Moneycontrol
Get App
Close Ad
SENSEX NIFTY
Mahindra & Mahindra Financial Services Directors Report, M&M Financial Reports by Directors
YOU ARE HERE > MONEYCONTROL > MARKETS > FINANCE - LEASING & HIRE PURCHASE > DIRECTORS REPORT - Mahindra & Mahindra Financial Services

Mahindra & Mahindra Financial Services

BSE: 532720|NSE: M&MFIN|ISIN: INE774D01024|SECTOR: Finance - Leasing & Hire Purchase
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Jun 18, 16:00
396.80
1.4 (0.35%)
VOLUME 51,894
LIVE
NSE
Jun 18, 15:59
395.90
0.95 (0.24%)
VOLUME 1,122,654
Download Annual Report PDF Format 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '18    Mar 17

To,

The Members of

Mahindna & Mahindra Financial Services Limited

The Directors are pleased to present their Twenty-Eighth Report together with the audited financial statements of your Company for the Financial Year ended 31st March, 2018.

The performance highlights and summarised financial results of the Company are given below:

PERFORMANCE HIGHLIGHTS

Consolidated income for the year increased by 19% to Rs. 8,573.5 Crores as compared to Rs. 7,200.7 Crores in 2016-17;

Consolidated income from operations for the year was Rs. 8,533.1 Crores as compared to Rs. 7,146.2 Crores in 2016-17, a growth of 19%;

Consolidated profit before tax for the year was Rs.1,661.7 Crores as compared to Rs. 837.8 Crores in 2016-17;

Consolidated profit after tax and minority interest for the year was Rs. 1,023.9 Crores as compared to Rs.511.6 Crores in 2016-17.

FINANCIAL RESULTS

Rs. in Crores

CONSOLIDATED

STANDALONE

March 2018

March 2017

March 2018

March 2017

Total Income

8,573.5

7,200.7

7,206.1

6,237.5

Less : Finance Costs

3,426.3

3,186.2

3,000.4

2,857.4

Expenditure

3,481.0

3,123.0

2,853.7

2,714.0

Depreciation/Amortisation

55.2

53.7

44.2

46.0

Total Expenses

6,962.5

6,362.9

5,898.3

5,617.4

Profit Before Exceptional Items and Taxes

1,611.0

837.8

1,307.8

620.1

Exceptional Items (net) - income / (expense)

50.7

-

65.0

-

Profit Before Tax

1,661.7

-

1,372.8

-

Less : Provision For Tax

Current Tax

676.3

463.5

543.1

363.5

Deferred Tax

[66.0]

(155.4)

(62.2)

[143.6]

Profit After Tax for the Year before Minority Interest

1,051.4

529.7

891.9

400.2

Less : Minority Interest

27.5

18.1

-

-

Profit After Tax for the Year after Minority Interest

1,023.9

511.6

891.9

400.2

Add : Amount brought forward from Previous Years

2,850.5

2,522.4

2,489.0

2,240.5

Less: Corporate Dividend and Dividend Distribution Tax

164.3

2.8

161.0

-

Less: Transitional charge in respect of Mark to Market loss on derivative transactions

-

5.1

-

5.1

Amount available for Appropriation

3,710.1

3,026.1

3,219.9

2,635.6

Appropriations

General Reserve

88.4

40.0

89.2

40.0

Statutory Reserve

224.3

109.1

178.4

80.1

Debenture Redemption Reserve

50.5

26.5

50.5

26.5

Surplus carried to Balance Sheet

3,346.9

2,850.5

2,901.8

2,489.0

TRANSFER TO RESERVES

The Company proposes to transfer an amount of Rs. 89.2 Crores to the General Reserve, Rs.178.4 Crores to the Statutory Reserve and Rs.50.5 Crores to the Debenture Redemption Reserve. An amount of Rs.2,901.8 Crores is proposed to be retained in the Statement of Profit and Loss.

DIVIDEND

Your Directors are pleased to recommend a dividend of Rs. 4 per Equity Share of the face value of Rs. 2 each payable to those Members whose names appear in the Register of Members as on the Book Closure date. The dividend including dividend tax for the Financial Year 2017-18 will absorb a sum of Rs. 293.8 Crores [as against 161.0 Crores on account of dividend of Rs. 2.4 per Equity Share and tax thereon, paid for the previous year].

DIVIDEND DISTRIBUTION POLICY

The Board of Directors at its Meeting held on 25th October, 2016, approved and adopted the Dividend Distribution Policy, containing the requirements prescribed in Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Policy is appended as Annexure I and forms part of this Annual Report.

The Dividend Distribution Policy can also be accessed on the Company’s website at the web-link http://www.mahindrafinance.com/policies.aspx.

During the year, an amount of Rs.3,39,065 being the unclaimed/unpaid dividend of the Company for the Financial Year ended 31st March, 2010 was transferred in September, 2017 to the Investor Education and Protection Fund Authority.

OPERATIONS

After three years of subdued rural consumption, there were increasing signs of rural growth recovery with catalysts driving the awaited revival in rural demand. While two successive years of normal monsoon portend well for farm output, the combination of Minimum Support Price (MSP) hikes, direct benefit transfers and farm loan waivers contributed to disposable incomes. The rural sentiments turned positive and the Company did see an improvement in its performance, both in sales as well as overall collections.

Being largely engaged in the semi-urban and rural areas of the country, major part of the Company’s collection is in cash. Your Company however continues to educate its customers to adopt digital and online modes of repayment including Unified Payments Interface (UPI) and Aadhaar Enabled Payment System (AEPS).

While fulfilling its mission of Financial Inclusion, your Company has also built a deep knowledge of customers with micro-data points ranging from income, payment behaviours, socio-economic status and other indirect data. The Company is successfully mining this data to build powerful analytics models extended through digital platforms for customer acquisition, collections, NPA management, customer engagement, forecasting business trends, etc. Your Company has also successfully integrated India Stack capabilities like eKYC, eSign, etc., and digital payment channels in its platforms to serve customers even in low-connectivity remote locations. Among the early adopters of blockchain technology, your Company has in the year under review, launched a vendor financing platform powered by blockchain. This cloud based application is one of the first such blockchain-enabled projects in South Asia, outside of traditional banking.

Your Company remains a significant financier to its customers in rural and semi-urban geographies by providing a wide range of easy and affordable products and services. Your Company consolidated its position as a leading financier in all Aggregator and Self-drive vehicles segment. Your Company expanded vide its channel connect with leading car dealers, and yet again emerged as a major financier for Maruti vehicles in semi-urban and rural India during this fiscal. Your Company has retained its leadership position in financing the Mahindra range of vehicles and tractors in addition to extending its lending to vehicles of other Original Equipment Manufacturers (OEMs) and also continued to be the preferred financier for Hyundai, Renault and Nissan range of vehicles.

Your Company further expanded its geographical presence by reaching out to untapped villages and increased its footprint by opening new branches and making it more accessible to its customers. New financial products and services were introduced during the year, to meet various lifecycle needs of its customers and your Company focused on building additional skill sets and digital capabilities to meet such requirements. Your Company has also enhanced the offerings in-used tractor financing and agri-implements, thereby playing a key role in farm mechanisation across the country.

Your Company strengthened its pan-India presence with a network of 1,284 offices, which is one of the largest amongst Non-Banking Financial Companies. In addition to these offices, your Company has during the year under review, set up over 200 smart branches at dealerships of OEMs and works closely with dealers and customers. Your Company’s nationwide network of branches and locally recruited employees have facilitated in catering to the diverse financial requirements of its customers by identifying and understanding the needs and aspirations of the people.

With its strong presence covering even the most remote areas of the country, your Company is providing flexible financing opportunities to aspiring individuals to realise their dreams and helping them to ‘RISE’. Your Company believes that incessantly serving its customers and channel partners and enhancing customer relationship is the starting point of a great successful journey.

Your Company has earned the trust and confidence of its customers with its consistent, transparent and reliable services and as a result, customer satisfaction across its network continues to remain high. Your Company has cumulatively financed the aspirations of over 5.3 million customers since its inception, most of whom had no prior credit history. Your Company’s philosophy of helping rural customers by providing easy finance at their doorstep has given a big boost in transforming rural lives.

During the year under review, your Company continued to expand its reach in the Micro Small and Medium Enterprises (MSME) segment. MSME Assets Under Management crossed more than Rs. 4,988.04 Crores during the period under review, covering 3,017 customers.

In the year under review, the effect of demonetisation has substantially come down with improved availability of currency notes. Further with the stabilization of the Goods and Services Tax (GST) the temporary downward impact witnessed during the roll-out has been adequately addressed.

The overall disbursement registered a growth of 19% at Rs. 31,659.1 Crores as compared to Rs. 26,706.3 Crores in the previous year. Total Income grew by Rs. 968.6 Crores to Rs.7,206.1 Crores for the year ended 31st March, 2018 as compared to Rs.6,237.5 Crores for the previous year. Profit Before Tax (PBT) grew by Rs.752.6 Crores to Rs.1,372.7 Crores as compared to Rs. 620.1 Crores for the previous year. Profit After Tax (PAT) increased by Rs. 491.7 Crores to Rs.891.9 Crores as compared to Rs.400.2 Crores in the previous year

During the year under review, the Assets Under Management stood at Rs. 55,101 Crores as at 31st March, 2018 as against Rs. 46,776 Crores as at 31st March, 2017, a growth of 18%.

