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Directors Report of Satin Creditcare Network Ltd.

Mar 31, 2022

It is our immense pleasure to present the 32nd Annual Report along with the audited financial statements of your Company for the financial year ended March 31,2022. The consolidated performance of the Company and its subsidiaries has been referred to wherever required.

FINANCIAL SUMMARY/HIGHLIGHTS, STATE OF AFFAIRS

(INR in lakhs)
Particulars	Standalone		Consolidated
Particulars	March-22	March-21	March-22	March-21
Total Revenue	1,26,193.49	1,27,307.52	1,38,089.38	1,38,017.68
Total Expenses	1,18,914.42	1,26,982.48	1,33,097.50	1,37,485.44
Profit before Depreciation and tax	7,279.07	325.04	4,991.88	532.24
Depreciation and amortization expenses	1,343.04	1,301.32	1,574.02	1,507.63
Profit / (Loss) Before Tax	5,936.03	(976.28)	3,471.86	(975.39)
Tax Expense	1,913.52	379.21	1,347.97	422.83
Profit / (Loss) after Tax	4,022.51	(1,355.49)	2,069.89	(1,398.22)
Other comprehensive income	(2,921.73)	(3,473.87)	(2,915.31)	(3,492.17)
Total comprehensive income for the year	1,100.78	(4,829.36)	(845.42)	(4,890.39)

Operation''s highl ights are hereunder:
Particulars	March 31, 2022	March 31, 2021
Number of branches	1,029	1,011
Amount disbursed (INR in lakhs)	4,03,130.38	4,39,445.68
Number of active Clients	24,54,130	26,56,200
Total Assets under management (INR in lakhs)	6,40,933.54	7,27,459.78

OPERATIONS, FUND RAISE, PROSPECTS AND FUTUREPLANS

Operational Highlights in brief (Standalone basis)

- The aggregate Assets under Management (AUM) of the Company stood at INR 6,40,933.54 lakhs as on March 31, 2022. This represents a quarter on quarter (QoQ) growth of 4.7% as compared to December 31,2021 and year on year (YoY) de-growth of 11.9% as compared to March 31,2021.

- Loan amount of INR 4,03,130.38 lakhs was disbursed in 2021-22, representing a decrease of 8.3% as compared to 2020-21.

- The Company disbursed 9,57,318 loans during 2021-22, a decrease of 27.9% over 2020-21.

- Average loan amount disbursed per account during 2021-22 was INR 0.42 lakhs as compared to INR 0.33 lakhs during 2020-21.

- The Company has operations spread across 23 states / union territories.

During the Financial Year under review, Company saw

~4 times increase in its profitability with a net profit of

INR 4,022.51 lakhs for the year ended March 31, 2022 as

compared to a net loss of INR 1,355.49 lakhs for the year

ended March 31, 2021. Profit before tax increased by ~7 times to INR 5,936.03 lakhs. Total Income has decreased from INR 1,27,307.52 lakhs for the year ended March 31, 2021 to INR 1,26,193.49 lakhs for the year ended March 31, 2022 which is mainly due to decrease in Assets Under Management (AUM) of the Company. AUM of the Company reached INR 6,40,933.54 lakhs as on March 31, 2022 as against INR 7,27,459.78 lakhs as on March 31, 2021. The Return on Average Assets increased to 0.53% in 2021-22 as compared to (0.18%) in 2020-21. The cost of funds declined to 11.20% in 2021-22 as compared to 11.49% in 2020-21. Net Interest Margin improved to 9.65% in 2021-22 as against 9.04% in 2020-21. Companyâs strong liquidity position provides significant headroom for growth. The Company has a CRAR of 27.84% as on March 31,2022 as compared to 25.28% as on March 31,2021.

Credit Rating

Your Company believes that its credit rating and strong brand equity enables it to borrow funds at competitive rates. The credit rating details of the Company as on March 31, 2022 were as follows:

Company has Long term Credit Rating of A- from CARE, ICRA & BWR, Short term rating of A1 from CARE & ICRA; MFI grading of MFI 1 (MFI One).

Fund raised during 2021-2022:

(a) Resource Mobilisation:

During the year under review, your Company has continued to diversify the sources of funds and raised a total sum of INR 4,15,345.78 lakhs by way of Equity Issuances, short-term loans, long-term loans, issue of Non-Convertible Debentures, External Commercial Borrowings, Securitization and Assignments. Out of overall fund raised INR 10,500 lakhs were raised through equity issuances and INR 4,04,845.78 lakhs raised through borrowings, which includes INR 29,630 lakhs by issuance of Non-Convertible Debentures and INR 2,04,500 lakhs by way of term loan. Company also raised one term loan through External Commercial Borrowing (ECB) route of INR 7,431.53 lakhs. Subordinated Debts represented long term source of funds for the Company and the amount outstanding as on March 31,2022 was INR 44,809.77 lakhs.

(b) Bank Finance:

Bank Finance remains an important source of funding for your Company. Commercial Banks continued their support to your Company. As of March 31, 2022, borrowings from banks were INR 3,10,809.72 lakhs as against INR 2,75,014.77 lakhs in the previous financial year.

Please refer the Management Discussion and Analysis Report for more information

During the 2020-21, Board of Directors of your Company on June 22, 2020 had approved fund raising by way of a Rights Issue and on July 30, 2020 had approved issue of 1,99,82,667 equity shares of face value of INR 10 each (the "Rights Equity Shares") at a price of INR 60 per Rights Equity Share (including premium of INR 50 per Rights Equity Share), aggregating to INR 11,989.60 lakhs, in the ratio of 48 Rights Equity Shares for every 125 existing fully-paid shares held by the eligible equity shareholders as on the Record Date i.e. August 5, 2020. On September 1,2020, the Company approved allotment of 1,99,82,283 Rights Equity shares of face-value INR 10

each to the eligible applicants. The Rights Equity Shares were allotted as partly paid-up for an amount of INR 15 per Rights Equity Share received on application (of which INR 2.50 was towards face value and INR 12.50 towards premium). 384 Rights Equity Shares issued by the Company are kept in abeyance pending regulatory / other clearances.

On February 12, 2021, the Company called for the 1st call money of INR 30 per partly paid shares ("PPS") [of which INR 5 is towards face value and INR 25 towards premium]. Till June 9, 2021, it received the due amount in respect of 1,99,27,917 Rights Equity shares aggregating to INR 5,978.38 lakhs. However, due to non-payment of the 1st call money, in accordance with the Articles of Association, the Company forfeited 54,366 Rights Equity shares of INR 10 each (INR 2.50 paid up) along with the amount paid thereon on June 9, 2021.

