THE KUMBAKONAM MUTUAL BENEFIT FUND LTD., report 2014 - 15 book matter.pdf · The Kumbakonam Mutual...

THE KUMBAKONAM MUTUAL BENEFIT FUND LTD.,Regd. Office : 145, Big Street, Kumbakonam - 612 001.

Sri.T.LakshminarayananGeneral Manager & Chief Financial Officer

Sri.S.Anand Sagar

M/s.B.V.Balaji & Co.,Chartered Accountants

(F.R.No.010641S)

Kumbakonam - 612 001.

M/s.DPV & AssociatesChartered Accountants

(F.R.No.011688S)

Chennai - 600 017.

M/s.Ganesh Venkat & Co.,Chartered Accountants

(F.R.No.005293S)

Chennai - 600 023.

M/s.G.Giridharan & Co.,Chartered Accountants

(F.R.No.009362S)


Sri.V.KanakarajDeputy General Manager

Sri.S.KumaraguruparanRegional Manager, Madurai Region

Sri.R.S.VenkatesanAsst. General Manager

Sri.S.MilevahananRegional Manager, Chennai Region

Sri.R.PadmanabhanAsst. General Manager

Sri.R.SubashRegional Manager, Trichy Region

Sri.N.HaridossAsst. General Manager

Sri.K.VenkataramananRegional Manager, Coimbatore Region

Sri.K.Chakrapani B.A., B.L.,

Advocate,

Kumbakonam.

Sri.M.V.Santharaman B.Sc., B.L.,

Advocate,

Kumbakonam.

Legal Advisors

Executive Team

Statutory Auditors

Company Secretary

2014-15Annual ReportAnnual ReportAnnual Report -1-

2014-15Annual ReportAnnual ReportAnnual Report

KMBFKMBFKMBF THE KUMBAKONAM MUTUAL BENEFIT FUND LTD.,

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Notice for hundred and eleventh Annual General Meeting

Notice is hereby given pursuant to Section 96 and other applicable provisions of the Companies Act,

2013 that the Hundred and Eleventh Annual General Meeting [“AGM”] of the shareholders of

The Kumbakonam Mutual Benefit Fund Ltd., will be held at 9.15 a.m on Wednesday, the 23rd September

2015 at Janaranjani Hall, Gopal Rao Library Buildings, Town Hall Road, Kumbakonam – 612 001 to transact

the following items of business:

Agenda

Ordinary Business

1. To receive, consider and adopt the audited financial statements of the Company for the financial year

ended March 31, 2015 and the reports of the Board of Directors and Auditors thereon;

2. To declare dividend for the year 2014-15.

3. To appoint a director in the place of Sri. L.Meiyappan (DIN 03620141) who retires by rotation and, being

eligible, offers himself for re-election as an Independent Director.

RESOLVED THAT pursuant to the provisions of Sections 149,150 and 152 read with Schedule IV

and all other applicable provisions of the Companies Act, 2013 and the Companies (Appointment and

Qualification of Directors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for

the time being in force), Sri. L.Meiyappan (DIN 03620141) who retires by rotation at this Annual General

Meeting be and is hereby appointed as an Independent Director of the Company not liable to retire by rotation

for a term of Three consecutive years from the conclusion of this Annual General Meeting till the conclusion of

the 114th Annual General Meeting.

4. Ratification of appointment of Statutory Auditors approved by the members at the 110th AGM and to fix

their remuneration:

“RESOLVED THAT pursuant to Sec.139 and other applicable provisions, if any, of the Companies Act,

2013 (including any statutory modification or re-enactment thereof for the time being in force) and the Rules

made there under, as amended from time to time, the shareholders do hereby ratify the appointment of

i. M/s.B.V.Balaji & Co., Chartered Accountant (F.R.No.010641S), Kumbakonam – 612 001

ii. M/s.DPV & Associates, Chartered Accountants, (F.R.No.011688S), Chennai – 600 017

iii. M/s.Ganesh Venkat & Co., Chartered Accountants, (F.R.No.005293S), Chennai – 600 023 and

iv. M/s.G.Giridharan & Co., Chartered Accountants, (F.R.No.009362S), Kumbakonam – 612 001

as statutory auditors of the Company who were earlier appointed by the shareholders of the company at the

110th AGM, to hold office from the conclusion of this Annual General Meeting till the conclusion of the 112th

Annual General Meeting of the company, to be held in the year 2016 to examine and audit the accounts of the

company for the financial year 2015-16, on such remuneration, as may be mutually agreed upon between the

Board of Directors of the company and the Auditors”.

Special Business

To consider and if thought fit to pass the following resolution as Special Resolution with or without

modification(s):-



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5. Ratification of Increase in remuneration of Managing Director.

“RESOLVED THAT in accordance with provisions of Sec.196, 197, 198 read with Schedule V of the

Companies Act, 2013 and other applicable provisions and amendments from time to time, if any, of the said

Act, the shareholders of the company do hereby ratify, confirm & approve the enhancement in payment in the

monthly remuneration to Sri.N.D.Narasimhan, Vice Chairman & Managing Director from Rs.75,000/- to

Rs.1,25,000/- (Rupees One lakh and twenty five thousand only) per month with effect from 01st February,

2015 to 11th August 2015 as approved by the Board of Directors of the Company”.


modification(s):-

6. Re-appointment of Sri. N.D.Narasimhan as Vice Chairman and Managing Director

“RESOLVED THAT the consent of the Company be and is hereby accorded for the re-appointment of

Sri.N.D.Narasimhan (DIN 03603479) as Vice Chairman & Managing Director for a period of one year from

12th August 2015 to 11th August 2016, in accordance with the provisions of Section 196, 197, 198 read with

Schedule V of the Companies Act, 2013 and other applicable provisions and amendments from time to time of

the Act, on the following terms and conditions.

Remuneration : Rs.1,25,000/- (Rupees One lakh and twenty five thousand only) per month.

Other benefits : Free use of phones provided by the Company for official purposes.

Use of Company's Car with fuel and driver for official purposes.

Actual travelling and other expenses like boarding, etc.,”

“RESOLVED FURTHER THAT the above monthly remuneration of Rs.1,25,000/- and other benefits shall

be paid to him as minimum remuneration/benefits even in the absence of or inadequacy of profits during the

year.”


modification(s):-

7. Payment of One percent remuneration to Non-Executive & Independent Directors.

“RESOLVED THAT subject to the provisions of Sec.197 (1) (ii) of the Companies Act, 2013 & Nidhi Rules,

2014 read with notifications & exemptions under the Act issued by the Central Government, approval of the

members is hereby accorded for payment of remuneration by way of commission for an amount not

exceeding 1% (One percent) of the net profits of the company in every of the financial year for a period of five

years commencing from 1st April 2016 to 31st March 2021 to all the Directors of the Company, other than

Managing Director of the company.”

By Order of the Board,

For The Kumbakonam Mutual Benefit Fund Limited,

S. Anand Sagar

Company Secretary

Place : Kumbakonam

Date : 13th August, 2015.

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KMBF THE KUMBAKONAM MUTUAL BENEFIT FUND LTD., NOTES : 1. Statement pursuant to section 102(1) of the Companies Act, 2013 relating to the Special business

to be transacted at the ensuing Annual General Meeting is annexed hereto. 2. Pursuant to section 91 of the Companies Act, 2013, the Register of Members and Share Transfer

Books of the Fund will remain closed from 16th September, 2015 to 23rd September, 2015 (both days inclusive) for the purpose of share transfers.

3. A member entitled to attend and vote at the meeting is also entitled to appoint a proxy to attend

and vote instead of himself/herself and such a proxy need not be a member of the Fund. The proxies, in order to be effective, must be lodged with the Registered Office of the Company, not less than 48 hours before the commencement of the meeting.

4. Members are requested to note that a person can act as Proxy on behalf of members, not

exceeding fifty and holding in the aggregate not more than 10% of the total share capital of the company, carrying voting rights. In case of voting by poll no member shall exercise voting rights in excess of 5% of total voting rights of equity shareholders.

5. Multiple Folios:

Any member, holding more than one folio for the same set of names, may please write to the

Registered Office so that his/her holdings can be consolidated into one folio. 6. In terms of section 125 (2) (c) of the Companies Act, 2013, the dividends which remain unclaimed

for a period of seven years will be transferred to the Investors Education and Protection Fund, maintained with the Central Government.

7. Members are requested to notify to the Registered Office of the Fund changes in their addresses, if any. 8. The company has made necessary application before the Central Government to exempt the

company from compliance of Section 108 of the Companies Act, 2013 read with Rule 20 of Cos. (Management & Administration) Rules, 2014.

9. Members are hereby requested to register their email addresses with the Company by sending a

mail to [email protected] or may contact Mr.T.Lakshminarayanan, General Manager & Chief Financial Officer, Phone no. 0435-2401548, email id : [email protected]

10. For convenience of the Members and proper conduct of the meeting, entry to the meeting venue will be

regulated by Attendance Slip, which is enclosed with this Annual Report. Members are requested to sign at

the place provided on the Attendance Slip and hand it over at the Registration Counter at the venue. Explanatory Statement under section 102 of the Companies Act, 2013: Item No.3 : Appointment of an Independent Director.

Sri. L.Meiyappan is an Independent Director on the Board of the Company within the definition of Independent Directors under Section 292 A of Companies Act, 1956 who retires at this ensuing AGM & is eligible for re-appointment. Whereas, pursuant to the provisions of section 149 of the Act, which came into effect from April 1, 2014, every public company fulfilling certain criteria as mentioned under Cos. (Appointment & Qualification of Directors) Rules, 2014 shall be required to have at least one-third of the total number of directors as independent directors, who are not liable to retire by rotation. Our Company falls under the said category and presently the company has three Independent Directors against the statutory requirement of Two Independent Directors. Annual Report 2014-15 -7-



Though the present Board of Directors comprises of required number of Independent Directors the same

requires the approval of Shareholders in terms of Section 152 read with Schedule IV to the Companies Act,

2013.

Accordingly item No.4 is recommended and placed before the shareholders for approval for

re-appointment of Sri. L.Meiyappan as an Independent Director, not liable for rotation for a period of Three

years to comply with the requirement of Section 149 of the Companies Act 2013.

About the Independent director :

Sri. L.Meiyappan has wide exposure in the fields of Business, Public and Social Service.

Declaration by Independent Director

Sri. L.Meiyappan has given a declaration to the Board that he meet the criteria of independence as

provided under section 149(6) of the Act. Sri. L.Meiyappan is not disqualified from being appointed Directors

in terms of Section 164 of the Companies Act, 2013 and has given his consent to act as Director. In the opinion

of the Board, this Director fulfill the conditions specified in the Act and the Rules framed thereunder for

appointment as Independent Director and he is independent of the management. The Board considers that the

continued association of Sri. L.Meiyappan would be of immense benefit to the Company and it is desirable

to continue to avail his services as Independent Director of the Company.

Inspection by Members

The terms and conditions of appointment of Sri. L.Meiyappan as Independent Director would be

available for inspection without any fee by the members at the Registered Office of the Company during

normal business hours on any working day excluding Saturday.

Interest of Director

Except the appointee Director, none of the Directors are neither interested nor concerned in the above

resolution.

Item No.5 : Ratification of Increase in remuneration of Managing Director.

Sri.N.D.Narasimhan was appointed as Vice Chairman & Managing Director of the Company with effect

from 11th August, 2013. During his tenure, the company witnessed an all round growth and performance.

In view of his increased responsibilities, it was decided in the meeting of the Board of Directors, held on

19th February, 2015 to increase the remuneration, payable to Sri.N.D.Narasimhan, Vice-Chairman &

Managing Director, from 1.2.2015 to 11.8.2015, as per the recommendation of Nomination & Remuneration

Committee, from Rs.75,000/- to Rs.1,25,000/- (Rupees One lakh and twenty five thousand only) subject to

approval of shareholders by way of special resolution in the ensuing Annual General Meeting.

This requires approval of the shareholders. Hence this subject is commended for passing special

resolution in the ensuing Annual General Meeting.

