial or economic
or issuer
conditions that are expected to cause a
significant change to the borrower’s ability • a breach of contract such as a default or past
to meet its obligations due event
• Actual or expected significant changes in the • the lender of the borrower, for economic or
operating results of the borrower contractual reasons relating to the borrower’s
financial difficulty, having granted to the
• Significant increase in credit risk on other
borrower a concession that the lender would
financial instruments of the same borrower
not otherwise consider
• Significant changes in the value of the
• the disappearance of an active market for a
collateral supporting the obligation or in the
security because of financial difficulties
quality of third party guarantees or credit
enhancements • the purchase of a financial asset at a deep
discount that reflects the incurred credit
• Significant changes in the expected
losses.
performance and behaviour of the borrower,
including changes in the payment status of Credit impaired assets will include defaulted assets
borrowers in the group and changes in the as well as other non-defaulted assets given the
operating results of the borrower. definition of credit impaired is broader than the
definition of default.
A loss allowance at an amount equal to 12-month
expected credit losses is recognised, if the credit risk Interest revenues are calculated on the net carrying
at the reporting date has not increased significantly amount for credit-impaired financial assets only.
since initial recognition (Stage 1). This amount
Forward-looking information, including macro-
represents the expected credit losses resulting
economic factors must be taken into account to
from default events that are possible within the
measure the expected credit losses.
next 12 months. The interest revenue is calculated
on the gross carrying amount for financial assets in Macroeconomic information (such as regulatory
Stage 1. changes, market interest rate or growth rates) is
incorporated as part of the internal rating model.
Credit losses over the remaining life of the financial
assets (‘lifetime expected losses’) are recognised Key concepts and management judgements:
which are considered to have experienced a
• Determining a significant increase in credit
significant increase in credit risk (Stage 2) and
risk since initial recognition
for financial assets that are credit impaired at the
reporting date (Stage 3). The lifetime expected • Forward-looking information
credit losses represent all possible default events • Definition of default and credit impaired
over the expected life of a financial instrument. assets
Financial assets will be transferred to Stage 2 if 30
days past due. The interest revenue is calculated • Expected life
on the gross carrying amount for financial assets in • Modelling techniques
Stage 2.
Purchased or originated credit-impaired
As the primary definition for credit impaired financial (POCI) financial assets
assets moving to Stage 3, the entity considers the
following definition of default. POCI financial assets are credit-impaired since initial
recognition. For such assets, the entity recognises
• the borrower is past due more than 90 days a loss allowance equal to lifetime ECL since initial
on any material credit obligation to the entity

55
 recognition with any changes recognised in profit value with changes in fair value recognised in the
or loss. A favourable change for such assets creates Statement of Profit and Loss in the period when
an impairment gain. they arise (other than in case of hedge accounting).

3.11 Fair value measurement: 3.13 Offsetting financial instruments:

The Entity measures financial instruments, such Financial assets and liabilities are offset and the
as, certain investments at fair value at each balance net amount is reported in the balance sheet where
sheet date. there is a legally enforceable right to offset the
recognised amounts and there is an intention to
Fair value is the price that would be received to sell
settle on a net basis or realise the asset and settle
an asset or paid to transfer a liability in an orderly
the liability simultaneously. The legally enforceable
transaction between market participants at the
right must not be contingent on future events
measurement date. The fair value measurement
and must be enforceable in the normal course of
is based on the presumption that the transaction
business and in the event of default, insolvency or
to sell the asset or transfer the liability takes place
bankruptcy of the Entity or the counterparty.
either:
- In the principal market for the asset or 3.14 Segment Reporting:
liability, or Operating segments are reported in a manner
- In the absence of a principal market, in the consistent with the internal reporting provided
most advantageous market for the asset or to the chief operating decision maker. The chief
liability. operational decision maker monitors the operating
results of its business Segments separately for the
The principal or the most advantageous market
purpose of making decision about the resources
must be accessible by the Entity.
allocation and performance assessment. Segment
The fair value of an asset or a liability is measured performance is evaluated based on the profit or loss
using the assumptions that market participants and is measured consistently with profit or loss in
would use when pricing the asset or liability, the financial statements. The operating segments
assuming that market participants act in their have been identified on the basis of the nature of
economic best interest. products/ services.

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

• Level 1 — Quoted (unadjusted) market prices 3.16 Earnings per share:

in active markets for identical assets or
liabilities Basic earnings per share
• Level 2 — Valuation techniques for which the Basic earnings per share are calculated by dividing:
lowest level input that is significant to the fair
• the profit attributable to owners of the
value measurement is directly or indirectly
Company
observable
• by the weighted average number of equity
• Level 3 — Valuation techniques for which the
shares outstanding during the financial year.
lowest level input that is significant to the fair
value measurement is unobservable Diluted earnings per share

3.12 Derivative financial instruments Diluted earnings per share adjust the figures used
in the determination of basic earnings per share to
Derivative financial instruments such as forward
take into account:
contracts are taken by the Company to hedge its
foreign currency risks, are initially recognised at fair • the after income tax effect of interest and
value on the date a derivative contract is entered other financing costs associated with dilutive
into and are subsequently re-measured at their fair potential equity shares, and

56
 • the weighted average number of additional actuarial valuation involves making various
equity shares that would have been assumptions that may differ from actual
outstanding assuming the conversion of all developments in the future. These include
dilutive potential equity shares. the determination of the discount rate, future
salary increases and mortality rates. Due to
3.17 Significant accounting estimates, judgements the complexities involved in the valuation
and assumptions: and its long term nature, a defined benefit
The preparation of the Entity’s financial statements obligation is highly sensitive to changes in
in conformity with Ind AS requires management to these assumptions. All assumptions are
make judgements, estimates and assumptions that reviewed at each reporting date.
affect the reported amounts of revenues, expenses, c. Allowances for uncollected accounts
assets and liabilities and the accompanying receivable and advances: Impairment is
disclosures, and the disclosure of contingent made on the expected credit loss model,
liabilities. Uncertainty about these assumptions which are the present value of the cash
and estimates could result in outcomes that require shortfall over the expected life of the
a material adjustment to the carrying amount financial assets. The impairment provisions
of assets or liabilities affected in future periods. for financial assets are based on assumption
The estimates and associated assumptions are about the risk of default and expected
based on historical experience and various other loss rates. Judgement in making these
factors that are believed to be reasonable under assumptions and selecting the inputs to the
the circumstances existing when the financial impairment calculation are based on past
statements were prepared. The estimates and history, existing market condition as well as
underlying assumptions are reviewed on an forward looking estimates at the end of each
ongoing basis. Revision to accounting estimates is reporting period.
recognised in the year in which the estimates are
d. Contingencies: Management judgement
revised and in any future year affected.
is required for estimating the possible
In the process of applying the Entity’s accounting outflow of resources, if any, in respect of
policies, management has made the following contingencies/ claim/ litigation against Entity
judgements which have significant effect on the as it is not possible to predict the outcome of
amounts recognised in the financial statements: pending matters with accuracy.
a. Useful lives of property, plant and
3.18 Prudential Norms:
equipment: Determination of the estimated
useful life of tangible assets and the The Company continues to be registered as a Non-
assessment as to which components of Banking Financial Institution (NBFI) classified as a
the cost may be capitalised. Useful life of Loan Company and is therefore required to follow
tangible assets is based on the life specified the Non-Banking Financial (Non-Deposit Accepting
in Schedule II of the Companies Act, 2013 or Holding) Companies Prudential Norms (Reserve
and also as per management estimate for Bank) Directions, 2007 for its NBFC activities
certain category of assets. Assumption also for Systemically Important Non-Deposit Taking
needs to be made, when Entity assesses, Companies.
whether as asset may be capitalised and
Non-performing assets are provided for as per
which components of the cost of the assets
management estimates, subject to the minimum
may be capitalised.
provision as per Non-Banking Financial (Non-
b. Defined benefit plan: The cost of the Deposit Accepting or Holding) Companies
defined benefit gratuity obligation is Prudential Norms (Reserve Bank) Directions, 2007.
determined using actuarial valuations. An

57
Notes to Financial Statements
for the year ended March 31, 2023

4. Cash and Cash Equivalents

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Cash on hand 0.05 0.03

Balance with Banks:
-in Current account 0.29 0.81
-In Fixed Deposits with Bank having original maturity less than 3 months 47,682.21 1,85,085.77
Less: Impairment loss allowance (23.82) (127.15)
Total 47,658.73 1,84,959.45

5 Bank balances other than cash and cash equivalents

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Fixed Deposits with Banks- Maturity more than 3 months 16,41,069.90 11,19,353.07
Less: Impairment loss allowance (407.03) (315.08)
Total 16,40,662.87 11,19,037.99
Note: Fixed deposit earns interest at a fixed interest rate.

6. Loans
(` in lakhs)

As at As at
Particulars
March 31, 2023 March 31, 2022

Carried at amortised cost

Term Loans
(A) Banks-Secured against bookdebts held in trust, by the financing Banks* 17,27,945.37 16,46,655.55
(B) Micro Finance Institutions (MFIs)- Secured against hypothecation of
1,64,740.07 1,08,463.99
bookdebts of MFIs
(C) Non-Banking Financial Company (NBFCs)- Secured against hypothecation
2,30,616.51 2,43,005.72
of bookdebts of NBFCs
(D)Subscription to Pass Through Certificate (PTC) 34,361.19 5,248.65
Total Gross (A) 21,57,663.14 20,03,373.92
Less: Impairment loss allowance (2,996.98) (9,050.55)

Total Net (A) 21,54,666.16 19,94,323.37

(i) Secured by tangible assets 21,57,663.14 20,03,373.92
(ii)Secured by intangible assets - -
(iii) Covered by Bank/Government Guarantees - -
(iv) Unsecured - -
Total Gross (B) 21,57,663.14 20,03,373.92
Less:Impairment loss allowance (2,996.98) (9,050.55)
Total Net (B) 21,54,666.16 19,94,323.37

58
Notes to Financial Statements
for the year ended March 31, 2023

As at As at
Particulars
March 31, 2023 March 31, 2022

Loans in India
(i) Public Sector 15,22,077.50 15,28,811.76
(ii) Others 6,35,585.64 4,74,562.15
Loans outside India - -
Total Gross (C) 21,57,663.14 20,03,373.92
Less:Impairment loss allowance (2,996.98) (9,050.55)
Total Net (C) 21,54,666.16 19,94,323.37
* The banks availing refinance have executed General Refinance Agreement with MUDRA, wherein they are obligated to hold securities
in Trust for the refinance availed.