On July 6, 2021, the Company called for the Second and Final call money of INR 15 (of which INR 2.50 shall be towards face value and INR 12.50 towards premium) per Rights Equity Share on 1,99,27,917 Rights Equity shares of INR 10 each (INR 7.50 Paid up). Out of which, final call money amounting to INR 2,974.36 lakhs on 1,98,29,079 Rights Equity shares has been successfully received by the Company and same is converted into fully paid equity shares on September 2, 2021.

Your Company has extended the Final call money period (from September 7, 2021 to September 21, 2021) in respect of 98,838 Rights Equity share for which Final call money was not received.

During the said extended period the Company has received final call money amounting to INR 11.22 lakhs on 74,808 Rights Equity share and converted the same into fully paid shares on October 5, 2021 and forfeited 24,030 Rights Equity Share due to non -receipt of Final Call Money in accordance with the Articles of Association of the Company.

There has been no deviation in the use of proceeds of the Rights Issue, from the objects stated in the Offer document.

(d) Preferential Issue

In view of expanding business operations and to augment capital base to meet capital requirement also to maintain resource liquidity, your Company on January 25, 2022 had also raised INR 2,499.99 lakhs Equity Capital by way of Preferential Allotment and allotted 30,76,916 Equity Shares INR 10/- each to entities belonging to non-promoter group at an issue price of INR 81.25 per share and simultaneously issue and allot Fully Convertible Warrants ("Warrants") to entities belonging to promoter group and non-promoter group at an aggregate amount of INR 19,999.99 lakhs at an issue price of INR 81.25. Further, out of entire consideration payable towards Warrants i.e. INR 19,999.99 lakhs the Company has received INR 4,999.99 lakhs i.e., 25% of issue price before allotment of Warrants. Balance 75% shall be infused at the time of Conversion of Warrants

i.e. within 18 months from the date of allotment of Warrants.

(e) Non-Convertible Debentures (NCDs)

i. Issuance of Secured and Unsecured NCDs, by way of Private Placement basis:

During the financial year under review, the Company has successfully raised, by way of private placement, INR 14,230 lakhs from issue of 1,423 Secured NCDs having face value of INR 10,00,000 each and INR 5,700 lakhs from issue of 570 Unsecured NCDs having face value of INR10,00,000 each. The said Secured NCDs are listed on WDM segment of BSE Limited (BSE).

ii. Details of NCDs which have not been claimed by the Investors

There are no NCDs, which have not been claimed by the Investors or not paid by the Company after the date on which these NCDs became due for redemption.

Company''s Prospects, Future Plans and Business Overview:

FY 2021-22 can be viewed as the year of recovery, both from the perspective of financial as well as socio-economic health. The Company has been conscious of its roles and responsibilities to its key stakeholders throughout its journey during the pandemic period. Prudent decision-making and a long-term perspective have helped the Company keep its balance sheet healthy aimed at capitalizing on the growth opportunities expected in the post-pandemic era when normal economic activity resumes.

Business Overview

During FY 2021-22, the Company has affected a transition: stewarding itself away from the dip in business activity due to the pandemic towards preparing the ground for recovery and growth. Steadily increasing collection efficiency, the Company is looking at growing its disbursals, aided by a healthy CRAR and robust risk management practices. It is committed to improving its asset quality. It has successfully raised INR 225 Crore fundraise through the preferential allotment of equity shares and fully convertible warrants. The Company is well capitalized with a CRAR of 27.8% as on March 31,2022. It is constantly upgrading its technology, which has helped the Company to consistently shore up its operational efficiencies. The Companyâs subsidiaries too are doing well to provide for diversification of portfolio.

Prospects

With several encouraging steps taken by the regulator towards helping the microfinance industry make further inroads into the society, the Company is focused on its growth prospects over the near- and the long-term. ICRA has revised its outlook for NBFC-MFIs from Negative to Stable, with the expectation of steady growth in the AUM and the improvement of profitability. The new RBI regulations have positively impacted the outlook for the industry, as they seek to level the playing field and create more room for the microfinance industry to have an impact. The removal of capping of ticket sizes and pricing by the MFI players further gives greater autonomy to the players to customize their offerings. The RBI master circular on scale-based Regulation, Income Recognition and Asset Classification, Prompt Corrective Action, and information security marks a push for further consistency and transparency in published accounts. The setting up of an account aggregator is aimed at further enhancing the interoperability of data and help the ecosystem in the long term, especially the customer through a smoother loan approval process.

Future plans

The Companyâs strategy for FY 2022-23 will be to reprise growth by growing its disbursal rate while improving its asset quality. From an operational perspective, it is aiming at expanding its reach and driving consistently better collection efficiency. From the perspective of stakeholder proposition, it is looking to continue its awareness outreach aimed at its target communities to help them understand the benefits of microfinance and the best way to harness its advantages. It is using advanced technology to track and understand customer needs and the challenges they face in accessing microfinance.

Please refer to the Management Discussion and Analysis Report for more information on the Companyâs Business Overview.

SHARE CAPITAL Authorized Capital

During the year under review, Authorized Capital of your Company is increased from INR 1,70,00,00,000 consisting of 9,50,00,000 Equity Shares of INR 10/- each and 7,50,00,000 Preference Shares of INR 10/- each to INR 1,80,00,00,000 consisting of 10,50,00,000 Equity Shares of INR 10/- each and 7,50,00,000 Preference Shares of INR 10/- each, vide Shareholders approval in Extra-Ordinary General Meeting held on December 31,2021.

Paid-up Share Capitala. Equity Share Capital

The Paid up Equity Share Capital of the Company on April 1, 2021 stood at INR 66,89,70,672.50 divided into 5,20,38,194 fully paid Equity Shares of INR 10/- each and 1,97,26,605 partly paid Equity Shares of INR 10/-each (INR 7.50 paid-up) and 2,55,678 partly paid Equity Shares of INR 10/- each (INR 2.50 paid-up).

During the previous year, the Company had come up with the Rights Issue of equity shares amounting upto INR 12,000 lakhs and allotted 1,99,82,283 Partly Paid Equity shares of INR 10/- each at the price of INR 60/- per share (including premium of INR 50/-) on September 1, 2020 to existing shareholders of the Company on rights basis. The Company had received INR 15/- per Partly Paid Equity Share (comprising paid up value of INR 2.50 and premium of INR 12.50) on subscription of the aforesaid shares aggregating to amount of INR 2,997.34 lakhs.