Item No. 6 : Re-appointment of Sri. N.D.Narasimhan as Vice Chairman and Managing Director

Upon recommendation of Nomination & Remuneration Committee Meeting held on 30th July, 2015,

the Board of Directors, in their meeting, held on 30th July, 2015 have unanimously re-appointed

Sri. N.D.Narasimhan, Director as Vice Chairman and Managing Director of the Company on the terms set out

in the resolution, as the tenure of Sri.N.D.Narasimhan comes to an end on 11th August, 2015.

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Re-appointment of Sri.N.D.Narasimhan by the Board of Directors is in terms of section 196, 197, 198

read with Schedule V of the Companies Act, 2013 and other applicable provisions and amendments, if any,

that may be made from time to time of the said Act.

Since Sri N.D.Narasimhan is aged 74 years, in terms of Sec.196 (3) (a) of the Companies Act, 2013,

increase in remuneration, appointment as Vice Chairman & Managing Director for a further period of one year

and payment of remuneration, has to be approved by the shareholders by means of a Special Resolution.

In terms of Section 196, 197, 198 and other applicable provisions of the Companies Act, read with

Schedule V of the Act, appointment and payment of remuneration to Managing Director are required to be

approved by the shareholders in the general meeting and accordingly this resolution is being placed before the

shareholders of the Company for approval.

None of the Directors of the Company, except Sri.N.D.Narasimhan is in any way concerned or interested

in this resolution. Your Directors recommend this Special Resolution for your approval.

The members are requested to pass necessary special resolution as set out in the notice of the meeting.

Item No.7 : Payment of 1% remuneration to Directors.

The Non-Executive Directors are required to devote more time and attention. Further, taking into

consideration the current competitive business environment which require enhanced levels of decision

making thereby making the responsibilities of the Directors more onerous, it is proposed to remunerate the

Director(s) of the Company who are neither in the whole time employment nor Managing Director with such

remuneration up to a ceiling of 1% of the net profits of the Company for every year, as computed in the manner

referred to in Sections 197, 198 of the Companies Act, 2013 read with Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014 for a period of five years for each financial year from

01-04-2016 to 31-03-2021. The provisions of Section 197 (1) (ii) of the Companies Act, 2013 read with Nidhi

Rules, 2014 and the exemption notification GSR 465 (E) dated 5th June, 2015 provides that such remuneration

shall be paid to the Non-Executive Directors of the Company, subject to the approval of the shareholders by

way of Special Resolution in the general meeting. Hence, the above item is put forth before the shareholders

for their approval. The Shareholders may also be well aware that the Central Government had granted

approval to the Company for payment of remuneration @ 1% of Net Profit for every financial year to the Non-

Executive Directors. The said approval of the Central Government is valid till 31st March 2016.

The Directors shall be deemed to be interested to the extent of their remuneration.

The documents in respect of the above special business including the aforesaid notification will be open

for inspection at the Registered Office of the Company, during office hours.

By Order of the Board,

For The Kumbakonam Mutual Benefit Fund Limited,

S. Anand Sagar

Company Secretary

Place : Kumbakonam

Date : 13th August, 2015.

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To

The Members of The Kumbakonam Mutual Benefit Fund Limited,

Your Directors have pleasure in presenting the Hundred and Eleventh Annual Report on the business and

operations of your Company together with the Audited Financial Statements and the Auditors' Report for the

financial year ended, 31st March, 2015.

1. The highlights of financial results for the year ended 31st March, 2015 are as under: (` in lakhs)

Particulars 31.03.2014 31.03.2015 Deposits 160735.01 157074.43Advance 133918.31 s 142477.03Total Income 29141.71 26097.84Profit before Depreciation & tax 4208.714011.46Depreciation 171.76244.20Profit after depreciation 4036.953767.26Profit brought forward 0.640.64

Profit available for appropriation 4037.593767.90Income Tax, including surcharge & Cess 2192.001013.78Deferred Tax (Asset / Liability) 724.34391.69Dividend Rate (% p.a.) 22%22%Dividend Amount 638.09639.57Dividend Distribution Tax 127.61127.89Transfer to General Reserve 1518.171618.42Balance carried forward to Balance Sheet 0.640.64

2. Events subsequent to the date of financial statements: There are no material changes and commitments affecting financial position of the company between 31st March and the date of Board's Report.

3. Dividend

Your Directors are pleased to recommend a dividend of 22% p.a. (period based pro-rata) for the year

ended 31st March, 2015. This will involve an amount of Rs.639.57 lakhs as dividend and Rs.127.89 lakhs as

Dividend Distribution Tax.

4. Board Meetings

The Board of Directors met 13 (Thirteen) times on the following dates: 1. 30.04.2014, 2. 21.05.2014, 3. 31.07.2014, 4. 27.08.2014, 5. 24.09.2014, 6. 04.10.2014, 7. 12.10.2014, 8. 18.10.2014, 9. 30.11.2014, 10. 10.12.2014, 11. 24.01.2015, 12. 19.02.2015 and 13. 21.03.2015

during the Financial Year 2014-15, in respect of which meetings the proceedings were recorded in the

Minutes Book maintained for the purpose.



BOARDS' REPORT

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5. Share Capital

The paid up share capital increased by Rs.6.40 lakhs from Rs.2904.11 lakhs as on 31.03.2014 to

Rs.2910.51 lakhs as on 31st March, 2015.

6. Reserves

During the year under report, Rs.1618.42 lakhs was appropriated to General Reserve, raising the same to

Rs.10937.26 lakhs as on 31.03.2015 from Rs.9350.81 lakhs as on 31.03.2014. During the previous year the

said appropriation was Rs.1518.17 lakhs.

7. Branches

In an attempt to expand the Business of the company, approval was obtained from The Regional Director,

Southern Region, Ministry of Corporate Affairs, Chennai vide his order F.No.2/M-708/2014(620-A), dated

11-07-2014 for opening 12 new branches at Gandharvakkottai (Pudukkottai Dist.), Thanjavur II, Villivakkam

(Chennai), Cheyyar (Tiruvannamalai Dist.), Ramanathapuram, Aranthangi (Pudukkottai Dist.), Kanchipuram,

Ponneri (Thiruvallur Dist.), Redhills (Chennai), Attur (Salem Dist.), Vandavasi (Tiruvannamalai Dist.) and

Sholinganallur (Chennai).

During the year, five new branches at Mangalapuram (Thanjavur), Ramanathapuram, Attur, Ponneri &

Kanchipuram have been opened. Necessary steps are being taken to open other seven branches shortly. With

this, your company will be touching hundred and eleven branches with regard to branch network.

8. Business

The core business of your company is lending against jewels. During this year, the price of the yellow

metal remained volatile like last year on account of vagaries of markets – both international and domestic.

Your Directors are cautiously formulating policies closely watching the day to day movements of gold price.

Nevertheless, this had its own minimum effect on the business of the company.

9. Risk Management & Policy

Your Directors have taken meticulous care while managing various risks, which include credit risk,

liquidity risk, interest rate risk and operational risk. The Directors met at periodical intervals, considered and

discussed the issues relating to risk management, assets liability management and monitored the business

effectively to achieve optimum results.

Your Company has an elaborate Risk Management procedure, which is based on three pillars: Business

Risk Assessment, Operational Controls Assessment and Policy Compliance processes. Major risks identified

by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.

Some of the identified risks relate to competition and cost volatility.

10. Internal Financial Control

Your company has a good internal financial control and risk management frame work. Appropriate

controls are being exercised for maintaining transparency in operation for orderly and efficient conduct of

business to safeguard the assets of the company and for prevention and detection of frauds / errors, accuracy

and completeness of the accounting records and timely preparation of reliable financial information, etc.,

11. Particulars of Contracts / Arrangements with related parties

No contracts/arrangements/transactions were entered by the Company during the financial year with

related parties, under Section 188(1) of the Companies Act, 2013.

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12. Directors

In terms of Article 68 of Articles of Association of the Company, Sri. L.Meiyappan, a Director retires by

rotation, and being eligible, offers himself for re-election at the ensuing Annual General Meeting.

Sri. L.Meiyappan is an Independent Director on the Board of the Company with in the definition of

Independent Directors under Section 292A of Companies Act, 1956. He was appointed as Director at the

109th Annual General Meeting held on 18th October, 2013. He retires by rotation at the ensuing 111th

Annual General Meeting.

Whereas, pursuant to the provisions of section 149 of the Act, which came into effect from April 1,

2014, every public company fulfilling certain criteria as mentioned under Cos. (Appointment & Qualification

of Directors) Rules, 2014 shall be required to have at least two directors as independent directors under

Section 149 of the Act, who are not liable to retire by rotation.

Though the present Board of Directors comprises of required number of Independent Directors the same

requires the approval of Shareholders in terms of Section 152 read with Schedule IV to the Companies Act,

2013. Accordingly, approval of the shareholders is being sought for appointment of Sri. L.Meiyappan as

Independent director for three years not liable to retire by rotation.

Sri.N.D.Narasimhan, Vice Chairman & Managing Director of the Company completed his present term on

11th August, 2015. The Board of Directors acknowledges the effective contributions made by

Sri.N.D.Narasimhan. Upon recommendation of Nomination and Remuneration Committee, the Board has

re-appointed Sri.N.D.Narasimhan as Vice Chairman & Managing Director for a period of one year from 12th

August, 2015 to 11th August, 2016, and recommends a special resolution for his re-appointment. Approval of

members is also sought for increase in remuneration of Sri.N.D.Narasimhan for the previous period at the

ensuing Annual General Meeting on the terms, as set out in the notice of the meeting.

Mr.V.Ganesan, Director was not re-appointed in the last Annual General Meeting of the Company held on

10th December, 2014 and hence vacated his office as Director of the Company on that date.

13. Auditors

The present auditors M/s.B.V.Balaji & Co., Chartered Accountants, Kumbakonam, M/s.DPV Associates,

Chartered Accountants, Chennai, M/s.Ganesh Venkat, Chartered Accountants, Chennai and

M/s.G.Giridharan & Co., Chartered Accountants, Kumbakonam were re-appointed in the 110th Annual

General Meeting held on 10th December, 2014 as Statutory Auditors of the Company to hold office until the

conclusion of 116th Annual General Meeting of the Company, subject to ratification of their appointment by

the members at every Annual General Meeting, held after 110th Annual General Meeting.

A certificate from the Auditors that they satisfy the conditions prescribed under the Companies Act, 2013

and the Rules made there under (including satisfaction of criteria under Section 141 of the Companies Act,

2013), has been received from them. The company places the matter relating to the appointment of auditor for

ratification by members.

Further pursuant to Section 139 of the Act the Auditors shall hold office from the conclusion of this Annual

General Meeting (AGM) until the conclusion of sixth consecutive Annual General Meeting of the Company,

subject to ratification of the appointment by the Members at every AGM held after this AGM. Accordingly the

Board recommends to the share holders to ratify their reappointment, as set out in the Notice of 110th Annual

General Meeting for a period of Five years.

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As part of the effort to evaluate the effectiveness of the internal control systems, your Company's internal

audit department reviews all the control measures on a periodic basis and recommends improvements. The

internal audit department is manned by senior officials and experienced personnel. The Internal Auditor

reports are placed directly to the Audit Committee of the Board. The Audit Committee regularly reviews the

audit findings as well as the adequacy and effectiveness of the internal control measures.

14. Secretarial Audit

Pursuant to provisions of Sec.204 of the Companies Act, 2013, read with rule 9 of the Companies

(Appointment & Remuneration of Managerial Personnel) Rule 2014, your company engaged the services of

M/s.P.Sriram & Associates, Company Secretaries in practice, Chennai to conduct Secretarial Audit of the

Company for the financial year ended 31st March, 2015. The Secretarial Report in Form MR3 is attached as

Annexure - A .

As regards the observation made by the Secretarial Auditor with regard to the non-appointment of Women

Director into the Board it is clarified that the Company is in the process of identifying a woman director who

has specialized knowledge relating to Nidhi business. The Company shall take all necessary steps to appoint a

woman director in the Board at the earliest.

15. Statutory Disclosures

No employee was in receipt of remuneration in excess of the limits prescribed under Rule 5(2) of the

Companies (Appointment & Remuneration of Managerial Personnel) Rules 2014.