7. Investments (` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Carried at Amortised Cost

Certificate of Deposits-SIDBI - -
Corporate Deposits - -
Total Gross (A) - -
Less: Impairment loss allowance - -
Total Net (A) - -
Carried at Fair Value through profit and loss (FVTPL)
Mutual Funds (Liquid Schemes) -Unquoted (B) - -
Total (A+B) - -

(i) Investments in India - -

(ii) Investments outside India - -
Total Gross (C) - -
Less: Impairment loss allowance - -
Total Net (C) - -

59
Notes to Financial Statements
for the year ended March 31, 2023

8 Other Financials Assets

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Recoverable From Govt-Interest Subvention Scheme - 148.62

Advance for Staff welfare 4.98 -
Total 4.98 148.62

9 Current Tax Assets (Net)

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Tax Assets
Advance income tax 19,076.65 12,142.82

Tax Liabilities
Provision for current tax (18,233.92) (8,668.04)

Total 842.73 3,474.79

10 Deferred tax assets/(liabilities) (net)

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Deferred tax asset on account of:

Loan upfront fees recognition as per EIR model 475.59 363.47
Expected Credit Loss on Loans and advances 862.71 2,389.14
Impairment Allowance on Investments - -

Deferred tax liability on account of:

Timing difference between tax depreciation and depreciation charged in the
(2.64) (2.34)
books
Fair Valuation of Mutual Fund - -

Net deferred tax assets 1,335.66 2,750.28

60
Notes to Financial Statements
for the year ended March 31, 2023

Note 10(a): Summary of deferred tax assets/(liabilities)

` in lakhs)
As at (Charged)/ As at (Charged)/ As at
Particulars March 31, Credited to March 31, Credited to March 31,
2021 P&L 2022 P&L 2023

Timing difference between tax depreciation

0.77 (3.11) (2.34) (0.31) (2.64)
and depreciation charged in the books
Expected Credit Loss on Loans and advances 2,276.26 112.88 2,389.14 (1,526.43) 862.71
Impairment Allowance on Investments - - - - -
Fair Valuation of Mutual Fund - - - - -
Preliminary Expenses - - - - -
Loan upfront fees recognition as per EIR
257.23 106.24 363.47 112.12 475.59
model

Net deferred tax assets/(liability) 2,534.26 216.02 2,750.28 (1,414.62) 1,335.66

11 Property, Plant and Equipment

(` in lakhs)
Electrical
Office
Particulars Computers Installations Total
Equipments
and Equipment

For the year ended March 31, 2023

Gross Carrying Amount
Cost as at April 01, 2022 1.72 45.85 0.52 48.09
Additions during the year - 2.87 - 2.87
Disposals during the year - - - -
Gross carrying value as at March 31, 2023 1.72 48.72 0.52 50.97

Accumulated Depreciation and impairment

Accumulated Depreciation and impairment as at April
0.99 24.72 0.31 26.02
01, 2022
Depreciation Expenses for the year 0.16 7.54 0.05 7.74
Disposals during the year - - - -
Accumulated depreciation and impairment as of March
1.15 32.26 0.36 33.76
31, 2023
Net carrying amount as at March 31, 2023 0.58 16.47 0.16 17.20

For the period ended March 31, 2022

Gross Carrying Amount
Cost as at April 01, 2021 1.65 25.51 0.52 27.69

61
Notes to Financial Statements
for the year ended March 31, 2023

Electrical
Office
Particulars Computers Installations Total
Equipments
and Equipment

Additions during the year 0.63 20.34 - 20.96

Disposals during the year (0.56) - - (0.56)
Gross carrying value as at March 31, 2022 1.72 45.85 0.52 48.09

Accumulated Depreciation and impairment

Accumulated Depreciation as at April 01, 2021 1.47 22.55 0.26 24.28
Depreciation Expenses for the year 0.05 2.17 0.05 2.27
Disposals during the year (0.53) - - (0.53)
Accumulated depreciation as of March 31, 2022 0.99 24.72 0.31 26.02
Net carrying amount as at March 31, 2022 0.73 21.13 0.21 22.08

12 Other Intangible assets

(` in lakhs)
Computer
Particulars Total
Software

For the year ended March 31, 2023

Gross Carrying Amount
Cost as at April 01, 2022 79.19 79.19
Additions during the year 73.62 73.62
Disposals during the year - -
Gross carrying value as at March 31, 2023 152.81 152.81

Accumulated Amortization and impairment

Accumulated Amortization and impairment as at April 01, 2022 26.64 26.64
Amortization for the year 33.91 33.91
Disposals during the year - -
Accumulated Amortization and impairment as of March 31, 2023 60.55 60.55
Net carrying amount as at March 31, 2023 92.26 92.26

For the period ended March 31, 2022

Gross Carrying Amount
Deemed cost as at April 01, 2021 6.44 6.44
Additions during the year 72.75 72.75
Disposals during the year - -
Gross carrying value as of March 31, 2022 79.19 79.19

62
Notes to Financial Statements
for the year ended March 31, 2023

Computer
Particulars Total
Software

Accumulated Amortization and impairment

Accumulated Amortization and impairment as at April 01, 2021 6.44 6.44
Depreciation Expenses for the year 20.20 20.20
Disposals during the year - -
Accumulated Amortization and impairment as at March 31, 2022 26.64 26.64
Net carrying value as at March 31, 2022 52.55 52.55

13 Other non-financials assets

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Balances with statutory/government authorities 22.54 28.68

Total 22.54 28.68

14 Payables
(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Trade Payables
Total outstanding dues of micro enterprises and small enterprises - -
Total outstanding dues of creditors other than micro enterprises and small
- -
enterprises
Total - -

Other Payables
Total outstanding dues of micro enterprises and small enterprises - -
Total outstanding dues of creditors other than micro enterprises and small
292.33 52.88
enterprises
Total 292.33 52.88
Note (a): There are no Micro, Small and Medium Enterprises, to whom the company owe amount which are outstanding for more than
45 days during the year. The information, as required to be disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the company
regarding the status of the supplier. Further, no interest is outstanding to be paid to any such parties.

63
Notes to Financial Statements
for the year ended March 31, 2023

15 Deposits
(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Carried at amortised cost,

From Banks 35,13,655.66 29,97,274.68
Total 35,13,655.66 29,97,274.68
The company has not accepted any deposit from directors / key management personnel’s. The company have not been guaranteed by
directors or others. Also, the company has not defaulted in repayment of deposits and interest thereon.

16 Other financial liabilities

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Security Deposits 7.93 8.93

Total 7.93 8.93

17 Provisions
(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Short Term Provisions 47.61 76.54

Total 47.61 76.54

18 Other non-financial liabilities

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Statutory dues payable 26.15 57.87

Revenue received in advance 20.00 135.29
Advance Received From Govt. of India - 88.49
Indian Microfinance Equity Fund (IMEF) * - 31,080.75
Total 46.15 31,362.40
* Note: Government of India (GOI) has created “India Microfinance Equity Fund(IMEF)” with SIDBI with a corpus of ₹300 crore. The fund
shall be utilised for extending equity or any other form of capital to Tier-II and Tier-III NBFC MFIs and all Non-NBFC MFIs, with a focus on
smaller socially oriented MFIs with the objective of poverty alleviation and achieving long term sustainability of operations in unserved
and underserved parts of the country. During FY 2019-20 the corpus fund of IMEF has been transferred from SIDBI to MUDRA. The
fund was operated / managed by MUDRA for which 1% per annum administrative fee on the drawn amount charged to the fund and is
received by MUDRA. Further, the inflows and outflows was credited / debited to the fund. The balance in the fund was ₹ 310,80,74,899/-
as on March 31, 2022. The entire fund was transferred back to SIDBI on April 04, 2022

64
Notes to Financial Statements
for the year ended March 31, 2023

19 Equity Share capital

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

a. Authorised Share Capital

5,00,00,00,000 Equity Shares (March 31, 2023: 5,00,00,00,000) of `10 each 5,00,000.00 5,00,000.00
Total 5,00,000.00 5,00,000.00

b. Issued, Subscribed and Paid-up:

1,67,59,25,926 Equity Shares (March 31, 2023: 1,67,59,25,926) of `10 each 1,67,592.59 1,67,592.59
Total 1,67,592.59 1,67,592.59
c. Reconciliation of number of shares outstanding at the beginning and at the end of the year :

As at March 31, 2023 As at March 31, 2022

Particulars
No. of shares Amount No. of shares Amount

Balance at the beginning of the year 1,67,59,25,926 1,67,592.59 1,67,59,25,926 1,67,592.59

Add/(less) : Movement during the year - - - -
Balance at the end of the year 1,67,59,25,926 1,67,592.59 1,67,59,25,926 1,67,592.59
d. Equity Shares in the Company held by each shareholder holding more than 5 per cent shares and the number of
equity shares held are as under

Particulars As at March 31,2023 As at March 31,2022

% of Total Paid- % of Total Paid-
No. of Shares up Equity Share No. of Shares up Equity Share
Capital Capital

Small Industries Development Bank of 1,67,59,25,920 99.9999996% 1,67,59,25,920 99.9999996%

India (SIDBI)
Total 1,67,59,25,920 99.9999996% 1,67,59,25,920 99.9999996%
e. Details of shares held by holding company

As at As at
Particulars
March 31, 2023 March 31, 2022

Small Industries Development Bank of India (SIDBI) 1,67,59,25,920 1,67,59,25,920

Total 1,67,59,25,920 1,67,59,25,920
f. Terms and rights attached to equity shares
The Company has only one class of equity shares having par value of `10 per share. Each holder of equity shares is
entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting (AGM).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of
the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders

g. Bonus Shares
There are no bonus shares issued since inception (Incorporation year 2015-2016 ).

65
Notes to Financial Statements
for the year ended March 31, 2023

h. Details of Shareholding of promoters

% Change
Shares held by promoters at the end of the year
during the year
S. No. of Shares as No. of Shares as %of total
Promoter name
No on 31/03/2023 on 31/03/2022 shares

1 SIDBI 1,67,59,25,920 1,67,59,25,920 99.9999996% -

Ravi Tyagi (Nominee Shareholder
1 1 0.00000006% -
of SIDBI)
Sanjay Goyal (Nominee
3 1 1 0.00000006% -
Shareholder of SIDBI)
Subhransu Sekhar Acharya
4 1 1 0.00000006% -
(Nominee Shareholder of SIDBI)
Sanjay Narayan Singh (Nominee
5 1 1 0.00000006% -
Shareholder of SIDBI)
Vinay Sudhakarrao Hedaoo
6 1 1 0.00000006% -
(Nominee Shareholder of SIDBI)
Yalangi Munni Kumari (Nominee
7 1 1 0.00000006% -
Shareholder of SIDBI)
Total 1,67,59,25,926 1,67,59,25,926 100% -

20 Other Equity
(` in lakhs)
As at As at
Particulars Note
March 31, 2023 March 31, 2022

Securities Premium Reserve (i) 7,407.41 7,407.41

General Reserve (ii) 1,09,500.00 68,000.00
Retained Earnings (iii) 5,440.75 4,350.88
Statutory reserve created u/s 45-IC of Reserve Bank of India Act, 1934 (iv) 33,311.45 21,762.45
Development Fund (v) 200.00 200.00
Impairment Reserve (vi) 7,801.27 6,709.04
Total 1,63,660.87 1,08,429.79
(i) Securities Premium Reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised in accordance
with the provisions of the Companies Act,2013.

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Opening Balance 7,407.41 7,407.41

Movement during the year - -
Closing Balance 7,407.41 7,407.41

66
Notes to Financial Statements
for the year ended March 31, 2023

(ii) General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at
a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that
if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then
compulsory transfer to General reserve at a specified rate was obligatory. Consequent to introduction of Companies
Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance
with the specific requirements of Companies Act, 2013.

(` in lakhs)

As at As at
Particulars
March 31, 2023 March 31, 2022

Balance at the beginning of the year 68,000.00 55,500.00

Movement during the year 41,500.00 12,500.00
Balance at the end of the year 1,09,500.00 68,000.00

(iii) Retained Earnings

Retained earnings represents surplus/accumulated earnings of the Company and are available for distribution to
shareholders

(` in lakhs)

As at As at
Particulars
March 31, 2023 March 31, 2022

Opening Balance 4,350.88 6,520.51

Profit for the year 57,744.98 24,651.12
Transfer to statutory reserve created u/s 45-IC of Reserve Bank of India
(11,549.00) (4,930.22)
Act, 1934
Transfer to Impairment Reserve (1,092.22) (6,709.04)
Transfer to General Reserve (41,500.00) (12,500.00)
Dividends paid (2,513.89) (2,681.48)
Dividend distribution tax - -
Closing Balance 5,440.75 4,350.88

(iv) Statutory reserve created u/s 45-IC of Reserve Bank of India Act, 1934
Statutory Reserve represents the reserve created pursuant to the Reserve Bank of India Act, 1934 (the “RBI Act”). In
terms of Section 45-IC of the RBI Act, a Non-Banking Finance Company is required to transfer an amount not less
than 20 per cent of its net profit to a Reserve Fund before declaring any dividend. Appropriation from this Reserve
Fund is permitted only for the purposes specified by RBI.