There is no change in the nature of business of the Company during the year under review.

DISTRIBUTION OF MUTUAL FUND PRODUCTS

During the year under review, the activity of distribution of Mutual Fund Products (MFP) was carried out across 161 branches covering 23 States.

As on 31st March, 2018, the amount of Assets Under Management outstanding through the Company’s Distribution Services on MFP aggregate of institutional and retail segment, was Rs. 2,331.40 Crores and the number of clients stood at 59,506.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A detailed analysis of the Company’s performance is discussed in the Management Discussion and Analysis Report, which forms part of this Annual Report.

CORPORATE GOVERNANCE

Your Company practices a culture that is built on core values and ethical governance practices. Your Company is committed to transparency in all its dealings and places high emphasis on business ethics. A Report on Corporate Governance along with a Certificate from the Statutory Auditors of the Company regarding compliance with the conditions of Corporate Governance as stipulated in Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46 and paragraphs C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements] Regulations, 2015, forms part of the Annual Report.

SHARE CAPITAL

During the year under review, your Company received the approval of its shareholders to issue upto 2.5 Crores Equity Shares by way of Preferential Allotment to its promoter, Mahindra & Mahindra Limited (“Promoter”) and upto 2.4 Crores Equity Shares by way of Qualified Institutions Placement (“QIP”) and successfully raised a total of Rs. 2,111 Crores through the above issuances made to both its Promoter and a mix of domestic and international Qualified Institutional Buyers.

Preferential Allotment

The Company made a preferential allotment of 2,50,00,000 Equity Shares on 30th November 2017, to its holding company, Mahindra & Mahindra Limited at a price of Rs.422 per Equity Share, including a premium of Rs. 420 per Equity Share, raising a sum of Rs.1,055 Crores.

Qualified Institutions Placement (QIP)

On 7th December, 2017, your Company successfully concluded the QIP issue to Qualified Institutional Buyers aggregating Rs. 1,056 Crores through the issue of 2,40,00,000 Equity Shares of the Face Value of Rs. 2 each at an issue price of Rs. 440 per Equity Share including a premium of Rs. 438 per Equity Share, which is a premium to the price of Rs. 439.63 per share, arrived at as per Regulation 85 of Securities and Exchange Board of India [Issue of Capital and Disclosure Requirements] Regulations, 2009. The QIP launched by your Company received an overwhelming response, as seen by the issue being subscribed multiple times and the strong participation from renowned International and Domestic Institutional Investors.

Consequent to the Preferential Allotment and QIP the issued, subscribed and paid-up Equity Share Capital of the Company stood at Rs.123.55 Crores as at 31st March, 2018, comprising of 61,77,64,960 Equity Shares of the face value of Rs. 2 each, fully paid-up.

With the Promoter maintaining majority shareholding, your Company continues to benefit by leveraging the financial and operational synergies with its Promoter and with the simultaneous QIP issuance, it has been able to diversify its investor base.

Your Company has duly utilised the issue proceeds raised through the Preferential Issue and QIP to augment its long-term resources for meeting business growth and funding requirements, strengthen its capital adequacy, make investments in its Subsidiaries and Joint Venture, for other general corporate purposes and for payment of Issue expenses. This is in line with the issue purpose mentioned in the Explanatory Statement of the Notice of the Extraordinary General Meeting dated 1st November, 2017 and the Placement Document filed with various Regulatory Authorities. Details of these Issues and the end use of funds were furnished to the Audit Committee.

During the year under review, your Company has neither issued shares with differential rights as to dividend, voting or otherwise, nor has issued sweat equity, other than Employee Stock Options under the Employees’ Stock Option Scheme referred to in this Report, during the year under review.

As on 31st March, 2018, none of the Directors of the Company holds instruments convertible into Equity Shares of the Company.

STOCK OPTIONS

During the year under review, on the recommendation of the Nomination and Remuneration Committee of your Company, the Trustees of the Mahindra & Mahindra Financial Services Limited Employees’

Stock Option Trust have granted 62,130 Stock Options to Eligible Employees under the Mahindra & Mahindra Financial Services Limited Employees’ Stock Option Scheme-2010 [“2010 Scheme”]. No new Options have been granted under the Mahindra & Mahindra Financial Services Limited Employees’ Stock Option Scheme-2005 [“2005 Scheme”] [hereinafter collectively referred to as “the Schemes”]. The Company does not have any scheme to fund its employees to purchase the shares of the Company. No employee has been issued stock options during the year, equal to or exceeding 1% of the issued capital of the Company at the time of grant.

The Schemes of the Company are in compliance with the Securities and Exchange Board of India [Share Based Employee Benefits] Regulations, 2014 [“SBEB Regulations”] and there were no material changes made to the said Schemes. Messrs. B S R & Co. LLP, Chartered Accountants, Statutory Auditors of the Company, have certified that the abovementioned Schemes have been implemented in accordance with the SBEB Regulations, and the Resolutions passed by the Members for the 2005 Scheme and the 2010 Scheme. The Certificate would be placed at the Annual General Meeting for inspection by Members.

Voting rights on the Shares issued to employees under the aforesaid Schemes are either exercised by them directly or through their appointed proxy.

The details of the Employees’ Stock Options and the Company’s Employees’ Stock Option Trust as required under the SBEB Regulations read with SEBI Circular CIR/CFD/ POLICY CELL/2/2015 dated 16th June, 2015 have been uploaded on the Company’s website and can be accessed at the web-link: http://www. mahindrafinance.com/annual-reports.aspx.

ECONOMY

Global

At 3.8 percent, global growth last year was 0.5 percentage point faster than in 2016 and the strongest since 2011. Two-thirds of countries accounting for about three-fourths of global output experienced faster growth in 2017 than in the previous year [the highest share of countries experiencing a year-over-year growth pickup since 2010]. The preliminary outcome for global growth in 2017 was 0.2 percentage point stronger than forecast, in the October 2017 World Economic Outlook [WEO], with upside surprises in the second half of 2017 in advanced as well as emerging markets and developing economies.

Resurgent investment spending in advanced economies and an end to the investment decline in some commodity exporting emerging markets and developing economies were important drivers of the uptick in global GDP growth and manufacturing activity. Across advanced economies, the 0.6 percentage point pickup in 2017 growth relative to 2016 is explained almost entirely by investment spending, which remained weak since the 2008-09 global financial crisis and was particularly subdued in 2016. Both stronger gross fixed capital formation and an acceleration in stock building contributed to the pickup in investment, with accommodative monetary policy, stronger balance sheets, and an improved outlook helping release pent-up demand for capital goods.

Global growth is projected to strengthen from 3.8 percent in 2017 to 3.9 percent in 2018 and 2019, driven by a projected pickup in growth in emerging markets and developing economies and resilient growth in advanced economies. The forecast for 2018 and 2019 is stronger than in the October 2017 WEO by 0.2 percentage point for each year, with positive revisions compared with the October 2017 WEO for emerging markets and developing economies and especially for advanced economies. The global effects of US fiscal policy changes account for almost half of the global growth upgrade for 2018-19 compared with October. Beyond 2019, global growth is projected to gradually decline to 3.7 percent by the end of the forecast horizon. The slowdown is entirely because of advanced economies, where growth is projected to moderate in line with their modest potential growth; growth across emerging markets and developing economies is expected to stabilize close to the current level. (Source: IMF)

Domestic

Domestic economic activity shrugged off the loss of speed that had characterised the period Q1:2016-17 to Q1:2017-18 and a turning point appears to have taken hold in Q2-Q3, with lead indicators pointing to further acceleration in Q4. In terms of aggregate demand, the drivers around this inflexion are shifting, with consumption-led growth of the recent past handing over the baton to investment, which had restrained growth since Q3:2016-17. At the same time, the strong impetus from fiscal spending during Q3:2016-17 to Q1:2017-18 appears to be waning and the rapid pace of import growth is sapping net external demand. On the supply side, the pickup in industrial output from Q2:2017-18 and the strengthening of construction activity in the services sector from Q1 are noteworthy. Meanwhile, agriculture and allied activities have turned out to be resilient to temporary weather disruptions in both kharif and rabi sowing seasons and going by recent estimates of foodgrains production, the outlook appears better than before.

Consumer price inflation rose sharply in Q3:2017-18, driven up by a spike in food prices and by the disbursement of enhanced House Rent Allowance (HRA) for central government employees, the latter alone contributing an estimated 35 basis points. It moderated somewhat in Q4 on a delayed seasonal easing of prices of vegetables. Industrial input costs increased through H2:2017-18, tracking movements in international commodity prices. Wage pressures have remained moderate in both the organised and rural sectors. The increase in HRA for central government employees, which became effective from July 2017 and continued to accumulate till December 2017, shaped the path of headline inflation during Q3, with unseasonal hardening of prices of vegetables, accentuating a spike to 4.9 per cent in November. While prices of vegetables did undergo a shallower than usual moderation in December, an unfavourable base effect came into play, pulling up inflation to a peak of 5.2 per cent in December. In Q4, headline inflation moderated with a fall in momentum due to a delayed but steep reversal in prices of vegetables.

