Muthoot Finance Limited: Draft Shelf Prospectus March 12, 2018

Draft Shelf Prospectus
March 12, 2018
MUTHOOT FINANCE LIMITED

Our Company was originally incorporated at Kochi, Kerala as a private limited company on March 14, 1997 under the provisions of the Companies Act, 1956 with corporate identity
number L65910KL1997PLC011300, with the name “The Muthoot Finance Private Limited”. Subsequently, by a fresh certificate of incorporation dated May 16, 2007, our name was
changed to “Muthoot Finance Private Limited”. Our Company was converted into a public limited company on November 18, 2008 with the name “Muthoot Finance Limited” and received
a fresh certificate of incorporation consequent to change in status on December 02, 2008 from the Registrar of Companies, Kerala and Lakshadweep. For further details regarding changes
to the name and registered office of our Company, see section titled “History and Main Objects” on page 94 of this Draft Shelf Prospectus.
Registered and Corporate Office: 2nd Floor, Muthoot Chambers, Opposite Saritha Theatre Complex, Banerji Road, Kochi 682 018, India.
Tel: (+91 484) 239 4712; Fax: (+91 484) 239 6506; Website: www.muthootfinance.com; Email: [email protected].
Company Secretary and Compliance Officer: Maxin James; Tel: (+91 484) 6690247; Fax: (+91 484) 239 6506; E-mail: [email protected]
PUBLIC ISSUE BY MUTHOOT FINANCE LIMITED, (“COMPANY” OR “ISSUER”) OF SECURED REDEEMABLE NON-CONVERTIBLE DEBENTURES OF FACE VALUE
OF ` 1,000 EACH, (“NCDs”), FOR AN AMOUNT UP TO ` 30,000.00 MILLION ("SHELF LIMIT") HEREINAFTER REFERRED TO AS THE “ISSUE”. THE NCDs WILL BE
ISSUED IN ONE OR MORE TRANCHES, ON TERMS AND CONDITIONS AS SET OUT IN THE RELEVANT TRANCHE PROSPECTUS FOR ANY TRANCHE ISSUE (EACH A
"TRANCHE ISSUE"). THE ISSUE IS BEING MADE PURSUANT TO THE PROVISIONS OF SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE AND LISTING OF
DEBT SECURITIES) REGULATIONS, 2008 AS AMENDED (THE "SEBI DEBT REGULATIONS"), THE COMPANIES ACT, 2013 AND RULES MADE THEREUNDER AS
AMENDED TO THE EXTENT NOTIFIED.
PROMOTERS : M G GEORGE MUTHOOT, GEORGE ALEXANDER MUTHOOT, GEORGE THOMAS MUTHOOT, GEORGE JACOB MUTHOOT
GENERAL RISK
Investors are advised to read the Risk Factors carefully before taking an investment decision in the Issue. For taking an investment decision, the investors must rely on their own examination
of the Issuer and the Issue including the risks involved. Specific attention of the investors is invited to the Risk Factors on pages 11 to 34 of this Draft Shelf Prospectus, the Shelf Prospectus
and "Material Developments" in the relevant Tranche Prospectus of any Tranche Issue before making an investment in such Tranche Issue. This document has not been and will not be
approved by any regulatory authority in India, including the Securities and Exchange Board of India (“SEBI”), the Reserve Bank of India (“RBI”), the Registrar of Companies at Kerala and
Lakshadweep (“RoC”) or any stock exchange in India.
ISSUER’S ABSOLUTE RESPONSIBILITY
The Issuer, having made all reasonable inquiries, accepts responsibility for, and confirms that this Draft Shelf Prospectus read together with the Shelf Prospectus and the relevant Tranche
Prospectus for a Tranche Issue contains and will contain all information with regard to the Issuer and the relevant Tranche Issue, which is material in the context of the Issue and the relevant
Tranche Issue. The information contained in this Draft Shelf Prospectus read together with the Shelf Prospectus and the relevant Tranche Prospectus for a Tranche Issue is true and correct in
all material respects and is not misleading in any material respect and that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of
which makes this Draft Shelf Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.
CREDIT RATING
The NCDs proposed to be issued under this Issue have been rated [ICRA] AA (Stable) by ICRA for an amount of upto ` 30,000.00 million vide its letters dated March 06, 2018 and have been
rated CRISIL AA/Stable by CRISIL for an amount upto ` 30,000.00 million vide its letter dated March 07, 2018. The rating of the NCDs by ICRA and CRISIL indicates high degree of
safety regarding timely servicing of financial obligations. The rating provided by ICRA and CRISIL may be suspended, withdrawn or revised at any time by the assigning rating agency and
should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. Please refer to
pages 247 to 262 of this Draft Shelf Prospectus for rating letter and rationale for the above rating.
PUBLIC COMMENTS
This Draft Shelf Prospectus is open for public comments. All comments on this Draft Shelf Prospectus are to be forwarded to the attention of Maxin James, Company Secretary and
Compliance Officer and Contact Person at the following address: 2nd Floor, Muthoot Chambers, Opposite Saritha Theatre Complex, Banerji Road, Kochi 682 018, Tel. No. (+91 484)
6690247; Fax: (+91 484) 239 6506; E-mail: [email protected]. All comments must be received by the Issuer within 7 Working Days of hosting this Draft Shelf Prospectus on the
website of the Designated Stock Exchange. Comments by post, fax and mail shall be accepted, however please note that all comments by post must be received by the Issuer by 5 p.m. on the
7th Working Day from the date on which this Draft Shelf Prospectus is hosted on the website of the Designated Stock Exchange.
LISTING
The NCDs offered through this Draft Shelf Prospectus, Shelf Prospectus along with the relevant Tranche Prospectus are proposed to be listed on BSE. For the purposes of the Issue, BSE
shall be the Designated Stock Exchange. Our Company has received an ‘in-principle’ approval from BSE vide their letter no. [●] dated [●].
COUPON RATE, COUPON PAYMENT FREQUENCY, MATURITY DATE, MATURITY AMOUNT & ELIGIBLE INVESTORS
For details relating to Coupon Rate, Coupon Payment Frequency, Maturity Date and Maturity Amount of the NCDs, see section tit led “Terms of the Issue” starting on page 129of this Draft
Shelf Prospectus. For details relating to eligible investors please see “The Issue” on page 41 of this Draft Shelf Prospectus.
LEAD MANAGERS TO THE ISSUE REGISTRAR TO THE ISSUE DEBENTURE TRUSTEE**
Edelweiss Financial Services Limited A. K. Capital Services Limited LINK INTIME INDIA PRIVATE IDBI TRUSTEESHIP
Edelweiss House 30-39, Free Press House LIMITED SERVICES LIMITED
Off CST Road, Kalina 3rd floor, Free Press Journal Marg C-101, 247 Park, L B S Marg, Asian Building, Ground Floor
Mumbai 400 098 215, Nariman Point Vikhroli West, 17 R, Kamani Marg, Ballard
Tel: (+91 22) 4086 3535 Mumbai - 400 021, India Mumbai 400 089, India Estate
Fax: (+91 22) 4086 3610 Tel: (+91 22) 6754 6500 Tel: (+91 22) 4918 6200 Mumbai 400 001, India
Email: [email protected] Fax: (+91 22) 6610 0594 Fax: (+91 22) 4918 6195 Tel: (+91 22) 4080 7000
Investor Grievance Email: Email: [email protected] Email:[email protected] Fax: (+91 22) 6631 1776
[email protected] Investor Grievance Investor Grievance Email: [email protected]
Website: www.edelweissfin.com Email: [email protected] Email: Website: www.idbitrustee.co.in
Contact Person: Mr. Lokesh Singhi / n [email protected] Contact Person: Anjalee Athalye
Mr. Mandeep Singh Website: www.akgroup.co.in Website: www.linkintime.co.in SEBI Registration No.:
Compliance Officer: Mr. B Contact Person: Ms. Shilpa Contact Person: Sumeet Deshpande IND000000460
Renganathan Pandey/Mr. Malay Shah SEBI Registration
SEBI Registration No.: Compliance Officer: Mr. Tejas Davda No.: INR000004058
INM0000010650 SEBI Registration No.: INM000010411
ISSUE PROGRAMME *
ISSUE OPENS ON: As specified in the relevant Tranche Prospectus ISSUE CLOSES ON: As specified in the relevant Tranche Prospectus
*The subscription list shall remain open for subscription on Working Days from 10 A.M. to 5 P.M., during the period indicated in the relevant Tranche Prospectus, except that the Issue
may close on such earlier date or extended date as may be decided by the Board of Directors of our Company ("Board") or NCD Public Issue Committee. In the event of such an early
closure of or extension subscription list of the Issue, our Company shall ensure that notice of such early closure or extension is given to the prospective investors through an advertisement
in a national daily newspaper with wide circulation on or before such earlier date or extended date of closure. Applications Forms for the Issue will be accepted only from 10:00 a.m. till 5.00
p.m. (Indian Standard Time) or such extended time as may be permitted by BSE, on Working Days during the Issue Period. On the Issue Closing Date, Application Forms will be accepted
only between 10:00 a.m. to 3.00 p.m. (Indian Standard Time) and uploaded until 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE.
** IDBI Trusteeship Services Limited under regulation 4(4) of the SEBI Debt Regulations has by its letter dated March 09, 2018 given its consent for its appointment as Debenture Trustee
to the Issue and for its name to be included in this Draft Shelf Prospectus and in all the subsequent periodical communications sent to the holders of the Debentures issued pursuant to this
Issue.
A copy of the Shelf Prospectus and relevant Tranche Prospectus shall be filed with the Registrar of Companies, Kerala and Lakshadweep, in terms of section 26 and 31 of the Companies
Act, 2013, along with the endorsed/certified copies of all requisite documents. For further details please refer to the section titled “Material Contracts and Documents for Inspection”
beginning on page 243 of this Draft Shelf Prospectus.
TABLE OF CONTENTS
SECTION I: GENERAL .............................................................................................................................. 4
DEFINITIONS / ABBREVIATIONS ............................................................................................................. 4

FORWARD-LOOKING STATEMENTS ....................................................................................................... 9
PRESENTATION OF FINANCIAL AND OTHER INFORMATION ........................................................ 10
SECTION II: RISK FACTORS ................................................................................................................. 11
SECTION III: INTRODUCTION ............................................................................................................. 35
GENERAL INFORMATION ..................................................................................................................... 35

THE ISSUE ................................................................................................................................................... 41
CAPITAL STRUCTURE .............................................................................................................................. 44
OBJECTS OF THE ISSUE ........................................................................................................................... 53
STATEMENT OF POSSIBLE TAX BENEFITS AVAILABLE TO THE DEBENTURE HOLDERS
UNDER THE APPLICABLE LAWS IN INDIA .......................................................................................... 55
SECTION IV: ABOUT THE ISSUER AND INDUSTRY OVERVIEW ........................................... 67
INDUSTRY OVERVIEW ......................................................................................................................... 67
OUR BUSINESS ........................................................................................................................................... 74

HISTORY AND MAIN OBJECTS ............................................................................................................... 94
OUR MANAGEMENT ............................................................................................................................... 98
OUR PROMOTERS ................................................................................................................................. 115
DISCLOSURES ON EXISTING FINANCIAL INDEBTEDNESS ........................................................... 120
MATERIAL DEVELOPMENTS ................................................................................................................ 128
SECTION V: ISSUE RELATED INFORMATION............................................................................... 129
TERMS OF THE ISSUE ............................................................................................................................. 129

ISSUE STRUCTURE .................................................................................................................................. 134
ISSUE PROCEDURE ................................................................................................................................. 147
SECTION VI: LEGAL AND OTHER INFORMATION ...................................................................... 168
PENDING PROCEEDINGS AND STATUTORY DEFAULTS ................................................................ 168

OTHER REGULATORY AND STATUTORY DISCLOSURES .............................................................. 181
REGULATIONS AND POLICIES ............................................................................................................. 199
SUMMARY OF KEY PROVISIONS OF ARTICLES OF ASSOCIATION ............................................. 212
MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION .............................................. 243
DECLARATION ....................................................................................................................................... 245
ICRA GRADING LETTER ..................................................................................................................... 246
ICRA RATING RATIONALE ................................................................................................................. 247
CRISIL RATING LETTER ..................................................................................................................... 248
CRISIL RATING RATIONALE ............................................................................................................. 249
CONSENT OF THE DEBENTURE TRUSTEE..................................................................................... 250
SCHEDULE A | CASH FLOWS FOR VARIOUS OPTIONS .............................................................. 251
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ANNEXURE A – FINANCIAL INFORMATION ................................................................................. 252
ANNEXURE B – UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER ENDED
JUNE 30, 2017............................................................................................................................................ 253
ANNEXURE C – UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER AND SIX
MONTHS ENDED SEPTEMBER 30, 2017 ............................................................................................ 254
ANNEXURE D – UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER AND NINE
ENDED DECEMBER 31, 2017 ................................................................................................................ 255
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SECTION I: GENERAL
DEFINITIONS / ABBREVIATIONS
Company related terms
Term Description
“We”, “us”, “our”, Muthoot Finance Limited, a public limited company incorporated under the Act, and having its registered office at Muthoot
“the Company”, and Chambers, Opposite Saritha Theatre Complex, 2nd Floor, Banerji Road, Kochi 682 018, Kerala, India.
“Issuer”
AOA/Articles / Articles of Association of our Company.
Articles of
Association
Board / Board of The Board of Directors of our Company and includes any Committee thereof from time to time.
Directors
Equity Shares Equity shares of face value of ` 10 each of our Company.
Memorandum / Memorandum of Association of our Company.
MOA
NCD Public Issue The committee constituted by our Board of Directors by a board resolution dated July 25, 2011.
Committee
NBFC Non-Banking Financial Company as defined under Section 45-IA of the RBI Act, 1934.
NPA Non Performing Asset.
Promoters M.G. George Muthoot, George Thomas Muthoot, George Jacob Muthoot and George Alexander Muthoot.
Reformatted The reformatted standalone summary statement of assets and liabilities of the Company as of March 31, 2017, 2016, 2015,
Financial 2014 and 2013 and the related reformatted standalone summary statement of profit and loss and reformatted standalone
Statements statement of cash flows for each of the 5 years in the period ended March 31, 2017, 2016, 2015, 2014 and 2013
(collectively, together with the annexures thereto, the “Reformatted Standalone Financial Information”) and the
reformatted consolidated summary statement of assets and liabilities of the Company as of March 31, 2017, 2016 and 2015
and the related reformatted consolidated summary statement of profit and loss and reformatted consolidated statement of
cash flows for each of the 3 years in the period ended March 31, 2017, 2016 and 2015 (collectively, together with the
annexures thereto, the “Reformatted Consolidated Financial Information”).
The Audited Standalone Financial Statements and Statutory Auditors reports thereon form the basis of the Reformatted
Standalone Financial Information. The Audited Standalone Financial Statements for the periods up to March 31, 2017 were
audited by the previous auditor. The Audited Consolidated Financial Statements and Statutory Auditors reports thereon
form the basis of the Reformatted Consolidated Financial Information. The Audited Consolidated Financial Statements for
the periods up to March 31, 2017 were audited by the previous auditor.
ROC The Registrar of Companies, Kerala and Lakshadweep.
`/ Rs./ INR/ Rupees The lawful currency of the Republic of India.
Previous Auditor M/s. Rangamani & Co, Chartered Accountants, FRN: 003050S, 17/598, 2nd Floor, Card Bank Building, West of YMCA,
VCSB Road, Allepey - 688 011, Kerala, India retired at the 20th Annual General Meeting of the Company held on 20th
September, 2017,
Statutory Auditors M/s. Varma & Varma, Chartered Accountants, FRN: 004532S, “Sreeraghavam”, Kerala Varma Tower, Bldg No. 53/2600
B, C, D & E, Off Kunjanbava Road, Vyttila P.O., Kochi- 682019 were appointed as Statutory Auditors of the Company at
the 20th Annual General Meeting held on 20th September, 2017 to hold office for a term of five years, subject to ratification
of their appointment by the Members at every Annual General Meeting thereafter.
Subsidiary(ies) (a) Asia Asset Finance PLC, a company registered in the said Republic of Sri Lanka, under the Companies Act No.7, of
2007, having its registered office at No.76/1, Dharmapala Mawatha, Colombo 03, Sri Lanka.
(b) Muthoot Homefin (India) Limited, Company registered in India, having its registered office at Muthoot Chambers,
Kurians Tower Banerji Road, Cochin Ernakulam, Kerala- 682018.
(c) Belstar Investment and Finance Private Limited, a Company registered in India, having its registered office at New
No. 33, Old No. 14, 48th Street, 9th Avenue, Ashok Nagar, Chennai, Tamil Nadu- 600083.
(d) Muthoot Insurance Brokers Private Limited, Company registered in India, having its registered office at 3rd Floor,
Muthoot Chambers, Banerji Road Ernakulam, Kerala- 682018.
Issue related terms
Term Description
Allotment / Allotted Unless the context otherwise requires, the allotment of the NCDs pursuant to the Issue to the Allottees.
Allottee(s) The successful applicant to whom the NCDs are being/have been allotted.
Applicant / Investor The person who applies for issuance and Allotment of NCDs pursuant to the terms of the Draft Shelf Prospectus, the Shelf
Prospectus, relevant Tranche Prospectus and Abridged Prospectus and the Application Form for any Tranche Issue.
Application An application for Allotment of NCDs offered pursuant to the Issue by submission of a valid Application Form and
payment of the Application Amount by any of the modes as prescribed under the respective Tranche Prospectus.
Application Amount The aggregate value of the NCDs applied for, as indicated in the Application Form for the respective Tranche Prospectus.
Application Form An Application for Allotment of NCDs through the ASBA or non-ASBA process, in terms of the Shelf Prospectus and
respective Tranche Prospectus.
ASBA Application The Application in terms of which the Applicant apply by authorising SCSB to block the Application Amount in the
or “Application specified bank account maintained with such SCSB.
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Term Description
Supported by
Blocked Amount”
ASBA Account An account maintained with an SCSB which will be blocked by such SCSB to the extent of the Application Amount of an
ASBA Applicant.
ASBA Applicant Any Applicant who applies for NCDs through the ASBA process.
Bankers to the The banks with whom Escrow Accounts will be opened as specified in the relevant Tranche Prospectus for each Tranche
Issue/Escrow Issue.
Collection Banks
Base Coupon Rate As specified in the relevant Tranche Prospectus for each Tranche Issue.
Base Issue As specified in the relevant Tranche Prospectus for each Tranche Issue.
Basis of Allotment As specified in the relevant Tranche Prospectus for each Tranche Issue.
Coupon Rate The aggregate rate of interest payable in connection with the NCDs in accordance with the Shelf Prospectus and the
relevant Tranche Prospectus(es).
CRISIL Credit Rating Information Services of India Limited.
Debt Application Circular no. CIR/IMD/DF-1/20/2012 issued by SEBI on July 27, 2012.
Circular
Debenture Holder The holders of the NCDs whose name appears in the database of the relevant Depository.
(s) / NCD Holder(s)
Debt Listing The listing agreement entered into between our Company and the relevant stock exchange(s) in connection with the listing
Agreement of debt securities of our Company.
Debenture Trust The trust deed to be executed by our Company and the Debenture Trustee for creating the security over the NCDs issued
Deed under the Issue
Demographic Details of the investor such as address, bank account details for printing on refund orders and occupation, which are based
Details on the details provided by the Applicant in the Application Form.
Deemed Date of The date on which the Board or the NCD Public Issue Committee of the Board constituted by resolution of the Board dated
Allotment July 25, 2011 approves the Allotment of the NCDs for each Tranche Issue. The actual Allotment of NCDs may take place
on a date other than the Deemed Date of Allotment. All benefits relating to the NCDs including interest on NCDs (as
specified for each Tranche Issue by way of the relevant Tranche Prospectus) shall be available to the Debenture holders
from the Deemed Date of Allotment.
Depositories Act The Depositories Act, 1996, as amended from time to time.
Depository(ies) National Securities Depository Limited (NSDL) and /or Central Depository Services (India) Limited (CDSL).
DP / Depository A depository participant as defined under the Depositories Act.
Participant
Designated Branches Such branches of SCSBs which shall collect the ASBA Applications and a list of which is available on
http://www.sebi.gov.in or at such other website as may be prescribed by SEBI from time to time.
Designated Date The date on which the Escrow Collection Banks transfer the funds from the Escrow Accounts and the Registrar to the Issue
issues instruction to SCSBs for transfer of funds from the ASBA Accounts to the Public Issue Accounts in terms of the
Shelf Prospectus, the relevant Tranche Prospectus pertaining to a Tranche Issue and the Escrow Agreement.
Designated Stock BSE i.e. BSE Limited
Exchange
Draft Shelf This Draft Shelf Prospectus dated , 2018 filed with the Designated Stock Exchange for receiving public comments and
Prospectus with SEBI in accordance with the provisions of the Act/relevant provisions of the Companies Act, 2013 applicable as on
the date of the Draft Shelf Prospectus and the SEBI Debt Regulations.
Escrow Agreement Agreement dated  entered into amongst our Company, the Registrar, the Escrow Collection Bank(s), the Lead Managers,
for collection of the application amounts and for remitting refunds, if any, of the amounts collected, to the applicants on the
terms and conditions contained therein.
Escrow Account Accounts opened in connection with the Issue with the Escrow Collection Banks and in whose favour the applicant will
issue cheques or bank drafts in respect of the application amount while submitting the application, in terms of the Shelf
Prospectus, relevant Tranche Prospectus and the Escrow Agreement.
ICRA ICRA Limited.
Insurance Insurance companies registered with the IRDA.
Companies
Issue Public issue by the Company of secured redeemable non-convertible debentures of face value of ` 1,000.00 each for an
amount upto the Shelf Limit.
Issue Agreement Agreement dated March 12, 2018 executed between the Company and the Lead Managers.
Issue Opening Date Issue Opening Date as specified in the relevant Tranche Prospectus for the relevant Tranche Issue.
Issue Closing Date Issue Closing Date as specified in the relevant Tranche Prospectus for the relevant Tranche Issue.
Issue Period The period between the Issue Opening Date and the Issue Closing Date inclusive of both days, as provided in the respective
Tranche Prospectus.
Lead Brokers As defined in the relevant Tranche Prospectus for each Tranche.
Lead Managers Edelweiss Financial Services Limited and A. K. Capital Services Limited.
Market Lot 1 NCD.
Members of the Lead Managers and the Lead Brokers.
Syndicate
Options An option of NCDs which are identical in all respects including, but not limited to terms and conditions, listing and ISIN
number and as further stated to be an individual Option in the Shelf Prospectus and relevant Tranche Prospectus.
Offer Document The Draft Shelf Prospectus, the Shelf Prospectus, the relevant Tranche Prospectus and the abridged prospectus.
Public Issue Bank account(s) opened with any of the Bankers to the Issue by our Company under section 40 of the Companies Act, 2013
Account to receive money from the Escrow Accounts on the Designated Date and where the funds shall be transferred by the SCSBs
from the ASBA Accounts.
Record Date The date for payment of interest in connection with the NCDs or repayment of principal in connection therewith which
shall be 15 days prior to the date of payment of interest, and/or the date of redemption under the relevant Tranche
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Term Description
Prospectus. In case the Record Date falls on a day when the Stock Exchange is having a trading holiday, the immediate
subsequent trading day will be deemed as the Record Date.
Refund Account(s) The account(s) opened by our Company with the Refund Bank(s), from which refunds of the whole or part of the
Application Amounts (excluding for the ASBA Applicants), if any, shall be made.
Refund Bank As stated in the relevant Tranche Prospectus.
Registrar to the Issue Link Intime India Private Limited
SEBI Debt SEBI (Issue and Listing of Debt Securities) Regulations, 2008, issued by SEBI, effective from June 06, 2008 as amended
Regulations from time to time.
SEBI ICDR SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended.
Regulations
Secured NCD(s) Secured, redeemable non-convertible debentures for an amount of upto ` 30,000.00 million offered through the Shelf
Prospectus and the relevant Tranche Prospectus(es) of face value of ` 1,000.00 each.
Senior Citizen A person who on the date of the relevant Tranche Issue has attained the age of 65 years or more.
Self Certified The banks which are registered with SEBI under the Securities and Exchange Board of India (Bankers to an Issue)
Syndicate Banks or Regulations, 1994 and offer services in relation to ASBA, including blocking of an ASBA Account, a list of which is
SCSBs available on http://www.sebi.gov.in or at such other website as may be prescribed by SEBI from time to time.
Shelf Limit The aggregate limit of the Issue, being ₹ 30,000.00 million to be issued under the Shelf Prospectus through one or more
Tranche Issues.
Shelf Prospectus The Shelf Prospectus to be filed by our Company with the SEBI, BSE and the RoC in accordance with the provisions of the
Companies Act, 2013 and the SEBI Debt Regulations.
Stock exchange BSE
Syndicate ASBA Application centres at Mumbai, Chennai, Kolkata, Delhi, Ahmedabad, Rajkot, Jaipur, Bengaluru, Hyderabad, Pune,
Application Vadodara and Surat where the members of the Syndicate shall accept ASBA Applications.
Locations
Syndicate SCSB In relation to ASBA Applications submitted to a member of the Syndicate, such branches of the SCSBs at the Syndicate
Branches ASBA Application Locations named by the SCSBs to receive deposits of the Application Forms from the members of the
Syndicate, and a list of which is available on http://www.sebi.gov.in or at such other website as may be prescribed by SEBI
from time to time.
Tier I capital Tier I capital means, owned fund as reduced by investment in shares of other NBFCs and in shares, debentures, bonds,
outstanding loans and advances including hire purchase and lease finance made to and deposits with subsidiaries and
companies in the same group exceeding, in aggregate, ten percent of the owned fund.
Tier II capital Tier-II capital includes the following: (a) preference shares other than those which are compulsorily convertible into equity;
(b) revaluation reserves at discounted rate of 55%; (c) general provisions and loss reserves to the extent these are not
attributable to actual diminution in value or identifiable potential loss in any specific asset and are available to meet
unexpected losses, to the extent of one and one fourth percent of risk weighted assets; (d) hybrid debt capital instruments;
and (e) subordinated debt to the extent the aggregate does not exceed Tier-I capital.
Transaction The slip or document issued by any of the Members of the Syndicate, the SCSBs, or the Trading Members as the case may
Registration Slip or be, to an Applicant upon demand as proof of registration of his Application.
TRS
Tenor Tenor shall mean the tenor of the NCDs as specified in the relevant Tranche Prospectus.
Trading Members Individuals or companies registered with SEBI as “trading members” who hold the right to trade in stocks listed on the
Stock Exchanges, through whom investors can buy or sell securities listed on the Stock Exchange, a list of which are
available on www.bseindia.com (for Trading Members of BSE).
Tranche Issue Issue of the NCDs pursuant to the respective Tranche Prospectus.
Tranche The Tranche Prospectus(es) containing the details of NCDs including interest, other terms and conditions, recent
Prospectus(es) developments, general information, objects, procedure for application, statement of tax benefits, regulatory and statutory
disclosures and material contracts and documents for inspection, in respect of the relevant Tranche Issue.
Trustees / Debenture Trustees for the Debenture Holders in this case being IDBI Trusteeship Services Limited.
Trustee
Working Day All days excluding the second and the fourth Saturday of every month, Sundays and a public holiday in Kochi or Mumbai
or at any other payment centre notified in terms of the Negotiable Instruments Act, 1881, except with reference to Issue
Period where working days shall mean all days, excluding Saturdays, Sundays and public holidays in India or at any other
payment centre notified in terms of the Negotiable Instruments Act, 1881.
*The subscription list shall remain open at the commencement of banking hours and close at the close of banking hours for the period as indicated, with an option for
early closure or extension by such period, as may be decided by the Board or the duly authorised committee of the Board constituted by resolution of the Board dated
July 25, 2011. In the event of such early closure of or extension subscription list of the Issue, our Company shall ensure that notice of such early closure or extension is
given to the prospective investors through an advertisement in a leading daily national newspaper on or before such earlier date or extended date of closure.
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Industry related terms
Term Description
ALCO Asset Liability Committee.

ALM Asset Liability Management.
CRAR Capital to Risk Adjusted Ratio.
ECGC Export Credit Guarantee Corporation of India Limited.
Gold Loans Personal and business loans secured by gold jewelry and ornaments.
IBPC Inter Bank Participation Certificate.
KYC Know Your Customer.
NBFC Non Banking Financial Company.
NBFC-ND Non Banking Financial Company- Non Deposit Taking.
NBFC-ND-SI Non Banking Financial Company- Non Deposit Taking-Systemically Important.
NPA Non Performing Asset.
NRI/Non-Resident A person resident outside India, as defined under the FEMA
NSSO National Sample Survey Organisation.
PPP Purchasing Power Parity.
RRB Regional Rural Bank.
SCB Scheduled Commercial Bank.
Conventional and general terms
Term Description
AADHAR 12-digit unique number which the Unique Identification Authority of India {UIDAI} issues for all residents of India.
AGM Annual General Meeting.
AS Accounting Standard.
BSE BSE Limited.
CAGR Compounded Annual Growth Rate.
CDSL Central Depository Services (India) Limited.
Companies The Companies Act, 2013, to the extend notified by the Ministry of Corporate Affairs, Government of India
Act, 2013
DRR Debenture Redemption Reserve.
EGM Extraordinary General Meeting.
EPS Earnings Per Share.
FDI Policy The Government policy and the regulations (including the applicable provisions of the Foreign Exchange Management
(Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000) issued by the Government of India
prevailing on that date in relation to foreign investments in the Company's sector of business as amended from time to time.
FEMA Foreign Exchange Management Act, 1999, as amended from time to time.
FEMA Regulations Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, as
amended from time to time.
Financial Year / FY Financial Year ending March 31.
GDP Gross Domestic Product.
GoI Government of India.
HUF Hindu Undivided Family.
IFRS International Financial Reporting Standards.
IFSC Indian Financial System Code.
Indian GAAP Generally Accepted Accounting Principles in India.
IRDA Insurance Regulatory and Development Authority.
IT Act The Income Tax Act, 1961, as amended from time to time.
MCA Ministry of Corporate Affairs, Government of India.
MICR Magnetic Ink Character Recognition.
NACH National Automated Clearing House
NEFT National Electronic Funds Transfer.
NSDL National Securities Depository Limited.
NSE National Stock Exchange of India Limited.
PAN Permanent Account Number.
RBI The Reserve Bank of India.
RBI Act The Reserve Bank of India Act, 1934, as amended from time to time.
RTGS Real Time Gross Settlement.
SCRA Securities Contracts (Regulation) Act, 1956, as amended from time to time.
SCRR The Securities Contracts (Regulation) Rules, 1957, as amended from time to time.
SEBI The Securities and Exchange Board of India constituted under the Securities and Exchange Board of India Act, 1992.
SEBI Act The Securities and Exchange Board of India Act, 1992 as amended from time to time.
SEBI LODR Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Regulations
TDS Tax Deducted at Source.
WDM Wholesale Debt Market.
Page | 7
Notwithstanding anything contained herein, capitalised terms that have been defined in the sections titled “Risk Factors”,
“Capital Structure”, “Regulations and Policies”, “History and Main Objects”, “Statement of Tax Benefits”, “Our
Management”, “Disclosures on Existing Financial Indebtedness”, “Pending Proceedings and Statutory Defaults” and “Issue
Procedure” on beginning pages 11, 44, 199, 94, 55, 98, 120, 168 and 147 of this Draft Shelf Prospectus, respectively will have
the meanings ascribed to them in such sections.
Page | 8
FORWARD-LOOKING STATEMENTS
This Draft Shelf Prospectus contains certain “forward-looking statements”. These forward looking statements
generally can be identified by words or phrases such as “aim”, “anticipate”, “believe”, “expect”, “estimate”,
“intend”, “objective”, “future”, “goal”, “plan”, “contemplate”, “propose” “seek to” “project”, “should”, “will”,
“will continue”, “will pursue”, “will likely result” or other words or phrases of similar import. All forward-looking
statements are based on our current plans and expectations and are subject to a number of uncertainties and risks
and assumptions that could significantly and materially affect our current plans and expectations and our future
financial condition and results of operations. Important factors that could cause actual results, including our
financial conditions and results of operations to differ from our expectations include, but are not limited to, the
following:
 General economic and business conditions in India and globally;

 Our ability to successfully sustain our growth strategy;
 Our ability to compete effectively and access funds at competitive cost;
 Unanticipated turbulence in interest rates, equity prices or other rates or prices; the performance of
the financial and capital markets in India and globally;
 The outcome of any legal or regulatory proceedings we are or may become a party to;
 Any disruption or downturn in the economy of southern India;
 Our ability to control or reduce the level of non-performing assets in our portfolio;
 General political and economic conditions in India;
 Change in government regulations;
 Competition from our existing as well as new competitors;
 Our ability to compete with and adapt to technological advances; and
 Occurrence of natural calamities or natural disasters affecting the areas in which our Company has
operations.
For further discussion of factors that could cause our actual results to differ, see the section titled “Risk Factors” on
page 11 of this Draft Shelf Prospectus.
All forward-looking statements are subject to risks, uncertainties and assumptions about our Company that could
cause actual results and valuations to differ materially from those contemplated by the relevant statement.
Additional factors that could cause actual results, performance or achievements to differ materially include, but are
not limited to, those discussed under the sections titled “Industry Overview” and “Our Business”. The forward-
looking statements contained in this Draft Shelf Prospectus are based on the beliefs of management, as well as the
assumptions made by and information currently available to management. Although our Company believes that the
expectations reflected in such forward-looking statements are reasonable at this time, it cannot assure investors that
such expectations will prove to be correct or will hold good at all times. Given these uncertainties, investors are
cautioned not to place undue reliance on such forward-looking statements. If any of these risks and uncertainties
materialise, or if any of our Company’s underlying assumptions prove to be incorrect, our Company’s actual
results of operations or financial condition could differ materially from that described herein as anticipated,
believed, estimated or expected. All subsequent forward-looking statements attributable to our Company are
expressly qualified in their entirety by reference to these cautionary statements.
Neither our Company, its Directors and officers, nor any of their respective affiliates or associates have any
obligation to update or otherwise revise any statements reflecting circumstances arising after the date hereof or to
reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition. In
accordance with SEBI Debt Regulations, the Company and the Lead Managers will ensure that investors in India
are informed of material developments between the date of filing the Shelf Prospectus with the ROC and the date
of the Allotment.
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PRESENTATION OF FINANCIAL AND OTHER INFORMATION
General
In this Draft Shelf Prospectus, unless the context otherwise indicates or implies, references to “you,” “offeree,”
“purchaser,” “subscriber,” “recipient,” “investors” and “potential investor” are to the prospective investors in this
Offering, references to our “Company”, the “Company” or the “Issuer” are to Muthoot Finance Limited.
In this Draft Shelf Prospectus, references to “US$” is to the legal currency of the United States and references to “Rs.”,
“`” and “Rupees” are to the legal currency of India. All references herein to the “U.S.” or the “United States” are to the
United States of America and its territories and possessions and all references to “India” are to the Republic of India
and its territories and possessions, and the "Government", the "Central Government" or the "State Government" are to
the Government of India, central or state, as applicable.
Unless otherwise stated, references in this Draft Shelf Prospectus to a particular year are to the calendar year ended on
December 31 and to a particular “fiscal” or “fiscal year” are to the fiscal year ended on March 31.
Unless otherwise stated all figures pertaining to the financial information in connection with our Company are on an
unconsolidated basis.
Presentation of Financial Information
Our Company publishes its financial statements in Rupees. Our Company’s financial statements are prepared in
accordance with Indian GAAP and the Companies Act, 2013, to the extent applicable.
The Reformatted Summary Financial Statements are included in this Draft Shelf Prospectus. The examination reports on
the Reformatted Summary Financial Statements, as issued by our Company’s Statutory Auditors, Varma and Varma,
are included in this Draft Shelf Prospectus in Annexure A titled “Financial Information” beginning at page A1 of this
Draft Shelf Prospectus.
Any discrepancies in the tables included herein between the amounts listed and the totals thereof are due to rounding
off.
Unless stated otherwise, all industry and market data used throughout this Draft Shelf Prospectus have been obtained
from industry publications and certain public sources. Industry publications generally state that the information
contained in those publications have been obtained from sources believed to be reliable, but that their accuracy and
completeness are not guaranteed and their reliability cannot be assured. Although the Company believes that the
industry and market data used in this Draft Shelf Prospectus is reliable, it has not been verified by us or any
independent sources. Further, the extent to which the market and industry data presented in this Draft Shelf Prospectus
is meaningful depends on the readers’ familiarity with and understanding of methodologies used in compiling such
data.
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SECTION II: RISK FACTORS
Prospective investors should carefully consider the risks and uncertainties described below, in addition to the other
information contained in this Draft Shelf Prospectus including the section titled “Our Business” and Annexure A titled
“Financial Information” at pages 74 and A1of this Draft Shelf Prospectus respectively, before making any
investment decision relating to the NCDs. If any of the following risks or other risks that are not currently known or are
now deemed immaterial, actually occur, our business, financial condition and result of operation could suffer, the
trading price of the NCDs could decline and you may lose all or part of your interest and/or redemption amounts. The
risks and uncertainties described in this section are not the only risks that we currently face. Additional risks and
uncertainties not known to us or that we currently believe to be immaterial may also have an adverse effect on our
business, results of operations and financial condition.
Unless otherwise stated in the relevant risk factors set forth below, we are not in a position to specify or quantify the
financial or other implications of any of the risks mentioned herein. The ordering of the risk factors is intended to
facilitate ease of reading and reference and does not in any manner indicate the importance of one risk factor over
another.
This Draft Shelf Prospectus contains forward looking statements that involve risk and uncertainties. Our Company’s
actual results could differ materially from those anticipated in these forward looking statements as a result of several
factors, including the considerations described below and elsewhere in this Draft Shelf Prospectus.
Unless otherwise stated, financial information used in this section is derived from the Reformatted Financial
Statements as of and for the years ended March 31, 2013, 2014, 2015, 2016 and 2017 prepared under the Indian
GAAP.
INTERNAL RISK FACTORS
Risks relating to our Business and our Company
1. We and certain of our Directors are involved in certain legal and other proceedings (including criminal
proceedings) that if determined against us, could have a material adverse effect on our business, financial
condition and results of operations.
Our Company and certain of our Directors are involved in certain legal proceedings, including criminal
proceedings, in relation to inter alia civil suits, eviction suits and tax claims. These legal proceedings are
pending at different levels of adjudication before various courts and tribunals. For further details in relation to
material legal proceedings, see the section titled “Pending proceedings and statutory defaults” at page 168 of
this Draft Shelf Prospectus.
We cannot provide any assurance in relation to the outcome of these proceedings. Any adverse decision may
have an adverse effect on our business, financial condition and results of operations. Further, there is no
assurance that similar proceedings will not be initiated against us in the future.
2. The “Muthoot” logo and other combination marks are proposed to be registered in the name of our
Promoters. If we are unable to use the trademarks and logos, our results of operations may be adversely
affected. Further, any loss of rights to use the trademarks may adversely affect our reputation, goodwill,
business and our results of operations.
The brand and trademark “Muthoot”, and also related marks and associated logos (“Muthoot Trademarks”)
are currently registered in the name of our Company. We believe that the Muthoot Trademarks are important
for our business.
Our Company proposes to register the Muthoot Trademarks jointly in the name of our Promoters through a
rectification process or irrevocably grant ownership rights by alternate legally compliant means. Pursuant to
applications filed on September 20, 2010 by our Company and our Promoters before the Trade Marks
Registry, Chennai, our Promoters have stated that their father, Late M. George Muthoot, had adopted and had
been using the Muthoot Trademarks since 1939 and that our Promoters had, since the demise of Late M.
George Muthoot, been continuing his business and using the Muthoot Trademarks as its joint proprietors. Our
Company confirms that it has, since incorporation, been using the Muthoot Trademarks as per an implied user
permission granted by our Promoters and that the application for registration of the Muthoot Trademarks in the
Page | 11
name of our Company was filed through inadvertence. Consequently, an application has been made to Trade
Marks Registry, Chennai, to effect a rectification in the Register of Trademarks. Since a rectification process
by application before the Trade Marks Registry, Chennai as mentioned above is underway, and not an
assignment of the Muthoot Trademarks, no independent valuation of the Muthoot Trademarks has been
conducted.
It is proposed that consequent to such rectification, the Promoters will grant our Company a non-exclusive
licence to use the Muthoot Trademarks for an annual royalty equivalent to 1.00% of the gross income of our
Company, subject to a maximum of 3.00% of profit before tax (after charging the royalty) and managerial
remuneration payable by our Company each financial year. Subject to certain other conditions, it is proposed
that this licence would continue until such time that our Promoters, together with the Promoter Group, jointly,
hold at least 50.01% of the paid-up equity share capital of our Company.
Since the rectification is yet to be effected and consequently, no licence has been granted to us as of date, we
cannot assure you that we will be able to obtain a licence to use the Muthoot Trademarks, when registered,
from our Promoters on commercially acceptable terms, or at all. In addition, loss of the rights to use the
Muthoot Trademarks may adversely affect our reputation, goodwill, business and our results of operations.
3. Our business requires substantial capital, and any disruption in funding sources would have a material
adverse effect on our liquidity and financial condition.
Our liquidity and ongoing profitability are, in large part, dependent upon our timely access to, and the costs
associated with, raising capital. Our funding requirements historically have been met from a combination of
borrowings such as term loans and working capital limits from banks and issuance of commercial paper, non-
convertible debentures and equity through public issues and on private placement basis. Thus, our business
depends and will continue to depend on our ability to access diversified low-cost funding sources.
The crisis in the global credit market that began in mid-2007 destabilized the then prevailing lending model by
banks and financial institutions. The capital and lending markets were highly volatile and access to liquidity
had been significantly reduced. In addition, it became more difficult to renew loans and facilities as many
potential lenders and counterparties also faced liquidity and capital concerns as a result of the stress in the
financial markets. If any event of similar nature and magnitude occurs again in the future, it may result in
increased borrowing costs and difficulty in accessing debt in a cost-effective manner. Moreover, we are a
NBFC-ND-SI, and do not have access to public deposits. We are also restricted from inviting interest in our
secured non-convertible debentures which are issued on a private placement basis, by advertising to the public.
[A significant portion of our debt matures each year. Out of our total outstanding debt of ` 210,959.62 million
as of March 31, 2017, an amount of ` 168,647.71 million will mature during the next 12 months. In order to
retire these instruments, we either will need to refinance this debt, which could be difficult in the event of
volatility in the credit markets, or raise equity capital or generate sufficient cash to retire the debt. In the event
that there are disruptions to our sources of funds, our business, results of operations and prospects will be
materially adversely affected.
4. Our financial performance is particularly vulnerable to interest rate risk. If we fail to adequately manage
our interest rate risk in the future it could have an adverse effect on our net interest margin, thereby
adversely affecting our business and financial condition.
Over the last several years, the Government of India has substantially deregulated the financial sector. As a
result, interest rates are now primarily determined by the market, which has increased the interest rate risk
exposure of all banks and financial intermediaries in India, including us.
Our results of operations are substantially dependent upon the level of our net interest margins. Interest rates
are sensitive to many factors beyond our control, including the RBI’s monetary policies, domestic and
international economic and political conditions and other factors. Rise in inflation, and consequent changes in
bank rates, repo rates and reverse repo rates by the RBI has led to an increase in interest rates on loans
provided by banks and financial institutions.
Our policy is to attempt to balance the proportion of our interest-earning assets, which bear fixed interest rates,
with fixed interest rate bearing liabilities. A majority of our liabilities, such as our secured non-convertible
redeemable debentures, subordinated debt and short term loans carry fixed rates of interest and the remaining
Page | 12
borrowings from banks are linked to the respective banks' benchmark prime lending rate/ base rates. As of
March 31, 2017, 56.38% of our borrowings were at fixed rates of interest, comprising primarily of our secured
and unsecured (subordinated debt) non-convertible redeemable debentures (which constituted 38.59% of our
total borrowings). We cannot assure you that we will be able to adequately manage our interest rate risk in the
future and be able to effectively balance the proportion of our fixed rate loan assets and fixed liabilities in the
future. Further, despite this balancing, changes in interest rates could affect the interest rates charged on
interest-earning assets and the interest rates paid on interest-bearing liabilities in different ways. Thus, our
results of operations could be affected by changes in interest rates and the timing of any re-pricing of our
liabilities compared with the re-pricing of our assets.
Furthermore, we are exposed to greater interest rate risk than banks or deposit-taking NBFCs. In a rising
interest rate environment, if the yield on our interest-earning assets does not increase at the same time or to the
same extent as our cost of funds, or, in a declining interest rate environment, if our cost of funds does not
decline at the same time or to the same extent as the yield on our interest-earning assets, our net interest
income and net interest margin would be adversely impacted.
Additional risks arising from increasing interest rates include:
 reductions in the volume of loans as a result of customers’ inability to service high interest rate
payments; and
 reductions in the value of fixed income securities held in our investment portfolio.
There can be no assurance that we will be able to adequately manage our interest rate risk. If we are unable to
address the interest rate risk, it could have an adverse effect on our net interest margin, thereby adversely
affecting our business and financial condition.
5. We may not be able to recover the full loan amount, and the value of the collateral may not be sufficient to
cover the outstanding amounts due under defaulted loans. Failure to recover the value of the collateral
could expose us to a potential loss, thereby adversely affect our financial condition and results of
operations.
We extend loans secured by gold jewelry provided as collateral by the customer. An economic downturn or
sharp downward movement in the price of gold could result in a fall in collateral value. In the event of any
decrease in the price of gold, customers may not repay their loans and the value of collateral gold jewelry
securing the loans may have decreased significantly in value, resulting in losses which we may not be able to
support. Although we use a technology-based risk management system and follow strict internal risk
management guidelines on portfolio monitoring, which include periodic assessment of loan to security value
on the basis of conservative market price levels, limits on the amount of margin, ageing analysis and pre-
determined loan closure call thresholds, no assurance can be given that if the price of gold decreases
significantly, our financial condition and results of operations would not be adversely affected. The impact on
our financial position and results of operations of a decrease in gold values cannot be reasonably estimated
because the market and competitive response to changes in gold values is not pre-determinable.
Additionally, we may not be able to realise the full value of our collateral, due to, among other things, defects
in the quality of gold or wastage on melting gold jewelry into gold bars. In the case of a default, we sell the
collateral gold jewelry only through public auctions primarily to local jewelers and there can be no assurance
that we will be able to sell such gold jewelry at prices sufficient to cover the amounts under default. Moreover,
there may be delays associated with such auction process. A failure to recover the expected value of collateral
security could expose us to a potential loss. Any such losses could adversely affect our financial condition and
results of operations.
We may also be affected by failure of employees to comply with internal procedures and inaccurate appraisal
of credit or financial worth of our clients. Failure by our employees to properly appraise the value of the
collateral provides us with no recourse against the borrower and the loan sanction may eventually result in a
bad debt on our books of accounts. In the event we are unable to check the risks arising out of such lapses, our
business and results of operations may be adversely affected.
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6. We face increasing competition in our business which may result in declining margins if we are unable to
compete effectively. Increasing competition may have an adverse effect on our net interest margin, and, if
we are unable to compete successfully, our market share may decline.
Our principal business is the provision of personal loans to retail customers in India secured by gold jewelry as
collateral. Historically, the Gold Loan industry in India has been largely unorganized and dominated by local
jewelry pawn shops and money lenders, with very few public sector and old generation private sector banks
focusing on this sector. The demand for Gold Loans has increased in recent years in part because of changes in
attitudes resulting in increased demand for Gold Loan products from middle income group persons, whereas
historically demand for our Gold Loan products was predominantly from lower income group customers with
limited access to other forms of borrowings have increased our exposure to competition. The demand for Gold
Loans has also increased due to relatively lower interest rates for Gold Loans compared to the unorganized
money lending sector, increased need for urgent borrowing or bridge financing requirements and the need for
liquidity for assets held in gold and also due to increased awareness among customers of Gold Loans as a
source of quick access to funds.
All of these factors have resulted in us facing increased competition from other lenders in the Gold Loan
industry, including commercial banks and other NBFCs. Unlike commercial banks or deposit-taking NBFCs,
we do not have access to funding from savings and current deposits of customers. Instead, we are reliant on
higher-cost term loans and non-convertible debentures for our funding requirements, which may reduce our
margins compared to competitors. Our ability to compete effectively with commercial banks or deposit-taking
NBFCs will depend, to some extent, on our ability to raise low-cost funding in the future. If we are unable to
compete effectively with other participants in the Gold Loan industry, our business and future financial
performance may be adversely affected.
We operate in largely un-tapped markets in various regions in India where banks operate actively in the Gold
Loan business. We compete with pawnshops and financial institutions, such as consumer finance companies.
Other lenders may lend money on an unsecured basis, at interest rates that may be lower than our service
charges and on other terms that may be more favorable than ours.
Furthermore, as a result of increased competition in the Gold Loan industry, Gold Loans are becoming
increasingly standardised and variable interest rate and payment terms and waiver of processing fees are
becoming increasingly common in the Gold Loan industry in India. There can be no assurance that we will be
able to react effectively to these or other market developments or compete effectively with new and existing
players in the increasingly competitive Gold Loans industry. Increasing competition may have an adverse
effect on our net interest margin and other income, and, if we are unable to compete successfully, our market
share may decline as the origination of new loans declines.
7. We have certain contingent liabilities; in the event any of these contingent liabilities materialise, our
financial condition may be adversely affected.
For the period ended March 31, 2017, we had certain contingent liabilities not provided for, amounting to
` 5,402.67 million. Set forth below is a table highlighting the main heads of contingent liabilities:
` million
Claims against the Company, not acknowledged 5,173.98
as debts
Counter Guarantee provided to banks 228.69
In the event that any of these contingent liabilities materialise, our financial condition may be adversely
affected.
8. We may not be able to successfully sustain our growth strategy. Inability to effectively manage our growth
and related issues could materially and adversely affect our business and impact our future financial
performance.
Our growth strategy includes growing our loan book and expanding the range of products and services offered
to our customers and expanding our branch network. There can be no assurance that we will be able to sustain
our growth strategy successfully, or continue to achieve or grow the levels of net profit earned in recent years,
Page | 14
or that we will be able to expand further or diversify our loan book. Furthermore, there may not be sufficient
demand for such products, or they may not generate sufficient revenues relative to the costs associated with
offering such products and services. Even if we were able to introduce new products and services successfully,
there can be no assurance that we will be able to achieve our intended return on such investments. If we grow
our loan book too rapidly or fail to make proper assessments of credit risks associated with borrowers, a higher
percentage of our loans may become non-performing, which would have a negative impact on the quality of
our assets and our financial condition.
We also face a number of operational risks in executing our growth strategy. We have experienced rapid
growth in our Gold Loan business and our branch network also has expanded significantly, and we are
entering into new, smaller towns and cities within India as part of our growth strategy. Our rapid growth
exposes us to a wide range of increased risks within India, including business risks, such as the possibility that
our number of impaired loans may grow faster than anticipated, and operational risks, fraud risks and
regulatory and legal risks. Moreover, our ability to sustain our rate of growth depends significantly upon our
ability to manage key issues such as selecting and retaining key managerial personnel, maintaining effective
risk management policies, continuing to offer products which are relevant to our target base of customers,
developing managerial experience to address emerging challenges and ensuring a high standard of customer
service. Particularly, we are significantly dependent upon a core management team who oversee the day-to-day
operations, strategy and growth of our businesses. If one or more members of our core management team were
unable or unwilling to continue in their present positions, such persons may be difficult to replace, and our
business and results of operation could be adversely affected. Furthermore, we will need to recruit, train and
integrate new employees, as well as provide continuing training to existing employees on internal controls and
risk management procedures. Failure to train and integrate employees may increase employee attrition rates,
require additional hiring, erode the quality of customer service, divert management resources, increase our
exposure to high-risk credit and impose significant costs on us.
We also plan to expand our Gold Loan business in new geographies outside India. As on December 31, 2017,
we have acquired 60% shareholding of Asia Asset Finance PLC, a registered financial company based in
SriLanka and listed in Colombo Stock Exchange. By this investment, we are seeking synergies by helping the
investee company to operationalize Gold Loan business in their branches drawing on our expertise in this field.
We have limited or no operating experience in these new geographies, and we may encounter difficulties in
entering into new geographies. This may require significant capital investments and commitment of time from
our senior management, and there often is limited or no prospect of earnings in the initial years. Moreover,
there is no assurance that we will be able to expand operations in accordance with our timelines, if at all,
which could result in additional costs and time commitments from our senior management. There also can be
no assurance that our management will be able to develop the skills necessary to successfully manage this
geographical expansion. Our inability to effectively manage any of the above issues could materially and
adversely affect our business and impact our future financial performance.
Furthermore, we have entered new businesses as part of our growth strategy. For example, we own a licence
from RBI under the Payment and Settlement Systems Act, 2007 for acting as a White Label ATM Operator,
which will enable us to operate ATM machines in our branches or other sites, allowing bank customers to
withdraw money using debit/credit cards issued by their respective bank. This service will enable us to earn
‘interchange’ fees from issuing banks, every time a card transaction is undertaken by customers of such issuing
banks at an ATM owned and operated by us, in addition to other fee-based revenue. We have entered the
space of ‘Micro Finance Business’ through acquisition of 64.60% stake in Belstar Investment and Finance Pvt.
Ltd. We have also entered the space of ‘Home Finance Business’ through our wholly owned subsidiary,
Muthoot Homefin (India) Ltd. We have also started ‘Unsecured Personal Loan Business’ in the Company on
‘pilot’ basis. We have little or no operating experience with such businesses, and you should consider the risks
and difficulties we may encounter by entering into new lines of business. New businesses may require
significant capital investments and commitments of time from our senior management, and there often is little
or no prospect of earnings in a new business for several years. Moreover, there is no assurance any new
business we develop or enter will commence/expand in accordance with our timelines, if at all, which could
result in additional costs and time commitments from our senior management. There also can be no assurance
that our management will be able to develop the skills necessary to successfully manage these new business
areas. Our inability to effectively manage any of the above issues could materially and adversely affect our
business and impact our future financial performance.
Page | 15
9. We may not be in compliance with relevant state money lending laws, which could adversely affect our
business. In the event that any state government requires us to comply with the provisions of their respective
state money lending laws, or imposes any penalty, including for prior non-compliance, our business, results
of operations and financial condition may be adversely affected.
There is ambiguity on whether or not NBFCs are required to comply with the provisions of state money
lending laws that establish ceilings on interest rates. Our Company has been specifically exempted from the
provisions of the money lending laws applicable in Andhra Pradesh and Gujarat and there is a blanket
exemption for all NBFCs in Rajasthan. Further, we have also received show cause notices from certain
Government authorities in Karnataka in relation to compliance of local money lending laws, and are currently
involved in criminal proceedings in relation to such money lending laws. The Government of Karnataka has
cancelled the exemption granted to NBFCs from Karnataka Money Lenders Act through Government Order
No. CO 05 CML 2011 dated April 16, 2016. Hon’ble High Court of Karnataka stayed the execution of
Government Order No. CO 05 CML 2011 until further orders by passing an interim order in WP No.36754/16
on July 12, 2016. We also carry out operations in other states such as Tamil Nadu, Madhya Pradesh, and
Maharashtra, where there are money lending laws in operation. In addition, in the event the provisions of any
state specific regulations are extended to NBFCs in the Gold Loan business such as our Company, we could
have increased costs of compliance and our business and operations could be adversely affected, particularly if
low interest rate ceiling norms are imposed on our operations. For further details, please refer to “Pending
proceedings and statutory defaults” at page 168 of this Draft Shelf Prospectus. In the event that any state
government requires us to comply with the provisions of their respective state money lending laws, or imposes
any penalty against us, our Directors or our officers, including for prior non-compliance, our business, results
of operations and financial condition may be adversely affected.
10. A major part of our branch network is concentrated in southern India and any disruption or downturn in
the economy of the region would adversely affect our operations.
As of December 31, 2017, 2,664 out of our 4,303 branches were located in the south Indian states of Tamil
Nadu (937 branches), Kerala (647 branches), Andhra Pradesh (370 branches), Karnataka (456 branches),
Telangana (243 branches), Union Territory of Pondicherry (8 branches) and Andaman & Nicobar (3 branches).
Any disruption, disturbance or breakdown in the economy of southern India could adversely affect the result of
our business and operations. As of March 31, 2017 the south Indian states of Tamil Nadu, Kerala, Andhra
Pradesh, Karnataka, Telangana and the Union Territory of Pondicherry constituted 51.60% of our total Gold
Loan portfolio. Our concentration in southern India exposes us to adverse economic or political circumstances
that may arise in that region as compared to other NBFCs and commercial banks that may have diversified
national presence. If there is a sustained downturn in the economy of southern India, our financial position
may be adversely affected.
11. Our indebtedness and the conditions and restrictions imposed by our financing agreements could restrict
our ability to conduct our business and operations in the manner we desire.
As of March 31, 2017, we had an outstanding debt of ` 210,959.62 million. We may incur additional
indebtedness in the future. Our indebtedness could have several important consequences, including but not
limited to the following:
 a portion of our cash flow may be used towards repayment of our existing debt, which will reduce the
availability of our cash flow to fund our working capital, capital expenditures, acquisitions and other
general corporate requirements;
 our ability to obtain additional financing in the future at reasonable terms may be restricted or our cost
of borrowings may increase due to sudden adverse market conditions, including decreased availability
of credit or fluctuations in interest rates, particularly because a significant proportion of our financing
arrangements are in the form of borrowings from banks;
 fluctuations in market interest rates may adversely affect the cost of our borrowings, as some of our
indebtedness including long term loan from banks are at variable interest rates;
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 there could be a material adverse effect on our business, financial condition and results of operations
if we are unable to service our indebtedness or otherwise comply with financial and other covenants
specified in the financing agreements; and
 we may be more vulnerable to economic downturns, which may limit our ability to withstand
competitive pressures and may reduce our flexibility in responding to changing business, regulatory
and economic conditions.
Moreover, certain of our loans may be recalled by our lenders at any time. If any of these lenders recall their
loans, our cash position, business and operations may be adversely affected.
12. Our financing arrangements contain restrictive covenants that may adversely affect our business and
operations, some of which we are currently in breach of or have breached in the past.
The financing arrangements that we have entered into with certain banks and financial institutions and terms
and conditions for issue of non-convertible debentures issued by us contain restrictive covenants, which among
other things require us to obtain prior permission of such banks, financial institutions or debenture trustees or
to inform them with respect to various activities, including, alteration of our capital structure, changes in
management, raising of fresh capital or debt, payment of dividend, revaluation or sale of our assets,
undertaking new projects, creating subsidiaries, change in accounting policies, or undertaking any merger or
amalgamation, invest by way of share capital or lend to other companies, undertaking guarantee obligations on
behalf of other companies, and creation of further charge on fixed assets. Additionally, certain loan agreements
require us to meet and maintain prescribed financial ratios. Further, under these loan agreements during the
subsistence of the facilities, certain lenders have a right to appoint nominee directors on our Board from time
to time. Furthermore, some of our financing arrangements contain cross default provisions which could
automatically trigger defaults under other financing arrangements, in turn magnifying the effect of an
individual default. Although we attempt to maintain compliance with our covenants or obtain prospective
waivers where possible, we cannot assure you that we will be continuously compliant.
We have breached certain such covenants in the past, and may continue to be inadvertently in technical breach
of, certain covenants under these loan agreements and other financing arrangements. While we are not aware
of any such breaches, and although no bank or financial institution has issued a notice of default to us, if we
are held to be in breach of any financial or other covenants contained in any of our financing arrangements, we
may be required to immediately repay our borrowings either in whole or in part, together with any related
costs, and because of such defaults we may be unable to find additional sources of financing. If any of these
events were to occur, it would likely result in a material adverse effect on our financial condition and results of
operations or even our ability to continue as a going concern.
13. Our Gold Loans are due within one year of disbursement, and a failure to disburse new loans may result in
a reduction of our loan portfolio and a corresponding decrease in our interest income.
The Gold Loans we offer are due within one year of disbursement. The relatively short-term nature of our
loans means that we are not assured of long-term interest income streams compared to businesses that offer
loans with longer terms. In addition, our existing customers may not obtain new loans from us upon maturity
of their existing loans, particularly if competition increases. The short-term nature of our loan products and the
potential instability of our interest income could materially and adversely affect our results of operations and
financial position.
14. If we are not able to control or reduce the level of non-performing assets in our portfolio, the overall quality
of our loan portfolio may deteriorate and our results of operations may be adversely affected.
We may not be successful in our efforts to improve collections and/or enforce the security interest on the gold
collateral on existing as well as future non-performing assets. Moreover, as our loan portfolio increases, we
may experience greater defaults in principal and/or interest repayments. Thus, if we are not able to control or
reduce our level of non-performing assets, the overall quality of our loan portfolio may deteriorate and our
results of operations may be adversely affected. Our gross NPAs as of year ended March 31 2013, 2014, 2015,
2016 and 2017 were ` 5,250.30 million, ` 4,160.51 million, ` 5,116.67 million ` 7,024.61 million and
` 5,621.30 million respectively.
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The Master Directions-Non-Banking Financial Company-Systemically Important Non-Deposit Taking
Company and Deposit Taking Company (Reserve Bank) Directions, 2016 (“Prudential Norms”) prescribe the
provisioning required in respect of our outstanding loan portfolio. Should the overall credit quality of our loan
portfolio deteriorate, the current level of our provisions may not be adequate to cover further increases in the
amount of our non-performing assets. Furthermore, although we believe that our total provision will be
adequate to cover all known losses in our asset portfolio, our current provisions may not be adequate when
compared to the loan portfolios of other financial institutions. Moreover, there also can be no assurance that
there will be no further deterioration in our provisioning coverage as a percentage of gross non-performing
assets or otherwise, or that the percentage of non-performing assets that we will be able to recover will be
similar to our past experience of recoveries of non-performing assets. In the event of any further increase in
our non-performing asset portfolio, there could be an even greater, adverse impact on our results of operations.
15. We face difficulties in carrying out credit risk analyses on our customers, most of whom are individual
borrowers, which could have a material and adverse effect on our results of operations and financial
condition.
Unlike several developed economies, a nationwide credit bureau has only become operational in India in 2000,
so there is less financial information available about individuals, particularly our focus customer segment from
the low to middle income group who typically have limited access to other financing sources. It is therefore
difficult to carry out precise credit risk analyses on our customers. Although we follow certain KYC
procedures at the time of sanctioning a loan, we generally rely on the quality of the gold jewelry provided as
collateral rather than on a stringent analysis of the credit profile of our customers. Although we believe that
our risk management controls are sufficient, we cannot be certain that they will continue to be sufficient or that
additional risk management policies for individual borrowers will not be required. Failure to maintain
sufficient credit assessment policies, particularly for individual borrowers, could adversely affect our credit
portfolio which could have a material and adverse effect on our results of operations and financial condition.
16. Our customer base comprises entirely of individual borrowers, who generally are more likely to be affected
by declining economic conditions than large corporate borrowers. Any decline in the repayment capabilities
of our borrowers, may result in increase in defaults, thereby adversely affecting our business and financial
condition.
Individual borrowers generally are less financially resilient than large corporate borrowers, and, as a result,
they can be more adversely affected by declining economic conditions. In addition, a significant majority of
our customer base belongs to the low to middle income group, who may be more likely to be affected by
declining economic conditions than large corporate borrowers.
Any decline in the economic conditions may impact the repayment capabilities of our borrowers, which may
result in increase in defaults, thereby adversely affecting our business and financial condition.
17. Because we handle high volume of cash and gold jewelry in a dispersed network of branches, we are
exposed to operational risks, including employee negligence, fraud, petty theft, burglary and embezzlement,
which could harm our results of operations and financial position.
As of March 31, 2017, we held cash balance of ` 1,627.32 million and gold jewelry of 148.81 tons. Our
business involves carrying out cash and gold jewelry transactions that expose us to the risk of fraud by
employees, agents, customers or third parties, theft, burglary, and misappropriation or unauthorised
transactions by our employees. Our insurance policies, security systems and measures undertaken to detect and
prevent these risks may not be sufficient to prevent or detect such activities in all cases, which may adversely
affect our operations and profitability. Our employees may also become targets of the theft, burglary and other
crimes if they are present when these crimes are committed, and may sustain physical and psychological
injuries as a result. We may encounter difficulties recruiting and retaining qualified employees due to this risk
and our business and operations may be adversely affected. For example, in the year ended March 31, 2017
(i) we encountered two instances of staff fraud at our Satwari Chowk branch, Jammu and Rohini – Sector 11
branch, Delhi, where ` 2.57 million and ` 0.39 million, respectively were misappropriated by our employees,
(ii) gold ornaments pledged by our customers at our Bangalore – Koramangala branch, and Vandanmedu
branch, against loan amounts of ` 0.44 million and ` 0.42 million, respectively, were reported to be stolen
goods and were seized by the police, and (iii) Ramachandrapuram Branch, Secunderabad of our Company,
where a burglary incident happened in which, loan amount aggregating to ` 73.06 million was stolen.
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Further, we may be subject to regulatory or other proceedings in connection with any unauthorised transaction,
fraud or misappropriation by our representatives and employees, which could adversely affect our goodwill.
The nature and size of the items provided as collateral allow these items to be misplaced or mis-delivered,
which may have a negative impact on our operations and result in losses.
18. A decline in our capital adequacy ratio could restrict our future business growth.
As per extant RBI norms, from March 31, 2011, we are required to maintain a capital adequacy ratio of at least
15% of our risk-weighted assets. Further, RBI has introduced minimum Tier I capital requirement of 12% to
be effective from April 01, 2014 for NBFCs primarily for whom loans against gold jewelry comprise more
than 50% of their financial assets, including us. Our capital adequacy ratio was 24.88% as of March 31, 2017,
with Tier I capital comprising of 21.78%. If we continue to grow our loan portfolio and asset base, we will be
required to raise additional Tier I and Tier II capital in order to continue to meet applicable capital adequacy
ratios and Tier I capital requirements with respect to our business of Gold Loans. There can be no assurance
that we will be able to maintain adequate capital adequacy ratio or Tier I capital by raising additional capital in
the future on terms favourable to us, or at all. Failure to maintain adequate capital adequacy ratio or Tier I
capital may adversely affect the growth of our business. Further, any regulatory change in capital adequacy
requirements imposed by the RBI may have an adverse effect on our results of operation.
19. If we fail to maintain effective internal control over financial reporting in the future, the accuracy and
timing of our financial reporting may be adversely affected.
We have taken steps to enhance our internal controls commensurate to the size of our business, primarily
through the formation of a designated internal audit team with additional technical accounting and financial
reporting experience. However, certain matters such as fraud and embezzlement cannot be eliminated entirely
given the cash nature of our business. While we expect to remedy such issues, we cannot assure you that we
will be able to do so in a timely manner, which could impair our ability to accurately and timely report our
financial position, results of operations or cash flows.
20. We may experience difficulties in expanding our business into additional geographical markets in India,
which may adversely affect our business prospects, financial conditions and results of operations.
While the Gold Loans markets in the south Indian states of Kerala, Tamil Nadu, Andhra Pradesh, Telangana
and Karnataka remains and is expected to remain our primary strategic focus, we also evaluate attractive
growth opportunities in other regions in India and have expanded our operations in the northern, western and
eastern states of India. We may not be able to leverage our experience in southern India to expand our
operations in other regions, should we decide to further expand our operations. Factors such as competition,
culture, regulatory regimes, business practices and customs, customer attitude, sentimental attachments
towards gold jewelry, behavior and preferences in these cities where we may plan to expand our operations
may differ from those in south Indian states of Kerala, Tamil Nadu, Andhra Pradesh, Telangana and Karnataka
and our experience in these states of Kerala, Tamil Nadu, Andhra Pradesh, Telangana and Karnataka may not
be applicable to other geographies. In addition, as we enter new markets and geographical areas, we are likely
to compete not only with other large banks and financial institutions in the Gold Loan business, but also the
local un-organised or semi-organised lenders, who are more familiar with local conditions, business practices
and customs, have stronger relationships with customers and may have a more established brand name.
If we plan to further expand our geographical footprint, our business may be exposed to various additional
challenges, including obtaining necessary governmental approvals, identifying and collaborating with local
business partners with whom we may have no previous working relationship; successfully gauging market
conditions in new markets; attracting potential customers; being susceptible to local laws in new geographical
areas of India; and adapting our marketing strategy and operations to suit regions where different languages are
spoken. Our inability to expand our current operations in additional geographical markets may adversely affect
our business prospects, financial conditions and results of operations.
21. System failures or inadequacy and security breaches in computer systems may adversely affect our
operations and result in financial loss, disruption of our businesses, regulatory intervention or damage to
our reputation.
Our business is increasingly dependent on our ability to process, on a daily basis, a large number of
transactions. Significantly, all our branches are required to send records of transactions, at the end of every
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working day, to a central system for consolidation of branch data. Our financial, accounting or other data
processing systems may fail to operate adequately or become disabled as a result of events that are wholly or
partially beyond our control, including a disruption of electrical or communications services.
If any of these systems do not operate properly or are disabled or if there are other shortcomings or failures in
our internal processes or systems, it could adversely affect our operations and result in financial loss,
disruption of our businesses, regulatory intervention or damage to our reputation. In addition, our ability to
conduct business may be adversely impacted by a disruption in the infrastructure that supports our businesses
and the localities in which we are located.
Our operations also rely on the secure processing, storage and transmission of confidential and other
information in our computer systems and networks. Our computer systems, software and networks may be
vulnerable to unauthorised access, computer viruses or other malicious code and other events that could
compromise data integrity and security.
22. We may not be able to maintain our current levels of profitability due to increased costs or reduced spreads.
Our business involves a large volume of small-ticket size loans and requires manual operational support.
Hence, we require dedicated staff for providing our services. In order to grow our portfolio, our expanded
operations will also increase our manpower requirements and push up operational costs. Our growth will also
require a relatively higher gross spread, or margin, on the lending products we offer in order to maintain
profitability. If the gross spread on our lending products were to reduce, there can be no assurance that we will
be able to maintain our current levels of profitability and it could adversely affect our results of operations.
23. Our ability to access capital also depends on our credit ratings. Any downgrade in our credit ratings would
increase borrowing costs and constrain our access to capital and lending markets and, as a result, would
negatively affect our net interest margin and our business.
The cost and availability of capital is also dependent on our short-term and long-term credit ratings. We have
been assigned an “A1+” rating by CRISIL and “A1+” rating by ICRA for short term debt instruments of
` 40,000.00 million. We have been assigned a “CRISIL AA/Stable” rating by CRISIL for our ` 5,000.00
million non-convertible debentures and our ` 1,000.00 million subordinated debt. ICRA has assigned an
“[ICRA] AA/Stable” rating for our ` 5,000.00 million non-convertible debentures and ` 1,000.00 million
subordinated debt. We have been assigned a long-term rating of “[ICRA] AA/Stable” and a short-term rating
of “A1+” by ICRA for our ` 141,150.00 million line of credit. Ratings reflect a rating agency’s opinion of our
financial strength, operating performance, strategic position, and ability to meet our obligations. Any
downgrade of our credit ratings would increase borrowing costs and constrain our access to debt and bank
lending markets and, as a result, would adversely affect our business. In addition, downgrades of our credit
ratings could increase the possibility of additional terms and conditions being added to any new or replacement
financing arrangements.
24. We may be subject to regulations in respect of provisioning for non-performing assets that are less stringent
than in some other countries. If such provisions are not sufficient to provide adequate cover for loan losses
that may occur, this could have an adverse effect on our financial condition, liquidity and results of
operations.
RBI guidelines prescribe the provisioning required in respect of our outstanding loan portfolio. These
provisioning requirements may require us to reserve lower amounts than the provisioning requirements
applicable to financial institutions and banks in other countries. The provisioning requirements may also
require the exercise of subjective judgments of management.
The level of our provisions may not be adequate to cover further increases in the amount of our non-
performing assets or a decrease in the value of the underlying gold collateral. If such provisions are not
sufficient to provide adequate cover for loan losses that may occur, or if we are required to increase our
provisions, this could have an adverse effect on our financial condition, liquidity and results of operations and
may require us to raise additional capital. For further details, see “Our Business - Non-performing Assets
(NPAs) - Provisioning policy” beginning on page 85 of this Draft Shelf Prospectus.
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25. We are subject to supervision and regulation by the RBI as a non-deposit-taking systemically important
NBFC. In case of any adverse change in the regulations, we may have to comply with stricter regulations
and guidelines issued by regulatory authorities in India which may adversely affect our business, results of
operation and financial condition.
We are regulated principally by and have reporting obligations to the RBI. We are also subject to the
corporate, taxation and other laws in effect in India. The regulatory and legal framework governing us may
continue to change as India’s economy and commercial and financial markets evolve. In recent years, existing
rules and regulations have been modified, new rules and regulations have been enacted and reforms have been
implemented which are intended to provide tighter control and more transparency in India’s Gold Loan
industry. Moreover, new regulations may be passed that restrict our ability to do business.
The amendments made by the RBI in Prudential Norms in March 2012 made it compulsory for NBFCs that are
primarily engaged in lending against gold jewelry, to maintain a loan to value ratio not exceeding 60.00% for
loans granted against the collateral of gold jewelry and to disclose in their balance sheet the percentage of such
loans to their total assets. As a result of this regulatory change, our gross retail loan portfolio declined by
17.15% from ` 263,868.18 million as of March 31, 2013 to ` 218,615.35 million as of March 31, 2014. The
amendments also required that such NBFCs having gold loans at least 50.00% of their financial assets
maintain a minimum Tier I capital of 12.00% by April 1, 2014 and stipulate that they shall not grant any
advance against bullion/primary gold and gold coins. The RBI has also reviewed its guidelines on the Fair
Practice Code for all NBFCs, which among other things, cover general principles relating to adequate
disclosures on the terms and conditions of loans and adopting non-coercive recovery methods. These
amendments further require NBFCs engaged in extending loans against jewelry to put in place adequate
internal policies to ensure, among other things, proper assessment procedures for the jewelry received as
collateral, internal control mechanisms for ascertaining the ownership of gold jewelry, procedures in relation
to storage and safeguard and insurance of gold jewelry and adequate measures for prevention of fraudulent
transactions.
The RBI has, on February 06, 2013, released the final report by the K U B Rao Committee, a committee set up
by the RBI, on issues relating to gold and gold loans by NBFCs for public from stakeholders in the industry
and the public. This report has made a number of significant recommendations in relation to the supply and
imports of gold in India as well as the current legal framework governing gold loan NBFCs. Some of the
significant recommendations of this report include moderation of the demand of gold imports, the introduction
of tax incentives on the instruments that can impound idle gold, reduction of the inter-connectedness of the
gold loan industry with the formal financial systems and monitoring of transactions with gold loan NBFCs
with unincorporated bodies. Significantly, for gold loan NBFCs, the report has recommended, inter alia, the
increase of the loan to value ratio of the underlying gold collateral to 75.00%, the approval of the RBI for the
expansion of branches by a gold loan NBFC in a year in excess of 1,000 branches, rationalization of interest
rates on gold loans including the adoption of an interest rate linked to benchmark bank rates or the maximum
advance rate of the State Bank of India and confining the subscription to privately placed NCDs of gold loan
NBFCs to institutions and high-net worth individuals as opposed to retail investors. In the event that the
recommendations of this report were enacted as law, our operations and compliance cost could be significantly
hampered, which could have an adverse effect on our results of operation and financial condition.
Based on the K. U. B. Rao Committee report, the RBI vide its circular RBI/2013-14/260
DNBS.CC.PD.No.356/03.10.01/2013-14 dated September 16, 2013 issued guidelines with regard to the
following:
i. Appropriate Infrastructure for storage of gold ornaments: A minimum level of physical infrastructure
and facilities is available in each of the branches engaged in financing against gold jewellery
including a safe deposit vault and appropriate security measures for operating the vault to ensure
safety of the gold and borrower convenience. Existing NBFCs should review the arrangements in
place at their branches and ensure that necessary infrastructure is put in place at the earliest. No new
branches should be opened without suitable storage arrangements having been made thereat. No
business of grant of loans against the security of gold can be transacted at places where there are no
proper facilities for storage/security.
ii. Prior approval of RBI for opening branches in excess of 1,000: It is henceforth mandatory for NBFC
to obtain prior approval of the Reserve Bank to open branches exceeding 1,000. However, gold loan
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NBFCs which already have more than 1,000 branches may approach the Bank for prior approval for
any further branch expansion. Besides, no new branches will be allowed to be opened without the
facilities for storage of gold jewellery and minimum security facilities for the pledged gold jewellery.
iii. Standardization of value of gold in arriving at the loan to value ratio: For arriving at the value of gold
jewellery accepted as collateral, it will have to be valued at the average of the closing price of 22 carat
gold for the preceding 30 days as quoted by The Bombay Bullion Association Limited.
iv. Verification of the Ownership of Gold: NBFCs should have Board approved policies in place to
satisfy ownership of the gold jewellery and adequate steps be taken to ensure that the KYC guidelines
stipulated by the Reserve Bank are followed and due diligence of the customer undertaken. Where
the gold jewellery pledged by a borrower at any one time or cumulatively on loan outstanding is more
than 20 grams, NBFCs must keep record of the verification of the ownership of the jewellery. The
method of establishing ownership should be laid down as a Board approved policy.
v. Auction Process and Procedures: The following additional stipulations are made with respect to
auctioning of pledged gold jewellery:
a. The auction should be conducted in the same town or taluka in which the branch that has
extended the loan is located.
b. While auctioning the gold the NBFC should declare a reserve price for the pledged ornaments.
The reserve price for the pledged ornaments should not be less than 85% of the previous 30 day
average closing price of 22 carat gold as declared by The Bombay Bullion Association Limited
and value of the jewellery of lower purity in terms of carats should be proportionately reduced.
c. It will be mandatory on the part of the NBFCs to provide full details of the value fetched in the
auction and the outstanding dues adjusted and any amount over and above the loan outstanding
should be payable to the borrower.
d. NBFCs must disclose in their annual reports the details of the auctions conducted during the
financial year including the number of loan accounts, outstanding amounts, value fetched and
whether any of its sister concerns participated in the auction.
vi. Other Instructions:
a. NBFCs financing against the collateral of gold must insist on a copy of the PAN Card of the
borrower for all transaction above ` 500,000.
b. High value loans of ` 100,000 and above must only be disbursed by cheque.
c. Documentation across all branches must be standardized.
d. NBFCs shall not issue misleading advertisements like claiming the availability of loans in a
matter of 2-3 minutes.
The RBI vide notification number RBI/2013-14/435 DNBS.CC.PD.No.365/03.10.01/2013-14 dated

January 08, 2014 has revised the above mentioned Loan to Value ratio to 75% from 60% in line with the
recommendations of the K. U. B. Rao Committee.
The RBI vide its circular RBI/2012-13/560 DNBD(PD) CC No. 330/03.10.001/2012-13 dated June 27, 2013
and RBI/2013-14/115 DNBS(PD) CC No.349/03.10.001/2013-14 dated July 02, 2013 issued certain guidelines
with respect to raising money through private placement by NBFCs in the form of non-convertible debentures.
These guidelines include restrictions on the number of investors in an issue to 49 investors, minimum
subscription amount for a single investor of ` 2.50 million and in multiples of ` 1.00 million thereafter,
prohibition on providing loan against own debentures, etc. This has resulted in limiting the Company’s ability
to raise fresh debentures on private placement basis and has required us to instead issue debentures through
public issues. Since the change in these regulations in July 2013, we have issued ` 76,009.20 million in
debentures under the public route.
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Compliance with many of the regulations applicable to our operations may involve significant costs and
otherwise may impose restrictions on our operations. We cannot assure you that we will not be subject to any
adverse regulatory action in the future. Further, these regulations are subject to frequent amendments and
depend upon government policy. Our present operations may not meet all regulatory requirements or
subsequent regulatory amendments. If the interpretation of the regulators and authorities varies from our
interpretation, we may be subject to penalties and the business of our Company could be adversely affected.
There can be no assurance that changes in these regulations and the enforcement of existing and future rules by
governmental and regulatory authorities will not adversely affect our business, results of operation and
financial condition.
26. RBI regulations have made our Gold Loans ineligible for securitization, making our cost of funds higher
The RBI has set targets and sub-targets for domestic and foreign banks operating in India to lend to certain
designated priority sectors that impact large sections of the population, weaker sections and sectors that are
employment-intensive such as agriculture, and small enterprises. The target for total priority sector loans for
domestic banks is 40% of their adjusted net bank credit and 32% for foreign banks. Since we operate
predominantly in rural and semi-urban areas, a portion of our lending historically met the priority sector
requirements of RBI. Investments by banks in securitized assets, representing loans to various categories of
priority sector, and outright purchases of any loan asset eligible to be categorized under priority sector on a
risk sharing basis, were different avenues by which banks can meet these priority sector lending targets. In
February 2011, the RBI issued a notification which provides that loans provided by NBFCs against gold
jewelry for agriculture purposes (which purpose is one of the categories of a priority sector advance under
extant guidelines issued by RBI) would not be treated as agricultural advance for priority sector advance.
Further, in another notification issued in July 2012, the RBI stipulated that loans provided by NBFCs against
gold jewelry cannot be treated as for priority sector for banks if transferred through assignment/outright
purchase/investment under securitisation route. Thus, our loan portfolio is no longer classified as a priority
sector advance by the RBI.
In August 2012, RBI modified the extant guidelines relating to securitisation/ direct assignment transaction. In
order to prevent unhealthy practices surrounding securitisation such as origination of loans for the sole purpose
of securitisation and in order to align the interest of the originator with that of the investors and with a view to
redistribute credit risk to a wide spectrum of investors, RBI has felt it necessary that originators should retain a
portion of each securitisation originated and should ensure more effective screening of loans. In addition, a
minimum period of retention of loans prior to securitisation was also considered desirable, to give comfort to
the investors regarding the due diligence exercised by the originator. Further, assets with bullet repayment of
both the principal and the interest amounts cannot be securitised, either whole, or in part. Since our loans are
currently in the form of bullet repayment, they cannot meet such revised guidelines and be subject to
securitisation. The RBI has further stipulated that originating NBFCs can securitise loans only after these have
been held by them for a minimum of three months. The average duration of our loans is around three to six
months and consequently, will not enable us to get funding for a reasonable period under this mode. These
changes have adversely affected our ability to raise funds through this route.
These changes have reduced our ability to raise funds and also at a reasonable cost.
27. Our ability to assess, monitor and manage risks inherent in our business differs from the standards of some
of our counterparts in India and in some developed countries. Inability to effectively manage our risk
management systems can adversely affect our business, financial condition and results of operation.
We are exposed to a variety of risks, including liquidity risk, interest rate risk, credit risk, operational risk and
legal risk. The effectiveness of our risk management is limited by the quality and timeliness of available data.
Our hedging strategies and other risk management techniques may not be fully effective in mitigating our risks
in all market environments or against all types of risk, including risks that are unidentified or unanticipated.
Some methods of managing risks are based upon observed historical market behaviour. As a result, these
methods may not predict future risk exposures, which could be greater than the historical measures indicated.
Other risk management methods depend upon an evaluation of information regarding markets, customers or
other matters. This information may not in all cases be accurate, complete, up-to-date or properly evaluated.
Management of operational, legal or regulatory risk requires, among other things, policies and procedures to
properly record and verify a number of transactions and events. Although we have established these policies
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and procedures, they may not be fully effective. Our future success will depend, in part, on our ability to
respond to new technological advances and emerging financing institution and Gold Loan industry standards
and practices on a cost-effective and timely basis. The development and implementation of such technology
entails significant technical and business risks. There can be no assurance that we will successfully implement
new technologies or adapt our transaction-processing systems to customer requirements or emerging market
standards and any failure to do so can adversely affect our business, financial condition and results of
operation.
28. Any failure by us to identify, manage, complete and integrate acquisitions, divestitures and other significant
transactions successfully could adversely affect our results of operations, business and prospects.
As part of our business strategy, we may acquire complementary companies or businesses, divest non-core
businesses or assets, enter into strategic alliances and joint ventures and make investments to further expand
our business. In order to pursue this strategy successfully, we must identify suitable candidates for and
successfully complete such transactions, some of which may be large and complex, and manage the integration
of acquired companies or employees. We may not fully realise all of the anticipated benefits of any such
transaction within the anticipated timeframe or at all. Any increased or unexpected costs, unanticipated delays
or failure to achieve contractual obligations could make such transactions less profitable or unprofitable.
Managing business combination and investment transactions requires varying levels of management resources,
which may divert our attention from other business operations, may result in significant costs and expenses
and charges to earnings. The challenges involved in integration include:
 combining product offerings and entering into new markets in which we are not experienced;
 consolidating and maintaining relationships with customers;
 consolidating and rationalising transaction processes and corporate and IT infrastructure;
 integrating employees and managing employee issues;
 coordinating and combining administrative and other operations and relationships with third parties in
accordance with applicable laws and other obligations while maintaining adequate standards, controls
and procedures;
 achieving savings from infrastructure integration; and
 managing other business, infrastructure and operational integration issues.
Any such acquisition may also result in earnings dilution, the amortisation of goodwill and other intangible
assets or other charges to operations, any of which could have a material adverse effect on our business,
financial condition or results of operations. These acquisitions may give rise to unforeseen contingent risks or
latent liabilities relating to these businesses that may only become apparent after the merger or the acquisition
is finalised. Such acquisitions could involve numerous additional risks, including, without limitation,
difficulties in the assimilation of the operations, products, services and personnel of any acquired company and
could disrupt our ongoing business, distract our management and employees and increase our expenses.
In addition, in order to finance an acquisition, we may be required to make additional borrowings or may issue
additional Equity Shares, potentially leading to dilution of existing shareholders.
29. In order to be successful, we must attract, retain and motivate key employees, and failure to do so could
adversely affect our business. Failure to hire key executives or employees could have a significant impact
on our operations.
In order to be successful, we must attract, train, motivate and retain highly skilled employees, especially
branch managers and gold assessment technical personnel. If we cannot hire additional personnel or retain
existing qualified personnel, our ability to expand our business will be impaired and our revenue could decline.
Hiring and retaining qualified and skilled managers and sales representatives are critical to our future, and
competition for experienced employees in the Gold Loan industry can be intense. In addition, we may not be
able to hire and retain enough skilled and experienced employees to replace those who leave, or may not be
able to re-deploy and retain our employees to keep pace with continuing changes in technology, evolving
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standards and changing customer preferences. The failure to hire key executives or employees or the loss of
executives and key employees could have a significant impact on our operations.
30. Our insurance coverage may not be adequate to protect us against all potential losses to which we may be
subject. Any liability in excess of our insurance claim could have a material adverse effect on our results of
operations and financial position.
We maintain insurance cover for our free hold real estate and tangible properties and infrastructure at all
owned and leased premises which provide insurance cover against loss or damage by fire, earthquake,
lightning, riot, strike, storm, flood, explosion, aircraft damage, rock slide and missile testing. Further we
maintain insurance cover for employee fidelity, cash and gold in the office premises and in transit which
provides insurance cover against loss or damage by employee theft, burglary, house breaking and hold up. The
aggregate insured value covered by the various insurance policies we have subscribed may be less than the
replacement cost of all covered property and may not be sufficient to cover all financial losses that we may
suffer should a risk materialise. Further, there are many events that could significantly impact our operations,
or expose us to third-party liabilities, for which we may not be adequately insured. If we were to incur a
significant liability for which we were not fully insured, it could have a material adverse effect on our results
of operations and financial position.
31. Our results of operations could be adversely affected by any disputes with our employees.
As of December 31, 2017 we employed 22,933 persons in our operations. Currently our employees do not
belong to any recognized labour union. We do not have a policy of recruiting non-permanent employees or
contract labor. However, from time to time we reappoint, at our discretion, persons who reach the age of 55
years (the age of retirement according to our employment policies) on annual renewable contracts. While we
believe that we maintain good relationships with our employees, there can be no assurance that we will not
experience future disruptions to our operations due to disputes or other problems with our work force, which
may adversely affect our business and results of operations.
32. Our inability to obtain, renew or maintain our statutory and regulatory permits and approvals required to
operate our business may have a material adverse effect on our business, financial condition and results of
operations.
NBFCs in India are subject to strict regulations and supervision by the RBI. In addition to the numerous
conditions required for the registration as a NBFC with the RBI, we are required to maintain certain statutory
and regulatory permits and approvals for our business. In the future, we will be required to renew such permits
and approvals and obtain new permits and approvals for any proposed operations. There can be no assurance
that the relevant authorities will issue any of such permits or approvals in the time-frame anticipated by us or
at all. Failure by us to renew, maintain or obtain the required permits or approvals may result in the
interruption of our operations and may have a material adverse effect on our business, financial condition and
In addition, our branches are required to be registered under the relevant shops and establishments laws of the
states in which they are located. The shops and establishment laws regulate various employment conditions,
including working hours, holidays and leave and overtime compensation. Some of our branches have not
applied for such registration while other branches still have applications for registration pending. If we fail to
obtain or retain any of these approvals or licenses, or renewals thereof, in a timely manner, or at all, our
business may be adversely affected. If we fail to comply, or a regulator claims we have not complied, with any
of these conditions, our certificate of registration may be suspended or cancelled and we shall not be able to
carry on such activities.
33. Major lapses of control, system failures or calamities could adversely impact our business.
We are vulnerable to risks arising from the failure of employees to adhere to approved procedures, failures of
security system, information system disruptions, communication systems failure and data interception during
transmission through external communication channels and networks. Failure to detect these breaches in
security may adversely affect our operations.
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34. Our ability to borrow from various banks may be restricted on account of guidelines issued by the RBI
imposing restrictions on banks in relation to their exposure to NBFCs. Any limitation on our ability to
borrow from such banks may increase our cost of borrowing, which could adversely impact our growth,
business and financial condition.
Under the RBI Master Circular on bank finance to NBFCs issued on July 01, 2013, the exposure (both lending
and investment, including off balance sheet exposures) of a bank to a single NBFC engaged in lending against
collateral of gold jewellery (i.e. such loans comprising 50% or more of its financial assets) should not exceed
7.5%, of the bank's capital funds. Banks may, however, assume exposures on a single NBFC up to 12.5%, of
their capital funds provided the exposure in excess of 7.5% is on account of funds on-lent by the NBFC to the
infrastructure sector. Further, banks may also consider fixing internal limits for their aggregate exposure to all
NBFCs put together and should include internal sub-limit to all NBFCs providing Gold Loans (i.e. such loans
comprising 50% or more of their financial assets), including us.
This limits the exposure that banks may have on NBFCs such as us, which may restrict our ability to borrow
from such banks and may increase our cost of borrowing, which could adversely impact our growth, business
and financial condition.
35. We have entered into certain transactions with related parties. Any transaction with related parties may
involve conflicts of interest.
We have entered into transactions with several related parties, including our Promoters, Directors and related
entities. We can give no assurance that we could not have achieved more favourable terms had such
transactions not been entered into with related parties. Furthermore, it is likely that we will enter into related
party transactions in the future. There can be no assurance that such transactions, individually or in the
aggregate, will not have an adverse effect on our financial condition and results of operations. The transactions
we have entered into and any future transactions with our related parties have involved or could potentially
involve conflicts of interest.
For details regarding our related party transactions entered into by us as on March 31, 2017, see “Financial
Information” at Annexure A beginning on page A1 of this Draft Shelf Prospectus.
36. We have not entered into any definitive agreements to utilise a substantial portion of the net proceeds of the
Issue.
We intend to use the Net Proceeds for the purposes described in “Objects of the Issue” on page 53 of this Draft
Shelf Prospectus. Our management will have broad discretion to use the Net Proceeds and you will be relying
on the judgment of our management regarding the application of these Net Proceeds. Our funding
requirements are based on current conditions and are subject to change in light of changes in external
circumstances or in our financial condition, business or strategy. Our management, in response to the
competitive and dynamic nature of the industry, will have the discretion to revise its business plan from time
to time. Any such change in our plans may require rescheduling of our current plans or discontinuing existing
plans and an increase or decrease in the fund requirements for the objects, at the discretion of the management.
Pending utilisation for the purposes described above, we intend to temporarily invest the funds in interest
bearing liquid instruments including deposits with banks and investments in liquid (not equity) mutual funds.
Such investments would be in accordance with the investment policies approved by our Board from time to
time.
37. We continue to be controlled by our Promoters and they will continue to have the ability to exercise
significant control over us. We cannot assure you that exercise of control by our Promoters will always
favour our best interest.
Our Promoters and Promoter Group hold, 73.63% of our outstanding Equity Shares as on December 31, 2017.
Our Promoters exercise significant control over us, including being able to control the composition of our
Board and determine matters requiring shareholder approval or approval of our Board. Our Promoters may
take or block actions with respect to our business, which may conflict with our interests or the interests of our
minority shareholders. By exercising their control, our Promoters could delay, defer or cause a change of our
control or a change in our capital structure, delay, defer or cause a merger, consolidation, takeover or other
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business combination involving us, discourage or encourage a potential acquirer from making a tender offer or
otherwise attempting to obtain control of us which may not favour our best interest.
38. Our business strategy may change in the future and may be different from that which is contained herein.
Any failure to successfully diversify into other businesses can adversely affect our financial condition.
Our current business strategy is to leverage on our experience in the Gold Loans industry and to expand our
branch network and increase our Gold Loan portfolio. We cannot assure you that we will continue to follow
these business strategies. In the future, we may decide to diversify into other businesses. We may also explore
opportunities for expansion into new geographic markets outside India. We have stated our objectives for
raising funds through the Issue and have set forth our strategy for our future business herein. However,
depending on prevailing market conditions and other commercial considerations, our business model in the
future may change from what is described herein.
We cannot assure you that any diversification into other businesses will be beneficial to us. Further, any failure
to successfully diversify in new businesses can adversely affect our financial condition.
39. Our Promoters, Directors and related entities have interests in a number of entities, which are in businesses
similar to ours and this may result in potential conflicts of interest with us.
Certain decisions concerning our operations or financial structure may present conflicts of interest among our
Promoters, other shareholders, Directors, executive officers and the holders of Equity Shares. Our Promoters,
Directors and related entities have interests in the following entities that are engaged in businesses similar to
ours:
1. Muthoot Vehicle & Asset Finance Limited

2. Geo Bros Muthoot Funds (India) Limited
3. Emgee Muthoot Benefit Fund (India) Limited
4. Muthoot M George Permanent Fund Limited
5. Muthoot Gold Funds Limited
6. Muthoot Synergy Fund Limited
7. Muthoot M George Chits (India) Limited
8. Muthoot Finance UK Limited
Commercial transactions in the future between us and related parties could result in conflicting interests. A
conflict of interest may occur directly or indirectly between our business and the business of our Promoters
which could have an adverse effect on our operations. Conflicts of interest may also arise out of common
business objectives shared by us, our Promoters, Directors and their related entities. Our Promoters, Directors
and their related entities may compete with us and have no obligation to direct any opportunities to us. There
can be no assurance that these or other conflicts of interest will be resolved in an impartial manner.
40. We are significantly dependent on our management team and our ability to attract and retain talent. Loss
of any member from our management team can adversely affect our business and results of operation.
We are significantly dependent upon a core management team which oversees the day-to-day operations,
strategy and growth of our businesses. Many of the key management personnel have been with us since our
inception and have been integral to our development. Our success is largely dependent on the management
team which ensures the implementation of our strategy. If one or more members of our core management team
are unable or unwilling to continue in their present positions, such persons may be difficult to replace, and our
business and results of operation could be adversely affected.
41. Our employees may be the target of theft, burglary and other crimes which may adversely affect our
business, operations, and ability to recruit and retain employees.
We handle large amounts of cash and gold jewelry in our daily operations and are exposed to risks of theft,
burglary and other crimes. Our employees may therefore become targets of violence if they are present when
these crimes are committed, and may sustain physical and psychological injuries as a result of the same. We
may encounter difficulties recruiting and retaining qualified employees due to this risk and our business and
operations may be adversely affected.
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42. Our internal procedures, on which we rely for obtaining information on our customers and loan collateral,
may be deficient and result in business losses.
We rely on our internal procedures for obtaining information on our customers and loan collateral provided.
In the event of lapses or deficiencies in our procedures or in their implementation, we may be subject to
business or operational risk. For example, in the event that we unknowingly receive stolen goods as collateral
from a customer, the goods can be seized by authorities. Once seized by the authorities, gold items will be
stored in court storage facilities without a surety arrangement. No recourse will generally be available to the
Company in the event of such seizure, except the recovery of the loss from the customer.
43. We do not own a majority of our branches of operation. Any termination of arrangements for lease of our
branches or our failure to renew the same in a favourable, timely manner, or at all, could adversely affect
our business and results of operations. Most of the lease agreements entered into by our Company may not
be duly registered or adequately stamped.
Except for 15 branch offices, which are owned by us, all our branches are located on leased premises of which,
some branches are located on premises wherein the underlying lease agreements have currently expired. For
instance, some lease agreements for our branches would have expired and we maybe currently involved in
negotiations for the renewal of these lease agreements. If any of the owners of these premises does not renew
an agreement under which we occupy the premises, attempts to evict us or seeks to renew an agreement on
terms and conditions unfavourable to us, we may suffer a disruption in our operations or increased costs, or
both, which may adversely affect our business and results of operations. For further details in relation to
material eviction proceedings against us, see “Pending proceedings and statutory defaults” at page 168 of this
Further, most of our lease agreements with respect to our immovable properties may not be adequately
stamped or duly registered. Unless such documents are adequately stamped or duly registered, such documents
may be rendered as inadmissible as evidence in a court in India, may not be authenticated by any public
officer, or attract penalty as prescribed under applicable law, which impact our ability to enforce these
agreements effectively, which may result in a material adverse effect on the continuance of the operations and
business of our Company.
44. Our business and activities may be regulated by the Competition Act, 2002.
The Competition Act, 2002 (the “Competition Act”) seeks to prevent business practices that have a material
adverse effect on competition in India. Under the Competition Act, any arrangement, understanding or action
in concert between enterprises, whether formal or informal, which causes or is likely to cause a material
adverse effect on competition in India is void and attracts substantial monetary penalties. Any agreement that
directly or indirectly determines purchase or sale prices, limits or controls production, shares the market by
way of geographical area, market, or number of customers in the market is presumed to have a material
adverse effect on competition. Provisions of the Competition Act relating to the regulation of certain
acquisitions, mergers or amalgamations which have a material adverse effect on competition and regulations
with respect to notification requirements for such combinations came into force on June 1, 2011. The effect of
the Competition Act on the business environment in India is unclear. If we are affected, directly or indirectly,
by the application or interpretation of any provision of the Competition Act, or any enforcement proceedings
initiated by the Competition Commission of India, or any adverse publicity that may be generated due to
scrutiny or prosecution by the Competition Commission of India, it may have a material adverse effect on our
business, prospects, results of operations, cash flows and financial condition
EXTERNAL RISK FACTORS
Risk factors related to India
45. There could be political, economic or other factors that are beyond our control but may have a material
adverse impact on our business and results of operations should they materialize.
The following external risks may have a material adverse impact on our business and results of operations
should any of them materialize:
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 Political instability, a change in the Government or a significant change in the economic and
deregulation policies, in particular, those relating to NBFCs and the Gold Loan industry, could
adversely affect economic conditions in India, and could also adversely affect our financial condition
and results of operations;
 The growth of our business and our performance is linked to the performance of the overall Indian
economy. A slowdown in the economic growth in India, and in particular in the financing
requirements of our customers could adversely affect our business and results of operations;
 Civil unrest, acts of violence, terrorist attacks, regional conflicts or situations or war involving India
or neighbouring countries could materially and adversely affect the financial markets which could
impact our business. Such incidents could impact economic growth or create a perception that
investment in Indian companies have a material adverse effect on the market for securities of Indian
companies, including the NCDs;
 Natural disasters in India may disrupt or adversely affect the Indian economy, which in turn could
adversely affect our business, financial condition and results of operation;
 Any downgrade of India's sovereign rating by international credit rating agencies could adversely
affect our ability to raise additional financing as well as our capital expenditure plans, business and
future financial performance. In such event, our ability to grow our business and operate profitably
would be severely constrained;
 Instances of corruption in India have the potential to discourage investors and derail the growth
prospects of the Indian economy. Corruption creates economic and regulatory uncertainty and could
have an adverse effect on our business, profitability and results of operations; and
 The Indian economy has had sustained periods of high inflation. Should inflation continue to increase
sharply, our profitability and results of operations may be adversely impacted. High rates of inflation
in India could increase our employee costs which could have an adverse effect on our profitability and
46. A decline in India’s foreign exchange reserves may affect liquidity and interest rates in the Indian
economy, which could adversely impact our financial condition.
According to the weekly statistical supplement released by the RBI, India’s foreign exchange reserves totaled
USD 420,590.60 million as on February 23, 2018 (Source: RBI Website as on March 02, 2018). A decline in
India’s foreign exchange reserves could impact the valuation of the Rupee and could result in reduced liquidity
and higher interest rates which could adversely affect our financial condition.
47. Companies operating in India are subject to a variety of central and state government taxes and surcharges.
Any increase in tax rates could adversely affect our business and results of operations.
Tax and other levies imposed by the central and state governments in India that affect our tax liability include
central and state taxes and other levies, income tax, value added tax, turnover tax, goods and service tax, stamp
duty and other special taxes and surcharges which are introduced on a temporary or permanent basis from time
to time. Moreover, the central and state tax scheme in India is extensive and subject to change from time to
time. The statutory corporate income tax in India, which includes a surcharge on the tax and an education cess
on the tax and the surcharge, is currently 34.608%. The central or state government may in the future increase
the corporate income tax it imposes. Any such future increases or amendments may affect the overall tax
efficiency of companies operating in India and may result in significant additional taxes becoming payable.
Additional tax exposure could adversely affect our business and results of operations.
48. Public companies in India falling under specific categories as notified under Companies Act , 2013, are
required to prepare financial statements under new accounting standards namely IND AS w.e.f financial
year 2016-17. Currently, this is made applicable to NBFCs from financial year 2018-2019. We may be
negatively affected by this transition.
On 30 March 2016, the Ministry of Corporate Affairs (MCA) notified the Companies (Indian Accounting
Standards) (Amendment) Rules, 2016, which include a road map for implementation of Indian Accounting
Page | 29
Standards (Ind AS) by Non-Banking Financial Companies (NBFCs) (NBFC road map). NBFCs will be
required to comply with Ind AS in a phased manner, from accounting periods beginning on or after 1 April
2018 for the first phase and 1 April 2019 for the second phase. Their holding, subsidiary, joint venture or
associate companies, other than those companies already covered under the road map for companies issued by
MCA (corporate road map) in February 2015 also will come under this transition
We come under the first phase of implementation. We have not determined with any degree of certainty the
impact that such adoption will have on our financial reporting. Additionally, IND AS has fundamental
differences with the existing accounting standards and therefore, financial statements prepared under IND AS
may differ substantially from financial statements prepared under the existing framework of accounting
standards. There can be no assurance that our financial condition, results of operation, cash flows or changes
in shareholders’ equity will not appear materially different under IND AS, Indian GAAP or IFRS. If we adopt
IND AS reporting, we may encounter difficulties in the ongoing process of implementing and enhancing our
management information systems. There can be no assurance that our adoption of IND AS will not affect our
reported results of operations, financial condition and failure to successfully adopt IND AS in accordance with
prescribed statutory and/ or regulatory requirements within the timelines as may be prescribed may have an
adverse effect on our financial position and results of operations. The above uncertainties also exist in case of
our subsidiaries and correspondingly its impact on consolidated financial statements
49. Changing laws, rules and regulations and legal uncertainties, including adverse application of tax laws and
regulations, may adversely affect our business and financial performance.
Our business and financial performance could be adversely affected by unfavourable changes in or
interpretations of existing, or the promulgation of new laws, rules and regulations applicable to us and our
business.
There can be no assurance that the Government of India may not implement new regulations and policies
which will require us to obtain approvals and licenses from the Government of India and other regulatory
bodies or impose onerous requirements and conditions on our operations. Any such changes and the related
uncertainties with respect to the applicability, interpretation and implementation of any amendment to, or
change to governing laws, regulation or policy in the jurisdictions in which we operate may have a material
adverse effect on our business, financial condition and results of operations. In addition, we may have to incur
expenditures to comply with the requirements of any new regulations, which may also materially harm our
results of operations. Any unfavourable changes to the laws and regulations applicable to us could also subject
us to additional liabilities.
The application of various Indian tax laws, rules and regulations to our business, currently or in the future, is
subject to interpretation by the applicable taxation authorities. If such tax laws, rules and regulations are
amended, new adverse laws, rules or regulations are adopted or current laws are interpreted adversely to our
interests, the results could increase our tax payments (prospectively or retrospectively) and/or subject us to
penalties. Further, changes in capital gains tax or tax on capital market transactions or sale of shares could
affect investor returns. As a result, any such changes or interpretations could have an adverse effect on our
business and financial performance.
Further, the Government of India has on July 1, 2017, introduced a comprehensive national goods and services
tax ("GST") regime that combines taxes and levies by the central and state Governments into a unified rate
structure. While the Government of India and other state governments have announced that all committed
incentives will be protected under the GST, given the limited availability of information in the public domain
concerning the GST, we are unable to provide any assurance as to this or any other aspect of the tax regime.
Any such future increases or amendments may affect the overall tax efficiency of companies operating in India
and may result in significant additional taxes becoming payable.
Risks relating to the Issue and the NCDs
50. We cannot guarantee the accuracy or completeness of facts and other statistics with respect to India, the
Indian economy and the NBFC and Gold Loan industries contained in this Draft Shelf Prospectus.
While facts and other statistics in this Draft Shelf Prospectus relating to India, the Indian economy as well as
the Gold Loan industry has been based on various publications and reports from agencies that we believe are
reliable, we cannot guarantee the quality or reliability of such materials, particularly since there is limited
Page | 30
publicly available information specific to the Gold Loan industry. While we have taken reasonable care in the
reproduction of such information, industry facts and other statistics have not been prepared or independently
verified by us or any of our respective affiliates or advisers and, therefore we make no representation as to
their accuracy or completeness. These facts and other statistics include the facts and statistics included in the
section titled “About the Issuer and Industry Overview” at page 67 of this Draft Shelf Prospectus. Due to
possibly flawed or ineffective data collection methods or discrepancies between published information and
market practice and other problems, the statistics herein may be inaccurate or may not be comparable to
statistics produced elsewhere and should not be unduly relied upon. Further, there is no assurance that they are
stated or compiled on the same basis or with the same degree of accuracy, as the case may be, elsewhere.
51. There are other lenders and debenture trustees who have pari passu charge over the Security provided
There are other lenders and debenture trustees of the Company who have pari passu charge over the Security
provided for the Issue. While the Company is required to maintain an asset cover of 1 time the outstanding
amount of the NCDs and interest thereon, upon the Company’s bankruptcy, winding-up or liquidation, the
other lenders and debenture trustees will rank pari passu with the NCD holders and to that extent, may reduce
the amounts recoverable by the NCD holders.
52. Changes in interest rate may affect the price of our NCD. Any increase in rate of interest, which frequently
accompany inflation and/or a growing economy, are likely to have a negative effect on the price of our
NCDs.
All securities where a fixed rate of interest is offered, such as our NCDs, are subject to price risk. The price of
such securities will vary inversely with changes in prevailing interest rates, i.e. when interest rates rise, prices
of fixed income securities fall and when interest rates drop, the prices increase. The extent of fall or rise in the
prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of
prevailing interest rates. Increased rates of interest, which frequently accompany inflation and/or a growing
economy, are likely to have a negative effect on the price of our NCDs.
53. You may not be able to recover, on a timely basis or at all, the full value of the outstanding amounts and/or
the interest accrued thereon in connection with the Secured NCDs. Failure or delay to recover the expected
value from a sale or disposition of the assets charged as security in connection with the Secured NCDs
could expose you to a potential loss.
Our ability to pay interest accrued on the Secured NCDs and/or the principal amount outstanding from time to
time in connection therewith would be subject to various factors inter-alia including our financial condition,
profitability and the general economic conditions in India and in the global financial markets. We cannot
assure you that we would be able to repay the principal amount outstanding from time to time on the Secured
NCDs and/or the interest accrued thereon in a timely manner or at all. Although our Company will create
appropriate security in favour of the Debenture Trustee for the Secured NCD holders on the assets adequate to
ensure 100.00% asset cover for the Secured NCDs, which shall be free from any encumbrances, the realisable
value of the assets charged as security, when liquidated, may be lower than the outstanding principal and/or
interest accrued thereon in connection with the Secured NCDs. A failure or delay to recover the expected
value from a sale or disposition of the assets charged as security in connection with the Secured NCDs could
expose you to a potential loss.
54. If we do not generate adequate profits, we may not be able to maintain an adequate DRR for the NCDs
issued pursuant to the Draft Shelf Prospectus, which may have a bearing on the timely redemption of the
NCDs by our Company.
Section 71 of the Companies Act, 2013, read with Rule 18 made under Chapter IV of the Companies
Act, 2013, requires any company that intends to issue debentures must create a DRR for the purpose of
redemption of debentures, in accordance with the following conditions: (a) the DRR shall be created out of the
profits of the company available for payment of dividend, (b) the DRR shall be equivalent to at least 25% of
the value of the outstanding debentures, raised through public issue of debentures in accordance with the SEBI
Debt Regulations in case of NBFCs registered with the RBI and no DRR is required in the case of privately
placed debentures. Accordingly our Company is required to create a DRR of 25% of the value of the
outstanding NCDs issued through the Issue. In addition, as per Rule 18 (7) (e) under Chapter IV of the
Companies Act, 2013, the amounts credited to DRR shall not be utilised by our Company except for the
redemption of the NCDs. Every company required to create or maintain a DRR shall before the 30th day of
Page | 31
April of each year, deposit or invest, as the case may be, a sum which shall not be less than 15% of the amount
of its debentures maturing during the year ending on the 31st day of March, following any one or more of the
following methods: (a) in deposits with any scheduled bank, free from charge or lien (b) in unencumbered
securities of the Central Government or of any State Government; (c) in unencumbered securities mentioned in
clauses (a) to (d) and (ee) of section 20 of the Indian Trusts Act, 1882; (d) in unencumbered bonds issued by
any other company which is notified under clause (f) of section 20 of the Indian Trusts Act, 1882. The amount
deposited or invested, as the case may be, shall not be utilized for any purpose other than for the repayment of
debentures maturing during the year referred to above, provided that the amount remaining deposited or
invested, as the case may be, shall not at any time fall below 15.00% of the amount of debentures maturing
during the 3lst day of March of that year. This may have a bearing on the timely redemption of the NCDs by
our Company.
55. There may be no active market for the NCDs on the retail debt market/capital market segment of the BSE.
As a result the liquidity and market prices of the NCDs may fail to develop and may accordingly be
adversely affected.
There can be no assurance that an active market for the NCDs will develop. If an active market for the NCDs
fails to develop or be sustained, the liquidity and market prices of the NCDs may be adversely affected. The
market price of the NCDs would depend on various factors inter alia including (i) the interest rate on similar
securities available in the market and the general interest rate scenario in the country, (ii) the market price of
our Equity Shares, (iii) the market for listed debt securities, (iv) general economic conditions, and, (v) our
financial performance, growth prospects and results of operations. The aforementioned factors may adversely
affect the liquidity and market price of the NCDs, which may trade at a discount to the price at which you
purchase the NCDs and/or be relatively illiquid.
56. There may be a delay in making refund to Applicants.
We cannot assure you that the monies refundable to you, on account of (i) withdrawal of your applications, (ii)
our failure to receive minimum subscription in connection with the Base Issue, (iii) withdrawal of the Issue, or
(iv) failure to obtain the final approval from the BSE for listing of the NCDs, will be refunded to you in a
timely manner. We however, shall refund such monies, with the interest due and payable thereon as prescribed
under applicable statutory and/or regulatory provisions.
57. Any downgrading in credit rating of our NCDs may adversely affect the value of NCDs and thus our ability
to raise further debts.
The Secured NCDs for an amount of upto ` 30,000.00 million proposed to be issued under the Issue have been
rated “[ICRA] AA/Stable” by ICRA vide its letter dated March 06, 2018. The Secured NCDs for an amount of
upto ` 30,000.00 proposed to be issued under the Issue have been rated “[CRISIL] AA/Stable” by CRISIL
vide its letter dated March 07, 2018. The rating of the Secured NCDs by ICRA and CRISIL indicates a high
degree of safety regarding timely servicing of financial obligations.
The rating provided by ICRA and CRISIL may be suspended, withdrawn or revised at any time by the
assigning rating agency and should be evaluated independently of any other rating. These ratings are not a
recommendation to buy, sell or hold securities and investors should take their own decisions. Please refer to
pages 247 to262 of this Draft Shelf Prospectus for rating letters and rationale for the above rating.
58. Securities on our Secured NCDs rank as pari passu with our Company’s secured indebtedness.
Substantially all of our Company’s current assets represented mainly by the Gold Loan receivables are being
used to secure our Company’s debt. As of March 31, 2017, our Company’s secured debt was ` 153,557.71
million. Securities on our Secured NCDs will rank pari passu with any of our Company’s secured obligations
with respect to the assets that secure such obligations. The terms of the NCDs do not prevent our Company
from incurring additional debt. In addition, the Secured NCDs will rank pari passu to the existing and future
indebtedness and other secured liabilities and obligations of our Company.
Page | 32
59. Payments to be made on the NCDs will be subordinated to certain tax and other liabilities preferred by law.
In the event of bankruptcy, liquidation or winding-up, there may not be sufficient assets remaining to pay
amounts due on the NCDs.
The Secured NCDs will be subordinated to certain liabilities preferred by law such as the claims of the
Government on account of taxes, and certain liabilities incurred in the ordinary course of our business. In
particular, in the event of bankruptcy, liquidation or winding-up, our Company’s assets will be available to pay
obligations on the Secured NCDs only after all of those liabilities that rank senior to these Secured NCDs have
been paid as per section 327 of the Companies Act, 2013. In the event of bankruptcy, liquidation or winding-
up, there may not be sufficient assets remaining to pay amounts due on the Secured NCDs.
60. The fund requirement and deployment mentioned in the Objects of the Issue have not been appraised by
any bank or financial institution
We intend to use the proceeds of the Issue, after meeting the expenditures of and related to the Issue, for our
various financing activities including lending, subject to applicable statutory and/or regulatory requirements,
and for general corporate purposes including repayment of our existing loans and for our capital expenditure
and working capital requirements. For further details, see the section titled “Objects of the Issue” at page 53 of
this Draft Shelf Prospectus. The fund requirement and deployment is based on internal management estimates
and has not been appraised by any bank or financial institution. The management will have significant
flexibility in applying the proceeds received by us from the Issue. Further, as per the provisions of the SEBI
Debt Regulations, we are not required to appoint a monitoring agency and therefore no monitoring agency has
been appointed for the Issue.
61. This Draft Shelf Prospectus includes certain unaudited financial information, which has been subjected to
limited review, in relation to our Company. Reliance on such information should, accordingly, be limited.
This Draft Shelf Prospectus includes certain unaudited financial information in relation to our Company, for
the quarter ended June 30, 2017, and quarter/half year ended September 30, 2017 and quarter/nine months
ended December 31, 2017, in respect of which the Statutory Auditors of our Company have issued their
Limited Review Reports dated August 08, 2017, November 08, 2017 and February 08, 2018. As this financial
information has been subject only to limited review as required by regulation 52(2) of Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as described in
Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the
Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India, and not to an
audit, any reliance by prospective investors on such unaudited financial information should accordingly, be
limited. Moreover, our financial results for any given fiscal quarter or period, including the quarter ended
June 30, 2017, quarter/half year ended September 30, 2017 and quarter/nine months ended December 31, 2017
may not be directly comparable with our financial results for any full fiscal or for any other fiscal quarter or
period. Accordingly, prospective investors to the Issue are advised to read such unaudited financial
information in conjunction with the audited financial information provided elsewhere in this Draft Shelf
Prospectus.
62. Security provided for the Issue may not be enforceable if the security provided for the Issue is classified as
‘Assets’ under the IT Act and will be void as against any claim in respect of any tax or any other sum
payable by our Company.
We have certain proceedings pending under the IT Act before the Income Tax Appellate Tribunal. Under
section 281 of the IT Act and circular bearing number 04/2011 dated July 19, 2011, our Company is required
to obtain prior consent of the assessing officer to create the security provided for the Issue to the extent
classified as assets under section 281 of the IT Act, during the pendency of such proceedings. We have made
an application to the relevant assessing officer seeking such prior consent on January 16, 2018. In the event
that such consent is not granted, the security provided for the Issue to the extent classified as ‘Assets’ under
section 281 of the IT Act will be void as against any claim in respect of any tax or any other sum payable by
our Company, including as a result of the completion of these proceedings.
Page | 33
Prominent Notes:
 This is a public issue of upto ` 30,000.00 million secured redeemable non-convertible debentures of face value
of ` 1,000 each (“NCDs”) (“Shelf Limit”). The NCDs will be issued in one or more tranches up to the Shelf
Limit, on terms and conditions as set out in the relevant tranche prospectus for any tranche issue (each a
"Tranche Issue"), which issue is being made pursuant to the provisions of Securities and Exchange Board Of
India (Issue and Listing Of Debt Securities) Regulations, 2008 as amended (the "SEBI Debt Regulations"), the
Companies Act, 2013 and rules made thereunder as amended to the extent notified.
 For details on the interest of our Company's Directors, see the sections titled "Our Management" and "Capital
Structure" beginning at pages 98 and 44of this Draft Shelf Prospectus respectively.
 Our Company has entered into certain related party transactions, within the meaning of AS 18 as notified by
the Companies (Accounting Standards) Rules, 2006, as disclosed in Annexure A titled "Financial
Information" beginning on page A1 of this Draft Shelf Prospectus.
 Any clarification or information relating to the Issue shall be made available by the Lead Managers and our
Company to the investors at large and no selective or additional information would be available for a section
of investors in any manner whatsoever.
 Investors may contact the Registrar to the Issue, Compliance Officer, the Lead Managers for any complaints
pertaining to the Issue. In case of any specific queries on allotment/refund, Investor may contact the Registrar
to the Issue.
 In the event of oversubscription to the Issue, allocation of NCDs will be as per the "Basis of Allotment" set out
on page 165 of this Draft Shelf Prospectus.
 Our Equity Shares are listed on the NSE and BSE. Our non-convertible debentures issued pursuant to
seventeen public issues in the past are listed on NSE and/or BSE.
 As of March 31, 2017, we had certain contingent liabilities not provided for, amounting to ` 5,402.68 million.
For further information on such contingent liabilities, see “Financial Information” at Annexure A on page A1
of this Draft Shelf Prospectus.
 For further information relating to certain significant legal proceedings that we are involved in, see "Pending
Proceedings and Statutory Defaults" beginning on page 168 of this Draft Shelf Prospectus.
Page | 34
SECTION III: INTRODUCTION
GENERAL INFORMATION
Our Company was originally incorporated as a private limited company on March 14, 1997 under the provisions of the
Companies Act, 1956, with the name “The Muthoot Finance Private Limited”. Subsequently, by a fresh certificate of
incorporation dated May 16, 2007, our name was changed to “Muthoot Finance Private Limited”. Our Company was
converted into a public limited company on November 18, 2008 with the name “Muthoot Finance Limited” and received a
fresh certificate of incorporation consequent to change in status on December 02, 2008 from the Registrar of Companies,
Kerala and Lakshadweep. Muthoot Fin Corp Limited is neither a related company nor is a company under the same
management within the meaning of the Companies Act, 1956*. For further details regarding the Promoters and the group
companies please refer to “Our Promoters” at page 115 of this Draft Shelf Prospectus.
*Disclosure made in accordance with letter from SEBI bearing no. IMD/DOF-1/BM/VA/OW/22785/2013 dated October 30, 2013.
Registered Office
Muthoot Finance Limited

2nd Floor, Muthoot Chambers
Opposite Saritha Theatre Complex
Banerji Road
Kochi 682 018
Kerala, India
Tel: (+91 484) 239 4712
Fax: (+91 484) 239 6506
Website: www.muthootfinance.com
Email: [email protected]
For details of change in registered office, refer to the section titled “History and Main Objects” on page 94 of this Draft
Shelf Prospectus.
Registration
Registration Number: 011300
Corporate Identity Number: L65910KL1997PLC011300 issued by the Registrar of Companies, Kerala and Lakshadweep.
Certificate of registration bearing number N. 16.00167 under Section 45IA of the RBI Act, 1934 from the RBI dated
December 12, 2008 from the RBI to carry on the business of a non-banking financial institution without accepting public
deposits.
Chief Financial Officer
Oommen K. Mammen
Banerji Road
Kochi 682 018
Kerala, India
Tel: (+91 484) 2397156
Fax: (+91 484) 2396506
Company Secretary and Compliance Officer
Maxin James
Banerji Road
Kochi 682 018
Page | 35
Kerala, India
Tel: (+91 484) 6690247
Fax: (+91 484) 2396506
Investors may contact the Registrar to the Issue or the Compliance Officer in case of any pre-issue or post-issue related
issues such as non-receipt of Allotment Advice, demat credit of allotted NCDs, refund orders or interest on application
money.
All grievances relating to the Issue or any relevant Tranche Issue may be addressed to the Registrar to the Issue, giving
full details such as name, Application Form number, address of the Applicant, number of NCDs applied for, amount paid
on application, Depository Participant and the collection centre of the Members of the Syndicate where the Application
was submitted.
All grievances relating to the ASBA process may be addressed to the Registrar to the Issue with a copy to the relevant
SCSB, giving full details such as name, address of Applicant, Application Form number, number of NCDs applied for,
amount blocked on Application and the Designated Branch or the collection centre of the SCSB where the Application
Form was submitted by the ASBA Applicant.
All grievances arising out of Applications for the NCDs made through the Online Stock Exchanges Mechanism or through
Trading Members may be addressed directly to the respective Stock Exchanges.
Lead Managers
Edelweiss Financial Services Limited

Edelweiss House
Off CST Road, Kalina
Mumbai 400 098
Tel: +91 22 4086 3535
Fax: +91 22 4086 3610
Investor Grievance Email:
[email protected]
Website: www.edelweissfin.com
Contact Person: Mr. Lokesh Singhi / Mr. Mandeep Singh
Compliance Officer: Mr. B Renganathan
SEBI Registration No.: INM0000010650
A. K. Capital Services Limited

30-39, Free Press House
3rd Floor, Free Press Journal Marg,
215, Nariman Point
Mumbai - 400 021, India
Tel: (91 22) 67546500, 66349300
Fax: (91 22) 66100594
Investor Grievance Email: [email protected]
Website: www.akgroup.co.in
Contact Person: Ms. Shilpa Pandey/ Mr. Malay Shah
Compliance Officer: Mr. Tejas Davda
SEBI Registration No.: INM000010411
Debenture Trustee
IDBI Trusteeship Services Limited

Asian Building, Ground Floor
17 R, Kamani Marg, Ballard Estate
Mumbai 400 001, India
Tel: (+91 22) 4080 7000
Fax: (91 22) 6631 1776
Page | 36
Website: www.idbitrustee.co.in
Contact Person: Anjalee Athalye
SEBI Registration No.: IND000000460
IDBI Trusteeship Services Limited has by its letter dated March 09, 2018 given its consent for its appointment as
Debenture Trustee to the Issue and for its name to be included in this Draft Shelf Prospectus or the relevant Tranche
Prospectus and in all the subsequent periodical communications sent to the holders of the Debentures issued pursuant to
this Issue.
Registrar to the Issue
Link Intime India Private Limited

C 101, 247 Park , L B S Marg
Vikhroli West,
Tel: (+91 22) 4918 6200
Fax: (+91 22) 4918 6195
Website: www.linkintime.co.in
Contact Person: Sumeet Deshpande
SEBI Registration No.: INR000004058
Link Intime India Private Limited has by its letter dated March 09, 2018 given its consent for its appointment as
Registrar to the Issue and for its name to be included in this Draft Shelf Prospectus or the relevant Tranche Prospectus
and in all the subsequent periodical communications sent to the holders of the Debentures issued pursuant to this Issue.
Statutory Auditors
Varma & Varma

Chartered Accountants
"Sreeraghavam", Kerala Varma Tower,
Bldg No. 53/2600 B, C, D & E,
Off Kunjanbava Road, Vyttila P.O.,
Kochi- 682019
Tel: 91 – 484 – 2306065
Fax: 91 – 484 – 2306046
Firm Registration No.: 0045325
Varma & Varma, chartered accountants, has been the statutory auditor of the Company since September 20, 2017.
Previously, Rangamani & Co. has been the statutory auditor of the Company since September 2002 and continued as
the statutory auditor of the Company till September 20, 2017. Members of the Company in their annual general
meeting dated September 20, 2017 appointed Varma & Varma, Chartered Accountants (FRN: 0045325) in place of the
retiring auditors M/s. Rangamani & Co.
Credit Rating Agencies
ICRA Limited
Building No. 8, 2nd Floor,
Tower A, DLF Cyber City, Phase II,
Gurgaon – 122 002
Telephone: (+91) (124) 4545 310
Facsimile: (+91) (124) 4050 424
Contact Person: Mr. Amit Kumar Gupta
Website: www.icra.in
SEBI Registration Number: IN/CRA/008/2015
Page | 37
CRISIL Limited
CRISIL House, Central Avenue
Hiranandani Business Park, Powai
Telephone: (+91 22) 3342 3000 (B)
Facsimile: (+91 22) 3342 3050
Contact Person: Mr. Krishnan Sitaraman
Website: www.crisil.com
SEBI Registration Number: IN/CRA/001/1999
Disclaimer clause of ICRA
"This rating is specific to the terms and conditions of the proposed issue as was indicated to us by you and any change
in the terms or size of the issue would require the rating to be reviewed by us. If there is any change in the terms and
conditions or size of the instrument rated, as above, the same must be brought to our notice before the issue of the
instrument. If there is any such change after the rating is assigned by us and confirmed to use by you, it would be
subject to our review and may result in change in the rating assigned.
ICRA reserves the right to suspend, withdraw or revise the above at any time on the basis of new information or
unavailability of information or such other circumstances, which ICRA believes, may have an impact on the rating
assigned to you.
The rating, as aforesaid, however, should not be treated as a recommendation to buy, sell or hold the bonds to be issued
by you. If the instrument rated, as above, is not issued by you within a period of 3 months from the date of this letter
communicating this rating, the same would stand withdrawn unless revalidated before the expiry of 3 months."
Disclaimer clause of CRISIL
"CRISIL Limited (CRISIL) has taken due care and caution in preparing the Material based on the information provided
by its client and / or obtained by CRISIL from sources which it considers reliable (Information). A CRISIL rating
reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and
does not constitute an audit of the rated entity by CRISIL. CRISIL does not guarantee the completeness or accuracy of
the information on which the rating is based. A CRISIL rating is not a recommendation to buy, sell, or hold the rated
instrument; it does not comment on the market price or suitability for a particular investor. The Rating is not a
recommendation to invest / disinvest in any entity covered in the Material and no part of the Material should be
construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or
regulation. CRISIL especially states that it has no liability whatsoever to the subscribers / users / transmitters/
distributors of the Material. Without limiting the generality of the foregoing, nothing in the Material is to be construed
as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary
permission and/or registration to carry out its business activities in this regard. The Company will be responsible for
ensuring compliances and consequences of non-compliances for use of the Material or part thereof outside India.
Current rating status and CRISIL Ratings rating criteria are available without charge to the public on the CRISIL web
site, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL, please
contact Customer Service Helpdesk at 1800-267-1301."
Legal Advisors to the Issue
AZB & Partners

7th Floor, Embassy Icon
Infantry Road,
Bengaluru – 560 001, India
Tel: (+91 80) 4240 0500
Fax: (+91 80) 2221 3947
Banker(s) to the Issue
As specified in the relevant Tranche Prospectus for each Tranche.
Refund Bank(s)
Page | 38
Lead Broker(s) to the Issue
Impersonation
As a matter of abundant precaution, attention of the investors is specifically drawn to the provisions of sub-section (1)
of section 38 of the Companies Act, 2013, relating to punishment for fictitious applications.
Minimum Subscription
In terms of the SEBI Debt Regulations, for an issuer undertaking a public issue of debt securities the minimum
subscription for public issue of debt securities shall be 75% of the Base Issue. If our Company does not receive the
minimum subscription of 75% of the Base Issue, within the prescribed timelines under Companies Act and any rules
thereto, the entire subscription amount shall be refunded to the Applicants within 12 days from the date of closure of
the Issue. In the event, there is a delay, by our Company in making the aforesaid refund within the prescribed time
limit, our Company will pay interest at the rate of 15% per annum for the delayed period.
Under Section 39(3) of the Companies Act, 2013 read with Rule 11(2) of the Companies (Prospectus and Allotment of
Securities) Rules, 2014 if the stated minimum subscription amount is not received within the specified period, the
application money received is to be credited only to the bank account from which the subscription was remitted. To the
extent possible, where the required information for making such refunds is available with our Company and/or
Registrar, refunds will be made to the account prescribed. However, where our Company and/or Registrar does not
have the necessary information for making such refunds, our Company and/or Registrar will follow the guidelines
prescribed by SEBI in this regard including its circular (bearing CIR/IMD/DF-1/20/2012) dated July 27, 2012.
Self-Certified Syndicate Banks
The banks which are registered with SEBI under Securities and Exchange Board of India (Bankers to an Issue)
Regulations, 1994 and offer services in relation to ASBA, including blocking of an ASBA Account, a list of which is
available on http://www.sebi.gov.in or at such other website as may be prescribed by SEBI from time to time.
Syndicate SCSB Branches
In relation to ASBA Applications submitted to the Lead Managers, Lead Brokers, sub-brokers or the Trading Members
of the Stock Exchanges only in the Specified Cities (Mumbai, Chennai, Kolkata, Delhi, Ahmedabad, Rajkot, Jaipur,
Bengaluru, Hyderabad, Pune, Vadodara and Surat), the list of branches of the SCSBs at the Specified Cities named by
the respective SCSBs to receive deposits of ASBA Applications from such Lead Managers, Lead Brokers, sub-brokers
or the Trading Members of the Stock Exchanges is provided on http://www.sebi.gov.in or at such other website as may
be prescribed by SEBI from time to time. For more information on such branches collecting ASBA Applications from
Members of the Syndicate or the Trading Members of the Stock Exchanges only in the Specified Cities, see the above
mentioned web-link.
Utilisation of Issue proceeds
Our Board of Directors certify that:
 all monies received out of the Issue shall be credited/transferred to a separate bank account other than the bank
account referred to in Section 40 of the Companies Act, 2013;
 the allotment letter shall be issued or application money shall be refunded within fifteen days from the closure
of the issue or such lesser time as may be specified by Securities and Exchange Board, or else the application
money shall be refunded to the applicants forthwith, failing which interest shall be due to be paid to the
applicants at the rate of 15% per annum for the delayed period;
 details of all monies utilised out of the Issue referred above shall be disclosed and continued to be disclosed
under an appropriate separate head in our balance sheet till the time any part of the proceeds of such previous
issue remains unutilized indicating the purpose for which such monies have been utilised;
Page | 39
 details of all unutilised monies out of the Issue, if any, shall be disclosed and continued to be disclosed under
an appropriate head in our balance sheet till the time any part of the proceeds of such previous issue remains
unutilized indicating the form in which such unutilised monies have been invested; and
 we shall utilize the Issue proceeds only upon creation of security and obtaining Listing and Trading approval
as stated in this Draft Shelf Prospectus in the section titled “Issue Structure” beginning on page 134 of this
 the Issue proceeds shall not be utilized towards full or part consideration for the purchase or any other
acquisition, inter alia by way of a lease, of any immovable property or in the purchase of any business or in the
purchase of an interest in any business.
Issue Programme
ISSUE OPENS ON As specified in the relevant Tranche Prospectus

ISSUE CLOSES ON As specified in the relevant Tranche Prospectus
The subscription list shall remain open for subscription on Working Days from 10 A.M. to 5 P.M., during the period
indicated in the relevant Tranche Prospectus, except that the Issue may close on such earlier date or extended date as
may be decided by the Board or NCD Public Issue Committee. In the event of such an early closure of or extension
subscription list of the Issue, our Company shall ensure that notice of such early closure or extension is given to the
prospective investors through an advertisement in a leading daily national newspaper on or before such earlier date or
extended date of closure.
Applications Forms for a Tranche Issue will be accepted only from 10:00 a.m. till 5.00 p.m. (Indian Standard Time) or
such extended time as may be permitted by the BSE, on Working Days during the Issue Period. On the Issue Closing
Date, Application Forms will be accepted only between 10:00 a.m. to 3.00 p.m. (Indian Standard Time) and uploaded
until 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by the BSE.
Due to limitation of time available for uploading the Applications on the electronic platform of the Stock Exchange on
the Issue Closing Date, Applicants are advised to submit their Application Forms one day prior to the Issue Closing
Date and, no later than 3.00 p.m. (Indian Standard Time) on the Issue Closing Date. Applicants are cautioned that in the
event a large number of Applications are received on the Issue Closing Date, there may be some Applications which are
not uploaded due to lack of sufficient time to upload. Such Applications that cannot be uploaded will not be considered
for allocation under the Issue. Application Forms will only be accepted on Working Days during the Issue Period.
Neither our Company, nor the Members of the Syndicate are liable for any failure in uploading the Applications due to
failure in any software/ hardware systems or otherwise. Please note that the Basis of Allotment will be as per the
relevant Tranche Prospectus. In this regard as per the SEBI circular dated October 29, 2013, the allotment in the Issue
should be made on the basis of date of upload of each application into the electronic book of the Stock Exchange.
However, on the date of oversubscription, the allotments should be made to the applicants on proportionate basis.
Page | 40
THE ISSUE
The following is a summary of the Issue. This summary should be read in conjunction with, and is qualified in its entirety
by, more detailed information in the chapter titled “Terms of the Issue” beginning on page 129 of this Draft Shelf
Prospectus.
Common Terms of NCDs**
Issuer Muthoot Finance Limited