(` in lakhs)

As at As at
Particulars
March 31, 2023 March 31, 2022

Opening Balance 21,762.45 16,832.23

Movement during the year 11,549.00 4,930.22
Closing Balance 33,311.45 21,762.45

67
Notes to Financial Statements
for the year ended March 31, 2023

(v) Development Fund

The Company has created Development Fund for the developmental activities

(` in lakhs)

As at As at
Particulars
March 31, 2023 March 31, 2022

Opening Balance 200.00 200.00

Movement during the year - -
Closing Balance 200.00 200.00

(vi) Impairment Reserve


Reserve created in accordance with the Notification No. RBI/2019-20/170 DOR (NBFC).CC.PD.
No.109/22.10.106/2019-20 issued by the Reserve Bank of India (“RBI”) dated March 13, 2020

(` in lakhs)

As at As at
Particulars
March 31, 2023 March 31, 2022

Opening Balance 6,709.04 -

Movement during the year 1,092.22 6,709.04
Closing Balance 7,801.27 6,709.04

21 Interest Income
(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Interest on Loans
(A) Interest on Refinance to Banks 54,162.05 41,938.40
(B) Interest on Refinance to MFIs /NBFC's 19,387.61 9,650.74
Interest Income on Pass Through Certificates 992.78 93.04
Interest on FDRs & CDs 78,074.37 48,240.70
Other interest Income 0.12 0.80
Total 1,52,616.92 99,923.67

22 Fees and commission Income

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Fee income that are recognised over a period 697.23 644.43

Administrative Fee Income on IMEF - 63.25
Administrative Fee Income on interest subvention scheme - 144.95
Total 697.23 852.64

68
Notes to Financial Statements
for the year ended March 31, 2023

23 Net gain on fair value changes (` in lakhs)

For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

(A) Others - -
Mutual Funds at FVTPL 147.49 674.20
Total Net gain on fair value changes 147.49 674.20
Fair Value changes:
Realised 147.49 674.20
Unrealised - -
Total Net gain on fair value changes 147.49 674.20

24 Other Income (` in lakhs)

For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Others 258.39 7.82

Net gain/(loss) on derecognition of property, plant and equipment - (0.01)
Total 258.39 7.81

25 Amortised Finance costs

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Interest on deposits 75,082.86 66,138.65

Total 75,082.86 66,138.65

26 Impairment on financial instruments

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

On Loans Held at Amortised Cost (6,053.58) 333.19

Investments - -
Fixed Deposits including Bank Balance (11.38) 115.32
Total (6,064.96) 448.51
The table below shows the ECL charges on financial instruments for the year recorded in the profit and loss based on
evaluation stage:

Particulars For the year ended March 31, 2023

Stage 1 Stage 2 Stage 3 Total

Debt instruments measured at Amortised

(25.38) - (6,028.19) (6,053.58)
Cost (Loans)
Debt instruments measured at Amortised
- - - -
Cost (Investment)
Debt instruments measured at Amortised
Cost (Fixed Deposit including Bank (11.38) - - (11.38)
Balances)
Total impairment loss (36.77) - (6,028.19) (6,064.96)

69
Notes to Financial Statements
for the year ended March 31, 2023

Particulars For the year ended March 31, 2022

Stage 1 Stage 2 Stage 3 Total

Debt instruments measured at

(228.19) - 561.38 333.19
Amortised Cost (Loans)
Debt instruments measured at
- - - -
Amortised Cost (Investment)
Debt instruments measured at
Amortised Cost (Fixed Deposit including 115.32 - - 115.32
Bank Balances)
Total impairment loss (112.87) - 561.38 448.51

27 Net Loss on de-recognition of financial instruments under amortized cost category

For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Net Loss on de-recognition of financial instruments under amortized

5,132.86 -
cost category
Total 5,132.86 -
During the year an amount of Rs.51,32,85,700.00 of Reliance Commercial Finance Ltd has been written off in the
books.

28 Employee Benefits Expenses

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Salaries and wages 97.24 160.93

Staff welfare expenses 0.02 -
Deputation Cost 865.51 577.81
Total 962.78 738.74

29 Depreciation, amortization and impairment

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Depreciation of property, plant and equipment (Refer Note No. 11) 7.74 2.27
Amortization of intangible assets (Refer Note No. 12) 33.91 20.20
Total 41.65 22.46

70
Notes to Financial Statements
for the year ended March 31, 2023

30 Others expenses
(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Rent,rates and taxes 83.57 91.77

Telephone Expenses 0.02 0.02
Printing and stationery - -
Advertisement and publicity 13.50 5.27
Director’s sitting fees 11.80 14.25
Auditor’s fees and expenses 7.29 6.37
Legal and Professional charges 40.87 151.14
Administrative Expenses 113.72 65.44
Website and Webportal expenses 9.74 4.58
Computer Consumables 0.01 0.40
Processing and monitoring expenses 25.41 25.35
Salary / Wages Paid to Contact Employees 59.33 56.45
Software Maintainace & Hosting Charges 126.19 99.01
Corporate Social Responsibility Expenses (Refer Note 30.2) 673.50 486.87
Subscription of market terminal 3.83 -
Annual Day Celebration Expenses 0.76 -
Total 1,169.53 1,006.92

30.1 Payment to auditor’s

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

(i)Statutory audit of Company 4.35 2.75

(ii) Tax Audit Fess & GST Audit 0.60 0.82
(iii) For Limited Review 2.04 1.80
(iv) Certification Fees 0.30 1.00
Total 7.29 6.37

30.2 Details of corporate social responsibility expenditure:

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Contribution to :
Prime Minister National Relief Fund 673.50 486.87
Accural towards unspent obligations in relation to:
Ongoing project
Other than ongoing project 673.50 486.87
Total
a) Amount required to be spent during the year 673.50 486.87
b) Amount spent during the year ending on :
i) Construction/acquisition of any asset - -
ii) On purposes other than (i) above 673.50 486.87

71
Notes to Financial Statements
for the year ended March 31, 2023

30.3 Details of ongoing CSR projects under Section 135(6) of the Act
(` in lakhs)
Particulars Amount

Balance as at April 01, 2022 with Company -

Balance as at April 01, 2022 in separate CSR Unspent account -
Amount required to be spent during the year -
Amount spent during the year From the Company’s Bank account -
Amount spent during the year From Separate CSR Unspent account -
Balance as at 31 March 2023 With Company -
Balance as at 31 March 2023 In Separate CSR Unspent account -

30.4 Details of CSR expenditure under Section 135(5) of the Act in respect of other than ongoing
projects
(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Balance unspent as at 1st April - -

Amount deposited in Specified Fund of Schedule VII of the Act
- -
within 6 months
Amount required to be spent during the year 673.50 486.87
Amount spent during the year 673.50 486.87
Shortfall at the end of the year - -
Total of previous year shortfall - -
Balance unspent as at 31st March - -

31 Income tax expense

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Current tax
Current tax on profits for the period 18,233.92 8,668.04
Adjustment In respect of prior years 1.81 (0.09)
Total Current Tax 18,235.73 8,667.94
Deferred tax expense
Origination and reversal of temporary differences
1,414.62 (216.02)
(Refer Note 10)
Total deferred tax expense 1,414.62 (216.02)
Total tax expense 19,650.34 8,451.92

72
Notes to Financial Statements
for the year ended March 31, 2023

31.1 The Income Tax expense comprises of Current Tax and Deferred Tax. Current tax is measured at the amount
expected to be paid in respect of taxable income for the year in accordance with Income Tax Act, 1961. The new
Section 115BAA has been inserted in the Income Tax Act, 1961 to give the benefit of a reduced corporate tax
rate for the domestic companies. Section 115BAA states that domestic companies have the option to pay tax at a
rate of 22% from the FY 2019-20 (AY 2020-21) onwards if such domestic companies adhere to certain conditions
specified. The Company has availed the benefit of the same from FY 19-20 onwards and Tax Provision has been
made accordingly in the books of accounts.

31.2 Reconciliation of effective tax rate:

(` in lakhs)
For the year ended For the year ended
Particulars % %
March 31, 2023 March 31, 2022

Profit/(Loss) before tax as per Statement of

77,395.32 33,103.04
profit and loss

Enacted income tax rate in India applicable

to the Company 25.168% (2021-22: 19,478.85 25.17% 8,331.37 25.17%
25.168%)
Tax effect of:
Difference due to differential Tax rates - 0.00% - 0.00%
Prior Period Items 1.81 0.00% (0.09) 0.00%
Others (including provisions) 169.69 0.22% 120.64 0.36%
Total tax expense 19,650.35 8,451.92
Effective tax rate 25.39% 25.39% 25.53% 25.53%

31.3 Amounts recognised directly in equity

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

32 Earnings per share

(` in lakhs)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022

Profit attributable to the equity holders of the company (A)

57,744.98 24,651.12
(` in Lakhs)
Weighted Average number of shares issued for Basic EPS (B) 1,67,59,25,926 1,67,59,25,926
Adjustment for calculation of Diluted EPS ( C) - -
Weighted Average number of shares issued for Diluted EPS (D= B+C) 1,67,59,25,926 1,67,59,25,926
Basic EPS in ` (A/B) 3.45 1.47
Diluted EPS in `(A/D) 3.45 1.47

73
Notes to Financial Statements
for the year ended March 31, 2023

33 Segment Reporting
The Company is engaged in financing activities. It operates in a single business and geographical segment.

34 Contingent liabilities & commitments

(a) The company does not have any Contingent liability as on March 31, 2023 and March 31, 2022
(b) The company has a no capital commitment towards development of intangible capital as on March 31, 2023 and
`0.14 crore as on March 31, 2022.
(c) The company has off-balance sheet exposure of Undisbursed-Sanctioned loans amounting to `230.00 crore as
on March 31, 2023 and `595.00 crore as on March 31, 2022.

35 Employee Benefits
(a) For the employees who are on deputation from Small Industries Development Bank of India (SIDBI), Gratuity,
Leave Encashment and Arrears of Salary are taken care by the employer, who have deputed the employees to
this company. Further, MUDRA has provided an amount of `30.32 lakh (March 2022: `12.18 lakh) to P&L A/c
during the current FY. The same would be paid to SIDBI, when such costs are demanded by SIDBI. With respect
to contract employees there is no post employment benefits which are applicable.

(b) Therefore, no disclosures are required under ‘Ind AS 19- Employees Benefit’ issued under Companies (Indian
Accounting Standards) Rules, 2015’ “

36 Maturity analysis of assets and liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be
recovered or settled. With regard to loans and advances to customers, the company uses the same basis of expected
repayment behaviour as used for estimating the Effective Interest Rate (EIR).

(` in lakhs)
Assets March 31, 2023 March 31, 2022
More than 1 More than 1
Upto 1 Year Total Upto 1 Year Total
Year Year

Financials Assets
Cash and cash
47,658.73 - 47,658.73 1,84,959.45 - 1,84,959.45
equivalents
Bank balances other
than cash and cash 11,44,268.27 4,96,395.00 16,40,663.27 96,854.92 10,22,183.07 11,19,037.99
equivalents
Loans 10,52,531.29 11,02,134.77 21,54,666.06 8,22,080.85 11,72,242.51 19,94,323.37
Investments - - - - - -
Other Financials
4.98 - 4.98 148.61 - 148.61
Assets

74
Notes to Financial Statements
for the year ended March 31, 2023

Non Financials
Assets
Tax Assets (Net) 842.73 - 842.73 3,474.79 - 3,474.79
Deferred Tax Assets
- 1,335.66 1,335.66 - 2,750.28 2,750.28
(Net)
Property, Plant and
- 17.20 17.20 - 22.08 22.08
Equipment
Intangible assets
- - - - - -
under development
Other Intangible
- 92.26 92.26 - 52.55 52.55
assets
Other non-financials
22.54 - 22.54 28.68 - 28.68
assets
Total Assets 22,45,328.54 15,99,974.90 38,45,303.44 11,07,547.30 21,97,250.49 33,04,797.79
(` in lakhs)

Liabilities March 31, 2023 March 31, 2022

More than 1 More than 1
Upto 1 Year Total Upto 1 Year Total
Year Year

Financial Liabilities
Payables
I)Trade payables - - - - - -
II)Other payables 292.33 - 292.33 52.88 - 52.88
Deposits 10,17,975.66 24,95,680.00 35,13,655.66 5,14,687.68 24,82,587.00 29,97,274.68
Other financial
7.93 - 7.93 8.93 - 8.93
liabilities

Non-Financial
Liabilities
Provisions 47.61 - 47.61 76.54 - 76.54
Other non-financial
46.15 - 46.15 31,362.40 - 31,362.40
liabilities
- -
Total Liabilities 10,18,369.68 24,95,680.00 35,14,049.68 5,46,188.42 24,82,587.00 30,28,775.42
Net 12,26,958.86 (8,95,705.10) 3,31,253.77 5,61,358.88 (2,85,336.51) 2,76,022.37

37 Capital Management
The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure
and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of
changes in economic conditions, annual operating plans and long term and other strategic investment plans. In order to
maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue
new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the
objectives, policies or processes for managing capital during the year ended March 31, 2023 and March 31, 2022.The
Company monitors capital using a ratio of ‘adjusted net debt’ to ‘equity’. For this purpose, adjusted net debt is defined
as total liabilities, comprising interest-bearing loans and borrowings less cash and cash equivalents. Equity comprises
all components of equity including share premium and all other equity reserves attributable to the equity share holders.
The Company’s adjusted net debt to equity ratio is as follows.