A stark feature of India’s recent growth experience has been the protracted downturn in investment, however, a turnaround set in during Q2:2017-18. Gross Fixed Capital Formation (GFCF) strengthened further to touch a six-quarter high in Q3. The share of GFCF in GDP, which was trapped in a downturn from a high of 34.3 per cent in 2011-12 to 30.3 per cent in 2015-16, broke free and increased to 31.4 per cent in 2017-18. As alluded to earlier, this pick-up in the investment rate could be signalling a turning point in the cyclical component of growth oscillations in India and if sustained by a determined policy push, it could produce a level shift in the trajectory of the Indian economy. Capital goods production - a key element of investment demand - turned around in August 2017 and clocked a 19-month high in terms of growth rates in January 2018. During 2017-18 so far (up to December), the construction of highway projects is on the rise and is expected to have improved further in Q4.

Going forward, a key risk to the inflation outlook is the risk of fiscal slippages in a scenario of rising aggregate demand. As noted in the MPC resolution of February 2018, apart from the direct impact on inflation, the fiscal risks could also engender a broader weakening of macro-financial conditions. The revised guidelines for arriving at the MSPs for kharif crops proposed in the Union Budget 2018-19, along with proposed increase in customs duty on a number of items, is likely to pushup inflation over the year. In addition, how various state governments implement and disburse HRA increases would have a considerable bearing on CPI housing inflation and consequently on the headline inflation trajectory, albeit statistically, during 2018-19; therefore, the latter should be looked through for monetary policy purposes, other than for their second-round effects. Although the central government’s HRA effects on CPI inflation would gradually wane from July 2018, this moderating impact could be more than offset if several state governments simultaneously implement HRA increases in H2:2018-19. (Source: RBI)

Finance

During the current year, the Reserve Bank of India (RBI) held six Bi-monthly Monetary Policy Committee meetings. The Policy Repo rates under the Liquidity Adjustment Facility (LAF) was at 6.25% at the beginning of the year. During the year, the RBI reduced the Policy Repo rates by 0.25% once in its third Bi-monthly Monetary Policy Committee meeting to 6.00% and since then maintained at such levels.

Yields in the government securities (G-Sec) has shown continuous increase through the year since the reduction of policy rates. Yields on the 10 year benchmark paper has increased by around 150 bps from the lows. A sharp reduction in G-Sec yields were seen in the month of March when the government announced its intent to reduce its borrowing in the first half. However the reduced rates were short lived and within a month the yields were higher than preannouncement. An important element of the yield rising has been the continuous rise in the crude prices (nearing -80/barrel). The depreciation of rupee is not helping either which shall lead to inflationary pressure which together is resulting in rising yields.

Private Placement Issues of Non-Convertible Debentures

During the year under review, your Company issued secured redeemable non-convertible debentures (“NCDs”) aggregating to Rs. 4,497.80 Crores on a private placement basis, in various tranches.

As specified in the respective offer documents, the funds raised from NCDs were utilised for the purpose of financing, repayment of dues of other financial institutions/Banks or for long term working capital.

Public Issuance of Non-Convertible Debentures

Your Company continues to broaden the liability mix by bringing in new instruments as well as diversifying the investor base and profile. During the year under review, your Company successfully raised Rs. 1,150.5 Crores through its second public issuance of 1,15,05,313 Unsecured Subordinated Redeemable Non-Convertible Debentures (“NCDs”) of face value of Rs. 1,000 each. With this issuance, approximately 5% of your Company’s borrowing is funded through this instrument. The NCDs were allotted on 24th July, 2017 and listed on BSE Limited on 26th July, 2017.

The net proceeds received from the Public Issue were used for the purpose of onward lending, financing, refinancing the existing indebtedness of the Company, long term working capital requirements, Issue expenses and for general corporate purposes. Details of the Issue and the end use were furnished to the Audit Committee.

The Company has been regular in making payments of principal and interest on the NCDs. There are no NCDs which have not been claimed by investors or not paid by the Company after the date on which the NCDs became due for redemption.

Rupee Denominated Medium Term Note (MTN)

As a risk management measure diversification of its resources is one of the focus areas of the Company. To this end, your Company has received approval from the Reserve Bank of India for issuance of Masala Bonds. Your Company has also updated its Offering Circular of Rupee Denominated Medium Term Note (MTN) programme, listed on the Singapore Exchange Securities Trading Limited, and subject to market conditions, plans to issue bonds under the MTN programme during the current year.

INVESTOR RELATIONS

Your Company continuously endeavors to improve its engagement with Domestic and International investors/analysts through multiple mechanisms, including structured conference-calls, individual meetings, Telepresence meetings, participating in investor conferences and undertaking quarterly and annual earnings calls. Your Company attended multiple investor meets organised by reputed Global and Domestic Broking Houses during the year, both in India and abroad, to communicate details of its performance, important regulatory and market developments and exchange of information. These interactions with institutional shareholders, fund managers and analysts are based on generally available information that is accessible to the public on a non-discriminatory basis. Your Company uploads the transcript of the quarterly earnings call on its website which can be accessed by existing and potential investors and lenders.

Your Company believes in transparent communication and building a relationship of mutual understanding and trust. Your Company further ensures that critical information about the Company is available to all the investors by hosting all such information on the Company’s website.

CAPITAL ADEQUACY

Consequent upon the allotment of Equity Shares issued on a Preferential Allotment basis to the Promoter and through a Qualified Institutions Placement to Qualified Institutional Buyers, the paid-up share capital of the Company has increased to Rs.123.6 Crores as on 31st March, 2018 from Rs. 113.8 Crores as on 31st March, 2017. The securities premium account has also increased to Rs. 4,113.2 Crores from Rs.2,025.6 Crores.

As a result of the increased net worth, your Company was able to enhance the Capital to Risk Assets Ratio (CRAR) to 21.9 % as on 31st March, 2018, well above the minimum requirement of 15% CRAR prescribed by the Reserve Bank of India. Out of the above, Tier I capital adequacy ratio stood at 16.0% and Tier II capital adequacy ratio stood at 5.9%, respectively.

RBI GUIDELINES

The Company has complied with all the applicable regulations of the Reserve Bank of India (RBI).

As a prudent practice, your Company makes accelerated provisioning for Non-Performing Assets (NPAs) than that required by RBI for NBFCs. Your Company continues to make a general provision at 0.40% on the standard assets outstanding as mandated by the RBI.

DISCLOSURE PERTAINING TO GOLD LOAN AUCTION(S)

During the fiscal 2016-17, your Company conducted the auction of its Gold Stock and sold the entire stock. With this auction the Company has closed its entire gold loan business.

CREDIT RATING

The credit rating details of the Company as on 31st March, 2018 were as follows:

Rating Agency

Type of Instrument

Rating*

Remarks

India Ratings & Research Private Limited

Commercial Paper Programme

‘IND A1 ’

The ‘A1 ’ rating indicates the Highest Level of Rating. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.

Long-term Debt Instruments and Subordinated Debt Programme

‘IND AAA/Stable’

CARE Ratings Limited (Formerly known as Credit Analysis & Research Limited)

Long-term Debt Instruments and Subordinated Debt Programme

‘CARE AAA/Stable’

The ‘AAA’ ratings denote the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.

Brickwork Ratings India Private Limited

Long-term Subordinated Debt Programme

‘BWR AAA/Stable’

CRISIL Limited

Fixed Deposit Programme

‘CRISIL FAAA/Stable’

Long-term Debt Instruments, Subordinated Debt Programme and Bank Facilities

‘CRISIL AA /Stable’

The ‘AA ’ rating indicates a high degree of safety with regard to timely payment of financial obligations. Such instruments carry very low credit risk.

Short-term Debt and Bank Loans

‘CRISIL A1 ’

The ‘A1 ’ rating indicates the Highest Level of Rating. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.

* The ratings mentioned above were reaffirmed by the Rating Agencies during the Financial Year 2017-18. With the above rating affirmations, your Company continues to enjoy the highest level of rating from all major rating agencies at the same time.

ACHIEVEMENTS

Your Company won several awards and accolades during the year under review. Select few awards/ recognition are enumerated hereunder:

Corporate Governance

India’s Most Trusted Companies Awards 2017” as per the Research Report 2017 by Media Research Group, MRG.

Listed amongst the top 10 companies with a high Corporate Governance score in a study jointly conducted by International Finance Corporation (IFC), BSE Limited (BSE) and Institutional Investor Advisory Services (IiAS).

Business & Marketing:

- Ranked 108th in the “Dun & Bradstreet India’s Top 500 Companies 2017” based on Net Profit.

- Adjudged as one of the “Best BFSI Brands 2018” by the Economic Times.

- Award for the ‘Most Effective use of Direct Marketing to Rural Consumers’ at the Rural Marketing Forum & Awards 2018 for MF SUTRADHAAR initiative.

Ranked 13th based on Total Income in “Dun & Bradstreet India’s Leading BFSI Companies 2018” among NBFCs, Financial Institutions and Financial Services Companies.