The provisions of Section 134 (3)(m) of the Companies Act, 2013 relating to Conservation of Energy,

Technology Absorption and Foreign Exchange Earnings and Outgo do not apply to your Fund considering the

nature of its business operations.

16. Directors' Responsibility Statement

Pursuant to Sec.134(5) of the Companies Act, 2013, the Board of Directors to the best of their knowledge

and ability confirms that:

a. that in the preparation of the annual accounts, the applicable accounting standards have been followed,

along with proper explanation relating to material departures;

b. that they have selected such accounting policies and applied them consistently and made judgements and

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

Company relating to the financial year 2014-15.

c. that they have taken proper and sufficient care for the maintenance of adequate accounting records, in

accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company

and for preventing and detecting fraud and other irregularities;

d. that they have prepared the annual accounts on a going concern basis; and

e. the directors had devised proper systems to ensure compliance with the provisions of all applicable laws

and that such systems were adequate and operating effectively.

17. Extract of Annual Return

As required pursuant to Sec.92(3) of the Companies Act, 2013 and Rule 12 (1) of the Companies

(Management & Administration) 2014, an extract of annual return in MGT-9 is annexed as part of this report

vide Annexure -B.

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18. Committees of the Board

As required under Section 177 & 178 of Companies Act, 2013 read with Companies (Meetings of Board &

its Powers) Rules, 2014, the following are the committees of the Board.

i. Audit Committee

The Company has an independent Audit Committee consisting of

Sri N.D.Narasimhan - Chairman, Audit Committee

Sri.L.Meiyappan - Member

CA N.R.Sridharan - Member

The committee met seven times during the year under review.

ii. Nomination & Remuneration Committee

The Company has an independent Nomination & Remuneration Committee consisting of

Sri.L.Meiyappan - Chairman of the Committee

Sri.Rama.Ramanathan - Member

Sri.N.R.Sridharan - Member

iii. Stakeholders Relationship Committee

The Company has an independent Stakeholders Relationship Committee consisting of

Sri.Rama.Ramanathan - Chairman

Sri.N.D.Narasimhan - Vice Chairman & Managing Director

Sri.L.Meiyappan - Director

iv. Corporate Social Responsibility (CSR) Committee

Pursuant to Section 135 of the Companies Act, 2013 certain companies with certain Profits & turnover

shall be required to contribute/spend 2% of the average net profits of last three years into various activities

specified under Schedule VII to Companies Act, 2013 read with Companies (CSR Policy) Rules, 2014.

Further, CSR committee shall be constituted. Accordingly the Board of Directors had constituted CSR

Committee with the following Directors:




Report on CSR activities as required under the provisions of Companies Act, 2013 is annexed herewith

marked as Annexure C and forms part of this report.

19. Key Managerial Personnel

During the year, following were the changes in the constitution of the Key Managerial Personnel of the Company :

Sri.N.D.Narasimhan was reappointed as Vice Chairman & Managing Director for a period of one year

from 12th August, 2015 to 11th August, 2016, subject to the approval of the shareholders by way of special

resolution in the ensuing Annual General Meeting.

Sri.T.Lakshminarayanan, General Manager was appointed as Chief Financial Officer of the Company with

effect from 30th September, 2014.

Smt.Kalpana Ramamurthy resigned as Company Secretary of the Company with effect from 7th July, 2015.

Sri. S.Anand Sagar was appointed as Company Secretary of the Company with effect from 8th July, 2015.

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20. Selection of Independent Directors

Considering the requirement of skill sets on the Board, eminent people having an independent standing in

their respective field/profession, and who can effectively contribute to the Company's business and policy

decisions are considered by the Human Resources, Nomination and Remuneration Committee, for

appointment, as Independent Directors on the Board. The Committee, inter alia, considers qualification,

positive attributes, area of expertise and number of Directorships and Memberships held in various

committees of other companies by such persons inaccordance with the Company's Policy for Selection of

Directors and determining Directors' independence. The Board considers the Committee's recommendation,

and takes appropriate decision.

Every Independent Director, at the first meeting of the Board in which he participates as a Director and

thereafter at the first meeting of the Board in every financial year, gives a declaration that he meets the criteria

of independence as provided under law.

21. Statement of declaration by Independent Director

The Company has received a Statement of declaration from the Independent Directors of the Company

confirming that they meet the criteria of independence prescribed under Section 149 (6) of the Companies Act,

2013.

22. Company Policy on Director Appointment & Remuneration

The Board of Directors is collectively responsible for selection of a member on the Board. The Nomination

and Remuneration Committee of the Company follows a defined criteria for identifying, screening, recruiting

and recommending candidates for election as a Director on the Board.

23. Acknowledgements

Your Directors take this opportunity to convey their deep sense of gratitude to the Government of India,

Ministry of Corporate Affairs. Your Directors wish to thank the shareholders, depositors and other customers

for their trust, continued encouragement and consistent support to your Company. The Board of Directors

thanks the Chamber of Nidhis, Bankers, Insurance Companies, Service Tax Department, Income Tax

Department, Sales Tax Department, etc for the support extended by them. The Directors are pleased to place

on record their sincere appreciation for the valued contribution, spirit of dedication and unstinted efforts by the

employees at all levels.

For and on behalf of the Board

Rama.Ramanathan

Chairman

Place : Kumbakonam

Date : 13th August, 2015

-15-

To,

The Members

The Kumbakonam Mutual Benefit Fund Limited

145, Big Street


I have conducted the secretarial audit of the compliance of applicable statutory provisions

and the adherence to good corporate practices by The Kumbakonam Mutual Benefit Fund Limited

(herein after called the company). Secretarial Audit was conducted in a manner that provided me a

reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my

opinion there on.

Based on my verification of Company's books, papers, minute books, forms and returns filed

and other records maintained by the company and also the information provided by the Company, its

officers, agents and authorized representatives during the conduct of secretarial audit, I here by report

that in my opinion, the company has, during the audit period covering the financial year ended on st31 March, 2015 complied with the statutory provisions listed here under and also that the Company

has proper Board - processes and compliance - mechanism in place to the extent, in the manner and

subject to the reporting made here in after :

I have examined the books, papers, minute books, forms and returns filed and other records st

maintained by the Company for the financial year ended on 31 March, 2015 according to the

provisions of :

1) The Companies Act,2013 (the Act) and the rules made there under;

2) The Employees State Insurance Act, 1948

3) The Industrial Disputes Act, 1947

4) The Industrial Employment ( Standing Orders ) Act, 1946

5) The Labour Welfare Fund Act, 1972

6) The Maternity Benefit Act, 1961

7) The Minimum Wages Act, 1948

8) Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

9) Payment of Wages Act, 1936 and other applicable labour laws.

10) The Payment of Bonus Act, 1965

11) The payment of Gratuity Act, 1972

12) The Sexual Harassment of Women at Work Place (Prevention, Prohibition And Redressal ) Act, 2013

Form No.MR-3

SECRETARIAL AUDIT REPORTst

FINANCIAL YEAR ENDED 31 MARCH, 2015

[Pursuant to section 204(1)of the Companies Act,2013and Rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]



-16-

ANNEXURE – A TO THE BOARDS' REPORT

13) Tamil Nadu General Sales Tax Act & central Sales Tax Act, 1959

14) The Workmen's Compensation Act, 1923

Secretarial Standards issued by The Institute of Company Secretaries of India (Not Notified as ston 31 March 2015, hence not applicable to the company during the audit period). During the

period under review the Company has complied with the provisions of the Act, Rules, Regulations,

Guidelines etc. mentioned above.

I further report that

The Board of Directors of the Company though constituted with balance of Executive

Directors & Independent Directors, the appointment of women director as required U/s.149(1) of

Companies Act, 2013 has not been made. The changes in the composition of the Board of Directors

that took place during the period under review were carried out in compliance with the provisions of

the Act.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed

notes on agenda were sent at least seven days in advance, and a system exists for seeking and

obtaining further information and clarifications on the agenda items before the meeting and for

meaningful participation at the meeting.

All decisions were carried out with unanimous approval of the Board and there was no

instance of dissent voting by any member during the period under review.

I further report that there are adequate systems and processes in the company commensurate

with the size and operations of the company to monitor and ensure compliance with applicable laws,

rules, regulations and guidelines.

I further report that during the audit period, there were no instances of:

(i) Public / Rights / Preferential issue of shares / debentures / sweat equity.

(ii) Redemption / buy-back of securities.

(iii) Major decisions taken by the Members in pursuance to Section 180 of the Companies

Act, 2013 (except for granting of Borrowing Powers to the Board U/s.180(1)©of

Companies Act, 2013).

(iv) Merger / amalgamation / reconstruction etc.

(v) Foreign technical collaborations.

Signature:P. Sriram & Associates

FCSNo. 4862 CPNo : 3310

Place: Chennai

Date: 12.08.2015

This Report is to be read with our letter of event date which is annexed as Annexure “A”

which form an integral part of this report.



-17-

Annexure – A

To, The Members

The Kumbakonam Mutual Benefit Fund Limited

145, Big Street, Kumbakonam - 612 001

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company.

2. My responsibility is to express an opinion on these secretarial records based on our audit.

3. I have followed the audit practices and processes as were appropriate to obtain reasonable

assurance about the correctness of the contents of the Secretarial records. The verification

was done on test basis to ensure that correct facts are reflected in secretarial records.

I believe that the processes and practices, the company had followed provide a reasonable

basis for our opinion .

4. I have not verified the correctness and appropriateness of financial records and Books of

Accounts of the company.

5. Wherever required, I have obtained the Management representation about the

compliance of laws, rules and regulations and happening of events etc.,

6. The compliance of the provisions of Corporate and other applicable laws, rules,

regulations, standards is the responsibility of management. My examination was limited to

the verification of procedures on test basis.

7. The Secretarial Audit report is neither an assurance as to the future viability of the company

nor of the efficacy or effectiveness with which the management has conducted the affairs of

the company.

Signature:

P. Sriram & Associates

FCSNo. 4862 CPNo: 3310

Place: Chennai

Date: 12.08.2015



-18-



FORM NO. MGT 9

I REGISTRATION & OTHER DETAILS:

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

III PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES

EXTRACT OF ANNUAL RETURN

as on financial year ended on 31.03.2015

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

(Management & Administration ) Rules, 2014.

i CIN U65991TN1903PLC001246

ii Registration Date 01-12-1903

iii Name of the Company THE KUMBAKONAM MUTUAL BENEFIT FUND LIMITED

iv Category/Sub-category of the Company PUBLIC LIMITED COMPANY

v Address of the Registered office 145 BIG STREET, KUMBAKONAM

& contact details

vi Whether listed company NO

vii Name, Address & contact details of the

Registrar & Transfer Agent, if any. NOT APPLICABLE

SL No

SL No

1

2

3

4

5

Mutual Benefit Financial Companies 8021 100%

1

2

3

Name & Description of mainproducts/services

Name & Address of the Company

NIC Code of the Product /service

CIN/GLN

NIL

% to total turnover of the company

HOLDING/SUBSIDIARY/ASSOCIATE

% OF SHARES HELD

APPLICABLE SECTION

-19-

ANNEXURE – B TO THE BOARDS' REPORT



IV SHAREHOLDING PATTERN (Equity Share capital Break up as % to total Equity)

Category of Shareholders No. of Shares held at the beginning of the year

Demat DematPhysical PhysicalTotal Total% of Total

Shares% of Total

Shares

No. of Shares held at theend of the year

% change during the year

A. Promoters

(1) Indian NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

a) Individual/HUF NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

b) Central Govt.or State Govt. NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

c) Bodies Corporates NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

d) Bank/FI NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

e) Any other NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

SUB TOTAL:(A) (1) NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

(2) Foreign NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

a) NRI- Individuals NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

b) Other Individuals NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

c) Bodies Corp. NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

d Banks/FI NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

e) Any other… NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

SUB TOTAL (A) (2) NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

Total Shareholding of Promoter (A)= (A)(1)+(A)(2) NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

B. PUBLIC SHAREHOLDING

(1) Institutions NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

a) Mutual Funds NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

b) Banks/FI NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

c) Central Govt. NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

d) State Govt. NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

e) Venture Capital Fund NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

f) Insurance Companies NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

g) FIIS NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

h) Foreign Venture Capital Funds NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

i) Others (specify) NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

SUB TOTAL (B)(1): NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

(2) Non Institutions

a) Bodies corporates NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

i) Indian NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

ii) Overseas NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

b) Individuals NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

i) Individual shareholders holding nominal share capital upto Rs.1 lakhs NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

-20-



IV SHAREHOLDING PATTERN (Equity Share capital Break up as % to total Equity)

(ii) SHARE HOLDING OF PROMOTERS

(iii) CHANGE IN PROMOTERS' SHAREHOLDING ( SPECIFY IF THERE IS NO CHANGE)

Category of Shareholders No. of Shares held at the beginning of the year

Demat DematPhysical PhysicalTotal Total% of Total

Shares% of Total

Shares

No. of Shares held at theend of the year

% change during the year

ii) Individuals shareholders holding nominal share 429810 429810 0.01 429810 429810 0.01

capital in excess of Rs. 1 lakhs

c) Others (specify)

SUB TOTAL (B)(2): 429810 429810 0.01 429810 429810 0.01

Total Public Shareholding

(B)= (B)(1)+(B)(2) 429810 429810 0.01 429810 429810 0.01

C. Shares held by Custodianfor GDRs & ADRs

Grand Total (A+B+C) 429810 429810 0.01 429810 429810 0.01

Sl No.