Further, the Company had decided to make First Call of INR 30/- per share (including premium of INR 25/-) on 1,99,82,283 partly paid equity shares on eligible shareholders as on record date i.e. February 24, 2021 and the period for First call money was opened from March 3, 2021 to March 17, 2021. Thereafter, considering the pandemic situation due to Covid-19 and prevailing Lockdown in various states of India, the Rights Issue Committee has extended the payment period from April 1, 2021 to April 30, 2021 and further extended to May 1 1, 2021 to May 31, 2021 to provide last opportunity for payment of First Call Money, to the shareholders holding partly paid shares (INR 2.50 paid up). The Company had received INR 30/- per partly paid Equity Share (comprising paid up value of INR 5/- and premium of INR 25/-) on 1,99,27,917 partly paid Equity Share aggregating to amount of INR 5,978.38 lakhs. Due to non-receipt of First Call money, the Company had forfeited 54,366 partly paid Equity Shares (paid-up INR 2.50) and money already paid thereon.

Thereafter, on June 14, 2021, the Company has decided to make a Second and Final Call of INR 15/- per share (including premium of INR 12.50) on 1,99,27,917 partly paid Equity Shares to the eligible shareholders as on record date i.e. July 16, 2021 and the Second and Final Call money period was opened for period from August 6, 2021 to August 20, 2021. Further, considering the pandemic situation due to Covid-19, the Rights Issue Committee has further extended the payment period from September 7, 2021 to September 21, 2021. The Company had received INR 15/- per partly paid equity share (comprising paid up value of INR 2.50 and premium of INR 12.50) on 1,99,03,887 partly paid equity share aggregating to amount of INR 2,985.58 lakhs. Due to non-receipt of Second and Final Call money, the Company had forfeited 24,030 partly paid Equity Shares (paid-up INR 7.50) and money already paid thereon.

Further, your Company had also raised INR 2,499.99 lakhs Equity Capital by way of Preferential Allotment and allotted 30,76,916 Equity Shares INR 10/- each to entities belonging to non-promoter group at an issue price of INR 81.25 per share (comprising paid up value of INR 10/- and premium of INR 71.25) on January 25, 2022.

Thus, as on March 31, 2022, the Paid-up Equity Share Capital of the Company stood increased to INR 75,01,89,970/- divided into 7,50,18,997 fully paid Equity Shares of INR 10/- each.

b. Preference Share Capital

During the year under review, your Company had redeemed 2,50,00,000 12.10% Rated, Cumulative, NonConvertible and Compulsorily Redeemable Preference Shares ("the Preference Shares") on April 22, 2021, as approved by the Board in its meeting held on March 26, 2021 to those Preference shareholders whose names were appeared in the Register of Preference Shareholder of the Company as on April 7, 2021 (Record date) determined as per the Agreement dated June 10, 2016.

Thus, as on March 31, 2022, the Paid-up Preference Share Capital of the Company stood as Nil.

DIVIDEND

In order to undertake and carry on future plans, it is necessary to conserve the resources. Your Directors are of the opinion of retaining the profits for the year within the Company, and thus have not recommended any dividend on equity shares for the year ended March 31,2022.

preparation of reliable financial disclosures. The Audit Committee ensures that all procedures are properly authorised, documented, described and monitored. Your Company has in place technologically advanced infrastructure with computerisation in all its operations, including accounts and MIS.

Your Company has in place strong internal audit processes and systems and designs annual risk based audit plan to ensure optimum portfolio quality and keep risks at bay. There is a risk based audit methodology for branch audits and centralised support functions audits which are planned based on various risk based parameters. There is a full-fledged inhouse Internal Audit department. The branch audits, regional office audit, social audit takes place generally on a quarterly basis while centralised support function audits takes place as per periodicity defined in the audit plan.

The Audit Committee of the Board of Directors, comprising of Independent Directors, periodically reviews the internal audit reports, covering findings, adequacy of internal controls, and ensure compliances. The Audit Committee also meets the Companyâs Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system, compliance to accounting policies and procedures, adequacy and effectiveness of the internal controls and systems followed by the Company. Information System Security controls enable the Company to keep a check on technology-related risks and also improve business efficiency and distribution capabilities. Your Company is committed to invest in IT systems, including back-up systems, to improve the operational efficiency, customer service and decision-making process.

High standards of your Companyâs internal control systems is adequately reflected in it receiving ISO 27001:2013 Certification post qualifying two stages of audit by third party certification body - Documentation audit and Control Testing audit. There is also an annual Surveillance Audit conducted by third party ISO Auditors to retain the certification. This indicates your Company has an integrated and robust Information Security Management System (ISMS) in its business processes & exemplifies that information security and client confidentiality are part of the cornerstones of your Companyâs strategic objectives. This approach also ensures that employees supported by IT systems and processes throughout the organization maintain a high standard of security.

Your Company has been using "Centralized Shared Services Centre" to be more vigilant in authentic on-boarding of customers. Centralized Shared Services (CSS), an outsourced Process unit helps in verification of Loan Application and KYC

AMOUNT TRANSFERRED TO RESERVES

An amount of INR 804.50 lakhs, being 20% of the profit after tax (PAT) was transferred to statutory reserve of the Company pursuant to Section 45IC of the Reserve Bank of India Act, 1934. Further, the closing balance of the retained earnings of the Company for 2021-22, after all appropriation and adjustments was INR 27,539.10 lakhs.

DEPOSITS

The Company has not accepted/received any deposit during the year under report falling within the ambit of Chapter V of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.

Your Company is registered with the Reserve Bank of India (RBI), as a Non-Deposit accepting NBFC under Section 45-IA of the RBI Act, 1934. Your Directors hereby report that the Company has not accepted any public deposits during the year under review and it continues to be a non-deposit taking non-banking financial company in conformity with the guidelines of the RBI. As such no amount of principal and interest was outstanding during the year.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

During the year under review, in terms of the provisions of Section 186(1) of the Act, the Company did not make any investments through more than two layers of investment companies.

Since, the Company is Non- Banking Financial Company, the disclosures regarding particulars of the loans given, guarantees given and security provided is exempt under the provisions of Section 186(11) of the Companies Act, 2013 read with rules made thereunder, as amended. Further, the details of investments made by the Company are given in the Notes to the Financial Statements.

DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS

documents by verifying the authenticity of the clients being disbursed. This has helped in filtering adverse customer selection & sanctioning.

MATERIAL EVENT RECORDED SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS

There are no further material change and commitment affecting the financial position of the Company, which has occurred between the end of the financial year of the Company i.e. March 31,2022 and the date of the Directorsâ Report.

