thAnnual Report 2017-18 · C-11, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051...

th4 Annual Report

2017-18

Give wings to your dreams

Principal Sponsors

Department of Financial Services

(Ministry of Finance)

Government of India

Auditors

ANM & Associates

Chartered Accountants

Registered Office

National Credit Guarantee Trustee Company Limited

(CIN: U65191MH2014GOI302620)

MSME Development Centre,

C-11, G Block, Bandra Kurla Complex,

Bandra (East), Mumbai – 400 051

Contact Details

Telephone : +91 22 67531194

Email : [email protected]

Website : www.ncgtc.in

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Contents

65

67

Board of Directors

Chairman's Statement

Notice of Annual General Meeting

Board's Report

Shareholding Pattern

Auditors' Report on Financial Statements

Comments of the Comptroller and Auditor General of India

Balance Sheet

Statement of Profit and Loss

Cash Flow Statement

Significant Accounting Policies and Notes to Accounts

Accounting Policies

Attendance Slip

Proxy Form

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NCGTC

th4 Annual Report 2017-18

Board of Directors

Shri Mohammad Mustafa, IASChairman

Shri Pankaj Jain, IAS

Director

Shri Sunil Mehta

Director

Shri C S Thanvi

Chief Executive Officer

3

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Chairman's Statement

Shri Mohammad Mustafa, IASChairman

I am happy to present the fourth Annual Report of NCGTC for the financial year ended March 31, 2018.

National Credit Guarantee Trustee Company Limited (NCGTC), having completed four years now, has

established itself as an important institution in channelizing lending to the unserved and under-served

sectors of the society who have lack of access to sufficient credit because of no collateral security. We hope

this would go a long way to promote the country's developmental and inclusive growth agenda of the

Government of India.

NCGTC has five credit guarantee trusts under its Management viz.

± Credit Guarantee Fund for Skill Development CGFSD) – for skill loans

± Credit Guarantee Fund for Educational Loan (CGFEL)- for education loans

± Credit Guarantee Fund for Factoring (CGFF) – for factoring/bill discounting loans

± Credit Guarantee Fund for Micro Units (CGFMU) – for micro loans, and;

± Credit Guarantee Fund for Stand-up India Loans (CGFSI) – for Standup India loans,

NCGTC facilitates higher flow of credit to marginalized, vulnerable and needy segments of the society and

enables achievement of the objective of faster, sustainable and inclusive growth. NCGTC believes that

facilitating guarantee to the targeted segment would be a key enabler for making credit available at an

affordable cost to diverse segments of beneficiaries.

Currently, NCGTC manages a cumulative corpus of more than `5500 crore out of the committed corpus of

`13,000 crore towards the Trusts under its Management. Four of the five credit guarantee schemes have

been operationalized and within two years, NCGTC has been able to cover a sum of about ̀ 50,000 crore of

sanctioned loan under its credit guarantee programme, reaching out to more than 30 lakh end users.

I would like to conclude by expressing my gratitude to our Board of Directors for their guidance and support.

I am also grateful to all our stake-holders for their valuable, timely and continuous support. I would also like

to compliment the Team NCGTC for its dedication and hard work.

Sd/-

(Mohammad Mustafa, IAS)

Chairman, NCGTC

4

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thNotice is hereby given that the 4 Annual General Meeting of NATIONAL CREDIT GUARANTEE TRUSTEE COMPANY

thLIMITED [NCGTC] will be held at Room No. 1108-10, 11 Floor, Antriksh Bhavan, 22, Kasturba Gandhi Marg, New

Delhi-110001on Monday, September 24,2018 at 4:00 p.m. to transact the following business:

ORDINARY BUSINESS:

st1. To receive, consider and adopt the Audited Financial Statement for the financial year ended 31 March, 2018

together with reports of the Board of Directors and Auditors thereon and Comments of the Comptroller &

Auditor General of India, in terms of Section 143(6) of the Companies Act, 2013.

To consider and if thought fit, to pass with or without modification(s), if any, the following resolution as an

ORDINARY RESOLUTION:

“RESOLVED THAT the Audited Financial Statement for the financial year ended March 31, 2018 together with

the Board's Report and Auditors' Report along with Notes which form an integral part of the Audited Annual

Accounts for the financial year and Comments of the Comptroller & Auditor General of India as already

circulated amongst the Members of the Company, be and are hereby received, considered, approved and

adopted.”

2. To take note of the appointment of Statutory Auditors of NCGTC and fixing their remuneration for FY 2018-19.

To consider and if thought fit, to pass with or without modification(s), if any, the following resolution as an

ORDINARY RESOLUTION:

“RESOLVED THAT pursuant to the provisions of Section 139(5), 142(1) and other applicable provisions of the

Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutory

modification(s) re-enactment(s) thereof for the time being in force), the consent of Members of the Company be

and is hereby accorded to authorise the Board of Directors of the Company to fix the remuneration of M/s. V C

Shah & Co, Chartered Accountants [Firm Registration No. BO0824] as appointed by Comptroller and Auditor

General of India as a Statutory Auditors to conduct the statutory audit of NCGTC for the financial year 2018-19.”

SPECIAL BUSINESS:

3. To consider the appointment of Shri Chandra Shekhar Thanvi (DIN: 00563531) as Director of the Company.

To consider and if thought fit, to pass with or without modification(s), the following resolution as an ORDINARY

RESOLUTION:

“RESOLVED THAT Shri Chandra Shekhar Thanvi (DIN: 00563531) who was appointed as an Additional Director

of the Company by the Board of Directors of the Company and who holds office up to the date of this Annual

General Meeting pursuant to the provisions of Section 161 of the Companies Act, 2013 ('the Act') read with

Article 31 of Articles of Association of the Company, be and is hereby appointed as Director of the Company.”

4. To consider the appointment of Shri Sunil Mehta (DIN: 07430460) as Director of the Company.

To consider and if thought fit, to pass with or without modification(s), the following resolution as an ORDINARY

RESOLUTION:

“RESOLVED THAT Shri Sunil Mehta (DIN: 07430460) who was appointed as an Additional Director of the

Company by the Board of Directors of the Company and who holds office up to the date of this Annual General

Meeting pursuant to the provisions of Section 161 of the Companies Act, 2013 ('the Act') read with Article 31 of

Articles of Association of the Company, be and is hereby appointed as Director of the Company.”

By Order of the Board of Directors

Registered office: For National Credit Guarantee Trustee Company Limited



Bandra (East), Mumbai – 400 051 Sd/-

Date: September 18, 2018C S Thanvi


(DIN: 00563531)

thNotice of the 4 Annual General Meeting

5

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Notes1. Members are requested to notify to the Company any change in their addresses specifying full

address in block letters with pin code of the post office.

2. A Member entitled to attend and vote at the Annual General Meeting (AGM) is entitled to appoint a

proxy to attend and vote instead of himself and the proxy need not be a Member of the Company.

The instrument appointing the proxy, in order to be effective, must be deposited at the Company's

Registered Office, duly completed and signed, not less than FORTY-EIGHT HOURS before

commencement of the meeting. A proxy form is sent herewith. Proxies submitted on behalf of limited

companies, societies etc., must be supported by appropriate resolutions/authority, as applicable.

A person can act as proxy on behalf of Members not exceeding fifty (50) and holding in the aggregate

not more than 10% of the total share capital of the Company carrying voting rights. A member holding

more than 10% of the total share capital of the Company carrying voting rights may appoint single

person as proxy and such person shall not act as proxy for any other person or shareholder.

3. For convenience of members, an attendance slip, proxy form and the route map of the venue of the

Meeting are annexed hereto. Members are requested to affix their signature at the space provided and

hand over the attendance slips at the place of meeting. The proxy of a member should mark on the

attendance slip as 'proxy'.

4. Pursuant to Section 139 of the Companies Act, 2013, the Auditors of the Company is to be appointed or

re-appointed by the Comptroller and Auditor General of India (C & AG) and in terms of sub-section (1) of

Section 142 of the Companies Act, 2013, their remuneration has to be fixed by the Company in the

Annual General Meeting or in such manner as the Company in General Meeting may determine.

M/s V C Shah & Co, Chartered Accountants, Mumbai have been appointed as the Statutory Auditors of

the Company for the F.Y. 2018-19 by C & AG vide their letter No. CA. V/COY/CENTRAL GOVERNMENT,

NCGTCL (1)/324 dated July 27, 2018. Accordingly, the Members may authorize the Board to fix an

appropriate remuneration of Statutory Auditors as may be deemed fit for the year 2018- 19.

5. The Register of Directors and their shareholding, maintained under Section 170 of the Companies Act,

2013, will be available for inspection by members.

6. An Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 is annexed with this

Notice.

7. Relevant documents referred to in accompanying Notice and Explanatory Statement shall be open for

inspection by the members at the Registered Office of the Company on all working days during

business hours up to and including the date of Annual General Meeting.

6

Explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013

Annexure to the Notice

Item No. 3

Shri Chandra Shekhar Thanvi has been appointed as Additional Director by the Board of Directors of

the Company at their meeting held on February 08, 2018 to hold the office upto the date of ensuing

Annual General Meeting.

Pursuant to Section 161(1) of the Companies Act, 2013 the above Director shall hold office upto the date of

ensuing AGM and is eligible for appointment as Director of the Company. Also, Shri Chandra Shekhar Thanvi

has been re-designated as Chief Executive Officer (CEO) and Whole time Director of NCGTC with effect from thFebruary 08, 2018, however pursuant to MCA notification vide G.S.R. 463(E) dated 05 June, 2015, sub-

section (2), (4) & (5) of Section 196 of the Companies Act, 2013, pertaining to approval from members, is not

applicable.

Shri Chandra Shekhar Thanvi is not disqualified from being appointed as a Director in terms of Section 164

of the Act and has given his consent to act as a Director.

The Board of Directors feel that it would be in the best interests of the Company to appoint the above as

Director of the Company in view of his extensive knowledge, experience, stature, etc.

Save and except Shri Chandra Shekhar Thanvi, none of the other Directors / Key Managerial Personnel of

the Company / their relatives are, in any way, concerned or interested, financially or otherwise, in the

resolution set out at Item No. 3 of the Notice.

The Board recommends the RESOLUTION at Item No. 3 for approval by the Members.

Item No. 4

Shri Sunil Mehta has been appointed as Additional Director by the Board of Directors of the

Company at their meeting held on September 18, 2018 to hold office upto the date of ensuing Annual

General Meeting.

Pursuant to Section 161(1) of the Companies Act, 2013 the above Director shall hold office upto the date of

ensuing AGM and is eligible for appointment as Director of the Company.

Shri Sunil Mehta is not disqualified from being appointed as a Director in terms of Section 164 of the Act and

has given his consent to act as a Director.

The Board of Directors feel that it would be in the best interests of the Company to appoint the above as

Director of the Company in view of his extensive knowledge, experience, stature, etc.

Save and except Shri Sunil Mehta, none of the other Directors / Key Managerial Personnel of the Company /

their relatives are, in any way, concerned or interested, financially or otherwise, in the resolution set out at

Item No. 4 of the Notice.

The Board recommends the RESOLUTION at Item No. 4 for approval by the Members.

By Order of the Board of Directors

For National Credit Guarantee Trustee Company Limited

Sd/-

C S Thanvi


(DIN: 00563531)

Registered office:



Bandra (East), Mumbai – 400 051

Date: September 18, 2018

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th4 Annual Report 2017-18 7

BOARD’S

REPORT

Board’s Report

To

The Members of

National Credit Guarantee Trustee Company LimitedthThe Board of Directors of the Company takes pleasure in presenting its 4 Report on the business of your

Company for the financial year ended March 31, 2018 together with the Audited Financial Statement and the stAuditors' Report for the financial year ended 31 March, 2018.

1. FINANCIAL HIGHLIGHTS AND REVIEW OF OPERATIONS:

National Credit Guarantee Trustee Company Limited (NCGTC) has been established by the Ministry of Finance, as a wholly owned company of Government of India (GoI), to act as a common trustee for multiple credit guarantee funds. It has been conceived to act as a single point operational entity for various credit guarantee programmes to be a cost effective alternative to achieve operational efficiencies and economies of scale through sharing of resources such as IT, premises, manpower, risk management, investment of corpus funds, publicity and awareness and other support services.