Lead Managers Edelweiss Financial Services Limited and A. K. Capital Services Limited
Debenture Trustee IDBI Trusteeship Services Limited
Registrar to the Issue Link Intime India Private Limited
Type and nature of Secured, redeemable and non-convertible debentures of face value ` 1,000 each
instrument
Option to retain As specified in the relevant Tranche Prospectus for each Tranche Issue.
Oversubscription
Amount
Face Value (in ` / ` 1,000
NCD)
Issue Price (in ` / As specified in the relevant Tranche Prospectus for each Tranche Issue
NCD)
Minimum application As specified in the relevant Tranche Prospectus for each Tranche Issue.
In multiples of ` 1,000.00 (1 NCD)
Seniority Senior (to clarify, the claims of the Secured NCD Holders shall be superior to the claims of any unsecured creditors,
subject to applicable statutory and/or regulatory requirements). The Secured NCDs would constitute secured
obligations of ours and shall rank pari passu inter se, present and future and subject to any obligations under applicable
statutory and/or regulatory requirements, shall also, with regard to the amount invested, be secured by way of first pari
passu charge on the identified immovable property and a first pari passu charge on current assets, book debts, loans and
advances, and receivables including gold loan receivables, both present and future, of our Company.
Mode of Issue Public Issue
Issue Public issue by our Company of Secured NCDs of face value of ` 1,000.00 million for an amount up to ` 30,000.00
million ("Shelf Limit"), hereinafter referred to as the “Issue”. The NCDs will be issued in one or more tranches up to the
Shelf Limit, on terms and conditions as set out in the relevant Tranche Prospectus for any Tranche Issue (each a "Tranche
Issue")
Listing BSE
BSE shall be the Designated Stock Exchange for the Issue.
The NCDs are proposed to be listed within 12 Working Days from the respective Issue Closing Date.
Lock-in As specified in the relevant Tranche Prospectus for each Tranche Issue.
Mode of Allotment and NCDs will be issued and traded compulsorily in dematerialised form.
Trading
Mode of settlement Please refer to the section titled “Issue Structure” beginning on page 134 of this Draft Shelf Prospectus.
Trading Lot 1 NCD
Depositories NSDL and CDSL
Security Security for the purpose of this Issue and every Tranche Issue will be created in accordance with the terms of the
Debenture Trust Deed. For further details please refer to the section titled “Issue Structure” beginning on page 134 of
Who can apply/ Please refer to the section titled “Issue Procedure” beginning on page 134 of this Draft Shelf Prospectus.
Eligible Investors
Credit Ratings
Rating Instrument Rating symbol Date of credit rating Amount Rating
agency letter rated definition
ICRA NCDs "[ICRA] March 06, 2018 - Secured Instruments with
AA(Stable)" Secured NCD’s for NCDs for this rating are
` 30,000.00 million. ` 30,000.00 considered to
million rated have high degree
"[ICRA] AA of safety
(Stable)" regarding timely
servicing of
financial
obligations. Such
instruments carry
very low credit
risk.
CRISIL NCDs “CRISIL March 07, 2018 - Secured Instruments with
AA/Stable” Secured NCD’s for NCDs for this rating are
` 30,000.00 million ` 30,000.00 considered to
million rated have high degree
"CRISIL of safety
AA/Stable" regarding timely
Page | 41
servicing of
financial
obligations. Such
instruments carry
very low credit
risk.
Please refer to pages 247 to 262 of this Draft Shelf Prospectus for rating letter and rationale for the above ratings. Please refer
to the disclaimer clause of ICRA and CRISIL on page 38 under the chapter "General Information".
Issue Size As specified in the relevant Tranche Prospectus for each Tranche Issue.
Pay-in date The date of realisation of the cheque or demand draft submitted by an Applicant with the Company.
Application money The entire application amount is payable on submitting the application.
Record Date The Record Date for payment of interest in connection with the NCDs or repayment of principal in connection therewith shall be
15 days prior to the date on which interest is due and payable, and/or the date of redemption. Provided that trading in the NCDs
shall remain suspended between the aforementioned Record Date in connection with redemption of NCDs and the date of
redemption or as prescribed by the Stock Exchange, as the case may be. In case Record Date falls on a day when Stock
Exchange is having a trading holiday, the immediate subsequent trading day or a date notified by the Company to the
Stock Exchanges, will be deemed as the Record Date.
Issue Schedule As specified in the relevant Tranche Prospectus for each Tranche Issue.
Objects of the Issue Please refer to the section titled “Objects of the Issue” on page 53 of this Draft Shelf Prospectus.
Details of the Please refer to the section titled “Objects of the Issue” on page 53 of this Draft Shelf Prospectus.
utilisation of Issue
proceeds
Coupon rate, coupon As specified in the relevant Tranche Prospectus for each Tranche Issue.
payment date and
redemption
premium/discount
Step up/ Step down As specified in the relevant Tranche Prospectus for each Tranche Issue.
interest
rates
Interest type As specified in the relevant Tranche Prospectus for each Tranche Issue.
Interest reset process As specified in the relevant Tranche Prospectus for each Tranche Issue.
Tenor As specified in the relevant Tranche Prospectus for each Tranche Issue.
Coupon payment As specified in the relevant Tranche Prospectus for each Tranche Issue.
frequency
Redemption date As specified in the relevant Tranche Prospectus for each Tranche Issue.
Redemption Amount As specified in the relevant Tranche Prospectus for each Tranche Issue
Day count convention Actual/Actual
Working Days All days excluding the second and the fourth Saturday of every month, Sundays and a public holiday in Kochi or
convention/Day count Mumbai or at any other payment centre notified in terms of the Negotiable Instruments Act, 1881, except with reference
convention / Effect of to Issue Period where working days shall mean all days, excluding Saturdays, Sundays and public holidays in India or at
holidays on payment any other payment centre notified in terms of the Negotiable Instruments Act, 1881.
Interest shall be computed on a 365 days-a-year basis on the principal outstanding on the NCDs. However, if period from
the Deemed Date Of Allotment / anniversary date of Allotment till one day prior to the next anniversary / redemption
date includes February 29, interest shall be computed on 366 days a-year basis, on the principal outstanding on the
NCDs.
If the date of payment of interest or any date specified does not fall on a Working Day, then the succeeding Working Day
will be considered as the effective date for such payment of interest, as the case may be (the “Effective Date”). Interest
or other amounts, if any, will be paid on the Effective Date. For avoidance of doubt, in case of interest payment on
Effective Date, interest for period between actual interest payment date and the Effective Date will be paid in normal
course in next interest payment date cycle. Payment of interest will be subject to the deduction of tax as per Income Tax
Act, 1961 or any statutory modification or re-enactment thereof for the time being in force. In case the Maturity Date
falls on a holiday, the maturity proceeds will be paid on the immediately previous Working Day along with the
coupon/interest accrued on the NCDs until but excluding the date of such payment.
Issue Opening Date As specified in the relevant Tranche Prospectus for each Tranche Issue.
Issue Closing Date As specified in the relevant Tranche Prospectus for each Tranche Issue.
Default interest rate In the event of any default in fulfillment of obligations by our Company under the Debenture Trust Deeds, the default
interest rate payable to the applicant shall be as prescribed under the Debenture Trust Deeds.
Interest on Application Please refer to the section titled “Issue Structure- Interest on Application Amount” on page 145 of this Draft Shelf
Money Prospectus.
Put/Call Option As specified in the relevant Tranche Prospectus for each Tranche Issue.
Date/Price
Deemed Date of The date on which the Board or the duly authorised committee of the Board constituted by resolution of the Board dated
Allotment July 25, 2011 approves the Allotment of the NCDs for each Tranche Issue. The actual Allotment of NCDs may take
place on a date other than the Deemed Date of Allotment. All benefits relating to the NCDs including interest on NCDs
(as specified for each Tranche Issue by way of the relevant Tranche Prospectus) shall be available to the Debenture
holders from the Deemed Date of Allotment.
Transaction documents Issue Agreement dated March 12, 2018 between our Company, the Lead Managers, the Registrar Agreement dated
March 12, 2018with the Registrar to the Issue, Escrow Agreement with the Escrow Collection Banks/ Refund Banks
as specified in the relevant Tranche Prospectus for each Tranche Issue, Lead Broker Agreement with the Lead Brokers as
specified in the relevant Tranche Prospectus for each Tranche Issue, Debenture Trustee Agreement dated March 12, 2018
executed between our Company and the Debenture Trustee and the agreed form of the Debenture Trust Deed to be
Page | 42
executed between our Company and the Debenture Trustee. For further details, please refer to “Material Contracts and
Documents for Inspection” on page 243 of this Draft Prospectus.
Conditions precedent The conditions precedent and subsequent to disbursement will be finalised upon execution of the Debenture Trust Deed.
and subsequent to the
Issue
Events of default Please refer to the section titled “Issue Structure-Events of default” on pages 145 of this Draft Shelf Prospectus.
Cross Default Please refer to the section titled “Issue Structure-Events of default” on pages 145 of this Draft Shelf Prospectus.
Roles and Please refer to the section titled “Terms of the Issue-Trustees for the Secured NCD Holders” on page 144 of this Draft
responsibilities of the Shelf Prospectus respectively.
Debenture Trustee
Governing law and The Issue shall be governed in accordance with the laws of the Republic of India and shall be subject to the exclusive
jurisdiction jurisdiction of the courts of Mumbai.
In terms of Regulation 4(2)(d) of the SEBI Debt Regulations, the Company will make public issue of NCDs in the dematerialised form. However, in terms
of Section 8 (1) of the Depositories Act, the Company, at the request of the Applicants who wish to hold the NCDs post allotment in physical form, will
fulfill such request through the process of rematerialisation.
*
The subscription list shall remain open for subscription on Working Days from 10 A.M. to 5 P.M., during the period indicated in the relevant
Tranche Prospectus, except that the Issue may close on such earlier date or extended date as may be decided by the Board or the NCD Public Issue
Committee. In the event of such an early closure of or extension subscription list of the Issue, our Company shall ensure that notice of such early
closure or extension is given to the prospective investors through an advertisement in a national daily newspaper with wide circulation on or before
such earlier date or extended date of closure. Applications Forms for the Issue will be accepted only from 10:00 a.m. till 5.00 p.m. (Indian Standard
Time) or such extended time as may be permitted by BSE, on Working Days during the Issue Period. On the Issue Closing Date, Application Forms
will be accepted only between 10:00 a.m. to 3.00 p.m. (Indian Standard Time) and uploaded until 5.00 p.m. (Indian Standard Time) or such extended
time as may be permitted by BSE.
The specific terms of each instrument to be issued pursuant to a Tranche Issue shall be as set out in the relevant Tranche
Prospectus.
Please see pages 148 and 165 of this Draft Shelf Prospectus under sections “Issue Procedure – How to apply – Who can
apply” and “Issue Procedure – Basis of allotment”, respectively for details of category wise eligibility and allotment in
the Issue.
Page | 43
CAPITAL STRUCTURE
Details of share capital
The share capital of our Company as of December 31, 2017 is set forth below:
Amount in `
A Authorised share capital

450,000,000 Equity Shares of ` 10.00 each 4,500,000,000.00
5,000,000 Redeemable Preference Shares of ` 1,000.00 each 5,000,000,000.00
TOTAL 9,500,000,000.00
B Issued, subscribed and paid-up share capital

399,913,914 Equity Shares of ` 10.00 each 3,999,139,140.00
C Securities Premium Account 14,779,306,087.06
This Issue will not result in any change of the paid up capital and securities premium account of the Company.
Changes in the authorised capital of our Company as of December 31, 2017
Details of increase in authorised share capital since incorporation
S.No. Particulars of increase Date of Shareholders’ AGM/EGM

meeting
1. Increase in authorised share capital from ` 6,000,000.00 divided into 600,000 equity shares of ` 10.00 each to ` 26,000,000.00 divided into 2,600,000 November 20, 2001 EGM
equity shares of ` 10.00 each.
2. Increase in authorised share capital from ` 26,000,000.00 divided into 2,600,000 equity shares of ` 10.00 each to ` 86,000,000.00 divided into 8,600,000 August 21, 2004 Court convened general
equity shares of ` 10.00 each.* meeting
3. Increase in authorised share capital from ` 86,000,000.00 divided into 8,600,000 equity shares of ` 10.00 each to ` 500,000,000.00 divided into 50,000,000 September 10, 2008 AGM
equity shares of ` 10.00 each.
4. Increase in authorised share capital from ` 500,000,000.00 divided into 50,000,000 equity shares of ` 10.00 each to ` 3,500,000,000.00 divided into August 24, 2009 EGM
350,000,000 equity shares of ` 10.00 each.
5. Increase in authorised share capital from ` 3,500,000,000.00 divided into 350,000,000 equity shares of ` 10.00 each to ` 4,500,000,000.00 divided into September 21, 2010 EGM
450,000,000 equity shares of ` 10.00 each.
6. Increase in authorised share capital from ` 4,500,000,000.00 divided into 450,000,000 equity shares of ` 10.00 each to ` 9,500,000,000.00 divided into March 07, 2011 EGM
450,000,000 equity shares of ` 10.00 each and 5,000,000 redeemable preference shares of ` 1,000.00 each.
*This increase in authorised share capital was pursuant to the order of the High Court of Kerala, Ernakulam dated January 31, 2005 approving the scheme of arrangement and amalgamation of Muthoot Enterprises Private
Limited with our Company. For further details regarding the scheme of arrangement and amalgamation, see “History and Main Objects” on page 94 of this Draft Shelf Prospectus.
Page | 44
Notes to capital structure
1. Share capital history of the Company
(a) Equity Share capital history of the Company as of December 31, 2017
Date of allotment No. of Equity Face value Issue price Nature of Reasons for allotment Cumulative no. of Cumulative paid-up Cumulative share
Shares (`) (`) consideration Equity Shares share capital (`) premium (`)
March 14, 1997 4,000 10.00 10.00 Cash Subscription to the 4,000 40,000.00 -
Memorandum(1)
March 30, 1998 250,000 10.00 10.00 Cash Preferential Allotment(2) 254,000 2,540,000.00 -
March 06, 2002 1,750,000 10.00 30.00 Cash Preferential Allotment(3) 2,004,000 20,040,000.00 35,000,000.00
March 21, 2005 1,993,230 10.00 - Consideration other Allotment pursuant to 3,997,230 39,972,300.00 35,000,000.00
than cash, pursuant to scheme of
scheme of amalgamation.(4)
amalgamation
October 31, 2006 1,000,000 10.00 250.00 Cash Preferential Allotment(5) 4,997,230 49,972,300.00 275,000,000.00
February 27, 2007 2,770 10.00 10.00 Cash Preferential Allotment(6) 5,000,000 50,000,000.00 275,000,000.00
July 31, 2008 1,000,000 10.00 250.00 Cash Preferential Allotment(7) 6,000,000 60,000,000.00 515,000,000.00
October 21, 2008 42,000,000 10.00 - N.A. Bonus issue in the ratio 48,000,000 480,000,000.00 515,000,000.00
7:1(8)
December 31, 2008 1,000,000 10.00 250.00 Cash Preferential Allotment(9) 49,000,000 490,000,000.00 755,000,000.00
August 29, 2009 252,000,000 10.00 - N.A. Bonus issue in the ratio 301,000,000 3,010,000,000.00 0
36:7(10)
July 23, 2010 6,404,256 10.00 123.00 Cash Preferential allotment to 307,404,256 3,074,042,560.00 723,680,928.00
Matrix Partners India
Investments, LLC
pursuant to the Matrix
Investment Agreement.
July 23, 2010 6,404,256 10.00 123.00 Cash Preferential allotment to 313,808,512 3,138,085,120.00 1,447,361,856.00
Baring India Private
Equity Fund III Limited
pursuant to the Baring
Investment Agreement
September 08, 2010 3,042,022 10.00 133.00 Cash Preferential allotment to 316,850,534 3,168,505,340.00 1,821,530,562.00
Kotak India Private Equity
Fund pursuant to the
Kotak Investment
Agreement.
September 08, 2010 160,106 10.00 133.00 Cash Preferential allotment to 317,010,640 3,170,106,400.00 1,841,223,600.00
Kotak Investment
Advisors Limited pursuant
to the Kotak Investment
Agreement.
Matrix Partners India
Investments, LLC
pursuant to the Matrix
Investment Agreement.
Page | 45
The Wellcome Trust
Limited (as trustee of The
Wellcome Trust, United
Kingdom) pursuant to the
Wellcome Investment
Agreement.
May 03, 2011 51,500,000 10.00 175.00 Cash Allotment pursuant to 371,712,768 3,717,127,680.00 10,862,271,561.00
initial public offering
April 29, 2014 25,351,062 10.00 165.00 Cash Allotment pursuant to 397,063,830 3,970,638,300.00 14,500,195,725.00
Institutional Placement
Programme
January 06, 2015 1,63,400 10.00 50.00 Cash Allotment pursuant to 397.227.230 3,972,272,300.00 14,471,966,693.96
ESOP Scheme
January 06, 2015 4,85,181 10.00 10.00 Cash Allotment pursuant to 397,712,411 3,977,124,110.00 14,524,026,615.26
ESOP Scheme
March 06, 2015 1,68,960 10.00 10.00 Cash Allotment pursuant to 397,881,371 3,978,813,710.00 14,542,156,023.26
ESOP Scheme
March 06,2015 85,048 10.00 50.00 Cash Allotment pursuant to 397,966,419 3,979,664,190.00 14,551,281,673.66
ESOP Scheme
June 04, 2015 21,641 10.00 10.00 Cash Allotment pursuant to 397,988,060 3,979,880,600.00 14,553,603,752.96
ESOP Scheme
June 04, 2015 11,900 10.00 50.00 Cash Allotment pursuant to 397,999,960 3,979,999,600.00 14,554,880,622.96
ESOP Scheme
September 15, 2015 9,394 10 10.00 Cash Allotment pursuant to 398,009,354 3,980,093,540.00 14,556,020,991.1
ESOP Scheme
September 15, 2015 34,642 10 50.00 Cash Allotment pursuant to 398,043,996 3,980,439,960.00 14,561,724,761.76
ESOP Scheme
March 16, 2016 6,02,106 10 10.00 Cash Allotment pursuant to 39,86,46,102 3,98,64,61,020.00 14,626,198,343.56
ESOP Scheme
March 16, 2016 356,230 10 50.00 Cash Allotment pursuant to 39,90,02,332 3,99,00,23,320.00 14,665,742,013.56
ESOP Scheme
June 27, 2016 23,782 10 10.00 Cash Allotment pursuant to 39,90,26,114 3,99,02,61,140.00 14,668,297,172.16
ESOP Scheme
June 27, 2016 24,820 10 50.00 Cash Allotment pursuant to 39,90,50,934 3,99,05,09,340.00 14,670,994,528.16
ESOP Scheme
December 21, 2016 12,525 10 10.00 Cash Allotment pursuant to 39,90,63,459 3,99,06,34,590.00 14,672,469,914.66
ESOP Scheme
December 21, 2016 392,280 10 50.00 Cash Allotment pursuant to 39,94,55,739 3,99,45,57,390.00 14,717,877,388.66
ESOP Scheme
March 23, 2017 19,810 10 50 Cash Allotment pursuant to 399,475,549 3,994,755,490.00 14,721,810,886.66
ESOP Scheme
May 09, 2017 3,512 10 10 Cash Allotment pursuant to 399,479,061 3,994,790,610.00 14,722,197,774.26
ESOP Scheme
May 09, 2017 57,235 10 50 Cash Allotment pursuant to 399,536,296 3,995,362,960.00 14,731,616,807.26
ESOP Scheme
August 07, 2017 4,113 10 10 Cash Allotment pursuant to 399,540,409 3,995,404,090.00 14,732,418,235.56
ESOP Scheme
August 07, 2017 26,280 10 50 Cash Allotment pursuant to 399,566,689 3,995,666,890.00 14,737,272,525.06
ESOP Scheme
December 11, 2017 2,575 10 10 Cash Allotment pursuant to 399,569,264 3,995,692,640.00 14,73,76,54,805.06
ESOP Scheme
December 11, 2017 344,650 10 50 Cash Allotment pursuant to 399,913,914 3,999,139,140.00 14,77,93,06,087.06
Page | 46
ESOP Scheme
1. At the time of incorporation, upon subscription to the Memorandum, allotment of 1,000 Equity Shares to each of M.G. George Muthoot, George Thomas Muthoot, George Jacob Muthoot and George Alexander
Muthoot.
2. Allotment of 62,500 Equity Shares to each of M.G. George Muthoot, George Thomas Muthoot, George Jacob Muthoot and George Alexander Muthoot.
3. Allotment of Equity Shares to M.G. George Muthoot (200, 000), George Thomas Muthoot (200,000), George Jacob Muthoot (200,000), George Alexander Muthoot (250,000), Georgie Kurien (150,000), Valsa Kurien
(150,000), Sara George (150,000), Susan Thomas (150,000), Elizabeth Jacob (150,000), and Anna Alexander (150,000).
4. Allotment of Equity Shares to M.G George Muthoot (684,700), George Thomas Muthoot (234,366), George Alexander Muthoot (587, 866), Susan Thomas (58,733), George Jacob Muthoot (340,900), Elizabeth Jacob
(38,133), Anna Alexander (48,433), Paul M. George (33), George M. George (33) and George M. Alexander (33) pursuant to order of the High Court of Kerala, Ernakulam dated January 31, 2005 approving the
scheme of arrangement and amalgamation of Muthoot Enterprises Private Limited with the Company whereby every shareholder of Muthoot Enterprises Private Limited is entitled to shares of the Company in the ratio
of 3:1. For further details regarding the scheme of arrangement and amalgamation, see “History and Main Objects” on page 94 of this Draft Shelf Prospectus.
5. Allotment of Equity Shares to M.G. George Muthoot (228,700), George Alexander Muthoot (228,700), George Thomas Muthoot (228,700), George Jacob Muthoot (228,700), Anna Alexander (30,000), Georgie Kurien
(2,400), Sara George (4,800), Susan Thomas (4,800), Elizabeth Jacob (30,000), George M. George (10,000), Paul M. George (800), Alexander M. George (800), George M. Jacob (800) and George M. Alexander
(800).
6. Allotment of Equity Shares to George Alexander Muthoot.
7. Allotment of Equity Shares to M.G. George Muthoot (120,000), George Alexander Muthoot (120,000), George Thomas Muthoot (120,000), George Jacob Muthoot (120,000), Anna Alexander (52,000), Sara George
(52,000), Susan Thomas (52,000), Elizabeth Jacob (52,000), George M. George (52,000), Paul M George (52,000), Alexander M. George (52,000), George M. Jacob (52,000), George M. Alexander (52,000) and
Eapen Alexander (52,000).
8. Allotment of Equity Shares to M.G. George Muthoot (10,828,300), George Alexander Muthoot (10,519,852), George Thomas Muthoot (4,525,962), George Jacob Muthoot (5,264,700), Anna Alexander (1,963,031),
Sara George (1,447,600), Susan Thomas (1,508,731), Elizabeth Jacob (1,540,931), George M. George (434,931), Paul M. George (370,531), Alexander M. George (370,300), George M. Jacob (370,300), George M.
Alexander (370,531), Eapen Alexander (365,400), Susan Kurien (700), Reshma Susan Jacob (700), Anna Thomas (700), Valsa Kurien (1,050,000 ) and Georgie Kurien (1,066,800).
9. Allotment of Equity Shares to M.G. George Muthoot (120,000), George Alexander Muthoot (120,000), George Thomas Muthoot (120,000), George Jacob Muthoot (120,000), Anna Alexander (52,000), Sara George
(52,000), Susan Thomas (52,000), Elizabeth Jacob (52,000), George M. George (52,000), Paul M George (52,000), Alexander M. George (52,000), George M. Jacob (52,000), George M. Alexander (52,000) and
Eapen Alexander (52,000).
10. Allotment of Equity Shares to M.G. George Muthoot (37,800,000), George Alexander Muthoot (37,800,000), George Thomas Muthoot (37,800,000), George Jacob Muthoot (37,800,000), Anna Alexander (12,600,000),
Sara George (11,414,736), Susan Thomas (25, 200,000), Elizabeth Jacob (12,600,000), George M. George (5,670,000), Paul M. George (2,445,264), Alexander M. George (5,670,000), George M. Jacob (12,600,000),
George M. Alexander (6,300,000), Eapen Alexander (6,300,000).
11. Equity Shares issued for consideration other than cash
Date of allotment No. of Equity Shares Issue price (`) Reasons for allotment Benefits accruing to the Company
March 21, 2005 1, 993, 230 - Pursuant to scheme of amalgamation(1) Allotment pursuant to scheme of amalgamation.
TOTAL 1, 993, 230
12. Allotment of Equity Shares to M.G George Muthoot (684,700), George Thomas Muthoot (234,366), George Alexander Muthoot (587,866), Susan Thomas (58,733), George Jacob Muthoot (340,900), Elizabeth Jacob
(38,133), Anna Alexander (48,433), Paul M. George (33), George M. George (33) and George M. Alexander (33) pursuant to order of the High Court of Kerala, Ernakulam dated January 31, 2005 approving the
scheme of arrangement and amalgamation of Muthoot Enterprises Private Limited with the Company whereby every shareholder of Muthoot Enterprises Private Limited is entitled to shares of the Company in the ratio
of 3:1. For further details regarding the scheme of arrangement and amalgamation, see “History and Main Objects” on page 94 of this Draft Shelf Prospectus.
The Company has not issued any equity shares for consideration other than cash in the two financial years immediately preceding the date of this Draft Shelf Prospectus.
Page | 47
Share holding pattern of our Company as on December 31, 2017
Summary Statement Holding of Equity Shareholders
Category Category & Name Nos. of No. of fully paid up equity Total nos. shares held Shareholding as a Number of Shares pledged or Number of equity shares
of shareholders shareholders shares held % of total no. of otherwise encumbered held in dematerialised form
shares (calculated
as per SCRR, 1957)
(A+B+C2)
No. (a) As a % of total
Shares held(b)
A Shareholding pattern of
the Promoter and
Promoter Group
1 Indian
(a) Individuals / Hindu 13 294,463,872 294,463,872 73.6318 0 0.0000 294,463,872
Undivided Family
(b) Central Government / 0 0 0 0.0000 0 0.0000 0

State Government(s)
(c) Financial Institutions / 0 0 0 0.0000 0 0.0000 0

Banks
(d) Any Other (Specify) 0 0 0 0.0000 0 0.0000 0
Sub Total (A)(1) 13 294,463,872 294,463,872 73.6318 0 0.0000 294,463,872
2 Foreign
(a) Individuals (Non- 0 0 0 0.0000 0 0.0000 0
Resident Individuals /
Foreign Individuals)
(b) Government 0 0 0 0.0000 0 0.0000 0

(c) Institutions 0 0 0 0.0000 0 0.0000 0
(d) Foreign Portfolio Investor 0 0 0 0.0000 0 0.0000 0
(e) Any Other (Specify) 0 0 0 0.0000 0 0.0000 0
Sub Total (A)(2) 0 0 0 0.0000 0 0.0000 0
Page | 48
Total Shareholding Of 13 294,463,872 294,463,872 73.6318 0 0.0000 294,463,872
Promoter And Promoter
Group (A)=
(A)(1)+(A)(2)
B Public shareholder
1 Institutions
(a) Mutual Fund 66 40,522,847 40,522,847 10.1329 0 0.0000 40,522,847

(b) Venture Capital Funds 0 0 0 0.0000 0 0.0000 0
(c) Alternate Investment 6 1,135,349 1,135,349 0.2839 0 0.0000 1,135,349
Funds
(d) Foreign Venture Capital 0 0 0 0.0000 0 0.0000 0
Investors
(e) Foreign Portfolio Investor 171 47,087,992 47,087,992 11.7745 0 0.0000 47,087,992
(f) Financial Institutions / 2 24,655 24,655 0.0062 0 0.0000 24,655
Banks
(g) Insurance Companies 0 0 0 0.0000 0 0.0000 0
(h) Provident Funds/ Pension 0 0 0 0.0000 0 0.0000 0
Funds
(i) Any Other (Specify) 0 0 0 0.0000 0 0.0000 0

Sub Total (B)(1) 245 88,770,843 88,770,843 22.1975 0 0.0000 88,770,843
2 Central Government/
State Government(s)/
President of India
Central Government /
State Government(s) 1 400,546 400,546 0.1002 0 0.0000 400,546
Sub Total (B)(2) 1 400,546 400,546 0.1002 0 0.0000 400,546
3 Non-Institutions
(a) Individuals 0 0 0.0000 0 0.0000 0
i. Individual shareholders 42,991 7,422,771 7,422,771 1.8561 0 0.0000 7,422,629
holding nominal share
capital up to Rs. 2 lakhs.
ii. Individual shareholders 24 41,97,941 4,197,941 1.0497 0 0.0000 4,197,941

holding nominal share
capital in excess of Rs. 2
lakhs.
(b) NBFCs registered with 0 0 0 0.0000 0 0.0000 0

RBI
Page | 49
(c) Employee Trusts 0 0 0 0.0000 0 0.0000 0
(d) Overseas 0 0 0 0.0000 0 0.0000 0
Depositories(holding
DRs) (balancing figure)
(e) Any Other (Specify) 3,015 4,657,941 4,657,941 1.1647 0 0.0000 4,657,941
Trusts 4 25,008 25,008 0.0063 0 0.0000 25,008
Foreign Nationals 2 3,682 3,682 0.0009 0 0.0000 3,682
Hindu Undivided Family 1,252 248,933 248,933 0.0622 0 0.0000 248,933
Foreign Companies 0 0 0 0 0 0.0000 0
Non Resident Indians 286 229,500 229,500 0.0574 0 0.0000 229,500
(Non Repat)
Non Resident Indians 694 387,689 387,689 0.0969 0 0.0000 387,689

(Repat)
Foreign Portfolio Investor 0 0 0 0 0 0.0000 0
(Individual)
Clearing Member 296 338,719 338,719 0.0847 0 0.0000 338,719
Bodies Corporate 481 3,424,410 3,424,410 0.8563 0 0.0000 3,424,410
Sub Total (B)(3) 46,030 16,278,653 16,278,653 4.0705 0 0.0000 16,278,511
Total Public 46,276 10,545,0042 105,450,042 26.3682 0 0.0000 105,449,900
Shareholding (B)=
(B)(1)+(B)(2)+(B)(3)
C Total Non-Promoter-
Non Public
Shareholding
1 Custodian/DR Holder 0 0 0 0.0000 0 0.0000 0
2 Employee Benefit Trust 0 0 0 0.0000 0 0.0000 0
(under SEBI (Share
based Employee Benefit)
Regulations, 2014)
Total Non-Promoter- 0 0 0 0.0000 0 0.0000 0

Non Public
Shareholding (C)=
(C)(1)+(C)(2)
Total 46,289 399,913,914 399,913,914 100 0 0.0000 399,913,772
Page | 50
2. Our top ten shareholders and the number of Equity Shares held by them as on December 31, 2017 is
as follows:
S. Name No. of Equity Shares No. of Equity As % of total

No. (face value of ` 10 Shares in demat number of shares
each) form
1. M G George Muthoot 46,551,632 46,551,632 11.6404%

2. George Alexander Muthoot 43,630,900 43,630,900 10.9101%
3. George Jacob Muthoot 43,630,900 43,630,900 10.9101%
4. George Thomas Muthoot 43,630,900 43,630,900 10.9101%
5. Susan Thomas 29,985,068 29,985,068 7.4979%
6. George M Jacob 15,050,000 15,050,000 3.7633%
7. Anna Alexander 14,935,068 14,935,068 3.7346%
8. Elizabeth Jacob 14,935,068 14,935,068 3.7346%
9. Sara George 13,519,336 13,519,336 3.3806%
10. Eapen Alexander 7,525,000 7,525,000 1.8817%
TOTAL 273,393,872 273,393,872 68.3634%
3. The list of top ten debenture holders* as on March 02, 2018 is as follows:
S. Name of holder Aggregate amount (in ` million)

No.
1. SBI DUAL ADVANTAGE FUND - SERIES XXII 8065

2. RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANCE MEDIUM
TERM FUND 2500
3. KOTAK MAHINDRA TRUSTEE CO LTD. AC KOTAK TREASURY
ADVANTAGE FUND 2300
4. ICICI PRUDENTIAL FIXED MATURITY PLAN SERIES 73 1140
DAYS PLAN E 2000
5. ARMY GROUP INSURANCE FUND 2000
6. UTI - MEDIUM TERM FUND 1657
7. AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL
FUND A/C AXIS FIXED INCOME OPPORTUNITIES FUND 1100
8. INDIAN BANK 1000
9. INDIAN INLAND MISSION 875
10. BNP PARIBAS FLEXI DEBT FUND 650
*on cumulative basis
4. Debt to equity ratio
The debt to equity ratio prior to this Issue is based on a total outstanding debt of ` 210,959.62 million
and shareholder funds amounting to ` 65,103.89 million as on March 31, 2017. The debt equity ratio
post the Issue, (assuming subscription of NCDs aggregating to ` 30,000 million) would be 3.70 times,
based on a total outstanding debt of ` 240,959.62 million and shareholders funds of ` 65,103.89
million as on March 31, 2017.
(in ` million)
Particulars Prior to the Issue Post the Issue#
(as of March 31,
2017)
Secured Loan 153,557.71 183,557.71*

Unsecured Loan 57,401.91 57,401.91
Total Debt 210,959.62 240,959.62
Share Capital 3,994.75 3,994.75

Reserves 61,169.66 61,169.66
Less: Miscellaneous Expenditure (to the extent not written off or 60.52 60.52
adjusted)
Total Shareholders’ Funds 65,103.89 65,103.89
Debt Equity Ratio (No. of Times)# 3.24 3.70

#
The debt-equity ratio post the Issue is indicative and is on account of assumed inflow of` 30,000.00 million from the Issue and does not
include contingent and off-balance sheet liabilities. The actual debt-equity ratio post the Issue would depend upon the actual position of debt
and equity on the date of allotment.
Page | 51
* Issue amount of ` 30,000.00 million is classified under Secured Loans.
For details on the total outstanding debt of our Company, please refer to the section titled “Disclosures on
Existing Financial Indebtedness” beginning on page 120 of this Draft Shelf Prospectus.
5. The aggregate number of securities of the Company that have been purchased or sold by the Promoter
Group, Directors of the Company and their relatives within 6 months immediately preceding the date of
this Draft Shelf Prospectus is as below:
Particulars No of securities Amount (in ` million)

Number of non-convertible debentures purchased 30565 34.429
Number of non-convertible debentures sold 150000 168.247
It is clarified that no other securities including shares of the Company were either purchased or sold by
the Promoter Group, Directors of the Company and their relatives within 6 months immediately
preceding the date of this Draft Shelf Prospectus.
6. We confirm that no securities of our Subsidiary that have been purchased or sold by the Promoter
Group, Directors of the Company and their relatives within 6 months immediately preceding the date of
7. ESOP Scheme
The shareholders’ of the Company in their meeting dated September 27, 2013 have given their approval
for issuance of employee stock options. Pursuant to the aforesaid approval, the Board (which includes
duly authorised committee by the Board) has approved the ‘Muthoot ESOP 2013’ scheme. The
Company has obtained in principal approval of the stock exchanges where the share capital of the
Company is listed i.e. BSE and NSE for listing upto 11,151,383 equity shares of face value of Rs. 10/-
each on exercise of the employee stock options by the eligible employees from time to time who are in
receipt of grants made by the Board.
Page | 52
OBJECTS OF THE ISSUE
Issue proceeds
Public issue by the Company of secured redeemable non-convertible debentures of face value of ` 1,000 each,
("NCDs"), for an amount up to ` 30,000.00 million ("Shelf Limit") hereinafter referred to as the "Issue". The
NCDs will be issued in one or more tranches, on terms and conditions as set out in the relevant tranche
prospectus for any tranche issue (each a "Tranche Issue"). The issue is being made pursuant to the provisions
of the SEBI Debt Regulations, the Companies Act and rules made thereunder as amended to the extent notified.
The details of the proceeds of the Issue are summarized below:
Particulars Estimated amount (in ` million)

Gross proceeds to be raised through each Tranche Issue As mentioned in the relevant Tranche
Prospectus
Less: - Tranche Issue related expenses As mentioned in the relevant Tranche
Prospectus
Net proceeds of the Tranche Issue after deducting the Tranche Issue related As mentioned in the relevant Tranche
expenses Prospectus
The Net Proceeds raised through this Issue will be utilised for following activities in the ratio provided as below:
a) For the purpose of lending- 75% of the amount raised and allotted in the Issue
b) For General Corporate Purposes- 25% of the amount raised and allotted in the Issue
The main objects clause of the Memorandum of Association of our Company permits our Company to undertake
its existing activities as well as the activities for which the funds are being raised through this Issue.
Purpose for which there is a requirement of funds
As stated in this section.
Funding plan
NA
Summary of the project appraisal report
NA
Schedule of implementation of the project
NA
Monitoring of utilisation of funds
There is no requirement for appointment of a monitoring agency in terms of the SEBI Debt Regulations. The
Board of Directors of our Company shall monitor the utilisation of the proceeds of the Issue. Our Company will
disclose in the Company’s financial statements for the relevant financial year commencing from Financial Year
2017, the utilisation of the proceeds of the Issue under a separate head along with details, if any, in relation to all
such proceeds of the Issue that have not been utilised thereby also indicating investments, if any, of such
unutilised proceeds of the Issue.
Interim use of proceeds
The management of the Company, in accordance with the policies formulated by it from time to time, will have
flexibility in deploying the proceeds received from the Issue. Pending utilisation of the proceeds out of the Issue
for the purposes described above, the Company intends to temporarily invest funds in high quality interest
bearing liquid instruments including money market mutual funds, deposits with banks or temporarily deploy the
funds in investment grade interest bearing securities as may be approved by the Board / Committee of Directors
Page | 53
of the Company, as the case may be. Such investment would be in accordance with the investment policy of our
Company approved by the Board or any committee thereof from time to time and the same shall be disclosed in
the balance sheet as per provisions of the Companies Act, 2013.
Other confirmations
In accordance with the SEBI Debt Regulations, our Company will not utilise the proceeds of the Issue for
providing loans to or acquisition of shares of any person who is a part of the same group as our Company or who
is under the same management as our Company or any subsidiary of our Company.
The Issue proceeds shall not be utilised towards full or part consideration for the purchase or any other
acquisition, inter alia by way of a lease, of any immovable property.
No part of the proceeds from this Issue will be paid by us as consideration to our Promoter, our Directors, Key
Managerial Personnel, or companies promoted by our Promoter except in the usual course of business.
Further the Company undertakes that Issue proceeds from NCDs allotted to banks shall not be used for any
purpose, which may be in contravention of the RBI guidelines on bank financing to NBFCs including those
relating to classification as capital market exposure or any other sectors that are prohibited under the RBI
regulations.
The Company confirms that it will not use the proceeds of the Issue for the purchase of any business or in the
purchase of any interest in any business whereby the Company shall become entitled to the capital or profit or
losses or both in such business exceeding 50% thereof, the acquisition of any immovable property or acquisition
of securities of any other body corporate.
Page | 54
STATEMENT OF POSSIBLE TAX BENEFITS AVAILABLE TO THE DEBENTURE HOLDERS
UNDER THE APPLICABLE LAWS IN INDIA
To,
The Board of Directors

Banerji Road, Kochi 682 018
Kerala, India
Dear Sir(s),
We hereby report that the enclosed statement in Annexure A, states the possible tax benefits
available to the debenture holders of Muthoot Finance Limited (the Company) pursuant to the
issue under the Income Tax Act, 1961 (as amended by the Finance Act 2017) presently in force in
India.
Several of these tax benefits/consequences are dependent on the debenture holders fulfilling the
conditions prescribed under the relevant tax laws. Hence, the ability of the debenture holders to
derive the tax benefits is dependent upon fulfilment of such conditions based on business
imperatives it faces in the future it may or may not choose to fulfil.
The preparation of the contents in the enclosed annexure is the responsibility of the Company’s
management. The benefits discussed in the enclosed statement are neither exhaustive nor
conclusive. We are informed that the enclosed annexure is only intended to provide general
information to the debenture holders and is neither designed nor intended to be a substitute for
professional tax advice. In view of the individual nature of tax consequences and changing tax
laws, each investor is advised to consult their own tax consultant with respect to the specific tax
implications arising out of their participation in the issue.
Our views are based on the existing provisions of tax law and its interpretations, which are subject
to change or modification by subsequent legislative, regulatory, administrative, or judicial
decisions. Any such changes, which could also be retroactive, could have an effect on the validity
of our views stated herein. We assume no obligation to update this statement on any events
subsequent to its issue, which may have a material effect on the discussions herein.
Our confirmation is based on the information, explanations and representations obtained from the
Company and on the basis of our understanding of the business activities and operations of the
Company.
We do not express any opinion or provide any assurance as to whether:
 the debenture holders will continue to obtain these benefits in future; or

 the conditions prescribed for availing the benefits, where applicable have been/would be met
with; and
 the revenue authorities/courts will concur with the views expressed herein.
Page | 55
The enclosed annexure is intended solely for your information and for inclusion in the Draft Shelf
Prospectus/ Shelf Prospectus / Tranche Prospectus in connection with the proposed issue of non-
convertible debentures and is not to be used, referred to or distributed for any other purpose
without our prior written consent.
For VARMA & VARMA

Firm Registration no.: 004532S
(Sd)
Vijay Narayan Govind
Partner
Membership No.: 203094
Place : Kochi
Date : 12.03.2018
Page | 56
Annexure A
STATEMENT OF POSSIBLE TAX BENEFITS AVAILABLE TO THE DEBENTURE

HOLDERS
The following tax benefits will be available to the debenture holders as per the existing provisions of
law. The tax benefits are given as per the prevailing tax laws and may vary from time to time in
accordance with amendments to the law or enactments thereto. The Debenture Holder is advised to
consider the tax implications in respect of subscription to the Debentures after consulting his tax
advisor as alternate views are possible. We are not liable to the Debenture Holder in any manner for
placing reliance upon the contents of this statement of tax benefits.
A. IMPLICATIONS UNDER THE INCOME-TAX ACT, 1961 (‘I.T. ACT’)
I. To the Resident Debenture Holder
1. Interest on NCD received by Debenture Holders would be subject to tax at the normal
rates of tax in accordance with and subject to the provisions of the I.T. Act and - tax
would need to be withheld at the time of credit/payment as per the provisions of Section
193 of the I.T. Act at the rates prescribed therein being 10%. However, no income tax is
deductible at source in respect of the following:
a) In case the payment of interest on debentures by the Company in which the public are
substantially interested to a resident individual or a Hindu Undivided Family (‘HUF’)
Debenture Holder does not or is not likely to exceed Rs 5,000 in the aggregate during
the Financial year and the interest is paid by an account payee cheque.
b) On any security issued by a company in a dematerialized form and is listed on

recognized stock exchange in India in accordance with the Securities Contracts
(Regulation) Act, 1956 and the rules made there under.
c) When the Assessing Officer issues a certificate on an application by a Debenture

Holder on satisfaction that the total income of the Debenture holder justifies no/lower
deduction of tax at source as per the provisions of Section 197(1) of the I.T. Act; and
that certificate is filed with the Company before the prescribed date of closure of
books for payment of debenture interest.
d) i. When the resident Debenture Holder with Permanent Account Number

(‘PAN’) (not being a company or a firm) submits a declaration as per the provisions
of Section 197A(1A) of the I.T. Act in the prescribed Form 15G verified in the
prescribed manner to the effect that the tax on his estimated total income of the
financial year in which such income is to be included in computing his total income
will be NIL. However under Section 197A(1B) of the I.T. Act, “Form 15G cannot be
submitted nor considered for exemption from tax deduction at source if the dividend
income referred to in Section 194, interest on securities, interest, withdrawal from
Page | 57
NSS and income from units of mutual fund or of Unit Trust of India as the case may
be or the aggregate of the amounts of such incomes credited or paid or likely to be
credited or paid during the financial year in which such income is to be included
exceeds the maximum amount which is not chargeable to income tax”.
To illustrate, as on April 01, 2017:

 the maximum amount of income not chargeable to tax in case of individuals
(other than senior citizens and super senior citizens) and HUFs is Rs 2,50,000
 in the case of every individual being a resident in India, who is of the age of 60
years or more but less than 80 years at any time during the Financial year (Senior
Citizen) is Rs 3,00,000; and
 in the case of every individual being a resident in India, who is of the age of 80
years or more at any time during the Financial year (Super Senior Citizen) is Rs
5,00,000 for Financial Year 2017-18.
Further, Section 87A provides a rebate of 100 percent of income-tax or an amount of

Rs 2,500 whichever is less to a resident individual whose total income does not
exceed Rs 350,000
ii. Senior citizens, who are 60 or more years of age at any time during the
financial year, enjoy the special privilege to submit a self-declaration in the prescribed
Form 15H for non deduction of tax at source in accordance with the provisions of
Section 197A(1C) of the I.T. Act even if the aggregate income credited or paid or
likely to be credited or paid exceeds the maximum amount not chargeable to tax,
provided that the tax due on total income of the person is NIL.
iii. In all other situations, tax would be deducted at source as per prevailing
provisions of the I.T. Act. Form No.15G with PAN / Form No.15H with PAN /
Certificate issued u/s 197(1) has to be filed with the Company before the prescribed
date of closure of books for payment of debenture interest without any tax
withholding.
2. In case where tax has to be deducted at source while paying debenture interest, the
Company is not required to deduct surcharge or cess.
3. As per Section 2(29A) of the IT Act, read with Section 2(42A) of the I.T. Act, a listed
debenture is treated as a long term capital asset if the same is held for more than 12
months immediately preceding the date of its transfer.
However as per the third proviso to Section 48 of I.T. Act, benefit of indexation of cost of
acquisition under second proviso of Section 48 of I.T. Act, is not available in case of
bonds and debenture, except capital indexed bonds issued by the Government and the
Sovereign Gold Bond issued by the Reserve Bank of India under the Sovereign Gold
Bond Scheme, 2015. Thus, long term capital gains arising out of debentures would be
subject to tax at the rate of 10 % computed without indexation.
Page | 58
In case of an individual or HUF, being a resident, where the total income as reduced by
such long-term capital gains is below the maximum amount which is not chargeable to
income-tax, then, such long-term capital gains shall be reduced by the amount by which
the total income as so reduced falls short of the maximum amount which is not chargeable
to income-tax and the tax on the balance of such long-term capital gains shall be
computed at the rate mentioned above.
4. Short-term capital gains on the transfer of listed debentures, where debentures are held for
a period of not more than 12 months would be taxed at the normal rates of tax in
accordance with and subject to the provisions of the I.T. Act. The provisions relating to
maximum amount not chargeable to tax described as above would also apply to such short
term capital gains.
5. In case the debentures are held as stock in trade, by the Debenture holder the income on
transfer of debentures would be taxed as business income or loss in accordance with and
subject to the provisions of the I.T. Act. Further, where the debentures are sold by the
Debenture Holder(s) before maturity, the gains arising therefrom are generally treated as
capital gains or business income, as the case may be. However, there is an exposure that
the Indian Revenue Authorities (especially at lower level) may seek to challenge the said
characterisation (especially considering the provisions explained in Para V below) and
hold such gains/income as interest income in the hands of such Debenture Holder(s).
Further, cumulative or regular returns on debentures held till maturity would generally be
taxable as interest income taxable under the head Income from other sources where
debentures are held as investments or business income where debentures are held as
trading asset / stock in trade.
6. As per Section 74 of the I.T. Act, short-term capital loss on debentures suffered during the
year is allowed to be set-off against short-term as well as long-term capital gains of the
said year. Balance loss, if any could be carried forward for eight years for claiming set-off
against subsequent years’ short-term as well as long-term capital gains. Long-term capital
loss on debentures suffered during the year is allowed to be set-off only against long-term
capital gains. Balance loss, if any, could be carried forward for eight years for claiming
set-off against subsequent year’s long-term capital gains.
II. To the Non Resident Debenture Holder.
1. A non-resident Indian has an option to be governed by Chapter XII-A of the I.T. Act,
subject to the provisions contained therein which are given in brief as under:
a) As per Section 115E of the I.T. Act, interest income from debentures acquired or
purchased with or subscribed to in convertible foreign exchange will be taxable
at 20%, whereas, long term capital gains on transfer of such Debentures will be
taxable at 10% of such capital gains without indexation of cost of acquisition.
Short-term capital gains will be taxable at the normal rates of tax in accordance
with and subject to the provisions contained therein.
Page | 59
b) As per Section 115F of the I.T. Act, long term capital gains arising to a non-
resident Indian from transfer of debentures acquired or purchased with or
subscribed to in convertible foreign exchange will be exempt from capital gain
tax if the net consideration is invested within six months after the date of transfer
of the debentures in any specified asset or in any saving certificates referred to in
Section 10(4B) of the I.T. Act in accordance with and subject to the provisions
contained therein. However, if the new assets are transferred or converted into
money within a period of three years from their date of acquisition, the amount
of capital gains exempted earlier would become chargeable to tax as long term
capital gains in the year in which the new assets are transferred or converted into
money.
c) As per Section 115G of the I.T. Act, it shall not be necessary for a non-resident
Indian to file a return of income under Section 139(1) of the I.T. Act, if his total
income consists only of investment income as defined under Section 115C
and/or long term capital gains earned on transfer of such investment acquired out
of convertible foreign exchange, and the tax has been deducted at source from
such income under the provisions of Chapter XVII-B of the I.T. Act in
accordance with and subject to the provisions contained therein.
d) Under Section 115H of the I.T. Act, where a non-resident Indian becomes a
resident in India in any subsequent year, he may furnish to the Assessing Officer
a declaration in writing along with return of income under Section 139 for the
assessment year for which he is assessable as a resident, to the effect that the
provisions of Chapter XII-A shall continue to apply to him in relation to the
investment income (other than on shares in an Indian Company) derived from
any foreign exchange assets in accordance with and subject to the provisions
contained therein. On doing so, the provisions of Chapter XII-A shall continue to
apply to him in relation to such income for that assessment year and for every
subsequent assessment year until the transfer or conversion (otherwise than by
transfer) into money of such assets.
2. In accordance with and subject to the provisions of Section 115I of the I.T. Act, a
Non-Resident Indian may opt not to be governed by the provisions of Chapter XII-A
of the I.T. Act. In that case,
a) Long term capital gains on transfer of listed debentures would be subject to tax
at the rate of 10% computed without indexation.
b) Investment income and Short-term capital gains on the transfer of listed

debentures, where debentures are held for a period of not more than 12 months
preceding the date of transfer, would be taxed at the normal rates of tax in
accordance with and subject to the provisions of the I.T. Act
3. Under Section 195 of the I.T. Act, the applicable rate of tax deduction at source is.
20% on investment income and 10% on any long-term capital gains as per Section
115E, and at the normal rates for Short Term Capital Gains if the payee Debenture
Holder is a Non Resident Indian.
4. As per Section 74 of the I.T. Act, short-term capital loss suffered during the year is
allowed to be setoff against short-term as well as long-term capital gains of the said
year. Balance loss, if any could be carried forward for eight years for claiming set-off
against subsequent years’ short-term as well as long-term capital gains. Long-term
capital loss suffered (other than the long-term capital assets whose gains are exempt
Page | 60
under Section 10(38) of the I.T. Act) during the year is allowed to be set-off only
against long-term capital gains. Balance loss, if any, could be carried forward for
eight years for claiming set-off against subsequent year’s long-term capital gains.
5. The income tax deducted shall be increased by a surcharge as under (as per the
Finance Act, 2017):
(a) In the case of non-resident Indian surcharge at the rate of 10% of such tax where
the income or the aggregate of such income paid or likely to be paid and subject to the
deduction exceeds Rs. 50,00,000 and 15 % of such tax where the income or the
aggregate of such income paid or likely to be paid and subject to the deduction
exceeds Rs. 1,00,00,000.
(b) In case of foreign companies, where the income paid or likely to be paid exceeds
Rs. 1,00,00,000 but does not exceed Rs. 10,00,00,000 a surcharge of 2% of such tax
liability is payable and when such income paid or likely to be paid exceeds Rs.
10,00,00,000, surcharge at 5% of such tax is payable.
Further, 2% education cess and 1% secondary and higher education cess on the total
income tax (including surcharge) is also deductible. However Union Budget 2018 has
amended the education cess and secondary education cess and replaced it with 4%
health and education cess (hereinafter referred as “cess”) w.e.f. 1 April 2018.
6. As per Section 90(2) of the I.T. Act read with the Circular no. 728 dated October 30,
1995 issued by the Central Board of Direct Taxes, in the case of a remittance to a
country with which a Double Tax Avoidance Agreement (DTAA) is in force, the tax
should be deducted at the rate provided in the Finance Act of the relevant year or at
the rate provided in the DTAA, whichever is more beneficial to the assessee.
However, submission of tax residency certificate(TRC), is a mandatory condition for
availing benefits under any DTAA. If the tax residency certificate does not contain
the prescribed particulars, a self-declaration in Form 10F would need to be provided
by the assesse along with TRC.
7. Alternatively, to ensure non deduction or lower deduction of tax at source, as the case
may be, the Debenture Holder should furnish a certificate under Section 195(2) and
195(3) of the I.T. Act, from the Assessing Officer before the prescribed date of
closure of books for payment of debenture interest. However, an application for the
issuance of such certificate would not be entertained in the absence of PAN as per the
provisions of Section 206AA of the I.T. Act, except in case of interest on certain long
– term bonds as referred to in Section 206AA(7) of the I.T. Act.
8. Where, debentures are held as stock in trade, the income on transfer of debentures
would be taxed as business income or loss in accordance with and subject to the
provisions of the I.T. Act. Further, where the debentures are sold by the Debenture
Holder(s) before maturity, the gains arising there from are generally treated as capital
gains or business income, as the case may be. However, there is an exposure that the
Indian Revenue Authorities (especially at lower level) may seek to challenge the said
characterisation (especially considering the provisions explained in Para V below)
and hold such gains/income as interest income in the hands of such Debenture
Holder(s). Further, cumulative or regular returns on debentures held till maturity
would generally be taxable as interest income taxable under the head Income from
Page | 61
other sources where debentures are held as investments or business income where
debentures are held as trading asset / stock in trade.
III. To the Foreign Institutional Investors (FIIs)
1. As per Section 2(14) of the I.T. Act, any securities held by FIIs/FPIs which has
invested in such securities in accordance with the regulations made under the
Securities and Exchange Board of India Act, 1992, shall be treated as capital assets.
Accordingly, any gains arising from transfer of such securities shall be chargeable to
tax in the hands of FIIs as capital gains.
2. In accordance with and subject to the provisions of Section 115AD of the I.T. Act,
long term capital gains on transfer of debentures by FIIs are taxable at 10% (plus
applicable surcharge and cess) and short-term capital gains are taxable at 30% (plus
applicable surcharge and cess). The benefit of cost indexation will not be available.
Further, benefit of provisions of the first proviso of Section 48 of the I.T. Act will not
apply.
3. Income other than capital gains arising out of debentures is taxable at 20% in
accordance with and subject to the provisions of Section 115AD.
4. Section 194LD in the I.T. Act provides for lower rate of withholding tax at the rate of
5% on payment by way of interest paid by an Indian company to FIIs and Qualified
Foreign Investor in respect of rupee denominated bond of an Indian company between
June 1, 2013 and July 1, 2020 provided such rate does not exceed the rate as may be
notified by the Government. In addition to that, applicable surcharge and cess will
also be deducted.
5. In accordance with and subject to the provisions of Section 196D(2) of the I.T. Act,
no deduction of tax at source is applicable in respect of capital gains arising on the
transfer of debentures by FIIs.
6. The CBDT has issued a Notification No. 9 dated 22 January 2014 which provides that
Foreign Portfolio Investors (FPI) registered under SEBI (Foreign Portfolio Investors)
Regulations, 2014 shall be treated as FII for the purpose of Section 115AD of the I.T.
Act.
IV. To the Other Eligible Institutions
All mutual funds registered under Securities and Exchange Board of India or set up by public
sector banks or public financial institutions or authorised by the Reserve Bank of India are
exempt from tax on all their income, including income from investment in Debentures under
the provisions of Section 10(23D) of the I.T. Act subject to and in accordance with the
provisions contained therein. Further, as per the provisions of section 196 of the I.T. Act, no
deduction of tax shall be made by any person from any sums payable to mutual funds
specified under Section 10(23D) of the I.T. Act, where such sum is payable to it by way of
interest or dividend in respect of any securities or shares owned by it or in which it has full
beneficial interest, or any other income accruing or arising to it.
V. General Anti-Avoidance Rule (‘GAAR)
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In terms of Chapter XA of the I.T. Act, General Anti-Avoidance Rule may be invoked
notwithstanding anything contained in the I.T. Act. By this Rule, any arrangement entered
into by an assessee may be declared to be impermissible avoidance arrangement as defined in
that Chapter and the consequence would be interalia denial of tax benefit, applicable w.e.f 1-
04-2017. The GAAR provisions can be said to be not applicable in certain circumstances viz.
the main purpose of arrangement is not to obtain a tax benefit etc. including circumstances
enumerated in CBDT Notification No. 75/2013 dated 23 September 2013.
VI. Exemption under Sections 54EC, 54EE and 54F of the I.T. Act
1. Under Section 54EC of the I.T .Act, long term capital gains arising to the debenture
holders on transfer of their debentures in the company shall not be chargeable to tax to the
extent such capital gains are invested in certain notified bonds within six months after the
date of transfer. If only part of the capital gain is so invested, the exemption shall be
proportionately reduced. However, if the said notified bonds are transferred or converted
into money within a period of three years from their date of acquisition, the amount of
capital gains exempted earlier would become chargeable to tax as long term capital gains
in the year in which the bonds are transferred or converted into money. However, the
exemption is subject to a aggregate limit of investment of Rs 50 lakhs during any
financial year in the notified bonds. Where the benefit of Section 54EC of the I.T. Act has
been availed of on investments in the notified bonds, a deduction from the income with
reference to such cost shall not be allowed under Section 80 C of the I.T. Act. However,
Union Budget 2018 has proposed to discontinue the above benefit on all asset except
Land and Building.
2. As per the provisions of Section 54F of the I.T. Act, any long-term capital gains on
transfer of a long term capital asset (not being residential house) arising to a Debenture
Holder who is an individual or Hindu Undivided Family, is exempt from tax if the entire
net sales consideration is utilized, within a period of one year before, or two years after
the date of transfer, in purchase of a new residential house, or for construction of
residential house within three years from the date of transfer subject to conditions. If part
of such net sales consideration is invested within the prescribed period in a residential
house, then such gains would be chargeable to tax on a proportionate basis.
3. As per provisions of Section 54 EE, long term capital gains arising to Debenture Holders
on transfer of their debentures in the company shall not be chargeable to tax to the extent
such capital gains are invested in certain notified units within six months after the date of
transfer. If only part of the capital gain is so invested, the exemption shall be
proportionately reduced. However, if the said notified units are transferred within three
years from their date of acquisition, the amount of capital gain exempted earlier would
become chargeable to tax as long term capital gains in the year in which units are
transferred. Further, in case where loan or advance on the security of such notified units is
availed, such notified units shall be deemed to have been transferred on the date on which
such loan or advance is taken. However, the amount of exemption with respect to the
investment made in the aforesaid notified units during the financial year in which such
debentures are transferred and the subsequent financial year, should not exceed Rs. 50
lacs.
Page | 63
VII. Requirement to furnish PAN under the I.T. Act
1. Sec.139A(5A)
Section 139A(5A) requires every person from whose income tax has been deducted at source
under chapter XVII-B of the I.T. Act to furnish his PAN to the person responsible for
deduction of tax at source.
2. Sec.206AA:
(a) Section 206AA of the I.T. Act requires every person entitled to receive any sum, on
which tax is deductible under Chapter XVIIB (‘deductee’) to furnish his PAN to the
deductor, failing which attracts tax shall be deducted at the higher of the following
rates:
(i) at the rate specified in the relevant provision of the I.T. Act; or
(ii) at the rate or rates in force; or
(iii) at the rate of twenty per cent.
(b) A declaration under Section 197A(1) or 197A(1A) 197A(1C) shall not be valid unless
the person furnishes his PAN in such declaration and the deductor is required to
deduct tax as per Para (a) above in such a case.
(c) Where a wrong PAN is provided, it will be regarded as non furnishing of PAN and
Para (a) above will apply.
(d) The provisions of this section shall not apply to a non-resident, not being a company,
or to a foreign company, in respect of:
(i) payment of interest on long-term bonds as referred to in section 194LC; and

(ii) any other payment subject to such conditions as may be prescribed.
The non-resident deductee in this regard, shall be required to furnish few prescribed details inter
alia TRC and Tax Identification Number (TIN).
VIII. Taxability of Gifts received for nil or inadequate consideration
As per section 56(2)(x) of the I.T. Act, where an Individual or Hindu Undivided Family receives
debentures from any person on or after 1st April 2017:
(i) without any consideration, aggregate fair market value of which exceeds fifty thousand rupees,
then the whole of the aggregate fair market value of such debentures or;
(ii) for a consideration which is less than the aggregate fair market value of the debenture by an
amount exceeding fifty thousand rupees, then the aggregate fair market value of such debentures
computed in the manner prescribed by law as exceeds such consideration;
shall be taxable as the income of the recipient at the normal rates of tax. The above is subject to
few exceptions as stated on section 56(2)(x) of the Act.
IX. Where the Debenture Holder is a person located in a Notified Jurisdictional Area
(‘NJA’) under section 94A of the I.T. Act
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Where the Debenture Holder is a person located in a NJA [at present, Cyprus has been notified as
[NJA], as per the provisions of section 94A of the I.T. Act –
 All parties to such transactions shall be treated as associated enterprises under section
92A of the I.T. Act and the transaction shall be treated as an international transaction
resulting in application of transfer pricing regulations including maintenance of
documentations, benchmarking, etc.
 No deduction in respect of any payment made to any financial institution in a NJA
shall be allowed under the I.T. Act unless the assessee furnishes an authorisation in the
prescribed form authorizing the CBDT or any other income-tax authority acting on its
behalf to seek relevant information from the said financial institution [Section 94A (3)
(a) read with Rule 21AC and Form 10FC].
 No deduction in respect of any expenditure or allowance (including depreciation)
arising from the transaction with a person located in a NJA shall be allowed under the
I. T. Act unless the assessee maintains such documents and furnishes such information
as may be prescribed [Section 94A(3)(b) read with Rule 21AC].
 If any assessee receives any sum from any person located in a NJA, then the onus is on
the assessee to satisfactorily explain the source of such money in the hands of such
person or in the hands of the beneficial owner, and in case of his failure to do so, the
amount shall be deemed to be the income of the assesse [Section 94A(4)].
 Any sum payable to a person located in a NJA shall be liable for withholding tax at the
highest of the following rates:
(i) at the rate or rates in force;
(ii) at the rate specified in the relevant provision of the I.T. Act; or
(iii) at the rate of 30%
Notes forming part of statement of tax benefits
1. The above Statement sets out the provisions of law in a summary manner only and is not a
complete analysis or listing of all potential tax consequences of the purchase, ownership and
disposal of debentures/bonds.
2. The above statement covers only certain relevant benefits under the Income-tax Act, 1961 and
does not cover benefits under any other law.
3. The above statement of possible tax benefits is as per the current direct tax laws relevant for
the Assessment Year 2018-19 (considering the amendments made by Finance Act, 2017).
4. This statement is intended only to provide general information to the Debenture Holders and
is neither designed nor intended to be a substitute for professional tax advice. In view of the
individual nature of tax consequences, each Debenture Holder is advised to consult his/her/its
own tax advisor with respect to specific tax consequences of his/her/its holding in the
debentures of the Company.
5. The stated benefits will be available only to the sole/ first named holder in case the debenture
is held by joint holders.
6. In respect of non-residents, the tax rates and consequent taxation mentioned above will be
further subject to any benefits available under the relevant tax treaty, if any, between India
and the country in which the non-resident has fiscal domicile.
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7. In respect of non-residents, taxes paid in India could be claimed as a credit in accordance with
the provisions of the relevant tax treaty.
8. Interest on application money would be subject to tax at the normal rates of tax in accordance
with and subject to the provisions of the I.T. Act and such tax would need to be withheld at
the time of credit/payment as per the provisions of Section 194A/195 of the I.T. Act
9. No assurance is given that the revenue authorities/courts will concur with the views expressed
herein. Our views are based on the existing provisions of law and its interpretation, which are
subject to changes from time to time. We do not assume responsibility to update the views
consequent to such changes. We shall not be liable to any claims, liabilities or expenses
relating to this assignment except to the extent of fees relating to this assignment, as finally
judicially determined to have resulted primarily from bad faith or intentional misconduct. We
will not be liable to any other person in respect of this statement.
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SECTION IV: ABOUT THE ISSUER AND INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
The following information includes extracts from publicly available information, data and statistics derived from
reports prepared by third party consultants, including the IMaCS Industry Report 2017, private publications,
and industry reports prepared by various trade associations, as well as other sources, which have not been
prepared or independently verified by the Company, the Lead Managers or any of their respective affiliates or
advisors. Such information, data and statistics may be approximations or may use rounded numbers. Certain data
has been reclassified for the purpose of presentation and much of the available information is based on best
estimates and should therefore be regarded as indicative only and treated with appropriate caution.
Overview of the Indian Economy
The Indian economy is one of the fastest growing economies in the world and in terms of purchasing power parity
(PPP), it ranks third largest in the world, after the United States and China. In terms of PPP, it has moved up by
one rank during 2012 (ahead of Japan) from its fourth position during 2011 and has maintained the same since then
(Source: Central Statistics Office, Govt. of India). Its GDP stood at approximately US $8.720 trillion in 2016-17
(Source: International Monetary Fund). It's GDP grew at a real growth rate of 7.1% in 2016-17. (Source:
Central Statistics Office, Govt. of India).
Overview of the Indian Consumer Credit Market
A variety of financial intermediaries in the public and private sectors participate in India's consumer lending
sector, including commercial banks and NBFCs.
Commercial Banks
As of March 2017 , there were 150 scheduled commercial banks ("SCBs"), (including regional rural banks
("RRBs") in India. (Source: RBI, Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks).
As of March 2017, the number of banked centres served by SCBs was 46,470 of which 34,679 were single
office centres and 100 centres had 100 or more bank offices (Source: RBI, Quarterly Statistics on Deposits and
Credit of Scheduled Commercial Banks, 2016-17:Q4 ). Scheduled commercial banks are banks that are listed in
a schedule to the Reserve Bank of India Act, 1934, and may be further categorised as public sector banks,
private sector banks and foreign banks.
Non-Banking Finance Companies
A non-banking finance company ("NBFC") is a company registered under the Companies Act, 1956/2013 and is
engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by
Government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance
business, chit business but does not include any institution whose principal business is that of agriculture activity,
industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a
company and which has its principal business of receiving deposits under any scheme or arrangement or any
other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking
company). It is mandatory that every NBFC should be registered with RBI to commence or carry on any
business of non-banking financial institution as defined in clause (a) of Section 45 I of the RBI Act, 1934. All
NBFCs are not entitled to accept public deposits. Only those NBFCs holding a valid Certificate of Registration
with authorisation to accept public deposits can accept/hold public deposits. NBFCs authorised to accept/hold
public deposits besides having minimum stipulated net owned fund should also comply with the directions such
as investing part of the funds in liquid assets, maintain reserves, rating etc. issued by the Bank (Source: RBI). As
of January 31, 2018, there were 168 NBFCs in India permitted to accept public deposits (Source:
http://www.rbi.org.in/scripts/NBFC_Pub_lic.aspx). Further, as of January 31 , 2018, there were 11,055 NBFCs
in India that do not accept public deposits (Source: http://www.rbi.org.in/scripts/bs_nbfclist.aspx)
Gold Finance Industry in India
According to the World Gold Council, India is one of the top two largest markets for gold, the other being
China. The World Gold Council expects that by 2020, India (together with China) will have one billion new
urban consumers of gold jewelry. In 2017, India accounted for 26.34% of the global demand of gold jewelry
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(Source: World Gold Council). Part of the large appetite for jewelry in India is driven by the cultural role gold
plays; it is considered auspicious to buy gold at key festivals and events. Limited access to financial assets
means gold has an important parallel status as a store of value. In India, gold jewelry is a desirable possession as
well as an investment to be passed down through generations. (Source: World Gold Council)
Indian consumers have an affinity for gold that emanates from various social and cultural factors. Furthermore,
the low level of financial inclusion and poor access to financial products and services make gold a safe and
attractive investment proposition. Gold Loans in India, have largely been concentrated in southern India,
which holds the largest proportion of India's gold portfolio, and is typically more open to borrowing
against gold as compared to consumers in the northern and western regions of India. (Source: Report of the
Working Group to Study the Issues Related to Gold Imports and Gold Loans NBFCs in India, February 2013)
Gold Demand in India
 Continued demand: During the year 2017, gold jewelry demand was 563 tonnes and gold bar and
coin demand was 164 tonnes. The increase in demand was partly on account of very weak 2016. Demand
fluctuated on account of changes in tax and regulations. In 2017, rupee gold prices trended lower, which proved
positive for demand. Demand was further supported by festival demand, the government’s decision to remove
anti-money laundering regulation from jewellery and improved rural sentiment. The market is becoming
increasingly accustomed to the new Goods and Services tax (GST). The organized retailers were best equipped
to transition to the new GST system and this worked to their benefit as they increased their share of the
jewellery market. Looking forward, we expect a continued recovery in demand as the market increasingly
accepts, and adapts to, GST. And the relative outperformance of chain stores and organised retailers is, in our
view, likely to be a key feature of this recovery ( (Source: World Gold Council)
 South India constitutes the largest market for gold: Southern India has been the largest market
accounting for approximately 40% of the gold demand, followed by the western region at approximately 25%,
the northern region at 20-25%, and the eastern region at approximately15% of India's annual gold demand.
(Source: Report of the Working Group to Study the Issues Related to Gold Imports and Gold Loans NBFCs in
India, February 2013)
 Demand is further concentrated in rural pockets of India: Rural India is estimated to hold
around 65% of total gold stock as this section of the population views gold as a secure and easily accessible
savings vehicle along with its consumption purpose. (Source: Report of the Working Group to Study the Issues
Related to Gold Imports and Gold Loans NBFCs in India, February 2013).
Gold Loans Market in India
Borrowing against gold is one of the popular instruments based on physical pledge of gold and it has been working
well with Indian rural household’s mindset, which typically views gold as an important saving instrument that is
liquid and can be converted into cash instantly to meet any urgent needs. In a country, where illiterate and semi-
literate people have to raise a loan for meeting some sudden medical exigency or an educational loan or a business
loan by a small and medium enterprise owner, the gold loans extended by the NBFCs are very handy and flexible,
though costlier than such loans disbursed by banks. At a time, when financial inclusion is a major policy goal, the
services rendered by the gold loans NBFCs, which are a part of the organised loan market are contributing in a
reasonable measure to cater to the borrowing requirements of a needy section of the society. Secondly, gold is an idle
asset in the hands of individuals and there is a huge unlocked economic value in the Indian economy, which is said to
have anywhere between 18000 to 20000 tonnes of gold. Just a small fraction of about three per cent of this idle gold
stock is being used for raising gold loans, at present. The process through which gold loans are raised is monetising
the gold in the country. If we cannot bring down the demand for gold significantly, at least, we need to ensure that the
gold is put to an economic use through gold loans. The Working Group sees huge potential for the gold loans
business in India in the medium and long run, as the gold stock increases ceaselessly in the country for varied reasons.
Banks and gold loan NBFCs extending gold loans are playing a role in this financialisation process. (Source: Report
of the Working Group to Study the Issues Related to Gold Imports and Gold Loans NBFCs in India, February
2013).
The major players in the organised gold loans market in India are commercial banks, cooperative banks and
gold loan NBFCs known as non deposit taking, systemically important NBFCs.
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In addition to a growing organized gold loans market, there is a large long-operated, un-organised gold loans
market which is believed to be several times the size of organised gold loans market. There are no official
estimates available on the size of this market, which is marked with the presence of numerous pawnbrokers,
moneylenders and land lords, operating at a local level. These players are quite active in rural areas of India,
and provide loans against jewelry to families in need at interest rates in excess of 30 percent. These
operators have a strong understanding of the local customer base and offer an advantage of immediate
liquidity to customers in need, with extreme flexible hours of accessibility, without requirements of any
elaborate formalities and documentation. However, these players are completely un-regulated leaving the
customers vulnerable to exploitation at the hands of these moneylenders and pawn-brokers.
Seizing the vast untapped potential available for lending against gold, the organised players such as NBFCs
became more aggressive in the gold loans market and a significant part of the gold loans likely to have shifted
from the un-organised lenders to the organised lenders, thus fueling a strong growth in the organised market.
Further, the growth would be even higher if the customer attitude towards gold pledging becomes more positive
aided by positive government regulations and aggressive promotion by banks, finance companies and other
formal financial institutions. South India continues to account for 80-85 per cent of the gold loans market in
India. Despite attempts by banks to expand in certain pockets of Northern and Western India, historically, the
market has remained concentrated in Southern India. However this trend is changing gradually, as witnessed in
the strong expansion of branches of the leading gold loans providing NBFCs in Northern and Western India.
(Source: Report of the Working Group to Study the Issues Related to Gold Imports and Gold Loans NBFCs in
India, February 2013).
NBFCs in the Indian Gold Loans market
In the current phase of the gold loans market, Specialised Gold loan NBFCs have again re-emerged at the centre
of the competitive field with traditional banks in the sector exercising restrain in the sector. Majority of the new
entrants have exited and/or have adopted a cautious approach. (Source: IMaCS Industry Report 2017).
Specialised Gold Loan NBFCs have a single minded focus on the gold loan segment and view it as their bread
and butter segment. This unified focus has enabled these NBFCs to develop processes and systems tailored for
catering to the gold loans segment which is small ticket size, requires quick turnaround and demands expertise in
a host of operational aspects such as valuation of gold, safeguarding the pledged gold and ability to recover
adequate value on gold auctioned to contain any possible credit losses. One of the key strategic initiatives that
has strengthened the position of specialised NBFCs is that they have managed to create a first mover advantage
for themselves in the Non South gold loans market in India, where till recently; competition has been negligible
from other categories of lenders. (Source: IMaCS Industry Report 2017).
The primary competitors to Specialised Gold Loan NBFCs have been South based private sector banks which
have a strong presence in the target customer segments of the Specialised Gold Loan NBFCs. As reflected in
their portfolio composition, almost 60-85 per cent of their gold loan portfolio goes to the non priority sector,
which is defined as loans against pledge of gold ornaments for non-agricultural purposes and hence, do not fit in
the definition of priority sector lending. For these banks, gold loans have been an integral part of their product
offerings. However, despite being a core offering, their focus and growth in the segment has been restricted by
multiple factors such as priorities of the bank and focus on other segments, slow growth in overall balance sheet
and inability to grow their exposure to a single segment beyond a limit. The portfolio and branches of these
banks are geographically concentrated in one or two states of South India and hence, there is a very limited
possibility of these banks to expand to geographies beyond South India. (Source: IMaCS Industry Report 2017)
Drivers of Growth in Gold Loans Market in India
i. Regulatory incentives to lenders: RBI in January 2014, released regulation, mandating 75% loan to
value (LTV) cap (an increase from the 60% LTV cap mandated in September 2013 and which gold
loan NBFCs were yet to implement). Revised LTV of 75% would provide a level-playing field to
gold loan NBFCs compared with banks and lowers the risk of competition and loss of market share.
ii. Increasing need for liquidity: As gold loans are issued solely on the basis of gold jewelry as
collateral, the high growth rates observed for gold loans in recent years could be reflecting the
emergence of a liquidity motive apart from the conventional saving motive to acquire gold. The
rapid growth in gold loans in recent years indicates unleashing the latent demand for liquidity from
significant proportion of the population who faced severe borrowing constraints in the past.
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(Source: Report of the Working Group to Study the Issues Related to Gold Imports and Gold Loans
NBFCs in India, February 2013).
iii. Changing consumer attitudes and preferences: Indian customers have demonstrated a change in
their traditionally debt-averse psychology. A quiet swing in savings from financial products to
assets, showing propensity for further growth, is visible in the Indian economy. (Source: Report of
the Working Group to Study the Issues Related to Gold Imports and Gold Loans NBFCs in India,
February 2013).
Growth and Size of the Organised Gold Loan Market:
The Indian gold loans market underwent a significant change as it came out of a particularly testing period
during FY13-15. The segment which was on an upswing during 2004-12 went through a period of slowdown
when the regulator, concerned about the overheating in the sector, introduced a series of guidelines to temper the
growth of gold loan NBFCs. Further, the gold prices which exhibited a secular upward trend for a decade (2003-
13) started showing signs of weakness and began to decline. Gold loan companies faced a double whammy of
more stringent RBI regulations, which placed them at a disadvantage position compared with banks, and
declining gold prices, leading to a significant slowdown in their business. Even banks could not capture much of
the market vacated by gold loan companies mainly due to declining gold loan prices. As a result of this, the
organised gold loans market could grow at a CAGR of only 4 per cent during FY12-15 to a market size of Rs
1,350 billion, up from Rs.1,200 billion in FY12. (Source: IMaCS Industry Report 2017)
The price of gold in the global market started declining from the last quarter of FY13 and is estimated to have
declined by an annual rate of 11 per cent during FY12-15. However, the decline in gold prices was relatively
lower in India at 4.3 per cent, due to continuing appreciation of the Rupee during this period. India continues to
be one of the largest consumer markets for gold and is estimated to hold around 12.8 per cent of total World
Gold stock in FY16 up from 11.7 per cent in FY11. Gold demand in India remained flat over the period FY12-
15, while demand for gold jewellery in India grew at 5.4 per cent during FY12-15. (Source: IMaCS Industry
Report 2017)
In FY12, RBI introduced a LTV Cap of 60 per cent for gold loan NBFCs, increased their Tier 1 Capital
Adequacy Ratio (CAR) to 12 per cent and introduced restrictions on banks’ exposure to gold loan NBFCs. The
regulations were further tightened in FY13 with fresh concerns emerging from a declining trend in gold prices
and reported stress in the financial performance of specialised NBFCs. RBI removed the loophole related to
LTV cap by linking the Cap of 60 per cent to the value of gold as against to the value of jewellery. The move
came in after NBFCs started linking the loan amount eligibility to the value of jewellery to arrest a steep fall in
their LTVs. RBI also introduced several other guidelines to improve transparency in the operations of NBFCs
aimed at customer protection. During FY14, RBI taking into consideration the recommendations of the K.U.B.
Rao committee and a more stable outlook on gold prices, increased the LTV Cap to 75 per cent for NBFCs and
extended the same to banks as well, thus providing the much needed relief to gold loan companies. (Source:
IMaCS Industry Report 2017)
A change in the operating environment led to a slowdown for Specialised Gold Loan NBFCs, which registered a
significant decline in their market share during FY12-14. Specialised Gold Loan NBFCs lost a significant share
of the market to banks during FY13-14 with the market share coming down to 29 percent in FY14 from a high
of 36 per cent in FY12. During this period, the gold loan portfolio of banks grew by 10 per cent, as a result of
which their market share increased from 50 per cent in FY12 to 59 per cent in FY15. While gold loan portfolio
of banks grew strongly during FY13, they could not sustain their growth rates during FY14-16 due to overall
concerns related to their asset quality, weak credit demand and falling gold loan prices. (Source: IMaCS
Industry Report 2017)
An adverse regulatory scenario, restrictions on offering high LTV products, increase in competition intensity
from banks and the unorganised sector led to a pressure on yields, higher cost of borrowing and squeezed
margins of the gold loan companies. Decline in gold prices started reflecting on the asset quality, which
experienced higher stress levels and lower volumes translated into high operating expense ratios for the
Specialised Gold Loan NBFCs. The results of all these factors led to a decline in the overall profitability of
Specialised Gold Loan NBFCs with the Return on Assets tapering down to 2.6 to 2.8 per cent, significantly
lower than the high of 4-5 per cent, which was the norm during the high growth era of FY09-12. (Source:
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While the period of FY12-15 was a testing time for the sector and the Specialised Gold Loan NBFCs, there were
a few silver linings as well. Specialised Gold Loan NBFCs managed to consolidate their presence and increase
the penetration in the Non South geographies, which were traditionally not as open to the idea of pledging gold
as in the case of South India. The business per branch from Non South Geographies grew and reached levels
than that of branches in the South. The share of portfolio from non South geographies for Muthoot Finance and
Manappuram Finance reached 43 per cent and 32 percent of the total portfolio respectively during FY15 and
further improved to 46 per cent and 35 per cent repectively in FY 16. (Source: IMaCS Industry Report 2017)
In FY16, even as regulatory environment stabilised and gold prices strengthened, growth in total gold loan
portfolio could not improve as each category of lenders focused on consolidating rather than expanding their
portfolio. As regulations restored level field playing for NBFCs with banks, Specialised Gold Loan NBFCs
managed to regain some of their lost ground in FY15 and FY16 with an estimated share of around 30.5 per cent
and 31 per cent respectively. While gold loan portfolio of banks grew strongly during FY13, they could not
sustain their growth rates during FY14-16 due to overall concerns related to their asset quality, weak credit
demand and falling gold loan prices. Only a few leading public sector banks could regain some growth in FY16
and capture a higher market share but the market share gain was largely at the expense of the old private sector
banks which continued with their declining trend in the segment. The consolidated market share of all banks
remained unchanged and was estimated at 59 per cent in FY16. During the year, gold prices started moving
upwards again which led to marginally lower amount of gold pledged as compared to FY15. The total Gold
Loan portfolio was estimated at Rs. 1,350 billion in FY15 and stood at 1,400 billion in FY16, thus remaining
stagnant even after a year of regulatory stability. In terms of leading lenders, Muthoot Finance Limited retained
its position as the largest gold loan provider with an estimated portfolio of Rs 243.3 billion with translates into a
market share of 17 per cent in FY16. Indian Bank and Indian Overseas Bank occupied the 2nd and 3rd position
with an estimated market share 14 per cent and 11 per cent respectively. Manappuram could retain its position as
the second largest Specialised Gold Loan provider with an estimated market share of 7 per cent (Source: IMaCS
The regulatory parity with banks was for Gold Loan NBFCs and the regulatory regime for them has continued to
be largely stable in the last two years. Further, Gold Loan NBFCs spent more energy to stabilise their business
and could even regain their lost growth trajectory during the first two quarters of FY17. The growth was
temporarily arrested during third quarter of FY17 due to demonetisation with some spill over expected in the last
quarter of FY17. Business has sprung back to pre-demonetisation levels for most of the Gold Loan NBFCs, yet a
big slice of the growth expected in the last two quarters of FY17 had been chopped off, thus limiting the overall
annual growth in FY17. (Source: IMaCS Industry Report 2017)
Competition
Specialised Gold Loan NBFCs lose ground to banks, but regain share in FY15 to H1FY17
During FY12-14, Specialised Gold Loan NBFCs lost significant market share to public sector banks and the
unorganised sector. The market share of Specialised Gold NBFCs came down to 31 per cent in FY13 from a
high of 36.5 per cent in FY12 and further declined to 28.6 per cent in FY14. The phase marked a turbulent
period for Specialised Gold Loans NBFCs as they struggled to come to terms with the changed regulatory
environment. The NBFCs focussed and spent their resources in consolidating their operations, diversifying their
risks, improving productivity from their existing branch network and managing/retaining their employees. As a
result, they could regain some of their lost ground in FY15 and FY16 with a market share of 30 per cent and 31
per cent respectively. Gold Loan NBFCs are now poised for a healthy growth as they enter into a stable
regulatory regime. (Source: IMaCS Industry Report 2017)
New NBFC entrants into the market were the worst affected by the regulatory uncertainty and their inability to
manage their asset quality in the scenario of declining gold prices. Several players exited the market while a few
others significantly reduced their exposure in the segment. Of the NBFC entrants, two companies, namely, India
Infoline Finance Limited and Shriram City Union Finance Limited continue to operate in the segment, but with
cautious outlook and have curtailed their exposure and capped their exposure to the segment. After achieving
market share of 7 per cent collectively in FY13, their combined share declined to 5.1 per cent in FY14 and 4.6
per cent in FY16, even when the regulatory constraints were eased and gold prices turned favourable towards the
end of FY16. (Source: IMaCS Industry Report 2017)
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Banks could not capture and hold much of the ground vacated by the Gold Loan NBFCs.
Banks held a competitive advantage vis-à-vis NBFCs during the period FY13-15. They could grow at a much
faster pace than that of NBFCs in FY13 and FY14. However, they could not sustain the rate of growth and
expansion owing to concerns related to asset quality on account of the decline in gold prices. (Source: IMaCS
South based public Sector Banks were a significant beneficiary of the decline in the growth of NBFCs, and they
could increase their market share from 35 per cent in FY12 to 44 per cent in FY15 and 45.8 per cent in FY16.
However, barring FY13, when their total portfolio grew by 43 per cent, their portfolio in absolute terms was
almost stagnant during the period FY13-15, thus demonstrating that they could not attract and retain any
significant number of gold loan customers from specialized gold loan NBFCs during this period. Growth in
FY16 was marginally better, as their gold loan portfolio grew by 11 per cent even as they continued to be under
pressure due to the rising burden of nonperforming assets. (Source: IMaCS Industry Report 2017)
Private sector banks fared even worse than public sector banks, thus reflecting their inadequate focus and lack of
ability to take larger exposure in the gold loans sector. After an initial growth of 23 per cent in FY13, the
aggregate portfolio of these banks declined by around 5 per cent during FY13-15 and further decline by 15 per
cent during FY16. South based private sector banks have shown the steepest decline in their gold loan portfolio
in contrast to a few new private sector banks which have increased their focus and scale in the segment. (Source:
Similar to new NBFC entrants, new private sector banks that entered the gold loans segment also reduced their
focus on the segment during FY13-15. During this phase, the relative inexperience of the new entrants to operate
in the gold loans segment was exposed. The larger entrants such as HDFC Bank and ICICI Bank also
experienced a reduction in their gold loan portfolio during this period. However, during the first two quarters of
2017, these two banks have shown signs of renewed interest in Gold Loan segment. Their continued focus and
sustainability in this sector can be gauged only in the times to come. We have captured a short write-up on their
target customer segments, product offerings and focus on the gold loan segment in the competitive landscape
section. (Source: IMaCS Industry Report 2017)
In addition to concerns specific to the gold loans segment, the banks have also been constrained by overall
concerns on their balance sheet growth, asset quality and profitability. As per ICRA’s ratings(Based on 26
public sector banks and 14 private sector banks which account for 90 per cent of the total credit and deposits of
All Scheduled Commercial Banks as on September 30th, 2016) release “Indian Banking Sector in India:
Performance update and outlook for Q2FY17” the banking sector in India have been showing sustained signs of
pressure on asset quality and subdued credit demand. The report states that the credit growth of banks was
reported at 9.3 per cent in FY15, 5.8 per cent in FY16 and showed a sharp decline of 4.4 per cent in H1FY17 on
year on year basis compared to deposits growth of 10.1 per cent in FY15, 6.4 per cent in FY16 and 7.3 per cent
during H1FY17, thus pointing to weak credit demand as well as risk aversion in the banks. Further, the report
states that Gross NPAs in the sector have risen continuously from 3.9 per cent in FY14 to 7.7 per cent in FY16
and to 9.2 per cent as on 30th September 2016. (Source: IMaCS Industry Report 2017)
The report attributes the slowdown in credit growth and concerns of asset quality of Public Sector Banks, noting
that performance of their private sector counterparts was significantly better. Public Sector banks are expected to
remain focused on recovery, given their worsening asset quality profile rather than targeting any significant
credit growth. We believe that the above factors may restrain them from getting aggressive or plan any
expansion in the gold loan segment over the next two three years. (Source: IMaCS Industry Report 2017)
In addition to the changes in the overall competitive landscape, the performance of individual lenders in the gold
loans sector has been varied depending on their strategic focus and capabilities. Muthoot Finance Limited has
maintained its position as the largest gold loan company in India in FY16 with a market share of 17.4per cent.
Indian Bank and Indian Overseas Bank occupied the second and third positions respectively with an estimated
market share of 13.2 per cent and 10.9 per cent in FY16. Manappuram Finance, the 2nd largest Specialised Gold
Loan Company held a market share of 7.2 per cent in FY16. Muthoot Fincorp is the 3rd largest Specialised Gold
Loan Company with a market share of 4.9 per cent in FY16. (Source: IMaCS Industry Report 2017)
The changes in the competitive landscape in the sector have been in line with our expectations. Specialised
NBFCs initially lost their market share to banks but have managed to regain a part of their lost market share
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quickly, once the regulatory arbitrage disappeared, thus highlighting their inherent competitive advantages to
operate in the segment. Their performance has been encouraging the first six months of FY17, even as
performance in last quarters of FY17 has been abruptly impacted due to demonetisation(Source: IMaCS Industry
Report 2017)
New NBFC entrants in the sector have been the worst effected due to difficult operating environment. Public
Sector Banks have managed to gain a larger market share in FY16 at the expense of declining market share of
South based private sector banks and new NBFCs . (Source: IMaCS Industry Report 2017)
Going forward, the strategic stance of each category of gold loans provider will depend on its focus, specialised
capabilities to operate in the segment and the regulatory environment impacting their operations. (Source:
Competition for Specialised Gold Loan NBFCs remained subdued during FY16 and the trend is expected to
continue during FY17 and FY18. This should allow Specialised Gold Loans NBFCs to strengthen their market
share further and regain a larger part of the market share they lost during FY13-15. Further, public sector banks
and old private sector banks are expected to continue to grow with restrain. South based public sector banks are
not expected to eye aggressive growth in the medium term with concerns emanating from their rising share of
bad debts along with RBI directives on stricter monitoring on end-use of agricultural loans including
agricultural gold loans. South Based Private sector banks that were high on their exposure in the gold loan
segment have reduced the proportion of gold loans in total loans and are expected to cap the exposure at a
certain per cent of their portfolio. Once they reach the internal cap on gold loans, we can expect the growth in
their gold loan portfolio to be in sync with the overall growth expected in their balance sheet. With gold loan
prices re-entering an upward trajectory, new NBFC entrants into the market can be expected to increase their
participation in the segment, though growing cautiously to avoid any shocks caused by volatility in gold prices.
(Source: IMaCS Industry Report 2017)
New Private Sector Banks have again re-entered the segments, but lack strong focus on the segment and operate
in fairly distinct customer segments from that of Specialised Gold Loan NBFCs. (Source: IMaCS Industry
Report 2017)
Outlook of the Gold Loans Market in India
Going forward, we expect the gold loans market to regain some of its lost sheen even as the growth rate is
expected to be much slower than that experienced during the period of rapid expansion (FY0712). We expect
the Gold Loan market to grow between 13-15 per cent over the next three years from FY17-20 and reach a
market size of Rs 2,100-2,250 billion by FY20. . The key enabling factors are a stable and neutral regulatory
regime for Specialised Gold Loan NBFCs, a reduced but sustained focus of commercial banks in the sector,
successful geographical expansion of gold loans market to Non South geographies, reversal in gold prices and
attractive risk adjusted returns on Gold Loans. The key risks to our growth projections remain any abrupt and
large downward revision in gold prices and any further tightening of the regulatory environment for NBFCs.
(Source: IMaCS Industry Report 2017)
We expect that in the medium term (for the next 2 years), Specialised Gold Loan NBFCs are well poised to
grow and reclaim their lost customer base from banks and the unorganised sector. The overall regulatory
environment is currently neutral for Specialised Gold Loan NBFCs and expected to continue to be stable.
Further, competition from banks can be expected to be subdued as public sector banks grapple with a weak
credit demand and stress in their asset quality. Going forward, we expect the market share of gold loan NBFCs
to increase steadily for the next two years. (Source: IMaCS Industry Report 2017)
Profitability of the Specialised Gold Loan NBFCs had been trimmed down due to muted growth, lower yields
due to low LTV products and higher competition coupled with an increase in operating expense ratio due to
lower productivity of their branches and employees. The NBFCs have also registered a continuous increase in
their Gross and Net NPA ratios, even as the eventual losses are expected to be low due to recovery from gold
auctions. However, with focus on operational efficiencies and consolidating their existing operations, Return
on Assets of MFIs have improved at 2.8 to 3.3 per cent, still lower compared to the pre regulation Return on
Assets of 4 per cent. Going forward, we expect the profitability of Specialised Gold Loan NBFCs to be stable or
improve marginally at 3.0-3.3 per cent as they again target growth in volumes and improvement in their
productivity and operating expense ratios. (Source: IMaCS Industry Report 2017)
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OUR BUSINESS
Overview
We are the largest gold loan NBFC in India in terms of loan portfolio. According to the IMaCS Research &
Analytics Industry Report, Gold Loans Market in India, 2017 (“IMaCS Industry Report (2017)”), we were
ranked the largest gold loan company in India in terms of loan portfolio as of March 31, 2016. We provide
personal loans and business loans secured by gold jewelry, or Gold Loans, primarily to individuals who possess
gold jewelry but are not able to access formal credit within a reasonable time, or to whom credit may not be
available at all, to meet unanticipated or other short-term liquidity requirements. According to the IMaCS
Industry Report 2017, as of March 31, 2016 our branch network was the largest among gold loan NBFCs in
India. Our Gold Loan portfolio as of December 31, 2017 comprised approximately 7.58 million loan accounts in
India that we serviced through 4,303 branches across 23 states, the national capital territory of Delhi and five
union territories in India. As of December 31, 2017 we employed 22,933 persons in our operations.
We are a “Systemically Important Non-Deposit Taking NBFC” (NBFC-ND-SI) headquartered in the south
Indian state of Kerala. Our operating history has evolved over a period of 78 years since M George Muthoot (the
father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business
established by his father, Ninan Mathai Muthoot, in 1887. Since our formation, we have broadened the scale and
geographic scope of our gold loan operations so that, as of March 31, 2012, we were India’s largest provider of
Gold Loans. For the years ended March 31, 2013, 2014 2015, 2016 and 2017, revenues from our Gold Loan
business constituted 98.77%, 98.07% 98.19%, 98.49% and 97.95% respectively, of our total income. In addition
to our Gold Loans business, we provide money transfer services through our branches as sub-agents of various
registered money transfer agencies and also provide collection agency services. We also operate three windmills
in the state of Tamil Nadu. In February 2014, we entered the business of providing cash withdrawal services
through white label ATMs to customers using cards issued to them by commercial banks and as of
December 31 ,2017, we operate 211 ATMs spread across 18 states. We also provide micro-finance, housing
finance and insurance broking services through our subsidiaries. We believe that these services will enable us to
improve our visibility as well as record increased customer presence in our branches.
Historically, we raised capital by issuing secured non-convertible debentures called “Muthoot Gold Bonds” on a
private placement basis. Proceeds from our issuance of Muthoot Gold Bonds formed a significant source of
funds for our Gold Loan business. The RBI through its circular RBI/2012-13/560 DNBD(PD) CC No.
330/03.10.001/2012-13 dated June 27, 2013 and RBI/2013-14/115 DNBS(PD) CC No.349/03.10.001/2013-14
dated July 02, 2013 issued various guidelines with respect to raising money through private placements by
NBFCs in the form of non-convertible debentures. These guidelines include restrictions on the number of
investors in an issue to 49 investors, minimum subscription amounts ` 2.5 million per investor and prohibition
on providing loan against own debentures. This has resulted in limiting our ability to raise capital by making
private placements of debentures in India. Since the change in regulations in July 2013, we have raised
` 76,009.20 million in debentures issued under the public issue route. We are focusing our efforts on ensuring
that upon maturity existing private placement debenture holders subscribe to debentures we issue through the
public issue route. As of December 31, 2017, 1.92 million high net-worth and retail individuals had invested in
our secured and unsecured debentures (subordinated debt).
We also rely on bank loans and subordinated debt instruments as our sources of funds. As of March 31, 2017,
we had ` 25,190.08 million in outstanding Muthoot Gold Bonds and ` 185,769.55 million in other borrowings.
We also raise capital by issuing commercial paper and listed and credit rated non-convertible debentures under
private placement mode or through public issues to various institutional corporate, high net worth and retail
investors.
Our customers are typically small businessmen, vendors, traders, farmers and salaried individuals, who for
reasons of convenience, accessibility or necessity, avail of our credit facilities by pledging their gold jewelry
with us rather than by taking loans from banks and other financial institutions. We provide retail loan products,
primarily comprising Gold Loans. Our Gold Loans have a maximum 12 month term. Our average disbursed
Gold Loan amount outstanding was ` 37,186 per loan account as of March 31, 2017. For the year ended
March 31, 2017 our loan portfolio earned, on an average, interest of 1.79% per month, or 21.43% per annum.
The RBI amended the Non Banking Financial (Non Deposit Accepting or Holding) Companies Prudential
Norms (Reserve Bank) Directions, 2007 (“RBI Prudential Norms Directions 2007”) in March 2012 making it
compulsory for NBFCs to maintain a loan to value ratio not exceeding 60.00% for loans granted against the
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collateral of gold jewelry and to disclose in their balance sheet the percentage of such loans to their total assets.
The amendments also required that such NBFCs wherein loan against gold jewelry comprise 50.00% or more of
their financial assets maintain a minimum Tier I capital of 12.00% by April 01, 2014 and stipulate that they shall
not grant any advance against bullion/primary gold and gold coins. The RBI has also reviewed its guidelines on
the Fair Practice Code for all NBFCs, which among other things, cover general principles relating to adequate
disclosures on the terms and conditions of loans the manner of disbursement of loans, including any change in
their underlying terms and conditions, procedure for determining interest rate for such loans and adopting non-
coercive recovery methods. These amendments further required NBFCs engaged in extending loans against
jewelry to put in place adequate internal policies to ensure, among other things, proper assessment procedures
for the jewelry received as collateral, internal control mechanisms for ascertaining the ownership of gold
jewelry, procedures in relation to storage and safeguard and insurance of gold jewelry and adequate measures for
prevention of fraudulent transactions.
Because of regulatory changes by the RBI in March 2012 by capping the loan to value ratio at 60.00% of the
value of jewelry, our gross loan portfolio declined by 14.39% from ` 263,868.18 million as of March 31, 2013
to ` 225,885.51 million as of December 31, 2013. However RBI Vide Notification no RBI/2013-14/435
DNBS.CC.PD.No.365/03.10.01/2013-14, dated January 8, 2014 increased the cap on loan to value ratio to 75%
from 60%. At the same time, the RBI implemented a similar cap on commercial banks through Circular no.
RBI/2013-14/453 DBOD.BP.BC.No.86 /21.01.023 /2013-14, dated January 20, 2014. We believe these
regulatory changes can positively impact our business in the future.
As of March 31, 2013, 2014, 2015, 2016 and 2017, our portfolio of outstanding gross Gold Loans under
management was ` 260,003.72 million, ` 216,179.10 million ` 233,499 million, ` 243,355.41 million and
` 272,199.60 million respectively, and approximately 133.75 tons, 117.55 tons, 131.13 tons, 141.91 tons and
148.81 tons respectively, of gold jewelry was held by us as security for our Gold Loans. Gross non-performing
assets (“NPAs”) were at 1.99%, 1.90% 2.19% , 2.88% and 2.06% of our gross loan portfolio under management
as of March 31, 2013 2014, 2015, 2016 and 2017 respectively.
For the year ended March 31, 2013, our total income was ` 53,871.36 million, demonstrating an annual growth
rate of 18.42%. For the year ended March 31, 2014, consequent to a reduction in gold loan portfolio, our total
income was ` 49,474.37 million showing a decline of 8.16%. For the year ended March 31 ,2015, our total
income further declined by 12.59% at ` 43246.36 million , in spite of increase in gold loan portfolio on account
of reduction in lending rates. For the year ended March 31 ,2016, our total income has increased by 12.73% at
` 48,750.15 million due to intensified interest collection without offering any settlements. For the year ended
March 31 ,2017, our total income has increased by 17.88% at ` 57,467.01 million. For the years ended
March 31, 2013 our profit after tax was ` 10,042.39 million demonstrating an annual growth rate of 12.58%.
For the year ended March 31, 2014 and March 31, 2015, consequent to a reduction in gold loan portfolio, our
profit after tax was ` 7,800.69 million and ` 6,705.24 million showing a decline of 22.32% and 14.04%
respectively. For the year ended March 31, 2016 and 2017, our profit after tax was at ` 8,095.53 million and
` 11,798.32 million showing an increase of 20.75% and 45.74%. As of March 31, 2013, 2014, 2015, 2016 and
2017 our net worth was ` 37,355.65 million, ` 42,645.76 million, ` 50,835.04 million, ` 56,192.49 million
and ` 65,165.42 million respectively.
Competitive Strengths
We believe that the following competitive strengths position us well for continued growth:
Market leading position in the Gold Loan business in India with pan-India reach and branch network
Gold loans are the core products in our asset portfolio. We believe that our experience, through our Promoters,
has enabled us to have a leading position in the Gold Loan business in India. Highlights of our market leading
position include the following:
 We are the largest gold financing company in India in terms of loan portfolio as of March 31, 2016,
according to the IMaCS Industry Report 2017. Our loan portfolio as of March 31, 2017 comprised
approximately 7.32 million loan accounts, in India with Gold Loans outstanding of ` 272,199.60
million.
 We have the largest branch network among gold loan NBFCs as of March 31, 2016, according to the
IMaCS Industry Report 2017. Our branch network has expanded significantly in recent years from 373
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branches as of March 31, 2005 to 4,303 branches as of December 31, 2017, comprising 722 branches in
northern India, 2,664 branches in southern India, 655 branches in western India and 262 branches in
eastern India covering 23 states, the national capital territory of Delhi and five union territories in India.
 We believe that due to our early entry we have built a recognizable brand in the rural and semi-urban
markets of India, particularly in the south Indian states of Tamil Nadu, Kerala, Andhra Pradesh,
Telangana and Karnataka. As of March 31, 2017, the south Indian states of Tamil Nadu, Kerala,
Andhra Pradesh, Karnataka, Telangana and the Union Territory of Pondicherry constituted 51.60% of
our total Gold Loan portfolio.
 We have a strong presence in under-served rural and semi-urban markets. A large portion of the rural
population has limited access to credit either because of their inability to meet the eligibility
requirements of banks and financial institutions or because credit is not available in a timely manner, or
at all. We have positioned ourselves to provide loans targeted at this market.
 We offer products with varying loan amounts, advance rates (per gram of gold) and interest rates. The
maximum and average maturity of our loan product is 12 months and approximately 3 to 6 months,
respectively. Our average disbursed Gold Loan amount outstanding was ` 37,186 per loan account as
of March 31, 2017 while interest rates on our Gold Loans usually range between 12.00% and 24.00%
per annum.
Strong brand name, track record, management expertise and Promoter support
Our operating history has evolved over a period of 78 years since M George Muthoot (the father of our
Promoters) founded a gold loan business in 1939. We believe that the experience, skills and goodwill acquired
by our Promoters over these years cannot be easily replicated by competitors. We have a highly experienced and
motivated management team that capitalizes on this heritage at both the corporate and operational levels. Our
senior management team has extensive experience in the Gold Loan industry and has demonstrated the ability to
grow our business through their operational leadership, strategic vision and ability to raise capital. Under the
current management team, our loan assets portfolio has grown from ` 33,690.08 million as of March 31, 2009
to ` 272,785.35 million as of March 31, 2017. Our business is also well supported by our Promoters, who are
members of the Muthoot family. We believe that our long operating history, track record, management expertise
and Promoter support have established a strong brand name for us in the markets we serve. A strong brand name
has contributed to our ability to earn the trust of individuals who entrust us with their gold jewelry, and will be
key in allowing us to expand.
High-quality customer service and robust operating systems
We adhere to a strict set of market survey and location guidelines when selecting branch sites to ensure that our
branches are set up close to our customers. We believe that our customers appreciate this convenience, as well as
extended operating hours that we typically offer, which are often more compatible with our customers’ work
schedules. We provide our customers a clean and secure environment to transact their business with us. In
addition to the physical environment, it is equally important to have professional and attentive staff at both the
branch level and at our centralized customer support centers. Each of our branches across India is staffed with
persons who possess local knowledge and understanding of customers' needs and who are trained to appraise
collateral and disburse loans within a few minutes. Although disbursement time may vary depending on the loan
ticket size and the number of items pledged, we usually are able to disburse an average loan ticket size of
` 20,000 within five minutes to repeat customers from the time the gold is tendered to the appraiser, except in
case of first time customers where it may take up to half an hour for carrying out one-time-compliance with the
KYC norms. Furthermore, since our loans are all over-collateralized by gold jewelry, there are minimal
documentary and credit assessment requirements, thereby shortening our turnaround time. We believe our high
quality customer service and short response time are significant competitive strengths that differentiate our
services and products from those provided by commercial banks.
Strong capital raising ability to fund a high profitability business model
We have a track record of successfully raising capital from various sources at competitive costs. We regularly
issue secured redeemable non-convertible debentures to retail investors, earlier on a private placement basis and
now through public issue route as a means to access capital for our Gold Loan business. We have also issued
Equity Shares in three tranches to institutional investors raising ` 2556.90 million and completed an initial
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public offering of our Equity Shares in the month of May 2011 raising ` 9,012.50 million and an Institutional
Placement Programme in the month of April 2014 raising ` 4,182.93 million and made seventeen public issues
of secured non-convertible debentures raising ` 89,133.17 million in total. We also issue subordinated debt
which is considered as Tier II capital of our Company, earlier under private placement mode and now through
public issue route to mainly retail investors. Since our inception, we have relied on the proceeds of secured non-
convertible debentures called “Muthoot Gold Bonds” placed through our branches. These debentures were
issued on a private placement basis and were subscribed to, mainly by retail investors. Consequent to change in
private placement regulations, debentures are now being issued under public issue route. We believe that we are
able to raise capital from retail investors because of our leadership, goodwill, trust, reputation, track record,
performance, stability in our business and strong quality asset portfolio. As of March 31, 2013, 2014 2015 , 2016
and 2017 aggregate amount outstanding for our Muthoot Gold Bonds portfolio was ` 94,596.21 million,
` 81,579.61 million, ` 59,839.07 million, ` 40,908.85 million and ` 25,190.08 million, respectively. We
have diversified our resource pool by supplementing our proceeds from the issuance of Muthoot Gold Bonds
with borrowings from banks and other financial institutions. As of March 31, 2013, 2014, 2015, 2016 and 2017
our outstanding borrowings from banks and financial institutions were ` 101363.70 million, ` 58,033.51
million ` 72,418.68 million, ` 76,876.56 million and ` 91,269.48 million, respectively. We have developed
stable long-term relationships with our lenders, and established a track record of timely servicing our debts. For
details in relation to our credit rating of our debt instruments, see “Our Strategies - Access to low-cost and
diversified sources of funds” on page 78 of this Draft Shelf Prospectus.
In-house training capabilities to meet our branch expansion requirements
Our ability to timely appraise the quality of the gold jewelry collateral is critical to the business. We do not
engage third parties to assess the collateral for our Gold Loans, but instead employ in-house staff for this
purpose. Assessing gold jewelry quickly is a specialized skill that requires assessing jewelry for gold content and
quality manually without damaging the jewelry. We have opened two Management Academies, one each in
Delhi and in Kochi. We also have regional training centers at each of our 69 regional offices. We use our
regional training centers to train new employees in appraisal skills, customer relations and communication skills.
The academy serves as a management development center focusing on developing our future managers and
leaders. We believe that our in-house training has built up a talent pool that enables us to staff new branches
with qualified and skilled personnel as we seek to grow our branch network. Our in-house training capabilities
also enable us to improve the skill sets of our existing personnel.
Our Strategies
Our business strategy is designed to capitalize on our competitive strengths and enhance our leading market
position. Key elements of our strategy include:
Expand branch network and visibility to maintain our market leadership position
We intend to continue to grow our loan portfolio by expanding our network through the addition of new
branches. In order to optimize our expansion, we carefully assess potential markets by analyzing demographic,
competitive and regulatory factors, site selection and availability, and growth potential. We have a long-standing
presence in southern India, and are among the first organized Gold Loan providers in northern and western and
eastern India. Our strategy for branch expansion includes further strengthening our market leading position in
south Indian states by providing higher accessibility to customers as well as leveraging our expertise and
presence in southern India to enhance our presence in other regions of India, particularly in northern India,
where we intend to open branches in most states. We have added 404 branches in 2012-13 188 branches in
2013-2014 and 13 branches in 2014-15, 63 branches in 2015-16 and 136 branches in 2016-17, and expect this
network to grow in the future. Over the years we have created a well-developed and extensive branch network,
resulting in us progressively reducing the rate of expansion of our branch network year on year. While we do not
need to grow our branch network as aggressively as we have in the past, our branch network strategy remains
key to our growth. A new RBI regulation, issued on September 16, 2013, required us and other gold loan NBFCs
that had more than 1,000 branches to obtain RBI approval prior to opening new branches. However, this
regulation has not had an effect on slowing our expansion of branches. Furthermore, we intend to increase our
efforts on increasing the number of customers in our existing branches, thereby increasing our loan portfolio
while continuing to expand our branch network.
At the core of our branch expansion strategy, we expect to penetrate new markets and expand our customer base
to include customers who otherwise would rely on the unorganized sector. Moreover, our ethics, values and
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goodwill, which have established our strong brand, will continue to be important factors in our expansion. In
addition to increasing the visibility of our brand by sponsoring events and publicity, we will continue to build
trust among our customers and enhance our brand with quality services and safety and security of our customers'
collateral.
Continue to target new customer segments
The market for our loan products was traditionally confined to lower and middle income groups, who viewed
Gold Loans as an option of the last resort in case of emergency. We have undertaken, and intend to continue
undertaking sustained marketing efforts to diminish the stigma attached to pledging gold jewelry in India. We
plan to work to position Gold Loans as a “lifestyle product” and expand our customer base to include upper-
middle income and upper income groups. We intend to emphasize our Gold Loan products' key advantages of
expediency and minimal documentation, and alter the image of Gold Loans from an option of the last resort to
an option of convenience.
Access to low-cost and diversified sources of funds
We source our funds for our Gold Loan business primarily from the proceeds of private placements and public
issuances of debentures in India and from secured and unsecured credit facilities from banks and other financial
institutions. We have been assigned a long-term rating of “[ICRA] AA/Stable” and a short-term rating of “A1+”
by ICRA for our ` 141,150.00 million line of credit. We intend to increase our efforts to access low-cost funds
through rated debt instruments. In this regard, we have been assigned an “A1+” rating by CRISIL and “A1+”
rating by ICRA for short term debt instruments of ` 40,000.00 million. We also intend to raise long-term
institutional funding through long-term debt instruments. We have been assigned CRISIL AA/Stable” rating by
CRISIL for our ` 5,000.00 million non-convertible debentures and our ` 1,000.00 million subordinated debt.
ICRA has assigned “[ICRA] AA/Stable” rating for our ` 5,000.00 million non-convertible debentures and our
` 1,000.00 million subordinated debt. We intend to keep the levels of our capital adequacy ratios in excess of
regulatory requirements and strengthen our balance sheet with a view to have access to other sources of low-cost
funds.
Strengthen our operating processes and risk management systems
Risk management forms an integral part of our business as we are exposed to various risks relating to the Gold
Loan business. The objective of our risk management systems is to measure and monitor the various risks we are
subject to and to implement policies and procedures to address such risks. We intend to continue to improve our
operating processes and risk management systems that will further enhance our ability to manage the risks
inherent to our business. For example, as of December 31, 2017, we had installed surveillance cameras in 4,297
branches across India. Furthermore, we intend to continue to train existing and new employees in appraisal
skills, customer relations, communication skills and risk management procedures to enable replication of talent
and ensures smooth transition on employee attrition, update our employees with latest developments to mitigate
risks against frauds, cheating and spurious gold and strengthen their gold assessment skills.
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Gold Loan Business
1 2 3 4
Customer is explained Provides ID proof / Appraiser conducts Details entered into the
the various schemes and branch web cam used for specific weight and computer and Pledge
selects one ID proof quality tests of the gold form is printed
8 7 6 5
Ornaments and Appraisal Manager does the
Pledge form handed over verification and sanctions Ornaments and Pledge
certificate placed in form handed over to the
to cashier for payment the loan at prescribed
plastic cover manager
advance rate
9 10 11
Manager affixes tamper Ornaments retrieved
Customer repays the
proof sticker and from strong room and
loan and discharges the
ornaments put in strong handed over to the
Pledge form
room customer
Our core business is disbursement of Gold Loans, which are typically small ticket loans collateralized by gold
jewelry. As of March 31, 2017, we had approximately 7.32 million loan accounts, respectively, representing an
aggregate principal balance of ` 272,199.60 million. For the year ended March 31, 2017, our1 loan portfolio
earned, on an average, interest of 1.79% per month, or 21.43% per annum. For the years ended March 31, 2013,
2014, 2015, 2016 and 2017 income from interest earned on our Gold Loans constituted 98.77%, 98.07% 98.19%
98.49% and 97.95%, respectively, of our total income.
Loan disbursement process
The principal form of collateral accepted by us is gold jewelry. The amount that we finance against the security
of gold jewelry is typically based on the value of the jewelry. We value the gold jewelry brought by our Gold
Loan customers based on our centralized policies and guidelines, including policy on fixing interest rates. In
terms of the extant RBI guidelines, we currently lend up to 75.00% of the gold price of the gold content in the
jewelry. We appraise the jewelry collateral solely based on the weight of its gold content, excluding weight and
value of the stone studded in the jewelry. Our Gold Loans are therefore well collateralized because the actual
value of the collateral in all cases will be higher than the underlying loan value at the time of loan disbursement.
The amount we lend against an item and the total value of the collateral we hold fluctuates according to the gold
prices. However, an increase in gold price will not result automatically in an increase in our Gold Loan portfolio
unless the per gram rate are revised by our corporate office. Similarly, since adequate margins are kept at the
time of disbursement of loan, a decrease in the price of gold has little impact on our interest income from our
existing loan portfolio. However, a sustained decrease in the market price of gold can cause a decrease in the
size of our loan portfolio and our interest income.
We rely on the disposition of collateral to recover the principal amount of an overdue Gold Loan and the interest
due thereon. We also have recourse against the customers for the gold loans taken by them. Since the
disbursement of loans is primarily based on the value of collateral, the customer’s creditworthiness is not a
factor in the loan decision. However, we comply with KYC norms adopted by the Board and require proof of
identification and address proof which are carefully documented and recorded. We also photograph customers
with web-cameras installed in our branches.
All our Gold Loans have a maximum 12 month term. However, customers may redeem the loan at any time, and
our Gold Loans are generally redeemed between 90 and 180 days. Interest is required to be paid only when the
principal is repaid. However, the borrowed has the flexibility to pay the interest or principal partly at any time.
In the event that a loan is not repaid on time and after providing due notice to the customer, the unredeemed
collateral is disposed of in satisfaction of the principal and all interest charges. In general, collateral is disposed
of only when the recoverable amount is equal to or more than the realizable value of the collateral.
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Loan appraisal process
Our Gold Loan approval process is generally linked with the appraisal of gold jewelry that serves as collateral,
which takes only a few minutes. Each of our branches is staffed with persons who have been trained and have
experience in appraising the gold content of jewelry. The appraisal process begins with weighing the jewelry
using calibrated weighing machines. Jewelry is then subject to prescribed primary tests for the quality of gold,
including stone tests and acid tests, followed by additional tests, if required, such as salt tests, sound tests,
weight tests, pointed scratching tests, flexibility tests, color tests, smell tests, usability tests, magnifying glass
tests and finishing tests. Once the jewelry passes these tests, loans are disbursed based on the rates per gram of
gold as approved by the corporate office. Although disbursement time may vary depending on the loan ticket
size and the number of items pledged, we usually are able to disburse an average loan ticket size of ` 20,000.0
in five minutes to repeat customers from the time the gold is tendered to the appraiser, except in case of first
time customer where it may take up to half an hour for carrying out one-time-compliance with the KYC norms.
While our customers are provided the option to accept loan disbursements in cash or by cheque or electronic
mode, almost all of our customers prefer disbursements in cash.
At the time of disbursement, an undertaking is signed by the customer. It states the name and address of our
Company's relevant branch office and the customer, a detailed description of the gold jewelry provided as
collateral, the amount of the loan, the interest rate, the date of the loan, and other terms and conditions.
Where the responsibility for compliance with applicable law relating to loan appraisal and disbursement lies
with us, we are in compliance with the IT Act and other related provisions.
Post-disbursement process
Custody of gold collateral
The pledged gold jewelry is separately packed by the staff of the branch, and then placed in a polythene pouch
with the relevant documents on the loan and the customer and stored in the safe or strong room of the branch.
The safes and strong rooms in which the gold jewelry is kept are built as per industry standards and practices.
The strong rooms are vaults with reinforced concrete cement structures. Currently, almost all of our branches are
using strong rooms.
Inventory control
The pledged gold jewelry packed in pouches is identified by loan details marked on the cover. Tamper proof
stickers are affixed on the jewelry packets to ensure inventory control. Additional stickers are used to seal
packets by persons examining packages subsequently, including our internal auditors
Branch security and safety measures
Ensuring the safety and security of the branch premises is vital to our business since our cash reserves and gold
inventory are stored in each branch. Our branch security measures mainly comprise the following:
Burglar alarms
Burglar alarms are installed in all branches.
Security guards
Security guards are deployed in branches where management perceive there to be heightened security risks.
Release of the pledge
We monitor our gold loan accounts and recovery of dues on an ongoing basis. Once a loan is fully repaid, the
pledged gold jewelry is returned to the customer. When a customer does not repay a loan on or before its
maturity, we initiate the recovery process and dispose of the collateral to satisfy the amount owed to us,
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including both the principal and the accrued interests. Before starting the recovery process, we inform the
customer through registered letters or legal notices.
When a loan is repaid, we give the customer an option to pledge the security again and obtain another loan. The
procedure of re-pledging entails the same procedure as that of a pledge and is accompanied by the same mode of
documentation that a pledge entails. If the loan is not repaid when the loan falls due, we are able to sell the gold
collateral through public auction in satisfaction of the amount due to us.
We also reserve the right to sell the collateral even before a loan becomes past due in the event the market value
of the applicable of the portion of the underlying collateral is less than amounts outstanding on the loan, after
serving notice to the customer.
Other Business Initiatives
Money transfer services
We provide fee based services including money transfer and foreign exchange services. For the years ended
March 31, 2013, 2014, 2015, 2016 and 2017 our money transfer services business generated, ` 175.47 million,
` 192.19 million, ` 225.69 million and ` 232.32 million and ` 214.01 million, respectively, or 0.33%, 0.39%
0.52% and 0.48% and 0.37%, respectively, of our total income. We act as sub-agents to Indian representatives
and enter into representation agreements for inward money transfer remittance. Under these agreements, we are
entitled to receive a commission for the services provided depending on the number of transactions or the
amount of money transferred and the location from which the money is transferred to us. In terms of applicable
law governing the provision of money transfer services in India, as a sub-agent, our Company is not required to
obtain any regulatory approvals for engaging in such business.
Collection services
We provide collection agency services to clients. We act as collection agents by receiving money for and on
behalf of our clients who issue invoices to their customers for goods sold or service rendered. We receive
commissions for each invoice for which remittance by a customer is made and money is collected by us. We
commenced our collection services business in the fiscal year 2011, and accordingly have not generated any
revenues in prior fiscal years. For the year ended March 31, 2013, 2014 2015, 2016 and 2017, we generated
` 4.54 million, ` 4.46 million ` 4.17 million, ` 4.82 million and ` 2.50 million, respectively, from our
collection services business.
Wind mills business
We operate three windmills of 1.25 MW each in the south Indian state of Tamil Nadu for the generation of
electric power which is purchased by the local State Electricity Board. For the years ended March 31, 2013,
2014, 2015, 2016 and 2017, income from our wind mills was ` 24.65 million, ` 13.70 million ` 13.82 million
` 11.44 million and ` 19.95 million respectively, or 0.05%, 0.03%, 0.03%, 0.02% and 0.03% respectively, of
total income.
Branch Network and Customer Service
As of December 31, 2017 we had branches located in 23 states, the national capital territory of Delhi and five
union territories in India. The distribution of branches across India by region as of March 31, 2013, 2014, 2015,
2016 and 2017 and as of December 31, 2017 is as set out in the following table:
As of March 2013 2014 2015 2016 2017 As of December 31, 2017
Northern India 675 683 687 703 726 722

Southern India 2,640 2,779 2,745 2,724 2,676 2,664
Western India 570 602 606 623 652 655
Eastern India 197 206 207 225 253 262
Total Branches 4,082 4,270 4,245 4,275 4,307 4,303
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A diagrammatic representation of the branch network across India, as of December 31, 2017 is as set out below:
Jammu &
Kashmir
13
Himachal
Pradesh 5
Punjab Chandigarh
175 Uttaranchal 8
Haryana 21
126 Delhi
219
Rajasthan Uttar Pradesh

Assam
132 155
Bihar 20
19 (a)
Tripura
Gujarat Jharkhand 2
177 West Bengal
Daman & Diu - Madhya Pradesh 17
01 83 149
Orissa
Dadra & Nagar Haveli- 01
Maharashtra 55
229
Telangana
243
Goa
17
Karnataka Andhra Pradesh
456 370
Pondicherry
Tamil Nadu 8
937
In addition to our branches, as of December 31, 2017, we have more than 1,482 customer relation executives in
charge of carrying out customer loyalty programs and a customer relations department which provides support
over the phone servicing the needs of our customers.
Marketing, Sales and Customer Care
Our marketing and sales efforts centers around promoting our brand and positioning Gold Loans as a “lifestyle
product”. In promoting our brand, our campaigns focus on the concept of “gold power” to differentiate our
products from other financial institutions and stress the convenience, accessibility and expediency of Gold Loans.
We also work to position Gold Loans as a “lifestyle product” because the market for Gold Loans was
traditionally confined to lower and middle income groups, who viewed such loans as an option of the last resort
in case of emergency. We have implemented aggressive marketing strategies to diminish the stigma attached to
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pledging gold jewelry. Furthermore, we target our efforts at small businessmen, vendors, traders and farmers,
who may require credit on a regular basis.
Our sales and marketing efforts are led by a team of 80 managers as of December 31, 2017 who guide the
marketing and sales efforts of their respective regions and who are supported by 187 marketing executives as of
December 31, 2017 and 1,482 customer relation executives as of December 31, 2017. Marketing executives
make personal visits and direct their sales efforts at high net-worth clients. Customer relation executives are
responsible for product promotion and telemarketing. In addition, we carry out advertising campaigns with TV
ads, print ads and road shows to increase the visibility of our brand and our Gold Loans products.
Future Expansion
We have expanded by establishing new locations, and our business strategy is to leverage our extensive
experience in disbursing gold loans in southern India to continue expanding our lending business within our
existing geographic markets and into other markets that meet our risk/reward considerations. We have added
404 branches in the year ended March 31, 2013, 188 branches in the year ended March 31, 2014, 13 branches in
the year ended March 31, 2015 and 63 branches in the year ended March 31, 2016 and 136 branches in the year
ended March 31, 2017. Our Board believes that such expansion will continue to provide economies of scale in
supervision, administration and marketing by decreasing the overall average cost of such functions per branch.
By concentrating on multiple lending units in regional and local markets, we seek to expand market penetration,
enhance brand recognition and reinforce marketing programs.
A new branch can be ready for business within four to six weeks. The construction of a new location involves
construction of secured counters and installation of strong rooms or safe and security systems. Our branches are
generally established on leased premises, thus requiring a lower set-up cost. The set-up cost required for
furnishing the premises and purchasing equipment generally ranges between ` 0.50 million to ` 1.50 million
per branch.
Regional Credit Exposure
The table below sets forth an analysis of our Gold Loan portfolio by region as of March 31, 2013, 2014, 2015,
2016 and 2017:
(`in millions)
As of March 31,
2013 2014 2015 2016 2017
Northern India 48,319.84 46,700.52 50,963 54,334.55 61,762.99

Southern India 169,111.31 127,303.00 132,589.01 130,287.86 140,181.10
Western India 29,680.11 29,674.52 35,602.87 42,670.86 50,014.19
Eastern India 12,892.46 12,501.06 14,344.02 16,062.14 20,241.31
Total Credit Exposure 260,003.72 216,179.10 233,499.01 243,355.41 272,199.59
Average Gold Loan Outstanding Per Branch
The average gold loan outstanding per branch has increased from ` 57.55 million as of March 31, 2011 to
` 66.39 million as of March 31, 2012. However, because of a raft of regulatory changes adversely affecting our
business, average gold loans outstanding per branch declined to ` 63.70 million as of March 31, 2013 ` 50.63
million as of March 31, 2014. The decline was a result of decreased business overall while our branch network
continued to grow. However, as a result of relaxation of LTV norms to 75% from 60% by RBI in Jan 2014, gold
loan portfolio started increasing and average gold loan outstanding per branch has increased to ` 55.00 million
as of March 31, 2015, ` 56.93 million as of March 31, 2016 and ` 63.20 million as of March 31, 2017.
Profitability Ratios
The table below sets forth an analysis of yield, interest expense, operating expense, return on loan assets, return
on equity and earnings per share for the years ended March 31, 2013, 2014, 2015, 2016 and 2017:
Years ended March 31,