Sl No. Share holding at the beginning of the Year

No. of Shares

At the beginning of the year

At the end of the year

NOT APPLICABLE AS OUR FUND DOES NOT HAVE ANY PROMOTERS IN CONTROL OF THE MANAGEMENT

NIL NIL NIL NIL

NIL NIL NIL NIL

NIL NIL NIL NIL

Date wise increase/decrease in Promoters Share holding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equityetc)

No. of Shares% of total shares ofthe company

% of total shares ofthe company

Cumulative Share holding during the year

1

2

3

4

Total

NOT APPLICABLE AS OUR FUND DOES NOT HAVE ANY PROMOTERS IN CONTROL OF THE MANAGEMENT

Shareholders Name

Shareholding at the begginning of the year

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

% of total shares of the company

% of shares pledged encumbered to total

shares

% of shares pledged encumbered to total

shares

Shareholding at the end of the year

% change in share holding

during the year

-21-

KMBF THE KUMBAKONAM MUTUAL BENEFIT FUND LTD., (iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters & Holders of GDRs & ADRs) Sl No. Shareholding at the end of the year

Cumulative Shareholding during the year

For Each of the Top 10 No.of

Shares % of total Shares of No.of

Shares % of total Shares of Shareholders the company the company 1 SUBRAMANIAM .K 274800 0.94 274800 0.94

2 KANNAN .R 155010 0.53 155010 0.53

3 SWAMINATHAN .T 90000 0.31 90000 0.31

4 GOVINDARAJAN .R .R 87000 0.30 87000 0.30

5 ANBARASI .R 85137 0.29 85137 0.29

6 KUPPUSWAMI CHETTY .N 82500 0.28 82500 0.28

7 RAJA .R .K 80051 0.28 80051 0.28

8 RAJENDRAN .S .P & GANDHIDASS 75000 0.26 75000 0.26

9 PRAKASAM .B 66400 0.23 66400 0.23

10 VENKATASUBBAN .T .S 55000 0.19 55000 0.19

11 SEKAR .P .S 55000 0.19 55000 0.19

NOTE: Total paid up equity shares as on 1st April,2014 - 2,90,41,075 and as on 31st March 2015 - 2,91,05,050

(v) Shareholding of Directors & Key Managerial Personnel:

Sl No. For Each of the Directors and KMP Shareholding at the beginning Cumulative Shareholding during Sarvashri of the Year the year No.of Shares % of total Shares of No.of Shares % of total Shares of the company the company

Rama.Ramanathan 4301 0.00 4301 1 Change in Shareholding 12200 0.00

As on 31/03/2015 16501

2 Narasimhan .N .D - KMP 510 0.00 510 0.00

3 Meiyappan .L 510 0.00 510 0.00 Change in Shareholding 4100 As on 31/03/2015 4610

4 Sridharan .N .R 500 0.00 500 0.00

Annual Report 2014-15 -22-



V INDEBTEDNESS

VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole time director and/or Manager:

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

Secured Loans

excluding deposits

Sl.No. Particulars of RemunerationName of the MD/WTD/Manager

Total AmountSri.N.D. NARASIMHAN

Unsecured

Loans

Deposits Total

Indebtedness

(Rs. In Lakhs)

(Rupees)

Indebtness at the beginning

of the financial year

i) Principal Amount 1,60,735.01 1,60,735.01

ii) Interest due but not paid - -

iii) Interest accrued but not due 1,330.36 1,330.36

Total (i+ii+iii) 1,62,065.37 1,62,065.37

Change in Indebtedness during

the financial year

Additions 8,35,758.92 8,35,758.92

Reduction 8,39,973.34 8,39,973.34

Net Change -4,214.42 -4,214.42

Indebtedness at the end of the

financial year

i) Principal Amount 1,57,074.43 1,57,074.43

ii) Interest due but not paid - -

iii) Interest accrued but not due 776.52 776.52

Total (i+ii+iii) 1,57,850.95 1,57,850.95

NIL NIL

1 Gross salary (a) Salary as per provisions contained in section 17(1) of the Income Tax. 1961. 10,00,000 10,00,000

(b) Value of perquisites u/s 17(2) of the Income tax Act, 1961 --- ---

(c ) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961 --- ---

2 Stock option --- ---

3 Sweat Equity --- ---

4 Commission --- ---

as % of profit --- ---

others (specify) --- ---

5 Others, please specify --- ---

Total (A) 10,00,000 10,00,000

Ceiling as per the Act 1,19,29,400 1,19,29,400

-23-

KMBF THE KUMBAKONAM MUTUAL BENEFIT FUND LTD.,

B. Remuneration to other directors: (Rupees)

Sl.No. Particulars of Remuneration Name of the Directors Total Amount

1 Independent Directors Rama.Ramanathan 3,60,000

Fee for attending board /

committee meetings

Others, please specify NA -

Total (1) 3,60,000

2 Other Non Executive Directors NA -

(a) Fee for attending board / Meiyappan .L 3,60,000

committee meetings Sridharan .N.R 3,40,000

Ganesan .V (upto 19.11.2014) 1,90,000

(b) Commission NA -

(c ) Others, please specify. NA -

Total (2) NA 8,90,000

Remuneration @1% U/S 197 (3) 37,30,016

Total (B)=(1+2) 12,50,000

Total Managerial Remuneration (1+2+3) 49,80,016*

Overall Ceiling as per the Act. 37,30,016*

* Note: The total Managerial Remuneration of Rs.49,80,016/- paid includes Sitting fee of Rs.12,50,000/- paid to all Non – Executive Directors, which does not form part of remuneration. The Remuneration of Rs.37,30,016/- paid to all Non- Executive Directors is within the statutory limits u/s 197 of the Companies Act, 2013, read with Schedule V of Companies Act, 2013.

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD (Rs. In Lakhs)

Sl.No. Particulars of Remuneration Key Managerial Personnel

Company

1 Gross Salary CEO Secretary CFO Total

(a) Salary as per provisions

contained in section 17(1) of

the Income Tax Act, 1961. 2.35 4.45 6.80

(b) Value of perquisites u/s 17(2)

of the Income Tax Act, 1961 … .… …

(c) Profits in lieu of salary under

section 17(3) of the Income

Tax Act, 1961 …. … …

2 Stock Option …. … …

3 Sweat Equity …. … …

4 Commission …. … …

as % of profit …. … …

others, specify …. … …

5 Others, please specify …. … …

Total 2.35 4.45 6.80

Annual Report 2014-15 -24-

VII PENALTIES/PUNISHMENT/COMPPOUNDING OF OFFENCES

Type

Section of the

Companies Act

Details of Penalty/Punishment/

Compounding fees imposed

Brief Description

Authority(RD/NCLT/Court)

Appeall made if any (give details)



A. COMPANY

Penalty

Punishment

Compounding

B. DIRECTORS

Penalty

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment

Compounding

NIL

-25-



ANNEXURE – C TO THE BOARDS' REPORT

REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

Your Company being a Nidhi Company acknowledges its responsibility to contribute towards the

community, as the Company and its business is closely related to the society. The Company has been taking

various initiatives to identify suitable projects to be undertaken for the benefit of Kumbakonam town, where

the Registered Office of the Fund is situate.

Composition of CSR Committee:




Average Net Profit of the Company for the last three Financial Years:

Prescribed CSR expenditure (2% of the average net profit of the company for the last 3 financial years) :

The prescribed CSR expenditure is Rs.89.27 lakhs

Details of CSR spent during the financial year

a) Total amount to be spent for the financial year - Rs.89.27 lakhs

b) Amount unspent, if any - Rs.87.80 lakhs

c) Manner in which the amount spent during the financial year is detailed below:

i. CSR Project or activity identified - NIL

ii. Sector in which the project is covered - NIL

iii. Project or programmes - NIL

(1) Local area or other

(2) Specify the state and district where projects or Programs was undertaken

iv. Amount outlay (budget) project or programs-wise - NIL

v. Amount spent on the projects or programs - Rs.1.47 Lakhs

Sub-heads - NIL

1.Direct Expenditure on projects or programmes

2.Overheads

vi. Cumulative expenditure up to the reporting period - NIL

vii. Amount spent Direct or through implementing agency - NIL

(` in lakhs)

Financial Year

2013-14

2012-13

2011-12

Average Net Profit

Net Profit

4036.95

5639.81

3713.54

4463.43

-26-



In case the company has failed to spend the two percent of the average net profit of the last three financial

years or any part thereof, the reasons for not spending the amount.

As regards the shortfall on spending money on CSR as required by Section 135(5) of the Act it is explained

that your Company has been consistently carrying out certain social activities every year ranging from

community focused activities in the area of general health care and sanitation and is planning to give donations

for promoting education and Art & Cultural activities. However, your Company's spend on the CSR activities

for the financial year 2014-2015 has not taken place as per Companies Act, 2013 since your Company has to

now adopt as per Companies Act, 2013 a comprehensive approach to outreach society with meaningful and

innovative CSR activities viz., learning from on-ground realities, getting feedback from community and then

putting an enhanced sustainable model to ensure maximum benefit to the Community.

Responsibility Statement

A responsibility statement of the CSR Committee that the implementation and monitoring of CSR policy, is

in compliance with CSR objectives and policy of the Company which is given below :

“The Company shall ensure that the implementation and monitoring of Corporate Social Responsibility

(CSR) policy, is in compliance with CSR objectives and policy of the Company.”

For and on behalf of the Board

Rama.Ramanathan

Chairman

Place : Kumbakonam

Date : 13th August, 2015

-27-

AUDITORS' CERTIFICATE

Kumbakonamth

13 August 2015

DPV & Associates, Chennai.

Ganesh Venkat & Co., Chennai.

B.V.Balaji & Co., Kumbakonam.

G.Giridharan & Co., Kumbakonam

Chartered Accountants

CERTIFICATE

To

The Members of

The Kumbakonam Mutual Benefit Fund Limited.

This is to certify that we have audited the accounts for the year ending 31-03-2015 of The Kumbakonam

Mutual Benefit Fund Limited, Kumbakonam (“the company”) and that the company has followed the

instructions issued by The Ministry of Law Justice and Company Affairs (Department of Company Affairs) vide

their Notification G.S.R. No.258(E) dated 31-03-2014 and there is no violation of any of the conditions

mentioned therein. They have also maintained proper books of account according to the recognized

principles of accounting.

The Company has satisfactorily attained the ratio of incremental Deposit to incremental Net Owned

fund during the year as per the Notification G.O. GSR 258 (E) dated 31.03.2014 as amended from time to time.