There are currently five Trusts under the Management of NCGTC viz. Credit Guarantee Fund Scheme for Educational Loans (CGFEL), Credit Guarantee Fund Scheme for Skill Development (CGFSD), Credit Guarantee Fund Scheme for Factoring (CGFF), Credit Guarantee Fund Scheme for Micro Units (CGFMU) and Credit Guarantee Fund Scheme for Stand-Up India (CGFSI).

Besides, the GoI has also announced a Credit Guarantee Fund for Start-ups, which the company expects to manage upon its establishment.

During the financial year under review, the Company earned total income of `691 lakh as against the income of `782 lakh in the previous year. After meeting all the expenses of the company, which amounted to `657 lakh (P.Y. `716 lakh), the company earned profit after tax of `28 lakh (P.Y. `53 lakh) for the year under review. The decline in profit is mainly due to following factors:

• During FY 2017-18, NCGTC earned an aggregate income of ̀ 61.98 lakh as compared to income of ̀ 224.16 lakh in FY 2016-17, which included an exceptional interest income of ̀ 137.78 lakh earned on the corpus of CGFMU. The net income from investment during FY 18 decreased to `61.98 as compared to `86.38 lakh in previous year FY 17.

• The reason for decrease in income from investment is the declining interest rate on fixed deposit and low dividend from mutual funds.

Particulars FY 2017-18 FY 2016-17

a] Income from operations

i) Management Fees from SIDBI PSIG RAF 10.00 10.00

ii) Management Fee received from Trusts under Management 429.19 386.33

iii) IT Infrastructure Support to SIDBI 189.92 162.09

b] Income from Investments (interest on FDR) 54.97 217.79

c] Other income 7.23 6.37

Total Income (a+b+c) 691.31 782.58

Less: Interest & other expenses

a] Operation and other expenses 411.14 516.07

b] Employee costs 222.89 183.34

c] Depreciation / Amortization 23.22 17.20

Total expenditure 657.25 716.61

Profit Before Tax 34.06 65.97

Less: Tax Expense

a] Current tax 5.13 11.17

b] Deferred tax 0.85 8.22

Adjustment for Short/(Excess) provision for tax for earlier years - (6.66)

Total Tax Expense 5.98 12.73

Profit After Tax 28.08 53.24

(` in lakh)

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2. STATE OF COMPANY'S AFFAIRS AND FUTURE OUTLOOK:

Since the inception of NCGTC in 2014, five credit guarantee trusts have been established under the trusteeship

management of NCGTC till date viz. CGFSD, CGFEL, CGFF, CGFMU and CGFSI. [Sixth Credit Guarantee Trust for

Start-up India is yet to be established]

Across these five trusts together, the disbursed budgetary corpus under the overall administrative management

of NCGTC adds up to more than ̀ 5,500 crore out of the total cumulative committed funds of ̀ 13,000 crore.

The network of lenders includes around 160 prospective member lenders cutting across various public sector

banks, private banks, foreign banks, NBFC-MFIs, other NBFCs, regional rural banks and cooperative banks. Apart

from managing these credit guarantee trusts and the respective schemes under them, NCGTC also extended its

support services to government institutions like SIDBI for managing its credit enhancement programmes.

With the help of B2B technology platform namely System for Underwriting Reassurance & Guarantee

Endorsement (SURGE), NCGTC could provide an end to end schematic design in a seamless manner across four of

the five trusts; viz. CGFEL CGFSD, CGFSI and CGFMU.

The continuous engagement with MLIs by way of intensive technical hand-holding support and capacity building

of its staff continued throughout the year. To begin with, specific SoPs were put in place at the end of MLIs to

operationalize the schemes. The year witnessed a rapid buildup of portfolios under CGFMU for Micro Loans and

CGFEL for Educational Loans. Guarantees under CGFSI (Stand-up India loans) has also started gaining traction

and is gradually picking up. Skill Loan being a new banking product, having overlapping feature with Educational

Guarantee Product, the pickup of guarantees under CGFSD has seen a slow start. The Factoring Guarantee

product has few important demand side issues which are being discussed with the industry stake-holders

including Receivable Exchange of India Ltd. (RXIL) and Factors/Bankers.

Cumulatively, about `50,000 crore of sanctioned loan amount has been covered under all the credit guarantee

programmes, reaching out to more than 30 lakh end users.

• Detailed status of the schemes under the Management of NCGTC are as follows:

(As on March 31, 2018)

5 Trusts arepresentlyunder the

Managementof NCGTC

Credit

Guarante

e

Fund for M

icro

Units

(CGFM

U)

Credit Guarantee

Fund for Factoring

(CGFF)

Credit GuaranteeFund for SkillDevelopment Loan(CGFSD)

Credit GuaranteeFund for Education

Loan (CGFEL)

Credit

Guarantee

Fund for

Stand UP

India

(CGFSI)

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55

46

2925

No. of MLI Registered ( Total : 155 )

Enrolled MLI Schemes Wise

CGFMU

CGFSI

CGFEL

CGFSD

All Schemes Wise Guarantees Issued

CGFMU

CGFEL

CGFSI

CGFSD

` 39,881.76

` 7,953.45

` 2,340.23` 26.50

Sanctioned Amount Covered Under Guarantee (Total : `50201.94)

(` in Crore)

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(i) Credit Guarantee Fund for Education Loans (CGFEL) -

l The Credit Guarantee Scheme for Educational Loans has been notified by GoI on September 16, 2015.

l Till now, 29 Member Lending Institutions have been registered under the Guarantee Scheme.

l Guarantees issued during FY 2017-18 as also Cumulative Guarantees issued till March 31, 2018 are as

follows:

MLI Name FY 2017-2018 Cumulative till 31.03.2018

No. of Loan Sanctioned SanctionedNo. of Loan

Records Amount AmountRecords

[` in crore] [` in crore]

Allahabad Bank 2,818 100.36 6,417 212.06

Andhra Bank 1,140 38.96 2,303 75.76

Bank of India 11,176 359.59 1,274 38.20

Bank of Baroda 989 29.61 20,823 645.00

Bank of Maharashtra 4,732 134.86 8,708 231.53

Canara Bank 28,192 793.92 39,598 1,108.28

Central Bank of India 1,366 46.50 1,383 47.18

Corporation Bank 2,463 84.74 5,064 170.34

Dena Bank 1,483 50.10 3,392 106.57

Dhanlaxmi Bank 1 0.01 2 0.04

Indian Bank 5,601 153.08 11,306 285.60

Indian Overseas Bank 6,685 167.46 6,685 167.46

Jammu & Kashmir Bank 17 0.82 17 0.82

Karnataka Bank Ltd. 820 27.02 1,361 43.70

Oriental Bank of Commerce 2,544 105.26 3,726 148.87

Punjab & Sind Bank 188 6.13 14,364 535.50

Punjab National Bank 7,508 298.65 338 10.83

State Bank of India 33,299 1,308.07 77,777 2,858.00

Syndicate Bank 20,034 532.80 20,034 532.80

Tamilnad Mercantile Bank Ltd. 438 9.26 954 19.49

UCO Bank 3,151 104.52 4,062 134.69

Union Bank of India 6,670 230.03 6,670 230.03

United Bank of India 651 24.98 1,710 59.93

Vijaya Bank 4,146 116.43 10,835 290.80

Total 1,46,112 4,723.15 2,48,803 7,953.45

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Female

Male

Transgender

CGFEL Gender Wise –No. of Guarantees Issued

CGFEL Ticket Size Wise – No. of Guarantees Issued

CGFEL Region Wise –No. of Guarantees Issued

122178

49%

43997

18%

32865

13%31448

13%

136235%

45932%

99

South India

West India

East India

North India

Central India

North East India

Lakshadweep / Andaman &

Nicobar Islands

9516338%

15360862%

32

Upto `4 lakh

`04-`7.5 lakh

20549783%

4330617%

15

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CGFEL Social Category Wise – No. of Guarantees Issued

CGFEL Religion Wise –No. of Guarantees Issued

CGFEL Loan Tenure Year Wise –No. of Guarantees Issued

General

OBC

Other

SC

ST

13113353%

5639123%

3802715%15337

6%79153%

HINDU

Other

CHRISTIAN

MUSLIM

SIKH

JAIN

BUDDHIST

PARSI / ZORASTRIAN

19756879%

2370310%14211

6%

109024%

14141%740

244

21

Upto 60 Months

60-120 Months

Beyond 120 Months

2416110%

9737339%

12726951%

16

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CGFEL Top – Bottom Analysis

Loan Amount Covered (` in crore)


TOP 5 STATES

TAMIL NADU 46,687 1,022.07

KARNATAKA 33,731 974.65

MAHARASHTRA 33,110 991.16

KERALA 25,238 768.00

UTTAR PRADESH 14,254 567.51

BOTTOM 5 STATES

LAKSHADWEEP 14 0.58

DAMAN AND DIU 19 0.78

DADRA AND NAGAR 21 0.62HAVELI

ANDAMAN AND 85 3.32NICOBAR ISLANDS

SIKKIM 87 2.84

17

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(ii) Credit Guarantee Fund for Skill Development (CGFSD) –

l The Credit Guarantee Scheme for Skill Development has been notified by GoI on November 20, 2015.


l Guarantees issued during FY 2017-18 as also Cumulative Guarantees issued till March 31, 2018

are as follows:





Allahabad Bank 24 0.21 100 0.60

Bank of India 505 6.04 20 0.22

Bank of Baroda 13 0.14 505 6.04

Canara Bank 721 6.49 721 6.49

Central Bank of India 72 0.69 72 0.69

Corporation Bank 50 0.48 82 0.80

Dena Bank 22 0.29 53 0.67

Indian Bank 33 0.32 91 0.78

Karnataka Bank Ltd. 5 0.04 8 0.05

Punjab & Sind Bank 1 0.01 378 3.78

Punjab National Bank 149 1.67 2 0.02

State Bank of India 248 3.03 307 3.71

Syndicate Bank 72 0.67 72 0.67

UCO Bank 20 0.22 20 0.22

Union Bank of India 79 0.85 79 0.85

Vijaya Bank 41 0.35 114 0.92

Total 2,055 21.50 2,624 26.50

18

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CGFSD Region Wise – No. of Guarantees Issued

CGFSD Gender Wise – No. of Guarantees Issued

CGFSD Social Category Wise – No. of Guarantees Issued

Lakshadweep / Andaman & Nicobar Islands

North East India

Central India

East India

North India

West India

South India1

1104%

150

6%

42016%

43117%

43116%

108141%

General

OBC

Other

SC

ST

127048%

45918%

62224%

1656%

1084%

1662 63%

Female

Male

962 37%

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CGFSD Religion Wise –No. of Guarantees Issued

CGFSD Top – Bottom Analysis

BUDDHIST

JAIN

SIKH

MUSLIM

CHRISTIAN

HINDU

Other

33

723%

138

5%

139

5%

108742%

118245%

TOP 5 STATES

BOTTOM 5 STATES


KERALA 677 7.73

WEST BENGAL 350 1.85

MAHARASHTRA 236 2.61

KARNATAKA 188 1.83

PUNJAB 173 2.22


LAKSHADWEEP 1 0.02


JAMMU AND KASHMIR 3 0.04

MIZORAM 3 0.03

NAGALAND 3 0.04

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(iii) Credit Guarantee Fund for Micro Units (CGFMU) -

l Credit Guarantee for Micro Units has been notified by GoI on April 18, 2016.


l Guarantees issued during FY 2017-18 as also Cumulative Guarantees issued till March 31, 2018

are as follows:





Allahabad Bank 82,519 1,062.90 82,519 1,062.90

Andhra Bank 1,25,767 1,715.52 2,64,329 3,015.50

Bank of Baroda 2,99,782 2,747.74 2,99,782 2,747.74

Bank of India 3,10,375 4,343.79 3,10,375 4,343.79

Bank of Maharashtra 14,839 250.60 48,674 716.79

Bihar Gramin Bank 5,594 28.42 5,594 28.42

Canara Bank 73,495 819.95 73,495 819.95

Central Bank of India 1,08,614 1,254.65 1,08,614 1,254.66

Corporation Bank 77,866 1,070.45 87,575 1,216.02

Dena Bank 2,716 34.48 8,754 94.57

Himachal Pradesh Gramin Bank 4,940 86.56 4,940 86.56

IDBI Bank Ltd 96,473 2,407.57 96,473 2,407.57

Indian Bank 40,388 649.05 40,388 649.05

Indian Overseas Bank 33,305 336.30 33,305 336.30

Kerala Gramin Bank 169 2.16 177 2.18

Madhya Bihar Gramin Bank 69,721 841.11 69,721 841.11

Maharashtra Gramin Bank 6,122 101.47 6,122 101.47

Oriental Bank of Commerce 76,701 1,034.25 76,701 1,034.26

Pragathi Krishna Gramin Bank 62,129 391.42 62,129 391.42

Puduvai Bharathiar Grama Bank 1,006 7.32 1,006 7.32

Punjab & Sind Bank 15,137 169.20 15,137 169.20

Punjab Gramin Bank 13,449 131.06 20,706 194.30

Punjab National Bank 3,12,695 4,745.51 3,12,695 4,745.52

Sarva Haryana Gramin Bank 2,144 12.73 2,144 12.73

State Bank of India 4,98,297 8,002.73 5,10,073 8,227.87

Sutlej Gramin Bank 344 2.08 344 2.08

Tamilnad Mercantile Bank Ltd. 2,132 25.71 2,132 25.71

The Catholic Syrian Bank Ltd. 31 0.68 31 0.68

The Nainital Bank Limited 2 0.12 2 0.12

UCO Bank 33,246 299.41 33,246 299.41

Union Bank of India 1,70,927 3,013.09 2,46,962 3,591.39

United Bank of India 53,846 910.17 53,846 910.17

Uttar Bihar Gramin Bank 7,985 50.77 7,985 50.77

Vijaya Bank 10,021 176.10 52,123 494.23

Grand Total 26,12,777 36,725.10 29,38,099 39,881.76

21

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CGFMU Region Wise - No. of Guarantees Issued

CGFMU Gender Wise – No. of Guarantees Issued

Central India

East India


North East India

North India

South India

West India

Female

Male

Transgender

66852

2%

752952 26%

2076127%

54586019%

5190

72948

2%

67522223%

84571029%

58555720%

General

OBC

Other

SC

ST

150273251%

46852916%

72018125%

1875886%

59069

2%

CGFMU Social Category Wise – No. of Guarantees Issued

22

2118295 72%

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CGFMU Loan Category Wise – No. of Guarantees Issued

Jandhan (Upto 5000)

Shishu (Upto 50000)

Kishor (Above 50000 – 500000)

Tarun (Above 500000 – 1000000)

1968907% 171753

6%

CGFMU Top – Bottom Analysis

UTTAR PRADESH 347,164

ANDHRA PRADESH 289,411

MAHARASHTRA 263,498

RAJASTHAN 191,996

KARNATAKA 180,091

TOP 5 STATES

BOTTOM 5 STATES

LAKSHADWEEP 130

DAMAN AND DIU 342

DADRA AND NAGAR HAVELI 566

ARUNACHAL PRADESH 1,333

NAGALAND 2,409

23

149153751%

107791936%

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(iv) Credit Guarantee Fund for Stand Up India (CGFSI) –

l Credit Guarantee Scheme for Stand Up India has been notified by GoI on April 25, 2016.


l Guarantees issued during FY 2017-18 as also Cumulative Guarantees issued till March 31, 2018 are

as follows:


No. of Loan Sanctioned SanctionedNo. of Loan Records Amount AmountRecords [` in crore] [` in crore]

Allahabad Bank 325 50.75 325 50.75

Andhra Bank 2,124 381.29 2,124 381.29

Axis Bank Ltd. 2 0.10 2 0.10

Bank of India 3,276 469.41 3,276 469.41

Canara Bank 251 41.41 251 41.41

Central Bank of India 475 92.46 475 92.46

Corporation Bank 158 28.84 158 28.84

IDBI Bank Ltd 465 55.59 465 55.59

Indian Bank 179 40.19 179 40.19

Jammu & Kashmir Bank 1 0.22 1 0.22

Madhya Bihar Gramin Bank 2 0.48 2 0.48

Oriental Bank of Commerce 154 35.02 154 35.02

Punjab & Sind Bank 40 5.68 40 5.68

Punjab National Bank 1,691 229.68 1,691 229.68

Sarva Haryana Gramin Bank 2 0.34 2 0.34

State Bank of India 2,497 492.95 2,874 554.43

The South Indian Bank Ltd. 10 3.76 10 3.76

UCO Bank 166 27.12 166 27.12

Union Bank of India 118 23.83 169 33.47

United Bank of India 1,569 239.32 1,569 239.32

Vijaya Bank 256 48.68 261 49.95

Yes Bank 4 0.72 4 0.72

Total 13,765 2,267.84 14,198 2,340.23

24

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CGFSI Region Wise – No. of Guarantees Issued

CGFSI Social Category Wise – No. of Guarantees Issued


North East India

Central India

West India

South India

North India

East India6585%

10507%

237817%

323423%

334523%

349725%

CGFSI Ticket Size Wise – No. of Guarantees Issued

SC

ST

Women190213%

7816%

1151581%

36

Upto 50 lakh

Above 50 -100 lakh

1385198%

3472%

25

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CGFSI Industry Wise – No. of Guarantees Issued

Manufacturing

Trading

Service Sector

Others

CGFSI Top – Bottom Analysis

26

392928%

418229%

467333%

141410%



TOP 5 STATES

WEST BENGAL 1,874 262.41

UTTAR PRADESH 1,460 203.48

MAHARASHTRA 1,181 205.82

TELANGANA 969 216.90

ANDHRA PRADESH 812 167.77

DAMAN AND DIU 3 1.09


MIZORAM 8 1.15

ARUNACHAL PRADESH 17 2.98

PUDUCHERRY 20 2.89

BOTTOM 5 STATES

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(v) Credit Guarantee Fund for Factoring (CGFF) -

l The Credit Guarantee Scheme for Factoring has been notified by GoI on September 22, 2015.

l Till date, 4 Member Institutions have been registered under the Guarantee Scheme.

l Cumulative Guarantees Issued till date: No credit guarantee proposals has been received so far from

MLIs.

• Status of some of the other activities undertaken in NCGTC during F.Y. 2017-18

(i) Vigilance Awareness at NCGTC

l As per directions of Central Vigilance Commission (CVC), Vigilance Awareness Week was observed

at NCGTC during October 30, 2017 to November 04, 2017 with the theme "My Vision - Corruption Free

India."

l On October 30, 2017, the team at NCGTC led by Shri Vinay Hedaoo, erstwhile CEO, NCGTC pledged

to fight against corruption.

(ii) Meeting with Officers from Deposit and Credit Guarantee Fund (DCGF), Nepal and Ministry of

Finance, Kathmandu, Nepal

l Meeting with Board Members of Deposit and Credit Guarantee Fund (DCGF), Nepal and Officers

from Ministry of Finance, Kathmandu, Nepal was held on January 10, 2018.

l Smt. Rajni Sood, GM, NCGTC attended the meeting along with Shri Aniruddha Bagchi and Shri

Dharmendra Saxena, erstwhile DGM and AGM, NCGTC respectively.

l The delegates from DCGF visited bakery and paper packets units, alongwith NCGTC officials.

(iii) Hand holding sessions with Member Lending Institutions

l A total of around 160 Member Lending Institutions (MLIs) have been registered across all credit

guarantee schemes. During the year, NCGTC officials undertook extensive sessions with registered

Member Lending Institutions (MLIs) for operationalization of the schemes under its management.

NCGTC also engaged actively with the registered MLIs for one-to-one technical hand-holding

sessions and has also planned a multi-pronged information dissemination strategy.

(iv) Future Outlook

l With the first claim settlement under MUDRA scheme during F.Y. 2017-18, the Guarantee

operations through various MLIs will enable NCGTC an access to data repository for gauging the

trend and fixing risk premium across MLIs, as also to understand the specializations of such MLIs in

serving the target groups. Analytics are slowly evolving which are expected to provide critical insight

to policy makers in improving upon the scheme.

l NCGTC aims to issue 60 lakh credit guarantees by FY 2019 across various Trusts under its

Management, touching a guarantee coverage of about ̀ 1 lakh crore.

l NCGTC also desires to create awareness towards all the credit guarantee schemes under its

Management, to meet the underlying objective of economic development and inclusive growth of

the policy makers.

l Broad basing of the Pool of the MLIs will remain primary activity to further enhance the credit

guarantee coverage under NCGTC.

3. DIVIDEND:

In view of the fact that the company is still in the initial phase of the operations and with a view to conserve the

liquidity at this stage, to strengthen the company's financial position, your Directors have not recommended

any dividend to equity shareholders during the year under review.

4. DIRECTORS:

l Shri Pradeep Malgaonkar continued as CEO of NCGTC till August 18, 2017, when he was repatriated to SIDBI.

l Shri Vinay Hedaoo was appointed as CEO of the Company with effect from August 22, 2017 till January 22, 2018.

l Shri Mohammad Mustafa, IAS was inducted as the Chairman of NCGTC with effect from September 22, 2017.

l Shri Rajeev Rishi, the then Chairman IBA was a Director from November 04, 2016 to December 19, 2017.

He was replaced by Shri Jatinderbir Singh, IAS, the then Chairman IBA, inducted as an Additional

Director on the Board of NCGTC with effect from December 19, 2017, who resigned from directorship

on account of superannuation on December 31, 2017.

27

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l Shri Vinay Hedaoo resigned as CEO of NCGTC with effect from January 25, 2018 due to repatriation to SIDBI.

l Shri Chandra Shekhar Thanvi was inducted as an Additional Director on Board of the Company and

subsequently re-designated as CEO and Whole time Director of NCGTC with effect from February 08, 2018.

l Smt. Usha Ananthasubramanian, Chairman IBA was inducted as an Additional Director of NCGTC with

effect from February 08, 2018.

[Smt. Usha Ananthasubramanian, the then Chairman IBA ceases to be Additional Director of NCGTC

with effect from September 18, 2018. ]

l Shri Sunil Mehta, Chairman IBA was inducted as Additional Director on the Board of NCGTC on

September 18, 2018 who shall hold office upto the date of the ensuing Annual General Meeting of

NCGTC and shall be eligible for appointment as a Director at the meeting.

5. CHANGES IN SHARE CAPITAL, IF ANY:

There was no change in the Share Capital during the year under review.

6. MATERIAL CHANGES AND COMMITMENTS:

No material changes and commitments affecting the financial position of the Company occurred between

the end of the financial year to which this financial statement relates and the date of this report.

7. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL:

No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going

concern status and Company's operations in future.

8. INFORMATION ABOUT SUBSIDIARY/ JV/ ASSOCIATE COMPANY:

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

9. EXTRACT OF ANNUAL RETURN:

The Extract of Annual Return pursuant to the provisions of Section 92(3) of the Companies Act, 2013 read with

Rule 12 (1) of the Companies (Management and Administration) Rules, 2014, in Form MGT-9 is annexed as

(Annexure I) for your kind perusal and information. The Extract of Annual Return is also available on the

Company's website http://ncgtc.in/en/annual-reports.

10. MEETINGS OF THE BOARD OF DIRECTORS:

During the Financial Year 2017-18, the Company held 5 meetings of the Board of Directors.

A calendar of meetings is prepared and circulated in advance to the Directors.

Name of Director (S/Shri/Smt.) 29.06.2017 22.08.2017 22.09.2017 19.12.2017 08.02.2018

Shri Mohammad Mustafa (*) NA NA ü ü ü

Shri Pankaj Jain ü ü ü ü ü

Shri Pradeep Malgaonkar(**) ü ü NA NA NA

Shri Rajeev Rishi(***) ü ü ü NA NA

Shri Vinay Hedaoo(****) NA ü ü ü NA

Shri Jatinderbir Singh (#) NA NA NA ü NA

Shri C S Thanvi(##) NA NA NA NA ü

Smt. Usha Ananthasubramanian (###) NA NA NA NA ü

(*) appointed on September 22, 2017

(**) resigned on August 18, 2017

(***) resigned on December 07, 2017

(****) appointed on August 21, 2017 and resigned on January 25, 2018

(#) appointed on December 19, 2017 and resigned on December 31, 2017

(##) appointed on February 08, 2018

(###) appointed on February 08, 2018 till September 18, 2018

The necessary quorum was present for all the meetings.