Won the PRCI (Public Relations Council of India) Collateral Awards 2018 in the following categories:

a. Crystal Award for Corporate Advertising Campaign (SME Ad campaign)

b. Crystal Award for Radio/Jingle (SME Radio Campaign)

c. Gold Award for Rural or Development -Communication (MF SUTRADHAAR Program)

d. Gold Award for Financial Communication (Suvidha Loans Communication Campaign)

e. Silver Award for Radio Communication (SME Radio Campaign)

f. Appreciation Award for Diary 2018

g. Appreciation Award for In-house Digital Newsletter (In-box Select)

h. Appreciation Award for Annual Report

Human Resources

Listed in Aon Best Employer List 2017, as Aon Best Employer

Certified Top 50 India’s Best Companies to Work for - 2017 by Great Place to work.

Adjudged Runner-up in the BusinessWorld HR Excellence Award 2017 by BusinessWorld.

“Best Learning & Development Strategy Award” at World HRD Congress 2017.

Listed in the Avtar and Working Mothers Best Companies to work for.

Appeared in Top 100 Record Holders for Excellence in Learning Sessions.

Attained Level 5 certification for People Capability Maturity Model (PCMM) Level 5.

CSR & Sustainability

Honoured with IDF CSR Award by Indian Development Foundation (IDF) for excellent participation in Resource Mobilization for Humanitarian Projects.

Bestowed with the Equal Opportunity Employer Award by Sarthak Educational Trust for ensuring equal employment opportunities and sustainable employment prospects to person with disability.

Listed in Dow Jones Sustainability Index (DJSI) Emerging Markets category for the 5th consecutive year.

Included in the “Sustainability Yearbook 2018” released by RobecoSAM, being the only Indian Financial Company in Diversified Financial Services and Capital Markets sector to be selected.

Information & Technology

Pride of India Award” for Best Enterprise Learning Platform

FIXED DEPOSITS AND LOANS/ ADVANCES

Your Company offers a bouquet of Fixed Deposit schemes to suit the investment needs of various classes of investors. These Deposits carry attractive interest rates with superior service enabled by robust processes and technology. In order to tap rural and semi-urban savings and reach out to the farthest customers, your Company continues to expand its network and make its presence felt in the most remote areas of the country.

During the year, CRISIL has reaffirmed a rating of ‘CRISIL FAAA/Stable’ for your Company’s Fixed Deposits. This rating represents the highest degree of safety regarding timely servicing of financial obligations and carries the lowest credit risk. Your Company’s deposits continue to be a preferred investment amongst the investors.

As on 31st March, 2018, your Company has mobilised funds from Fixed Deposits to the tune of Rs. 3,137.37 Crores, with an investor base of over 1,30,413 investors.

Your Company continues to serve the investors by introducing several customer centric measures on an ongoing basis to further strengthen its processes in sync with the requirements of the Fixed Deposit holders. The Company communicates various intimations via SMS, e-mails, post, etc., to its investors as well as sends reminder emails to clients whose TDS is likely to be deducted before any payout/ accrual. Your Company also provides online renewal facility, online generation of TDS certificates from customer/broker portal and Seamless Investment process for employees.

During the year under review, your Company has rolled out several initiatives aimed at offering a superior customer experience. Some key ones are:

Increased the number of offices from 198 in the previous fiscal to 304 offices in the current fiscal for collection of Fixed Deposits.

Customer self-profile update on the Fixed Deposit-Customer Portal available on the Company’s website.

Default auto renewal of Fixed Deposits option to facilitate timely renewal of deposits in case the physical request for renewal of Deposits is not received four weeks prior to the maturity date.

Introduced online Swift Loan[s] against Deposits.

Convenience of investment made available through mobile phones.

As at 31st March, 2018, 4,662 deposits amounting to Rs. 8.61 Crores had matured for payment and remained unclaimed. The unclaimed deposits have since reduced to 3,761 deposits amounting to Rs. 6.10 Crores. There has been no default in repayment of deposits or payment of interest during the year.

Your Company being a Non-Banking Financial Company, the disclosures required as per Rule 8 [5] [v] and [vi] of the Companies [Accounts] Rules, 2014 read with sections 73 and 74 of the Companies Act, 2013, are not applicable to it.

The information pursuant to Clause 35[1] of Master Direction DNBR.PD.002/03.10.119/2016-17 dated 25th August, 2016 issued by Reserve Bank of India on Non-Banking Financial Companies Acceptance of Public Deposits [Reserve Bank] Directions, 2016, regarding unpaid/unclaimed public deposits as on 31st March, 2018, is furnished below:

i. total number of accounts of public deposits of the Company which have not been claimed by the depositors or not paid by the Company after the date on which the deposit became due for repayment: 4,662.

ii. the total amounts due under such accounts remaining unclaimed or unpaid beyond the dates referred to in clause [i] as aforesaid: Rs. 8,60,67,196.

Depositors were intimated regarding the maturity of deposits with a request to either renew or claim their deposits. Your Company continues to send intimation letters via registered post every 3 months to all those Fixed Deposit holders whose deposits have matured as well as to those whose deposits remain unclaimed. Where the Deposit remains unclaimed, follow-up action is also initiated through the concerned agent or branch.

Pursuant to section 125[2] [i] of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority [Accounting, Audit, Transfer and Refund] Rules, 2016 [“the IEPF Rules”] as amended from time to time, matured Deposits remaining unclaimed for a period of seven years from the date they became due for payment are required to be transferred to the Investor Education and Protection Fund [IEPF] Authority established by the Central Government. The concerned depositor can claim the Deposit from the IEPF Authority by following the procedure laid down in the IEPF Rules.

During the year, an amount of Rs.0.02 Crores has been transferred to the IEPF Authority.

During the year under review, the Company has not given any loans and advances in the nature of loans to its subsidiaries or associate or loans and advances in the nature of loans to firms/companies in which Directors are interested.

Accordingly, the disclosure of particulars of loans/ advances, etc., as required to be furnished in the Annual Accounts of the Company pursuant to Regulation 34 read with paragraph A of Schedule V of the SEBI [Listing Obligations and Disclosure Requirements] Regulations, 2015 is not applicable to the Company.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS IN SECURITIES

Pursuant to section 186[11] of the Companies Act, 2013 [“the Act”], the provisions of section 186 [4] of the Act requiring disclosure in the Financial Statements of the full particulars of the loans made and guarantees given or securities provided by a NonBanking Financial Company in the ordinary course of its business and the purpose for which the loan or guarantee or security is proposed to be utilised by the recipient of the loan or guarantee or security are exempted from disclosure in the Annual Report.

Further, pursuant to the provisions of section 186 (4) of the Act, the details of investments made by the Company are given in the Notes to the Financial Statements.

SUSTAINABILITY INITIATIVES

Sustainability has always been a key success factor for the ambit of the Company’s businesses. Through its unique business model the Company is making a difference in the lives of many by addressing the essential requirements of people in rural and semi-urban parts of India. Your Company’s businesses focus on key necessities of people and enable them to meet their aspirations through a wide-range of financial products and services offered by it. By providing the right set of opportunities in the remote areas and handholding its customers to advance in their lives, your Company continues to make positive contribution to multiple stakeholders. Your Company lays strong emphasis on customer centricity with its customer base spread across more than 3.5 Lakh villages in India with majority of them belonging to the earn and pay segment.

Your Company commenced its journey towards reporting sustainability performance since 2008-09 through Mahindra Group’s Sustainability Report and in the year 2012-13 your Company released its first standalone Sustainability Report. In the reporting year the Company released its fifth Sustainability Report for the Financial Year 2016-17 with the theme ‘Towards Value Creation’ based on the Global Reporting Initiative’s (GRI) G4 Guidelines which highlights its progress and efforts on creating long term benefits and opportunities on social, environmental and economic dimensions for all its stakeholders. This Report is hosted on your Company’s website at the web-link: www.mahindrafinance.com/sustainability.aspx.

Your Company continued to focus on sustainability awareness for different stakeholders by building on the initiatives of the previous years as also initiating new ones. In the year under review, your Company formulated its Sustainability Policy and developed a new Sustainability Roadmap aligned to the Mahindra Group’s Sustainability Framework to ensure mutual initiatives for sustainability across the Group. Interventions on energy efficiency, technology deployment and waste management have been taken throughout the reporting year at different locations. The Company continued its focus on encouraging employees and field staff in adopting Road Safety measures.

Your Company has been listed on the Dow Jones Sustainability Index (DJSI) Emerging Market Trends for the fifth consecutive year. Your Company is the only Company from amongst the Diversified Financial Services Companies in India to have made it to this list. To be incorporated in DJSI, companies are assessed and selected based on their long term Environmental, Social and Governance (ESG) management plans. Your Company got selected in ‘The Sustainability Yearbook’ 2018 being the only Financial Services Sector Company to qualify amongst 9 companies from India. This signifies your Company being amongst the top Sustainability performers in Diversified Financial Services Sector across the world based on Corporate Sustainability Assessment done by RobecoSAM.

In addition to this, your Company continues to report on Carbon Disclosure Project (CDP) since the Financial Year 2011-12. CDP seeks information on management of carbon emissions covering world’s largest companies and how they are geared up to mitigate challenges pertaining to climate change and global warming in future. During the reporting year, your Company retained CDP Performance Band - B which affirms that the Company is taking coordinated action on climate change issues. Your Company made proactive efforts to reduce CO2 emissions (carbon footprint) through Project ‘Mahindra Hariyali’, by planting over 1.2 Lakh saplings throughout the country.