2013 2014 2015 2016 2017
Interest 21.66% 20.27% 19.30% 19.72% 21.43%

income to
average loan
Page | 83
2013 2014 2015 2016 2017
assets
Interest 11.38% 10.84% 9.52% 9.25% 8.69%
expense to
average loan
assets
Net Interest 10.27% 9.42% 9.78% 10.47% 12.74%
Margin
Operating 3.72% 4.28% 4.84% 4.43% 4.56%
expenses to
average loan
assets
Profit Before 6.10% 4.93% 4.65% 5.39% 7.28%
Tax to average
loan assets
Profit After 4.05% 3.22% 3.03% 3.32% 4.47%
Tax to average
loan assets
Return on 30.15% 19.50% 14.35% 15.13% 19.44%
Average
Equity
Earnings Per 27.02 20.99 16.97 20.34 29.56
Share(`)
(Basic)
Earnings Per 27.02 20.99 16.80 20.10 29.45
Share(`)
(Diluted)
Non-performing Assets (NPAs)
Based on the existing RBI guidelines for asset classification, details of the classification of our gross NPAs as of
March 31, 2013, 2014, 2015, 2016 and 2017:
(` in millions)
Asset As of March 31,
Type 2013 2014 2015 2016 2017
Sub- 5129.73 4,017.54 4884.57 6,668.31 4,967.76

standar
d1
Doubtfu 120.57 142.97 232.09 356.30 653.54
l2
Loss 3 - - - - -
Gross 5250.30 4,160.51 5116.66 7,024.61 5,621.30
NPA
1. An asset is classified as an NPA when it has remained overdue for a period as below:
(a) If the asset become overdue for 5 months for the financial year ending March 31 ,2016
(b) If the asset become overdue for 4 months for the financial year ending March 31 ,2017
(c) If the asset become overdue for 3 months for the financial year ending March 31 ,2018
2. Sub-standard assets would mean:
(a) an asset that has been classified as NPA for a period not exceeding 16 months (currently 18 months) for
the financial year ending March 31, 2016;
(b) an asset that has been classified as NPA for a period not exceeding 14 months for the financial year
ending March 31, 2017; and
(c) an asset that has been classified as NPA for a period not exceeding 12 months for the financial year
ending March 31, 2018 and thereafter.
3. Doubtful assets would mean:
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(a) an asset that has remained sub-standard for a period exceeding 16 months (currently 18 months) for the
financial year ending March 31, 2016;
(b) an asset that has remained sub-standard for a period exceeding 14 months for the financial year ending
March 31, 2017; and
(c) an asset that has remained sub-standard for a period exceeding 12 months for the financial year ending
March 31, 2018 and thereafter.
4. Loss assets mean (a) assets which have been identified as a loss asset by us or our internal or external
auditor or by the RBI to the extent that they are not written-off by us; and (b) assets which are adversely
affected by a potential threat of non-recoverability due to either erosion in the value of security or non-
availability of security, or due to any fraudulent act or omission on the part of the customer.
Provisioning policy
Our provisioning in respect of our NPA accounts is in accordance with the norms prescribed by the RBI, with
emphasis on the realizable value of the security and the period of overdue payments.
Statutory provisions are required to be made in respect of standard, sub-standard, doubtful and loss assets as per
RBI directives. Set out below is a brief description of applicable RBI guidelines on provisioning and write-offs
for loans, advances and other credit facilities including bills purchased and discounted:
Standard assets: A general provision of 0.35% of the total outstanding assets classified as standard assets is
required to be made. Provision for standard assets in excess of the prudential norms, as estimated by the
management, is set out under Provision for Standard Assets, as general provisions. Accordingly as on
March 31, 2017, 0.65% of our total outstanding assets was classified under provision for standard assets as
general provisions (in excess of prudential norms). The requirement for standard assets for NBFCs-ND-SI and
for all NBFCs-D, has vide the RBI notification dated November 10, 2014 been increased to 0.40%, to be
complied with in a phased manner as follows: (i) 0.30% by March 31, 2016, (ii) 0.35% by March 31, 2017 and
0.40% by March 31, 2018.
Sub-standard assets: A minimum general provision of 10% of the total outstanding assets classified as sub-
standard assets is required to be made.
Doubtful assets: 100% provision to the extent to which the advance is not covered by the realizable value of the
security to which the NBFC has a valid recourse is required to be made. The realizable value is to be estimated
on a realistic basis. In addition to the foregoing, depending upon the period for which the asset has remained
doubtful, provision is required to be made as follows:
 if the asset has been considered doubtful for up to one year, provision to the extent of 20% of the secured
portion is required to be made;
 if the asset has been considered doubtful for one to three years, provision to the extent of 30% of the
secured portion is required to be made; and
 if the asset has been considered doubtful for more than three years, provision to the extent of 50% of the
secured portion is required to be made.
Loss assets: The entire asset is required to be written off. If the assets are permitted to remain in the books for
any reason, 100% of the outstanding assets classified as Loss assets should be provided for.
We have written-off ` 165.44 million for the year ended March 31, 2017. As per the provisioning norms
prescribed by RBI, as of March 31, 2017, we have made a total provision of ` 1,019.27 million, which
constituted 18.13% of our NPAs. Details of provisions and amounts written off for years ended March 31, 2013,
2014, 2015, 2016 and 2017 are set out in the table below:
(`in millions)
2013 2014 2015 2016 2017
Gross NPAs 5250.30 4,160.51 5116.66 7,024.61 5,621.30
Page | 85
2013 2014 2015 2016 2017
Provisions 700.63 725.38 725.38 1,019.27 1,019.27
Net NPAs 4549.67 3435.13 4391.28 6,005.35 4,602.03
Net loan assets 263868.18 218,615.35 234,084.71 243,789.09 272,785.35
Net NPAs/Net loan 1.72% 1.57% 1.88% 2.46% 1.69%
assets (%)
Gross loan assets 263868.18 218,615.35 234,084.71 243,789.09 272,785.35
Gross NPAs/Gross 1.99% 1.90% 2.19% 2.88% 2.06%
loan assets (%)
Amounts Written- 130.27 224.14 191.64 107.19 165.44
off
Amounts written- 0.049% 0.10% 0.082% 0.044% 0.061%
off to Gross loan
assets (%)
NPA Recovery
Our credit department assigns interest collection targets for each branch, reviews performance against targets,
makes visits to the branches, and advises on timely corrective measures and repossession action. We also have
procedures in place to penalize branches for loans overdue beyond three months. We maintain strict control over
recovery procedures followed in our various branches by linking employee compensation to the performance of
the branch (loans disbursed, NPA levels, etc.,) in which the employee is working. Once repossession is advised
by our credit department, we conduct public auctions of the jewelry collateral after serving requisite legal
notices.
Capital Adequacy Ratio
We are subject to the capital adequacy requirements of the RBI. As per the RBI regulations, we are required to
maintain a capital adequacy ratio of minimum 15% of which Tier I capital should be minimum of 12%. We
maintain a capital adequacy ratio above the minimum levels prescribed by the RBI and had a capital adequacy
ratio of 19.62%, 24.69%, 24.78%, 24.48% and 24.88% as of March 31, 2013, 2014, 2015, 2016 and 2017,
respectively. As of March 31, 2017, Tier I capital of the company stood at 21.78%.
Treasury Operations
Our treasury department undertakes liquidity management by seeking to maintain an optimum level of liquidity
and monitors cash and bank balances. The objective is to ensure the sufficient cash reserves at all our branches
while at the same time avoid holding cash in excess of what may be required in the ordinary course. Since
almost all disbursements are made in cash, we maintain an average of ` 0.50 million in cash across our
branches. Each regional office has the primary responsibility for directing branches within the region to move
surplus funds to deficit branches. If there is a surplus of funds in the region as a whole, such surpluses are
deposited in cash credit/overdraft accounts at the corporate level. Deficits at a region level are managed by cash
transfers from our treasury department. We monitor cash and balances on daily basis using our management
information systems, and have arrangements with various banks for the transfer of bank balances between
locations. Cost of movement of cash also is taken into consideration while deciding optimum cash levels in each
location. We use a RTGS facility if the remitting and receiving banks are different, or through internal transfer if
both the branches belong to the same bank.
Risk Management
Risk management forms an integral element of our business strategy. As a lending institution, we are exposed to
various risks that are related to our gold lending business and operating environment. Our objective in our risk
management processes is to appreciate measure and monitor the various risks we are subject to and to follow the
policies and procedures to address these risks.The major types of risk we face are collateral risk, operational risk,
liquidity risk and market risk (which includes interest rate risk).
Collateral risk
Collateral risk arises from the decline in the value of the gold collateral due to fluctuation in gold prices. This
risk is in part mitigated by a minimum 25% margin retained on the value of jewelry for the purpose of
calculation of the loan amount. Further, we appraise the jewelry collateral solely based on the weight of its gold
Page | 86
content, excluding weight and value of the stone studded in the jewelry. In addition, the sentimental value of the
gold jewelry to the customers may induce repayment and redemption of the collateral even if the value of the
collateral falls below the value of the repayment amount. An occasional decrease in gold prices will increase
collateral risk significantly on account of our adequate collateral security margins. However, a sustained
decrease in the market price of gold can additionally cause a decrease in the size of our loan portfolio and our
interest income.
Credit risk
Credit risk is the possibility of loss due to the failure of any counterparty to abide by the terms and conditions of
any financial contract with us. We aim to reduce credit risk through a rigorous loan approval and collateral
appraisal process, as well as a strong NPA monitoring and collection strategy. This risk is diminished because
the gold jewelry used as a collateral for our loans can be readily liquidated, and in light of the fact that we do not
lend more than 75% of the value of the collateral retained, the risk of recovering less than the amounts due to us
is quite remote.
Operational risk
Operational risk is broadly defined as the risk of direct or indirect loss due to the failure of systems, people or
processes, or due to external events.
We have instituted a series of checks and balances, including an operating manual, and both internal and
external audit reviews. Although we disburse loans in very short periods of time, we have clearly defined
appraisal methods as well as KYC compliance procedures in place to mitigate operational risks. Any loss on
account of failure by employees to comply with defined appraisal mechanism is recovered out of their variable
incentive. We also have detailed guidelines on physical movement and security measures in connection with
cash or gold. We have also introduced centralized software which automates inter-branch transactions, enabling
branches to be monitored centrally and thus reducing the risk of un-reconciled entries. In addition, we have
installed surveillance cameras across our various branches, and subscribe to insurance covers for employee theft
or fraud and burglary. Our internal audit department and our centralized monitoring systems assist in the
management of operational risk.
Market risk
Market risk refers to potential losses arising from the movement in market values of interest rates in our business.
The objective of market risk management is to avoid excessive exposure of our earnings and equity to loss and
to reduce our exposure to the volatility inherent in financial instruments. The majority of our borrowings, and all
the loans and advances we make, are at fixed rates of interest. Our interest rate risk is therefore minimal at
present.
Liquidity risk
Liquidity risk is the risk of being unable to raise necessary funds from the market at optimal costs to meet
operational and debt servicing requirements. The purpose of liquidity management is to ensure sufficient cash
flow to meet all financial commitments and to capitalize on opportunities for business expansion. An Asset and
Liabilities Committee (“ALCO”) meeting is held regularly to review the liquidity position based on future cash
flow. In addition, we also track the potential impact of prepayment of loans at a realistic estimate of our near to
medium-term liquidity position. We have developed and implemented comprehensive policies and procedures to
identify, monitor and manage liquidity risks. The nature of our business is such that our source of funds
(proceeds from the issue of debentures and term loans) has longer maturities than the loans and advances we
make, resulting in low liquidity risk in our operations.
Business cycle risk
Business cycle risk is the risk associated with the seasonal or cyclical nature of a business. As our customers
include both individuals and business and our loan products are used by customers in various industries, trade
cycles have limited impact on our business. Furthermore, the geographic spread of our branches will allow us to
mitigate the cyclical pressures in the economic development of different regions.
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Funding Sources
We have depended on term loans from banks and issuance of redeemable non-convertible debentures as the
primary sources of our funding. The following table sets forth the principal components of our secured loans as
of the periods indicated:
(` in millions)
Secured As of March 31,
loans 2013 2014 2015 2016 2017
Redeemable 94,596.21 81,579.61 59,839.07 40,908.85 25,190.08

non-
convertible
debentures
Redeemable 17,872.94 24,734.59 30,655.55 36,403.32 37,098.15
non-
convertible
debentures
(Listed)
Term loans 10916.03 1934.62 7.96 5.97 2,002.93
from banks
& financial
institutions
Cash credit / 90447.67 56,098.89 72,410.71 76,870.59 89,266.55
working
capital
demand
loans from
banks &
financial
institutions
TOTAL 213,832.85 164,347.71 162,913.30 154,188.73 153,557.71
We have developed stable long-term relationships with our lenders, and established a track record of timely
servicing our debts.
Since our inception, we have relied on the proceeds of secured non-convertible debentures called “Muthoot Gold
Bonds” placed through our branches. These debentures are issued on a private placement basis and are
subscribed to, mainly by retail investors. We believe that raising funds from retail investors is possible because
of our leadership, goodwill, trust, reputation, track record, performance, stability in our business and strong
quality asset portfolio. We have been able to mobilize these bonds in the newer geographies that we have
entered. RBI vide its circular RBI/2012-13/560 DNBD(PD) CC No. 330/03.10.001/2012-13 dated June 27, 2013
and RBI/2013-14/115 DNBS(PD) CC No.349/03.10.001/2013-14 dated July 02, 2013 issued certain guidelines
with respect to raising money through private placement by NBFCs in the form of Non-Convertible Debentures.
These guidelines include restrictions on number of investors in an issue to 49 investors, implementing a
minimum subscription amount for a single investor of ` 2.5 million and in multiples of ` 1.00 million
thereafter and prohibition on providing loan against own debentures etc. This has resulted in limiting the
Company’s ability to raise fresh debentures under private placement basis. Since the change in regulations in
July 2013, we have raised ` 76,009.20 million in debentures issued under the public issue route. We are
focusing our efforts on ensuring that upon maturity, existing private placement debenture holders subscribe to
debentures we issue through the public issue route.
We have been assigned an “A1+” rating by ICRA for commercial paper of ` 40,000.00 million and an “A1+”
rating by CRISIL for commercial paper of ` 40,000.00 million. Further, CRISIL has assigned “CRISIL
AA/Stable” to our ` 5,000.00 million non-convertible debentures and to our ` 1,000.00 million subordinated
debt. ICRA has assigned “[ICRA] AA/ Stable” rating for our ` 5,000.00 million non-convertible debentures
and our ` 1,000.00 million subordinated debt. Further, ICRA has assigned a long term rating of “[ICRA] AA/
Stable” and a short term rating of “A1+” to our ` 141,150.00 million line of credit.
We also raise capital by issuing Equity Shares from time to time, particularly to various institutional investors.
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Asset and Liability Management
ALCO monitors and manages our day to day asset and liability mix ALM committee of Board of Directors, will
have overall responsibility of monitoring, supervision and control of the Asset and Liability Management
mechanism. Most of our liabilities are short-to-medium-term and assets are short-term. We may in the future
decide to pursue loan products with longer term maturities. We have a structural liquidity management system
which measures our liquidity positions on an ongoing basis and also scrutinizes the reasons behind liquidity
requirements evolving under different assumptions. For measuring net funding requirements, we prepare regular
maturity gap analyses and use a maturity ladder to calculate the cumulative surplus or deficit of funds at selected
maturity dates. Based on this analysis we re-price its assets and liabilities.
Technology
We use information technology as a strategic tool for our business operations to improve our overall
productivity and efficiency. We believe that through our information systems which are currently in place, we
are able to manage our nationwide operations efficiently, market effectively to our target customers, and
effectively monitor and control risks. We believe that this system has improved customer service by reducing
transaction time and has allowed us to manage loan-collection efforts better and to comply with regulatory
record-keeping and reporting requirements.
All our branches are computerised. We have used the power of information technology in our operations to
improve our customer services, efficiency and management information systems. In March 2013, we developed
a powerful, user-friendly core banking solution (“CBS”) and implemented the solution in all our branches across
India. This solution has been designed and developed to meet our business requirements. The CBS takes care of
centralized transaction processing, back-office and management information system across our branches and
offices. The main objective of the CBS is to provide ubiquitous services to customers and enhance convenience,
along with providing better control and cost-effectiveness to the Company. CBS has been rolled out with
transaction processing and back-office functionalities so as to allow branches to provide fast and convenient
services to customers.
Security threats and measures
The security threats we face can be broadly classified as external and internal threats. The principal security
risks to our operations are robbery (external threat) and employee theft or fraud (internal threat). We have
extensive security and surveillance systems and dedicated security personnel to counter external security threats.
To mitigate internal threats, we undertake careful pre-employment screening, including obtaining references
before appointment. We also have installed management information systems to minimize the scope for
employee theft or fraud. We also have installed offsite surveillance cameras across our branches, which is
connected to a centrally located database and allow the regional office / corporate office to remotely monitor the
branches.
To protect against robbery, all branch employees work behind wooden, glass and steel counters, and the back
office, strong-room and computer areas are locked and closed to customers. Each branch’s security measures
include strong rooms with concrete walls, strong room door made of iron bars, burglary alarm systems,
controlled entry to teller areas, and the tracking of employee movement in and out of secured areas. While we
provide around the clock armed security guards for risk prone branches, the majority of our branches do not
require security guards as the gold jewelry are stored securely in strong rooms.
Since we handle high volumes of cash and gold jewelry at our locations, daily monitoring, spot audits and
immediate responses to irregularities are critical to our operations. We have an internal auditing program that
includes unannounced branch audits and cash counts at randomly selected branches. As of December 31, 2017,
we had an internal audit team of 920 persons who conduct audits on branches either weekly or fortnightly or
monthly depending on the size of the branch.
Competition
Although the business of extending loans secured by gold is a time-honored industry (unorganized pawn-
broking shops being the main participants), the Gold Loan industry in India remains very fragmented. Our Board
believes that we can achieve economies of scale and increased operating efficiencies by increasing the number
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of branches under operation and utilizing modern point-of-sale systems and proven operating methods. We
believe that the primary elements of competition are the quality of customer service and relationship
management, branch location and the ability to loan competitive amounts at competitive rates. In addition, we
believe the ability to compete effectively will be based increasingly on strong general management, regional
market focus, automated management information systems and access to capital.
Historically, our competition was primarily from a few Kerala based banks, including Federal Bank, South
Indian Bank and Catholic Syrian Bank, and a few other Kerala based NBFCs. In recent years, our main
competition has expanded to include various commercial banks and other NBFCs, including deposit accepting
NBFCs.
Insurance Coverage
We maintain insurance coverage on all our assets located at our head office and on all our movable assets in
branch premises owned by us against fire, earthquake and related perils. We also maintain insurance against
burglaries at our head office and at our branches, and against loss by riots, strikes or terrorist activities, cash in
transit and employee theft. We maintain special contingency insurance covering gold in transit, gold in branches
and cash in transit against burglary. Our insurance policies are generally annual policies that we renew regularly.
Employees
As of December 31, 2017 we employed 22,933 persons. Our employee strength was at 24,881 persons as of
March 31, 2013, 25,012 persons as of March 31, 2014, 22,882 persons as of March 31, 2015, 22,781 persons as
of March 31, 2016 and 24,205 persons as of March 31, 2017. None of our employees are represented by a
recognized labour union, and we believe that our relations with our employees are good.
Remuneration to our employees comprises a fixed component as well as variable pay. Variable pay consists of
direct incentives and shared incentives. Our direct and shared incentives are linked to performance targets being
achieved by employees and branches. We have an annual performance appraisal system for all employees.
Annual increments are awarded only for employees who meet minimum performance standards in their job.
Training
Our ability to timely appraise the quality of the gold jewelry collateral is critical to the business, and requires us
to employ persons possessing specialized skill sets in our various branches. We provide extensive training to our
branch employees through training programs that are tailored to appraising the gold content in gold jewelry. A
new employee is introduced to the business through an orientation program and through training programs
covering job-appropriate topics. The experienced branch employee receives additional training and an
introduction to the fundamentals of management to acquire the skills necessary to move into management
positions within the organization. Manager training involves a program that includes additional management
principles and more extensive training in topics such as income maximization, business development, staff
motivation, customer relations and cost efficiency. We have opened two Management Academies, one each in
Delhi and in Kochi. We also have regional training centers at each of our regional offices. The academy serves
as a management development center focusing on developing our future managers and leaders.
Litigation
Except as disclosed elsewhere in this Draft Shelf Prospectus, we have no material litigation pending against us
or our Directors. For details, see “Pending Proceedings and Statutory Defaults” beginning on page 168 of this
Intellectual Property Rights
The brand and trademark “Muthoot”, as also related marks and associated logos (“Muthoot Trademarks”) are
currently registered in the name of our Company. Our Company proposes to register the Muthoot Trademarks
in the name of our Promoters through a rectification process or an assignment (or irrevocably grant ownership
rights by alternate, legally compliant means). For further details see “Risk Factors - The “Muthoot” logo and
other combination marks are proposed to be registered in the name of our Promoters. If we are unable to use
the trademarks and logos, our results of operations may be adversely affected. Further, any loss of rights to use
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the trademarks may adversely affect our reputation, goodwill, business and our results of operations” beginning
on page 11 of this Draft Shelf Prospectus.
Property
Our registered and corporate office is located in Ernakulam, Kerala, is owned by us. We acquired land in New
Delhi, and constructed an office building to serve as an administrative base for our operations in the northern,
eastern and western states of India. As of December 31, 2017, except for 15 branch offices, which are owned by
us, all our other branch offices are located at premises leased or licensed to us. We also own 77 guest houses all
across India for use by our employees. We also hold 16 other properties used for various purposes by our
Company.
Corporate Structure
Muthoot
Finance Ltd.
60% * 100% * 64.60% * 100%*
Belstar Muthoot
Asia Asset Muthoot Insurance
Investmnt and
Finance PLC., Homefin Brokers Pvt.
Finance Pvt.
Sri Lanka (India) Ltd. Ltd.
Ltd.
*Muthoot Finance Ltd’s equity share capital holding in the investee company
Subsidiary Companies
Muthoot Homefin (India) Limited
MHIL is a housing finance company registered with the National Housing Bank (NHB). It became a wholly
owned subsidiary of the Company in August 2017. MHIL focuses on extending affordable housing finance and
targets customers in Economically Weaker Sections (EWS) and Lower Income Groups (LIG) in Tier II & Tier
III locations. It operates on a ‘Hub and Spoke’ model, with the centralised processing at the corporate office at
Mumbai. MHIL has operations in Kerala, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chandigarh,
Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh and Haryana. As on March 31, 2017, it has a loan
portfolio of ` 4.00 billion. ICRA assigned Long Term Debt Rating of ICRA AA-(Stable) for its Bank limits in
Q2 financial year 2017. Recently ICRA assigned Short Term Debt Rating of CRISIL A1+ for its commercial
paper.
Muthoot Insurance Brokers Private Limited
MIBPL became a wholly owned subsidiary of the Company in September 2016. MIBPL is an unlisted private
limited company holding a licence to act as direct broker from the IRDA since 2013. It is actively distributing
both life and non-life insurance products of various insurance companies. During financial year 2017, it has
insured more than 566,000 lives with a first year premium collection of ` 697 million under traditional, term and
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health products. The same was 459,000 lives with a first year premium collection of ` 490 million in financial
year 2016.
Belstar Investment and Finance Private Limited
As of December 31, 2017, Muthoot Finance Limited holds 64.60% in BIFPL. BIFPL was incorporated in
January 1988 at Bangalore and the BIFPL was registered with the RBI in March 2001 as an NBFC. BIFPL was
reclassified as “NBFC-MFI” by the RBI effective from December 11, 2013. BIFPL was acquired by the ‘Hand
in Hand’ group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by ‘Hand
in Hand’s’ Self Help Group (SHG) program. The Company commenced its first lending operations at Haveri
District of Karnataka in March 2009 to 3 SHGs, 22 members for ` 0.20 million. In the last eight years of its
operations, BIFPL primarily relied on taking over the existing groups formed by Hand in Hand India. BIFPL
predominantly follows the SHG model of lending. Effective January 2015, BIFPL started working in JLG model
of lending in Pune district, Maharashtra. As of Dec 31, 2017, BIFPL operations are spread over seven states and
1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Pondicherry and Chhattisgarh). It
has 215 branches, with 38 controlling regional offices and employs 1576 staff. Its loan portfolio has grown from
` 0.20 million in March 2009 to ` 5,668 million in March 2017.
Asia Asset Finance PLC
Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of the Company on
December 31, 2014. As on December 31, 2017 the total holding in AAF stood at 503 million equity shares
representing 60% of their total capital. The loan portfolio stands at LKR 8.66 billion as on March 31, 2017. AAF
is a registered financial company based in Sri Lanka a fully licensed, deposit-taking institution registered with
the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange. AAF is in lending business since
1970. At present the company is involved in retail finance, hire purchase & business loans and has 17 branches
across Sri Lanka. The company formerly known as finance and land sales has been in operation for over 46
years, evolving to serve the growing needs of people of Sri Lanka.
A summary of the key operational and financial parameters for the last three completed financial years of the
Company on a standalone basis are as under:
(Rs in millions)
Particulars Year Ended March 31
2017 2016 2015
Networth 65,164.41 56,192.49 50,835.04

Total Debt of Which:
Non-Current Maturities of Long Term Borrowing 42,311.91 52,762.59 67,125.59
Short Term Borrowing 127,549.09 83,635.16 77,606.48
Current Maturities of Long Term Borrowing 39,993.67 49,272.35 49,628.95
Unpaid Matured Debentures 1104.94 739.40 286.06
Net Fixed Assets 2,182.06 2,273.73 2,641.67
Non-Current Assets 5,918.71 4,779.06 4,359.18
Cash and Bank Balances 15,342.53 6,791.10 17,366.17
Current Investments 0 0 0
Current Assets 301,212.00 265,708.27 263,333.34
Current Liabilities 192,929.43 150,261.57 137,646.28
Assets Under Management (Gross Loan Assets) 272,785.35 243,789.09 234,084.71
Off Balance Sheet Assets 0 0 0
Interest Income 56,546.38 48,129.79 42,715.94
Interest Expense 22, 938.15 22,576.93 21,063.56
Provisioning and Write offs 2815.91 1624.39 371.43
PAT 11,798.31 8,095.53 6,705.24
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Gross NPA (%)* 2.06 2.88 2.19
Net NPA (%)* 1.69 2.46 1.88
Tier I Capital Adequacy Ratio (%) 21.78% 20.92% 19.96%
Tier II Capital Adequacy Ratio (%) 3.10% 3.56% 4.82%
Gross Debt Equity Ratio:
Before the Issue 3. 24
After the Issue 3.70
*on Gross Loan Assets
#The debt-equity ratio post the Issue is indicative and is on account of assumed inflow of ` 30,000 million from the
Issue and does not include contingent and off-balance sheet liabilities. The actual debt-equity ratio post the Issue
would depend upon the actual position of debt and equity on the date of allotment.
A summary of the key operational and financial parameters for the last three financial years on a consolidated basis
are as under:
(Rs in millions)
As at and for As at and for
As at and for the
the financial the financial
Particulars financial year ended
year ended year ended
March 31,2015
March 31,2017 March 31,2016
Networth 65,380.40 56,222.87 50,840.22
Total Debt of which
Non Current Maturities of Long Term Borrowings 48,451.33 54,265.57 67,664.94
Short Term Borrowings 127,658.66 83,708.09 77,606.51
Current Maturities of Long Term Borrowings 45,656.76 50,568.27 50,934.06
Net Fixed Asset 2,462.10 2,423.45 2,715.21
Non Current Asset 11,833.80 5,558.92 5,102.46
Cash and Bank Balances 16,448.76 7,140.05 17,571.21
Current Investments 806.25 343.87 155.31
Current assets 310,007.62 268,388.60 264,859.45
Current Liabilities 200,473.56 151,804.91 139,077.07
Assets under Management 286,369.12 247,098.56 236,096.07
Off Balance Sheet Assets
Interest Income 58,175.49 48,727.08 42,823.98
Interest Expense 23,688.40 22,856.23 21,122.64
Provisioning & Write offs 2,966.50 1,664.05 374.02
PAT 11,997.85 8,145.00 6,710.45
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HISTORY AND MAIN OBJECTS
Brief background of our Company
Our Company was originally incorporated as a private limited company on March 14, 1997 with the name “The
Muthoot Finance Private Limited” under the Companies Act, 1956. Subsequently, by fresh certificate of
incorporation dated May 16, 2007, our name was changed to “Muthoot Finance Private Limited”. The
Company was converted into a public limited company on November 18, 2008 with the name “Muthoot Finance
Limited” and received a fresh certificate of incorporation consequent upon change in status on
December 02, 2008 from the ROC.
Our Company has obtained a certificate of registration dated December 12, 2008 bearing registration no. N.
16.00167 issued by the RBI to carry on the activities of a non-banking financial company without accepting public
deposits under Section 45 IA of the RBI Act, 1934.
Registered office
The registered office of our Company is located at Muthoot Chambers, 2nd Floor, Opposite Saritha Theatre
Complex, Banerji Road, Kochi 682 018, India.
Amalgamation of Muthoot Enterprises Private Limited with our Company
Our Company, along with Muthoot Enterprises Private Limited, filed a composite scheme of arrangement
bearing C.P. Nos. 48 and 50 of 2004 under the Companies Act before the High Court of Kerala (“Scheme of
Amalgamation”). The Scheme of Amalgamation was approved by the board of directors of our Company
through the board resolution dated April 28, 2004.
Pursuant to the approval of the Scheme of Amalgamation by the High Court of Kerala by an order dated
January 31, 2005, Muthoot Enterprises Private Limited was merged with our Company, with effect from
April 01, 2004 and the High Court of Kerala had instructed all the parties to comply with the statutory and other
legal requirements to make the Scheme of Amalgamation effective.
The company on March 22, 2005 filed a certified copy of the order of the High Court of Kerala with the ROC.
With the successful implementation of the Scheme of Amalgamation, the undertaking of Muthoot Enterprises
Private Limited along with its assets and liabilities was transferred to and vested in our Company.
Demerger of Radio Business
Our Company filed a scheme of de-merger dated March 17, 2010 under Sections 391 to 394 of the Companies
Act, with the High Court of Kerala at Ernakulam for the demerger of the radio business of the Company to
Muthoot Broadcasting Private Limited. By an order dated April 09, 2010, the High Court of Kerala sanctioned
the scheme of demerger. In terms of the scheme of demerger, all existing properties, rights, powers, liabilities
and assets as detailed in the scheme, duties of the radio business of the Company, have been transferred to
Muthoot Broadcasting Private Limited with effect from January 01, 2010, which was the appointed date as per
the scheme of arrangement. Further, in terms of the order, all proceedings pending by or against the Company
relating to radio business will be continued by or against Muthoot Broadcasting Private Limited. Thereafter,
pursuant to order of the Ministry of Information and Broadcasting dated July 20, 2010, the Company obtained
approval for the transfer of the FM radio licence to Muthoot Broadcasting Private Limited subject to certain
conditions.
Amalgamation, acquisition, re-organisation or reconstruction undertaken by the Company in the last one
year
The Company has not undertaken any amalgamation, acquisition, re-organisation or reconstruction activities in
the last one year preceding the date of this Draft Shelf Prospectus.
Further Investments in Subsidiaries
The company further acquired 88,00,000 equity shares of M/s. Muthoot Homefin (India) Limited ("MHIL")
taking the total shareholding to 100% of the equity shares of MHIL and making it a wholly owned subsidiary of
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Muthoot Finance Limited. Thereafter Muthoot Finance Limited subscribed to 2,27,27,272 further equity shares
of MHIL.
Change in registered office of our Company
At the time of incorporation, the registered office of the company was situated at Supremo Complex, Toll
Junction, Edapally, Kochi 682 024. With effect from November 20, 2001, the registered office of the Company
was shifted to its present registered office, at Muthoot Chambers, 2nd Floor, Opposite Saritha Theatre Complex,
Banerji Road, Kochi 682 018, India, for administrative convenience.
Promoters and group companies
Muthoot Fin Corp Limited is neither a related company nor is it a company under the same management within the
meaning of the Companies Act, 1956*. For further details regarding the Promoters and the group companies please
refer to “Our Promoters” at page 115 of this Draft Shelf Prospectus.
*Disclosure made in accordance with letter from SEBI bearing no. IMD/DOF-1/BM/VA/OW/22785/2013 dated October 30, 2013.
Key events, milestones and achievements
Fiscal Year Particulars

2000-2001 RBI license obtained to function as an NBFC.
2003-2004 Obtained highest rating of F1 from Fitch Ratings for short term debt of ` 200.00 million.
2004-2005  Retail loan and debenture portfolio of our Company exceeds ` 5.00 billion.
 Merger of Muthoot Enterprises Private Limited with our Company.
 F1 rating obtained from Fitch Ratings affirmed with an enhanced short term debt of ` 400.00 million.
2005-2006  Retail loan and debenture portfolio crosses ` 7.00 billion and ` 6.00 billion respectively.
 Overall credit limits from banks crosses ` 1.00 billion.
2006-2007  Retail loan portfolio of our Company crosses ` 14.00 billion
 RBI accords status of Systemically Important ND-NBFC.
 Branch network of our Company crosses 500 branches.
 Net owned funds of our Company crosses ` 1.00 billion.
 F1 rating obtained from Fitch Ratings affirmed with an enhanced short term debt of ` 800.00 million.
 Overall credit limits from lending banks crosses ` 5.00 billion.
2008-2009  Conversion of our Company into a public limited company.
 Fresh RBI license obtained to function as an NBFC without accepting public deposits, consequent to change in name
 Retail loan and debenture portfolio crosses ` 33.00 billion and ` 19.00 billion respectively.
 Gross annual income crosses ` 6.00 billion.
 Branch network of our Company crosses 900 branches.
 ICRA assigns ‘A1+’ rating for short term debt of ` 2.00 billion.
 CRISIL assigns ‘P1+’ rating for short term debt of ` 4.00 billion.
 Branch network of our Company crosses 1,600 branches.
 Demerger of the FM radio business into Muthoot Broadcasting Private Limited.
 Gross annual income crossed ` 10.00 billion.
 CRISIL assigns “AA-/Stable” rating for ` 4.00 billion non convertible debenture issue.
 CRISIL assigns “AA-/Stable” rating for ` 1.00 billion subordinated debts issue.
 ICRA assigns long term rating of “AA-/Stable” for the ` 1.00 billion subordinated debt issue and for ` 2.00 billion
Non-convertible Debenture issue respectively.
 Branch network crossed 2,700 branches.
 Net owned funds crossed ` 13.00 billion.
 Private equity investment of an aggregate of ` 2,556.90 million from Matrix Partners India Investments, LLC, The
Wellcome Trust, Kotak PE, Kotak Investments and Baring India PE.
2011-2012  Successful IPO of ` 9,012.50 million in April 2011.
 Listing of Equity Shares in BSE and NSE.
 Retail loan portfolio crosses ` 246.00 billion.
 Retail debenture portfolio crosses ` 66.00 billion.
 ICRA assigns long term rating of AA- Stable and short term rating of A1+ for the ` 93,530.00 million line of credit.
 Raised ` 6.93 billion through a public issue of secured non-convertible debentures under Series I.
 Raised ` 4.60 billion through a public issue of secured non-convertible debentures under Series II.
 Received the Golden Peacock Award, 2012 for corporate social responsibility.
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Fiscal Year Particulars
 Net owned funds crossed ` 29.00 billion.
 Bank credit limit crosses ` 92.00 billion.
 Branch network crosses 3600 branches.
2012-2013  Retail loan portfolio crosses ` 260.00 billion
 Retail debenture portfolio crosses ` 97.00 billion
 Net owned funds crosses ` 37.00 billion
 Gross annual income crossed ` 53.00 billion
 Profit After Tax for the year crosses ` 10.00 billion
 Bank credit limit crosses ` 99.00 billion
 Branch network crosses 4,000 branches
 ICRA and CRISIL revised its outlook on long term ratings to “AA-/Negative “ from “AA-/Stable”
 Raised ` 2.60 billion and ` 2.70 billion, through public issues of Series III and Series IV, respectively of secured
and/or unsecured non-convertible debentures.
2013-2014  Retail loan portfolio at ` 219.00 billion
 Listed debenture portfolio raised through public issue ` 11.00 billion
 Gross annual income at ` 49.00 billion
 Profit After Tax for the year at ` 7.80 billion
 Branch network crosses 4,200 branches
 Raised ` 3.00 billion, ` 3.00 billion, and ` 5.00 billion through public issues of Series V, Series VI and Series VII
respectively of secured and/or unsecured non-convertible debentures.
 ICRA has revised their outlook on long term ratings from “[ICRA]AA-/Negative” to “[ICRA]AA-/Stable” in
January 14, 2014.
 CRISIL has revised their outlook on long term ratings from “CRISIL AA-/Negative” to “CRISIL AA-/Stable” in
February 05, 2014.
2014-2015  Retail loan portfolio at ` 234.00 billion

 Listed debenture portfolio raised through public issue ` 14.62 billion
 Raised ` 1.98 billion, ` 4.66 billion, ` 3.98 billion and ` 4.00 billion, through public issues of Series VIII, Series IX
Series X and Series XI, of secured and/or unsecured non-convertible debentures.
 Fresh issuance of 25,351,062 equity shares by way of an institutional placement programme under Chapter VIII – A of
the SEBI ICDR Regulations aggregating up to ` 4,182.93 million, thereby complying with the minimum public
shareholding requirement under rule 19(2)(b)(ii) of the SCRR.
 Acquired 428,011,711 equity shares of Asia Asset Finance PLC, Colombo (AAF), representing 51% of the total capital
of AAF.
2015-2016  Retail loan portfolio crossed ` 243.00 billion
 Raised ` 3.00 billion ` 5.00billion and ` 4.39 billion through public issues of Series XII, Series XIII and Series XIV of
secured and/or unsecured non-convertible debentures.
 Acquired 39,500,000 equity shares of Muthoot Homefin (India) Limited (MHIL), a housing finance company,
representing 79% of the equity share capital of MHIL.
 Increased its stake in AAF to 59.70%.
2016-2017  Raised ` 5.00 billion and ` 13.31 billion through public issues of Series XV and Series XVI of secured and/or
unsecured non-convertible debentures
 Acquired Muthoot Insurance Brokers Private Limited (MIBPL) as a wholly owned subsidiary in June’16. MIBPL is an
unlisted private limited company holding a licence to act as Direct Broker from IRDA since 2013.
 Acquired 46.83% of the capital of Belstar Investment and Finance Private Limited (BIFPL) in July’16. BIFPL is
classified as an “NBFC-MFI” by RBI.
 Increased its stake in BIFPL to 64.60%.
 Increased its stake in MHIL to 88.27%.
 Further increased its stake in AAF to 60.00%.
 CRISIL and ICRA upgraded long term debt rating from AA-/Stable to AA/Stable.
2017-2018  Raised ` 19.68 billion through public issues of Series XVII of secured and/or unsecured non-convertible debentures.
 Muthoot Homefin (India) Limited becomes a wholly owned subsidiary.
Main objects of our Company
The main objects of our Company as contained in our Memorandum of Association are:
 To carry on the business of money lending and financing, whether by making loans or advances or by
purchasing, discounting or accepting bills of exchange, promissory notes or other negotiable
instruments or by giving guarantees or otherwise, for any industrial, trade, commercial, agricultural or
economic activities of individuals, firms, companies, associations of persons or bodies of individuals,
whether incorporated or not.
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 To carry on the business as acceptance houses, confirming houses, venture capital funds, merchant
bankers, underwriters or investors. However, the Company shall not carry on the business of banking as
defined under the Banking Regulation Act, 1949.
 To carry on the business of marketing and dealing of financial products.
 To engage in micro finance activities and thereby provide financial assistance to that segment of the
population belonging to the rural and urban poor so as to enable them to engage themselves in
productive ventures and thus uplift their overall well being.
 To acquire concessions, facilities or licenses from Electricity Boards, Government, semi Governments
or local authorities for generation, distribution, production, transmission or use of electric power and to
take over along with all movable and immovable properties, the existing on mutually agreed terms from
aforesaid authorities and to do all incidental acts and things necessary for the attainment of the
foregoing objects.
 To establish and carry on the business of White Label ATM networks in terms of Payment and
Settlement Systems Act, 2007, independently or in association with other service providers as a joint
venture or otherwise.
 To carry on mutual fund activities in India or abroad, acting as a sponsor to a Mutual Fund,
incorporating or causing the incorporation of and / or acquiring and holding shares in an asset
management company and / or trustee company to a mutual fund and to engage in such other activities
relating to the Mutual Fund business as permitted under the applicable laws, to set up, create, issue,
float, promote and manage assets, trusts or funds including mutual funds, growth funds, investment
funds, income or capital funds, taxable or tax exempt funds, charitable funds, venture funds, risk funds,
real estate funds, education funds, on shore funds, off shore funds, consortium funds or organise or
manage funds or investment on a discretionary or non-discretionary basis on behalf of any person or
persons (whether individual, firms, companies, bodies corporate, public body or authority, supreme,
local or otherwise, trusts, pension funds, charities, other associations or other entities), whether in the
private of public sector and to act as administrators, managers, portfolio managers, or trustees of funds
and trust, brokers, managers or agents to the issue, registrar to the issue, underwriters to the issue,
financial advisors, trusteeship services and wealth advisory services.
 To act or to carry on the business of providing financial services including bill collection services and
advisory and management services including information technology services.
Subsidiaries or associate companies
As on the date of this Draft Shelf Prospectus our Company has four subsidiaries and no associate company.
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OUR MANAGEMENT
Board of Directors
The general superintendence, direction and management of our affairs and business are vested in our Board of
Directors. We have not appointed any ‘manager’ within the meaning thereof under the provisions of the Act and
the relevant provisions of the Companies Act, 2013.
Under the Articles of Association, we are required to have not less than three Directors and not more than 12
Directors. We currently have 11 Directors on the Board out of which 6 Directors, i.e. more than 50% of the total
strength of Directors are independent directors.
Details relating to Directors
Name, Nationality Date of Address Other Directorships

Designation, Age Appointment
and DIN
M. G. George Indian April 01, 2010 Muthoot House 1. M.G.M Muthoot Medical
Muthoot G 74, East of Kailash Centre Private Limited
Age: 68 years New Delhi 110 065 2. Muthoot Farms India Private
Whole Time Limited
Director and 3. Muthoot Broadcasting
Chairman Private Limited
Director 4. Emgee Board and Paper
Identification Mills Private Limited
Number: 5. Muthoot M George Chits
00018201 India Limited
6. Marari Beach Resorts Private
Limited
7. Muthoot Securities Limited
8. Muthoot Commodities
Limited
9. Muthoot M George Institute
of Technology
10. Muthoot Homefin (India)
Limited
11. Muthoot Health Care Private
Limited
12. Muthoot Synergy Fund
Limited
13. Muthoot Anchor House Hotels
Private Limited
14. Geobros Properties and
Realtors Private Limited
15. Adams Properties Private
Limited
16. Muthoot Infopark Private
Limited
17. Muthoot M George Real
Estate Private Limited
George Thomas Indian April 01, 2010 Muthoot House 1. Muthoot Leisure and
Muthoot House No. 9/324 A, Miss Hospitality Services Private
Age: 67 years East Lane, Baker Limited
Whole Time Junction, Kottayam 2. M.G.M Muthoot Medical
Director Kerala 686 001 Centre Private Limited
Director 3. Muthoot Holiday Homes and
Identification Resorts Private Limited
Number: 4. Muthoot Vehicle &Asset
00018281 Finance Limited
5. Muthoot Broadcasting
Private Limited
6. Muthoot M George Chits
India Limited
Limited
Limited
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and DIN
of Technology
Limited
11. Muthoot Anchor House
Hotels Private Limited
13. Muthoot Synergy Fund
Limited
Limited
15. Muthoot Infopark Private
Limited
16. Muthoot M. George Real
George Jacob Indian April 01, 2010 Muthoot House 1. Muthoot Leisure and
Muthoot House No. TC/4/25154 Hospitality Services Private
Age: 63 years Marappalam, Pattom P. Limited
Whole Time O. 2. Muthoot Infopark Private
Director Thiruvananthapuram Limited
Director’s Kerala 695 004 3. Muthoot Insurance Brokers
Identification Private Limited
Number: 4. Muthoot Forex Limited
00018235 5. M.G.M Muthoot Medical
Centre Private Limited
6. Muthoot Marketing Services
Private Limited
7. Muthoot Broadcasting
Private Limited
Limited
9. Muthoot Developers Private
Limited
Limited
Limited
13. Oxbow Properties Private
Limited
of Technology
15. Muthoot Anchor House
Hotels Private Limited
Limited
18. Muthoot Global Money
Transfers Private Limited
19. Muthoot M. George Real
George Indian April 01, 2010 Muthoot House 1. Muthoot Infopark Private
Alexander G 343, Panampilly Limited
Muthoot Nagar, Ernakulam 2. Muthoot Forex Limited
Age: 62 years Kerala 682 036 3. M.G.M Muthoot Medical
Managing Centre Private Limited
Director 4. Muthoot Insurance Brokers
Director Private Limited
Identification 5. Muthoot Vehicle &Asset
Number: Finance Limited
00016787 6. Muthoot Broadcasting
Private Limited
Limited
Limited
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and DIN

Limited
11. Muthoot Marketing Services
Private Limited
of Technology
Limited
14. Muthoot Anchor House Hotels
Private Limited
Limited
17. Muthoot M George Real
K. George John Indian September 27, 2013. House No 22/1532C, 1. Munnar Ridgetree Residencies
Age: 71 years Kariath, Valiakulam Private Limited
Independent Road, Edakochi, 2. Muthoot Homefin (India)
Director Ernakulam – 682 010
Limited
Director’s
Identification
Number:
00951332
Jose Mathew* Indian September 20, 2017 Vadakkekalam Green Villa 1. Kerala Antibiotics Private
Age: 66 years Chamber Road, Bazar P O Limited
Independent Alappuzha -688012 2. Green Shore Holidays and
Director
Resorts Private Limited
Director’s
Identification 3. Muthoot Vehicle & Asset
Number: Finance Limited
00023232
John K. Paul# Indian July 21, 2010 Kuttukaran House 1. Popular Vehicles and
Age: 64 years St Benedict Road, Services Limited
Independent Ernakulam 2. Popular Kuttukaran Cars
Director Kerala 682 018 Private Limited
Director 3. Popular Auto Dealers Private
Identification Limited
Number: 4. Popular Auto Spares Private
00016513 Limited
5. Popular Autoworks Private
Limited
6. Federation of Automobile
Dealers Association Limited
7. Keracon Equipments Private
Limited
8. Prabal Motors Private
Limited
9. Foundation for
Entrepreneurial Development
(Kerala)
10. Kuttukaran Pre Owned Cars
Private Limited
George Joseph Indian July 21, 2010 1/362, Melazhakath 1. Wonderla Holidays Limited
Age: 68 years House, Alanickal Estate 2. Credit Access Grameen
Independent Road, Arakulam P.O., Limited
Director Idukki district
3. ESAF Small Finance Bank
Director Kerala 685 591
Identification Limited
Number:
00253754
Alexander M Indian November 05, 2014 Muthoot House 1. Nerur Rubber & Plantations
Page | 100
and DIN
George G 74, East of Kailash Private Limited

Age: 37 years New Delhi 110 065 2. Tarkali Rubber & Plantations
Whole-time Private Limited
Director 3. Patgaon Plantations Private
Director Limited
Identification 4. Muthoot Systems and
Number: Technologies Private Limited
00938073 5. Unisom Rubber and
Plantations Private Limited
6. Muthoot M George
Permanent Fund Ltd
7. Geo Bros Muthoot Funds
India Limited
8. Muthoot Precious Metals
Limited
9. Muthoot Vault and Lockers
Private Limited
10. Muthoot Insurance Brokers
Private Limited
11. Muthoot Holidays Private
Limited
Pamela Anna Indian November 05, 2014 OEN House, Tripunitura 1. OEN India Ltd
Mathew Road, Vytilla- 19 2. GTN Textiles Limited
Age: 66 years 3. Patspin India Ltd
Independent 4. INKEL-KSIDC Projects
Director Limited
Director 5. INKEL Limited
Identification 6. Geomaths Stocks and Shares
Number: Trading Private Limited
00742735
Jacob Benjamin Indian September 20, 2017 38/617A, Thripthi Lane S Nil
Koshy A Road, Kochi, MG Road
Age: 70 years Ernakulam 682016
Independent
Director
Director
Identification
Number:
07901232
*Mr. Jose Mathew had appealed to Hon. High Court of Kerala against order of Registrar of Companies making him disqualified to be
appointed as Director under Section 164 (2) of the Companies Act, 2013 and court pleased to grant stay against the order. This order is
extended by Hon High Court of Kerala till the date of Condonation of Delay Scheme 2018 of Ministry of Corporate Affairs is in force.
#Mr. John K Paul had appealed to Hon. High Court of Kerala against order of Registrar of Companies making him disqualified to be
appointed as Director under Section 164 (2) of the Companies Act, 2013 and court pleased to grant stay against the order. At present
Mr. John K Paul has applied under Condonation of Delay Scheme 2018 of Ministry of Corporate Affairs, however this disqualification does
not affect his existing directorships.
Profile of Directors
M.G. George Muthoot
M.G. George Muthoot is a graduate in engineering from Manipal University, and is a businessman by profession. He is
the National Executive Committee Member of the Federation of Indian Chamber of Commerce and Industry
(“FICCI”) and the current Chairman of FICCI - Kerala State Council. He was conferred the Mahatma Gandhi National
Award for social service for the year 2001 by the Mahatma Gandhi National Foundation. He is an active member of
various social organisations including the Delhi Malayalee Association, Kerala Club, Rotary Club, National Sports Club
and has been chosen for several awards by the Rotary International and the Y’s Mens International for community
development and social service. He has been a member of the Managing Committee of Malankara Orthodox Syrian
Church for over three decades and served as the lay trustee of the Malankara Orthodox Syrian Church. He was
conferred the HH Baselios Mathew I Award by Catholicate of the Syrian Orthodox Church Mathews the First
Foundation for the year 2008 for his services to the Church. He is also the recipient of Asian Business Man of The Year
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2011 from UK- Kerala Business Forum and was also conferred with the Golden Peacock Award, 2012 for business
leadership.
George Thomas Muthoot
George Thomas Muthoot is a businessman by profession. He is an undergraduate. He has over three decades of
experience in managing businesses operating in the field of financial services. He has received the ‘Sustainable
Leadership Award 2014’ by the CSR congress in the individual category.
George Jacob Muthoot
George Jacob Muthoot has a degree in civil engineering from Manipal University and is a businessman by profession.
He is a member of the Trivandrum Management Association, the Confederation of Real Estate Developers Association
of India (Trivandrum) and the Trivandrum Agenda Task Force. He is also a member of the Rotary Club, Trivandrum
(South), governing body member of the Charitable and Educational Society of Trivandrum Orthodox Diocese, Ulloor,
Trivandrum, Finance Committee Member, Mar Diocese College of Pharmacy, Althara, Trivandrum and Mar
Gregorious Orthodox Christian Mercy Fellowship, Trivandrum. He has over three decades of experience in managing
businesses operating in the field of financial services.
George Alexander Muthoot
George Alexander Muthoot is a chartered accountant who qualified with first rank in Kerala and was ranked 20th
overall in India, in 1978. He has a bachelor degree in commerce from Kerala University where he was a rank holder
and gold medalist. He was also awarded the Times of India group Business Excellence Award in customised Financial
Services in March 2009. He was also awarded the CA Business Leader Award under Financial Services Sector from the
Institute of Chartered Accountants of India for 2013. He served as the Chairman of the Kerala Non-banking Finance
Companies Welfare Association from 2004 to 2007 and is currently its Vice Chairman. He is also the Member
Secretary of Finance Companies Association, Chennai. He is the founder member for The Indus Entrepreneurs
International, Kochi Chapter and is now a member of the Core Committee of the Indus Entrepreneurs International
Kochi Chapter. He has over three decades of experience in managing businesses operating in the field of financial
services.
K. George John
K George John is a post graduate in mathematical statistics and has retired as Chairman and Managing Director of
TBWA India, a part of Omnicorn Group. He previously managed Ulka Advertising (now FCB-Ulka). Thereafter he
founded Anthem Communications Pvt Ltd, which later on went on to merge with TBWA Worldwide under a joint
venture.
John K Paul
John K Paul is a graduate in engineering from the Regional Engineering College, Kozhikode and a businessman by
profession. He is a director of Popular Vehicles and Services Limited, a leading and well reputed dealer of vehicles and
automobile accessories for Maruti Suzuki in Kerala and Chennai. He is trustee of the Kuttukaran Institute for HRD,
which is an institution offering professional courses. He was the president of the Kerala Chamber of Commerce and
Industry from 2005 to 2006. He was also the president of both the Kerala Hockey Association and the Ernakulam
District Hockey Association.
George Joseph
George Joseph is a first rank holder commerce graduate from Kerala University. He is also a certified associate of the
Indian Institute of Banking and Finance. He is the former chairman and managing director of Syndicate Bank. He
joined Syndicate Bank as an executive director on April 01, 2006 and was elevated to the post of Chairman and
Managing Director on August 02, 2008 and subsequently retired from office on April 30, 2009. Before joining the
Syndicate Bank, George Joseph was employed with Canara Bank for over 36 years.
Alexander M George
Alexander M George is an MBA graduate from Thunderbird, The Garvin School of International Management,
Glendale, Arizona, USA. He joined the Company in 2006 and has been heading the marketing, operations and
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international expansion of the Company. Under his dynamic leadership and keen vision, the Company has enhanced its
brand visibility through innovative marketing strategies and has also implemented various IT initiatives that have
benefitted both the customers and employees.
Pamela Anna Mathew
Pamela Anna Mathew is a twin postgraduate in economics and business administration. She is presently
Managing Director of O/E/N India Limited, market leader in the country in the field of Electro-Mechanical
Components for the Electronics Industry. She has served as the Chairperson of CII Kerala Council from 2002 to
2003 and as Chairperson of Social Development & Women Empowerment panel for Southern Region of CII for
two terms from 2003 to 2004 and from 2004 to 2005. She was also honoured with the CII Award for the best
Chairperson at National level, for outstanding contributions to the industry. She was also the past President of
Cochin Chamber of Commerce, Kerala Management Association and Electronic Components Industries
Association and is also closely associated with Kerala State Productivity Council.
Jose Mathew
Jose Mathew is a qualified chartered accountant and became a member of the Institute of Chartered Accountants
of India in 1977. He was employed with Kerala State Drugs & Pharmaceutical Limited, a Government of Kerala
undertaking from 1978 in various positions and demitted office as managing director in 1996 – 97. He was also
a director of Vellappally Plantations Private Limited. He also served as the secretary and general manager
finance of Kerala State Industrial Enterprises, a holding company of Government of Kerala during the year
1991- 92 and as the member of the first Responsible Tourism Committee constituted by Department of Tourism,
Government of Kerala.
He was a management committee member of Kerala Travel Mart Society, a private - public association / society
of travel & tourism fraternity and the treasurer & secretary of Kerala Travel Mart Society. Jose Mathew is
presently the managing director of Green Shore Holidays & Resorts Private Limited (Rainbow Cruises),
Alleppey and an independent director of Muthoot Vehicle & Asset Finance Limited, Kochi. He is also a member
of Kerala Tourism Advisory Committee since 2015.
He has been honoured with various awards and recognitions in tourism, including awards from Kerala Travel
Mart. He was also honoured with the CNBC ‘Awaz’ Award, for sustainability in Responsible Tourism in the
year 2013.
Jacob Benjamin Koshy
Jacob Benjamin Koshy is the former Chief Justice of the High Court of Judicature at Patna. He enrolled as an
advocate in the High Court of Kerala in October, 1968. In 1971, he joined Menon and Pai, a leading Advocates’
firm and become a partner of the firm in 1982. He specialized in indirect taxation, labour and industrial law and
appeared in various courts throughout India. He was a director of Aspinwall and Co. Ltd., William Goodacre
(India) Ltd. etc. and life member of YMCA. He represented public sector undertakings like Cochin Port Trust,
FACT, Central Bank of India, Indian Oil Corporation, Bharat Petroleum Corporation Limited and various
private sector undertakings like TATA Tea Ltd., Hindustan Lever Ltd. Harrison Malayalam Ltd. etc.
Elevated as a judge of the High Court of Kerala on January 17, 1996, he became the Acting Chief Justice of the
High Court of Kerala in December, 2008. Thereafter he was promoted as the Chief Justice of the High Court of
Judicature at Patna (Bihar State) and from there he took retirement.
Jacob Benjamin Koshy has pronounced judgments in various branches of law including public interest litigation,
constitution, criminal, taxation, arbitration etc. He was the executive chairman of the Kerala State Legal Services
Authority from 2006 to 2009 and chairman of the Indian Law Institute, Kerala chapter from 2007 onwards till
his promotion as the Chief Justice. He was the chairman of the advisory board constituted under the
COFEPOSA Act and National Security Act from April 2005 to March, 2009. He also functioned as the
chancellor of the National University of Advanced Legal Studies, Cochin and Chancellor of the Chanakya
National Law University of Patna during his tenure as Acting Chief Justice and Chief Justice respectively.
He was appointed as chairman of the Appellate Tribunal for Forfeited Property New Delhi on April 08, 2010. In
May, 2010 he was given additional charge as chairman of the Appellate Tribunal under the Prevention of Money
Laundering Act. At the request of the then Chief Minister of Kerala, he assumed charge as the chairperson of the
Page | 103
Kerala State Human Rights Commission and on completion of the five year tenure, retired on
September 04, 2016.
Remuneration of the Directors
Terms and Conditions of Employment of Executive Directors
M. G. George Muthoot was appointed for a period of 5 years, with effect from April 01, 2010 as the Whole-
Time Director of the Company by a resolution of the Board dated March 01, 2010, approval of the members
dated July 21, 2010 and duly executed employment agreement with the Company dated March 31, 2010. He has
been re-appointed as Whole Time Director of the Company for a period of 5 years with effect from April 01,
2015 by a resolution passed by the members of the Company at the Annual General Meeting held on September
25, 2014.
The remuneration paid to M. G. George Muthoot for the financial year ended March 31, 2017 is ` 880.00 lakhs.
George Thomas Muthoot was appointed for a period of 5 years, with effect from April 01, 2010 as the Whole-
dated July 21, 2010 and duly executed employment agreement with the Company dated March 31, 2010 has
25, 2014.
The remuneration paid to George Thomas Muthoot for the financial year ended March 31, 2017 is ` 880.00
lakhs.
George Jacob Muthoot was appointed for a period of 5 years, with effect from April 01, 2010 as the Whole-
dated July 21, 2010 and duly executed employment agreement with the Company dated March 31, 2010. He has
25, 2014.
The remuneration paid to George Jacob Muthoot for the financial year ended March 31, 2017 is ` 880.00 lakhs.
George Alexander Muthoot was appointed for a period of 5 years, with effect from April 01, 2010 as the
Managing Director of the Company by a resolution of the Board dated March 01, 2010, approval of the
members dated July 21, 2010 and duly executed employment agreement with the Company dated
March 31, 2010. He has been re-appointed as Managing Director of the Company for a period of 5 years with
effect from April 01, 2015 by a resolution passed by the members of the Company at the Annual General
Meeting held on September 25, 2014.
The remuneration paid to George Alexander Muthoot for the financial year ended March 31, 2017 is ` 880.00
lakhs.
The general terms of the employment agreements executed by the Company with Mr. George Alexander
Muthoot, the Managing Director, Mr. M. G. George Muthoot, Mr. George Thomas Muthoot and Mr.
George Jacob Muthoot, the Whole-Time Directors are as under:
S. No. Category Description
Remuneration
1. Basic salary ` 1,000,000.00 per month with such increments as may

be decided by the Board from time to time, subject to a
ceiling of 25% per annum of original basic salary as
stated above.
2. Special allowance ` 1,000,000.00 per month with such increments as may

be decided by the Board from time to time, subject to a
Page | 104
stated above.
3. Annual performance incentive ` 18,000,000.00 per annum or 1% of profit before tax

before charging annual performance incentive
whichever is higher, payable quarterly or at other
intervals, subject to a maximum amount as may be
decided by the Board from time to time within the limit
as stated above.
Perquisites
1. Residential accommodation Company’s owned / hired / leased accommodation or

house rent allowance at 50% of the basic salary in lieu
of Company provided accommodation.
2. Expenses relating to residential accommodation Reimbursement of expenses on actuals not exceeding

the basic salary, pertaining to gas, fuel, water, electricity
and telephones as also reasonable reimbursement of
upkeep and maintenance expenses in respect of
residential accommodation.
3. Others Other perquisites not exceeding the basic salary, such as

furnishing of residential accommodation, security
guards at residence, attendants at home, reimbursement
of medical expenses for self and family, travelling
expenses, leave travel allowance for self and family,
club fees, personal accident insurance, provident fund
contribution and superannuation fund, gratuity
contribution, encashment of earned/privilege leave, cars
and conveyance facilities, provision for driver or driver's
salary and other policies and benefits that may be
introduced from time to time by the Company shall be
provided to the Whole time Directors and Managing
Director as per the rules of the Company subject to
approval of the Board.
Alexander M George was appointed with effect from November 05, 2014 as an Additional Director of the
Company by a resolution of the Board dated November 05, 2014. He has been appointed as Whole Time
Director by the members in their annual general meeting dated September 30, 2015.
The remuneration paid to Alexander M George for the financial year ended March 31, 2017 is ` 60.00 lakhs.
Terms and Conditions of Employment of Mr. Alexander M George, Whole Time Director is as follows:
S. No. Category Description
Remuneration
1. Basic salary ` 2,00,000.00 per month with such increments as may be

decided by the Board from time to time, subject to a
stated above.
2. Special allowance ` 2,00,000.00 per month with such increments as may be

decided by the Board from time to time, subject to a
stated above.
3. Annual performance incentive ` 1,200,000.00 per annum or 0.25% of profit before tax
before charging annual performance incentive whichever
is higher, payable quarterly or at other intervals, subject
to a maximum amount as may be decided by the Board
from time to time within the limits stated above.
Perquisites
Page | 105
1. Residential accommodation Company’s owned / hired / leased accommodation or
house rent allowance at 50% of the basic salary in lieu of
Company provided accommodation.
2. Expenses relating to residential accommodation Reimbursement of expenses on actuals not exceeding the
basic salary, pertaining to gas, fuel, water, electricity and
telephones as also reasonable reimbursement of upkeep
and maintenance expenses in respect of residential
accommodation.
3. Others Other perquisites not exceeding the basic salary, such as

furnishing of residential accommodation, security guards
at residence, attendants at home, reimbursement of
medical expenses for self and family, travelling expenses,
leave travel allowance for self and family, club fees,
personal accident insurance, provident fund contribution
and superannuation fund, gratuity contribution,
encashment of earned/privilege leave, cars and
conveyance facilities, provision for driver or driver's
salary and other policies and benefits that may be
introduced from time to time by the Company shall be
provided to the whole time Director as per the rules of the
Company subject to approval of the Board.
Terms and Conditions of Employment of Non-Executive Directors
Subject to powers conferred under Article 105 and 106 of the Articles of Association and pursuant to a
resolution passed at the meeting of the Board of the Company on May 18, 2017 a sitting fees of ` 50,000.00 is
payable to Non-Executive Directors for attending each meeting of the Board and a sitting fees of ` 15,000.00 is
payable to Non-Executive Directors for attending each meeting of a Committee. Further, if any Director is called
upon to advice the Company as an expert or is called upon to perform certain services, the Board is entitled to
pay the director such remuneration as it thinks fit. Save as provided in this section, except for the sitting fees and
any remuneration payable for advising the Company as an expert or for performing certain services, our non-
executive directors are not entitled to any other remuneration from the Company.
In accordance with the resolution of the members dated September 25, 2014, the Directors (excluding the
Managing Director and Whole Time Directors) are entitled to, as Commission, an aggregate sum not exceeding
1% per annum of the net profits of the Company calculated in accordance with the provisions of the Act. Subject
to the above, payments and distribution amongst the Directors shall be at the discretion of the Board and such
payments are payable in respect of the profits of the Company for each financial year.
No remuneration is being paid to any director of the Company by any subsidiary or associate company.
Other understandings and confirmations
Our Directors have confirmed that they have not been identified as wilful defaulters by the RBI or ECGC or any other
governmental authority.
Borrowing powers of the Board
Pursuant to a resolution passed by the shareholders at the AGM held on September 25, 2014, in accordance with
the provisions of the Companies Act, our Board has been authorised to borrow sums of money for the business
of the Company, whether unsecured or secured, in Indian or foreign currency, or by way of issue of
debentures/bonds or any other securities, from time to time, from any banks/financial institutions or any other
institutions(s), firms, body corporate(s) or other persons, in India or abroad, apart from temporary loans
obtained/ to be obtained from the Company’s bankers in the ordinary course of business, provided that the
sum(s) so borrowed under this resolutions and remaining outstanding at any time shall not exceed the aggregate
of ` 500,000 million in excess of and in addition to the paid up capital and free reserves of the Company for the
time being.
Page | 106
Interest of the Directors
All our Directors, including Independent Directors, may be deemed to be interested to the extent of fees, if any,
payable to them for attending meetings of the Board or a committee thereof, to the extent of other remuneration
and reimbursement of expenses payable to them pursuant to our Articles of Association. In addition, save for our
Independent Directors, our Directors would be deemed to be interested to the extent of interest receivable on
loans advanced by the Directors, rent received from the Company for lease of immovable properties owned by
Directors and to the extent of remuneration paid to them for services rendered as officers of the Company.
Our Directors may also be deemed to be interested to the extent of Equity Shares, if any, held by them and also
to the extent of any dividend payable to them and other distributions in respect of the said Equity Shares. Our
Directors, excluding independent directors, may also be regarded as interested in the Equity Shares, if any, held
by the companies, firms and trusts, in which they are interested as directors, members, partners or trustees and
promoters.
Some of our Directors may be deemed to be interested to the extent of consideration received/paid or any loans
or advances provided to any body corporate, including companies, firms, and trusts, in which they are interested
as directors, members, partners or trustees. For details, refer “Financial Information” beginning on page A1 of
Except as disclosed hereinabove and the section titled “Risk Factors” on page 11 of this Draft Shelf Prospectus,
the Directors do not have an interest in any venture that is involved in any activities similar to those conducted
by the Company.
Except as stated in Annexure A titled ‘Financial Information’ and to the extent of compensation and commission
if any, and their shareholding in the Company, our Directors do not have any other interest in our business.
Our Directors have no interest in any property acquired or proposed to be acquired by the Company in the
preceding two years of filing this Draft Shelf Prospectus with the Designated Stock Exchange nor do they have
any interest in any transaction regarding the acquisition of land, construction of buildings and supply of
machinery, etc. with respect to the Company. No benefit/interest will accrue to our Promoters/Directors out of
the objects of the issue. Further, our Directors have no interest in the promotion of the Company.
M.G. George Muthoot, George Thomas Muthoot, George Jacob Muthoot and George Alexander Muthoot, are
our Promoters as well as Non-Independent, Executive Directors.
Debenture/Subordinated Debt holding of Directors:
Details of the debentures/subordinated debts held in our Company by our Directors, as on March 31, 2017 are
provided below:
The details of secured non-convertible debentures of the face value of ` 1,000 each held by the directors of the
Company is set out below:
Name of Director Number of Secured non convertible debentures Amount ( in ` Million)
ALEXANDER M GEORGE 30,310 30.31
The details of subordinated debts of the face value of ` 1,000 each held by the directors of the Company is set
out below:
Name of Director Number of Subordinated Debts Amount ( in ` Million)
GEORGE ALEXANDER MUTHOOT 262 0.26
Changes in the Directors of our Company during the last three years:
The Changes in the Board of Directors of our Company in the three years preceding the date of this Draft Shelf
Prospectus are as follows:
Page | 107
Name Designation DIN Date of appointment Date of resignation Remarks
Pratip Independent 00915201 September 20, 2017 March 09, 2018 Resignation
Chaudhuri Director
Pratip Independent 00915201 September 20, 2017 NA Appointment
Chaudhuri Director
Jacob Benjamin Independent 07901232 September 20, 2017 NA Appointment
Koshy Director
Jose Mathew Independent 00023232 September 20, 2017 NA Appointment
Director
Justice K John Independent 00371128 September 20, 2008 September 20, 2017 Retired
Mathew Director
Alexander M Whole-time 00938073 November 5, 2014 NA Appointment
George Director
Pamela Anna Independent 00742735 November 5, 2014 NA Appointment
Mathew Director
K George John Director 00951332 September 27,2013 NA Appointment
Shareholding of Directors
As per our Articles of Association, our Directors are not required to hold any qualification Equity Shares in the
Company.
Details of the shares held in our Company by our Directors, as on December 31, 2017 are provided in the table
given below:
S. No. Name of Director No. of Shares Percentage Shareholding(%) in the

total Share Capital
1. M.G. George Muthoot 46,551,632 11.6404

2. George Thomas Muthoot 43,630,900 10.9101
3. George Jacob Muthoot 43,630,900 10.9101
4. George Alexander Muthoot 43,630,900 10.9101
5. Alexander M George 6,772,500 1.6935
6. George Joseph 1,134 Negligible
Total 184,217,966 46.0641
Our Directors do not hold any shares (voting rights) in any subsidiary or associate company of the Company.
Corporate Governance
We are in compliance with the requirements of corporate governance as mandated in Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, particularly those in
relation to the composition of the Board of Directors, constitution of committees such as audit committee,
remuneration committee and investor/shareholders grievance committee. The Board has laid down a Code of
Conduct for all Board members and senior management of the Company and the same is posted on the web site
of the Company in accordance with the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015. In addition, pursuant to a RBI Circular dated May 08, 2007
(including modifications made from time to time), all NBFC-ND-SIs are required to adhere to certain corporate
governance norms including constitution of an audit committee, a nomination committee, a risk management
committee and certain other norms in connection with disclosure and transparency and connected lending. We
have complied with these corporate governance requirements.
Currently our Board has eleven Directors, and the Chairman of the Board is an Executive Director. In
compliance with the requirements of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, our Board has an optimum combination of executive and non-
executive directors consisting of more than 50% Independent Directors. None of the Directors on the Board are
members of more than ten committees or Chairman of more than five Committees across all companies in which
they are directors as required under the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015. Our Board has constituted the following committees:
(a) Audit Committee;
Page | 108
(b) Stakeholder Relationship Committee;
(c) Asset Liability Management Committee;
(d) Risk Management Committee;
(e) Nomination and Remuneration Committee;
(f) NCD Public Issue Committee; and
(g) CSR and Business Responsibility Committee
Audit Committee
The Audit Committee of our Board was reconstituted by our Directors by a board resolution dated
November 08, 2017 pursuant to Section 177 of the Companies Act 2013. The Audit Committee comprises of:
Name of the Director Designation in the Committee Nature of Directorship
George Joseph Chairman Independent Director

John K Paul Member Independent Director
Jose Mathew Member Independent Director
George Alexander Muthoot Member Managing Director
Terms of reference of the Audit Committee include:
 Oversight of the company’s financial reporting process and the disclosure of its financial information to
ensure that the financial statement is correct, sufficient and credible.
 Recommending to the Board, the appointment, re-appointment and, if required, the replacement or
removal of the statutory auditor and the fixation of audit fees.
 Reviewing, with the management, the annual financial statements and Auditors Report thereon before
submission to the board for approval, with particular reference to:
 Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s
report and other matters.
 Changes, if any, in accounting policies and practices and reasons for the same.
 Major accounting entries involving estimates based on the exercise of judgment by management.
 Significant adjustments made in the financial statements arising out of audit findings.
 Compliance with listing and other legal requirements relating to financial statements.
 Disclosure of any related party transactions.
 Qualifications in the draft audit report.
 Reviewing, with the management, the quarterly financial statements before submission to the board for
approval.
 Reviewing, with the management, the statement of uses / application of funds raised through an issue
(public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other
than those stated in the offer document/Draft Shelf Prospectus/notice and the report submitted by the
monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making
appropriate recommendations to the Board to take up steps in this matter.
 Reviewing, with the management, performance of statutory and internal auditors, evaluation of the
internal control systems including internal financial controls and risk management.
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 Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit
department, staffing and seniority of the official heading the department, reporting structure coverage
and frequency of internal audit.
 Discussion with internal auditors on any significant findings and follow up there on.
 Reviewing the findings of any internal investigations by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting
the matter to the board.
 Discussion with statutory auditors before the audit commences, about the nature and scope of audit as
well as post-audit discussion to ascertain any area of concern.
 To look into the reasons for substantial defaults in the payment to the debenture holders, shareholders
(in case of non-payment of declared dividends) and creditors.
 To review the functioning of the Whistle Blower mechanism, in case the same exists.
 To approve the appointment of Chief Financial Officer, if any.
 Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
 Approval or any subsequent modification of transactions of the Company with related parties.
 Valuation of undertakings or assets of the Company, wherever it is necessary.
Stakeholder Relationship Committee
The Stakeholder Relationship Committee was reconstituted by our Directors by a board resolution dated
November 08, 2017 and comprises of:
Jacob Benjamin Koshy Chairman Independent Director

George Thomas Muthoot Member Whole Time Director
Terms of reference of the Stakeholder Relationship Committee include the following:
 To approve or otherwise deal with applications for transfer, transmission, transposition and mutation of
shares and certificates including duplicate, split, sub-division or consolidation of certificates and to deal
with all related matters; and also to deal with all the matters related to de-materialisation or re-
materialisation of shares, change in the beneficial holders of de-mat shares and granting of necessary
approvals wherever required.
 To look into and redress shareholders / investors grievances relating to:
 Transfer/Transmission of securities
 Non-receipt of interest and declared dividends
 Non-receipt of annual reports
 All such complaints directly concerning the security holders as stakeholders of the Company
 Any such matters that may be considered necessary in relation to security holders and investors of the
Company.
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Nomination and Remuneration Committee
The Nomination and Remuneration Committee was reconstituted by our Directors by a board resolution dated
November 08, 2017 and comprises of the following directors:
John K Paul Chairman Independent Director

Kariath George John Member Independent Director
Terms of reference of the Remuneration Committee include the following:
 Identifying persons who are qualified to become Directors and who may be appointed in Senior
Management in accordance with Criteria as laid down and recommend to Board their appointment and
removal.
 Ensure persons proposed to be appointed on the Board do not suffer any disqualifications for being
appointed as a director under the Companies Act, 2013.
 Ensure that the proposed appointees have given their consent in writing to the Company;
 Review and carry out every Director’s performance, the structure, size and composition including
skills, knowledge and experience required of the Board compared to its current position and make
recommendations to the Board with regard to any changes;
 Plan for the succession planning for directors in the course of its work, taking into account the
challenges and opportunities facing the Company, and what skills and expertise are therefore needed on
the Board in the future;
 Be responsible for identifying and nominating for the approval of the Board, candidates to fill board
vacancies as and when they arise;
 Keep under review the leadership needs of the organization, both executive and non-executive, with a
view to ensuring the continued ability of the organization to compete efficiently in the market place;
and
 Ensure that on appointment to the Board, non-executive directors receive a formal letter of appointment
setting out clearly what is expected of them in terms of committee services and involvement outside
board meetings
 Determine and agree with the Board the framework for broad policies for criteria for determining
qualifications, positive attitudes and independence of a director and recommend to the Board policies ,
relating to remuneration for the Directors, Key Managerial Personnel and other employees.
 Review the on-going appropriateness and relevance of the remuneration policy.
 Ensure that contractual terms of the agreement that Company enters into with Directors as part of their
employment in the Company are fair to the individual and the Company.
 Ensure that all provisions regarding disclosure of remuneration and Remuneration Policy as required
under the Companies Act, 2013 or such other acts, rules, regulations or guidelines are complied with.
 Formulate ESOP plans and decide on future grants.
 Formulate terms and conditions for a suitable Employee Stock Option Scheme and to decide on
followings under Employee Stock Option Schemes of the Company:
a) the quantum of option to be granted under ESOP Scheme(s) per employee and in aggregate;
Page | 111
b) the condition under which option vested in employees may lapse in case of termination of
employment for misconduct;
c) the exercise period within which the employee should exercise the option and that option would
lapse on failure to exercise the option within the exercise period;
d) the specified time period within which the employee shall exercise the vested options in the event
of termination or resignation of an employee;
e) the right of an employee to exercise all the options vested in him at one time or at various points of
time within the exercise period;
f) the procedure for making a fair and reasonable adjustment to the number of options and to the
exercise price in case of rights issues, bonus issues and other corporate actions;
g) the grant, vest and exercise of option in case of employees who are on long leave; and
h) the procedure for cashless exercise of options.
 Any other matter, which may be relevant for administration of ESOP Scheme including allotment of
shares pursuant to exercise of options from time to time.
Asset Liability Management Committee
The Asset Liability Management Committee was reconstituted by a board resolution dated November 08, 2017
and comprises of the following directors:

Terms of reference of the Asset Liability Management Committee includes the following:
 To ensure that the asset liability management strategy and Company’s market risk management policies
are implemented;
 To provide a strategic framework to identify, asses, quality and manage market risk, liquidity risk,
interest rate risk, price risk etc.
 To ensure adherence to the risk limits;
 To articulate current interest rate view of the Company and base its decisions on future business
strategy on this view;
 To decide product pricing, desired maturity profile of assets and liabilities and also the mix of
incremental assets and liabilities such as fixed versus floating rate funds, domestic vs. foreign currency
funds etc.;
 To monitor the risk levels of the Company;
 To review the results of and progress in implementation of the decisions;
 To report to the Board of Directors on the adequacy of the Company’s systems and controls for
managing risk, and for recommending any changes or improvements, as necessary;
 To ensure that all activities are within the overall regulatory framework and government regulation;
 To ensure proper management within defined control parameters set by the Board, of the Company’s
net interest income and its structural exposure to movements in external environment;
 To review and assess the management of funding undertaken by Company and formulate appropriate
actions;
 To review and assess the management of the Company’s liquidity with the framework and policies
established by the Board, as the case may be, and formulate appropriate actions to be taken;
Page | 112
 To consider the significance of ALM of any changes in customer behaviour and formulate appropriate
actions;
 To consider, if appropriate, the composition of the Company’s capital structure, taking account of
future regulatory requirements and rating agency views and formulate actions wherever required
Risk Management Committee
Risk Management Committee was reconstituted by a board resolution dated November 08, 2017 and comprises
of the following directors:

The Risk Management Committee shall have overall responsibility for overseeing the risk management activities
of the Company, approving appropriate risk management procedures and measurement methodologies across the
organization as well as identification and management of strategic business risks. Terms of reference of Risk
Management Committee includes the following:
 To champion and promote the enterprise risk management and to ensure that the risk management
process and culture are embedded throughout the Company.
 To ensure the implementation of the objectives outlined in the Risk Management Policy and
compliance with them.
 To provide adequate information to the Board on key risk management matters.
 To identify new strategic risks including corporate matters. E.g. Regulatory, business development etc.
 To monitor and manage the operational risks arising from IT applications.
 Oversight of the Information Security Officers/ Team
 To oversee the processes for preventing, detecting, analysing and responding to information security
incidents.
NCD Public Issue Committee
The NCD Public Issue Committee constituted by our Directors by a board resolution dated July 25, 2011 and
comprises of:
George Alexander Muthoot Chairman Managing Director

George Thomas Muthoot Member Whole Time Director
George Jacob Muthoot Member Whole Time Director
Terms of reference of the NCD Public Issue Committee include the following:
 To determine and approve the terms and conditions and nature of the debentures to be issued;
 To determine and approve the nature/type/pricing of the issue;
 To approve the Draft Shelf Prospectus, Shelf Prospectus and/or any offer document(s) and issue
thereof; and
 To approve all other matters relating to the issue and do all such acts, deeds, matters and things as it
may, at its discretion, deem necessary for such purpose including without limitation the utilisation of
Page | 113
the issue proceeds.
 To approve rematerialisation/dematerialisation of NCD’s, transfer and transmission of NCD’s and

issuance of duplicate NCD certificates issued through Public Issue.
CSR and Business Responsibility Committee
The CSR Committee constituted by our Directors by a board resolution dated August 11, 2014 was re-
constituted as the CSR & Business Responsibility Committee by a board resolution dated August 08, 2017 and
comprises of:
K George John Chairman Independent Director

Terms of reference of the CSR Committee include the following:
 To do all acts and deeds as required under Section 135 of Companies Act, 2013 read with Relevant Rules;
 To approve, adopt and alter the Policy Documents for CSR and Business Responsibility Committee
activities of the Company;
 To supervise, monitor and Direct CSR and Business Responsibility Committee activities of the Company
and approving Budgets, sanctioning the amount required for various CSR and Business Responsibility
Activities;
 To authorize or delegate any of its power for administration purposes/expenses related to day to day
activities of Company for CSR and Business Responsibility to any member of the Committee;
 To review CSR and Business Responsibility activities of the Company on a regular basis as decided by the
Committee on basis of CSR and Business Responsibility policy and other guidelines as adopted by the
Committee; and
 To do all acts and deeds as required for the purpose of Business Responsibility reporting and required
supervision, monitoring and direction.
Relatives of directors
The following persons, who are relatives of directors were appointed to an office or place of profit in our
Company
 George M Jacob – Executive Director

 George M Alexander- Executive Director
Page | 114
OUR PROMOTERS
Profiles of our Promoters
The following individuals are the Promoters of our Company:
1. M.G. George Muthoot;

2. George Thomas Muthoot;
3. George Jacob Muthoot; and
4. George Alexander Muthoot.
The details of our Promoters are provided below:
M.G. George Muthoot George Jacob Muthoot
Voter ID Number: ARE0335588 Voter ID Number: KL/20/134/123133

Driving License: P03092001281725 Driving License: 3/190/1984
George Thomas Muthoot George Alexander Muthoot
Voter ID Number: KL/13/090/048241 Voter ID Number: BXD1345453

Driving License: 5/2968/1983 Driving License: 3/730/1973
For additional details on the age, background, nationality, personal address, educational qualifications, experience,
experience in the business of our Company, positions/ posts held in the past, terms of appointment as Directors and
other directorships of our Promoters, see the section titled “Our Management” at page 98 of this Draft Shelf
Prospectus.
Other understandings and confirmations
Our Promoters and relatives of the Promoters (as per the Companies Act, 2013) have confirmed that they have not been
identified as willful defaulters by the RBI or any other governmental authority.
No violations of securities laws have been committed by our Promoters in the past or are currently pending against
them. None of our Promoters or directors are debarred or prohibited from accessing the capital markets or restrained
from buying, selling, or dealing in securities under any order or directions passed for any reasons by the SEBI or any
other authority or refused listing of any of the securities issued by any such entity by any stock exchange in India or
abroad.
Common Pursuits of Promoters and group companies
Our Promoters have interests in the following entities that are engaged in businesses similar to ours and this may result
in potential conflicts of interest with our Company.
1. Muthoot Vehicle & Asset Finance Limited

3. Emgee Muthoot Benefit Fund (India) Limited
5. Muthoot Gold Funds Limited
6. Muthoot Synergy Fund Limited
7. Muthoot M George Chits (India) Limited
8. Muthoot Finance UK Limited
Our Company has not adopted any measures for mitigating such conflict situations. For further details, see section titled
Page | 115
“Risk Factors” at page 11 of this Draft Shelf Prospectus. For further details on the related party transactions, to the
extent of which our Company is involved, see Annexure A titled “Financial Information” at page A1 of this Draft
Shelf Prospectus.
Interest of Promoters in our Company
Except as disclosed below, other than as our shareholders, Promoters, to the extent of the dividend that may be declared
by our Company and to the extent of the remuneration received by them in their capacity as Executive Directors, to the
extent of interest receivable on loans advanced/subordinated debts, rent received from our Company for lease of
immovable properties owned by Promoters, our Promoters do not have any other interest in our Company. Further, our
Promoters have given certain personal guarantees in relation to loan facilities availed by our Company. For details see
the section titled “Disclosures on Existing Financial Indebtedness” at page 120 of this Draft Shelf Prospectus.
The details of the properties leased out by our Promoters are as follows:
Name of Promoter Nature of interest

M. G. George Muthoot 1. Agreement dated April 4, 2009 between our Company and, M. G. George Muthoot,
George Thomas Muthoot, George Jacob Muthoot and George Alexander Muthoot
for lease of the Hauz Khas Branch, Delhi.
2. Agreement dated April 4, 2009 between our Company and M. G. George Muthoot,
for the lease of Andheri Branch, Mumbai.
for lease of the Vashi Branch, Mumbai.
for lease of the Edapallykotta Branch.
for lease of the Kozhancherry Branch, Kerala.
6. Agreement dated March 1, 2010 between our Company and M.G George Muthoot,
George Alexander Muthoot, George Jacob Muthoot, George Thomas Muthoot for
the lease of the Karuganappally Branch, Kerala.
7. Agreement dated March 1, 2010 between our Company and, M. G. George

Muthoot, George Thomas Muthoot, George Jacob Muthoot and George Alexander
Muthoot for lease of the Chavara Branch, Kerala.
George Thomas Muthoot 1. Agreement dated April 4, 2009 between our Company and, M. G. George Muthoot,
2. Agreement dated April 4, 2009 between our Company and Muthoot Properties &
Investments represented by George Jacob Muthoot, for lease of Kottayam zonal
office and regional office.
3. Agreement date April 4, 2009 between our Company and Muthoot Properties &
Investments represented by George Jacob Muthoot, for lease of the Kollan regional
office and Vadayattukota branch.
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9. Agreement dated April 4, 2009 between our Company and George Thomas
Muthoot for lease of the guest house of our Company in Cochin.
George Jacob Muthoot 1. Agreement dated April 4, 2009 between our Company and, M. G. George Muthoot,
6. Agreement dated March 1, 2010 between and our Company and George Jacob
Muthoot for the lease of the Kulasekharam Branch, Tamil Nadu.
8. Agreement dated April 4, 2009 between our Company and George Jacob Muthoot
for lease of the Thycadu Branch, Kerala.

10. Agreement dated April 4, 2009 between George Jacob Muthoot and our Company
for lease of zonal office, Vazhuthacad branch.
for lease of the Vadayattukota branch.
for lease of the Chalakunnu branch.
for lease of the Kottayam zonal office
George Alexander Muthoot 1. Agreement dated April 4, 2009 between our Company and, M. G. George Muthoot,
Page | 117
7. Agreement dated April 4, 2009 between our Company and George Alexander
Muthoot for lease of the guest house of our Company in Mumbai.

Our Promoters do not propose to subscribe to the Issue.
Details of Shares allotted to our Promoters during the last three Financial Years
No Shares have been allotted to our Promoters during the last three Financial Years.
As on 04th March, 2017, the promoters of the Company, Mr. M G George Muthoot, George Alexander Muthoot,
Mr. George Jacob Muthoot and Mr. George Thomas Muthoot executed transfer of shares (off market transfer as
gift; no consideration) to their relatives as given below:
Name of promoters (Transferor) No of shares Name of shareholder (Transferee)

transferred
M G George Muthoot 6,66,750 Valsa Kurien
1,66,750 Leela Zachariah
George Alexander Muthoot 6,66,750 Valsa Kurien
George Jacob Muthoot 6,66,750 Valsa Kurien
George Thomas Muthoot 6,66,750 Valsa Kurien
Post transfer, promoters and promoter group holds 73.7163% of the total equity share capital of the Company.
Shareholding Pattern of our Promoters as on December 31, 2017
S. No. Name of the Total No. of Percentage of No. of Shares Percentage of

Shareholder Equity Shares* shareholding(%) to pledged Shares pledged
the total share
capital of our
Company
1. M.G. George 46551632 11.6404
Muthoot
2. George Thomas 43630900 10.9101
Muthoot
3. George Jacob 43630900 10.9101
Muthoot
Page | 118
4. George Alexander 43630900 10.9101
Muthoot
Total 177,444,332 44.3706
*All Equity Shares held by the Promoters are in dematerialised form.
Interest of our Promoters in property, land and construction
Except as stated in Annexure A titled “Financial Information” at page A1 of this Draft Shelf Prospectus, our
Promoters do not have any interest in any property acquired by our Company within two years preceding the date of
filing of this Draft Shelf Prospectus or any property proposed to be acquired by our Company or in any transaction with
respect to the acquisition of land, construction of building or supply of machinery.
Payment of benefits to our Promoters during the last two years
Except as stated in this section titled “Our Promoters” and Annexure A titled “Financial Information” at pages 115 and
A1 of this Draft Shelf Prospectus, respectively, no amounts or benefits has been paid or given or intended to be paid or
given to our Promoters within the two years preceding the date of filing of the Draft Shelf Prospectus. As on the date of
this Draft Shelf Prospectus, except as stated in the section titled “Our Management” at page 98 of this Draft Shelf
Prospectus, there is no bonus or profit sharing plan for our Promoters.
Page | 119
DISCLOSURES ON EXISTING FINANCIAL INDEBTEDNESS
A. Details of Secured Borrowings:
Our Company’s secured borrowings as on December 31, 2017 amount to ` 176,998.42 million. The details
of the individual borrowings are set out below:
1. Cash Credit facilities availed by the Company

(` in millions)
Amount outstanding as on
S. No. Bank Date of Sanction Amount sanctioned
December 31, 2017
Dhanalaxmi Bank
1. November 14,2017 400.00 3.33
Limited
2. Indus Ind Bank Limited September 12, 2016 400.00 50.22
3. IDBI Bank Limited September 12,2017 3,000.00 1036.37
4. Axis Bank Limited May 17,2017 1,750.00 1698.30
5. Union Bank of India March 30,2017 5000.00 4975.52
6. Syndicate Bank March 06,2017 1,950.00 1880.88
Kotak Mahindra Bank
7. August 09,2017 250.00 0.00
Limited
8. Punjab National Bank September 02,2017 3,000.00 2,903.18
9. Central Bank of India March 04,2017 1500.00 0.00
10. Andhra Bank March 15,2017 3,500.00 3014.01
11. UCO Bank Limited September 15,2017 3,600.00 3565.32
12. Punjab and Sind Bank June 29,2017 1,000.00 946.95
Oriental Bank of
13. November 02,2017 1000.00 43.66
Commerce
14. State Bank of India March 28,2017 100.00 16.52
15. HDFC Bank Limited June 29,2017 220.00 99.09
16. Federal Bank Limited August 21,2017 400.00 308.62
17. United Bank of India March 09,2017 2500.00 11.26
18. Vijaya Bank December 07, 2015 1,400 0.31
19. Corporation Bank May 18, 2016 1,000.00 896.69
20. Canara Bank September 27,2017 1,500,.00 1,480.99
21. Bank of Baroda August 01,2017 2,000.00 1,937.18
22. Karur Vysya Bank March 03,2017 500.00 0.00
23. Dena Bank October 21, 2016 1000.00 0.00
TOTAL 36,970.00 24,868.40
[All the facilities obtained above have been secured by a first pari passu floating charge on current assets, book debts, loans and advances and
receivables including gold loan receivables.]
2. Short Term Loans availed by the Company*

(` in millions)
S. No. Bank Date of sanction Amount sanctioned Amount outstanding as on

December 31, 2017
1. HDFC Bank Limited June 29, 2017 6,780.00 6,750.00

2. Axis Bank Limited May 17, 2017 2,000.00 2,000.00
3. State Bank of India (E-SBT) March 30, 2016 2,750.00 2,750.00
4. Yes Bank Limited October 17, 2017 5,000.00 1,500.00
5. Punjab National Bank September 02, 2017 3,000.00 3,000.00
6. Kotak Mahindra Bank Limited August 09, 2017 4,750.00
4,750.00
7. ICICI Bank Limited November 23, 2017 10,000.00 10,000.00
8. Karur Vysya Bank March 03, 2017 1,500.00 1,500.00

9. Syndicate Bank March 06, 2017 9,500.00 9,500.00
10. Jammu and Kashmir Bank Limited September 28, 2017 2,500.00 2,500.00
11. State Bank of India March 28, 2017 8,400.00 8,400.00
12. State Bank of India (E-SBP) March 14, 2016 3,000.00 3,000.00
13. Corporation Bank May 18, 2016 3,000.00 3,000.00
14. State Bank of India (E-SBM) April 15,2016 2,000.00 2,000.00
Page | 120
15. IDBI Bank Ltd September 12, 2017 5,000.00 5,000.00
16. United Bank of India March 09, 2017 1,000.00 1,000.00
17. Punjab and Sind Bank June 29,2017 1,000.00 1,000.00

18. Federal Bank Limited August 21, 2017 3,500.00 3,500.00
19. Union Bank of India March 30, 2017 1,000.00 1,000.00
20. Oriental Bank of Commerce November 02, 2017 5,000.00 3,500.00

21. Bank of Baroda August 01, 2017 3,000.00 3,000.00
22. Central Bank of India March 04, 2017 4,500.00 3,000.00
23. UCO Bank September 15,2017 2,400.00 2,400.00
24. South Indian Bank June 28,2017 2,000.00 2,000.00
25. Dena Bank October 21, 2016 1,500.00 1,500.00
26. IndusInd Bank September 12, 2016 4,600.00 2,500.00
27. Andhra Bank March 15, 2017 3,500.00 3,500.00
TOTAL 1,02,180.00 93,550.00
[All the facilities obtained above have been secured by a first pari passu floating charge on current assets, book debts, loans and advances
and receivables including gold loan receivables.]
3. Long term loans availed by the Company*
These long term loans have been considered as term loans for the purpose of Rule 5(3) of the Companies
(Prospectus and Allotment of Securities) Rules, 2014. There have been no defaults or rescheduling in any
of the loans set out below:
S. Bank Date of sanction Amount Amount outstanding Repayment schedule and

No. sanctioned as on Pre-payment penalty, if
(` in millions) December 31, 2017 any
(` in millions)
1. Toyota Financial Services October 27, 2015 1.78 0.54 Repayable in monthly
India Ltd(b) installments for 36 months
2. Toyota Financial Services November 3.16 1.05 Repayable in monthly
India Ltd(b) 28, 2015 installments for 36 months
3. Oriental Bank of February 10, 2017 2,000.00 2,000.00 Tenor: 24 months.
Commerce(a) Repayable in 4 equal
quarterly instalments after
moratorium period of 12
months from the date of
availment of loan.
TOTAL 2004.94 2001.59
*(a) Secured by first pari passu floating charge on current assets, book debts, loans and advances and receivables including gold loan
receivables.
*(b) Secured by specific charge on vehicles.
4. Overdraft against deposits with Banks
Our Company has overdraft facility on the security of fixed deposits maintained with banks aggregating to
` 0.81 million as on December 31, 2017
5. Secured Non-Convertible Debentures
5.1 Our Company has issued to retail investors on private placement basis, secured redeemable non- convertible
debentures of face value of ` 1,000.00 each under various series of which ` 11,419.73 million is cumulatively
outstanding as on December 31, 2017, the details of which are set forth below:
Debenture Tenor period Coupon / Amounts outstanding as on Dates of Allotment Redemption Date/
series of maturity Effective Yield (in December 31, 2017 (` in Schedule
percentage %) millions)
AE 90 months 10.83-12.00 0.03 July 15, 2004 to January 15, 2012 to

September 30, 2004 March 31, 2012
Page | 121
AS 60 months 8.50-9.00 0.15 May 01, 2006 to May 01, 2011 to

August 12, 2006 August 12, 2011
AT 60 months 9.00-9.50 0.14 August 13, 2006 to August 13, 2011 to
December 31, 2006 December 31, 2011
AU 60 months 9.00.-11.00 1.24 January 01, 2007 to January 01, 2012 to
March 31, 2007 March 31, 2012
AV 60 months 10.50-11.00 0.12 April 01, 2007 to April 01, 2012 to
June 30, 2007 June 30, 2012
AW 60 months 10.50-11.00 0.29 July 01, 2007 to July 01, 2012 to
September 30, 2007 September 30, 2012
AX 60 months 10.50-11.00 0.12 October 01, 2007 to October 01, 2012 to
AY 60 months 10.50-11.00 0.05 January 01, 2008 to January 01, 2013 to
March 31, 2008 March 31, 2013
AZ 60 months 10.50-11.00 0.37 April 01, 2008 to April 01, 2013 to
July 02, 2008 July 02, 2013
BB 60 months 11.00-11.50 0.11 July 10, 2008 to July 10, 2013 to
BC 60 months 11.00-12.00 0.35 September 22, 2008 September 22, 2013
to to
BD 60 months 11.00-12.00 2.81 January 01, 2009 to January 01, 2014 to
March 31, 2009 March 31, 2014
BE 60 months 10.50-11.50 0.41 April 01, 2009 to April 01, 2014 to
June 30, 2009 June 30, 2014
BF 60 months 10.50 1.51 July 01, 2009 to July 01, 2014 to
BG 60 months 9.50-10.50 0.95 October 01, 2009 to October 01, 2014 to
BH 60 months 9.00-10.50 1.91 January 01, 2010 to January 01, 2015 to
March 31, 2010 March 31, 2015
BI 60 months 9.00-10.50 0.84 April 01, 2010 to April 01, 2015 to
June 30, 2010 June 30, 2015
BJ 60 months 9.50-11.00 3.20 July 01, 2010 to July 01, 2015 to
BK 60 months 9.50-11.50 3.06 October 01, 2010 to October 01, 2015 to
BL 60 months 10.00-11.50 5.72 January 01, 2011 to January 01, 2016 to
March 31, 2011 March 31, 2016
BM 60 months 11.00-12.00 6.66 April 01, 2011 to April 01, 2016 to
June 30, 2011 June 30, 2016
BN 60 months 11.00-12.00 11.60 July 01, 2011 to July 01, 2016 to
BO 60 months 11.00-12.00 10.03 September 19, 2011 September 19, 2016
to to November
November 30, 2011 30, 2016
BP 60 months 11.50-12.50 11.66 December 01, 2011 December 01, 2016
to January 22, 2012 to January 22, 2017
BQ 60 months 11.50-12.50 20.00 January 23, 2012 to January 23, 2017 to
February 29, 2012 February 28, 2017
BR 60 months 11.50-12.50 32.57 March 01, 2012 to March 01, 2017 to
April 30, 2012 April 30, 2017
BS 60 months 11.50-12.50 14.16 May 01, 2012 to May 01,2017 to May
May 20, 2012 20,2017
BT 60 months 11.50-12.50 25.11 May 21, 2012 to May 21,2017 to June
June 30, 2012 30,2017
BU 60 months 11.50-12.50 55.88 July 01, 2012 to July 1,2017 to
August 16, 2012 August 16,2017
BV 60 months 11.50-12.50 85.82 August 17, 2012 to August 17, 2017 to
September 30, 2012 September 30,2017
Page | 122
BW 60 months 11.50-12.50 184.24 October 01, 2012 to October 01 ,2017 to

November 25, 2012 November 25,2017
BX 60 months 10.50-12.50 1167.63 November 26, 2012 November 26,2017
to January 17, 2013 to January 17,2018
BY 120 months 10.50-12.50 2186.17 January 18, 2013 to January 18,2023 to
February 28, 2013 February 28,2023
BZ 120 months 10.50-12.50 2294.34 March 01, 2013 to March 01, 2023 to
April 17, 2013 April 17, 2023
CA 120 months 10.50-12.50 2304.68 April 18, 2013 to April 18, 2023 to
June 23, 2013 June 23, 2023
CB 120 months 10.50-12.50 1362.33 June 24, 2013 to June 24, 2023 to
July 07, 2013 July 07, 2023
CC 120 months 10.50-12.50 43 July 08, 2013 to July 08, 2023 to
July 31, 2013 July 31, 2023
CD 120 months 10.50-12.50 36 July 31, 2013 to July 31, 2023 to
August 10, 2013 August 10, 2023
CE 120 months 10.50-12.50 33.50 August 12, 2013 to August 12, 2023 to
August 31, 2013 August 31, 2023
CF 120 months 10.50-12.50 25.50 August 31, 2013 to August 31, 2023 to
CG 120 months 10.50-12.50 25.50 September 06, 2013 September 06, 2023
to to September
September 27, 2013 27,2023
CH 120 months 10.50-12.50 64.00 September 27,2013 September 27,2023
to October 09,2013 to October 09,2023
CI 120 months 10.50-12.50 37.00 October 09,2013 to October 09,2023 to
October 29,2013 October 29,2023
CJ 120 months 10.50-12.50 29.50 October 29,2013 to October 29,2023 to
November 18,2013 November 18,2023
CK 120 months 10.50-12.50 24.00 November 18,2013 November 18,2023
to to December 05,2023
December 05,2013
CL 120 months 10.50-12.50 36.50 December 05,2013 December 05,2023 to
to December December 24,2023
24,2013
CM 120 months 10.50-12.50 37.50 December 24,2013 December 24,2023 to
to January 03,2014 January 03,2024
CN 120 months 10.50-12.50 80.00 January 03,2014 to January 03,2024 to
January 10,2014 January 10,2024
CO 120 months 10.50-12.50 127.50 January 10,2014 to January 10,2024 to
January 20,2014 January 20,2024
CP 120 months 10.50-12.50 84.00 January 20,2014 to January 10,2024 to
February 04,2014 February 04,2024
CQ 120 months 10.50-12.50 39.50 February 04,2014 to February 04,2024 to
February 07,2014 February 07,2024
CR 120 months 10.50-12.50 22.50 February 07,2014 to February 07,2024 to
February27,2014 February 27,2024
CS 120 months 10.50-12.50 44.50 February 27,2014 to February 27,2024 to
March 14,2014 March14,2024
CT 120 months 10.50-12.50 27.50 March 14,2014 to March 14 2024 to
March 31,2014 March 31,2024
CU 120 months 10.50-12.50 10 March 31,2014 to March 31,2024 to
March 31 2014 March 31,2024
CV 60months 10.00-12.00 72.00 April 24,2014 April 24,2019
CW 60months 10.00-12.00 49.00 May 8,2014 May 8,2019
CY 60 months 9.50-9.75 260.00 February 3,2016 February 3,2021
CZ 60 months 9.25-9.50 415.00 May 4,2016 May 4,2021
TOTAL 11,419.73
* All the above debentures are unrated. These debentures are secured by first pari-passu floating charge on current assets, book debts,
loans & advances and receivables including gold loan receivables and identified immovable properties.
Of the above, ` 951.75 million represents unpaid matured debentures.
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5.2 During the period, the Company made a public issue of secured rated non-convertible debentures listed in
BSE and/or NSE for a maturity period of 2, 3, 5, 6 years, 66 months,400 days, 18 months and 38 months
with an outstanding of ` 45,157.89 million as provided below:*
Debenture Tenor Coupon / Effective Amounts Date of Allotment Redemption Date/ Schedule
Series period of Yield outstanding as on
maturity (in percentage %) December 31, 2017
(` in millions)
PL-IV* 6years 12.25 182.17 November 01, 2012 November 01, 2018
PL-V* 5 years 11.50-12.00 51.76 September 25, 2013 September 25, 2018
PL-VI* 5 years 10.75-11.25-11.50-12.00 39.23 December 04, 2013 December 04, 2018
PL-VII* 5 years 10.75-11.25-11.50-12.00 37.87 February 04, 2014 February 04, 2019
PL-VIII** 5 years 10.25-10.75-11.00-11.50 13.01 April 02, 2014 April 02, 2019
PL-IX** 5 years 10.25-10.75-11.00-11.50 79.61 July 04, 2014 July 04, 2019
PL-X** 5 years 10.25-10.50-11.00-11.25 62.76 September 26, 2014 September 26, 2019
PL-XI** 5 Years 10.00-10.25-10.75-11.00 70.52 December 29, 2014 December 29, 2019
PL-XII** 3 years 9.75-10.00-10.25-10.50 1521.65 April 23.2015 April 23.2018
PL-XII** 5 years 9.50-9.75-10.25-10.50 60.01 April 23,2015 April 23,2020
PL-XIII** 3 years 9.25-9.50-10.00-10.25 2743.35 October 14, 2015 October 14, 2018
PL-XIII** 5 years 8.75-9.00-9.50-9.75 31.97 October 14, 2015 October 14, 2020
PL- 2 years 8.75-9.00-9.50-9.75 1019.67 January 20, 2016 January 20, 2018
XIV***
XIV***
XIV***
PL-XV** 2 years 8.50-8.75-9.25-9.50 1058.72 May 12, 2016 May 12, 2018
PL-XV** 3 years 8.75-9-9.50-9.75 3022.39 May 12, 2016 May 12, 2019
PL-XV** 5 years 8.25-8.50-9.00-9.25 30.09 May 12, 2016 May 12, 2021
PL-XVI* 2 years 8.50-8.75-9.00 2924.42 January 30, 2017 January 30, 2019
PL-XVI** 3 years 8.75-9.00-9.25 8829.01 January 30, 2017 January 30, 2020
PL-XVI* 5 years 8.75-9.00-9.25 936.30 January 30, 2017 January 30, 2022
PL-XVI* 400 days 8.00-8.25 296.70 January 30, 2017 March 06, 2018
PL-XVI* 18 months 8.25-8.50 13.57 January 30, 2017 July 30,2018
PL-XVII* 2 years 8.25-8.50 1350.36 April 24, 2017 April 24, 2019
PL-XVII* 38 months 8.50-8.75 15271.39 April 24, 2017 June 24, 2020
PL-XVII* 5 years 8.75-9.00 2517.38 April 24, 2017 April 24, 2022
PL-XVII* 400 days 8.00 295.06 April 24, 2017 May 29,2018
PL-XVII* 18 months 8.15 65.81 April 24, 2017 October 24,2018
TOTAL 45,157.89
*
Above debentures are rated “CRISIL AA/Stable” by CRISIL Limited and “[ICRA] AA/Stable” by ICRA Limited and is fully secured by first
pari-passu floating charge on current assets, book debts, loans and advances and receivables including gold loan receivables and identified
immovable properties.
**
Above debentures are rated “[ICRA] AA/Stable” by ICRA Limited and is fully secured by first pari-passu floating charge on current
assets, book debts, loans and advances and receivables including gold loan receivables and identified immovable properties.
***
Above debentures are rated “[CRISIL] AA/Stable” by CRISIL Limited and is fully secured by first pari-passu floating charge on current
assets, book debts, loans and advances and receivables including gold loan receivables and identified immovable properties.
B. Details of Unsecured Loans
Our Company’s unsecured borrowings as on December 31, 2017 amount to ` 34,208.47 million. The details of the
individual borrowings are set out below.
1. Subordinated Debts
1.1. Our Company has issued subordinated debts of face value of ` 1,000 each on a private placement basis under
different series of which ` 9,388.62 million is outstanding as on December 31, 2017, the details of which are set
forth below:
Page | 124
Debenture Tenor period of Coupon / Amounts Date of Allotment Redemption Date/
series maturity Effective outstanding as on Schedule
Yield (in December 31 2017
percentage (` in millions)
%)
III 69 months 12.12 0.54 December 15, 2008 to September 15, 2014 to
June 30, 2009 March 30, 2015
III 72 months 12.50 0.23 December 15, 2008 to December 15, 2014 to
June 30, 2009 June 30, 2015
IV 69 months 12.12 1.45 July 01, 2009 to April 01, 2015 to
August 16, 2009 May 16, 2015
IV 72 months 12.50 0.05 July 01, 2009 to July 01, 2015 to
August 16, 2009 August 16, 2015
IV 72 months 11.61 1.22 August 17, 2009 to August 17, 2015 to
V 72 months 11.61 1.23 January 01, 2010 to January 01, 2016 to
June 30, 2010 June 30, 2016
VI 72 months 11.61 3.34 July 01, 2010 to July 01, 2016 to
VII 72 months 11.61 3.63 January 01, 2011 to January 01, 2017 to
February 07, 2011 February 07, 2017
VII 66 months 12.67 2.23 February 08, 2011 to August 08, 2016 to
March 31, 2011 September 30, 2016
VII 66 months 12.67 3.39 April 01, 2011 to June 30, 2011 October 01, 2016 to
December 30 2016
VIII 66 months 12.67 13.83 July 01, 2011 to October January 01, 2017 to April
31, 2011 30, 2017
IX 66 months 12.67-13.39 79.70 November 01,2011 to March May 01,2017 to
31,2012 September 30,2017
X 66 months 12.67-13.39 2239.71 April 01, 2012 to September October 01, 2017 to
30,2012 March 30,2018
XI 66 months 12.67-13.39 4651.42 October 01, 2012 to March April 01, 2018 to
31,2013 September 30,2018
XII 66 months 12.67 1,825.16 April 01,2013 to July 07, 2013 October 01,2018 to
January 07,2019
XIII 66 months 12.67 98.00 July 08,2013 to September January 08,2019 to March
17,2013 17,2019
XIV 66 months 12.67 298.00 September 18,2013 to March 18,2019 to
December 21 ,2013 June 21,2019
XV 66 months 12.67 98.50 December 21, 2013 to June 21, 2019 to
February 17, 2014 August 17, 2019
XVI 66 months 12.67 46.00 February 18,2014 to August 17, 2019 to
March 31,2014 September 30,2019
XVII 72 months 11.61 21.00 May 09,2014 May 09,2020
TOTAL 9388.62
*
All the above Subordinated Debts are unsecured and unrated.
Of the above, 284.05million represents unpaid matured debentures.
1.2. Our Company has issued on private placement basis, rated unsecured, redeemable non-convertible listed
subordinated debts of face value of ` 1,000,000.00 each under various series of which ` 100 million is
cumulatively outstanding as on December 31, 2017 the details of which are set forth below:*
Debenture Tenor period Coupon / Amounts outstanding as on Date of Allotment Redemption Date/
series of maturity Effective December 31, 2017 (` in millions) Schedule
Yield (in
percentage
%)
IA 10 years 12.35 100 March 26, 2013 March 26, 2023

*
Above Subordinated Debts are unsecured and are rated with CRISIL AA/Stable by CRISIL Limited and “[ICRA] AA/Stable” by ICRA
Limited.
1.3. The Company made a public issue of unsecured rated non-convertible debentures listed in BSE in the
nature of Subordinated Debt for a maturity period of 6 years, 75 months,78 months, 81 months, 84 months,
87 months, 90 months and 96 months with an outstanding of ` 3748.97 million as provided below:*
Page | 125
Debenture Tenor period Coupon / Effective Amounts outstanding as on Date of Allotment Redemption Date/
series of maturity Yield (in December 31, 2017 (` in Schedule
* 6 years 12.25 209.74 September 25, 2013 September 25, 2019

PL-V
*
PL-VI 6 Years 11.50-12.25 232.88 December 04, 2013 December 04, 2019
*
PL-VII 6 Years 11.50-12.25 437.57 February 04, 2014 February 04, 2020
PL-VIII** 75 Months 10.96-11.70 193.46 April 02, 2014 July 02,2020
PL-IX** 75 Months 10.96-11.70 364.49 July 04, 2014 October 04, 2020
PL-X** 78 Months 10.48-11.23 304.36 September 26,2014 March 26, 2021
PL-XI** 78 Months 10.48-11.23 386.54 December 29,2014 June 29, 2021
PL-XII** 81 Months 10.05-10.80 289.15 April 23, 2015 January 23, 2022
PL-XIII** 84 Months 9.66-10.41 359.46 October 14, 2015 October 14, 2022
PL-XIV*** 87 Months 9.27-10.02 230.39 January 20, 2016 April 20, 2023
PL-XV** 90 Months 8.92-9.67 236.00 May 12, 2016 November 12, 2023
PL-XVI* 96 Months 8.91-9.06 317.76 January 30,2017 January 30,2025
PL-XVII* 96 Months 9.06 187.17 April 24,2017 April 24,2025
TOTAL 3748.97
*
Above Subordinated Debts are unsecured and are rated with CRISIL AA/Stable by CRISIL Limited and “[ICRA] AA/Stable” by ICRA
Limited.
**
Above Subordinated Debts are unsecured and are rated with “[ICRA] AA/Stable” by ICRA Limited.
***
Above Subordinated Debts are unsecured and are rated with “[CRISIL] AA/Stable” by CRISIL Limited.
2. Loan from Directors and Relatives of Directors
Our Company has borrowed an aggregate ` 6,220.88 million from directors and relatives of directors as on
December 31, 2017 which are in the nature of demand loans and are unsecured.
3. Commercial Papers
Our Company has issued commercial papers of the face value of ` 0.5 million aggregating to a total face value
of ` 14,750 million as on December 31, 2017. The details of the commercial papers are set forth below.
S.No ISIN Number of instruments Face Value (` in millions) ISIN Maturity Date
1 INE414G14GJ3 2,000 1,000 February 09, 2018
2 INE414G14GJ3 4,000 2,000 February 09, 2018
3 INE414G14GK1 4,000 2,000 February 16, 2018
4 INE414G14GL9 2,000 1,000 February 20, 2018
5 INE414G14GK1 4,000 2,000 February 16, 2018
6 INE414G14GM7 2,000 1,000 February 15, 2018
7 INE414G14GN5 4,000 2,000 February 21, 2018
8 INE414G14GM7 2,000 1,000 February 15, 2018
9 INE414G14GM7 3,000 1,500 February 15, 2018
10 INE414G14GL9 2,000 1,000 February 20, 2018
11 INE414G14GO3 500 250 March 07, 2018
Total 14,750
C. Restrictive Covenants under our Financing Arrangements:
Some of the corporate actions for which our Company requires the prior written consent of lenders include the
following:
1. to declare and/ or pay dividend to any of its shareholders whether equity or preference, during any financial
year unless our Company has paid to the lender the dues payable by our Company in that year;
2. to undertake or permit any merger, amalgamation or compromise with its shareholders, creditors or effect
any scheme of amalgamation or reconstruction;
3. to create or permit any charges or lien, or dispose off on any encumbered assets;
4. to amend its MOA and AOA;
5. to alter its capital structure, or buy-back, cancel, purchase, or otherwise acquire any share capital;
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6. to effect a change of ownership or control, or management of the Company;
7. to enter into long term contractual obligations directly affecting the financial position of the Company;
8. to borrow or obtain credit facilities from any bank or financial institution;
9. to undertake any guarantee obligations on behalf of any other company;
10. to change its practice with regard to the remuneration of Directors;
11. to compound, or realise any of its book debts and loan receivables including gold loan receivables or do
anything whereby recovery of the same may be impeded, delayed, or prevented;
12. to enter into any transaction with its affiliates or transfer any funds to any group or associate concern; and
13. to make any major investments by way of deposits, loans, share capital, etc. in any manner.
Additionally, certain lenders have the right to nominate a director on the Board on the occurrence of an event of
default at any time during the term of the financial facilities.
D. Servicing behaviour on existing debt securities, payment of due interest on due dates on financing
facilities or securities
In the past 5 years preceding the date of this Draft Shelf Prospectus, there has been no default and / or delay in
payment of principal or interest on any existing financing facilities or term loan or debt security including
corporate guarantee issued by the Issuer in the past.
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MATERIAL DEVELOPMENTS
Since March 31, 2017, the following material developments have taken place:
Further Investments in Subsidiaries
The company further acquired 8,800,000 equity shares of Muthoot Homefin (India) Limited ("MHIL") taking
the total shareholding to 100% of the equity share of MHIL and making it a wholly owned subsidiary of
Muthoot Finance Limited. Thereafter Muthoot Finance Limited subscribed to 2,27,27,272 further equity shares
of Muthoot Homefin (India) Limited.
Allotment of equity shares pursuant to exercise of Employee Stock Options
Post March 31, 2017, the Nomination and Remuneration Committee of the Board of Directors of the Company
allotted under the Muthoot ESOP 2013, 60747, 30393 and 347225 equity shares of face value of ` 10 each on
May 09, 2017, August 07, 2017 and December 11, 2017 respectively pursuant to exercise of Employee Stock
Options by the Employees of the Company. As on the date of this Draft Shelf Prospectus, the issued, subscribed
and paid – up share capital of the Company is ` 3,999,139,140.
Declaration of interim dividend
On February 08, 2018, the Board of Directors of the Company declared interim dividend for the financial year
ending March 31, 2018 at the rate of ` 10 per equity share to all shareholders whose names appear: (a) as
beneficial owners as per the list to be furnished by the Company's depositories in respect of the equity shares
held in dematerialised form and (b) as members in the register of members of the Company in respect of equity
shares held in physical form, as on the close of business hours March 19, 2017.
Unaudited Financial Statements
On February 08, 2018 the Company has announced its unaudited financial statements (refer Annexure D of the
prospectus) for the quarter and nine months ended December 31, 2017.
On November 08, 2017 the Company has announced its unaudited financial statements (refer Annexure C of the
prospectus) for the quarter and half year ended September 30, 2017.
On August 08, 2017 the Company has announced its unaudited financial statements (refer Annexure B of the
prospectus) for the quarter ended June 30, 2017.
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SECTION V: ISSUE RELATED INFORMATION
TERMS OF THE ISSUE
Authority for the Issue
At the meeting of the Board of Directors of our Company, held on February 13, 2017, the Directors approved
the issuance to the public of Secured NCDs and Unsecured NCDs of face value of ` 1,000 each, aggregating up
to ` 50,000 million.
The present issue through the Draft Shelf Prospectus of Secured NCDs of face value of ` 1,000.00 each for an
amount upto ` 30,000.00 million (“Shelf Limit”), hereinafter called the “Issue” is approved by NCD Public
Issue Committee meeting dated February 21, 2018. The NCDs will be issued in one or more tranches up to the
Shelf Limit, on terms and conditions as set out in the relevant tranche prospectus for any tranche issue (each a
"Tranche Issue"), which issue is being made as decided by NCD Public Issue Committee of Board of
Directors.
Further, the present borrowing is within the borrowing limits under Section 180(1)(c) of the Companies
Act, 2013 duly approved by the shareholders’ vide their resolution dated September 25, 2014.
Principal terms and conditions of this Issue
The NCDs being offered as part of the Issue are subject to the provisions of the SEBI Debt Regulations, the relevant
provisions of the Companies Act and the Companies Act, 2013, as on the date of this Draft Shelf Prospectus, our
Memorandum and Articles of Association, the terms of this Draft Shelf Prospectus, the Shelf Prospectus, the relevant
Tranche Prospectus, the terms and conditions of the Debenture Trustee Agreement and the Debenture Trust Deed, other
applicable statutory and/or regulatory requirements including those issued from time to time by SEBI/ the GoI/ Stock
Exchanges/ RBI, and/or other statutory/regulatory authorities relating to the offer, issue and listing of securities and any
other documents that may be executed in connection with the NCDs.
Ranking of the Secured NCDs
The Secured NCDs would constitute secured obligations of ours and shall rank pari passu inter se, and subject to any
obligations under applicable statutory and/or regulatory requirements, shall also, with regard to the amount invested, be
secured by way of a first pari passu charge on the identified immovable property and first pari passu charge on current
assets, book debts, loans and advances, and receivables including gold loan receivables, both present and future. The
Secured NCDs proposed to be issued under the Issue and all earlier issues of debentures outstanding in the books of our
Company having corresponding assets as security, shall rank pari passu without preference of one over the other except
that priority for payment shall be as per applicable date of redemption. The Company is required to obtain
permissions / consents from the prior creditors in favour of the debenture trustee for creation of such pari passu
charge. The Company had applied to the prior creditors for such permissions / consents and has obtained all
permissions / consents from such creditors thereby enabling it to undertake the Issue.
Debenture Redemption Reserve
Section 71 of the Companies Act, 2013, read with Rule 18 made under Chapter IV of the Companies Act, 2013,
requires that any company that intends to issue debentures must create a DRR for the purpose of redemption of
debentures, in accordance with the following conditions: (a) the DRR shall be created out of the profits of the
company available for payment of dividend, (b) the DRR shall be equivalent to at least 25% of the value of the
outstanding debentures issued pursuant to the public issue in accordance with the SEBI Debt Regulations in case
of NBFCs registered with the RBI and no DRR is required in the case of privately placed debentures.
Accordingly, our Company is required to create a DRR of 25% of the value of the outstanding NCDs issued
through the Issue. In addition, as per Rule 18 (7) (e) under Chapter IV of the Companies Act, 2013, the amounts
credited to DRR shall not be utilised by our Company except for the redemption of the NCDs. Every company
required to create or maintain DRR shall before the 30th day of April of each year, deposit or invest, as the case
may be, a sum which shall not be less than 15% of the amount of its debentures maturing during the year ending
on the 31st day of March, following any one or more of the following methods: (a) in deposits with any
scheduled bank, free from charge or lien; (b) in unencumbered securities of the Central Government or of any
State Government; (c) in unencumbered securities mentioned in clauses (a) to (d) and (ee) of section 20 of the
Indian Trusts Act, 1882; (d) in unencumbered bonds issued by any other company which is notified under clause
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(f) of section 20 of the Indian Trusts Act, 1882. The amount deposited or invested, as the case may be, shall not
be utilised for any purpose other than for the repayment of debentures maturing during the year referred to
above, provided that the amount remaining deposited or invested, as the case may be, shall not at any time fall
below 15% of the amount of debentures maturing during the 31st day of March of that year. This may have a
bearing on the timely redemption of the NCDs by our Company.
Face Value
The face value of each of the Secured NCDs shall be ` 1,000.00.
NCD Holder not a shareholder
The NCD Holders will not be entitled to any of the rights and privileges available to the equity and/or preference
shareholders of our Company, , except to the extent as may be prescribed under the Companies Act, 2013, the SEBI
LODR Regulations and any other applicable law.
Rights of the Secured NCD Holders
Some of the significant rights available to the Secured NCD Holders are as follows:
1. The Secured NCDs shall not, except as provided in the Companies Act, 2013 to the extent applicable as on the date
of this Draft Shelf Prospectus, confer upon the Secured NCD Holders thereof any rights or privileges available to
our members including the right to receive notices, or to attend and/or vote, at our general meeting. However, if
any resolution affecting the rights attached to the Secured NCDs is to be placed before the members, the said
resolution will first be placed before the concerned registered Secured NCD Holders for their consideration. In
terms of section 136 of the Companies Act, the Secured NCD Holders shall be entitled to inspect a copy of the
balance sheet and copy of trust deed at the registered office of the Company during business hours.
2. Subject to applicable statutory/ regulatory requirements, including requirements of the RBI, the rights, privileges
and conditions attached to the Secured NCDs may be varied, modified and/or abrogated with the consent in writing
of the holders of at least three-fourths of the outstanding amount of the Secured NCDs or with the sanction of a
special resolution passed at a meeting of the concerned Secured NCD Holders, provided that nothing in such
consent or resolution shall be operative against us, where such consent or resolution modifies or varies the terms
and conditions governing the Secured NCDs, if the same are not acceptable to us.
3. In case of Secured NCDs held in (i) dematerialised form, the person for the time being appearing in the register of
beneficial owners of the Depository; and (ii) physical form, the registered Secured NCD Holders or in case of joint-
holders, the one whose name stands first in the register of debenture holders shall be entitled to vote in respect of
such Secured NCDs, either in person or by proxy, at any meeting of the concerned Secured NCD Holders and
every such Secured NCD Holder shall be entitled to one vote on a show of hands and on a poll, his/her voting
rights on every resolution placed before such meeting of the Secured NCD Holders shall be in proportion to the
outstanding nominal value of Secured NCDs held by him/her.
4. The Secured NCDs are subject to the provisions of the SEBI Debt Regulations, the Companies Act, applicable
provisions of the Companies Act, 2013, our Memorandum and Articles of Association, the terms of this Draft
Shelf Prospectus, the Shelf Prospectus and the relevant Tranche Prospectus, the terms and conditions of the
Debenture Trust Deed, requirements of the RBI, other applicable statutory and/or regulatory requirements relating
to the issue and listing, of securities and any other documents that may be executed in connection with the Secured
NCDs.
5. For Secured NCDs in physical form, a register of debenture holders will be maintained in accordance with section
88 of the Companies Act, 2013 and all interest and principal sums becoming due and payable in respect of the
Secured NCDs will be paid to the registered holder thereof for the time being or in the case of joint-holders, to the
person whose name stands first in the register of debenture holders as on the Record Date. For Secured NCDs in
dematerialized form, all interest and principal sums becoming due and payable in respect of the Secured NCDs will
be paid to the person for the time being appearing in the register of beneficial owners of the Depository. In terms
of Section 88(3) of the Companies Act, 2013, the register of beneficial owners maintained by a Depository
for any Secured NCDs in dematerialized form under Section 11 of the Depositories Act shall be deemed to
be a register of debenture holders for this purpose. The same shall be maintained at the Registered Office of
the Issuer under Section 94 of the Companies Act, 2013 unless the same has been moved to another location
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after obtaining the consent of the NCD holders as given thereunder.
6. Subject to compliance with RBI requirements, Secured NCDs can be rolled over only with the consent of the
Secured NCD Holders of at least 75.00% of the outstanding amount of the Secured NCDs after providing at least
21 days prior notice for such roll over and in accordance with the SEBI Debt Regulations. Our Company shall
redeem the debt securities of all the debt securities holders, who have not given their positive consent to the roll-
over.
The aforementioned rights of the Secured NCD Holders are merely indicative. The final rights of the Secured NCD
Holders will be as per the terms of the Draft Shelf Prospectus, the Shelf Prospectus, relevant Tranche Prospectus and the
Debenture Trust Deed.
If our Company does not receive the minimum subscription of 75 % of the Base Issue prior to the Issue Closing Date,
the entire subscription amount shall be refunded to the Applicants within 12 Working Days from the date of closure of
the Issue. The refunded subscription amount shall be credited only to the account from which the relevant subscription
amount was remitted In the event, there is a delay, by the Issuer in making the aforesaid refund, the Company will pay
interest at the rate of 15% per annum for the delayed period.
Under Section 39(3) of the Companies Act 2013 read with Rule 11(2) of the Companies (Prospectus and
Allotment of Securities) Rules, 2014 if the stated minimum subscription amount is not received within the
specified period, the application money received is to be credited only to the bank account from which the
subscription was remitted. To the extent possible, where the required information for making such refunds is
available with the Company and/or Registrar, refunds will be made to the account prescribed. However, where
the Company and/or Registrar does not have the necessary information for making such refunds, the Company
and/or Registrar will follow the guidelines prescribed by SEBI in this regard including its circular (bearing
CIR/IMD/DF-1/20/2012) dated July 27, 2012.
Market Lot and Trading Lot
The NCDs shall be allotted only in dematerialized form. As per the SEBI Debt Regulations, the trading of the NCDs
shall be in dematerialised form only. Since trading of the NCDs is in dematerialised form, the tradable lot is one NCD.
Please note that the NCDs shall cease to trade from the Record Date (for payment of the principal amount
and the applicable interest for such NCDs) prior to redemption of the NCDs.
Allotment in the Issue will be in electronic form in multiples of one NCD. For details of Allotment see the section titled
“Issue Procedure” at page 147 of this Draft Shelf Prospectus.
Nomination facility to NCD Holders
In accordance with section 72 of the Companies Act, 2013, the sole NCD Holder or first NCD Holder, along with other
joint NCD Holders (being individual(s)) may nominate any one person (being an individual) who, in the event of death
of the sole holder or all the joint-holders, as the case may be, shall become entitled to the NCDs. A person, being a
nominee, becoming entitled to the NCDs by reason of the death of the NCD Holder(s), shall be entitled to the same
rights to which he would be entitled if he were the registered holder of the NCD. Where the nominee is a minor, the
NCD Holder(s) may make a nomination to appoint, in the prescribed manner, any person to become entitled to the
NCDs, in the event of his death, during the minority. A nomination shall stand rescinded upon sale of the NCDs by the
person nominating. A buyer will be entitled to make a fresh nomination in the manner prescribed. When the NCDs are
held by two or more persons, the nominee shall become entitled to receive the amount only on the demise of all such
NCD Holders. Fresh nominations can be made only in the prescribed form available on request at our Registered/
Corporate Office, at such other addresses as may be notified by us, or at the office of the Registrar to the Issue or the
transfer agent..
NCD Holders are advised to provide the specimen signature of the nominee to us to expedite the transmission of the
NCDs to the nominee in the event of demise of the NCD Holders. The signature can be provided in the Application
Form or subsequently at the time of making fresh nominations. This facility of providing the specimen signature of the
nominee is purely optional.
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In accordance with the Section 72 read with Rules under Chapter IV of Companies Act, 2013, any person who becomes
a nominee by virtue of the above said Section, shall upon the production of such evidence as may be required by our
Board, elect either:
(a) To register himself or herself as the holder of the NCDs; or

(b) To make such transfer of the NCDs, as the deceased holder could have done.
NCD Holders who are holding NCDs in dematerialised form need not make a separate nomination with our Company.
Nominations registered with the respective Depository Participant of the NCD Holder will prevail. If the NCD Holders
require to changing their nominations, they are requested to inform their respective Depository Participant.
Further, our Board may at any time give notice requiring any nominee to choose either to be registered himself or
herself or to transfer the NCDs, and if the notice is not complied with, within a period of 90 days, our Board may
thereafter withhold payment of all interests or other monies payable in respect of the NCDs, until the requirements of
the notice have been complied with.
Succession
Where NCDs are held in joint names and one of the joint NCD Holder dies, the survivor(s) will be recognized as the
NCD Holder(s). It will be sufficient for our Company to delete the name of the deceased NCD Holder after obtaining
satisfactory evidence of his death. Provided, a third person may call on our Company to register his name as successor
of the deceased NCD Holder after obtaining evidence such as probate of a will for the purpose of proving his title to the
NCDs. In the event of demise of the sole or first holder of the NCDs, our Company will recognise the executors or
administrator of the deceased NCD Holders, or the holder of the succession certificate or other legal representative as
having title to the NCDs only if such executor or administrator obtains and produces probate or letter of administration
or is the holder of the succession certificate or other legal representation, as the case may be, from an appropriate court
in India. Our Directors, the Board, any committee of the Board or any other person authorised by the Board in their
absolute discretion may, in any case, dispense with production of probate or letter of administration or succession
certificate or other legal representation. In case of death of NCD Holders who are holding NCDs in dematerialised
form, third person is not required to approach the Company to register his name as successor of the deceased NCD
holder. He shall approach the respective Depository Participant of the NCD Holder for this purpose and submit
necessary documents as required by the Depository Participant.
Jurisdiction
Exclusive jurisdiction for the purpose of the Issue is with the competent courts of jurisdiction in Mumbai, India.
Period of subscription
ISSUE OPENS ON As specified in the relevant Tranche

Prospectus
ISSUE CLOSES ON As specified in the relevant Tranche
Prospectus
The subscription list shall remain open for subscription on Working Days from 10 A.M. to 5 P.M., during the
period indicated in the relevant Tranche Prospectus, except that the Issue may close on such earlier date or
extended date as may be decided by the Board or the NCD Public Issue Committee. In the event of such an
early closure of or extension subscription list of the Issue, our Company shall ensure that notice of such early
closure or extension is given to the prospective investors through an advertisement in a national daily newspaper
with wide circulation on or before such earlier date or extended date of closure.
Applications Forms for each Tranche Issue will be accepted only from 10:00 a.m. till 5.00 p.m. (Indian Standard
Time) or such extended time as may be permitted by the Stock Exchange, on Working Days during the Issue
Period. On the Issue Closing Date, Application Forms will be accepted only from 10:00 a.m. till 3.00 p.m.
(Indian Standard Time) and uploaded until 5.00 p.m. (Indian Standard Time) or such extended time as may be
permitted by the Stock Exchange.
Due to limitation of time available for uploading the Applications on the electronic platform of the Stock
Exchange on the Issue Closing Date, Applicants are advised to submit their Application Forms one day prior to
the Issue Closing Date and, no later than 3.00 p.m. (Indian Standard Time) on the Issue Closing Date. Applicants
are cautioned that in the event a large number of Applications are received on the Issue Closing Date, there may
Page | 132
be some Applications which are not uploaded due to lack of sufficient time to upload. Such Applications that
cannot be uploaded will not be considered for allocation under the Issue. Application Forms will only be
accepted on Working Days during the Issue Period. Neither our Company, nor the Members of the Syndicate are
liable for any failure in uploading the Applications due to failure in any software/ hardware systems or
otherwise. Please note that the Basis of Allotment will be as per the relevant Tranche Prospectus. In this regard
as per the SEBI circular dated October 29, 2013, the allotment in the Issue should be made on the basis of date
of upload of each application into the electronic book of the Stock Exchange. However, on the date of
oversubscription, the allotments should be made to the applicants on proportionate basis.
Restriction on transfer of NCDs
There are currently no restrictions on transfers and transmission of NCDs and on their consolidation/ splitting
except as may be required under applicable statutory and/or regulatory requirements including any RBI
requirements and/or as provided in our Articles of Association. Please see the section titled “Summary of the Key
Provisions of the Articles of Association” at page 212 of this Draft Shelf Prospectus.
Page | 133
ISSUE STRUCTURE
Public issue by our Company of Secured NCDs of face value of ` 1,000.00 each, for an amount up to ` 30,000.00
million.
The key common terms and conditions of the NCDs are as follows:
Particulars Terms and Conditions
Minimum Application Size As specified in the relevant Tranche Prospectus for each Tranche Issue.
Mode of allotment Compulsorily in dematerialised form.
Terms of Payment Full amount on application
Trading Lot 1 (one) NCD
Who can apply
Category I
 Public financial institutions, statutory corporations, commercial banks, co-operative

banks and RRBs and multilateral and bilateral development financial institutions
which are authorised to invest in the NCDs;
 Provident funds, pension funds, superannuation funds and gratuity funds, which are
authorised to invest in the NCDs;
 Alternative Investment Funds, subject to investment conditions applicable to them
under the Securities and Exchange Board of India (Alternative Investment Funds)
Regulations, 2012;
 Resident Venture Capital Funds registered with SEBI;
 Insurance Companies registered with IRDA;
 State industrial development corporations;
 Insurance funds set up and managed by the army, navy, or air force of the Union of
India;
 Insurance funds set up and managed by the Department of Posts, the Union of
India;
 Systemically Important Non- Banking Financial Company, a nonbanking
financial company registered with the Reserve Bank of India and having a net-
worth of more than five hundred crore rupees as per the last audited financial
statements
 National Investment Fund set up by resolution no. F. No. 2/3/2005 –DDII dated
November 23,2005 of the Government of India published in the Gazette of India;
and
 Mutual Funds registered with SEBI.
Category II
 Companies; bodies corporate and societies registered under the applicable laws in
India and authorised to invest in the NCDs;
 Public/private charitable/religious trusts which are authorised to invest in the
NCDs;
 Scientific and/or industrial research organisations, which are authorised to invest in
the NCDs;
 Partnership firms in the name of the partners; and
 Limited liability partnerships formed and registered under the provisions of the
Limited Liability Partnership Act, 2008 (No. 6 of 2009).
Category III
 High Net-worth Individual Investors ("HNIs") - Resident Indian individuals and

Hindu Undivided Families through the Karta applying for an amount aggregating to
above INR 1,000,000 across all options of NCDs in the Issue
Category IV
 Retail Individual Investors - Resident Indian individuals and Hindu Undivided

Families through the Karta applying for an amount aggregating up to and including
INR 1,000,000 across all options of NCDs in the Issue
*
In terms of Regulation 4(2)(d) of the SEBI Debt Regulations, the Company will make public issue of NCDs in the dematerialised form.
However, in terms of Section 8 (1) of the Depositories Act, the Company, at the request of the Applicants who wish to hold the NCDs post
allotment in physical form, will fulfill such request through the process of rematerialisation.
Participation by any of the above-mentioned investor classes in this Issue will be subject to applicable statutory
Page | 134
and/or regulatory requirements. Applicants are advised to ensure that Applications made by them do not exceed
the investment limits or maximum number of Secured NCDs that can be held by them under applicable
statutory and/or regulatory provisions.
Applicants are advised to ensure that they have obtained the necessary statutory and/or regulatory
permissions/consents/approvals in connection with applying for, subscribing to, or seeking allotment of NCDs
pursuant to the Issue.
For further details, please see “Issue Procedure” on page 147 of this Draft Shelf Prospectus.
TERMS AND CONDITIONS IN CONNECTION WITH THE NCDs**
Common Terms of NCDs
Issuer Muthoot Finance Limited