28

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11. DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to the provisions of Section 134(5) of the Companies Act, 2013, with respect to Directors'

Responsibility Statement, it is hereby confirmed that:

(a) In the preparation of the annual accounts, the applicable accounting standards have been followed

along with proper explanation relating to material departures;

(b) The directors have selected such accounting policies and applied them consistently and made

judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of

affairs of the company at the end of the financial year and of the profit and loss of the company for that period;

(c) The directors have taken proper and sufficient care for the maintenance of adequate accounting records

in accordance with the provisions of this Act for safeguarding the assets of the company and for

preventing and detecting fraud and other irregularities;

(d) The directors have prepared the annual accounts on a going concern basis;

(e) The directors have laid down internal financial controls to be followed by the company to the extent

possible and that such internal financial controls are adequate and were operating effectively;

(f) The directors have devised proper systems to ensure compliance with the provisions of all applicable

laws and that such systems were adequate and operating effectively.

12. STATUTORY AUDITORS:

M/s. ANM & Associates, Chartered Accountants, had been appointed by the Comptroller and Auditor

General of India (C&AG) as the Statutory Auditors of your Company for the financial year 2017-18 under the

provisions of Section 139 (5) of the Companies Act, 2013. The firm will hold office till conclusion of the ensuing

Annual General Meeting. For the financial year 2018-19, C&AG has appointed M/s. V.C. Shah & Company,

Mumbai as Statutory Auditors.

C&AG Audit: The Comptroller and Auditor General of India (C&AG) has no comment upon or supplement to

the Statutory Auditors' Report on the Accounts for the year ended March 31, 2018. The letter from C&AG is

annexed as Annexure II.

13. AUDITORS' REPORT:

The Statutory Auditors of the Company have given an unqualified report under section 143(5) of the

Companies Act, 2013 on the accounts of the Company for the financial year 2017-18.st Further, the Auditors' Report for the financial year ended, 31 March, 2018 is annexed herewith

(as Annexure III) for your kind perusal and information.

14. INTERNAL AUDITORS:

M/s. Batliboi & Purohit, Chartered Accountants who had been appointed as Internal Auditors of your

Company, have carried out internal audit for the financial year 2017-18.

The internal audit reports, were duly presented to the Board.

15. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND:

The provisions of Section 125 (2) of the Companies Act, 2013 are not applicable as no dividend was declared

during the year under review.

16. PARTICULARS OF EMPLOYEES PURSUANT TO THE COMPANIES (APPOINTMENT AND REMUNERATION

OF MANAGERIAL PERSONNEL) RULES, 2014:th The Company has only a Company Secretary on its Pay-roll, on contract, who was appointed w.e.f. 15 May,

2017. Other Staff engaged at the Company are either on deputation from SIDBI or from Outsourced Agency.

Further, the provisions of Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies

(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not applicable to the Company.

17. LOANS, GUARANTEES AND INVESTMENTS:

There were no loans, guarantees or investments made by the Company under Section 186 of the Companies

Act, 2013 during the year under review and hence the said provision is not applicable.

18. CORPORATE SOCIAL RESPONSIBILITY:

The provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility were not

applicable to the Company for the financial year 2017-18.

29

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19. COMPLIANCE WITH THE SEXUAL HARRASEMENT OF WOMEN AT WORKPLACE (PREVENTION,

PROHIBITION & REDRESSAL) ACT, 2013:

The Company is committed to prevent sexual harassment of women at workplace and shall ensure prompt

action in the event of reporting of such incidents. In this regard, the Board has adopted the policy and

constituted the internal complaints committee to deal with sexual harassment complaints, if any and

conduct enquiries.

20. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:

The details of conservation of energy, technology absorption, foreign exchange earnings and outgo are as

follows:

A. Conservation of Energy:

The Company operates in an energy efficient environment. Energy efficient equipment are installed in the

office for optimum conservation of energy.

B. Absorption of Technology:

The entire operations of the Company are based on shared cloud computing environment. Cloud computing

is one of the emerging technologies. The Company benefits in terms of cost reduction (no additional capital

expenditure) and better productivity on day to day operations with greater flexibility in capacity, operational

place and time.

C. Foreign Exchange Earnings And Outgo:

There were no foreign exchange earnings and outgo during the year under review.

21. RISK MANAGEMENT:

The Company does not have any Risk Management Policy at present, as the elements of risk threatening the

Company's existence are very minimal.

22. DEPOSITS:

During the year under review, your Company has not accepted any deposits within the meaning of Section 73

of the Companies Act, 2013.

23. SHARES:

A. BUY BACK OF SECURITIES

The Company has not bought back any of its securities during the year under review.

B. SWEAT EQUITY

The Company has not issued any Sweat Equity Shares during the year under review.

C. BONUS SHARES

No Bonus Shares were issued during the year under review.

D. EMPLOYEES STOCK OPTION PLAN

The Company has not provided any Stock Option Scheme to the employees of the Company.

24. ACKNOWLEDGEMENT:

Your Directors wish to express their grateful appreciation to the continued co-operation received from the

Banks and Government Authorities, during the year under review. Your Directors also wish to place on record

their deep sense of appreciation for the committed service put in by the staff of the Company.

For & on behalf of the Board of Directors

Sd/-

Mohammad Mustafa, IAS

Chairman

DIN: 06887517

Sd/-

Date: September 18 , 2018 C S Thanvi

Place: Mumbai Chief Executive Officer

DIN: 00563531

30

EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2018

Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the Company

(Management & Administration) Rules, 2014

I. REGISTRATION AND OTHER DETAILS:

CIN U65191MH2014GOI302620

Registration Date 28/03/2014

Name of the Company NATIONAL CREDIT GUARANTEE TRUSTEE COMPANY LIMITED

Category/Sub-category of the Company UNION GOVERNMENT COMPANY/LIMITED BY SHARES

Address of the Registered office & MSME DEVELOPMENT CENTRE, C-11, G BLOCK, BANDRA

contact details KURLA COMPLEX, BANDRA (EAST), MUMBAI - 400 051

Telephone No.: 022-67531194

Email : [email protected]

Whether listed company NO

Name, Address & contact details of the NA

Registrar & Transfer Agent, if any

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

Sr. No. Name and Description of main NIC Code of the % to total turnover of the company

products / services products / service

1 To operate various credit guarantee

funds set up / being set up/ to be set

up by Govt. of India, other national or

international bodies.

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:

Sr. No. Name and Address of the Company CIN/GLN % of Shares held Applicable Section

1. NOT APPLICABLE

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category-wise Share Holding

No. of Shares held at the beginning No. of Shares held for the period % ChangeCategory of of the year [As on 01-04-2017] ended [As on 31-March-2018]

during Shareholders the year Demat Physical Total % of Total Demat Physical Total % of Total

Shares Shares

A. Promoters

(1) Indian

a) Individual/ HUF 0 0 0 0 0 0 0 0 0

b) Central Govt. 0 1,00,00,000 1,00,00,000 100 0 1,00,00,000 1,00,00,000 100 0

c) State Govt.(s) 0 0 0 0 0 0 0 0 0

d) Bodies Corp. 0 0 0 0 0 0 0 0 0

e) Banks / FI 0 0 0 0 0 0 0 0 0

f) Any other 0 0 0 0 0 0 0 0 0

Sub Total (A) (1) 0 1,00,00,000 1,00,00,000 100 0 1,00,00,000 1,00,00,000 100 0

(2) Foreign

(a) NRIs - Individuals 0 0 0 0 0 0 0 0 0

821 100%

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No. of Shares held at the beginning No. of Shares held for the period % ChangeCategory of of the year [As on 01-04-2017] ended[As on 31-March-2018]

during Shareholders the year Demat Physical Total % of Total Demat Physical Total % of Total Shares Shares

(b) Other - Individuals 0 0 0 0 0 0 0 0 0

(c) Bodies Corp. 0 0 0 0 0 0 0 0 0

(d) Banks/FI 0 0 0 0 0 0 0 0 0

(e) Any other 0 0 0 0 0 0 0 0 0

Sub-total (A) (2) 0 0 0 0 0 0 0 0 0

Total shareholding of 0 1,00,00,000 1,00,00,000 100 0 1,00,00,000 1,00,00,000 100 0Promoter (A) = (A) (1)+(A) (2)

B. Public Shareholding

1. Institutions

a) Mutual Funds 0 0 0 0 0 0 0 0 0

b) Banks / FI 0 0 0 0 0 0 0 0 0

c) Central Govt. 0 0 0 0 0 0 0 0 0

d) State Govt.(s) 0 0 0 0 0 0 0 0 0

e) Venture Capital Funds 0 0 0 0 0 0 0 0 0

f) Insurance Companies 0 0 0 0 0 0 0 0 0

g) FIIs 0 0 0 0 0 0 0 0 0

h) Foreign Venture 0 0 0 0 0 0 0 0 0 Capital Funds

i) Others (specify) 0 0 0 0 0 0 0 0 0

Sub-total (B)(1):- 0 0 0 0 0 0 0 0 0

2. Non-Institutions

a) Bodies Corp. 0 0 0 0 0 0 0 0 0

i) Indian 0 0 0 0 0 0 0 0 0

ii) Overseas 0 0 0 0 0 0 0 0 0

b) Individuals 0 0 0 0 0 0 0 0 0

i) Individual share

holders holding 0 0 0 0 0 0 0 0 0nominal share capital up to ` 1 lakh

ii) Individual share 0 0 0 0 0 0 0 0 0holders holding nominal share capital in excess of `1 lakh

c) Others (specify) 0 0 0 0 0 0 0 0 0

Non Resident Indians 0 0 0 0 0 0 0 0 0

Overseas Corporate 0 0 0 0 0 0 0 0 0Bodies

Foreign Nationals 0 0 0 0 0 0 0 0 0

Clearing Members 0 0 0 0 0 0 0 0 0

Trusts 0 0 0 0 0 0 0 0 0

Foreign Bodies - D R 0 0 0 0 0 0 0 0 0

Sub-total (B)(2):- 0 0 0 0 0 0 0 0 0

Total Public Share 0 0 0 0 0 0 0 0 0holding (B)=(B)(1)+(B)(2)

C. Shares held by 0 0 0 0 0 0 0 0 0Custodian for GDRs & ADRs

Grand Total (A+B+C) 0 1,00,00,000 1,00,00,000 100 0 1,00,00,000 1,00,00,000 100 0

32

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NIL NIL

ii. Shareholding of Promoters

S.

% change in Shareholder's

No. Shareholding at the beginning Shareholding at the end

shareholding Name

of the year [01/04/2017] of the year [31/03/2018]

during the

year No. of % of total %of Shares No. of % to total %of Share Shares Shares of Pledged / Shares shares of Pledged / the encumbered the encumbered company Shares company total Shares

1 President of India 99,99,999 100 0 99,99,999 100 0 0

2 Ms. Sindhu Pillai A. 1 0 0 1 0 0 0 [Being nominee of Government of India (Department of Financial services, MoF)]

Total 1,00,00,000 100 0 1,00,00,000 100 0 0

iii Change in Promoters' Shareholding (please specify, if there is no change)

S. Shareholding at Cumulative Shareholding

Particulars

No. the beginning of during the year

the year [01/04/2017] [31/03/2018]

No. of shares % of total No. of shares % of total

shares of the shares of the

company company

1. Name of Promoter: President of India

At the beginning of the year 99,99,999 100

Date wise Increase / Decrease in Promoters NIL NIL

Shareholding during the year specifying the

reasons for increase / decrease (e.g.

allotment /transfer / bonus/ sweat equity

etc.):

At the end of the year 99,99,999 100 99,99,999 100

2. Name of Promoter: Ms. Sindhu Pillai A.

[Being nominee of Government of India (Department of Financial services, MoF)]

At the beginning of the year 1 -

Date wise Increase/Decrease in

Promoters Shareholding during the

year specifying the reasons for increase/

decrease (e.g.allotment/transfer /

bonus/ sweat equity etc.):

At the end of the year 1 0 1 0

There is no change in promoter's shareholding.