For DPV & Associates For Ganesh Venkat & Co. For B.V.Balaji & Co. For G.Giridharan & Co,

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

F.R.No. 011688S F.R.No. 005293S F.R.No. 010641S F.R.No. 009362S

CA.G.Adhisivan CA.B.V.Balaji CA.G.GiridharanCA.K.Vaira Mutthu

Membership No. Membership No.029647 Membership No.208550 Membership No.209405218791

Partner Partner Proprietor Partner

Place : Kumbakonam

Date : 13.08.2015



-28-

Independent Auditors' ReportTo The Members of the Kumbakonam Mutual Benefit Fund Limited,Kumbakonam.

1. Report on the Financial Statements:

We have audited the accompanying financial statements of The Kumbakonam Mutual Benefit Fund

Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2015 , and the Statement of Profit

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

and other explanatory information.

2. Management's Responsibility for the 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 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 financial statements that give a true and fair view and are free from

material misstatement, whether due to fraud or error.

3. Auditors' Responsibility:

Our responsibility is to express an opinion on these 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 thereunder.

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 financial statements are free from material misstatement.

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

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

assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In

making those risk assessments, the auditor considers internal financial control relevant to the Company's

preparation of the financial statements that give a true and fair view in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company

has in place an adequate internal financial controls system over financial reporting and the operating

effectiveness of such controls. 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 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 financial statements.



-29-

4. Opinion:

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

aforesaid 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:

i) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

ii) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor's Report) Order, 2015 (“the Order”) issued by the Central

Government of India in terms of sub-section 11 of section 143 of the Act, we give in the Annexure a

statement on the matters specified in paragraphs 3 Order.

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

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

and belief were necessary for the purpose of our audit;

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

appears from our examination of those books

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

in agreement with the books of account.

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

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

e) On the basis of written representations received from the directors as on March 31, 2015, and taken on

record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from

being appointed as a director in terms of Section 164 of the Act.

f) With respect to the other matters to be included in the Auditors' Report in accordance with Rule 11 of

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

according to the explanations given to us:

I. the Company has disclosed the effect of the pending litigations in its financial statements as

mentioned in Note. 19 of the notes to accounts.

II. based on the current assessment of the long term loans, in ordinary course of business, the

company has made adequate provision for losses, where required, as explained in

Note. 22 of the notes to accounts.

III. during the year, there has been no delay in transferring the amounts required to be transferred to

the Investor Education and Protection Fund.

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 6 of our report of even date)

In terms of the information and explanation given to us and the books and records examined by us in

the normal course of audit and to the best of our knowledge and belief, we state as under:

1. a) The company has maintained proper records showing full particulars including quantitative

details and situation of its fixed assets.



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b) Fixed assets have been physically verified by the Management during the year, in accordance with an

annual plan of verification, which in our opinion is reasonable having regard to the size of the

Company and the nature of the fixed assets. The discrepancies noticed on such verification were not

material and have been properly dealt with in the books of account.

c) In our opinion and according to the information and explanations given to us, no substantial portion of

fixed asset has been disposed off during the year and therefore does not affect the status as going

concern.

2. As explained to us, inventories have been physically verified during the year by the management at

reasonable intervals.

a) In our opinion and according to the information and explanations given to us, the procedures of

physical verification of inventories followed by the management are reasonable and adequate in

relation to the size of the company and the nature of its business.

b) In our opinion and on the basis of our examination of the records, the Company is generally

maintaining proper records of its inventories. No material discrepancy was noticed on physical

verification of stocks by the management as compared to book records.

3. a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties

listed in the register maintained under Section 189 of the Companies Act, 2013.

Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the

Company.

4. In our opinion and according to the information and explanations given to us, there is generally an

adequate internal control procedure commensurate with the size of the company and the nature of its

business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods.

During the course of our audit, no major instance of continuing failure to correct any weaknesses in the

internal controls has been noticed.

5. In our option and according to the information and explanation given to us, the Company has complied

with the directions issued by the Reserve Bank of India and the provisions of section 73 to 76, and any

other relevant provisions of the Act and the rules framed thereunder with regards to the deposits accepted

from the public. There is no issue pending with Company Law Board or National Company law tribunal or

any tribunal.

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

7. a) According to the records of the Company and the information and explanation given to us, undisputed

statutory dues, including Provident Fund , Employees State Insurance, Income tax, Wealth tax, Service

tax and other material statutory dues have been regularly deposited during the year with the

appropriate authorities. According to the information and explanation given to us, there are no arrearsst

of statutory dues which are outstanding as at 31 March 2015 for a period of more than six months

from the date they become payable.

b) The following dues of Income tax and service tax have not been deposited by the company on the

account of dispute.



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` in lakhsForum in which dispute

is pendingAssessment year to which

the amount relates A/YAdditions made by

the DepartmentEstimated

Tax effectedINCOME TAXHigh Court, Chennai 2003-04 20.14 6.71High Court, Chennai 2004-05 54.41 18.13Commissioner of Income Tax (Appeals), Trichy 2006-07 334.52 111.45*Commissioner of Income Tax (Appeals), Trichy 2011-12 598.15 211.33*SERVICE TAXCentral Excise & Customs (Appeals) 2006-07 9.30 1.15Service Tax Appellate 2007-08 17.57 2.17Tribunal 2008-09 15.54 1.92Service tax – Revenue Audit covering April 2009 to June 2014 6.82

* During the year refund amount for the AY 2013-14 of Rs. 387.66 Lakhs were adjusted against the demand for

the AY 2006-07 for Rs. 111.34 Lakhs and for the AY 2011-12 for Rs. 276.32 Lakhs.

c) Based on our examinations of the records and the information and explanations given to us, the amount to

be transferred to the Investor Education and Protection Fund by the Company during the year has been

transferred within the accordance with relevant provision of the Companies Act, 1956and the rules made

thereunder.

8. The company does not have any accumulated losses at the end of the financial year and has not incurred

cash losses during the current and immediately preceding financial years.

9. The company has not defaulted in repayment of dues to the financial institution.

10. In our option and according to the information and explanations given to us, the company has not given any

guarantee for loans taken by other from banks or financial institutions.

11. Based on our examination of records and the information and explanation given to us, the term loans were

applied for the purpose for which the loans were obtained.

12. To the best of our knowledge and belief and according to the information and explanation given to us,

during the year, no fraud by the company and no material frauds on the Company were noticed or reported

during the course of our audit. The Board of Directors are appointed a firm of Independent Chartered

Accountants to look into certain procedural lapses and the repayment of ELDS. The report has been

submitted and under review of the Board of Directors.

For DPV & Associates For Ganesh Venkat & Co. For B.V.Balaji & Co. For G.Giridharan & Co,

Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants

F.R.No. 011688S F.R.No. 005293S F.R.No. 010641S F.R.No. 009362S

CA.G.Adhisivan CA.B.V.Balaji CA.G.GiridharanCA.K.Vaira Mutthu

Membership No. Membership No.029647 Membership No.208550 Membership No.209405218791

Partner Partner Proprietor Partner

Place : Kumbakonam

Date : 13.08.2015



-32-

(` in lakhs)

PARTICULARS NOTEAs at

March 31, 2015As at

March 31, 2014

I. EQUITY AND LIABILITIES Shareholders' Funds (a) Share Capital 3 2,910.51 2,904.11 (b) Reserves and surplus 4 10,937.26 9,350.81 13,847.77 12,254.92 Share application money pending allotment 5 1.64 0.42 Non-Current liabilities (a) Long-term borrowings 6 1,860.08 1,591.14 1,860.08 1,591.14 Current liabilities (a) Short-term borrowings 7 1,51,956.07 1,47,870.19 (b) Other current liabilities 8 4,969.02 12,802.38 (c) Short-term provisions 9 4,819.46 6,396.10 1,61,744.55 1,67,068.67 TOTAL - EQUITY AND LIABILITIES 1,77,454.04 1,80,915.15II. ASSETS Non-current assets (a) Fixed Assets 10 (i) Tangible assets 1,175.12 1,006.45 (ii) Intangible assets 6.43 3.57 (b) Long-term loans and advances 11 641.35 636.55 (c) Other non current assets 12 675.60 237.55 (d) Deferred Tax Assets 22 391.69 724.34 2,890.19 2,608.46 Current assets (a) Cash and cash equivalents 13 24,901.52 43,461.41 (b) Short-term loans and advances 14 1,41,322.36 1,32,766.66 (c) Other current assets 15 8,339.97 2,078.62 1,74,563.85 1,78,306.69 TOTAL - ASSETS 1,77,454.04 1,80,915.15

BALANCE SHEET AS AT MARCH 31, 2015

V.KanakarajDeputy General Manager

S.Anand SagarCompany Secretary

T.LakshminarayananGeneral Manager &

Chief Financial Officer

For Ganesh Venkat & Co.Chartered AccountantsF.R.No.005293S

For B.V.Balaji & Co.Chartered AccountantsF.R.No.010641S

For G.Giridharan & Co.Chartered AccountantsF.R.No.009362S

For DPV & Associates,Chartered AccountantsF.R.No.011688S

CA.G.AdhisivanMembership No.029647Partner

CA.B.V.BalajiMembership No.208550Proprietor

CA.G.GiridharanMembership No.209405Partner

CA.K.Vaira MutthuMembership No.218791Partner

As per our report of even date attached.

Place : Kumbakonam Date : 13.08.2015



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Rama.RamanathanChairman

N.D.NarasimhanVice Chairman & Managing Director

L.MeiyappanDirector

N.R.SridharanDirector

PARTICULARS NOTEAs at

March 31, 2015As at

March 31, 2014

Statement of Profit and Loss for the year ended March 31, 2015 (` in lakhs)

I. Revenue from operations 16 25,165.87 29,130.66

II. Other income (net) 17 931.97 11.05

TOTAL REVENUE (A) 26,097.84 29,141.71

III. Expenses :

(a) Employee Benefit Expenses 18 4,610.18 4,318.71

(b) Finance costs 19 15,421.91 17,475.08

(c) Administrative and Other Expenses 20 2,054.29 759.24

(d) Depreciation and amortization expenses 10 244.20 171.76

(e) Provisions 21 - 2,379.97

TOTAL EXPENSES (B) 22,330.58 25,104.76

IV. PROFIT BEFORE TAX (A-B) 3,767.26 4,036.95

V. Tax Expense :

(a) Current Tax 1,013.78 2,192.00

(b) Prior Period Taxes Paid 34.95 -

(c) Deferred Tax 22 332.65 (438.92)

VI. PROFIT AFTER TAX FOR THE YEAR 2385.88 2283.87

VII. Earnings per share of Rs.10 each - Basic `8.21 `7.88

Significant accounting policies and Notes to the accounts 1 to 26



L.MeiyappanDirector






For Ganesh Venkat & Co.Chartered AccountantsF.R.No.005293S

For B.V.Balaji & Co.Chartered AccountantsF.R.No.010641S

For G.Giridharan & Co.Chartered AccountantsF.R.No.009362S

For DPV & Associates,Chartered AccountantsF.R.No.011688S

CA.G.AdhisivanMembership No.029647Partner

CA.B.V.BalajiMembership No.208550Proprietor

CA.G.GiridharanMembership No.209405Partner

CA.K.Vaira MutthuMembership No.218791Partner


Place : Kumbakonam Date : 13.08.2015



-34-

stNotes forming part of Financial Statements for the year ended 31 March 2015

(` in lakhs)

PARTICULARS

PARTICULARS

As atMarch 31, 2015

As atMarch 31, 2015

As at March 31, 2014


3. SHARE CAPITAL

3.1 Reconciliation of number of shares

4. RESERVES AND SURPLUS

The authorised, issued, subscribed and the fully paid - up share capital comprises of Equity Shares having a par value of ̀ 10 each.