75
Notes to Financial Statements
for the year ended March 31, 2023

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Deposits 35,13,655.66 29,97,274.68

Less: Cash and cash equivalents including Bank Balances (16,88,321.60) (13,03,997.44)
Adjusted net debt 18,25,334.06 16,93,277.23
Total Equity 3,31,253.47 2,76,022.38
Adjusted net debt to adjusted equity ratio 5.51 6.13

37.1 Regulatory capital

“As per RBI, NBFCs are required to maintain a minimum capital to risk weighted assets ratio (“CRAR”) consisting
of Tier I and Tier II capital of 15% of its aggregate risk weighted assets. Further, the total of Tier II capital cannot
exceed 100% of Tier I capital at any point of time. The capital management process of the Company ensures to
maintain the minimum CRAR at all the times.

The primary objectives of the Company’s capital management policy are to ensure that the Company complies
with capital requirements required by regulator, maintains strong credit ratings and healthy capital ratios in order
to support its business and to maximise shareholder value. The Company manages its capital structure and makes
adjustments to it according to changes in economic conditions and the risk characteristics of its activities.”

As at As at %
Particulars Numerator Denominator
March 31, 2023 March 31, 2022 Variance

Tier 1 capital 3,21,824.28 2,66,310.51

Tier 2 capital 820.68 846.07
Total Capital funds 3,22,644.96 2,67,156.57

Risk weighted assets 4,50,563.66 4,05,474.35

Tier 1 Capital ratio (%) 3,21,824.28 4,50,563.66 71.43 65.68 8.75
Tier 2 Capital ratio (%) 820.68 4,50,563.66 0.18 0.21 (12.71)
Total capital ratio (%) 71.61 65.89 8.68
RBI vide its letter No. DNBR(PD)No. 0026/03.10.001/2015-16 dated July 03, 2015, has approved assigning zero
risk weight to all refinance provided to Scheduled Commercial Banks including RRBs. The above ratios are based on
the same.

Undisbursed sanction amount as at March 31, 2023 is ` 230 crore. (March 31, 2022 ` 595 crore) included while
calculating CRAR

38 Events after reporting date

There have been no events after the reporting date that require disclosure in these financial statements.

39 Net Profit or Loss for the period, prior period items and changes in accounting policies
Since the format of the profit and loss account of applicable NBFCs does not specifically provide for disclosure of
the impact of prior period items on the current year’s profit and loss, such disclosures, wherever warranted, shall be
made in the Note to Accounts (NTA).

76
Notes to Financial Statements
for the year ended March 31, 2023

40 Change in liabilities arising from financing activities

(` in lakhs)
Changes in Exchange March
Particulars April 1,2022 Cash Flows Other
fair values difference 31,2023

Deposits 29,97,274.68 5,16,380.98 - - - 35,13,655.66

Total liabilities from
29,97,274.68 5,16,380.98 - - - 35,13,655.66
financing activities
(` in lakhs)
Changes in Exchange March
Particulars April 1, 2021 Cash Flows Other
fair values difference 31,2022

Deposits 20,08,417.37 9,88,857.31 - - - 29,97,274.68

Total liabilities from
20,08,417.37 9,88,857.31 - - - 29,97,274.68
financing activities

41 Related Party Disclosures

A. Names of related parties and nature of relationship:

Description of relationship Name of the related party

Holding Company Small Industries Development Bank of India (SIDBI)
Shri Aalok Gupta - MD & CEO (Till August, 2021)
Shri Anjani Kumar Srivastava, CFO (Till August 2021)
Shri Vinay Hedaoo ,MD & CEO (Since August 2021)
Key Management Personnel Shri Amitabh Misra, CFO (Till May 2022)
(KMP) Shri Rishi Dwivedi, CFO (Since May 2022 till October 2022)
Shri Rajesh D. Kale, CFO (Since November 2022)
Shri Vishnu Kumar Sah (Since March 2023)
Ms. Pooja Kukreti - Company Secretary (CS) (Till November 2022)
Shri Suchindra Misra - Nominee Director of Department of Financial Services
(DFS) (Till January 2022)
Shri Vasantha Rao Satya Venkata Rao, Deputy Managing Director of Holding
Company (Since June 2020)
Shri Arvind kumar Jain, Non-Executive Director (Till February 2023)
Smt Smita Affinwala, Non-Executive Director (Since June 2020)
Related Party
Shri Sudatta Mandal, Deputy Managing Director of Holding Company (Since May
2021)
Shri Mukesh Kumar Bansal (Since November 2022)
Shri Sadhu V.Sastry (Since February 2023)
Shri Sivasubramanian Ramann, Chairman SIDBI, (Since April 2021)
Shri Bhushan Kumar Sinha (Till November 2022)

77
Notes to Financial Statements
for the year ended March 31, 2023

B. Details of related party transactions:

(` in lakhs)
Name of the related For the year ended For the year ended
Nature of Transaction
party March 31, 2023 March 31, 2022

Reimbursement made for Salary 782.64 559.67

Rent paid for Office - Expense 91.09 91.77
Dividend Paid 2,513.89 2,681.48
Holding Company Reimbursement of Other Expenses 83.85 19.43
Administrative fees on Interest Subvention
- 63.25
Scheme on MUDRA Sishu Loan (Income)
Total 3,471.47 3,415.60
Salary / Remuneration paid to
Aalok Gupta, MD & CEO (Till August 2021) - 64.06
Vinay Hedaoo ,MD & CEO (Since August
103.67 32.19
2021)
Anjani Kumar Srivastava, CFO
- 22.75
(Till August 2021)
Key Management
Rajesh D Kale, CFO ( Since November 2022) 36.41 -
Personnel (KMP)
Rishi Dwiwedi, CFO (Since May 2022 Till
28.23 -
October 2022)
Amitabh Misra, CFO ( August 2021 Till May
10.00 29.78
2022)
Pooja Kukreti, Company Secretary (Till
11.36 11.48
November 03, 2022)
Sitting Fees paid to
Related Party Arvind kumar Jain, Non-Executive Director 5.55 7.75
Transactions Sadhu V.Sastry, Non-Executive Director 1.25 -
Smita Affinwala, Non-Executive Director 5.00 6.50
C. Details of balances outstanding for related party transactions:
(` in lakhs)
As at As at
Name of the related party Nature of Transaction
March 31, 2023 March 31, 2022

Expense Payable 222.98 31.51

D. The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year-end are unsecured and settlement occurs in cash. This assessment is undertaken
each financial year through examining the financial position of the related party and the market in which the related
party operates.

78
 Notes to Financial Statements
for the year ended March 31, 2023

42 FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT

A. Classification of financial assets and financial liabilities:
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value
hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is
a reasonable approximation of fair value.

(` in lakhs)
Carrying Amount Fair Value
Fair value
Financial Assets and Fair value
through
Liabilities through other Amortised
profit Total Level 1 Level 2 Level 3 Total
as at March 31, 2023 comprehensive Cost
and loss
Income
account

Financial Assets -
Cash and cash
- - 47,658.73 47,658.73 - - 47,658.73 47,658.73
equivalents
Bank balances other
than cash and cash - - 16,40,662.87 16,40,662.87 - - 16,40,662.87 16,40,662.87
equivalents
Loans - - 21,54,666.16 21,54,666.16 - - 21,54,666.16 21,54,666.16
Investments - - - - - - - -
Other Financials Assets - - 4.98 4.98 - - 4.98 4.98
- - 38,42,992.74 38,42,992.74 - - 38,42,992.74 38,42,992.74
Financial Liabilities
Payables - -
Trade payables - - - - - - - -
Other payables - - 292.33 292.33 - - 292.33 292.33
Deposits - - 35,13,655.66 35,13,655.66 - - 35,13,655.66 35,13,655.66
Other financial liabilities - - 7.93 7.93 - - 7.93 7.93
- - 35,13,955.92 35,13,955.92 - - 35,13,955.92 35,13,955.92
During the reporting period ending March 31, 2023, there were no transfers between Level 1 and Level 2 fair value measurements.

79
80
Notes to Financial Statements
for the year ended March 31, 2023

(` in lakhs)
Carrying Amount Fair Value
Fair value
Financial Assets and Fair value
through
Liabilities as at March through other Amortised
profit Total Level 1 Level 2 Level 3 Total
31, 2022 comprehensive Cost
and loss
Income
account

Financial Assets -
Cash and cash
- - 1,84,959.45 1,84,959.45 - - 1,84,959.45 1,84,959.45
equivalents
Bank balances other
than cash and cash - - 11,19,037.99 11,19,037.99 - - 11,19,037.99 11,19,037.99
equivalents
Loans - - 19,94,323.37 19,94,323.37 - - 19,94,323.37 19,94,323.37
Investments - - - - - - - -
Other Financials Assets - - 148.61 148.61 - - 148.61 148.61
- - 32,98,469.42 32,98,469.42 - - 32,98,469.42 32,98,469.42
Financial Liabilities
Payables
Trade payables - - - - - - - -
Other payables - - 52.88 52.88 - - 52.88 52.88
Deposits - - 29,97,274.68 29,97,274.68 - - 29,97,274.68 29,97,274.68
Other financial liabilities - - 8.93 8.93 - - 8.93 8.93
- - 29,97,336.49 29,97,336.49 - - 29,97,336.49 29,97,336.49
During the reporting period ending March 31, 2022, there were no transfers between Level 1 and Level 2 fair value measurements.
Notes to Financial Statements
for the year ended March 31, 2023

B. Measurement of fair value

The following methods and assumptions were used to estimate the fair values:

a. The carrying amounts of cash equivalent including other current bank balances,other receivables and other financial
liabilities including trade and other payables , etc. are considered to be the same as their fair values, due to current
and short term nature of such balances.

b. Financial instruments with fixed interest rates are evaluated by the company based on parameters such as interest
rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances if required, are taken
to account for expected losses of these instruments.Thus, Amortised cost shown in A, above, is after adjusting ECL
amount.

c. These are classified as Level 3 fair value hierarchy due to inclusion of unobservable inputs including counter party
credit risk.

C. Fair Value Hierarchy

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

Level 1 : Level 1 hierarchy includes financial instruments measured using unadjusted quoted prices in active markets that
the Company has the ability to access for the identical assets or liabilities. A financial instrument is classified as a Level 1
measurement if it is listed on an exchange. This includes listed equity instruments, traded bonds and mutual funds that
have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is
valued using the closing price as at the reporting period. The mutual funds are valued at the closing NAV.Level 1: Level
1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and
mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is
valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in active markets is determined using valuation
techniques which maximize the use of observable market data either directly or indirectly, such as quoted prices for
similar assets and liabilities in active markets, for substantially the full term of the financial instrument but do not qualify
as Level 1 inputs. If all significant inputs required to fair value an instrument are observable the instrument is included in
level 2.

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

43 Financial Risk Management

The company has in place comprehensive risk management policy in order to identify measure, monitor and mitigate
various risks pertaining to its business. Along with the risk management policy, an adequate internal control system,
commensurate to the size and complexity of its business, is maintained to align with the philosophy of the company.
Together they help in achieving the business goals and objectives consistent with the company’s strategies to
prevent inconsistencies and gaps between its policies and practices. The Board of Directors/committees reviews the
adequacy and effectiveness of the risk management policy and internal control system. The company’s financial risk
management is an integral part of how to plan and execute its business strategies.

81
Notes to Financial Statements
for the year ended March 31, 2023

The Company, through its training and management standards and procedures, aims to maintain a disciplined and
constructive control environment in which all employees understand their roles and obligations. The audit committee
is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.

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

• Credit risk

• Liquidity risk and

• Market risk

(A) Credit Risk

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

i. Loans and financial assets measured at amortized cost

An impairment analysis is performed at each reporting date.

Impairment loss has been calculated based on Exposure at Default (EAD)* Probability of Default (PDs)* Loss
given Default (LGDs).

Internal rating model incorporates both qualitative and quantitative information and, in addition to information
specific to the borrower, utilise supplemental external information that could affect the borrower’s behaviour.