33

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v. Shareholding of Directors and Key Managerial Personnel:

S No. Shareholding at the Cumulative Shareholding

For each of the Directors

and Key Managerial

beginning of the year during the year

Personnel

No. of shares % of total No. of shares shares of the

shares of the % of total

company company

At the beginning of the year 0 0 0 0

Date wise Increase / Decrease in

Promoters Shareholding during

the year specifying the reasons for

increase /decrease (e.g. allotment

/transfer/bonus/sweat equity

etc.):

At the end of the year 0 0 0 0

NOT APPLICABLE

iv. Shareholding Pattern of top ten Shareholders:

(Other than Directors, Promoters and Holders of GDRs and ADRs)

S. Shareholding at the Cumulative Shareholding

For Each of the Top 10 No. beginning of the year during the Year

Shareholders No. of shares % of total No. of shares % of total shares of the shares of the company company

1 At the beginning of the year

2 Date wise Increase / Decrease in

Promoters Shareholding during the

year specifying the reasons for

increase /decrease (e.g. allotment /

transfer / bonus/ sweat equity etc.):

3 At the end of the year

0 0 0 0

34

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment:

Particulars Secured Loans Unsecured Loans Deposits Total Indebtedness

excluding deposits

Indebtedness at the beginning 0 0 0 0

of the financial year

i) Principal Amount 0 0 0 0

ii) Interest due but not paid 0 0 0 0

iii) Interest accrued but not due 0 0 0 0

Total (i+ ii + iii) 0 0 0 0

Change in Indebtedness during

the financial year 0 0 0 0

* Addition 0 0 0 0

* Reduction 0 0 0 0

Net Change 0 0 0 0

Indebtedness at the end of

the financial year

i) Principal Amount 0 0 0 0

ii) Interest due but not paid 0 0 0 0

iii) Interest accrued but not due 0 0 0 0

Total (i+ ii + iii) 0 0 0 0

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-

A. REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND/OR MANAGER:

(Amount in `)

S. No. Particulars of Remuneration Name of MD/WTD/Manager Total Amount

1 Gross Salary

(a) Salary as per provisions contained in section 0 0 0 0 0

17(1) of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2) Income-tax 0 0 0 0 0

Act, 1961

(c) Profits in lieu of salary under section 17(3) 0 0 0 0 0

Income Tax Act, 1961

2 Stock Option 0 0 0 0 0

3 Sweat Equity 0 0 0 0 0

4 Commission

- as % of profit

- others, specify… 0 0 0 0 0

5 Others, please specify 0 0 0 0 0

Total (A) 0 0 0 0 0

Ceiling as per the Act 0 0 0 0 0

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B. REMUNERATION TO OTHER DIRECTORS:

(Amount in `)

S.No. Particulars of Remuneration Name of Directors Total Amount

1 Independent Directors

Fee for attending board committee meetings 0 0 0 0 0

Commission 0 0 0 0 0

Others, please specify 0 0 0 0 0

Total (1) 0 0 0 0 0

2 Other Non-Executive Directors

Fee for attending board committee meetings 0 0 0 0 0

Commission 0 0 0 0 0

Others, please specify 0 0 0 0 0

Total (2) 0 0 0 0 0

Total (B)=(1+2) 0 0 0 0 0

Total Managerial Remuneration 0 0 0 0 0

Overall Ceiling as per the Act 0 0 0 0 0

36

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD /MANAGER/WTD:

S. Particulars of Key Managerial PersonnelNo. Remuneration

CEO*

Pradeep Vinay Hedaoo Chandra Shekhar

Malgaonkar (from August Thanvi (from CS CFO Total (upto August 21, 2017 to January 23, 2018 18, 2017) January 23, 2018) onwards)

1 Gross salary

(a) Salary as per provisions 16,25,413 19,46,933 11,38,055 369,194 0 50,79,595

contained in section 17(1)

of the Income-tax Act, 1961

(b) Value of perquisites u/s 0 0 0 0 0 0

17(2) Income-tax Act, 1961

(c) Profits in lieu of salary 0 0 0 0 0 0

under section 17 (3)

Income- tax Act, 1961

2 Stock Option 0 0 0 0 0 0

3 Sweat Equity 0 0 0 0 0 0

4 Commission 0 0 0 0 0 0

- as % of profit 0 0 0 0 0 0

Others, specify… 0 0 0 0 0 0

5 Others, please specify 0 0 0 0 0 0

Total 16,25,413 19,46,933 11,38,055 369,194 0 50,79,595

* The Chief Executive Officer posted at NCGTC is on deputation from SIDBI. The salary paid to the

Chief Executive Officer has been reimbursed to SIDBI.

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VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Details of Penalty Authority Appeal made,

Companies Act Description /Punishment/ [RD / NCLT/ if any

Compounding COURT] (give Details)

fees imposed

A. COMPANY

Penalty

Punishment N.A.

Compounding

B. DIRECTORS

Penalty

Punishment N.A.

Compounding

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment N.A.

Compounding

For & on behalf of the Board of Directors

Sd/-

Mohammad Mustafa, IAS

Chairman

DIN: 06887517

Sd/-

C S Thanvi


DIN: 00563531

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S. No. Shareholder's Name No. of Shares Face Value [IN INR] Nominal Amount [In INR]

1 President of India 99,99,999 10.00 9,99,99,990.00

2 Ms. Sindhu Pillai A. 1 10.00 10.00

(Being Nominee of

Govt. of India)

Total 1,00,00,000 10.00 10,00,00,000.00

For National Credit Guarantee Trustee Company Limited

Sd/-

C S Thanvi


DIN: 00563531

38

List of Shareholders as on March 31, 2018

ACCOUNTS STATEMENT FOR THE

FINANCIAL YEAR 2017 - 18

F loh wsaC

tee

hS

ec nal aB

FinancialStatements

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Independent Auditor’s Report

To the Members of

NATIONAL CREDIT GUARANTEE TRUSTEE COMPANY LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of NATIONAL CREDIT GUARANTEE

TRUSTEE COMPANY LIMITED (“the Company”) which comprise the Balance Sheet as at March 31, 2018, the

Statement of Profit and Loss, Cash Flow Statement for the year then ended and a summary of significant

accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,

2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and

fair view of the financial position, financial performance and cash flows of the Company in accordance with the

accounting principles generally accepted in India, including the Accounting Standards specified under Section

133 of the Act, (read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes

maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the

assets of the Company and for preventing and detecting frauds and other irregularities; selection and

application of appropriate accounting policies; making judgments and estimates that are reasonable and

prudent; and design, implementation and maintenance of adequate internal financial controls, that were

operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the

preparation and presentation of the standalone financial statements that give a true and fair view and are free

from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which

are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the

Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to

obtain reasonable assurance about whether the standalone financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in

the standalone financial statements. The procedures selected depend on the auditor's judgment, including the

assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud

or error. In making those risk assessments, the auditor considers internal financial control relevant to the

Company's preparation of the standalone 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

the Company's Directors, as well as evaluating the overall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion on the standalone financial statements.

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Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid

standalone financial statements give the information required by the Act in the manner so required and give a

true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of

the Company as at March 31, 2018, and its Profit and its Cash Flow for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor's Report) Order, 2016 (“the Order”) issued by the Central Government

of India, in terms of Section 143(11) of the Act, we give in “Annexure A” a statement on the matters specified in

paragraphs 3 and 4 of the Order.

2. As required by section 143 (5) of the Act, we report that:

(a) Company is not owning freehold / leasehold land as on the date of balance sheet.

(b) There are no cases of waiver / write off of debts/loans/interest during the year under audit.

(c) Company has no inventories lying with third parties and assets received as gift/grants from

Government or other authorities.

3 As required by Section 143 (3) of the Act, based on our audit, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge

and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it

appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement dealt with by this Report are

in agreement with the relevant books of account.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards

specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

st (e) On the basis of the written representations received from the directors as on 31 March, 2018 taken on strecord by the Board of Directors, none of the directors is disqualified as on 31 March, 2018 from being

appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company

and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”. Our report

expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal

financial controls over financial reporting.

(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and

according to the explanations given to us:

i) The Company does not have any pending litigations which would impact its financial position;

ii) The Company did not have any long-term contracts including derivative contracts for which there were any

material foreseeable losses.

iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund

by the Company.

For and on behalf of ANM & Associates


Firm's registration number: 008263N

Sd/-

Rajendra V. MahimkarPartner

Membership number: 032513rdDate : 23 May, 2018.

Place : Mumbai.

42

“ Annexure A” to the Independent Auditor's Report

(Referred to in paragraph 1 under the heading 'Report on Other Legal & Regulatory Requirement' of our

report of even date to the standalone financial statements of the Company for the year ended March 31,

2018.)

1) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details

and situation of fixed assets;

(b) The Fixed Assets have been physically verified by the management at regular intervals, which in our

opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant

to the program, the fixed assets have been physically verified by the management during the year

and no material discrepancies between the book records and the physical fixed assets have been

noticed.

2) The Company is having service activities only; and hence it does not hold any inventory. Therefore

the provisions of clause (ii) of the Order are not applicable.

3) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability

partnerships or other parties covered in the Register maintained under section 189 of the Act.

4) In our opinion and according to the information and explanations given to us, the Company has

complied with the provisions of section 185 and 186 of the Companies Act, 2013, in respect of loans,

investments, guarantees, and security.

5) According to the information and explanations given to us, the Company has not accepted any

deposits during the year. Therefore, the provisions of clause (v) of the Order are not applicable.

6) As informed to us, the maintenance of Cost Records has not been specified by the Central

Government under sub-section (1) of Section 148 of the Companies Act, 2013 in respect of the

activities carried on by the company.

7) (a) According to information and explanations given to us and on the basis of our examination of the

books of account, and records, the Company has been generally regular in depositing undisputed

statutory dues, to the extent applicable, including Provident Fund, Employees State Insurance,

Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any

other statutory dues with the appropriate authorities. According to the information and

explanations given to us, no undisputed amounts payable in respect of the above were in arrears as

at March 31, 2018 for a period of more than six months from the date on when they become payable.

(b) According to the information and explanation given to us, there are no dues of applicable taxes and

duties of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax

outstanding on account of any dispute.

8) In our opinion and according to the information and explanations given to us, the Company has not

defaulted in the repayment of dues to banks. The Company has not taken any loan either from

financial institutions or from the government and has not issued any debentures.

9) Based upon the audit procedures performed and the information and explanations given by the

management, during the year under audit, the company has not raised moneys by way of initial

public offer or further public offer (including debt instruments) and term Loans. Accordingly, the

provisions of clause (ix) of the Order are not applicable to the Company and hence not commented

upon.

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management, we report that no fraud by the Company or on the company by its officers or

employees has been noticed or reported during the year.


management, the managerial remuneration has been paid or provided in accordance with the

requisite approvals mandated by the provisions of section 197 read with Schedule V to the

Companies Act 2013.

12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause (xii) of the

Order are not applicable to the Company.

13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188

of Companies Act, 2013 and the details have been disclosed in the standalone Financial Statements

as required by the applicable accounting standards.


management, the company has not made any preferential allotment or private placement of

shares or fully or partly convertible debentures during the year under review. Accordingly, the

provisions of clause (xiv) of the Order are not applicable to the Company and hence not

commented upon.


management, the company has not entered into any non-cash transactions with directors or

persons connected with him. Accordingly, provisions of section 192 of the Companies Act, 2013 are

not applicable to the Company and hence not commented upon.

16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank

of India Act, 1934 and accordingly, the provisions of clause (xvi) of the Order are not applicable to

the Company and hence not commented upon.

For and on behalf of

ANM & Associates



Sd/-

Rajendra V. Mahimkar

Partner

Membership number: 032513rdDate : 23 May, 2018.

Place : Mumbai.

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“ Annexure B” to the Independent Auditor's Report

(Referred to in paragraph 3(f) under 'Report on Other Legal and Regulatory Requirements of our report of

even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of

Section 143 of the Companies Act, 2013 ('the Act')

We have audited the internal financial controls over financial reporting of NATIONAL CREDIT GUARANTEE

TRUSTEE COMPANY LIMITED (“the Company”) as of March 31, 2018 in conjunction with our audit of the

standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls

based on the internal control over financial reporting criteria established by the Company considering the

essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls

over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities

include the design, implementation and maintenance of adequate internal financial controls that were

operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to

company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the

accuracy and completeness of the accounting records and the timely preparation of reliable financial

information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial

reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of

Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing,

issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent

applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we

comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about

whether adequate internal financial controls over financial reporting was established and maintained and if

such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal

financial controls system over financial reporting and their operating effectiveness. Our audit of internal

financial controls over financial reporting included obtaining an understanding of internal financial controls

over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the

design and operating effectiveness of internal control based on the assessed risk. The procedures selected

depend on the auditor's judgment, including the assessment of the risks of material misstatement of the

standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and the preparation of standalone financial

statements for external purposes in accordance with generally accepted accounting principles.