DETAILS OF SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES, AS REQUIRED UNDER RULE 8 OF THE COMPANIES (ACCOUNTS) RULES, 2014

SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES

The Company has following 3 (Three) Wholly owned subsidiaries as on March 31,2022. There are no associate or joint venture companies within the meaning of Section 2(6) of the Companies Act, 2013 ("Act"). There has been no material change in the nature of the business of the subsidiaries-

1. Taraashna Financial Services Limited ("TFSL")*: The

Company was incorporated on May 22, 2012 originally as private limited company with the name Taraashna Services Private Limited and became Wholly Owned Subsidiary of the Company w.e.f. July 27, 2018. TFSL is engaged in Business Correspondent activities. As on March 31,2022, its paid-up capital stood at INR 1,604 lakhs.

2. Satin Housing Finance Limited ("SHFL"): The Company was incorporated on April 17, 2017, as a Wholly-Owned Subsidiary of the Company. It is registered with National Housing Bank and holds the Certificate of Registration (COR) as Housing Finance Company (not holding/ accepting of Public deposits) dated on November 14, 2017 to carry on activities of housing finance business under Section 29A of the National Housing Bank Act, 1987. SHFL is engaged in providing long-term finance for purchase, construction, extension and repair of houses for the retail segment along with loans against residential property, commercial property and plots. During the year under review, the Company has infused INR 500 lakhs by way of equity share capital due to which the paid up capital stood at INR 10,000 lakhs as on March 31,2022.

3. Satin Finserv Limited ("SFL")*: The Company was incorporated on August 10, 2018 as Wholly Owned Subsidiary of the Company. It is RBI registered NonDeposit taking Systemically Important Non- Banking Finance Company. SFL is engaged in providing business

loans to Micro, Small and Medium scale Enterprises and to individuals. Further, also engaged in providing corporate loans. As on March 31, 2022 itâs paid up capital stood at INR 10,250 lakhs.

*The Board of Directors of Taraashna Financial Services Limited (âTFSL") and Satin Finserv Limited (âSFL"), in their respective meetings held on August 03, 2021, have considered and approved the Scheme of Arrangement for Amalgamation of TFSL (âTransferor Company") with SFL (âTransferee Company") and their respective shareholders and creditors (''Scheme'') under Sections 230 to 232 of the Companies Act, 2013 (âAct") and other applicable provisions of the Act and rules made thereunder. Consequently, the first motion application has been filed before Hon''ble NCLT, Chandigarh Bench after obtaining requisite NOCs from shareholders and creditors of TFSL and SFL. The said first motion application is reserved and allowed by the said Hon''ble NCLT on hearing dated April 6, 2022. The said order was pronounced on hearing date May 17, 2022 by Hon''ble NCLT. The both companies has filed joint second motion application with Hon''ble NCLT on May 25, 2022. The said joint second motion application is admitted by Hon''ble NCLT in its hearing dated July 08, 2022 and issued necessary directions of serving notices and newspapers advertisements which are under process. Business Highlights of Taraashna Financial Services Limited

Taraashna Financial Services Limited (TFSL) has achieved a gross turnover of INR 6,971.66 lakhs during the year mainly from business correspondent activity (against total gross turnover of INR 5,932.77 lakhs during the previous year). Disbursement under Business Correspondence arrangements for 2021-22 is INR 57,863 lakhs as against INR 43,908 lakhs in 2020-21, an increase of 32%. Its Net-worth stood at INR 2,391.91 lakhs as at March 31,2022. TFSL has 3.50 lakhs unique active customers as at March 31, 2022 and Cost of Funds for 2021-22 at 13.75% same as in 202021. TFSL has partnered with seven (7) banks and three (3) NBFCs and has received the income from all the ten Principal Partners during the 2021-22. However, agreement with DCB Bank and Hiranandani Financial Services Private Limited has been terminated during the year.

As TFSL is under process of amalgamation with SFL, Management of your Company can see bright future of merged entity in long run.

Business Highlights of Satin Housing Finance Limited

Satin Housing Finance Limitedâs (SHFL) net worth stood at INR 10,123.87 lakhs for the year ended March 31, 2022. As on that date, regulatory Capital to Risk Assets Ratio (CRAR)

DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

A. Directors

As on March 31,2022, the Board of Directors of your Company consist of 8 Directors. Their details are as follows:

During the year under review, the Non-Executive Directors of the Company had no pecuniary relationship or transactions with the Company, other than sitting fees and reimbursement of expenses, if any.

The Board was duly constituted in compliance with Regulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 during the financial year ended March 31, 2022 and there is no change in the Board during the financial year under review.

B. Retirement by Rotation Mr Satvinder Singh

In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Articles of Association of the Company, Mr Satvinder Singh, Director of the Company is liable to retire by rotation for this year and being eligible, offer

SI. No.	Name of Directors	Category
1	Mr Harvinder Pal Singh	Executive Promoter Director
2	Mr Satvinder Singh	Non-Executive, Non-Independent, Promoter Director
3	Mr Sundeep Kumar Mehta	Non-Executive Independent Director
4	Mrs Sangeeta Khorana	Non-Executive Woman Independent Director
5	Mr Goh Colin	Non-Executive Independent Director
6	Mr Sanjay Kumar Bhatia	Non-Executive Independent Director
7	Mr Christian Bernhard Ramm	Non-Executive Non-Independent Nominee Director
8	Mr Anil Kumar Kalra	Non-Executive Independent Director

was 60.65%. Further, during the year, National Housing Board sanctioned INR 3,000 lakhs under refinance facility to SHFL. SHFL''s total income during the year ended March 31, 2022 is INR 3,804.37 lakhs as compared to previous year ended March 31, 2021 is INR 2,957.30 lakhs and earned net profit after tax during the year ended March 31,2022 of INR 303.76 lakhs as compared to profit during previous year ended March 31,2021 of INR 137.27 lakhs.

The Management of your Company is highly optimistic for bright future of SHFL in the years to come.

Business Highlights of Satin Finserv Limited

Satin Finserv Limited ("SFL") wholly owned subsidiary''s net worth stood at INR 10,829.32 lakhs as on March 31,2022. The Capital to Risk Asset ratio in terms of regulatory requirement is 64.04% which is well above the regulatory requirement of 15.00%. During the fourth year of operations, SFL has shown decent growth in terms of Sanctions & Disbursements of Loans. During the year under review SFL has Disbursed Loans of INR 9,561.50 lakhs, and thereby achieved AUM of INR 16,633 lakhs. SFL reported Total Income during the year ended March 31, 2022 is INR 2,758.29 lakhs and net profit after tax of INR 180.95 lakhs.