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

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

82
Notes to Financial Statements
for the year ended March 31, 2023

Loans (including undrawn committed line of credit)

The ageing analysis of loans (gross of provision) has been considered from the date the contractual payment
falls due -

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

0-30 Days Past Due 21,78,486.85 20,54,669.57

30-90 Days Past due - -
More than 90 Days Past Due 2,176.29 8,204.35
Total 21,80,663.14 20,62,873.92

The following table summarizes the changes in loss allowances measured using expected credit loss model -

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Opening Provision 9,050.55 8,717.36

Provision/(Reversal) during the year (6,053.58) 333.19
Total 2,996.97 9,050.55

Investment measured at amortised Cost

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

No significant increase in credit risk - -

Significant increase in credit risk - -
Defaulted Portfolio - -
Total - -
The following table summarizes the changes in loss allowances measured using life time expected credit loss
model -

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Opening Provision - -
Provision during the year - -
Reversal of provision - -
Total - -

83
Notes to Financial Statements
for the year ended March 31, 2023

ii. Cash and bank balances

The Company held cash and cash equivalent and other bank balance of ` 16,88,321.60 lakhs at March 31, 2023
(March 31, 2022: ` 13,03,997.44 lakhs). The same are held with bank and financial institution counterparties
with good credit rating.

Fixed Deposits measured at amortised Cost

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

No significant increase in credit risk 16,88,752.11 13,04,438.84

Significant increase in credit risk - -
Defaulted Portfolio - -
Total 16,88,752.11 13,04,438.84
The following table summarizes the changes in loss allowances measured using life time expected credit loss
model -

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Opening Provision 442.23 326.91

Provision during the year - 115.32
Reversal of provision (11.38) -
Total 430.85 442.23
iii. Others

Apart from loans and fixed deposits measured at amortised cost the company has no other financial assets
which carries any significant credit risk.

(B) Liquidity risk

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

84
Notes to Financial Statements
for the year ended March 31, 2023

its liquidity risk management strategy and sets the overall policy and risk tolerances.

(i) Maturities of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts
are gross and undiscounted, and include contractual interest payments.

(` in lakhs)
Contractual maturities of financial
More than
liabilities 1 year or less 1-3 years Total
3 years
March 31, 2023

Deposits 10,17,975.66 24,95,680.00 - 35,13,655.66

Other Payables 292.33 - - 292.33
Other financial liabilities 7.93 - - 7.93
Total 10,18,275.92 24,95,680.00 - 35,13,955.92

(` in lakhs)
Contractual maturities of financial
More than
liabilities 1 year or less 1-3 years Total
3 years
March 31, 2022

Deposits 5,14,687.68 24,82,587.00 - 29,97,274.68

Other Payables 52.88 - - 52.88
Other financial liabilities 8.93 - - 8.93
Total 5,14,749.49 24,82,587.00 - 29,97,336.49
(C) Market Risk
Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will
affect the company’s income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.The company’s
exposure to, and management of, these risks is explained below.

(i) Foreign currency risk

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

(ii) Interest rate risk

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

85
Notes to Financial Statements
for the year ended March 31, 2023

Exposure to Interest rate risk

The interest rate profile of the Company’s interest bearing financials instruments as reported to the management of the
Company is as follows:

(` in lakhs)
As at As at
Particulars
March 31, 2023 March 31, 2022

Fixed-rate instruments
Financial Liabilities
Borrowings 35,13,655.66 29,97,274.68
Financial Assets
Fixed Deposits 16,88,321.26 13,03,996.60
Total net (18,25,334.40) (16,93,278.07)
Fair value sensitivity analysis for fixed-rate instruments
The Company’s fixed rate instruments are carried at amortised cost and are not measured for interest rate risk, as neither
the carrying amount nor the future cash flows will fluctuate because of changes in market interest rates.

(iii) Price Risk

The company’s exposure to mutual fund price risk arises from investments held by the company and classified in the
balance sheet at fair value through profit or loss. Since the mutual fund are highly liquid debt oriented funds company
does not have a material price risk exposure.

43.1 Previous Year Regrouping

Figures for the previous year have been regrouped/reclassified/rearranged wherever necessary to make them
comparable to those for the current year.

43.2 Ratios
Current Previous
Ratio Numerator Denominator Variance Remarks
Period Period
Current Ratio 22,44,463.27 10,18,275.92 2.20 2.14 2.78% -
Debt-Equity Ratio 35,13,655.66 3,31,253.47 10.61 10.86 -2.32% -
Increased as the
Return on Equity
57,744.98 3,31,253.47 17.43% 8.93% 95.19% profit increase
Ratio
during FY 2023.
Net Capital Turnover Increase in income
1,53,314.15 3,31,253.47 0.46 0.37 26.77%
Ratio during current FY.
Increase in PAT
Net Profit Ratio 57,744.98 1,53,314.15 37.66% 24.46% 53.98% during FY 2023 as
income increased.
Return on Capital Increase in income
77,395.32 28,27,027.23 2.74% 1.19% 130.74%
Employed during current FY.
Increased in PAT
Return on
57,744.98 2,82,533.34 20.44% 10.27% 98.94% during current
Investment
year.

86
Notes to Financial Statements
for the year ended March 31, 2023

Explanation:
1 Net Income is Profit for the year after tax
2 Equity includes (a) Equity Share Capital and (b) Other Equity
3 Debt Service Coverage Ratio, Inventory turnover ratio,Trade Receivables turnover ratio, Trade payables turnover
ratio, are not applicable to the Company.
Additional disclosures required by the Reserve Bank of India

44: Capital to Risk-Assets Ratio (CRAR)

Particulars March 31, 2023 March 31, 2022

CRAR (%)* 71.61 65.89

CRAR - Tier I capital (%) 71.43 65.68
CRAR - Tier II capital (%) 0.18 0.21
Amount of subordinate debt raised as Tier II Capital (`) -
Amount received on issue of Perpetual Debt Instrument (`) -
RBI vide its letter No. DNBR(PD)No. 0026/03.10.001/2015-16 dated July 03, 2015, has approved assigning zero risk weight to all
refinance provided to Scheduled Commercial Banks including RRBs. The above ratios are based on the same.

* Undisbursed sanction amount as at March 31, 2023 is ` 230 crore.(March 31, 2022 `595 crore) included while calculating CRAR

Note 44.1 Details of calculation for Capital to Risk-Assets Ratio (CRAR)

Current Previous % Reason for Variance

Ratio Numerator Denominator
Period Period Variance (if above 25%)
Capital to risk-weighted
3,226.45 4,505.64 71.61 65.89 8.68 NA
assets ratio (CRAR)
Tier I CRAR 3,218.24 4,505.64 71.43 65.68 8.75 NA
Tier II CRAR 8.21 4,505.64 0.18 0.21 -12.71 NA
Liquidity Coverage Ratio NA NA NA NA NA NA

45: Exposure to Real Estate Sector and Capital Market

(a) The company has no exposure to Real Estate Sector for the current year and previous year

(b) The company has no exposure to the Capital Market for the current year and previous year

87
88
Notes to Financial Statements
for the year ended March 31, 2023

46: Asset Liability Management

(` in crore)

Over 1 Over 2 Over 3 Over 3

Particulars 15 days Over 6 Over 1
1 to 7 8 to 14 month month month years Over 5
As at March 31, to 30 month to yr upto 3 Total
days days upto 2 upto 3 upto 6 upto 5 years
2023 days 1 year years
months months month years
Deposits* 461.41 15.18 - - 1,104.96 5,249.97 5,087.75 4,963.95 - - 16,883.22
Advances# - 260.03 21.11 376.95 799.17 3,428.70 5,639.36 11,019.48 1.87 - 21,546.66
Investments - - - - - - - - - - -
Borrowings ** 227.11 - - - 20.40 4,979.60 4,952.65 24,956.80 - - 35,136.56
Foreign Currency
- - - - - - - - - - -
Assets
Foreign Currency
- - - - - - - - - - -
Liabilities
* Deposits include Fixed deposits placed with Banks
# Advances shown here is netted off of those assets, which 100% provision has been made
** Borrowings include amount received from banks under Priority Sector Shortfalls Fund as allocated by Reserve Bank of India
Notes to Financial Statements
for the year ended March 31, 2023

47: Details of Registration with Financial Regulators

Regulator Registration No.

Ministry of Company Affairs CIN U65100MH2015PLC274695
Reserve Bank of India N-13.02124
Note: There are no penalties imposed by RBI or any other regulators during the current and previous year

48: Investments
(` in crore)
S. No. Particulars March 31, 2023 March 31, 2022
1 Value of Investments
Gross Value of Investments
In India - -
Outside India - -
- -
Provision for depreciation
In India - -
Outside India - -
- -
Net Value of Investments
In India - -
Outside India - -

2 Movement of provision held towards depreciation on investments

Opening Balance - -
Add: Provision made during the year - -
Less: Write off / write back of excess provision during the year - -
Closing Balance - -

49: Provisions & Contingencies made during the year

(` in crore)

S. No. Particulars March 31, 2023 March 31, 2022

Break up of 'Provisions and Contingencies' shown under the head
Expenditure in Profit and Loss Account:
1 Impairment loss on Investments and Deposits (0.11) 1.15
2 Impairment loss on loans and other receivables (60.54) 3.33
3 Provision towards Current Income tax 182.36 86.68
4 Other Provision and Contingencies (with details) - -
5 Provision towards Deferred Tax Assets 14.15 (2.16)

50: Derivatives
The company has no transaction / exposure in Forward Rate Agreement / Interest Rate Swap and Exchange Traded
Interest Rate (IR) Derivatives during the current and previous year.

89
Notes to Financial Statements
for the year ended March 31, 2023

The company has no unhedged foreign currency exposure during the current and previous year.

The company has no repo transactions during the current and previous year.

51: Disclosures relating to securitisation

1. There are no SPVs sponsored by the NBFC for securitisation transactions for the current and previous year; and
Hence,

(a) there is no amount of securitised assets as per books of the SPVs sponsored.

(b) there is no amount of exposure retained by the NBFC to comply with MRR as on the date of balance sheet

2. The company has no exposure to securitization transactions other than MRR in the current year and previous
year

3. The company has not sold any Financial Assets to Securitization / Reconstruction Company for Asset
Reconstruction during the current and previous year.

4. The company has not undertaken any assignment transaction during the current and previous year.

5. The company has not purchased/sold any non-performing financial assets during the current and previous year.

52: Details of financial assets sold to securitisation / reconstruction company for asset reconstruction
The Company has not sold financial assets to securitisation / reconstruction company for asset reconstruction in the
current and previous year.

53: Details of non performing financial assets purchased / sold

The Company has not purchased / sold non performing financial assets in the current and previous year.

54: Details of financing of parent Company products

The Company has not financed any products of its Parent Company in the current and previous year.

55: Unsecured Advances

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

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

57: Draw down from Reserves

There has been no draw down from reserves during the current and previous year.

90
Notes to Financial Statements
for the year ended March 31, 2023

58: Information on Net Interest Margin

Particulars March 31, 2023 March 31, 2022

Average interest (a) 4.69% 3.42%
Average effective cost of borrowing (b) 2.71% 2.27%
Net Interest Margin (a-b) 1.99% 1.15%

59: Customer Complaints

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

60: Sector wise NPAs & Movement of NPAs

A) Sector wise NPAs (` in Crore)

Year Ended 31 March 2023 Year Ended 31 March 2022

% of NPA to Total advance in % of NPA to Total advance
Particulars
that sector. in that sector.
Agriculture & allied activities - -
MSME - -
Corporate Borrowers * 0.10% 0.41%
Services - -
Unsecured Personal Loans - -
Auto Loans - -
Other Personal Loans - -
* Corporate borrower includes advances to Banks,
NBFCs, MFIs.

91
Notes to Financial Statements
for the year ended March 31, 2023

B) Movement of NPAs

Year Ended 31 Year Ended 31

Particulars
March 2023 March 2022
i) Net NPAs to Net Advances (%) 0.00% 0.00%
ii) Movement of NPAs (Gross)*
a) Opening balance 82.04 76.37
b) Additions during the year - 5.67
c) Reductions during the year 60.28 -
d) Closing balance 21.76 82.04
iii) Movement of NPAs (Net)*
a) Opening balance - -
b) Additions during the year - 5.67
c) Reductions during the year - 5.67
d) Closing balance - -
iv) Movement of provisions for NPAs (excludings provisions on
standard assets)*
a) Opening balance 82.04 76.37
b) Provisions made during the year - 5.67
c) Write off/ write back of excess provisions 60.28 -
d) Closing balance 21.76 82.04
* includes non performing (Stage 3) investments

61: Ratings assigned by Credit Rating Agencies

The Company has been assigned the rating of “IND AAA/Stable” by India Ratings and Research Pvt Ltd during March
2022 for Long Term Loan of ` 2000 crore. The fresh rating undertaken during April 2023 by India Rating and Research
Pvt. Ltd. and rating is assigned as “IND AAA/Stable”.