A company's internal financial control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the

transactions and dispositions of the assets of the company; (2) provide reasonable assurance that

transactions are recorded as necessary to permit preparation of standalone financial statements in

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accordance with generally accepted accounting principles, and that receipts and expenditures of the

company are being made only in accordance with authorisations of management and directors of the

company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised

acquisition, use, or disposition of the company's assets that could have a material effect on the standalone

financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the

possibility of collusion or improper management override of controls, material misstatements due to error

or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls

over financial reporting to future periods are subject to the risk that the internal financial control over

financial reporting may become inadequate because of changes in conditions, or that the degree of

compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system

over financial reporting and such internal financial controls over financial reporting were operating

effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by

the Company considering the essential components of internal control stated in the Guidance Note on

Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered

Accountants of India.

For and on behalf of

ANM & Associates



Sd/-

Rajendra V. Mahimkar

Partner

Membership number: 032513

rdDate : 23 May, 2018.

Place : Mumbai.

46

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CAG Clearance Certificate

47

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48

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Balance Sheet


CIN No U65191MH2014GOI302620stBalance Sheet as at 31 March 2018

Amount in (`)

Particulars Notes 31.03.2018 31.03.2017

I. EQUITY AND LIABILITIES

(1) Shareholder's Funds

(a) Share Capital B 10,00,00,000 10,00,00,000

(b) Reserves and Surplus C 1,88,73,587 1,60,65,392

(2) Non-Current Liabilities

(a) Deferred tax liabilities (Net) D 14,37,530 13,52,842

(b) Other Long term liabilities E 50,407 50,407

(3) Current Liabilities

(a) Trade payables F 1,04,32,280 50,62,273

(b) Other current liabilities G 11,23,07,800 12,05,28,447

(c) Short term provisions H 14,14,578 10,48,404

Total 24,45,16,182 24,41,07,765

II. ASSETS

(1) Non-current assets

(a) Fixed assets I

(i) Tangible assets 6,95,559 7,31,321

(ii) Intangible assets 64,46,836 84,04,174

(2) Current assets

(a) Current Investments J 1,26,59,119 1,71,37,027

(b) Trade receivables K 1,90,17,038 1,59,32,050

(c) Cash and Cash Equivalent L 19,01,38,814 19,28,23,188

(d) Other current assets M 1,55,58,816 90,80,005

Total 24,45,16,182 24,41,07,765

Significant Accounting Policies and Notes A

Forming Part of the Accounts

In terms of our report of even date For and on behalf of the Board

For ANM & Associates

Chartered Accountants Sd/-FRN No. 008263N Mohammad Mustafa Chairman

Sd/-

Rajendra V Mahimkar Sd/-Partner C. S. ThanviPlace: Mumbai Chief Executive Officer and Whole time Director M. No. 032513

Date: May 23, 2018 Sd/-

Smruti Hajare

Company Secretary

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Profit & Loss Account


CIN No U65191MH2014GOI302620stStatement of Profit and Loss for the year ended 31 March 2018

Amount in (`)

Particulars Notes 2018 2017

Revenue:

Revenue from operations N 6,29,10,699 5,58,42,587

Other Income O 62,20,801 2,24,16,079

Total Revenue 6,91,31,500 7,82,58,666

Expenses:

Operation & other expenses P 4,11,14,167 5,16,06,639

Employee costs Q 2,22,88,803 1,83,34,255

Depreciation & Amortisation expenses I 23,22,782 17,20,270

Total Expenses 6,57,25,752 7,16,61,164

Profit/(Loss) before prior period adjustments and tax 34,05,747 65,97,501

Profit before tax 34,05,747 65,97,501

Less: Tax expense:

(1) Current tax 5,12,865 11,17,318

(2) Deferred tax 84,688 8,21,970

Adjustment for Short/(Excess) provision for R - (6,66,229)

tax for earlier years

Profit/(Loss) for the period 28,08,194 53,24,442

Earning per equity share:

(1) Basic 0.28 0.53

(2) Diluted 0.28 0.53

Significant Accounting Policies and Notes A

Forming Part of the Accounts


For ANM & Associates


FRN No. 008263N

Sd/-

Mohammad Mustafa

Chairman

Sd/-

Rajendra V Mahimkar

Sd/-Partner

C. S. ThanviM. No. 032513

Chief Executive Officer and Whole time Director Place: Mumbai Date: May 23, 2018

Sd/-

Smruti Hajare Company Secretary

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CIN No U65191MH2014GOI302620stCash Flow Statement for the year ended 31 March, 2018

Amount in (`)

Particulars 31.03.2018 31.03.2017

A. CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before tax as per Profit and Loss Statement 34,05,747 65,97,501

Adjustment for:

Interest Income (54,97,526) (2,17,78,890)

Depreciation and Amortization Expense 23,22,782 17,20,270

Income tax refund received - -

Operating Profit before Working Capital Changes 2,31,002 (1,34,61,118)

Adjustments for :

Increase / (Decrease) Trade & Other Payables (10,33,981) (4,98,62,56,862)

(Increase) / Decrease Trade & Other receivable (51,53,549) (75,91,134)

Cash Generated from Operations (59,56,527) (5,00,73,09,113)

Taxes paid (Net) 67,73,601 79,74,590

NET CASH FROM OPERATING ACTIVITIES (A) (1,27,30,128) (5,01,52,83,704)

B. CASH FLOW FROM INVESTING ACTIVITIES

Sale of fixed Asset - -

Purchase of fixed assets (3,29,681) (38,13,530)

Investment in Fixed Deposit (7,95,73,000) 7,75,00,000

Investment in Mutual Fund 44,77,908 (1,71,37,027)

Sale of Investments - -

Interest Received 54,97,526 2,17,78,890

Purchase of Investment - -

NET CASH (USED IN) INVESTING ACTIVITIES (B) (6,99,27,247) 7,83,28,333

C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of Debentures - -

Interest Paid - -

Issue of Share Capital - -

NET CASH GENERATED FROM FINANCIAL ACTIVITIES (C) - -

NET DECREASE IN CASH AND CASH EQUIVALENTS (A+B+C) (8,26,57,376) (4,93,69,55,371)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 8,35,23,188 5,02,04,78,559

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 8,65,812 8,35,23,188


For ANM & Associates Sd/-Chartered Accountants

Mohammad MustafaFRN No. 008263N Chairman

Sd/- Sd/-Rajendra V Mahimkar C. S. ThanviPartner Chief Executive Officer and Whole time Director Place: Mumbai

M. No. 032513

Date: May 23, 2018 Sd/-

Smruti Hajare

Company Secretary

Cash Flow Statement

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Addendum to the Cash Flow Statement

Reconciliation of cash and cash equivalent at the end of the period in the Cash flow with cash and cash

equivalents in note no. L.

Ø An amount of `4,00,000/- towards 'Payable to Reliance Commercial Finance Ltd' was erroneously not

considered under “Increase /decrease Trade & Other Payable” in Cash Flow Statement.

Ø An amount of `40,00,000/- has been erroneously considered under “Investment in Fixed Deposit” in

Cash Flow Statement. The amount of Fixed Deposits placed for less than 3 months, which is classified as

Cash and Cash equivalent, has been taken into consideration under Investing activity of Cash flow

statement.

Due to this “cash and cash equivalent at the end of the period” in the Cash flow shows a figure of

`8,65,812/- instead of the correct figure of ̀ 52,65,814/-.

52

Notes forming part of the Balance Sheet and Statement of Profit & Loss Statement stas on 31 March, 2018

Particulars A mount in (`)

Note B : 31.03.2018 31.03.2017

Share Capital

Authorized

2,00,00,000 (As on 31.03.2017 :2,00,00,000)

Equity Shares of `10 each fully paid 20,00,00,000 20,00,00,000

Issued, Subscribed and Paid Up

1,00,00,000 equity shares of `10 each fully paid up 10,00,00,000 10,00,00,000

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

Authorized shares

Number 2,00,00,000 2,00,00,000

Amount 20,00,00,000 20,00,00,000

Number of Shares

Issued 1,00,00,000 1,00,00,000

Subscribed and fully paid 1,00,00,000 1,00,00,000

Subscribed but not fully paid - -

Par value per share 10 10

Reconciliation

Shares outstanding at the beginning of the reporting period 1,00,00,000 1,00,00,000

Shares allotted during the year - -

Shares outstanding at the end of the Reporting period 1,00,00,000 1,00,00,000

Rights, preferences and restrictions including restrictions

on the distribution of dividends and the repayment of capital

The company has only one class of equity shares having a par

value of 10 per share. Each holder of Equity Shares is entitled to `

one vote per share. The dividend, if any, proposed by the Board

of Directors and approved by the shareholders in the Annual

General Meeting is paid in Indian Rupees. In the event of

liquidation of the company, the holders of equity shares will be

entitled to receive remaining assets of the company, after

distribution of all preferential amounts. The distribution will be

in proportion to the number of equity shares held by the

shareholders.

Shares in the company held by each shareholder holding

more than 5% specifying the number of shares held

President of India on behalf of Department Of Services,

Ministry Of Finance, Government Of India

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99,99,999 99,99,999

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Note C :

Reserves & Surplus

Surplus

Profit & Loss Account

Balance brought forward from previous year 1,60,65,392 1,07,40,950

Profit during the year 28,08,194 53,24,442

Total 1,88,73,587 1,60,65,392

Note D :

Deferred tax Asset/Liabilities (Net) 14,37,530 13,52,842

Total 14,37,530 13,52,842

Note E :

Other long term Liabilities

Security Deposit 5,000 5,000

Retention money in lieu of Bank Guarantee-Ricoh 45,407 45,407

Total 50,407 50,407

Note F :

Trade Payables

Sundry Creditors 1,04,32,280 50,62,273

Total 1,04,32,280 50,62,273

Note G :

Other Current Liabilities

Other liabilities 16,11,639 19,95,146

Liabilities for PSIG RAF

Payable to SIDBI for PSIG Fund 11,02,96,161 10,61,32,858

Payable to Reliance Commercial Finance Ltd 4,00,000 -

Liabilities for CGFMU

Payable to CGFMU towards corpus - 1,24,00,443

Total 11,23,07,800 12,05,28,447

Note H :

Short term Provision

Provision for Other Employee Cost 14,14,578 10,48,404

Total 14,14,578 10,48,404

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Note J :

Current Investments

Investments in Mutual Funds (Unquoted) Units

( Valued at lower of cost and Net Realisable Value(NRV))

UTI- Floating Rate Fund - Daily dividend reinvestment plan - 41,71,191

UTI- Money Market Fund - Daily dividend reinvestment plan 165.265 1,65,825 1,14,65,836

Axis Treasury Advantage Fund - Growth Plan 1899.071 37,07,616 -

ICICI Prudential - Flexible Income Plan - Growth Plan 300.209 95,852 -

Investments For PSIG RAF ( in Mutual Fund)

Axis Liquid Fund - Growth Plan 1174.890 21,00,000 15,00,000

UTI- Treasury Advantage Fund - Growth Plan 2786.874 65,89,826 -

Total 1,26,59,119 1,71,37,027

Note: Net Realisable Value of the investments in Mutual Funds (Growth Plan) is given below:

Investment in Mutual Fund Units NRV

Axis Treasury Advantage Fund - Growth Plan 1899.071 37,61,784

ICICI Prudential - Flexible Income Plan - Growth Plan 300.209 1,00,594

Axis Liquid Fund - Growth Plan 1174.890 22,64,637

UTI- Treasury Advantage Fund - Growth Plan 2786.874 67,26,266

Note K:

Trade Receivables

Unsecured, Considered Good

Outstanding for a period less than six months.