Management of your Company can see a positive outlook of the SFL in the years to come.

Consolidated Financial Statements

In accordance with Section 129(3) of the Companies Act, 2013 and Regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Consolidated Financial Statements of the Company including the financial details of all the subsidiary companies, forms part of the Annual Report. The Consolidated Financial Statements have been prepared in accordance with the provisions of Indian Accounting Standards issued by the Institute of Chartered Accountants of India.

Further, a statement containing salient features of the financial statements of the Company''s subsidiaries in Form AOC-1 also form part of the Annual Report. Further, the Company has neither any Associates nor any Joint Ventures as on March 31,2022.

NAMES OF THE COMPANIES WHICH HAVE BECOME OR CEASED TO BE SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES

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

himself for re-appointment as Director. Brief resume and other details of Mr Satvinder Singh who is proposed to be re-appointed as a Director of the Company have been furnished, with the explanatory statement to the notice of the ensuing Annual General Meeting.

C. Key Managerial Personnel

During the year under review, Mr Vipul Sharma was appointed as Company Secretary & Compliance Officer and Key Managerial Personnel of the Company w.e.f. May 12, 2021 in place of Mr Adhish Swaroop who had resigned w.e.f. May 1 1,2021 (close of business hours).

As on March 31, 2022, Mr Harvinder Pal Singh, Chairman cum Managing Director, Mr Jugal Kataria, Group Controller, Mr Rakesh Sachdeva, Chief Financial Officer and Mr Vipul Sharma, Company Secretary & Compliance Officer are the Key Managerial Personnel of your Company in accordance with the provisions of Sections 2(51) and 203 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

The present term of Mr Harvinder Pal Singh as Chairman cum Managing Director of the Company shall expire on September 30, 2025.

Meetings of the Board

During the period under review, 10 (Ten) Board Meetings were held, the detail of the same have been included in the Corporate Governance Report, which forms part of the Annual Report.

PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS

Pursuant to the provisions of Section 178 of the Companies Act, 2013 and Regulation 17(10) read with Part D of Schedule 11 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulations"), the Nomination and Remuneration Committee and the Board of Directors have formulated a policy for performance evaluation (same is covered under the Nomination and Remuneration Policy of the Company) of its own performance, of various mandatory Committees of the Board and of the individual Directors.

Further, SEBI vide its circular (Ref. no. SEBI/HO/CFD/CMD/ CIR/P/2017/004) dated January 5, 2017 issued a guidance note on Board Evaluation for listed companies. In view of the same and in terms of Board approved Nomination & Remuneration Policy of the Company, the Independent Directors in their separate meeting held on March 11, 2022 under Regulation 25(4) of the Listing Regulations and Schedule IV of the Companies Act, 2013 had:

(i) reviewed the performance of Non-Independent Directors and the Board as a whole;

(ii) reviewed the performance of the Chairperson of the Company, taking into account the views of executive and non-executive Directors; and

(iii) assessed the quality, quantity and timelines of flow of information between the Company management and the Board that was necessary for the Board to effectively and reasonably perform their duties.

Further, in terms of the provisions of Regulation 19(4) read with Part D of Schedule II of the Listing Regulations and Section 178 of the Companies Act, 2013, the performance evaluation process of all the Independent and NonIndependent Directors of the Company was carried out by the Nomination and Remuneration Committee in its meeting held on March 29, 2022.

Further, in terms of Regulation 17(10) of the Listing Regulations and Schedule IV of the Companies Act, 2013, the Board of Directors also in their meeting held on March 30, 2022, carried out the performance evaluation of its own performance and that of its Committees and of the individual Directors.

The entire performance evaluation process was completed to the satisfaction of Board.

STATEMENT ON DECLARATION âCERTIFICATE OF INDEPENDENCE" U/S 149 (6) FROM INDEPENDENT DIRECTORS

The Board has Independent Directors and there is an appropriate balance of skills, experience and knowledge in the Board to enable the Board to discharge its functions and duties effectively. The Independent Directors have submitted disclosure that they meet the criteria of independence as provided under Section 149(6) of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

COMPLIANCE WITH SECRETARIAL STANDARDS

The Company has 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.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 134 (5) of the Companies Act, 2013, the Board of Directors of the Company, to the best of its knowledge and ability, hereby confirm that:

1. in the preparation of the annual accounts for the financial year ended March 31, 2022, the applicable accounting standards had been followed along with proper explanation relating to material departures;

2. they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2022 and of the profit and loss of the Company for the year ended on that date;

3. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. they have prepared the annual accounts for financial year ended March 31,2022 on a going concern basis;

5. they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively during the financial year ended March 31,2022; and

6. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively during the financial year ended March 31,2022.

INFORMATION ON MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL

During the period under review, there were no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status of the Company and its operations in future.

RELATED PARTY TRANSACTIONS

The Company has put in place a Policy on materiality of Related Party Transactions and dealing with Related Party Transactions ("RPT Policy"), which has been approved by the Board of Directors in their meeting held on January 31,2022. The Policy provides for identification, necessary approvals by the Audit Committee / Board, reporting and disclosure requirements in compliance with the requirements of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

All transactions entered by the Company during the financial year with related parties were on armsâ length basis and in the ordinary course of business or in absence of any criteria, approval was obtained as per the applicable provisions and RPT Policy of the Company. All such RPTs were placed before

the Audit Committee / Board for approval wherever applicable. The Audit Committee reviews all RPTs periodically.

During the year under review, your Company has not entered into any contracts/ arrangement / transaction with related parties which could be considered material in accordance with Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and the RPT Policy of the Company. The policy for determining material subsidiary, materiality of RPTs, and dealing with RPTs as approved by the Board may be accessed on the website of the Company and the web-link of the same is https:// satincreditcare.com/wp-content/uploads/7077/03/Policy-on-Materiality-of-RPT-and-Dealing-with-RPT.pdf

All RPTs entered into during the 2021-22 were in the ordinary course of business and on armâs length basis. No material RPTs were entered into during the 2021-22 by the Company as defined in the RPT Policy. Accordingly, the disclosure of RPTs as required under Section 134(3)(h) of the Act in Form AOC-2 is not applicable. Further, details of Related Party Transactions as required to be disclosed as per Indian Accounting Standard - 24 "Related Party Disclosures" specified under Section 133 of the Companies Act, 2013 are given in the Notes to the Financial Statements.