Lead Managers Edelweiss Financial Services Limited and A. K. Capital Services Limited
Debenture Trustee IDBI Trusteeship Services Limited
Registrar to the Link Intime India Private Limited
Issue
Type and nature of Secured, redeemable and non-convertible debentures of face value ` 1,000 each
instrument
Option to retain As specified in the relevant Tranche Prospectus for each Tranche Issue.
Oversubscription
Amount
Face Value (in ` / ` 1,000.00
NCD)
Issue Price (in ` / As specified in the relevant Tranche Prospectus for each Tranche Issue
NCD)
Minimum As specified in the relevant Tranche Prospectus for each Tranche Issue.
application
In multiples of ` 1,000.00 (1 NCD)
Seniority Senior (to clarify, the claims of the Secured NCD Holders shall be superior to the claims of any unsecured
creditors, subject to applicable statutory and/or regulatory requirements). The Secured NCDs would constitute
secured obligations of ours and shall rank pari passu inter se, present and future and subject to any obligations
under applicable statutory and/or regulatory requirements, shall also, with regard to the amount invested, be
secured by way of first pari passu charge on the identified immovable property and a first pari passu charge on
current assets, book debts, loans and advances, and receivables including gold loan receivables, both present and
future, of our Company.
Mode of Issue Public Issue
Issue Public issue by our Company of Secured NCDs of face value of ` 1,000.00 each, for an amount up to ` 30,000.00
million ("Shelf Limit"), hereinafter referred to as the “Issue”. The NCDs will be issued in one or more tranches up to
the Shelf Limit, on terms and conditions as set out in the relevant Tranche Prospectus for any Tranche Issue (each a
"Tranche Issue").
Listing BSE
BSE shall be the Designated Stock Exchange for the Issue.
The NCDs are proposed to be listed within 12 Working Days from the respective Issue Closing Date.
Lock-in As specified in the relevant Tranche Prospectus for each Tranche Issue.
Mode of Allotment NCDs will be issued and traded compulsorily in dematerialised form.
and Trading
Mode of settlement Please refer to the section titled “Issue Structure” beginning on page 134 of this Draft Shelf Prospectus.
Trading Lot 1 NCD
Depositories NSDL and CDSL
Security Security for the purpose of this Issue and every Tranche Issue will be created in accordance with the terms of the
Debenture Trust Deed. For further details please refer to the section titled “Issue Structure” beginning on page 134
Who can apply/ Please refer to the section titled “Issue Procedure” beginning on page 147 of this Draft Shelf Prospectus.
Eligible Investors
Credit Ratings
Rating Instrument Rating Date of credit Amount rated Rating definition
agency symbol rating letter
ICRA NCDs [ICRA] March 06, 2018 - Secured NCDs Instruments with this
AA(Stable)” Secured NCD’s for for ` 30,000.00 rating are considered to
Rs. 30,000.00 million rated have high degree of
million "[ICRA] AA safety regarding timely
(Stable)" servicing of financial
obligations. Such
instruments carry very
low credit risk.
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CRISIL NCDs “CRISIL March 07, 2018 - Secured NCDs Instruments with this
AA/Stable” Secured NCD’s for for ` 30,000.00 rating are considered to
Rs. 30,000.00 million rated have high degree of
million "CRISIL safety regarding timely
AA/Stable" servicing of financial
obligations. Such
instruments carry very
low credit risk.
Please refer to pages 247 to 262 of this Draft Shelf Prospectus for rating letter and rationale for the above ratings.Please
refer to the disclaimer clause of ICRA and CRISIL on page 38 under the chapter "General Information".
Issue Size As specified in the relevant Tranche Prospectus for each Tranche Issue.
Pay-in date The date of realisation of the cheque or demand draft submitted by an Applicant with the Company.
Application money The entire application amount is payable on submitting the application.
Record Date The Record Date for payment of interest in connection with the NCDs or repayment of principal in connection
therewith shall be 15 days prior to the date on which interest is due and payable, and/or the date of redemption.
Provided that trading in the NCDs shall remain suspended between the aforementioned Record Date in connection
with redemption of NCDs and the date of redemption or as prescribed by the Stock Exchange, as the case may be.
In case Record Date falls on a day when Stock Exchange is having a trading holiday, the immediate subsequent
trading day or a date notified by the Company to the Stock Exchanges, will be deemed as the Record Date.
Issue Schedule As specified in the relevant Tranche Prospectus for each Tranche Issue.
Objects of the Please refer to the section titled “Objects of the Issue” on page 53 of this Draft Shelf Prospectus.
Issue
Details of the Please refer to the section titled “Objects of the Issue” on page 53 of this Draft Shelf Prospectus.
utilisation of Issue
proceeds
Coupon rate, As specified in the relevant Tranche Prospectus for each Tranche Issue.
coupon payment
date and
redemption
premium/discount
Step up/ Step down As specified in the relevant Tranche Prospectus for each Tranche Issue.
interest
rates
Interest type As specified in the relevant Tranche Prospectus for each Tranche Issue.
Interest reset As specified in the relevant Tranche Prospectus for each Tranche Issue.
process
Tenor As specified in the relevant Tranche Prospectus for each Tranche Issue.
Coupon payment As specified in the relevant Tranche Prospectus for each Tranche Issue.
frequency
Redemption date As specified in the relevant Tranche Prospectus for each Tranche Issue.
Redemption As specified in the relevant Tranche Prospectus for each Tranche Issue
Amount
Day count Actual/Actual
convention
Working Days All days excluding the second and the fourth Saturday of every month, Sundays and a public holiday in Kochi or
convention/Day Mumbai or at any other payment centre notified in terms of the Negotiable Instruments Act, 1881, except with
count convention / reference to Issue Period where working days shall mean all days, excluding Saturdays, Sundays and public
Effect of holidays holidays in India or at any other payment centre notified in terms of the Negotiable Instruments Act, 1881.
on payment
Interest shall be computed on a 365 days-a-year basis on the principal outstanding on the NCDs. However, if
period from the Deemed Date Of Allotment / anniversary date of Allotment till one day prior to the next
anniversary / redemption date includes February 29, interest shall be computed on 366 days a-year basis, on the
principal outstanding on the NCDs.
If the date of payment of interest or any date specified does not fall on a Working Day, then the succeeding
Working Day will be considered as the effective date for such payment of interest, as the case may be (the
“Effective Date”). Interest or other amounts, if any, will be paid on the Effective Date. For avoidance of doubt, in
case of interest payment on Effective Date, interest for period between actual interest payment date and the
Effective Date will be paid in normal course in next interest payment date cycle. Payment of interest will be
subject to the deduction of tax as per Income Tax Act, 1961 or any statutory modification or re-enactment thereof
for the time being in force. In case the Maturity Date falls on a holiday, the maturity proceeds will be paid on the
immediately previous Working Day along with the coupon/interest accrued on the NCDs until but excluding the
date of such payment.
Issue Opening As specified in the relevant Tranche Prospectus for each Tranche Issue.
Date
Issue Closing Date As specified in the relevant Tranche Prospectus for each Tranche Issue.
Default interest As specified in the relevant Tranche Prospectus for each Tranche Issue.
rate
Interest on Please refer to the section titled “Issue Structure- Interest on Application Amount” on page 145 of this Draft Shelf
Application Money Prospectus.
Put/Call Option As specified in the relevant Tranche Prospectus for each Tranche Issue.
Date/Price
Deemed Date of The date on which the Board or the duly authorised committee of the Board constituted by resolution of the Board
Page | 136
Allotment dated July 25, 2011 approves the Allotment of the NCDs for each Tranche Issue. The actual Allotment of NCDs
may take place on a date other than the Deemed Date of Allotment. All benefits relating to the NCDs including
interest on NCDs (as specified for each Tranche Issue by way of the relevant Tranche Prospectus) shall be
available to the Debenture holders from the Deemed Date of Allotment.
Transaction Issue Agreement dated March 12, 2018 between our Company, the Lead Managers, the Registrar Agreement dated
documents March 12, 2018 with the Registrar to the Issue, Escrow Agreement with the Escrow Collection Banks/ Refund
Banks as specified in the relevant Tranche Prospectus for each Tranche Issue, Lead Broker Agreement with the
Lead Brokers as specified in the relevant Tranche Prospectus for each Tranche Issue, Debenture Trustee
Agreement dated March 12, 2018 executed between our Company and the Debenture Trustee and the agreed form
of the Debenture Trust Deed to be executed between our Company and the Debenture Trustee. For further details,
please refer to “Material Contracts and Documents for Inspection” on page 243 of this Draft Prospectus.
Conditions The conditions precedent and subsequent to disbursement will be finalised upon execution of the Debenture Trust
precedent and Deed.
subsequent to the
Issue
Events of default Please refer to the section titled “Issue Structure-Events of default” on page 145 of this Draft Shelf Prospectus.
Cross Default Please refer to the section titled “Issue Structure-Events of default” on page 145 of this Draft Shelf Prospectus.
Roles and Please refer to the section titled “Terms of the Issue-Trustees for the Secured NCD Holders” on page 144 of this
responsibilities of Draft Shelf Prospectus respectively.
the Debenture
Trustee
Governing law and The Issue shall be governed in accordance with the laws of the Republic of India and shall be subject to the
jurisdiction exclusive jurisdiction of the courts of Mumbai.
In terms of Regulation 4(2)(d) of the SEBI Debt Regulations, the Company will make public issue of NCDs in the dematerialised form. However,
in terms of Section 8 (1) of the Depositories Act, the Company, at the request of the Applicants who wish to hold the NCDs post allotment in
physical form, will fulfill such request through the process of rematerialisation.
*
*
The subscription list shall remain open for subscription on Working Days from 10 A.M. to 5 P.M., during the period indicated in the
relevant Tranche Prospectus, except that the Issue may close on such earlier date or extended date as may be decided by the Board or the
NCD Public Issue Committee. In the event of such an early closure of or extension subscription list of the Issue, our Company shall ensure
that notice of such early closure or extension is given to the prospective investors through an advertisement in a national daily newspaper
with wide circulation on or before such earlier date or extended date of closure. Applications Forms for the Issue will be accepted only from
10:00 a.m. till 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE, on Working Days during the Issue Period.
On the Issue Closing Date, Application Forms will be accepted only between 10:00 a.m. to 3.00 p.m. (Indian Standard Time) and uploaded
until 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE.
Nature of the Secured NCDs
As specified in the relevant Tranche Prospectus.
Interest and Payment of Interest
Taxation
As per clause (ix) of Section 193 of the I.T. Act, no tax is required to be withheld on any interest payable on any
security issued by a company, where such security is in dematerialized form and is listed on a recognized stock
exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the rules
made thereunder. Accordingly, no tax will be deducted at source from the interest on listed Secured NCDs held
in the dematerialised form.
However in case of Secured NCDs held in physical form, as per the current provisions of the IT Act, tax will not be
deducted at source from interest payable on such Secured NCDs held by the investor, if such interest does not exceed
` 5,000 in any financial year. If interest exceeds the prescribed limit of ` 5,000 on account of interest on the Secured
NCDs, then the tax will be deducted at applicable rate. However in case of Secured NCD Holders claiming non-
deduction or lower deduction of tax at source, as the case may be, the Secured NCD Holder should furnish either (a) a
declaration (in duplicate) in the prescribed form i.e. (i) Form 15H which can be given by individuals who are of the age
of 60 years or more (ii) Form 15G which can be given by all applicants (other than companies, and firms), or (b) a
certificate, from the Assessing Officer which can be obtained by all applicants (including companies and firms) by
making an application in the prescribed form i.e. Form No.13. The aforesaid documents, as may be applicable, should
be submitted at the office of the Registrar quoting the name of the sole/ first Secured NCD Holder, NCD folio number
and the distinctive number(s) of the Secured NCD held, at least seven days prior to the Record Date to ensure non-
deduction/lower deduction of tax at source from interest on the Secured NCD. The investors need to submit Form 15H/
15G/certificate in original with the Assessing Officer for each financial year during the currency of the Secured NCD to
ensure non-deduction or lower deduction of tax at source from interest on the Secured NCD.
Page | 137
Tax exemption certificate/document, if any, must be lodged at the office of the Registrar at least seven days prior to the
Record Date or as specifically required, failing which tax applicable on interest will be deducted at source on accrual
thereof in our Company’s books and/or on payment thereof, in accordance with the provisions of the IT Act and/or any
other statutory modification, enactment or notification as the case may be. A tax deduction certificate will be issued for
the amount of tax so deducted.
Payment of Interest
As specified in the relevant Tranche Prospectus. Amount of interest payable shall be rounded off to the
nearest Rupee. If the date of interest payment falls on the second or fourth Saturday on any month,
Sunday or a public holiday in Mumbai or any other payment centre notified in terms of the Negotiable
Instruments Act, 1881, then interest as due and payable on such day, would be paid on the next Working
Day. Payment of interest would be subject to the deduction as prescribed in the I.T. Act or any statutory
modification or re-enactment thereof for the time being in force.
Interest for each of the interest periods shall be calculated, on the face value of principal outstanding on the
Secured NCDs at the applicable Coupon Rate for each Category rounded off to the nearest Rupee and same shall
be paid annually. Interest shall be computed on a 365 days-a-year basis on the principal outstanding on the
NCDs. However, if period from deemed date of allotment/anniversary date of allotment till one day prior to
next anniversary date/redemption date includes February 29th, interest shall be computed on 366 days a-year
basis.
Payment of Interest to Secured NCD Holders
Payment of interest will be made to (i) in case of Secured NCDs in dematerialised form the persons who for the time
being appear in the register of beneficial owners of the Secured NCD as per the Depositories as on the Record Date and
(ii) in case of Secured NCDs in physical form, the persons whose names appear in the register of debenture holders
maintained by us (or to first holder in case of joint-holders) as on the Record Date.
We may enter into an arrangement with one or more banks in one or more cities for direct credit of interest to the
account of the Secured NCD Holders. In such cases, interest, on the interest payment date, would be directly credited to
the account of those investors who have given their bank mandate.
We may offer the facility of NACH, NEFT, RTGS, Direct Credit and any other method permitted by RBI and SEBI
from time to time to effect payments to Secured NCD Holders. The terms of this facility (including towns where this
facility would be available) would be as prescribed by RBI. For further details see the section titled “Issue Structure -
Manner of Payment of Interest / Refund / Redemption” beginning at page 139 of this Draft Shelf Prospectus.
Maturity and Redemption
Deemed Date of Allotment
Deemed Date of Allotment shall be the date as decided by the duly authorised committee of the Board of
Directors constituted by resolution of the Board dated July 25, 2011, and as per authorization under Section
179(3)(c) of the Companies Act, 2013 dated [February 13, 2017] and as mentioned in the Allotment advice.
Application Size
Applicants are advised to ensure that applications made by them do not exceed the investment limits or
maximum number of Secured NCDs that can be held by them under applicable statutory and or
regulatory provisions.
Terms of Payment
The entire issue price per Secured NCD, as specified in the relevant Tranche Prospectus for each Tranche
Page | 138
Issue, is payable on application itself. In case of allotment of lesser number of Secured NCDs than the
number of Secured NCDs applied for, our Company shall refund the excess amount paid on application to
the applicant in accordance with the terms of this Draft Shelf Prospectus. For further details please refer to
the paragraph on “Interest on Application Amount” beginning on page 145 of this Draft Shelf Prospectus.
Record Date
The Record Date for payment of interest in connection with the Secured NCDs or repayment of principal in
connection therewith shall be 15 (fifteen) days prior to the date on which interest is due and payable, and/or
the date of redemption. Provided that trading in the Secured NCDs shall remain suspended between the
aforementioned Record Date in connection with redemption of Secured NCDs and the date of redemption
or as prescribed by the relevant stock exchange(s), as the case may be. In case Record Date falls on a day
when stock exchanges are having a trading holiday, the immediate subsequent trading day, or a date notified by
the Company to the Stock Exchanges, will be deemed as the Record Date.
Manner of Payment of Interest / Refund / Redemption*
The manner of payment of interest / refund / redemption in connection with the Secured NCDs is set
out below*:
For Secured NCDs applied / held in electronic form
The bank details will be obtained from the Depositories for payment of Interest / refund / redempt ion as
the case may be. Applicants who have applied for or are holding the Secured NCDs in electronic form,
are advised to immediately update their bank account details as appearing on the records of the depository
participant. Please note that failure to do so could result in delays in credit of refunds to the applicant at
the applicant’s sole risk, and neither the Lead Managers our Company nor the Registrar to the Issue shall
have any responsibility and undertake any liability for the same.
In case of ASBA Applicants, the Registrar to the Issue will issue requisite instructions to the relevant SCSBs to un-
block amounts in the ASBA Accounts of the Applicants representing the amounts to be refunded to the Applicants.
For Secured NCDs held in physical form
The bank details will be obtained from the Registrar to the Issue for payment of interest / refund /
redemption as the case may be.
*
In the event, the interest / payout of total coupon / redemption amount is a fraction and not an integer, such amount w ill be rounded
off to the nearest integer. By way of illustration if the redemption amount is ` 1,837.50, then the amount shall be rounded off to
` 1,838.
The mode of interest / refund / redemption payments shall be undertaken in the following order of
preference:
1. Direct Credit
Investors having their bank account with the Refund Bank, shall be eligible to receive refunds, if any,
through direct credit. The refund amount, if any, would be credited directly to their bank account with the
Refund Banker.
2. NACH
National Automated Clearing House which is a consolidated system of ECS. Payment of refund would be done
through NACH for Applicants having an account at one of the centres specified by the RBI, where such facility has
been made available. This would be subject to availability of complete bank account details including Magnetic Ink
Character Recognition (MICR) code wherever applicable from the depository. The payment of refund through
NACH is mandatory for Applicants having a bank account at any of the centres where NACH facility has been
made available by the RBI (subject to availability of all information for crediting the refund through NACH
including the MICR code as appearing on a cheque leaf, from the depositories), except where applicant is
otherwise disclosed as eligible to get refunds through NEFT or Direct Credit or RTGS.
Page | 139
3. RTGS
Applicants having a bank account with a participating bank and whose interest payment/ refund/ redemption
amounts exceed ` 200,000, or such amount as may be fixed by RBI from time to time, have the option to receive
refund through RTGS. Such eligible Applicants who indicate their preference to receive interest payment/ refund/
redemption through RTGS are required to provide the IFSC code in the Application Form or intimate our
Company and the Registrar to the Issue at least seven days prior to the Record Date. Charges, if any, levied by the
Applicant’s bank receiving the credit would be borne by the Applicant. In the event the same is not provided,
interest payment/ refund/ redemption shall be made through NACH subject to availability of complete bank
account details for the same as stated above.
4. NEFT
Payment of interest/ refunds/ redemption shall be undertaken through NEFT wherever the Applicants’ banks have
been assigned the Indian Financial System Code (“IFSC”), which can be linked to a Magnetic Ink Character
Recognition (“MICR”), if any, available to that particular bank branch. The IFSC Code will be obtained from the
website of RBI as on a date immediately prior to the date of payment of refund, duly mapped with MICR numbers.
Wherever the Applicants have registered their nine digit MICR number and their bank account number while
opening and operating the demat account, the same will be duly mapped with the IFSC Code of that particular
bank branch and the payment of interest/ refund/ redemption will be made to the applicants through this method.
5. Registered Post/Speed Post
For all other applicants, including those who have not updated their bank particulars with the MICR code,
the interest payment / refund / redemption orders shall be dispatched through speed post/ registered
post.
Please note that applicants are eligible to receive payments through the modes detailed in (1), (2) (3), and
(4) herein above provided they provide necessary information for the above modes and where such
payment facilities are allowed / available.
Please note that our Company shall not be responsible to the holder of Secured NCD, for any delay in
receiving credit of interest / refund / redemption so long as our Company has initiated the process of such
request in time.
Printing of Bank Particulars on Interest Warrants
As a matter of precaution against possible fraudulent encashment of refund orders and interest/ redemption warrants due
to loss or misplacement, the particulars of the Applicant’s bank account are mandatorily required to be given for
printing on the orders/ warrants. In relation to Secured NCDs applied and held in dematerialized form, these particulars
would be taken directly from the depositories. In case of Secured NCDs held in physical form either on account of
rematerialisation or transfer, the Secured NCD Holders are advised to submit their bank account details with our
Company/ Registrar to the Issue at least seven days prior to the Record Date failing which the orders/ warrants will be
dispatched to the postal address of the Secured NCD Holders as available in the records of our Company either through
speed post or registered post.
Bank account particulars will be printed on the orders/ warrants which can then be deposited only in the account
specified.
Loan against Secured NCDs
As per the RBI circular dated June 27, 2013, the Company is not permitted to extend loans against the security of its
debentures issued by way of private placement or public issues. However, if the RBI subsequently permits the
extension of loans by NBFCs against the security of its debentures issued by way of private placement or public issues,
the Company may consider granting loans against the security of such Secured NCDs, subject to terms and conditions
as may be decided by the Company at the relevant time, in compliance with applicable law.
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Buy Back of Secured NCDs
Our Company may, at its sole discretion, from time to time, consider, subject to applicable statutory and/or regulatory
requirements, buy-back the Secured NCDs, upon such terms and conditions as may be decided by our Company.
Form and Denomination
In case of Secured NCDs held in physical form, a single certificate will be issued to the Secured NCD Holder for the
aggregate amount of the Secured NCDs held (“Consolidated Certificate”). The Applicant can also request for the issue
of Secured NCD certificates in denomination of one NCD (“Market Lot”). In case of NCDs held under different
Options, as specified in the relevant Tranche Prospectus, by a Secured NCD Holder, separate Consolidated
Certificates will be issued to the NCD Holder for the aggregate amount of the Secured NCDs held under
each Option.
It is however distinctly to be understood that the Secured NCDs pursuant to this issue shall be traded only in demat
form.
In respect of Consolidated Certificates, we will, only upon receipt of a request from the Secured NCD Holder, split such
Consolidated Certificates into smaller denominations subject to the minimum of Market Lot. No fees would be charged
for splitting of Secured NCD certificates in Market Lots, but stamp duty payable, if any, would be borne by the Secured
NCD Holder. The request for splitting should be accompanied by the original NCD certificate which would then be
treated as cancelled by us.
Procedure for Redemption by Secured NCD holders
The procedure for redemption is set out below:
Secured NCDs held in physical form:
No action would ordinarily be required on the part of the Secured NCD Holder at the time of redemption and the
redemption proceeds would be paid to those Secured NCD Holders whose names stand in the register of debenture
holders maintained by us on the Record Date fixed for the purpose of Redemption. However, our Company may
require that the Secured NCD certificate(s), duly discharged by the sole holder/all the joint-holders (signed on the
reverse of the Secured NCD certificates) be surrendered for redemption on maturity and should be sent by the Secured
NCD Holders by Registered Post with acknowledgment due or by hand delivery to our office or to such persons at such
addresses as may be notified by us from time to time. Secured NCD Holders may be requested to surrender the Secured
NCD certificates in the manner as stated above, not more than three months and not less than one month prior to the
redemption date so as to facilitate timely payment.
We may at our discretion redeem the Secured NCDs without the requirement of surrendering of the Secured
NCD certificates by the holder(s) thereof. In case we decide to do so, the holders of Secured NCDs need not
submit the Secured NCD certificates to us and the redemption proceeds would be paid to those Secured NCD
holders whose names stand in the register of debenture holders maintained by us on the Record Date fixed for
the purpose of redemption of Secured NCDs. In such case, the Secured NCD certificates would be deemed to
have been cancelled. Also see the para “Payment on Redemption” given below.
Secured NCDs held in electronic form:
No action is required on the part of Secured NCD holder(s) at the time of redemption of Secure d NCDs.
Payment on Redemption
The manner of payment of redemption is set out below*.
Secured NCDs held in physical form
The payment on redemption of the Secured NCDs will be made by way of cheque/pay order/ electronic modes.
However, if our Company so requires, the aforementioned payment would only be made on the surrender of Secured
NCD certificates, duly discharged by the sole holder/ all the joint-holders (signed on the reverse of the Secured NCD
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certificates). Despatch of cheques/ pay orders, etc. in respect of such payment will be made on the redemption date or (if
so requested by our Company in this regard) within a period of 30 days from the date of receipt of the duly discharged
NCD certificate.
In case we decide to do so, the redemption proceeds in the manner stated above would be paid on the redemption date to
those Secured NCD Holders whose names stand in the register of debenture holders maintained by us on the Record
Date fixed for the purpose of Redemption. Hence the transferees, if any, should ensure lodgment of the transfer
documents with us at least seven days prior to the Record Date. In case the transfer documents are not lodged with us at
least seven days prior to the Record Date and we dispatch the redemption proceeds to the transferor, claims in respect of
the redemption proceeds should be settled amongst the parties inter se and no claim or action shall lie against us or the
Registrar to the Issue.
Our liability to Secured NCD Holders towards their rights including for payment or otherwise shall stand extinguished
from the redemption in all events and when we dispatch the redemption amounts to the Secured NCD Holders.
Further, we will not be liable to pay any interest, income or compensation of any kind from the date of redemption of
the Secured NCDs.
Secured NCDs held in electronic form
On the redemption date, redemption proceeds would be paid by cheque/ pay order/ electronic mode to those Secured
NCD Holders whose names appear on the list of beneficial owners given by the Depositories to us. These names would
be as per the Depositories’ records on the Record Date fixed for the purpose of redemption. These Secured NCDs will
be simultaneously extinguished to the extent of the amount redeemed through appropriate debit corporate action upon
redemption of the corresponding value of the Secured NCDs. It may be noted that in the entire process mentioned
above, no action is required on the part of Secured NCD Holders.
Our liability to Secured NCD Holders towards his/their rights including for payment/ redemption in all events shall end
when we dispatch the redemption amounts to the Secured NCD Holders.
Further, we will not be liable to pay any interest, income or compensation of any kind from the date of redemption of
the Secured NCDs.
*
In the event, the interest / payout of total coupon / redemption amount is a fraction and not an integer, such amount will be rounded off to the
nearest integer. By way of illustration if the redemption amount is ` 1,837.5, then the amount shall be rounded off to ` 1,838.
Right to reissue Secured NCD(s)
Subject to the provisions of the Companies Act, 1956 and the Companies Act, 2013, as applicable on the date of this
Draft Shelf Prospectus, where we have fully redeemed or repurchased any Secured NCDs, we shall have and shall be
deemed always to have had the right to keep such Secured NCDs in effect without extinguishment thereof, for the
purpose of resale or re-issue and in exercising such right, we shall have and be deemed always to have had the power to
resell or reissue such Secured NCDs either by reselling or re-issuing the same Secured NCDs or by issuing other
Secured NCDs in their place. The aforementioned right includes the right to reissue original Secured NCDs.
Transfer/Transmission of Secured NCD(s)
For Secured NCDs held in physical form
The Secured NCDs shall be transferred or transmitted freely in accordance with the applicable provisions of the
Companies Act/ the Companies Act, 2013 applicable as on the date of this Draft Shelf Prospectus and all other
applicable laws including FEMA and the rules and regulations thereunder. The provisions relating to transfer and
transmission and other related matters in respect of our shares contained in the Articles, the Companies Act/the relevant
provisions of the Companies Act, 2013 applicable as on the date of this Draft Shelf Prospectus, and all applicable laws
including FEMA and the rules and regulations thereunder, shall apply, mutatis mutandis (to the extent applicable to
debentures) to the Secured NCDs as well. In respect of the Secured NCDs held in physical form, a common form of
transfer shall be used for the same. The Secured NCDs held in dematerialised form shall be transferred subject to and in
accordance with the rules/ procedures as prescribed by NSDL/CDSL and the relevant Depositary Participants of the
transferor and the transferee and any other applicable laws and rules notified in respect thereof. The transferees should
ensure that the transfer formalities are completed at prior to the Record Date. In the absence of the same, interest will be
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paid/ redemption will be made to the person, whose name appears in the register of debenture holders or the records as
maintained by the Depositories. In such cases, claims, if any, by the transferees would need to be settled with the
transferors and not with the Issuer or Registrar.
Title
In case of:
 Secured NCDs held in the dematerialised form, the person for the time being appearing in the register of
beneficial owners maintained by the Depository; and
 the Secured NCDs held in physical form, the person for the time being appearing in the register of NCD Holders
as Secured NCD holder,
shall be treated for all purposes by our Company, the Debenture Trustee, the Depositories and all other persons
dealing with such person as the holder thereof and its absolute owner for all purposes whether or not it is
overdue and regardless of any notice of ownership, trust or any interest in it or any writing on, theft or loss of the
Consolidated NCD Certificates issued in respect of the Secured NCDs and no person will be liable for so
treating the Secured NCD holder.
No transfer of title of a NCD will be valid unless and until entered on the register of NCD holders or the register
of beneficial owners maintained by the Depository prior to the Record Date. In the absence of transfer being
registered, interest and/or maturity amount, as the case may be, will be paid to the person, whose name appears
first in the register of the NCD Holders maintained by the Depositories and/or our Company and/or the
Registrar, as the case may be. In such cases, claims, if any, by the purchasers of the Secured NCDs will need to
be settled with the seller of the Secured NCDs and not with our Company or the Registrar. The provisions
relating to transfer and transmission and other related matters in respect of our Company’s shares contained in
the Articles of Association of our Company and the Companies Act/ the relevant provisions of the Companies
Act, 2013 applicable as on the date of this Draft Shelf Prospectus shall apply, mutatis mutandis (to the extent
applicable) to the Secured NCD(s) as well.
For Secured NCDs held in electronic form
The normal procedure followed for transfer of securities held in dematerialised form shall be followed for transfer of the
Secured NCDs held in electronic form. The seller should give delivery instructions containing details of the buyer’s
Depository Participant account to his depository participant.
In case the transferee does not have a Depository Participant account, the seller can re-materialise the Secured NCDs
and thereby convert his dematerialised holding into physical holding. Thereafter these Secured NCDs can be transferred
in the manner as stated above for transfer of Secured NCDs held in physical form.
Common form of transfer
The Issuer undertakes that there shall be a common form of transfer for the Secured NCDs and the provisions of the
Companies Act, 2013 and all applicable laws including the FEMA and the rules and regulations thereunder shall be
duly complied with in respect of all transfer of debentures and registration thereof.
Joint-holders
Where two or more persons are holders of any Secured NCD(s), they shall be deemed to hold the same as joint holders
with benefits of survivorship subject to other provisions contained in the Articles.
Sharing of information
We may, at our option, use on our own, as well as exchange, share or part with any financial or other information about
the Secured NCD Holders available with us, with our subsidiaries, if any and affiliates and other banks, financial
institutions, credit bureaus, agencies, statutory bodies, as may be required and neither we or our affiliates nor their
agents shall be liable for use of the aforesaid information.
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Notices
All notices to the Secured NCD Holders required to be given by us or the Debenture Trustee will be sent by speed post
or registered post or through email or other electronic media to the registered Secured NCD Holders from time to time.
Issue of Duplicate NCD Certificate(s) issued in physical form
If NCD certificate(s) is/ are mutilated or defaced or the cages for recording transfers of Secured NCDs are fully utilised,
the same may be replaced by us against the surrender of such certificate(s). Provided, where the NCD certificate(s) are
mutilated or defaced, the same will be replaced as aforesaid only if the certificate numbers and the distinctive numbers
are legible.
If any NCD certificate is destroyed, stolen or lost then upon production of proof thereof to our satisfaction and upon
furnishing such indemnity/ security and/or documents as we may deem adequate, duplicate Secured NCD certificates
shall be issued. Upon issuance of a duplicate NCD certificate, the original NCD certificate shall stand cancelled.
Security
The principal amount of the Secured NCDs to be issued in terms of this Draft Shelf Prospectus together with all interest
due on the Secured NCDs, as well as all costs, charges, all fees, remuneration of Debenture Trustee and expenses
payable in respect thereof shall be secured by way of first pari passu charge on the identified immovable property and a
first pari passu charge on current assets, book debts, loans and advances, and receivables including gold loan
receivables, both present and future, of our Company.
Our Company will create the security for the Secured NCDs in favour of the Debenture Trustee for the Secured NCD
Holders on the assets to ensure 100.00% security cover of the amount outstanding in respect of Secured NCDs,
including interest thereon, at any time.
Our Company intends to enter into an agreement with the Debenture Trustee, (‘Debenture Trust Deed’), the terms of
which will govern the appointment of the Debenture Trustee and the issue of the Secured NCDs. Our Company
proposes to complete the execution of the Debenture Trust Deed before finalisation of the Basis of Allotment in
consultation with the Designated Stock Exchange and utilize the funds only after the stipulated security has been created
and upon receipt of listing and trading approval from the Designated Stock Exchange.
Under the terms of the Debenture Trust Deed, our Company will covenant with the Debenture Trustee that it will pay
the Secured NCD Holders the principal amount on the Secured NCDs on the relevant redemption date and also that it
will pay the interest due on Secured NCDs on the rate specified in this Draft Shelf Prospectus and in the Debenture
Trust Deed.
The Debenture Trust Deed will also provide that our Company may withdraw any portion of the security and replace
with another asset of the same or a higher value.
Trustees for the Secured NCD holders
We have appointed IDBI Trusteeship Services Limited to act as the Debenture Trustees for the Secured NCD
Holders. The Debenture Trustee and us will execute a Debenture Trust Deed, inter alia, specifying the powers,
authorities and obligations of the Debenture Trustee and us. The Secured NCD Holders shall, without further act or
deed, be deemed to have irrevocably given their consent to the Debenture Trustee or any of its agents or authorised
officials to do all such acts, deeds, matters and things in respect of or relating to the Secured NCDs as the Debenture
Trustee may in its absolute discretion deem necessary or require to be done in the interest of the Secured NCD Holders.
Any payment made by us to the Debenture Trustee on behalf of the Secured NCD Holders shall discharge us pro tanto
to the Secured NCD Holders.
The Debenture Trustee will protect the interest of the Secured NCD Holders in the event of default by us in regard to
timely payment of interest and repayment of principal and they will take necessary action at our cost.
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Events of Default:
Subject to the terms of the Debenture Trust Deed, the Debenture Trustee at its discretion may, or if so requested
in writing by the holders of at least three-fourths of the outstanding amount of the Secured NCDs or with the
sanction of a special resolution, passed at a meeting of the NCD Holders, (subject to being indemnified and/or
secured by the NCD Holders to its satisfaction), give notice to our Company specifying that the NCDs and/or
any particular series of Secured NCDs, in whole but not in part are and have become due and repayable on such
date as may be specified in such notice inter alia if any of the events listed below occurs. The description below
is indicative and a complete list of events of default and its consequences will be specified in the Debenture
Trust Deed:
(i) default is committed in payment of the principal amount of the Secured NCDs on the due date(s); and
(ii) default is committed in payment of any interest on the Secured NCDs on the due date(s).
Lien
As per the RBI circular dated June 27, 2013, the Company is not permitted to extend loans against the security
of its debentures issued by way of private placement or public issues. The Company shall have the right of set-
off and lien, present as well as future on the moneys due and payable to the Secured NCD holders or deposits
held in the account of the Secured NCD holders, whether in single name or joint name, to the extent of all
outstanding dues by the Secured NCD holders to the Company, subject to applicable law.
Lien on pledge of Secured NCDs
The Company may, at its discretion note a lien on pledge of Secured NCDs if such pledge of Secured NCD is
accepted by any thirty party bank/institution or any other person for any loan provided to the Secured NCD
holder against pledge of such Secured NCDs as part of the funding, subject to applicable law.
Future Borrowings
We shall be entitled to make further issue of secured debentures and/or raise term loans or raise further funds from time
to time from any persons, banks, financial institutions or bodies corporate or any other agency without the consent of, or
notification to or consultation with the holder of Secured NCDs or the Debenture Trustee by creating a charge on any
assets, provided the stipulated security cover is maintained.
We shall be entitled to make further issue of unsecured debentures and/or raise unsecured term loans or raise further
unsecured funds from time to time from any persons, banks, financial institutions or bodies corporate or any other
agency without the consent of, or notification to or in consultation with the holder of Secured NCDs or the Debenture
Trustee.
Illustration for guidance in respect of the day count convention and effect of holidays on payments.
The illustration for guidance in respect of the day count convention and effect of holidays on payments, as
required by SEBI Circular No. CIR/IMD/DF/18/2013 October 29, 2013 and SEBI Circular No. CIR/IMD/DF-
1/122/2016 dated November 11, 2016 will be a disclosed in the relevant Tranche Prospectus.
Interest on Application Amount
Interest on application amounts received which are used towards allotment of NCDs
Our Company shall pay interest on application amount against which NCDs are allotted to the Applicants, other
than to ASBA Applicants, subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as
amended, as applicable, from the date of realization of the cheque(s)/demand draft(s) upto one day prior to the
Deemed Date of Allotment as specified in relevant Tranche Prospectus. In the event that such date of realization of
the cheque(s)/ demand draft(s) is not ascertainable in terms of banking records, we shall pay interest on Application
Amounts on the amount Allotted from three Working Days from the date of upload of each Application on the
electronic Application platform of the Stock Exchanges upto one day prior to the Deemed Date of Allotment. A
tax deduction certificate will be issued for the amount of income tax so deducted.
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Our Company may enter into an arrangement with one or more banks in one or more cities for direct credit of
interest to the account of the Applicants. Alternatively, the interest warrant will be dispatched along with the
Letter(s) of Allotment/ NCD Certificates at the sole risk of the Applicant, to the sole/first Applicant.
Interest on application monies received which are liable to be refunded
Our Company shall pay interest on application amount, on all valid applications, which is liable to be refunded to
the Applicants (other than Application Amounts received after the Issue Closure Date, and ASBA Applicants)
pursuant to the relevant Tranche Prospectus and as specified in relevant Tranche Prospectus, subject to deduction of
income tax under the provisions of the Income Tax Act, 1961, as amended, as applicable, to the Applicants whose
Valid Applications receive (i) partial allotment due to oversubscription or (ii) no allotment due to oversubscription
pursuant to the relevant Tranche Issue from the date of realization of the cheque(s)/demand draft(s) upto one day
prior to the Deemed Date of Allotment. In the event that such date of realization of the cheque(s)/ demand draft(s)
is not ascertainable in terms of banking records, we shall pay interest on Application Amounts on the amount
Allotted from three Working Days from the date of upload of each Application on the electronic Application
platform of the Stock Exchanges upto one day prior to the Deemed Date of Allotment. Such interest shall be paid
along with the monies liable to be refunded. Interest warrant will be dispatched / credited (in case of electronic
payment) along with the Letter(s) of Allotment/ Letter(s) of Refund at the sole risk of the Applicant, to the sole/first
Applicant.
In the event our Company does not receive a minimum subscription, as specified in relevant Tranche Prospectus
on the date of closure of the Issue, our Company shall pay interest on application amount which is liable to be
refunded to the Applicants, other than to ASBA Applicants, in accordance with the provisions of the SEBI Debt
Regulations and/or the Companies Act, 2013, or other applicable statutory and/or regulatory requirements, subject
to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, as applicable.
Provided that, notwithstanding anything contained hereinabove, our Company shall not be liable to pay any interest
on monies liable to be refunded in case of (a) invalid applications or applications liable to be rejected, (b)
applications which are withdrawn by the Applicant and/or (c) monies paid in excess of the amount of NCDs
applied for in the Application Form. Please refer to “Issue procedure - Rejection of Applications” at page 162 of
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ISSUE PROCEDURE
This section applies to all Applicants. ASBA Applicants and Applicants applying through the Direct Online
Application Mechanism (as defined hereinafter) should note that the ASBA process and the Direct Online
Application Mechanism involve application procedures that are different from the procedure applicable to all
other Applicants. Please note that all Applicants are required to pay the full Application Amount or ensure that
the ASBA Account has sufficient credit balance such that the entire Application Amount can be blocked by the
SCSB while making an Application. In case of ASBA Applicants, an amount equivalent to the full Application
Amount will be blocked by the SCSBs in the relevant ASBA Accounts.
ASBA Applicants should note that they may submit their ASBA Applications to the Members of the Syndicate or
Trading Members of the Stock Exchange only at the Syndicate ASBA Application Locations, or directly to the
Designated Branches of the SCSBs. Applicants other than direct ASBA Applicants are required to submit their
Applications to the Members of the Syndicate or Trading Members (at the application centres of the Members of
the Syndicate will be mentioned in the Application Form) or make online Applications using the online payment
gateway of the Stock Exchanges.
Applicants are advised to make their independent investigations and ensure that their Applications do not exceed
the investment limits or maximum number of NCDs that can be held by them under applicable law or as
specified in this Draft Shelf Prospectus.
Please note that this section has been prepared based on the circular no. CIR./IMD/DF-1/20/2012 dated
July 27, 2012 issued by SEBI (“Debt Application Circular”). The procedure mentioned in this section is
subject to the Stock Exchanges putting in place the necessary systems and infrastructure for implementation
of the provisions of the abovementioned circular, including the systems and infrastructure required in
relation to Applications made through the Direct Online Application Mechanism and the online payment
gateways to be offered by Stock Exchanges and accordingly is subject to any further clarifications,
notification, modification, direction, instructions and/or correspondence that may be issued by the Stock
Exchanges and/or SEBI. Please note that clarifications and/or confirmations regarding the implementation
of the requisite infrastructure and facilities in relation to direct online applications and online payment
facility have been sought from the Stock Exchange and the Stock Exchange has confirmed that the necessary
infrastructure and facilities for the same have not been implemented by the Stock Exchange. Hence, the
Direct Online Application facility will not be available for this Issue.
PLEASE NOTE THAT ALL TRADING MEMBERS OF THE STOCK EXCHANGE(S) WHO WISH TO
COLLECT AND UPLOAD APPLICATION IN THIS ISSUE ON THE ELECTRONIC APPLICATION
PLATFORM PROVIDED BY THE STOCK EXCHANGES WILL NEED TO APPROACH THE
RESPECTIVE STOCK EXCHANGE(S) AND FOLLOW THE REQUISITE PROCEDURES AS MAY BE
PRESCRIBED BY THE RELEVANT STOCK EXCHANGE. THE FOLLOWING SECTION MAY
CONSEQUENTLY UNDERGO CHANGE BETWEEN THE DATES OF THIS DRAFT SHELF
PROSPECTUS, THE ISSUE OPENING DATE AND THE ISSUE CLOSING DATE.
THE MEMBERS OF THE SYNDICATE AND THE COMPANY SHALL NOT BE RESPONSIBLE
OR LIABLE FOR ANY ERRORS OR OMMISSIONS ON THE PART OF THE TRADING
MEMBERS IN CONNECTION WITH THE RESPOSIBILITY OF SUCH TRADING MEMBERS
IN RELATION TO COLLECTION AND UPLOAD OF APPLICATIONS IN THIS ISSUE ON THE
ELECTRONIC APPLICATION PLATFORM PROVIDED BY THE STOCK EXCHANGES.
FURTHER, THE RELEVANT STOCK EXCHANGE SHALL BE RESPONSIBLE FOR
ADDRESSING INVESTOR GREIVANCES ARISING FROM APPLICATIONS THROUGH
TRADING MEMBERS REGISTERED WITH SUCH STOCK EXCHANGE.
Please note that for the purposes of this section, the term “Working Day” shall mean all days excluding
Sundays or a public holiday in India or at any other payment centre notified in terms of the Negotiable
Instruments Act, 1881, except with reference to Issue Period and Record Date, where working days shall
mean all days, excluding Saturdays, Sundays and public holiday in India or at any other payment centre
notified in terms of the Negotiable Instruments Act, 1881.
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Who can apply?
The following categories of persons are eligible to apply in the Issue.
Category I
 Public financial institutions, statutory corporations, commercial banks, co-operative banks and RRBs and
multilateral and bilateral development financial institutions which are authorised to invest in the NCDs;
 Provident funds, pension funds, superannuation funds and gratuity funds, which are authorised to invest
in the NCDs;
 Alternative Investment Funds, subject to investment conditions applicable to them under the Securities
and Exchange Board of India (Alternative Investment Funds) Regulations, 2012;
 Resident Venture Capital Funds registered with SEBI;
 Insurance Companies registered with IRDA;
 State industrial development corporations;
 Insurance funds set up and managed by the army, navy, or air force of the Union of India;
 Insurance funds set up and managed by the Department of Posts, the Union of India;
 Systemically Important Non- Banking Financial Company, a nonbanking financial company registered
with the Reserve Bank of India and having a net-worth of more than five hundred crore rupees as per
the last audited financial statements;
 National Investment Fund set up by resolution no. F. No. 2/3/2005 –DDII dated November 23,2005 of
the Government of India published in the Gazette of India; and
 Mutual Funds registered with SEBI.
Category II
 Companies; bodies corporate and societies registered under the applicable laws in India and authorised to
invest in the NCDs;
 Public/ private charitable/ religious trusts which are authorised to invest in the NCDs;
 Scientific and/or industrial research organisations, which are authorised to invest in the NCDs;
 Partnership firms in the name of the partners;
 Limited Liability Partnerships formed and registered under the provisions of the Limited Liability
Partnership Act, 2008 (No. 6 of 2009); and
Category III
 High Net-worth Individual Investors ("HNIs") - Resident Indian individuals and Hindu Undivided Families
through the Karta applying for an amount aggregating to above INR 1,000,000 across all options of NCDs
in the Issue
Category IV
 Retail Individual Investors - Resident Indian individuals and Hindu Undivided Families through the
Karta applying for an amount aggregating up to and including INR 1,000,000 across all options of NCDs
in the Issue.
Participation of any of the aforementioned categories of persons or entities is subject to the applicable statutory
and/or regulatory requirements in connection with the subscription to Indian securities by such categories of
persons or entities.
Applicants are advised to ensure that they have obtained the necessary statutory and/or regulatory
permissions/consents/approvals in connection with applying for, subscribing to, or seeking allotment of
NCDs pursuant to the Issue.
The Lead Managers and their respective associates and affiliates are permitted to subscribe in the Issue.
The information below is given for the benefit of Applicants. Our Company and the Lead Managers are not liable
for any amendment or modification or changes in applicable laws or regulations, which may occur after the date
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How to apply?
Availability of Draft Shelf Prospectus, the Shelf Prospectus, the relevant Tranche Prospectus, Abridged
Prospectus and Application Forms
Please note that there is a single Application Form for ASBA Applicants as well as non-ASBA Applicants
who are persons resident in India.
Copies of the abridged Prospectus containing the salient features of the Draft Shelf Prospectus, the relevant
Tranche Prospectus together with Application Forms and copies of this Draft Shelf Prospectus may be obtained
from our Registered Office, the Lead Managers, the Registrar, the Lead Brokers and the Designated Branches of
the SCSBs. Additionally the Draft Shelf Prospectus, the relevant Tranche Prospectus and the Application Forms
will be available
(i) for download on the website of BSE at www.bseindia.com, and the website of the Lead Managers at
www.edelweissfin.com and www.akgroup.co.in.
(ii) at the designated branches of the SCSB and the Members of the Syndicate at the Syndicate ASBA
Application Locations.
Electronic Application Forms will also be available on the website of the Stock Exchange. A hyperlink to the
website of the Stock Exchange for this facility will be provided on the website of the Lead Managers and the
SCSBs. Further, Application Forms will also be provided to Trading Members at their request.
Methods of Application
An eligible investor desirous of applying in the Issue can make Applications by one of the following methods:
1. Applications through the ASBA process; and
2. Non-ASBA Applications.
Applicants are requested to note that in terms of the Debt Application Circular, SEBI has mandated issuers to
provide, through a recognized stock exchange which offers such a facility, an online interface enabling direct
application by investors to a public issue of debt securities with an online payment facility (“Direct Online
Application Mechanism”). In this regard, SEBI has, through the Debt Application Circular, directed recognized
stock exchanges in India to put in necessary systems and infrastructure for the implementation of the Debt
Application Circular and the Direct Online Application Mechanism infrastructure for the implementation of the
Debt Application Circular and the Direct Online Application Mechanism. Please note that the Applicants will not
have the option to apply for NCDs under the Issue, through the direct online applications mechanism of the Stock
Exchange. Please note that clarifications and/or confirmations regarding the implementation of the requisite
infrastructure and facilities in relation to direct online applications and online payment facility have been sought
from the Stock Exchange and the Stock Exchange has confirmed that the necessary infrastructure and facilities for
the same have not been implemented by the Stock Exchange. Hence, the Direct Online Application facility will
not be available for this Issue.
Applications through the ASBA process
Applicants can submit their Applications through the ASBA process by submitting the Application Forms in
physical mode to the SCSB with whom the ASBA Account is maintained or through the Members of the
Syndicate or Trading Members (ASBA Applications through the Members of the Syndicate and Trading
Members shall hereinafter be referred to as the “Syndicate ASBA”), prior to or on the Issue Closing Date. ASBA
Applications through the Members of the Syndicate and Trading Members is permitted only at the
Syndicate ASBA Application Locations (Mumbai, Chennai, Kolkata, Delhi, Ahmedabad, Rajkot, Jaipur,
Bangalore, Hyderabad, Pune, Vadodara and Surat). Kindly note that Application Forms submitted by ASBA
Applicants to Members of the Syndicate and the Trading Members at the Syndicate ASBA Application Locations
will not be accepted if the SCSB with which the ASBA Account, as specified in the Application Form is
maintained has not named at least one branch at that location for the Member of the Syndicate or the Trading
Members to deposit the Application Form (A list of such branches is available at http://www.sebi.gov.in. The
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Members of Syndicate and Trading Members shall accept ASBA Applications only at the Syndicate ASBA
Application Locations and should ensure that they verify the details about the ASBA Account and relevant
SCSB prior to accepting the Application Form.
Trading Members shall, upon receipt of physical Application Forms from ASBA Applicants, upload the details of
these Application Forms to the online platform of the Stock Exchange and submit these Application Forms with
the SCSB with whom the relevant ASBA Accounts are maintained in accordance with the Debt Application
Circular.
An ASBA Applicant shall submit the Application Form, which shall be stamped at the relevant Designated
Branch of the SCSB. Application Forms in physical mode, which shall be stamped, can also be submitted to be
Members of the Syndicate and the Trading Members at the Syndicate ASBA Application Locations. The SCSB
shall block an amount in the ASBA Account equal to the Application Amount specified in the Application Form.
Our Company, our directors, affiliates, associates and their respective directors and officers, Lead Managers and
the Registrar shall not take any responsibility for acts, mistakes, errors, omissions and commissions etc. in relation
to ASBA Applications accepted by SCSBs and Trading Members, Applications uploaded by SCSBs, Applications
accepted but not uploaded by SCSBs or Applications accepted and uploaded without blocking funds in the ASBA
Accounts. It shall be presumed that for Applications uploaded by SCSBs, the Application Amount has been
blocked in the relevant ASBA Account. Further, all grievances against Trading Members in relation to the Issue
should be made by Applicants directly to the Stock Exchange.
(i) Non- ASBA Applications for Allotment of the NCDs in dematerialised form
Applicants may submit duly filled in Application Forms either in physical or downloaded Application Forms to
the Members of the Syndicate or the Trading Members accompanied by account payee cheques/ demand drafts
prior to or on the Issue Closing Date. The Members of the Syndicate and Trading Members shall, upload the non-
ASBA Application on the online platforms of the Stock Exchange from 10:00 a.m. till 5.00 p.m. (Indian Standard
Time) during the Issue Period, following which they shall acknowledge the uploading of the Application Form by
stamping the acknowledgment slip with the date and time and returning it to the Applicant. This acknowledgment
slip shall serve as the duplicate of the Application Form for the records of the Applicant and the Applicant should
preserve this and should provide the same for any grievances relating to their Applications.
Upon uploading the Application on the online platform of the Stock Exchange, the Members of the Syndicate and
Trading Members will submit the Application Forms, along with the relevant payment instruments (cheques or
demand drafts) to the Escrow Collection Banks, which will realise the payment instrument, and send the
Application details to the Registrar. The Members of the Syndicate/ Trading Members are requested to note that
all Applicants are required to be banked with only the designated branches of Escrow Collection Banks, as
mentioned in the Application Form. The Registrar shall match the Application details as received from the online
platform of the Stock Exchange with the Application Amount details received from the Escrow Collection Banks
for reconciliation of funds received from the Escrow Collection Banks. In case of discrepancies between the two
data bases, the details received from the online platform of the Stock Exchange will prevail. Upon Allotment, the
Registrar will credit the NCDs in the demat accounts of the successful Applicants as mentioned in the Application
Form.
Please note that neither our Company, nor the Members of the Syndicate, nor the Registrar to the Issue shall be
responsible for redressal of any grievances that Applicants may have in regard to the non-ASBA Applications
made to the Trading Members, including, without limitation, relating to non-upload of the Applications data. All
grievances against Trading Members in relation to the Issue should be made by Applicants to the relevant Stock
Exchange.
Members of the Syndicate or Trading Members are also required to ensure that the Applicants are competent to
contract under the Indian Contract Act, 1872 including minors applying through guardians, at the time of
acceptance of the Application Forms.
To supplement the foregoing, the mode and manner of Application and submission of Application Forms is
illustrated in the following chart.
Mode of Application To whom the Application Form has to be submitted

ASBA Applications i. to the Members of the Syndicate only at the Syndicate ASBA Application Locations; or
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Mode of Application To whom the Application Form has to be submitted
ii. to the Designated Branches of the SCSBs where the ASBA Account is maintained; or
iii. to Trading Members only at the Syndicate ASBA Application Locations.
Non- ASBA i. to the Members of the Syndicate; or

Applications ii. to Trading Members.
Application Size
Each Application should be for a minimum of 10 NCDs and in multiples of one NCD thereafter for all options of
NCDs, as specified in the relevant Tranche Prospectus.
APPLICATIONS BY VARIOUS APPLICANT CATEGORIES
Applications by Mutual Funds
A mutual fund scheme cannot invest more than 15.00% of its NAV in debt instruments issued by a single
company which are rated not below investment grade by a credit rating agency authorised to carry out such
activity. Such investment limit may be extended to 20.00% of the NAV of the scheme with the prior approval of
the board of trustees and the board of asset management company.
A separate Application can be made in respect of each scheme of an Indian mutual fund registered with SEBI and
such Applications shall not be treated as multiple Applications. Applications made by the AMCs or custodians of
a Mutual Fund shall clearly indicate the name of the concerned scheme for which the Application is being made.
An Application Form by a mutual fund registered with SEBI for Allotment of the NCDs must be also
accompanied by certified true copies of (i) its SEBI registration certificates (ii) the trust deed in respect of such
mutual fund (ii) a resolution authorising investment and containing operating instructions and (iii) specimen
signatures of authorized signatories. Failing this, our Company reserves the right to accept or reject any
Application from a Mutual Fund for Allotment of the NCDs in whole or in part, in either case, without assigning
any reason therefor.
Application by Scheduled Banks, Co-operative Banks and RRBs
Scheduled Banks, Co-operative Banks and RRBs can apply in a relevant Tranche Issue based upon their own
investment limits and approvals. Applications by them for Allotment of the NCDs must be accompanied by
certified true copies of (i) a board resolution authorising investments; and (ii) a letter of authorisation. Failing this,
our Company reserves the right to accept or reject any Application for Allotment of the NCDs in whole or in part,
in either case, without assigning any reason therefor.
Application by Insurance Companies
In case of Applications for Allotment of the NCDs made by an Insurance Company, a certified copy of its
certificate of registration issued by IRDA must be lodged along with Application Form. The Applications must be
accompanied by certified copies of (i) its Memorandum and Articles of Association; (ii) a power of attorney (iii) a
resolution authorising investment and containing operating instructions; and (iv) specimen signatures of
authorized signatories. Failing this, our Company reserves the right to accept or reject any Application for
Allotment of the NCDs in whole or in part, in either case, without assigning any reason therefor.
Applications by Alternative Investments Funds
Applications made by an Alternative Investments Fund eligible to invest in accordance with the Securities and
Exchange Board of India (Alternate Investment Funds) Regulations, 2012, must be accompanied by certified
true copies of: (i) the SEBI registration certificate of such Alternative Investment Fund; (ii) a resolution
authorising the investment and containing operating instructions; and (iii) specimen signatures of authorised
persons. Failing this, our Company reserves the right to accept or reject any Applications for Allotment of the
NCDs in whole or in part, in either case, without assigning any reason thereof. Alternative Investment Funds
applying for Allotment of the NCDs shall at all time comply with the conditions for categories as per their SEBI
registration certificate and the Securities and Exchange Board of India (Alternate Investment Funds)
Regulations, 2012.
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Applications by Trusts
In case of Applications for Allotment of the NCDs made by trusts, settled under the Indian Trusts Act, 1882, or
any other statutory and/or regulatory provision governing the settlement of trusts in India, Applicants must submit
a (i) a certified copy of the registered instrument for creation of such trust; (ii) a power of attorney, if any, in
favour of one or more trustees thereof; (iii) such other documents evidencing registration thereof under applicable
statutory/regulatory requirements. Further, any trusts applying for NCDs pursuant to the Issue must ensure that
(a) they are authorised under applicable statutory/regulatory requirements and their constitution instrument to hold
and invest in debentures; (b) they have obtained all necessary approvals, consents or other authorisations, which
may be required under applicable statutory and/or regulatory requirements to invest in debentures; and (c)
Applications made by them do not exceed the investment limits or maximum number of NCDs that can be held
by them under applicable statutory and or regulatory provisions. Failing this, our Company reserves the right to
accept or reject any Applications for Allotment of the NCDs in whole or in part, in either case, without assigning
any reason therefor.
Applications by Public Financial Institutions or statutory corporations, which are authorized to

invest in the NCDs
Applications by Public Financial Institutions or statutory corporation for Allotment of the NCDs must be
accompanied by certified true copies of: (i) any Act/rules under which such Applicant is incorporated; (ii) a
resolution of the board of directors of such Applicant authorising investments; and (iii) specimen signature of
authorized persons of such Applicant. Failing this, our Company reserves the right to accept or reject any
Applications for Allotment of the NCDs in whole or in part, in either case, without assigning any reason therefor.
Applications made by companies, bodies corporate and societies registered under the applicable laws
in India
Applications made by companies, bodies corporate and registered societies for Allotment of the NCDs must be
accompanied by certified true copies of: (i) any Act/rules under which such Applicant is incorporated; (ii) a
resolution of the board of directors of such Applicant authorising investments; and (iii) specimen signature of
authorized persons of such Applicant. Failing this, our Company reserves the right to accept or reject any
Indian scientific and/ or industrial research organizations, which are authorized to invest in the
NCDs
Applications by scientific and/ or industrial research organisations which are authorised to invest in the NCDs
must be accompanied by certified true copies of: (i) any Act/rules under which such Applicant is incorporated;
(ii) a resolution of the board of directors of such Applicant authorising investments; and (iii) specimen signature
of authorized persons of such Applicant. Failing this, our Company reserves the right to accept or reject any
Partnership firms formed under applicable Indian laws in the name of the partners and Limited
Liability Partnerships formed and registered under the provisions of the Limited Liability
Partnership Act, 2008
Applications made by partnership firms and limited liability partnerships formed and registered under the Limited
Liability Partnership Act, 2008 must be accompanied by certified true copies of: (i) the partnership deed for such
Applicants; (ii) any documents evidencing registration of such Applicant thereof under applicable
statutory/regulatory requirements; (iii) a resolution authorizing the investment and containing operating
instructions; and (iv) specimen signature of authorized persons of such Applicant. Failing this, our Company
reserves the right to accept or reject any Applications for Allotment of the NCDs in whole or in part, in either
case, without assigning any reason therefor.
Applications under a power of attorney by limited companies, corporate bodies and registered societies
In case of Applications made pursuant to a power of attorney by Applicants from Category I, a certified copy of
the power of attorney or the relevant resolution or authority, as the case may be, along with a certified copy of the
memorandum of association and articles of association and/or bye laws must be lodged along with the
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Application Form. Failing this, our Company reserves the right to accept or reject any Application in whole or in
part, in either case, without assigning any reason therefor.
In case of Applications made pursuant to a power of attorney by Applicants from Category II and Category III, a
certified copy of the power of attorney must be lodged along with the Application Form.
In case of physical ASBA Applications made pursuant to a power of attorney, a certified copy of the power of
attorney must be lodged along with the Application Form. Failing this, our Company, in consultation with the
Lead Managers, reserves the right to reject such Applications.
Our Company, in its absolute discretion, reserves the right to relax the above condition of attaching
the power of attorney along with the Application Forms subject to such terms and conditions that
our Company and the Lead Managers may deem fit.
Applications by provident funds, pension funds, superannuation funds and gratuity funds which are
authorized to invest in the NCDs
Applications by provident funds, pension funds, superannuation funds and gratuity funds which are
authorised to invest in the NCDs, for Allotment of the NCDs must be accompanied by certified true copies
of: (i) any Act/rules under which they are incorporated; (ii) a power of attorney, if any, in favour of one or
more trustees thereof, (ii) a board resolution authorising investments; (iii) such other documents evidencing
registration thereof under applicable statutory/regulatory requirements; (iv) specimen signature of
authorized person; (v) a certified copy of the registered instrument for creation of such fund/trust; and (vi)
any tax exemption certificate issued by Income Tax authorities. Failing this, our Company reserves the right
to accept or reject any Applications for Allotment of the NCDs in whole or in part, in either case, without
assigning any reason therefor.
Applications by National Investment Funds
Application made by a National Invest Fund for Allotment of the NCDs must be accompanied by certified true
copies of: (i) a resolution authorising investment and containing operating instructions; and (ii) specimen
signatures of authorized persons. Failing this, our Company reserves the right to accept or reject any Applications
for Allotment of the NCDs in whole or in part, in either case, without assigning any reason therefor.
Applications cannot be made by:
(a) Minors without a guardian name (A guardian may apply on behalf of a minor. However, the name of the
guardian will need to be mentioned on the Application Form);
(b) Foreign nationals;
(c) Persons resident outside India;
(d) Foreign Institutional Investors;
(e) Non Resident Indians;
(f) Qualified Foreign Investors;
(g) Overseas Corporate Bodies;
(h) Foreign Venture Capital Funds;
(i) Persons ineligible to contract under applicable statutory/ regulatory requirements.
In case of Applications for Allotment of the NCDs in dematerialised form, the Registrar shall verify the above on
the basis of the records provided by the Depositories based on the DP ID and Client ID provided by the
Applicants in the Application Form and uploaded onto the electronic system of the Stock Exchanges by the
Members of the Syndicate or the Trading Members, as the case may be.
Payment instructions
Payment mechanism for ASBA Applicants
An ASBA Applicant shall specify details of the ASBA Account Number in the Application Form and the relevant
SCSB shall block an amount equivalent to the Application Amount in the ASBA Account specified in the
Application Form. Upon receipt of an intimation from the Registrar to the Issue, the SCSBs shall, on the
Designated Date, transfer such blocked amount from the ASBA Account to the Public Issue Account in terms of
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the Escrow Agreement. The balance amount remaining after the finalisation of the Basis of Allotment shall be
unblocked by the SCSBs on the basis of the instructions issued in this regard by the Registrar to the respective
SCSB within 12 (twelve) Working Days of the Issue Closing Date. The Application Amount shall remain blocked
in the ASBA Account until transfer of the Application Amount to the Public Issue Account, or until withdrawal/
failure of the relevant Tranche Issue or until rejection of the ASBA Application, as the case may be.
Payment mechanism for non ASBA Applicants
We shall open Escrow Accounts with one or more Escrow Collection Banks in whose favour the Applicants
(except for ASBA Applicants) shall draw cheques or demand drafts. All Applicants would be required to pay the
full Application Amount at the time of the submission of the Application Form. Cheques or demand drafts for the
Application Amount received from Applicants would be deposited by the Members of the Syndicate and Trading
Members, as the case may be, in the Escrow Accounts.
Details of the branches of the Escrow Collection Banks where the Application Forms along with cheques/
demand drafts submitted by a non-ASBA Applicants shall be deposited by the Members of the Syndicate and
Trading Members are available on the website of the Lead Managers at www.edelweissfin.com and
www.akgroup.co.in. A link to the said web pages shall also be available on the website of BSE at
www.bseindia.com. A link shall also be provided to the above mentioned websites in the Application Form as
well.
Each Applicant (except for ASBA Applicants) shall draw a cheque or demand draft for the Application Amount as
per the following terms:
a) The payment instruments from the Applicants shall be payable into the Escrow Account drawn as
specified in the relevant Tranche Prospectus.
b) Payments should be made by cheque, or a demand draft drawn on any bank (including a co-operative
bank), which is situated at, and is a member of or sub-member of the bankers’ clearing house located at
the centre where the Application Form is submitted. Outstation cheques/bank drafts drawn on banks not
participating in the clearing process will not be accepted and Applications accompanied by such cheques
or bank drafts are liable to be rejected.
c) The monies deposited in the Escrow Account will be held for the benefit of the Applicants until the
Designated Date.
d) On the Designated Date, the Escrow Collection Banks shall transfer the funds from the Escrow Account
as per the terms of the Escrow Agreement and this Draft Shelf Prospectus into the Public Issue Account.
The Escrow Collection Bank shall also, upon receipt of instructions from the Lead Managers and the
Registrar, transfer all amounts payable to Applicants, who have not been allotted NCDs to the Refund
Accounts.
Applications accompanied by non-CTS cheques are liable to be rejected, if the non-CTS cheque is not cleared
within 6 working days of the closure of the issue.
Please note that Applicants from Category I can also pay Application Amounts through the RTGS
mechanism.
Applicants should note that the escrow mechanism is not prescribed by SEBI and has been established as an
arrangement between our Company, the Lead Managers, the Escrow Collection Banks and the Registrar to
facilitate collections from the Applicants.
Please note that Applications accompanied by Application Amounts in cash/ stock invest/ money orders/ postal
orders will not be accepted.
The Escrow Collection Banks will act in terms of this Draft Shelf Prospectus and the relevant Tranche Prospectus
and the Escrow Agreement. The Escrow Collection Banks shall not exercise any lien whatsoever over the monies
deposited therein. It is mandatory for our Company to keep the proceeds of the Issue in an escrow account until
the documents for creation of security as stated in this Draft Shelf Prospectus are executed.
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On the Designated Date, the Escrow Collection Banks shall transfer the funds represented by Allotment of
NCDs (other than in respect of Allotment to successful ASBA Applicants) from the Escrow Account, as per the
terms of the Escrow Agreement, into the Public Issue Account(s) provided that our Company will have access to
such funds only after receipt of minimum subscription which is 75% of the Base Issue before the Issue Closing
Date, receipt of final listing and trading approval from the Stock Exchange and execution of the Debenture Trust
Deed.
Additional information for Applicants
1. Application Forms submitted by Applicants whose beneficiary accounts are inactive shall be rejected.
2. For ASBA Applicants, no separate receipts will be issued for the money blocked on the submission of
Application Form. However, the collection centre of the Members of the Syndicate or the SCSB or the
Trading Member, as the case may be, will acknowledge the receipt of the Application Forms by
stamping and returning to the Applicant the acknowledgement slip. This acknowledgement slip will
serve as the duplicate of the Application Form for the records of the Applicant.
3. Applications should be submitted on the Application Form only. In the event that physical Application
Forms do not bear the stamp of the Members of the Syndicate/ Trading Member or the relevant
Designated Branch, they are liable to be rejected.
4. Application Forms submitted by Applicants shall be for allotment of NCDs only in dematerialized form.
Applicants are advised not to submit Application Forms to Escrow Collection Banks and the same will be
rejected in such cases and the Applicants will not be entitled to any compensation whatsoever.
Filing of the Shelf Prospectus and Tranche Prospectus with ROC
A copy of the Shelf Prospectus and relevant Tranche Prospectus shall be filed with the ROC in accordance with
section 26 and section 31 of the Companies Act, 2013.
Pre-Issue Advertisement
Our Company will issue a statutory advertisement on or before the relevant Issue Opening Date of each relevant
Tranche Issue. This advertisement will contain the information as prescribed under the SEBI Debt Regulations
and Section 30 of the Companies Act, 2013. Material updates, if any, between the date of filing of the Shelf
Prospectus and the relevant Tranche Prospectus with the ROC and the date of release of this statutory
advertisement will be included in the statutory advertisement.
Instructions for completing the Application Form
(a) Applications must be made in the prescribed Application Form.
(b) Application Forms are to be completed in full, in BLOCK LETTERS in ENGLISH and in
accordance with the instructions contained in this Draft Shelf Prospectus, the Shelf Prospectus, the
Tranche Prospectus and the Application Form. Incomplete Application Forms are liable to be
rejected. Applicants should note that the Members of the Syndicate, or the Trading Members, as
appropriate, will not be liable for errors in data entry due to incomplete or illegible Application
Forms.
(c) Applications are required to be for a minimum of such NCDs and in multiples of such NCDs
thereafter as specified in this Draft Shelf Prospectus.
(d) Thumb impressions and signatures other than in the languages specified in the Eighth Schedule in the
Constitution of India must be attested by a Magistrate or a Notary Public or a Special Executive
Magistrate under official seal.
(e) Applications should be in single or joint names and not exceeding three names, and in the same
order as their Depository Participant details and Applications should be made by Karta in case the
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Applicant is an HUF.
(f) Applicants applying for Allotment must provide details of valid and active DP ID, Client ID and
PAN clearly and without error. On the basis of such Applicant’s active DP ID, Client ID and PAN
provided in the Application Form, and as entered into the electronic Application system of the Stock
Exchange by SCSBs, the Members of the Syndicate at the Syndicate ASBA Application Locations and
the Trading Members, as the case may be, the Registrar will obtain from the Depository the
Demographic Details. Invalid accounts, suspended accounts or where such account is classified as
invalid or suspended may not be considered for Allotment of the NCDs.
(g) ASBA Applicants must ensure that their Application Forms are:
(i) made in a single name; and
(ii) completed in full, in BLOCK LETTERS in ENGLISH and in accordance with the instructions
contained in this Draft Shelf Prospectus, the relevant Tranche Prospectus and in the Application
Form.
(h) If the ASBA Account holder is different from the ASBA Applicant, the Application Form should be
signed by the ASBA Account holder also, in accordance with the instructions provided in the
Application Form.
(i) All Applicants are required to tick the relevant column in the “Category of Investor” box in the
Application Form.
(j) Applications for all the Options of the NCDs may be made in a single Application Form only.
(k) All Applicants are required to tick the relevant box of the “Mode of Application” in the Application
Form, choosing either the ASBA or Non-ASBA mechanism.
Applicants’ PAN, Depository Account and Bank Account Details
ALL APPLICANTS APPLYING FOR ALLOTMENT OF THE NCDS SHOULD MENTION THEIR
DP ID, CLIENT ID AND PAN IN THE APPLICATION FORM. APPLICANTS MUST ENSURE
THAT THE DP ID, CLIENT ID AND PAN GIVEN IN THE APPLICATION FORM IS EXACTLY
THE SAME AS THE DP ID, CLIENT ID AND PAN AVAILABLE IN THE DEPOSITORY
DATABASE. IF THE BENEFICIARY ACCOUNT IS HELD IN JOINT NAMES, THE
APPLICATION FORM SHOULD CONTAIN THE NAME AND PAN OF BOTH THE HOLDERS
OF THE BENEFICIARY ACCOUNT AND SIGNATURES OF BOTH HOLDERS WOULD BE
REQUIRED IN THE APPLICATION FORM.
On the basis of the DP ID, Client ID and PAN provided by them in the Application Form, the
Registrar will obtain from the Depository the Demographic Details of the Applicants including PAN
and MICR code. These Demographic Details would be used for giving Allotment Advice and refunds
(for non-ASBA Applicants), if any, to the Applicants. Hence, Applicants are advised to immediately
update their Demographic Details (including bank account details) as appearing on the records of the
Depository Participant and ensure that they are true and correct. Please note that failure to do so
could result in delays in despatch/ credit of refunds to Applicants, delivery of Allotment Advice or
unblocking of ASBA Accounts at the Applicants’ sole risk, and neither the Members of the Syndicate
nor the Trading Members, nor the Registrar, nor the Escrow Collection Banks, nor the SCSBs, nor
our Company shall have any responsibility and undertake any liability for the same.
Applicants should note that in case the DP ID, Client ID and PAN mentioned in the Application Form, as
the case may be and entered into the electronic Application system of the Stock Exchanges by the
Members of the Syndicate, the Trading Members or the SCSBs, as the case may be, do not match with the
DP ID, Client ID and PAN available in the Depository database or in case PAN is not available in the
Depository database, the Application Form is liable to be rejected and our Company, and the Members of
the Syndicate shall not be liable for losses, if any.
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These Demographic Details would be used for all correspondence with the Applicants including mailing of the
Allotment Advice and printing of bank particulars on the refund orders or for refunds through electronic transfer
of funds, as applicable. The Demographic Details given by Applicants in the Application Form would not be
used for any other purpose by the Registrar except in relation to the Issue.
By signing the Application Form, Applicants applying for the NCDs would be deemed to have authorised the
Depositories to provide, upon request, to the Registrar, the required Demographic Details as available on its
records.
Refund orders/ Allotment Advice would be mailed by speed post or registered post at the address of the
Applicants as per the Demographic Details received from the Depositories. Applicants may note that delivery of
refund orders/ Allotment Advice may get delayed if the same once sent to the address obtained from the
Depositories are returned undelivered. In such an event, the address and other details given by the Applicant
(other than ASBA Applicants) in the Application Form would be used only to ensure dispatch of refund orders.
Further, please note that any such delay shall be at such Applicants’ sole risk and neither our Company, Escrow
Collection Banks, Registrar nor the Lead Managers shall be liable to compensate the Applicant for any losses
caused to the Applicants due to any such delay or liable to pay any interest for such delay. In case of refunds
through electronic modes as detailed in this Draft Shelf Prospectus, refunds may be delayed if bank particulars
obtained from the Depository Participant are incorrect.
In case of Applications made under powers of attorney, our Company in its absolute discretion, reserves the
right to permit the holder of a power of attorney to request the Registrar that for the purpose of printing
particulars on the refund order and mailing of the refund orders/Allotment Advice through speed post or
registered post, the Demographic Details obtained from the Depository of the Applicant shall be used.
With effect from August 16, 2010, the beneficiary accounts of Applicants for whom PAN details have not been
verified shall be suspended for credit and no credit of Bonds pursuant to the Issue will be made into the accounts
of the Applicants. Application Forms submitted by Applicants whose beneficiary accounts are inactive shall be
rejected. Furthermore, in case no corresponding record is available with the Depositories, which matches the
three parameters, namely, DP ID, Client ID and PAN, then such Applications are liable to be rejected.
Electronic registration of Applications
(a) The Members of the Syndicate, SCSBs and Trading Members will register the Applications using the
on-line facilities of Stock Exchange. The Lead Managers, our Company, and the Registrar are not
responsible for any acts, mistakes or errors or omission and commissions in relation to (i) the
Applications accepted by the SCSBs and Trading Members, (ii) the Applications uploaded by the
SCSBs and the Trading Members, (iii) the Applications accepted but not uploaded by the SCSBs or
the Trading Members, (iv) with respect to ASBA Applications accepted and uploaded by the SCSBs
without blocking funds in the ASBA Accounts or (iv) with respect to ASBA Applications accepted
and uploaded by Members of the Syndicate at the Syndicate ASBA Application Locations for which
the Application Amounts are not blocked by the SCSBs.
(b) The Stock Exchange will offer an electronic facility for registering Applications for the Issue. This
facility will be available on the terminals of Members of the Syndicate, Trading Members and the
SCSBs during the Issue Period. On the Issue Closing Date, the Members of the Syndicate, Trading
Members and the Designated Branches of the SCSBs shall upload the Applications till such time as
may be permitted by the Stock Exchange. This information will be available with the Members of the
Syndicate, Trading Members and the Designated Branches of the SCSBs on a regular basis. Applicants
are cautioned that a high inflow of high volumes on the last day of the Issue Period may lead to some
Applications received on the last day not being uploaded and such Applications will not be considered
for allocation.
(c) Based on the aggregate demand for Applications registered on the electronic facilities of the Stock
Exchange, a graphical representation of consolidated demand for the NCDs, as available on the
websites of the Stock Exchange, would be made available at the Application centres as provided in
the Application Form during the Issue Period.
(d) At the time of registering each Application, SCSBs, the Members of the Syndicate and Trading
Members, as the case may be, shall enter the details of the Applicant, such as the Application Form
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number, PAN, Applicant category, DP ID, Client ID, number and Option(s) of NCDs applied,
Application Amounts, details of payment instruments (for non – ASBA Applications) and any other
details that may be prescribed by the online uploading platform of the Stock Exchange.
(e) A system generated TRS will be given to the Applicant as a proof of the registration of his
Application. It is the Applicant’s responsibility to obtain the TRS from the SCSBs, Members of the
Syndicate or the Trading Members, as the case may be. The registration of the Applications by the
SCSBs, Members of the Syndicate or Trading Members does not guarantee that the NCDs shall be
allocated/ Allotted by our Company. Such TRS will be non-negotiable and by itself will not create
any obligation of any kind.
(f) The permission given by the Stock Exchange to use their network and software of the online system
should not in any way be deemed or construed to mean that the compliance with various statutory and
other requirements by our Company, and/or the Lead Managers are cleared or approved by the Stock
Exchange; nor does it in any manner warrant, certify or endorse the correctness or completeness of any
of the compliance with the statutory and other requirements nor does it take any responsibility for the
financial or other soundness of our Company, the management or any scheme or project of our
Company; nor does it in any manner warrant, certify or endorse the correctness or completeness of any
of the contents of this Draft Shelf Prospectus or the relevant Tranche Prospectus; nor does it warrant
that the NCDs will be listed or will continue to be listed on the Stock Exchange.
(g) In case of apparent data entry error by either the Members of the Syndicate or the Trading Members,
in entering the Application Form number in their respective schedules, other things remaining
unchanged, the Application Form may be considered as valid and such exceptions may be recorded
in minutes of the meeting submitted to the Designated Stock Exchange.
(h) Only Applications that are uploaded on the online system of the Stock Exchange shall be considered
for Allotment. The Members of the Syndicate, Trading Members and the Designated Braches of the
SCSBs shall capture all data relevant for the purposes of finalizing the Basis of Allotment while
uploading Application data in the electronic systems of the Stock Exchange. In order that the data so
captured is accurate the Members of the Syndicate, Trading Members and the Designated Braches of
the SCSBs will be given up to one Working Day after the Issue Closing Date to modify/ verify certain
selected fields uploaded in the online system during the Issue Period after which the data will be sent to
the Registrar for reconciliation with the data available with the NSDL and CDSL.
General Instructions
Do’s
 Check if you are eligible to apply as per the terms of the Draft Shelf Prospectus, the Shelf
Prospectus, the relevant Tranche Prospectus and applicable law;
 Read all the instructions carefully and complete the Application Form;
 Ensure that the details about Depository Participant and beneficiary account are correct and the
beneficiary account is active;
 Applications are required to be in single or joint names (not more than three);
 In case of an HUF applying through its Karta, the Applicant is required to specify the name of an Applicant
in the Application Form as ‘XYZ Hindu Undivided Family applying through PQR’, where PQR is the name
of the Karta;
 Ensure that Applications are submitted to the Members of the Syndicate, Trading Members or the
Designated Branches of the SCSBs, as the case may be, before the closure of application hours on the
Issue Closing Date;
 Ensure that the Application Forms (for non-ASBA Applicants) are submitted at the collection centres
provided in the Application Forms, bearing the stamp of a Member of the Syndicate or a Trading
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Members of the Stock Exchange, as the case may be;
 Information provided by the Applicants in the Application Form will be uploaded on to the online platform
of the Stock Exchange by the Members of the Syndicate and Trading Members, as the case may be, and the
electronic data will be used to make allocation/ Allotment. The Applicants should ensure that the details are
correct and legible;
 Ensure that the Applicant’s names (for Applications for the NCDs in dematerialised form) given in the
Application Form is exactly the same as the names in which the beneficiary account is held with the
Depository Participant. In case the Application Form is submitted in joint names, ensure that the beneficiary
account is also held in same joint names and such names are in the same sequence in which they appear in
the Application Form;
 Ensure that you have funds equal to or more than the Application Amount in your ASBA Account before
submitting the Application Form for ASBA Applications;
 Ensure that you mention your PAN in the Application Form. In case of joint applicants, the PAN of all the
Applicants should be provided, and for HUFs, PAN of the HUF should be provided. Any Application Form
without the PAN is liable to be rejected. Applicants should not submit the GIR Number instead of the PAN
as the Application is liable to be rejected on this ground;
Except for Application (i) on behalf of the Central or State Government and officials appointed by the courts, and
(ii) (subject to the circular dated April 3, 2008 issued by SEBI) from the residents of the state of Sikkim, each of
the Applicants should provide their PAN. Application Forms in which the PAN is not provided will be rejected.
The exemption for the Central or State Government and officials appointed by the courts and for investors
residing in the State of Sikkim is subject to (a) the Demographic Details received from the respective depositories
confirming the exemption granted to the beneficiary owner by a suitable description in the PAN field and the
beneficiary account remaining in “active status”; and (b) in the case of residents of Sikkim, the address as per the
demographic details evidencing the same.
 Ensure that the Demographic Details as provided in the Application Form are updated, true and correct in
all respects;
 Ensure that you request for and receive a TRS for all your Applications and an acknowledgement as a
proof of having been accepted;
 Ensure that you have obtained all necessary approvals from the relevant statutory and/or regulatory
authorities to apply for, subscribe to and/or seek Allotment of the NCDs;
 Ensure that signatures other than in the languages specified in the Eighth Schedule to the Constitution of
India is attested by a Magistrate or a Notary Public or a Special Executive Magistrate under official seal;
 Ensure that your Application Form bears the stamp of the relevant SCSB, Trading Members or the Members
of the Syndicate to whom the Application is submitted;
 In the event that you are submitting an Application Form to a Trading Member, ensure that he is located in a
town/ city that has a designated branch of the Escrow Collection Banks (a list of such locations are available
on the websites of Stock Exchange, the Company and Lead Managers, a link for the same being available in
the Application Form);
 Ensure that you receive a TRS from a designated branch of an SCSB, a Trading Member or from the
Members of the Syndicate, as the case may be, for the submission and upload of your Application Form into
the electronic platform of the Stock Exchange;
 Applicants (other than ASBA Applicants) are requested to write the sole/ first Applicant’s name, his
phone number and the Application number on the reverse of the instruments by which the payments
are made;
 All Applicants are requested to tick the relevant column “Category of Investor” in the Application Form; and
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 Tick the Option of NCDs in the Application Form that you wish to apply for.
Don’ts
 Do not apply for lower than the minimum Application size;
 Do not pay the Application amount in cash, by money order, postal order, stock invest;
 Do not send the Application Forms by post; instead submit the same to the Members of the Syndicate and
Trading Members (as the case may be) only;
 Do not submit the GIR number instead of the PAN as the Application is liable to be rejected on this
ground;
 Do not submit incorrect details of the DP ID, Client ID and PAN or provide details for a beneficiary
account which is suspended or for which details cannot be verified by the Registrar;
 Do not fill up the Application Form such that the NCDs applied for exceeds the Issue Size and/or
investment limit or maximum number of NCDs that can be held under the applicable laws or regulations
or maximum amount permissible under the applicable regulations;
 Do not submit Applications on plain paper or on incomplete or illegible Application Forms;
 Do not submit an Application in case you are not eligible to acquire the NCDs under applicable law or
your relevant constitutional documents or otherwise;
 Do not submit the Application Forms without the Application Amount; and
 Do not apply if you are not competent to contract under the Indian Contract Act, 1872.
Additional instructions specific for ASBA Applicants
Do’s
 Before submitting the physical Application Form with the Member of the Syndicate at the Syndicate
ASBA Application Locations ensure that the SCSB, whose name has been filled in the Application Form,
has named a branch in that centre;
 For ASBA Applicants applying through Syndicate ASBA, ensure that your Application Form is
submitted to the Members of the Syndicate at the Syndicate ASBA Application Locations and not to the
Escrow Collection Banks (assuming that such bank is not a SCSB), to our Company, the Registrar or
Trading Members;
 For ASBA Applicants applying through the SCSBs, ensure that your Application Form is submitted at a
Designated Branch of the SCSB where the ASBA Account is maintained, and not to the Escrow Collection
Banks (assuming that such bank is not a SCSB), to our Company, the Registrar or the Members of the
Syndicate or Trading Members;
 Ensure that the Application Form is signed by the ASBA Account holder in case the ASBA Applicant is
not the account holder;
 Ensure that you have mentioned the correct ASBA Account number in the Application Form;
 Ensure that you have funds equal to the Application Amount in the ASBA Account before submitting
the Application Form to the respective Designated Branch, or to the Members of the Syndicate at the
Syndicate ASBA Application Locations, or to the Trading Members, as the case may be;
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 Ensure that you have correctly ticked, provided or checked the authorisation box in the Application
Form, or have otherwise provided an authorisation to the SCSB via the electronic mode, for the
Designated Branch to block funds in the ASBA Account equivalent to the Application Amount
mentioned in the Application Form; and
 Ensure that you receive an acknowledgement from the Designated Branch or the concerned member of
the Syndicate, or the Trading Member, as the case may be, for the submission of the Application Form.
Don’ts
 Do not make payment of the Application Amounts in any mode other than through blocking of the
Application Amounts in the ASBA Accounts shall not be accepted under the ASBA process;
 Do not submit the Application Form with a Member of the Syndicate at a location other than the Syndicate
ASBA Application Locations;
 Do not submit non-ASBA Application Forms to any of the collection centres of the Escrow Collection
Banks or to the Registrar or directly to the Company;
 Do not send your physical Application Form by post. Instead submit the same with a Designated Branch or a
member of the Syndicate at the Syndicate ASBA Application Locations, or a Trading Member, as the case
may be; and
 Do not submit more than five Application Forms per ASBA Account.
The Members of the Syndicate and the Trading Members of the Stock Exchange shall ensure they shall accept
Application Forms only in such cities/ towns where the designated branches of the Escrow Collection Banks are
available. Details of the branches of the Escrow Banks where the Application Form along with the cheque/
demand draft submitted by a Non ASBA applicant shall be deposited by the Members of the Syndicate and
Trading Members are available on the website of the Lead Managers at www.edelweissfin.com and
www.akgroup.co.in. A link to the said web pages shall also be available on the website of BSE at
www.bseindia.com. A link shall also be provided to the above mentioned websites in the Application Forms as
well.
Submission of Application Forms
For details in relation to the manner of submission of Application Forms, see the section titled “Issue Procedure
– Methods of Application” at page 149 of this Draft Shelf Prospectus.
OTHER INSTRUCTIONS
Joint Applications
Applications may be made in single or joint names (not exceeding three). In the case of joint Applications, all
payments will be made out in favour of the first Applicant. All communications will be addressed to the first
named Applicant whose name appears in the Application Form and at the address mentioned therein.
Additional/ Multiple Applications
An Applicant is allowed to make one or more Applications for the NCDs for the same or other Options of
NCDs, as specified in the relevant Tranche Prospectus, subject to a minimum Application size as specified in the
relevant Tranche Prospectus for each Application. Any Application for an amount below the aforesaid minimum
Application size will be deemed as an invalid Application and shall be rejected. However, any Application
made by any person in his individual capacity and an Application made by such person in his capacity as a Karta
of an HUF and/or as joint Applicant (second or third applicant), shall not be deemed to be multiple Applications.
Depository Arrangements
We have made depository arrangements with NSDL and CDSL for issue and holding of the NCDs in
dematerialised form. In this context:
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(i) Tripartite Agreements dated December 8, 2010 and August 25, 2006, between us, the Registrar and CDSL
and NSDL, respectively have been executed, for offering depository option to the Applicants.
(ii) It may be noted that NCDs in electronic form can be traded only on stock exchanges having electronic
connectivity with NSDL or CDSL. The Stock Exchanges have connectivity with NSDL and CDSL.
(iii) Interest or other benefits with respect to the NCDs held in dematerialised form would be paid to those NCD
holders whose names appear on the list of beneficial owners given by the Depositories to us as on Record
Date. In case of those NCDs for which the beneficial owner is not identified by the Depository as on the
Record Date/ book closure date, we would keep in abeyance the payment of interest or other benefits, till
such time that the beneficial owner is identified by the Depository and conveyed to us, whereupon the
interest or benefits will be paid to the beneficiaries, as identified, within a period of 30 days.
(iv) The trading of the NCDs shall be in dematerialized form only.
For further information relating to Applications for Allotment of the NCDs in dematerialised form, see the
sections titled “Issue Procedure – Methods of Application” and “Issue Procedure – General Instructions” at
pages 149 and 158 of this Draft Shelf Prospectus respectively.
Communications
All future communications in connection with Applications made in the Issue should be addressed to the
Registrar quoting all relevant details as regards the Applicant and its Application.
Applicants can contact our Compliance Officer as well as the contact persons of our Company/ Lead Managers or
the Registrar in case of any Pre-Issue related problems. In case of Post-Issue related problems such as non-receipt
of Allotment Advice/ credit of NCDs in depository’s beneficiary account/ refund orders, etc., applicants may
contact our Compliance Officer as well as the contact persons of our Company/Lead Managers or Registrar.
Please note that Applicants who have applied for the NCDs through Trading Members should contact the Stock
Exchange in case of any Post-Issue related problems, such as non-receipt of Allotment Advice / credit of NCDs
in depository’s beneficiary account/ refund orders, etc.
Rejection of Applications
The Board of Directors and/or any committee of our Company reserves its full, unqualified and absolute right to
accept or reject any Application in whole or in part and in either case without assigning any reason thereof.
Application may be rejected on one or more technical grounds, including but not restricted to:
 Number of NCDs applied for being less than the minimum Application size;
 Applications not being signed by the sole/joint Applicants;
 Applications submitted without payment of the Application Amount;
 Investor Category in the Application Form not being ticked;
 Bank account details not provided in the Application Form;
 Applications by persons not competent to contract under the Indian Contract Act, 1872 including a minor
without the name of a guardian;
 Applications by stock invest or accompanied by cash/money order/postal order;
 For ASBA Applications, where an authorization to the SCSB for blocking funds in the ASBA Account
has not been provided;
 Applications uploaded after the expiry of the allocated time on the Issue Closing Date, unless extended
by the Stock Exchange, as applicable;
 ASBA Applications submitted to the Members of Syndicate or Trading Members at locations other than
the Syndicate ASBA Application Locations or at a Designated Branch of a SCSB where the ASBA
Account is not maintained, and ASBA Applications submitted directly to an Escrow Collecting Bank
(assuming that such bank is not a SCSB), to our Company or the Registrar;
 Applications made without mentioning the PAN of the Applicant, except for Applications by or on behalf
of the Central or State Government and the officials appointed by the courts and by investors residing in
the State of Sikkim, provided such claims have been verified by the Depository Participants;
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 GIR number mentioned in the Application Form instead of PAN;
 Applications for amounts greater than the maximum permissible amounts prescribed by applicable
regulations;
 Applications by persons/entities who have been debarred from accessing the capital markets by SEBI;
 Applications by any persons outside India;
 For all Applications for Allotment the, DP ID, Client ID and PAN mentioned in the Application Form do
not match with the Depository Participant ID, Client ID and PAN available in the records with the
depositories;
 Applications by persons who are not eligible to acquire the NCDs in terms of applicable laws, rules,
regulations, guidelines and approvals;
 Application Forms from ASBA Applicants not being signed by the ASBA Account holder, if the account
holder is different from the Applicant;
 Applications for an amount below the minimum Application size;
 ASBA Applications not having details of the ASBA Account to be blocked;
 With respect to ASBA Applications, inadequate funds in the ASBA Account to enable the SCSB to block
the Application Amount specified in the Application Form at the time of blocking such Application
Amount in the ASBA Account or no confirmation is received from the SCSB for blocking of funds;
 Applications where clear funds are not available in Escrow Accounts as per final certificates from Escrow
Collection Banks;
 Applications by persons prohibited from buying, selling or dealing in shares, directly or indirectly, by
SEBI or any other regulatory authority;
 Applications by Applicants seeking Allotment in dematerialised form whose demat accounts have been
'suspended for credit' pursuant to the circular issued by SEBI on July 29, 2010 bearing number
CIR/MRD/DP/22/2010;
 Non- ASBA Applications accompanied by more than one payment instrument;
 Applications not uploaded on the terminals of the Stock Exchange;
 Applications providing an inoperative demat account number;
 In case of Applications under power of attorney or by limited companies, corporate, trust etc., relevant
documents are not submitted along with the Application Form;
 Applications (except for ASBA Applications) where clear funds are not available in Escrow Accounts as
per final certificates from the Escrow Collection Banks;
 With respect to ASBA Applications, the ASBA Account not having credit balance to meet the
Application Amounts or no confirmation is received from the SCSB for blocking of funds;
 Applications not uploaded on the terminals of the BSE;
For further instructions regarding Application for the NCDs, Applicants are requested to read the Application
Form.
Allotment Advice/ Refund Orders
In case of Applications other than those made through the ASBA process, the unutilised portion of the
Application Amounts will be refunded to the Applicant within 12 (twelve) Working Days of the Issue Closing
Date through any of the following modes:
i. Direct Credit – Applicants having bank accounts with the Bankers to the Issue shall be eligible to
receive refunds through direct credit. Charges, if any, levied by the relevant bank(s) for the same would
be borne by us.
ii. NACH – Payment of refund would be done through NACH for Applicants having an account at any of
the centres where such facility has been made available. This mode of payment of refunds would be
subject to availability of complete bank account details including the MICR code as available from the
Depositories. The payment of refunds through this mode will be done for Applicants having a bank
account at any centre where NACH facility has been made available (subject to availability of all
information for crediting the refund through NACH).
iii. NEFT – Payment of refund shall be undertaken through NEFT wherever the Applicant’s bank has been
assigned the Indian Financial System Code (“IFSC”), which can be linked to a MICR, allotted to that
particular bank branch. IFSC Code will be obtained from the website of RBI as on a date immediately
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prior to the date of payment of refund, duly mapped with MICR numbers. In case of online payment or
wherever the Investors have registered their nine digit MICR number and their bank account number
with the depository participant while opening and operating the demat account, the MICR number and
their bank account number will be duly mapped with the IFSC Code of that particular bank branch and
the payment of refund will be made to the Investors through this method.
iv. RTGS – If the refund amount exceeds ` 200,000, Applicants have the option to receive refund through
RTGS. Charges, if any, levied by the refund bank(s) for the same would be borne by us. Charges, if any,
levied by the Applicant’s bank receiving the credit would be borne by the Applicant.
v. For all other Applicants (not being ASBA Applicants), refund orders will be despatched through speed
post/ registered post. Such refunds will be made by cheques, pay orders or demand drafts drawn in
favour of the sole/ first Applicants and payable at par.
In the case of Applicants other than ASBA Applicants, applying for the NCDs in dematerialised form, the
Registrar will obtain from the Depositories the Applicant’s bank account details, including the MICR code,
on the basis of the DP ID, Client ID and PAN provided by the Applicants in their Application Forms.
Accordingly, Applicants are advised to immediately update their details as appearing on the records of their
Depository Participants. Failure to do so may result in delays in dispatch of refund orders or refunds through
electronic transfer of funds, as applicable, and any such delay will be at the Applicant’s sole risk and neither
our Company, the Registrar, the Escrow Collection Banks, or the Members of the Syndicate, will be liable to
compensate the Applicants for any losses caused to them due to any such delay, or liable to pay any interest
for such delay.
In case of ASBA Applicants, the Registrar shall instruct the relevant SCSB to unblock the funds in the
relevant ASBA Account to the extent of the Application Amount specified in the Application Forms for
withdrawn, rejected or unsuccessful or partially successful ASBA Applications within 12 (twelve) Working
Days of the Issue Closing Date.
Our Company and the Registrar shall credit the allotted NCDs to the respective beneficiary accounts/
despatch the Letters of Allotment or letters of regret/ Refund Orders by registered post/speed post at the
Applicant’s sole risk, within 12 Working Days from the Issue Closing Date. We may enter into an
arrangement with one or more banks in one or more cities for refund to the account of the applicants through
Direct Credit/RTGS/NEFT.
Further,
(a) Allotment of NCDs in the Issue shall be made within a time period of 12 Working Days from the
Issue Closing Date;
(b) Credit to dematerialised accounts will be given within two Working Days from the Date of
Allotment;
(c) Interest at a rate of 15% per annum will be paid if the Allotment has not been made and/or the
refund orders have not been dispatched to the Applicants within 12 Working Days from the Issue
Closing Date, for the delay beyond 12 Working Days; and
(d) Our Company will provide adequate funds to the Registrar for this purpose.
Retention of oversubscription
As specified in the relevant Tranche Prospectus for each Tranche Issue.
Grouping of Applications and allocation ratio
For the purposes of the basis of allotment:
A. Applications received from Category I Applicants: Applications received from Applicants belonging to
Category I shall be grouped together, (“Institutional Portion”);
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B. Applications received from Category II Applicants: Applications received from Applicants belonging to
Category II, shall be grouped together, (“Non-Institutional Portion”).
C. Applications received from Category III Applicants: Applications received from Applicants belonging to
Category III shall be grouped together, (“High Net Worth Individual Investors Portion”).
D. Applications received from Category IV Applicants: Applications received from Applicants belonging to
Category IV shall be grouped together, (“Retail Individual Investors Portion”).
For removal of doubt, the terms "Institutional Portion", "Non-Institutional Portion", "High Net Worth
Individual Investors Portion" and "Retail Individual Investors Portion" are individually referred to as
“Portion” and collectively referred to as “Portions”.
For the purposes of determining the number of NCDs available for allocation to each of the abovementioned
Portions, our Company shall have the discretion of determining the number of NCDs to be allotted over and
above the Base Issue, in case our Company opts to retain any oversubscription in a Tranche Issue upto an
amount specified under the relevant Tranche Prospectus. The aggregate value of NCDs decided to be allotted
over and above the Base Issue, (in case our Company opts to retain any oversubscription in the Issue), and/or
the aggregate value of NCDs upto the Base Issue Size shall be collectively termed as the “Overall Issue Size”.
Basis of Allotment
Allocation Ratio
Retention of oversubscription
Investor Withdrawals and Pre-closure
Investor Withdrawal: Applicants are allowed to withdraw their Applications at any time prior to the Issue
Closure Date.
Pre-closure: Our Company, in consultation with the Lead Managers reserves the right to close the relevant
Tranche Issue at any time prior to the Issue Closing Date, subject to receipt of minimum subscription which
is 75% of the Base Issue before the Issue Closing Date. Our Company shall allot NCDs with respect to the
Applications received at the time of such pre-closure in accordance with the Basis of Allotment as described
hereinabove and subject to applicable statutory and/or regulatory requirements.
Further, the relevant Tranche Issue will also be withdrawn by our Company in the event that the aggregate
Applications received for the NCDs is lesser than the minimum subscription which is 75% of the Base Issue before
the Issue Closing Date.
In the event of such early closure of the Issue, our Company shall ensure that public notice of such early
closure is published on or before such early date of closure or the relevant Issue Closing Date of the relevant
Tranche Issue, as applicable, through advertisement(s) in all those newspapers in which pre-issue
advertisement and advertisement for opening or closure of the issue have been given.
Utilisation of Application Amounts
The sum received in respect of a Tranche Issue will be kept in separate bank accounts and we will have
access to such funds as per applicable provisions of law(s), regulations and approvals.
Utilisation of the proceeds of the Issue
(a) All monies received pursuant to the Issue of NCDs to public shall be transferred to a separate bank
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account other than the bank account referred to in sub-section (3) of section 40 of the Act.
(b) Details of all monies utilised out of Issue referred to in sub-item (a) shall be disclosed under an
appropriate separate head in our Balance Sheet indicating the purpose for which such monies had
been utilised.
(c) Details of all unutilised monies out of issue of NCDs, if any, referred to in sub-item (a) shall be
disclosed under an appropriate separate head in our Balance Sheet indicating the form in which such
unutilised monies have been invested.
(d) the details of all utilized and unutilised monies out of the monies collected in the previous issue
made by way of public offer shall be disclosed and continued to be disclosed in the balance sheet till
the time any part of the proceeds of such previous issue remains unutilized indicating the purpose
for which such monies have been utilized, and the securities or other forms of financial assets in
which such unutilized monies have been invested;
(e) We shall utilize the Issue proceeds only upon execution of the Debenture Trust Deeds as stated
in this Draft Shelf Prospectus, the Shelf Prospectus, the relevant Tranche Prospectus, creation
of security as stated in this Draft Shelf Prospectus, receipt of the listing and trading approval from
the Stock Exchange and on receipt of the minimum subscription of 75% of the Base Issue.
(f) The Issue proceeds shall not be utilized towards full or part consideration for the purchase or any
other acquisition, inter alia by way of a lease, of any immovable property.
Impersonation
Attention of the Applicants is specifically drawn to the provisions of sub-section (1) of section 38 of the
Companies Act, 2013, which is reproduced below:
“Any person who:
(a) makes or abets making of an application in a fictitious name to a company for acquiring, or
subscribing for, its securities; or
(b) makes or abets making of multiple applications to a company in different names or in different
combinations of his name or surname for acquiring or subscribing for its securities; or
(c) otherwise induces directly or indirectly a company to allot, or register any transfer of, securities to
him, or to any other person in a fictitious name, shall be liable for action under section 447.”
Listing
The NCDs proposed to be offered in pursuance of this Draft Shelf Prospectus, the Shelf Prospectus and the
relevant Tranche Prospectus will be listed on the BSE. We have received the in-principle approval dated
●, 2017 from the BSE. The application for listing of the NCDs will be made to the Stock Exchange at an
appropriate stage.
If permissions to deal in and for an official quotation of our NCDs are not granted by the Stock Exchange,
our Company will forthwith repay, without interest, all moneys received from the applicants in pursuance of
this Draft Shelf Prospectus. Our Company shall ensure that all steps for the completion of the necessary
formalities for listing and commencement of trading at the Stock Exchange are taken within 12 Working
Days from the date of Allotment.
For the avoidance of doubt, it is hereby clarified that in the event of non subscription to any one or more of
the Options, such NCDs with Option(s) shall not be listed.
Undertaking by the Issuer
We undertake that:
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a) the complaints received in respect of the Issue (except for complaints in relation to Applications
submitted to Trading Members) shall be attended to by us expeditiously and satisfactorily;
b) we shall take necessary steps for the purpose of getting the NCDs listed within the specified time i.e. 12
Working Days from the Issue Closing Date.;
c) the funds required for dispatch of refund orders/ allotment advice/ certificates by registered post/ speed
post shall be made available to the Registrar by our Company;
d) necessary cooperation to the credit rating agencies shall be extended in providing true and adequate
information until the debt obligations in respect of the NCDs are outstanding;
e) we shall forward the details of utilisation of the funds raised through the NCDs duly certified by our
statutory auditors, to the Debenture Trustee at the end of each half year;
f) we shall disclose the complete name and address of the Debenture Trustee in our annual report;
g) we shall provide a compliance certificate to the Trustee (on an annual basis) in respect of compliance
with the terms and conditions of issue of NCDs as contained in this Draft Shelf Prospectus; and
h) we shall make necessary disclosures/ reporting under any other legal or regulatory requirement as may
be required by our Company from time to time.
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SECTION VI: LEGAL AND OTHER INFORMATION
PENDING PROCEEDINGS AND STATUTORY DEFAULTS
As on the date of this Draft Shelf Prospectus, there are no defaults in meeting statutory dues, institutional dues,
and towards holders of instrument like debentures, fixed deposits and arrears on cumulative preference shares,
etc., by our Company or by public companies promoted by the Promoters and listed on the BSE or NSE.
Save as disclosed below, there are no pending proceedings pertaining to:
(a) matters likely to affect operation and finances of our Company, promoter, director, subsidiaries, group
companies, or any other person, whose outcome could have a material adverse effect on the Company,
including disputed tax liabilities and contingent liabilities of any nature; and
(b) criminal prosecution launched against our Company and the Directors for alleged offences under the
enactments specified in Paragraph 1 of Part I of Schedule V to the Companies Act, 2013.
Litigations against our Company
Civil cases
1. Selvin Jayakumar, the owner of the branch located at Munnar, Kerala had filed RCOP seeking eviction
of the Company from his premises, recovery of amounts towards damages and for use and occupation.
The Company vacated the premises. Subsequently, the Company filed a suit for recovery of the rent
advance and the landlord, i.e. Selvin Jayakumar set ex-party. The Company has remitted the balance
court fee and the matter is posted to March 26, 2018 for filing written statement.
2. Sunil Kumar, Anil Kumar and Ajit Kumar, the petitioners have filed a petition (R.C.O.P. No. 5 of
2012), before the Kollan Rent Controller cum District Munsiff under section 11(3) of the Kerala
Buildings (Lease and Rent Control) Act, 1965. The Company had entered into a lease agreement with
the petitioners to rent the property at room No. 1144/47, Ward 24, Kollam by lease agreement dated
January 14, 2005 for a period of 10 years. The petitioners have instituted this petition for evicting the
Company from the leased premises. The matter was posted for hearing on December 18, 2013 and the
court had transferred the matter to the mediation centre for settlement and it was posted on
April 08, 2014 for hearing. Since the mediation did not result in a settlement, the matter was sent back
to the court and an order has been passed against the Company to evict the premises. The Company has
filed an appeal against the order along with an interim application to stay the order of the lower court in
RCOP NO.5/2012 until the disposal of the appeal, which has been admitted by the court and issued
notice to the opposite party. We have obtained stay order from high court against the judgement of rent
control appellate court Kollam.
3. V. Karthik, the plaintiff has filed a suit (O.S. No. 10 of 2011) before the District Court, Trichy, against
G. Vijayakumar, S. Ganeshan, and 59 others, including the Company. The suit relates to the schedule
property in which the Company is a tenant. The plaintiff has alleged that he is entitled to half of the
schedule property and has sought a decree of partition against G. Vijayakumar and S. Ganeshan and a
mandatory injunction against the other defendants directing them to pay rent to the plaintiff in respect
of his share of the schedule property. This matter is posted on April 20, 2018 for hearing and is
currently pending.
4. S. Kalavathi, the plaintiff, has filed a suit (O.S No. 377 of 2012) dated October 17, 2012, before the
Court of the Subordinate Judge, Dindigul against Balammal, Sujatha and 11 others, including the
Company. The suit relates to the schedule property in which the Company is a tenant. The plaintiff has
alleged that she is entitled to one fifth of the schedule property and has sought a decree directing
Balammal and Sujatha to partition the property, failing which a commissioner should be appointed to
partition the schedule property. The plaintiff has also sought a decree directing the other defendants to
deposit the rent amounts payable by them, in the court. This matter is pending and posted on
May 25, 2018 for hearing.
5. Kamaljeet Singh Kumar, the plaintiff has filed a suit (no. 100 of 2008) dated April 23, 2009, before the
Additional District Judge, Delhi against the Company, seeking the arrears of rent, mesne profits and
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costs for alleged damage caused to the property by the Company amounting to ` 911,773. The plaintiff
is the owner of property that was leased to the Company. The plaintiff claims that the lease was
terminated as the Company stopped making rent payments, but the Company is still in possession of the
property and substantial damage has been caused to the property by the plaintiff. The Company in its
reply, has contended that it terminated the tenancy vide a communication to the plaintiff dated
May 01, 2007 and called upon the plaintiff to take possession of the property. It has stated that the
property has been lying vacant and locked since May 31, 2007 as the plaintiff is refusing to take
possession of the same. It has also stated that the rent amounts till May 31, 2007 have been paid in full
and denied that any damage has been caused by the Company to the property. This matter has been
posted for hearing on November 15, 2017.
6. S.Devendran, the applicant, has filed an application (I.D 34 of 2013) against the Company before the
Labour Court at Kollam on April 4, 2013. The applicant had been working as a Branch Manager at the
Nellimoodu branch of the Company. He was been dismissed from the service for allegedly receiving
counterfeit notes in respect of a certain loan repayment, without conducting an enquiry and framing
specific charges. The applicant has filed this application for a declaration to the effect that his dismissal
from service was irregular and illegal and for being reinstated in service with back wages, continuity in
service and all other benefits. This matter is posted for orders and the Company is currently awaiting a
copy of the order. The matter is currently pending.
7. Ravi Kumar, the plaintiff has filed a suit (OS No.692 of 13) against the Company before the court of
the Subordinate Judge, Thiruchirapalli on August 02, 2013. The plaintiff has leased a portion in the
ground floor and a portion of the third floor of MDSR Enclave, Promenade Road, Cantonment,
Thiruchirapalli to the Company. The plaintiff has alleged that the Company has not been making
necessary payments of service tax for the abovementioned premises. The plaintiff has thus filed the suit
for the recovery of service tax with subsequent interest of 12% from the date of the plaint till the date of
the decree and a further interest of 6% till the date of realisation. The case is posted on June 22, 2018
for hearing.
8. The Director, Financial Intelligence Unit, Department of Revenue, Government of India has issued an
order bearing No. 1/DIR/FIU-IND/2013 dated February 14, 2013 imposing a fine of Rs 2,69,70,000
under section 13 of the Prevention of Money Laundering Act, 2002 for failing to furnish cash
transaction reports for 2,697 cash transactions between the period of April 01, 2006 and
November 30, 2010. The Company responded to the Director, Financial Intelligence Unit stating that
they had no intention to defy the law and deliberately act in its breach. The Company also raised
certain legal grounds of challenge which were not upheld by the Director, Financial Intelligence Unit
while passing the final order. Pursuant to this, the Company appealed the said order before the Hon'ble
Appellate Tribunal, Prevention of Money Laundering Act at New Delhi in FPA-PMLA-457/DLI/2013
and MP-PMLA-1007/DLI/2014. The Tribunal by way of an order dated July 09, 2015 directed the
Company to pay an amount of Rs. 2,44,70,000 within four weeks. The Company has however obtained
a stay order from the Delhi High Court through an order dated August 07, 2015 after agreeing to
deposit Rs. 50,00,000. The matter has been posted to March 10, 2017.
9. K.V.D. Umamaheswara Rao filed a petition under Order XXI, Rule 58 and Section 47 of CPC against
the Company and Kancharla Venkata Murali Krishna, before the Court of the Hon'ble II Additional
District Judge at Guntur in O.S. No. 90 of 2011, seeking the setting aside of attachment orders passed
by the District Judge, Guntur on April 19, 2013 against certain schedule property.
Criminal cases
1. Davidson Tharmaraj, the complainant, has instituted a criminal case (C.C. No. 110 of 2011) before the
Court of the Judicial Magistrate, Tenkasi against the Company, the Promoters, Subramanian, the ex-
Manager of the Tenkasi south Masi street branch of the Company and A. Mahadevan Pillai, the gold
auctioneer, the accused in the present case. The complainant has alleged that between January 12, 2004
and February 9, 2004, on the advice of one of the accused, he pledged gold ornaments and availed loans
from the Company on four separate occasions, amounting to a sum of ` 0.1 million without the accused
having mentioned the rate of interest of such loans. The complainant has also alleged that the
Company’s pawn broker license had expired in March, 2003 and has not been renewed and hence the
Company was not authorised to conduct the auctions as it was in contravention of the Tamil Nadu
Pawn Brokers Act, 1943. The complainant has alleged that the accused were guilty of offences under
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sections 420, 419, 406 and 409 of the IPC read with section 120(b) of the IPC. The Company and other
accused have filed a criminal original petition Crl.OP (MD) No. 7174of 2011 before the High Court of
Judicature at Madras, Madurai Bench, seeking to have the proceedings in the present case (C.C. 110 of
2011) quashed. The Madurai Bench of the Madras High Court has passed two orders on June 24, 2011
dispensing with the personal appearance of the accused and staying all proceedings in the present case
on the file of the Judicial Magistrate, Tenkasi, pending disposal of the above Crl.OP(MD) No. 7174 of
2011. The matter is posted for hearing on March 09, 2018 and is currently pending.
2. Vipin Bhola, the complainant in the present matter, has filed a criminal complaint (CC No: 106 of
2012), under sections 406, 467, 468 and 471 of the IPC against the Company and certain employees
before the Judicial Magistrate, Gurgaon. The complainant has alleged that he was an agent of the
Company and that he has deposited gold ornaments with the Company. The complainant has also
alleged that the Company has refused to redeem the ornaments pledged with it against part re-payment
of the amount of loan taken by the complainant. This matter has been dismissed. However, the
complainant has filed a revision petition which is posted on October 10, 2017 for arguments.
3. The Assistant Registrar, Co-operative Society, the complainant, had filed an FIR against the Company
under sections 5 and 28 of Karnataka Money Lenders Act, 1961 and sections 4 and 15 of the Karnataka
Prohibition of Charging Exorbitant Interest Act, 2004. The Company has filed a petition (Criminal
Petition No. 3981 of 2012) before the High Court of Karnataka, Bangalore to quash the FIR. The court
vide order dated July 24, 2012 has granted an interim stay till the disposal of the matter. The matter
was last posted on November 02, 2016.where the Company's advocate submitted an application for
extension of the stay order. The application was admitted by the court and the stay order was extended
till the final hearing of the case. A copy of the order is awaited by the Company and the matter is
currently pending.
Service tax cases
1. The Directorate General of Central Excise Intelligence, Delhi Zonal Unit has issued a show cause
notice bearing reference DZU/INV/ST/39/2006 dated September 28, 2007 against the Company
directing the Company to show cause why an amount of ` 2.6 million as service tax and an amount of
` 0.1 million as educational cess, service tax amounting to ` 6.4 million and educational cess of
`0.1 million under various provisions of the Finance Act, 1994 had not been paid by the Company.
Further, the Company is directed to show cause why interest on ` 0.3 million should not be recovered
and CENVAT credit amounting to ` 0.5 million should not be denied under the Cenvat Credit Rules,
2004. The notice states that the Company was not paying service tax on its money lending business and
that the Company is not registered with the service tax department. The Commissioner of Central
Excise, Customs and Service Tax, Kochi Commissionerate, passed an order dated January 20, 2009,
confirming the recovery of tax and penalty imposed on the Company and further imposed a penalty of
` 100 for every day from the due date and a penalty of ` 200 for every day such failure continues or at
the rate of 2% of such tax per month whichever is higher subject to maximum of ` 9.2 million and a
further penalty of ` 1,000 under section 7 of the Finance Act, 1994, a penalty of ` 9.2 million under
section 78 of the Finance Act and a penalty of ` 4.8 million on the Company under section 15 of the
CENVAT Credit Rules, 2004 read with section 78 of the Finance Act, 1994. The Company has filed an
appeal dated April 17, 2009, against the order before the Customs, Excise and Gold (Control) Appellate
Tribunal, Bangalore, and the matter is currently pending. The company has also filed an application for
the stay of the pre deposit of demand order together with the appeal. The stay application has been
allowed by order dated February 17, 2010, on pre-deposit of an amount of ` 2.5 million. The appeal is
currently pending.
2. The Commissioner of Central Excise and Customs, Kochi Commissionerate has issued a show cause
notice bearing reference V/ST/15/16/2008 ST Adj/517 dated April 1, 2008, against the Company
directing the Company to show cause why an amount of ` 4.3 million as service tax and an amount of
` 0.1 million as educational cess, service tax amounting to ` 0.02 million and educational cess of ` 511,
an amount of ` 0.7 million, as service tax and an amount of ` 0.1 million as educational cess in respect
of various provisions of the Finance Act, 1994 had not been paid by the Company. The Commissioner
of Central Excise, Customs and Service Tax, passed an order dated May 12, 2009 and confirmed the
recovery of tax and penalty imposed on the Company and further imposed a penalty of ` 1,000 under
section 77 of the Finance Act, 1994, a penalty of ` 5.1 million under section 78 of the Finance
Act, 1994. The Company has filed an appeal against the order before the Customs, Excise and Gold
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(Control) Appellate Tribunal, Bangalore, and the matter is currently pending. The Company has filed
an application for the stay of the pre deposit of demand order together with the appeal and a stay has
been granted on February 17, 2010 on pre-deposit of ` 1.8 million. The appeal is currently pending.
3. The Commissioner for Central Excise and Customs, Kochi has issued a show cause notice
No. 122/2008/ST dated October 7, 2008 directing our Company to show cause why an amount of
` 7.8 million as service tax and penalties under sections 76, 77, and 78 of the Finance Act 1994 had not
been paid by the Company. The Commissioner of Central Excise, Customs and Service Tax, passed an
order dated November 30, 2009, confirming the recovery of tax and penalty imposed on our Company
and further imposed a penalty of ` 200 for every day of failure to pay service tax and educational cess
or at the rate of 2% of such tax per month whichever is higher subject to a maximum of ` 7.8 million
and a further penalty of ` 1,000 under section 7 of the Finance Act, 1994, a penalty of ` 7.8 million
under section 78 of the Finance Act. Our Company has filed an appeal and a petition seeking stay of the
order of the Commissioner of Central Excise, Customs and Service Tax, as ST/482/10 before the
Customs, Excise and Service Tax Appellate Tribunal on March 15, 2010. The Customs, Excise and
Service Tax Appellate Tribunal, by its order dated October 31, 2011, waived the pre-deposit of balance
amounts of dues under the impugned order and granted a stay on the recovery thereof till the disposal
of the appeal, on pre-deposit of ` 4 million. The appeal is currently pending.
4. By a letter dated September 9, 2010, the Superintendent of Central Excise and Service Tax, Kochi,
forwarded copies of three audit enquiries raised by the Comptroller and Auditors General’s audit party
regarding three instances of alleged non payment of service tax for the period from 2007-08 to 2009-10
and required the Company to pay service tax as per the audit enquiry. The amount liable to be paid as
per the first audit enquiry was ` 1.8 million, the second audit enquiry was ` 0.9 million and as per the
third audit enquiry was ` 7.4 million. The Company has replied to the letter dated September 09, 2010
on October 26, 2010. The Additional Commissioner of Central Excise, Kochi has issued a show cause
notice No. 83/2012 (C No. V/ST/15/102/2012 ST Adj) directing the Company to show cause recovery
of an amount of ` 2.2 million towards service tax, education cess and secondary education cess and
interest and penalty applicable on the above, from our Company, on marketing expenses paid in foreign
currency, as per the first audit enquiry. The Company has by letter dated July 17, 2013, responded to
the show cause notice and has stated that the show cause notice be dropped for the following reasons:
(i) the Company is not liable to pay service tax for amounts paid for marketing services provided by its
group concern, Muthoot Marketing Services Private Limited, Dubai as such payments were made only
in the form of reimbursements and not as any actual consideration; (ii) the entire exercise in respect of
which the demand has been made is revenue neutral; (iii) major portion of the demand made is time
barred; and (iv) the Company is not liable to pay any penalty as it has not contravened any provisions
of the Finance Act, 1994. The Assistance Commissioner of Central Excise, Kochi, has issued a
consolidated order No.70 to 72 dated February 18, 2016, received by the Company on March 30, 2016,
disposing off the three show cause notice nos. 83/2012, 01/2013 and 132/2014. The Company has filed
an appeal before the Commissioner of Central Excise (Appeals), Kochi on May 25, 2016. The matter is
currently pending.
5. The Commissioner of Central Excise and Customs, Kochi Commissionerate has issued a show cause
notice bearing reference no. 194/2012/ST dated October 22, 2012, against our Company to show cause
as to why: (i) an amount of ` 15.89 million as service tax and an amount of ` 0.48 million as
educational cess, amounting to ` 16.37 million for period 2010-11 to 2011-12 had not been paid by the
Company under various provisions of the Finance Act, 1994 on account of providing taxable services
(business auxiliary services) under the Finance Act, 1994; (ii) an amount of ` 1.70 million inclusive of
education cess for the services received from foreign firms has not been paid under various provisions
of the Finance Act, 1994; (iii) interest on delayed payment of service tax (including education cess)
should not be demanded and recovered under section 75 of the Finance Act, 1994 and the relevant rules
thereunder, (iv) penalty should not be imposed under sections 76, 77 and 78 of the Finance Act, 1994
for failure to comply with the provisions of the Finance Act, 1994 and the relevant rules thereunder.
The company has filed its reply to the show cause notice on February 19, 2013 stating that (i) the
Company is not liable for payment of service tax for business auxiliary services as the same qualifies as
export of service; (ii) the demand regarding payment of service tax for payments made to foreign firms
have been included in a previous show cause notice and have been paid towards donations and not
services; (iii) the demand for interest on delayed payment of service tax is time barred; and (iv) the
Company is not liable for payment of penalty as it has not defaulted under the provisions of the Finance
Act, 1994. The Commissioner of Central Excise and Customs, Kochi has issued a consolidated order no.
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46 & 47 / 14-15 on December 31, 2014 disposing SCN 194/2012 and 177/2014 stating that the
confirmed demand for SCN 194/2012 is ` 16,367,194 on Business auxiliary services for the years
2010-11 to 2011-12, and ` 1,353,575 on the services imported during the years 2009-10 to 2011-12
with interest under Section 75 of the Finance Act, 1994, the penalty is ` 17,720,769 under Section 78 of
the Finance Act, 1994 and ` 10,000 under Section 77 of the Finance Act, 1994. An amount of
` 1,635,271 already paid by the company before issuing SCN has been appropriated against the demand
and interest. On writ petition filed by the company against the above order, the High Court of Kerala by
order dated 4 March 2015 quashed the impugned order and directed the Commissioner to pass fresh
order following the decision taken by the Appellate Tribunal in the case of Paul Merchants Ltd Vs.
Commissioner of Central Excise, Chandigarh[2013(29) STR 257 (Tri. Del)]. The commissioner has
passed fresh order No.04/15-16 dated May 11, 2015 by confirming the demand same as in the original
order. On second writ petition, the High Court has directed the company to file appeal before the
Appellate Tribunal, without making pre deposit of tax. The Company filed appeal before the CESTAT,
Bangalore on July 31, 2015. The CESTAT in their interim order no. 22 to 36/2016, dated
February 17, 2016 decided that pre-deposit as per section 35F of the Central Excise Act, 1944 is to be
deposited by the Company within four weeks from the date of the order. A writ petition was been filed
by the Company before High Court of Kerala on March 15, 2016, which was subsequently disposed off
by the order of the High Court of Kerala dated July 14, 2016 directing the Company to pay pre-deposit
amount as per Section 35F of the Central Excise Act, 1944. The Company has paid the pre-deposit
using CENVAT credit by communication dated July 26, 2016. The appeal is currently pending.
6. The Commissioner of Central Excise and Customs, Kochi has issued show cause notice bearing
reference no. 199/2012/ST dated October 22, 2012 directing the company to show cause why: (i) an
amount of ` 1672.3 million as service tax (including education cess) had not been paid by the
Company for the period from 2007-2008 to 2011-2012 in accordance with the provisions of the Finance
Act, 1994 on account of providing taxable services (business auxiliary services) under the Finance Act,
1994 and (ii) penalties under sections 75, 76, 77, and 78 of the Finance Act, 1994 should not be levied
against the Company. The company has filed its reply to the show cause notice on February 19, 2013
stating that (i) services as collection agent are not taxable as the same cannot be viewed as a separate
and independent service being rendered by the Company, the entire exercise is revenue neutral and the
demand for service tax is time barred; and (ii) the Company is not liable for payment of penalties as it
has not defaulted under the provisions of the Finance Act, 1994. The Commissioner of Central Excise,
Customs and Service Tax, Cochin has issued an order on December 30, 2014 disposing SCN
No.199/2012 with a demand of INR 1,531,458,734 as service tax, education cess and SHEC payable on
securitisation transactions with banks for the period from 2007 to 2012, along with interest under
section 75 of the Finance Act, 1994, Penalty at the rate of INR 200 per day or 20% of tax for every
month whichever is higher under section 76, INR 10,000 under section 77 and INR 153,14,58,734
under section 78 of the Finance Act, 1994. (Total liability including tax, interest and penalty under
various sections if confirmed is estimated as INR 4,895,883,216/-). On writ petition, the High Court of
Kerala by order WP(C) No.6173 of 2015 dated March 02, 2015 directed the company to file appeal
before the Appellate Tribunal, without pre-deposit of tax. Appeal filed with CESTAT, Bangalore on
March 31, 2015. The Government also has filed writ appeal before the High Court against the order of
the Single Judge, On writ appeal by Government, the High Court has held that the Appellate Tribunal
can take up the appeals filed by the company. The matter is pending before the Tribunal. The Tribunal
in their interim order no. 22 to 36/2016, dated February 17, 2016 stated that pre-deposit as per section
35F of the Central Excise Act, 1944 is to be deposited by the Company within four weeks from the date
of the order. The Company filed a writ petition before the High Court of Kerala on March 21, 2016,
which was subsequently disposed off by order dated July 14, 2016 directing the Company to pay pre-
deposit as per Section 35F. Company has paid the pre-deposit using CENVAT credit by
communication dated July 26, 2016 and accepted by the Tribunal. The appeal is currently pending.
7. The Assistant Commissioner of Central Excise has issued a show cause notice no. 1 of 2013-ST
(C.No.V/ST/38/63/2013, ST Adj./790) dated March 30, 2013 asking the Company to show cause why
(i) an amount of ` 1,63,018 being service tax for the period of 2011-12 should not be demanded from
the Company; (ii) interest on the appropriate rate of service tax, education cess and secondary and
higher education cess should not be demanded under Section 75 of the Finance Act, 1994; and
(iii) penalties should not be imposed on them under Sections 66A, 70, 76, 77 and 78 of the Finance
Act, 1994. The Company has filed its reply to the show cause notice on August 18, 2013 setting out the
factual position and explaining why all the allegations contained in the show cause notice are incorrect
and unsustainable. The Assistant Commissioner of Central Excise has issued a consolidated order
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No.70 to 72 dated February 18, 2016, received by the Company on March 30, 2016, disposing off three
show cause notices nos. 83/2012, 01/2013 and 132/2014. The Company has filed an appeal before the
Commissioner of Central Excise (Appeals), Kochi on May 25, 2016. The matter is currently pending.
8. The Additional Commissioner of Central excise, Customs &Service tax, Cochin has issued a show
cause notice no.233 /2013/ST (C No.V/ST/15/212/2013/ST Adj) dated October 25, 2013 asking the
Company to show cause as to why (i) CENVAT credit totalling ` 1,075,156 should not be demanded
from the company; (ii) interest at the appropriate rate on the ineligible CENVAT credit availed should
not be demanded from the Company, (iii) penalty should not be imposed under Rule 15 of CENVAT
Credit Rules, 2004; (iv) penalty should not be imposed on the Company under Section 78 of Chapter V
of the Finance Act, 1994. The Company has filed its reply to the show cause notice on July 17, 2014
explaining why all the allegations contained in the show cause notice are incorrect and unsustainable.
Order No.32/2015 dated April 31, 2015 by confirming the demand as per show cause notice. The
Company had filed an appeal before the Commissioner of Central Excise (Appeals), Kochi on
August 06, 2015 challenging the order, which has been rejected by order No.COC-EXCUS-000-APP-
401-16-17 dated December 30, 2016 received on January 25, 2017. The Company has filed an appeal
before CESTAT, Bangalore on April 24, 2017. The matter is currently pending.
9. The Joint Commissioner of Central Excise, Customs & service tax, Kochi has issued show cause notice
No.132/2014 dated May 12, 2014 asking the company to show cause why (i) an amount of ` 677,476
being service tax on foreign payments made during the period of 2012-13 should not be demanded
from the Company; (ii) interest on the appropriate rate of service tax, education cess and secondary and
higher education cess should not be demanded under Section 75 of the Finance Act, 1994; and
(iii) penalties should not be imposed on them under Sections 66A, 70, 76, 77 and 78 of the Finance
Act, 1994. The Company has filed its reply to the show cause notice by letter dated July 29, 2014
setting out the factual position and explaining why all the allegations contained in the show cause
notice are incorrect and unsustainable. The Joint Commissioner of Central Excise, Customs and Service
Tax, Kochi has issued a consolidated order No.70 to 72 dated February 18, 2016, received by the
Company on March 30, 2016, disposing off three show cause notices nos. 83/2012, 01/2013 and
132/2014. The Company has filed an appeal before the Commissioner of Central Excise (Appeals),
Kochi on May 25, 2016. The matter is currently pending.
10. The Deputy Commissioner of Central Excise, Customs & service tax, Kochi has issued show cause
notice No.50/2014 dated September 25, 2014 asking the company to show cause why (i) an amount of
` 394,523 being service tax on foreign payments made during the period of 2013-14 should not be
demanded from the Company; (ii) interest on the appropriate rate of service tax, education cess and
secondary and higher education cess should not be demanded under Section 75 of the Finance
Act, 1994; and (iii) penalties should not be imposed on them under Sections 66A, 70, 76, 77 and 78 of
the Finance Act, 1994. The Company has filed its reply to the show cause notice by letter dated
November 24, 2014 setting out the factual position and explaining why all the allegations contained in
the show cause notice are incorrect and unsustainable. The Deputy Commissioner of Central Excise,
Customs & service tax, Kochi has issued an order dated January 20, 2015 by disposing SCN
No.50/2014 with demand of ` 3,94,523, interest under Section 75 of the Finance Act, 1994, penalty of
` 1,000 under Section 77(2), and a penalty of ` 394,523 under Section 78 Chapter V of Finance
Act, 1994. The Company had filed an appeal before the Commissioner of Central Excise (Appeals),
Kochi on March 23, 2015 challenging the order, which has been rejected by order No. COC-EXCUSS-
000-414-16-17 dated December 30, 2016 received on February 16, 2017. The Company has filed an
appeal before CESTAT, Bangalore on April 17, 2017. The matter is currently pending.
11. The Commissioner of Central Excise and Customs, Kochi has issued show cause notice bearing
reference No. 177/2014/ST dated May 21, 2014 directing the company to show cause why: (i) an
amount of ` 8.30 million as service tax (including education cess) should not be demanded and
recovered from the Company for the period 2012-2013 in accordance with the provisions of the
Finance Act, 1994 on account of providing taxable services (business auxiliary services) under the
Finance Act, 1994 and (ii) interest and penalties under sections 75, 76, 77, and 78 of the Finance
Act, 1994 should not be levied against the Company. The company has filed its reply to the show
cause notice on July 17, 2014 explaining why all the allegations contained in the show cause notice are
incorrect and unsustainable. The Commissioner of Central Excise and Customs, Kochi has issued an
consolidated order No.46 &47 /14-15 on December 31, 2014 disposing SCN 177/2014/ST and
194/2012/ST stating that the confirmed demand on SCN 177 /2014/ST is ` 8,306,129 on Business
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auxiliary services for the period 2013-14 and interest under Section 75 of the Finance Act, 1994, the
penalty is` 100 per day or 1% of the tax due whichever is higher under Section 76 of the Finance
Act, 1994 and ` 10,000 under Section 77 of the Finance Act, 1994. The case is considered together
with SCN 194 as mentioned above in point no.5.
12. The Commissioner of Central Excise, Kochi has issued SCN No.26/2015 dated March 02, 2015 to the
company relating to service tax on money transfer income for the period 2013-14. The company has
filed writ petition No.11833/2015 before the High Court of Kerala challenging the above notice and
filed reply to the Commissioner informing the same. The matter is pending before the High Court. As
required by the Commissioner, the Company has filed detailed reply also to the SCN vide letter dated
October 05, 2015. The Commissioner of Central Excise has issued an order No.85/2015 dated
February 18, 2016, received by the Company on March 17, 2016. The Company has filed a writ
petition with the High Court of Kerala which was admitted on April 07, 2016. The matter is currently
pending before the Court.
13. The Commissioner of Central Excise, Kochi has issued SCN No.374/2015/ST dated October 20, 2015
allegedly stating that the postage, telegram & telephone expenses debited in P&L A/c of the company
as the amount recovered from customers and by directing the company to show cause as to why total
amount of Rs.10,58,38,896/-including service tax and secondary & higher education cess should not be
demanded and recovered from the company under proviso to section 73(1) of chapter V of Finance Act
1994. The company has filed reply to the show cause notice, vide letter dated November 08, 2015.
The matter is currently pending.
14. The Commissioner of Central Excise and Customs, Kochi has issued SCN No.173/2016/ST dated
April 11, 2016 directing the company to show cause as to why total amount of INR 6,182,037 including
service tax and secondary & higher education cess should not be demanded and recovered from the
Company under proviso to section 73(1) of chapter V of Finance Act 1994. The company has filed
reply to the show cause notice, on May 14, 2016. The Company has received an order No.13/2017
dated January 27, 2017 received on February 28, 2017. The Company has filed an appeal before the
Commissioner (Appeals), Kochi on April 27, 2017. The matter is currently pending.
15. The Principal Commissioner of Central Excise and Customs, Kochi has issued SCN No.19/2017/ST
dated April 12, 2017 directing the company to show cause as to why a total amount of INR 6,61,62,172
and interest on delayed payment of service tax, education cess and secondary & higher education cess
should not be demanded and recovered from the Company under proviso to section 73(1) of chapter V
of Finance Act 1994 relating to CENVAT credit on expenses for the period from 2006-07 to 2010-11.
The Company was also asked to show cause as to why penalty should not be imposed under Rule 15(1)
of the CENVAT Credit Rules, 2004 and under section 78 of the Finance Act, 1994. The company has
filed reply to the show cause notice, on June 23, 2017. The matter is currently pending.
dated April 12, 2017 directing the company to show cause as to why a total amount of
INR 9,86,45,920/- and interest on delayed payment of service tax and secondary & higher education
cess should not be demanded and recovered from the Company under proviso to section 73(1) of
chapter V of Finance Act 1994 relating to postage and telephone expenses incurred by the company
during the period 2014-15 to 2015-16. The Company was also asked to show cause as to why penalty
should not be imposed under sections 76, 77 and 78 of the Finance Act, 1994. The Company has filed
reply to the show cause notice, on May 30, 2017. The matter is currently pending.
dated August 08, 2016 directing the company to show cause as to why a total amount of
INR 3,57,95,903 including service tax and secondary & higher education cess should not be demanded
and recovered from the Company under proviso to section 73(1) of chapter V of Finance Act 1994,
relating to money transfer income other than from Paul Merchants for the period 2012-13 to 2014-15
along with interest and penalties. The company has filed a reply to the show cause notice, on October
04, 2017. The matter is currently pending.
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Income tax cases
1. By an assessment order dated December 19, 2011, the Additional Commissioner of Income Tax,
Range-1, Kochi, has demanded a sum of ` 13.8 million as the deductions claimed by the Company
were disallowed for the AY 2009-10. The company has filed application dated January 20, 2012 for
rectification of the assessment order, under section 154 of the IT Act and also filed an appeal against
the said order before the Commissioner of Income Tax (Appeals)-II, Kochi. With regard to the
application filed by the Company, the assessing officer, vide order dated July 2, 2012 has revised the
demand to ` 13.3 million. Company has already paid the entire demand of tax. Appeal filed with the
CIT(A) was partly allowed by order dated November 12, 2013. The appeal filed by the Company
before the Income Tax Appellate Tribunal, Kochi is allowed and the appeal filed by The Deputy
Commissioner of Income tax, Circle1(2), Kochi was dismissed by order dated July 25, 2014. CIT,
Kochi has filed an appeal before the High Court against the ITAT Order.
2. The Additional Commissioner of Income Tax, Range-1, Kochi has by an assessment order dated
March 21, 2013 under Section 143(3) of the Income Tax Act demanded payment of ` 36,384,640 for
the A.Y. 2010-11 and has stated that the Company cannot be allowed to claim certain tax deductions,
on account of undertaking generation and distribution of power, non-payment of tax on payments made
to non-resident entities, expenses relating to its demerged radio business, bad debts and payments made
into the Company’s staff welfare scheme account. The appeal filed against the said order before the
Commissioner of Income Tax (Appeals)-II, Kochi has been partly allowed by order dated
November 15, 2014. The Company has filed an appeal against the said order before the Income Tax
Appellate Tribunal, Kochi. The Company has already paid an amount of ` 21.82 million towards the
demand. The appeal filed by the Company was allowed and the appeal by the Revenue dismissed by
common order dated September 26, 2016. ITA No.24/2017 filed by the Pr. Commissioner of IT, Kochi
before the High Court of Kerala against the ITAT Order (relating to Staff welfare expenses of Rs.2.62
crores) is pending.
A fresh assessment was completed by the Deputy Commissioner of Income Tax, Central Circle-1,
Kochi under section 143(3) read with section 147 of the I.T. Act by order dated November 30, 2017,
served on December 01, 2017 with a demand of Rs.14,20,19,060. The Company has filed an
application for rectification of error in calculation of interest under section 234B of the I.T. Act.
Further, the Company has also filed an appeal before the Commissioner of Income tax (Appeals)-4,
Kochi. The matter is currently pending.
3. The Additional Commissioner of Income Tax, Range-1, Kochi has demanded payment of ` 4.55
million for the assessment year 2011-12 from the Company by an assessment order dated
November 29, 2013 under Section 143(3) of the Income Tax Act and has disallowed certain deductions
under section 80IA of the Income Tax Act, which the Company had claimed on account of bad debts
written off. The Company has made payment of the entire amount demanded. The appeal filed by the
Company before the Commissioner of Income Tax (Appeals) – II has been dismissed for statistical
purposes. The Company has filed a miscellaneous petition before the Commissioner of Income Tax
(Appeals) – II for rectification of mistake apparent on record and to reconsider the Appeal again.
Company has also preferred an Appeal before the Income Tax Appellate Tribunal, Kochi against the
dismissal order. Appeal filed before the Income Tax Appellate Tribunal, Kochi against the dismissal
order has been allowed by ITAT by order dated 08.01.2016 and restored the file to CIT(A), Kochi for
fresh consideration. The matter is pending before the CIT(A), Kochi.
4. The Commissioner of Income Tax-I, Kochi has filed an appeal before the High Court of Kerala against
the order of the Income Tax Appellate Tribunal, Kochi for the A.Y. 2004-05.The Income Tax Appellate
Tribunal, Kochi in their order dated June 01, 2012 had dismissed the appeal filed by the Additional
Commissioner of Income Tax, Circle-1(3) Kochi against a previous order of the Commissioner of
Income Tax (Appeals)-II, Kochi dated February 16, 2007. This order of the Commissioner of Income
Tax (Appeals)-II Kochi pertained to an assessment order issued as regards the Company for the
assessment year 2004 – 2005 as regards certain additions and disallowances.
5. The Commissioner of Income Tax-I, Kochi has filed two appeals before the High Court of Kerala
against the orders of the Income Tax Appellate Tribunal, Kochi for the A.Y. 2006-07. Earlier, the
Income Tax Appellate Tribunal in their order dated June 01, 2012 had partly allowed the appeal filed
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by the Company dated March 31, 2010 against the order of Commissioner of Income Tax (Appeals),
Kochi. This appeal by the Company was regarding additions previously made by an assessing officer
on account of staff welfare account scheme and certain disallowances as regards the assessment year
2006 - 2007. The matter is currently pending.
6. The Additional Commissioner of Income Tax, Kochi, has issued order U/s.143(3) dated March 02,
2015 with demand of Rs.2,92,30,000/- for the AY 2012-13. The company has paid an amount of
Rs.21,10,000/- and the balance demand is Rs.2,71,20,000/-. Rectification application filed with the
A.O and Appeal filed with the Commissioner of Income Tax (Appeals)-II, Kochi are pending for
disposal.
7. The Joint Commissioner of Income Tax, Kochi has issued an order under section 143(3) dated
March 29, 2016 for the A.Y 2013-14 with demand of INR 34,579,720. The Company has paid the
entire demand and filed an appeal with the Commissioner of Income Tax (Appeals), Kochi against the
order.
Cases filed against the Directors
In addition to the litigations disclosed above, the following litigations are currently pending against the
Directors:
1. The Deputy Commissioner of Income Tax has issued two assessment orders both dated
December 30, 2010 to George Thomas Muthoot under section 143(3) read with section 147 of the IT
Act for the assessment years 2006-07, demanding ` 5.6 million and for the assessment year 2007-08,
` 5.2 million. An appeal dated January 07, 2011 has been filed by George Thomas Muthoot before the
Commissioner of Income Tax (Appeals), Trivandrum against the above order. The Commissioner of
Income Tax (Appeals) has allowed the appeal in favour of George Thomas Muthoot vide order dated
February 05, 2014 by deleting the tax demands. .The DCIT, Thiruvalla has filed appeals before the
ITAT, Cochin bench against the above orders. ITAT Kochi has set aside the case to A.O by order
dated February 12, 2015. Fresh assessment was completed for A.Y 2006-07 by order dated
February 19, 2016 with a demand of INR 6,027,600. An appeal filed with CIT(A) – Kottayam is
pending.
2. The Deputy Commissioner of Income Tax has issued an assessment order dated December 30, 2010 to
George Jacob Muthoot under section 143(3) read with section 147 of the IT Act for the assessment
years 2006-07 by demanding a total tax payable of ` 14.5 million. An appeal dated January 07, 2011
has been filed by George Jacob Muthoot before the Commissioner of Income Tax (Appeals),
Trivandrum against the above order. The Commissioner of Income Tax (Appeals) has allowed the
appeal in favour of George Jacob Muthoot vide order dated February 05, 2014 by deleting the demands.
The DCIT, Thiruvalla has filed appeals before the ITAT, Cochin bench against the above orders. ITAT
Kochi has set aside the case to A.O by order dated February 12, 2015. Fresh assessment was
completed for A.Y 2006-07 by order dated February 19, 2016 with a demand of INR 14,583,684. An
appeal filed with CIT(A) – Kottayam is pending.
3. The Joint commissioner of Income tax, Thiruvalla has issued an assessment order dated December 12,
2011 to George Jacob Muthoot under section 143(3) of the IT Act for the year ended March 31, 2009
by demanding a total tax payable of ` 38.7 million. George Jacob Muthoot has filed an appeal against
the assessment order on December 20, 2011 before the Commissioner of Income Tax (Appeals),
Trivandrum. The appeal is pending.
4. The Deputy Commissioner of Income Tax, Thiruvalla has issued an assessment order dated
March 28, 2014 to George Jacob Muthoot under section 143(3) of the IT Act for the year ended
March 31, 2011 by demanding a total tax payable of ` 15.85 million in respect of certain
disallowances on interest payment and agricultural income. The A.O revised the above order by a
fresh order U/s154 dated March 06, 2015 and increased the demand to Rs.3,02,16190/- . Original
appeal and fresh appeal filed before CIT(A)-I, Trivandrum are currently pending.
5. A first information report was filed on August 07, 2012 by Yarrabothula Srinivasa Reddy in Guntur,
Andhra Pradesh against the managing director of the Company, branch manager, regional manager of
the Company claiming that he was cheated and requesting for full investigation of the matter along with
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retrieval of gold jewelry deposited with the Company. The complainant claims that he had availed
from the Company three loans secured against gold jewelry deposited with the Company, to the tune of
` 0.21 million, at an agreed interest rate of 15%. The complainant claims that he had deposited gold
ornaments weighing about 290.70 grams in 2007 while availing the loan. The complainant further
claims that he received two demand notices on May 23, 2008 and July 31, 2008 from the Company for
` 0.30 million and ` 0.32 million, however when he approached the bank manager to settle the loan his
request was allegedly denied. The complainant also claims that he later received three auction notices
stating the amount due to him was ` 0.43 million which was more than the principal amount. The
complainant requested the bank to not proceed with any such auction and to settle his account and
claims that his requests were refused. The complainant alleges that in 2010 when he contacted the
branch manager, he was informed that the amount due to the Company was only ` 0.29 million. A first
information report bearing no. 355/2012 has been registered with the Station House Officer, Guntur,
alleging violation of Section 420 of the Indian Penal Code, 1860 against the managing director of the
Company, branch manager and regional manager of the Company. The Company has filed criminal
petition No. 8535/2012, before the High Court of Andhra Pradesh, seeking that the proceedings in
crime no. 355/2012 be quashed. The High Court of Andhra Pradesh vide an order dated November 13,
2012, has issued notice to the complainant, directing him to show cause why the petition should not be
quashed and has also granted an interim stay on all further proceedings in crime no. 355/2012 for six
weeks. The matter is currently pending.
6. Petition WP(MD) No. 14627 of 2012 filed on January 02, 2013 by Jeya Ruthran, the petitioner, before
the High Court of Judicature of Madras at Madurai against the Union of India, the Assistant General
Manager of the RBI and other parties. The petitioner had filed a writ petition challenging the alleged
exorbitant interest rates charged by the NBFCs engaged in gold loan business in W.P. No. 2206/2012
before the High Court of Chennai. The High Court of Chennai passed an order stating that the proper
course for the petitioner is to pursue remedy before the statutory authority, RBI which regulates such
NBFCs. The petitioner claims that the RBI has communicated to him stating that it is not regulating the
rate of interest charged by such NBFCs. The petitioner is challenging the communication from the RBI
dated May 03, 2012 as illegal, arbitrary and contrary to the order of the High Court in W.P. No.
2206/2012. The petitioner seeks the records in relation to the communication from the RBI dated May
03, 2012, quashing of the impugned communication from the RBI as illegal and for the Union of India,
RBI and the Tamil Nadu Government Finance Department to regulate the interest rates charged by
NBFCs. The High Court of Judicature of Madras at Madurai has passed its order in the matter and has
issued directions to the RBI to rectify the issue. RBI has rejected this matter.
7. R.V.V.Prabhakaran, the petitioner has filed a petition (RCOP.No.5 of 2013) on October 09, 2013
against George Alexander Muthoot before the Court of the Rent Controller, Arni under section 4(i) and
4(iii) of Tamil Nadu Building Lease and Rent Control Act, 1960. The petitioner has leased out the
vacant site and the first floor of the building bearing door no. 65, Gandhi Road, Thiruvannamalia
District, Arni Town, Arni Taluk on February 13, 2007 to George Alexander Muthoot for conducting
financial and commercial transactions of the Muthoot Group. The petitioner has filed the present
petition seeking the fixation of fair rent for the scheduled property and for directing George Alexander
Muthoot to pay such fair rent from the date of the petition and the costs arising thereof. The case has
been posted for May 20, 2018 for hearing.
Notices received by the Company
1. The Company received a show cause notice bearing number P. 148/2016 dated December 07, 2016
from the Sub-Registrar (in the cadre of district registrar), Virugambakkam seeking a response on why a
deficit stamp duty amount of INR 200,000,000 (Rupees twenty crores) along with a penalty of INR
1,000 should not be collected from the Company in relation to the stamp duty paid for the debenture
trust deed dated May 11, 2016, executed between the Company and IDBI Trusteeship Services Limited.
The Company has responded to this show cause notice by way of a letter dated January 16, 2017 stating
that the document could not be construed to be a power with consideration but merely a debenture trust
deed. The Company argued that the debenture trust deed would therefore attract article 40(b) of the
Indian Stamps Act and not article 48(e). The Company requested that the show cause notice be
withdrawn and the debenture trust deed be returned post registration. By way of an order dated
October 20, 2017, the sub-registrar, Virugambakkam directed the Company to pay the deficit stamp
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duty of INR 200,000,000 (Rupees twenty crore) along with a penalty of INR 1,000 (Rupees one
thousand). The Company has filed a revision application before the Chief Controlling Revenue
Authority – Cum – Inspector General of Registration seeking an interim stay of all further proceedings
and set aside the order passed by the respondent.
2. The Company received a show cause notice bearing number P. 19/2016 dated July 06, 2016 from the
Sub-Registrar (in the cadre of district registrar), Virugambakkam seeking a response on why a deficit
stamp duty amount of INR 200,000,000 (Rupees twenty crores) along with a penalty of INR 1,000
should not be collected from the Company in relation to the stamp duty paid for the debenture trust
deed dated January 20, 2016, executed between the Company and IDBI Trusteeship Services Limited.
The Company responded to the show cause by way of a letter dated August 10, 2016, stating that the
presumption of the sub-registrar that, the power of attorney under the debenture trust deed extended
beyond a power of attorney to execute, sign and do any deeds to a power of attorney to sell with
consideration was unfounded. The Company therefore sought that the show cause notice be withdrawn
and the debenture trust deed be returned post registration. By way of an order dated October 20, 2017
the sub-registrar, Virugambakkam directed the Company to pay the deficit stamp duty of INR
200,000,000 (Rupees twenty crores) along with a penalty of INR 1,000 (Rupees one thousand). The
Company has filed a revision application before the Chief Controlling Revenue Authority – Cum –
Inspector General of Registration seeking an interim stay of all further proceedings and set aside the
order passed by the respondent.
Litigations filed by our Company
1. Our Company has filed a special leave petition before the Supreme Court of India (SLP (Civil) No.
14386 of 2010) against the judgment of the High Court of Kerala in W.P (C) No. 7526 of 2006 wherein
it was held that NBFCs such as the Company must comply with the provisions of the Kerala Money
Lenders Act, 1958. The Company has contended that it is regulated by the provisions of the Reserve
Bank of India Act, 1934 and action on the part of the Government of Kerala to levy license fee under
the Kerala Money Lenders Act, 1958 on the Company amounts to dual control by the State
Government and the Central Government on the same activities. The Company has sought an interim
order from the Supreme Court of India to stay the judgment and final order passed by the High Court of
Kerala. The Supreme Court of India accordingly directed that status quo be maintained. The matter is
currently pending.
2. Our Company has filed a writ petition (W.P. no. 18932 of 2012) against the State of Karnataka and
certain others before the High Court of Karnataka seeking a writ of mandamus declaring that the
Company is exempted from the provisions of the Karnataka Prohibition of Charging Exorbitant Interest
Act, 2004 and that the Company is governed solely by regulations framed by the RBI. The Company
has also sought a direction from the High Court of Karnataka directing the respondents to not interfere
in the Company’s activities. The matter is currently pending.
3. Our Company has filed a civil suit (O. S. No. 78 of 2006), before the Sub Court, Ernakulum against
Cardamom Marketing Corporation, a partnership firm and 11 other persons who are partners of
Cardamom Marketing Corporation, the defendants in the case. Our Company has alleged that the
defendants availed a loan of ` 17.50 million in the month of September 2005 agreeing to repay the
loan with 24.00% interest per annum within 21 days from the date of disbursement. However the
defendants did not repay the loan as agreed. On November 2, 2005 and November 26, 2005 our
Company sent registered notices demanding the repayment of loan with the interest. The defendants
had issued a cheque of 18.5 million towards repayment of the loan amount which when presented for
encashment by our Company was dishonoured on December 13, 2005. Our Company issued a notice
dated January 11, 2006 to the defendants intimating about the dishonour of cheque and demanding
payment and the defendants denied any transactions between our Company and the defendants.
Therefore our Company has filed the suit for recovery of an amount of ` 19.05 million along with
interest on ` 17.5 million at 24% per annum from the defendants and further seeking costs of the
proceedings. The review petition is pending before the High Court of Kerala for hearing.
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4. The Company filed civil suit O.S.6758/2013 on September 16, 2013 against Paranjyothi and Pradeep
Kumar seeking that the court direct Pradeep Kumar to pay the Company a total sum of INR 54,44,256
in respect of certain loan accounts along with future interest at the rate of 33% per annum from the date
of the suit till the date of realization and that the court pass an order of attachment, attaching the suit
scheduled property and order to sell the same in public auction to realise the suit claim. The suit was
decreed in favour of the Company on August 10, 2015. The Property of Nagarathamma was attached
against her liability. The execution petition bearing No. E P 1007/2015 has been filed and admitted by
the court. The Company has also filed a petition in EP No. 1007/2015 to conduct sale of the attached
property of Nagarathamma. The matter has been adjourned to May 23, 2018 for orders on the execution
petition.
5. The Company filed a civil suit bearing OS No. 07/2012 against a former employee of the Company
alleging misappropriation of funds stored at a certain branch of the Company. The Company sought a
decree against both the defendants for recovery of INR 1,130,178. In this case the defendant filed an
IA to allow them to amend their written statement. The IA was allowed by the court and the case was
posted to February 15, 2018 for framing additional issues. In Criminal Case CC 1122/2013 A1
(Vishwanathan Nair) was arrested and has obtained bail. A2 (Wife of A1) has already obtained bail.
The case has been posted to May 23, 2018 for framing of charges.
6. The Company had filed a petition under section 451 and 547 of the CrPC seeking the return of gold
ornaments seized by the police. The petition came be to be dismissed, post which the Company filed a
civil case OS 716/2010 which was decreed in its favour. The Company filed an execution petition
bearing E.P. No. 98 of 2016 in civil suit No. 716 of 2010. The civil suit had been filed by the Company
against N. Mohandas seeking payment of a sum of INR 30,22,677 together with interest at the rate of
30% from the date of the suit till the date of repayment. On September 11, 2015 the court directed the
respondent to pay a sum of INR 30,22,677 along with interest at the rate of 18%. During the pendency
of the suit the Company filed an application seeking the court's permission to have the respondent
furnish security within a specified time period, failing which, to attach the defendant's property. The
execution petition was filed seeking to transmit the decree and judgment to the District Munsiff Court
at Sriperumbudur.
7. The enquiry officer / CSR, Mr. K.V. Chakravarti, issued a notice dated December 16, 2014 stating that
he had been appointed to enquire into certain fraudulent activities pertaining to jewels pledged for loans
in the K746 OK Chettipalayam Primary Agricultural Co-operative Credit Society, which were allegedly
removed and re-pledged at the branches of the Company for availing loans. The Company filed a writ
petition before the Hon'ble High Court of Madras seeking directions to stay the operations initiated
through the issue of the notice dated December 16, 2014. Pursuant to an order passed in CMP
No. 3129 of 2014 dated December 22, 2014, the Company handed over the jewels pledged with them.
The gold is thereby seized by the registrar of Co operative Society. Subsequently the Company lodged
a complaint with the Coimbatore police seeking appropriate action to be taken against the President and
the Secretary of the said society for misusing their official position and removing the jewels seized
from the Company. The Company also filed CMP No. 2348 of 2015 seeking interim custody of the
jewels. The Company sought that the court pass an order directing the respondents to produce the
quantity and the details of the persons and members to whom they had handed over the jewels seized
from the Company. The respondents filed a counterstatement claiming that they should not be required
to disclose any details as the Company was not the owner of the said jewels. Regardless, they claimed
that the Company had already received information regarding the jewels and the borrowers. It was also
claimed that the Company had violated the KYC requirements prescribed by the RBI and required to be
followed in relation to issuance of loans. The matter has been posted to February 02, 2018 for orders.
The Company filed civil suits along with IA for ABJ against eight customers including President and
Secretary of Co Operative Society and attached their properties. All eight civil cases are posted for
framing of issues. The Company also filed a petition under section 200 CRPC to instruct Police to take
cognizance against the President and Secretary of the Co Operative Society under section 420 of the
IPC on Vicarious Liability. The court rejected the petition on default. The Company has filed a
petition again and the same is pending for admission.
8. The Company filed a cheating case bearing Cr. No 570/2014 against Dhanavan, post which the
respondent obtained bail from the jurisdictional High Court. The Company thereafter filed a civil suit
at the Mananthavady Sub Court in OS 21/2014 to attach Dhanavan's property, including the bank
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account maintained by him with Federal bank, Nedumbasserry Branch. In OS 21/2014 the issues were
framed, the balance court fee paid and the case has been listed for May 29, 2018 for evidence.
9. The Company has filed a plaint in the civil suit bearing OS No.163/2013 against G. Sundaresan seeking
the defendant to pay a sum of INR 25,30,542. The case was decreed ex-parte. The defendant however
fraudulently transferred his property to his wife. The Company subsequently filed an execution petition
bearing EP 42/2016. The matter has been posted to June 15, 2018 for settlement.
10. The Company filed a plaint before the Senior Civil Judge at Mangalore in OS 87/2013 against Sathish
Shetty, C. Seetharam and Reshmalatha, seeking a decree against the defendants jointly and severally, to
pay a sum of INR 2,966,822 to the Company and if the defendants failed to pay this amount within the
time frame stipulated by the court, a decree permitting the Company to auction certain gold ornaments
pledged with it in a public auction. The Company also filed a plaint before the same court in OS
88/2013 against Chethana S. Shetty, C. Seetharam and Reshmalatha, directing the defendants therein to
jointly and severally pay the Company a sum of INR 17,780 and a sum of INR 4,508,608 in respect of a
SPL loan account bearing number 6649, 6686, 6807, 6825, 6860 and 6861. The Company also sought
a decree permitting it to auction certain gold ornaments pledged with it in a public auction if the
amounts were not paid to it within the time frame prescribed. Separately, a charge sheet bearing
reference number CC 480/12 was filed against the defendants. The criminal matter was posted for
evidence. while the civil cases have been posted for May 16, 2018 for orders. The property and the
bond deposit of the defendant has been attached conditionally.
11. The Company filed a civil case bearing No. OS 12/12 against P.S. Ratna Deep, a former branch
manager of the Company working at the Jangareddygudem branch. The suit for recovery was filed by
the Company seeking recovery of a sum of INR 36,12,354, which was the amount allegedly
misappropriated by the defendant. The case was dismissed by the court. The Company has filed an
appeal before the High Court of Judicature at Hyderabad and this was admitted by the High Court as
AS 1110/2016. The appeal has been posted for hearing. Separately, the police filed a charge sheet
bearing reference number CC 545/2016 and the court has issued summons to the accused to be present
before it. The trial is presently underway in this matter. The petition filed by the Company under
section 451 CrPC is also pending and arguments will commence post completion of the trial.
12. The Company has filed a plaint before the Hon'ble Sub Court, Mavelikara in OS No. 14/2014 against
George Mathew and Laila George seeking recovery of an amount of INR 31,27,000 with 18% interest
from George Mathew and his assets and a declaration that a sale deed executed by the defendant be
cancelled. The Company has also filed a criminal case against the defendants and an FIR has been
registered and the matter is presently under investigation. A charge sheet has not yet been filed in this
matter. The court has issued an injunction order restraining the respondents from alienating the
property in dispute and encumbering the property till April 11, 2014. The evidence stage has
commenced in the civil case and the first witness of the Company was examined on June 09, 2017. The
court has appointed an Advocate Commissioner to record further evidence.
13. The Company filed CC 872/11 under section 138 of the Negotiable Instruments Act, 1881. This was
dismissed by the court due to the demise of the accused. Separately, OS 90/2011 filed by the Company
was decreed in its favour, as described above in paragraph 9 of 'Civil Cases' under 'Litigations against
the Company'. The Company therefore filed an execution petition bearing EP No. 98/2015 and the case
was posted to February 19, 2018. Further, the police have filed a charge sheet in the criminal case
bearing Cr No 108/2011 as CC 191/16 and the case has been transferred to the 3rd MM Court and it is
posted for appearance of the accused. Certain accused in CC 191/2016 have filed a petition before the
jurisdictional High Court to quash the charges levelled against them. The Company has filed a counter
against this petition before the High Court.
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OTHER REGULATORY AND STATUTORY DISCLOSURES
Authority for the Issue
At the meeting of the Board of Directors of our Company, held on February 13, 2017, the Directors approved
the issuance to the public of Secured NCDs and Unsecured NCDs of face value of ` 1,000 each, aggregating up
to ` 50,000 millions.
The present issue through the Shelf Prospectus of Secured NCDs is for an amount upto ` 30,000 million (“Shelf
Limit”), hereinafter called the “Issue” is approved by NCD Public Issue Committee meeting dated
February 21, 2018. The NCDs will be issued in one or more tranches up to the Shelf Limit, on terms and
conditions as set out in the relevant tranche prospectus for any tranche issue (each a "Tranche Issue"), which
issue is being made as decided by NCD Public Issue Committee of Board of Directors.
Further, the present borrowing is within the borrowing limits under Section 180(1)(c) of the Companies
Act, 2013 duly approved by the shareholders’ vide their resolution dated September 25, 2014.
Prohibition by SEBI
Our Company, persons in control of our Company and/or our Promoters and/or our Directors have not been
restrained, prohibited or debarred by SEBI from accessing the securities market or dealing in securities and no
such order or direction is in force. Further, no member of our promoter group has been prohibited or debarred by
SEBI from accessing the securities market or dealing in securities due to fraud.
Disclaimer Clause of SEBI
IT IS TO BE DISTINCTLY UNDERSTOOD THAT SUBMISSION OF OFFER DOCUMENT TO THE