Credit Guarantee Fund for Skill Development 37,34,056 31,86,410

Credit Guarantee Fund for Factoring 37,34,056 31,86,410

Credit Guarantee Fund for Educational Loans 37,34,056 31,86,410

Credit Guarantee Fund for Micro Units 37,34,056 31,86,410

Credit Guarantee Fund for StandUp India 37,34,056 31,86,410

SIDBI towards SUI Portal 3,46,758 -

Total 1,90,17,038 1,59,32,050

Note L:

Cash & Bank Balances

Cash and Cash Equivalents:

Balance with Banks:

Current Account with Punjab National Bank 18,786 1,06,671

Current Account with Corporation bank 12,22,986 27,29,737

Current Account with Punjab National Bank in respect of PSIG RAF 20,817 6,83,029

Cash on Hand 3,225 3,750

Term Deposit placed for less than 3 months in NCGTC 40,00,000 8,00,00,000

Cash and Cash Equivalent (A) 52,65,814 8,35,23,188

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Other Bank Balances:

Term Deposit having maturity of more than 3 months and less than 12 months - 8,00,000

Term Deposit having maturity of more than 12 months in NCGTC 8,15,00,000 40,00,000

Balance with Banks for PSIG RAF

Term Deposit having maturity of more than 3 months and less than 12 months 10,33,73,000 10,45,00,000

Other Cash and Cash Equivalent (B) 18,48,73,000 10,93,00,000

Total Cash and Cash Equivalent (A+B) 19,01,38,814 19,28,23,188

Note M:

Other Current Assets

Unsecured, Considered Good

Income Tax paid for AY 2018-19 /AY 2017-18(net of provision) 44,10,250 43,53,543

Income Tax paid for AY 2017-18(net of provision) 43,53,543 -

Income tax Refund Receivable for A.Y. 2016-17 - 1,94,974

Interest Accrued on fixed deposits with PNB 10,44,436 8,40,162

Interest Accrued on fixed deposits with Corporation bank 10,248 14,91,242

Interest Accrued on fixed deposits with Syndicate 27,76,591 -

Interest Accrued on fixed deposits with IDBI 14,98,837 -

Prepaid Expenses 8,430 16,378

Service tax input credit availed - 6,98,599

Excess Krishi Kalyan Cess paid - 6,045

Excess Swachh Bharat Cess paid - 1,308

GST Input Credit Receivable (net of GST payable) 8,45,614 -

Amount receivable from DFS

- towards initial corpus of CGFMU 10,000 10,000

- towards initial corpus of CGFSI 10,000 10,000

Deposit for Water Bottles 1,500 -

Assets for PSIG RAF

Interest Accured on fixed deposits 5,89,367 14,57,754

Total 1,55,58,816 90,80,005

Note N:

Revenue from Operations

IT Infrastructure Support to SIDBI 1,89,91,723 1,62,09,168

Management Fees from SIDBI PSIG RAF 10,00,000 10,00,000

Management Fee received from CGFSD 85,83,795 78,00,617

Management Fee received from CGFEL 85,83,795 78,00,617

Management Fee received from CGFF 85,83,795 78,00,617

Management Fee received from CGFMU 85,83,795 78,00,617

Management Fee received from CGFSI 85,83,795 74,30,951

Total 6,29,10,699 5,58,42,587

Note O:

Other Income

Interest Income on Fixed Deposit with Bank 54,97,526 2,17,78,890

Dividend Income 1,93,712 6,37,028

Profit on Redemption of Mutual Fund 5,06,739 -

Miscellaneous Income 660 161

Excess Provision W/Off 22,164 -

Total 62,20,801 2,24,16,079

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Note P:

Operation and other expense

Advertisement Expenses - Company 2,40,089 -

Domain Charges 2,652 2,652

Recruitment Expenses 59,719 4,78,199

Printing and Stationery - General 3,25,588 57,356

Printing, Designing and Translation-Annual Report 61,830 2,26,500

Printing, Designing and Translation E-bulletin 38,850 52,850

Office Expense 2,21,059 1,23,756

Statutory Audit Fees 1,50,000 1,50,000

Tax Audit Fees 1,00,000 1,00,000

GST Audit Fees 60,000 -

Telephone and Internet Expense 27,860 23,903

Professional Fees 12,80,925 11,87,800

Seminar and Workshop Expenses 48,552 5,21,613

Tour and Travel Expense 3,26,589 1,09,933

Legal Fees - 38,707

Computer Expense 65,162 64,000

ROC Filing Fee 68,600 44,500

Lease Rent 77,57,942 62,67,492

Interest on delayed payment of TDS 82,814 -

Interest Expense on CGFMU Corpus - 1,37,78,270

Website Hosting Expenses 25,360 25,360

Website Maintenance and Support Service 40,000 30,000

Swachh Bharat Cess 51,085 1,97,151

KKC Expense 30,907 -

Employee Welfare 1,37,381 1,33,527

Conveyance 79,320 25,009

Miscellaneous Expenses/ Other 56,156 74,623

Infrastructure Support Services (Managed IT solution) 1,13,10,820 1,16,84,270

SIDBI Stand Up - IT Expenses 1,84,40,302 1,62,09,168

CGST reversal Expense 7,071 -

IGST reversal Expense 10,463 -

SGST reversal Expense 7,071 -

Total 4,11,14,167 5,16,06,639

Note Q:

Employee Cost

Salary Expenses to SIDBI staff on deputation 1,48,48,311 1,38,19,398

Outsourced Staff Payment 61,59,165 39,18,816

Other Employee Cost 9,12,133 5,96,041

Salary Expenses - On Roll Staff Payment 3,69,194 -

Total 2,22,88,803 1,83,34,255

Note R:

Excess Income Tax provision

Provision for Income Tax in AY 2016-17-NCGTC - 36,71,137

Provision for Income Tax in AY 2016-17-PSIG - 10,19,174

Total - 46,90,311

Less: Tax Liability determined in AY 2016-17 - 40,24,082

Excess Income Tax provision written back - 6,66,229

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NCGTC


Accounting Policies

National Credit Guarantee Trustee Company Limited.stNote A: Notes to Financial Statement for the year ended 31 March, 2018.

1. Corporate Information:

• National Credit Guarantee Trustee Company Limited (NCGTC) was incorporated by Govt. of India

under the Indian Companies Act, 1956 on March 28, 2014 as a private ltd company with its registered

office at Jeevandeep Building, Sansad Marg, New Delhi 110001.

• The Registered office of NCGTC has been shifted from Jeevandeep Building, Sansad Marg, New Delhi

to MSME Development Centre, C-11, G Block, Bandra Kurla Complex, Bandra (East), Mumbai,

Maharashtra, India, on December 8, 2017.

• The CIN of NCGTC after the change of Registered Office is U65191MH2014GOI302620 [earlier CIN was

U65191DL2014GOI267069]

• National Credit Guarantee Trustee Company Ltd, [NCGTC] has been conceptualized with an objective

to act as trustee company and operate various credit guarantee funds, trusts or other entities, set up

or to be set up for that purpose by GoI. It has been envisaged to provide credit guarantee to Banks, FIs,

NBFCs, MFIs and other lending institutions which are enrolled as Member Lending Institutions for

guarantee cover of their loans in the areas of (i) Education (ii) Vocational skill development

(iii) Factoring / bills discounting (iv) Micro (v) StandUp India and (vi) Any other guarantee as may be

decided by the Govt.

2. Significant Accounting Policies

2.1 Basis of accounting and preparation of financial statements:

The Financial statements of the Company have been prepared in accordance with Generally Accepted

Accounting Principles in India (Indian GAAP) to comply with the applicable mandatory Accounting

Standards notified under the Companies (Accounting Standard) Rules, 2006 (as amended), as notified

under Companies (Accounts) Rules, 2014, Schedule III and relevant provisions of the Companies Act, 2013.

The financial statements have been prepared under the Historical Cost convention using the accrual

method of accounting.

2.2 Use of estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to

make estimates and assumptions considered in the reported amounts of assets and liabilities (including

contingent liabilities) and the reported incomes and expenses during the year.

The Management believes that the estimates used in preparation of the financial statements are prudent

and reasonable. Future results could differ due to these estimates and the differences between the actual

results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Fixed Assets:

Tangible Assets:

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include

amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of

Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing

the asset to its working condition for its intended use, net charges on foreign exchange

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contracts and adjustments arising from exchange rate variations attributable to the assets. Subsequent

expenditures related to an item of Tangible Assets are added to its book value only if they increase the future

benefits from the existing asset beyond its previously assessed standard of performance.

Intangible Assets:

The Intangible Assets are stated at cost less amortization.

Depreciation and Amortisation:

(a) Depreciation on Fixed Assets is provided to the extent of depreciable amount on Straight Line Method

(SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the

Companies Act, 2013.

(b) Depreciation on assets is charged upto the date of asset being sold / discarded during the year from

active use.

(c) Intangible Assets: Intangible assets are amortised in accordance with Accounting Standard 26 on

straight line basis as given below:

i) Software is amortised over a period of 5 years, subject to useful ife of the software.

ii) Website is amortised over a period of 5 years.

iii) Intangible asset(other than software and website) is amortised over a period of 10 years.

(d) The block of assets have been reclassified in line with the judicial pronouncements

and accordingly the depreciation as per Income Tax Act, 1961 has been calculated during the year.

2.4 Impairment of assets:

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for

impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and

impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The

recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by

discounting the future cash flows to their present value based on an appropriate discount factor. When

there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer

exists or may have decreased, such reversal of impairment loss is recognized in the Profit and Loss Account,

except in case of revalued assets.

2.5 Internal fund Transfers with the Trusts under the Trusteeship of NCGTC:

thThe Board in its 10 meeting had allowed internal fund transfers between NCGTC and the Trusts under its

Management for operational convenience by passing the following resolution; “NCGTC, as a trustee, for

operational convenience, liquidity management and to achieve efficient ways of making statutory

payments from one single point, can do drawal of the funds from the trusts under its Management. Such

drawals of the funds from the trust by NCGTC shall be purely temporary in nature and shall be settled within

a tenure of 90 days from the date of drawal”. However, during FY 2017-18, it was felt that for better clarity of

transactions in all entities and to avoid using the funds of one entity for the benefit of another entity, such

internal transfers should be avoided in future.

2.6 Employee Benefit:

Presently only a Company Secretary is on the payrolls of the company (on contractual basis) and remaining

all staffs engaged at the Company are either on Deputation from SIDBI or from Outsourced Agency.

The Company has no defined HR policy to be implemented in respect of the staff engaged by the Company.

The Company has defined contribution plan for post employment benefits like provident fund,

Superannuation Fund which are administered by SIDBI in case of SIDBI deputed employees.

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The liability for the defined benefit plan of gratuity is provided based on the actuarial valuation carried out

by an independent actuary at the yearend using Projected Unit Credit Method.

In case of outsourced employees, these benefits are given to the employees through the Agency who has

provided these employees.

In case of one employee on the pay roll, the benefits are of contractual nature and employee benefIts

payable within twelve months of rendering services are classified as short term employee benefits. Benefits

such as salaries, incentives and short term compensated absences etc are recognised in the period in which

the employee renders the related services.

2.7 Revenue recognition:

I. Presently the Company manages five Trusts viz. Credit Guarantee Fund for Skill Development, Credit

Guarantee Fund for Educational Loans, Credit Guarantee Fund for Factoring, Credit Guarantee Fund

for Micro Units and Credit Guarantee Fund for StandUp India, where the Company is the Trustee and

the Fees charged by the Company to the Trusts is based on actual administrative/operational cost

incurred by the Company which is equally distributed across all funds under the Management of the

Company. This fee is treated as Management Fee. Further, any specific expense pertaining to a

particular Trust has been charged to that particular Trust itself.

II. Management Fee is received from SIDBI-PSIG on the basis of the Management Agreement entered

into between the Company and SIDBI-PSIG and the expense is recognized on accrual basis.

III. Dividend income is recognised when the right to receive the same is established.

IV. Profit on redemption of mutual funds is recognized as per weighted average method of accounting in

books of account and the same has been recognized in Income Tax Act as per FIFO basis of accounting.

V. Interest income from balances held with the banks in form of deposits is recognized on accrual basis.

2.8 Investments:

Investments are classified into current and non-current investments. Investments that are readily realizable

and are intended to be held for a period less than twelve months from the date on which such investments

are made are classified as 'Current Investments'. Investments other than Current Investments are classified

as 'Non-current Investments'. Current Investments are stated at lower of cost and fair value and the

resultant decline, if any, is charged to Statement of Profit and Loss. Non-Current Investments are carried at

cost. Provision for diminution, if any, in the value of each non-current investment is made to recognise a

decline, other than of a temporary nature. Fair value of investments in mutual funds are determined on a

portfolio basis.