Your Company is gearing up to be future ready by making sustainability and climate change an integral part of the risk framework and taking measures to mitigate and manage them. Weather reports are assessed on a regular basis and aligned with business operations to protect the customers and minimise the risk impact. Your Company is well equipped to enable its customers and communities progress through its inclusive and sustainable business model.

BUSINESS RESPONSIBILITY REPORT

The ‘Business Responsibility Report’ (BRR) of your Company for the year 2017-18 forms part of this Annual Report as required under Regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and is appended as Annexure II. Your Company is building an inclusive organization by engaging with stakeholders and creating value in the ecosystem it operates in. Your Company’s businesses focus on the key necessities of people and enable them to earn their livelihood through its varied portfolio of financial products and services. Through its wide network of branches with locally-recruited employees, strong and lasting relationships with its stakeholders, large customer base, vast experience and market knowledge, your Company is providing financial resources to underserviced regions of the country and building livelihood for such sections of the population, who are aspiring for a better living in the villages.

The BRR can also be accessed on the Company’s website at the web-link: www.mahindrafinance. com/sustainability.aspx.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

With an objective to empower rural India and transform the rural landscape, your Company during the year, continued to undertake several initiatives in the key thrust areas of Healthcare, Education (including Livelihood) and Environment. It is only through these sustained and consistent efforts that your Company can build and consolidate its CSR initiatives which contribute to nation building.

In the year under review, your Company organised a nationwide blood donation drive, conducted health check-up camps, Swachh Bharat activities, visits to Municipal schools, orphanages, differently-abled homes and old-age homes to re-affirm its pledge to the society.

Your Company also contributed to the environment through planting of over one Lakh trees thus helping restore the diminishing green cover in the country. In the area of public health, your Company sponsored Lifeline Express, a hospital on wheels program, through which medical care and treatment was provided to communities who do not have access to any medical facilities. The Lifeline Express executed in association with Impact India Foundation, catered to the medical needs of 8,010 underprivileged people in Balharshah, in the State of Maharashtra.

In an effort to unleash the potential of the rural population, during the year your Company implemented some of the notable ongoing projects such as providing scholarships to 2,500 undergraduate and 500 graduate students, conducting vocational training for 513 rural youths and Drivers’ training for 220 women, setting-up a vocational skill building center with an aim to train 250 People with Disability and a donation of 14 ambulances that have made access to primary healthcare centers easy for 12,000 tribal and rural patients across the nation. Your Company has expanded the Medical Equipment Donation project to contribute equipment to 30 family planning centers and supported the maintenance of two more Thalassemia Day Care Centers apart from the four existing ones in Maharashtra and one in Jharkhand. Additionally, in the area of healthcare, your Company contributed for the launch of a Maternal & Child Health Care project which provides nutritional supplementation to anemic pregnant and lactating women, adolescents and malnourished children in the areas of Singbhum (Jharkhand), Bhubaneswar (Odisha), Palghar and Thane (Maharashtra).

In the year under review, your Company continued to provide assistance to over 9,400 Nanhi Kalis which supports the education of underprivileged girls. Your Company also continued its commitment to projects such as Mahindra Pride Schools, which helped in providing livelihood training to 2,612 youths from socially and economically disadvantaged communities.

During the year under review, your Company has spent Rs. 27.16 Crores on CSR projects/programs. The amount equal to 2% of the average net profit for the past three financial years required to be spent on CSR activities was Rs. 27.07 Crores. Your Company is in compliance with the statutory requirements in this regard.

CSR COMMITTEE

The CSR Committee presently comprises of Mr. Piyush Mankad (Chairman), Mr. Ramesh Iyer, Mr. V. Ravi and Dr. Anish Shah. The Committee, inter alia, monitors the CSR activities.

CSR POLICY

The CSR Policy of the Company is hosted on the Company’s website at the web-link: http://www. mahindrafinance.com/csr.aspx and a brief outline of the CSR Policy and the CSR initiatives undertaken by the Company during the year as per Annexure prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014 have been appended as Annexure III to this Report.

EXTRACT OF ANNUAL RETURN

Pursuant to sub-section 3(a) of section 134 and subsection (3) of section 92 of the Companies Act, 2013, read with Rule 12 of the Companies (Management and Administration) Rules, 2014, an extract of the Annual Return as at 31st March, 2018 forms part of this Report and is appended as Annexure IV.

BOARD MEETINGS, ANNUAL GENERAL MEETING AND EXTRAORDINARY GENERAL MEETING

The calendar of the Board/Committee Meetings and the Annual General Meeting is circulated to the Directors in advance to enable them to plan their schedule for effective participation at the respective meetings. Additional Board Meetings are convened by giving appropriate notice to address business exigencies. At times certain decisions are taken by the Board/Committee through circular resolutions.

All the decisions and urgent matters approved by way of circular resolutions are placed and noted at the subsequent Board/Committee Meeting.

The Board of Directors met seven times during the year under review, on 25th April, 2017, 24th July, 2017, 6th October, 2017, 25th October, 2017, 1st November, 2017, 24th January, 2018 and 16th March, 2018. The requisite quorum was present for all the Meetings. The maximum time gap between any two Meetings was not more than one hundred and twenty days. These Meetings were well attended. The 27th Annual General Meeting [AGM] of the Company was held on 24th July, 2017.

During the year under review, an Extraordinary General Meeting [EGM] of the Members was held on 29th November, 2017 to approve the issuance of Equity Shares on Qualified Institutions Placement to Qualified Institutional Buyers, approve Related Party transaction for Preferential Issue of Shares to Mahindra & Mahindra Limited [M&M], the holding company and accord consent for issue of Equity Shares to M&M on a Preferential Allotment basis.

Detailed information on the Meetings of the Board, its Committees, the AGM and EGM is included in the Report on Corporate Governance, which forms part of this Annual Report.

MEETINGS OF INDEPENDENT DIRECTORS

The Independent Directors met twice during the year under review, on 23rd January, 2018 and 15th March, 2018. The Meetings were conducted in an informal manner without the presence of the Wholetime Directors, the Non-Executive Non-Independent Directors, or any other Management Personnel.

COMMITTEES OF THE BOARD OF DIRECTORS

The Company has various Committees which have been constituted as a part of good corporate governance practices and the same are in compliance with the requirements of the relevant provisions of applicable laws and statutes.

Your Company has an adequately qualified and experienced Audit Committee with Mr. C. B. Bhave as the Chairman and Mr. Dhananjay Mungale, Mr. M. G. Bhide, Ms. Rama Bijapurkar, Mr. Piyush Mankad, Mr. V S. Parthasarathy and Dr. Anish Shah as Members.

The recommendations of the Audit Committee were duly approved and accepted by the Board during the year under review.

The other Committees of the Board are:

i] Nomination and Remuneration Committee

ii] Stakeholders Relationship Committee

iii] Corporate Social Responsibility Committee

iv] Risk Management Committee

v] Asset Liability Committee

vi] Committee for Strategic Investments

vii] IT Strategy Committee

The details with respect to the composition, powers, roles, terms of reference, Meetings held and attendance of the Directors at such Meetings of the relevant Committees are given in detail in the Report on Corporate Governance of the Company which forms part of this Annual Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Directors

Dr. Anish Shah, Non-Executive Non-Independent Director, retires by rotation at the forthcoming Annual General Meeting and, being eligible, offers himself for reappointment. The detailed profile of Dr. Anish Shah has been included in the Notice convening the ensuing AGM.

All the Directors of the Company have confirmed that they satisfy the fit and proper criteria as prescribed under paragraph 69[1][iv] of Chapter XI of RBI Master Direction No. DNBR. PD. 008/03.10.119/2016-17 dated 1st September, 2016 and that they are not disqualified from being appointed as Directors in terms of section 164[2] of the Companies Act, 2013.

None of the Independent Directors are due for re-appointment.

Key Managerial Personnel

Mr. Ramesh Iyer, Vice-Chairman & Managing Director, Mr. V Ravi, Executive Director & Chief Financial Officer and Ms. Arnavaz M. Pardiwalla, Company Secretary of the Company have been designated as the Key Managerial Personnel of the Company [KMP] pursuant to the provisions of sections 2[51] and 203 of the Companies Act, 2013 read with the Companies [Appointment and Remuneration of Managerial Personnel] Rules, 2014.

There has been no change in the KMP during the year under review.

Declaration by Independent Directors The Company has received declarations from all the Independent Directors of the Company confirming that they fulfill the criteria of independence as prescribed under sub-section [6] of section 149 of the Companies Act, 2013 and the Securities and Exchange Board of India [Listing Obligations and Disclosure Requirements] Regulations, 2015.