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) SHOULD NOT IN ANY WAY BE
DEEMED OR CONSTRUED THAT THE SAME HAS BEEN CLEARED OR APPROVED BY SEBI.
SEBI DOES NOT TAKE ANY RESPONSIBILITY EITHER FOR THE FINANCIAL SOUNDNESS OF
ANY SCHEME OR THE PROJECT FOR WHICH THE ISSUE IS PROPOSED TO BE MADE OR FOR
THE CORRECTNESS OF THE STATEMENTS MADE OR OPINIONS EXPRESSED IN THE OFFER
DOCUMENT. THE LEAD MERCHANT BANKERS, EDELWEISS FINANCIAL SERVICES LIMITED
AND A. K. CAPITAL SERVICES LIMITED, HAS CERTIFIED THAT DISCLOSURES MADE IN THE
OFFER DOCUMENT ARE GENERALLY ADEQUATE AND ARE IN CONFORMITY WITH THE
SEBI (ISSUE AND LISTING OF DEBT SECURITIES) REGULATIONS, 2008 IN FORCE FOR THE
TIME BEING. THIS REQUIREMENT IS TO FACILITATE INVESTORS TO TAKE AN INFORMED
DECISION FOR MAKING INVESTMENT IN THE PROPOSED ISSUE.
IT SHOULD ALSO BE CLEARLY UNDERSTOOD THAT WHILE THE ISSUE IS PRIMARILY

RESPONSIBLE FOR CORRECTNESS, ADEQUACY AND DISCLSOURE OF ALL RELEVANT
INFORMATION IN THE OFFER DOCUMENT, THE LEAD MERCHANT BANKERS ARE
EXPECTED TO EXERCISE DUE DILIGENCE TO ENSURE THAT THE ISSUER DISCHARGES ITS
RESPONSIBILITY ADEQUATELY IN THIS BEHALF AND TOWARDS THIS PURPOSE, THE LEAD
MERCHANT BANKERS, EDELWEISS FINANCIAL SERVICES LIMITED AND A. K. CAPITAL
SERVICES LIMITED, HAS FURNISHED TO SEBI A DUE DILIGENCE CERTIFICATE DATED 
WHICH READS AS FOLLOWS:
“We confirm that neither the issuer nor its promoters or directors have been prohibited from accessing
the capital market under any order or direction passed by the Board. We also confirm that none of the
intermediaries named in the offer document have been debarred from functioning by any regulatory
authority.
We confirm that all the material disclosures in respect of the issuer have been made in the offer document
and certify that any material development in the issue or relating to the issue up to the commencement of
listing and trading of the shares offered through this issue shall be informed through public notices /
advertisements in all those newspapers in which pre-issue advertisement and advertisement for opening
or closure of the issue will be given.
Page | 181
We confirm that the offer document contains all disclosures as specified in the Securities and Exchange
Board of India (Issue and Listing of Debt Securities) Regulations, 2008.
We also confirm that all relevant provisions of the Companies Act, 2013, Securities Contracts,
(Regulation) Act, 1956, Securities and Exchange Board of India Act, 1992 and the Rules, Regulations,
Guidelines, Circulars issued thereunder are complied with.
Disclaimer Clause of the BSE
BSE Limited ("the Exchange") has given, vide its letter dated , permission to this Company to use the
Exchange's name in this offer document as one of the stock exchanges on which this company's securities
are proposed to be listed. The Exchange has scrutinized this offer document for its limited internal
purpose of deciding on the matter of granting the aforesaid permission to this Company. The Exchange
does not in any manner:
a) warrant, certify or endorse the correctness or completeness of any of the contents of this offer
document; or
b) warrant that this Company's securities will be listed or will continue to be listed on the Exchange;
or
c) take any responsibility for the financial or other soundness of this Company, its promoters, its
management or any scheme or project of this Company;
And it should not for any reason be deemed or construed that this offer document has been cleared or
approved by the Exchange. Every person who desires to apply for, or otherwise acquires any securities of
this Company may do so pursuant to Independent inquiry, investigation and analysis and shall not have
any claim against the Exchange whatsoever by any reason of any loss which may be suffered by such
person consequent to or in connection with such subscription/acquisition whether by reason of anything
stated or omitted to be stated herein or for any other reason whatsoever.
Disclaimer Clause of the RBI
THE COMPANY IS HAVING A VALID CERTIFICATE OF REGISTRATION DATED DECEMBER

12, 2008 ISSUED BY THE RESERVE BANK OF INDIA UNDER SECTION 45 IA OF THE RESERVE
BANK OF INDIA ACT, 1934. HOWEVER, THE RBI DOES NOT ACCEPT ANY RESPONSIBILITY
OR GUARANTEE ABOUT THE PRESENT POSITION AS TO THE FINANCIAL SOUNDNESS OF
THE COMPANY OR FOR THE CORRECTNESS OF ANY OF THE STATEMENTS OR
REPRESENTATIONS MADE OR OPINIONS EXPRESSED BY THE COMPANY AND FOR
REPAYMENT OF DEPOSITS/ DISCHARGE OF LIABILITY BY THE COMPANY.
Listing
Application will be been made to the BSE simultaneously with the filing of the Shelf Prospectus for permission
to deal in and for official quotation in NCDs. If permission to deal in and for an official quotation of our NCDs
is not granted by the BSE, our Company will forthwith repay, without interest, all monies received from the
applications in pursuance of the Shelf Prospectus.
Our Company shall ensure that all steps for the completion of the necessary formalities for listing and
commencement of trading at the stock exchange mentioned above are taken within 12 Working Days from the
date of closure of the issue.
For the avoidance of doubt, it is hereby clarified that in the event of non subscription to any one or more of the
Options, such NCDs with Option(s) shall not be listed.
Consents
Consents in writing of: (a) the Directors, (b) our Company Secretary and Compliance Officer, (c) Chief
Financial Officer, (d) Lead Managers, (e) the Registrar to the Issue, (f) Legal Advisor to the Issue, (g) Credit
Rating Agencies, (h) the Debenture Trustee, and (i) Bankers to the Issue for a respective Tranche Issue, (j) Lead
Page | 182
Brokers to the Issue, (l) Refund Bank, and (m) Statutory Auditor to act in their respective capacities, have been
obtained and the same will be filed along with a copy of this Draft Shelf Prospectus, Shelf Prospectus and
Tranche Prospectus with the ROC.
The consent of the Statutory Auditors of our Company, namely Varma & Varma, Chartered Accountants for
(a) inclusion of their names as the Statutory Auditors, (b) examination reports on Reformatted Summary
Financial Statements in the form and context in which they appear in this Draft Shelf Prospectus, (c) the
statement of tax benefits available to the debenture holders in the form and context in which they appear in this
Draft Shelf Prospectus; and (d) report on limited review of unaudited standalone financials for the nine months
ended December 31, 2017, unaudited standalone financials for the six months ended September 30, 2017 and
unaudited standalone financial statements for the quarter ended June 30, 2017 which was reviewed by M/s.
Rangamani & Co., have been obtained and has not withdrawn such consent and the same will be filed along with
a copy of the Shelf Prospectus with the Registrar of Companies, Kerala and Lakshadweep.
Expert Opinion
Except the (i) Auditors report on Financial Statements issued by Varma & Varma, Chartered Accountants dated
February 21, 2018, and (ii) Statement of Tax Benefits issued by Varma & Varma, Chartered Accountants dated
February 21, 2018 the Company has not obtained any expert opinions.
Common form of Transfer
The Issuer undertakes that there shall be a common form of transfer for the NCDs and the provisions of the
Companies Act, 2013 applicable as on the date of this Draft Shelf Prospectus and all applicable laws shall be duly
complied with in respect of all transfer of debentures and registration thereof.
If our Company does not receive the minimum subscription of 75 % of the Base Issue, prior to the Issue Closing
Date, the entire subscription amount shall be refunded to the Applicants within 12 Days from the date of closure of
the Issue. The refunded subscription amount shall be credited only to the account from which the relevant
subscription amount was remitted. In the event, there is a delay, by the issuer in making the aforesaid refund, the
Company will pay interest at the rate of 15% per annum for the delayed period.
Filing of the Draft Shelf Prospectus
A copy of the Draft Shelf Prospectus has been filed with the Designated Stock Exchange in terms of Regulation
7 of the SEBI Debt Regulation for dissemination on their website and the SEBI.
Filing of the Shelf Prospectus and Tranche Prospectus with the RoC
A copy of the Shelf Prospectus and the Tranche Prospectus shall be filed with the Registrar of Companies in
accordance with Section 26 and Section 31 of the Companies Act, 2013.
Debenture Redemption Reserve
Section 71 of the Companies Act, 2013, read with Rule 18 made under Chapter IV of the Companies Act, 2013,
requires that any company that intends to issue debentures must create a DRR for the purpose of redemption of
debentures, in accordance with the following conditions: (a) the DRR shall be created out of the profits of the
company available for payment of dividend, (b) the DRR shall be equivalent to at least 25% of the value of the
outstanding debentures issued through the public issue in accordance with the SEBI Debt Regulations in case of
NBFCs registered with the RBI. Accordingly, our Company is required to create a DRR of 25% of the value of
the outstanding NCDs issued through the Issue. In addition, as per Rule 18 (7) (e) under Chapter IV of the
Companies Act, 2013, the amounts credited to DRR shall not be utilised by our Company except for the
redemption of the NCDs. Every company required to create or maintain DRR shall before the 30th day of April
of each year, deposit or invest, as the case may be, a sum which shall not be less than 15% of the amount of its
debentures maturing during the year ending on the 31st day of March, following any one or more of the
following methods: (a) in deposits with any scheduled bank, free from charge or lien; (b) in unencumbered
securities of the Central Government or of any State Government; (c) in unencumbered securities mentioned in
clauses (a) to (d) and (ee) of section 20 of the Indian Trusts Act, 1882; (d) in unencumbered bonds issued by any
Page | 183
other company which is notified under clause (f) of section 20 of the Indian Trusts Act, 1882. The amount
deposited or invested, as the case may be, shall not be utilised for any purpose other than for the repayment of
debentures maturing during the year referred to above, provided that the amount remaining deposited or
invested, as the case may be, shall not at any time fall below 15% of the amount of debentures maturing during
the 31st day of March of that year. This may have a bearing on the timely redemption of the NCDs by our
Company.
Issue Related Expenses
The expenses for each Tranche Issue include, inter alia, lead management fees and selling commission to the
lead managers, lead-brokers, fees payable to debenture trustees, underwriters, the Registrar to the Issue, SCSBs’
commission/ fees, printing and distribution expenses, legal fees, advertisement expenses and listing fees. The
Issue expenses and listing fees will be paid by our Company.
The estimated breakdown of the total expenses for each Tranche Issue shall be as specified in the relevant
Tranche Prospectus.
Underwriting
The Issue may or may not be underwritten. Details of underwriting, if any, will be specified in the relevant
Tranche Prospectus.
Identification as wilful defaulter
Neither our Company nor any Promoter or Director is a wilful defaulter identified by the RBI or any other
governmental authority nor in default of payment of interest or repayment of principal amount in respect of debt
securities issued by it to the public, if any, for a period of more than six months.
Reservation
No portion of this Issue has been reserved.
Details regarding the Company and other listed companies under the same management within the
meaning of section 370(1B) of the Companies Act, 1956, which made any capital issue during the last
three years
On May 03, 2011, our Company issued and allotted 51,500,000 equity shares at a price of ` 175 per such Equity
Share, amounting to an aggregate of ` 9,012,500,000 pursuant to an initial public offer under the SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2009 (“SEBI ICDR Regulations”) which opened on
April 18, 2011 and closed on April 21, 2011. The electronic credit of the equity shares to investors pursuant to
the initial public offer was completed on May 04, 2011.
On April 29, 2014, our Company issued and allotted 25,351,062 Equity Shares at a price of `165 per Equity
Share, amounting to an aggregate of `4,182.93 million pursuant to an institutional placement programme under
Chapter VIII – A of the SEBI ICDR Regulations which opened and closed on April 25, 2014. The electronic
credit of the Equity Shares to investors pursuant to the institutional placement programme was completed on
April 29, 2014. There are no listed companies under the same management within the meaning of Section 370(1)
(B) of the Companies Act, 1956.
On January 06, 2015, ESOP Committee of Board of Directors of our company has allotted 6,48,581 equity
shares of face value of ` 10 each under Muthoot ESOP 2013 pursuant to exercise of 4,85,181 options of ` 10
each for Loyalty Options (face value ` 10 each) and 163,400 options of ` 50/- each for Growth Options (face
value ` 10 each) by Employees of the Company.
On March 06, 2015, ESOP Committee of Board of Directors of our company has allotted 2,54,008 equity shares
of face value of ` 10 each under Muthoot ESOP 2013 pursuant to exercise of 1,68,960 options of ` 10 each for
Loyalty Options (face value ` 10 each) and 85,048 options of ` 50/- each for Growth Options (face value ` 10
each) by Employees of the Company.
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On June 4, 2015, ESOP Committee of Board of Directors of our company has allotted 33,541 equity shares of
face value of ` 10 each under Muthoot ESOP 2013 pursuant to exercise of 21,641 options of ` 10 each for
Loyalty Options (face value ` 10 each) and 11,900 options of ` 50/- each for Growth Options (face value ` 10
On September 15, 2015, the ESOP Committee of Board of Directors of the Company has allotted 44,036 equity
shares of face value of ` 10 each under Muthoot ESOP 2013 pursuant to exercise of 9,394 options of ` 10 each
for Loyalty Options (face value ` 10 each) and 34,642 options of ` 50 each for Growth Options (face value ` 10
On March 16, 2016, Nomination and Remuneration Committee of Board of Directors of the Company has
allotted 9,58,336 equity shares of face value of ` 10 each under Muthoot ESOP 2013 pursuant to exercise of
6,02,106 options of ` 10 each for Loyalty Options (face value ` 10 each) and 3,56,230 options of ` 50 each for
Growth Options (face value ` 10 each) by Employees of the Company.
On June 27, 2016, Nomination and Remuneration Committee of Board of Directors of the Company has allotted
48,602 equity shares of face value of ` 10 each under Muthoot ESOP 2013 pursuant to exercise of 23,782
options of ` 10 each for Loyalty Options (face value ` 10 each) and 24,820 options of ` 50/- each for Growth
Options (face value ` 10 each) by Employees of the Company.
On December 21, 2016, Nomination and Remuneration Committee of Board of Directors of the Company has
allotted 404,805 equity shares of face value of ` 10 each under the Muthoot ESOP 2013 pursuant to exercise of
12,525 options of ` 10 each for Loyalty Options (face value ` 10 each) and 392,280 options of ` 50/- each for
Growth Options (face value ` 10 each) by Employees of the Company.
On March 23, 2017, Nomination and Remuneration Committee of Board of Directors of the Company has
allotted 19,810 equity shares of face value of ` 10 each under the Muthoot ESOP 2013 pursuant to exercise
19,810 options of ` 50 each for Growth Options (face value ` 10 each) by Employees of the Company.
On May 09, 2017, Nomination and Remuneration Committee of Board of Directors of the Company has allotted
60,747 equity shares of face value of ` 10 each under the Muthoot ESOP 2013 pursuant to exercise 3,512
options of ` 10 each for Loyalty Options (face value ` 10 each) and 57,235 options of ` 50/- each for Growth
Options (face value ` 10 each) by Employees of the Company by Employees of the Company.
On August 07, 2017, Nomination and Remuneration Committee of Board of Directors of the Company has
Growth Options (face value ` 10 each) by Employees of the Company by Employees of the Company.
On December 11, 2017, Nomination and Remuneration Committee of Board of Directors of the Company has
Growth Options (face value ` 10 each) by Employees of the Company by Employees of the Company.
Public/ Rights Issues
On May 03, 2011, our Company issued and allotted 51,500,000 Equity Shares at a price of ` 175 per Equity Share,
amounting to an aggregate of ` 9,012,500,000 pursuant to an initial public offer under the Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“SEBI ICDR Regulations”) which
opened on April 18, 2011 and closed on April 21, 2011. The electronic credit of the Equity Shares to investors pursuant
to the initial public offer was completed on May 04, 2011.
On September 14, 2011, our Company issued and allotted 6.93 million secured, redeemable non-convertible debentures
(“PL- I NCDs”) at a price of ` 1,000 per PL- I NCD, amounting to an aggregate of ` 6,932.81 million pursuant to a
public offer under the SEBI Debt Regulations which opened on August 23, 2011 and closed on September 05, 2011.
The electronic credit of the PL-I NCDs to investors pursuant to this public offer was completed on September 16, 2011.
Page | 185
On January 18, 2012, our Company issued and allotted 4.59 million secured, redeemable non-convertible debentures
(“PL- II NCDs”) at a price of ` 1,000.00 per PL- II NCD, amounting to an aggregate of ` 4,593.20 million pursuant to
a public offer under the SEBI Debt Regulations which opened on December 22, 2011 and closed on January 07, 2012.
The electronic credit of the PL-II NCDs to investors pursuant to this public offer was completed on January 19, 2012.
On April 18, 2012, our Company issued and allotted 2.60 million secured, redeemable non-convertible debentures
(“PL- III NCDs”) at a price of ` 1,000.00 per PL- III NCD, amounting to an aggregate of ` 2,597.52 million pursuant
to a public offer under the SEBI Debt Regulations which opened on March 02, 2012 and closed on April 09, 2012. The
electronic credit of the PL-III NCDs to investors pursuant to this public offer was completed on April 19, 2012.
On November 01, 2012, our Company issued and allotted 2.75 million secured, redeemable non-convertible debentures
(“PL- IV NCDs”) at a price of ` 1,000.00 per PL- IV NCD, amounting to an aggregate of ` 2,749.40 million pursuant
to a public offer under the SEBI Debt Regulations which opened on September 17, 2012 and closed on
October 22, 2012. The electronic credit of the PL-IV NCDs to investors pursuant to this public offer was completed on
November 02, 2012.
On September 25, 2013, our Company issued and allotted 2.79 million secured, redeemable non-convertible debentures
and 0.21 million unsecured, redeemable non-convertible debentures in the nature of subordinated debt (“PL- V NCDs”)
at a price of ` 1,000.00 per PL- V NCD, amounting to an aggregate of ` 3,000 million pursuant to a public offer under
the SEBI Debt Regulations which opened on September 02, 2013 and closed on September 16, 2013. The electronic
credit of the PL-V NCDs to investors pursuant to this public offer was completed on September 26, 2013.
On December 04, 2013, our Company issued and allotted 2.77 million secured, redeemable non-convertible debentures
and 0.23 million unsecured, redeemable non-convertible debentures in the nature of subordinated debt (“PL- VI
NCDs”) at a price of ` 1,000.00 per PL- VI NCD, amounting to an aggregate of ` 3,000 million pursuant to a public
offer under the SEBI Debt Regulations which opened on November 18, 2013 and closed on November 25, 2013. The
electronic credit of the PL-VI NCDs to investors pursuant to this public offer was completed on December 05, 2013.
On February 04, 2014, our Company issued and allotted 4.56 million secured, redeemable non-convertible debentures
and 0.44 million unsecured, redeemable non-convertible debentures in the nature of subordinated debt (“PL- VII
NCDs”) at a price of ` 1,000.00 per PL- VII NCD, amounting to an aggregate of ` 5,000 million pursuant to a public
offer under the SEBI Debt Regulations which opened on December 27, 2013 and closed on January 27, 2014. The
electronic credit of the PL-VII NCDs to investors pursuant to this public offer was completed on February 05, 2014.
On April 02, 2014, our Company issued and allotted 1.79 million secured, redeemable non-convertible debentures and
0.19 million unsecured, redeemable non-convertible debentures in the nature of subordinated debt (“PL- VIII NCDs”)
at a price of ` 1,000.00 per PL- VIII NCD, amounting to an aggregate of ` 1,979.28 million pursuant to a public offer
under the SEBI Debt Regulations which opened on March 10, 2014 and closed on March 21 2014. The electronic
credit of the PL-VIII NCDs to investors pursuant to this public offer was completed on April 03, 2014.
On April 29, 2014, our Company issued and allotted 25,351,062 Equity Shares at a price of ` 165 per Equity
Share, amounting to an aggregate of ` 4,182.93 million pursuant to an institutional placement programme under
Chapter VIII – A of the SEBI ICDR Regulations which opened and closed on April 25, 2014. The electronic
credit of the Equity Shares to investors pursuant to the institutional placement programme was completed on
April 29, 2014.
On July,04, 2014, our Company issued and allotted 4.29 million secured, redeemable non-convertible
debentures and 0.36 million unsecured, redeemable non-convertible debentures in the nature of subordinated
debt (“PL-IX NCDs”) at a price of ` 1,000.00 per PL-IX NCD, amounting to an aggregate of ` 4,661.94 million
pursuant to a public offer under the SEBI Debt Regulations which opened on May 26, 2014 and closed on
June 26 2014. The electronic credit of the PL-IX NCDs to investors pursuant to this public offer was completed
on July 07, 2014.
On September, 26, 2014, our Company issued and allotted 3.67 million secured, redeemable non-convertible
debt (“PL-X NCDs”) at a price of ` 1,000.00 per PL-X NCD, amounting to an aggregate of ` 3,977.82 million
pursuant to a public offer under the SEBI Debt Regulations which opened on August 18, 2014 and closed on
September 18 2014. The electronic credit of the PL-X NCDs to investors pursuant to this public offer was
completed on September 30 2014.
Page | 186
On December 29, 2014, our Company issued and allotted 3.61 million secured, redeemable non-convertible
debt (“PL-XI NCDs”) at a price of ` 1,000.00 per PL-XI NCD, amounting to an aggregate of ` 4,000 million
pursuant to a public offer under the SEBI Debt Regulations which opened on November 19, 2014 and closed on
December 18, 2014. The electronic credit of the PL-XI NCDs to investors pursuant to this public offer was
completed on December 31, 2014.
On April 23, 2015, our Company issued and allotted 2.71 million secured, redeemable non-convertible
debt (“PL-XII NCDs”) at a price of ` 1,000.00 per PL-XII NCD, amounting to an aggregate of ` 3,000 million
pursuant to a public offer under the SEBI Debt Regulations which opened on March 25, 2015 and closed on
April 15, 2015. The electronic credit of the PL-XII NCDs to investors pursuant to this public offer was
completed on April 27, 2015.
On October 14, 2015, our Company issued and allotted 4.64 million secured, redeemable non-convertible
debt (“PL-XIII NCDs”) at a price of ` 1,000.00 per PL-XIII NCD, amounting to an aggregate of ` 5,000 million
pursuant to a public offer under the SEBI Debt Regulations which opened on September 07, 2015 and closed on
October 05, 2015. The electronic credit of the PL-XIII NCDs to investors pursuant to this public offer was
completed on October 15, 2015.
On January 20, 2016, our Company issued and allotted 4.15 million secured, redeemable non-convertible
debt (“PL-XIV NCDs”) at a price of ` 1,000.00 per PL-XIV NCD, amounting to an aggregate of ` 4385.24
million pursuant to a public offer under the SEBI Debt Regulations which opened on December 07, 2015 and
closed on January 11, 2016. The electronic credit of the PL-XIV NCDs to investors pursuant to this public offer
was completed on January 22, 2016.
On May 12, 2016, our Company issued and allotted 4.76 million secured, redeemable non-convertible
debt (“PL-XV NCDs”) at a price of ` 1,000.00 per PL-XV NCD, amounting to an aggregate of ` 5000.00
million pursuant to a public offer under the SEBI Debt Regulations which opened on April 04, 2016 and closed
on May 03, 2016. The electronic credit of the PL-XV NCDs to investors pursuant to this public offer was
completed on May 13, 2016.
On January 30, 2017, our Company issued and allotted 13.00 million secured, redeemable non-convertible
debt (“PL-XVI NCDs”) at a price of ` 1,000.00 per PL-XVI NCD, amounting to an aggregate of ` 13317.76
million pursuant to a public offer under the SEBI Debt Regulations which opened on January 17, 2017 and
closed on January 18, 2017. The electronic credit of the PL-XVI NCDs to investors pursuant to this public offer
was completed on January 31, 2017.
On April 24, 2017, our Company issued and allotted 19.50 million secured, redeemable non-convertible
debt (“PL-XVII NCDs”) at a price of ` 1,000.00 per PL-XVII NCD, amounting to an aggregate of ` 19687.17
million pursuant to a public offer under the SEBI Debt Regulations which opened on April 11, 2017 and closed
on April 12, 2017. The electronic credit of the PL-XVII NCDs to investors pursuant to this public offer was
completed on April 25, 2017.
Previous Issue
Except as stated in the sections titled “Capital Structure” and “Disclosures on existing financial indebtedness”
on pages 44 and 120 of this Draft Shelf Prospectus respectively, our Company has not made any other issue of
non convertible debentures.
Other than as specifically disclosed in this Draft Shelf Prospectus, our Company has not issued any securities for
consideration other than cash.
Page | 187
Utilisation details of Previous Issues
Net
proceeds
Gross of the
proceeds issue
Net
raised Issue Related after Objects of the Issue
S.N Issue Open Allotment Utilisation
Instrument through Expenses (Rs. deducting as per respective
o. Date date of
the In Million) the issue Prospectus
Proceeds
Issue(Rs.in related
Million) expenses
(Rs.in
Million)
The Proceeds raised
through the issue after
meeting issue related
expenses will be Fully
utilised to augment utilised
1. Equity our capital base to according
18/04/2011 03/05/2011 9012.50 151.30 8861.20
Shares meet future capital to the
requirements to objects of
provide for funding of the issue
loans to our customers
and general corporate
purposes
The funds raised
through this Issue will
be utilised for our
various financing
activities including
lending and
investments, to repay
our existing liabilities
or loans and towards
our business Fully
Secured,
operations including utilised
redeemable
2. for our capital according
non- 23/08/2011 14/09/2011 6932.81 127.70 6805.11
expenditure and to the
convertible
working capital objects of
debentures
requirements and the issue
general corporate
purposes, after
meeting the
expenditures of and
related to the Issue
and subject to
applicable
statutory/regulatory
requirements.
The funds raised
be utilised for our
various financing
lending and
or loans and towards Fully
Secured, our business utilised
redeemable operations including
3. according
non- 22/12/2011 18/01/2012 4593.20 75.10 4518.10 for our capital to the
convertible expenditure and objects of
debentures working capital the issue
requirements and
general corporate
purposes, after
meeting the
expenditures of and
and subject to
applicable
Page | 188
requirements.
The funds raised
be utilised for our
various financing
lending and
our business Fully
Secured,
redeemable
non- 02/03/2012 18/04/2012 2597.52 36.30 2561.22
convertible
debentures
general corporate
purposes, after
meeting the
expenditures of and
and subject to
applicable
requirements.
The funds raised
be utilised for our
various financing
lending and
our business Fully
Secured,
redeemable
non- 17/09/2012 01/11/2012 2749.40 36.45 2712.95
convertible
debentures
general corporate
purposes, after
meeting the
expenditures of and
and subject to
applicable
requirements.
The funds raised
be utilised for our
various financing
lending and
Secured,
redeemable
non-
our business Fully
convertible
debentures
& 02/09/2013 25/09/2013 3000.00 25.25 2974.75
Unsecured,
redeemable
non-
general corporate
convertible
purposes, after
debentures
meeting the
expenditures of and
and subject to
applicable
requirements.
7. Secured, 18/11/2013 04/12/2013 3000.00 24.60 2975.40 The funds raised Fully
Page | 189
redeemable through this Issue will utilised
non- be utilised for our according
convertible various financing to the
debentures activities including objects of
& lending and the issue
Unsecured, investments, to repay
redeemable our existing liabilities
non- or loans and towards
convertible our business
debentures operations including
for our capital
expenditure and
working capital
requirements and
general corporate
purposes, after
meeting the
expenditures of and
and subject to
applicable
requirements.
The funds raised
be utilised for our
various financing
lending and
Secured,
redeemable
non-
our business Fully
convertible
debentures
& 27/12/2013 04/02/2014 5000.00 35.78 4964.22
Unsecured,
redeemable
non-
general corporate
convertible
purposes, after
debentures
meeting the
expenditures of and
and subject to
applicable
requirements.
The funds raised
be utilised for our
various financing
lending and
Secured,
redeemable
non-
our business Fully
convertible
debentures
& 10/03/2014 02/04/2014 1979.28 14.76 1964.52
Unsecured,
redeemable
non-
general corporate
convertible
purposes, after
debentures
meeting the
expenditures of and
and subject to
applicable
requirements.
The Proceeds raised Fully
10. Equity through the issue after utilised
25/04/2014 29/04/2014 4182.93 45.76 4137.17
Shares meeting issue related according
expenses will be to the
Page | 190
utilised to augment objects of
the long term the issue
resources by way of
enhancing the capital
base to meet future
capital requirements
and provide funding
for loans to the
customers of our
Company and for
general corporate
purposes.
The funds raised
be utilised for our
various financing
lending and
Secured,
redeemable
non-
our business Fully
convertible
debentures
& 26/05/2014 04/07/2014 4661.94 13.61 4648.33
Unsecured,
redeemable
non-
general corporate
convertible
purposes, after
debentures
meeting the
expenditures of and
and subject to
applicable
requirements.
The proceeds raised
Secured, through the issue after
redeemable meeting issue related
non- expenses will be
Fully
convertible utilised as below. a)
utilised
debentures For the purpose of
12. according
& 18/08/2014 26/09/2014 3977.82 10.39 3967.43 lending- 75% of the
to the
Unsecured, amount raised and
objects of
redeemable allotted in the Issue, b)
the issue
non- For General Corporate
convertible Purposes- 25% of the
debentures amount raised and
allotted in the Issue
The proceeds raised
Fully
utilised
13. according
& 19/11/2014 29/12/2014 4000.00 9.46 3990.54 lending- 75% of the
to the
objects of
the issue
Secured, The proceeds raised
redeemable through the issue after
non- meeting issue related
expenses will be Fully
convertible
utilised as below. a) utilised
debentures
14. For the purpose of according
& 25/03/2015 23/04/2015 3000.00 7.02 2992.98
lending- 75% of the to the
Unsecured,
amount raised and objects of
redeemable
allotted in the Issue, b) the issue
non-
convertible For General Corporate
debentures Purposes- 25% of the
amount raised and
Page | 191
The proceeds raised
Fully
utilised
15. according
& 07/09/2015 14/10/2015 5000.00 11.98 4988.02 lending- 75% of the
to the
objects of
the issue
The proceeds raised
Fully
utilised
16. according
& 11/12/2015 20/01/2016 4385.24 11.43 4373.81 lending- 75% of the
to the
objects of
the issue
The proceeds raised
Fully
utilised
17. according
& 04/04/2016 12/05/2016 5000.00 12.71 4987.29 lending- 75% of the
to the
objects of
the issue
The proceeds raised
Fully
utilised
18. according
& 17/01/2017 30/01/2017 13317.76 184.05 13133.71 lending- 75% of the
to the
objects of
the issue
The proceeds raised
Fully
utilised
19. according
& 11/04/2017 23/04/2017 19687.17 246.94 19440.23 lending- 75% of the
to the
objects of
the issue
Details regarding lending out of issue proceeds of Previous Issues
A. Lending Policy
Page | 192
Please refer to the paragraph titled ‘Gold Loan Business’ under Chapter ‘Our Business’ at page 79 of this
B. Loans given by the Company
Company has not provided any loans/advances to associates, entities/persons relating to Board, senior
management or Promoters out of the proceeds of Previous Issues.
The Company has not provided any loans/advances to “Group” entities.
C. Types of loans
The loans given by the Company out of the proceeds of Previous Issues are loans against security of gold
jewelry which are given primarily to individuals.
Types of loan given by the Company as on March 31, 2017 are as follows:
S. No Type of loans Amount ( Rs in millions)

1 Secured 272,421.30
2 Unsecured 364.05
Total assets under management (AUM) 272,785.35
Note: The loans given by the Company out of the proceeds of Previous Issues are loans against security of gold jewelry
which are given primarily to individuals.
Denomination of loans outstanding by ticket size as on March 31, 2017
S. No Ticket size Percentage of AUM

1 Upto Rs. 2 lakh 84.76%
2 Rs. 2-5 lakh 10.03%
3 Rs. 5-10 lakh 3. 85%
4 Rs. 10-25 lakh 1. 20%
5 Rs. 25-50 lakh 0.14%
6 Rs. 50 lakh-1 crore 0.02%
7 Rs. 1-5 crore 0.00%
8 Rs. 5-25 crore 0.00%
9 Rs. 25-100 crore 0.00%
10 >Rs. 100 crore 0.00%
100.00%
Denomination of loans outstanding by LTV as on March 31, 2017
S. No LTV Percentage of AUM

1 Upto 40% 1.64%
2 40-50% 3.26%
3 50-60% 6.72%
4 60-70% 27.13%
5 70-80% 61.12%
6 80-90% 0.06%
7 >90% 0.07%
Total 100.00%
Geographical classification of borrowers as on March 31, 2017
S. No. Top 5 states Percentage of AUM

1 TAMIL NADU 19.02%
2 KARNATAKA 10.85%
3 DELHI 8.16%
4 ANDHRA PRADESH 8.13%
5 KERALA 7.19%
Total 53.35%
Types of loans according to sectorial exposure as on March 31, 2017 is as follows:
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S. No Segment- wise breakup of AUM Percentage of AUM
1 Retail
a Mortgages (home loans and loans against property)
b Gold Loans 99.78%
c Vehicle Finance
d MFI
e M &SME
f Capital market funding (loans against shares, margin funding)
g Others 0.15%
2 Wholesale
a Infrastructure
b Real estate (including builder loans) 0.07%
c Promoter funding
d Any other sector (as applicable)
e Others
Total 100.00%
Maturity profile of total retail loan portfolio of the Company as on March 31, 2017 is as follows:
Period Amount ( Rs in millions)

Less than 1 month 54,487.84
1-2 month 40,894.52
2-3 month 32,715.70
3-6 month 73,619.77
6 month -1 year 60,062.87
Above 1 year 11,004.65
Total 272,785.35
Note: Contracted tenor of gold loan is maximum of 12 month. However, on account of high incidence of prepayment before
contracted maturity, the above maturity profile has been drawn up on the basis of historical pattern of repayments. In case of
loans other than gold loan, the maturity profile is based on contracted maturity.
D. Aggregated exposure to top 20 borrowers with respect to concentration of advances as on March 31,2017
Amount (Rs in Million)

Total Advances to twenty largest borrowers 467.49
Percentage of Advances to twenty largest borrowers to Total Advances of the 0.17%
NBFC
E. Aggregated exposure to top 20 borrowers with respect to concentration of exposures as on March

31,2017

Total Exposures to twenty largest borrowers/Customers 467.49
Percentage of Exposures to twenty largest borrowers/Customers to Total 0.17%
Advances of the NBFC on borrowers/Customers
F. Details of loans overdue and classified as non – performing in accordance with the RBI’s guidelines
Movement of gross NPAs* Amount (Rs in Million)

(a) Opening balance 7,024.61
(b) Additions during the year 4,754.37
( c) Reductions during the year 6,157.69
(d) closing balance 5,621.29
* Please refer paragraph titled ”Non Performing Assets (NPAs)” under chapter “Our Business” at page 74 of this Draft Shelf
Prospectus for details on Gross NPA recognition Policy.
Page | 194
Movement of provisions for NPAs Amount (Rs in Million)
(a) Opening balance 1,019.26
(b) Provisions made during the year -
( c) Write-off / write -back of excess provisions -
(d) closing balance 1,019.26
G. Segment –wise gross NPA as on March 31, 2017
S. no Segment- wise breakup of gross NPAs Gross NPA (%)

1 Retail
a Mortgages (home loans and loans against property)
b Gold Loans 96.02%
c Vehicle Finance
d MFI
e M &SME
F Capital market funding (loans against shares, margin funding)
G Others 3.98%
2 Wholesale
a Infrastructure
b Real estate (including builder loans)
c Promoter funding
d Any other sector (as applicable)
e Others
Total 100.00%
H. Classification of borrowings as on March 31, 2017
S. No Type of Borrowings Amount (Rs in Million) Percentage

1 Secured 153,557.71 72.79%
2 Unsecured 57,401.91 27.21%
Total 210,959.62 100.00%
I. Promoter Shareholding
There is no change in promoter holdings in the Company beyond the threshold level stipulated at 26% during the
last financial year.
J. Residual maturity profile of assets and liabilities as on March 31, 2017

1 to Over
30/31 one Over 2 Over 3 Over 6 Over 1 over 3
As at days month months months months year to 5 Over 5 Total
31.03.2016
(one to 2 to 3 to 6
month) months months months to 1 year to 3 year years years
Deposits - - - - - - - - -
54,487.8 40,894.5 32,715.7 73,619.7 11,004.6 272,785.3
60,062.87 - -
Advances 4 2 0 7 5 5
Investment 1657.2
- - - - - 10.38 30.64 1,698.30
s 8
Borrowing 20,814.4 15,844.5 13,495.3 113,408.6 38,397.6 2,662.6 1251.6 210,959.6
5,084.66
s 2 9 6 9 6 2 3 2
Foreign
Currency - - - - - - - 392.85 392.85
assets
Foreign
Currency - - - - - - - - -
liabilities
Page | 195
Material Contracts
Company has not entered into any material contracts other than in the ordinary course of business, in the last two
years.
Legal Proceedings
Proceedings by Ministry or Department of the Government or a statutory authority against any promoter
of the Company during the last five years
Please refer to the section titled “Pending Proceedings and Statutory Defaults” on page 168 of this Draft Shelf
Prospectus, for all legal proceedings by Ministry or Department of the Government or a statutory authority
against any promoter of the Company during the last five years.
Proceedings involving the Company, promoter, director, subsidiaries, group companies or any other
person, whose outcome could have material adverse effect on the position of the Company
We are involved in various legal proceedings including, among others, central excise duty and service tax cases
and criminal proceedings. Except as described in the section titled “Pending Proceedings and Statutory
Defaults” on page 168 of this Draft Shelf Prospectus, we believe that there are no legal proceedings involving
the Company, promoter, director, subsidiaries, group companies or any other person, and in our opinion, no
proceedings are threatened, which may have, or have had during the 12 months preceding the date of this
Preliminary Offer Document, material adverse effect on our business, financial position, profitability or results
of operations.
Proceedings initiated against the Company for economic offences
The Company has not received any notice from any statutory authority with regard to any economic offences.
Details of default and non-payment of statutory dues
Other than as disclosed in the section titled “Pending Proceedings and Statutory Defaults” on page 168 of this
Draft Shelf Prospectus, the Company has not received any demand notice from any statutory agency for default
and non-payment of statutory dues.
Investigations under company law
Draft Shelf Prospectus, the Company and its Subsidiary have not been investigated under any applicable
company law in the last five years immediately preceding the year of issue of this Draft Shelf Prospectus .
Draft Shelf Prospectus, no prosecutions have been filed (whether pending or not) or fines imposed or compounding
of offences done in the last five years immediately preceding the year of the prospectus for the Company and all of its
Subsidiaries.
Auditors’ Remarks
The statutory auditor of the Company, Varma & Varma confirm that there have been no reservations or
qualifications or adverse remarks in the Financial Statements of the Company in the last five financial years
immediately preceding the date of this Draft Shelf Prospectus.
Details of fraud committed against the Company
S.No. Financial Year Details of Fraud Action taken by the Company
1. No fraud of material nature was

committed against the company other These amounts have been recovered/written
2016-17
than frauds committed by staff of the off/provided for
company cumulatively amounting to
Page | 196
Rs.128.27 lakhs
committed against the company other
These amounts have been recovered/written
2015-16 than frauds committed by staff of the
off/provided for
company cumulatively amounting to
Rs.162.66 lakhs
than frauds committed by These amounts have been recovered/written
2014-15
customer/staff of the company off/provided for
cumulatively amounting to Rs.119.62
lakhs
3 No fraud of material nature was
than frauds committed by These amounts have been recovered/written
2013-14
customer/staff of the company off/provided for
cumulatively amounting to
Rs.197.02 lakhs
4 No fraud of material nature was
These amounts have been recovered/written
2012-13 than frauds committed by
off/provided for
customer/staff of the company
amounting to Rs. 41.85 lakhs
Dividend
Our Company has a dividend policy approved by the Board. The Board of Directors may declare one or more
interim dividends any time during the financial year. The Board may recommend final dividend after approval
of the audited financial statements by the Board and will be paid after approval of shareholders in the Annual
General Meeting. The Board will consider financial and other parameters stated in the policy for declaring both
interim dividend and also for recommending final dividend as stated in the policy.
The dividends paid by our company are as follows:
Financial Year Nature of Dividend Dividend Per Equity Share of Rs.10 each (in Rs.)
2017-18 Interim 10.00
2016-17 Interim 6.00
Interim 2.00
2015-16
Interim 4.00
Final 2.00
2014-15
Interim 4.00
Final 1.00
2013-14 Interim 2.00
Interim 3.00
2012-13 Final 4.50
2011-12 Final 4.00
Revaluation of assets
The Company has not revalued its assets in the last five years.
Mechanism for redressal of investor grievances
The MOU between the Registrar to the Issue and our Company will provide for retention of records with the
Registrar to the Issue for a period of at least 3 years from the last date of despatch of the Allotment Advice,
demat credit and refund orders to enable the investors to approach the Registrar to the Issue for redressal of their
grievances.
All grievances relating to the Issue may be addressed to the Registrar to the Issue, giving full details such as
name, address of the applicant, number of NCDs applied for, amount paid on application and the bank branch or
collection centre where the application was submitted. The contact details of Registrar to the Issue are as
follows:
Registrar to the Issue
Link Intime India Private Limited
Page | 197
C 101, 247 Park , L B S Marg
Vikhroli West, Mumbai 400 083
Tel: (+91 22) 4918 6200
Fax: (+91 22) 4918 6195
Website: www.linkintime.co.in
Contact Person: Sumeet Deshpande
SEBI Registration No.: INR000004058
We estimate that the average time required by us or the Registrar to the Issue for the redressal of routine investor
grievances will be 7 (seven) business days from the date of receipt of the complaint. In case of non-routine
complaints and complaints where external agencies are involved, we will seek to redress these complaints as
expeditiously as possible.
Maxin James has been appointed as the Compliance Officer of our Company for this issue.
The contact details of Compliance Officer of our Company are as follows:
Maxin James
Company Secretary
2nd Floor, Muthoot Chambers,
Banerji Road
Kochi - 682 018
Kerala, India
Tel: (+91 484) 6690 247
Fax: (+91 484) 2396506
Investors may contact the Registrar to the Issue or the Compliance Officer in case of any pre-issue or post Issue
related issues such as non-receipt of Allotment Advice, demat credit, refund orders or interest on application
money.
Change in Auditors of our Company during the last three years
Rangamani & Co. has been the statutory auditor of the Company since September 11, 2002 and continued as the
Statutory Auditor of the Company till September 20, 2017. Members of the Company in their Annual General
meeting dated September 20, 2017 appointed Varma & Varma, Chartered Accountants, FRN 0045325 in place
of retiring Auditors Rangamani & Co.
Page | 198
REGULATIONS AND POLICIES
The following description is a summary of certain sector specific laws and regulations in India, which are
applicable to the Company. The information detailed in this chapter has been obtained from publications
available in the public domain. The regulations set out below may not be exhaustive, and are only intended to
provide general information to the investors and are neither designed nor intended to substitute for professional
legal advice.
The Company is a systemically important NBFC which does not accept public deposits. As such, our business
activities are regulated by RBI regulations applicable to non-public deposit accepting NBFCs (“ND-
NBFC”).The Company also carries out the business of wind power generation at certain locations in India.
Following are the significant regulations that affect our operations:
I. NBFC regulations
The Reserve Bank of India Act
The RBI regulates and supervises activities of NBFCs. Chapter III B of the Reserve Bank of India Act
of 1934 (“RBI Act”) empowers the RBI to regulate and supervise the activities of all NBFCs in India.
The RBI Act defines an NBFC under Section 45-I (f)
(i) “a financial institution which is a company;
(ii) a non-banking institution which is a company and which has as its principal business the
receiving of deposits, under any scheme or arrangement or in any other manner, or lending in
any manner;
(iii) such other non-banking institution or class of such institutions as the RBI may, with the
previous approval of the Central Government and by notification in the Official Gazette,
specify.”
Section 45-I(c) of the RBI Act, further defines “financial institution” to mean any non-banking
institution which, among other things, carries on the business or part of its business of making loans or
advances and the acquisition of shares, stock, bonds, debentures or securities issued by a Government
or local authority or other marketable securities of a like nature.
The RBI has clarified through a press release (Ref. No. 1998-99/ 1269) dated April 08, 1999, that in
order to identify a particular company as an NBFC, it will consider both the assets and the income
pattern as evidenced from the last audited balance sheet of the company to decide its principal business.
The company will be treated as an NBFC if (a) its financial assets are more than 50 per cent of its total
assets (netted off by intangible assets); and (b) income from financial assets should be more than 50 per
cent of the gross income. Both these tests are required to be satisfied as the determinant factor for
principal business of a company.
The RBI Act mandates that no NBFC, which comes into existence after the commencement of the
Reserve Bank of India (Amendment) Act shall commence or carry on the business of a non banking
financial institution without obtaining a certificate of registration. In terms of notification No.
DNBS.132/CGM(VSNM)-99 dated April 21, 1999 the minimum net owned fund for a company
applying for such certificate of registration was ` 20,000,000, however the minimum net owned fund
prescribed for companies already in existence prior to the notification was retained at ` 2,500,000. The
RBI has now mandated that all NBFCs shall attain a minimum net owned fund of ` 20,000,000 by
March 31, 2017, as per the following milestones: (i) ` 10,000,000 by March 31, 2016 and
(ii) ` 20,000,000 by the end of March 31, 2017. NBFCs failing to maintain such net owned fund in the
prescribed time shall not be entitled to hold a certificate of registration as an NBFC.
Under Section 45 – IC of the RBI Act, every NBFC must create a reserve fund and transfer thereto a
sum not less than 20 per cent of its net profit every year, as disclosed in the profit and loss account and
before any dividend is declared. Such a fund is to be created by every NBFC irrespective of whether it
is a ND-NBFC or not. Further, no appropriation can be made from the fund for any purpose by the
Page | 199
NBFC except for the purposes specified by the RBI from time to time and every such appropriation
shall be reported to the RBI within 21 days from the date of such appropriation.
Systemically Important ND-NBFCs
All ND-NBFCs with an asset size of ` 1,000 million or more as per the last audited balance sheet will
be considered as a systemically important ND-NBFC (NBFC – ND - SI).RBI by a notification dated
June 04, 2009 had clarified that once an NBFC reaches an asset size of ` 1,000 million, or above, it
shall come under the regulatory requirement for systemically important ND-NBFC, despite not having
such assets on the date of the last balance sheet. The RBI in its notification (RBI/2014-15/299 DNBR
(PD) CC.No.002/03.10.001/2014-15) dated November 10, 2014 revised the threshold for defining
systemic significance for NBFCs-ND in the light of the overall increase in the growth of the NBFC
sector. NBFCs-ND -SI will henceforth be those NBFCs-ND which have asset size of ` 5000 million
and above as per the last audited balance sheet. Moreover as per this amendment, all NBFCs- ND with
assets of ` 5000 million and above, irrespective of whether they have accessed public funds or not,
shall comply with prudential regulations as applicable to NBFCs-ND -SI. NBFCs- ND -SI is required
to comply with conduct of business regulations if customer interface exists. This amendment also
requires that the NBFCs primarily engaged in lending against gold jewelry have to maintain a minimum
Tier 1 capital of 12% with effect from April 01, 2014.
All systemically important NBFCs are required to maintain a minimum Capital to Risk-Weighted
Assets Ratio (“CRAR”) of 15%.
Rating of NBFCs
The RBI has instructed that all NBFCs with an asset size of ` 5,000.00 million shall furnish information
about downgrading or upgrading of the assigned rating of any financial product issued by them within
15 days of a change in rating.
Prudential Norms
Master Directions-Non-Banking Financial Company Systematically Important Non Deposit taking

Company and Deposit taking Company (Reserve Bank) Directions, 2016, as amended, (the
“Prudential Norms”), amongst other requirements prescribe guidelines on ND-NBFCs regarding
income recognition, asset classification, provisioning requirements, constitution of audit committee,
capital adequacy requirements, concentration of credit/investment and norms relating to infrastructure
loans.
Provisioning Requirements
A NBFC-ND, after taking into account the time lag between an account becoming non performing, its
recognition, the realization of the security and erosion overtime in the value of the security charged,
shall make provisions against standard assets, sub-standard assets, doubtful assets and loss assets in the
manner provided for in the Prudential Norms.
Capital Adequacy Norms
Every systemically important ND-NBFC should maintain, with effect from March 31, 2011, a
minimum capital ratio consisting of Tier I and Tier II capital of not less than 15% of its aggregate risk
weighted assets on balance sheet and of risk adjusted value of off-balance sheet items is required to be
maintained. Also, the total of the Tier II capital of a ND-NBFC shall not exceed 100% of the Tier I
capital. NBFCs primarily engaged in lending against gold jewelry (such loans comprising 50% or more
of their financial assets) shall maintain a minimum Tier l capital of 12% by April 01, 2014.
Tier – I Capital means, owned fund as reduced by investment in shares of other non-banking financial
companies and in shares, debentures, bonds, outstanding loans and advances including hire purchase
and lease finance made to and deposits with subsidiaries and companies in the same group exceeding,
in aggregate, ten per cent of the owned fund; and perpetual debt instruments issued by a Systemically
important non-deposit taking non-banking financial company in each year to the extent it does not
Page | 200
exceed 15% of the aggregate Tier I Capital of such company as on March 31 of the previous accounting
year.
Owned Funds means, paid-up equity capital, preference shares which are compulsorily convertible into
equity, free reserves, balance in share premium account; capital reserve representing surplus arising out
of sale proceeds of asset, excluding reserves created by revaluation of assets; less accumulated loss
balance, book value of intangible assets and deferred revenue expenditure, if any.
Tier – II Capital means to include the following (a) preference shares other than those which are
compulsorily convertible into equity; (b) revaluation reserves at discounted rate of 55%; (c) general
provisions and loss reserves to the extent these are not attributable to actual diminution in value or
identifiable potential loss in any specific asset and are available to meet unexpected losses, to the extent
of one-and-one-fourth per cent of risk weighted assets; (d) hybrid debt capital instruments; and
(e) subordinated debt to the extent the aggregate does not exceed Tier – I capital; and (f) perpetual debt
instrument issued by a systemically important ND-NBFC, which is in excess of what qualifies for Tier I
Capital to the extent that the aggregate Tier-II capital does not exceed 15% of the Tier – I capital.
Hybrid debt means, capital instrument, which possess certain characteristics of equity as well as debt.
Subordinated debt means a fully paid up capital instrument, which is unsecured and is subordinated to
the claims of other creditors and is free from restrictive clauses and is not redeemable at the instance of
the holder or without the consent of the supervisory authority of the NBFC. The book value of such
instrument is subjected to discounting as prescribed.
Exposure Norms
In order to ensure better risk management and avoidance of concentration of credit risks, the RBI has,
in terms of the Prudential Norms, prescribed credit exposure limits for financial institutions in respect
of their lending to single/ group borrowers. Credit exposure to a single borrower shall not exceed 15%
of the owned funds of the systemically important ND-NBFC, while the credit exposure to a single
group of borrowers shall not exceed 25% of the owned funds of the systemically important ND-NBFC.
Further, the systemically important ND-NBFC may not invest in the shares of another company
exceeding 15% of its owned funds, and in the shares of a single group of companies exceeding 25% of
its owned funds. Further, the systemically important NBFC-ND-SI may not have credit and investment
in the shares of another company exceeding 15% of its owned funds, and in case of a single group of
companies exceeding 25% of its owned funds. However, this prescribed ceiling shall not be applicable
on a NBFC-ND-SI for investments in the equity capital of an insurance company to the extent
specifically permitted by the RBI. The above norms shall apply to any NBFC-ND-SI not accessing
public funds, either directly or indirectly and not issuing guarantees. Further, NBFC-ND-SI may
exceed the concentration of credit / investment norms, by 5% for any single party and by 10% for a
single group of parties, if the additional exposure is on account of infrastructure loan and / or
investment.
Asset Classification
The Prudential Norms require that every NBFC shall, after taking into account the degree of well
defined credit weaknesses and extent of dependence on collateral security for realisation, classify its
lease/hire purchase assets, loans and advances and any other forms of credit into the following classes:
(i) Standard assets;
(ii) Sub-standard assets;
(iii) Doubtful assets; and
(iv) Loss assets.
Further, such class of assets would not be entitled to be upgraded merely as a result of rescheduling,
unless it satisfies the conditions required for such upgradation. At present, every NBFC is required to
make a provision for standard assets at 0.25% of the outstanding. The requirement for standard assets
Page | 201
for NBFCs-ND-SI and for all NBFCs-D, has vide the RBI notification dated November 10, 2014 been
increased to 0.40%, to be complied with in a phased manner as follows: (i) 0.30% by March 31, 2016,
(ii) 0.35% by March 31, 2017 and 0.40% by March 31, 2018.
Other stipulations
All NBFCs are required to frame a policy for demand and call loan that includes provisions on the cut-
off date for recalling the loans, the rate of interest, periodicity of such interest and periodical reviews of
such performance.
The Prudential norms also specifically prohibit NBFCs from lending against its own shares.
KYC Guidelines
The RBI has extended the Know Your Customer (“KYC”) guidelines to NBFCs and advised all
NBFCs to adopt the same with suitable modifications depending upon the activity undertaken by them
and ensure that a proper policy framework of anti-money laundering measures is put in place. The KYC
policies are required to have certain key elements, including, customer acceptance policy, customer
identification procedures, monitoring of transactions and risk management, diligence of client accounts
opened by professional intermediaries, customer due diligence and diligence of accounts of politically
exposed persons, adherence to KYC guidelines and the exercise of due diligence by persons authorised
by the NBFC, including its brokers and agents.
Corporate Governance Guidelines
Pursuant to a RBI Circular dated July 01, 2013, all systematically important ND NBFCs having an
asset size above ` 1,000.00 million- are required to consider adopting best practices and transparency
in their systems as specified below. An NBFC having assets of ` 500 million and above as per its last
audited balance sheet is already required to constitute an audit committee, consisting of not less than
three members of its Board of Directors. Constitution of a nomination committee, a risk management
committee and certain other norms in connection with disclosure, transparency and connected lending
have also been prescribed in the RBI Circular.
Further RBI vide notification dated November 10, 2014, has mandated the audit committee of all
NBFC – ND - SI to ensure that an information systems audit of internal systems and processes is
conducted at least once in two years to assess operational risks faced by the company. RBI has also
mandated the NBFCs to have a policy to ascertain the ‘fit and proper criteria’ at the time of
appointment of directors and on a continuing basis.
Further, RBI vide notification dated June 03, 2015 has mandated that all NBFCs are required to obtain
undertakings and a deed of covenant from all directors and furnish a quarterly statement to the RBI on
change of directors along with a certificate from the managing director that 'fit and proper criteria' has
been followed. All applicable NBFCs are required to disclose details pertaining to asset-liability
profile, non-performing assets and movement of non-performing assets, details of exposures, etc. in
their annual financial statements.
Financing of NBFCs by bank
The RBI has issued guidelines vide a circular dated bearing number DBOD No. FSD.
BC.46/24.01.028/2006-07 dated December 12, 2006 relating to the financial regulation of systemically
important NBFC-NDs and the relationship of banks with such institutions. In particular, these
guidelines prohibit banks from lending to NBFCs for the financing of certain activities, such as (i) bill
discounting or rediscounting, except where such discounting arises from the sale of commercial
vehicles and two wheelers or three wheelers, subject to certain conditions; (ii) unsecured loans or
corporate deposits by NBFCs to any company; (iii) investments by NBFCs both of current and long
term nature, in any company; (iv) all types of loans and advances by NBFCs to their subsidiaries, group
companies / entities; (v) further lending to individuals for the purpose of subscribing to an initial public
offer. Under the RBI Master Circular on bank finance to NBFCs issued on July 01, 2015, the exposure
(both lending and investment, including off balance sheet exposures) of a bank to a single NBFC
engaged in lending against collateral of gold jewellery (i.e. such loans comprising 50% or more of its
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financial assets) should not exceed 7.5%, of the bank's capital funds. Banks may, however, assume
exposures on a single NBFC up to 12.5%, of their capital funds provided the exposure in excess of
7.5% is on account of funds on-lent by the NBFC to the infrastructure sector. Further, banks may also
consider fixing internal limits for their aggregate exposure to all NBFCs put together and should
include internal sub-limit to all NBFCs providing Gold Loans (i.e. such loans comprising 50% or more
of their financial assets), including us.
Norms for excessive interest rates
In addition, the RBI has introduced vide a circular bearing reference number RBI/ 2006-07/ 414 dated
May 24, 2007 whereby RBI has requested all NBFCs to put in place appropriate internal principles and
procedures in determining interest rates and processing and other charges. In addition to the aforesaid
instruction, the RBI has issued a Master Circular on Fair Practices Code dated July 01, 2015 for
regulating the rates of interest charged by the NBFCs. These circulars stipulate that the board of each
NBFC is required to adopt an interest rate model taking into account the various relevant factors
including cost of funds, margin and risk premium. The rate of interest and the approach for gradation
of risk and the rationale for charging different rates of interest for different categories of borrowers are
required to be disclosed to the borrowers in the application form and expressly communicated in the
sanction letter. Further, this is also required to be made available on the NBFCs website or published
in newspapers and is required to be updated in the event of any change therein. Further, the rate of
interest would have to be an annualized rate so that the borrower is aware of the exact rates that would
be charged to the account.
Supervisory Framework
In order to ensure adherence to the regulatory framework by systemically important ND-NBFCs, the
RBI has directed such NBFCs to put in place a system for submission of an annual statement of capital
funds, and risk asset ratio etc. as at the end of March every year, in a prescribed format. This return is
to be submitted electronically within a period of three months from the close of every financial year.
Further, a NBFC is required to submit a certificate from its statutory auditor that it is engaged in the
business of non-banking financial institution requiring to hold a certificate of registration under the RBI
Act. This certificate is required to be submitted within one month of the date of finalization of the
balance sheet and in any other case not later than December 30 of that particular year. Further, in
addition to the auditor’s report under Section 143 of the Companies Act, 2013, the auditors are also
required to make a separate report to the Board of Directors on certain matters, including correctness of
the capital adequacy ratio as disclosed in the return NBS-7 to be filed with the RBI and its compliance
with the minimum CRAR, as may be prescribed by the RBI. Where the statement regarding any of the
items referred relating to the above, is unfavorable or qualified, or in the opinion of the auditor the
company has not complied with the regulations issued by RBI , it shall be the obligation of the auditor
to make a report containing the details of such unfavourable or qualified statements and/or about the
non-compliance, as the case may be, in respect of the company to the concerned Regional Office of the
Department of Non-Banking Supervision of the Bank under whose jurisdiction the registered office of
the company is located.
Asset Liability Management
The RBI has prescribed the Guidelines for Asset Liability Management (“ALM”) System in relation to
NBFCs (“ALM Guidelines”) that are applicable to all NBFCs through a Master Circular on
Miscellaneous Instructions to All Non-Banking Financial Companies dated July 1, 2010. As per this
Master Circular, the NBFCs (engaged in and classified as equipment leasing, hire purchase finance,
loan, investment and residuary non-banking companies) meeting certain criteria, including, an asset
base of ` 1,000.00 million, irrespective of whether they are accepting / holding public deposits or not,
are required to put in place an ALM system. The ALM system rests on the functioning of ALM
information systems within the NBFC, ALM organization including an Asset Liability Committee
(“ALCO”) and ALM support groups, and the ALM process including liquidity risk management,
management of marketing risk, funding and capital planning, profit planning and growth projection,
and forecasting/ preparation of contingency plans. It has been provided that the management committee
of the board of directors or any other specific committee constituted by the board of directors should
oversee the implementation of the system and review its functioning periodically. The ALM Guidelines
mainly address liquidity and interest rate risks. In case of structural liquidity, the negative gap (i.e.
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where outflows exceed inflows) in the 1 to 30/ 31 days time-bucket should not exceed the prudential
limit of 15% of outflows of each time-bucket and the cumulative gap of up to one year should not
exceed 15% of the cumulative cash outflows of up to one year. In case these limits are exceeded, the
measures proposed for bringing the gaps within the limit should be shown by a footnote in the relevant
statement.
Anti Money Laundering
The RBI has issued a Master Circular dated July 01, 2013 to ensure that a proper policy frame work for
the Prevention of Money Laundering Act, 2002 (“PMLA”) is put into place. The PMLA seeks to
prevent money laundering and provides for confiscation of property derived from, or involved in
money laundering and for other matters connected therewith or incidental thereto. It extends to all
banking companies, financial institutions, including NBFCs and intermediaries. Pursuant to the
provisions of PMLA and the RBI guidelines, all NBFCs are advised to appoint a principal officer for
internal reporting of suspicious transactions and cash transactions and to maintain a system of proper
record (i) for all cash transactions of value of more than ` 1 million; (ii) all series of cash transactions
integrally connected to each other which have been valued below ` 1 million where such series of
transactions have taken place within one month and the aggregate value of such transaction exceeds
` 1 million. Further, all NBFCs are required to take appropriate steps to evolve a system for proper
maintenance and preservation of account information in a manner that allows data to be retrieved easily
and quickly whenever required or when requested by the competent authorities. Further, NBFCs are
also required to maintain for at least ten years from the date of transaction between the NBFCs and the
client, all necessary records of transactions, both domestic or international, which will permit
reconstruction of individual transactions (including the amounts and types of currency involved if any)
so as to provide, if necessary, evidence for prosecution of persons involved in criminal activity.
Additionally, NBFCs should ensure that records pertaining to the identification of their customers and
their address are obtained while opening the account and during the course of business relationship, and
that the same are properly preserved for at least ten years after the business relationship is ended. The
identification records and transaction data is to be made available to the competent authorities upon
request.
Lending against security of Gold Jewellery
The RBI has issued a circular dated March 21, 2012 stipulating that all NBFCs shall maintain a loan to
value ratio not exceeding 60% for loans granted against the collateral of gold jewelry. NBFCs
primarily engaged in lending against gold jewelry (such loans comprising 50% or more of their
financial assets) shall maintain a minimum Tier l capital of 12% by April 01, 2014. The RBI vide its
circular RBI/2013-14/260 DNBS.CC.PD.No.356/03.10.01/2013-14 dated September 16, 2013 issued
guidelines with regard to the following:
(i) Appropriate Infrastructure for storage of gold ornaments: A minimum level of physical
infrastructure and facilities is available in each of the branches engaged in financing against
gold jewellery including a safe deposit vault and appropriate security measures for operating
the vault to ensure safety of the gold and borrower convenience. Existing NBFCs should
review the arrangements in place at their branches and ensure that necessary infrastructure is
put in place at the earliest. No new branches should be opened without suitable storage
arrangements having been made thereat. No business of grant of loans against the security of
gold can be transacted at places where there are no proper facilities for storage/security.
(ii) Prior approval of RBI for opening branches in excess of 1,000: It is henceforth mandatory for
NBFC to obtain prior approval of the Reserve Bank to open branches exceeding 1,000.
However NBFCs which already have more than 1,000 branches may approach the Bank for
prior approval for any further branch expansion. Besides, no new branches will be allowed to
be opened without the facilities for storage of gold jewellery and minimum security facilities
for the pledged gold jewellery.
(iii) Standardization of value of gold in arriving at the loan to value ratio: For arriving at the value
of gold jewellery accepted as collateral, it will have to be valued at the average of the closing
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price of 22 carat gold for the preceding 30 days as quoted by The Bombay Bullion Association
Limited.
(iv) Verification of the Ownership of Gold: NBFCs should have Board approved policies in place
to satisfy ownership of the gold jewellery and adequate steps be taken to ensure that the KYC
guidelines stipulated by the Reserve Bank are followed and due diligence of the customer
undertaken. Where the gold jewellery pledged by a borrower at any one time or cumulatively
on loan outstanding is more than 20 grams, NBFCs must keep record of the verification of the
ownership of the jewellery. The method of establishing ownership should be laid down as a
Board approved policy.
(v) Auction Process and Procedures: The following additional stipulations are made with respect
to auctioning of pledged gold jewellery:
a. The auction should be conducted in the same town or taluka in which the branch that
has extended the loan is located.
b. While auctioning the gold the NBFC should declare a reserve price for the pledged
ornaments. The reserve price for the pledged ornaments should not be less than 85% of
the previous 30 day average closing price of 22 carat gold as declared by The Bombay
Bullion Association Limited and value of the jewellery of lower purity in terms of
carats should be proportionately reduced.
c. It will be mandatory on the part of the NBFCs to provide full details of the value
fetched in the auction and the outstanding dues adjusted and any amount over and
above the loan outstanding should be payable to the borrower.
d. NBFCs must disclose in their annual reports the details of the auctions conducted
during the financial year including the number of loan accounts, outstanding amounts,
value fetched and whether any of its sister concerns participated in the auction.
(vi) Other Instructions:
a. NBFCs financing against the collateral of gold must insist on a copy of the PAN Card
of the borrower for all transaction above ` 500,000.
b. High value loans of ` 100,000 and above must only be disbursed by cheque.
c. Documentation across all branches must be standardized.
d. NBFCs shall not issue misleading advertisements like claiming the availability of loans
in a matter of 2-3 minutes.
Thereafter, the RBI has by circular bearing number RBI/2013-14/435

DNBS.CC.PD.No.365/03.10.01/2013-14 dated January 08, 2014 raised the loan to value ratio to 75%
for loans against the collateral of gold jewelry. Further, the circular also provides for certain
clarifications as regards standardisation of the value of gold and verification of the ownership of gold.
Reserve Bank Of India notification no. RBI/2016-17/245 DNBR (PD) CC.No.086/03.10.001/2016-17

dtd. March 09, 2017
The Reserve Bank of India has issued above notification titled “Disbursal of loan amount in cash” as
below:
“Reference is invited to instructions contained in para 37(iii)(b) of Non-Banking Financial Company –

Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 and Non-
Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit
taking Company (Reserve Bank) Directions, 2016 which states that high value loans against gold of ₹1
lakh and above must only be disbursed by cheque.
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2. On review, and in line with the rules issued under Section 269SS and 269T of the Income Tax Act,
1961, the requirements under the Income Tax Act, 1961, as amended from time to time, would be
applicable to all NBFCs with immediate effect. Currently, the relevant threshold under the Income Tax
Act, 1961 is Rupees Twenty thousand.
3. Accordingly, para 37(iii)(b) of the above Master Directions stands deleted and the above provision
stands incorporated at para 104 and 117, respectively, in the Master Directions referred above.”
Amended respective paragraph reads as follows:
“104. Disbursal of loan amount in cash
Every NBFC shall ensure compliance with the requirements under sections 269SS and 269T of the
Income Tax Act, 1961, as amended from time to time.”
“117. Disbursal of loan amount in cash
Every NBFC shall ensure compliance with the requirements under sections 269SS and 269T of the
Income Tax Act, 1961, as amended from time to time.”
II. Power generation regulations
The Ministry of New and Renewable Energy (“MNRE”) regulations
The MNRE is the Central Government ministry with the mandate for formulating schemes and policies
for the research, development, commercialisation and deployment of renewable energy systems/devices
for various applications in rural, urban, industrial and commercial sector. The MNRE has issued a
number of guidelines and schemes on power generation through renewable sources, including a
‘Special Programme on Small Wind Energy and Hybrid Systems'. In order to ensure quality of wind
farm projects and equipments, the MNRE introduced the “Revised Guidelines for wind power projects”
(“MNRE Guidelines”) on June 13, 1996 for the benefit of state electricity boards, manufacturers,
developers and end-users of energy to ensure proper and orderly growth of the wind power sector. The
MNRE Guidelines are periodically updated and issued. The MNRE Guidelines among other things
makes provision for proper planning, siting, selection of quality equipment, implementation and
performance monitoring of wind power projects. The MNRE Guidelines lay down guidelines for the
planned development and implementation of wind power projects.
The MNRE Guidelines set out the conditions that are required to be met for establishing wind farms
and manufacturing and supplying equipment for wind power projects. These conditions include
submission of detailed project reports, approval of sites for wind power installations, type certification
by independent testing and certification agencies (either the Centre of Wind Energy Technology,
Chennai or the International certification agency).Further, all installations are to be carried out only on
sites that are approved for wind power projects by the MNRE. The MNRE Guidelines stipulate that a
no objection certificate will be issued only after analysing the wind data to ensure adequate availability
of wind at the specific site. Also, no approval will be granted for a wind power project which involves
the installation of used wind turbines imported into India.
The Indian Renewable Energy Development Agency Limited (“IREDA”)
The IREDA is a public limited government company under the administrative control of the MNRE
and in engaged in encouraging the production of energy through renewable sources. In this respect, the
IREDA offers financial support to specific projects and schemes for generating electricity, and
promotes the energy conservation through by improving the efficiency of systems, processes and
resources engaged in energy production and distribution. In particular, the IREDA offers scheme and
incentives for the promotion of wind based energy production.
Electricity Act, 2003
Under the Electricity Act, 2003, which repealed all the earlier enactments pertaining to this sector, the
activity of generation of wind power does not require any license or permission. Persons engaged in the
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generation of electricity from wind power are required to register the project being undertaken with
State Nodal Agency and obtain permission for inter-grid connectivity from the utility. The government
has also announced National Electricity Policy in 2005 to guide the development of the electricity
sector in India.
The electricity generated from the wind power project can be used for captive consumption, sale to
utility or for transaction under open access as per the prevailing state policy as well as regulatory
orders, if any. Various states have announced administrative policies relating to wheeling, banking and
buy-back of power.
Further, the Electricity Act, 2003 also mandates that all regulatory commissions should procure certain
percentage of power generation from renewable energy sources by all distribution companies. As far as
the tariff and wheeling charges are concerned, it is stipulated that they should be decided by respective
regulatory commissions as provided under the Electricity Regulatory Commissions Act, 1998.
The regulations governing operation of wind electricity generators in Tamil Nadu are applicable to our
Company. Under the policy formulated by the Government of Tamil Nadu, our Company is required to
sell all the power generated to the Tamil Nadu Electricity Board, as a fixed price of ` 2.70 per unit of
power. Further, a 5% wheeling and transmission charge is applicable, should the Company opt to take
the assistance of the Tamil Nadu Electricity Board for wheeling. The policy permits the Company to
bank all the power generated by the wind-mills. However, a 5% banking charge is applicable on all
power banked by the Company on a bi-monthly basis.
Tamilnadu Electricity Regulatory Commission vide its Comprehensive Tariff order on wind energy on
March 31, 2016 increased tariff to Rs.4.16 per unit without Accelerated Depreciation(A.D) benefit.
The accelerated depreciation component of the tariff is Rs.0.46 per unit.
Electricity Regulatory Commissions
Electricity Act retains the two-level regulatory system for the power sector. At the central level, the
Central Electricity Regulatory Commission (“CERC”) is responsible for regulating tariff of generating
stations owned by the central government, or those involved ingenerating or supplying in more than
one states, and regulating inter-state transmission of electricity. The State Electricity Regulatory
Commissions (“SERCs”) on the other hand regulate intra-state transmission and supply of electricity
within the jurisdiction of each state. CERC and the SERCs are guided by the National Electricity
Policy, 2005, Tariff Policy, 2006 and the National Electricity Plan while discharging their functions
under Electricity Act. The Electricity Regulatory Commissions are also guided by any direction given
by the central government for CERC or the state government for the SERC pertaining to any policy
involving public interest. The decision of the government is final and non-challengeable with respect to
the question that whether directions pertain to policy involving public interest or not. The commissions
have been entrusted with a variety of functions including determining tariff, granting licensees, settling
disputes between the generating companies and the licensees. The Electricity Regulatory Commissions
are a quasi-judicial authority with powers of a civil court and an appeal against the orders of the
Commissions lie to the Appellate Tribunal.
The CERC has notified the CERC (Terms and Conditions for Recognition and Issuance of Renewable
Energy Certificate for Renewable Energy Generation) Regulations on January, 14, 2010 to the
promotion of power generation through renewable sources of energy. In this respect, these regulations
contemplate two categories of certificates, solar and non-solar certificate. The CERC has designated the
National Load Dispatch Center to issue registration certificates and undertakes to provide for the floor
price (minimum) and forbearance price (maximum) for non-solar certificates.
Kyoto Protocol and Carbon Credits
The Kyoto Protocol is a protocol to the International Framework Convention on Climate Change with
the objective of reducing greenhouse gases (“GHG”) that cause climate change. The Kyoto Protocol
was entered into force on February 16, 2005. India ratified the Kyoto Protocol on August 22, 2006.The
Kyoto Protocol defines legally binding targets and timetables for reducing the GHG emissions of
industrialised countries that ratified the Kyoto Protocol. Governments have been separated into
developed nations (who have accepted GHG emission reduction obligations) and developing nations
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(who have no GHG emission reduction obligations). The protocol includes “flexible mechanisms”
which allow developed nations to meet their GHG emission limitation by purchasing GHG emission
reductions from elsewhere. These can be bought either from financial exchanges, from projects which
reduce emissions in developing nations under the CDM, the Joint Implementation scheme or from
developed nations with excess allowances. Typical emission certificates are:
 Certified Emission Reduction (CER);

 Emission Reduction Unit (ERU); and
 Voluntary or Verified Emission Reductions (VER).
CERs and ERUs are certificates generated from emission reduction projects, under the CDM for
projects implemented in developing countries, and under Joint Implementation (“JI”) for projects
implemented in developed countries, respectively. These mechanisms are introduced within the Kyoto
Protocol. For projects which cannot be implemented as CDM or JI, but still fulfil the required
standards, VERs can be generated. VERs, however, cannot be used for compliance under the Kyoto
Protocol.
III. Foreign Investment Regulations
Foreign direct investment (including foreign institutional investment, investments by non-resident

Indians, persons of Indian origin and overseas corporate bodies) (“FDI”) in an Indian company is
governed by the provisions of the Foreign Exchange Management Act, 1999 (“FEMA”) read with the
Consolidated Foreign Direct Investment Policy effective from May 12, 2015 (“FDI Policy”) issued by
the Department of Industrial Promotion and Policy, Ministry of Commerce, Government of India
(“DIPP”).FDI is permitted (except in the prohibited sectors) in Indian companies either through the
automatic route or the approval route, depending upon the sector in which FDI is sought to be made.
Under the automatic route, no prior Government approval is required for the issue of securities by
Indian companies/ acquisition of securities of Indian companies, subject to the sectoral caps and other
prescribed conditions. Investors are required to file the required documentation with the RBI within 30
days of such issue/ acquisition of securities. However, if the foreign investor has any previous joint
venture/ tie-up or a technology transfer/ trademark agreement in the “same field” in India, prior
approval from the FIPB is required even if that activity falls under the automatic route, except as
otherwise provided.
Under the approval route, prior approval from the FIPB or RBI is required. FDI for the items/activities
that cannot be brought in under the automatic route may be brought in through the approval route.
Approvals are accorded on the recommendation of the FIPB, which is chaired by the Secretary, DIPP,
with the Union Finance Secretary, Commerce Secretary and other key Secretaries of the Government of
India as its members.
As per the sector specific guidelines of the Government of India, the following are the relevant norms
applicable for FDI in NBFCs:
(a) FDI investments upto 100% of the paid-up share capital of the NBFC is allowed under the
automatic route in the following NBFC activities:
(i) Merchant banking;

(ii) Underwriting;
(iii) Portfolio Management Services;
(iv) Investment Advisory Services;
(v) Financial Consultancy;
(vi) Stock Broking;
(vii) Asset Management;
(viii) Venture Capital;
(ix) Custodial Services;
(x) Factoring;
(xi) Credit rating Agencies;
(xii) Leasing and Finance;
(xiii) Housing Finance;
(xiv) Forex Broking;
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(xv) Credit card business;
(xvi) Money changing Business;
(xvii) Micro Credit; and
(xviii) Rural Credit.
(b) Minimum Capitalisation Norms for fund based NBFCs:
(i) For FDI up to 51% - US$ 0.5 million to be brought upfront.
(ii) For FDI above 51% and up to 75% - US $ 5 million to be brought upfront.
(iii) For FDI above 75% and up to 100% - US $ 50 million out of which US $7.5 million to
be brought upfront and the balance in 24 months
(iv) NBFCs (i) having foreign investment more than 75% and up to 100%, and (ii) with a
minimum capitalisation of US$ 50.00 million, can set up step down subsidiaries for
specific NBFC activities, without any restriction on the number of operating
subsidiaries and without bringing in additional capital. The minimum capitalization
condition as mandated by the FDI Policy at paragraph 3.10.4.1, therefore, shall not
apply to downstream subsidiaries.
(v) Joint venture operating NBFCs that have 75% or less than 75% foreign investment can
also set up subsidiaries for undertaking other NBFC activities, subject to the
subsidiaries also complying with the applicable minimum capitalisation norm
mentioned in (b)(i), (ii) and (iii) above and (vi) below.
(vi) Non- Fund based activities: US $0.5 million to be brought upfront for all permitted non-
fund based NBFCs irrespective of the level of foreign investment subject to the
following condition. It would not be permissible for such a company to set up any
subsidiary for any other activity, nor it can participate in any equity of an NBFC
holding/operating company.
Following activities would be classified as Non-Fund Based activities”

(a) Investment Advisory Services
(b) Financial Consultancy
(c) Forex Broking
(d) Money Changing Business
(e) Credit Rating Agencies
(vii) These norms will be subject to compliance with the guidelines of RBI.
(c) Where FDI is allowed on an automatic basis without FIPB approval, the RBI would continue
to be the primary agency for the purposes of monitoring and regulating foreign investment. In
cases where FIPB approval is obtained, no approval of the RBI is required except with respect
to fixing the issue price, although a declaration in the prescribed form, detailing the foreign
investment, must be filed with the RBI once the foreign investment is made in the Indian
company. The foregoing description applies only to an issuance of shares by, and not to a
transfer of shares of, Indian companies. Every Indian company issuing shares or convertible
debentures in accordance with the RBI regulations is required to submit a report to the RBI
within 30 days of receipt of the consideration and another report within 30 days from the date
of issue of the shares to the non-resident purchaser.
FDI is allowed under the automatic route upto 100 % in respect of projects relating to electricity
generation, transmission and distribution, other than atomic reactor power plants. There is no limit on
the project cost and the quantum of foreign direct investment.
New Consolidated Foreign Direct Investment Policy, 2016 which came in effect from June 7, 2016
continued relevant norms specified for 18 NBFC activities in earlier FDI Policy.
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New Consolidated Foreign Direct Investment Policy 2016 which came in effect from June 7, 2016
further provided for FDI under automatic route up to 100% in White Labels ATM operations
undertaken by Non-Banking entities subject to following conditions:
(i) Any non-bank entity intending to set up WLAs should have a minimum net worth of Rs. 100 crore
as per the latest financial year’s audited balance sheet, which is to be maintained at all times.
(ii) In case the entity is also engaged in any other 18 NBFC activities, then the foreign investment in the
company setting up WLA, shall also have to comply with the minimum capitalization norms for foreign
investments in NBFC activities.
(iii) FDI in the WLAO will be subject to the specific criteria and guidelines issued by RBI vide Circular
No. DPSS.CO.PD.No. 2298/02.10.002/2011-2012, as amended from time to time.
Reserve Bank of India on September 09, 2016 vide Foreign Exchange Management (Transfer or Issue
of Security by a Person Resident outside India) (Thirteenth Amendment) Regulations, 2016 made
amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident
outside India) Regulations, 2000, (Notification No. FEMA 20/2000-RB dated 3rd May 2000), in
Schedule 1, in Annex B, Paragraph F.8 by providing FDI under automatic route up to 100% in
Financial Services activities regulated by financial sector regulators, viz., RBI, SEBI, IRDA, PFRDA,
NHB or any other financial sector regulator as may be notified by the Government of India subject to
other conditions introduced vide paragraph F.8.1 which are as follows:
i. Foreign investment in 'Other Financial Services' activities shall be subject to conditionalities,

including minimum capitalization norms, as specified by the concerned Regulator/Government
Agency.
ii. 'Other Financial Services' activities need to be regulated by one of the Financial Sector Regulators.
In all such financial services activity which are not regulated by any Financial Sector Regulator or
where only part of the financial services activity is regulated or where there is doubt regarding the
regulatory oversight, foreign investment up to 100% will be allowed under Government approval route
subject to conditions including minimum capitalization requirement, as may be decided by the
Government.
iii. Any activity which is specifically regulated by an Act, the foreign investment limits will be
restricted to those levels/limit that may be specified in that Act, if so mentioned.
iv. Downstream investments by any of these entities engaged in "Other Financial Services" will be
subject to the extant sectoral regulations and provisions of Foreign Exchange Management (Transfer or
Issue of Security by a Person Resident outside India) Regulations, 2000, as amended from time to
time.”
The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry,
Government of India (GOI) released the consolidated foreign direct investment (FDI) policy circular of
2017 (New FDI Policy). The New FDI Policy is effective immediately from the date of its publication,
i.e., August 28, 2017. The New FDI Policy continues the policy with regard to FDI in NBFCs.
IV. Labour Regulations
Shops and establishments regulations
The Company is governed by the shops and establishments laws as applicable in the various states
where it has branches. These laws regulate the conditions of work and employment in shops and
commercial establishments and generally prescribe obligations in respect of registration, opening and
closing hours, daily and weekly working hours, holidays, leave, health and safety measures and wages
for overtime work, among other things.
Provident fund contributions
The Company is governed by the provisions of the Employees’ Provident Funds Act, 1952 and is
accordingly required to make periodic contributions to the Employees’ Provident Fund Scheme and the
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Employees’ Pension Scheme as applicable. The Company is also required to make contributions under
the Employees’ State Insurance Act, 1948.
Miscellaneous
The Company is also required to comply with the Minimum Wages Act, 1948, the Payment of Bonus
Act, 1965, the Payment of Wages Act, 1936 and the Payment of Gratuity Act, 1972.
V. Intellectual property regulations
Trade Marks Act
The Trade Marks Act, 1999 (the “Trademark Act”) governs the statutory protection of trademarks in
India. In India, trademarks enjoy protection under both statutory and common law. Indian trademarks
law permits the registration of trademarks for goods and services. Certification trademarks and
collective marks are also registerable under the Trademark Act.
An application for trademark registration may be made by any person claiming to be the proprietor of a
trademark and can be made on the basis of either current use or intention to use a trademark in the
future. The registration of certain types of trade marks are absolutely prohibited, including trademarks
that are not distinctive and which indicate the kind or quality of the goods.
Applications for a trademark registration may be made for in one or more international classes. Once
granted, trademark registration is valid for ten years unless cancelled. If not renewed after ten years, the
mark lapses and the registration for such mark has to be obtained afresh.
While both registered and unregistered trademarks are protected under Indian law, the registration of
trademarks offers significant advantages to the registered owner, particularly with respect to proving
infringement. Registered trademarks may be protected by means of an action for infringement, whereas
unregistered trademarks may only be protected by means of the common law remedy of passing off. In
case of the latter, the plaintiff must, prior to proving passing off, first prove that he is the owner of the
trademark concerned. In contrast, the owner of a registered trademark is prima facie regarded as the
owner of the mark by virtue of the registration obtained.
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SUMMARY OF KEY PROVISIONS OF ARTICLES OF ASSOCIATION
The Articles of Association of the Company are subject to provisions of Companies Act, 1956 and Companies
Act, 2013, as applicable.
As per Section 6 of Companies Act, 2013, the Companies Act, 2013 has an overriding effect on the provisions
of the Articles of Association of the Company. Section 6 of the Companies Act, 2013 reads as under:
“Save as otherwise expressly provided in this Act –
(a) the provisions of this Act shall have effect notwithstanding anything to the contrary contained in the
memorandum or articles of a company, or in any agreement executed by it, or in any resolution passed by the
company in general meeting or by its Board of Directors, whether the same be registered, executed or passed, as
the case may be, before or after the commencement of this Act; and
(b) any provision contained in the memorandum, articles, agreement or resolution shall, to the extent to which it
is repugnant to the provisions of this Act, become or be void, as the case may be.”
The main provisions of the Articles of Association of our Company relating to voting rights, dividend, lien,
forfeiture, restrictions on transfer and transmission of Equity Shares / debentures and / or on their consolidation /
splitting, as applicable on and from the date of this Draft Shelf Prospectus subsequent to the determination of the
Issue Price, are detailed below.
Subject as hereinafter provided, the Regulations contained in Table “A” in the First Schedule to the Companies
Act, 1956 shall apply to this Company. All references herein contained to any specified Regulations of Table
“A”, shall be inclusive of the first and the last Regulations referred to and in case of any conflict between the
provisions herein contained and the incorporated Regulation of Table “A”, the provisions herein contained shall
prevail.
1. In these present regulations, the following words and expressions shall have the following meanings,
unless excluded by the subject or context;
(a) “Annual General Meeting” means the annual general meeting of the Company convened and
conducted in accordance with the Act.
(b) “Articles of Association” or “Articles” means these Articles of Association of the Company
as originally framed or as altered from time to time by Special Resolution.
(c) “Auditors” means and includes those persons appointed as such for the time being by the
Company.
(d) “Beneficial Owner” means a person whose name is recorded as such with a depository.
(e) “Board” or “Board of Directors” means the Directors of the Company collectively referred
to in the Act.
(f) “Bye-Laws” means Bye-laws made by a Depository under Section 26 of the Depositories Act,
1996.
(g) “Capital” means the share capital, for the time being raised or authorised to be raised for the
purposes of the Company.
(h) The term “Control” in relation to an entity, shall mean the legal or beneficial ownership
directly or indirectly of more than 50% of the voting securities of such entity or controlling the
majority of the composition of the Board of Directors or power to direct the management or
policies of such entity by contract or otherwise. The term “controlling” and “controlled” shall
be construed accordingly.
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(i) “Corporation” includes a company, whether incorporated in India or abroad or any other
form of organization established/incorporated as a separate legal entity under any charter of
Government, whether State or Centre or with a combination of both.
(j) “Debenture holders” means the duly registered holders from time to time of the debentures of
the Company and shall include in case of debentures held by a Depository, the beneficial
owners whose names are recorded as such with the Depository.
(k) “Debenture” includes debenture-stock, bonds and other securities of the Company, whether
constituting a charge on the assets of the Company or not.
(l) “Depositories Act” means the Depositories Act, 1996, including any statutory modifications
or re-enactment for the time being in force.
(m) “Depository” means a Company formed and registered under the Act and which has been
granted a Certificate of Registration as a Depository under the Securities and Exchange Board
of India Act, 1992.
(n) “Directors” means the Directors, for the time being of the Company and includes Alternate
Directors.
(o) “Dividend” includes interim dividend unless otherwise stated.
(p) “Executor” or “Administrator” means a person who has obtained probate or Letters of
Administration, as the case may be, from some competent Court having effect in India and
shall include the executor or Administrator or the holder of a certificate, appointed or granted
by such competent court and authorised to negotiate or transfer the shares of the deceased
member.
(q) “Extraordinary General Meeting” means an extraordinary general meeting of the Company
convened and conducted in accordance with the Act.
(r) “Financial Year” shall have the meaning assigned thereto by Section 2 (17) of the Companies
Act, 1956.
(s) “Managing Director” shall have the meaning assigned thereto in the Act.
(t) “Member” means the duly registered holder, from time to time, of the shares of the Company
and includes the subscribers to the Memorandum of Association and in case of shares held by
a Depository, the Beneficial Owners whose names are recorded as such with the Depository.
(u) “Month” means the English Calendar month.
(v) “Office” means the Registered Office, for the time being of the Company.
(w) “Officer” shall have the meaning assigned thereto by the Act.
(x) “Ordinary Resolution” shall have the meaning assigned thereto by the Act.
(y) “Paid up” includes “credited as paid up”.
(z) “Participant” means a person registered as such under Section 12 (1A) of the Securities and
Exchange Board of India Act, 1992.
(aa) “Person” shall include any Association, Corporation, Company as well as individuals.
(bb) “Proxy” includes Attorney duly constituted under a Power Attorney.
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(cc) “Record” includes the records maintained in the form of books or stored in a computer or in
such other form as may be determined by the Regulations issued by the Securities and
Exchange Board of India in relation to the Depositories Act, 1996.
(dd) “Register” means the Register of Members to be kept pursuant to the said Act.
(ee) “Registered Owner” means a depository whose name is entered as such in the records of the
Company.
(ff) “Registrar” means the Registrar of Companies, Kerala and Lakshadweep at Ernakulam.
(gg) “Seal” means Common seal, for the time being of the Company.
(hh) “SEBI” means the Securities and Exchange Board of India.
(ii) “Secretary” means a Company Secretary within the meaning of clause (c) of sub-Section (1)
of Section 2 of the Company Secretaries Act, 1980 and includes a person or persons appointed
by the board to perform any of the duties of a Secretary subject to the provisions of the Act.
(jj) “Section” means Section of the Companies Act, 1956.
(kk) “Security” means such security as may be specified by the Securities and Exchange Board of
India from time to time.
(ll) “Share Warrant” means share warrant issued pursuant to Section 114 of the Act.
(mm) “Shares” means the Equity shares of the Company unless otherwise mentioned.
(nn) “Special Resolution” shall have the meaning assigned thereto by Section 189 of the
Companies, Act 1956.
(oo) “Subordinated Debt Instruments” or “Subordinated Debts” means an instrument, which is

fully paid up, is unsecured, is subordinated to the claims of other creditors, is free from
restrictive clauses and is not redeemable at the instance of the holder or without the consent of
the supervisory authority of the Company.
(pp) “The Act” means the Companies Act, 1956 and subsequent amendments thereto or any
statutory modification or re-enactment thereof, for the time being in force.
(qq) “The Company” or “This Company” means Muthoot Finance Limited.
(rr) “these Presents” or “Regulations” means these Articles of Association as originally framed
or altered from time to time and include the Memorandum where the context so requires.
(ss) “Transfer” means (in either the noun or the verb form and including all conjugations thereof
with their correlative meanings) with respect to the Shares, the sale, assignment, transfer or
other disposition (whether for or without consideration, whether directly or indirectly) of any
Shares or of any interest therein or the creation of any third party interest in or over the Shares,
but excluding any renunciation of any right to subscribe for any shares offered pursuant to a
rights issue to existing shareholders in proportion to their existing shareholding in the
Company.
(tt) “Writing” and “Written” means and includes words, hand written, printed, typewritten,
lithographed, represented or reproduced in any mode in a visible form.
(uu) Words and expressions used and not defined in the Act but defined in the Depositories Act,
1996 shall have the same meaning respectively assigned to them in that Act.
(vv) Words imparting persons include Corporations.
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(ww) Words imparting the singular number include the plural and vice versa.
CAPITAL
(1) Authorised Share capital
The authorised share capital of the Company shall be such amount as is given in Clause V of the
Memorandum of Association, as amended from time to time.
(2) Shares at the disposal of the Directors
Subject to the provisions of Section 81 of the Act and these Articles, the shares in the capital of the
Company for the time being shall be under the control of the Board of Directors who may issue, allot or
otherwise dispose of the same or any of them to such persons, in such proportion and on such terms and
conditions and either at a premium or at par or (subject to the compliance with the provision of Section
79 of the Act) at a discount and at such time as they may from time to time think fit and with the
sanction of the Company in the General Meeting to give to any person or persons the option or right to
call for any shares either at par or premium during such time and for such consideration as the Directors
think fit, and may issue and allot shares in the capital of the Company on payment in full or part of any
property sold and transferred or for any services rendered to the Company in the conduct of its business
and any shares which may so be allotted may be issued as fully paid up shares, and if so issued, shall be
deemed to be fully paid shares. Provided that option or right to call of shares shall not be given to any
person or persons without the sanction of the Company in the General Meeting.
(3) Restrictions on Allotment
(a) The Directors shall in making the allotments duly observe the provision of the Act;
(b) The amount payable on application on each share shall not be less than 5% of the nominal
value of the share; and
(c) Nothing therein contained shall prevent the Directors from issuing fully paid up shares either
on payment of the entire nominal value thereof in cash or in satisfaction of any outstanding
debt or obligation of the Company.
(4) Increase of capital
The Company at its General Meeting may, from time to time, by an Ordinary Resolution increase the
capital by creation of new shares, such increase to be of such aggregate amount and to be divided into
shares of such respective amounts as the resolution shall prescribe. The new shares shall be issued on
such terms and conditions and with such rights and privileges annexed thereto as the resolution shall
prescribe, and in particular, such shares may be issued with a preferential or qualified right to
dividends, and in the distribution of assets of the Company and with a right of voting at General
Meeting of the Company in conformity with Section 87 of the Companies Act 1956. Whenever the
capital of the Company has been increased under the provisions of the Articles, the Directors shall
comply with the provisions of Section 97 of the Act.
(5) Reduction of Share capital
The Company may, subject to the provisions of Sections 78, 80, 100 to 105 (both inclusive) and other
applicable provisions of the Act from time to time, by Special Resolution reduce its capital and any
Capital Redemption Reserve Account or Share Premium Account in any manner for the time being
authorised by law, and in particular, the capital may be paid off on the footing that it may be called up
again or otherwise.
(6) Sub-division and consolidation of Shares
Subject to the provisions of Section 94 of the Act, the Company in General Meeting, may by an
ordinary resolution from time to time:
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(a) Divide, sub-divide or consolidate its shares, or any of them, and the resolution whereby any
share is sub-divided, may determine that as between the holders of the shares resulting from
such sub-division one or more of such shares have some preference of special advantage as
regards dividend capital or otherwise as compared with the others
(b) Subject as aforesaid, cancel shares which at the date of such general meeting have not been
taken or agreed to be taken by any person and diminish the amount of its share capital by the
amount of the shares so cancelled.
(7) Power to issue preference shares
Subject to the provisions of Section 80 of the Act, the Company shall have the powers to issue
preference shares which are liable to be redeemed and the resolution authorising such issue shall
prescribe the manner, terms and conditions of such redemption.
(8) Further Issue of shares
(a) Where at any time after the expiry of two years from the formation of the Company or at any
time after the expiry of one year from the allotment of shares in the Company made for the
first time after its formation, whichever is earlier, it is proposed to increase the subscribed
capital of the Company by allotment of further shares then:
(i) Such further shares shall be offered to the persons who at the date of the offer, are
holders of the equity shares of the Company, in proportion, as nearly as
circumstances admit, to the capital paid up on those share at that date.
(ii) The offer aforesaid shall be made by a notice specifying the number of shares offered
and limiting a time not being less than thirty days from the date of offer within which
the offer, if not accepted, will be deemed to have been declined.
(iii) The offer aforesaid shall be deemed to include a right exercisable by the person
concerned to renounce the shares offered to him or any of them in favour of any other
person and the notice referred to in sub clause (b) hereof shall contain a statement of
this right.
(iv) After the expiry of the time specified in the aforesaid notice or on receipt of earlier
intimation from the person to whom such notice is given that he declines to accept the
shares offered, the Board may dispose of them in such manner as they may think,
most beneficial to the Company.
(b) Notwithstanding anything contained in sub-clause (1) the further shares aforesaid may be
offered to any persons {whether or not those persons include the persons referred to in clause
(a) of sub- clause (1) hereof) in any manner whatsoever.
(i) If a special resolution to that effect is passed by the Company in General Meeting, or
(ii) Where no such special resolution is passed, if the votes cast (whether on a show of hands
or on a poll as the case may be) in favour of the proposal contained in the resolution
moved in the general meeting (including the casting vote, if any, of the Chairman.) by
the members who, being entitled to do so, vote in person, or where proxies are
allowed by proxy, exceed the votes, if any, cast against the proposal by members so
entitled and voting and the Central Government is satisfied, on an application made
by the Board of Directors in this behalf that the proposal is most beneficial to the
Company.
(c) Nothing in sub-clause (iii) of Article (13)(a) hereof shall be deemed:
(i) To extend the time within which the offer should be accepted; or
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(ii) To authorise any person to exercise the right of renunciation for a second time on the
ground that the person in whose favour the renunciation was first made has declined to
take the shares comprised in the renunciation.
(d) Nothing in this Article shall apply to the increase of the subscribed capital of the Company
caused by the exercise of an option attached to the debentures issued or loans raised by the
Company:
(i) To convert such debentures or loans into shares in the Company; or
(ii) To subscribe for shares in the Company.
Provided that the terms of issue of such debentures or the terms of such loans include a term
providing for such option and such term:
(A) Either has been approved by the Central Government before the issue of the
debentures or the raising of the loans or is in conformity with Rules, if any, made by
that Government in this behalf; and
(B) In the case of debentures or loans or other than debentures issued to or loans obtained
from Government or any institution specified by the Central Government in this
behalf, has also been approved by a special resolution passed by the Company in
General Meeting before the issue of the debentures or raising of the loans.
(9) Rights to convert loans into capital
Notwithstanding anything contained in sub-clauses(s) above, but subject, however, to Section 81(3) of
the Act, the Company may increase its subscribed capital on exercise of an option attached to the
debentures or loans raised by the Company to convert such debentures or loans into shares or to
subscribe for shares in the Company.
(10) Allotment on application to be acceptance of Shares
Any application signed by or on behalf of an applicant for shares in the Company followed by an
allotment of any share therein, shall be an acceptance of shares within the meaning of these Articles,
and every person who thus or otherwise accepts any shares and whose name is on the register, shall, for
the purpose of these articles, be a Member.
(11) Restrictions on Allotment
The Board shall observe the restrictions as regards allotment of shares to the public contained in
Section 69 and 70 of the Act and as regards return on allotments, the Directors shall comply with
Section 75 of the Act.
(12) Money due on Shares to be a debt to the Company
The money (if any) which the Board shall, on the allotment of any shares being made by them, require
or direct to be paid by way of deposit, call or otherwise in respect of any shares allotted by them, shall
immediately on the inscription of the name of allottee in the Register of Members as the name of the
holder of such shares become a debt due to and recoverable by the Company from the allottee thereof,
and shall be paid by him accordingly.
(13) Shareholders or heirs to pay unpaid amounts
Every Member or his heir’s executors or administrators shall pay to the Company the portion of the
capital represented by his share or shares which may, for the time being remain unpaid thereon, in such
amounts, at such time or times and in such manner, as the Board shall from time to time, in accordance
with the Company’s regulations require or fix for the payment thereof.
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SHARE CERTIFICATES
2. (a) Every Member entitled to certificate for his shares
(i) Every member or allottee of shares shall be entitled, without payment, to receive one
or more certificates specifying the name of the person in whose favour it is issued, the
shares to which it relates, and the amount paid thereon. Such certificates shall be
issued only in pursuance of a resolution passed by the Board or a Committee thereof
and on surrender to the Company of fractional coupon of requisite value, save in case
of issue of share certificates against letters of acceptance of or renunciation or in
cases of issues of bonus shares.
(ii) Every such certificate shall be issued under the seal of the Company, which shall be
affixed in the presence of (1) two Directors or persons acting on behalf of the
Directors under duly registered powers of attorney; and (2) the Secretary or some
other persons appointed by the Board for the purpose and the two Directors or their
attorneys and the secretary or other persons shall sign the Share Certificate, provided
that if the composition of the Board permits, at least one of the aforesaid two
Directors shall be a person other than the Managing Director.
(iii) Particulars of every share certificate issued shall be entered in the Registrar of
Members against the name of the person to whom it has been issued, indicating date
of issue.
(b) Joint ownership of Shares
Any two or more joint allottees of shares shall be treated as a single member for the purposes
of this article and any share certificate, which may be the subject of joint ownership, may be
delivered to any one of such joint owners on behalf of all of them. The Company shall comply
with the provisions of Section 113 of the Act. The shares may be registered in the name of any
person, company or other body corporate. Not more than four persons shall be registered as
joint holders of any share.
(c) Issue of new certificates in place of defaced, lost or destroyed certificate
If any certificate be worn out, defaced, mutilated or torn or if there be no further space on the
back thereof for endorsement of transfer, then upon production and surrender thereof to the
Company, a new Certificate may be issued in lieu thereof, and if any certificate is lost or
destroyed then upon proof thereof to the satisfaction of the Company and on execution of such
indemnity as the Company deems adequate, being given, a new Certificate in lieu thereof shall
be given to the party entitled to such lost or destroyed Certificate. Every Certificate under the
Article shall be issued without payment of fees if the Directors so decide, or on payment of
such fees (not exceeding ` 2 for each certificate) as the Directors shall prescribe. Provided that
no fee shall be charged for issue of new certificates in replacement of those which are old,
defaced or worn out or where there is no further space on the back thereof for endorsement of
transfer.
Provided that notwithstanding what is stated above the Directors shall comply with such Rules
or Regulation or requirements of BSE Limited or the Rules made under the Act or the rules
made under Securities Contract (Regulation) Act, 1956 or any other Act or rules applicable in
this behalf.
The provision of this Article shall mutatis mutandis apply to debenture certificates of the
Company.
(d) Renewal of Share Certificate
When a new share certificate has been issued in pursuance of clause(d) of this article, it shall
state on the face of it and against the stub or counterfoil to the effect that it is issued in lieu of
share certificate No ……. sub-divided/replaced on consolidation of shares.
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(e) When a new certificate has been issued in pursuance of clause (d) of this Article, it shall state
on the face of it against the stub or counterfoil to the effect that it is duplicate issued in lieu of
share certificate No……. The word ‘Duplicate’ shall be stamped or punched in bold letters
across the face of the share certificate and when a new certificate has been issued in pursuance
of clauses (c), (d), (e) and (f) of this Article, particulars of every such share certificate shall be
entered in a Register of Renewed and Duplicate Certificates indicating against it, the names of
the persons to whom the certificate is issued, the number and the necessary changes indicated
in the Register of Members by suitable cross references in the “remarks” column.
(f) All blank forms, share certificates shall be printed only on the authority of a resolution duly
passed by the Board.
3. Rules to issue share certificates
The rules under “The Companies (Issue of Share Certificate) Rules, 1960 shall be complied with in the
issue, reissue, renewal of share certificates and the format sealing and signing of the certificates and
records of the certificates issued shall be maintained in accordance with the said rules. The Company
shall keep ready share certificates for delivery within 2 months after allotment.
4. Responsibilities to maintain records
The Managing Director of the Company for the time being or if the Company has no Managing
Director, every Director of the Company shall be responsible for maintenance, preservation and safe
custody of all books and documents relating to the issue of share certificates.
5. Rights of joint holders
If any share stands in the names of two or more persons, the person first named in the Register shall, as
regards receipt of dividends or bonus or service of notices and all or any other matters connected with
the Company, except voting at meeting and the transfer of the shares be deemed the sole holder thereof
but the joint holders of share shall be severally as well as jointly liable for payment of all installments
and calls due in respect of such share and for all incidents thereof according to the Company’s
regulations.
UNDERWRITING & BROKERAGE
6. Commission for placing shares, debentures, etc.
(a) Subject to the provisions of the Act, the Company may at any time pay a commission to any
person for subscribing or agreeing to subscribe (whether absolutely or conditionally) for any
shares, debentures, or debenture-stock of the Company or underwriting or procuring or
agreeing to procure subscriptions (whether absolute or conditional) for shares, debentures or
debenture-stock of the Company
(b) The Company may also, in any issue, pay such brokerage as may be lawful.
LIEN
7. Company’s lien on shares /debentures
The Company shall have a first and paramount lien upon all the shares /debentures (other than fully
paid up shares/debentures) registered in the name of each member (whether solely or jointly with
others) and upon the proceeds of sale thereof for all moneys (whether presently payable or not) called
or payable at fixed time in respect of such shares/debentures, and no equitable interest in any shares
shall be created except upon the footing and condition that this Article will have full effect and such
lien shall extend to all dividends and bonuses from time to time declared in respect of such
shares/debentures. Unless otherwise agreed, the registration of a transfer of shares/debentures shall
operate as a waiver of the Company’s lien if any, on such shares/debentures. The Directors may at any
time declare any shares/debentures wholly or in part to be exempt from provisions of this clause.
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CALLS ON SHARES
8. Board to have right to make calls on Shares
The Board may, from time to time, subject to the terms on which any shares may have been issued and
subject to the conditions of allotment, by a resolution passed at a meeting of the Board (and not by
circular resolution), make such call as it thinks fit upon the members in respect of all moneys unpaid on
the shares held by them respectively and each member shall pay the amount of every call so made on
him to the person or persons and the member(s) and place(s) appointed by the Board. A call may be
made payable by installments.
Provided that the Board shall not give the option or right to call on shares to any person except with the
sanction of the Company in General Meeting.
9. Notice for call
Fourteen days notice in writing of any call shall be given by the Company specifying the date, time and
places of payment and the person or persons to whom such call be paid.
10. Liability of joint holders for a call
The joint-holders of a share shall be jointly and severally liable to pay all calls in respect thereof.
11. Calls to carry interest
If a member fails to pay any call due from him on the day appointed for payment thereof, or any such
extension thereof as aforesaid, he shall be liable to pay interest on the same from the day appointed for
the payment thereof to the time of actual payment at 5% per annum or such lower rate as shall from
time to time be fixed by the Board but nothing in this Article shall render it obligatory for the Board to
demand or recover any interest from any such member.
12. Dues deemed to be calls
Any sum, which, as per the terms of issue of a share, becomes payable on allotment or at a fixed date
whether on account of the nominal value of the share or by way of premium, shall for the purposes of
the Articles be deemed to be a call duly made and payable on the date on which by the terms of issue
the same may become payable and in case of non payment all the relevant provisions of these Articles
as to payment of interest and expenses, forfeiture or otherwise shall apply as if such sum had become
payable by virtue of a call duly made and notified.
13. Proof of dues in respect of Shares
On any trial or hearing of any action or suit brought by the Company against any member or his
representatives for the recovery of any money claimed to be due to the Company in respect of his
shares it shall be sufficient to prove (i) that the name of the members in respect of whose shares the
money is sought to be recovered appears entered in the Register of Members as the holder, at or
subsequent to the date on which the money sought to be recovered is alleged to have become due on the
shares, (ii) that the resolution making the call is duly recorded in the minute book, and that notice of
such call was duly given to the member or his representatives pursuance of these Articles, and (iii) it
shall not be necessary to prove the appointment of the Directors who made such call, nor any other
matters whatsoever, but the proof of the matters aforesaid shall be conclusive of the debt.
14. Partial payment not to preclude forfeiture
Neither a judgment nor a decree in favour of the Company, for call or other moneys due in respect of
any share nor any part payment or satisfaction thereunder, nor the receipt by the Company of a portion
of any money which shall, from time to time be due from any member to the Company in respect of his
shares either by way of principal or interest, nor any indulgence granted by the Company in respect of
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the payment of any such money shall preclude the Company from thereafter proceeding to enforce
forfeiture of such shares as hereinafter provided.
15. Payment in anticipation of call may carry interest
(a) The Directors may, if they think fit, subject to the provisions of Section 92 of the Act, agree to
and receive from any member willing to advance the same whole or any part of the moneys
due upon the shares held by him beyond the sums actually called for and upon the amount so
paid or satisfied in advance, or so much thereof as from time to time exceeds the amount of the
calls then made upon the shares in respect of which such advance has been made, the
Company may pay interest at such rate, as the member paying such sum in advance and the
Directors agree upon provided that money paid in advance of calls shall not confer a right to
participate in profits or dividend. The Directors may at any time repay the amount so
advanced.
(b) The members shall not be entitled to any voting rights in respect of the moneys so paid by him
until the same would but for such payment become presently payable.
FORFEITURE OF SHARES
16. Board to have right to forfeit Shares
If any member fails to pay any call or installment of a call or before the day appointed for the payment
of the same or any such extension thereof as aforesaid, the Board may at any time thereafter during
such time as the call or installment remains unpaid, give notice to him requiring him to pay the same
together with any interest that may have accrued and all expenses that may have been incurred by the
Company by reason of such non-payment.
17. Notice for forfeiture of Shares
(a) The notice shall name a further day (not earlier than the expiration of fourteen days from the
date of notice) and place or places on which such call or installment and such interest thereon
(at such rate as the Directors shall determine from the day on which such call or installment
ought to have been paid) and expenses as aforesaid, are to be paid.
(b) The notice shall also state that in the event of the non-payment at or before the time the call
was made or installment is payable the shares will be liable to be forfeited.
18. Effect of forfeiture
If the requirements of any such notice as aforesaid are not complied with, every or any share in respect
of which such notice has been given may at any time thereafter, before the payment required by the
notice has been made, be forfeited by a resolution of the Board to that effect. Such forfeiture shall
include all dividends declared or any other moneys payable in respect of the forfeited share and not
actually paid before the forfeiture.
19. Forfeited Shares to be the property of the Company
Any share so forfeited shall be deemed to be the property of the Company and may be sold, re-allocated
or otherwise disposed of either to the original holder thereof or to any other person upon such terms and
in such manner as the Board shall think fit.
20. Member to be liable even after forfeiture
Any member whose shares have been forfeited shall, notwithstanding the forfeiture be liable to pay and
shall forthwith pay to the Company on demand all calls, installments, interest and expenses owing upon
or in respect of such shares at the time of the forfeiture together with the interest thereon from time to
time of the forfeiture until payment at such rates as the Board may determine and the Board may
enforce the payment thereof, if it thinks fit.
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21. Claims against the Company to extinguish on forfeiture
The forfeiture of a share involves extinction, at the time of the forfeiture of all interest in and all claims
and demands against the Company, in respect of the shares and all other rights incidental to the share,
except only such of those rights as by these Articles expressly saved.
22. Evidence of forfeiture
A duly verified declaration in writing that the declarant is a Director or Secretary of the Company, and
that a share in the Company has been duly forfeited in accordance with these Articles on a date stated in
the declaration, shall be conclusive evidence of the facts therein stated as against all persons claiming to
be entitled to the shares.
23. Effecting sale of Shares
Upon any sale after forfeiture or for enforcing a lien in purported exercise of the powers hereinafter
given, the Board may appoint some person to execute an instrument of transfer of the shares sold, cause
the purchaser’s name to be entered in the register in respect of the share sold, and the purchaser shall
not be bound to see to the regularity of the proceedings or to the application of the purchase money, and
after his name has been entered in the Register in respect of such shares, the validity of the sale shall
not be impeached by any person.
24. Certificate of forfeited Shares to be void
Upon any sale, re-allotment or other disposal under the provisions of the preceding Articles, the
certificate or certificates originally issued in respect of the relevant shares shall (unless the same shall
on demand by the Company have been previously surrendered to it by the defaulting member) stand
cancelled and become null and void and have no effect and the Directors shall be entitled to issue a new
certificate or certificates in respect of the said shares to the person or persons entitled thereto.
TRANSFER AND TRANSMISSION OF SHARES
25. Register of transfers
The Company shall keep a “Register of Transfers” and therein shall be fairly and distinctly entered
particulars of every transfer or transmission of shares.
26. Form or Instrument of Transfer
The instrument of transfer shall be in writing and all the provisions of Section 108 of the Act, and
statutory modification thereof for the time being shall be duly complied with in respect of all transfer of
shares and registration thereof. The Company shall use a common form of transfer in all cases.
27. Directors may refuse to register transfer
Subject to the provisions of Section 111A of the Act, Section 22A of the Securities Contracts
(Regulation) Act, 1956, these Articles and other applicable provisions of the Act or any other law for
the time being in force, the Board of Directors may, at their own absolute and uncontrolled discretion
and by giving reason, refuse whether in pursuance of any power of the Company under these Articles
or otherwise to register the transfer of, or transmission by operation of law of the right to, any shares or
interest of a Member in or debentures of the Company, whether fully paid or not. The Company shall
within one month from the date on which the instrument of transfer, or the intimation of such
transmission, as the case may be, was delivered to the Company, send notice of refusal to the transferee
and transferor or to the person giving intimation of such transmission, as the case may be, giving
reasons for such refusal. Provided that registration of a transfer shall not be refused on the ground of the
transferor being either alone or jointly with any other person or persons indebted to the Company on
any account whatsoever, except where the Company has a lien on the shares.
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28. Transfer of partly paid Shares
Where in the case of partly paid shares, an application for registration is to be made by the transferor,
the Company shall give notice of the application to the transferee in accordance with the provisions of
Section 110 of the Act.
29. Survivor of joint holders recognised
In case of the death of any one or more persons named in the Register of Members as the joint-holders
of any shares, the survivors shall be the only person recognised by the Company as having any title to
or interest in such share but nothing therein contained shall be taken to release the estate of a deceased
joint-holder from any liability on shares held by him jointly with any other person.
30. Transfers not permitted
No share shall in any circumstances be transferred to any minor, insolvent or person of unsound mind,
except fully paid shares through a legal guardian.
31. Share Certificates to be surrendered
Before the registration of a transfer, the certificate or certificates of the share or shares to be transferred
must be delivered to the Company along with (save as provided in Section 108) properly stamped and
executed instrument of transfer.
32. No fee on transfer or transmission
No fee shall be charged for registration of transfers, transmission, probate, succession certificate and
Letters of administration, Certificate of Death or Marriage, Power of Attorney or similar other
documents.
33. Company not liable to notice of equitable rights
The Company shall incur no liability or responsibility whatever in consequence of its registering or
giving effect to any transfer of shares made or purporting to be made by any apparent legal owner
thereof (as shown or appearing in the register of members) to the prejudice of persons having or
claiming any equitable rights, title or interest in the said shares, notwithstanding that the Company may
have had notice of such equitable rights referred thereto in any books of the Company and the
Company shall not be bound by or required to regard or attend to or give effect to any notice which
may be given to it of any equitable rights, title or interest or be under any liability whatsoever for
refusing or neglecting to do so, though it may have been entered or referred to in some book of the
Company but the Company shall nevertheless be at liberty to regard and attend to any such notice and
give effect thereto if the board shall so think fit.
34. Dematerialisation Of Securities
(a) Company to recognise interest in dematerialised securities under the Depositories Act, 1996.
Either the Company or the investor may exercise an option to issue, deal in, hold the securities
(including shares) with a depository in Electronic form and the certificates in respect thereof
shall be dematerialised, in which event the rights and obligations of the parties concerned and
matters connected therewith or incidental thereto shall be governed by the provisions of the
Depositories Act, 1996 as amended from time to time or any statutory modification(s) thereto
or re-enactment thereof.
(b) Dematerialisation/Re-Materialisation of Securities
Notwithstanding anything to the contrary or inconsistent contained in these Articles, the