2.9 Taxes on Income:

a. Current Tax

Current tax expense is based on the provisions of Income Tax Act, 1961 and judicial interpretations

thereof as at the Balance Sheet date and takes into consideration various deductions and exemptions

to which the Company is entitled to as well as the reliance placed by the Company on the legal advices

received by it. Current tax assets and current tax liabilities are offset when there is a legally

enforceable right to set off the recognized amounts and there is an intention to settle the asset and

the liability on a net basis.

b. Deferred Tax

Deferred tax is recognised on timing differences, being the differences between the taxable income

and the accounting income that originate in one period and are capable of reversal

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in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or

substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there

is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax

assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that

sufficient future taxable income will be available against which these can be realised. Deferred tax assets and

liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Trust has

a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their

realisability.

2.10 Earnings per share (EPS):

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted

EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding

during the year except where the results would be anti-dilutive.

2.11 Provisions, contingent liabilities and contingent assets:

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is

probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be

made. Provisions are not discounted to their present value and are determined based on the best estimate

required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and

adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are

neither recognized nor disclosed in the financial statements.

3 Notes to the Accounts:

3.1 Disclosure under The Micro, Small And Medium Enterprise Development Act, 2006

There are no amounts overdue and remaining unpaid to Small Scale and /or Ancillary Industrial suppliers on

account of principal and/or interest as at close of the year. This disclosure is based on the information available

with the Company regarding the status of suppliers as defined under section 15 of the 'The Micro, Small and

Medium Enterprises Development Act, 2006'.

3.2 (a) Accounting Standard 18: Related Party Disclosures

Name of the Party where Control Exists Nature of the Relationship

Credit Guarantee Fund for Skill Development Trust managed by Company

Credit Guarantee Fund for Factoring Trust managed by Company

Credit Guarantee Fund for Educational Loans Trust managed by Company

Credit Guarantee Fund for Micro Units Trust managed by Company

Credit Guarantee Fund for StandUp India Trust managed by Company

Key Managerial Personnel Nature of Relationship

Mr. Pradeep Malgaonkar (upto August 18, 2017) CEO and Whole-time Director

Mr. Vinay Hedaoo (from August 21, 2017 to January 23, 2018) CEO and Whole-time Director

Mr. Chandra Shekhar Thanvi (from January 23, 2018 onwards) CEO and Whole-time Director

th(b) In line with the Board's approval in its 10 meeting towards internal transfer of funds between NCGTC and the

Trusts under its Management, NCGTC has made withdrawal from the Trusts mainly for the statutory payments of

all the Trusts, till January 2018. The maximum amount withdrawn/advanced from/to any Trust on any day during

FY 2017-18 is given below:

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Entity Maximum Amount Balance

outstanding during outstanding as on st the year (in ` ) 31 March, 2018

Advance Given by the Company

Credit Guarantee Fund for Skill Development 2,68,00,000.00 -

Credit Guarantee Fund for Factoring 65,00,000.00 -

Credit Guarantee Fund for Educational Loans 54,49,000.00 -

Credit Guarantee Fund for Stand Up India 65,11,392.00 -

Advance taken by the Company

Credit Guarantee Fund for Educational Loans 5,15,00,000.00

Credit Guarantee Fund for Micro Units 1,14,20,000.00 -

(c) During the year, the transactions entered with related parties are as under:

Related Parties 2017-18 2016-17

Amount (in `) Amount (in `)

Mr. Pradeep Malgaonkar (KMP) (reimbursement) - 18,690.00

Mr. Pradeep Malgaonkar (KMP) ( paid to SIDBI) 16,25,413.00 39,18,747.00

Mr. Vinay Hedaoo (KMP) (reimbursement) 12,100.00 -

Mr. Vinay Hedaoo (KMP) ( paid to SIDBI) 19,46,933.00 -

Mr. Chandra Shekhar Thanvi (KMP) (reimbursement) 12,340.00 -

Mr. Chandra Shekhar Thanvi (KMP) (paid to SIDBI) 11,38,055.00 -

Small Industries Development Bank of India - Various Expenses paid 2,35,70,471.00 2,06,82,931.00

Small Industries Development Bank of India - Income earned 1,89,91,723.00 1,62,09,168.00

(excluding PSIG income covered separately under note 3.7)

Management Fee from Credit Guarantee Fund for Skill Development 85,83,795.27 78,00,617.00

Management Fee from Credit Guarantee Fund for Education Loans 85,83,795.27 78,00,617.00

Management Fee from Credit Guarantee Fund for Factoring 85,83,795.27 78,00,617.00

Management Fee from Credit Guarantee Fund for Micro Units 85,83,795.27 78,00,617.00

Management Fee from Credit Guarantee Fund for Stand Up India 85,83,795.27 74,30,951.00

3.3 The company is engaged in single segment of Management of Credit Guarantee Funds and there are

no separate reportable segments as defined in AS – 17.

3.4 There are no Foreign Currency Transactions entered into by the Company in the current year. (PY- Nil).

3.5 The Company is the Trustee of the various credit guarantee Trusts viz. Credit Guarantee Fund for Skill

Development (CGFSD), Credit Guarantee Fund for Educational Loans (CGFEL), Credit Guarantee Fund

for Factoring (CGFF), Credit Guarantee Fund for Micro Units (CGFMU) and Credit guarantee Fund for

Standup India (CGFSI). The Company has no holding or subsidiary company. The Company has also not

entered into a joint venture with any entity.

3.6 In compliance of Accounting Standard 22 referred in section 133 of the Companies Act, 2013 on

accounting for taxes on income, the Company has created Deferred tax Asset (Net) on accounting of

timing difference:

63

Particulars 31.03.2018 31.3.2017

(Amount in `) (Amount in `)

A Opening Balance of Deferred Tax (Liability)/Asset (13,52,842.00) (5,30,872.00)

B Add:

(a) Deferred Tax (Liability)/Asset for the period on account of depreciation

and Deferred Tax (Liability)/Asset for the period on account of Preliminary (84,688.00) (8,21,970.00)

Expenditure.

C Closing balance of Deferred Tax Asset/(Liability) [Net] for the period (14,37,530.00) (13,52,842.00)

3.7 The Company had entered into an agreement with SIDBI for its Poorest States Inclusive Growth (PSIG)

Programme, funded by UKAid from the Department for International Development (DFID).

The Company has been appointed as the Manager for managing two products viz. Cash Collateralized

guarantee Fund (CCGF) and Risk Assurance Fund (RAF). The total combined fund expected under

these Schemes was `55 crore (`25 crore for CCGF and `30 crore for RAF). SIDBI has been paying the

Management Fee @ 1 % p.a. (calculated quarterly) of the average amount deposited by SIDBI towards

the RAF/CCGF Facility under the Scheme to the Company. An amount of `10 crore was received from

SIDBI for management under RAF during F.Y. 2015-16. As per the agreement, the proceeds from

investment are credited to the corpus. The Fund is being maintained separately by the Company as a

liability in its balance sheet and the income/expenses incurred out of the operations of the PSIG Fund

are debited/ credited to the fund directly. The tax liability on the Company towards the interest income

earned on the SIDBI fund has been calculated on notional basis and adjusted from the corpus. As on

March 31, 2018, the credit to the funds stand at ̀ 11,02,96,161/-.

th3.8 The Board of the Company in its 9 meeting held on March 22, 2016 has approved the Company to

claim reimbursement for the expenditure related to development, hosting and maintenance of the ndSUI portal from SIDBI based on the decision taken in the 2 Standing Committee meeting for Standup

India wherein it was discussed that since the Company already has a contract with Mastek for

developing its guarantee platform, the invoice towards Standup India may also be raised in the name

of the Company and SIDBI may make the corresponding payment to the Company.

It may be mentioned that in FY 2017-18, the Company has charged a facilitation fees of `5,51,421/-

from SIDBI towards the services provided by Mastek for the Stand up India Portal. No facilitation fee

was charged by the Company in FY 2016-17.

3.9 Contingent Liabilities and Commitments - (to the extent not provided for)

a. Contingent Liabilities

Out of the Contingent Liabilities of ̀ 7.475 crore in FY 2016-17 pertaining to nine comfort letters issued

by the Company to Reliance Commercial Finance Limited (RCFL) on behalf of PSIG towards Risk

Assurance Fund, eight comfort letters were closed during the FY 2017-18 since its underlying loan

tenure had come to an end in FY 2017-18. Further, with regard to one comfort letter amounting to

`2Crore issued to RCFL, it may be mentioned that the comfort letter end date is March 31, 2018 and

the same has not been invoked until date. Therefore the contingent liability of NCGTC stands as Nil as

on March 31, 2018 (Previous year - ̀ 7.475 crore).

b. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for

i. IT Software [Mastek Ltd.] : ̀ 1,06,10,573/-

(Previous Year- ̀ 1,06,10,573/-)

3.10 Previous Year Figures

Previous Year Figures have been regrouped / reclassified to conform to the Current Year presentation.

3.11 Negative Value

The figures reported in ( ) represents negative value.

,ulhthVhlh

NCGTC


National Credit Guarantee Trustee Company Limited (NCGTC)

CIN: U65191MH2014GOI302620

Registered office: MSME Development Centre, C-11, G Block, Bandra Kurla Complex, Bandra (East),

Mumbai - 400 067

ATTENDANCE SLIP

Folio No:_________________________________________________________________________________________________

Name of the Member: _____________________________________ Signature: ________________________________

Name of the Proxy Holder: ________________________________ Signature: ________________________________

thI/We hereby record my presence at the 4 Annual General Meeting of the Company at Room No. 1108-10, th11 Floor, Antriksh Bhavan, 22, Kasturba Gandhi Marg, New Delhi-110001on Monday, September 24,2018

at 4:00 p.m.

Note: Please handover the completed Attendance Slip at the Entrance of the Meeting hall.

,ulhthVhlh

NCGTC


National Credit Guarantee Trustee Company Limited (NCGTC)

CIN: U65191MH2014GOI302620

Registered office: MSME Development Centre, C-11, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051

Form No. MGT -11

Proxy Form

[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management

and Administration) Rules, 2014]

CIN:………………………………………………………………………..................………….................................................................

Name of the Company………………………………………………………………………................................................................

Registered office: …………………………………………………………………………………………………..........................................

Name of the Member(s): ……………………………………………………………………………………..............................................

Registered address:…………………………………………………………………………………………................................................

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

Folio No/ Client id: …………………………………….. DP id:……………………………………….....................................................

I/ We, being the member(s) of ………… shares of the above named Company, hereby appoint

1.Name……………………………………………………………………………………………………………................................................

Address: ………………………………………………………………………....................................................................................

E-mail id: ……………………………………………………………................................................................................................

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

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

Address: …………………………………………………………………………………………………………............................................

E-mail id: …………………………………………………………………………………………………………............................................

Signature: ………………………………………………………………………………………...................................................

thas my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at 4 Annual General Meeting of the thCompany, to be held on Monday, September 24,2018 at 4:00 p.m. at Room No. 1108-10, 11 Floor, Antriksh Bhavan,

22, Kasturba Gandhi Marg, New Delhi-110001on and at any adjournment thereof in respect of such resolutions as

are indicated below:

Resolution No.

1. Adoption of Audited Financial Statement together with Report of Board of Directors and Auditors Report for the stfinancial year ended 31 March, 2018

2. Appointment of Statutory Auditors

3. Re – appointment of Shri C S Thanvi as a Director of the Company

4. Re – appointment of Shri Sunil Mehta as Director of the Company

Signed this ….. day of…… 2018

Signature of Shareholder

Signature of Proxy holder(s)

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered

Office of the Company, before the commencement of the Meeting.

Affix Revenue Stamp

,ulhthVhlh

NCGTC


Team NCGTC

Registered Office : MSME Development Centre,


Bandra (East), Mumbai-400051Telephone : +91 22 67531194

E-mail : [email protected]

Website : www.ncgtc.in

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thAnnual Report 2017-18 · C-11, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051...

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Transcript of thAnnual Report 2017-18 · C-11, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051...