Authorised

4,00,00,000 Equity Shares of `10 each (4,00,00,000) 4,000.00 4,000.00

4,000.00 4,000.00

Issued

2,91,05,050 Equity Shares of ` 10 each fully paid up (2,90,41,075) 2,910.51 2,904.11

2,910.51 2,904.11

Issued, Subscribed and Fully paid-up

2,91,05,050 Equity Shares of ` 10 each fully paid up (2,90,41,075) 2,910.51 2,904.11

Total 2,910.51 2,904.11

PARTICULARSAs at March 31, 2015 As at March 31, 2014

Opening Balance 2,90,41,075 29,04,10,750 2,89,60,417 28,96,04,170

Changes during the year 63,975 6,39,750 80,658 8,06,580

Closing Balance 2,91,05,050 29,10,50,500 2,90,41,075 29,04,10,750

(a) General Reserve (i) Opening Balance 9,350.17 7,832.00 Add :- Transferred from profit and loss a/c 1,618.42 1,518.17 Less :- Depreciation Write Off 31.97 - Closing Balance (a) 10,936.62 9,350.17(b) Surplus In Statement of Profit And Loss A/c (i) Opening Balance 0.64 0.64 (ii) Add : Profit for the year 2,385.88 2,283.87 2,386.52 2,284.51 (iii) Less: Appropriations (a) Proposed dividend 639.57 638.09 (b) Dividend Distribution Tax 127.89 127.61 (c) General Reserve 1,618.42 1,518.17 Closing Balance (b) 0.64 0.64

Total (a+b) 10,937.26 9,350.81

5. SHARE APPLICATION MONEY PENDING ALLOTMENT 1.64 0.42

No. of Shares No. of SharesAmount / ` Amount / `

3.2 Share holding pattern of number of shares

There are no share holders holding more than 5% of the shares in the Company.3.3 Right attached to equity shares: The company has issued only one class of shares having a face value of Rs.10 per share. Each holder of equity share is entitled to one vote per share, subject to the limit that no member shall exercise voting rights in excess of 5% of total voting rights of equity share holders vide Notification No.G.S.R.465(E) dated 05th June, 2015 of Ministry of Corporate Affairs.



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PARTICULARSAs at

March 31, 2015As at

March 31, 2014

Unsecured

Fixed Deposit 159.75 149.80

Sowbhagyalakshmi Deposit 195.54 114.69

Recurring Deposits 362.55 298.74

Locker Key Deposit 1,142.24 1,027.91

Total 1,860.08 1,591.14

(a) Secured Loans from banks

Working Capital demand loans (Secured by lien on fixed deposits madeby the company with various banks) 1,167.57 1,038.09

Sub Total 1,167.57 1,038.09

(b) Unsecured

Fixed Deposit 64,319.94 90,581.39

Sowbhagyalakshmi Deposit 71,217.03 42,903.72

Recurring Deposits 4,112.24 4,333.82

Savings Deposits 11,139.29 9,013.17

Sub Total 1,50,788.50 1,46,832.10

Total 1,51,956.07 1,47,870.19

Current maturities of long term deposits 1,027.92 8,416.10

Balance in inter-branch accounts 0.39 -

Unclaimed Dividend 298.92 250.94

Withholding & Other Taxes Payable 28.06 82.31

Other Payables 3,613.73 4,053.03

Total 4,969.02 12,802.38

Notes forming part of Financial Statements (contd.)(` in lakhs)

7. SHORT-TERM BORROWINGS

8. OTHER CURRENT LIABILITIES

Working capital demand loans are secured by lien on fixed deposits made by the company and its branches.

6. LONG-TERM BORROWINGS

(a) (i) Provision for employee benefits 1076.05 1256.90

(ii) Provision for Others 778.37 1385.92

(b) Provisions

(i) Proposed dividend 639.57 638.09

(ii) Dividend Distribution Tax 127.89 127.61

(iii) Provision on Short Term Advances 2,197.58 2,987.58

Total 4,819.46 6,396.10

9. SHORT-TERM PROVISIONS



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Notes forming part of Financial Statements (contd.)

1. a) Secured Mortgage Loan 7.43 20.45 (Debts due by directors (Nil)/officers-Refer Note 25)

b) Doubtful - - (Debts due by directors (Nil)/officers-Refer Note 25)

c) Others

Mortgage Loan Suit filed 103.80 105.59

Less : Provision for Bad and Doubtful Bad Debts (103.80) (105.59)

Balance - -

2) Unsecured considered good - - - (Debts due by directors (Nil)/officers-Refer Note 25)

Others

Special Loan 633.07 605.92

Staff Housing Scheme 0.85 10.18

633.92 616.10

Total 641.35 636.55

11. LONG TERM LOANS AND ADVANCES

10.1 Due to the change in rate of depreciation as per the Companies Act,2013 for the assets in the opening has been charged to retained earnings for amount of Rs. 31.97 Lakhs.

PARTICULARS As at March 31, 2015 As at March 31, 2014

10. FIXED ASSETS

NET BLOCK DEPRECIATIONGROSS BLOCK

AS ON31-03-2015

AS ON31-03-2014

AS ON 31-03-2014

AS ON31-03-2014

WithDrawals

Deletions ToP&L

ToReserves

AdditionsAS ON

31-03-2015

AS ON31-03-2015

NAME OF THE ASSET

(i) Tangible Assets

Furniture & Fixtures 959.54 74.19 1.66 1032.07 601.05 74.79 1.87 1.22 676.49 355.58 358.49

Computer 600.81 71.76 84.89 587.68 485.88 126.70 29.14 83.91 557.81 29.87 114.93

Plant & Machinery 248.80 16.25 4.81 260.24 140.74 24.84 0.96 2.98 163.56 96.68 108.06

Building 397.28 5.48 - 402.76 169.67 11.46 - - 181.13 221.63 227.61

Vehicle 27.34 - - 27.34 12.11 4.52 - - 16.63 10.71 15.23

Land 182.13 278.52 - 460.65 - - - - - 460.65 182.13

Total 2415.90 446.20 91.36 2770.74 1409.45 242.31 31.97 88.11 1595.62 1175.12 1006.45

(ii) Intangible Assets -

Software 4.93 4.75 - 9.68 1.36 1.89 - - 3.25 6.43 3.57

Total Fixed Assets 2420.83 450.95 91.36 2780.42 1410.81 244.20 31.97 88.11 1598.87 1181.55 1010.02

(` in lakhs)

For the year



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14. SHORT TERM LOANS AND ADVANCES

1. Secured Debts due by directors (Nil)/officers-Refer Note 25) - -

Jewel Loans 1,39,233.20 1,30,296.95

Less : Provision for Bad and Doubtful Bad Debts (412.06) (412.06) 1,38,821.14 1,29,884.89

Simple Loan 88.17 72.50

Other Pledge Loan 2,374.86 2,779.50

Decreed Loans 2.55 2.55

Sub Total 1,41,286.72 1,32,739.44

2) Unsecured considered good - Debts due by directors (Nil)/officers-Refer Note 25) - -

Special Loan 0.51 1.64

Pay Loan 27.13 23.99

Staff Housing Loan 0.21 0.29

Staff Housing Scheme 7.79 1.30

Sub Total 35.64 27.22

Total 1,41,322.36 1,32,766.66

PARTICULARS As atMarch 31, 2015


(` in lakhs)

Disputed Income Tax-2004 22.86 22.86

Disputed Income Tax-AY 2006-07 136.48 3.56

Disputed Income Tax AY 2011-12 276.32

Sub Total 435.66 26.42

Rent Advance 233.74 206.59

Telephone Deposit 1.12 1.30

Electricity Deposit 4.83 2.91

Municipality Deposit 0.25 0.33

Sub Total 239.94 211.13

Total 675.60 237.55

12. OTHER NON-CURRENT ASSETS

(i) Cash and Cash Equivalents

(a) Balance with Banks

Current Accounts and credit balances in OD accounts 537.58 138.20

(b) Cash on hand 1,009.29 307.22

(ii) Ear marked balances

For Dividend Payable 298.92 250.94

For Share Application Money 1.64 0.42

Fixed Deposits with Banks

With Maturity of twelve months and less 23,006.09 42,454.88

More than twelve months 48.00 309.75

Total 24,901.52 43,461.41

Balances with banks to the extent held as security against borrowings

13. CASH AND CASH EQUIVALENTS




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PARTICULARSAs at

March 31, 2014

(` in lakhs)

17. OTHER INCOME (NET)

Income from letting of property 7.59 8.94

Net gain on sale of assets 1.45 0.95

Other non operating income 2.70 1.16

Interest on Income Tax refund 37.37 -

Provision written back 882.86 -

Total 931.97 11.05

18. EMPLOYEE BENEFIT EXPENSES

Salaries 4,052.67 3,658.21

Contribution to provident and other funds 481.59 582.42

Directors' Remuneration 47.30 47.25

Staff welfare expenses 28.62 30.83

Total 4,610.18 4,318.71

15. OTHER CURRENT ASSETS

Interest accrued on fixed deposits and other loans and advances 8,025.70 1,625.93

Festival Advance 61.28 68.27

Sundry Advance 2.53 3.17

Stock of Books and Forms 23.00 25.32

Insurance Prepaid 41.42 39.21

Group Gratuity Prepaid 2.00 4.00

Group Insurance EDLI Prepaid 4.40 4.40

Rent Receivable 10.30 7.20

Prepaid AMC 0.32 2.73

Advance Income tax/TDS (net of provision) 169.02 297.90

Balance in inter-branch accounts - 0.49

Total 8,339.97 2,078.62

16. REVENUE FROM OPERATIONS

Interest on loans 22,054.55 26,092.20

Interest on bank deposits 3,055.74 2,930.95

Other operating income 55.58 107.51

Total 25,165.87 29,130.66



As atMarch 31, 2015

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Gratuity Report under AS – 15 (Revised 2005) for year ended 31.03.2015/31.03.2014

In respect of : The Kumbakonam Mutual Benefit Fund Employees Group Gratuity Life Assurance Scheme Policy No.34148

As on 31.03.2015 As on 31.03.2014 1) Assumption

Discount Rate 8.00% 8.00%

Salary Escalation 6.00% 7.00%

2) Table showing changes in present value of obligation as on 31.03.2015/31.03.2014 ` `

Present value of obligations as at beginning of year 14,67,11,730 17,97,51,003

Interest Cost 1,17,36,938 1,43,80,080

Current Service Cost 69,68,650 82,32,620

Benefits Paid ) (70,88,100) (95,12,961

Actuarial (gain)/loss on obligations ) 2,14,21,785 (1,29,79,653

Present value of obligations as at end of year 17,97,51,003 17,98,71,089

3) Table showing changes in the fair value of plan assets as on 31.03.2015/31.03.2014

Fair value of plan assets at beginning of year 10,59,42,537 13,73,92,610

Expected return on plan assets 1,03,68,175 1,36,26,541

Contributions 2,81,69,998 4,47,59,198

Benefits Paid ) (70,88,100) (95,12,961

Actuarial gain/(loss) on Plan assets - -

Fair value of plan assets at the end of year 13,73,92,610 18,62,65,388

4) Table showing fair value of plan assets

Fair value of plan assets at beginning of year 10,59,42,537 13,73,92,610

Actual return on plan assets 1,03,68,175 1,36,26,541

Contributions 2,81,69,998 44,75,198

Benefits Paid ) (70,88,100) (95,12,961 Fair value of plan assets at the end of year 13,73,92,61018,62,65,388

Funded status (4,23,58,393) 63,94,299

Excess of Actual over estimated return on plan assets - -

(Actual rate of return = Estimated rate of return as ARD falls on 31st March)

5) Actuarial Gain/Loss recognized as on 31.03.2015/31.03.2014

Actuarial (gain)/loss on obligations (2,14,21,785) 1,29,79,653

Actuarial (gain)/loss for the year – plan assets - -

Actuarial (gain)/loss on obligations ) 2,14,21,785 (1,29,79,653

Actuarial (gain)/loss recognized in the year 2,14,21,785 (1,29,79,653)

6) Amounts to be recognized in the balance sheet and statements of profit and loss

Present value of obligations as at the end of year 17,97,51,003 17,98,71,089

Fair value of plan assets at the end of year 13,73,92,610 18,62,65,388

Funded status (4,23,58,393) 63,94,299

Net asset/(Liability) recognized in balance sheet 4,23,58,393 63,94,299

7) Expenses Recognised in statement of P & L

Current Service cost 69,68,650 82,32,620

Interest Cost 1,17,36,938 1,43,80,080

Expected return on plan assets ) (1,03,68,175) (1,36,26,541

Net Actuarial (gain)/loss recognized in the year ) 2,14,21,785 (1,29,79,653

Expenses recognized in statement of Profit and loss ) 2,97,59,198 (39,93,494

18.1

-40-

(` in lakhs)