Company shall be entitled to dematerialise its existing securities, re-materialise its securities
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held in Depositories and/or offer its fresh securities in the de-materialised form pursuant to the
Depositories Act, 1996 and the rules framed there under, if any.
(c) Option to receive security certificate or hold securities with depository
Every person subscribing to or holding securities of the Company shall have the option to
receive the security certificate or hold securities with a Depository. Where a person opts to
hold a security with the Depository, the Company shall intimate such Depository of the details
of allotment of the security and on receipt of such information, the Depository shall enter in its
record, the name of the allottees as the beneficial owner of that security.
(d) Securities in electronic form
All securities held by a Depository shall be dematerialised and held in electronic form. No
certificate shall be issued for the securities held by the Depository. Nothing contained in
Section 153, 153A, 153B, 187 B, 187 C and 372 of the Act, shall apply to a Depository in
respect of the securities held by it on behalf of the beneficial owners.
(e) Beneficial owner deemed as absolute owner
Except as ordered by the Court of competent jurisdiction or by law required, the Company
shall be entitled to treat the person whose name appears on the register of members as the
holders of any share or whose name appears as the beneficial owner of the shares in the
records of the Depository as the absolute owner thereof and accordingly shall not be bound to
recognise any benami, trust, equity, equitable contingent, future, partial interest, other claim to
or interest in respect of such shares or (except only as by these Articles otherwise expressly
provided) any right in respect of a share other than an absolute right thereto in accordance with
these Articles, on the part of any other person whether or not it has expressed or implied notice
thereof but the Board shall at their sole discretion register any share in the joint names of any
two or more persons or the survivor or survivors of them.
(f) Rights of depositories and beneficial owners
Notwithstanding anything to the contrary contained in the Act, or these Articles, a Depository
shall be deemed to be the registered owner for the purpose of effecting transfer of ownership
of security on behalf of the beneficial owner.
Save as otherwise provided above, the Depository is the registered owner of the securities, and
shall not have any voting rights or any other rights in respect of the securities held by it.
Every person holding securities of the Company and whose name is entered as a beneficial
owner in the records of the Depository shall be deemed to be a member of the Company. The
beneficial owner of securities shall be entitled to all the rights and benefits and be subject to all
the liabilities in respect of his securities which are held by a Depository.
(g) Register and index of beneficial owners
The Company shall cause to be kept a Register and Index of members in accordance with all
applicable provisions of the Act and the Depositories Act, 1996 with details of shares and
debentures held in physical and dematerialised forms in any media as may be permitted by law
including any form of electronic media.
The Register and Index of beneficial owners maintained by a Depository under the
Depositories Act, 1996 shall be deemed to be a Register and Index of members for the
purposes of this Act. The Company shall have the power to keep in any state or country
outside India a Branch register of Members resident in that State or Country.
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(h) Cancellation of certificates upon surrender by person
Upon receipt of certificate of securities on surrender by a person who has entered into an
agreement with the Depository through a participant, the Company shall cancel such
certificates and shall substitute in its record, the name of the depository as the Registered
owner in respect of the said securities and shall also inform the Depository accordingly.
(i) Service of documents
Notwithstanding anything contained in the Act, or these Articles, to the contrary, where
securities are held in a depository, the record of the beneficial ownership may be served by
such depository on the Company by means of hard copies or through electronic mode or by
delivery of floppies or discs.
(j) Allotment of securities
Where the securities are dealt within a Depository, the Company shall intimate the details of
allotment of relevant securities to the Depository on allotment of such securities.
(k) Transfer of securities
The Company shall keep a Register of Transfers and shall have recorded therein fairly and
distinctly, particulars of every transfer or transmission of shares held in material form. Nothing
contained in these Articles shall apply to transfer of securities held in depository.
(l) Distinctive number of securities held in a depository
The shares in the capital shall be numbered progressively according to their several
denominations, provided, however that the provisions relating to progressive numbering shall
not apply to the shares of the Company which are in dematerialised form. Except in the
manner provided under these Articles, no share shall be sub-divided. Every forfeited or
surrendered share be held in material form shall continue to bear the number by which the
same was originally distinguished.
(m) Provisions of articles to apply to shares held in depository
Except as specifically provided in these Articles, the provisions relating to joint holders of
shares, calls, lien on shares, forfeiture of shares and transfer and transmission of shares shall
be applicable to shares held in Depository so far as they apply to shares held in physical form
subject to the provisions of the Depositories Act, 1996.
(n) Depository to furnish information
Every Depository shall furnish to the Company information about the transfer of securities in
the name of the beneficial owner at such intervals and in such manner as may be specified by
laws and the Company in that behalf.
(o) Option to opt out in respect of any such security
If a beneficial owner seeks to opt out of a Depository in respect of any security, he shall
inform the Depository accordingly. The Depository shall on receipt of such information make
appropriate entries in its records and shall inform the Company. The Company shall within 30
(thirty) days of the receipt of intimation from a Depository and on fulfillment of such
conditions and on payment of such fees as may be specified by the regulations, issue the
certificate of securities to the beneficial owner or the transferee as the case may be.
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(p) Overriding effect of this article
Provisions of the Articles will have full effect and force not withstanding anything to the
contrary or inconsistent contained in any other Articles of these presents.
35. Nomination Facility
(a) Every holder of shares, or holder of debentures of the Company may at any time, nominate, in
the prescribed manner a person to whom his shares in or debentures of the Company shall vest
in the event of his death.
(b) Where the shares in or debentures of the Company or held by more than one person jointly, the
joint holders may together nominate in the prescribed manner, a person to whom all the rights
in the shares or debentures of the Company shall vest in the event of death of all the joint
holders.
(c) Notwithstanding any thing contained in any other law for the time being in force or in any
disposition, whether testamentary or otherwise in respect of such shares in or debentures of the
Company where a nomination made in the prescribed manner purports to confer on any person
the right to vest the shares in or debentures of the Company, the nominee shall, on the death of
the shareholder or debenture holder of the Company or as the case may be on the death of the
joint holders become entitled to all the rights in the shares or debentures of the Company or as
the case may be all the joint holders in relation to such shares in or debenture of the Company
to the exclusion of all the other persons, unless the nomination is varied or cancelled in the
prescribed manner.
(d) Where the nominee is a minor it shall be lawful for the holder of shares or debentures, to make
the nomination and to appoint in the prescribed manner any person to become entitled to
shares in or debentures of the Company in the event of his death in the event of minority of the
nominee.
(e) Any person who becomes a nominee by virtue of the provisions of Section 109 A upon the
production of such evidence as may be required by the Board and subject as hereinafter
provided elect either
(i) registered himself as holder of the shares or debentures as the case may be, or
(ii) To make such transfer of the share or debenture as the case may be, as the deceased
shareholder or debenture holder, as the case may be could have made.
(f) If the person being a nominee, so becoming entitled, elects to be registered himself as a holder
of the share or debenture as the case may be, he shall deliver or send to the Company a notice
in writing signed by him stating that he so elects and such notice shall be accompanied by a
Death Certificate of the deceased share holder or debenture holder as the case may be.
(g) All the limitations, restrictions and provisions of this Act, relating to the right to transfer and
registration of transfer of shares or debentures shall be applicable to any such notice or transfer
as aforesaid as if the death of the member had not occurred and the notice or transfer where a
transfer is signed by that shareholder or debenture holder, as the case may be.
(h) A person being a nominee, becoming entitled to a share or debenture by reason of the death of
the holder shall be entitled to same dividends and other advantages to which he would be
entitled if he were the registered holder of the share or debenture, except that he shall not,
before being registered a member in respect of his share of debenture, be entitled in respect of
it to exercise any right conferred by membership in relation to the meetings of the Company.
(i) Provided that the Board may, at any time, give notice requiring any such person to elect either
to be registered himself or to transfer the share or debenture and if the notice is not complied
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with within 90 days, the Board may thereafter withhold payments of all dividends, bonus, or
other monies payable in respect of the share or debenture, until the requirements of the notice
have been complied with.
(j) A Depository may in terms of Section 58 A at any time, make a nomination and above
provisions shall as far as may be, apply to such nomination.
36. Buy back of Shares
The Company shall be entitled to purchase its own shares or other securities, subject to such limits,
upon such terms and conditions and subject to such approvals as required under Section 77 A and other
applicable provisions of the Act, The Securities and Exchange Board of India Act, 1992 and the
Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 and any
amendments, modification(s), re-promulgation (s) or re-enactment(s) thereof.
SHARE WARRANTS
37. Rights to issue share warrants
(a) The Company may issue share warrants subject to, and in accordance with provisions of
Section 114 and 115 of the Act.
(b) The Board may, in its discretion, with respect to any share which is fully paid up on
application in writing signed by the person registered as holder of the share, and authenticated
by such evidence (if any) as the Board may from time to time require as to the identity of the
person signing the application, and the amount of the stamp duty on the warrant and such fee
as the Board may from time to time require having been paid, issue a warrant.
38. Rights of warrant holders
(a) The bearer of the share warrant may at any time deposit the warrant at the office of the
Company, and so long as the warrant remains so deposited, the depositor shall have the same
right to signing a requisition, for calling a meeting of the Company, and of attending, and
voting and exercising other privileges of a member at any meeting held after the expiry of two
clear days from time of the deposit, as if his name were inserted in the Register of Members as
the holder of the shares included in the deposited warrant.
(b) Not more than one person shall be recognised as the depositor of the share warrant.
(c) The Company shall, on two days written notice, return the deposited share warrant to the
depositor.
39. (a) Subject as herein otherwise expressly provided, no person shall, as bearer of a share warrant,
sign a requisition for calling a meeting of the Company, or attend, or vote or exercise any
other privileges of a member at a meeting of the Company, or be entitled to receive any notice
from the Company.
(b) The bearer of a share warrant shall be entitled in all other respects to the same privileges and
advantages as if he were named in the Register of Members as the holder of the shares
included in the warrant, and he shall be a member of the Company.
40. Board to make rules
The Board may, from time to time, make rules as to the terms on which it shall think fit, a new share
warrant or coupon may be issued by way of renewal in case of defacement, loss or destruction.
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GENERAL MEETINGS
41. Annual General Meeting
The Company shall, in addition to any other meetings hold a General Meeting which shall be called as
its Annual General Meeting, at the intervals and in accordance with the provisions of the Act.
42. Extraordinary General Meeting
(a) The Board may, whenever it thinks fit, convene an Extraordinary General Meeting at such
date, time and at such place as it deems fit, subject to such directions if any, given by the
Board.
(b) The Board shall, on the requisition of members, convene an Extraordinary General Meeting of
the Company in the circumstances and in the manner provided under Section 169 of the Act.
43. Notice for General Meeting
All General Meetings shall be convened by giving not less than twenty- one days notice excluding the
day on which the notice is served or deemed to be served (i.e. on expiry of 48 hours after the letter
containing the same is posted) and the date of the meeting, specifying the place and hour of the meeting
and in case of any special business proposed to be transacted, the nature of that business shall be given
in the manner mentioned in Section 173 of the Act. Notice shall be given to all the share-holders and to
such persons as are under Act and/or these Articles entitled to receive such notice from the Company
but any accidental omission to give notice to or non-receipt of the notice by any member shall not
invalidate the proceedings of any General Meeting.
44. Shorter Notice admissible
With the consent of all the members entitled to vote, at an Annual General Meeting or with the consent
of the members holding 95 percent of such part of the paid-up share capital of the Company as gives a
right to vote thereat, any general meeting may be convened by giving a shorter notice than twenty one
days.
45. Special and Ordinary Business
(a) All business shall be deemed special that is transacted at an Extraordinary General Meeting and
also that is transacted at an Annual General Meeting with the exception of sanctioning of
dividend, the consideration of the accounts, balance sheet and the reports of the Directors and
Auditors, the election of Directors in place of those retiring by rotation and the appointment of
and the fixing up of the remuneration of the Auditors.
(b) In case of special business as aforesaid, an explanatory statement as required under Section 173
of the Act shall be annexed to the notice of the meeting.
46. Quorum for General Meeting
Five members or such other number of members as the law for the time being in force prescribes,
personally present shall be quorum for a General Meeting and no business shall be transacted at any
General Meeting unless the requisite quorum is present at the commencement of the meeting.
47. Time for Quorum and adjournment
If within half an hour from the time appointed for a meeting a quorum is not present, the meeting, if
called upon the requisition of members, shall be dissolved and in any other case, it shall stand
adjourned to the same day in the next week at the same time and place and if at the adjourned meeting
also, a quorum is not present within half an hour from the time appointed for the meeting, the members
present shall be quorum.
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48. Chairman of General Meeting
The Chairman, if any, of the Board of Directors shall preside as Chairman at every General Meeting of
the Company.
49. Decision by Poll
If a poll is duly demanded, it shall be taken in such manner as the Chairman directs and the results of
the poll shall be deemed to be the decision of the meeting on the resolution in respect of which the poll
was demanded.
50. Poll to be immediate
(a) A poll demanded on the election of Chairman or on a question of adjournment shall be taken
forthwith. A poll demanded on any other question shall be taken at such time not later than
forty eight hours from the time of demand as the Chairman of the meeting directs.
(b) A demand for a poll shall not prevent the continuance of a Meeting of the transaction of any
business other than that on which a poll has been demanded.
(c) The demand for a poll may be withdrawn at any time before the declaration of the result by the
person or persons who made the demand.
51. Postal Ballot
(a) Notwithstanding any of the provisions of these Articles the Company may, and in the case of
resolutions relating to such business as notified under the Companies (Passing of the
Resolution by Postal Ballot) Rules, 2001 to be passed by postal ballot, shall get any resolution
passed by means of a postal ballot, instead of transacting the business in the general meeting
of the Company.
(b) Where the Company decides to pass any resolution by resorting to postal ballot, it shall follow
the procedures as prescribed under section 192A of the Act and the Companies (Passing of the
Resolution by Postal Ballot) Rules, 2001, as amended from time to time.
VOTE OF MEMBERS
52. Vote of Shareholders
(a) On a show of hands every member holding equity shares and present in person shall have one
vote.
(b) On a poll, every member holding equity shares therein shall have voting rights in proportion to
his shares of the paid up equity share capital.
(c) On a poll, a member having more than one vote, or his proxy or other persons entitled to vote
for him need not use all his votes in the same way.
53. Voting by joint holders
In the case of joint-holders the vote of the first named of such joint holders who tender a vote whether
in person or by proxy shall be accepted to the exclusion of the votes of other joint holders.
54. Proxy
On a poll, votes may be given either personally or by proxy.
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55. Instrument of Proxy
(a) The instrument appointing a proxy shall be in writing under the hand of appointer or of his
attorney duly authorised in writing or if appointed by a Corporation either under its common
seal or under the hand of its attorney duly authorised in writing. Any person whether or not he
is a member of the Company may be appointed as a proxy.
(b) The instrument appointing a proxy and Power of Attorney or other authority (if any) under
which it is signed must be deposited at the registered office of the Company not less than forty
eight hours prior to the time fixed for holding the meeting at which the person named in the
instrument proposed to vote, or, in case of a poll, not less than twenty four hours before the
time appointed for the taking of the poll, and in default the instrument of proxy shall not be
treated as valid.
(c) The form of proxy shall be a two-way proxy as given in Schedule IX of the Act enabling the
share holder to vote for/against any resolution.
56. Validity of Proxy
A vote given in accordance with the terms of an instrument of proxy shall be valid, notwithstanding the
previous death or insanity of the principal or the revocation of the proxy or of the authority under which
the proxy was executed or the transfer of the shares in respect of which the proxy is given provided that
no intimation in writing of such death, insanity, revocation or transfer shall have been received by the
Company at its office before the commencement of the meeting or adjourned meeting at which the
proxy is used.
57. Corporate Shareholders
Any Corporation which is a member of the Company may, by resolution of its Board of Directors or
other governing body, authorise such person as it thinks fit to act as its representative at any meeting of
the Company and the said person so authorised shall be entitled to exercise the same powers on behalf
of the Corporation which he represents as that Corporation could have exercised if it were an individual
member of the Company.
DIRECTOR
58. Number of Directors
Unless otherwise determined by General Meeting, the number of Directors shall not be less than three
and not more than twelve, including all kinds of Directors.
59. Share qualification not necessary
Any person whether a member of the Company or not may be appointed as Director and no
qualification by way of holding shares shall be required of any Director.
60. Director’s power to fill-up casual vacancy
Any casual vacancy occurring in the Board of Directors may be filled up by the Directors, and the
person so appointed shall hold office up to the date, up to which Director in whose place he is
appointed would have held office if it has not been vacated as aforesaid
61. Additional Directors
The Board of Directors shall have power at any time and from time to time to appoint one or more
persons as Additional Directors provided that the number of Directors and Additional Directors
together shall not exceed the maximum number fixed. An additional Director so appointed shall hold
office up to the date of the next Annual general Meeting of the Company and shall be eligible for re-
election by the Company at that Meeting.
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62. Alternate Directors
The Board of Directors may appoint an Alternate Director to act for a Director (hereinafter called the
original Director) during the absence of the original Director for a period of not less than 3 months
from the state in which the meetings of the Board are ordinarily held. An Alternate Director so
appointed shall vacate office if and when the original Director returns to the state in which the meetings
of the Board are ordinarily held. If the term of the office of the original Director is determined before he
so returns to the state aforesaid any provision for the automatic reappointment of retiring Director in
default of another appointment shall apply to the Original Director and not to the Alternate Director.
63. Remuneration of Directors
Every Director other than the Managing Director and the Whole-time Director shall be paid a sitting fee
not exceeding such sum as may be prescribed by the Act or the Central Government from time to time
for each meeting of the Board of Directors or any Committee thereof attended by him and shall be paid
in addition thereto all travelling, hotel and other expenses properly incurred by him in attending and
returning from the meetings of the Board of Directors or any committee thereof or General Meeting of
the Company or in connection with business of the Company to and from any place.
64. Continuing Director may act
The continuing Directors may act notwithstanding any vacancy in the Board but if the number is
reduced below three, the continuing Directors or Director may act for the purpose of increasing the
number of Directors to three or for summoning a general meeting of the Company but for no other
purpose.
ROTATION AND RETIREMENT OF DIRECTORS
65. One-third of Directors to retire every year
Subject to the provisions of Article 138 of the Articles, at the Annual General Meeting of the Company
to be held in every year, one third of such of the Directors as are liable to retire by rotation for time
being, or, if their number is not three or a multiple of three then the number nearest to one third shall
retire from office, and they will be eligible for re-election.
66. Increase or reduction in the number of Directors
Subject to the provisions of Section 252, 255, 259 of the Act, the Company in General Meeting may by
Ordinary Resolution increase or reduce the number of its Directors.
67. Power to remove Director by ordinary resolution
Subject to the provisions of the Act, the Company may by an ordinary resolution in General Meeting
remove any Director before the expiration of his period of office and may, by an ordinary resolution,
appoint another person instead; the person so appointed shall be subject to retirement at the same time
as if he had become a Director on the day on which the Director in whose place he is appointed was last
elected as Director.
68. Director for subsidiary Company
Directors of this Company may be or become a Director of any Company promoted by this Company
or in which it may be interested as Vendor, Shareholder or otherwise and no such Director shall be
accountable for any benefits received as a Director or member of such Company.
69. Meetings of the Board
(a) The Board of Directors shall meet at least once in every three calendar months for the dispatch
of business, adjourn and otherwise regulate its meetings and proceedings as it thinks fit
provided that at least four such meetings shall be held in every year.
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(b) The Managing Director may, at any time summon a meeting of the Board and the Managing
Director or a Secretary or a person authorised in this behalf on the requisition of Director shall
at any time summon a meeting of the Board. Notice of meeting of the Board shall be given in
writing or by other electronic mode at least 7 days prior to the meeting to every Director for
the time being in India, and at his usual address in India to every other Director.
70. Quorum
The quorum for a meeting of the Board shall be one-third of its total strength (any fraction contained in
that one-third being rounded off as one) or two Directors whichever is higher, provided that where at
any time the number of interested Directors is equal to or exceeds two-thirds of total strength, the
number of remaining Directors, that is to say the number of Directors who are not interested, present at
the meeting being not less than two, shall be the quorum during such time. The total strength of the
Board shall mean the number of Directors actually holding office as Directors on the date of the
resolution or meeting, that is to say, the total strength of Board after deducting therefrom the number of
Directors, if any, whose places are vacant at the time.
71. Questions how decided
(a) Save as otherwise expressly provided in the Act, a meeting of the Board for the time being at
which a quorum is present shall be competent to exercise all or any of the authorities, powers
and discretions by or under the Regulations of the Company for the time being vested in or
exercisable by the Directors generally and all questions arising at any meeting of the Board
shall be decided by a majority of the Board.
(b) In case of an equality of votes, the Chairman shall have second or casting vote in addition to
his vote as Director.
72. Right of continuing Directors when there is no quorum
The continuing Directors may act notwithstanding any vacancy in the Board but if and so long as their
number is reduced below three, the continuing Directors or Director may act for the purpose of
increasing the number of Directors to three or of summoning a General Meeting of the Company but
for no other purpose.
73. Election of Chairman of Board
(a) The Board may elect a Chairman of its meeting and determine the period for which he is to
hold office.
(b) If no such Chairman is elected or at any meeting the Chairman is not present within five
minutes after the time appointed for holding the meeting the Directors present may choose one
among themselves to b the Chairman of the Meeting.
74. Powers to be exercised by Board only at a Meeting of the Board of Directors
(a) The Board of Directors shall exercise the following powers on behalf of the Company and the
said powers shall be exercised only by resolution passed at a meeting of the Board:
(i) Power to make calls on shareholders in respect of moneys unpaid on their shares;
(ii) Power to issue debentures;
(iii) Power to borrow money otherwise than on debentures:
(iv) Power to invest the funds of the Company;
(v) Power to make loans.
(b) The Board of Directors may by a meeting delegate to any committee or the Directors or to the
Managing Director the powers specified in sub clauses (iii), (iv) and (v) above.
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(c) Every resolution delegating the power set out in sub clause (iii) above shall specify the total
amount up to which moneys may be borrowed by the said delegate.
(d) Every resolution delegating the power referred to in sub-clause (iv) above shall specify the
total amount, up to which the fund may invested and the nature of the investments which may
be made by the delegate.
(e) Every resolution delegating the power referred to in sub-clause (v) above shall specify the total
amount up to which the loans may be made by the delegate, the purposes for which the loans
may be made and the maximum amount of loans which may be made for each such purpose in
individual cases.
75. Delegation of Powers
(a) The Board may, subject to the provisions of the Act, delegate any of its powers to any
committee or the Directors or to the Managing Director as it thinks fit.
(b) Any committee so formed shall, in the exercise of the power so delegated conform to any
regulations that may be imposed on it by the Board.
76. Validity of acts done by Board or a Committee
All acts done by any meeting of the Board, of a committee thereof, or by any person acting as a
Director shall notwithstanding that it may be afterwards discovered that there was some defect in the
appointment of any one or more of such Directors or of any person acting as aforesaid or that they or
any of them were disqualified be as valid as if even such Director or such person has been duly
appointed and was qualified to be a Director.
(c) Resolution by Circulation
Save as otherwise expressly provided in the Act, a resolution in writing circulated in draft together with
the necessary papers, if any, to all the Directors or to all the members of the committee then in India,
not being less in number than the quorum fixed of the meeting of the Board or the Committee, as the
case may be and to all other Directors or members at their usual address in India and approved by such
of the Directors as are then in India or by a majority of such of them as are entitled to vote at the
resolution shall be valid and effectual as if it had been a resolution duly passed at a meeting of he Board
or committee duly convened and held.
77. Assignment of Securities
Debentures, debenture-stock, bonds or other securities may be assignable free from any equities
between the Company and the person to whom the same may be issued.
78. Terms of Issue of Debentures
Any debentures, debenture stock, or other securities may be issued at a discount, premium or otherwise
and may be issued on condition that they shall or shall not be convertible into shares of any
denomination and with or with out any privileges and conditions as to redemption, surrender, drawings,
allotment of shares, attending (but not voting) at the General Meeting, appointment of Directors and
otherwise. Debentures with a right of conversion into or allotment of shares shall be issued only with
the consent of the Company in a General Meeting by a Special Resolution.
79. Debenture Directors
Any Trust Deed for securing debentures or debenture stock may, if so arranged, provide for the
appointment from time to time by the trustee thereof or by the holders of debentures or debenture stock
of some person to be a Director of the Company and may empower such trustee or holders of
debentures or debenture stock from time to time to remove any Directors so appointed. A Director
appointed under this Article is herein referred to as a “Debenture Director” and the Debenture Director
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means a Director for the time being in office under this Article. A Debenture Director shall not be
bound to hold any qualification shares, not be liable to retire by rotation or be removed by the
Company. The Trust Deed may contain such ancillary provisions as may be arranged between the
Company and the Trustees and all such provision shall have effect notwithstanding any of the other
provisions herein contained.
80. Nominee Directors
(a) So long as any moneys remain owing by the Company to any All India Financial Institutions,
State Financial Corporation or any financial institution owned or Controlled by the Central
Government or State Government or any Non Banking Financial Company Controlled by the
Reserve Bank of India or Banks or any such Company from whom the Company has borrowed
for the purpose of carrying on its objects or each of the above has granted any loans / or
subscribes to the Debentures of the Company or so long as any of the aforementioned
companies of financial institutions holds or continues to hold debentures /shares in the
Company as a result of underwriting or by direct subscription or private placement or so long
as any liability of the Company arising out of any guarantee furnished on behalf of the
Company remains outstanding, and if the loan or other agreement with such corporation so
provides, the corporation shall have a right to appoint from time to time any person or persons
as a Director or Directors, whole- time or non whole- time (which Director or Director/s is/are
hereinafter referred to as “Nominee Directors/s) on the Board of the Company and to remove
from such office any person or person so appointed and to appoint any person or persons in his
/their place(s).
(b) The Board of Directors of the Company shall have no power to remove from office the
Nominee Director/s. At the option of the corporation such Nominee Director/s shall not be
liable to retirement by rotation of Directors. Subject as aforesaid, the Nominee Director/s shall
be entitled to the same rights and privileges and be subject to the same obligations as any other
Director of the Company.
The Nominee Director/s so appointed shall hold the said office only so long as any moneys
remain owing by the Company to the Corporation or so long as they holds or continues to hold
Debentures/shares in the Company as result of underwriting or by direct subscription or
private placement or the liability of the Company arising out of the Guarantee is outstanding
and the Nominee Director/s so appointed in exercise of the said power shall vacate such office
immediately on the moneys owing by the Company to the Corporation are paid off or they
ceasing to hold Debentures/Shares in the Company or on the satisfaction of the liability of the
Company arising out of the guarantee furnished.
(c) The Nominee Director/s appointed under this Article shall be entitled to receive all notices of
and attend all General Meetings, Board Meetings and of the Meetings of the Committee of
which Nominee Director/s is/are member/s as also the minutes of such Meetings. The
Corporation shall also be entitled to receive all such notices and minutes.
(d) The Company shall pay the Nominee Director/s sitting fees and expenses to which the other
Directors of the Company are entitled, but if any other fees commission, monies or
remuneration in any form is payable to the Directors of the Company, the fees, commission,
monies and remuneration in relation to such Nominee Director/s shall accrue to the nominee
appointer and same shall accordingly be paid by the Company directly to the Corporation.
(e) Provided that the sitting fees, in relation to such Nominee Director/s shall also accrue to the
appointer and same shall accordingly be paid by the Company directly to the appointer.
81. Register of Charges
The Directors shall cause a proper register to be kept, in accordance with the Act, of all mortgages and
charges specifically affecting the property of the Company and shall duly comply with the requirements
of the Act in regard to the registration of mortgages and charges therein specified.
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82. Subsequent assigns of uncalled capital
Where any uncalled capital of the Company is charged, all persons taking any subsequent charge
thereon shall take the same, subject to such prior charges and shall not be entitled to obtain priority over
such prior charge.
(d) Charge in favour of Director for Indemnity
If the Director or any person, shall become personally liable for the payment of any sum primarily due
from the Company, the Board may execute or cause to be executed any mortgage, charge or security
over or affecting the whole or part of the assets of the Company by way of indemnity to secure the
Directors or other persons so becoming liable as aforesaid from any loss in respect of such liability.
MANAGING DIRECTOR(S)/ WHOLE-TIME DIRECTOR(S)
83. (a) The Board may from time to time and with such sanction of the Central Government as may
be required by the Act, appoint one or more of the Directors to the office of the Managing
Director or whole-time Directors. The Managing Director shall not be liable to retirement by
rotation as long as he holds office as Managing Director.
(b) The Directors may from time to time resolve that there shall be either one or more Managing
Directors or Whole time Directors.
(c) In the event of any vacancy arising in the office of a Managing Director or Whole-time
Director, the vacancy shall be filled by the Board of Directors subject to the approval of the
members.
If a Managing Director or whole time Director ceases to hold office as Director, he shall ipso
facto and immediately cease to be Managing Director/whole time Director.
84. Powers and duties of Managing Director or Whole-Time Director
The Managing Director/Whole-time Director shall subject to the supervision, control and direction of
the Board and subject to the provisions of the Act, exercise such powers as are exercisable under these
presents by the Board of Directors, as they may think fit and confer such power for such time and to be
exercised as they may think expedient and they may confer such power either collaterally with or to the
exclusion of any such substitution for all or any of the powers of the Board of Directors in that behalf
and may from time to time revoke, withdraw, alter or vary all or any such powers. The Managing
Directors/ whole time Directors may exercise all the powers entrusted to them by the Board of
Directors in accordance with the Board’s direction.
85. Remuneration of Managing Directors/Whole Time Directors
Subject to the provisions of the Act and subject to such sanction of Central Government\Financial
Institutions as may be required for the purpose, the Managing Directors/whole-time Directors shall
receive such remuneration (whether by way of salary commission or participation in profits or partly in
one way and partly in another) as the Company in General Meeting may from time to time determine.
86. Reimbursement of expenses
The Managing Directors\whole-time Directors shall be entitled to charge and be paid for all actual
expenses, if any, which they may incur for or in connection with the business of the Company. They
shall be entitled to appoint part time employees in connection with the management of the affairs of the
Company and shall be entitled to be paid by the Company any remuneration that they may pay to such
part time employees.
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87. Business to be carried on by Managing Directors/ Whole time Directors
(a) The Managing Directors\Whole Time Directors shall have subject to the supervision, control
and discretion of the board, the management of the whole of the business of the Company and
of all its affairs and shall exercise all powers and perform all duties in relation to the
Management of the affairs and transactions of Company, except such powers and such duties
as are required by law or by these presents to be exercised or done by the Company in General
Meeting or by Board of Directors and also subject to such conditions or restriction imposed by
the Act or by these presents.
(b) Without prejudice to the generality of the foregoing and subject to the supervision and control
of the Board of Directors, the business of the Company shall be carried on by the Managing
Director/ Whole time Director and they shall have all the powers except those which are by
law or by these presents or by any resolution of the Board required to be done by the Company
in General Meeting or by the Board.
(c) The Board may, from time to time delegate to the Managing Director or Whole time Director
such powers and duties and subject to such limitations and conditions as they may deem fit.
The Board may from time to time revoke, withdraw, alter or vary all or any of the powers
conferred on the Managing Director or Whole time Director by the Board or by these presents.
COMMON SEAL
88. Custody of Common Seal
The Board shall provide for the safe custody of the Common Seal for the Company and they shall have
power from time to time to destroy the same and substitute a new seal in lieu thereof; and the Common
Seal shall be kept at the Registered Office of the Company and committed to the custody of the
Managing Director or the Secretary if there is one.
89. Seal how affixed
The seal shall not be affixed to any instrument except by authority of a resolution of the Board or a
committee of the Board authorised by it in that behalf, and except in the presence of at least one
Director or of the secretary or such other person as the Board may appoint for the purpose except for
the purpose of executing the share certificate. Every deed or other instrument to which the seal is
required to be affixed shall, unless the same is executed by a duly constituted attorney for the
Company, be signed by that Director or the secretary or such other person aforesaid in whose presence
the seal shall have been affixed provided nevertheless that any instrument bearing the seal of the
Company and issued for valuable consideration shall be binding on the Company notwithstanding any
irregularity touching the authority issuing the same.
DIVIDENDS
90. Right to dividend
(a) The profits of the Company, relating thereto created or authorised to be created by these
presents and subject to the provisions of the presents as to the Reserve Fund, shall be divisible
among the members in proportion to the amount of capital paid up on the shares held by them
respectively and the last day of the year of account in respect of which such dividend is
declared and in the case of interim dividends on the close of the last day of the period in
respect of which such interim dividend is paid.
(b) Where capital is paid in advance of calls, such capital shall not, confer a right to participate in
the profits.
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91. Declaration of Dividends
The Company in General Meeting may declare dividends but no dividend shall exceed the amount
recommended by the Board.
92. Interim Dividends
The Board may from time to time pay to the members such interim dividends as appear to them to be
justified by the profits of the Company.
93. Dividends to be paid out of profits
No dividend shall be payable except out of the profits of the year or any other undistributed profits
except as provided by Section 205 of the Act.
94. Dividend warrant
Any dividend payment in cash in respect of a share may be paid by cheque or warrant or demand draft
sent through the post to the registered address of the holder or in the case of joint holders to the
registered address of the holder who is first named in the register and every cheque or warrant shall be
made payable to the order of the person to whom it is sent.
95. Reserve Funds
(a) The Board may, before recommending any dividends, set aside out of the profits of the
Company such sums as it thinks proper as a reserve or reserves which shall at the discretion of
the Board, be applied for any purpose to which the profits of the Company may be properly
applied, including provision for meeting contingencies or for equalising dividends and pending
such application, may, at the like discretion either be employed in the business of the
Company or be invested in such investments (other than shares of the Company) as the Board
may, from time to time think fit.
(b) The Board may also carry forward any profits when it may think prudent not to appropriate to
Reserves.
96. Deduction of arrears
The Board may deduct from any dividend payable to any members all sums of money, if any, presently
payable by him to the Company on account of the calls or otherwise in relation to the shares of the
Company.
97. Adjustment of dividends against calls
Any General Meeting declaring a dividend may make a call on the members as such amount as the
meeting fixed, but so that the call on each member shall not exceed the dividend payable to him and so
that the call be made payable at the same time as the dividend and the dividend may, if so arranged
between the Company and the members be set off against the call.
98. Receipt of joint holder
Any one of two or more joint holders of a share may give effectual receipt for any dividends, or other
moneys payable in respect of such shares.
99. Notice of dividends
Notice of any dividend that may have been declared shall be given to the persons entitled to share
thereto in the manner mentioned in the Act.
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100. Dividends not to bear interest
No dividends shall bear interest against the Company.
101. Transfer of shares not to pass right to dividends
Subject to the provisions of Section 206 A of the Act, any transfer of shares shall not pass the right to
any dividend declared thereon before the registration of the transfer.
102. Unpaid or Unclaimed Dividend
(a) Where the Company has declared a dividend but which has not been paid or claimed or the
dividend warrant in respect thereof has not been posted within 30 days from the date of
declaration, the Company shall transfer the total amount of dividend which remains unpaid or
unclaimed within 7 days from the expiry of the said period of 30 days, to a special account to
be opened by the Company in that behalf in any scheduled bank.
(b) Any money transferred to the unpaid dividend account of the Company which remains unpaid
or unclaimed for a period of seven years from the date of such transfer, shall be transferred by
the Company to the Fund known as Investors Education And Protection Fund established
under section 205C of the Act. A claim to any money so transferred to the account may be
preferred to the Central Government by the shareholders to whom the money is due.
(c) No unclaimed or unpaid dividend shall be forfeited by the Board.
There shall be no forfeiture of unclaimed dividends before the claim becomes barred by law and the
Company shall comply with all the provisions of Section 205A of the Act in respect of unpaid or
unclaimed divided.
CAPITALISATION OF PROFITS
103. Capitalisation of Profits
(a) The Company in General Meeting, may, on recommendation of the Board resolve:
(i) That it is desirable to capitalise any part of the amount for the time being standing to
the credit of the Company’s reserve accounts or to the credit of the profit and loss
account or otherwise available for distribution; and
(ii) That such sum be accordingly set free for distribution in the manner specified in the
sub-clause (b) amongst the members who would have been entitled thereto if
distributed by way of dividend and in the same proportion.
(b) The sum aforesaid shall not be paid in cash but shall be applied, either in or towards:
(i) Paying up any amounts for the time being unpaid on shares held by such members
respectively
(ii) Paying up in full, unissued share of the Company to be allotted and distributed,
credited as fully paid up, to and amongst such members in the proportions aforesaid;
or
(iii) Partly in the way specified in sub-clause (i) and partly that specified in sub clause (ii).
(c) The Board shall give effect to the resolution passed by the Company in pursuance of this
regulation.
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(d) A share premium account and a capital redemption reserve account may, only be applied in the
paying up of unissued shares to be issued to members of the Company as fully paid bonus
shares.
104. Power of Directors for declaration of bonus issue
(a) Whenever such a resolution as aforesaid shall have been passed, the Board shall:
(i) make all appropriations and applications of the undivided profits resolved to be
capitalised thereby and all allotments and issues of fully paid shares, if any, and
(ii) generally do all acts and things required to give effect thereto.
(b) The Board shall have full power:
(i) to make such provisions, by the issue of fractional certificates or by payments in cash
or otherwise as it thinks fit, in the case of shares or debentures becoming distributable
in fraction; and also
(ii) to authorise any person, on behalf of all the members entitled thereto, to enter into an
agreement with the Company providing for the allotment to such members, credited
as fully paid up, of any further shares or debentures to which they may be entitled
upon such capitalisation or (as the case may require) for the payment of by the
Company on their behalf, by the application thereto of their respective proportions of
the profits resolved to be capitalised of the amounts or any parts of the amounts
remaining unpaid on their existing shares.
(c) Any agreement made under such authority shall be effective and binding on all such members.
ACCOUNTS
105. Books of Account to be kept
(a) The Board of Directors shall cause true accounts to be kept of all sums of money received and
expended by the Company and the matters in respect of which such receipts and expenditure
takes place, of all sales and purchases of goods by the Company, and of the assets, credits and
liabilities of the Company.
(b) If the Company shall have a Branch Office, whether in or outside India, proper books of
account relating to the transactions effected at the office shall be kept at that office, and proper
summarised returns made up to date at intervals of not more than three months, shall be sent
by Branch Office to the Company at its registered office or to such other place in India, as the
Board thinks fit where the main books of the Company are kept.
(c) All the aforesaid books shall give a fair and true view of the affairs of the Company or of its
Branch Office, as the case may be with respect to the matters aforesaid, and explain its
transactions.
106. Where Books of accounts to be kept
The Books of Account shall be kept at the Registered Office or at such other place in India as the
Directors think fit.
107. Inspection by Members
No member (not being a Director) shall have any right of inspecting any account or books or
documents of the Company except as conferred by statute.
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108. Boards Report to be attached to Balance Sheet
(a) Every Balance Sheet laid before the Company in General Meeting shall have attached to it a
report by the Board of Directors with respect to the state of the Company’s affairs, the
amounts if any, which it proposes to carry to any Reserves in such Balance Sheet; and the
amount, if any which it recommends to be paid by way of dividend, material changes and
commitments, if any, effecting the financial positions of the Company which have occurred
between the end of the financial year of the Company to which the Balance Sheet related and
the date of report.
(b) The report shall, so far as it is material for the appreciation of the state of the Company’s
affairs by its members and will not in the Board’s opinion be harmful to the business of the
Company or any of its subsidiaries deal with any changes which have occurred during the
financial year in the nature of the Company’s business, or in the Company’s subsidiaries or in
nature of the business carried on by them and generally in the classes of business in which the
Company has an interest.
(c) The Boards Report shall also include a statement showing the name of every employee of the
Company who was in receipt of such sum as remuneration as may be prescribed by the Act or
the Central Government from time to time during the year to which the Report pertains.
(d) The Board shall also give the fullest information and explanation it its report in cases falling
under the proviso to Section 222 on every reservation, qualification or adverse remark
contained in the auditors Report.
(e) The Board shall have the right to charge any person being a Director with a duty of seeing that
the provisions of sub-clauses (a) to (c) of this Article are complied with.
AUDIT
109. Accounts to be audited
Every Balance Sheet and Profit & Loss Account shall be audited by one or more Auditors to be
appointed as hereinafter set out.
(a) The Company at the Annual General Meeting in each year shall appoint an Auditor or
Auditors to hold office from the conclusion of that meeting until conclusion of the next
Annual General Meeting and every Auditor so appointed shall be intimated of his appointment
within seven days.
(b) Where at an Annual General Meeting, no Auditors are appointed, the Central Government
may appoint a person to fill the vacancy.
(c) The Company shall within seven days of the Central Government’s power under sub clause (b)
becoming exercisable, give notice of that fact to the Government.
(d) The Directors may fill any casual vacancy in the office of an Auditor but while any such
vacancy continues, the remaining auditors (if any) may act. Where such a vacancy is caused
by the resignation of an Auditor, the vacancy shall only be filled by the Company in General
Meeting.
(e) A person, other than a retiring Auditor, shall not be capable of being appointed at an Annual
General Meeting unless special notice of a resolution of appointment of that person to the
office of Auditor has been given by a member to the Company not less than fourteen days
before the meeting in accordance with Sec. 190 and the Company shall send a copy of any
such notice to the retiring Auditor and shall give notice thereof to the members in accordance
with provisions of Sec. 190 and all the other provision of Section 225 shall apply in the matter.
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The provisions of this sub-clause shall also apply to a resolution that a retiring Auditor shall
not be re-appointed.
(f) The persons qualified for appointment as Auditors shall be only those referred to in Section
226 of the Act.
(g) None of the persons mentioned in Sec. 226 of the Act as are not qualified for appointment as
Auditors shall be appointed as Auditors of the Company.
110. Audit of Branch Offices
The Company shall comply with the provisions of the Act in relation to the audit of the accounts of
Branch Offices of the Company.
111. Remuneration of Auditors
The remuneration of the Auditors shall be fixed by the Board as authorised in General Meeting from
time to time.
AUTHENTICATION OF DOCUMENTS
112. Authentication of documents and proceedings
Save as otherwise expressly provided in the Act or these Articles, a document or proceeding requiring
authentication by the Company may be signed by a Director, the Managing Director, the Manager, the
Secretary or an authorised officer of the Company and need not be under its seal.
WINDING UP
113. Application of assets
Subject to the provisions of the Act as to preferential payment the assets of the Company shall, on its
winding up, be applied in satisfaction of its liabilities pari passu and, subject to such application shall
be distributed among the members according to their rights and interests in the Company.
114. Division of assets of the Company in specie among members
If the Company shall be wound up whether voluntarily or otherwise, the liquidators may with sanction
of a special resolution divide among the contributories in specie or kind any part of the assets of the
Company and any with like sanction vest any part of the assets of the Company in trustees upon such
trusts for the benefit of the contributories of any of them, as the liquidators with the like sanction shall
think fit, in case any share to be divided as aforesaid involve as liability to calls or otherwise any
persons entitled under such division to any of the said shares may within ten days after the passing of
the special resolution by notice in writing, direct the liquidators to sell his proportion and pay them the
net proceeds, and the liquidators shall, if practicable, act accordingly.
SECRECY CLAUSE
115. Secrecy
No member shall be entitled to inspect the Company’s works at its branch offices, regional offices or
such other offices of the Company, without the permission of the Managing Director or to require
discovery of any information respectively any detail of the Company’s trading or any matter which is
or may be in the nature of a trade secret, history of trade or secret process which may be related to the
conduct of the business of the Company and which in the opinion of the Managing Director it will be
inexpedient in the interest of the members of the Company to communicate to the public.
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116. Duties of Officers to observe secrecy
Every Director, Managing Directors, Manager, Secretary, Auditor, Trustee, Members of Committee,
Officer, Servant, Agent, Accountant or other persons employed in the business of the Company shall, if
so required by the Director before entering upon his duties, or any time during his term of office, sign a
declaration pledging himself to observe secrecy relating to all transactions of the Company and the state
of accounts and in matters relating thereto and shall by such declaration pledge himself not to reveal
any of such matters which may come to his knowledge in the discharge of his official duties except
which are required so to do by the Directors or any meeting or by a Court of Law and except so far as
may be necessary in order to comply with any of the provision of these Articles or law.
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MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION
The following contracts which are or may be deemed material have been entered or are to be entered into by
the Company. These contracts and also the documents for inspection referred to hereunder, may be
inspected at the Registered Office of the Company situated at Muthoot Chambers, 2nd Floor, Opposite
Saritha Theatre Complex, Banerji Road, Ernakulam, Kerala 682 018 from 10.00 AM to 5.00 P.M during
which the issue is open for public subscription under the respective Tranche Prospectus
A. Material Contracts
1. Engagement Letters dated February 23, 2018 received from the Company appointing
Edelweiss Financial Services Limited and A. K. Capital Services Limited as the Lead
Managers respectively.
2. Issue Agreement dated March 12, 2018 between the Company and Edelweiss Financial
Services Limited and A.K. Capital Services Limited.
3. Memorandum of Understanding dated March 12, 2018 with the Registrar to the Issue.
4. Debenture Trustee Agreement dated March 12, 2018 executed between the Company and the
Debenture Trustee.
5. Tripartite agreement between the Company, Registrar to the Issue and CDSL dated
December 08, 2010 and letter of extension dated March 14, 2011.
6. Tripartite agreement between the Company, Registrar to the issue and NSDL dated
August 25, 2006.
7. The agreed form of the Debenture Trustee Deed to be executed between the Company and the
Debenture Trustee.
B. Material Documents
1. Certificate of Incorporation of the Company dated March 14, 1997, issued by Registrar of
Companies, Kerala and Lakshadweep.
2. Memorandum and Articles of Association of the Company.
3. The certificate of registration No. N.16.00167 dated December 12, 2008 issued by Reserve
Bank of India u/s 45 IA of the Reserve Bank of India, 1934.
4. Credit rating letter dated March 07, 2018 from CRISIL granting credit ratings to the Secured
NCDs.
5. Credit rating letter dated March 06, 2018 from ICRA granting credit ratings to the Secured
NCDs.
6. Copy of the NCD Public Issue Committee Resolution dated February 21, 2018 approving the
Issue.
7. Copy of resolution passed by the NCD Public Issue Committee dated March 12, 2018
approving the Draft Shelf Prospectus.
8. Copy of the resolution passed by the Board of Directors dated February 13, 2017 approving
the issuance to the public of Secured NCDs and Unsecured NCDs of face value of ` 1,000
each, aggregating up to ` 50,000 million.
9. Resolution passed by the shareholders of the Company at the Annual General Meeting held on
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September 25, 2014, approving the overall borrowing limit of Company.
10. Consents of the Directors, Lead Managers to the Issue, Lead Brokers, Chief Financial Officer,
Company Secretary and Compliance Officer of our Company, Debenture Trustee, Statutory
Auditor, Credit Rating Agencies for the Issue, Legal Advisor to the Issue, Bankers to the Issue
and the Registrar to the Issue, to include their names in this Draft Shelf Prospectus.
11. The consent of the Statutory Auditors of our Company, namely Varma & Varma for inclusion
of: (a) their names as the Statutory Auditors, (b) examination reports on Reformatted
Summary Financial Statements in the form and context in which they appear in this Draft
Shelf Prospectus; (c) the statement of tax benefits available to the debenture holders in the
form and context in which they appear in this Draft Shelf Prospectus; and (d) report on limited
review of unaudited standalone financials for the nine months ended December 31, 2017,
unaudited standalone financials for the six months ended September 30, 2017 and unaudited
standalone financial statements for the quarter ended June 30, 2017 which was reviewed by
M/s. Rangamani & Co.
12. The examination report of the Statutory Auditors dated February 21, 2018 in relation to the
Reformatted Summary Financial Statements included herein.
13. Annual Reports of the Company for the last five Financial Years 2012-13 to 2016-17.
14. Due Diligence certificate dated filed by the Lead Managers with SEBI.
15. In-principle approval, dated for the Issue issued by the BSE.
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DECLARATION
we, the Dircctors ofthe company, certify that all the relevant provisions ofthe companies Act, 1956/Companies
e.ct,zot:, as applicable on the date ofthis Draft shelf Prospectus and the guidelines issued by the -Govemment of
3 ofthe
inaiu o, tL. guiielines issued by the Secu ties and Exchange Board of India established under Section
Securities and-Exchange Board of India Act, I 992, as the case may be, have been complied
with. We further certiry that
Act,
the disclosures made in this Draft Shelf Prospectus are true and correct and in conformity with the Companies
t 956 and the relevant provisions of the Companies Act, 2013 to the extent applicable
as on the date of this Draft
Shelf prospectus, Scheiule t of SEBI (tssue tnd Listing of Debt Securities) Regulations, 2008, the Securities and
Exchange board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956 and the Listing Agreement to
be executed with the stock exchanges, and no statement made in this Draft Shelf Prospectus is contrary to the
provisions ofthe Companies Act, 1956 and the relevant provisions ofthe Companies Act,20l3 applicable as on the date
ofthir O*ft Shrlfprospectus, the Securities Contracts (Regulation) Act, 1956 or the Securities and Exchange Board
oflndia Act, 1992 or rules, guidelines and circulars issued thereunder.
SIGNED BY ALL DIRECTORS:
M. G. George Muthoot
Whole Time Director and Chairman
George Thomas Muthoot

Whole Time Director
George Jacob Muthoot

Whole Time Director
Ceorge Alexander Muthoot

Managing Director
Alexander M. George
Whole Time Director
K. Ueorge Jonn
Independent Director
Jacob Benjamin Koshy

John K Paul
lndependent Director
lr I'
George Joseph
lndependent Director
Pamela Anna Mathew

/*ql
Y7--r''-
Jose Mathew
Independent Direclor
Date: lL- 03- 2o l*

Place: Kochi, India
ICRA GRADING LETTER
[APPENDED OVERLEAF]
ICRA RATING RATIONALE
January 22, 2018
Summary of rated instruments

Current Rated
Instrument Amount Rating Action
(Rs. crore)
Non-convertible debenture programme (public placement) 1,949.20 [ICRA]AA (Stable); Assigned
Non-convertible debenture programme (public placement) - unallocated 1,050.80 [ICRA]AA(stable); outstanding
Sub-total – 1 3,000.00
Non-convertible debenture programme (private placement) 300.00 [ICRA]AA (Stable); Assigned

Non-convertible debenture programme (private placement) - unallocated 200.00 [ICRA]AA(stable); outstanding
Sub-total – 2 500.00
Non-convertible debenture programme 475.10 [ICRA]AA(stable); withdrawn

Term loans 200.00 [ICRA]AA(stable); outstanding
Long-term fund based bank limits 9,737.00^ [ICRA]AA(stable); outstanding
Short-term fund based bank limits 12,563.00^ [ICRA]A1+; outstanding
Non-convertible debenture programme (public placement) 4,150.54 [ICRA]AA(stable); outstanding
Subordinated debt programme 551.36 [ICRA]AA(stable); outstanding
Commercial paper programme 4,000.00 [ICRA]A1+; outstanding
Sub-total – 3 22,216.9
Total (1 + 2 + 3) 25,716.90
^Long-term and short-term fund based bank limits include an interchangeable limit of Rs. 8,985.00 crore. The total rated bank facilities stand at Rs.
13,515.00 crore.
Rating action
ICRA has assigned a long -term rating of [ICRA]AA (pronounced ICRA double A) to the Rs. 2,249.20 crore1 non convertible
debenture programme of Muthoot Finance Limited (MFL)2. The outlook on the rating is ‘Stable’. ICRA has withdrawn the
rating of [ICRA]AA with stable outlook outstanding on the Rs. 475.10 crore non convertible debenture programme, as the
company has fully repaid the rated instrument and there is no amount outstanding against the rated instrument.
ICRA has rating outstanding of [ICRA]AA for the Rs. 200.00 crore term loans, the Rs. 9,737.00 crore long-term fund based
bank facilities, the Rs. 5,401.34 crore non-convertible debenture programme and the Rs. 551.36 crore subordinated debt
programme of MFL. ICRA also has rating outstanding of [ICRA]A1+ (pronounced ICRA A one plus) on the Rs. 12,563.00
crore short-term fund based bank facilities and the Rs. 4,000 crore commercial paper programme of MFL. The long-term
and short-term fund based bank limits include an interchangeable limit of Rs. 8,985.00 crore and the total rated bank
facilities of the company stand at Rs. 13,515.00 crore.
1
100 lakh = 1 crore = 10 million
2
For complete rating scale and definitions, please refer to ICRA's website www.icra.in or other ICRA Rating Publications
1
Rationale
The assigned rating factors in the company’s long standing track record and its leadership position in the niche gold loan
segment, its established franchise with a pan-India branch network, and its efficient internal controls and audit systems.
The rating also takes into account the company’s ability to raise funds from diverse sources resulting in an adequate
liquidity profile, its comfortable capitalisation, and good profitability indicators.
The rating is however constrained by the company’s portfolio concentration in the gold loan business, its geographical
concentration with a major portion of the portfolio in South India, and the vulnerability of operations to adverse gold
price fluctuations. The rating also factors in the company’s marginal borrower profile and limited earnings diversity. ICRA
takes note of the increase in company’s delinquency levels during the current fiscal and it is critical to ensure collections
from overdue portfolio in the near term and maintain good asset quality going forward.
Outlook: Stable
ICRA believes that MFL will continue to benefit from its long standing presence and good knowledge of the gold loan
segment. The outlook may be revised to ‘Positive’ with a steady improvement in portfolio diversity on a consolidated
basis along with revival in the gold loan segment’s growth and asset quality. The outlook may be revised to ‘Negative’ in
case of a significant deterioration in the company’s asset quality, profitability and capitalisation profile.
Key rating drivers
Credit strengths
Established franchise and market leadership in the niche gold loan segment – MFL has around two decades of track
record in the gold loan business and is India’s largest gold loan focused NBFC with a total portfolio of Rs. 27,608 crore (of
which 99.7% is gold loan) as on September 30, 2017. The company operates through an extensive pan-India branch
network of 4,287 as on September 30, 2017 and has 62% of its branches in South India, where it enjoys a good franchise.
The strong brand value of ‘Muthoot’, the company’s experienced promoters and senior management team and its
efficient internal controls and audit systems are expected to support its overall business growth going forward.
Credit risk profile supported by stable regulatory environment and tighter interest collections – The various regulatory
changes over the past few years, especially the capping of LTV ratio at 75% have added stability to the gold loan
business. While the pace of growth in this segment had moderated pursuant to these regulations, the regulations have
led to more stable and sustainable business volumes. MFL’s portfolio grew at a CAGR of 7.7% during FY2015 to FY2017
vis-à-vis 52.5% during FY2011 to FY2013. The portfolio grew by modest 2.4% (annualised) during H1FY2018 (11.9%
during FY2017) and the company targets a growth of 10% p.a. going forward.
Since early FY2017, the company has been encouraging its customers to pay interests on a regular basis vis-à-vis bullet
payments in the past by closely following-up with customers and offering incentives for regular interest payments.
Regular interest collections offset the risks on account of gold price volatility to an extent and improve MFL’s overall
credit risk profile. They also support the company’s liquidity profile and result in better business yields.
The company’s 90+ dpd increased from 2.5% as on March 31, 2017 to 7.0% as on September 30, 2017, partly on account
of relaxed overdue collections in the six month loan product (which was introduced during FY2017 and accounted for
29% of the company’s total portfolio as on September 30, 2017), the residual impact of demonetisation, which is
resulting in some delay in scheduled redemptions and overall subdued business environment for small businesses to
have some impact on the near term asset quality. While the auctioning as a % of opening portfolio reduced from 14.2%
in FY2016 to 3.7% in FY2017, it again increased to 4.2% during H1FY2018. Going forward, timely auctioning and a stable
gold price therefore would be crucial for keeping the credit costs under control.
2
Capitalisation to remain comfortable over the medium term, notwithstanding the investments required for its
subsidiaries – MFL has a comfortable capitalisation with a standalone gearing of 3.1 times as on September 30, 2017
(consolidated gearing at 3.2 times) aided by good internal capital generation. MFL is expected to be comfortably placed
to meet the medium term capital requirements of its subsidiaries without adversely impacting its own capital structure.
Healthy profitability indicators– The company on account of regular interest collections has been able to improve its
business yields, as the extent of interest reversals were lower than in the past. This along with the moderation in the cost
of funds has improved the net interest margins from 11.6% in FY2017 (9.5% in FY2016) to 12.6% in H1FY2018. MFL’s
operating efficiency (operating expenses / average assets) improved from 4.3% in FY2017 (4.2% in FY2016) to 3.9% in
H1FY2018. The credit provisions however increased to 1.0% during FY2017 (0.6% during FY2016) with the creation of a
gold price fluctuation provision during the year, which stood at 0.9% of the total standard portfolio as on September 30,
2017; credit provisioning stood at 0.8% for H1FY2018. MFL’s return on average assets was healthy at 4.1% for FY2017
(3.0% for FY2016) and 5.1% in H1FY2018. The company’s ability to keep asset quality and credit cost under control would
be crucial for incremental profitability.
Comfortable liquidity with a diversified funding profile – MFL has a fairly diversified funding profile, with bank loans
constituting 46% of its total borrowings as on September 30, 2017, followed by debentures (29%), commercial papers
(15%) and subordinated debt (7%). The diverse funding sources have supported the company’s growth, while
maintaining a comfortable liquidity position. The company also maintains sizeable unutilised bank lines (~Rs.3,100 crore
as on September 30, 2017) which further support its liquidity position.
Credit challenges
Vulnerability to adverse gold price movement – Notwithstanding the company’s efforts to reduce the impact of gold
price fluctuations, MFL’s credit profile remains susceptible to adverse and sharp movements in gold prices. Any steep
decline in gold prices is expected to adversely impact the company’s asset quality and business profile.
Limited product and revenue diversification – MFL’s standalone portfolio almost entirely consists of gold loans and its
consolidated portfolio is also concentrated with gold loans comprising 93% of the loan book as on September 30, 2017.
MFL’s revenue diversification is also modest with non-interest income / average total assets at 0.2-0.3% during the past
three fiscals. ICRA takes note of the growth targets for MFL’s subsidiaries over the next two fiscals, which are expected to
reduce the share of gold loans to 85% by March 2019. The company’s ability to grow its non-gold business at an optimal
pace while maintaining good asset quality and profitability profile would be crucial.
Among MFL’s four subsidiaries, Muthoot Homefin (India) Limited (wholly owned subsidiary; rated [ICRA]AA-(stable) /
[ICRA]A1+) provides affordable housing finance and Belstar Investment and Finance Private Limited (64.6% subsidiary;
rated [ICRA]A(stable) / [ICRA]A1) is an NBFC-MFI; both having steep portfolio growth targets for the next 2-3 years. The
other two subsidiaries of MFL are Muthoot Insurance Brokers Private Limited (wholly owned subsidiary) which
distributes insurance products and Asia Asset Finance PLC (60% subsidiary based in Sri Lanka) which is engaged in leasing
and other loans.
Operations concentrated in South India – MFL’s operations are largely concentrated in South India, which constituted
62% of its total branch network and 50% of its total loan portfolio as on September 30, 2017. ICRA however notes that
the share of portfolio in South India has reduced from 69% in March 2012.
Analytical approach: For arriving at the ratings, ICRA has applied its rating methodologies as indicated below.
3
Links to applicable criteria:
ICRA’s Credit Rating Methodology for Non-Banking Finance Companies
About the company:

Muthoot Finance Ltd (MFL) is the flagship company of the Kerala based business house ‘The Muthoot Group’, which has
diversified operations in financial services, healthcare, real estate, education, hospitality, power generation and
entertainment. MFL was incorporated on 1997 and is the India’s largest gold loan focused NBFC with total advances of
Rs. 27,608 crore and 4,287 branches as on September 30, 2017. The company derives a major proportion of its business
from South India (50% of total portfolio as on September 30, 2017) where gold loans have traditionally been accepted as
means of availing short term credit, although over the past few years the company has increased its presence beyond
South India.
MFL achieved a standalone net profit of Rs. 805 crore (unaudited) on an asset base of Rs. 32,447 crore during H1FY2018
against a net profit of Rs. 567 crore on an asset base of Rs. 30,547 crore during H1FY2017.
Key financial indicators (audited)

FY 2016 FY 2017
Total Income 4,875 5,747
Profit after Tax 810 1,180
Net worth 5,619 6,516
Total Managed Portfolio 24,379 27,279
Total Managed Assets 27,049 30,713
Return on Average Managed Assets 3.0% 4.1%

Return on Average Net worth 15.1% 19.4%
Gross NPA % 2.9% (based on 150+ dpd) 2.1% (based on 150+ dpd)
Net NPA % 2.5% 1.7%
Net NPA / Net worth 10.7% 7.1%
Gearing 3.7 3.5

% CRAR 24.5% 24.9%
Status of non-cooperation with previous CRA: Not applicable
Any other information: None
4
Rating history for last three years:
Chronology of Rating History for the
Current Rating (FY2018) past 3 years
Date & Date & Date &
Amount Date & Rating Rating in Rating in Rating in
Rated Amount FY2017 FY2016 FY2015
(Rs. Outstanding January October August February February
Instrument Type crore) (Rs Crore) 2018 2017 2016 2016 2015
1 Long-term Long [ICRA]AA [ICRA]AA [ICRA]AA [ICRA]AA- [ICRA]AA-
7,650.54 7,650.54
Debentures Term (Stable) (Stable) (Stable) (Stable) (Stable)
2 Subordinated Long [ICRA]AA [ICRA]AA [ICRA]AA- [ICRA]AA-
551.36 551.36 -
Debt term (Stable) (Stable) (Stable) (Stable)
3 Long [ICRA]AA [ICRA]AA [ICRA]AA- [ICRA]AA-
Term Loans 200.00 200.00 -
Term (Stable) (Stable) (Stable) (Stable)
4 Fund Based Long [ICRA]AA [ICRA]AA [ICRA]AA- [ICRA]AA-
9,737.00 9,737.00 -
Bank Limits^ Term (Stable) (Stable) (Stable) (Stable)
5 Funds Based Short
12,563.00 12,563.00 - [ICRA]A1+ [ICRA]A1+ [ICRA]A1+ [ICRA]A1+
Bank Limits^ Term
6 Commercial Short
4,000.00 4,000.00 - [ICRA]A1+ [ICRA]A1+ [ICRA]A1+ [ICRA]A1+
Paper Term
^Long-term and short-term fund based bank limits include an interchangeable limit of Rs. 8,985.00 crore. The total rated bank facilities stand at Rs.
13,515.00 crore.
Complexity level of the rated instrument:

ICRA has classified various instruments based on their complexity as "Simple", "Complex" and "Highly Complex". The
classification of instruments according to their complexity levels is available on the website www.icra.in
Annexure-1: Instrument Details

Date of Amount
Maturity Current Rating
ISIN No. Instrument Name Issuance / Coupon Rate Rated
Date and Outlook
Sanction (Rs. crore)
INE414G07241 Non-convertible Debentures 1-Nov-12 N.A 1-Nov-18 18.22 [ICRA]AA(stable)
INE414G07274 Non-convertible Debentures 25-Sep-13 11.50 25-Sep-18 1.54 [ICRA]AA(stable)
INE414G07308 Non-convertible Debentures 25-Sep-13 12.00 25-Sep-18 2.39 [ICRA]AA(stable)
INE414G07340 Non-convertible Debentures 25-Sep-13 N.A 25-Sep-18 1.25 [ICRA]AA(stable)
INE414G07373 Non-convertible Debentures 4-Dec-13 10.75 & 11.50 4-Dec-18 1.37 [ICRA]AA(stable)
INE414G07449 Non-convertible Debentures 4-Dec-13 N.A 4-Dec-18 1.33 [ICRA]AA(stable)
INE414G07472 Non-convertible Debentures 4-Feb-14 10.75 & 11.50 4-Feb-19 1.03 [ICRA]AA(stable)
INE414G07506 Non-convertible Debentures 4-Feb-14 11.25 & 12.00 4-Feb-19 1.63 [ICRA]AA(stable)
INE414G07548 Non-convertible Debentures 4-Feb-14 N.A 4-Feb-19 1.13 [ICRA]AA(stable)
INE414G07571 Non-convertible Debentures 2-Apr-14 10.25 & 11.00 2-Apr-19 0.69 [ICRA]AA(stable)
INE414G07647 Non-convertible Debentures 2-Apr-14 N.A 2-Apr-19 0.27 [ICRA]AA(stable)
INE414G07670 Non-convertible Debentures 4-Jul-14 10.25 & 11.00 4-Jul-19 2.88 [ICRA]AA(stable)
INE414G07704 Non-convertible Debentures 4-Jul-14 10.75 & 11.50 4-Jul-19 3.22 [ICRA]AA(stable)
INE414G07746 Non-convertible Debentures 4-Jul-14 N.A 4-Jul-19 1.86 [ICRA]AA(stable)
INE414G07779 Non-convertible Debentures 26-Sep-14 10.25 & 11.00 26-Sep-19 3.00 [ICRA]AA(stable)
5
Date of Amount
Date and Outlook
INE414G07803 Non-convertible Debentures 26-Sep-14 10.50 & 11.25 26-Sep-19 1.72 [ICRA]AA(stable)
INE414G07845 Non-convertible Debentures 26-Sep-14 N.A 26-Sep-19 1.56 [ICRA]AA(stable)
INE414G07878 Non-convertible Debentures 29-Dec-14 10.00& 10.75 29-Dec-19 2.69 [ICRA]AA(stable)
INE414G07944 Non-convertible Debentures 29-Dec-14 N.A 29-Dec-19 2.23 [ICRA]AA(stable)
INE414G07AA9 Non-convertible Debentures 23-Apr-15 9.75 & 10.50 23-Apr-20 2.38 [ICRA]AA(stable)
INE414G07AD3 Non-convertible Debentures 23-Apr-15 N.A 23-Apr-18 29.11 [ICRA]AA(stable)
INE414G07AE1 Non-convertible Debentures 23-Apr-15 N.A 23-Apr-20 1.27 [ICRA]AA(stable)
INE414G07AG6 Non-convertible Debentures 14-Oct-15 9.25 & 10.00 14-Oct-18 142.92 [ICRA]AA(stable)
INE414G07AH4 Non-convertible Debentures 14-Oct-15 8.75 & 9.50 14-Oct-20 1.15 [ICRA]AA(stable)
INE414G07AJ0 Non-convertible Debentures 14-Oct-15 9.50 & 10.25 14-Oct-18 76.83 [ICRA]AA(stable)
INE414G07AK8 Non-convertible Debentures 14-Oct-15 9.00 & 9.75 14-Oct-20 0.98 [ICRA]AA(stable)
INE414G07AN2 Non-convertible Debentures 14-Oct-15 N.A 14-Oct-18 54.58 [ICRA]AA(stable)
INE414G07AO0 Non-convertible Debentures 14-Oct-15 N.A 14-Oct-20 1.07 [ICRA]AA(stable)
INE414G07BA7 Non-convertible Debentures 12-May-16 9.25 & 8.50 12-May-18 35.56 [ICRA]AA(stable)
INE414G07BB5 Non-convertible Debentures 12-May-16 9.50 & 8.75 12-May-19 141.85 [ICRA]AA(stable)
INE414G07BC3 Non-convertible Debentures 12-May-16 9.00 & 8.25 12-May-21 1.75 [ICRA]AA(stable)
INE414G07BD1 Non-convertible Debentures 12-May-16 9.50 & 8.75 12-May-18 46.07 [ICRA]AA(stable)
INE414G07BE9 Non-convertible Debentures 12-May-16 9.75 & 9.00 12-May-19 99.98 [ICRA]AA(stable)
INE414G07BF6 Non-convertible Debentures 12-May-16 9.25 & 8.50 12-May-21 1.26 [ICRA]AA(stable)
INE414G07BI0 Non-convertible Debentures 12-May-16 N.A 12-May-18 24.25 [ICRA]AA(stable)
INE414G07BJ8 Non-convertible Debentures 12-May-16 N.A 12-May-19 60.41 [ICRA]AA(stable)
INE414G07BO8 Non-convertible Debentures 30-Jan-17 8.75 & 8.50 30-Jan-19 5.21 [ICRA]AA(stable)
INE414G07BP5 Non-convertible Debentures 30-Jan-17 9.00 & 8.75 30-Jan-20 26.43 [ICRA]AA(stable)
INE414G07BQ3 Non-convertible Debentures 30-Jan-17 9.00 & 8.75 30-Jan-22 11.13 [ICRA]AA(stable)
INE414G07BR1 Non-convertible Debentures 30-Jan-17 9.00 & 8.75 30-Jan-19 282.20 [ICRA]AA(stable)
INE414G07BS9 Non-convertible Debentures 30-Jan-17 9.25 & 9.00 30-Jan-20 839.27 [ICRA]AA(stable)
INE414G07BT7 Non-convertible Debentures 30-Jan-17 9.25 & 9.00 30-Jan-22 82.50 [ICRA]AA(stable)
INE414G07BU5 Non-convertible Debentures 30-Jan-17 N.A 6-Mar-18 29.67 [ICRA]AA(stable)
INE414G07BV3 Non-convertible Debentures 30-Jan-17 N.A 30-Jul-18 1.36 [ICRA]AA(stable)
INE414G07BW1 Non-convertible Debentures 30-Jan-17 N.A 30-Jan-19 5.03 [ICRA]AA(stable)
INE414G07BX9 Non-convertible Debentures 30-Jan-17 N.A 30-Jan-20 17.20 [ICRA]AA(stable)
INE414G07BY7 Non-convertible Debentures 24-Apr-17 8.25 24-Apr-19 45.28 [ICRA]AA(stable)
INE414G07BZ4 Non-convertible Debentures 24-Apr-17 8.50 24-Jun-20 68.68 [ICRA]AA(stable)
INE414G07CA5 Non-convertible Debentures 24-Apr-17 8.75 24-Apr-22 61.18 [ICRA]AA(stable)
INE414G07CB3 Non-convertible Debentures 24-Apr-17 8.50 24-Apr-19 74.25 [ICRA]AA(stable)
INE414G07CC1 Non-convertible Debentures 24-Apr-17 8.75 24-Jun-20 1420.43 [ICRA]AA(stable)
INE414G07CD9 Non-convertible Debentures 24-Apr-17 9.00 24-Apr-22 190.56 [ICRA]AA(stable)
INE414G07CE7 Non-convertible Debentures 24-Apr-17 NA 29-May-18 29.51 [ICRA]AA(stable)
INE414G07CF4 Non-convertible Debentures 24-Apr-17 NA 24-Oct-18 6.58 [ICRA]AA(stable)
INE414G07CG2 Non-convertible Debentures 24-Apr-17 NA 24-Apr-19 15.50 [ICRA]AA(stable)
INE414G07CH0 Non-convertible Debentures 24-Apr-17 NA 24-Jun-20 38.03 [ICRA]AA(stable)
Non-convertible Debentures
Unallocated - - - 3,000.00 [ICRA]AA(stable)
(public) ##
Non-convertible Debentures
Unallocated - - - 500.00 [ICRA]AA(stable)
(private) ##
6
Date of Amount
Date and Outlook
Total Non-convertible Debentures 7,650.54
Subordinated Debt
lNE414G09015 Subordinated Debt 26-Mar-13 12.35 26-Mar-23 10.00 [ICRA]AA(stable)
INE414G08215 Subordinated Debt 25-Sep-13 N.A 25-Sep-19 20.97 [ICRA]AA(stable)
INE414G08223 Subordinated Debt 4-Dec-13 N.A 4-Dec-19 23.29 [ICRA]AA(stable)
INE414G08231 Subordinated Debt 4-Feb-14 N.A 4-Feb-20 43.76 [ICRA]AA(stable)
INE414G08249 Subordinated Debt 2-Apr-14 N.A 2-Jul-20 19.35 [ICRA]AA(stable)
INE414G08256 Subordinated Debt 4-Jul-14 N.A 4-Oct-20 36.45 [ICRA]AA(stable)
INE414G08264 Subordinated Debt 26-Sep-14 N.A 26-Mar-21 30.44 [ICRA]AA(stable)
INE414G08272 Subordinated Debt 29-Dec-14 N.A 29-Jun-21 38.65 [ICRA]AA(stable)
INE414G08280 Subordinated Debt 23-Apr-15 N.A 23-Jan-22 28.91 [ICRA]AA(stable)
INE414G08298 Subordinated Debt 14-Oct-15 N.A 14-Oct-22 35.95 [ICRA]AA(stable)
INE414G08314 Subordinated Debt 12-May-16 N.A 12-Nov-23 23.60 [ICRA]AA(stable)
INE414G08330 Subordinated Debt 30-Jan-17 N.A 30-Jan-25 31.78 [ICRA]AA(stable)
INE414G08348 Subordinated Debt 24-Apr-17 N.A 24-Apr-25 18.72 [ICRA]AA(stable)
Unallocated Subordinated Debt## - - - 68.22
Total Subordinated Debt 551.36
NA Term Loans - - - 200.00 [ICRA]AA(stable)

Long-term fund based bank
NA - - - 9,737.00^ [ICRA]AA(stable)
facilities
Short-term fund based bank
NA - - - 12,563.00^ [ICRA]A1+
facilities
Total bank facilities 13,515.00
Commercial Paper
NA - - - 4,000.00 [ICRA]A1+
Programme
Source: MFL
## yet to be placed
^Long-term and short-term fund based bank limits include an interchangeable limit of Rs. 8,985.00 crore. The total rated
bank facilities stand at Rs. 13,515.00 crore.
7
ANALYST CONTACTS
Mr. Karthik Srinivasan Mr. A M Karthik Mr. Vivekanandan L
+91 22 6114 3444 +91 44 4596 4308 +91 44 4297 4306
[email protected] [email protected] [email protected]
RELATIONSHIP CONTACT
Mr. L. Shivakumar
+91 22 6114 3406
[email protected]
MEDIA AND PUBLIC RELATIONS CONTACT

Ms. Naznin Prodhani
Tel: +91 124 4545 860
[email protected]
Helpline for business queries:

+91-124-2866928 (open Monday to Friday, from 9:30 am to 6 pm)
[email protected]
About ICRA Limited:

ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services
companies as an independent and professional investment Information and Credit Rating Agency.
Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited
Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. The international Credit
Rating Agency Moody’s Investors Service is ICRA’s largest shareholder.
For more information, visit www.icra.in
8
ICRA Limited
Corporate Office
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© Copyright, 2018 ICRA Limited. All Rights Reserved.
Contents may be used freely with due acknowledgement to ICRA.
ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of
surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer
concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA
office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to
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While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any
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or its contents
9
CRISIL RATING LETTER
CRISIL RATING RATIONALE
2/12/2018 Rating Rationale
Rating Rationale
January 29, 2018 | Mumbai

Ratings reaffirmed
Rating Action
Rs.76.89 Crore Non-Convertible Debentures CRISIL AA/Stable (Withdrawal)
Rs.91.02 Crore Non-Convertible Debentures CRISIL AA/Stable (Withdrawal)
Rs.3000 Crore Non-Convertible Debentures CRISIL AA/Stable (Reaffirmed)
Rs.365.27 Crore Non-Convertible Debentures CRISIL AA/Stable (Reaffirmed)
Rs.43.7571 Crore Subordinate Bond CRISIL AA/Stable (Reaffirmed)
Rs.100 Crore Subordinate Bond CRISIL AA/Stable (Reaffirmed)
Rs.50 Crore Subordinated Debt CRISIL AA/Stable (Reaffirmed)
Rs.31.78 Crore Subordinated Debt CRISIL AA/Stable (Reaffirmed)
Rs.23.0392 Crore Subordinated Debt CRISIL AA/Stable (Reaffirmed)
Rs.4000 Crore Commercial Paper Programme CRISIL A1+ (Reaffirmed)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale
CRISIL has reaffirmed its ratings on the debt instruments of Muthoot Finance Limited (MFL) at 'CRISIL AA/Stable/CRISIL
A1+' and withdrawn its rating on Rs.76.89 crore and Rs.91.02 crore Non-Convertible Debenture as the same has been
redeemed.
The ratings reflect MFL's promoter's strong track record of over seven decades in the business, with a strong reputation and
brand in South India, particularly in Kerala and Tamil Nadu. Capitalisation is adequate, with a networth of Rs.7,324 crore
and adjusted gearing of 3.1 times as on September 30, 2017. Profitability is expected to remain healthy, with return of
assets (RoA) higher than 3.5% over the medium term. However, MFL has high product and geographic concentration in
revenue and faces challenges associated with the non-gold product segments.
Analytical Approach
For arriving at the ratings, CRISIL has combined the business and financial risk profiles of MFL and its subsidiaries.
Key Rating Drivers & Detailed Description
Strengths
* Established track record in financing against gold jewellery
MFL's leadership position in the business of providing finance against gold jewellery is backed by the promoter family's
established track record, extending to over seven decades. The rich experience gained over this period has helped design
an appropriate assessment and underwriting methodology; the company constantly refines this methodology. Assessing the
purity of gold without causing any damage to the jewellery, fixing an appropriate value that can be lent against a gram of
gold, and determining appropriate loan-to-value (LTV) ratios are critical aspects in the assessment process. Extensive
business experience has helped develop a robust model that has helped it maintain strong asset quality, scale up business
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significantly, and facilitate easy replication over various geographic areas.
* Adequate capitalisation
Capitalisation is adequate, with a networth of Rs.7,324 crore and gearing of 3.1 times as on September 30, 2017. Large
accretion to networth and moderation in growth in the past three yeaRs.resulted in a healthy capital adequacy ratio of 26.5%
as on September 30, 2017. Lower asset-side risk (security of gold, which is liquid and is in the company's possession) also
supports capitalisation. Assets under management (AUM) in the gold loan segment is not expected to grow sharply over the
medium term. Also, other segments (affordable housing finance, and microfinance finance) have a relatively small scale.
Even after factoring in investments in the subsidiaries housing finance company, Muthoot Homefin (India) Ltd, and Belstar
Investment and Finance Pvt Ltd, a microfinance company, CRISIL believes the consolidated gearing will remain below 5.5
times over the medium term.
* Healthy profitability
Profitability has improved with RoA at 4.1% for fiscal 2017 from 3.0% in fiscal 2016 mainly on account of recovery efforts
and partly due to favourable movement in gold prices. Though MFL charges relatively low interest rates than its peers,
operating efficiency helps maintain healthy profitability. With increased focus on regular interest collection, along with
revision in interest rates on different schemes, has resulted in higher yields and profitability during fiscal 2017. Though gross
NPA has increased to 4.6% as on September 2017 from 2.1% as on March 2017 due to slowdown in auctions, the credit
cost is not expected to increase materially and remain at below 1% over the medium term. In addition, the company is
diversifying into microfinance and housing finance where its ability to maintain low credit cost will remain a key rating
monitorable.
Weakness
* Geographical and product concentration in revenue
MFL has high geographic concentration in South India, which currently accounts for 52% of its total loans. While the level of
concentration has been declining and is much lower than that of peers, the significant regional exposure makes the
company vulnerable to economic, social, and political situation in the region. In addition, operations remain confined to
financing against gold ornaments; this segment constitutes over 92% of the company's total advances. To diversify its
product segment, MFL has entered into housing finance and microfinance by acquiring separate subsidiaries. It has also
taken majority stake in a Sri Lanka-based diversified non-banking financial company (NBFC). Though the company is
diversifying into other product segments the proportion of AUM and revenue of non-gold loan segment will remain at 15%
over the medium term and hence, will remain susceptible to risks of revenue concentration in a single asset class.
Furthermore, implementation of the Kerala Money LendeRs.Act, 1958, for NBFCs (which depends on the decision of the
Supreme Court) could affect MFL's lending rates and operational expenditure as the compliance requirements under the act
would be rigorous and cumbersome. This will remain a key rating monitorable.
* Challenges associated with non-gold segments

The Muthoot group diversified into non-gold loan segments post 2012. Primarily, affordable housing and microfinance are
the focus areas. Although the affordable housing segment is a secured business, the key challenge is the low credit profile
of borroweRs.and limited track record of MFL. The microfinance sector has seen significant decline in collection efficiency
post demonetisation and socio political issues in a few states such as Maharashtra, Uttar Pradesh, and Karnataka. The non-
gold loan portfolio will remain at 15-20% of the overall portfolio in the medium term; however, performance of asset quality
and profitability and scaling up operations of non-gold segments will remain key monitorables.
Outlook: Stable
CRISIL believes MFL will maintain its strong capitalisation and above-average profitability over the medium term. The
outlook may be revised to 'Positive' if competitive positioning improves significantly, while asset quality and profitability
remain stable. Conversely, the outlook may be revised to 'Negative' in case of decline in asset quality, profitability, or
capitalisation.
About the Company
MFL, an NBFC, was originally set up as a private limited company in 1997; this was reconstituted as a public limited
company in November 2008. It provides finance against used household gold jewellery; the promoters' family has been in
this business for over seven decades. MFL is the flagship company of the Muthoot group (promoteRs.of MFL), which is also
in the hospitality, healthcare, media, education, information technology, foreign exchange, insurance distribution, and money
transfer businesses. The company had a nationwide network of 4287 branches as on September 30, 2017. It had an
advances book of Rs.27,608 crore, and a networth of Rs.7,324 crore as on September 30, 2017.
For fiscal 2017, MFL's standalone profit after tax (PAT) and total income grew to Rs.1180 crore and Rs.5658 crore, from
Rs.810 crore and Rs.4875 crore, respectively, the previous fiscal. Standalone PAT for the first half of fiscal 2018 increased
to Rs.805 crore from Rs.567 crore during the first half of previous fiscal.
For fiscal 2017, on a consolidated basis, PAT (before adjustment for minority interest) was Rs.1207 crore on total income of
Rs.5938 crore, against a PAT (before adjustment for minority interest) of Rs.818 crore on total income of Rs.4941 crore for
fiscal 2016.
Key financials of MFL - Standalone
As on/ for the period ended March 31 2017 2016
Total assets Rs.crore 30,713 27,049
Total income Rs.crore 5,747 4,875
Profit After Tax Rs.crore 1,180 810
Gross NPA % 2.1 2.9
Gearing Times 3.2 3.3
Return on assets % 4.1 3.0
Any other information: Not applicable
Note on complexity levels of the rated instrument:

CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available
on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL complexity levels for instruments that they consider for
investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.
Annexure - Details of Instrument(s)

Date of Coupon Maturity Issue Size Rating with
ISIN Name of instrument
Allotment rate (%) date (Rs. In crs) Outlook
Secured Redeemable Non- CRISIL
INE414G07225 1-Nov-12 11.75 1-Nov-17 42.6
Convertible Debentures# AA/Stable
INE414G07233 1-Nov-12 12 1-Nov-17 31.8
Convertible Debentures# AA/Stable
INE414G07241 1-Nov-12 N.A 1-Nov-18 18.2
Convertible Debentures AA/Stable
INE414G07274 25-Sep-13 11.5 25-Sep-18 1.5
INE414G07308 25-Sep-13 12 25-Sep-18 2.4
INE414G07340 25-Sep-13 N.A 25-Sep-18 1.3
Secured Redeemable Non- 10.75 & CRISIL
INE414G07373 4-Dec-13 4-Dec-18 1.4
Convertible Debentures 11.50 AA/Stable
INE414G07407 4-Dec-13 4-Dec-18 1.2
INE414G07449 4-Dec-13 N.A 4-Dec-18 1.3
INE414G07472 4-Feb-14 4-Feb-19 1
INE414G07506 4-Feb-14 4-Feb-19 1.6
INE414G07548 4-Feb-14 N.A 4-Feb-19 1.1
INE414G07AQ5 20-Jan-16 9.50 & 8.75 20-Jan-18 33.8
INE414G07AR3 20-Jan-16 9.75 & 9.00 20-Jan-19 115.6
INE414G07AS1 20-Jan-16 9.25 & 8.50 20-Jan-21 1.4
INE414G07AT9 20-Jan-16 9.75 & 9.00 20-Jan-18 39.9
INE414G07AU7 20-Jan-16 20-Jan-19 97.2
INE414G07AV5 20-Jan-16 9.50 & 8.75 20-Jan-21 0.8
INE414G07AX1 20-Jan-16 N.A 20-Jan-18 28.3
INE414G07AY9 20-Jan-16 N.A 20-Jan-19 47.7
INE414G07AZ6 20-Jan-16 N.A 20-Jan-21 0.6
INE414G07BO8 Secured Redeemable Non- 30-Jan-17 8.75 & 8.50 30-Jan-19 5.2 CRISIL
INE414G07BP5 30-Jan-17 9.00 & 8.75 30-Jan-20 26.4
INE414G07BQ3 30-Jan-17 9.00 & 8.75 30-Jan-22 11.1
INE414G07BR1 30-Jan-17 9.00 & 8.75 30-Jan-19 282.2
INE414G07BS9 30-Jan-17 9.25 & 9.00 30-Jan-20 839.3
INE414G07BT7 30-Jan-17 9.25 & 9.00 30-Jan-22 82.5
INE414G07BU5 30-Jan-17 N.A 6-Mar-18 29.7
INE414G07BV3 30-Jan-17 N.A 30-Jul-18 1.4
INE414G07BW1 30-Jan-17 N.A 30-Jan-19 5
INE414G07BX9 30-Jan-17 N.A 30-Jan-20 17.2
INE414G07BY7 24-Apr-17 8.25 24-Apr-19 45.3
INE414G07BZ4 24-Apr-17 8.5 24-Jun-20 68.7
INE414G07CA5 24-Apr-17 8.75 24-Apr-22 61.2
INE414G07CB3 24-Apr-17 8.5 24-Apr-19 74.3
INE414G07CC1 24-Apr-17 8.75 24-Jun-20 1420.4
INE414G07CD9 24-Apr-17 9 24-Apr-22 190.6
Secured Redeemable Non- 29-May- CRISIL
INE414G07CE7 24-Apr-17 NA 29.5
Convertible Debentures 18 AA/Stable
INE414G07CF4 24-Apr-17 NA 24-Oct-18 6.6
INE414G07CG2 24-Apr-17 NA 24-Apr-19 15.5
INE414G07CH0 24-Apr-17 NA 24-Jun-20 38
N.A. N.A N.A N.A 500
Convertible Debentures^ AA/Stable
N.A. N.A N.A N.A 3000
Convertible Debentures^ AA/Stable
CRISIL
INE414G08215 Subordinated Bond 25-Sep-13 N.A 25-Sep-19 20.9
AA/Stable
CRISIL
INE414G08223 Subordinated Bond 4-Dec-13 N.A 4-Dec-19 23.3
AA/Stable
CRISIL
INE414G08231 Subordinated Bond 4-Feb-14 N.A 4-Feb-20 43.8
AA/Stable
CRISIL
INE414G09015 Subordinated Bond 26-Mar-13 12.35 26-Mar-23 10
AA/Stable
CRISIL
N.A. Subordinated Bond^ N.A N.A N.A 90
AA/Stable
CRISIL
INE414G08306 Subordinated Debt 20-Jan-16 N.A 20-Apr-23 23
AA/Stable
CRISIL
INE414G08330 Subordinated Debt 30-Jan-17 N.A 30-Jan-25 31.8
AA/Stable
CRISIL
INE414G08348 Subordinated Debt 24-Apr-17 N.A 24-Apr-25 18.72
AA/Stable
CRISIL
N.A. Subordinated Debt^ N.A N.A N.A 31.28
AA/Stable
N.A. Commercial Paper N.A N.A N.A 4000 CRISIL A1+
^ Yet to be issued
# CRISIL is awaiting independent confirmation of redemption before withdrawing rating on the instruments
Annexure - Rating History for last 3 Years

Start of
Current 2018 (History) 2017 2016 2015
2015
Instrument Type Quantum Rating Date Rating Date Rating Date Rating Date Rating Rating
Commercial CRISIL No No No Rating No Rating CRISIL

ST 4000 Rating Rating
Paper A1+ Change Change A1+
Change Change
No No
Non Convertible CRISIL CRISIL No Rating CRISIL
Debentures LT 7220.77 AA/Stable Rating Rating 01-07-16 AA/Stable Change AA-/Stable
Change Change
No No
Subordinate CRISIL CRISIL No Rating CRISIL
Bond LT 187.98 AA/Stable Rating Rating 01-07-16 AA/Stable Change AA-/Stable
Change Change
Subordinated CRISIL No No CRISIL CRISIL

LT 104.82 Rating Rating 01-07-16 17-11-15 --
Debt AA/Stable AA/Stable AA-/Stable
Change Change
Table reflects instances where rating is changed or freshly assigned. 'No Rating Change' implies that there was no rating change under the release.
Links to related criteria

CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Finance Companies
CRISILs Criteria for rating short term debt
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CONSENT OF THE DEBENTURE TRUSTEE
[APPENDED OVERLEAF]
SCHEDULE A | CASH FLOWS FOR VARIOUS OPTIONS

ANNEXURE A - FINANCIAL INFORMATION
Auditors Report on Reformatted Standalone Financial Information
To
Board of Directors
Banerji Road
Kochi – 682 018
Dear Sirs,
1) We have examined the attached Reformatted Standalone Financial Information of Muthoot

Finance Limited (the “Company”) which comprise of the Reformatted Standalone Summary
Statement of Assets and Liabilities as at March 31, 2017, 2016, 2015, 2014 and 2013, the
Reformatted Standalone Summary Statement of Profit and Loss and the Reformatted
Standalone Summary Statement of Cash Flows for each of the years ended March 31, 2017,
2016, 2015, 2014 and 2013, and the Summary Statement of Significant Accounting Policies
and notes thereon prepared by the Management of the Company in terms of the requirements
of:
a. Section 26 (1) of Part I of Chapter III of the Companies Act, 2013 ("the Act") read
with Companies (Prospectus and Allotment of Securities) Rules, 2014, as applicable
(“the Rules”); and
b. the Securities and Exchange Board of India (Issue and Listing of Debt Securities)
Regulations, 2008 as amended from time to time in pursuance of provisions of
Securities and Exchange Board of India Act, 1992 ("SEBI Regulations").
in connection with the Proposed Public Offering of Non-Convertible Debentures of the

Company and has been approved by the NCD Public Issue Committee of the Board of
Directors of the Company. The preparation of the Reformatted Standalone Financial
Information is the responsibility of the Management of the Company for the purpose set out
in paragraph 12 below. The Management’s responsibility includes designing, implementing
and maintaining adequate internal control relevant to the preparation and presentation of the
Reformatted Standalone Financial Information. The Management is also responsible for
identifying and ensuring that the Company complies with the Rules and SEBI Regulations.
2) We have examined such Reformatted Standalone Financial Information taking into

consideration:
a. The terms of reference and terms of our engagement agreed upon with you in
accordance with our engagement letter dated January 15, 2018 in connection with the
proposed issue of non convertible debentures of the Company; and
b. The Guidance Note on Reports in Company Prospectuses (Revised 2016) issued by

the Institute of Chartered Accountants of India (“The Guidance Note”).
Page | A-1
3) The Reformatted Standalone Financial Information have been compiled by the Management
from the Audited Financial Statements of the Company as at March 31 2017, 2016, 2015,
2014 and 2013 and for each of the years ended March 31 2017, 2016, 2015, 2014 and 2013
which have been approved by the Board of Directors at the meetings held on May 18 2017,
May 27 2016, May 5 2015, May 26 2014 and May 14 2013 respectively. The audit for the
financial years ended March 31 2017, 2016, 2015, 2014 and 2013 was conducted by the
previous auditors, M/s Rangamani & Co( the “previous auditor”) and accordingly reliance has
been placed on the audit opinions issued by the previous auditor dated May 18 2017, May 27
2016, May 5 2015, May 26 2014 and May 14 2013 respectively to the members of the
Company for the said years.
4) In consideration of the requirements of Section 26 (1) of Part I of Chapter III of the

Companies Act, 2013 ("the Act") read with the Rules, the SEBI Regulations and the Guidance
Note, we report that:
The Reformatted Standalone Summary Statement of Assets and Liabilities and Schedules
forming part thereof, the Reformatted Standalone Summary Statement of Profit and Loss and
Schedules forming part thereof and the Reformatted Standalone Summary Statement of Cash
Flows (together referred to as “Reformatted Standalone Summary Statements”) of the
Company, including as at and for the each of the years ended March 31,2017, March 31,2016
, March 31, 2015, March 31, 2014 and March 31, 2013 examined by us as set out in Annexure
I to III to this report have been arrived at after making regrouping, as are appropriate and
more fully described in Summary Statement of Significant Accounting Policies in Annexure
VI and Notes in other annexures.
5) Based on the above and according to the information and explanations given to us, and also as
per the reliance placed on the audit reports submitted by the previous auditor, for the
respective years, we further report that the Reformatted Standalone Financial Information:
a) Have to be read in conjunction with the Summary Statement of Significant Accounting

Policies in Annexure VI and notes given in other annexures.
b) The figures of the periods ended March 31, 2016, 2015, 2014 and 2013 have been
regrouped (but not restated retrospectively for changes in accounting policies), wherever
necessary, to conform to the classification adopted for the Reformatted Standalone
Summary Statements as at and for the year ended March 31 2017.
c) There are no extraordinary items which need to be disclosed separately in the attached
Reformatted Standalone Summary Statements;
d) There are no qualifications in the auditors’ reports, which require any adjustments to the
Reformatted Standalone Summary Statements; and
e) In the preparation and presentation of Reformatted Statements based on audited financial
statements as referred to in paragraph 1 above, no adjustments have been made for any
events occurring subsequent to dates of the audit reports.
6) As stated in the audit reports of the previous auditors referred to in paragraph 3 above, the
audits were conducted in accordance with the Standards on Auditing under Section 143(10) of
the Act /issued by the Institute of Chartered Accountants of India to enable them to issue an
opinion on the General Purpose Financial Statements. Those standards require that the auditor
Page | A-2
comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatements. An
audit involves performing procedures to obtain audit evidence supporting the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation and fair presentation of the financial statements that give a true and
fair view in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on whether the Company has in place an adequate
internal financial controls system over financial reporting and the operating effectiveness of
such controls for the years ended 31st March 2015, 2014 and 2013. For the year ended 31st
March 2017 and 2016, in making those risk assessments, the auditor considers internal control
relevant to the Company’s preparation and fair presentation of the financial statements that
give a true and fair view in order to design audit procedures that are appropriate in the
circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statement. The auditor believes that the audit evidence
obtained is sufficient and appropriate to provide a basis for the audit opinion.
7) The financial statements for the periods up to March 31, 2017 were audited by the previous
auditor and we have not audited any financial statements as of any date or for any period
subsequent to March 31 ,2017. Accordingly, we express no audit opinion on the financial
position, results of operations or cash flows of the Company as of any date or for any period
subsequent to March 31, 2017. The limited review of unaudited financial information for the
three months ended June 30, 2017 was conducted by the previous auditor. We have
undertaken a limited review of the unaudited financial information provided to us by the
company for the six months ended September 30 2017 and nine months ended December 31
2017 which includes corresponding periods in the prior year as reviewed by the Previous
auditor and furnished to us by the Company and relied by us, in accordance with the
requirements of Regulation 33 and Regulation 52 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations 2015 and (ii) Standard of Review Engagement (SRE)
2410 , “ Review of Interim Financial Information Performed by the Independent Auditor of
the Entity” issued by the Institute of Chartered Accountants of India (“ICAI”).
8) At the request of the company, we have also examined the following Reformatted Standalone
Financial Information (Other Information) of the Company set out in the below Annexure
prepared by the management and approved by the NCD Public Issue Committee of the Board
of Directors on February 21, 2018 for the years ended March 31, 2017, 2016, 2015, 2014 and
2013. These information are based upon the reports submitted by the previous auditor and
relied upon by us.
a) Details of Rates of Dividend, as appearing in Annexure VII
Page | A-3
9) According to the information and explanations given to us and also as per the reliance placed
on the reports submitted by the previous auditors, M/s Rangamani & Co., in our opinion, the
Reformatted Standalone Financial Information and the Other information contained in
annexures accompanying this report, read with Summary Statement of Significant Accounting
Policies and Notes disclosed in annexures , are prepared after making regrouping as
considered appropriate and have been prepared in accordance with Section 26 (1) of Part I of
Chapter III of the Act , read with the Rules, SEBI Regulations and the Guidance Note.
10) This report should not in any way be construed as a reissuance or re-dating of any of the
previous audit reports, nor should this report be construed as a new opinion on any of the
Audited financial statements referred to herein.
11) We have no responsibility to update our report for events and circumstances occurring after
the date of the report.
12) This report is intended solely for your information and for inclusion in the offer document
prepared in connection with the proposed Public Issue of Non convertible debentures of
Muthoot Finance Limited. Our report should not be used, referred to or distributed for any
other purpose without our prior consent in writing.
For Varma & Varma

FRN : 004532S
Sd/-
Partner
Membership No: 203094
Place : Kochi
Date : 21.02.2018
Page | A-4
ANNEXURE-I: REFORMATTED STANDALONE SUMMARY STATEMENT OF ASSETS AND LIABILITIES
(Rs. in millions)
Particulars Note As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013
EQUITY AND LIABILITIES
I Shareholders’ funds
(a) Share capital 1 3,994.76 3,990.02 3,979.66 3,717.13 3,717.13
(b) Reserves and surplus 2 61,169.66 52,202.47 46,855.38 38,928.63 33,638.52
65,164.42 56,192.49 50,835.04 42,645.76 37,355.65
II Non-current liabilities
(a) Long-term borrowings 3 42,311.91 52,762.59 67,125.59 69,046.03 79,529.42
(b) Other Long term liabilities 4 6,719.69 11,268.29 12,078.10 8,975.08 5,633.84
(c) Long-term provisions 5.27 2.39 7.51 18.73 2.41
49,036.87 64,033.27 79,211.20 78,039.84 85,165.67
III Current liabilities
(a) Short-term borrowings 3 1,27,549.10 83,635.16 77,606.48 60,642.87 94,802.41
(b) Trade Payables
Total outstanding dues of micro enterprises and small
- - - - -
enterprises
Total outstanding dues of creditors other than micro enterprises 929.22 611.29 514.49 417.52 327.06
and small enterprises
(c) Other current liabilities 5 57,942.08 60,888.95 56,537.29 72,014.35 72,828.85
(d) Short-term provisions 6 6,509.04 5,126.17 2,988.01 2,178.39 3,683.01
1,92,929.44 1,50,261.57 1,37,646.27 1,35,253.13 1,71,641.33
Total Equity and Liabilities (I+II+III) 3,07,130.73 2,70,487.33 2,67,692.51 2,55,938.73 2,94,162.65
ASSETS
IV Non-current assets
(a) Fixed assets 7
Tangible assets 2021.79 2,138.12 2,518.52 3,119.74 2,888.08
Intangible assets 60.52 46.70 54.51 6.07 5.70
Capital work-in-progress 99.75 88.90 63.32 83.79 95.96
Intangible assets under development - - 5.32 60.27 40.43
(b) Non-current investments 8 2,091.16 982.62 384.87 46.75 75.05

(c) Deferred tax assets (net) 560.24 519.74 348.39 210.47 195.45
(d) Long-term loans and advances 9 1,085.26 1,002.98 984.25 1,019.45 1,045.22
5,918.72 4,779.06 4,359.18 4,546.54 4,345.89
V Current Assets
(a) Current investments 10 - - - 307.00 750.00
(b) Trade receivables 11 12,706.05 14,672.65 11,538.96 11,639.68 11,481.77
(c) Cash and Bank Balances 12 15,342.54 6,791.10 17,366.17 20,489.26 13,419.98
(d) Short-term loans and advances 13 2,73,156.80 2,44,237.69 234405.00 2,18,925.00 2,64,111.31
(e) Other current assets 14 6.62 6.83 23.20 31.25 53.70
3,01,212.01 2,65,708.27 2,63,333.33 2,51,392.19 2,89,816.76
Total Assets (IV+V) 3,07,130.73 2,70,487.33 2,67,692.51 2,55,938.73 2,94,162.65
As at March As at March As at March As at March As at March

31, 2017 31, 2016 31, 2015 31, 2014 31, 2013
Net Worth Represented by
Share Capital 3,994.76 3,990.02 3,979.66 3,717.13 3,717.13
Reserves and Surplus 61,169.66 52,202.47 46,855.38 38,928.63 33,638.52
NET WORTH 65,164.42 56,192.49 50,835.04 42,645.76 37,355.65
Notes on accounts form part of the final accounts

As per our report of even date attached For and on behalf of the Board of Directors
For Varma & Varma
Charterd Accountants
FRN:004532 S
Sd/-
Sd/- George Alexander Muthoot
Vijay Narayan Govind Managing Director
Partner (Membership No.203094)
Place :Kochi
Date: 21-02-2018
Page | A-5
ANNEXURE-II: REFORMATTED STANDALONE SUMMARY STATEMENT OF PROFIT AND LOSS
(Rs. in millions)
For the year ended For the year ended For the year ended For the year ended For the year ended
Particulars Note
March 31,2017 March 31,2016 March 31,2015 March 31,2014 March 31, 2013
A INCOME
I Revenue from Operations 16 57,286.27 48,614.01 43,138.02 49,278.82 53,588.98
II Other income 17 180.74 136.14 108.34 195.55 282.38
Total Revenue 57,467.01 48,750.15 43,246.36 49,474.37 53,871.36
B EXPENSES
I Employee benefits expense 18 7,280.48 6,418.78 6,304.27 5,917.12 5,452.75
II Finance costs 19 22,938.15 22,576.93 21,063.56 26,259.88 28,194.44
III Other expenses 20 4,382.20 4,191.76 4,194.84 4,257.11 3,567.83
IV Directors Remuneration 358.00 195.60 192.49 192.00 192.00
V Depreciation and amortization Expense 482.50 575.15 841.19 474.62 454.43
VI Provisions and Write Offs 21 2,815.91 1,624.39 371.43 438.09 895.46
Total expenses 38,257.24 35,582.61 32,967.78 37,538.82 38,756.91
C Profit Before Tax (A-B) 19,209.77 13,167.54 10,278.58 11,935.55 15,114.45
D Tax expense
I Current tax 7,451.95 5,219.43 3,695.11 4,123.96 5,171.10
II Deferred tax (40.50) (171.35) (125.52) (15.03) (191.55)
III Taxes relating to Previous Years - 23.93 3.75 25.93 92.51
Total tax expenses 7411.45 5072.01 3573.34 4134.86 5072.06
E Profit for the year 11,798.32 8,095.53 6,705.24 7,800.69 10,042.39
Net Adjustments - - -
Net Profit/(Loss) 11,798.32 8,095.53 6,705.24 7,800.69 10,042.39

As per our report of even date attached For and on behalf of the Board of Directors
For Varma & Varma
FRN:004532 S
Sd/- Sd/-
Vijay Narayan Govind George Alexander Muthoot
Partner (Membership No.203094) Managing Director
Place :Kochi
Date: 21-02-2018
Page | A-6
ANNEXURE III - REFORMATTED STANDALONE SUMMARY OF CASH FLOW STATEMENT
(Rs. in millions)
For the year ended For the year Ended For the year Ended For the year Ended For the year Ended
Particulars
March 31,2017 March 31,2016 March 31,2015 March 31,2014 March 31, 2013
Cash Flow From Operating Activities
Net Profit Before Taxation 19,209.77 13,167.54 10,278.58 11,935.55 15,114.45
Adjustments for:-
Add: Provision for Non-Performing Assets and bad dets written
165.44 401.08 191.64 248.89 649.59
off
Add: Provision for Standard Assets and Other losses 2,650.47 1,223.31 179.80 189.19 245.87
Add: Finance Cost 22,938.15 22,576.93 21,063.56 26,259.88 28,194.44
Add: Loss on Sale of Fixed Assets 0.76 0.11 0.13 0.08 0.21
Add: Depreciation and amortization 482.50 575.15 841.19 474.62 454.43
Add:Provision for Gratuity 5.27 2.39 7.51 18.73 2.41
Add:Expenses on ESOP 36.19 115.30 194.90 98.73 -
Less: Interest received on Bank Deposits - - (93.95) (70.99) (195.64)
Less: Interest received - Others (152.64) (130.16) - - -
Less: Income from Investments (24.86) (4.39) (13.18) (85.78) (85.70)
Less: Profit on sale of investment - - - (37.95) -
Operating profit before working capital changes 45,311.05 37,927.26 32,650.18 39,030.95 44,380.06
Adjustments for:-
(Increase) / Decrease in Loans and Advances (29,001.39) (9,851.42) (15,444.79) 45,212.08 (50,475.94)
(Increase) / Decrease in Trade receivables 1,801.17 (3,240.87) (90.93) (382.04) (4,271.81)
(Increase) / Decrease in Other Current Assets - 17.02 (3.23) (0.11) (0.93)
(Increase)/ Decrease in Bank balances other than Cash and Cash
Equivalents (2,423.91) (3.74) 896.44 (900.76) 2,620.15
Increase / (Decrease) in Current liabilities 555.68 484.51 86.35 153.94 (23.71)

Increase / (Decrease) in Other Long Term Provisions (2.39) (7.51) (18.73) (2.41) -
Increase / (Decrease) in Other Long Term Liabilities (34.80) 45.90 (0.38) 0.56 5.49
Cash generated from operations 16,205.41 25,371.15 18,074.91 83,112.21 (7,766.69)
Finance cost paid (24,608.23) (19,452.86) (18,192.17) (22,391.76) (23,829.00)
Direct tax paid (8,719.56) (3,782.10) (3,589.23) (4,359.28) (5,308.55)
Net cash from operating activities (A) (17,122.38) 2,136.19 (3,706.49) 56,361.17 (36,904.24)
Cash Flow From Investing Activities

Purchase of Fixed Assets (382.65) (189.86) (326.41) (711.01) (724.07)
Sale of Fixed Assets 1.90 2.81 1.41 4.28 2.54
(Increase) / Decrease in Capital Work in Progress (10.84) (20.27) 75.41 (7.66) (81.03)
Purchase of Securities (112.11) (100.00) - - -
Sale of Securities 140.00 - 307.00 443.00 150.00
Sale of investment in Equity Shares - - - 66.25 -
Acquisition of shares in subsidiary (1,136.43) (497.74) (338.12) - -
Interest received – Others 152.85 129.50 97.20 81.97 252.09
Income from Investments 24.86 4.39 21.21 97.36 66.08
Net Cash from Investing Activities (B) (1,322.42) (671.17) (162.30) (25.81) (334.39)
Page | A-7
Cash Flow From Financing Activities
Net Proceeds from Issue of Debentures (15,023.93) (13,182.46) (15,819.57) (6,154.95) 33,940.76
Increase / (Decrease) in Loan from Directors / Relatives of
Directors (780.47) 1,568.80 1,142.09 2,315.02 1,480.61
Increase / (Decrease) in Borrowings from Bank /Financial

15,142.91 4,457.88 14,385.17 (43,330.20) 9,043.58
Institutions
Increase / (Decrease) in Inter Corporate Loan - - - (52.22) (78.23)
Increase / (Decrease) in Subordinated debt (6,336.83) (1,081.81) 191.19 3,245.84 8,199.88
Increase / (Decrease) in Commercial Papers 31,548.45 - (90.29) (2,073.56) (5,530.62)
Dividend paid (including Dividend distribution tax) - (3,832.72) (2,322.58) (4,116.77) (1,727.61)
Proceeds from issue of Share Capital 22.21 26.47 4,201.89 - -
Expenses on further Issue of Equity Shares - - (45.76) - -
Net Cash from Financing Activities (C ) 24,572.34 (12,043.84) 1,642.14 (50,166.84) 45,328.37
Net Increase In Cash And Cash Equivalents (A+B+C) 6,127.54 (10,578.82) (2,226.65) 6,168.52 8,089.74
Cash And Cash Equivalent At The Beginning of The Year 6,764.44 17,343.26 19,569.91 13,401.39 5,311.65
Cash And Cash Equivalent At The End of The Year 12,891.98 6,764.44 17,343.26 19,569.91 13,401.39
Components of Cash and Cash Equivalents at the end of the

year
Current Account with Banks 11,264.66 5,288.34 14,773.93 16,872.85 10,845.23
Deposit with Banks - - 100.00 350.00 720.00
Cash on Hand 1,627.32 1,476.10 2,469.33 2,347.06 1,836.16
Total 12,891.98 6,764.44 17,343.26 19,569.91 13,401.39

Notes:
1) The above cash flow statement has been prepared under the indirect method set out in Accounting Standard (AS)-3, ‘Cash Flow Statement’, in compliance with the Accounting
Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
2) All figures in brackets indicate outflow.
3) The cash flows from operating, investing and financing activities are segregated.
As per our report of even date attached
For Varma & Varma For and on behalf of the Board of Directors
FRN:004532 S
Sd/-
Vijay Narayan Govind Sd/-
Partner (Membership No.203094) George Alexander Muthoot
Place :Kochi Managing Director
Date: 21-02-2018
Page | A-8
ANNEXURE-IV: NOTES ON REFORMATTED STANDALONE SUMMARY STATEMENT OF ASSETS AND LIABILITIES
Note 1 : Share Capital
1.1 Share Capital (Rs. in millions)
Particulars As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31,2014 As at March 31, 2013
Authorised
Equity Shares 4,500 4,500 4,500 4,500 4,500
450 mn equity shares 450 mn equity shares 450 mn equity shares 450 mn equity shares 450 mn equity shares
of Rs.10 each of Rs.10 each of Rs.10 each of Rs.10 each of Rs.10 each
Preference Shares 5,000 5,000 5,000 5,000 5,000
5 mn preference shares 5 mn preference shares 5 mn preference shares 5 mn preference shares 5 mn preference shares
of Rs.1000 each of Rs.1000 each of Rs.1000 each of Rs.1000 each of Rs.1000 each
Total 9,500 9,500 9,500 9,500 9,500
Issued, Subscribed & Paid up 3,994.76 3,990.02 3,979.66 3,717.13 3,717.13
399,475,549 Equity shares of Rs.10 399,002,332 Equity 397,966,419 Equity 371,712,768 Equity 371,712,768 Equity
each fully paid up shares of Rs.10 each fully paid up shares of Rs.10 each fully paid up shares of Rs.10 each fully paid up shares of Rs.10 each fully paid up
Total 3,994.76 3,990.02 3,979.66 3,717.13 3,717.13
1.2 Terms and Rights attached to Equity Shares

The Company has only one class of equity share having face value Rs. 10/- per share. All these shares have the same rights and preferences with respect to the payment of dividend, repayment of capital and voting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.
1.3 The reconciliation of the number of shares outstanding and the amount of share capital
(Rs. in millions)
As at March 31, 2017 As at March 31, 2016 As at March 31, 2015
Particulars No. of Amount No. of Amount No. of Amount
Shares held Shares held Shares held
Shares outstanding at the beginning of the year
39,90,02,332.00 3,990.02 39,79,66,419.00 3,979.66 37,17,12,768.00 3,717.13
Shares Issued during the year 4,73,217 4.73 10,35,913 10.36 2,62,53,651 262.53
Shares outstanding at the end of the year 39,94,75,549.00 3,994.75 39,90,02,332.00 3,990.02 39,79,66,419.00 3,979.66
As at March 31,2014 As at March 31, 2013

Particulars No. of Amount No. of Amount
Shares held Shares held
Shares outstanding at the beginning of the year 37,17,12,768.00 3,717.13 37,17,12,768.00 3,717.13
Shares Issued during the year - - - -
Shares outstanding at the end of the year 37,17,12,768.00 3,717.13 37,17,12,768.00 3,717.13
1.4 Disclosure as to the shareholders holding more than 5 percent shares

Name of Shareholder No. of % of No. of % of No. of % of
Shares held Holding Shares held Holding Shares held Holding
M. G. George Muthoot 4,65,51,632 11.65% 4,73,85,132 11.88% 4,73,85,132 11.91%
George Alexander Muthoot 4,36,30,900 10.92% 4,44,64,400 11.14% 4,44,64,400 11.17%
George Jacob Muthoot 4,36,30,900 10.92% 4,44,64,400 11.14% 4,44,64,400 11.17%
George Thomas Muthoot 4,36,30,900 10.92% 4,44,64,400 11.14% 4,44,64,400 11.17%
Susan Thomas 2,99,85,068 7.51% 2,99,85,068 7.52% 2,99,85,068 7.53%
As at March 31,2014 As at March 31, 2013

Name of Shareholder No. of % of No. of % of
Shares held Holding Shares held Holding
M. G. George Muthoot 4,73,85,132 12.75% 4,73,85,132 12.75%
George Alexander Muthoot 4,44,64,400 11.96% 4,44,64,400 11.96%
George Jacob Muthoot 4,44,64,400 11.96% 4,44,64,400 11.96%
George Thomas Muthoot 4,44,64,400 11.96% 4,44,64,400 11.96%
Susan Thomas 2,99,85,068 8.07% 2,99,85,068 8.07%
1.5 Disclosure as to aggregate number and class of shares allotted as pursuant to contract(s) without payment being received in cash, fully paid up by way of bonus shares and shares bought back.
Aggregate No. of Shares issued in the financial years

Particulars
2016-2017 2015-2016 2014-2015 2013-14 2012-13
Equity Shares :
Fully paid up pursuant to contract(s) without payment being received in cash Nil Nil Nil Nil Nil
Fully paid up by way of bonus shares Nil Nil Nil Nil Nil
Shares bought back Nil Nil Nil Nil Nil
1.6 Shares reserved for issue under Employee Stock Option Scheme
The Company has reserved 2,837,904 equity shares for issue under the Employee Stock Option Scheme, 2013 as at March 31, 2017.
1.7 Institutional Placement Programme

On April 29th 2014, Company allotted 25,351,062 shares of Rs 10 /- each for cash at a premium of Rs. 155/- per equity share aggregating to Rs. 4,182.93 millions, pursuant to Institutional Placement Programme
(IPP) under Chapter VIII A of the SEBI ICDR Regulations complying with the minimum public shareholding requirement under Rule 19 (2) (b) (ii) of the Securites Contracts (Regulations) Rules, 1957.
Page | A-9
Note 2: Reserves and Surplus
(Rs. in millions)
As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013
Particulars
a. Securities Premium Account
Balance at the beginning of the year 14,665.74 14,551.28 10,570.78 10,570.78 10,570.78
Add : Securities premium credited on Equity Share issue 56.07 114.46 4,026.26 - -
Less : Premium Utilised for Institutional Placement Programme expenses (Refer Note
- - 45.76 - -
2.1)
Closing Balance 14,721.81 14,665.74 14,551.28 10,570.78 10,570.78
b. General Reserve
Balance at the beginning of the year 2,676.33 2,676.33 2,676.33 1,896.26 892.02
Add: Amount transferred from surplus balance in
the Statement of Profit and Loss - - - 780.07 1004.24
Closing Balance 2,676.33 2,676.33 2,676.33 2,676.33 1,896.26
c. Debenture Redemption Reserve ( Refer Note 2.2 )

Balance at the beginning of the year 15,517.80 12,008.33 8,346.33 1,709.29 742.04
Add: Amount transferred from surplus balance in the Statement of Profit and Loss 4,818.11 3,509.47 3,662.00 6,637.04 967.25
Closing Balance 20,335.91 15,517.80 12,008.33 8,346.33 1,709.29
d. Statutory Reserve ( Refer Note 2 .3 )

Balance at the beginning of the year 10,294.85 8,675.74 7,334.69 5,774.55 3,766.07
Add: Amount transferred from surplus balance in the Statement of Profit and Loss
2,359.66 1,619.11 1,341.05 1,560.14 2,008.48
Closing Balance 12,654.51 10,294.85 8,675.74 7,334.69 5,774.55
e. Share options outstanding account

Balance at the beginning of the year 223.67 206.72 98.73 - -
Additions during the year 36.19 115.30 194.90 98.73 -
Deductions during the year on share allotment 38.59 98.35 86.91 - -
Closing Balance 221.27 223.67 206.72 98.73 0.00
f. Surplus in the Statement of Profit and Loss

Balance at the beginning of the year 8824.08 8,736.98 9,901.77 13,687.64 9,569.28
Add: Net Profit For the year as reformatted 11,798.32 8,095.53 6,705.24 7,800.69 10,042.39
Less: Appropriations
Impact of Depreciation Rate change net of Deferred Tax - - 24.07 - -
Equity Dividend 2,396.85 2,390.18 2,384.19 2,230.27 1,672.71
Dividend relating to earlier year - 3.08 25.35 - -
Corporate Dividend Tax 487.95 486.59 433.37 379.04 271.35
Transfer to General Reserve - - - 780.07 1,004.24
Transfer to Debenture Redemption Reserves (Refer Note 2.2) 4,818.11 3,509.47 3,662.00 6,637.04 967.25
Transfer to Statutory Reserves ( Refer Note 2.3 ) 2,359.66 1,619.11 1,341.05 1,560.14 2,008.48
Closing Balance 10,559.83 8,824.08 8,736.98 9,901.77 13,687.64
TOTAL 61,169.66 52,202.47 46,855.38 38,928.63 33,638.52
2.1 Share Issue Expenses

The expenses incurred for the issue of Equity shares under Institutional Placement Programme in April 2014 amounting to Rs. 45.76 millions has been written off against Securities Premium as per Section 52 (2 )
of the Companies Act,2013.
2.2 Debenture Redemption Reserve

The Company has created Debenture Redemption Reserve (DRR) in accordance with the relevant provisions of Companies Act 2013/1956 read in conjunction with Securities and Exchange Board of India (Issue
& Listing of Debt Securities) Regulations, 2008.
2.3 Statutory Reserve

Statutory Reserve represents the Reserve Fund created under Section 45 IC of the Reserve Bank of India Act, 1934.
Note 3: Borrowings
Borrowings – Secured and Unsecured
(Rs. in millions)
Non-Current
Particulars As at As at As at As at As at
March 31,2017 March 31,2016 March 31,2015 March 31,2014 March 31,2013
Secured
(a) Debentures
Secured Non-Convertible Debentures 5,269.45 14,378.92 17,766.81 26,598.96 40,281.72
(Secured by mortgage of immovable property and paripassu floating charge on current
assets, book debts and Loans & advances)
(Refer Note No. 3.1)
Secured Non-Convertible Debentures - - - - -
(Secured by mortgage of immovable property and charge on all movable fixed assets)

Secured Non-Convertible Debentures –Listed 24,341.53 20,195.06 24,897.09 17,285.37 14,614.78
(Secured by mortgage of immovable property and paripassu floating charge on
current assets, book debts and Loans & advances)
(Refer Note No. 3.2&3.3)
(b) Term Loans
From banks
Term Loan (Secured by specific charge on vehicles) - 0.08 0.55 4.91 7.96
(Terms of Repayment: Rs.0.08 Million during F Y 2017-18 in 3 monthly installments,

Rate of Interest: 10.51 % p.a.)
Term Loan (Secured by paripassu floating charge on current assets, book debts, Loans
& advances)
(Terms of Repayment: During F Y 2018-19 in 4 quarterly installments, Rate of 2,000.00 - - - 1,521.70
Interest: 8.75 % p.a.)
Page | A-10
From Financial Institutions
Term Loan (Secured by paripassu floating charge on current assets, book debts and
Loans & advances and personal guarantee of Promoter Directors) (Repayable in 2013- - - - - -
14)
Term Loan (Secured by specific charge on vehicles) 1.15 2.85 1.02 0.48 2.29
(Terms of Repayment: Rs.1.70 Million during F Y 2017-18 in 12 monthly
installments & Rs.1.15 Million during F Y 2018-19 in 7-8 monthly installments , Rate
of Interest : 9.19%-9.30 % p.a. )
Sub Total 31,612.13 34,576.91 42,665.47 43,889.72 56,428.45
Unsecured
(a) Loans and advances from related parties
Loan from Directors and Relatives - - - - -

Inter Corporate Loan - - - - -
Subordinated Debt (Refer Note 3.4) 0.05 0.26 84.41 293.22 408.02
(b) Other loans and advances
Subordinated Debt Listed (Refer Note 3.5& 3.6) 3,661.81 3,108.05 2,229.04 980.19 100.00
Commercial Paper - - - - -
Subordinated Debt (Refer Note 3.4) 7,037.92 15,077.37 22,146.67 23,882.90 22,592.95
Inter Corporate Loan - - - -
Sub Total 10,699.78 18,185.68 24,460.12 25,156.31 23,100.97
Total 42,311.91 52,762.59 67,125.59 69,046.03 79,529.42
As per Balance Sheet 42,311.91 52,762.59 67,125.59 69,046.03 79,529.42
(Rs. in millions)
Current
Particulars As at As at As at As at As at
Secured
(a) Debentures
Secured Non-Convertible Debentures 19,920.63 26,529.93 42,072.26 54,980.60 54,298.64
Secured Non-Convertible Debentures - - - 0.05 15.86

Secured Non-Convertible Debentures –Listed 12,756.62 16,208.26 5,758.47 7,449.22 3,258.16
(Refer Note No. 3.2 & 3.3)
(b) Term loans
From banks
(Terms of Repayment: Repayable in Monthly Instalments, Rate of Interest: 9.33%-
10.51 % p.a. )
Short Term Loan (Secured by mortgage of immovable property and subservient charge -
on current assets, book debts, loans & advances and personal guarantee of Promoter
Directors and collateral security by a group company) - - 400.00 400.00
Term Loan (Secured by paripassu floating charge on current assets, book debts, Loans
& advances) - - - 1,521.7 3,978.30

Term Loan (Secured by paripassu floating charge on current assets, book debts and
Loans & advances and personal guarantee of Promoter Directors) - - - - 5,000.00
(Terms of Repayment: Rs.1.70.00 during F Y 2017-18 in 12 monthly installments )
(c) Loans repayable on demand

From banks
Overdraft against Deposit with Banks 3.71 7.78 1.39 0.35 -
(Secured by a lien on Fixed Deposit with Banks)
Cash Credit 29,722.84 23,912.81 34,479.33 19,708.54 56,497.67
(Secured by paripassu floating charge on current assets, book debts, Loans &
advances and personal guarantee of Promoter Directors)
(d) Short Term Loans

From Banks 59,540.00 52,950.00 37,930.00 36,390.00 32,950.00
(Secured by paripassu floating charge on current assets, book debts, Loans & advances
and personal guarantee of Promoter Directors)
From Financial Institutions - - - - 1,000.00
(Secured by paripassu floating charge on current assets, book debts, Loans & advances
and personal guarantee of Promoter Directors)
Sub Total 1,21,945.58 1,19,611.82 1,20,247.83 1,20,457.99 1,57,404.41

Unsecured
(a) Loans repayable on demand
From banks 750.00 - - - -
(b) Loans and advances from related parties
Loan from Directors and Relatives 5,984.10 6,764.57 5,195.77 4,053.68 1,738.66
Inter Corporate Loan - - - - 32.22
Subordinated Debt (Refer Note 3.4) 0.21 84.15 209.23 114.88 -
(c) Other loans and advances
Commercial Paper 31,548.45 - - 90.30 2,163.86
Subordinated Debt (Refer Note 3.4) 8,419.37 7,186.37 1,868.66 1,075.62 -
Inter Corporate Loan - - - - 20.00
Sub Total 46,702.13 14,035.09 7,273.66 5,334.48 3,954.74
Total 1,68,647.71 1,33,646.91 1,27,521.49 1,25,792.47 1,61,359.15
Less: Amount included under Current Liabilities
Current maturities of long term debt (Refer Note 5.1) 39,993.67 49,272.35 49,628.95 65,086.85 66,474.92
Unpaid Matured Debentures (Refer Note 5.2) 1,104.94 739.40 286.06 62.75 81.82
As per Balance Sheet 1,27,549.10 83,635.16 77,606.48 60,642.87 94,802.41
Long Term Borrowings 42,311.91 52,762.59 67,125.59 69,046.03 79,529.42

Short Term Borrowings 1,27,549.10 83,635.16 77,606.48 60,642.87 94,802.41
Page | A-11
There is no continuing default on the balancesheet date in repayment of loans and interest.
Note 3.1: Secured Redeemable Non-Convertible Debentures

The Company had privately placed Secured Redeemable Non-Convertible Debentures for a maturity period of 60-120 months with an outstanding amount as follows:
(Rs. in millions)
Amount Redemption Period from
Series Date of allotment Interest Rate(%)
As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013 the date of allotment
CU March 31,2014 15.00 20.00 57.50 62.50 - 120 months 10.50-12.50

CT March 14,2014 to 120 months 10.50-12.50
34.00 47.00 93.50 98.00 -
March 31,2014
CS February 27,2014 to 120 months 10.50-12.50
47.00 57.00 152.50 152.50 -
March 14,2014
CR February 7,2014 to 120 months 10.50-12.50
25.00 49.50 171.50 184.00 -
February 27,2014
CQ February 4 2014 to 120 months 10.50-12.50
44.50 59.50 210.50 223.50 -
February 7,2014
CP January 20, 2014 to 120 months 10.50-12.50
84.00 92.00 188.00 199.00 -
February 4 2014
CO January 10, 2014 to 120 months 10.50-12.50
130.00 137.00 145.50 150.50 -
January 20, 2014
CN January 3,2014 to 120 months 10.50-12.50
87.50 109.00 142.00 144.50 -
January 10, 2014
CM December 24,2013 to 120 months 10.50-12.50
37.50 80.00 108.50 116.00 -
January03, 2014
CL December 05,2013 to 120 months 10.50-12.50
41.50 64.00 123.50 126.00 -
December 24, 2013
CK November 18,2013 to 120 months 10.50-12.50
34.50 58.00 110.00 133.00 -
December 05, .2013
CJ October 29, 2013 to 120 months 10.50-12.50
34.50 73.50 107.50 126.50 -
November 18, 2013
CI October 09, 2013 to 120 months 10.50-12.50
39.50 47.00 108.50 133.00 -
October 29, 2013
CH September 27,2013 to 120 months 10.50-12.50
66.50 71.50 153.50 175.00 -
October 09, 2013
CG September 06,2013 to 120 months 10.50-12.50
28.00 38.50 59.50 124.00 -
September 27,2013
CF August 31, 2013 to 120 months 10.50-12.50
25.50 43.00 43.00 80.00 -
September 06, 2013
CE August12,2013 to 120 months 10.50-12.50
36.00 62.00 74.50 143.00 -
August 31, 2013
CD July 31, 2013 to August 120 months 10.50-12.50
41.00 61.00 71.50 134.00 -
10, 2013
CC July08,2013 to July 120 months 10.50-12.50
46.00 51.50 63.00 229.00 -
31, 2013
CB June 24, 2013 to 120 months 10.50-12.50
1,521.76 2,077.20 2,440.52 3,652.87 -
July 07, 2013
CA April 18, 2013 to 120 months 10.50-12.50
2,907.81 4,145.54 4,795.06 7,342.52 -
June 23, 2013
BZ March 01, 2013 to 120 months 10.50-12.50
2,835.20 3,766.67 5,003.35 7,567.57 6,523.46
April 17, 2013
BY January 18, 2013 to 120 months 10.50-12.50
2,627.20 3,009.28 4,427.38 6,276.10 7,749.70
February 28, 2013
CZ May 4, 2016 415.00 - - - - 60 months 9.25-9.50
CY February 03, 2016 260.00 260.00 - - - 60 months 9.50-9.75
CX November 3,2014 - 390.00 390.00 - - 60 months 10.00-12.00
CW May 8, 2014 60.50 72.00 155.00 - - 60 months 10.00-12.00
CV April 24,2014 97.00 111.00 146.50 - - 60 months 10.00-12.00
BX November 26, 2012 to 60 months 10.50-12.50
2,430.06 2,755.17 4,130.00 5,964.43 7,519.25
January 17, 2013
BW October 01, 2012 to 60 months 11.50-12.50
3,141.93 3,568.66 5,238.00 7,446.10 8,821.61
November 25, 2012
BV August 17, 2012 to 60 months 11.50-12.50
1,919.05 2,411.08 3,892.40 4,601.11 6,995.30
September 30, 2012
BU July 01, 2012 to 60 months 11.50-12.50
2,234.01 2,851.06 4,263.49 5,078.25 8,183.79
August 16, 2012
BT May 21, 2012 to 60 months 11.50-12.50
1,509.72 1,893.74 2,769.98 3,225.36 5,604.13
June 30, 2012
BS May 01, 2012 to 60 months 11.50-12.50
662.88 807.59 1,179.31 1,310.99 2,075.08
May 20, 2012
BR March 01, 2012 to 60 months 11.50-12.50
1333.89 2,562.96 3,261.20 4,075.08 6,631.28
April 30, 2012
BQ January 23, 2012 to 60 months 11.50-12.50
154.86 1,928.35 2,219.82 3,177.97 4,876.43
February 29, 2012
BP December 01, 2011 to 60 months 11.50-12.50
67.28 1,738.95 1,971.17 2,774.01 5,023.30
January 22, 2012
BO September 19, 2011 to 60 months 11.00-12.00
41.73 1,602.40 1,844.86 2,562.06 4,545.04
November 30, 2011
BN July 01, 2011 to 60 months 11.00-12.00
25.76 1,592.61 1,924.47 2,739.22 3,343.92
September 18, 2011
BM April 01, 2011 to 60 months 11.00-12.00
12.70 1,530.98 1,906.27 2,582.00 3,223.39
June 30, 2011
BL January 01, 2011 to 60 months 10.00-11.50
9.05 512.02 2,222.50 2,571.58 3,512.89
March 31, 2011
BK October 01, 2010 to 60 months 9.50-11.50
5.32 54.64 1,657.03 1,811.12 2,631.80
December 31, 2010
BJ July 01, 2010 to 60 months 9.50-11.00
5.34 19.82 1,047.85 1,253.13 1,859.17
September 30, 2010
BI April 01, 2010 to 60 months 9.00-10.50
1.61 6.10 594.68 752.79 1,552.50
June 30, 2010
BH January 01, 2010 to 60 months 9.00-10.50
2.08 5.62 126.04 668.84 892.78
March 31, 2010
BG October 01, 2009 to 60 months 9.50-10.50
1.45 2.77 22.43 489.18 703.94
December 31, 2009
BF July 01, 2009 to 60 months 10.5
1.83 2.01 8.28 624.99 873.08
September 30, 2009
BE April 01, 2009 to 60 months 10.50-11.50
0.54 0.68 3.24 235.57 481.96
June 30, 2009
BD January 01, 2009 to 60 months 11.00-12.00
2.86 3.03 4.15 41.27 312.79
March 31, 2009
BC September 22, 2008 to 60 months 11.00-12.00
0.38 0.44 1.14 6.57 305.14
December 31, 2008
BB July 10, 2008 to 60 months 11.00-11.50
0.11 0.25 0.87 3.93 126.88
September 21, 2008
BA July 03, 2008 to 60 months 11.00-11.50
- - - 0.05 15.86
July 09, 2008
AZ April 01, 2008 to 60 months 10.50-11.00
1.05 1.20 2.32 3.54 179.23
July 02, 2008
AY January 01, 2008 to 60 months 10.50-11.00
0.07 0.10 0.35 1.09 20.89
March 31, 2008
AX October 01, 2007 to 60 months 10.50-11.00
0.11 0.11 1.02 1.36 3.10
December 31, 2007
AW July 01, 2007 to 60 months 10.50-11.00
0.29 0.31 0.51 0.65 1.91
September 30, 2007
AV April 01, 2007 to 60 months 10.50-11.00
0.12 0.14 0.14 0.38 1.64
June 30, 2007
AE July 15, 2004 to 90 months 10.83-12.00
0.03 0.03 0.03 0.03 0.03
September 30, 2004
AU January 01, 2007 to
1.24 1.26 1.46 1.51 2.04 60 months 9 .00– 11.00
March 31, 2007
AT August 13, 2006 to 60 months 9.00-9.50
0.20 0.82 0.96 1.00 1.17
December 31, 2006
AS May 01, 2006 to 60 months 8.50-9.00
0.19 0.19 0.20 0.30 0.49
August 12, 2006
AR June 15, 2005 to 60 months 8.00-8.50
0.11 0.44 0.46 0.46 0.58
April 30, 2006
AQ April 01, 2005 to 60 months 8.00-8.50
0.03 0.37 0.37 0.37 0.37
June 14, 2005
Page | A-12
AP February 07, 2005 to 60 months 9.27-10.08
0.03 0.03 0.03 0.03 0.03
June 14, 2005
AO February 07, 2005 to 60 months 8.00-8.50
0.04 0.04 0.04 0.04 0.04
March 31, 2005
AN January 01, 2005 to 60 months 8.50-9.00
0.15 0.15 0.15 0.15 0.15
February 06, 2005
AI October 01, 2004 to 60 months 10.20-12.00
0.01 0.01 0.01 0.01 0.05
February 06, 2005
AD July 01, 2004 to 60 months 9.5
- 0.03 0.03 0.03 0.03
November 14, 2004
Total 25,190.08 40,908.85 59,839.07 81,579.61 94,596.22
Note 3.2: Secured Redeemable Non-Convertible Debentures - Listed