Directors’ Responsibility Statement

Pursuant to the provisions of section 134[5] of the Companies Act, 2013, [“the Act”] your Directors, based on the representations received from the Operating Management and after due enquiry, confirm that:

i. i n the preparation of the annual accounts for financial year ended 31st March, 2018, the applicable accounting standards have been followed and there are no material departures in adoption of these standards.

ii. they have in consultation with the Statutory Auditors selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018 and of the profit of the Company for the year ended on that date.

iii. they have taken proper and sufficient care for the 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 fraud and other irregularities.

iv. they have prepared the annual accounts for financial year ended 31st March, 2018 on a going concern basis.

v. they have laid down adequate internal financial controls to be followed by the Company and that such internal financial controls were operating effectively during the financial year ended 31st March, 2018.

vi. they have devised proper systems to ensure compliance with provisions of all applicable laws and that such systems were adequate and operating effectively during the financial year ended 31st March, 2018.

Performance Evaluation of the Board

The Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Listing Regulations”) stipulate the evaluation of the performance of the Board, its Committees, Individual Directors and the Chairperson.

The Company has formulated a Policy for performance evaluation of the Independent Directors, the Board, its Committees and other individual Directors which includes criteria for performance evaluation of the Non-Executive Directors and Executive Directors.

The evaluation framework for assessing the performance of Directors comprises of various key areas such as attendance at Board and Committee Meetings, quality of contribution to Board discussions and decisions, strategic insights or inputs regarding future growth of the Company and its performance, ability to challenge views in a constructive manner, knowledge acquired with regard to the Company’s business/activities, understanding of industry and global trends, etc.

The evaluation involves self-evaluation by the Board Member and subsequent assessment by the Board of Directors. A member of the Board will not participate in the discussion of his/her evaluation.

Pursuant to the provisions of the Companies Act, 2013 and Regulation 17 of the Listing Regulations, the Board has carried out an annual evaluation of its own performance and that of its Committees as well as performance of the Directors individually (including Independent Directors).

Feedback was sought by way of well-defined and structured questionnaires covering various aspects of the Board’s functioning such as adequacy of the composition of the Board and its Committees, Board culture, areas of responsibility, execution and performance of specific duties, obligations and governance, compliance, oversight of Company’s subsidiaries, etc.

A separate exercise was carried out by the Nomination and Remuneration Committee of the Board to evaluate the performance of individual Directors who were evaluated on several parameters such as level of engagement and contribution, independence of judgment safeguarding the interest of the Company and its minority shareholders and knowledge acquired with regard to the Company’s business/activities.

The performance evaluation of the Non-Independent Directors and the Board as a whole was carried out by the Independent Directors. The performance evaluation of the Chairman of the Company was also carried out by the Independent Directors, taking into account the views of the Executive Directors and NonExecutive Directors.

The performance evaluation of the Independent Directors was carried out by the entire Board excluding the Director being evaluated. Qualitative comments and suggestions of Directors were taken into consideration by the Chairman of the Board and the Chairman of the Nomination and Remuneration Committee. The Directors have expressed their satisfaction with the evaluation process.

Familiarisation Programme for Independent Directors

The details of programmes for familiarisation of Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company and related matters along with details of number of programmes and number of hours spent by each of the Independent Directors during the Financial Year 2017-18, in terms of the requirements of SEBI [Listing Obligations and Disclosure Requirements] Regulations, 2015 are available on the website of the Company and can be accessed at the web-link: http://www.mahindrafinance.com/ pdf/familiarisation-programme for-IDs.pdf

Policies on Appointment of Directors and Remuneration of Directors, Key Managerial Personnel and Employees

In accordance with the provisions of section 134[3] [e] of the Companies Act, 2013 [“the Act”] read with section 178[2] of the Act and Regulation 17 of the SEBI [Listing Obligations and Disclosure Requirements] Regulations, 2015, your Company has adopted a Policy on Appointment of Directors and Senior Management and succession planning for orderly succession to the Board and the Senior Management, which inter alia, includes the criteria for determining qualifications, positive attributes and independence of Directors.

Your Company has also adopted the Policy on Remuneration of Directors and the Remuneration Policy for Key Managerial Personnel and Employees of the Company in accordance with the provisions of sub-section [4] of section 178, and the same are appended as Annexure V-A and Annexure V-B, respectively and form part of this Report.

The criteria for determining qualifications, positive attributes and independence of a Director and the Remuneration Policies for Directors, Key Managerial Personnel and other employees have been discussed in detail in the Report on Corporate Governance.

AUDITORS

Statutory Auditors

Messrs. B S R & Co. LLP, Chartered Accountants [ICAI Firm Registration No.101248W/W-100022], were appointed as the Statutory Auditors of the Company to hold office for a period of 5 years, commencing from the conclusion of the 27th Annual General Meeting [“AGM”] held on 24th July, 2017 till the conclusion of the 32nd AGM of the Company to be held in the year 2022, subject to ratification of their appointment by the Members at every AGM, as may be applicable.

As required under the provisions of section 139[1] of the Companies Act, 2013, the Company has received a written consent from Messrs. B S R & Co. LLR Chartered Accountants to their appointment and a Certificate, to the effect that their appointment, if made, would be in accordance with the Companies Act, 2013 and the Rules framed thereunder and that they satisfy the criteria provided in section 141 of the Companies Act, 2013.

The Members are requested to ratify the appointment of the Statutory Auditors as aforesaid and fix their remuneration.

The Auditors’ Report is unmodified and does not contain any qualification, reservation, adverse remark or disclaimer.

Secretarial Auditor

The Board of Directors of the Company has appointed Messrs. KSR & Co., Company Secretaries LLP to conduct the Secretarial Audit of the Company pursuant to the provisions of section 204 of the Companies Act, 2013 and the Companies [Appointment and Remuneration of Managerial Personnel] Rules, 2014. In accordance with the provisions of sub-section [1] of section 204, the Secretarial Audit Report for the Financial Year 2017-18 is appended to this Report as Annexure VI.

The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.

Reporting of Frauds by Auditors

During the year under review, the Statutory Auditors and the Secretarial Auditor have not reported any instances of frauds committed in the Company by its Officers or Employees to the Audit Committee under section 143[12] of the Companies Act, 2013, details of which need to be mentioned in this Report.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All contracts/arrangements/transactions entered into by the Company during the Financial Year with related parties were in the ordinary course of business and on an arm’s length basis.

During the year under review, your Company had entered into a Material Related Party Transaction, i.e. transaction exceeding ten percent of the annual consolidated turnover as per the last audited financial statements, with Mahindra & Mahindra Limited, the Holding Company. This transaction too was in the Ordinary Course of Business of your Company and was at Arm’s Length Basis, details of which, as required to be provided under section 134[3][h] of the Companies Act, 2013 are disclosed in Form AOC-2 as Annexure VII and forms part of this Annual Report.

The Policy on Related Party Transactions as approved by the Board of Directors of the Company is uploaded on the website of the Company and same can be accessed on the web-link: http://www. mahindrafinance.com/policies.aspx.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY

No material changes and commitments have occurred after the closure of the Financial Year 2017-18 till the date of this Report, which would affect the financial position of your Company.

RISK MANAGEMENT POLICY

Your Company has a comprehensive Risk Management Policy in place and has laid down a well-defined risk management framework to identify, assess and monitor risks and strengthen controls to mitigate risks. Your Company has established procedures to periodically place before the Risk Management Committee and the Board of Directors, the risk assessment and minimisation procedures being followed by the Company and steps taken by it to mitigate these risks.

The Risk Management Policy, inter alia, includes identification therein of elements of risk, including those which in the opinion of the Board may threaten the existence of the Company. The Risk management process has been established across the Company and is designed to identify, assess and frame a response to threats that affect the achievement of its objectives. Further, it is embedded across all the major functions and revolves around the goals and objectives of the Company.

The development and implementation of Risk Management Policy adopted by the Company is discussed in detail in the Management Discussion and Analysis chapter, which forms part of this Annual Report.

WHISTLE BLOWER POLICY/VIGIL MECHANISM

The Company promotes ethical behaviour in all its business activities and has established a vigil mechanism for its Directors, Employees and Stakeholders associated with the Company to report their genuine concerns. The Vigil Mechanism as envisaged in the Companies Act, 2013 and the Rules prescribed thereunder and the Listing Regulations is implemented through the Whistle Blower Policy, to provide for adequate safeguards against victimisation of persons who use such mechanism and make provision for direct access to the Chairperson of the Audit Committee.

As per the Whistle Blower Policy implemented by the Company, the Employees, Directors, customers, dealers, vendors, suppliers, or any Stakeholders associated with the Company are free to report illegal or unethical behaviour, actual or suspected fraud or violation of the Company’s Codes of Conduct or Corporate Governance Policies or any improper activity to the Chairman of the Audit Committee of the Company or Chairman of the Company or Convenor of the Corporate Governance Cell.

The Whistle Blower Policy provides for protected disclosure and protection to the Whistle Blower. Under the Whistle Blower Policy, the confidentiality of those reporting violation(s) is protected and they are not subject to any discriminatory practices. Protected disclosures can also be made by sending an email at the designated email id : mmfsl_whistleblower@ mahindra.com.

The Whistle Blower Policy has been appropriately communicated within the Company and is available on the website of your Company at the web-link: http://www.mahindrafinance.com/pdf/MMFSL VigilMechanism.pdf

No personnel have been denied access to the Audit Committee.