62: Concentration of Advances, Exposures and NPA’s

(` in Crore)

S. No. Particulars March 31, 2023 March 31, 2022

1 Total Advances of twenty largest borrowers * 18,174.81 18,139.80
2 Total Advances of top four NPA accounts (Gross) 21.76 80.74
Percentage of Advances of twenty largest borrowers to all
3 96.17% 90.52%
Advances of banks and MFIs.
*The amount of borrowers do not include Undisbursed Sanction loan amount.

S. No. Particulars March 31, 2023 March 31, 2022

1 Total Advances and Exposures of twenty largest borrowers * 34,276.63 30,309.25
2 Total Exposure of top four NPA accounts 21.76 80.74
Percentage of Advances and Exposures of twenty largest
3 90.13% 90.46%
borrowers to all Advances of banks and MFIs.

92
Notes to Financial Statements
for the year ended March 31, 2023

*The amount of borrowers includes Undisbursed Sanction loan amount.

63: Remuneration of Directors

All pecuniary relationship or transactions of the non-executive directors vis-à-vis the company shall be disclosed in
the Annual Report.

64: Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)
The Company does not have Overseas assets during the current year and previous year.

65 Disclosure related to Schedule to the balance sheet of company, as required by Annex IV of the Master Direction-
Non-Banking Finance Company - Systemically Important Non-Deposit taking Company and Deposit taking
Company (Reserve Bank) Directions, 2016 issued by the Reserve Bank of India (“RBI”) vide their Notification No.
RBI/DNBR/2016-17/45 Master Direction DNBR. PD. 008/03.10.119/2016-17 updated on February 17, 2020 (the
“Notification)

Amount Outstanding Amount Overdue

Particulars
(` In Crore) (` In Crore)
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Liabilities Side :
Loans and advances availed
by the non-banking financial
65.1
company inclusive of interest
accrued thereon but not paid:
a) Debentures :
i) Secured - - - -
ii) Unsecured (other than
falling within the meaning of - - - -
public deposits)
b) Deferred Credits - - - -
Term Loans (Priority Sector
c) Shortfall Fund deposited by 35,136.56 29,972.75 - -
Banks)
Inter-corporate loans and
d) - - - -
borrowing
e) Commercial Paper - - - -
f) Public Deposits - - - -
g) Other Loan - - - -

Break-up of 1(f) above

(Outstanding public deposits
65.2
inclusive of interest accrued
thereon but not paid):
In the form of Unsecured
a) - - - -
debentures

93
Notes to Financial Statements
for the year ended March 31, 2023

Amount Outstanding Amount Overdue

Particulars
(` In Crore) (` In Crore)
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
In the form of partly secured
debentures i.e. debentures
b) - - - -
where there is no shortfall in
the value of security
c) Other public deposits - - - -

Assets Side :

Break-up of Loans and

Advances including bills
65.3
receivables [other than those
included in (4) below] :
a) Secured 21,546.66 19,943.23 - -
b) Unsecured - - - -

Break up of Leased Assets

and stock on hire and other
65.4
assets counting towards AFC
activities
Lease assets including lease
a)
rentals under sundry debtors
i) Financial lease - - - -
ii) Operating lease - - - -

Stock on hire including hire

b)
charges under sundry debtors
i) Assets on hire - - -
ii) Repossessed Assets - - -
Other loans counting towards
c) - - -
AFC activities
Loans where assets have
i) - - - -
been repossessed
ii) Loans other than (i) above - - - -

65.5 Break-up of Investments :

Current Investments :
a) Quoted :
i) Shares : A. Equity - - - -
B. Preference - - - -
ii) Debentures and Bonds - - - -
iii) Units of mutual funds - - - -
iv) Government Securities - - - -
v) Others (Please Specify) - - - -

b) Unquoted :

94
Notes to Financial Statements
for the year ended March 31, 2023

Amount Outstanding Amount Overdue

Particulars
(` In Crore) (` In Crore)
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
i) Shares : A. Equity - - - -
B. Preference - - - -
ii) Debentures and Bonds - - - -
iii) Units of mutual funds - - - -
iv) Government Securities - - - -
Others- Certificate of deposit
v) - - - -
& Corporate Deposits

Long Term investments :

a) Quoted :
i) Shares : A. Equity - - - -
B. Preference - - - -
ii) Debentures and Bonds - - - -
iii) Units of mutual funds - - - -
iv) Government Securities - - - -
v) Others-(Please specify) - - - -

b) Unquoted :
i) Shares : A. Equity - - - -
B. Preference - - - -
ii) Debentures and Bonds - - - -
iii) Units of mutual funds - - - -
iv) Government Securities - - - -
v) Others - - - -

65.6 Borrower group-wise classification of assets financed as in (65.3) and (65.4) above :

(Amount ` in crores)

Secured Unsecured Total

Category March 31, March 31, March 31, March 31, March 31, March 31,
2023 2022 2023 2022 2023 2022
(Amount net of provisions)
a) Related Parties - - - - - -
i) Subsidiaries - - - - - -
ii) Companies in the same - - - - - -
group
iii) Other related parties - - - - - -
b) Other than related 21,546.66 19,943.23 - - 21,546.66 19,943.23
parties
Total 21,546.66 19,943.23 - - 21,546.66 19,943.23

95
Notes to Financial Statements
for the year ended March 31, 2023

65.7 Investor group-wise classification of all investments (current and long term) in shares and securities
(both quoted and unquoted):
(` in Crore)

Market Value / Break up Book Value

Category
or fair value or NAV (Net of Provisions)
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
a) Related Parties
i) Subsidiaries - - - -
Companies in the same
ii) - - - -
group
iii) Other related parties - - - -
b) Other than related parties - - - -
Total - - - -

65.8 Other information

(` in Crore)
Amount Amount
Particulars
March 31, 2023 March 31, 2022

a) Gross Non-Performing Assets

i) Related parties - -
ii) Other than related parties 21.76 82.04
b) Net Non-Performing Assets
i) Related parties - -
ii) Other than related parties - -
c) Assets acquired in satisfaction of debt - -

96
Notes to Financial Statements
for the year ended March 31, 2023

66 Disclosure related to Schedule to the balance sheet of company, as required by Annex of the Notification No.
RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 issued by the Reserve Bank of India (“RBI”)
dated March 13, 2020

(` in Crore)
Loss Difference
Asset Gross Allowances Provisions between
Asset
classification Carrying (Provisions) Net Carrying required as Ind AS 109
Classification as
as per Ind AS Amount as as required Amount per IRACP provisions
per RBI Norms
109 per Ind AS under Ind AS norms and IRACP
109 norms
(1) (2) (3) (4) (5) = (3)-(4) (6) (7) = (4) - (6)
Performing Assets
Standard Stage 1 21,554.87 8.21 21,546.66 86.22 (78.01)
Stage 2 - - - - -
Subtotal 21,554.87 8.21 21,546.66 86.22 (78.01)
Non -Performing
Assets
Substandard Stage 3 - - - - -
Doubtful - up to 1
Stage 3 - - - - -
year
1 to 3 years Stage 3 17.68 17.68 - 17.68 -
More than 3 years Stage 3 4.08 4.08 - 4.08 -
Subtotal for
21.76 21.76 - 21.76 -
doubtful
Loss Stage 3 - - - - -
Subtotal for NPA 21.76 21.76 - 21.76 -
Other items such
as guarantees, loan
Stage 1
commitments, etc. - - - -
which are in the
scope of Ind AS 109
but not covered
under current
Stage 2 - - - -
Income Recognition,
Asset Classification
and Provisioning Stage 3 - - - -
(IRACP) norms
Stage 1 21,554.87 8.21 21,546.66 86.22 (78.01)
Total Stage 2 - - - - -
Stage 3 21.76 21.76 - 21.76 -
Total 21,576.63 29.97 21,546.66 107.98 (78.01)

Note: Performing Assets and Non-performing Assets include Investments and advances.

97
Notes to Financial Statements
for the year ended March 31, 2023

67 COVID-19 Regulatory Package - Disclosure in terms of RBI circular dated April 17, 2020:
(` in Crore)
As at As at
Particulars
March 31, 2023 March 31, 2022

(i) Respective amounts in SMA/overdue categories, where the moratorium/

NIL NIL
deferment was extended
(ii) Respective amount where asset classification benefits is extended NIL NIL
(iii) Provisions made during the year NIL NIL
(iv) Provisions adjusted during the respective accounting periods against
NIL NIL
slippages and the residual provisions

68 Related Party Disclosures

All material transactions with related parties are reflected in Note No.40

69 Information in terms of Chapter II paragraph 5 of Monitoring of Frauds in NBFCs (RBI’s Directions),

2016 :
(` in Crore)
As at As at
Particulars
March 31, 2023 March 31, 2022

(i) No. of cases of fraud which occurred during the year (nos) 1 -
(ii) Amount involved 4.36 -
(iii) Amount Recovered - -
(iv) Amount Provided/ Loss 4.36 -

70 Disclosure of Restructured Accounts as required under RBI Guidelines under reference DNBS.
CO.PD.No.367/03.10.01/2013-14: NIL

71 Public disclosure on liquidity risk as on March 31, 2023 in accordance with RBI circular no. RBI/2019-20 /88 DOR.
NBFC (PD) CC. No.102/03.10.001/2019- 20 dated November 04, 2019 on Liquidity Risk Management Framework
for Non-Banking Financial Companies and Core Investment Companies

A: Liquidity Coverage Ratio (LCR) Disclosure

RBI vide its letter No.DoR (NBFC).PD.CO. No. 29 /03.10.111/2020-21 dated August 26, 2020, has exempted
MUDRA from applicability of Liquidity Coverage Ratio (LCR) vide RBI circular No. DoR. NBFC (PD) CC. No.
102/03.10.001/2019-20 dated November 04, 2019.

B: Public Disclosure on Liquidity Risk

(i) Funding Concentration based on significant counterparty (both Deposits and Borrowings)

Number of Significant
Amount (Rs Crore) % of Total deposits % of Total Liabilities
Counterparties
14 32570.99 Not Applicable 92.69%

98
Notes to Financial Statements
for the year ended March 31, 2023

(ii) Top 20 large deposits (amount in Rs. crore and % of total deposits)
Not Applicable. The Company being a Systematically Important Non-Deposit taking Non-Banking Financial
Company registered with Reserve Bank of India does not accept any public deposits.

(iii) Top 10 Borrowings (amount in Rs. crore and % of total borrowings)

Amount (Rs Crore) % of Total Borrowings

30905.20 87.96%

(iv) Funding Concentration based on significant instrument/product

Sr No. Name of the instrument/ product Amount (Rs Crore) % of Total Liabilities
1 Borrowings (Refinance corpus allocated by RBI) 35,136.56 99.99%

(v) Stock Ratios

Sr No. Particulars Ratio

1 a) Commercial Papers to Public Funds Not Applicable
b) Commercial Papers to Total Liabilities Not Applicable
c) Commercial Papers to Total Assets Not Applicable
a) Non-convertible debentures (original maturity of less than one year) to Total
2 Not Applicable
Public Funds
b) Non-convertible debentures (original maturity of less than one year) to Total
Not Applicable
Liabilities
c) Non-convertible debentures (original maturity of less than one year) to Total
Not Applicable
Assets
3 a) Other short-term liabilities to Total Public Funds Not Applicable
b) Other short-term liabilities to Total Liabilities 28.98%
c) Other short-term liabilities to Total Assets 26.48%

Notes:
1) Total Liabilities refer to Total outside liabilities i.e. Balance sheet total excluding Equity Share Capital and Reserves
2) Other Short-term liabilities include Financial Liabilities and non-financial liabilities payable within a year
3) Other Short-term liabilities are other than Commercial Paper and Non-Convertible Debentures

vi) Institutional set-up for liquidity risk management

The Company has an Asset Liability Management Committee (ALCO). The ALCO meetings are held at
periodic intervals. At the Apex level, the Risk Management Committee (RiMC), a sub-committee of the Board
of Directors of the Company, oversees the liquidity risk management. The RiMC subsequently updates the
Board of Directors on the same.