Furtherance to this, the remuneration paid to Mr Harvinder Pal Singh, Chairman cum Managing Director and sitting fee paid to non-executive Directors (other than Investorâs nominee) for each Board/Committee meeting(s) attended are shown under Related party disclosures segment under "Notes to the account" of Financial Statements in terms of Indian Accounting Standard - 24 issued by The Institute of Chartered Accountants of India.

AUDITORS & THEIR REPORTS Statutory Auditors & their Report:

Pursuant to the guidelines issued by RBI on April 27, 2021 for appointment of Statutory Central Auditor (SCA)/ Statutory Auditor (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs) vide its circular No. RBI/2021-22/25 Ref. No DoS.C0.ARG/SEC.01/08.91.001/2021-22 ("RBI Circular"), the Company had to appoint the Statutory Auditors for a continuous period of three years subject to the firm satisfying the eligibility norms each and these guidelines had to be adopted from the second half of 202122 onwards. As our existing Auditors M/s Walker Chandiok & Co LLP Chartered Accountants (ICAI Registration 001076N/ N500013) had already completed 4 years as a Statutory Auditors of the Company, therefore in terms of the aforesaid RBI Circular they were not eligible to continue w.e.f. October 1,2021 i.e. w.e.f. applicability of the RBI Circular.

Further, in terms of the RBI Circular and in order to protect the independence of the auditors, the Board of Directors of your Company had recommended appointment of M/s S S Kothari Mehta & Company, Chartered Accountants, New Delhi, Firm Registration No. 000756N issued by Institute of Chartered Accountants of India, having a valid Peer review Certificate issued by the Peer Review Board of ICAI, as the Statutory Auditors of the Company on the recommendation of the Audit Committee, for a term of three (3) years in their meeting held on July 14, 2021.

Accordingly, M/s S S Kothari Mehta & Company, Chartered Accountants, New Delhi, Firm Registration No. 000756N, have been appointed as the Statutory Auditors of the Company at the Thirty First Annual General Meeting ("AGM") of the Company held on August 11, 2021, on the recommendation of Audit Committee and Board of Directorâs (in conformity with the provisions of Sections 139 and 141 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 (includes amendments thereto), for a period of 3 years from the conclusion of the AGM (for 202021) till the conclusion of the thirty fourth AGM (for 2023-24) subject to the applicable provisions from time to time. The Company had received their written consent and certificate that they satisfy the criteria provided under Section 141 of the Act and RBI Circular and that the appointment, if made, shall be in accordance with the applicable provisions of the Act and rules framed thereunder.

The Statutory Auditors have confirmed that they are not disqualified from continuing as the Statutory Auditors of the Company.

The Auditorsâ Reports for the 2021-22 does not contain any qualification, reservation, adverse remark or disclaimer. Further, there were no instances of any fraud reported by the Statutory Auditor to the Board pursuant to Section 143(12) of the Companies Act, 2013.

The Board has placed on record its sincere appreciation for the services rendered by M/s S S Kothari Mehta & Company, Chartered Accountants, as Statutory Auditors of the Company.

Secretarial Auditors & their Report:

In terms of Section 204 of the Companies Act, 2013 and Rules framed thereunder and based on the recommendation of the Audit Committee, the Board of Directors of the Company has appointed M/s S. Behera & Co. Company Secretaries (ICSI PCS Registration No. 5980) as the Secretarial Auditors of the Company for 2021-22 in its meeting dated June 14, 2021. The Company provided all the assistance and the facilities to the Secretarial Auditors for conducting the Secretarial

Audit. Secretarial Audit Report as provided by M/s S. Behera & Co., Company Secretaries is also annexed to this Report, in the prescribed Form MR-3, as Annexure-I. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.

The Board has placed on record its sincere appreciation for the services rendered by M/s S. Behera & Co., Company Secretaries, as Secretarial Auditors of the Company.

Cost records and Cost audit:

Maintenance of cost records and requirement of Cost Audit as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, is not applicable for the business activities carried out by the Company. Reporting of Frauds by Auditors

During the period under review, neither the Statutory Auditors nor the Secretarial Auditors have reported to the Audit Committee/ Board or Central Government any instances of material fraud in the Company by its officers or employees under Section 143(12) of the Companies Act, 2013.

However, there have been few instances of misappropriation and criminal breach of Trust including embezzlement of cash by the employees amounting to INR 155.96 lakhs. In such cases, the action taken by the Company is, to terminate the services of such employees and also initiate legal action against such employees. In this course, the Company has recovered INR 53.19 lakhs from some of those employees.

AUDIT COMMITTEE

The Company has an Audit Committee constituted in accordance with the provisions of Section 177 of the Companies Act, 2013, RBI Guidelines and Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. All the members of the Committee have expertise in finance and have knowledge of accounting and financial management. The scope of the activities of the Audit Committee as set out in Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and read with Section 177 of the Companies Act, 2013 and other applicable laws are approved by Board of Directors of the Company. The composition of the Audit Committee and the details of meetings attended by the Committee members are provided in Corporate Governance Report which forms part of the Annual Report.

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

Your Company has a vision to drive ''holistic empowermentâ of the community and carries CSR initiatives through partnering with a trust/ foundation, qualified to undertake CSR activities

in accordance with Schedule VII of the Companies Act, 2013 (includes amendments thereto). Sustainability and social responsibility are an integral element of corporate strategy of the Company. In compliance with Section 135 of the Companies Act, 2013 read with Rules made thereunder and as amended from time to time, the Company has established the Corporate Social Responsibility Committee (CSR Committee) and the composition, function and details of meetings attended by the Committee Members are provided in the Corporate Governance Report.

During 2021-22, your Company has undertaken a long term project to Promote Education and Healthcare through making proposed contribution of INR 181.21 lakhs to S. Amar Singh Educational Charitable Trust towards construction of the girl''s hostel premises in GNA University, Punjab, as an ongoing project. During the year, your Company has also contributed directly an amount of INR 3.30 lakhs towards the projects like flood relief CSR initiative in West Bengal and Supporting Educational Initiatives for Less Privileged Students in GNA university, Punjab by contributing an INR 150 lakhs through S. Amar Singh Educational Charitable Trust.

Key initiatives under each thematic area and the Annual Report on CSR under section 135 of the Act read with Rules made thereunder, is annexed as Annexure-II to this Report and the same is available on the website of the Company i.e. www.satincreditcare.com.

As per amended CSR Rules and CSR Policy of the Company, the funds required to be disbursed have been utilised for the purposes and in the manners as approved by the Board of the Company and confirmation to this effect have been received from Mr Rakesh Sachdeva, Chief Financial Officer and Ms. Aditi Singh, CSR Nodal Officer of the Company and such confirmations have been duly noted by the Board in its meeting held on May 4, 2022.