The Company privately placed Rated Secured Redeemable Non-Convertible Listed Debentures with an outstanding as follows
(Rs. in millions)
Redemption Period from
Series Date of Allotment As at March 31, 2017 As at March 31,2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013 Interest Rate(%)
the date of allotment
L4 January 12, 2012 - 1,000.00 1,000.00 1,000.00 1,000.00 60 Months 13
Total - 1,000.00 1,000.00 1,000.00 1000.00
Note 3.3: Secured Non-Convertible Debentures – Public Issue

The outstanding amount of Secured Rated Non-Convertible Listed Debentures raised through Public Issue for the years stood as follows
(Rs. in millions)
Series Date of Allotment As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013 Interest Rate(%)
PL 16 January 30, 2017 13000 - - - - 400 days,1.5,2,3,5 8.25-9.25

years
PL 15 May 12, 2016 4764 - - - - 400 days,1.5,2,3,5 8.75-9.75
Years
PL 14 January 20, 2016 3652.77 4,154.84 - - - 400 days,2,3,5 years 9.00-10.00
PL 13 October 14, 2015 3945.92 4,640.53 - - - 400 days,2,3,5 years 9.25-10.25
PL 12 April 23, 2015 2,266.78 2,710.85 - - - 400 days,2,3,5 years 9.75-10.75
PL 11 December 29, 2014 2,039.48 3,033.95 3,613.46 - - 400 days,2,3,5 years 10.25-11.25
PL 10 September 26, 2014 2,336.74 3,216.42 3,673.46 - - 400 days,2,3,5 years 10.25-11.50
PL 9 July 04,2014 2,345.26 3,793.10 4,297.45 - - 400 days,2,3,5 years 10.50-11.75
PL 8 April 02,2014 13.01 1,553.62 1,785.82 - - 400 days,2,3,5 years 10.50-11.75
PL 7 February 04,2014 37.87 2,458.54 3,969.92 4,562.43 - 400 days,2,3,5 years 11.00-12.25
PL 6 December 04, 2013 39.23 1,568.29 2,462.78 2,767.12 - 400 days,2,3,5 years 11.00-12.25
PL 5 September 25,2013 51.76 1,533.53 2,547.82 2,790.27 - 400 days,2,3,5 years 11.00-12.55
PL 4 November 01, 2012 926.18 926.18 1,114.75 2,749.40 2,749.40 2,3,5,6 years 11.50-12.25
PL 3 April 18, 2012 768.94 768.94 1,145.57 2,597.52 2,597.52 2, 3, 5, 5.5 years 13.00-13.43
PL 2 January 18, 2012 910.21 1,502.87 1,502.87 2,518.99 4,593.20 2, 3, 5, 5.5 years 13.00-13.43
PL 1 September 14, 2011 - 3,541.66 3,541.66 5,748.86 6,932.81 2, 3, 5 years 11.75-12.25
Total 37,098.15 35,403.32 29,655.56 23,734.59 16,872.93
Note 3.4: Subordinated Debt

Subordinated Debt is subordinated to the claims of other creditors and qualifies as Tier II capital under the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking
Company (Reserve Bank) Directions, 2016.The outstanding amount of privately placed subordinated debt stood as follows:
(Rs. in millions)
Series Date of Allotment As at March31,2017 As at March31,2016 As at March31,2015 As at March 31,2014 As at March 31,2013 Interest Rate(%)
XVII May 9, 2014 21.00 21.00 21.00 - - 72 months 11.61

XVI February 18 , 2014 to
March 31 2014
46.00 46.00 46.00 46.00 - 66months 12.67
XV December 22, 2013 to
February 17, 2014
98.50 98.50 98.50 98.50 - 66months 12.67
XIV September 18, 2013 to
December 21, 2013
298.00 298.00 298.00 298.00 - 66months 12.67
XIII July 08, 2013 to September
17, 2013 98.00 98.00 98.00 98.00 - 66months 12.67
XII April 01, 2013 to July 7

, 2013
1,825.15 1,825.15 1,825.15 1,825.15 - 66months 12.67
XI October 01, 2012 to
March 31, 2013
4,651.42 4,651.42 4,651.42 4,651.42 4,651.42 66months 12.67-13.39
X April 01, 2012 to
September 30, 2012
3,548.46 3,548.46 3,548.46 3,548.46 3,548.46 66months 12.67-13.39
IX November 01, 2011 to 4,081.07 4,081.07 4,081.07 4,081.07 4,081.07 66months 12.67-13.39
March 31, 2012
E\ March 21, 2005 - 65.94 65.94 65.94 65.94 144 months 15
VIII July 01, 2011 to October
686.46 2,343.85 2,343.85 2,343.85 2,343.85 66months 12.67
31, 2011
VII January 01, 2011to
26.06 437.28 437.28 437.28 437.28 72 months 11.61
February 07, 2011
VII April 01, 2011 to
June 30, 2011
30.24 1,270.32 1,270.32 1,270.32 1,270.32 66 months 12.67
VII February 08, 2011 to
March 31, 2011
8.99 1,080.40 1,080.40 1,080.40 1,080.40 66 months 12.67
VI July 01, 2010
29.60 1,912.71 1,912.71 1,912.71 1,912.71 72 months 11.61
to December 31, 2010
D April 03, 2004 - 14.06 14.06 14.06 14.06 144 months 15
V January 01, 2010
to June 30, 2010
3.06 537.54 1,038.65 1,038.65 1,038.65 72 months 11.61
C November 01, 2003 - - 98.75 98.75 98.75 144 months 15
B September 30, 2003 - - 110.00 110.00 110.00 144 months 15
IV August 17, 2009 to
December 31, 2009
2.13 11.20 759.31 759.31 759.31 72 months 11.61
IV July 01, 2009 to
August 16, 2009
0.05 0.16 12.42 12.42 12.42 72months 12.5
IV July 01, 2009
2.18 4.08 263.62 263.62 263.62 69months 12.12
to August 16, 2009
A March 25, 2003 - - - 111.25 111.25 144 months 15
III December 15, 2008 to
0.23 0.53 140.12 193.19 193.19 72 months 12.5
June 30, 2009
III December 15, 2008 to
0.95 2.27 90.22 744.89 744.89 69 months 12.12
June 30, 2009
II August 18, 2008
- 0.21 3.72 263.38 263.38 72 months 11.61
to December 13, 2008
Total 15,457.55 22,348.15 24,308.97 25,366.62 23,000.97
Page | A-13
Note 3.5: Subordinated Debt – Public Issue
The outstanding amount of Unsecured, Rated, Redeemable Non-Convertible, Listed Subordinated Debt which qualifies as Tier II capital under the Non-Banking Financial Company - Systemically Important
Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 issued through public issue is as follows:
(Rs. in millions)
Series Date of Allotment As at March 31,2017 As at March 31,2016 As at March 31,2015 As at March 31, 2014 As at March 31, 2013 Interest Rate(%)
PL 16 30.01.2017 317.76 - - - - 8 Years 9.06
PL 15 12.05.2016 236.00 - - - - 7.5 Years 9.67
PL 14 20.01.2016 230.39 230.39 - - - 7.25 Years 10.02
PL 13 14.10.2015 359.47 359.47 - - - 7 Years 10.41
Pl 12 23.04.2015 289.15 289.15 - - - 6.75 Years 10.80
PL 11 29.12.2014 386.54 386.54 386.54 - - 6.5 Years 11.23
PL 10 26.09.2014 304.36 304.36 304.36 - - 6.5 Years 11.23
PL 9 04.07.2014 364.49 364.49 364.49 - - 6.25 Years 11.70
PL 8 02.04.2014 193.46 193.46 193.46 - - 6.25 Years 11.70
PL 7 04.02.2014 437.57 437.57 437.57 437.57 - 6 Years 12.25
PL 6 04.12.2013 232.88 232.88 232.88 232.88 - 6 Years 12.25
PL 5 25.09.2013 209.74 209.74 209.74 209.74 - 6 Years 12.25
Total 3,561.81 3,008.05 2,129.04 880.19 -
Note 3.6: Subordinated Debt Listed

The privately placed Unsecured, Rated, Redeemable Non-Convertible Listed Subordinated Debt which qualifies as Tier II capital under the Non-Banking Financial Company - Systemically Important Non-Deposit taking
Company and Deposit taking Company (Reserve Bank) Directions, 2016 is as follows:
(Rs. in millions)
Series Date of Allotment As at March 31,2017 As at March 31,2016 As at March 31,2015 As at March 31, 2014 As at March 31, 2013 Interest Rate(%
IA 26.03.2013 100.00 100.00 100.00 100.00 100.00 10 years 12.35
Total 100.00 100.00 100.00 100.00 100.00
Page | A-14
Note 4: Other long term liabilities
(Rs. in millions)
Particulars As at March 31,2017 As at March 31,2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013
Interest accrued but not due on long term borrowings 6,643.08 11,156.87 12,012.58 8,909.19 5,568.50
Security Deposit Received 76.61 111.42 65.52 65.89 65.34
Total 6,719.69 11,268.29 12,078.10 8,975.08 5,633.84
Note 5: Other current liabilities

(Rs. in millions)
Particulars As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31,2013
(a) Current maturities of long-term debt (Refer Note No. 5.1) 39,993.67 49,272.35 49,628.95 65,086.85 66,474.92
(b ) Interest accrued but not due on borrowings 12,518.94 9,901.17 6,136.03 6,372.98 5,455.93
(c) Interest accrued and due on borrowings 98.55 147.35 150.46 248.41 620.52
(d) Unpaid matured debentures and interest accrued thereon (Refer Note No. 5.2) 1,594.61 954.31 398.00 71.79 108.36
(e) Other payables
Statutory Payables 228.80 376.08 203.60 217.16 160.90
Unpaid Dividend 3.26 4.52 2.31 2.16 0.44
Interim Dividend Payable 2,396.85 - - - -
Corporate Dividend Tax Payable 487.95 - - - -
Others 619.45 233.17 17.94 15.00 7.78
Total 57,942.08 60,888.95 56,537.29 72,014.35 72,828.85
Note 5.1 Current maturities of long-term debt

(Rs. in millions)
Particulars As at March 31, 2017 As at March 31,2016 As at March 31,2015 As at March 31,2014 As at March 31,2013
Secured
Secured Non- Convertible Debentures 19,195.61 25,917.31 41,898.04 54,917.90 54,216.82
(Secured by mortgage of immovable property and paripassu floating charge on current
assets, book debts and Loans & advances)
Secured Non-Convertible Debentures - - - - 15.86
Secured Non-Convertible Debentures – Listed 12,756.63 16,208.26 5,758.47 7,449.22 3,258.16

From Banks
Term loan (Secured by specific charge on Vehicles) 0.08 0.48 4.98 5.72 4.14
Term Loan (Secured by paripassu floating charge on current assets ,book debts, Loans - - - 1,521.70 3,978.30
& Advances and is additionally secured by personal guarantee of Promoter Directors)

Term Loan (Secured by paripassu floating charge on current assets, book debts and - - - - 5,000.00
Loans & advances and personal guarantee of Promoter Directors)
Unsecured
Subordinated Debt 8,039.44 7,059.59 1,756.82 1,075.62 -
Subordinated Debt –From Related Parties 0.21 84.15 209.24 114.88 -
Total 39,993.67 49,272.35 49,628.95 65,086.85 66,474.92
Note 5.2 Unpaid matured debentures and interest thereon:

(Rs. in millions)
Particulars As at March 31,2017 As at March 31,2016 As at March 31,2015 As at March 31,2014 As at March 31,2013
Unpaid Matured debentures 1,104.94 739.40 286.06 62.75 81.82
Interest accrued on Unpaid matured debentures 489.67 214.91 111.94 9.04 26.54
Total 1,594.61 954.31 398.00 71.79 108.36
Note 6: Short term provisions

(Rs. in millions)
Proposed Equity Dividend - - 795.93 371.71 1,672.71
Provision for Corporate Dividend Tax - - 159.14 63.17 271.35
Provision for Non-Performing Assets (Refer Note: 6.1) 1,019.27 1,019.27 725.38 725.38 700.63
Provision for Standard Assets (Refer Note: 6.1)
- As per RBI Prudential Norms 935.07 710.29 572.42 536.14 646.54
- General 1,750.40 1,657.35 572.42 428.91 129.31
- Gold Price Fluctuation Risk 2,330.00 - - - -
Provision for Other Losses 3.16 0.51 - - -
Provision for Income Tax (Net of Advance tax and TDS) 471.14 1,738.75 162.72 53.08 262.47
Total 6,509.04 5,126.17 2,988.01 2,178.39 3,683.01
Note 6.1: Movement of Provision for Standard and Non-Performing Assets

As per the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016, Company has created provision for Standard
Assets as well as Non-Performing Assets. Company has separately created General Standard Asset Provision and Gold Price Fluctuation Risk Standard Asset Provision over and above RBI Prudential norms, as
estimated by the management. Details are as per the table below:-
(Rs. in millions)
Provision for Standard Assets
Standard Assets 2,67,164.06 2,36,764.48 2,28,969.14 2,14,454.84 2,58,617.87
Provision at the beginning of the year
-As per RBI Prudential Norms 710.29 572.42 536.14 646.54 529.99
-General 1,657.35 572.42 428.91 129.31 -
-Gold Price Fluctuation Risk - - - - -
Additional provision made/(Reversed) during the year
- As per RBI Prudential Norms 224.78 137.87 36.28 (110.40) 116.55
- General 93.05 1,084.93 143.51 299.60 129.31
-Gold Price Fluctuation Risk 2,330.00 - - - -
Provision at the close of the year
- As per RBI Prudential Norms 935.07 710.29 572.42 536.14 646.54
- General 1,750.40 1,657.35 572.42 428.91 129.31
-Gold Price Fluctuation Risk 2,330.00 - - - -
Total 5,015.47 2,367.64 1,144.84 965.05 775.85
Provision for Non-Performing Assets

Substandard Assets 4,967.76 6,668.31 4,884.57 4,017.54 5,129.73
Doubtful assets 653.54 356.30 232.09 142.97 120.57
Total Non-Performing Assets 5,621.30 7,024.61 5,116.66 4,160.51 5,250.30
Provision at the beginning of the year 1,019.27 725.38 725.38 700.63 181.30
Additional provision made during the year - 293.89 - 24.75 519.33
Provision at the close of the year 1,019.27 1,019.27 725.38 725.38 700.63
Page | A-15
Note 7: Fixed Assets
(Rs. in millions)
Gross Block Accumulated Depreciation Net Block
As at As at As at As at As at As at As at As at As at As at As at As at As at As at As at
Particulars
March 31,2017 March 31, 2016 March 31,2015 March 31,2014 March 31,2013 March 31,2017 March 31, 2016 March 31,2015 March 31,2014 March 31,2013 March 31,2017 March 31, 2016 March 31,2015 March 31,2014 March 31,2013
Tangible Assets
Land 546.70 546.70 546.51 546.51 545.86 - - - - 546.70 546.70 546.51 546.51 545.86
Building 763.82 692.75 692.61 687.83 560.15 268.71 221.41 168.80 110.45 85.01 495.11 471.34 523.81 577.38 475.14
Furniture& Fixtures 1,276.69 1,221.61 1,182.57 1,140.90 1,007.87 1,010.73 897.69 758.28 563.44 428.12 265.96 323.92 424.29 577.46 579.75
Plant & Equipment 1,995.81 1,848.58 1,755.96 1,631.10 1,340.79 1,405.59 1,172.20 891.34 532.91 364.74 590.22 676.38 864.62 1,098.19 976.05
Computer 897.46 837.17 811.97 728.50 579.83 820.57 770.65 709.52 473.98 350.56 76.89 66.52 102.45 254.52 229.27
Motor Car 84.3 82.72 79.34 75.22 74.59 60.74 54.91 50.25 39.79 30.40 23.56 27.81 29.09 35.43 44.19
Wind Mill 180.60 180.59 180.60 180.60 180.60 157.25 155.14 152.85 150.35 142.78 23.35 25.45 27.75 30.25 37.82
Sub Total 5,745.38 5,410.12 5,249.56 4,990.66 4,289.69 3,723.59 3,272.00 2,731.04 1,870.92 1,401.61 2021.79 2138.12 2518.52 3119.74 2888.08
Intangible Assets
Computer Software 126.79 90.13 81.24 17.88 15.23 66.27 43.43 26.73 11.81 9.53 60.52 46.70 54.51 6.07 5.70
Sub Total 126.79 90.13 81.24 17.88 15.23 66.27 43.43 26.73 11.81 9.53 60.52 46.70 54.51 6.07 5.70
Capital work in Progress - - - - - - - - - - 99.75 88.90 63.32 83.79 95.96
Intangible Assets under Development

Computer Software - - - - - - - - - - - - 5.32 60.27 40.43
Total 5,872.17 5,500.25 5,330.80 5,008.54 4,304.92 3,789.86 3,315.43 2,757.77 1,882.73 1,411.14 2,182.06 2,273.72 2,641.67 3,269.87 3,030.17
Page | A-16
Note 8: Non Current Investments
Non – Current Investments in Equity instruments, Government Securities and Debentures (Valued at cost less other than temporary diminution in value, if any) :-
(Rs. in millions)
Particulars As at March 31,2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013
Trade Investments
(i) Investments in Equity Instruments:
- In Subsidiary Companies
Quoted:
Asia Asset Finance PLC, Srilanka
503,524,700 equity shares of LKR 1/- each fully paid up. 392.85 386.75 338.12 - -
Unquoted:
Muthoot Homefin (India) Limited
66,200,000 equity shares of Rs. 10/- each fully paid up. 752.70 449.12 - - -
Muthoot Insurance Brokers Private Limited

200.00 - - - -
500,000 Equity share of Rs. 10/- each fully paid up
15,017,459 Equity share of Rs. 10/- each fully paid up 626.75 - - - -
- In Other Companies
Unquoted:
Muthoot Forex Ltd
1,970,000 equity shares of Rs. 10/- each fully paid up. 19.70 19.70 19.70 19.70 45.00
Muthoot Securities Limited

2,700,000 equity shares of Rs. 10/- each fully paid up. 27.00 27.00 27.00 27.00 30.00
(ii) Investment in Debentures:

- In Subsidiary Companies
Unquoted:
Belstar Investment and Finance Private Limited 10, 15% Unsecured Subordinated
Redeemable Non-convertible Debentures of Rs. 1,000,000/- each fully paid up 10.00 100.00 - - -
Other Investments
(i) Investments in Equity Instruments:
-In Other Companies
Quoted:
Union Bank of India
454 equity shares of Rs. 10/- each fully paid up 0.05 0.05 0.05 0.05 0.05
(i) Investments in Government Securities:

Quoted:
Gujarat State Development Loan
50,000, 8.89% bonds of Rs.100 each and 100,000, 8.94% bonds of Rs.100 each 15.41 - - - -
Kerala State Development Loan

100,000, 9.03% bonds of Rs.100 each and 100,000, 9.72% bonds of Rs.100 each 20.69 - - - -
Karnataka State Development Loan 50,000, 8.90% bonds of Rs.100 each 5.20 - - - -
Tamilnadu State Development Loan 100,000, 9.49% bonds of Rs.100 each 10.43 - - - -
Punjab State Development Loan 100,000, 9.81% bonds of Rs.100 each 10.38 - - - -
Total Non-Current Investments 2091.16 982.62 384.87 46.75 75.05
Particulars
As at March 31, 2017 As at March31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013
Aggregate amount of Quoted investments 455.01 386.80 338.17 0.05 0.05
Aggregate Market value of Quoted investments 366.06 284.64 314.54 0.06 0.10
Aggregate amount of Unquoted investments 1,636.15 595.82 46.70 46.70 75.00
Note 9: Long term loans and advances

(Rs. in millions)
Particulars As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013
Loan Assets (Refer Note:13.1)
Secured Considered good
- Related parties
Belstar Investment and Finance Private Ltd (Subsidiary) 116.67 - - - -
Other Deposits and Advances
Unsecured, considered good
Capital Advances 79.04 58.00 34.07 78.28 220.54
Security Deposits 889.55 944.98 950.18 941.17 824.68
Total 1,085.26 1,002.98 984.25 1,019.45 1,045.22
Note 10: Current Investments

(Rs. in millions)
Current Investment (At lower of cost or market value)
Unsecured Redeemable Non Convertible Bonds in Yes Bank Limited - - - 307.00 750.00
Total - - - 307.00 750.00

Aggregate amount of Quoted investments - - - 307.00 750.00
Page | A-17
Note 11: Trade receivables
Trade receivables outstanding for a period less than six months from the date they
are due for payment
Secured, considered good
Interest Receivable on Loan Assets 12,568.98 9,489.44 11,108.17 10,600.20 10,910.00
Interest Receivable on Loan Assets - 0.29 6.29 1.08 4.33
Receivables from Money Transfer business 117.12 158.80 173.29 265.29 300.70
Receivables from Auction Proceeds - 5,012.61 244.90 770.98 242.41
Wind Mill income receivable 3.29 1.38 0.70 2.13 2.64
Sub Total 12,689.39 14,662.52 11,533.35 11,639.68 11,460.08
Trade receivables outstanding for a period exceeding six months from the date they
are due for payment
Wind Mill income receivable 16.66 10.13 5.61 - 21.69
Sub Total 16.66 10.13 5.61 - 21.69
Total 12,706.05 14,672.65 11,538.96 11,639.68 11,481.77
Note 12: Cash and bank balances

I. Cash and Cash Equivalents
a. Cash on hand 1,627.32 1,476.10 2,469.33 2,347.06 1,836.16
b. Balances with banks
- Current Accounts 11,264.66 5,288.34 14,773.93 16,872.85 10,845.23
- Fixed Deposits (maturing within a period of 3 months ) - - 100.00 350.00 720.00
II. Other Bank Balances
Fixed Deposits on which lien is marked 1.35 1.23 1.15 0.57 0.45
Balance in other Escrow Accounts - - - -
- Interim Dividend 2,396.85 - - - -
-Unpaid Dividend Account 3.26 4.52 2.31 2.16 0.44
- Unclaimed Interest and redemption proceeds of Non Convertible debentures- 31.74 4.18 3.15 - -
Public Issue
Fixed Deposits given as Security for Borrowings 11.77 11.58 11.75 13.72 13.83
Fixed Deposits given as Security against Guarantees 5.59 5.15 4.55 3.69 3.87
Other Fixed Deposits - - - 899.21 -

Total 15,342.54 6,791.10 17,366.17 20,489.26 13,419.98
Out of the above, Fixed Deposits with more than 12 months maturity - 1.66 1.81 1.13 5.19
Note 13: Short term loans and advances

Loan Assets ( Refer note 13.1)
Secured, Considered good
- Related parties
- Other than Related parties 2,66,801.98 2,36,469.46 2,28,383.46 2,14,415.19 2,58,543.79
Secured, Doubtful 5,435.99 7,018.95 5,115.56 4,160.51 5,250.31
Unsecured, considered good 178.74 295.02 585.69 39.64 74.08
Unsecured, Doubtful 185.31 5.66 - - -
Other Deposits & Advances
Prepaid Expenses 43.22 42.61 39.14 28.84 73.76
Service tax Pre-Deposit 8.95 8.33 8.33 8.30 8.30
Others 435.80 397.66 271.72 272.52 161.07
Unsecured, considered doubtful 0.15 - 1.10
Total 2,73,156.80 2,44,237.69 2,34,405.00 2,18,925.00 2,64,111.31
Note 13.1: Loan Assets

Loan Assets 2,72,785.35 2,43,789.09 2,34,084.71 2,18,615.35 2,63,868.18
Break-up of Loan Assets

Gold Loan Receivables 2,72,199.60 2,43,355.41 2,33,499.02 2,16,179.10 2,60,003.73
Other Loans
- Related parties
- Other than Related parties 402.42 433.68 585.69 2,436.25 3,864.45
Note 14: Other current assets

Interest receivable on Bank Deposits 0.52 0.73 0.08 3.33 14.30
Interest receivable on Current Investments - - - 8.03 19.62
Stock of gold 6.10 6.10 23.12 19.89 19.78
Total 6.62 6.83 23.20 31.25 53.70
Page | A-18
ANNEXURE-V: NOTES TO REFORMATTED STANDALONE SUMMARY STATEMENT OF PROFIT AND LOSS
Note 16: Revenue from operations

Particulars March March March March March
31, 2017 31, 2016 31, 2015 31, 2014 31, 2013
Interest Income on Loan Assets 56,368.88 47,995.24 42,608.81 48,920.42 53,360.14

Income from Windmill 19.95 11.44 13.83 13.70 24.65
Other Operating Income 897.44 607.33 515.38 344.70 204.19
Total 57,286.27 48,614.01 43,138.02 49,278.82 53,588.98
Note 17: Other Income

Particulars March March March March March 31,
31, 2017 31, 2016 31, 2015 31, 2014 2013
Interest Income – Others 152.64 130.15 93.95 70.99 195.64

Interest on Income Tax Refund - 0.52 - - -
Income from investments 24.86 4.39 13.18 85.78 85.70
Profit on sale of Long Term Invesment - - - 37.95 -
Profit on sale of Fixed Assets - - - - -
Other non-operating income 3.24 1.08 1.21 0.83 1.04
Total 180.74 136.14 108.34 195.55 282.38
Note 18: Employee Benefits Expense

31, 2017 31, 2016 31, 2015 31, 2014 31, 2013
Salaries and incentives 6,680.91 5,773.04 5,632.55 5,295.29 4,983.95

Contribution to Provident and Other Funds 461.04 429.72 365.87 380.3 359.1
Expenses on Employee Stock Option Plan 36.19 115.3 194.9 98.73 0
Staff welfare expenses 102.34 100.72 110.95 142.8 109.7
Total 7,280.48 6,418.78 6,304.27 5,917.12 5,452.75
Note 19: Finance Costs

31, 2017 31, 2016 31, 2015 31, 2014 31, 2013
Interest Expenses 22,674.11 22,418.31 20,836.91 25,664.66 27,623.93
Other Borrowing Costs 264.04 158.62 226.65 595.22 570.51
Total 22,938.15 22,576.93 21,063.56 26,259.88 28,194.44
Page | A-19
Note 20: Other expenses
31, 2017 31, 2016 31, 2015 31, 2014 31, 2013
Postage, Telegram and Telephone 372.10 378.10 370.71 363.89 242.74
Printing and Stationery 128.98 143.74 160.37 184.91 168.29
Rent Paid 1807.85 1,712.98 1,649.53 1,541.70 1,309.25
Travelling and Conveyance 186.48 187.39 211.69 189.93 175.84
Bank Charges 42.02 18.63 16.25 36.61 38.79
Electricity Charges 261.08 245.65 225.95 221.64 186.71
Repairs and Maintenance – Buildings 91.94 84.31 77.29 61.14 77.40
Repairs and Maintenance - Plant &Machinery 188.66 127.08 116.64 85.13 86.21
Repairs and Maintenance – Others 35.18 2.49 48.36 126.16 92.01
ATM Service Charges 47.11 76.40 38.76 - -
Water Charges 6.08 5.18 5.33 4.60 6.20
Rates & Taxes and License Fee 38.55 35.27 46.96 62.42 27.19
Legal & Professional Charges 124.11 92.42 188.75 215.96 86.42
Insurance Charges 60.57 56.74 45.62 43.09 32.79
Newspaper and Periodicals 0.18 1.93 3.18 5.67 2.81
Business Promotion Expense 200.54 148.87 139.64 279.45 331.92
Advertisement 531.81 626.12 650.64 702.16 579.14
Vehicle Hire & Maintenance 14.79 13.58 12.59 11.67 10.29
Internal Audit and Inspection Expenses 85.89 82.22 92.69 117.22 110.31
Remuneration to Auditors 3.36 2.98 2.36 1.80 1.45
Directors' Sitting Fee 0.66 0.38 0.42 0.28 0.26
Commission to Non-Executive Directors 3.50 3.00 1.77 1.60 1.60
Loss on Sale of Fixed Assets 0.76 0.11 0.13 0.08 0.21
CSR Expense 150.00 146.19 89.21 - -
TOTAL 4,382.20 4,191.76 4,194.84 4,257.11 3,567.83
Note 21: Provisions and write offs

31, 2017 31, 2016 31, 2015 31, 2014 31, 2013
Provision For Non Performing Assets - 293.89 - 24.75 519.33
Provision For Standard Assets
- As per RBI Prudential Norms 224.78 137.87 36.28 (110.40) 116.55
- General 93.05 1,084.93 143.51 299.60 129.31
- Gold Price Fluctuation Risk 2,330.00 - - - -
Provision for Other Losses 2.64 0.51 - - -
Bad Debt Written Off 165.44 107.19 191.64 224.14 130.27
TOTAL 2,815.91 1,624.39 371.43 438.09 895.46
Page | A-20
ANNEXURE VI – REFORMATTED STANDALONE SUMMARY STATEMENTS OF SIGNIFICANT ACCOUNTING POLICIES
A. BACKGROUND
Muthoot Finance Ltd. was incorporated as a private limited Company on 14th March 1997 and was converted into a public limited Company on 18th November 2008. The
Company is promoted by Mr. M. G. George Muthoot, Mr. George Thomas Muthoot, Mr. George Jacob Muthoot and Mr. George Alexander Muthoot collectively operating
under the brand name of ‘The Muthoot Group’, which has diversified interests in the fields of Financial Services, Healthcare, Education, Plantations, Real Estate, Foreign
Exchange, Information Technology, Insurance Distribution, Hospitality etc. The Company obtained permission from the Reserve Bank of India for carrying on the business of
Non-Banking Financial Institutions on 13.11.2001 vide Regn No. N 16.00167. The Company is presently classified as Systemically Important Non Deposit Taking NBFC
(NBFC-ND-SI).
The Company made an Initial Public Offer of 51,500,000 Equity Shares of the face value Rs. 10/- each at a price of Rs. 175/- raising Rs. 9,012,500,000.00 during the month of
April 2011. The equity shares of the Company are listed on National Stock Exchange of India Limited and BSE Limited from 6 th May 2011.
B. SIGNIFICANT ACCOUNTING POLICIES ADOPTED BY THE COMPANY IN THE PREPARATION OF FINANCIAL STATEMENTS AS AT AND FOR
THE YEAR ENDED MARCH 31, 2017.
1. ACCOUNTING CONCEPTS
The financial statements of the Company are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the
Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the
Companies Act, 2013 and / or Companies Act, 1956 , as applicable. The financial statements are prepared on accrual basis under the historical cost convention. The accounting
policies adopted in the preparation of the financial statements are consistent with those followed in the previous year. The Company follows prudential norms for income
recognition, asset classification and provisioning as prescribed by Reserve Bank of India vide Non-Banking Financial Company - Systemically Important Non-Deposit taking
Company and Deposit taking Company (Reserve Bank) Directions, 2016.
2. USE OF ESTIMATES
The preparation of the financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date,
reported amount of income and expenses during the reporting period and disclosure of contingent liabilities as at that date. The estimates and assumptions used in these
financial statements are based upon the management evaluation of the relevant facts and circumstances as of the date of the financial statements. Management believes that
these estimates and assumptions used are prudent and reasonable. Future results may vary from these estimates.
3. REVENUE RECOGNITION
Revenues are recognized and expenses are accounted on accrual basis with necessary provisions for all known liabilities and losses. Revenue is recognised to the extent it is
realizable wherever there is uncertainty in the ultimate collection. Income from Non-Performing Assets is recognized only when it is realized. Income and expense under
bilateral assignment of receivables accrue over the life of the related receivables assigned. Interest income and expenses on bilateral assignment of receivables are accounted on
gross basis. Interest income on deposits are recognised on time proportionate basis.
4. EMPLOYEE BENEFITS
A) Short Term Employee Benefits:
Short Term Employee Benefits for services rendered by employees are recognized during the period when the services are rendered.
B) Post employment benefits:

a) Defined Contribution Plan
Provident Fund
All eligible employees of the company are entitled to receive benefits under the provident fund, a defined contribution plan in which both the employee and the company
contribute monthly at a stipulated percentage of the covered employees salary. Contributions are made to Employees Provident Fund Organization in respect of Provident Fund,
Pension Fund and Employees Deposit Linked Insurance Scheme at the prescribed rates and are charged to Statement of Profit & Loss at actuals.The company has no liability
for future provident fund benefits other than its annual contribution.
b) Defined Benefit Plan

Gratuity
The Company provides for gratuity covering eligible employees underwhich a lumpsum payment is paid to vested employees at retirement , death , incapacitation or termination
of employment , of an amount reckoned on the respective employee's salary and his tenor of employment with the Company.The Company accounts for its liability for future
gratuity benefits based on actuarial valuation determined at each Balance Sheet date by an Independent Actuary using Projected Unit Credit Method. The Company makes
annual contribution to a Gratuity Fund administered by Trustees and separate schemes managed by Kotak Mahindra Old Mutual Life Insurance Limited and ICICI Prudential
Life Insurance Company Limited. The Company recognizes the net obligation of the gratuity plan in the Balance Sheet as an asset or liability , respectively in accordance with
Accounting Standard 15 , 'Employee Benefits'. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the
Statement of Profit and Loss in the period in which they arise.
c) Employee share based payments

Stock options granted to the employees under the stock option scheme established are accounted as per the accounting treatment prescribed by the SEBI (Employee Stock
Option Scheme and Employee Stock Purchase Scheme ) Guidelines, 1999 / SEBI (Share Based Employee Benefits) Regulations , 2014 issued by Securities Exchange Board of
India. The company follows the intrinsic value method of accounting for the options and accordingly, the excess of market value of the stock options as on the date of grant over
the exercise price of the options, if any, is recognized as deferred employee compensation cost and is charged to the Statement of Profit and Loss on graded vesting basis over
the vesting period of the options.
5. FIXED ASSETS
Fixed assets are stated at historical cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition
for its intended use.
Page | A-21
Depreciation is charged at the rates derived based on the useful lives of the assets as specified in Schedule II of the Companies Act, 2013 on Written Down Value method. All
fixed assets costing individually upto Rs.5000/- is fully depreciated by the company in the year of its capitalisation.
6. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded, on initial recognition, by applying to the foreign currency amount the exchange rate at the date of the transaction. Foreign currency
monetary assets and liabilities are reported using the exchange rate as on the Balance Sheet date. Non-monetary items, which are carried in terms of historical cost denominated
in foreign currency, are reported using the exchange rate at the date of the transaction. Exchange differences arising on the settlement of monetary items are recognised as
income or as expenses in the period in which they arise.
7. INTANGIBLE ASSETS
Intangible Assets are amortized over their expected useful life. It is stated at cost, net of amortization. Computer Software is amortized over a period of five years on straight
line method.
8. TAXES ON INCOME
Income Tax expenses comprises of current tax and deferred tax (asset or liability). Current tax is the amount of tax payable on the taxable income for the year determined in
accordance with the provisions of the Income Tax Act 1961. Deferred tax is recognized, on timing differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised only to the extent that there is a reasonable
certainty that sufficient future income will be available except that deferred tax assets , in case there are unabsorbed depreciation or losses, are recognised if there is virtual
certainty that sufficient future taxable income will be available to realise the same. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at
each reporting date. Deferred tax assets and deferred tax liabilities are offset wherever the company has a legally enforceable right to set off current tax assets against current
tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.
9. INVESTMENTS
Investments intended to be held for not more than one year are classified as current investments. All other investments are classified as non-current investments. Current
investments are carried at lower of cost and fair value determined on an individual investment basis. Non-Current investments are carried at cost. However, provision for
diminution in value is made to recognise a decline, other than temporary, in the value of the investments.
10. IMPAIRMENT OF ASSETS
The carrying amounts of assets are reviewed at each balance sheet date to ascertain impairment based on internal / external factors. An impairment loss is recognized when the
carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the net selling price of the assets or their value in use. After impairment,
depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending
on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if
there was no impairment.
11. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise of cash at bank, cash in hand and bank deposits having maturity of 3 months or less.
12. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
Provisions are recognized only when the Company has present, legal or constructive obligations as a result of past events, for which it is probable that an outflow of economic
benefit will be required to settle the transaction and a reliable estimate can be made for the amount of the obligation.
Contingent liability is disclosed for

(i) possible obligations which will be confirmed only by future events not wholly within the control of the Company or
(ii) present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount
of the obligation cannot be made.
Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.
13. DEBENTURE REDEMPTION RESERVE
In terms of Section 71 of the Companies Act, 2013 read with Rule 18 (7) of Companies (Share Capital and Debentures) Rules 2014 , the Company has created Debenture
Redemption Reserve in respect of Secured Redeemable Non-Convertible Debentures and Unsecured Redeemable Non-Convertible Debentures issued through public issue as
per SEBI (Issue and Listing of Debt Securities) Regulations, 2008.
No Debenture Redemption Reserve is to be created for privately placed debentures of Non-Banking Finance Companies.
14. PROVISION FOR STANDARD ASSETS AND NON PERFORMING ASSETS
The Company makes provision for standard assets and non performing assets as per Non-Banking Financial Company - Systemically Important Non-Deposit taking Company
and Deposit taking Company (Reserve Bank) Directions, 2016. Provision for standard assets in excess of the prudential norms, as estimated by the management, is categorised
under Provision for Standard Assets , as General provisions and/or as Gold Price Fluctuation Risk provisions.
15. LEASES
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as operating leases.
Where the Company is the Lessor:
Assets given on operating leases are included in fixed assets. Lease income is recognised in the Statement of Profit and Loss on a straight-line basis over the lease term. Costs,
including depreciation are recognised as an expense in the Statement of Profit and Loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognised immediately
in the Statement of Profit and Loss.
Where the Company is the lessee:
Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straightline basis over the lease term.
Page | A-22
16. SEGMENT REPORTING
Identification of segments:
a) The Company’s operating businesses are organized and managed separately according to the nature of services provided, with each segment representing a strategic business
unit that offers different products and serves different markets. The Company has identified two business segments – Financing and Power Generation.
b) In the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, Company has identified business segment as the
primary segment for the purpose of disclosure.
c) The Company operates in a single geographical segment. Hence, secondary geographical segment information disclosure is not applicable.
d) The segment revenues, results, assets and liabilities include the respective amounts identifiable to each of the segment and amounts allocated on a reasonable basis.
Unallocated items:
Unallocated items include income, expenses, assets and liabilities which are not allocated to any reportable business segment.
Segment Policies:
The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a
whole.
17. CURRENT / NON-CURRENT CLASSIFICATION OF ASSETS / LIABILITIES
The Company has classified all its assets / liabilities into current / non-current portion based on the time frame of 12 months from the date of financial statements. Accordingly,
assets/liabilities expected to be realised /settled within 12 months from the date of financial statements are classified as current and other assets/ liabilities are classified as non-
current.
Page | A-23
ANNEXURE-VII: DETAILS OF RATES OF DIVIDEND
(Rs. in millions)
Face Value (Rs/ As at March As at March As at March As at March As at March
Particulars 31, 2017 31, 2016 31, 2015 31, 2014 31, 2013
Share)
Class of Shares
Equity Share Capital 10.00 3,994.76 3,990.02 3,979.66 3,717.13 3,717.13
Dividend
(Rs. in millions)
Particulars 31, 2017 31, 2016 31, 2015 31, 2014 31, 2013
- Rate on the face value 60% 60% 60% 60% 45%
- Amount 2,396.85 2,393.26 2,409.54 2,230.27 1,672.71
Dividend Tax 487.95 486.59 433.37 379.04 271.35

Note:
The amount paid as dividends in the past are not necessarily indicative of the Company’s dividend policy in the future.
Page | A-24
ANNEXURE VIII: STATEMENT OF CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) :-
(Rs. in millions)
Particulars As at March 31, As at March 31, As at March 31, As at March 31, As at March 31,
2017 2016 2015 2014 2013
(i)Contigent Liabilities
a) Claims against the Company, not acknowledged as debt
i) Service Tax demand for the period 2003-2008, pending in appeal with CESTAT, Bangalore (Net of amount
49.92 49.92 49.92 49.92 49.92
already remitted).
Commissioner of Central Excise, Customs and Service Tax, Kochi has raised a demand of Rs. 52 .01millionas
Service tax liability and penalty. During the course of the proceedings, Company paid Rs. 2.09 million. The
Appellate Authority admitted the appeal preferred by the company and granted stay of recovery, on predeposit of Rs.
8.3 million.Pending disposal of appeal, no provision has been made by the company during the year.
ii) Service Tax demand for the period from 2007-08 to 2011-12 as per Order No.COC-EXCUS-000-COM-035-14-
15 DT.19.12.2014, served on 30.12.2014, pending in appeal with CESTAT, Bangalore. 4,895.88 4,895.88 4,895.88 - -
Commissioner of Central Excise, Customs and Service Tax, Kochi, as per order mentioned above, has raised a
demand of Rs. 1,531.46 million as service tax payable on securitisation transactions with banks for the period from
2007 to 2012, along with interest U/s.75, Penalty U/s.76, Penalty U/s.77 and Penalty U/s.78 (Total liability
including tax, interest and penalty under various sections if confirmed is estimated approximately at Rs. 4,895.88
million till date of demand) . Pending disposal of appeal , no provision has been made by the company during the
year.
iii) Service Tax demand for the financial year 2013-14 as per Order No.03/2015-ST DT.20.01.2015, served on
0.79 0.79 0.79 - -
23.01.2015, pending in appeal before CESTAT, Bangalore.
Deputy Commissioner of Central Excise & Customs, & Service Tax, Kochi, as per order mentioned above, has
raised a demand of Rs. 0.79 million (including penalty U/s 77 (2) and 78) as service tax payable, on foreign
payments during financial year 2013-14. Appeal filed before Commissioner (Appeals), Kochi rejected. Pending
disposal of appeal filed before CESTAT, Bangalore, no provision has been made by the company during the year.
iv) Service Tax demand for the period 2010-2011 to 2012-13 as per Order No.04-15-16 dated 11.05.2015, pending
44.57 44.57 - - -
in appeal with CESTAT, Bangalore.
Commissioner of Central Excise, Customs & Service Tax, Kochi, as per order mentioned above has raised a demand
of Rs. 26.00 million along with penalty U/s 76 and 78, as service tax payable, on money transfer commission
received during financial years 2010-11 to 2012-13. Total liability of tax and penalty if confirmed is estimated at
Rs. 44.57 million. Pending disposal of the appeal, no provision has been made by the company during the year.
v) Service Tax demand for the period 2008-09 to 2010-2011 as per Order No.32/2015 dated 30.04.2015 pending in
2.16 2.16 - - -
appeal with CESTAT, Bangalore.
Joint Commissioner of Central Excise, Customs & Service Tax, Kochi, as per order mentioned above has raised a
demand of Rs. 2.16 million (including penalty under Rule 15 and Section 78) as service tax payable, stating that
some CENVAT credit was wrongly availed during the period 2008-09 to 2010-11. Appeal filed by the company
before Commissioner (Appeals), Kochi has been rejected. Pending disposal of appeal filed before CESTAT,
Bangalore against the above order, no provision has been made by the company during the year.
vi) Service Tax demand relating to foreign payments for the period 2007-08 to
2012-2013 as per consolidated Order Nos.70 to 72/2016/ST dated 18.03.2016 pending in appeal with 5.36 5.36 - - -
Commissioner of Central Excise (Appeals), Kochi.
Joint Commissioner of Central Excise, Customs & Service Tax, Kochi, as per order mentioned above has raised a
demand of Rs. 5.36 million including tax and penalty relating to service tax on marketing expenses reimbursed
abroad. Pending disposal of the appeal, no provision has been made by the company during the year.
vii) Service Tax demand relating to money transfer commission received for the period 2013-14 as per Order
Nos.85/2015-16/ST dated 18.02.2016 pending in 11.04 11.04 - - -
Writ Petition before the High Court of Kerala.
Commissioner of Central Excise, Customs & Service Tax, Kochi, as per order mentioned above has raised a demand
of Rs. 11.04 million including tax and penalty, by disposing SCN.26/2015 relating to service tax on money transfer
income for the period 2013-14.Pending disposal of the Writ Petition, no provision has been made by the company
during the year.
viii) Service Tax demand relating to money transfer commission received for the period April to September 2014 as
per Order Nos.13/2017 ST dated 6.81 - - - -
27.01.2017 pending in appeal before the Commissioner (Appeals), Kochi.
The Additional Commissioner of Central Excise, Customs & Service Tax, Kochi, as per order mentioned above has
raised a demand of Rs.6.18 million along with penalties U/s.77(2) and U/s.76 and interest u/s.75 relating to service
tax on money transfer income for the period April to September 2014. Pending disposal of appeal before the
Commissioner (Appeals), Kochi, no provision has been made by the company during the year.
ix) Income tax demand for the Assessment Year (A.Y) 2012-13, pending rectification petition and in appeal with
27.12 27.12 27.12 5.10 -
Commissioner of Income Tax (Appeals)-II, Kochi.
The demand outstanding as per Intimation U/s. 143(1) was Rs.
5.10 million Additional Commissioner of Income Tax, Corp. Range -1, Kochi issued an Order U/s.143(3) dated
02.03.2015 superseding the earlier order by demanding tax of Rs. 29.23 million Out of the above, the company
remitted Rs. 2.11 million and the balance outstanding is Rs. 27.12 million. Appeal filed with CIT (A)-II, Kochi
and rectification application with Addl. CIT are pending for disposal. Pending disposal no provision has been made
by the company for the year.
x) Income Tax demand for Assessment Year 2010-11, pending in appeal with Income tax Appellate Tribunal,
14.56 14.56 14.56 14.56 36.38
Kochi.
Additional Commissioner of Income Tax, Range 1, Kochi has passed an order demanding Rs. 36.39 million
towards income tax due for the Assessment Year 2010-11 U/s.143(3).The Company has remitted Rs. 21.82
millionand the balance demand outstanding as on 31.03.2016 is Rs. 14.56 million CIT (A), Kochi has partly
allowed the appeal, but the rectification order is pending.
Company has filed appeal with ITAT, Kochi. Pending rectification order and appeal with ITAT, Kochi, no
provision has been made by the company during the year.
xi) Income tax demand for Assessment Year 2009-10, pending in appeal with Commissioner of Income Tax
(Appeals), Kochi - - - - 11.07
Additional Commissioner of Income Tax, Range 1, Kochi has passed an order demanding Rs.13.78 million towards
income tax due for the Assessment Year 2009-10 and on rectification, demand was reduced to Rs.13.32 million .
The Commissioner of Income Tax (Appeals) admitted the appeal preferred by the Company. The Company has
remitted Rs.13.32 million of tax demanded and the balance demand pending As at March 31, 2017 is Nil.
xii) Income tax demand for Assessment Year 2006-07, pending in appeal with CIT(Appeals) II ,Cochin not allowed.
Appeal filed with ITAT Cochin is pending. Company has already remitted the entire demand of tax and the - - - - 0.91
balance outstanding as on 31.03.2017 is Nil
.
xiii) Draft order on proposed action U/s.13 of Prevention of Money Laundering Act, 2002 pending in appeal with
Appellate Tribunal under Prevention of Money Laundering Act, 2002. 26.97 26.97 26.97 26.97 26.97
xiv) Disputed claims against the company under litigation not acknowledged as debts
88.80 53.75 20.28 7.26 6.48
b) Guarantees - Counter Guarantees Provided to Banks
228.69 199.94 165.19 93.69 83.87
(ii)Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for.
450.00 44.45 31.66 129.87 148.74
Page | A-25
ANNEXURE IXA: DETAILS OF THE LIST OF RELATED PARTIES AND NATURE OF RELATIONSHIPS
A. Key Managerial Personnel

Sl.No. For the period ended March 31, 2017 For the period ended March 31, 2016 For the period ended March 31, 2015 For the year ended March 31, 2014 For the year ended March 31, 2013
1 M. G. George Muthoot (Chairman) M. G. George Muthoot (Chairman) M. G. George Muthoot (Chairman) M. G. George Muthoot (Chairman) M. G. George Muthoot (Chairman)
George Alexander Muthoot (Managing Director) George Alexander Muthoot (Managing Director) George Alexander Muthoot (Managing Director) George Alexander Muthoot (Managing Director) George Alexander Muthoot (Managing Director)
2
3 George Thomas Muthoot (Director) George Thomas Muthoot (Director) George Thomas Muthoot (Director) George Thomas Muthoot (Director) George Thomas Muthoot (Director)
4 George Jacob Muthoot (Director) George Jacob Muthoot (Director) George Jacob Muthoot (Director) George Jacob Muthoot (Director) George Jacob Muthoot (Director)
5 Alexander M. George (Director) Alexander M. George (Director) Alexander M. George (Director)
B. Relatives of Key Managerial Personnel

Sl.No. For the period ended March 31, 2017 For the period ended March 31, 2016 For the period ended March 31, 2015 For the period ended March 31, 2014 For the year ended March 31, 2013
1 Sara George w/o M. G. George Muthoot Sara George w/o M. G. George Muthoot Sara George w/o M. G. George Muthoot Sara George w/o M. G. George Muthoot Sara George w/o M. G. George Muthoot
2 Susan Thomas w/o George Thomas Muthoot Susan Thomas w/o George Thomas Muthoot Susan Thomas w/o George Thomas Muthoot Susan Thomas w/o George Thomas Muthoot Susan Thomas w/o George Thomas Muthoot
3 Elizabeth Jacob w/o George Jacob Muthoot Elizabeth Jacob w/o George Jacob Muthoot Elizabeth Jacob w/o George Jacob Muthoot Elizabeth Jacob w/o George Jacob Muthoot Elizabeth Jacob w/o George Jacob Muthoot
4 Anna Alexander w/o George Alexander Muthoot Anna Alexander w/o George Alexander Muthoot Anna Alexander w/o George Alexander Muthoot Anna Alexander w/o George Alexander Muthoot Anna Alexander w/o George Alexander Muthoot
5 George M. George s/o M. G. George Muthoot George M. George s/o M. G. George Muthoot George M. George s/o M. G. George Muthoot George M. George s/o M. G. George Muthoot George M. George s/o M. G. George Muthoot
6 - - - Alexander M. George s/o M. G. George Muthoot Alexander M. George s/o M. G. George Muthoot
7 George M. Jacob s/o George Jacob Muthoot George M. Jacob s/o George Jacob Muthoot George M. Jacob s/o George Jacob Muthoot George M. Jacob s/o George Jacob Muthoot George M. Jacob s/o George Jacob Muthoot
8 George Alexander (Jr.) s/o George Alexander George Alexander (Jr.) s/o George Alexander George Alexander (Jr.) s/o George Alexander George Alexander (Jr.) s/o George Alexander Muthoot George Alexander (Jr.) s/o George Alexander Muthoot
Muthoot Muthoot Muthoot
9 Eapen Alexander s/o George Alexander Muthoot Eapen Alexander s/o George Alexander Muthoot Eapen Alexander s/o George Alexander Muthoot Eapen Alexander s/o George Alexander Muthoot Eapen Alexander s/o George Alexander Muthoot
10 Reshma Susan Jacob d/o George Jacob Muthoot Reshma Susan Jacob d/o George Jacob Muthoot Reshma Susan Jacob d/o George Jacob Muthoot Reshma Susan Jacob d/o George Jacob Muthoot Reshma Susan Jacob d/o George Jacob Muthoot
11 Anna Thomas d/o George Thomas Muthoot Anna Thomas d/o George Thomas Muthoot Anna Thomas d/o George Thomas Muthoot Anna Thomas d/o George Thomas Muthoot Anna Thomas d/o George Thomas Muthoot
12 Valsa Kurien w/o George Kurien Valsa Kurien w/o George Kurien Valsa Kurien w/o George Kurien Valsa Kurien w/o George Kurien Valsa Kurien w/o George Kurien
13 - - - Georgie Kurien s/o George Kurien Georgie Kurien s/o George Kurien
C. Subsidiary Companies
1 Asia Asset Finance PLC, Srilanka Asia Asset Finance PLC, Srilanka Asia Asset Finance PLC, Srilanka - -
2 Muthoot Homefin (India) Ltd. MuthootHomefin (India) Ltd. - - -
3 Belstar Investment and Finance Private Limited - - - -
4 Muthoot Insurance Brokers Private Limited - - - -

D. Entities over which Key Managerial Personnel & their Relatives are able to exercise significant influence :
1 Muthoot Vehicle And Assets Finance Limited Muthoot Vehicle And Assets Finance Limited Muthoot Vehicle And Assets Finance Limited Muthoot Vehicle And Assets Finance Limited Muthoot Vehicle And Assets Finance Limited
2 Muthoot Leisure And Hospitality Services Pvt. Muthoot Leisure And Hospitality Services Pvt. Muthoot Leisure And Hospitality Services Pvt. Muthoot Leisure And Hospitality Services Pvt. Limited Muthoot Leisure And Hospitality Services Pvt. Limited
Limited Limited Limited
3 M.G.M. Muthoot Medical Centre Private Limited. M.G.M. Muthoot Medical Centre Private Limited. M.G.M. Muthoot Medical Centre Private Limited. M.G.M. Muthoot Medical Centre Private Limited. M.G.M. Muthoot Medical Centre Private Limited.
4 Muthoot Marketing Services Private Limited. Muthoot Marketing Services Private Limited. Muthoot Marketing Services Private Limited. Muthoot Marketing Services Private Limited. Muthoot Marketing Services Private Limited.
5 Muthoot Broadcasting Private Limited Muthoot Broadcasting Private Limited Muthoot Broadcasting Private Limited Muthoot Broadcasting Private Limited Muthoot Broadcasting Private Limited
6 Muthoot Forex Limited Muthoot Forex Limited Muthoot Forex Limited Muthoot Forex Limited (Previously known asMuthoot Muthoot Exchange Company Pvt. Limited.
Exchange Company Pvt. Limited.)
7 - - - Backdrop Advertising Pvt. Limited Backdrop Advertising Pvt. Limited
8 Emgee Board and Paper Mills Private Limited Emgee Board and Paper Mills Private Limited Emgee Board and Paper Mills Private Limited Emgee Board and Paper Mills Private Limited Emgee Board and Paper Mills Private Limited
9 Muthoot Health Care Private Limited. Muthoot Health Care Private Limited. Muthoot Health Care Private Limited. Muthoot Health Care Private Limited.(Previously known as Mar Gregorios Memorial Muthoot Medical Centre
Mar Gregorios Memorial Muthoot Medical Centre)
10 Muthoot Precious Metals Corporation Muthoot Precious Metals Corporation Muthoot Precious Metals Corporation Muthoot Precious Metals Corporation Muthoot Precious Metals Corporation
11 GMG Associates GMG Associates GMG Associates GMG Associates GMG Associates
12 Emgee Muthoot Benefit Funds ( India ) Limited Emgee Muthoot Benefit Funds ( India ) Limited Emgee Muthoot Benefit Funds ( India ) Limited Emgee Muthoot Benefit Funds ( India ) Limited Emgee Muthoot Benefit Funds ( India ) Limited
13 - Muthoot Insurance Brokers Private Limited Muthoot Insurance Brokers Private Limited Muthoot Insurance Brokers Private Limited Muthoot Insurance Brokers Private Limited
14 Geo Bros Muthoot Funds (India) Limited Geo Bros Muthoot Funds (India) Limited Geo Bros Muthoot Funds (India) Limited Geo Bros Muthoot Funds (India) Limited Geo Bros Muthoot Funds (India) Limited
15 Muthoot Investment Advisory Services Private Muthoot Investment Advisory Services Private Muthoot Investment Advisory Services Private Muthoot Investment Advisory Services Private Limited Muthoot Investment Advisory Services Private Limited
Limited Limited Limited
16 Muthoot M George Permanent Fund Limited Muthoot M George Permanent Fund Limited Muthoot M George Permanent Fund Limited Muthoot M George Permanent Fund Limited Muthoot M George Permanent Fund Limited
17 Muthoot Securities Limited Muthoot Securities Limited Muthoot Securities Limited Muthoot Securities Limited Muthoot Securities Limited
18 Muthoot Housing & Infrastructure Muthoot Housing & Infrastructure Muthoot Housing & Infrastructure Muthoot Housing & Infrastructure Muthoot Builders
(Previously known asMuthoot Builders)
19 Muthoot Properties & Investments Muthoot Properties & Investments Muthoot Properties & Investments Muthoot Properties & Investments Muthoot Properties & Investments
20 Venus Diagnostics Limited Venus Diagnostics Limited Venus Diagnostics Limited Venus Diagnostics Limited Venus Diagnostics Limited
21 Muthoot Systems & Technologies Pvt Ltd Muthoot Systems & Technologies Pvt Ltd Muthoot Systems & Technologies Pvt Ltd Muthoot Systems & Technologies Pvt Ltd -
22 Muthoot Infotech Private Ltd MuthootInfotech Private Ltd MuthootInfotech Private Ltd - -
23 Muthoot Anchor House Hotels Pvt Ltd Muthoot Anchor House Hotels Pvt Ltd Muthoot Anchor House Hotels Pvt Ltd - -
24 Marari Beach Resorts Pvt Ltd Marari Beach Resorts Pvt Ltd Marari Beach Resorts Pvt Ltd - -
25 Muthoot M George Foundation Muthoot M George Foundation Muthoot M George Foundation - -
26 Muthoot Commodities Ltd Muthoot Commodities Ltd Muthoot Commodities Ltd - -
Page | A-26
ANNEXURE IXB: TRANSACTIONS WITH RELATED PARTIES
(Rs. in millions)
Entities over which Key Managerial Personnel & their Relatives are able to exercise significant influence
Sl. No. Particulars

March 31, 2017 March 31, 2016 March 31, 2015 March 31, 2014 March 31, 2013
A Transactions during the year
1 Purchase of Travel Tickets for Company Executives/Directors/Customers 4.52 5.42 8.09 8.52 10.11
2 Travel Arrangements for Company Executives/Customers 0.96 8.60 0.82 1.07 3.49
3 Marketing of Money Transfer Business Outside the Country - - - 3.19 5.48
4 Accommodation facilities for Company Executives/Clients/Customers 0.55 0.46 1.24 2.21 0.30
5 Complementary Medical Health Check Ups for Customers/ Employees - 0.01 0.06 0.92 1.03
6 Release of Advertisements in Outdoor, Print and Electronic Media - - - 123.54 145.08
7 Brokerage paid for NCD public issue 5.54 6.50 13.34 58.36 1.63
8 Interest received on Inter Corporate Loans - - 4.18 16.61
9 Directors Remuneration - - - - -
10 Service Charges Collected 15.07 4.82 4.69 5.02 5.10
11 Loans accepted - - - - -
12 Loans repaid - - - - -
13 Subordinated debts accepted - - - - -
14 Subordinated debts repaid - - - - -
15 Inter Corporate Loans accepted - - - 43.85 55.07
16 Inter corporate Loans repaid - - - 76.07 148.80
17 Investment in Secured NCD - - 64.30 - 37.50
18 Rent paid 5.00 4.48 4.35 4.32 3.88
19 Rent Received 1.26 0.41 0.48 - -
20 Purchase of Fixed Assets - - 1.00 0.10 -
21 Loans availed by the Company for which guarantee is provided by related parties - - - 400.00 400.00
22 Loans availed by the Company for which collateral security is provided by related parties
- - - 400.00 400.00
23 Business Promotion Expenses 9.77 12.96 17.57 32.40 5.41

24 Interest paid on loans/subordinated debts - - - - -
25 Interest paid on Secured NCD - 1.19 5.09 - 0.16
26 Interest paid on Secured NCD– Listed 14.10 8.53 7.18 - -
27 Redemption of Secured NCD(Secured NCD Redeemed) - 20.00 51.58 - 77.50
28 Redemption of Secured NCD – Listed 203.48 40.28 21.83 - -
29 Dividend paid - - - - -
30 Dividend received - 4.31 - - -
31 CSR Expense 144.25 131.64 89.11 - -
32 Investment in Equity shares of Subsidiary companies - - - - -
33 Foreign Currency purchased 0.54 0.98 0.07 - -
34 Commission received on Money Transfer business 79.54 61.55 24.40 - -
35 Purchase of Securities 81.44 - - - -
36 Purchase of Secured NCD – Listed 321.14 - - - -
37 Interest received on Subordinated Debt - - - - -
38 Term Loan interest received - - - - -
39 Inter Corporate Loans given - - - - -
40 Repayment of Inter Corporate Loans given - - - - -
41 Term Loan given - - - - -
42 Repayment of Term Loan given - - - - -
43 Sale of Securities - - - - -
As at March 31, As at March 31, As at March 31, As at March 31, As at March 31,
Net Amount Receivable / (Due) as at the year end
2017 2016 2015 2014 2013
1 Investments in Subsidiary companies - Equity Shares - - - - -
2 Investments in Subsidiary companies - Subordinated debt - - - - -
3 Term Loan Outstanding - - - - -
4 Investments in Equity Shares 46.7 46.7 46.7 46.70 75.00
5 Secured NCD - - (20.00) - -
6 Secured NCD – Listed (253.89) (136.23) (84.78) - -
7 Security Deposit (40.00) (40.00) (40.00) (40.00) (40.00)
8 Inter Corporate Loans - - - - -32.22
9 Rent Deposit 1.47 1.47 1.47 1.47 1.47
10 Loans and Subordinated debts - - - - -
11 Trade Payables (12.51) (17.23) (4.70) (28.12) (25.72)
12 Trade Receivable 72.81 69.56 - 57.23 87.44
Page | A-27
(Rs. in millions)
Key Managerial Personnel
Sl.No. Particulars For the year ended For the year ended For the year ended For the year ended For the year ended

1 Purchase of Travel Tickets for Company Executives/Directors/Customers - - - - -
2 Travel Arrangements for Company Executives/Customers - - - - -

3 Marketing of Money Transfer Business Outside the Country - - - - -
4 Accommodation facilities for Company Executives/Clients/Customers - - - - -
5 Complementary Medical Health Check Ups for Customers/ Employees - - - - -
6 Release of Advertisements in Outdoor, Print and Electronic Media - - - - -
7 Brokerage paid for NCD issue - - - - -
8 Interest on Inter Corporate Loans - - - - -
9 Director Remuneration 358.00 195.60 192.49 192.00 192.00
10 Service Charges Collected - - - - -
11 Loans accepted 1,553.55 3,482.49 1,901.79 2,312.74 1,724.66
12 Loans repaid 2,019.28 2,977.75 1,531.52 1,133.54 960.00
13 Subordinated debts accepted 0.00 0.00 0.50 0.08 0.24
14 Subordinated debts repaid 64.65 162.14 114.96 0.00 0.00
15 Inter Corporate Loans accepted - - - - -
16 Inter corporate Loans repaid - - - - -
17 Purchase of Secured NCD – Listed 30.00 0.39 - - 0.10
18 Rent paid 3.89 3.52 3.52 3.45 3.06
19 Rent received - - - - -
20 Purchase of Fixed Assets - - - - -
21 Loans availed by the Company for which guarantee is provided by related parties 86,350.00 82,250.00 1,04,590.00 1,03,050.00 1,12,130.00
22 Loans availed by the Company for which collateral security is provided by related - - - - -
parties
23 Business Promotion Expenses - - - - -
24 Interest paid on loans/subordinated debts 325.86 266.92 313.93 260.03 142.68
25 Interest paid on Secured NCD 0.04 0.04 0.03 0.01 -
27 Redemption of Secured NCD - 0.39 0.23 - -
28 Redemption of Secured NCD – Listed 1.05 - 0.09 - -
29 Dividend paid - 1,500.41 937.75 1,717.39 723.11
30 CSR Expense - - - - -
31 Sale of Investments in Shares - - - 66.25 -
32 Interim Dividend declared 1,105.30 - - - -
33 Purchase of Shares of Muthoot Insurance Brokers Private Ltd 120.00 - - - -
Net Amount Receivable / (Due) as at the year end As at March 31 2017 As at March 31 2016 As at March 31 2015 As at March 31 2014 As at March 31 2013
1 Investments in Equity Shares - - - - -

2 Secured NCD (0.41) (0.41) (0.37) (0.10) (0.10)
3 Secured NCD – Listed (30.00) (1.05) (3.49) - -
4 Security Deposit - - - - -
5 Inter Corporate Loans - - - - -
6 Rent Deposit 1.77 1.77 1.77 1.82 1.82
7 Loans and Subordinated debts (2,707.55) (3,237.93) (2,895.33) (2,480.25) (1,300.99)
8 Trade Payables (0.30) (0.26) (0.26) (0.26) (0.23)
9 Trade Receivable - - - - -
10 Interest payable on Secured NCD (0.02) (0.01) (0.05) - -
11 Interest payable on Subordinated Debts - (0.48) (0.92) - -
12 Directors Remuneration Payable (160.00) - - - -
13 Interim Dividend Payable (1,105.30) - - - -
Page | A-28
(Rs. in millions)
Relative of Key Managerial Personnel
Sl.No. Particulars For the year ended For the year ended For the year ended For the year ended For the year ended
A Transactions during the year -

1 Purchase of Travel Tickets for Company Executives/Directors/Customers - - - - -
2 Travel Arrangements for Company Executives/Customers - - - - -

3 Marketing of Money Transfer Business Outside the Country - - - - -
4 Accommodation facilities for Company Executives/Clients/Customers - - - - -
5 Complementary Medical Health Check Ups for Customers/ Employees - - - - -
6 Release of Advertisements in Outdoor, Print and Electronic Media - - - - -

7 Brokerage paid for NCD issue - - - - -
8 Interest on Inter Corporate Loans - - - - -
9 Remuneration to Directors Relatives 2.33 2.33 3.04 3.53 3.28
10 Service Charges Collected - - - - -
11 Loans accepted 537.98 2,170.94 1,105.18 1,383.32 911.39
12 Loans repaid 852.72 1,106.88 333.37 247.50 195.44
13 Subordinated debts accepted - - - - -
14 Subordinated debts repaid 19.50 47.10 0.00 0.00 0.00
15 Inter Corporate Loans accepted - - - - -
16 Inter corporate Loans repaid - - - - -
17 Purchase of Secured NCD - 0.23 - 4.42 1.66
18 Rent paid 0.79 0.69 0.69 0.71 0.60
19 Rent received - - - - -
20 Purchase of Fixed Assets - - - - -
21 Loans availed by the Company for which guarantee is provided by related parties - - 16,000.00 27,000.00 22,500.00
22 Loans availed by the Company for which collateral security is provided by related - - - - -
parties
23 Business Promotion Expenses - - - - -
24 Interest paid on loans/subordinated debts 373.19 313.72 259.38 179.94 69.37
25 Interest paid on Secured NCD 0.59 0.60 0.66 0.75 0.16
27 Redemption of Secured NCD 0.23 0.23 0.95 - -
28 Redemption of Secured NCD – Listed 9.03 - 3.59 - -
29 Dividend paid - 881.98 551.24 1,111.69 468.08
30 CSR Expense - - - - -
31 Sale of Investment in shares - - - - -
32 Interim Dividend declared 661.48 - - - -
33 Purchase of Shares of Muthoot Insurance Brokers Private Ltd 80.00 - - - -
34 Purchase of Secured NCD – Listed 230.64 - - - -
Net Amount Receivable / (Due) as at the year end As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013
1 Investments in Equity Shares - - - - -

2 Secured NCD (4.63) (4.86) (4.63) (6.08) (1.66)
3 Secured NCD– Listed (231.89) (10.28) (24.14) - -
4 Security Deposit - - - - -
5 Inter Corporate Loans - - - - -
6 Rent Deposit 0.30 0.30 0.30 0.30 0.32
7 Loans and Subordinated debts (3,276.81) (3,611.05) (2,594.08) (1981.53) (845.7)
8 Trade Payables (0.06) (0.05) (0.05) (0.05) (0.04)
9 Trade Receivable - - - - -
10 Interest payable on Secured NCD (0.06) (0.56) (0.58) - -
11 Interest Payable on Directors Loan - (1.36) (1.36) - -
12 Interim Dividend Payable (661.48) - - - -
Page | A-29
(Rs. in millions)
Subsidiaries
Sl.No. Particulars For the year ended For the year ended For the year ended
March 31, 2017 March 31, 2016 March 31, 2015

1 Purchase of Travel Tickets for Company Executives/Directors/Customers - - -
2 Travel Arrangements for Company Executives/Customers - - -

3 Marketing of Money Transfer Business Outside the Country - - -
4 Accommodation facilities for Company Executives/Clients/Customers - - -
5 Complementary Medical Health Check Ups for Customers/ Employees - - -
6 Release of Advertisements in Outdoor, Print and Electronic Media - - -
7 Brokerage paid for NCD public issue - - -
8 Interest received on Inter Corporate Loans 1.54 - -
9 Directors Remuneration - - -
10 Service Charges Collected - - -
11 Loans accepted - - -
12 Loans repaid - - -
13 Subordinated debts accepted - - -
14 Subordinated debts repaid - - -
15 Inter Corporate Loans accepted - - -
16 Inter corporate Loans repaid - - -
17 Investment in Secured NCD - - -
18 Rent paid - - -
19 Rent Received 2.14 - -
20 Purchase of Fixed Assets - - -
21 Loans availed by the Company for which guarantee is provided by related parties - - -
22 Loans availed by the Company for which collateral security is provided by related parties - - -
23 Business Promotion Expenses - - -

24 Interest paid on loans/subordinated debts - - -
25 Interest paid on Secured NCD - - -
26 Interest paid on Secured NCD– Listed - - -
27 Redemption of Secured NCD(Secured NCD Redeemed) - - -
28 Redemption of Secured NCD – Listed - - -
29 Dividend paid - - -
30 Dividend received - - -
31 CSR Expense - - -
32 Investment in Equity shares of Subsidiary companies 1,136.43 497.74 338.12
33 Foreign Currency purchased - - -
34 Commission received on Money Transfer business - - -
35 Purchase of Securities - - -
36 Purchase of Secured NCD – Listed - - -
37 Interest received on Subordinated Debt 14.04 - -
38 Term Loan interest received 18.23 - -
39 Inter Corporate Loans given 440.00 - -
40 Repayment of Inter Corporate Loans given 440.00 - -
41 Term Loan given 200.00 - -
42 Repayment of Term Loan given 16.67 - -
43 Sale of Securities 142.89 - -
As at March 31, As at March 31, As at March 31,

Net Amount Receivable / (Due) as at the year end
2017 2016 2015
1 Investments in Subsidiary companies - Equity Shares 1,972.30 835.87 338.12
2 Investments in Subsidiary companies - Subordinated debt 10.00 - -
3 Term Loan Outstanding 183.33 - -
4 Investments in Equity Shares - - -
5 Secured NCD - - -
6 Secured NCD – Listed - - -
7 Security Deposit - - -
8 Inter Corporate Loans - - -
9 Rent Deposit - - -
10 Loans and Subordinated debts - - -
11 Trade Payables - - -
12 Trade Receivable - - -
Page | A-30
ANNEXURE X: SEGMENT REPORTING
a) The Company is engaged in two segments of business – Financing and Power Generation
b) In the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of
India, Company has identified business segment as the primary segment and geographical segment as secondary segment
for the purpose of disclosure.
c) Company operates in a single geographical segment. Hence, secondary geographical segment information disclosure is
not applicable
Primary Business Segment Information

(Rs. in millions)
Financing
Particulars
2016-17 2015-16 2014-15 2013-14 2012-13
Segment Revenue:
External revenue 57,266.32 48,602.56 43,124.19 49,265.12 53,564.33
Inter segment Revenue - - - - -
Total revenue 57,266.32 48,602.56 43,124.19 49,265.12 53,564.33
Result:
Segment Result 19,381.77 13,226.68 10,359.67 11,932.55 15,015.73
Other Income - - - - -
Unallocated corporate Income - - - - -
Unallocated corporate expenses - - - - -
Profit Before Tax 19,381.77 13,226.68 10,359.67 11,932.55 15,015.73
Less : Provision for Current Tax/Deferred Tax - - - - -
Profit After Tax 19,381.77 13,226.68 10,359.67 11,932.55 15,015.73
Other Information:
Segment Assets 3,04,430.23 2,68,942.21 2,66,919.39 2,55,336.34 2,93,074.22
Unallocated Corporate Assets - - - - -
Total Assets 3,04,430.23 2,68,942.21 2,66,919.39 2,55,336.34 2,93,074.22
Segment Liabilities 2,38,176.59 2,12,160.92 2,15,515.83 2,12,570.70 2,54,431.35
Unallocated Corporate Liabilities - - - - -
Total Liabilities 2,38,176.59 2,12,160.92 2,15,515.83 2,12,570.70 2,54,431.35
Capital Expenditure 382.65 189.86 263.05 708.36 721.42
Depreciation 480.40 572.85 838.68 467.05 444.98
Non-Cash Expenditure other than Depreciation 2,647.83 1,516.68 179.80 213.95 765.19
(Rs. in millions)
Power Generation
Particulars
2016-17 2015-16 2014-15 2013-14 2012-13
Segment Revenue:
External revenue 19.95 11.44 13.83 13.70 24.65
Inter segment Revenue - - - - -
Total revenue 19.95 11.44 13.83 13.70 24.65
Result:
Segment Result 12.78 5.99 6.81 2.91 12.46
Unallocated corporate Income - - - - -
Unallocated corporate expenses - - - - -
Profit Before Tax 12.78 5.99 6.81 2.91 12.46
Less : Provision for Current Tax/Deferred Tax - - - - -
Profit After Tax 12.78 5.99 6.81 2.91 12.46
Other Information:
Segment Assets 49.10 42.76 39.86 38.18 67.94
Unallocated Corporate Assets - - - - -
Total Assets 49.10 42.76 39.86 38.18 67.94
Segment Liabilities - - - - -
Unallocated Corporate Liabilities - - - - -
Total Liabilities - - - - -
Capital Expenditure - - - - -
Depreciation 2.10 2.30 2.5 7.56 9.45
Page | A-31
Non-Cash Expenditure other than Depreciation - - - - -
(Rs. in millions)
Consolidated Totals
Particulars 2016-17 2015-16 2014-15 2013-14 2012-13
Segment Revenue:
External revenue 57,286.27 48,614.00 43,138.02 49,278.82 53,588.98
Intersegment Revenue - - - - -
Total revenue 57,286.27 48,614.00 43,138.02 49,278.82 53,588.98
Result:
Segment Result 19,394.55 13,232.67 10,366.48 11,935.46 15,028.19
Unallocated corporate income 180.74 136.14 108.34 195.54 282.38
Unallocated corporate expenses (365.52) (201.27) (196.24) (195.45) (196.12)
Profit Before Tax 19,209.77 13,167.54 10,278.58 11,935.55 15,114.45
Less : Provision for Current Tax/Deferred Tax 7,411.46 5,072.01 3,573.34 4,134.86 5,072.06
Profit After Tax 11,798.31 8,095.53 6,705.24 7,800.69 10,042.39
Other Information:
Segment Assets 3,04,479.33 2,68,984.97 2,66,959.25 2,55,374.52 2,93,142.16
Unallocated Corporate Assets 2,651.39 1,502.36 733.26 564.22 1,020.49
Total Assets 3,07,130.72 2,70,487.33 2,67,692.51 2,55,938.74 2,94,162.65
Segment Liabilities 2,38,176.59 2,12,160.92 2,15,515.83 2,12,570.70 2,54,431.35
Unallocated Corporate Liabilities 3,789.72 2,133.92 1,341.64 722.27 2,375.65
Total Liabilities 2,41,996.31 2,14,294.84 2,16,857.47 2,13,292.97 2,56,807.00
Capital Expenditure 382.65 189.86 263.05 708.36 721.42
Depreciation 482.50 575.15 841.18 474.61 454.43
Non-Cash Expenditure other than Depreciation 2,647.83 1,516.68 179.80 213.95 765.19
Page | A-32
Other Notes on accounts
1. Employee Benefits
The Company has recognized the contribution to Provident Fund, in the Statement of Profit and Loss in Note.18- Employee Benefit Expenses as under :-
(Rs. in millions)
For the year ended March 31, For the year ended March 31, For the year ended March 31, For the year ended March 31, For the year ended March 31,
Particulars
2017 2016 2015 2014 2013
Contribution to Provident Fund 252.59 246.92 235.35 241.22 233.04
Total 252.59 246.92 235.35 241.22 233.04
Gratuity Plan
Gratuity liability is funded through a Gratuity Fund managed by Kotak Mahindra Old Mutual Life Insurance Limited and ICICI Prudential Life Insurance
Company Limited.
The following table sets out the status of the Gratuity Plan as required under AS 15.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets:
(Rs. in millions)
A) Reconciliation of opening and closing balance of defined benefit obligation

Present value of Defined Benefit Obligation at the beginning of the 604.61 496.66 393.04 304.11 220.49
year
Interest Cost 44.74 38.74 34.98 24.02 18.74
Current Service Cost 129.95 113.50 104.78 94.94 89.01
Benefits paid (36.37) (33.30) (8.01) (4.94) (5.88)
Actuarial (gain)/loss 18.59 (10.99) (28.13) (25.09) (18.25)
Present value of Defined benefit obligation at the end of the year 761.52 604.61 496.66 393.04 304.11
B) Reconciliation of opening and closing balance of fair value of Plan Assets

Fair value of plan assets at the beginning of the year 602.22 489.16 374.31 301.70 229.07
Expected rate of return on plan assets 43.50 38.77 33.68 25.53 19.21
Contributions 122.39 109.30 63.73 59.91 51.54
Benefit paid (36.37) (33.30) (8.01) (4.94) (5.88)
Actuarial gains/(losses) on plan assets 24.51 (1.71) 25.44 (7.89) 7.76
Fair value of plan assets at the end of the year 756.25 602.22 489.15 374.31 301.70
C) Expense recognised in the statement of profit and loss
Current service cost 129.95 113.49 104.78 94.94 89.01
Interest Cost 44.74 38.74 34.98 24.02 18.74
Expected rate of return on plan assets (43.50) (38.77) (33.67) (25.53) (19.21)
Actuarial gains/(losses) (5.92) (9.27) (53.57) (17.20) (26.01)
Employer Expense 125.27 104.19 52.52 76.23 62.53
D) Investment details
Insurer managed funds 756.25 602.22 489.15 374.31 301.70
E) Experience adjustment
On Plan Liability (Gain)/Losses (6.40) (23.93) (56.40) 5.78 141.14
On Plan Assets (Losses)/Gain 22.31 (5.19) 25.44 (7.89) 7.76
F) Actuarial assumptions
Discount rate 6.8% p.a. 7.4% p.a 7.8% p.a 8.9% p.a 7.9%p.a
Salary Escalation 7.0% p.a 7.0% p.a 7.0% p.a 7.0% p.a 7.0% p.a
Rate of return on plan assets 7.4%p.a 7.8%p.a 8.5%p.a 8.5% p.a. 8.5% p.a.
The deficit in funding of gratuity Rs.5.27 million has been accounted as Long term provisions
Estimated employer contribution for 2017-18 - Rs 130.00 million
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including
supply and demand in the employment market. Discount rate is based on the prevailing market yields of the Government Bond as at Balance Sheet date for the
estimated term of obligation.
(Rs. in millions)
Defined benefit obligation 761.52 604.61 496.66 393.04 304.11
Plan Assets 756.25 602.22 489.15 374.31 301.70
Surplus/ (Deficit ) (5.27) (2.39) (7.51) (18.73) (2.41)
Experience adjustments on plan Liabilities - (Gains) / Losses (6.40) (23.93) (56.40) 5.78 141.14
Experience adjustments on plan Assets - (Losses) / Gains 22.31 (5.19) 25.44 (7.89) 7.76
Page | A-33
c) Employee Stock Option Plan
Pursuant to approval by the shareholders at their meeting held on September 27, 2013, the company has established “Muthoot ESOP 2013” scheme administered by the ESOP Committee of Board of Directors. The following options were granted as on March 31, 2017:-
Particulars Tranche 1 Tranche 2 Tranche 3 Tranche 4

Grant A Grant B Loyalty Grant A Grant B Loyalty Grant A Grant A Grant B Loyalty
Date of Grant 09.11.2013 09.11.2013 09.11.2013 08.07.2014 08.07.2014 08.07.2014 06.03.2015 27.06.2016 27.06.2016 27.06.2016
Date of Board approval 09.11.2013 09.11.2013 09.11.2013 08.07.2014 08.07.2014 08.07.2014 06.03.2015 27.06.2016 27.06.2016 27.06.2016
Method of settlement Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled
Number of equity shares for an option One option One option One option One option One option One option - One option One option One option One option
- One share - One share - One share - One share - One share One share - One share - One share - One share - One share
Number of options granted 3711200 1706700 1571075 456000 380900 6100 325000 390400 728300 8150
Exercise price Rs. 50 Rs. 50 Rs. 10 Rs. 50 Rs. 50 Rs. 10 Rs. 50 Rs. 50 Rs. 50 Rs. 10
Vesting period 1-5 years 2-6 years 1-2 years 1-5 years 2-6 years 1-2 years 1-5 years 1-5 years 2-6 years 1-2 years
In a graded In a graded In a graded

In a graded In a graded manner over a 2 In a graded In a graded manner over a 2 In a graded In a graded In a graded manner over a 2
manner over a 5 manner over a 6 year period with manner over a 5 manner over a 6 year period with manner over a 5 manner over a 5 manner over a 6 year period with
year period with year period with 50% vesting at year period with year period with 50% vesting at year period with year period with year period with 50% vesting at
10%,15%, 10%,15%, the end of 12 10%,15%, 10%,15%, the end of 12 10%,15%, 10%,15%, 10%,15%, the end of 12
20%,25% 20%,25% months from the 20%,25% 20%,25% months from the 20%,25% 20%,25% 20%,25% months from the
and 30% of the and 30% of the date of grant and 30% of the and 30% of the date of grant and 30% of the and 30% of the and 30% of the date of grant
Manner of vesting
grants vesting in grants vesting in and the grants vesting in grants vesting in and the grants vesting in grants vesting in grants vesting in and the
each year each year remaining 50% each year each year remaining 50% each year each year each year remaining
commencing commencing of the commencing commencing of the grants commencing commencing commencing 50% of the
from the end of from the end of grants vesting at from the end of from the end of vesting at the from the end of from the end of from the end of grants vesting at
12 months from 24 months from the end of 24 12 months from 24 months from end of 24 12 months from 12 months from 24 months from the end of 24
the date of grant the date of grant months from the the date of grant the date of grant months from the the date of grant the date of grant the date of grant months from the
date of grant date of grant date of grant
Movement in the options granted under ESOP is as follows:-

Year ended 31.03.2017
Particulars Tranche 1 Tranche 2 Tranche 3 Tranche 4 Total
Options outstanding - beginning of the year 18,80,500 8,21,430 80,666 3,45,630 2,36,800 2,262 2,92,500 - - - 36,59,788
Options granted during the year - - - - - - - 3,90,400 7,28,300 8,150 11,26,850
Options exercised during the year 3,21,115 47,940 34,295 45,655 4,600 2,012 17,600 - - - 4,73,217
Options lapsed during the year 6,56,595 4,87,285 17,147 68,625 1,23,690 50 - 39,700 82,100 325 14,75,517
Options outstanding - the end of the year 9,02,790 2,86,205 29,224 2,31,350 1,08,510 200 2,74,900 3,50,700 6,46,200 7,825 28,37,904
Options exercisable 62,990 25,450 29,224 4,100 7,170 200 31,150 - - - 1,60,284

Particulars Tranche 1 Tranche 2 Tranche 3 Total
Grant A Grant B Loyalty Grant A Grant B Loyalty Grant A
Options outstanding - beginning of the year 28,44,390 12,35,700 7,83,817 4,15,200 2,91,592 5,350 3,25,000 59,01,049
Options granted during the year - - - - - - - -
Options exercised during the year 2,95,040 38,440 6,30,665 35,400 1,392 2,476 32,500 10,35,913
Options lapsed during the year 6,68,850 3,75,830 72,486 34,170 53,400 612 - 12,05,348
Options outstanding - end of the year 18,80,500 8,21,430 80,666 3,45,630 2,36,800 2,262 2,92,500 36,59,788
Options exercisable 66,035 23,590 69,194 4,080 - 50 - 1,62,949

Particulars Tranche 1 Tranche 2 Tranche 3 Total
Options outstanding - beginning of the year 35,27,600 15,53,500 15,45,200 - - - - 66,26,300
Options granted during the year - - - 4,56,000 3,80,900 6,100 3,25,000 11,68,000
Options exercised during the year 2,43,840 - 6,54,141 - 4,608 - - 9,02,589
Options lapsed during the year 4,39,370 3,17,800 1,07,242 40,800 84,700 750 - 9,90,662
Options outstanding - end of the year 28,44,390 12,35,700 7,83,817 4,15,200 2,91,592 5,350 3,25,000 59,01,049
Options exercisable 76,170 - 73,002 - 1,392 - - 1,50,564
The Company has used Intrinsic value method for accounting of Employee Stock Compensation costs. Intrinsic Value is the amount by which, the quoted closing market price of the underlying shares as on the date of grant exceeds the exercise price of
the option.
The fair value of options based on valuation of independent valuer using Black-Scholes Method as of the respective date of grant are given below:-
Tranche 1 Tranche 2 Tranche 3 Tranche 4
Particulars
Rs 68.75 Rs 70.21 Rs 102.01 Rs 131.77 Rs 130.56 Rs 166.69 Rs 165.61 Rs 226.42 Rs 223.87 Rs 262.48
(Nov 9, (Nov 9, (Nov 9,2014) (July 8,2015) (July 8,2016) (July 8,2015) (Mar 6,2016) (June 27, (June 27, (June 27,
2014) 2015) 2017) 2018) 2017)
Rs 70.21 Rs 71.13 Rs 98.64 Rs 130.56 Rs 129.33 Rs 161.77 Rs 163.16 Rs 223.87 Rs 221.34 Rs 257.37
(Nov 9, (Nov 9,2016) (Nov 9,2015) (July 8,2016) (July 8,2017) (July 8,2016) (Mar 6,2017) (June 27,2018) (June 27, (June 27,
2015) 2019) 2018)
Rs 71.13 Rs 71.52 Rs 129.33 Rs 127.91 Rs 160.66 Rs 221.34 Rs 218.80
Fair value per option tranche on grant date (correspondi ng vesting date
(Nov 9,2016) (Nov 9,2017) (July 8,2017) (July 8,2018) (Mar 6,2018) (June 27, (June 27,
shown in bracket)
2019) 2020)
Rs 71.52 Rs 71.47 Rs 127.91 Rs 126.26 Rs 158.13 Rs 218.80 Rs 216.20
2020) 2021)
Rs 71.47 Rs 71.11 Rs 126.26 Rs 124.39 Rs 155.57 Rs 216.20 Rs 213.54
2021) 2022)
The significant assumptions made for calculation of fair value are as follows:-
Particulars
Risk free interest rate 8.4% - 8.4% - 8.4% - 8.26% - 8.24% - 8.32% - 7.45% - 6.91% - 7.08% - 6.91% -
8.8% p.a. 8.95% p.a. 8.45% p.a. 8.35% p.a. 8.32% p.a. 8.35% p.a. 7.60% p.a. 7.41% p.a. 7.47% p.a. 7.08% p.a.
Expected average life of option 1.5 – 5.5 2.5 – 6.5 1.5-2.5 1.5 – 5.5 2.5 – 6.5 1.5-2.5 1.5 – 5.5 1.5 – 5.5 2.5 – 6.5 1.5-2.5
years years years years years years years years years years
Expected Volatility 0.5768 0.5768 0.5768 0.5396 0.5396 0.5396 0.3450 0.3698 0.3698 0.3698
Expected Dividend Yield 3.84 % p.a. 3.84 % p.a. 3.84 % p.a. 3.26% p.a. 3.26% p.a. 3.26% p.a. 2.74% p.a. 2.14% p.a. 2.14% p.a. 2.14% p.a.
Page | A-34
The Company has used Intrinsic value method for accounting of Employees Stock Compensation costs.
(Rs. in millions)
As at As at As at As at
Employee Stock Option Liability
March 31,2017 March 31,2016 March 31,2015 March 31,2014
Opening Total Employee Stock Option Liability 325.18 506.39 507.76 -
Increase in Liability on account of fresh ESOP grants 259.90 - 168.40 533.20
Reduction in Liability on account of Exercise on vesting (38.59) (98.35) (86.91) -
Reduction in Liability on account of lapse of grants (68.13) (82.86) (82.86) (25.44)
Closing Total Employee Stock Option Liability 478.36 325.18 506.39 507.76
(Rs. in millions)
Employee Stock Option Compensation Expenses
Opening Deferred Stock Option Compensation Expenses 101.51 299.67 409.03 -
Increase in ESOP Compensation Expenses on account of fresh ESOP grants
259.89 - 168.40 533.20
Compensation Expenses amortised during the year (36.19) (115.30) (194.90) (98.73)
Reduction in Compensation Expenses on account of lapse of grants (68.13) (82.86) (82.86) (25.44)
Closing Deferred Stock Option Compensation Expenses 257.08 101.51 299.67 409.03
(Rs. in millions)
Employee Stock Option Reserve
Employee Stock Option Liability 478.35 325.18 506.39 507.76
Less: Deferred Employee Stock Option Compensation Expenses 257.08 101.51 299.67 409.03
Employee Stock Option Reserve 221.27 223.67 206.72 98.73
Had the Company adopted Fair value method in respect of Options granted instead of Intrinsic value method, the impact in the financial statements for the year would be :-
(Rs. in millions)
For the year ended For the year ended For the year ended For the year ended
Particulars
March 31,2017 March 31, 2016 March 31, 2015 March 31, 2014
Decrease in employee compensation costs 5.59 22.10 14.77 0.82
Increase in profit after tax 5.59 22.10 14.77 0.82
Increase in Basic EPS ( Rs per share) 0.01 0.06 0.04 0.01
Increase in Diluted EPS ( Rs per share) 0.01 0.05 0.04 0.01
2. Frauds during the year

During the year ended 31.03.2017, frauds committed by employees of the company amounted to Rs. 12.83 million which has been recovered /written off / provided for.
During the year ended 31.03.2017, frauds committed by employees of the company amounted to Rs.12.82 million which has been recovered/written off/provided for.
During the year ended 31.03.2016, frauds committed by employees of the company amounted to Rs.16.27 million which has been recovered /written off / provided for.
During the year ended 31.03.2015, frauds committed by customer /staff of the company amounted to Rs.11.96 million which has been recovered /written off / provided
for.
During the year ended 31.03.2014, frauds committed by customer /staff of the company amounted to Rs.19.70 million which has been recovered /written off / provided
for.
During the year ended 31.03.2013, frauds committed by customer /staff of the company amounted to Rs.4.18 million which has been recovered /written off / provided for.
3. Investment in Asia Asset Finance PLC, Sri Lanka (AAF)

During the year ended 31.03.2017 the company has made an additional investment of 2,493,574 equity shares amounting to Rs. 6.10 million in its subsidiary company,
During the year ended 31.03.2017, the company has made an additional investment in 24,93,574 equity shares amounting to Rs. 6.10 million of its subsidiary company,
Asia Asset Finance PLC, Srilanka. As at 31.03.2017, the total shareholding in Asia Asset finance PLC, Srilanka, amounts to 503,524,700 equity shares representing 60%
of their total equity share capital.
During the year ended 31.03.2016, the company has made a further additional investment of 73,019,415 equity shares amounting to Rs.48.63 million in its subsidiary
company, Asia Asset Finance PLC, Sri Lanka . As at March 31, 2016 , the total shareholdings in Asia Asset Finance PLC, Sri Lanka, amounts to 501,031,126 equity
shares representing 59.70 % of their total shareholding.
During the year ended 31.03.2015, the company acquired 428,011,711 shares in AAF representing 51 % of equity share capital of AAF for a consideration of Rs.338.12
million (including expenses incurred in connection with the acquisition) and thus becomes a subsidiary of the company as on December 31, 2014.
4. Investment in Muthoot Homefin (India) Limited

During the year ended 31.03.2017 the company has acquired 26,700,000 equity shares in Muthoot Homefin (India) Limited for a consideration of Rs. 303.58 million. As
at March 31, 2017, the total share holding in MuthootHomefin (India) Limited amounts to 66,200,000 equity shares representing 88.27 % of their total equity share
capital.
During the year ended 31.03.2016 the company has acquired 39,500,000 equity shares in MuthootHomefin (India) Limited representing 79 % of equity share capital of
MuthootHomefin (India) Limited for a consideration of Rs.449.11 million and thus became a subsidiary of the company on 2nd March, 2016. Page | A-35
During the year ended 31.03.2016 the company has acquired 39,500,000 equity shares in MuthootHomefin (India) Limited representing 79 % of equity share capital of
MuthootHomefin (India) Limited for a consideration of Rs.449.11 million and thus became a subsidiary of the company on 2nd March, 2016.
5. Investment in Muthoot Insurance Brokers Private Limited

The company has during the year acquired 100% of equity shares of Muthoot Insurance Brokers Private Limited for a consideration of Rs. 200.00 million and making it a
wholly owned subsidiary.
6. Investment in Belstar Investment and Finance Private Limited

During the year, the company acquired 15,017,459 equity shares in Belstar Investment and Finance Private Limited representing 64.60% of equity share capital of Belstar
Investment and Finance Pvt Ltd for a consideration of Rs. 626.75 million and thus making it a subsidiary of the company.
7. Additional disclosures stipulated by the Reserve Bank of India
st
1. Disclosure required as per Reserve Bank of India Notification No. DNBS.CC.PD.NO. 265/03.10.01/2011-12 dated 21 March, 2013.
(Rs. in millions)
As at As at As at As at As at
Particulars
Gold Loans granted against collateral of gold jewellery 2,72,199.60 2,43,355.41 2,33,499.01 2,16,179.10 2,60,003.73
Total assets of the Company 3,07,130.72 2,70,487.33 2,67,692.51 2,55,938.74 2,94,162.65
Percentage of gold loans to Total Assets 88.63% 89.97% 87.23% 84.47% 88.39%
Page | A-36
DISCLOSURES REQUIRED AS PER RESERVE BANK OF INDIA MASTER DIRECTION - NON-BANKING FINANCIAL COMPANY -
SYSTEMICALLY IMPORTANT NON-DEPOSIT TAKING COMPANY AND DEPOSIT TAKING COMPANY (RESERVE BANK) DIRECTIONS, 2016
(Rs. in millions)
Amount Amount Amount Amount Amount Amount

Sl.No Particulars
outstanding overdue outstanding overdue outstanding overdue
Liabilities : As at March 31,2017 As at March 31,2016 As at March 31,2015
(1) Loans and advances availed by the non-banking financial company inclusive of interest accrued thereon but not paid :-
(a) Debentures: Secured 68,112.01 NIL 82,986.94 NIL 96,980.38 NIL
: Unsecured NIL NIL NIL NIL NIL NIL
(other than falling within the meaning of public deposits) NIL
: Perpetual Debt Instrument NIL NIL NIL NIL NIL NIL
(b) Deferred credits NIL NIL NIL NIL NIL NIL
(c) Term Loans 2,002.94 NIL 6.00 NIL 8.01 NIL
(d) Inter-corporate loans and borrowing NIL NIL NIL NIL NIL NIL
(e) Commercial Paper 31,765.18 NIL NIL NIL NIL NIL
(f) Other Loans (specify NIL
Loan from Directors/ Relatives of Directors 5,984.10 NIL 6,765.93 NIL 5,197.13 NIL
Subordinated Debt 32,676.75 NIL 41,049.32 NIL 38,363.82 NIL
Borrowings from Banks/FI 90,165.17 NIL 77,013.83 NIL 72,507.37 NIL
Overdraft against Deposit with Banks 3.71 NIL 7.78 NIL 1.39 NIL
Amount Amount Amount Amount

Sl.No Particulars
outstanding overdue outstanding overdue
Liabilities : As at March 31,2014 As at March 31,2013
(1) Loans and advances availed by the non-banking financial company inclusive of interest accrued thereon but not paid :-
(a) Debentures: Secured 1,13,622.85 NIL 1,18,918.60 NIL
: Unsecured NIL NIL NIL NIL
(other than falling within the meaning of public deposits)
: Perpetual Debt Instrument NIL NIL NIL NIL
(b) Deferred credits NIL NIL NIL NIL
(c) Term Loans 1,938.61 NIL 10,999.20 NIL
(d) Inter-corporate loans and borrowing NIL NIL 55.9 NIL
(e) Commercial Paper 91.78 NIL 2,341.80 NIL
(f) Other Loans (specify
Loan from Directors/ Relatives of Directors 4,055.04 NIL 1,864.50 NIL
Subordinated Debt 34,443.50 NIL 27,616.10 NIL
Borrowings from Banks/FI 56,223.99 NIL 90,728.00 NIL
Overdraft against Deposit with Banks 0.35 NIL NIL NIL
Page | A-37
(Rs. in millions)
Amount Amount Amount Amount Amount
Sl.No Particulars
outstanding outstanding outstanding outstanding outstanding
Assets :
31,2017 31,2016 31,2015 31,2014 31,2013
(2) Break-up of Loans and Advances including bills receivables (other than those included in (4) below) :- (including interest
accrued)
(a) Secured 2,84,990.28 2,52,977.84 245,103,.00 2,29,175.91 2,63,794.10
(b) Unsecured 1,957.83 6,935.47 1,825.21 2,428.12 74.10
(3) Break-up of Leased Assets and stock on hire and other assets counting towards AFC activities:-
(i) Lease assets including lease rentals under NIL NIL NIL NIL NIL
sundry debtors:-
(a) Financial lease NIL NIL NIL NIL NIL
(b) Operating lease NIL NIL NIL NIL NIL
(ii) Stock on hire including hire charges under NIL NIL NIL NIL NIL
sundry debtors
(a) Assets on hire NIL NIL NIL NIL NIL
(b) Repossessed Assets NIL NIL NIL NIL NIL
(iii) Other loans counting towards AFC activities NIL NIL NIL NIL NIL
(a) Loans where assets have been repossessed NIL NIL NIL NIL NIL
(b) Loans other than (a) above NIL NIL NIL NIL NIL
(4) Break-up of Investments (net of provision for diminution in value) :-
Current Investments:-
1. Quoted:
(i) Shares : (a) Equity NIL NIL NIL NIL NIL
(b) Preference NIL NIL NIL NIL NIL
(ii) Debentures and Bonds NIL NIL NIL NIL NIL
(iii) Units of mutual funds NIL NIL NIL NIL NIL
(iv) Government Securities(net of amortisation) NIL NIL NIL NIL NIL
(v) Others NIL NIL NIL NIL NIL
2. Unquoted:
(i) Shares : (a) Equity NIL NIL NIL NIL NIL
(iv) Government Securities NIL NIL NIL NIL NIL
Long Term investments:-
1. Quoted:
(i) Shares : (a) Equity 392.90 386.80 338.17 0.05 0.05
(iv) Government Securities (net of amortisation) 62.11 NIL NIL NIL NIL
2. Unquoted:
(i) Shares : (a) Equity 1,626.15 495.81 46.70 46.70 75.00
(ii) Debentures and Bonds 10.00 100.00 NIL NIL NIL
(iii) Units of mutual funds NIL NIL NIL NIL
(iv) Government Securities NIL NIL NIL NIL NIL
(v) Others - Investment in Pass Through Certificates NIL NIL NIL NIL NIL
Page | A-38
(Rs. in millions)
(5) Borrower Group-wise Classification of Assets Financed as in (2) and (3) above:-
Category Amount (Net of provisioning) Amount (Net of provisioning) Amount (Net of provisioning)
Secured Unsecured Total Secured Unsecured Total Secured Unsecured Total
1. Related Parties
(a) Subsidiaries 183.33 NIL 183.33 NIL NIL NIL NIL NIL NIL
(b) Companies in the same
group NIL NIL NIL NIL NIL NIL NIL NIL NIL
(c) Other related parties NIL NIL NIL NIL NIL NIL NIL NIL NIL
2. Other than related parties 271240.71 342.04 271582.75 242474.80 295.02 242769.82 233264.75 95.68 233360.43
Total 2,71,424.04 342.04 2,71,766.08 2,42,474.80 295.02 242769.82 233264.75 95.68 233360.43
As at March 31, 2014 As at March 31, 2013

Category Amount (Net of provisioning) Amount (Net of provisioning)
Secured Unsecured Total Secure d Unsecured Total
1. Related Parties
(a) Subsidiaries NIL NIL NIL NIL NIL NIL
(b) Companies in the same
NIL NIL NIL NIL NIL NIL
group
(c) Other related parties NIL NIL NIL NIL NIL NIL
2. Other than related parties 217850.33 39.64 217889.97 263794.10 74.10 263868.20
Total 217850.33 39.64 2,17,889.97 263794.1 74.10 263868.2
(Rs. in millions)
(6) Investor group-wise classification of all investments (current and long term ) in shares and securities (both quoted and unquoted) :-
As at March 31, 2017 As at March 31, 2016 As at March 31, 2015 As at March 31, 2014 As at March 31, 2013
Market Value / Market Value /
Market Value / Market Value / Market Value /
Book Value Book Value Break up value Book Value Book Value Break up value Book Value
Category Break up value Break up value Break up value
(Net of (Net of or fair value or (Net of provisio (Net of or fair value or (Net of
or fair value or or fair value or or fair value or
provisioning) provisioning) Net Asset ning) provisioning) Net provisioning)
Net Asset Value Net Asset Value Net Asset Value
Value Asset Value
1. Related Parties
(a) Subsidiaries 1,889.90 1,982.30 733.69 835.87 314.47 338.12 NIL NIL NIL NIL
(b) Companies in the same group 46.70 46.70 46.70 46.70 46.70 46.70 46.70 46.70 75.00 75.00
(c) Other related parties NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL
2. Other than related parties 65.61 62.16 100.06 100.05 0.07 0.05 315.09 307.05 750.05 750.05
Total 2,002.21 2,091.16 880.45 982.62 361.24 384.87 361.79 353.75 825.05 825.05
Page | A-39
(Rs. in millions)
(7) Other information Amount outstanding as at
(i) Gross Non-Performing Assets
(a) With Related parties NIL NIL NIL NIL NIL
(b) With Others 5621.3 7024.61 5116.66 4160.51 5250.3
(ii) Net Non-Performing Assets
(b) With Others 4602.03 6005.35 4391.28 3435.13 4549.7
(iii) Assets acquired in satisfaction of
debt
(b) With Others NIL NIL NIL NIL NIL
DISCLOSURES REQUIRED AS PER RESERVE BANK OF INDIA MASTER DIRECTION - NON BANKING FINANCIAL COMPANY - SYSTEMATICALLY IMPORANT NON - DEPOSIT
TAKING COMPANY AND DEPOSIT TAKING COMPANY ( RESERVE BANK) DIRECTIONS, 2016
Particulars As at March 31,2017 As at March 31,2016 As at March 31,2015 As at March 31,2014
1. No. of loan accounts auctioned 2,55,852 9,05,056 6,48,123 7,14,014
2.The outstanding dues on the above loan accounts till the respective date
12,994.36 46,910.94 32,043.29 37,347.29
of auction (Rs. In millions)
3.Amount realized on auctioning of gold jewellery taken as collateral

11,847.00 38,799.98 27,879.03 34,293.13
security on these loans (Rs. In millions)
Company confirms that none of its sister concerns participated in the above auctions.
Page | A-40
a)Capital
i) CRAR (%) 24.88 24.48 24.78 24.69 19.62
ii)CRAR-Tier I capital (%) 21.78 20.92 19.96 18.01 13.41
iii) CRAR-Tier II capital (%) 3.1 3.56 4.82 6.68 6.21
iv) Amount of subordinated debt
raised as Tier-II capital (Rs. In 19119.37 25456.2 26538.01 26346.81 23100.97
millions)
v) Amount raised by issue of
Perpetual Debt Instruments (Rs. In NIL NIL NIL NIL NIL
millions)
b)Investments (Rs. In millions)

1) Value of Investments
(i) Gross Value of Investments
(a) In India 1698.3 595.86 46.75 353.75
(b) Outside India, 392.85 386.75 338.12 NIL
(ii) Provisions for Depreciation
(a) In India NIL NIL NIL NIL
(b) Outside India, NIL NIL NIL NIL
(iii) Net Value of Investments
(a) In India 1698.3 595.86 46.75 353.75
(b) Outside India. 392.85 386.75 338.12 NIL
2) Movement of provisions held towards
Depreciation on investments.
(i) Opening balance NIL NIL NIL NIL
(ii) Add : Provisions made during the year NIL NIL NIL NIL
(iii) Less : Write-off / write-back of excess provisions during the year NIL NIL NIL NIL
(iv) Closing balance NIL NIL NIL NIL
Page | A-41
c)Asset Liability Management
Maturity pattern of certain items of assets and liabilities (Rs. In millions)

Over one
Over 2 months Over 3 months Over 6 months Over 1 year to Over 3 to 5
As at March 31,2017 1 to 30/31 days month to 2 Over 5 years Total
to 3 months to 6 months to 1 year 3 years years
months
Liablities
Deposits - - - - - - - - -
Borrowings 5,084.66 20,814.41 15,844.59 13,495.36 1,13,408.69 38,397.66 2,662.62 1,251.63 2,10,959.62
Foreign Currency Liabilities
- - - - - - - - -
Assets
Advances 54,487.83 40,894.52 32,715.71 73,619.77 60,062.87 11,004.65 - - 2,72,785.35
Investments - - - - - 10.38 30.64 1,657.28 1,698.30
Foreign Currency assets - - - - - - - 392.85 392.85
Over one
months
Liabilities
Deposits - - - - - - - - -
Borrowings 5,823.60 3,849.24 2,797.04 14,625.58 99,786.88 48,809.18 2,581.43 1,371.98 1,79,644.93
Foreign Currency Liabilities - - - - - - - - -
Assets
Advances 46,307.50 39,006.83 21,985.25 51,194.84 65,826.23 19,468.43 - - 2,43,789.08
Investments - - - - - - 100.00 495.86 595.86
Page | A-42
Over one
months
Liabilities
Deposits - - - - - - - - -
Borrowings 4,638.96 3,385.00 2,897.68 14,101.84 97,302.25 57,167.37 8,583.47 1,374.74 1,89,451.31
Assets
Advances 32,771.86 58,521.18 32,771.86 51,498.64 46,816.94 11,704.23 - - 2,34,084.71
Investments - - - - - - - 46.75 46.75
Over one
months
Liablities
Deposits - - - - - - - - -
Borrowings 8,030.05 5,446.16 5,391.65 19,724.53 83,146.39 49,947.62 17,678.78 1,419.63 1,90,784.81
Assets
Advances 30,606.15 54,653.84 30,606.15 48,095.38 43,723.07 10,930.77 - - 2,18,615.35
Investments - - - 307.00 - - - 46.75 353.75
Foreign Currency assets - - - - - - - - -
Page | A-43
d)Exposures
i) Exposure to Real Estate Sector (Rs. in millions)
Sl. As at As at As at As at
Category
No. March 31,2017 March 31,2016 March 31,2015 March 31,2014
a) Direct exposure (Net of Advances from Customers)
(i) Residential Mortgages -
Lending fully secured by mortgages on residential property that is or will be occupied by the
NIL NIL NIL NIL
borrower or that is rented:
(ii) Commercial Real Estate -
Lending secured by mortgages on commercial real estates (office buildings, retail space,
multipurpose commercial premises, multi-family residential buildings, multi-tenanted commercial
premises, industrial or warehouse space, hotels, land acquisition, development and construction, etc.). 180.80 170.00 35.64 NIL
Exposure would also include non- fund based (NFB) limits;
Investments in Mortgage Backed Securities (MBS) and other securitised exposures -

(iii)
a. Residential, NIL NIL NIL NIL

b. Commercial Real Estate. NIL NIL NIL NIL
Total Exposure to Real Estate Sector 180.80 170.00 35.64 NIL
Page | A-44
ii) Exposure to Capital Market
(Rs. In millions)
Sl. Particulars As at As at As at As at
No. March 31, 2017 March 31, 2016 March 31, 2015 March 31,2014
i) direct investment in equity shares, convertible bonds, convertible debentures and units of equity-oriented
mutual 0.05 0.05 0.05 0.05
funds the corpus of which is not exclusively invested in corporate debt
ii) advances against shares / bonds / debentures or other securities or on clean basis to individuals for
investment in shares (including IPOs / ESOPs), convertible bonds, NIL NIL NIL NIL
convertible debentures, and units of equity-oriented mutual funds
iii) advances for any other purposes where shares or convertible bonds or convertible debentures or units of
equity oriented NIL NIL NIL NIL
mutual funds are taken as primary security
iv) advances for any other purposes to the extent secured by the collateral security of shares or convertible
bonds or convertible debentures or units of equity oriented mutual funds i.e. where the primary security other
than shares / convertible bonds /convertible debentures / units of equity NIL NIL NIL NIL
oriented mutual funds does not fully cover the advances
v) secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and market
NIL NIL NIL NIL
makers
vi) loans sanctioned to corporates against the security of shares
/bonds / debentures or other securities or on clean basis for meeting promoter's contribution to the equity of NIL NIL NIL NIL
new companies in anticipation of raising resources
vii) bridge loans to companies against expected equity flows
NIL NIL NIL NIL
/issues
viii) all exposures to Venture Capital Funds (both registered and unregistered) NIL NIL NIL NIL
Total Exposure to Capital Markets 0.05 0.05 0.05 0.05
Page | A-45
e) Registration obtained from financial sector regulators
Sl.No Regulator Registration Number
1 Reserve Bank of India Certificate of Registration No.N 16.00167
f) Penalties levied by the above Regulators

Penalties levied by the above Regulators NIL NIL NIL NIL
g) Ratings assigned by Credit rating Agencies

Sl. No Particulars As at March 31,2017 As at March 31,2016 As at March 31,2015 As at March 31,2014
1 Commercial paper & Non - CRISIL A1+, ICRA CRISIL A1+, ICRA A1+ CRISIL A1+, ICRA A1+ CRISIL A1+, ICRA A1+
convertible Debentures- Short Term A1+
2 Bank Loans - Working Capital ICRA A1+ ICRA A1+ ICRA A1+ ICRA A1+
Demand Loans
3 Bank Loans - Cash Credit ICRA AA(Stable) ICRA AA-(Stable) ICRA AA-(Stable) ICRA AA-(Stable)
4 Bank Term Loans ICRA AA(Stable) ICRA AA-(Stable) ICRA AA-(Stable) ICRA AA-(Stable)
5 Non Convertible Debentures- Long CRISIL AA(Stable), CRISIL AA-(Stable), CRISIL AA-(Stable), ICRA CRISIL AA-(Stable), ICRA
term ICRA AA(Stable) ICRA AA- AA-(Stable) AA-(Stable)
(Stable)
6 Subordinated Debt CRISIL AA(Stable), CRISIL AA-(Stable), CRISIL AA-(Stable), ICRA CRISIL AA-(Stable), ICRA
ICRA AA(Stable) ICRA AA- AA-(Stable) AA-(Stable)
(Stable)
During the year ended 31.03.2017 CRISIL Ltd. has upgraded the long term rating from ' CRISIL AA-(Stable)' to 'CRISIL AA(Stable)' and ICRA
Ltd. has upgraded the long term rating from 'ICRA AA-(Stable)' to 'ICRA AA(Stable)'.
Page | A-46
h) Provisions and Contingencies (Rs. In millions)
Sl. Break up of 'Provisions and Contingencies' shown under the head
No Expenditure in Profit and Loss Account As at March 31,2017 As at March 31,2016 As at March 31,2015 As at March 31,2014
1 Provisions for depreciation on Investment Nil Nil Nil Nil

2 Provision towards NPA Nil 293.89 Nil 24.75
3 Provision made towards Income tax 7,411.45 5,048.08 3,569.59 4,108.93
4 Other Provision and Contingencies (with details):
Provision for other losses 2.64 0.51 Nil Nil
Provision for Gratuity 5.27 2.39 7.51 18.73
5 Provision for Standard Assets 2,647.83 1,222.80 179.79 189.20
i) Concentration of Advances (Rs. In millions)

Total Advances to twenty largest borrowers 467.49 731.08 621.08 686.74
Percentage of Advances to twenty largest borrowers to Total Advances of the NBFC
0.17% 0.30% 0.27% 0.31%
j) Concentration of Exposures (Rs. In millions)

Total Exposures to twenty largest borrowers/customers 467.49 731.08 621.08 686.74
Percentage of Exposures to twenty largest borrowers/Customers to Total Advances of
0.17% 0.30% 0.27% 0.31%
the NBFC on borrowers/Customers.
k) Concentration of NPAs (Rs. In millions)

Sl. Particulars As at March 31,2017 As at March 31,2016 As at March 31,2015 As at March 31,2014
No.
1 Total Exposures to top four NPA accounts 32.82 33.98 35.79 33.18
l) Sector-wise NPAs
Percentage of NPAs to Percentage of NPAs to Percentage of NPAs to Percentage of NPAs to Total
Sl.
Total Advances in that Total Advances in that Total Advances in that Advances in that sector as
No Sector
sector as on March sector as on March sector as on March on March 31,2014
.
31,2017 31,2016 31,2015
1 Agriculture & allied activities Nil Nil Nil Nil
2 MSME Nil Nil Nil Nil
3 Corporate borrowers Nil Nil Nil Nil
4 Services Nil Nil Nil Nil
5 Unsecured personal loans Nil Nil Nil Nil
6 Auto loans (commercial vehicles) Nil Nil Nil Nil
7 Other loans 2.06% 2.88% 2.19% 1.90%
Page | A-47
m) Movement of NPAs
(Rs. In millions)
Sl. As at March As at March As at March As at March
Particulars
No. 31,2017 31,2016 31,2015 31,2014
(i) Net NPAs to Net
1.69% 2.46% 1.88% 1.57%
Advances (%)
(ii) Movement of NPAs

(Gross)
(a) Opening balance 7,024.61 5,116.66 4,160.51 5,250.30
(b) Additions during the
4,754.37 6,720.26 4,798.39 3,644.05
year
( c) Reductions during
6,157.68 4,812.31 3,842.24 4,733.84
the year
(d) closing balance 5,621.30 7,024.61 5,116.66 4,160.51
(iii) Movement of Net NPAs
(a) Opening balance 6,005.35 4,391.28 3,435.13 4,549.68
(b) Additions during the
4,754.37 6,426.38 4,798.39 3,619.30
year
( c) Reductions during
6,157.69 4,812.31 3,842.24 4,733.84
the year
(d) Closing balance 4,602.03 6,005.35 4,391.28 3,435.14
(iv) Movement of provisions
for NPAs (excluding
provisions on standard
assets)
(a) Opening balance 1,019.27 725.38 725.38 700.62
(b) Provisions made
- 293.89 - 24.75
during the year
( c) Write-off / write -
back of excess - - - -
provisions
(d) Closing balance 1,019.27 1,019.27 725.38 725.37
n) Overseas Assets (Rs. In millions)
Total assets
Sl.
Name of the Subsidiary Country
No. As at March As at March As at March
31,2017 31,2016 31,2015
1 Asia Asset Finance PLC, Sri Lanka
392.85 386.75 338.12
Sri Lanka
Page | A-48
o) Customer Complaints (Rs. in millions)
Sl.No Particulars 31.03.2017 31.03.2016 31.03.2015
(a) No. of complaints pending as at the beginning of the year - - -
(b) 193 212 150

No of complaints received during the year
(c) No of complaints redressed during the year 177 212 150
(d) No. of complaints pending as at the end of the year 16 - -
6. Disclosure pursuant to Part A of Schedule V read with regulation 34(3) and 53(F) of SEBI (Listing obligations and disclosure requirements)
Regulations, 2015
Sl. No Loans and Advances in the nature of Maximum Maximum Maximum
Loans Amount Amount Amount
` Amount Amount Amount
Outstanding Outstanding Outstanding
Outstanding as Outstanding as Outstanding as
during the year during the year during the year
at 31.03.2017 at 31.03.2016 at 31.03.2015
ended ended ended
31.03.2017 31.03.2016 31.03.2015
(A) To Subsidiaries 183.33 640.00 NIL NIL NIL NIL
(B) To Associates N.A N.A N.A N.A N.A N.A
(C) Where there is

(i) No repayment schedule NIL NIL NIL NIL NIL NIL
(ii) Repayment beyond seven years NIL NIL NIL NIL NIL NIL
(iii) No interest NIL NIL NIL NIL NIL NIL
(iv) Interest below the rate as specified in NIL NIL
section 372A of the Companies Act,1956
/ NIL NIL NIL NIL
Section 186 of Companies Act 2013 as
applicable
(D) To Firms/Companies in which Directors
are Interested (other than (A) and (B)
above)
NIL NIL NIL NIL NIL NIL
(E) Investments by the loanee in the shares of NIL NIL NIL NIL NIL NIL
Parent Company and Subsidiary
Company when the Company has made a
loan
or advance in the nature of loan
7. The figures of earlier periods have been regrouped wherever necessary, to confirm to the classification adopted for the Reformatted Standalone Summary
Statements as at and for the year ended March 31 2017 and accordingly the Standalone summary statement of the above five year period are referred to as the
Reformatted Standalone financial information.
Page | A-49
Auditors Report on Reformatted Consolidated Financial Information
To
Board of Directors
Banerji Road
Kochi – 682 018
Dear Sirs,
1. We have examined the attached Reformatted Consolidated Financial Information of Muthoot
Finance Limited ( the “ Company” ) and its subsidiaries (collectively known as “Group”),
which comprise of the Reformatted Consolidated Summary Statement of Assets and
Liabilities as at March 31, 2017, 2016 and 2015, the Reformatted Consolidated Summary
Statement of Profit and Loss and the Reformatted Consolidated Summary Statement of Cash
Flows for each of the years ended March 31, 2017, 2016 and 2015 and the Summary
Statement of Significant Accounting Policies and notes thereon prepared by the Management
of the Company in terms of the requirements of:
a. Section 26 (1) of Part I of Chapter III of the Companies Act, 2013 ("the Act") read
with Companies (Prospectus and Allotment of Securities) Rules, 2014, as applicable
(“the Rules); and
b. the Securities and Exchange Board of India (Issue and Listing of Debt Securities)
Regulations, 2008 as amended from time to time in pursuance of provisions of
Securities and Exchange Board of India Act, 1992 ("SEBI Regulations")
in connection with the Proposed Public Offering of Non-Convertible Debentures of the

Company and has been approved by the NCD Public Issue Committee of the Board of
Directors of the Company. The preparation of the Reformatted Consolidated Financial
Information is the responsibility of the Management of the Company for the purpose set out
in paragraph 12 below. The Management’s responsibility includes designing, implementing
and maintaining adequate internal control relevant to the preparation and presentation of the
Reformatted Consolidated Financial Information. The Management is also responsible for
identifying and ensuring that the Company complies with the Rules and SEBI Regulations.
2. We have examined such Reformatted Consolidated Financial Information taking into

consideration:
a. The terms of reference and terms of our engagement agreed upon with you in
accordance with our engagement letter dated January 15, 2018 in connection with the
proposed Public Issue of Non-Convertible Debentures of the Company; and
b. The Guidance Note on Reports in Company Prospectuses (Revised 2016) issued by
ICAI (“The Guidance Note”).
3. The Reformatted Consolidated Financial Information have been compiled by the management
from the Audited Consolidated Financial Statements as at March 31 2017, 2016 and 2015 and
Page | A-50
for each of the years ended March 31 2017, 2016 and 2015 which have been approved by
Board of directors at their meetings held on May 18 2017, May 27 2016 and May 5 2015
respectively.
The Audit for the financial years ended March 31 2017, 2016 and 2015 was conducted by the
previous auditor, M/s Rangamani & Co(the “previous auditor”) and accordingly reliance has
been placed on the audit opinions issued by the previous auditor dated May 18 2017, May 27
2016, and May 5 2015 respectively to the members of the Company for the said years.
4. Based on our examination in accordance with the requirements of Section 26(1) of Part I of
Chapter III of the Act read with the Rules, the SEBI Regulations and the Guidance Note, we
report that:
The Reformatted Consolidated Summary Statement of Assets and Liabilities and Schedules
forming part thereof, the Reformatted Consolidated Summary Statement of Profit and Loss
and Schedules forming part thereof and the Reformatted Consolidated Summary Statement of
Cash Flows (together referred to as “Reformatted Consolidated Summary Statements”) of the
Group, including as at and for each of the years ended March 31,2017, March 31,2016 and
March 31, 2015 examined by us as set out in Annexure I to III to this report have been arrived
at after making regrouping, as are appropriate and more fully described in Summary
Statement of Significant Accounting Policies in Annexure VI and Notes in other annexures.
5. Based on the above, and according to the information and explanations given to us, and also
as per the reliance placed on the audit reports submitted by the previous auditor for the
respective years, we further report that the Reformatted Consolidated Financial Information:
a. Have to be read in conjunction with the Summary Statement of Significant

Accounting Policies in Annexure VI and notes given in other annexures
b. The figures of periods ended March 31 2016 and 2015 have been regrouped (but not
restated retrospectively for changes in accounting policies), wherever necessary, to
conform to the classification adopted for the Reformatted Consolidated Summary
Statements as at and for the year ended March 31 2017.
c. There are no extraordinary items which need to be disclosed separately in the
attached Reformatted Consolidated Summary Statements;
d. There are no qualifications in the auditors’ reports, which require any adjustments to
the Reformatted Consolidated Summary Statements; and
e. In the preparation and presentation of Reformatted Statements based on audited
financial statements as referred to in paragraph 1 above, no adjustments have been
made for any events occurring subsequent to dates of the audit reports
6. As stated in the audit reports of the previous auditors referred to in paragraph 3 above, the
audits were conducted in accordance with the Standards on Auditing under Section 143(10) of
the Act/ issued by the Institute of Chartered Accountants of India to enable them to issue an
opinion on the General Purpose Financial Statements. Those standards require that the auditor
comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatements. An
audit involves performing procedures to obtain audit evidence supporting the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
Page | A-51
In making those risk assessments, the auditor considers internal control relevant to the
fair view in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on whether the Company has in place an adequate
internal financial controls system over financial reporting and the operating effectiveness of
such controls for the year ended March 31 2015. For the year ended 31st March 2017 and
2016, in making those risk assessments, the auditor considers internal control relevant to the
fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statement. The auditor believes that the audit evidence
obtained is sufficient and appropriate to provide a basis for the audit opinion.
7. The Consolidated financial statements for the periods up to March 31, 2017 were audited by
the previous auditor and we have not audited any Consolidated financial statements of the
Company as of any date or for any period subsequent to March 31, 2017. Accordingly, we
express no audit opinion on the Consolidated financial position, results of operations or cash
flows of the Company as of any date or for any period subsequent to March 31, 2017.
8. At the request of the Company, we have also examined the following reformatted
consolidated financial information (Other Information) of the Group set out in the below
Annexure prepared by the management and approved by the NCD Public Issue Committee of
the Board of Directors on February 21, 2018 and based on the audit reports submitted by the
previous auditor and relied upon by us for the years ended March 31, 2017, 2016 and 2015.
These information are based upon the reports submitted by the previous auditor and relied
upon by us.
a. Details of Rates of Dividend, as appearing in Annexure VII
9. According to the information and explanations given to us and also as per the reliance placed
on the reports submitted by the previous auditor, in our opinion, the Reformatted
Consolidated Financial Information and the Other information contained in Annexures
accompanying this report, read with the Summary Statement of Significant Accounting
Policies and Notes disclosed in annexures , are prepared after making regrouping as
considered appropriate and have been prepared in accordance with Section 26(1) of Part I of
Chapter III of the Companies Act, 2013 read with the Rules, SEBI Regulations and the
Guidance Note.
10. This report should not in any way be construed as a reissuance or re-dating of any of the
previous audit reports, nor should this report be construed as a new opinion on any of the
Audited Consolidated Financial Statements referred to herein.
11. We have no responsibility to update our report for events and circumstances occurring after
the date of the report.
12. This report is intended solely for your information and for inclusion in the offer document
prepared in connection with the proposed Public Issue of Non-convertible debentures of
Page | A-52
Muthoot Finance Limited. Our report should not be used, referred to or distributed for any
other purpose without our prior consent in writing.
For Varma & Varma

FRN : 004532S
Sd/-
Partner
Membership No: 203094
Place : Kochi
Date : 21.02.2018
Page | A-53
ANNEXURE-I: REFORMATTED CONSOLIDATED SUMMARY STATEMENT OF ASSETS AND
LIABILITIES
(₹ in Millions)
Particulars Note No. As at 31.03.2017 As at 31.03.2016 As at 31.03.2015
EQUITY AND LIABILITIES

Shareholders’ funds
(a) Share capital 1 3,994.76 3,990.02 3,979.66
(b) Reserves and surplus 2 61,385.64 52,232.85 46,860.55
Minority Interest 719.38 376.77 289.30
Non-current liabilities
(a) Long-term borrowings 3 48,451.34 54,265.57 67,664.94
(b) Other Long-term liabilities 4 6,719.69 11,268.29 12,078.10
(c) Long-term provisions 5 97.05 9.12 12.28
Current liabilities
(a) Short-term borrowings 3 127,658.66 83,708.09 77,606.51
(b) Trade Payables
-Total outstanding dues of micro enterprises
- - -
and small enterprises
-Total outstanding dues of creditors other
975.47 624.22 526.29
than micro enterprises and small enterprises
(c) Other current Liabilities 6 65,047.40 62,191.66 57,845.09
(d) Short-term provisions 7 6,792.03 5,280.93 3,099.19
TOTAL 321,841.42 273,947.52 269,961.91

ASSETS
Non-current assets
(a) Fixed assets 8
(i) Tangible Assets 2,262.40 2,264.53 2,586.65
(ii) Intangible Assets 99.92 51.76 59.92
(iii) Capital Work-in-progress 99.78 107.16 63.32
(iv) Intangible Assets under development - - 5.32
(b) Goodwill on consolidation 211.50 35.78 42.19
(c) Non-current investments 9 159.07 146.97 47.01
(d) Deferred tax assets (net) 635.15 563.59 392.29
(e) Long-term loans and advances 10 8,365.98 2,389.13 1,905.76
Current assets
(a) Current investments 11 806.25 343.87 155.31
(b) Trade receivables 12 12,769.31 14,679.18 11,549.97
(c) Cash and Bank Balances 13 16,448.76 7,140.05 17,571.21
(d) Short-term loans and advances 14 279,923.23 246,198.12 235,519.12
(e) Other current assets 15 60.07 27.38 63.84
TOTAL 321,841.42 273,947.52 269,961.91

Notes on accounts form part of consolidated financial statements
For Varma & Varma
Charterd Accountants For and on behalf of the Board of Directors
FRN:004532 S
Sd/
-
Partner (Membership No.203094) Sd/
Place : Kochi -
Date: 21-02-2018 Managing Director
Page | A-54
ANNEXURE-II: REFORMATTED CONSOLIDATED SUMMARY STATEMENT OF PROFIT AND
LOSS
(₹ in Millions)
Note For the Year Ended For the Year Ended For the Year Ended
Particulars
No. 31.03.2017 31.03.2016 31.03.2015
Revenue from Operations 16 59,108.01 49,199.84 43,245.43

Other income 17 275.90 207.77 120.11
Total Revenue 59,383.91 49,407.61 43,365.54
Expenses:
Employee benefits expense 18 7,642.31 6,538.24 6,333.18
Finance costs 19 23,688.40 22,856.23 21,122.64
Other expenses 20 4,623.65 4,300.33 4,213.51
Directors Remuneration 358.00 195.60 192.49
Depreciation and amortization expense 8 519.21 586.57 843.02
Provisions and Write Offs 21 2,966.50 1,664.05 374.02
Total Expenses 39,798.07 36,141.02 33,078.86
Profit Before Tax 19,585.84 13,266.59 10,286.68
Tax expense:
Current tax 7,569.92 5,219.48 3,695.11
Deferred tax (54.94) (155.21) (127.63)
Taxes relating to Previous Years (1.74) 23.93 3.75
Profit for the year (before adjustment for Minority

12,072.60 8,178.39 6,715.45
Interest)
Less: Share of profit transferred to Minority Interest (74.75) (33.39) (5.00)
Profit for the year (after adjustment for Minority

11,997.85 8,145.00 6,710.45
Interest)
Earnings per equity share of ₹10/- each

Basic 30.06 20.46 16.98
Diluted 29.95 20.22 16.81
Notes on accounts form part of consolidated financial statements
For Varma & Varma
FRN:004532 S
Sd/
-
Place :Kochi -
Page | A-55
ANNEXURE III - REFORMATTED CONSOLIDATED SUMMARY OF CASH FLOW STATEMENT
(₹in Millions)
For the Year Ended For the Year Ended For the Year Ended
Particulars
31.03.2017 31.03.2016 31.03.2015
A. Cash Flow from Operating Activities
Net Profit Before Taxation 19,585.84 13,266.59 10,286.68

Adjustments for:
Add: Provision for Non-Performing Assets and bad debt written off 165.44 401.08 191.64
Add: Provision for Standard Assets and Other Losses 2,697.80 1,223.41 179.80
Add: Provision for Impairment 103.27 39.56 2.59
Add: Finance Cost 23,688.40 22,856.22 21,122.64
Add: Loss on Sale of Fixed Assets 2.23 0.11 0.13
Add: Depreciation and amortization 519.21 586.57 843.02
Add: Provision for Gratuity 10.56 2.40 12.28
Add: Expenses on ESOP 36.19 115.30 194.90
Less: Interest received – Others (205.09) (145.66) (98.27)
Less: Income from Investments (31.01) (14.43) (15.65)
Less: Profit on sale of Investments (5.67) (0.02) -
Operating profit before working capital changes 46,567.17 38,331.13 32,719.76
Adjustments for:
(Increase) / Decrease in Loans and Advances (33,585.02) (11,089.61) (15,603.55)
(Increase) / Decrease in Trade receivables 104.66 (3,236.40) (84.25)
(Increase) / Decrease in Other current assets (31.73) 42.60 (41.99)
(Increase) / Decrease in Bank balances other than Cash & Cash
(2,574) 67.12 825.58
Equivalents
Increase / (Decrease) in Current liabilities 1,922.12 455.72 84.60
Increase / (Decrease) in Other Long Term Provisions 2.49 0.63 -
Increase / (Decrease) in Other Liabilities (89.52) 30.17 (25.10)
Cash generated from operations 12,316.17 24,601.36 17,875.05
Finance cost paid (25,358.48) (19,732.16) (18,251.25)
Direct tax paid (8,863.60) (3,785.99) (3,589.22)
Net cash from operating activities (21,905.91) 1,083.21 (3,965.42)
B. Cash Flow from Investing Activities
Purchase of Fixed Assets (551.44) (282.30) (334.78)

Sale of Fixed Assets 8.73 23.07 23.41
(Increase) / Decrease in Capital Work in Progress 7.37 (20.27) 75.41
Investments in Bonds/ Mutual Funds/ Shares (694.74) (353.26) -
Sale of Bonds/ Investments 320.93 65.00 319.36
Acquisition of subsidiary (1,136.43) (48.63) (338.12)
Interest received – Others 204.09 145.01 101.52
Income from Investments 31.01 14.42 23.69
Net Cash from Investing Activities (1,810.48) (456.96) (129.51)
Page | A-56
C. Cash Flow from Financing Activities
Net Proceeds from Issue of Debentures (15,023.94) (13,182.46) (15,819.57)

Increase / (Decrease) in Loan from Directors / Relatives of
(780.47) 1,568.80 1,142.09
Directors
Increase / (Decrease) in Borrowings from Bank / Financial
20,259.40 5,075.94 14,329.62
Institutions
Increase / (Decrease) in Borrowings from customers 294.59 409.29 73.41
Increase / (Decrease) in Subordinated debt (6,336.83) (1,081.81) 191.19
Increase / (Decrease) in Commercial Papers 31,548.45 - (90.29)
Dividend paid (including Dividend distribution tax) - (3,832.72) (2,322.58)
Proceeds from issue of Share Capital 306.46 26.47 4,201.89
Expenses on further issue of Equity Shares - - (45.76)
Net Cash from Financing Activities 30,267.66 (11,016.49) 1,660.00
D. Net Increase in Cash and Cash Equivalents (A+B+C) 6,551.27 (10,390.24) (2,434.93)
Cash and Cash Equivalent at the Beginning of the Year 7,113.41 17,477.45 19,569.91
Add: Addition upon acquisition of subsidiary 84.43 26.20 342.47
Cash and Cash Equivalent at the End of The Year 13,749.11 7,113.41 17,477.45
Components of Cash and Cash Equivalents at the end of the
Year
Current Account with Banks 11,893.88 5,523.12 14,904.07
Deposit with Banks 207.47 110.33 100.00
Cash on Hand 1,647.76 1,479.96 2,473.38
Total 13,749.11 7,113.41 17,477.45
Notes:
1) The above cash flow statement has been prepared under the indirect method set out in Accounting Standard (AS)-3, ‘Cash Flow
Statement’ in compliance with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of
the Companies (Accounts) Rules, 2014.
2) All figures in brackets indicate outflow.
3) The cash flows from operating, investing and financing activities are segregated.