99
Notes to Financial Statements
for the year ended March 31, 2023

Note 72 Sectoral exposure

(` in Crore)
Current Year Previous Year
Total Exposure
Total Exposure
Percentage (includes Percentage
(includes on
Gross of Gross on balance Gross of Gross
Sectors balance sheet
NPAs NPAs to total sheet and off- NPAs NPAs to total
and off-balance
(₹ crore) exposure in balance sheet (₹ crore) exposure in
sheet exposure)
that sector exposure) that sector
(₹ crore)
(₹ crore)
1. Agriculture and Allied
- - - - - -
Activities
2. Industry
Others - - - - - -
Total of Industry - - - - - -
(i+ii+…+Others)

3. Services
i. Bank (including SFB and
17279.45 - - 16466.56 - -
RRB)
ii. MFI and NBFC 3953.57 21.76 0.55 3514.70 82.04 2.33
Others 343.61 . - 52.49 - -
Total of Services 21576.63 21.76 0.10 20033.74 82.04 0.41
(i+ii+Others)

4. Personal Loans
Others - - - - - -
Total of Personal Loans - - - - - -
(i+ii+…+Others)

5. Others, if any - - - - - -
(please specify)

Note:
i. The disclosures as above shall be based on the sector-wise and industry-wise bank credit (SIBC) return submitted by scheduled
commercial banks to the Reserve Bank and published by Reserve Bank as ‘Sectoral Deployment of Bank Credit’.
ii. In the disclosures as above, if within a sector, exposure to a specific sub-sector/industry is more than 10 per cent of Tier I Capital
of a NBFC, the same shall be disclosed separately within that sector. Further, within a sector, if exposure to specific sub-sector/
industry is less than 10 per cent of Tier I Capital, such exposures shall be clubbed and disclosed as “Others” within that sector.

Note 72 .1 Intra-Group Exposure

(a) The company has no intra group exposure during current year and previous year

ii) Total amount of top 20 intra group exposure - NA

iii) Percentage of intra-group exposures to total exposure of the NBFC on borrowers/customers - NA

100
Notes to Financial Statements
for the year ended March 31, 2023

Note 73 - Disclosures relating to Resolutions Plans implemented during the year in terms of RBI Circular
DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019

RPs Sucessfully implemented during the year ended MARCH 31,2023

No. of Cases Balance Outstanding*
Amount (` in crore)
1 60.28
*The account was technically written off as on date of restructuring and was closed thereafter during the year

Note 74 : Additional regulatory information required by Schedule III

i) Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Borrowing secured against current assets

The Company has not borrowed from banks and financial institutions on the basis of security of current assets.

(iii) Wilful defaulter

The Company have not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(iv) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.

(v) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vi) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(vii) Utilisation of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

101
Notes to Financial Statements
for the year ended March 31, 2023

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(viii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(x) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

Other regulatory information

(i) Title deeds of immovable properties not held in name of the company

The Company does not have immovable property, hence this clause is not applicable.

(ii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are to be registered with the Registrar of Companies.

(iii) Utilisation of borrowings availed from banks and financial institutions

The Company has not borrowed from banks and financial institutions, hence this clause is not applicable.However
the company received funds from various Banks under Priority Sector Shortfall allocated by RBI.

In terms of our report attached of even date

For V. C. Shah & Co For and on behalf of the Board of Directors
Chartered Accountants
Firm No.:109818W

Sd/- Sd/- Sd/-
Viral J. Shah Vinay Hedaoo Sudatta Mandal
Partner MD & CEO Director
Membership No.:110120 DIN : 07916221 DIN :00942070

Sd/- Sd/-
Place : Kasauli Rajesh D.Kale Vishnu Kumar Sah
Date: June 01, 2023 Chief Financial Officer Company Secretary

102
103
104
Notice to Members
Notice is hereby given that 8th Annual General Meeting 4) To take note of the appointment of Statutory
of Micro Units Development & Refinance Agency Auditors of MUDRA for FY 2023-24 and approve
Limited (“MUDRA”) will be held on September 27, 2023 their remuneration.
at 4:30 PM at short notice at 8th Floor, SIDBI office,
“RESOLVED THAT pursuant to the provisions of
Swavalamban Bhavan, C-11, G Block, Bandra Kurla
section 139(5), 142 (1) and other applicable provisions
Complex, Bandra (E), Mumbai- 400051 to transact the
of The Companies Act, 2013, and the Companies
following business:
(Audit and Auditors) Rules, 2014 (including any
statutory modification(s) or re-enactment(s) thereof
Ordinary Businesses: for the time being in force), M/s. D. Kothary & Co.,
To consider and if thought fit, to pass with or without Chartered Accountants (ICAI Firm Registration
modification(s), if any, the following Ordinary resolutions: No.105335W) appointed by Comptroller and Auditor
General of India (CAG) to conduct the statutory audit
1) To consider and adopt the Audited Financial
of MUDRA, be, and are hereby, appointed as the
Statements of MUDRA for the 8th financial year
Statutory Auditors of MUDRA for the FY 2023-24 at
ended on March 31, 2023, the Directors’ Report,
an aggregate remuneration of `4,75,000 ( Four lakh
Independent Auditor’s Report and Comments and
seventy five thousand only), plus applicable taxes,
Certificate of the Comptroller & Auditor General of
and out of pocket expenses payable, if any, up to
India, in terms of section 143(6) of the Companies
`0.50 lakh.
Act, 2013.
RESOLVED FURTHER THAT MD & CEO / CFO/ CS
“RESOLVED THAT the Audited Financial Statement
of MUDRA, be and is hereby, authorized severally
of the Company for the financial year ended on
to do all such acts, matters, deeds and things as
March 31, 2023, together with the Directors’ Report,
may be necessary and incidental to give effect to
Independent Auditor’s Report, along with Notes which
this resolution including filing of relevant e-Form(s)
forms an integral part of the Audited Annual Accounts
with the Registrar of Companies, Mumbai under the
for the period and Comments of the Comptroller
Ministry of Corporate Affairs.”
& Auditor General of India, as already circulated
amongst the Members of the Company, be and are
hereby received, considered, approved and adopted.” Special Business:
2) To declare final dividend of INR 0.20 per equity To consider and if thought fit, to pass with or without
share, aggregating to `33,51,85,185/-, on the modifications, the following resolutions as Ordinary
equity shares, as on March 31, 2023. Resolutions:
“RESOLVED THAT, a dividend of INR 0.20 per 5) To consider appointment of Shri Sadhu
equity share, for the period from April 01, 2022 to Venkataramana Sastry (DIN 07972562) as an
March 31, 2023, on the Company’s Share Capital of Independent Director of MUDRA.
`1675.93 crore, as at March 31, 2023, aggregating
“RESOLVED THAT pursuant to the provisions of
to `33,51,85,185/-, be, and is hereby, declared for
Section 149, 150 and 152 and other applicable
payment to those holders of equity shares, on pro
provisions, if any, of the Companies Act, 2013 read
rata basis, whose name appears on the Register of
with the Articles of Association of the Company and
Members of the company, as on March 31, 2023.”
the Rules made thereunder, read with Schedule IV of
3) To appoint Shri Sudatta Mandal (DIN 00942070) the said act, Shri Sadhu Venkataramana Sastry (DIN
who retires by rotation at this meeting and being 07972562), who was appointed as an Additional
eligible to be re-appointed as Nominee Director, Director (Non-Executive Independent Director) of the
liable for retirement by rotation. Company with effect from Feb 15, 2023 under section
149, 150, 152 (2) and 161 (1) of the Companies act,
“RESOLVED THAT Shri Sudatta Mandal (DIN
2013 be and is hereby appointed as Independent
00942070), Nominee Director (SIDBI) of the Company,
Director of the Company to hold office for a term up
who retires by rotation at this meeting and being
to three consecutive years commencing from Feb 15,
eligible to be re-appointed as Nominee Director be,
2023.
and is hereby, re-appointed as a Nominee Director and
shall be liable to retirement by rotation.”

105
 RESOLVED FURTHER THAT MD & CEO / CFO / CS of who was appointed as an Additional Director (Non-
the Company, be and are hereby severally authorized Executive Independent Director) of the Company
to do such acts, matters, deeds and things as may with effect from June 05, 2023 under section 149 ,
be necessary and incidental to give effect to this 150, 152 (2) and 161 (1) of the Companies act, 2013
resolution including filing of e-Form DIR-12 with the be and is hereby appointed as Independent Director
Ministry of Corporate Affairs.” of the Company to hold office for a term up to three
consecutive years commencing from June 05, 2023.
6) To consider appointment of Smt Mala Sinha (DIN
07979556) as an Independent Director of MUDRA. RESOLVED FURTHER THAT MD & CEO / CFO / CS of
the Company, be and are hereby severally authorized
“RESOLVED THAT pursuant to the provisions of
to do such acts, matters, deeds and things as may
Section 149, 150 and 152 and other applicable
be necessary and incidental to give effect to this
provisions, if any, of the Companies Act, 2013 read
resolution including filing of e-Form DIR-12 with the
with the Articles of Association of the Company and
Ministry of Corporate Affairs.”
the Rules made thereunder, read with Schedule IV
of the said act, Smt Mala Sinha (DIN 07979556),

Date: September 27, 2023 By order of the Board of Directors

Place: Mumbai For Micro Units Development & Refinance Agency Limited

Vinay Hedaoo
MD & CEO
DIN 07916221
Address: SWAVALAMBAN BHAVAN, C-11, G-Block, Bandra Kurla Complex, Bandra
East, Mumbai-400051.

1. A Member entitled to attend and vote at the Annual 4. Corporate Members intending to send their
general meeting (AGM) is entitled to appoint a authorized representatives to attend the Meeting
proxy to attend and vote instead of himself and are requested to send to the Company a certified
the proxy need not be a Member of the Company. copy of its Board or governing body Resolution/
The instrument appointing the proxy, in order to Authorization etc., authorizing their representative
be effective, must be deposited at the Company’s to attend the AGM through in person/ VC / OAVM
Registered Office, duly completed and signed, not and vote on their behalf at the Meeting.
less than FORTY-EIGHT HOURS before the meeting.
5. Pursuant to Section 139 of the Companies Act,
Proxies submitted on behalf of limited companies,
2013, the Auditors of the Company is to be
societies, etc., must be supported by appropriate
appointed or re-appointed by the Comptroller and
resolutions/authority, as applicable. A person can
Auditor General of India (C & AG) and in terms of
act as proxy on behalf of Members not exceeding
sub-section (1) of Section 142 of the Companies
fifty (50) and holding in the aggregate not more
Act, 2013, their remuneration has to be fixed by the
than 10% of the total share capital of the Company.
Company in the Annual general meeting or in such
In case a proxy is proposed to be appointed by a
manner as the Company in General Meeting may
Member holding more than 10% of the total share
determine.
capital of the Company carrying voting rights, then
such proxy shall not act as a proxy for any other 6. The Register of Directors and Key Managerial
person or shareholder. Personnel and their shareholding, maintained
under Section 170 of the Companies Act, 2013, will
2. For the convenience of members, an attendance
be available for inspection by members.
slip, proxy form and the route map of the venue
of the Meeting are annexed hereto. Members 7. In compliance with the aforesaid MCA Circulars,
are requested to affix their signature at the space Notice of the AGM along with the Annual Report
provided and hand over the attendance slips at the 2022-23 is being sent only through electronic mode
place of meeting. The proxy of a member should be to all the Members at their email ID registered with
marked on the attendance slip as ‘proxy’. the Company/RTA. Members are requested to
promptly notify any changes in their email ID to the
3. Members attending the AGM through VC / OAVM
Company at [email protected].
shall be counted for the purpose of reckoning the
quorum under Section 103 of the Act. 8. Members may note that the Notice and Annual

106
 Report 2022-23 will also be made available on the 189 of Companies Act, 2013, will be available for
Company’s website www.mudra.org.in. inspection by the members at the AGM.
9. Members are requested to send their queries, if 11. All documents referred to in the accompanying
any, on Annual Report, to the Company Secretary, notice are open for inspection at the AGM and such
not less than 2 days before the date of Meeting, so documents will also be available for inspection in
that the requisite information/ explanations can be physical or in electronic form at the registered office
provided in time. of the Company during normal business hours.
10. The Register of Contracts or Arrangements, in which 12. Explanatory Statement pursuant to Section 102 of
Directors are interested, maintained under section the Companies Act, 2013 for all Items annexed to
this Notice.
xxxxxxxx

EXPLANATORY STATEMENT PURSUANT TO Your Directors recommend the above resolution for
SECTION 102 OF THE COMPANIES ACT, 2013: approval of members.