The Composition of CSR Committee and Board adopted CSR Policy as formulated and recommended by the CSR Committee are available at https://satincreditcare.com/board-of-directors/ &https://satincreditcare.com/wp-content/uploads/2021 /03/ CSR-Policy-Version-3-01.03.2021 .pdf, respectively.

E-VOTING

To widen the participation of shareholders in Company''s decisions pursuant to provisions of Section 108 of Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules, 2014 as amended and in terms of Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015, the Company has provided e-voting facility to its members, in respect of all member''s resolutions required to be passed at General

Meeting(s) of the Company. The Company is providing this facility to enable them to cast their votes electronically on all resolutions set forth in the Notice. The instruction(s) for evoting for ensuing Annual General Meeting is provided in its Notice to members. The Company has signed necessary agreements with National Securities Depository Limited and Central Depository Services (India) Limited to facilitate e-voting for member''s approval in their general meetings or through postal ballots.

To contribute towards greener environment, the Company again proposes to send documents like general meeting notices/other notices, annual report, audited financial statements, boards'' report, auditors'' report or any other document, to members in electronic form at the e-mail address provided by them and/or available to the Company by the Depositories. Members who have not yet registered their e-mail address (including those who wishes to change their already registered e-mail address) may get the same registered/updated either with his/her depository participants or by writing to the Company / RTA.

EMPLOYEES STOCK OPTION PLAN

Pursuant to the approval accorded by members at their Annual General Meeting held on July 6, 2017, the Nomination and Remuneration Committee (NRC) of the Company formulated a new scheme ''Satin Employee Stock Option Scheme 2017'' ("ESOS 2017") in accordance with the erstwhile Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. ESOS is applicable to all permanent and full-time employees (as defined in the Plan), excluding promoters of the Company.

The eligibility of employees to receive grants under the Plan has to be decided by NRC from time to time at its sole discretion.

Vesting of the options shall take place in the manner determined by NRC at the time of grant provided the vesting period. Vesting of options shall be subject to the condition that the Grantee shall be in continuous employment with the Company and such other conditions as provided under. The Exercise Price of each grant is determined by NRC at the time of grant.

Presently, stock options have been granted or shares have been issued under ESOS 2017.

Details of Options Granted, Vested and Exercise of Options

I. ESOS 2009: ESOS 2009 scheme was repealed in terms of Resolution passed by the Shareholders at their meeting held on July 6, 2017.

SI.

No.

Particular

Satin ESOP 2009*

Satin ESOP I 2010*

Satin ESOP II 2010*

Satin ESOS Scheme 2017

Source of shares (primary, secondary or combination)

Primary

Variation in terms of options

Not Applicable

Variations in Terms of Grants can be done by the Nomination and Remuneration Committee

*The said Scheme had been repealed vide Shareholders resolution dated July 6, 2017

(ii) Method used to account for ESOS: Fair Value (Black Scholes Model).

(iii) As the Company has opted for expensing of the options using the fair value of the options,

Difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognized if it had used the fair value: Not Applicable

The impact of this difference on profits and on EPS of the Company: Not Applicable

(iv) Option movement during the year (For each ESOS):

Particulars	Satin ESOS Scheme 2017
Number of options outstanding at the beginning of the period	79,300
Number of options granted during the year	NA
Number of options forfeited / lapsed during the year	79,300
Number of options vested during the year	0
Number of options exercised during the year	0
Exercise Price (In INR)	160
Number of shares arising as a result of exercise of options	0
Money realized by exercise of options (INR), if scheme is implemented directly by the Company	0
Loan repaid (INR) by the Trust during the year from exercise price received	0
Number of options outstanding at the end of the year	0
Number of options exercisable at the end of the year	0

(v) Weighted-average exercise prices and weighted-average fair values of options: Not Applicable

(vi) Employee wise details (name of employee, designation, number of options granted during the year, exercise price) of options granted to:

a. Senior Managerial Personnel: Nil

b. Any other employee who receives a grant in any one year of option amounting to 5% or more of option granted during that year: Nil

c. Identified employee who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant: Nil

(vii) A description of the method and significant assumptions used during the year to estimate the fair value of options including the following information:

Method: Black Scholes

a. Significant Assumptions used to estimate the fair value are as follows:

1. Expected volatility

2. Risk free interest rate

3. Returns are normally distributed

4. Markets are perfectly liquid

	Grant 1 ESOS 2017			Grant 2 ESOS 2017
Particulars	1^st tranche of vesting	2^nd tranche of vesting	3^rd tranche of vesting	1^st tranche of vesting	2^nd tranche of vesting
Fair market value of option on the date of grant	INR 267.38	INR 267.38	INR 267.38	INR 386.65	INR 386.65
Exercise Price	INR 160.00	INR 160.00	INR 160.00	INR 160.00	INR 160.00
Expected Volatility	55.86%	62.90%	62.90%	45.31%	53.94%
Expected Life	3.08	1.50	2.50	3.50	1.50
Expected Dividend			Nil
Risk Free Interest Rate	6.35%	6.40%	6.45%	7.53%	7.66%
Any other inputs to the model			N.A.

b. The method used and assumptions made to incorporate the effects of expected early exercise:

Not Applicable as all the options under Scheme lapsed during the year.

c. How expected volatility was determined, including an explanation of the extent to which expected volatility was based on historical volatility; and

Not Applicable as all the options under Scheme lapsed during the year.

d. Whether and how any other features of the Options granted were incorporated into the measurement of fair value, such as a market condition:

â¢ The closing price of the Companyâs share on NSE on the date previous to the grant date.

â¢ The Company has not declared any dividend. Accordingly, no adjustment is made to the aforesaid closing price for the expected dividend yield over the expected life of the Options.

â¢ The expected life of the Options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur.

â¢ The expected volatility reflects the assumptions that the historical volatility over a period similar to the life Options is indicative of future trends, which may not necessarily be the actual outcome.