SUBSIDIARIES, JOINT VENTURE AND ASSOCIATES

The Company’s subsidiaries and joint venture continue to contribute to the overall growth in revenues and overall performance of your Company.

A Report on the performance and financial position of each of the subsidiaries and the joint venture company included in the Consolidated Financial Statements and their contribution to the overall performance of the Company is provided in Form AOC-1 as Annexure A to the Consolidated Financial Statements and forms part of this Annual Report.

The Policy for determining material subsidiaries as approved by the Board is hosted on the Company’s website and can be accessed at the web-link: http:// www.mahindrafinance.com/policies.aspx.

SUBSIDIARIES

Mahindra Insurance Brokers Limited

During the year under review, Mahindra Insurance Brokers Limited (MIBL), the subsidiary in the business of Direct and Re-insurance Broking, serviced approximately 2.59 million insurance cases, with a total of 20,58,613 cases for both Life and Non-Life Retail business. The customized Life insurance cover “Mahindra Loan Suraksha” (MLS) increased from 5,82,949 lives covered with a Sum Assured of Rs. 18,027.6 Crores in the Financial Year 2016-17 to 6,85,264 lives covered with a Sum Assured of Rs. 21,359.2 Crores in the Financial Year 2017-18. A substantial portion of MLS continues to be covered in the rural markets.

MIBL achieved a growth of 31% in Gross Premium facilitated for the Corporate and Retail business lines, increasing from Rs. 1,567.9 Crores in the Financial Year 2016-17 to Rs. 2,049.1 Crores in the Financial Year 2017-18. The Total Income increased by 41% from Rs. 174.2 Crores in the Financial Year 201617 to Rs. 245.1 Crores in the Financial Year 2017-18. The Profit Before Tax (PBT) recorded a marginal degrowth of 0.6% at Rs.81.2 Crores as compared to Rs.81.7 Crores in the same period of the previous year. The Profit After Tax (PAT) recorded a degrowth of 1.5% at Rs.52.2 Crores as against Rs.53.0 Crores in the same period of the previous year.

MIBL has been able to reach the benefit of insurance to over 2,00,000 villages across India.

Sale of 1,28,866 Equity Shares representing 5% of the total share capital of MIBL

During the year, your Company sold 1,28,866 Equity Shares aggregating 5% of the share capital of MIBL in favour of Inclusion Resources Private Limited for an overall consideration of Rs. 65 Crores, resulting in a profit of Rs. 65 Crores on sale of this investment. Post the sale, the shareholding of your Company stands reduced from 85% to 80% of MIBL’s share capital.

Mahindra Rural Housing Finance Limited

Mahindra Rural Housing Finance Limited (MRHFL), the Company’s subsidiary in the business of providing loans for purchase, renovation, construction of houses to individuals in the rural and semi-urban areas of the country, registered a total income of Rs. 1,000.0 Crores as compared to Rs. 703.4 Crores for the previous year, registering a growth of 42%. Profit before tax was 77% higher at Rs.224.6 Crores as compared to Rs. 126.9 Crores for the previous year. Profit after tax was 75% higher at Rs.145.5 Crores as compared to Rs. 83.0 Crores for the previous year.

During the year under review, MRHFL disbursed loans aggregating to Rs. 2,789.2 Crores (previous year Rs.2,116.2 Crores) achieving a growth of 32 percent over the previous year.

MRHFL continued its focus on serving customers in rural India. Majority of the loans disbursed were to customers in villages with an average annual household income of less than Rs.1.9 lakhs. During the year under consideration, MRHFL disbursed home loans to around 2,18,000 households (in addition to around 5,60,000 existing households as on 31st March, 2017). MRHFL has been expanding its geographical presence to provide affordable services for rural households.

During the year under review, operations of MRHFL were strengthened in the States of Maharashtra, Gujarat, Rajasthan, Tamil Nadu, Andhra Pradesh, Telangana, Chhattisgarh, Kerala, Karnataka, Madhya Pradesh, Uttar Pradesh, Uttarakhand and Bihar.

Mahindra Asset Management Company Private Limited

Mahindra Asset Management Company Private Limited (MAMCPL), a wholly-owned subsidiary of the Company acts as an Investment Manager for the schemes of Mahindra Mutual Fund. As on 31st March, 2018, MAMCPL was acting as the Investment Manager for six schemes.

The Assets under Management in these six schemes were Rs. 3,352 Crores in March 2018 as compared to Rs. 2,050 Crores in March 2017. Of these assets, Rs. 1,173 Crores were in retail schemes in March 2018 as compared to Rs. 319 Crores in March 2017. MAMCPL has empanelled more than 7,500 distributors and opened 1,26,737 investor accounts in these schemes recording a rise of more than 235%.

During the year under review, the total income of MAMCPL was Rs. 23.4 Crores as compared to Rs. 8.8 Crores for the previous year, registering a growth of 165%. The operations for the year have resulted in a loss of Rs. 38.1 Crores as against a loss of Rs. 20.5 Crores during the previous year.

Mahindra Trustee Company Private Limited

Mahindra Trustee Company Private Limited (MTCPL), your Company’s wholly-owned subsidiary, acts as the Trustee to Mahindra Mutual Fund.

During the year, MTCPL earned trusteeship fees of Rs.23.87 lakhs and other income of Rs.0.73 lakhs as compared to Rs.3.11 lakhs and Rs.0.06 lakhs respectively, for the previous year. The total expenses for the year were Rs.24.25 lakhs as against Rs. 23.52 lakhs in the previous year. MTCPL recorded a profit of Rs.0.35 lakhs for the year under review as against a loss of Rs. 20.4 lakhs in the previous year.

JOINT VENTURE Mahindra Finance USA LLC.

The joint venture company’s disbursement registered a growth of 8.34% to USD 828.38 Million for the year ended 31st March, 2018 as compared to USD 764.61 Million for the previous year.

Income grew by 27.98% to USD 54.61 Million for the year ended 31st March, 2018 as compared to USD 42.67 Million for the previous year. Profit before tax was 27.34% higher at USD 16.44 Million as compared to USD 12.91 Million for the previous year. Profit after tax grew at a healthy rate of 19.02% to USD 9.70 Million as compared to USD 8.15 Million in the previous year.

Names of companies which have become or ceased to be subsidiaries, joint ventures or associate companies during the year

During the year under review, no company has become or ceased to be a subsidiary, joint venture or associate of your Company.

The Company shall provide the copy of the annual accounts of its subsidiary companies and the related information to the Members of the Company on their request. The annual accounts of the subsidiary companies will also be kept open for inspection by any Member at the Registered Office of the Company and also at the Registered Office of the respective subsidiary companies during working hours upto the date of the Annual General Meeting.

The Annual Reports of the subsidiaries will also be available on your Company’s website at the web-link: http://www.mahindrafinance.com/annual-reports.aspx.

Material Subsidiary

Regulation 16[1][c] of the SEBI [Listing Obligations and Disclosure Requirements] Regulations, 2015 defines a “material subsidiary” to mean a subsidiary, whose income or net worth exceeds twenty percent of the consolidated income or net worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year.

Under this definition, the Company did not have any material subsidiary, during the year under review.

The Policy for determining material subsidiaries as approved by the Board is uploaded on the Company’s website and can be accessed at the Web-link: http://www.mahindrafinance.com/pdf/ determining material subsidiaries.pdf

CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements of the Company and its four subsidiaries, viz. Mahindra Insurance Brokers Limited, Mahindra Rural Housing Finance Limited, Mahindra Asset Management Company Private Limited and Mahindra Trustee Company Private Limited prepared in accordance with the Companies Act, 2013 and Accounting Standard AS 21 prescribed by The Institute of Chartered Accountants of India, along with all relevant documents and the Auditors’ Report form part of this Annual Report. The Consolidated Financial Statements presented by the Company include the financial results of its subsidiary companies and its joint venture viz. Mahindra Finance USA LLC.

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

There are no significant and material orders passed by the regulators or courts or tribunals that would impact the going concern status of the Company and its future operations.

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

Your Company has in place adequate internal financial controls with reference to financial statements, commensurate with the size, scale and complexity of its operations. Your Company uses Oracle based Systems as a business enabler and also to maintain its Books of Account. The transactional controls built into these systems ensure appropriate segregation of duties, appropriate level of approval mechanisms and maintenance of supporting records. The systems, Standard Operating Procedures and controls are reviewed by Management. These systems and controls are audited by Internal Audit and their findings and recommendations are reviewed by the Audit Committee which ensures the implementation. Review of the internal financial controls environment of the Company was undertaken during the year which covered verification of entity level control, process level control and IT controls, identification, assessment and definition of key business processes and analysis of risk control matrices, etc. The risk and control matrices are reviewed on a quarterly basis and control measures are tested and documented.

Reasonable Financial Controls are operative for all the business activities of the Company and no reportable material weakness or significant deficiencies in the design or operation of internal financial controls was observed.

Nonetheless your Company recognises that any internal control framework, no matter how well designed, has inherent limitations and accordingly, regular audits and review processes ensure that such systems are reinforced on an ongoing basis.

COMPLIANCE WITH THE PROVISIONS OF SECRETARIAL STANDARD - 1 AND SECRETARIAL STANDARD - 2

The Directors have devised proper systems to ensure compliance with the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively.