Item No.5 Item No.6

The Board of Directors of the Company had appointed
The Board of Directors of the Company had appointed
Smt Mala Sinha (DIN 07979556) aged 65 years, as an
Shri Sadhu Venkataramana Sastry (DIN 07972562)
Additional Director (Non-Executive Independent Director)
aged 60 years, as an Additional Director (Non-Executive
of MUDRA w.e.f. June 05, 2023, for a period of three
Independent Director) of MUDRA w.e.f. Feb 15, 2023, for a
years, in terms of appointment letter dated June 05,
period of three years, in terms of appointment letter dated
2023. Her appointment as an Additional Director (Non-
Feb 15, 2023. His appointment as an Additional Director
Executive Independent Director) was subject to approval
(Non-Executive Independent Director) was subject to
of members in the forthcoming Annual General meeting.
approval of members in the forthcoming Annual General
In accordance with section 149 (1), 150, 152 (2) and 161
meeting. In accordance with section 149 (1), 150, 152
(1) of the Companies act, 2013, Smt Mala Sinha shall
(2) and 161 (1) of the Companies act, 2013, Shri Sadhu
hold office up to the date of forthcoming Annual General
Venkataramana Sastry shall hold office up to the date of
Meeting and is eligible to be appointed as an Independent
forthcoming Annual General Meeting and is eligible to be
Director for a term up to 3 years.
appointed as an Independent Director for a term up to 3
years. Declaration has been received from Smt Mala Sinha (DIN
07979556) that she meets the criteria of Independence
Declaration has been received from Shri Sadhu
prescribed under Section 149 of the Act read with the
Venkataramana Sastry that he meets the criteria of
Companies (Appointment and Qualification of Directors)
Independence prescribed under Section 149 of the Act
Rules, 2014.
read with the Companies (Appointment and Qualification
of Directors) Rules, 2014. Proposal for appointment of Independent Director
requires the approval from Members of the Company.
Proposal for appointment of Independent Director
requires the approval from Members of the Company. She holds NIL equity shares in MUDRA. None of the
directors and key managerial personnel of the company
He holds NIL equity shares in MUDRA. None of the
or their relatives except Smt Mala Sinha (DIN 07979556)
directors and key managerial personnel of the company
are in any way concerned or interested, financially or
or their relatives except Shri Sadhu Venkataramana
otherwise, in the said resolution.
Sastry are in any way concerned or interested, financially
or otherwise, in the said resolution. Your Directors recommend the above resolution for
approval of members.

Date: September 27, 2023 By order of the Board of Directors

Place: Mumbai For Micro Units Development & Refinance Agency Limited

Vinay Hedaoo
MD & CEO
DIN 07916221
Address: SWAVALAMBAN BHAVAN, C-11, G-Block, Bandra Kurla Complex, Bandra
East, Mumbai-400051.

107
Detailed profile of Director seeking re-appointment/appointment in the Annual General Meeting pursu-
ant to clause 1.2.5 of the Secretarial Standards on General Meetings (SS-2):

Shri Sudatta mandal Shri Sadhu Venkataramana

Smt Mala Sinha
Name of the Director sastry
DIN: 00942070 DIN: 07979556
DIN: 07972562

Nominee Director, liable to Non-Executive,Independent Non-Executive,

Designation
retire by rotation Director Independent Director

Date of Birth & Age 20/04/1968 18/09/1962 09/11/1957

Date of Appointment 28/05/2021 15/02/2023 05/06/2023

B-Tech. in Electrical B.A. and M.A. in Political

Engineering from the Science from Delhi &
Educational IIT, Kanpur, and holds a Graduate in Science from Patna University and
Post Graduate Diploma Government College, MBA, Chartered & Master
Qualification in Management with Anantapur (Andhra Pradesh) Financial Analyst from
specialisation in Finance ICFAI.
from the IIM, Calcutta. IA&AS (Batch 1983)
She oversaw overall
He has experience of supervision of Audit of
more than 25 years 8 North Eastern States,
He joined State Bank of India
across different verticals Preparation of Audit
as a Probationary Officer
(Assets, Liabilities, Risk Reports etc. She is having
on 01st October 1985. He
Management, Compliance more than 3 decades of
retired from the services of
and Strategy) in Exim exemplary experience in
the Bank on 30th September
Experience and Bank including more than Finance and Management
2022 as Deputy Managing
expertise in specific 20 years of operational and experience of various
Director (Global Markets).
functional areas experience in International offices in Indian Audit and
During his career spanning
Trade and Investment Accounts Department
37 years, Shri Sastry held
Finance, Project Finance, dealing with Audit. During
various assignments in
SME lending including her career spanning 34
the Bank-both in India and
Cluster Finance, Trade years, Smt. Mala Sinha
abroad.
Finance, and cross-border handled the various
Development Finance. External and International
Audit assignments.

1)RXIL GLOBAL IFSC 1)SBI DFHI LIMITED

Directorship in other
LIMITED 2)SBICAP VENTURES
Companies (excluding
LIMITED
Foreign and Section 8 2)RECEIVABLES EXCHANGE NIL
3)SBI-SG GLOBAL
Companies) as on 31st OF INDIA LIMITED SECURITIES SERVICES
March, 2023
PRIVATE LIMITED

108
 Shri Sudatta mandal Shri Sadhu Venkataramana
Smt Mala Sinha
Name of the Director sastry
DIN: 00942070 DIN: 07979556
DIN: 07972562
• Member of CSR
Committee, Audit
Committee and NRC of
SBICAP Ventures Ltd.
• Member of Audit
Other Companies in Committee, Risk
Member of Nomination &
which Committee M a n a g e m e n t
Remuneration Committee of NIL
membership/ Committee, CSR
RXIL
Chairmanship held Committee, HRC and
NRC Of the Board of SBI
DFHI Limited.
• Chairman of SBI-
SG Global Securities
Services Private Limited
Number of Equity
Shares held as on NIL NIL NIL
31st March 2023
Inter-se relationship
with other Not related to any Not related to any Not related to any
Directors / Manager / Director/ KMP Director/ KMP Director/ KMP
KMP
For other details such as number of Meetings of the Board attended during the year and remuneration of appointed
Directors, please refer to the Directors Report.

109
 08th Annual General Meeting
Micro Units Development & Refinance Agency Limited (“MUDRA”)
[CIN: U65100MH2015PLC274695]
Registered office: SWAVALAMBAN BHAVAN, C-11, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051
Tele Phone: 022-67221465 Fax No.: N.A | Website: www.mudra.org.in email: [email protected]

Date Venue Time

8th Floor, SIDBI office, Swavalamban Bhavan, C-11, G Block, Bandra
September 27, 2023 4.30 pm
Kurla Complex, Bandra E, Mumbai- 400051

PLEASE FILL ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING VENUE.

Folio No. ____________*DP ID No._______________ *Client ID No. _________________

Name of the Member Shri /Smt./Ms. ___________________________________________

Signature _______________

Name of the Proxyholder Mr./Mrs. _________________________________ Signature _____________

* Applicable for investors holding shares in electronic form.

I certify that I am the registered shareholder/proxy for the registered shareholder of the Company.
I hereby record my presence at 8th Annual General Meeting of the Company held on Wednesday, September 27, 2023
at 4.30 pm at 8th Floor, SIDBI office, Swavalamban Bhavan, C-11, G Block, Bandra Kurla Complex, Bandra E, Mumbai-
400051.

________________________________
Signature of the Member/ Proxy

Note: Electronic copy of the Notice of the 8th Annual General Meeting with the Attendance slip and Proxy form is being
sent to all the members whose email id is registered with the Company/ Depository Participant unless any meeting has
been requested for a hard copy of the same. Shareholders receiving electronic copy and attending the 8th Annual General
Meeting can print copy of this Attendance Slip.
Physical copy of the Notice of the 8th Annual General Meeting along with the Attendance Slip and Proxy Form is sent in the
permitted mode(s) to all members whose email Id is not registered or has requested for hard copy.

110
 08th Annual General Meeting
Micro Units Development & Refinance Agency Limited (“MUDRA”)
[CIN: U65100MH2015PLC274695]
Registered office: SWAVALAMBAN BHAVAN, C-11, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051
Tele Phone: 022-67221465 Fax No.: N.A | Website: www.mudra.org.in email: [email protected]

Form No. MGT-11

FORM OF PROXY
[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies
(Management and Administration) Rules, 2014]

Name of Member(s) : Email Id :

Registered Address : Folio No. :

*DP Id.
: :

:
No. of Shares held *Client Id. :

* Applicable for investors holding shares in electronic form.

I/We, being a member(s) of ___________ shares of MUDRA hereby appoint:

1. Mr./Mrs. ________________________________ Email Id: ______________________________

Address: __________________________________
___________________________________________

___________________________________________ Signature:____________________________

2. Mr./Mrs. ________________________________ Email Id: ______________________________

Address: __________________________________
___________________________________________

___________________________________________ Signature:____________________________

3. Mr./Mrs. ________________________________ Email Id: ______________________________

Address: __________________________________
___________________________________________

___________________________________________ Signature:____________________________
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 8th Annual General Meeting of the
Company to be held on Wednesday, September 27, 2023 at 4.30 pm at 8th Floor, SIDBI office, Swavalamban Bhavan,
C-11, G Block, Bandra Kurla Complex, Bandra E, Mumbai- 400051, and at any adjournment thereof in respect of such
resolutions as are indicated below:

111
** I wish my above Proxy to vote in the manner as indicated in the box below:

SI. Number of
Resolutions For Against
No. Shares held
ORDINARY BUSINESS:
1. To consider and adopt the Audited Financial Statements of MUDRA for
the 8th financial year ended on March 31, 2023, the Directors Report,
Independent Auditor’s Report and Comments and Certificate of the
Comptroller & Auditor General of India, in terms of section 143(6) of the
Companies Act, 2013.
2. To declare final dividend of INR 0.20 per equity share, aggregating to
`33,51,85,185/- on the equity shares, as on March 31, 2023.
3. To appoint Shri Sudatta Mandal (DIN 00942070) who retires by rotation
at this meeting and being eligible to be re-appointed as Nominee Director,
liable for retirement by rotation.
4. To take note of the appointment of Statutory Auditors of MUDRA for FY
2023-24 and approve their remuneration.
SPECIAL BUSINESS:
5. To consider appointment of Shri Sadhu Venkataramana Sastry (DIN
07972562) as an Independent Director of MUDRA.
6. To Consider appointment of Smt Mala Sinha (DIN 07979556) as an
Independent Director of MUDRA.
** This is optional. Please put a tick mark () in the appropriate column against the resolutions indicated in the box. If a
member leaves the “For” or “Against” column blank against any or all the Resolutions, the proxy will be entitled to vote
in the manner he/ she thinks appropriate. If a member wishes to abstain from voting on resolution, he/she should write
“Abstain” across the boxes against the Resolution.
Signature(s) of the Member(s)
Affix One
1._______________________________ Rupee
2._______________________________ Revenue
Stamp
3._______________________________
Signed this _______day of________2023

Notes:
1. The Proxy to be effective should be deposited at the registered office of the company before commencement of the
meeting.
2. A proxy need not be a member of the company.
3. In the case of the Joint holders, the vote of the senior who tenders vote, whether in person or by Proxy, shall be
accepted to the exclusion of the vote of the other joint holders. Seniority shall be determined by the order in which
the names stand in the Register of the Members.
4. The form of proxy confers authority to demand or join in demanding a poll.
5. The submission by a member of this form of proxy will not preclude such member from attending in person and
voting at the meeting.
6. In case a member wishes his/her votes to be used differently, he/she should indicate the number of shares under the
columns “For” or “Against’ as appropriate.

112
 Route MAP
Link: https://goo.gl/maps/gBmYfUXSHtQNUZoh9