For Varma & Varma
FRN:004532 S
Sd/
-
Place :Kochi -
Page | A-57
ANNEXURE-IV: NOTES TO REFORMATTED CONSOLIDATED SUMMARY STATEMENT OF
ASSETS AND LIABILITIES
1. SHARE CAPITAL
1.1 Share Capital (₹in Millions)
Particulars As at 31.03.2017 As at 31.03.2016 As at 31.03.2015
Authorised
Equity Shares 4,500.00 4,500.00 4,500.00
450 mn equity 450 mn equity 450 mn equity
shares shares shares
of ₹ 10each of ₹ 10each of ₹ 10each
Preference Shares 5,000.00 5,000.00 5,000.00
5 mn preference 5 mn preference 5 mn preference
shares shares shares
of ₹ 1000 each of ₹ 1000 each of ₹ 1000 each
Issued, Subscribed & Paid up
Equity Shares 3,994.76 3,990.02 3,979.66

399,475,549 Equity 399,002,332 Equity 397,966,419 Equity
shares of ₹ 10 each shares of ₹ 10 each shares of ₹ 10 each
fully paid up fully paid up fully paid up
Total 3,994.76 3,990.02 3,979.66
1.2 Terms and Rights attached to Equity Shares

The Company has only one class of equity share having face value ₹ 10/- per share. All these shares have the same rights and preferences with
respect to the payment of dividend, repayment of capital and voting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.
1.3 The reconciliation of the number of shares outstanding and the amount of share capital is set out below: -
(₹in Millions)
Equity Shares Equity Shares Equity Shares
Number Amount Number Amount Number Amount

Shares outstanding at the beginning of the year 399,002,332 3,990.02 397,966,419 3,979.66 371,712,768 3,717.13
Shares issued in exercise of Employee Stock
473,217 4.74 1,035,913 10.36 902,589 9.02
Options during the year
Shares issued under Institutional Placement
- - - - 25,351,062 253.51
Programme during the year
Shares outstanding at the end of the year 399,475,549 3,994.76 399,002,332 3,990.02 397,966,419 3,979.66
Page | A-58
1.4 Disclosure as to the shareholders holding more than 5% shares
Sl. As at 31.03.2017 As at 31.03.2016 As at 31.03.2015
No. Name of Shareholder No. of Shares % of No. of % of No. of % of

held Holding Shares held Holding Shares held Holding
1 M. G. George Muthoot 46,551,632 11.65% 47,385,132 11.88% 47,385,132 11.91%
2 George Alexander Muthoot 43,630,900 10.92% 44,464,400 11.14% 44,464,400 11.17%
3 George Jacob Muthoot 43,630,900 10.92% 44,464,400 11.14% 44,464,400 11.17%
4 George Thomas Muthoot 43,630,900 10.92% 44,464,400 11.14% 44,464,400 11.17%
5 Susan Thomas 29,985,068 7.51% 29,985,068 7.52% 29,985,068 7.53%
1.5 Disclosure as to aggregate number and class of shares allotted as pursuant to contract(s) without payment being received in cash, fully
paid up by way of bonus shares and shares bought back.
Aggregate No. of Aggregate No. of Aggregate No. of

Shares issued in the Shares issued in the Shares issued in the
Particulars financial year financial year financial year
2016-17 2015-16 2014-15
Equity Shares:
Fully paid up pursuant to contract(s) without payment being
Nil Nil Nil
received in cash
Fully paid up by way of bonus shares Nil Nil Nil
Shares bought back Nil Nil Nil
1.6 Shares reserved for issue under Employee stock option scheme
During the FY 2016-17, the Company has reserved 2,837,904 equity shares (FY 2015-16 : 3,659,788 & FY 2014-15: 59,01,049) for issue under
the Employee Stock Option Scheme 2013.
2. RESERVES AND SURPLUS

(₹ in Millions)
a. Securities Premium Account
Balance at the beginning of the year 14,665.74 14,551.28 10,570.78
Add: Securities premium credited on Equity Share issue 56.07 114.46 4,026.26
Less: Premium Utilised for Institutional Placement Programme expenses - - 45.76
Closing Balance 14,721.81 14,665.74 14,551.28
b. General Reserve
Add: Amount transferred from surplus balance in the Statement of Profit and Loss - - -
Closing Balance 2,676.33 2,676.33 2,676.33
c. Debenture Redemption Reserve (Refer Note.2.1)
Page | A-59
Add: Amount transferred from surplus in the Statement of Profit and Loss 4,818.12 3,509.47 3,662.00
Closing Balance 20,335.91 15,517.79 12,008.32
d. Statutory Reserve (Refer Note 2.2)
Add: Amount transferred from surplus in the Statement of Profit and Loss 2,359.66 1,619.11 1,341.05
Closing Balance 12,654.51 10,294.85 8,675.74
e. Share options outstanding account
Balance at the beginning of the year 223.67 206.72 98.73
Additions during the year 36.19 115.30 194.90
Deduction during the year on share allotment 38.59 98.35 86.91
Closing Balance 221.27 223.67 206.72
f. Foreign Currency Translation Reserve
Balance at the beginning of the year (19.34) (0.03) -
Additions during the year (Net) (13.26) (19.31) (0.03)
Closing Balance (32.60) (19.34) (0.03)
g. Surplus in the Statement of Profit and Loss
Add: Net Profit For the year 11,997.85 8,145.00 6,710.45
Less: Consequent to change in Group's Interest 0.69 4.95 -
Less: Appropriations
Impact of change in Depreciation Rate net of Deferred Tax - - 24.08
Interim Dividend 2,396.85 2,390.18 1,588.26
Proposed Final Dividend on Equity Shares - - 795.93
Dividend relating to earlier year - 3.08 25.35
Corporate Dividend Tax 487.94 486.59 433.37
Transfer to Debenture Redemption Reserve 4,818.12 3,509.47 3,662.00
Transfer to Statutory Reserve 2,359.66 1,619.11 1,341.05
Closing Balance 10,808.41 8,873.81 8,742.19
Total 61,385.64 52,232.85 46,860.55
Page | A-60
2.1 Debenture Redemption Reserve
The Company has created Debenture Redemption Reserve (DRR) in accordance with the relevant provisions of the Companies Act 2013/
Companies Act 1956 read in conjunction with Securities and Exchange Board of India (Issue & Listing of Debt Securities) Regulations,
2008.
2.2 Statutory Reserve
Statutory Reserve represents the Reserve Fund created under Section 45 IC of the Reserve Bank of India Act, 1934.
3. BORROWINGS
3.1 Borrowings – Secured and Unsecured
(₹in Millions)
Non- Non- Non-

Current Current Current
Current Current Current
Particulars
As at As at As at As at As at As at
31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015
Secured
(a) Debentures
Secured Non-Convertible Debentures 5,269.45 14,378.92 17,766.81 19,920.63 26,529.93 42,072.26
(Secured by mortgage of immovable property

and paripassu floating charge on current assets,
book debts and Loans & advances)
(Refer Note 3.2)
Secured Non-Convertible Debentures – Listed 24,341.53 20,195.05 24,897.09 12,756.63 16,208.26 5,758.47
(Secured by mortgage of immovable property

and paripassu floating charge on current assets,
book debts and Loans & advances)
(Refer Note 3.3 & 3.4)
Secured Non-Convertible Debentures 400.00 - - - - -

(Secured by way of charge on hypothecated
receivables)
(Refer Note 3.5)
(b) Term loans
From banks
Term Loan (Secured by specific charge on
- 0.08 0.55 0.08 0.48 4.98
vehicles)
(Terms of Repayment: ₹ 0.08 during FY 2017-
18 in 3 monthly installments, Rate of Interest:
10.51 % p.a.)
Term Loan (Secured by promissory notes, loans,
lease and hire purchase receivables, Mortgage
244.30 134.67 6.31 128.03 36.64 -
bond over loan recoverable consist of business
loan, corporate loan and mortgage loan)
(Terms of Repayment: ₹128.04 repayable during
FY 17-18 in monthly installments & ₹244.30
after FY 17-18 repayable in monthly
installments, Rate of Interest: Base rate + (2.5%
– 3.5 %) p.a.)
Securitisation Loans (Secured by lease and hire
68.97 504.63 84.57 614.21 27.41 67.32
purchase assets and receivables)
Page | A-61
(Terms of Repayment: Repayable in 14-37
monthly installments. Rate of Interest: 11% –
17% p.a.)
Term Loan (Secured by paripassu floating
charge on current assets, book debts, Loans & 2,000.00 - - - - -
advances)
(Terms of Repayment: During FY 2018-19 in 4
quarterly installments, Rate of Interest: 8.75%
p.a.)
Term Loan from Banks (Secured by paripassu
floating charge on housing loan receivables, 2,053.47 - - 96.53 - -
credit and current assets)
(Terms of Repayment: ₹96.53 repayable during
FY 17-18 in quarterly / half yearly installments
& ₹2,053.47 after FY 17-18 repayable in
quarterly / half yearly installments, Rate of
Interest: 8.75% – 9.70%)
Term Loan from Banks (Secured by way of
specific charge on receivables created out of the 1,540.49 - - 1,255.28 - -
proceeds of the loan)
(Terms of Repayment: ₹1,255.28 repayable
during FY 17-18 in quarterly / monthly
installments & ₹1,540.49 after FY 17-18
repayable in quarterly / monthly installments,
Rate of Interest: 11.00% – 15.00%)
Term Loan – (Secured by specific charge on
1.15 2.85 1.02 1.70 2.56 1.40
vehicles)
(Terms of Repayment: ₹1.70 during F Y 2017-
18 in 12 monthly installments & ₹1.15 during
FY 2018-19 in 7-8 monthly installments , Rate
of Interest: 9.19% –9.30% p.a.)
Term Loan – (Secured by specific charge on
receivables created out of the proceeds of the 1,202.32 - - 1,677.52 - -
loan)
(Terms of Repayment: ₹ 1,677.52 repayable
during FY 2017-18 in quarterly / monthly
installments & ₹1,202.32 after FY 2017-18 in
quarterly / monthly installments , Rate of
Interest : 9.75% –16.00% p.a.)
(c) Loans repayable on demand
From banks
Overdraft against Deposit with Banks - - - 3.71 7.78 1.39
(Secured by a lien on Fixed Deposit with Banks)
Cash Credit - - - 29,832.40 23,985.74 34,479.36
(Secured by paripassu floating charge on current

assets, Receivables, Loans & advances and
personal guarantee of Promoter Directors)
(d) Short Term Loans
From Banks - - - 59,540.00 52,950.00 37,930.00
(Secured by paripassu floating charge on current

assets, book debts, Loans & advances and
personal guarantee of Promoter Directors)
Sub Total (1) 37,121.68 35,216.21 42,756.35 1,25,826.71 1,19,748.80 1,20,315.18
Page | A-62
Unsecured
(a) Debentures
11.5% Unsecured, Redeemable, Rated, Unlisted,
Subordinated, Taxable, Non-Convertible 100.00 - - - - -
Debentures
(Refer Note 3.9)
(b) Loans repayable on demand
From Banks - - - 750.00 - -
(c) Loans and advances from related parties
Loan from Directors and Relatives - - - 5,984.10 6,764.57 5,195.77
Subordinated Debt 0.05 0.26 84.41 0.21 84.14 209.23
(Refer Note 3.6)
(d) Other loans and advances
Subordinated Debt Listed (Refer Note 3.7 & 3.8) 3,661.81 3,108.05 2,229.04 - - -
Commercial Paper - - - 31,548.45 - -
Subordinated Debt 7,037.92 15,077.37 22,146.67 8,419.38 7,186.38 1,868.66
(Refer Note 3.6)

Due to customers (Fixed Deposits) (Refer Note
529.87 863.69 448.47 1,891.50 1,231.87 1,237.79
3.10)
Sub Total (2) 11,329.65 19,049.37 24,908.59 48,593.64 15,266.96 8,511.45
Total (1) + (2) 48,451.33 54,265.58 67,664.94 174,420.35 135,015.76 128,826.63
Less: Amount included under Current Liabilities

Current maturities of long term debt (Refer
- - - 45,656.76 50,568.27 50,934.06
Note.6.1)
Unpaid Matured Debentures (Refer Note.6.2) - - - 1,104.94 739.40 286.06
As per Balance Sheet 48,451.34 54,265.57 67,664.94 1,27,658.66 83,708.09 77,606.51
Long Term Borrowings 48,451.34 54,265.57 67,664.94
Short Term Borrowings 127,658.66 83,708.09 77,606.51
There is no continuing default as on the balance sheet date in repayment of loans and interest.
Page | A-63
3.2 Secured Redeemable Non-Convertible Debentures
The Company had privately placed Secured Redeemable Non-Convertible Debentures for a maturity period of 60-120 months with an outstanding amount of
₹25,190.08 million (FY 2015-16 : ₹40,908.85 millions & FY 2014-15: : ₹59,839.07 millions).
(₹in Millions)
Amount Amount Amount Redemption

Period from Interest Rate
Series Date of allotment
As at 31.03.2017 As at 31.03.2016 As at 31.03.2015 the date of %
allotment
CU 31.03.2014 15.00 20.00 57.50 120 months 10.50-12.50
CT 14.03.2014-31.03.2014 34.00 47.00 93.50 120 months 10.50-12.50
CS 27.02.2014-14.03.2014 47.00 57.00 152.50 120 months 10.50-12.50
CR 07.02.2014-27.02.2014 25.00 49.50 171.50 120 months 10.50-12.50
CQ 04.02.2014-07.02.2014 44.50 59.50 210.50 120 months 10.50-12.50
CP 20.01.2014-04.02.2014 84.00 92.00 188.00 120 months 10.50-12.50
CO 10.01.2014-20.01.2014 130.00 137.00 145.50 120 months 10.50-12.50
CN 03.01.2014-10.01.2014 87.50 109.00 142.00 120 months 10.50-12.50
CM 24.12.2013-03.01.2014 37.50 80.00 108.50 120 months 10.50-12.50
CL 05.12.2013-24.12.2013 41.50 64.00 123.50 120 months 10.50-12.50
CK 18.11.2013-05.12.2013 34.50 58.00 110.00 120 months 10.50-12.50
CJ 29.10.2013-18.11.2013 34.50 73.50 107.50 120 months 10.50-12.50
CI 09.10.2013-29.10.2013 39.50 47.00 108.50 120 months 10.50-12.50
CH 27.09.2013 - 09.10.2013 66.50 71.50 153.50 120 months 10.50-12.50
CG 06.09.2013 - 27.09.2013 28.00 38.50 59.50 120 months 10.50-12.50
CF 31.08.2013 - 06.09.2013 25.50 43.00 43.00 120 months 10.50-12.50
CE 12.08.2013 - 31.08.2013 36.00 62.00 74.50 120 months 10.50-12.50
CD 31.07.2013 - 10.08.2013 41.00 61.00 71.50 120 months 10.50-12.50
CC 08.07.2013 - 31.07.2013 46.00 51.50 63.00 120 months 10.50-12.50
CB 24.06.2013 - 07.07.2013 1,521.76 2,077.20 2,440.52 120 months 10.50-12.50
CA 18.04.2013 - 23.06.2013 2,907.82 4,145.54 4,795.06 120 months 10.50-12.50
BZ 01.03.2013 - 17.04.2013 2,835.20 3,766.67 5,003.34 120 months 10.50-12.50
BY 18.01.2013 - 28.02.2013 2,627.21 3,009.28 4,427.38 120 months 10.50-12.50
CZ 04.05.2016 415.00 - - 60 months 9.25-9.50
CY 03.02.2016 260.00 260.00 - 60 months 9.50-9.75
CX 03.11.2014 - 390.00 390.00 60 months 10.00-12.00
CW 08.05.2014 60.50 72.00 155.00 60 months 10.00-12.00
CV 24.04.2014 97.00 111.00 146.50 60 months 10.00-12.00
BX 26.11.2012 - 17.01.2013 2,430.07 2,755.17 4,130.00 60 months 10.50-12.50
BW 01.10.2012 - 25.11.2012 3,141.94 3,568.66 5,238.00 60 months 11.50-12.50
BV 17.08.2012 - 30.09.2012 1,919.00 2,411.08 3,892.40 60 months 11.50-12.50
BU 01.07.2012 - 16.08.2012 2,234.01 2,851.06 4,263.49 60 months 11.50-12.50
BT 21.05.2012 - 30.06.2012 1,509.72 1,893.74 2,769.98 60 months 11.50-12.50
BS 01.05.2012 - 20.05.2012 662.88 807.59 1,179.31 60 months 11.50-12.50
BR 01.03.2012 - 30.04.2012 1,333.89 2,562.96 3,261.20 60 months 11.50-12.50
BQ 23.01.2012 - 29.02.2012 154.86 1,928.35 2,219.82 60 months 11.50-12.50
BP 01.12.2011 - 22.01.2012 67.28 1,738.95 1,971.17 60 months 11.50-12.50
BO 19.09.2011 – 30.11.2011 41.73 1,602.40 1,844.86 60 months 11.00-12.00
BN 01.07.2011 – 18.09.2011 25.76 1,592.61 1,924.47 60 months 11.00-12.00
BM 01.04.2011 – 30.06.2011 12.70 1,530.98 1,906.27 60 months 11.00-12.00
BL 01.01.2011 - 31.03.2011 9.05 512.02 2,222.51 60 months 10.00-11.50
BK 01.10.2010 - 31.12.2010 5.32 54.64 1,657.03 60 months 9.50-11.50
BJ 01.07.2010 – 30.09.2010 5.34 19.82 1,047.85 60 months 9.50-11.00
BI 01.04.2010 - 30.06.2010 1.61 6.10 594.68 60 months 9.00-10.50
BH 01.01.2010 - 31.03.2010 2.08 5.62 126.04 60 months 9.00-10.50
BG 01.10.2009 - 31.12.2009 1.45 2.77 22.43 60 months 9.50-10.50
BF 01.07.2009 - 30.09.2009 1.83 2.01 8.28 60 months 10.50
BE 01.04.2009 - 30.06.2009 0.54 0.68 3.24 60 months 10.50-11.50
BD 01.01.2009 - 31.03.2009 2.86 3.03 4.15 60 months 11.00-12.00
BC 22.09.2008 - 31.12.2008 0.38 0.44 1.14 60 months 11.00-12.00
Page | A-64
BB 10.07.2008 - 21.09.2008 0.11 0.25 0.87 60 months 11.00-11.50
AZ 01.04.2008 - 02.07.2008 1.05 1.20 2.32 60 months 10.50-11.00
AY 01.01.2008 - 31.03.2008 0.07 0.10 0.35 60 months 10.50-11.00
AX 01.10.2007 - 31.12.2007 0.12 0.11 1.02 60 months 10.50-11.00
AW 01.07.2007 - 30.09.2007 0.29 0.31 0.51 60 months 10.50-11.00
AV 01.04.2007 - 30.06.2007 0.12 0.14 0.14 60 months 10.50-11.00
AE 15.07.2004 - 30.09.2004 0.03 0.03 0.03 90 months 10.83-12.00
AU 01.01.2007 - 31.03.2007 1.24 1.26 1.46 60 months 9.00-11.00
AT 13.08.2006 - 31.12.2006 0.20 0.82 0.96 60 months 9.00-9.50
AS 01.05.2006 - 12.08.2006 0.19 0.19 0.20 60 months 8.50-9.00
AR 15.06.2005 - 30.04.2006 0.11 0.44 0.46 60 months 8.00-8.50
AQ 01.04.2005 - 14.06.2005 0.03 0.37 0.37 60 months 8.00-8.50
AP 07.02.2005 - 14.06.2005 0.03 0.03 0.03 60 months 9.27-10.08
AO 07.02.2005 - 31.03.2005 0.04 0.04 0.04 60 months 8.00-8.50
AN 01.01.2005 - 06.02.2005 0.15 0.15 0.15 60 months 8.50-9.00
AI 01.10.2004 - 06.02.2005 0.01 0.01 0.01 60 months 10.20-12.00
AD 01.07.2004 - 14.11.2004 - 0.03 0.03 60 months 9.50
Total 25,190.08 40,908.85 59,839.07
3.3 Secured Redeemable Non-Convertible Debentures – Listed

The Company had privately placed Rated Secured Redeemable Non-Convertible Listed Debentures which matured and was redeemed during the year.
(₹ in Millions)

Period from
Series Date of allotment Interest Rate %
As at 31.03.2017 As at 31.03.2016 As at 31.03.2015 the date of
allotment
L4 12.01.2012 - 1,000.00 1,000.00 60 months 13.00
Total - 1,000.00 1,000.00
3.4 Secured Non Convertible Debentures – Public Issue
The outstanding amount of Secured Rated Non-Convertible Listed Debentures raised through Public Issue stood at ₹37,098.15 million (FY 2015-16:
₹35,403.32 million & FY 2014-15 : ₹29,655.55 millions)
(₹ in Millions)
Amount Amount Amount

Redemption Period from Rate of Interest
Series Date of allotment
As at 31.03.2017 As at 31.03.2016 As at 31.03.2015 the date of allotment (%)
PL 16 30.01.2017 13,000.00 - - 400 Days, 1.5, 2, 3, 5 years 8.25-9.25

PL 15 12.05.2016 4,764.00 - - 400 Days, 1.5, 2, 3, 5 years 8.75-9.75
PL 14 20.01.2016 3,652.78 4,154.84 - 400 Days, 2, 3, 5 years 9.00-10.00
PL 13 14.10.2015 3,945.92 4,640.53 - 400 Days, 2, 3, 5 years 9.25-10.25
PL 12 23.04.2015 2,266.79 2,710.85 - 400 Days, 2, 3, 5 years 9.75-10.75
PL 11 29.12.2014 2,039.48 3,033.95 3,613.46 400 Days, 2, 3, 5 years 10.25-11.25
PL 10 26.09.2014 2,336.74 3,216.42 3,673.46 400 Days, 2, 3, 5 years 10.25-11.50
PL 9 04.07.2014 2,345.26 3,793.10 4,297.45 400 Days, 2, 3, 5 years 10.50-11.75
PL 8 02.04.2014 13.01 1,553.62 1,785.82 400 Days, 2, 3, 5 years 10.50-11.75
PL 7 04.02.2014 37.84 2,458.54 3,969.92 400 Days, 2, 3, 5 years 11.00-12.25
PL 6 04.12.2013 39.23 1,568.29 2,462.78 400 Days, 2, 3, 5 years 11.00-12.25
PL 5 25.09.2013 51.76 1,533.53 2,547.82 400 Days, 2, 3, 5 years 11.00-12.55
PL 4 01.11.2012 926.18 926.18 1,114.75 2, 3, 5, 6 years 11.50-12.25
PL 3 18.04.2012 768.94 768.94 1,145.57 2, 3, 5, 5.5 years 13.00-13.43
Page | A-65
PL 2 18.01.2012 910.22 1,502.87 1,502.87 2, 3, 5, 5.5 years 13.00-13.43
PL 1 14.09.2011 - 3,541.66 3,541.66 2, 3, 5 years 11.75-12.25
Total 37,098.15 35,403.32 29,655.56
3.5 Secured Redeemable Non-Convertible Debentures
BIFPL privately placed Rated Secured Redeemable Non-Convertible Debentures with an outstanding amount of ₹400.00 million
Amount Amount Redemption Period

Date of allotment from the date of Rate of Interest (%)
As at 31.03.2017 As at 31.03.2016 allotment
30.03.2017 400.00 - 36 months 12.00
Total 400.00 -
3.6 Subordinated Debt
Subordinated Debt is subordinated to the claims of other creditors and qualifies as Tier II capital under the Non-Banking Financial Company -
Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. The outstanding amount of
privately placed subordinated debt stood at ₹15,457.56 million (FY 2015-16 : ₹22,348.16 million & FY 2014-15: ₹24,308.96 millions).
(₹ in Millions)

Rate of Interest
Series Date of allotment Period from the
(%)
As at 31.03.2017 As at 31.03.2016 As at 31.03.2015 date of allotment
XVII 09.05.2014 21.00 21.00 21.00 72 months 11.61
XVI 18.02.2014 - 31.03.2014 46.00 46.00 46.00 66 months 12.67
XV 22.12.2013 - 17.02.2014 98.50 98.50 98.50 66 months 12.67
XIV 18.09.2013 - 21.12.2013 298.00 298.00 298.00 66 months 12.67
XIII 08.07.2013 - 17.09.2013 98.00 98.00 98.00 66 months 12.67
XII 01.04.2013 - 07.07.2013 1,825.15 1,825.15 1,825.15 66 months 12.67
XI 01.10.2012 - 31.03.2013 4,651.42 4,651.42 4,651.42 66 months 12.67-13.39
X 01.04.2012 - 30.09.2012 3,548.43 3,548.46 3,548.45 66 months 12.67-13.39
IX 01.11.2011 - 31.03.2012 4,081.07 4,081.07 4,081.07 66 months 12.67-13.39
E 21.03.2005 - 65.94 65.94 144 months 15
VIII 01.07.2011 - 31.10.2011 686.46 2,343.85 2,343.85 66 months 12.67
VII 01.01.2011 - 07.02.2011 26.06 437.28 437.28 72 months 11.61
VII 01.04.2011 - 30.06.2011 30.25 1,270.32 1,270.32 66 months 12.67
VII 08.02.2011 - 31.03.2011 8.99 1,080.40 1,080.40 66 months 12.67
VI 01.07.2010 - 31.12.2010 29.60 1,912.71 1,912.71 72 months 11.61
D 03.04.2004 - 14.06 14.06 144 months 15
V 01.01.2010 - 30.06.2010 3.06 537.54 1,038.65 72 months 11.61
C 01.11.2003 - - 98.75 144 months 15
B 30.09.2003 - - 110.00 144 months 15
IV 17.08.2009 - 31.12.2009 2.14 11.20 759.31 72 months 11.61
IV 01.07.2009 - 16.08.2009 0.05 0.16 12.42 72 months 12.50
IV 01.07.2009 - 16.08.2009 2.18 4.08 263.62 69 months 12.12
III 15.12.2008 - 30.06.2009 0.23 0.53 140.12 72 months 12.50
III 15.12.2008 - 30.06.2009 0.95 2.28 90.22 69 months 12.12
II 18.08.2008 - 13.12.2008 - 0.21 3.73 72 months 11.61
Total 15,457.55 22,348.15 24,308.97
Page | A-66
3.7 Subordinated Debt – Public Issue
The outstanding amount of Unsecured, Rated, Redeemable Non-Convertible, Listed Subordinated Debt which qualifies as Tier II capital under
the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016 issued through public issue stood at Rs. 3,561.81 million (FY 2015-16: Rs. 3,008.05 million & FY 2014-15: Rs.2,129.04 million).
This amount is classified as long-term borrowings.
(₹in Millions)

Rate of Interest
(%)
PL16 30.01.2017 317.76 - - 8 Years 9.06

PL15 12.05.2016 236.00 - - 7.50 Years 9.67
PL 14 20.01.2016 230.39 230.39 - 7.25 Years 10.02
PL 13 14.10.2015 359.47 359.47 - 7 Years 10.41
PL 12 23.04.2015 289.15 289.15 - 6.75 Years 10.80
PL 11 29.12.2014 386.54 386.54 386.54 6.5 Years 11.23
PL 10 26.09.2014 304.36 304.36 304.36 6.5 Years 11.23
PL 9 04.07.2014 364.49 364.49 364.49 6.25 Years 11.70
PL 8 02.04.2014 193.46 193.46 193.46 6.25 Years 11.70
PL 7 04.02.2014 437.57 437.57 437.57 6 Years 12.25
PL 6 04.12.2013 232.88 232.88 232.88 6 Years 12.25
PL 5 25.09.2013 209.74 209.74 209.74 6 Years 12.25
Total 3,561.81 3,008.05 2,129.04
3.8 Subordinated Debt – Listed
The privately placed Unsecured, Rated, Redeemable Non-Convertible Listed Subordinated Debt which qualifies as Tier II capital under the
Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank)
Directions, 2016 stood at Rs. 100.00 million (FY 2015-16: Rs. 100.00 million & FY 2014-15: Rs. 100.00 million). This amount is classified as
long term borrowings.
(₹ in Millions)

Rate of Interest
(%)
IA 26.03.2013 100.00 100.00 100.00 10 Years 12.35
Total 100.00 100.00 100.00
Page | A-67
3.9 Unsecured Redeemable Non Convertible Debentures
BIFPL privately placed Rated Unsecured Redeemable Non-Convertible Debentures with an outstanding amount of Rs. 100.00 million
(₹ in Millions)

Rate of Interest
Date of allotment Period from the
(%)
31.03.2017 100.00 - - 74 months 11.50
Total 100.00 - -
3.10 Due to customers (Fixed Deposits)

(₹in Millions)
Amount Amount Amount

Redeemable from the Balance Sheet date Rate of Interest (%)
As at 31.03.2017 As at 31.03.2016 As at 31.03.2015
36-60 months 122.16 48.89 83.90 7.25-16.25
12-36 months 407.71 814.80 364.57 8.25-18.65
Up to 12 months 1,891.50 1,231.87 1,237.79 6.50-18.50
Total 2,421.37 2,095.56 1,686.26
4. Other Long-term Liabilities

(₹ in Millions)
Interest accrued but not due on long term borrowings 6,643.08 11,156.87 12,012.58
Security Deposit Received 76.61 111.42 65.52
Total 6,719.69 11,268.29 12,078.10
5. Long-term Provisions
(₹ in Millions)
Provision for Gratuity 13.65 7.86 12.28

Provision for Standard Assets (Refer Note 7.1)
- As per RBI Prudential Norms 14.17 - -
- As per NHB Prudential Norms 17.33 1.26 -
- General 51.90 - -
Total 97.05 9.12 12.28
6. Other Current Liabilities

(₹in Millions)
(a) Current maturities of long term debt (Refer Note 6.1) 45,656.76 50,568.27 50,934.06
(b) Interest accrued but not due on borrowings 12,521.03 9,901.18 6,136.03
(c) Interest accrued and due on borrowings 98.55 147.35 150.47
Page | A-68
(d) Unpaid matured debentures and interest accrued
1,594.61 954.31 397.99
thereon (Refer Note 6.2)
(e) Other payables
Statutory Payables 243.91 381.98 205.77
Unpaid Dividend 3.26 4.51 2.31
Interim Dividend Payable 2,396.85 - -
Corporate Dividend Tax Payable 487.94 - -
Others 2,044.49 234.06 18.46
Total 65,047.40 62,191.66 57,845.09
6.1. Current Maturities of Long Term debts

(₹ in Millions)
Secured
Secured Non-Convertible Debentures 19,195.61 25,917.31 41,898.04
(Secured by mortgage of immovable property and
paripassu floating charge on current assets, book debts
and Loans & advances)
Secured Non-Convertible Debentures - Listed 12,756.63 16,208.26 5,758.47
(Secured by mortgage of immovable property and
paripassu floating charge on current assets, book debts
and Loans & advances)
From Banks
Term loan (Secured by specific charge on Vehicles) 0.08 0.48 4.98
Term loan (Secured by promissory notes, loans, lease and
hire purchase receivables, Mortgage bond over loan
128.03 36.64 0.00
recoverable consist of business loan, corporate loan and
mortgage loan)
Securitisation Loans(Secured by lease and hire purchase
614.21 27.41 67.32
assets and receivables)
Term Loans (Secured by specific charge on receivables
1,255.29 - -
created out of the proceeds of the loan.)
Term Loans (Secured by paripassu floating charge on
96.53 - -
housing loan receivables, credit and current assets)
Term Loan (Secured by specific charge on vehicles) 1.70 2.56 1.40
Term Loans from NBFC (Secured by specific charge on
1,677.52 - -
receivables created out of the proceeds of the loan.)
Unsecured
Due to customers (Fixed Deposits) 1,891.50 1,231.87 1,237.79
Subordinated Debt 8,039.45 7,059.59 1,756.82
Subordinated Debt - From Related Parties 0.21 84.15 209.24
Total 45,656.76 50,568.27 50,934.06
6.2. Unpaid matured debentures and interest thereon

(₹ in Millions)
Unpaid Matured Debentures 1,104.94 739.40 286.06

Interest on Unpaid Matured Debentures 489.67 214.91 111.94
Total 1,594.61 954.31 398.00
Page | A-69
7. Short Term Provisions
(₹ in Millions)
Proposed Equity Dividend - - 795.93

Provision for Corporate Dividend Tax - - 159.14
Provision for Non-Performing Assets (Refer Note 7.1) 1,024.05 1,019.27 725.38
- As per RBI Prudential Norms 935.07 710.29 572.42
- As per NHB Prudential Norms 0.30 - -
- General 1,750.40 1,657.35 572.42
- Gold Price Fluctuation Risk 2,330.00 - -
Provision for Other Losses 3.16 0.51 -
Provision for Impairment Loss (Refer Note 7.1) 169.18 142.51 111.18
Provision for Income Tax (Net of Advance Tax and
567.50 1,751.00 162.72
TDS)
Provision for Employee Benefits
- Provision for Bonus 9.53 - -
- Provision for Gratuity 2.84 - -
Total 6,792.03 5,280.93 3,099.19
7.1 Movement of Provision for Standard and Non-Performing Assets and Impairment
(₹ in Millions)
Provision for Standard Assets

Standard Assets 271,572.42 237,079.35 228,969.14
Provision at the beginning of the year
- As per NHB Directions 2010 1.26 - -
- General 1,657.35 572.42 428.91
- Gold Price Fluctuation Risk - - -
Additional provision made / (Reversed) during the
year
- As per NHB Directions 2010 16.37 1.19 -
- General 109.87 1,084.93 143.51
Subsidiaries acquired during the year (General) 35.08 0.07 -
Provision at the close of the year
- General 1,802.30 1,657.35 572.42
- Gold Price Fluctuation Risk 2,330.00
5,099.17 2,368.90 1,144.84
Provision for Non-Performing Assets
Substandard Assets 4,973.37 6,668.31 4,884.57
Doubtful Assets 653.54 356.30 232.09
Total Non-Performing Assets 5,626.91 7,024.61 5,116.66
Provision at the beginning of the year 1,019.27 725.38 725.38
Additional provision made during the year - 293.89 -
Addition upon acquisition of subsidiary 4.78 - -
Provision at the close of the year 1,024.05 1,019.27 725.38
Provision for impairment
Provision at the beginning of the year 142.51 111.18 -
Additional provision made / Reversed during the year 26.67 31.33 111.18
Provision at the close of the year 169.18 142.51 111.18
Page | A-70
8. Fixed Assets (₹ in Millions)
Fixed Assets Gross Block Accumulated Depreciation Net Bock
As at As at As at As at As at As at As at As at As at
31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015
a Tangible Assets
Land 687.28 613.45 583.64 10.05 3.96 - 677.23 609.49 583.64
Buildings 773.32 702.24 692.61 271.32 222.74 168.81 502.00 479.50 523.80
Furniture and Fixtures 1,312.39 1,229.44 1,188.25 1,027.35 901.33 760.92 285.04 328.11 427.33
Plant and Equipment 2,058.66 1,895.37 1,774.95 1,428.05 1,184.21 897.04 630.61 711.16 877.91
Computer 945.17 848.19 819.22 839.06 775.61 713.18 106.11 72.58 106.04
Motor Car 111.18 103.39 101.44 73.12 65.15 61.26 38.06 38.24 40.18
Wind Mill 180.60 180.60 180.60 157.25 155.15 152.85 23.35 25.45 27.75
Total 6,068.60 5,572.68 5,340.71 3,806.20 3,308.15 2,754.06 2,262.40 2,264.53 2,586.65
Previous Year 5,572.68 5,340.71 5,073.22 3,308.15 2,754.06 1,888.61 2,264.53 2,586.65 3,184.61
b Intangible Assets
Computer software 193.96 99.81 89.82 94.04 48.05 29.90 99.92 51.76 59.92
Total 193.96 99.81 89.82 94.04 48.05 29.90 99.92 51.76 59.92
Previous Year 99.81 89.82 24.80 48.05 29.90 13.76 51.76 59.92 11.04
c Capital Work In Progress - - - - - - 99.78 107.16 63.32

Total - - - - - - 99.78 107.16 63.32
Previous Year - - - - - - 107.16 63.32 -
d Intangible assets under Development

Computer Software - - - - - - - - 5.32
Total - - - - - - - - 5.32
Previous Year - - - - - - - 5.32 -
Page | A-71
9. Non – Current Investments
Non – Current Investments in Equity instruments, Government Securities and Debentures:-

(₹ in Millions)
Trade Investments
(i) Investments in Equity Instruments
Unquoted:
Muthoot Forex Ltd 19.70 19.70 19.70
1,970,000 Equity shares of ₹10/- each fully paid up
Muthoot Securities Limited 27.00 27.00 27.00

2,700,000 Equity shares of Rs. 10/- each fully paid up
20,000 shares of Finance Houses Consortium Private Limited 0.09 0.09 0.09
67 shares of Credit Information Bureau of SL (CRIB) 0.13 0.13 0.14
(ii) Investment in Debentures
Quoted:
Yes Bank Limited 50.00 - -
50, 9.50% Unsecured Perpetual Subordinated Bond of
₹1,000,000.00 each fully paid up
Unquoted:
Belstar Investment & Finance Private Limited - 100.00 -
(FY 2015-16: 100, 15% Unsecured Subordinated Redeemable
Non-Convertible Debentures of ₹1,000,000.00 each fully paid
up. As at 31.03.2016 BIFPL was not a subsidiary.)
Other Investments
Quoted:
Union Bank of India 0.05 0.05 0.05
454 Equity shares of ₹10.00 each fully paid up
Unquoted:
2,000 shares of Siedles T.V Industries Limited - - 0.01
709 shares of Pure Beverages Company Limited - - 0.02
(ii) Investments in Government Securities
Quoted:
Gujarat State Development Loan 15.41 - -
50,000, 8.89% bonds of ₹100.00 each and 100,000, 8.94%
bonds of ₹100.00 each
Kerala State Development Loan 20.68 - -

100,000, 9.03% bonds of ₹100.00 each and 100,000, 9.72%
bonds of ₹100.00 each
Karnataka State Development Loan 5.20 - -

50,000, 8.90% bonds of ₹100.00 each
Page | A-72
Tamil Nadu State Development Loan 10.43 - -
100,000, 9.49% bonds of ₹100.00 each
Punjab State Development Loan 10.38 - -

100,000, 9.81% bonds of ₹100.00 each
Total Non-Current Investments 159.07 146.97 47.01
Investments – Category wise
Aggregate Amount of Quoted Investments 112.16 0.05 0.05

Aggregate Market Value of Quoted Investments 65.62 0.06 0.07
Aggregate Amount of Unquoted Investments 46.92 146.92 46.97
10. Long Term Loans and Advances

(₹ in Millions)
Loan Assets
Secured, considered good 785.42 244.55 401.31
Secured, Doubtful 138.89 7.80 20.86
Unsecured, considered good 1,403.01 502.05 149.28
Unsecured, Doubtful - 38.01 -
Lease Rentals Receivable and Hire Purchase
Secured considered good 285.95 221.26 337.71
Housing Loans
Standard Loans 4,333.22 306.82 -

a. Capital Advances 79.04 63.62 34.07
b. Security Deposits 890.81 944.98 950.18
c. Others 394.69 22.28 4.86
Total 8,365.98 2,389.13 1,905.76
11. Current Investments

(₹ in Millions)
Quoted:
702 shares of Commercial Bank of Ceylon PLC 0.04 4.50 5.87
50 shares of Chilaw Finance PLC 0.00 0.00 -
50 shares of Abans Finance PLC 0.00 0.00 -
666 shares of Alliance Finance Company PLC 0.02 0.02 -
50 shares of Associated Motor Finance Company PLC 0.01 0.01 -
Page | A-73
50 shares of Arpico Finance Company PLC 0.00 0.00 -
100 shares of Bimputh Finance PLC 0.00 0.00 -
50 shares of Capital Alliance Finance PLC 0.00 0.00 -
50 shares of Citizens Development Business Finance PLC 0.00 0.00 -
103 shares of Central Finance Company PLC 0.00 0.00 -
50 shares of Central Investments and Finance PLC 0.00 0.00 -
50 shares of Commercial Leasing & Finance PLC 0.00 0.00 -
50 shares of Commercial Credit & Finance PLC 0.00 0.00 -
50 shares of Softlogic Finance PLC 0.00 0.00 -
50 shares of Nation Lanka Finance PLC 0.00 0.00 -
50 shares of George Steuart Finance PLC 0.00 0.00 -
100 shares of LB Finance PLC 0.01 0.00 -
50 shares of Lanka Orix Leasing Company PLC 0.00 0.00 -
50 shares of Merchant Bank of Sri Lanka & Finance PLC 0.00 0.00 -
50 shares of Multi Finance PLC 0.00 0.00 -
50 shares of Peoples Leasing Company PLC 0.00 0.00 -
50 shares of People's Merchant Finance PLC 0.00 0.00 -
50 shares of Singer Finance Lanka PLC 0.00 0.00 -
50 shares of Sinhaputhra Finance PLC 0.00 0.00 -
50 shares of Swarnamahal Financial PLC 0.00 0.00 -
50 shares of The Finance Company PLC 0.00 0.00 -
50 shares of Vallibel Finance PLC 0.00 0.00 -
Nil shares of Asia Capital PLC 0.00 0.29 0.46
Nil shares of Overseas Realty (Ceylon) PLC - 0.91 0.96
Nil shares of National Development Bank PLC - 2.95 4.56
Nil shares of Sampath Bank PLC - 6.08 6.95
Nil shares of John Kheels Holding PLC - 3.23 4.00
Nil shares of Lanka IOC PLC - 3.07 4.00
Nil shares of Tokyo Cement Company PLC - - 0.35
Nil shares of Asiri Hospital Holdings PLC - - 4.66
(ii) Investments in Debentures
Quoted:
499,990 Debentures of Citizen Development Business Finance PLC 21.31 - -
Unquoted:
Debentures - 3.85 4.25
(iii) Investments in Mutual Funds
Quoted:
Investments in UTI Mutual Fund - 175.25 -
(FY 15-16:UTI-Liquid Fund – Cash Plan -institutional –Direct Plan –
Growth 71,0339.393 units)
HDFC Liquid Fund -Regular Plan-Dividend Daily Reinvest 294274.757
300.11 - -
units
Kotak Liquid Fund-Regular Plan-Daily Dividend-81794.3341 units 100.02 - -
ICICI Prudential Money Market Fund-Daily Dividend 1997791.844 units 200.04 - -
(iv) Investment in Reverse Repurchase Agreements against Treasury

184.69 143.68 119.25
Bills and Bonds
Grand Total 806.25 343.87 155.31
Page | A-74
12. Trade Receivables
(₹ in Millions)
Trade receivables outstanding for a period less than six months from
the date they are due for payment
Interest Receivable on Loan Assets 12,568.97 9,489.44 11,113.97
Interest Receivable on Loan Assets - 0.29 0.49
Receivables from Money Transfer business 117.12 158.80 173.29
Receivables from Auction Proceeds - 5,012.61 244.90
Commission receivable from Insurance companies 21.97 - -
Wind Mill income receivable 3.29 1.38 0.70
Others 41.30 6.54 11.00
Sub-Total 12,752.65 14,669.06 11,544.35
Trade receivables outstanding for a period exceeding six months

from the date they are due for payment

Wind Mill income receivable 16.66 10.12 5.62
Sub-Total 16.66 10.12 5.62
Grand Total 12,769.31 14,679.18 11,549.97
13. Cash and Bank Balances

(₹ in Millions)
I. Cash and Cash Equivalents

a. Cash on hand 1,647.76 1,479.96 2,473.38
b. Balances with banks
Current Accounts 11,893.88 5,523.12 14,904.07
Fixed Deposits (maturing within a period of 3 months) 207.47 110.33 100.00
II. Other Bank Balances
Fixed Deposits on which lien is marked 1.35 1.23 1.15
Other Deposit Balances (Ear-marked) 249.09 - -
Balance in other Escrow Accounts
Interim Dividend 2,396.85 - -
Unpaid Dividend Account 3.26 4.51 2.31
Unclaimed Interest and redemption proceeds of Non-
31.74 4.18 3.15
Convertible Debentures – Public issue
Fixed Deposits given as Security for borrowings 11.77 11.58 11.74
Fixed Deposits given as Security for Guarantees 5.59 5.14 4.55
Other Fixed Deposits - - 70.86
Total 16,448.76 7,140.05 17,571.21
Page | A-75
14. Short term loans and advances
(₹in Millions)
Loan Assets
Secured, Considered good 268,825.76 236,894.67 229,489.20
Secured, Doubtful 5,521.25 7,032.51 5,182.75
Unsecured, considered good 178.74 1,167.96 206.88
Unsecured, Doubtful 185.31 71.76 -
Lease Rentals Receivable and Hire Purchase

Secured, Considered good 256.10 482.95 212.55
Housing Loans
Standard Loans 75.14 8.06 -
Micro Finance Loans

Unsecured, Considered good
Short term maturities of receivables under financing activities 4,264.75 - -

Prepaid Expenses 43.21 42.61 39.14
Service tax Pre-Deposit 10.34 8.33 8.33
Others 501.85 406.86 291.13
Unsecured, considered doubtful 0.15 - 1.10
Total 279,923.23 246,198.12 235,519.12
15. Other current assets

(₹in Millions)
Interest receivable on Bank and other Deposits 48.09 0.73 0.08

Stock of Gold 6.10 6.10 23.12
Vehicle Stock - - 21.49
Real Estate Inventories - 15.06 19.15
Prepaid expenses 1.02 0.40 -
Service Income Receivable - 2.51 -
Others 4.86 2.58 -
Total 60.07 27.38 63.84
Page | A-76
ANNEXURE V: NOTES TO REFORMATTED CONSOLIDATED SUMMARY STATEMENT OF PROFIT
AND LOSS
16. Revenue from Operations

(₹in Millions)
For the Year ended For the Year ended For the Year ended
Particulars
31.03.2017 31.03.2016 31.03.2015
Interest Income on Retail and Other Loans 57,782.36 48,566.07 42,710.05
Income from Windmill 19.96 11.44 13.83
Interest on Housing loans 151.36 0.92 -
Commission Income 107.94 - -
Other Operating Income 1,046.39 621.41 521.55
Total 59,108.01 49,199.84 43,245.43
17. Other Income

(₹ in Millions)
For the Year ended For the Year ended Year ended
Particulars
31.03.2017 31.03.2016 31.03.2015
Interest Income – Others 205.09 145.66 98.27
Income from Investments 36.68 14.43 15.66
Interest on Income tax Refund - 0.52 -
Other non-operating income 34.13 47.16 6.18
Total 275.90 207.77 120.11
18. Employee Benefits Expense

(₹in Millions)
Particulars
31.03.2017 31.03.2016 31.03.2015
Salaries and incentives 7,019.19 5,885.07 5,657.02
Contribution to Provident and Other Funds 476.50 437.14 370.31
Expenses on Employees Stock Option Plan 36.19 115.30 194.90
Staff welfare expenses 110.43 100.73 110.95
Total 7,642.31 6,538.24 6,333.18
19. Finance Costs

(₹in Millions)
Particulars
31.03.2017 31.03.2016 31.03.2015
Interest Expenses 23,382.53 22,697.60 20,895.98
Other Borrowing Costs 305.87 158.63 226.66
Total 23,688.40 22,856.23 21,122.64
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20. Other Expenses
(₹ in Millions)
Particulars
31.03.2017 31.03.2016 31.03.2015
Postage, Telegram and Telephone 385.67 384.24 371.60
Printing and Stationery 140.78 148.35 160.94
Rent Paid 1,834.29 1,721.64 1,650.47
Travelling and Conveyance 215.58 191.38 212.09
Bank Charges 51.48 20.00 16.25
Electricity Charges 268.55 250.41 226.48
Repairs and Maintenance –Buildings 104.21 86.57 77.29
Repairs and Maintenance -Plant & Machinery 188.66 129.29 116.87
Repairs and Maintenance -Others 52.61 2.72 48.71
ATM Service Charges 47.11 76.40 38.76
Water Charges 6.20 5.48 5.36
Rates & Taxes and License Fee 81.33 68.76 54.09
Legal & Professional Charges 155.51 103.88 191.97
Insurance Charges 64.25 62.36 46.70
Newspaper and Periodicals 0.21 4.03 3.19
Business Promotion Expenses 213.50 159.64 140.57
Advertisement 534.14 628.83 650.75
Vehicle Hire & Maintenance 17.05 13.59 12.92
Internal Audit and Inspection Expenses 85.89 82.39 92.70
Remuneration to Auditors 3.46 2.98 2.36
Directors' Sitting Fee 1.08 0.38 0.42
Commission to Non-Executive Directors 3.50 3.00 1.77
Loss on Sale of Fixed Assets 2.23 0.11 0.13
Loss on Sale of Securities - 3.75 -
C S R Expenses 151.77 146.19 89.21
Miscellaneous Expenses 14.59 3.96 1.91
Total 4,623.65 4,300.33 4,213.51
21. Provisions and Write Offs

(₹in Millions)
Particulars
31.03.2017 31.03.2016 31.03.2015
Provision for Non-Performing Assets - 293.88 -
- General 109.87 1,084.93 143.51
Provision for Other Losses 2.60 0.51 -
Provision for Impairment 103.27 39.56 2.59
Bad Debt Written Off 165.44 107.20 191.64
Total 2,966.50 1,664.05 374.02
Page | A-78
ANNEXURE VI – REFORMATTED CONSOLIDATED SUMMARY STATEMENTS OF SIGNIFICANT
ACCOUNTING POLICIES
1. BACKGROUND
Muthoot Finance Ltd. was incorporated as a private limited Company on 14th March 1997 and was converted into a public limited Company on 18th
November 2008. The Company is promoted by Mr. M. G. George Muthoot, Mr. George Thomas Muthoot, Mr. George Jacob Muthoot and Mr. George
Alexander Muthoot collectively operating under the brand name of ‘The Muthoot Group’, which has diversified interests in the fields of Financial
Services, Healthcare, Education, Plantations, Real Estate, Foreign Exchange, Information Technology, Insurance Distribution, Hospitality etc. The
Company obtained permission from the Reserve Bank of India for carrying on the business of Non-Banking Financial Institutions on 13.11.2001 vide
Regn No. N 16.00167. The Company is presently classified as Systemically Important Non Deposit Taking NBFC (NBFC-ND-SI).
The Company made an Initial Public Offer of 51,500,000 Equity Shares of the face value Rs. 10/- each at a price of Rs. 175/- raising Rs.
9,012,500,000.00 during the month of April 2011. The equity shares of the Company are listed on National Stock Exchange of India Limited and BSE
Limited from 6th May 2011.
BASIS OF CONSOLIDATION
The Consolidated financial statements relate to Muthoot Finance Ltd (the Company) and its subsidiaries which constitute the 'Group' hereinafter.
Following subsidiary companies have been considered in the preparation of the consolidated financial statements:-
% of holding % of holding % of holding

Name of the Company and Country of Incorporation Relationship with the company as at March as at March as at March
31, 2017 31, 2016 31, 2015
Asia Asset Finance PLC (Sri Lanka) Subsidiary Company 60.00 59.70 51.00
Muthoot Homefin (India) Limited (India) Subsidiary Company 88.27 79.00 -
Subsidiary Company 64.60 - -
(India)
Wholly owned subsidiary
Muthoot Insurance Brokers Private Limited (India) 100.00 - -
Company
2. SIGNIFICANT ACCOUNTING POLICIES
(i) BASIS FOR PRESENTATION OF FINANCIAL STATEMENTS
The consolidated financial statements of the Company along with its subsidiaries have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956
("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting
policies adopted in the preparation of the financial statements are consistent with those followed by the Company in the previous year. The Company
follows prudential norms for income recognition, asset classification and provisioning as prescribed by Reserve Bank of India (RBI) vide Non-Banking
Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. MHIL
follows prudential norms prescribed by the National Housing Bank, the regulator for Housing Finance Companies. BIFPL follows prudential norms for
asset classification and provisioning as prescribed by RBI for Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) vide Non-
Banking Financial Company – Micro Finance Institutions ((Reserve Bank) Directions, 2011.
(ii) PRINCIPLES OF CONSOLIDATION
The consolidated financial statements have been prepared on the following basis:
(a) The financial statement of the subsidiary companies used in the consolidation are drawn upto the same reporting date as that of the Company i.e.,
Year ended March 31, 2017.
(b) The financial statements of the Company and its subsidiaries have been consolidated in accordance with the principles and procedures for the
preparation and presentation of consolidated financial statements as laid down under Accounting Standard – 21 ' Consolidated Financial Statements',
on a line-by-line basis by adding together the like items of assets, liabilities, income and expenses, after eliminating intra-group balances, intra group
transactions and resulting unrealized profits/losses, unless cost cannot be recovered.
(c) Consolidated financial statements are prepared using uniform accounting policies except as stated in (iv), (vi), (viii), (x), (xv) of this Schedule, the
adjustments arising out of the same are not considered material.
(d) Minority Interest in the net assets of the consolidated subsidiaries consist of the amount of equity attributable to the minority shareholders at the
date on which investments in the subsidiary companies were made and further movements in their share in the equity, subsequent to the dates of
investment. Net profit / loss for the year of the subsidiaries attributable to minority interest is identified and adjusted against the profit after tax of the
Group in order to arrive at the income attributable to shareholders of the Company. Minority Interest’s share of net assets of subsidiaries is identified
and presented in the consolidated balance sheet separate from liabilities and the equity of the Company’s shareholders.
(e) The excess of cost to the Company of its investments in the subsidiary companies over its share of equity of the subsidiary companies, at the dates
on which the investments in the subsidiary companies were made, is recognised as ‘Goodwill’ being an asset in the consolidated financial statements
and is tested for impairment on annual basis. Alternatively, where the share of equity in the subsidiary companies as on the date of investment is in
Page | A-79
excess of cost of investments of the Company, it is recognised as ‘Capital Reserve’ and shown under the head ‘Reserves & Surplus’, in the consolidated
financial statements.
(f) Goodwill arising on consolidation is not amortised but tested for impairment.
(g) In respect of the foreign subsidiary, its financial statements are converted into Indian currency as per accounting standard (AS 11) “The effect of
changes in Foreign Exchange Rates”.
(iii) USE OF ESTIMATES
The preparation of the financial statements requires use of estimates and assumptions that affect the reported amount of assets and liabilities as at the
Balance Sheet date, reported amount of income and expenses during the reporting period and disclosure of contingent liabilities as at that date. The
estimates and assumptions used in these financial statements are based upon the management evaluation of the relevant facts and circumstances as of
the date of the financial statements. Management believes that these estimates and assumptions used are prudent and reasonable. Future results may
vary from these estimates. Any revision to accounting estimates is recognized in current and future periods.
(iv) REVENUE RECOGNITION
Revenues are recognized and expenses are accounted on accrual basis with necessary provisions for all known liabilities and losses. Revenue is
recognized to the extent it is realizable wherever there is uncertainty in the ultimate collection. Income from Non-Performing Assets is recognized only
when it is realized. Income and expense under bilateral assignment of receivables accrue over the life of the related receivables assigned. Interest income
and expenses on bilateral assignment of receivables are accounted on gross basis. Interest income on deposits is recognized on time proportionate basis.
In respect of its subsidiary Asia Asset Finance PLC (Sri Lanka), for all financial instruments interest income or expense is recorded using Effective
Interest Rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial
instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability. The calculation takes into account all
contractual terms of the financial instrument and includes any fees or incremental costs that are directly attributable to the instrument and are an integral
part of the EIR, but not future impairment loss. The carrying amount of the financial asset or liability is adjusted if the subsidiary revises its estimates
of payments or receipts. The adjusted carrying amount is calculated based on the original EIR and the change in carrying amount is recorded as "Interest
Income" for financial assets and "Interest Expense" for financial liabilities.
In respect of its subsidiary, Muthoot Homefin (India) Limited, interest on standard assets is recognised on accrual basis and on non-performing assets
on realisation basis as per the guidelines prescribed by the National Housing Bank. Processing fees and documentation charges are recognised on
disbursal of loans.
In respect of its subsidiary, Belstar Investment and Finance Private Limited, Interest charges on loans given to borrowers are recognized on reducing
balance method. Profit on securitization of loan portfolio through bankruptcy remote Special Purpose Vehicle (SPV) is recognized over the residual life
of the securitization transaction. Profit on sale of loan assets through direct assignment, without any recourse obligation or otherwise is recognised over
the residual life of the loan. In respect of loans that have become Non Performing Asset, interest is recognised only to the extent collected.
In respect of its subsidiary, Muthoot Insurance Brokers Private Limited (India), Revenue is recognized and expenses are accounted on accrual basis
with necessary provision for all known liabilities and losses.
(v) EMPLOYEE BENEFITS
Short Term Employee Benefits:
Short Term Employee Benefits for services rendered by employees are recognized during the period when the services are rendered.
Post employment benefits:
Provident Fund
All eligible employees of the Group are entitled to receive benefits under the provident fund, a defined contribution plan in which both the employee
and the group contribute monthly at a stipulated percentage of the covered employee’s salary. Contributions are charged to Statement of Profit & Loss
at actuals. The Group has no liability for future provident fund benefits other than its stipulated contribution during the year. Contributions of the
Company are made to Employees Provident Fund Organization in respect of Provident Fund, Pension Fund and Employees Deposit Linked Insurance
Scheme at the prescribed rates. In respect of its subsidiary AAF, Contributions to the extent of 12% and 3% of gross emoluments of employees are
made to Employees Provident Fund and Employees Trust Fund respectively.
Gratuity
The group provides for gratuity covering eligible employees under which a lump sum payment is made to vested employees at retirement, death,
incapacitation or termination of employment, of an amount reckoned on the respective employee's salary and his tenor of employment with the group.
The group accounts for its liability for future gratuity benefits based on actuarial valuation determined at each Balance Sheet date by an Independent
Page | A-80
Actuary using Projected Unit Credit Method. The group recognizes the net obligation of the gratuity plan in the Balance Sheet as an asset or liability,
respectively in accordance with Accounting Standard 15, 'Employee Benefits'. Actuarial gains and losses arising from experience adjustments and
changes in actuarial assumptions are recognised in the Statement of Profit and Loss in the period in which they arise. The Holding Company makes
annual contribution to a Gratuity Fund administered by Trustees and separate schemes managed by Kotak Mahindra Old Mutual Life Insurance Limited
and ICICI Prudential Life Insurance Company Limited. In respect of its subsidiary BIFPL, contribution to gratuity fund is made through Life Insurance
Corporation of India group gratuity fund. In respect of the other subsidiaries gratuity liability is not funded.
c) Employee share based payments:
Stock options granted to the employees of the Company under the stock option scheme established are accounted as per the accounting treatment
prescribed by the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme ) Guidelines, 1999 / SEBI (Share Based Employee
Benefits) Regulations , 2014 issued by Securities Exchange Board of India.The Company follows the intrinsic value method of accounting for the
options and accordingly, the excess of market value of the stock options as on the date of grant over the exercise price of the options, if any, is recognized
as deferred employee compensation cost and is charged to the Statement of Profit and Loss on graded vesting basis over the vesting period of the
options.
(vi) FIXED ASSETS
Fixed assets are stated at historical cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset
to its working condition for its intended use.
In respect of the Company and its subsidiaries- Muthoot Homefin (India) Limited and Muthoot Insurance Brokers Private Limited, depreciation is
charged at the rates derived based on the useful lives of the assets as specified in Schedule II of the Companies Act, 2013 on Written Down Value
method. In respect of Belstar Investment and Finance Private Limited depreciation is charged using Straight Line method over the estimated useful life
of each asset as determined by the management. The useful life estimates specified in Schedule II of the Companies Act, 2013 are generally adhered to
except in respect of asset classes where, based on technical evaluation, a different estimate of useful life is considered suitable. All fixed assets costing
individually upto ₹5,000/- are fully depreciated by the Company and its subsidiaries incorporated in India in the year of its capitalisation.
In respect of its foreign subsidiary- Asia Asset Finance PLC, the estimated useful life is arrived at based on management's estimate of the period for
which it intends to derive future economic benefits from the use of the asset. The assets are depreciated on Straight Line Method on the estimated useful
lives so arrived at.
(vii) FOREIGN EXCHANGE TRANSACTIONS
Foreign currency transactions are recorded, on initial recognition, by applying to the foreign currency amount the exchange rate at the date of the
transaction. Foreign currency monetary assets and liabilities are reported using the exchange rate as on the Balance Sheet date. Non-monetary items,
which are carried in terms of historical cost denominated in foreign currency, are reported using the exchange rate at the date of the transaction.
Exchange differences arising on the settlement of monetary items are recognized as income or as expenses in the period in which they arise.
(viii) INTANGIBLE ASSETS
Intangible Assets are amortized over their expected useful life. It is stated at cost, net of amortization. The Company amortizes Computer Software over
a period of five years on straight line method. In respect of its subsidiary Asia Asset Finance PLC, Computer Software is amortized over a period of
eight years on straight line method.
(ix) TAXES ON INCOME
Income Tax expenses comprises of current tax and deferred tax (asset or liability). Current tax is the amount of tax payable on the taxable income for
the year determined in accordance with the relevant Income Tax statutes. Deferred tax is recognized, on timing differences, being the difference
between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred
tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax
assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be
available to realise the same. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date. Deferred
tax assets and deferred tax liabilities are offset wherever the company has a legally enforceable right to set off current tax assets against current tax
liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.
(x) INVESTMENTS
Investments intended to be held for not more than one year are classified as current investments. All other investments are classified as non-current
investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Non-Current investments are
carried at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of the investments.
The Group, in respect of the foreign subsidiary, has considered Financial Assets-Held for Trading, Investments in Repurchase agreements against
treasury bills and bonds and Investments in Debentures and Fixed Deposits as current investments. Financial Assets under available for sale category
is treated under non-current investments. Financial assets held for trading are recorded in the Balance Sheet at fair value. Investments in Repurchase
agreements against treasury bills and bonds and Investments in Debentures and Fixed Deposits are measured at amortized cost using Effective Interest
Rate less provision for impairment. After initial measurement, available-for-sale financial investments are subsequently measured at fair value with
unrealised gains or losses recognised as other comprehensive income in the available-for-sale reserve until the investment is derecognised, after which,
the cumulative gain or loss is recognised in the statement of comprehensive income in finance costs and removed from the available-for-sale reserve.
Page | A-81
(xi) IMPAIRMENT OF ASSETS
The carrying amounts of assets are reviewed at each balance sheet date to ascertain impairment based on internal / external factors. An impairment loss
is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the net selling price of the
assets or their value in use. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A
previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is
not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.
(xii) CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise of cash at bank, cash in hand and bank deposits having maturity of 3 months or less.
(xiii) PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
Provisions are recognized only when the Group has present, legal, or constructive obligations as a result of past events, for which it is probable that an
outflow of economic benefit will be required to settle the transaction and a reliable estimate can be made for the amount of the obligation.
Contingent liability is disclosed for (i) possible obligations which will be confirmed only by future events not wholly within the control of the Group
or (ii) present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a
reliable estimate of the amount of the obligation cannot be made.
Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.
(xiv) DEBENTURE REDEMPTION RESERVE
In terms of Section 71 of the Companies Act, 2013 read with Rule 18 (7) of Companies (Share Capital and Debentures) Rules 2014, the Company has
created Debenture Redemption Reserve in respect of Secured Redeemable Non-Convertible Debentures and Unsecured Redeemable Non-Convertible
Debentures issued through public issue as per SEBI (Issue and Listing of Debt Securities) Regulations, 2008. No Debenture Redemption Reserve is to
be created for privately placed debentures of Non-Banking Finance Companies. Other subsidiary companies except Belstar Investment and Finance
Private Limited have no outstanding amount of debentures.
(xv) PROVISION FOR STANDARD ASSETS AND NON-PERFORMING ASSETS
Company makes provision for standard assets and non-performing assets as per Non-Banking Financial Company - Systemically Important Non-
Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. Provision for standard assets in excess of the prudential norms,
as estimated by the management, is categorised under Provision for Standard Assets, as General provisions and/or as Gold Price Fluctuation Risk
provisions.
In respect of its Subsidiary Asia Asset Finance PLC, financial assets carried at amortized cost such as lease, hire purchase and loans and advances are
assessed for objective evidence of impairment as individually significant or collectively, if not individually significant, as on the date of Balance Sheet.
If impairment loss has been incurred, the amount of loss is measured as the difference between the assets carrying amount and the present value of
estimated future cash flows and is recognised as Provision for Impairment through Statement of Profit and Loss.
In respect of its Subsidiary, Muthoot Homefin (India) Limited, provision has been made on standard as well as on non-performing housing loans as per
the Prudential Norms prescribed by the National Housing Bank.
In respect of its subsidiary Belstar Investment and Finance Private Limited, norms as prescribed by RBI for the classification and provisioning of assets
have been followed.
(xvi) LEASES
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as operating leases.
Where the Group is the Lessor:

Assets given on operating leases are included in fixed assets. Lease income is recognized in the Statement of Profit and Loss on a straight- line basis
over the lease term. Costs, including depreciation are recognized as an expense in the Statement of Profit and Loss. Initial direct costs such as legal
costs, brokerage costs, etc. are recognized immediately in the Statement of Profit and Loss.
Where the Group is the lessee:

Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.
(xvii) SEGMENT REPORTING
Identification of segments:
a) The Group’s operating businesses are organized and managed separately according to the nature of services provided, with each segment representing
a strategic business unit that offers different products and serves different markets. Based on the operation, the Group has identified primary business
Page | A-82
segments – Financing, Power Generation and Insurance broking and based on the geography of operation, the Group has identified secondary segments
- Within India and Outside India.
b) The segment revenues, results, assets and liabilities include the respective amounts identifiable to each of the segment and amounts allocated on a
reasonable basis.
Unallocated items:
Unallocated items include income, expenses, assets and liabilities which are not allocated to any reportable business segment.
Segment Policies:
The Group prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements
of the Group as a whole.
(xviii) CURRENT/NON-CURRENT CLASSIFICATION OF ASSETS/ LIABILITIES

The Group has classified all its assets / liabilities into current / non-current portion based on the time frame of 12 months from the date of financial
statements. Accordingly, assets/liabilities expected to be realised /settled within 12 months from the date of financial statements are classified as current
and the rest of assets/ liabilities are classified as non-current.
ANNEXURE-VII: DETAILS OF RATES OF DIVIDEND

(₹in Millions)
Face Value As at March 31, As at March 31, As at March 31,

Particulars
(₹/ Share) 2017 2016 2015
Class of Shares
Equity Share Capital 10.00 3,994.76 3,990.02 3,979.66
Dividend (₹ in Millions)
As at March 31, As at March 31, As at March 31,

Particulars
2017 2016 2015
- Rate on the face value 60% 60% 60%
- Amount 2,396.85 2,393.26 2,409.54
Dividend Tax 487.95 486.59 433.37
Note:
The amount paid as dividends in the past are not necessarily indicative of the Company’s dividend policy in the future.
ANNEXURE VIII: STATEMENT OF CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT
NOT PROVIDED FOR) :-
(₹in Millions)
(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debt
i) Service Tax demand for the period 2003-2008, pending in appeal with
49.92 49.92 49.92
CESTAT, Bangalore (Net of amount already remitted).
Page | A-83
Commissioner of Central Excise, Customs and Service Tax, Kochi has raised
a demand of ₹52.01 million as Service tax liability and penalty. During the
course of the proceedings, Company paid ₹ 2.09 million. The Appellate
Authority admitted the appeal preferred by the company and granted stay of
recovery, on predeposit of ₹ 8.30 million.. Pending disposal of appeal, no
ii) Service Tax demand for the period from 2007-08 to 2011-12 as per Order
No.COC-EXCUS-000-COM-035-14-15 DT.19.12.2014, served on 4,895.88 4,895.88 4,895.88
30.12.2014, pending in appeal with CESTAT, Bangalore.
Commissioner of Central Excise, Customs and Service Tax, Kochi, as per

order mentioned above, has raised a demand of ₹1,531.46 million as service
tax payable on securitisation transactions with banks for the period from 2007
to 2012, along with interest U/s.75, Penalty U/s.76, Penalty U/s.77 and
Penalty U/s.78 (Total liability including tax, interest and penalty under
various sections if confirmed is estimated approximately at ₹4,895.88 million
till date of demand). Pending disposal of appeal , no provision has been made
by the company during the year.
iii) Service Tax demand for the financial year 2013-14 as per Order
No.03/2015-ST DT.20.01.2015, served on 23.01.2015, pending in appeal 0.79 0.79 0.79
before CESTAT, Bangalore.
Deputy Commissioner of Central Excise & Customs, & Service Tax, Kochi,
as per order mentioned above, has raised a demand of ₹0.79 million
(including penalty U/s 77 (2) and 78) as service tax payable, on foreign
payments during financial year 2013-14. Appeal filed before Commissioner
(Appeals), Kochi rejected. Pending disposal of appeal filed before CESTAT,
Bangalore, no provision has been made by the company during the year.
iv) Service Tax demand for the period 2010-2011 to 2012-13 as per Order
44.57 44.57 -
No.04-15-16 dated 11.05.2015, pending in appeal with CESTAT, Bangalore.
Commissioner of Central Excise, Customs & Service Tax, Kochi, as per

order mentioned above has raised a demand of ₹26.00 million along with
penalty U/s 76 and 78, as service tax payable, on money transfer commission
received during financial years 2010-11 to 2012-13. Total liability of tax and
penalty if confirmed is estimated at ₹44.57 million. Pending disposal of the
appeal, no provision has been made by the company during the year.
v) Service Tax demand for the period 2008-09 to 2010-2011 as per Order
2.16 2.16 -
No.32/2015 dated 30.04.2015 pending in appeal with CESTAT, Bangalore.
Joint Commissioner of Central Excise, Customs & Service Tax, Kochi, as

per order mentioned above has raised a demand of ₹2.16 million (including
penalty under Rule 15 and Section 78) as service tax payable, stating that
some CENVAT credit was wrongly availed during the period 2008-09 to
2010-11. Appeal filed by the company before Commissioner (Appeals),
Kochi has been rejected. Pending disposal of appeal filed before CESTAT,
Bangalore against the above order, no provision has been made by the
company during the year.
vi) Service Tax demand relating to foreign payments for the period 2007-08
to 2012-2013 as per consolidated Order Nos.70 to 72/2016/ST dated
5.36 5.36 -
18.03.2016 pending in appeal with Commissioner of Central Excise
(Appeals), Kochi.
Joint Commissioner of Central Excise, Customs & Service Tax, Kochi, as

per order mentioned above has raised a demand of ₹5.36 million including
tax and penalty relating to service tax on marketing expenses reimbursed
abroad. Pending disposal of the appeal, no provision has been made by the
company during the year.
Page | A-84
vii) Service Tax demand relating to money transfer commission received for
the period 2013-14 as per Order Nos.85/2015-16/ST dated 18.02.2016 11.04 11.04 -
pending in Writ Petition before the High Court of Kerala.
Commissioner of Central Excise, Customs & Service Tax, Kochi, as per

order mentioned above has raised a demand of ₹11.04 million including tax
and penalty, by disposing SCN.26/2015 relating to service tax on money
transfer income for the period 2013-14. Pending disposal of the Writ Petition,
no provision has been made by the company during the year.
viii) Service Tax demand relating to money transfer commission received for
the period April to September 2014 as per Order Nos.13/2017 STdated 6.81 - -
27.01.2017 pending in appeal before the Commissioner (Appeals), Kochi.
The Additional Commissioner of Central Excise, Customs & Service Tax,

Kochi, as per order mentioned above has raised a demand of ₹6.18 million
along with penalties U/s.77(2) and U/s.76 and interest u/s.75 relating to
service tax on money transfer income for the period April to September 2014.
Pending disposal of appeal before the Commissioner (Appeals), Kochi; no
ix) Income tax demand for the Assessment Year (A.Y.) 2012-13, pending
rectification petition and in appeal with Commissioner of Income Tax 27.12 27.12 27.12
(Appeals)-II, Kochi.
The demand outstanding as per Intimation U/s.143(1) was ₹5.10 million.

Additional Commissioner of Income Tax, Corp. Range -1, Kochi issued an
Order U/s.143(3) dated 02.03.2015 superseding the earlier order by
demanding tax of ₹29.23 million. Out of the above, the company remitted
₹2.11 million and the balance outstanding is ₹27.12 million. Appeal filed
with CIT (A)-II, Kochi and rectification application with Addl. CIT are
pending for disposal. Pending disposal no provision has been made by the
company for the year.
x) Income Tax demand for Assessment Year 2010-11, pending in appeal with
14.56 14.56 14.56
Income tax Appellate Tribunal, Kochi.
Additional Commissioner of Income Tax, Range 1, Kochi has passed an

order demanding ₹36.38 million towards income tax due for the Assessment
Year 2010-11 U/s.143(3). The Company has remitted ₹21.82 million and the
balance demand outstanding as on 31.03.2017 is ₹14.56 million. CIT (A),
Kochi has partly allowed the appeal, but the rectification order is pending.
Company has filed appeal with ITAT, Kochi. Pending rectification order and
appeal with ITAT, Kochi, no provision has been made by the company during
the year.
xi) Draft order on proposed action U/s.13 of Prevention of Money

Laundering Act, 2002 pending in appeal with Appellate Tribunal under 26.97 26.97 26.97
Prevention of Money Laundering Act, 2002.
xii) Disputed claims against the company under litigation not acknowledged
88.80 53.75 20.28
as debts
xiii) Guarantees - Counter Guarantees Provided to Banks 228.69 199.94 165.19
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital account
450.00 44.45 31.66
and not provided for.
Loan commitments on account of partly disbursed loans 360.07 15.93 -
Uncalled liability on shares and other investments partly paid 5.46 - -
Promissory notes provided to Banks and other parties. 500.00 - -
Page | A-85
ANNEXURE IXA: DETAILS OF THE LIST OF RELATED PARTIES AND NATURE OF RELATIONSHIPS
Names of Related Parties with whom transactions have taken place:-
Category Name of the Related Party

Key Management Personnel 1. M. G. George Muthoot
2. George Thomas Muthoot
3. George Jacob Muthoot
4. George Alexander Muthoot
5. Alexander M. George s/o M. G. George Muthoot
Relatives of Key Management Personnel 1. Sara George w/o M. G. George Muthoot
2. Susan Thomas w/o George Thomas Muthoot
3. Elizabeth Jacob w/o George Jacob Muthoot
4. Anna Alexander w/o George Alexander Muthoot
5. George M. George s/o M. G. George Muthoot
6. George M. Jacob s/o George Jacob Muthoot
7. Reshma Susan Jacob d/o George Jacob Muthoot
8. George Alexander (Jr.) s/o George Alexander Muthoot
9. Eapen Alexander s/o George Alexander Muthoot
10. Anna Thomas d/o George Thomas Muthoot
11. Valsa Kurien w/o George Kurien
Entities over which Key Management Personnel and their relatives are 1. Muthoot Vehicle & Assets Finance Limited
able to exercise significant influence 2. Muthoot Leisure and Hospitality Services Private Limited
3. MGM Muthoot Medical Centre Private Limited
4. Muthoot Marketing Services Private Limited
5. Muthoot Broadcasting Private Limited
6. Muthoot Forex Limited
7. Emgee Board and Paper Mills Private Limited
8. Muthoot Health Care Private Limited
9. Muthoot Precious Metals Corporation
10. GMG Associates
11. Muthoot Commodities Limited
12. Emgee Muthoot Benefit Funds (India) Limited
14. Muthoot Investment Advisory Services Private Limited
17. Muthoot Housing & Infrastructure
18. Muthoot Properties & Investments
19. Venus Diagnostics Limited
20. Muthoot Systems & Technologies Private Limited
21. Muthoot Infotech Private Limited
22. Muthoot Anchor House Hotels Private Limited
23. Marari Beach Resorts Private Limited
24. Muthoot M George Foundation
Page | A-86
ANNEXURE IXB: TRANSACTIONS WITH RELATED PARTIES
(₹ in Millions)
Entities over which Key Management Personnel

Key Management Personnel Relatives of Key Management Personnel and their relatives are able to exercise significant
Nature of transaction influence
31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015

Purchase of Travel Tickets for Company
- - - - - - 4.52 5.42 8.09
Executives/Directors/Customers
Travel Arrangements for Company
- - - - - - 0.96 8.60 0.82
Executives/Customers
Accommodation facilities for Company
- - - - - - 0.55 0.46 1.24
Executives/Clients/Customers
Complementary Medical Health Check Ups
- - - - - - - 0.01 0.06
for Customers/ Employees
Brokerage paid for NCD Public Issue - - - - - - 5.54 6.50 13.34
Business Promotion Expenses - - - - - - 9.77 12.96 17.57
CSR Expenses - - - - - - 144.25 131.64 89.11
Foreign Currency purchased for travel - - - - - - 0.54 0.98 0.07
Interest paid on loans/subordinated debts 326.93 266.92 313.93 373.19 313.72 259.38 - - -
Interest paid on Secured NCD 0.04 0.04 0.03 0.59 0.60 0.66 - 1.19 5.09
Interest paid on Secured NCD - Listed 0.18 0.30 0.29 1.43 1.57 2.15 14.10 8.53 7.18
Directors Remuneration 358.00 195.60 192.49 3.53 2.40 3.04 - - -
Rent paid 3.89 3.52 3.52 0.79 0.69 0.69 5.00 4.48 4.35
Dividend paid - 1,500.41 937.75 - 881.98 551.24 - - -
Interim Dividend declared 1,105.30 - - 661.48 - - - - -
Rent received - - - - - - 1.26 0.41 0.48
Dividend received - - - - - - - 4.31 -
Commission received on Money Transfer
- - - - - - 79.54 61.55 24.40
business
Service Charges Collected - - - - - - 15.07 4.82 4.69
Purchase of Shares of Muthoot Insurance
120.00 - - 80.00 - - - - -
Brokers Private Limited
Purchase of Securities - - - - - - 81.44 - -
Loans accepted 1,853.55 3,482.49 1,901.79 537.98 2,170.94 1,105.18 - - -
Loans repaid 2,319.29 2,977.76 1,531.52 852.72 1,106.88 333.37 - - -
Subordinated debts repaid 64.65 162.14 114.96 19.50 47.10 - - - -

Purchase of Secured NCD - 0.39 - - 0.23 - - - 64.30
Redemption of Secured NCD - 0.39 0.23 0.23 0.23 0.95 - 20.00 51.58
Purchase of Secured NCD – Listed 30.00 - - 230.64 - - 321.14 - -
Redemption of Secured NCD - Listed 1.05 - 0.09 9.03 - 3.59 203.48 40.28 21.83
Purchase of Fixed Assets - - - - - - - - 1.00

Loans availed by the Company for which
86,350.00 82,250.00 104,590.00 - - 16,000.00 - - -
guarantee is provided by related parties
Page | A-87
Net Amount Receivable / (Due) as at the year end: (₹ in Millions)
Entities over which Key Management Personnel

Key Management Personnel Relatives of Key Management Personnel and their relatives are able to exercise significant
Particulars influence
31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015

Investments in Equity Shares - - - - - - 46.70 46.70 46.70
Rent Deposit 1.77 1.77 1.77 0.30 0.30 0.30 1.47 1.47 1.47
Trade Receivable - - - - - - 72.81 69.56 -
Secured NCD (0.41) (0.41) (0.37) (4.63) (4.86) (4.63) - - (20.00)
Secured NCD - Listed (30.00) (1.05) (3.49) (231.89) (10.28) (24.14) (253.89) (136.23) (84.78)
Loans & Subordinated Debts (2,707.55) (3,237.93) (2,895.33) (3,276.81) (3,611.05) (2,594.08) - - -
Security Deposit - - - - - - (40.00) (40.00) (40.00)
Directors Remuneration payable (160.00) - - - - - - - -
Interest payable on Loan from Directors &
- - - - (1.36) (1.36) - - -
Relatives
Interest payable on Secured NCD (0.02) (0.01) (0.05) (0.06) (0.56) (0.58) - - -
Interest payable on Subordinated Debts - (0.48) (0.92) - - - - - -
Interim Dividend payable (1,105.30) - - (661.48) - - - - -
Trade Payables (0.30) (0.26) (0.26) (0.06) (0.05) (0.05) (12.51) (17.23) (4.70)
ANNEXURE X: SEGMENT REPORTING

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

Segment Revenue: 31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015 31.03.2017 31.03.2016 31.03.2015
External Revenue 58,980.11 49,188.40 43,231.60 19.95 11.44 13.83 107.94 - - 59,108.01 49,199.84 43,245.43
Inter segment Revenue - - - - - - - - - - - -
Total Revenue 58,980.11 49,188.40 43,231.60 19.95 11.44 13.83 107.94 - - 59,108.01 49,199.84 43,245.43
Result:
Segment Result 19,670.65 13,325.73 10,367.77 12.78 5.99 6.81 87.19 - - 19,770.61 13,331.72 10,374.58
Other Income - - - - - - - - - - - -
Unallocated corporate
- - - - - - - - - 180.74 136.15 108.34
income
Page | A-88
Unallocated corporate
- - - - - - - - - (365.52) (201.27) (196.25)
expenses
Profit Before Tax 19,670.65 13,325.73 10,367.77 12.78 5.99 6.81 87.19 - - 19,585.83 13,266.60 10,286.67
Less: Provision for Current
- - - - - - - - - 7,513.23 5,088.20 3,571.23
Tax / Deferred Tax
Profit After Tax 19,670.65 13,325.73 10,367.77 12.78 5.99 6.81 87.19 - - 12,072.60 8,178.40 6,715.44
Other Information:
Segment Assets 320,943.23 2,72,402.36 2,69,188.79 49.10 42.76 39.86 180.00 - - 321,172.32 272,445.11 269,228.65
Unallocated Corporate
- - - - - - - - - 669.10 1,502.36 733.26
Assets
Total Assets 320,943.23 272,402.36 269,188.79 49.10 42.76 39.86 180.00 - - 321,841.42 273,947.47 269,961.91
Segment Liabilities 252,661.48 215,590.68 217,780.06 - - - 9.83 - - 252,671.31 215,590.68 217,780.06

Unallocated Corporate
- - - - - - - - - 3,789.71 2,133.92 1,341.64
Liabilities
Total Liabilities 252,661.48 215,590.68 217,780.06 - - - 9.83 - - 256,461.02 217,724.60 219,121.70
Capital Expenditure 551.44 282.54 304.22 - - - - - - 551.44 282.54 304.22

Depreciation 516.48 584.27 840.51 2.11 2.30 2.50 0.62 - - 519.21 586.57 843.01
Non-Cash Expenditure
2,798.46 1,556.34 182.39 - - - - - - 2,798.46 1,556.34 182.39
other than Depreciation
Page | A-89
Secondary Business Segment Information (₹ in Millions)
31.03.2017 31.03.2016 31.03.2015

1 Segment Revenue - External Turnover
Within India 58,192.80 48,614.94 43,138.02
Outside India 915.21 584.90 107.41
Total Revenue 59,108.01 49,199.84 43,245.43
2 Segment Assets
Within India 317,398.66 270,259.26 267,396.58
Outside India 4,442.76 3,688.21 2,565.33
Total Assets 321,841.42 273,947.47 269,961.91
3 Segment Liabilities
Within India 252,462.43 214,417.60 216,857.47
Outside India 3,998.60 3,307.00 2,264.23
Total Liabilities 256,461.03 217,724.60 219,121.70
4 Capital Expenditure
Within India 446.36 190.10 263.05
Outside India 105.08 92.44 41.17
Total Expenditure 551.44 282.54 304.22
Other Notes on accounts
1. Employee Benefits
During the year, the Group has recognized the contribution to Provident Fund, in the Statement of Profit and Loss in Note.18- Employee
Benefit Expenses as under:
(₹in Millions)
Particulars Year ended 31.03.2017 Year ended 31.03.2016 Year ended 31.03.2015
Contribution to Provident Fund 257.95 246.92 239.79
Total 257.95 246.92 239.79
Within India
Gratuity Plan
Eligible employees of the Group are covered under a Gratuity plan. The scheme is funded with Insurance companies except in case of MHIL.
The following table provides disclosures with respect to Gratuity Plan as required under Accounting Standard 15 "Employee Benefits".
Reconciliation of opening and closing balances of the present value of the defined benefit obligation and plan assets:-
A) Reconciliation of opening and closing balance of defined benefit

obligation
Present Value of Defined benefit obligation at the beginning of the year 604.68 496.67 393.04
Defined benefit obligation acquired on acquisition 6.22 - -
Interest Cost 45.18 38.74 34.98
Current Service Cost 131.75 113.56 104.78
Benefits paid (37.82) (33.30) (8.01)
Actuarial (gain)/loss 22.19 (10.98) (28.13)
Page | A-90
Present Value of Defined benefit obligation at the end of the year 772.20 604.68 496.66
B) Reconciliation of opening and closing balance of fair value of

Plan Assets
Fair value of plan assets at the beginning of the year 602.22 489.16 374.31
Plan Assets acquired on acquisition 6.11 - -
Expected rate of return on plan assets 44.08 38.77 33.68
Contributions 124.65 109.30 63.73
(Benefit paid) (37.82) (33.30) (8.01)
Actuarial gains/(losses) on plan assets 24.47 (1.71) 25.44
Fair value of plan assets at the end of the year 763.71 602.22 489.15
C) Expense recognised in the statement of profit and loss
Current service cost 131.74 113.56 104.78
Interest Cost 45.18 38.74 34.98
(Expected rate of return on plan assets) (44.09) (38.76) (33.67)
Past Service Cost - 0.01 -
Actuarial gains/(losses) (2.28) (9.26) (53.57)
Employer Expense 130.55 104.29 52.52
D) Investment details
Insurer managed funds 756.25 602.22 489.15
E) Experience adjustment
On Plan Liability (Gain) / Losses (9.66) (23.93) (56.40)
On Plan Assets (Losses) / Gain 22.27 (5.19) 25.44
F) Actuarial assumptions
Discount rate 6.8% - 7.4% p.a. 7.4% p.a. 7.8% p.a.
Salary Escalation 6% - 7% p.a. 7% p.a. 7% p.a.
Rate of return on plan assets 7.4% - 15% p.a. 7.8% - 15% p.a. 8.5% p.a.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market. Discount rate is based on the prevailing market yields of the
Government Bond as at Balance Sheet date for the estimated term of obligation.
Estimated employer contribution for 2017-18 - ₹130.30 million

(₹in Millions)

Defined benefit obligation 772.20 604.68 496.66
Plan Assets 763.71 602.22 489.15
Surplus / (Deficit) (8.49) (2.47) (7.51)

Experience adjustments on plan Liabilities - (Gains) / Losses (9.66) (23.93) (56.40)
Experience adjustments on plan Assets - (Losses) / Gains 22.27 (5.19) 25.44
Outside India
Retirement Benefit Liability
The Gratuity plan obligation in respect of foreign subsidiary has arrived at each year on the basis of an actuarial valuation report. Accordingly,
the net change in obligation is charged/ reversed in the Statement of Profit and Loss during the year. The liabililty is not funded.
(₹ in Millions)
Retirement Benefit Obligations - Gratuity As at 31.03.2017 As at 31.03.2016 As at 31.03.2015

Balance at the beginning of the period 5.36 4.77 3.08
Adjustment to the Opening Balance due to exchange variation (0.27) (0.23) -
Payments made during the period (0.27) (0.18) -
Amount Charged/(Reversed) for the period 3.18 1.00 1.69
Balance at the end of the period 8.00 5.36 4.77
Page | A-91
(₹ in Millions)
Year ended Year Ended Year Ended

Expenses on Defined Benefit Plan
31.03.2017 31.03.2016 31.03.2015
Current Service Cost for the Year 1.50 0.91 0.87

Interest Cost for the Year 0.72 0.45 0.34
Actuarial Loss for the Year (0.95) (0.36) 0.48
1.27 1.00 1.69
Actuarial Assumptions:
The principal assumptions used are as follows:
As at 31.03.2017 As at 31.03.2016 As at 31.03.2015

Discount Rate 13% p.a. 13% p.a. 10 % p.a
Salary Increment Rate 12% p.a. 10% p.a. 8 % p.a
Staff Turnover 15% p.a. 15% p.a 12 % p.a
Retirement age 55 Years 55 Years 55 Years
A 1967/70 Mortality A 1967/70 Mortality A 1967/70 Mortality
Mortality Table (Institute of Table (Institute of Table (Institute of
Actuaries London) Actuaries London) Actuaries London)
Page | A-92
c) Employee stock option
Pursuant to approval by the shareholders at their meeting held on September 27, 2013, the Company has established “Muthoot ESOP 2013” scheme administered by the ESOP Committee of Board of
Directors. The following options were granted as on March 31, 2017 :

Particulars
Date of Grant 09.11.2013 09.11.2013 09.11.2013 08.07.2014 08.07.2014 08.07.2014 06.03.2015 27.06.2016 27.06.2016 27.06.2016
Date of Board
09.11.2013 09.11.2013 09.11.2013 08.07.2014 08.07.2014 08.07.2014 06.03.2015 27.06.2016 27.06.2016 27.06.2016
approval
Method of
Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled Equity settled
settlement
Number of equity One option - One option - One option - One option - One option - One option - One option - One option - One option - One option -
shares for an option One share One share One share One share One share One share One share One share One share One share
Number of options
3,711,200 1,706,700 1,571,075 456,000 380,900 6,100 325,000 390,400 728,300 8,150
granted
Exercise price Rs. 50 Rs. 50 Rs. 10 Rs. 50 Rs. 50 Rs. 10 Rs. 50 Rs. 50 Rs. 50 Rs. 10
Vesting period 1-5 years 2-6 years 1-2 years 1-5 years 2-6 years 1-2 years 1-5 years 1-5 years 2-6 years 1-2 years
In a graded In a graded In a graded

In a graded In a graded manner over a In a graded In a graded manner over a In a graded In a graded In a graded manner over a
manner over a manner over a 2 year period manner over a manner over a 2 year period manner over a manner over a manner over a 2 year period
5 year period 6 year period with 50% 5 year period 6 year period with 50% 5 year period 5 year period 6 year period with 50%
with with vesting at the with with vesting at the with with with vesting at the
10%,15%,20% 10%,15%,20 end of 12 10%,15%,20 10%,15%,20 end of 12 10%,15%,20 10%,15%,20 10%,15%,20 end of 12
, 25% and 30% %, 25% and months from %, 25% and %, 25% and months from %, 25% and %, 25% and %, 25% and months from
of the grants 30% of the the date of 30% of the 30% of the the date of 30% of the 30% of the 30% of the the date of
Manner of vesting
vesting in each grants vesting grant and the grants vesting grants vesting grant and the grants vesting grants vesting grants vesting grant and the
year in each year remaining in each year in each year remaining in each year in each year in each year remaining
commencing commencing 50% of the commencing commencing 50% of the commencing commencing commencing 50% of the
from the end from the end grants vesting from the end from the end grants vesting from the end from the end from the end grants vesting
of 12 months of 24 months at the end of of 12 months of 24 months at the end of of 12 months of 12 months of 24 months at the end of
from the date from the date 24 months from the date from the date 24 months from the date from the date from the date 24 months
of grant of grant from the date of grant of grant from the date of grant of grant of grant from the date
of grant of grant of grant
Page | A-93
Particulars Tranche 1 Tranche 2 Tranche 3 Tranche 4
Total
Options outstanding- beginning of the year 1,880,500 821,430 80,666 345,630 236,800 2,262 292,500 - - - 3,659,788
Options granted during the year - - - - - - - 390400 728300 8150 1126850
Options exercised during the year 321,115 47,940 34,295 45,655 4,600 2,012 17,600 - - - 473,217
Options lapsed during the year 656,595 487,285 17,147 68,625 123,690 50 - 39,700 82,100 325 1,475,517
Options outstanding- end of the year 902,790 286,205 29,224 231,350 108,510 200 274,900 350,700 646,200 7,825 2,837,904
Options exercisable 62,990 25,450 29,224 4,100 7,170 200 31,150 - - - 160,284

Particulars Tranche 1 Tranche 2 Tranche 3
Total
Options outstanding at the beginning of the year 2,844,390 1,235,700 783,817 415,200 291,592 5,350 325,000 5,901,049
Options granted during the year

- - - - - - - -
Options exercised during the year 295,040 3,8440 630,665 35,400 1,392 2,476 32,500 1,035,913
Options lapsed during the year 668,850 375,830 72,486 34,170 53,400 612 1,205,348
-
O ptions outstanding at the end of the year 1,880,500 821,430 80,666 345,630 236,800 2,262 292,500 3,659,788
Options exercisable 66,035 23,590 69,194 4,080 50 162,949

- -
Page | A-94
Particulars Tranche 1 Tranche 2 Tranche 3
Total
Options outstanding at the beginning of the year 3,527,600 1,553,500 1,545,200 6,626,300
- - - -
Options granted during the year 456,000 380,900 6,100 325,000 1,168,000
- - -
Options exercised during the year 243,840 654,141 4,608 902,589

- - - -
Options lapsed during the year 439,370 317,800 107,242 40,800 84,700 750 990,662
-
O ptions outstanding at the end of the year 2,844,390 1,235,700 783,817 415,200 291,592 5,350 325,000 5,901,049
Options exercisable 76,170 73,002 1,392 150,564

- - - -
The Company has used Intrinsic value method for accounting of Employee Stock Compensation costs. Intrinsic Value is the amount by which, the quoted closing market price of the underlying shares as
on the date of grant exceeds the exercise price of the option.
The fair value of options based on valuation of independent valuer using Black-Scholes Method as of the respective date of grant are given below :

Particulars
Rs 226.42 Rs 223.87 Rs 262.48
Rs 68.75 Rs 70.21 Rs 102.01 Rs 131.77 Rs 130.56 Rs 166.69 Rs 165.61
(June 27, (June 27, (June 27,
(Nov 9,2014) (Nov 9, 2015) (Nov 9,2014) (July 8,2015) (July 8,2016) (July 8,2015) (Mar 6,2016)
2017) 2018) 2017)
Rs 223.87 Rs 221.34 Rs 257.37
Rs 70.21 Rs 71.13 Rs 98.64 ( Rs 130.56 Rs 129.33 Rs 161.77 Rs 163.16
(June 27, (June 27, (June 27,
(Nov 9, 2015) (Nov 9,2016) Nov 9,2015) (July 8,2016) (July 8,2017) (July 8,2016) (Mar 6,2017)
2018) 2019) 2018)
Fair value per option tranche on Rs 221.34 Rs 218.80
Rs 71.13 Rs 71.52 Rs 129.33 Rs 127.91 Rs 160.66
grant date (corresponding vesting (June 27, (June 27,
(Nov 9,2016) (Nov 9,2017) (July 8,2017) (July 8,2018) (Mar 6,2018)
date shown in bracket) 2019) 2020)
Rs 218.80 Rs 216.20
Rs 71.52 Rs 71.47 Rs 127.91 Rs 126.26 Rs 158.13
(June 27, (June 27,
2020) 2021)
Rs 216.20 Rs 213.54
Rs 71.47 Rs 71.11 Rs 126.26 Rs 124.39 Rs 155.57
(June 27, (June 27,
2021) 2022)
Page | A-95
The significant assumptions made for calculation of fair value are as follows:

Particulars
8.4% - 8.8% 8.4%-8.95% 8.4% -8.45% 8.26% - 8.35% 8.24% - 8.32% 8.32% - 8.35% 7.45% - 7.60 6.91% - 7.41% 7.08% - 7.47% 6.91% - 7.08%
Risk free interest rate
p.a. p.a. p.a. p.a. p.a. p.a. % p.a. p.a. p.a. p.a.
Expected average life of option 1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years 1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years 1.5 – 5.5 years 1.5 – 5.5 years 2.5 – 6.5 years 1.5-2.5 years
Expected Volatility 0.5768 0.5768 0.5768 0.5396 0.5396 0.5396 0.3450 0.3698 0.3698 0.3698
Expected Dividend Yield 3.84 % p.a. 3.84 % p.a. 3.84 % p.a. 3.26% p.a. 3.26% p.a. 3.26% p.a. 2.74% p.a. 2.14% p.a. 2.14% p.a. 2.14% p.a.
Page | A-96
The Company has used Intrinsic value method for accounting of Employees Stock Compensation costs.
(₹ in Millions)
Employee Stock Option Liability As at 31.03.2017 As at 31.03.2016 As at 31.03.2015
Opening Total Employee Stock Option Liability 325.18 506.39 507.76
Increase in Liability on account of fresh ESOP grants 259.90 - 168.40
Reduction in Liability on account of Exercise on vesting (38.60) (98.35) (86.91)
Reduction in Liability on account of lapse of grants (68.13) (82.86) (82.86)
Closing Total Employee Stock Option Liability 478.35 325.18 506.39
(₹ in Millions)
Employee Stock Option Compensation Expenses As at 31.03.2017 As at 31.03.2016 As at 31.03.2015
Opening Deferred Stock Option Compensation Expenses 101.51 299.67 409.03
Increase in ESOP Compensation Expenses on account of fresh ESOP
259.90 - 168.40
grants
Compensation Expenses amortised during the year (36.20) (115.30) (194.90)
Reduction in Compensation Expenses on account of lapse of grants (68.13) (82.86) (82.86)
Closing Deferred Stock Option Compensation Expenses 257.08 101.51 299.67
(₹ in Millions)
Employee Stock Option Reserve As at 31.03.2017 As at 31.03.2016 As at 31.03.2015
Employee Stock Option Liability 478.35 325.18 506.39
Less: Deferred Employee Stock Option Compensation Expenses 257.08 101.51 299.67
Employee Stock Option Reserve 221.27 223.67 206.72
Had the Company adopted Fair value method in respect of Options granted instead of Intrinsic value method, the impact in the financial statements
for the year would be:
(₹ in Millions)
Year ended Year ended Year ended
Particulars
31.03.2017 31.03.2016 31.03.2015
Decrease in employee compensation costs ₹ 5.59 ₹ 22.10 ₹ 14.77

Increase in profit after tax ₹ 5.59 ₹ 22.10 ₹ 14.77
Increase in Basic EPS (Rs. per share) 0.01 0.06 0.04
Increase in Diluted EPS (Rs. per share) 0.01 0.05 0.04
21. The figures of earlier periods have been regrouped wherever necessary, to confirm to the classification adopted for
the Reformatted Consolidated Summary Statements as at and for the year ended March 31 2017 and accordingly the
consolidated summary statement of the above three year period are referred to as the Consolidated Financial
Information.
Page | A-97
ANNEXURE B – UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER ENDED JUNE 30, 2017
Independent Auditors’ Review Report

To:
Cochin – 682 018
We have reviewed the accompanying statement of standalone unaudited financial results of

Muthoot Finance Limited (‘the Company’) for the quarter ended June 30, 2017 (‘the Statement’),
being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, read with Circular No.
CIR/CFD/FAC/62/2016 dated 5th July, 2016. This Statement is the responsibility of the Company’s
Management and has been approved by the Board of Directors. Our responsibility is to issue a
report on the Statement based on our review.
We conducted our review of the statement in accordance with the Standard on Review Engagement
(SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of
the Entity” issued by the Institute of Chartered Accountants of India. This Standard requires that we
plan and perform the review to obtain moderate assurance as to whether the Statement is free of
material misstatement. A review is limited primarily to inquiries of company personnel and
analytical procedures applied to financial data and thus provide less assurance than an audit. We
have not performed an audit, and accordingly, we do not express an audit opinion.
Based on our review conducted as stated above, nothing has come to our attention that causes us to
believe that the accompanying statement of standalone unaudited financial results prepared in
accordance with the applicable Accounting Standards and other recognised accounting practices
and policies, has not disclosed the information required to be disclosed in terms of Regulation 33 of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI
Circular No. CIR/CFD/FAC/62/2016 dated 5th July, 2016 including the manner in which it is to be
disclosed, or that it contains any material misstatement.
For M/s Rangamani & Co

(FRN: 003050 S)
Sd/-
Place: Kochi R. Sreenivasan
Date: August 8, 2017 Partner (M. No. 020566)
Page | B-1
Registered and Corporate Office: Muthoot Chambers,
Opposite Saritha Theatre Complex, 2nd Floor, Banerji Road, Kochi 682 018, India.
CIN No. L65910KL1997PLC011300
Ph .No. 0484 2396478, Fax No. 0484 2396506, Website : www.muthootfinance.com,
Email id: [email protected]
Statement of Unaudited Standalone Financial Results for the Quarter ended June 30, 2017
Rs. in Lakhs
Quarter ended Year ended
Particulars
30.06.2017 31.03.2017 30.06.2016 31.03.2017
(Unaudited) (Audited)* (Unaudited) (Audited)
Revenue from Operations 1,39,226.07 1,70,963.19 1,29,639.46 5,72,862.71

Other Income 631.89 358.78 442.47 1,807.44
Total Revenue 1,39,857.96 1,71,321.97 1,30,081.93 5,74,670.15
Expenses
Employee Benefits Expenses 17,729.03 18,015.62 18,489.11 72,804.77
Finance Costs 53,259.57 54,601.86 55,708.47 2,29,381.52
Depreciation and Amortisation 1,042.68 1,331.91 1,169.05 4,825.04
Provisions and Write Offs 663.89 24,301.82 1,755.06 28,159.09
Other Expenditure 11,981.10 14,141.92 10,589.01 47,401.99
Total Expenses 84,676.27 1,12,393.13 87,710.70 3,82,572.41

Profit before exceptional and extraordinary Items and tax
55,181.69 58,928.84 42,371.23 1,92,097.74
Exceptional Items - - - -
Profit before extraordinary Items and tax 55,181.69 58,928.84 42,371.23 1,92,097.74
Extraordinary Items - - - -
Profit before tax 55,181.69 58,928.84 42,371.23 1,92,097.74
Tax expenses:-
Current tax 19,322.00 26,851.11 15,473.43 74,519.55
Deferred tax 752.65 (100.19) (129.02) (404.99)
Tax expenses 20,074.65 26,750.92 15,344.41 74,114.56
Profit for the period from continuing operations 35,107.04 32,177.92 27,026.82 1,17,983.18
Profit / (Loss) from discontinuing operations - - - -
Tax expense of discontinuing operations - - - -
Profit / (Loss) from discontinuing operations (after tax) - - - -
Profit for the period 35,107.04 32,177.92 27,026.82 1,17,983.18
Paid up Equity share capital ( Face value Rs.10/- per share) 39,953.63 39,947.55 39,905.09 39,947.55
Reserves (excluding Revaluation Reserves) 6,11,696.58
Earnings Per Share (Not Annualised)

Basic (Rs.) 8.79 8.06 6.77 29.56
Diluted (Rs.) 8.76 8.03 6.71 29.45
Face value (Rs.) 10.00 10.00 10.00 10.00
See accompanying notes to financial results
Page | B-2
CIN No. L65910KL1997PLC011300
Ph .No. 0484 2396478, Fax No. 0484 2396506, Website : www.muthootfinance.com, Email id: [email protected]
SEGMENT WISE REVENUE, RESULTS, ASSETS AND LIABILITIES

Rs. in Lakhs
Quarter ended Year ended
Particulars
30.06.2017 31.03.2017 30.06.2016 31.03.2017
(Unaudited) (Audited)* (Unaudited) (Audited)
1 Segment Revenue:
Financing 1,39,181.84 1,70,969.60 1,29,598.51 5,72,663.17
Power Generation 44.23 (6.41) 40.95 199.54
Total Revenue from Operations 1,39,226.07 1,70,963.19 1,29,639.46 5,72,862.71
2 Segment Result:
Financing 55,112.29 60,743.89 42,393.70 1,93,817.70
Power Generation 26.09 (24.35) 35.69 127.78
Unallocated income 631.89 358.78 442.47 1,807.44
Unallocated expenses (588.58) (2,149.48) (500.63) (3,655.18)
Profit Before Tax 55,181.69 58,928.84 42,371.23 1,92,097.74
Tax expenses (including deferred tax) 20,074.65 26,750.92 15,344.41 74,114.56
Profit after Tax 35,107.04 32,177.92 27,026.82 1,17,983.18
3 Segment Assets
-Financing 31,51,994.08 30,44,302.26 28,37,215.43 30,44,302.26
-Power Generation 489.44 490.99 452.45 490.99
-Unallocated Assets 25,761.28 26,513.93 17,894.34 26,513.93
Total 31,78,244.80 30,71,307.18 28,55,562.22 30,71,307.18
-Financing 24,74,808.83 23,81,765.89 22,54,171.22 23,81,765.89
-Power Generation - - - -
-Unallocated Liabilities 16,602.98 37,897.16 12,237.97 37,897.16
Total 24,91,411.81 24,19,663.05 22,66,409.19 24,19,663.05
Page | B-3
CIN No. L65910KL1997PLC011300
Ph .No. 0484 2396478, Fax No. 0484 2396506, Website : www.muthootfinance.com, Email id: [email protected]
Notes:
1. The above financial results have been reviewed by the Audit Committee and approved by the
Board of Directors of the Company at their respective meetings held on August 7 and August 8,
2017.
2. The above results have been subject to Limited Review by the Statutory Auditors of the Company.
3. The working results have been arrived at after considering provisions for standard assets and non-
performing assets as per RBI guidelines, depreciation on fixed assets and other usual and necessary
provisions.
4. The Company operates in two segments – Financing and Power Generation. These segments have
been identified in line with the Accounting Standard on Segment Reporting (AS 17).
5. During the quarter ended June 30, 2017, the company has allotted 60,747 shares under the Muthoot
ESOP Scheme 2013. The company has not granted any options during the quarter.
6. The Company has maintained requisite full asset cover by way of mortgage of immovable property
and paripassu floating charge on current assets, book debts and loans & advances of the Company
on its Secured Listed Non Convertible Debentures aggregating to Rs.553,587.16 lakhs as at June 30,
2017.
7. *The figures for the quarter ended March 31, 2017 are the balancing figures between the audited
figures in respect of the full financial year ended March 31, 2017 and the year to date limited
review figures for the nine months ended December 31, 2016.
8. Previous period/year figures have been regrouped / reclassified wherever necessary to conform to
current period/year presentation.
For and on behalf of the Board of Directors
Sd/-
Kochi George Alexander Muthoot
08.08.2017 Managing Director
Page | B-4
ANNEXURE C - UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER AND
SIX MONTHS ENDED SEPTEMBER 30,2017
Limited Review Report
Independent Auditors' Review Report
We have reviewed the accompanying statement of unaudited standalone financial results of

Muthoot Finance Limited ³WKH &RPSDQ\´ for the period ended 30th September 2017 ³WKH
Statement´. This statement has been prepared by the company pursuant to the requirements of
Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulation, 2015. This statement which is the responsibility of the
&RPSDQ\¶V0DQDJHPHQW has been approved by the Board of Directors/ Committee of Board of
Directors. Our responsibility is to issue a report on these financial statements based on our
review.
We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410,
³5HYLHZRI,QWHULP)LQDQFLDO,QIRUPDWLRQ3HUIRUPHGE\WKH,QGHSHQGHQW$XGLWRURIWKH(QWLW\´
issued by the Institute of Chartered Accountants of India. This standard requires that we plan and
perform the review to obtain moderate assurance as to whether the financial statements are free
of material misstatement. A review is limited primarily to inquiries of company personnel and
analytical procedures applied to financial data and thus provide less assurance than an audit. We
have not performed an audit and accordingly, we do not express an audit opinion.
Based on our review conducted as above, nothing has come to our attention that causes us to
believe that the accompanying statement of unaudited financial results prepared in accordance
with applicable accounting standards, relevant guidelines as applicable to the Company issued by
5HVHUYH%DQNRI,QGLD³WKH5%,´ and other recognised accounting practices and policies have
not disclosed the information required to be disclosed in terms of Regulation 33 and Regulation
52 read with Regulation 63(2) of the SEBI (Listing Obligations and Disclosure Requirements)
Page | C- 1
Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any
material misstatement.
We draw attention to Note No 8 to the Statement in respect of application of revised non-

performing assets norms issued by RBI vide Notification No. DNBR.009/CGM(CDS)-2015
dated 27th March 2015 by the end of the respective financial year in accordance with the legal
opinion received by the company. Our report is not modified in respect of this matter.
The comparative financial information of the company for periods up to 30th June 2017 included
in the Statement have been reviewed/ audited by the predecessor auditors and relied upon by us.
The report of the predecessor auditors on comparative financial information for the quarter and
half year ended 30th September 2016 dated 11th November 2016, for the year ended 31st March
2017 dated 18th May 2017 and for the quarter ended 30th June 2017 dated 8th August 2017
expressed an unqualified opinion.
For Varma and Varma

(FRN : 004532 S)
Sd/-
V. Sathyanarayanan
Partner (M. No. 021941)
Place : Kochi
Date : 08.11.2017
Page | C- 2
Registered and Corporate Office: 2nd Floor, Muthoot Chambers,
Opposite Saritha Theatre Complex, Banerji Road, Kochi - 682 018, India.
CIN : L65910KL1997PLC011300
Ph. No. : 0484 2396478, Fax No. : 0484 2396506, Website : www.muthootfinance.com,
Email : [email protected]
Statement of Unaudited Standalone Financial Results for the Quarter & Six months ended 30th September 2017
Rs. in Lakhs
Quarter ended Period ended Year ended
Particulars
30.09.2017 30.06.2017 30.09.2016 30.09.2017 30.09.2016 31.03.2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Revenue from Operations 1,66,489.29 1,39,226.07 1,38,174.90 3,05,715.36 2,67,814.36 5,72,862.71

Other Income 503.73 631.89 449.23 1,135.62 891.70 1,807.44
Total Revenue 1,66,993.02 1,39,857.96 1,38,624.13 3,06,850.98 2,68,706.06 5,74,670.15
Expenses
Employee Benefits Expenses 19,419.14 18,305.78 19,455.22 37,724.92 38,439.33 76,384.77
Finance Costs 48,893.64 53,259.57 59,373.56 1,02,153.21 1,15,082.03 2,29,381.52
Depreciation and Amortisation 1,057.82 1,042.68 1,107.33 2,100.50 2,276.38 4,825.04
Provisions and Write Offs 11,695.99 663.89 1,713.94 12,359.88 3,469.00 28,159.09
Other Expenses 10,661.81 11,404.35 10,736.21 22,066.16 20,830.22 43,821.99
Total Expenses 91,728.40 84,676.27 92,386.26 1,76,404.67 1,80,096.96 3,82,572.41

75,264.62 55,181.69 46,237.87 1,30,446.31 88,609.10 1,92,097.74
Exceptional Items - - - - - -
Profit before extraordinary Items and tax 75,264.62 55,181.69 46,237.87 1,30,446.31 88,609.10 1,92,097.74
Extraordinary Items - - - - - -
Profit before tax 75,264.62 55,181.69 46,237.87 1,30,446.31 88,609.10 1,92,097.74
Tax expenses:-
Current tax 28,554.31 19,322.00 16,639.31 47,876.31 32,112.74 74,519.55
Deferred tax 1,294.40 752.65 (73.80) 2,047.05 (202.82) (404.99)
Tax expenses 29,848.71 20,074.65 16,565.51 49,923.36 31,909.92 74,114.56
Profit for the period from continuing operations 45,415.91 35,107.04 29,672.36 80,522.95 56,699.18 1,17,983.18
Profit / (Loss) from discontinuing operations - - - - - -
Tax expense of discontinuing operations - - - - - -
Profit / (Loss) from discontinuing operations (after tax) - - - - - -
Profit for the period 45,415.91 35,107.04 29,672.36 80,522.95 56,699.18 1,17,983.18
Net Profit for the period 45,415.91 35,107.04 29,672.36 80,522.95 56,699.18 1,17,983.18
Paid up Equity share capital ( Face value Rs.10/- per share) 39,956.67 39,953.63 39,905.09 39,956.67 39,905.09 39,947.55

Basic (Rs.) 11.36 8.79 7.44 20.15 14.21 29.56
Diluted (Rs.) 11.27 8.76 7.38 20.03 14.09 29.45
Face value (Rs.) 10.00 10.00 10.00 10.00 10.00 10.00
Page | C-3
CIN : L65910KL1997PLC011300
Ph. No. : 0484 2396478, Fax No. : 0484 2396506, Website : www.muthootfinance.com, Email : [email protected]

Rs. in Lakhs
Particulars
30.09.2017 30.06.2017 30.09.2016 30.09.2017 30.09.2016 31.03.2017
1 Segment Revenue:
Financing 1,66,363.00 1,39,181.84 1,38,049.25 3,05,544.84 2,67,647.76 5,72,663.17
Power Generation 126.29 44.23 125.65 170.52 166.60 199.54
Total Revenue from Operations 1,66,489.29 1,39,226.07 1,38,174.90 3,05,715.36 2,67,814.36 5,72,862.71
2 Segment Result:
Financing 75,240.49 55,112.29 46,193.77 1,30,352.78 88,587.47 1,93,817.70
Unallocated income 503.73 631.89 449.23 1,135.62 891.70 1,807.44
Unallocated expenses (587.76) (588.58) (500.16) (1,176.34) (1,000.79) (3,655.18)
Profit Before Tax 75,264.62 55,181.69 46,237.87 1,30,446.31 88,609.10 1,92,097.74
Tax expenses (including deferred tax) 29,848.71 20,074.65 16,565.51 49,923.36 31,909.92 74,114.56
Profit after Tax 45,415.91 35,107.04 29,672.36 80,522.95 56,699.18 1,17,983.18
3 Segment Assets
-Financing 32,05,887.10 31,51,994.08 30,28,539.97 32,05,887.10 30,28,539.97 30,44,302.26
-Power Generation 485.25 489.44 543.00 485.25 543.00 490.99
-Unallocated Assets 38,338.89 25,761.28 25,655.30 38,338.89 25,655.30 26,513.93
Total 32,44,711.24 31,78,244.80 30,54,738.27 32,44,711.24 30,54,738.27 30,71,307.18
-Financing 24,87,958.51 24,74,808.83 24,25,729.18 24,87,958.51 24,25,729.18 23,81,765.89
-Power Generation - - - - - -
-Unallocated Liabilities 24,317.63 16,602.98 10,092.88 24,317.63 10,092.88 37,897.16
Total 25,12,276.14 24,91,411.81 24,35,822.06 25,12,276.14 24,35,822.06 24,19,663.05
Page | C-4
CIN : L65910KL1997PLC011300
STATEMENT OF ASSETS AND LIABILITIES AS AT 30 th SEPTEMBER 2017

Standalone
Particulars
As at 30-09-2017 As at 31-03-2017
(Unudited) (Audited)
A EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share capital 39,956.67 39,947.55
(b) Reserves and surplus 6,92,478.43 6,11,696.58
Sub Total 7,32,435.10 6,51,644.13
2 Non-current liabilities
(a) Long-term borrowings 5,73,699.07 4,23,119.12
(b) Other Long term liabilities 43,831.90 67,196.92
(c) Long term Provisions 1,566.49 52.73
Sub Total 6,19,097.46 4,90,368.77
3 Current liabilities
(a) Short-term borrowings 13,64,229.49 12,75,490.95
(b) Trade Payables
-Total outstanding dues of micro enterprises and small
enterprises - -
-Total outstanding dues of creditors other than micro
enterprises and small enterprises 10,955.34 9,292.22
(c) Other current liabilities 4,24,469.84 5,79,420.76
(d) Short-term provisions 93,524.01 65,090.36
Sub Total 18,93,178.68 19,29,294.29
TOTAL 32,44,711.24 30,71,307.19
B ASSETS
1 Non-current assets
(a) Fixed assets
(i) Tangible assets 20,029.40 20,217.86
(ii) Intangible assets 579.71 605.24
(iii) Capital work-in-progress 521.19 997.49
(b) Non-current investments 34,783.55 20,911.55
(c) Deferred tax assets (net) 3,555.34 5,602.39
(d) Long-term loans and advances 11,498.63 10,852.59
Sub Total 70,967.82 59,187.12
2 Current assets
(a) Current investments 1,05,000.00 -
(b) Trade receivables 1,07,437.16 1,27,060.45
(c) Cash and Bank Balances 1,96,490.08 1,53,425.37
(d) Short-term loans and advances 27,64,649.69 27,31,568.01
(e) Other current assets 166.49 66.24
Sub Total 31,73,743.42 30,12,120.07
TOTAL
Number of shares 32,44,711.24 30,71,307.19
Page | C-5
CIN : L65910KL1997PLC011300
Notes:
1. The above financial results have been reviewed by the Audit Committee and approved by the Board of
Directors of the Company at their meeting held on November 8, 2017.
provisions.
4. The Company operates in two segments – Financing and Power Generation. These segments have been
identified in line with the Accounting Standard on Segment Reporting (AS 17).
5. During the quarter ended September 30, 2017, the company acquired 31,527,272 equity shares of Rs 10/-
each at a premium of Rs. 34/- per share for a total consideration of Rs.13,872.00 lakhs taking the total
shareholding to 100% of the total equity share capital of Muthoot Homefin (India) Limited (MHIL).
6. During the quarter ended September 30, 2017, the company has allotted 30,393 shares under the 'Muthoot
ESOP 2013 Scheme '. During the quarter ended September 30, 2017, in accordance with the 'Muthoot ESOP
2013 Scheme', the company has granted 1,150 options @ Rs.10/- per option and 5,91,100 options @ Rs.50/-
per option to the employees as approved by the Nomination and Remuneration Committee in their
meeting held on August 7, 2017.
7. The Company has maintained requisite full asset cover by way of mortgage of immovable property and
paripassu floating charge on current assets, book debts and loans & advances of the Company on its
Secured Listed Non Convertible Debentures aggregating to Rs.499,088.68 lakhs as at September 30, 2017.
8. As per Notification No. DNBR.009/CGM(CDS)-2015 dated 27th March 2015 issued by RBI, for
classification of Non-performing assets the period of overdue advances has been reduced to 5 months, 4
months, 3 months effective from the financial years ending 31.03.2016, 31.03.2017 and 31.03.2018,
respectively. The company has been making necessary provision and classifying NPA as per the above
norms consistently as at the end of the applicable financial year in the accounts. Accordingly, the
provisioning and classification applying the norm of 3 months as above, will be made in the accounts as
on 31-3-2018, which is as per the legal opinion obtained by the company.
9. The information pursuant to Regulation 52(4) and 52 (6) of the Listing regulation are given in Annexure A.
Sd/-
DIN: 00016787
Page | C-6
ANNEXURE D - UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER AND
NINE MONTHS ENDED DECEMBER 31,2017
Limited Review Report

Independent Auditors' Review Report
1. We have reviewed the accompanying statement of unaudited standalone financial results of

Muthoot Finance Limited ³WKH&RPSDQ\´for the period ended 31st December 2017 ³WKH
6WDWHPHQW´). This statement has been prepared by the company pursuant to the requirements
of Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulation, 2015. This statement which is the
responsibility of WKH&RPSDQ\¶V0DQDJHPHQW has been approved by the Board of Directors/
Committee of Board of Directors. Our responsibility is to issue a report on these financial
statements based on our review.
2. We conducted our review in accordance with the Standard on Review Engagements (SRE)
2410, ³5HYLHZ RI ,QWHULP )LQDQFLDO ,QIRUPDWLRQ 3HUIRUPHd by the Independent Auditor of
WKH(QWLW\´ issued by the Institute of Chartered Accountants of India. This standard requires
that we plan and perform the review to obtain moderate assurance as to whether the financial
statements are free of material misstatement. A review is limited primarily to inquiries of
company personnel and analytical procedures applied to financial data and thus provide less
assurance than an audit. We have not performed an audit and accordingly, we do not express
an audit opinion.
3. Based on our review conducted as above, nothing has come to our attention that causes us to
believe that the accompanying statement of unaudited financial results prepared in
accordance with applicable accounting standards, relevant guidelines as applicable to the
&RPSDQ\ LVVXHG E\ 5HVHUYH %DQN RI ,QGLD ³WKH 5%,´ and other recognised accounting
practices and policies have not disclosed the information required to be disclosed in terms of
Regulation 33 and Regulation 52 read with Regulation 63(2) of the SEBI (Listing
Page | D-1
Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which
it is to be disclosed, or that it contains any material misstatement.
4. We draw attention to Note No:7 to the Statement in respect of application of revised non-
performing assets norms issued by RBI vide Notification No. DNBR.009/CGM(CDS)-2015
dated 27th March 2015 by the end of the respective financial year in accordance with the
legal opinion received by the company. Our report is not modified in respect of this matter.
5. The financial information of the company for periods up to 30th June 2017 included in the
Statement have been reviewed/ audited by the predecessor auditors and relied upon by us.
The report of the predecessor auditors on comparative financial information for the quarter
and nine months ended 31st December 2016 dated 13th February 2017 and for the year ended
31st March 2017 dated 18th May 2017 expressed an unqualified opinion.
For Varma and Varma

(FRN : 004532 S)
Sd/-
V. Sathyanarayanan
Partner (M. No. 021941)
Place : Kochi
Date : 08.02.2018
Page | D-2
CIN : L65910KL1997PLC011300
Statement of Unaudited Standalone Financial Results for the Quarter & Nine months ended 31st December 2017
Rs. in Lakhs
Particulars
31.12.2017 30.09.2017 31.12.2016 31.12.2017 31.12.2016 31.03.2017
Revenue from Operations 1,55,370.71 1,66,489.29 1,34,085.16 4,61,086.07 4,01,899.52 5,72,862.71

Other Income 1,295.64 503.73 556.96 2,431.25 1,448.66 1,807.44
Total Revenue 1,56,666.35 1,66,993.02 1,34,642.12 4,63,517.32 4,03,348.18 5,74,670.15
Expenses
Employee Benefits Expenses 18,477.45 19,419.14 17,339.82 56,202.37 54,789.15 76,384.77
Finance Costs 46,885.30 48,893.64 59,697.63 1,49,038.51 1,74,779.66 2,29,381.52
Depreciation and Amortisation 1,149.56 1,057.82 1,216.75 3,250.05 3,493.13 4,825.04
Provisions and Write Offs 5,640.79 11,695.99 388.27 18,000.67 3,857.27 28,159.09
Other Expenses 12,496.06 10,661.81 11,439.85 34,562.22 33,260.07 43,821.99
Total Expenses 84,649.16 91,728.40 90,082.32 2,61,053.82 2,70,179.28 3,82,572.41

72,017.19 75,264.62 44,559.80 2,02,463.50 1,33,168.90 1,92,097.74
Exceptional Items - - - - - -
Profit before extraordinary Items and tax 72,017.19 75,264.62 44,559.80 2,02,463.50 1,33,168.90 1,92,097.74
Extraordinary Items - - - - - -
Profit before tax 72,017.19 75,264.62 44,559.80 2,02,463.50 1,33,168.90 1,92,097.74
Tax expenses:-
Current tax 25,736.46 28,554.31 15,555.71 73,612.77 47,668.44 74,519.55
Deferred tax (84.20) 1,294.40 (101.99) 1,962.85 (304.80) (404.99)
Tax expenses 25,652.26 29,848.71 15,453.72 75,575.62 47,363.64 74,114.56
Profit for the period from continuing operations 46,364.93 45,415.91 29,106.08 1,26,887.88 85,805.26 1,17,983.18
Profit / (Loss) from discontinuing operations - - - - - -
Tax expense of discontinuing operations - - - - - -
Profit / (Loss) from discontinuing operations (after tax) - - - - - -
Profit for the period 46,364.93 45,415.91 29,106.08 1,26,887.88 85,805.26 1,17,983.18
Net Profit for the period 46,364.93 45,415.91 29,106.08 1,26,887.88 85,805.26 1,17,983.18
Paid up Equity share capital ( Face value Rs.10/- per share) 39,991.39 39,956.67 39,945.57 39,991.39 39,945.57 39,947.55

Basic (Rs.) 11.61 11.36 7.29 31.76 21.50 29.56
Diluted (Rs.) 11.56 11.27 7.23 31.59 21.32 29.45
Face value (Rs.) 10.00 10.00 10.00 10.00 10.00 10.00
Page | D-3
CIN : L65910KL1997PLC011300

Rs. in Lakhs
Particulars
31.12.2017 30.09.2017 31.12.2016 31.12.2017 31.12.2016 31.03.2017
1 Segment Revenue:
Financing 1,55,486.02 1,66,363.00 1,34,045.81 4,61,030.86 4,01,693.57 5,72,663.17
Total Revenue from Operations 1,55,519.71 1,66,489.29 1,34,085.16 4,61,235.07 4,01,899.52 5,72,862.71
2 Segment Result:
Financing 71,437.35 75,240.49 44,486.34 2,01,790.13 1,33,073.81 1,93,817.70
Unallocated income 1,146.64 503.73 556.96 2,282.26 1,448.66 1,807.44
Unallocated expenses (582.35) (587.76) (504.91) (1,758.69) (1,505.70) (3,655.18)
Profit Before Tax 72,017.19 75,264.62 44,559.80 2,02,463.50 1,33,168.90 1,92,097.74
Tax expenses (including deferred tax) 25,652.26 29,848.71 15,453.72 75,575.62 47,363.64 74,114.56
Profit after Tax 46,364.93 45,415.91 29,106.08 1,26,887.88 85,805.26 1,17,983.18
3 Segment Assets
-Financing 31,05,238.02 32,05,887.10 29,76,104.37 31,05,238.02 29,76,104.37 30,44,302.27
-Power Generation 474.57 485.25 502.67 474.57 502.67 490.99
-Unallocated Assets 40,329.22 38,338.89 38,991.31 40,329.22 38,991.31 26,513.93
Total 31,46,041.81 32,44,711.24 30,15,598.35 31,46,041.81 30,15,598.35 30,71,307.19
-Financing 23,49,971.53 24,87,958.51 23,57,881.40 23,49,971.53 23,57,881.40 23,81,765.89
-Power Generation - - - - - -
-Unallocated Liabilities 17,097.67 24,317.63 9,467.73 17,097.67 9,467.73 37,897.17
Total 23,67,069.20 25,12,276.14 23,67,349.13 23,67,069.20 23,67,349.13 24,19,663.06
Page | D-4
CIN : L65910KL1997PLC011300
STATEMENT OF ASSETS AND LIABILITIES AS AT 31st DECEMBER 2017

Rs. in Lakhs
Standalone
Particulars
As at 31-12-2017 As at 31-03-2017
(Unaudited) (Audited)
A EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share capital 39,991.39 39,947.55
(b) Reserves and surplus 7,38,981.22 6,11,696.58
Sub Total 7,78,972.61 6,51,644.13
2 Non-current liabilities
(a) Long-term borrowings 5,25,224.34 4,23,119.12
(b) Other Long term liabilities 31,055.08 67,196.92
(c) Long term Provisions 2,168.25 52.73
Sub Total 5,58,447.67 4,90,368.77
3 Current liabilities
(a) Short-term borrowings 13,41,954.39 12,75,490.95
(b) Trade Payables
-Total outstanding dues of micro enterprises and small
enterprises - -
-Total outstanding dues of creditors other than micro
enterprises and small enterprises 10,072.92 9,292.22
(c) Other current liabilities 3,65,553.40 5,79,420.76
(d) Short-term provisions 91,040.82 65,090.36
Sub Total 18,08,621.53 19,29,294.29
TOTAL 31,46,041.81 30,71,307.19
B ASSETS
1 Non-current assets
(a) Fixed assets
(i) Tangible assets 19,418.75 20,217.86
(ii) Intangible assets 770.24 605.24
(iii) Capital work-in-progress 532.55 997.49
(b) Non-current investments 34,783.55 20,911.55
(c) Deferred tax assets (net) 3,639.54 5,602.39
(d) Long-term loans and advances 21,230.33 10,852.59
Sub Total 80,374.96 59,187.12
2 Current assets
(a) Current investments - -
(b) Trade receivables 1,06,218.08 1,27,060.45
(c) Cash and Bank Balances 1,39,604.94 1,53,425.37
(d) Short-term loans and advances 28,19,743.08 27,31,568.01
(e) Other current assets 100.75 66.24
Sub Total 30,65,666.85 30,12,120.07
TOTAL
Number of shares 31,46,041.81 30,71,307.19
Page | D-5
CIN : L65910KL1997PLC011300
Notes:
1. The above financial results have been reviewed by the Audit Committee and approved by the Board of
Directors of the Company at their respective meetings held on February 7 and February 8, 2018.
provisions.
4. The Company operates in two segments – Financing and Power Generation. These segments have been
identified in line with the Accounting Standard on Segment Reporting (AS 17).
5. During the quarter ended December 31, 2017, the company has allotted 3,47,225 shares under the
'Muthoot ESOP 2013 Scheme '. The company has not granted any options during the quarter.
6. The Company has maintained requisite full asset cover by way of mortgage of immovable property and
paripassu floating charge on current assets, book debts and loans & advances of the Company on its
Secured Listed Non Convertible Debentures aggregating to Rs.4,51,578.96 lakhs as at December 31, 2017.
7. As per Notification No. DNBR.009/CGM(CDS)-2015 dated 27th March 2015 issued by RBI, for
classification of Non-performing assets the period of overdue advances has been reduced to 5 months, 4
months, 3 months effective from the financial years ending 31.03.2016, 31.03.2017 and 31.03.2018,
respectively. The company has been making necessary provision and classifying NPA as per the above
norms consistently as at the end of the applicable financial year in the accounts. Accordingly, the
provisioning and classification applying the norm of 3 months as above, will be made in the accounts as
on 31-3-2018, which is as per the legal opinion obtained by the company.
8. The Board of Directors has declared an interim dividend of Rs.10 per equity share of face value of Rs. 10
each in the meeting held on February 8, 2018.
Sd/-
DIN: 00016787
Page | D-6

Muthoot Finance Limited: Draft Shelf Prospectus March 12, 2018

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Draft Shelf Prospectus

March 12, 2018

MUTHOOT FINANCE LIMITED

DEFINITIONS / ABBREVIATIONS ............................................................................................................. 4

SECTION III: INTRODUCTION ............................................................................................................. 35

GENERAL INFORMATION ..................................................................................................................... 35

OUR BUSINESS ........................................................................................................................................... 74

TERMS OF THE ISSUE ............................................................................................................................. 129

PENDING PROCEEDINGS AND STATUTORY DEFAULTS ................................................................ 168

Issue related terms

ALCO Asset Liability Committee.

Conventional and general terms

 General economic and business conditions in India and globally;

Presentation of Financial Information

INTERNAL RISK FACTORS

Risks relating to our Business and our Company

Additional risks arising from increasing interest rates include:

vi. Other Instructions:

c. Documentation across all branches must be standardized.

The RBI vide notification number RBI/2013-14/435 DNBS.CC.PD.No.365/03.10.01/2013-14 dated

 consolidating and maintaining relationships with customers;

 consolidating and rationalising transaction processes and corporate and IT infrastructure;

 integrating employees and managing employee issues;

 achieving savings from infrastructure integration; and

 managing other business, infrastructure and operational integration issues.

1. Muthoot Vehicle & Asset Finance Limited

EXTERNAL RISK FACTORS

Risk factors related to India

Risks relating to the Issue and the NCDs

56. There may be a delay in making refund to Applicants.

Muthoot Finance Limited

Registration Number: 011300

Chief Financial Officer

Company Secretary and Compliance Officer

Edelweiss Financial Services Limited

A. K. Capital Services Limited

IDBI Trusteeship Services Limited

Registrar to the Issue

Link Intime India Private Limited

Varma & Varma

Credit Rating Agencies

Disclaimer clause of ICRA

Disclaimer clause of CRISIL

Legal Advisors to the Issue

AZB & Partners

Banker(s) to the Issue

As specified in the relevant Tranche Prospectus for each Tranche.

As specified in the relevant Tranche Prospectus for each Tranche.

As specified in the relevant Tranche Prospectus for each Tranche.

Self-Certified Syndicate Banks

Syndicate SCSB Branches

Utilisation of Issue proceeds

Our Board of Directors certify that:

ISSUE OPENS ON As specified in the relevant Tranche Prospectus

Common Terms of NCDs**

Issuer Muthoot Finance Limited

BSE shall be the Designated Stock Exchange for the Issue.

Details of share capital

A Authorised share capital