PARTICULARS OF REMUNERATION AND RELATED DISCLOSURES

Disclosures with respect to the remuneration of Directors, Key Managerial Personnel and Employees as required under Section 197(12) of the Companies Act, 2013 and Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are as under:

Disclosure Details

Ratio of the

Sl.

No.

Disclosure Requirement

Name of Director/ KMP

Designation

remuneration of each Director to median remuneration of Employees

1.

Ratio of the remuneration of each Director to the median remuneration

Mr. Dhananjay Mungale

Chairman

(Independent Director)

11.06X

of the employees of the Company for

Mr. M. G. Bhide

Independent Director

9.14X

the Financial Year 2017-18.

Mr. Piyush Mankad

Independent Director

8.78X

Mr. C. B. Bhave

Independent Director

8.45X

Ms. Rama Bijapurkar

Independent Director

7.85X

Mr. V. S. Parthasarathy

Non-Executive Director

NIL*

Dr. Anish Shah

Non-Executive Director

NIL*

Mr. Ramesh Iyer

Vice-Chairman & Managing Director

196.96X

Mr. V. Ravi

Executive Director & Chief Financial Officer

84.99X

Ms. Arnavaz M.

Company Secretary &

19.76X

Pardiwalla

Compliance Officer

* Mr. V. S. Parthasarathy and Dr. Anish Shah do not receive any remuneration from the Company.

Sl.

No.

Disclosure Details

Disclosure Requirement

Name of Director/KMP

Designation

% increase in Remuneration

2.

Percentage increase in Remuneration of each Director, Chief Financial

Mr. Dhananjay Mungale

Chairman (Independent Director)

1.82

Officer and Company Secretary during

Mr. M. G. Bhide

Independent Director

4.53

the Financial Year 2017-18.

Mr. Piyush Mankad

Independent Director

6.83

Mr. C. B. Bhave

Independent Director

2.81

Ms. Rama Bijapurkar

Independent Director

1.71

Mr. V. S. Parthasarathy

Non-Executive Director

NIL*

Dr. Anish Shah

Non-Executive Director

NIL*

Mr. Ramesh Iyer

Vice-Chairman & Managing Director

-11.53

Mr. V. Ravi

Executive Director & Chief Financial Officer

-13.94

Ms. Arnavaz M.

Company Secretary &

-11.16

Pardiwalla

Compliance Officer

* Mr. V. S. Parthasarathy and Dr. Anish Shah do not receive any remuneration from the Company.

3.

Percentage increase in the median

5.22% considering employees who were in employment for the whole of the

Remuneration of employees in the

Financial Year 2016-17 and Financial Year 2017-18.

Financial Year 2017-18.

4.

Number of Permanent employees on the rolls of the Company as on 31st March, 2018.

18,733

5. Average percentile increase already made in the salaries of employees other than the Managerial Personnel in the last Financial Year i.e. 201718 and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration.

For employees other than Managerial Personnel who were in employment for the whole of the Financial Year 2016-17 and Financial Year 2017-18, the average increase is 5.62%.

Average decrease for Managerial Personnel is 12.20%

Justification: The remuneration of the Vice-Chairman & Managing Director and Executive Director & Chief Financial Officer is decided based on the individual performance, inflation, prevailing industry trends and benchmarks.

The remuneration of eligible Non-Executive Directors consists of commission and sitting fees. While deciding the remuneration, various factors such as Director’s participation in Board and Committee Meetings during the year other responsibilities undertaken, such as Membership or Chairmanship/ Chairpersonship of Committees, etc., were taken into consideration.

The increment given to each individual employee is based on the employees’ potential, experience as also their performance and contribution to the Company’s progress over a period of time and also benchmarked against a comparator basket of relevant companies in India.

6. Affirmation that the remuneration is

The remuneration paid/payable is as per the Policy on Remuneration of

as per the Remuneration Policy of the

Directors and Remuneration Policy for Key Managerial Personnel and

Company

Employees of the Company.

Notes:

1] The remuneration calculated is as per Section 2[78] of the Companies Act, 2013 and includes the perquisite value of Stock Options of the Company exercised during the year

2] The calculations are based on Employees who were on the rolls of the Company for the whole of the Financial Year 2016-17 and Financial Year 2017-18.

Mr. Ramesh Iyer, Vice-Chairman & Managing Director and Mr. V. Ravi, Executive Director & Chief Financial Officer of the Company do not receive any remuneration or commission from its Holding Company. However, Mr. Iyer has been granted stock options under the Employees’ Stock Option Scheme of the Holding Company, Mahindra & Mahindra Limited. Mr. Iyer has not exercised ESOPs of the Holding Company, during the year, which were granted in the earlier year[s].

During the year under review, Mr. Ramesh Iyer and Mr. V. Ravi have received a commission of Rs. 76,56,314 and Rs. 19,15,000, respectively, from Mahindra Insurance Brokers Limited, a subsidiary of the Company. Further in the year under review, 1,14,273 stock options have been granted to Mr. Ramesh Iyer and 28,568 stock options have been granted to Mr. V. Ravi under the Employees’ Stock Option Scheme of Mahindra Rural Housing Finance Limited, the Company’s subsidiary company.

The Company had 14 employees who were in receipt of remuneration of not less than Rs. 1,02,00,000 during the year ended 31st March, 2018 or not less than Rs.8,50,000 per month during any part of the year.

Details of employee remuneration as required under provisions of Section 197 [12] of the Companies Act, 2013 read with Rule 5 [2] and 5 [3] of Companies [Appointment and Remuneration of Managerial Personnel] Rules, 2014 are available at the Registered Office of the Company during working hours, 21 days before the

Annual General Meeting and shall be made available to any shareholder on request. Such details are also available on your Company’s website and can be accessed at the web-link: http://www.mahindrafinance.com/annual-reports.aspx. None of these employees is a relative of any Director of the Company.

None of the employees holds either by himself/herself or along with his/her spouse or dependent children, more than two per cent of the Equity Shares of the Company.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

Your Company is an equal opportunity employer and is committed to ensuring that the work environment at all its locations is conducive to fair, safe and harmonious relations between employees. It strongly believes in upholding the dignity of all its employees, irrespective of their gender or seniority. Discrimination and harassment of any type are strictly prohibited.

The Company has in place an appropriate Policy in accordance with the provisions of the Sexual Harassment of Women at Workplace [Prevention, Prohibition and Redressal] Act, 2013, to prevent sexual harassment of its employees.

Internal Complaints Committee [ICC] has been set up to redress complaints received regarding sexual harassment.

All employees (permanent, contractual, temporary and trainees) are covered under this Policy. The Policy has been widely communicated internally and is placed on the Company’s intranet portal. The Company ensures that no employee is disadvantaged by way of gender discrimination.

The following is a summary of Sexual Harassment complaint(s) received and disposed off during the year 2017-18, pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rules framed thereunder:

(a) Number of complaint(s) of Sexual Harassment received during the year - 1

(b) Number of complaint(s) disposed off during the year - 1

(c) Number of cases pending for more than 90 days - 0

(d) Number of workshops/awareness programme against sexual harassment carried out - 1 workshop was conducted at the Company’s Corporate Office. Awareness on sexual harassment was carried out to sensitize employees of the Company at branches pan-India.

(e) Nature of action taken by the employer or District Officer - Warning letter was issued to the alleged employee.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars in respect of conservation of energy, technology absorption and foreign exchange earnings and outgo, as required under sub-section (3) (m) of section 134 of the Companies Act, 2013 read with Rule (8)(3)of the Companies (Accounts) Rules, 2014 are given as under :

(A) Conservation of Energy

(i) The steps taken or impact on conservation of energy:

The operations of your Company are not energy intensive. However, adequate measures have been initiated to reduce energy consumption.

Select few steps are listed:

a) Replacement of conventional lighting with Light Emitting Diode (LED) lighting :

The Company has installed LED lighting in Regional Offices of the Company during the year under review and the same has been monitored in terms of electrical consumption and expenses.

b) Replacement of old air-conditioning with updated version of machines with R-410A gas, which helps in reducing Ozone depletion.

c) Reduction in water and energy consumption and recycling of waste generation at various locations.

(ii) The steps taken by the Company for utilising alternate sources of energy: Nil.

(iii) The capital investment on energy conservation equipments: Nil.

(B) Technology Absorption

(i) The efforts made towards technology absorption:

Not Applicable.

(ii) The benefits derived like product improvement, cost reduction, product development or import substitution: Not Applicable.

(iii) I n case of imported technology (imported during the last three years reckoned from the beginning of the Financial Year): Not Applicable.

(a) Details of Technology Imported;

(b) Year of Import;

(c) Whether the Technology has been fully absorbed;

(d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof.

(iv) Your Company has not incurred any expenditure on Research and Development during the year under review.

(C) Foreign Exchange Earnings and Outgo

The information on foreign exchange outgo is furnished in the Notes to the Accounts. There were no foreign exchange earnings during the year.

For and on behalf of the Board

Dhananjay Mungale

Chairman

Place: Mumbai

Date : 25th April, 2018

Source : Dion Global Solutions Limited
Quick Links for mahindramahindrafinancialservices
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.