21. PROVISIONS

20. ADMINISTRATIVE AND OTHER EXPENSES

Provisions Against Jewel Loans for Rate Fluctuation - 2,214.58

Provisions for Doubtful Debts - 165.39

Total - 2,379.97

Audit Fees (i) for audit 15.85 15.17

(ii) for taxation matters 2.89 -

(iii) for reimbursement of expenses - 0.03

18.74 15.20

Rent 253.40 233.71

Travelling and conveyance 33.04 27.17

Communication expenses 58.42 66.83

CSR Expenses 1.48 -

Electricity 61.36 58.91

Insurance 74.24 78.21

Donation - 1.12

Rates and Taxes 19.14 18.07

Cleaning Expenses 20.60 18.60

Printing and Stationery 66.21 57.16

Sundry Repairs 29.85 29.02

Repairs to Building 0.24 1.77

Advertisement 15.25 19.18

Fuel Consumption charges 11.60 20.16

Computer maintenance 5.87 4.42

Directors' sitting fees 12.50 15.00

Professional fees 3.81 2.50

Law Charges 1.82 14.84

Other expenses 139.66 77.37

Loss on Jewel Auction 1,227.06 -

Total 2,054.29 759.24

As at March 31, 2015 As at March 31, 2014PARTICULARS




19. FINANCE COSTS

Interest on borrowings from banks 133.35 292.41

Interest on deposits 15,288.56 17,182.67

Total 15,421.91 17,475.08

-41-

Deferred Tax Asset

Amount amortized under VRS Scheme -

NPA Provision 2379.971539.97

Aggregate of above amounting to DTA 2379.971539.97

Deferred Tax Liability

WDV as per Companies Act 1,010.021,175.12

WDV as per Income Tax Act 819.04842.38

Difference - DTL 190.98332.74

Net Difference amounting to DTA 2189.001,207.23

Tax thereon @ 30% 656.70362.17

Surcharge thereon @ 5% 65.6718.11

Education Cess @ 2% and SHE @ 1% 1.9711.41

Total Deferred Tax Assets 724.34391.69

Deferred Tax Asset/(Liability) already in books 285.42724.34

Deferred Tax Assets written off 438.92332.65

` In lakhs

As at 31.03.2015Particulars As at 31.03.2014



22. DEFERRED TAX ASSETS


-42-

NOTES FORMING PART OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2015

A. Corporate Information:

The Kumbakonam Mutual Benefit Fund Limited (“the company”) is a public limited company domiciled in India, incorporated in the year 1903 under the provisions of the Companies Act, 1882 and notified as a Nidhi Company under section 620A of the Companies Act, 1956. The company deals only with its members and works on mutuality by accepting deposits from and lending among members. The company is governed by the Notifications issued from time to time by the Ministry of Corporate Affairs.

B. Summary of significant accounting policies

1. AS 1 – Disclosure of Accounting Policies:

The financial Statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (India GAAP). The Company has prepared these financial statements to comply in a material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The financial statement are prepared and presented in the form set out in Part I and Part II of Revised Schedule III of the Companies Act, 2013 so far as they are applicable thereto. The previous year figures are regrouped wherever necessary.

These financial statements are presented in Indian rupees and rounded off to nearest rupees unless otherwise stated.

Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles in India (Indian GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of financial statements which in management's opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

2. AS 2 -Valuation of Inventories:

Since the company is a Nidhi Company, there is no stock of raw materials, finished goods, etc. The company holds stock of books and forms, which is classified under Other Current Assets.

3. AS 3 - Cash Flow Statements:

Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts and payments. The Cash Flows from Operating, investing & financing Activities of the company are segregated on the available information

Cash and cash equivalents:

Cash and cash equivalents comprise of cash on hand, balances in current accounts. Cash equivalents are short term liquid investments that are readily convertible into known amounts of cash. Fixed Deposits having maturity period of more than 12 months are considered as cash Equivalents.

4. AS 4 -Events Occurring After the Balance Sheet Date:

In respect of Jewel loans, the company has made a detailed study in respect of fluctuations provisions in

the value of Gold Prices and has made a provision and disclosed in the respective notes. The management is

conducting comprehensive review of these accounts and is bringing these accounts to auction. Further the

diminution in the value of these accounts was also considered in the provisioning for diminution in value of

gold.



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5. AS 6 – Depreciation Accounting:

Depreciation on tangible assets has been provided as per the written down value method as per the

useful life's prescribed under Schedule II of the Companies Act, 2013 except in case of Safe and Safe Lockers

useful life is determined by the company as 60 years.

All fixed assets individually costing `.5,000 or less are fully depreciated in the year of installation.

Depreciation on assets acquired/sold during the year is recognized on prorata basis in the statement of profit

and loss from the date of acquisition or till the date of sale.

Intangible assets represent Computer software whose cost is amortised over their expected useful life,

on a straight-line basis.

6. AS 9 - Revenue recognition:

a) Income of the company is derived from interest on loans and advances made. Interest income from

all loans and advances other than Non-Performing Assets (As per Nidhi Rules-Jewel Loan Accounts which are

more than 15 Months) is recognized on accrual basis.

a) Interest income on deposit accounts with banks is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

b) In respect of Lockers, income is revenue neutral.

c) Rent income due to the company is accounted for on accrual basis.

7. AS 10 - Fixed Assets:

a) Fixed assets are stated at historical cost, less accumulated depreciation.

b) The cost comprises of purchase price and directly attributable cost for bringing the asset to its

working condition for the intended use.

c) Any trade discounts and rebates are deducted in arriving at the purchase price.

d) Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases

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

All other expenses on existing fixed assets, including day to day repair and maintenance expenditure

and cost of replacing parts, are charged to the statement of profit and loss for the period during which

such expenditure is incurred.

e) Gains or losses arising from derecognition of fixed assets are measured as the difference between the

net disposal proceeds and the carrying amount of the asset and are recognized in the statement of

profit or loss when the asset is derecognized.

8. AS 13 –Investments

The company does not hold any investment in securities.

9. AS 15 - Retirement and other employee benefits:

a) Provident fund:

All the employees of the company are entitled to receive benefits under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, a defined contribution plan in which both the employees and the company contribute monthly at a stipulated rate. The company has no liability for future Provident Fund benefits other than its annual contributions and recognizes such contributions as expenses in the year it is incurred.

b) ESI:

The company is paying ESI premium for the covered Employees as per the provisions of employees 'State Insurance Act, 1948.



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c) Gratuity:

The company makes an annual contribution to a gratuity fund administered and managed by the Life

Insurance Corporation of India (LIC). The company accounts its liability based on an actuarial valuation using the

Projected Unit Credit Method as at the Balance Sheet date determined every year by LIC.

d) Superannuation :

The company makes fixed contributions as a percentage on salary to the superannuation fund which is

administered and managed by LIC. The above contributions are charged to the statement of profit and

loss.

e) Leave Encashment:

The company contributes to a staff leave encashment scheme managed by LIC.

10. AS 16 - Borrowing costs :

Borrowing costs relate to revenue items only and hence are charged to statement of profit and loss in

the year in which they are incurred.

11. AS 19 – Leases:

There are no finance leas es or operating leases.

12. AS 17 – Segment Reporting :

The company operates in single reportable segment. Therefore, the segment wise reporting has not

been given.

13. AS 20 - Earnings per share (EPS):

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity

shareholders (after deducting attributable taxes) by the weighted average number of equity shares

outstanding during the year.

14. AS 22- Provision for Current and Deferred Tax:

a. Provision for Current Tax is made after taking into considerations benefits admissible under the

provisions of the Income Tax Act, 1961.

b. Deferred tax resulting from timing differences between taxable and accounting income that

originate in one period and is capable of reversal in one or more subsequent years, is accounted

for using the tax rates and laws that are enacted or substantially enacted as on the balance sheet

date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual

certainty that the asset will be realized in future. Deferred tax liability is recognized for timing

differences that will result in taxable amounts in future years.

15. AS 26 - Intangible assets

Intangible Assets are recognized only if it is probable that the future economic benefits that are

attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably.

The intangible assets are stated at cost and will be carried at cost less accumulated depreciation and

accumulated impairment losses, if any.

Computer software which does not form an integral part of the related hardware is classified as an

intangible asset and will be amortized over the estimated useful life.



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16. AS 28 – Impairment of Assets

There was no indication of any potential impairment of any of the fixed assets of the company.

17. AS 29 - Provisions, Contingent Liabilities

a. Provisions :

A provision is recognized when the company has a present obligation as result of past event. It is

probable that an outflow of resources will be required to settle the obligation and a reliable

estimate can be made of the amount of the obligation. Provisions are not discounted to their

present value and are determined based on the best estimate required to settle the obligation at

the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the

current best estimates.

b. Contingent liabilities :

A contingent liability is a possible obligation that arises from past events whose existence will be

confirmed by the occurrence or non-occurrence of one or more uncertain future events, which

are beyond the control of the company. A contingent liability also includes a present obligation

that is not recognized because it is not probable that an outflow of resources will be required to

settle the obligation. A contingent liability also arises where a liability cannot be measured

reliably. The company does not recognize a contingent liability in the accounts but discloses its

existence in the financial statements.

18. AS 18 – Related Party Disclosures :

Related Party Transactions for the year ended 31ST MARCH 2015

Particulars Key Management 2014-15 2013-14 Personnel

Remuneration Managing Director ` ` 6,48,38710,00,000



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19A. Claims against the company not acknowledged as debts:

Sl. No.

1

2

3

Income TaxAct, 1961

Finance Act,1994

Service Tax

Statute Nature of DuesForum in

which disputeis pending

Assessment year to

which theamount relates

Additionsmade by

the Department

Estimated Tax

effected

High Court,Chennai 2003-04 20.14 6.71

High Court,Chennai 2004-05 54.41 18.13

Commissioner of Income tax 2006-07 334.52 111.45(Appeals)Trichy

Commissioner of Income Tax 2011-12 598.15 *211.33(Appeals), Trichy

Central Excise& Customs, 2006-07 9.36 1.15(Appeals), Service Tax 2007-08 17.58 2.17 Appellate Tribunal 2008-09 15.54 1.92

The Income Tax assessment had been

completed, considering the notional

interest due on sticky loans. The appeals

filed against the orders of the A.O. had

been successful and further appeals to

High Court and Tribunal by the

Department are pending disposal.

Advert isement charges recovered

processing fees, share transfer fees,

notice fees were considered as in course

from services by the Service Tax

Department as income from services and

accordingly demand raised. In the appeal

with the Commissioner of Customs,

Central Excise (Appeals), Trichy the order

of the Joint Commissioner of Customs,

Excise & Service Tax has been

set-aside. However, Department has

preferred an appeal with the Tribunal.

Internal Audit conducted for the period April 2009 to June 2014

Wrong availment of cenvat credit on ineligible service.Amount involved Rs.6,82,488/-


` In lakhs

In the event, the outcome of the appeal filed with CESTAT not being favourable to the company there would

be further service tax liability for the subsequent Years (After A.Y.2008-09)

*During the year refund amount for the AY 2013-14 of Rs. 387.66 Lakhs were adjusted against the demand

for the AY 2006-07 for Rs. 111.34 Lakhs and for the AY 2011-12 for Rs. 276.32 Lakhs.

19B. Guarantees & other money for which the company is contingently liable: Nil

20. Capital advance

The company has not made any material capital advance during the year.

21. Overdue deposits

Overdue deposits are classified as current liabilities.

Interest on these accounts has been provided for at the rates applicable for savings bank accounts.



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23 Disclosures required under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 :

Any liability to such companies is discharged then and there, without any credit being availed from them.

24 Statutory Deposits : In terms of Nidhi Rules the company is maintaining unencumbered statutory deposits with scheduled commercial banks.

25 Debts due by the directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or director or a member.

22. Provision/write off of assets

The company has made provision for fluctuation in the value of jewels and also for auction loss.


` in Lakhs

` in Lakhs

26 Figures have been regrouped wherever necessary.

Particulars 31.03.2015 31.03.2014

Provision for Rate Fluctuation in Jewels 2,575.521,735.52

Provision for Doubtful debts 412.064,12.06

Total 2,147.58 2,987.58

Debts due by As on 31.03.2015 Secured Unsecured Interest Receivable

Directors Nil Nil Nil OfficersLoans 142.46 211.10 54.65Festival Advance - 20.20 -Firm/Companies Nil Nil Nil As on 31.03.2014Directors Nil Nil NilOfficersLoans 83.15 53.37 13.83Festival Advance - 5.22 -Firm/Companies Nil Nil Nil



L.MeiyappanDirector






For Ganesh Venkat & Co.Chartered AccountantsF.R.No. 005293S

For B.V.Balaji & Co.Chartered AccountantsF.R.No. 010641S

For G.Giridharan & Co.Chartered AccountantsF.R.No. 009362S

For DPV & Associates,Chartered AccountantsF.R.No. 011688S

G.AdhisivanMembership No.029647Partner

B.V.BalajiMembership No.208550Proprietor

G.GiridharanMembership No.209405Partner

K.Vaira MutthuMembership No.218791Partner


Place : Kumbakonam .Date : 13.08.2015



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Cash flow Statement for the year ended 31st March, 2015

(` in lakhs)


A. CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit as per Statement of Profit and Loss 3,727.32 4,036.95

Add: Depreciation 244.20 171.76

Loss/(Profit) on sale of assets (net) (1.45) (0.95)

Provisions Against Jewel Loans - 2,214.58

Provisions for Doubtful Debts - 165.39

Provisions W/back (802.86) (804.31) - 2,379.02

Operating profit before working capital changes 3,167.21 6,587.73

Adjustments for:

Current Assets

Increase in Long term Loans and Advances 4.80 (33,351.35)

Increase in Other Non-current Assets 161.72

Increase in Short-term loans and advances 8,555.70

Increase in Other Current Assets 6,051.84

Increase in Current Assets 14,774.06 (33,351.35)

Increase in long term borrowings 268.94 (8,401.74)

Increase in short-term borrowings 4,085.87 30,862.35

Decrease in other current liabilities (7,833.41) (33,057.28)

Decrease in short-term provisions (1,576.66) 16.00

Decrease in Current Liabilities And Provisions (5,055.26) (10,580.67)

Net decrease 19,829.32 22,770.68

Cash flow before taxation (16,662.11) 29,358.41

Less : Taxes paid 1,459.13 2,489.90

CASH GENERATED\(USED) FROM OPERATING ACTIVITIES (18,121.24) 26,868.51

B. CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of fixed assets (450.94) (111.85)

Sale of fixed assets 4.68 5.17

CASH GENERATED\(USED) IN INVESTING ACTIVITIES (446.26) (106.68)

C. CASH FLOW FROM FINANCING ACTIVITIES:

Dividends paid (including Tax) (695.26)

Money Received during the year for fresh issue of shares 6.40 7.33

Share application money pending Allotment 1.22 0.42

CASH GENERATED\(USED) FROM FINANCING ACTIVITIES 7.62 (687.52)

Increase in cash and cash equivalents (18,559.89) 26,074.30

Add : Opening cash 43,461.41 17,387.11

CLOSING CASH BALANCE 24,901.52 43,461.41

31.03.2015 31.03.2014Particulars



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STATEMENT OF PROGRESSYear 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Paid up capital 1473.89 1826.07 2258.60 2876.34 2896.04 2904.11 2910.51

Reserves & Surplus 1506.50 2002.13 3002.25 4914.49 7832.64 9350.81 10937.26

Deposits 56608.99 67257.76 88347.87 126737.88 153046.13 160735.01 157074.43

Advances 51572.62 67520.93 97844.92 135681.66 167136.19 133918.31 142477.03

Profit 601.41 1167.53 2439.76 3713.54 5639.81 4036.95 3767.26

Dividend (p.a) 15% 16% 18% 20% 22% 22% 22%

No. of Branches 80 85 90 90 99 99 103

(` in lakhs)

1. Aduthurai 0435-2472205 2. Ambattur 044-26584899 3. Ammapettai 04374-232636 4. Arani 04173-226865 5. Ariyalur 04329-220990 6. Ashok Nagar 044-24899584 7. Avadi 044-26554899 8. Aattur 04282-250102 9. Batlagundu 04543-262369 10. Chengalpattu 044-27429510 11. Chidambaram 04144-223009 12. Chinmaya Nagar 044-24791217 13. Chinnamanur 04554-248149 14. Chintadripet 044-28456700 15. Chromepet 044-22655767 16. Coimbatore 0422-2599944 17. Cuddalore 04142-236753 18. Dharmapuri 04342-265005 19. Dindigul 0451-2433206 20. East Tambaram 044-22273055 21. Erode 0424-2264290 22. Gandarvakottai 04322 - 275337 23. Guduvanchery 044-27462001 24. Jayankondam 04331-250211 25. K.Pudur, Madurai 0452-2564666 26. Kallakkurichi 04151-223875 27. Kanchipuram 044-27233104 28. Karaikal 04368-223294 29. Karaikudi 04565-234277 30. Karur 04324-264138 31. Koothanallur 04367-232737 32. Krishnagiri 04343-237005 33. Kulithalai 04323-222390 34. Kumbakonam Bazaar 0435-2420790 35. Kumbakonam Besant Road 0435-2421041 36. Kumbakonam 0435-2431648 37. Madipakkam 044-22423130 38. Madukkur 04373-260252 39. Madurai 0452-2344187 40. Mangalapuram - Thanjavur 04362-246100 41. Mannachanallur 0431-2560879 42. Manapparai 04332-260402 43. Mannargudi 04367-252237 44. Mayiladuthurai 04364-223067 45. Melur 0452-2417194 46. Mylapore 044-24951439 47. Nachiarkoil 0435-2466622 48. Nagapattinam 04365-240776 49. Nagercoil 04652-220677 50. Namakkal 04286-223129 51. Nanganallur 044-22242749 52. Needamangalam 04367-260202 53. Neyveli 04142-263444

BRANCHES TELEPHONE NUMBER 54. Orathanadu 04372-232446 55. Palani 04545-243148 56. Pallavaram 044-22641332 57. Panruti 04142-242077 58. Papanasam 04374-222854 59. Pattukkottai 04373-252348 60. Peralam 04366-238579 61. Perambalur 04328-276548 62. Perambur 044-25510490 63. Periyakulam 04546-231821 64. Pollachi 04259-229426 65. Ponneri 044-27973103 66. Poonamallee 044-26495583 67. Porur 044-24769124 68. Pudukkottai 04322-222154 69. Rajapalayam 04563-220525 70. Ramanathapuram 04567-222101 71. Saidapet 044-24340484 72. Salem 0427-2210203 73. Sankarankoil 04636-222269 74. Sirkali 04364-270985 75. Srirangam 0431-2433158 76. T.Nagar (Fax 044-28144286) 044-28141334 77. Tambaram 044-22266043 78. Thanjavur 04362-231641 79. Theni 04546-254472 80. Thirukkattupalli 04362-280545 81. Thirumangalam 04549-280284 82. Thiruppanandal 0435-2456020 83. Thiruppurambiyam 0435-2459472 84. Thiruthuraipoondi 04369-222851 85. Thiruvaiyaru 04362-260551 86. Thiruvallur 044-27662664 87. Thiruvanmiyur 044-24421789 88. Thiruvarur 04366-222367 89. Thiruverumbur 0431-2510197 90. Thiruvottiyur 044-25737701 91. Thoothukudi 0461-2323548 92. Tindivanam 04147-222074 93. Tiruchirapalli 0431-2419856 94. Thirunelveli 0462-2333548 95. Tirupattur 04179-221006 96. Tiruppur 0421-2203150 97. Thiruvannamalai 04175-223182 98. Triplicane 044-28480609 99. Udumalaipettai 04252-224033 100. Valangaiman 04374-264455 101. Velachery 044-22431109 102. Vellore 0416-2222201103. Vilupuram 04146-222956104. Virudhachalam 04143-230337105. Virudhunagar 04562-246093

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THE KUMBAKONAM MUTUAL BENEFIT FUND LIMITED

CIN: U65991TN1903PLC001246

145, Big Street, Kumbakonam - 612 001

Form No.MGT – 11

PROXY FORM

[Pursuant to Section 105(6) of the Compani es Act, 2013 and Rule 19(3) of the Companies (Management

and Administration) Rules, 2014]

Name of the member(s) Registered address

E-mail ID Folio No.

I/We, being the member(s) holding ……………………………….. Shares of the above named Company, hereby appoint 1. Name ……………………………………………................................…………………………………………….................................…………………………………………….........................

……………………………………………................................…………………………………………….................................…………………………………………….........................

……………………………………………................................…………………………………………….................................…………………………………………….........................

……………………………………………................................…………………………………………….................................…………………………………………….........................

……………………………………………................................…………………………………………….................................…………………………………………….........................

……………………………………………................................…………………………………………….................................……………………………………………........................

……………………………………………................................………………

……………………………………………................................………………

……………………………………………................................………………

…………………………………………….............

…………………………………………….............

…………………………………………….............

Address

Email Id: Signature or failing him/her

2. Name

Address

Email Id: Signature or failing him/her

3. Name

Address

Email Id: Signature

Resolution No.

Resolutions

Ordinary Business 1.

To receive, consider and adopt the audited financial statements of the Company for the financial year ended March 31, 2015 and the reports of the Board of Directors and Auditors thereon.

2.

To declare dividend for the year 2014-15.

3.

To appoint a director in the place of Sri.L.Meiyappan (DIN 03620141) who retires by rotation and, being eligible, offers himself for re-election as an Independent Director.

4.

Ratification of appointment of Statutory Auditors approved by the members at the 110th

AGM and fix

their remuneration.

Special Business

5.

Ratification of Increase in remuneration of Managing Director.

6.

Re-appointment of Shri.N.D.Narasimhan as Vice Chairman and Managing Director.

7. Payment of One percent remuneration to Non-Executive & Independent Directors.

Signed this.........................................................day of.............................,2015

Signature of shareholder(s) .........................................................................................

Signature of Proxyholder(s)....................................................................................... .

Affix Revenue Stamp Re.1/-

Note: 1. This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the Meeting.

2. Please complete all details of member(s) in the above box before submission.

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Hundred and

Eleventh Annual General Meeting of the Company, to be held on Wednesday, the 23rd September, 2015,

at 9.15 A.M. at JANARANJANI HALL, GOPAL RAO LIBRARY BUILDINGS, TOWN HALL ROAD,

KUMBAKONAM - 612 001 and at any adjournment thereof in respect of such resolutions as are

indicated below:

rdHundred and Eleventh Annual General Meeting– 23 September, 2015

THE KUMBAKONAM MUTUAL BENEFIT FUND LTD.,

(Regd. Office: 145, Big Street, Kumbakonam – 612 001)

CIN : U65991TN 1903 PLC 001246. Ph: 0435 – 2401548

Fax : 0435-2431682 Website : www.kmbf.co e-mail : [email protected]

Attendance Slip

Please sign this slip and hand it over at the entrance of the meeting hall.

Name of Member (Mr/Ms.) Name of the Proxy (Mr/Ms.)

Share Certificate Number Proxy Acknowledge Number

Number of Shares: Number of Shares:

I hereby record my presence at the 111th Annual General Meeting

on Wednesday, the 23rd September, 2015 at 9.15 a.m. at “Janaranjani

Hall”, Gopal Rao Library Buildings, Town Hall Road, Kumbakonam.

Signature of the Member/Proxy

------------------------------------------------------------------------------------------

The K.M.B.F.Ltd., (145: Big Street, Kumbakonam)

Attendance Slip Counterfoil

Annual General Meeting : 23-09-2015 Time 9.15 a.m.

Name of Member (Mr/Ms.) Name of the Proxy (Mr/Ms.)

Share Certificate Number Proxy Acknowledge Number

Number of Shares: Number of Shares:

THE KUMBAKONAM MUTUAL BENEFIT FUND LTD., report 2014 - 15 book matter.pdf · The Kumbakonam Mutual...

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