D. Details of Employee Stock Purchase Scheme: Not Applicable

E. Details Related to Stock Appreciation Rights (SAR): Not Applicable

F. Details related to General Employee Benefit Scheme / Retirement Benefit Scheme: Not applicableG. Details related to trust:

Sl. No.	Particulars	Details
1.	General information on all schemes
	a) Name of the Trust	SCNL Employee Welfare Trust
	b) Details of Trustee	Mr Subir Roy Chowdhury Mr Amit Kumar Gupta Mr Manish Kumar Mittal Ms Aditi Singh
	c) Amount of loan disbursed by Company / any Company in the group, during the year	INR 90,00,000
	d) Amount of loan outstanding (repayable to Company / any Company in the group) as at the end of the year	INR 1,69,69,000

Sl. No.	Particulars	Details
	e) Amount of loan, if any, taken from any other source from which Company / any Company in the group has provided any security or guarantee	Nil
	f) Any other contribution made to the Trust during the year	Nil
2.	Brief details of transactions in shares by the Trust
	a) Number of shares held at the beginning of the year	3,48,950 fully paid equity shares of INR 10/- each
	b) Number of shares acquired during the year through (i) primary issuance (ii) secondary acquisition, also as a percentage of paid up equity capital as at the end of the previous financial year, along with information on weighted average cost of acquisition per share	Primary Issuance: 1,33,996 partly paid shares issued and allotted under rights issue were made fully paid up after receipt of final call money. Secondary Acquisition: Nil
	c) Number of shares transferred to the employees / sold along with the purpose thereof	Nil
	d) Number of shares held at the end of the year	4,82,946 fully paid equity shares of INR 10/- each
3.	In case of secondary acquisition of shares by the Trust
	Held at the beginning of the year	Nil
	Acquired during the year	Nil
	Sold during the year	Nil
	Transferred to the employees during the year	Nil
	Held at the end of the year	Nil

ESOS Schemes Compliance Status

ESOS 2017 is in compliance with Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ("SEBI (SBEB & SE) Regulations")

and the Companies Act, 2013. The Company has received a certificate from the Secretarial Auditor of the Company certifying that ESOS 2017 Scheme of the Company is being implemented in accordance with the SEBI (SBEB & SE) Regulations and is in accordance with the resolution passed by the Members of the Company at a general meeting.

The ESOS Schemes are implemented in accordance with Indian Accounting Standards issued by ICAI and the relevant accounting pronouncements.

Administration of ESOS Schemes

The Nomination and Remuneration Committee of the Board administer the Employee Stock Option Schemes, formulated by the Company from time to time.

Pursuant to the provisions of SEBI (SBEB&SE) Regulations, above details are also available at https://satincreditcare.com/ investor-relations-satin-creditcare/#AgmEgmPostalBallots

POLICIESVigil Mechanism/Whistle Blower Policy:

The Company in accordance with the provisions of Section 177(9) of Companies Act, 2013 read with Rule 7

of Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has established a vigil mechanism through Whistle Blower Policy to deal with instances of unethical behaviour, actual or suspected, fraud or violation of Companyâs code of conduct or ethics policy and details of the same are explained in the Corporate Governance Report. The Policy provides adequate safeguard against victimization to the Whistle Blower and enables them to raise concerns and also provides an option of direct access to the Chairman of Audit Committee. During the period under review, none of the personnel have been denied access to the Chairman of the Audit Committee.

During the period under review, 2 (Two) complaints were received against same person and that was duly disposed-off.

The Whistle Blower Policy is also available at https:// satincreditcare.com/wp-content/uploads/2019/05/Whistle-blower-Policy.pdf.

Policy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) & Senior Management and Other Employees:

In pursuance of the Companyâs policy to consider human resources as its valuable assets, to pay equitable remuneration to all Directors, Key Managerial Personnel (KMP), Senior Management and other employees of the Company, to have diversified Board, to harmonize the aspirations of human

resources consistent with the goals of the Company and in terms of Section 178 of the Companies Act, 2013 and Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time and Rules/Regulations/Guidelines/Notifications issued by RBI and SEBI from time to time. The policy on Nomination and Remuneration was modified and approved by the Board of Directors in their Meeting held on October 29, 2021. The Nomination and Remuneration Policy is also available at https://satincreditcare.com/wp-content/uploads/2022/03/ SCNL-NRC-Policy-Version-2.3-29.10.2021.pdf

Further, the Company familiarizes its Independent Directors about their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, legal updates and other relevant information relating to the Company. In this regard, the Company follows a structured familiarization program for the Independent Directors. The details of such familiarization programs is disclosed on the Companyâs website and the web-link of the same is https://satincreditcare.com/ wp-content/uploads/2021 /06/Details-of-Familiarization-Programme.pdf.

Risk Management:

The Board of Directors of the Company has formed a Risk Management Committee to frame, implement and monitor the risk management plan for the Company. The Committee is responsible for monitoring and reviewing the risk management plan and ensuring its effectiveness. The Audit Committee has additional oversight in the area of financial risks and controls. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The development and implementation of risk management policy has been covered in the Management Discussion and Analysis, which forms part of this report.

Sexual harassment policy for women under The Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013:

Your Company has in place a formal policy for prevention of sexual harassment of its employees at workplace. The Company is in compliance with the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 and has adopted a revised policy on Sexual Harassment (forms part of HR Manual of the Company) on August 14, 2017 (while HR Manual has been last reviewed/ revised by the Board of Directors in their meeting held on March 30, 2022) to prohibit, prevent or deter any acts of sexual harassment at workplace and to provide the procedure for the redressal of complaints pertaining to sexual harassment,

thereby providing a safe and healthy work environment.

Further, during the calendar year 2021-22, following is the summary of complaints received and disposed off:

No. of complaints received : 4

No. of complaints disposed-off : 4

The Company has complied with provisions relating to the constitution of Internal Complaints Committee (ICC) under the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013. The Internal Complaints Committee (ICC) has been set up to redress complaints received, if any, regarding sexual harassment.

PARTICULARS OF EMPLOYEES

Disclosure pertaining to remuneration and other details as required under Section 197(12) read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed as Annexure-III.

In terms of Section 136 of the Companies Act, 2013, the Report and Accounts are being sent to the Members of the Company excluding information on employeesâ particulars which is available for inspection by the Members at the Registered Office of the Company during the business hours on working days of the Company up to the date of the ensuing Annual General Meeting. If any Member is interested in obtaining such information, he/she may write to the Company Secretary at the Corporate Office of the Company.

LISTING WITH STOCK EXCHANGES

The equity shares (ISIN INE836B01017) of the Company are listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE). The listing fees payable to both the exchanges for the 2022-23 have been paid. The NCDs issued on Private Placement basis are listed on WDM segment of BSE.

ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3)(a) of the Companies Act 2013, the Annual Return as on March 31, 2022 is available on the Companyâs website on https:// satincreditcare.com.

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

The information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo as required under clause (m) of sub-section (3) of Section 134 of the Companies Act, 2013 read with sub-rule (3) of Rule 8 of

the Companies (Accounts) Rules, 2014 is annexed herewith as Annexure-IV and forms part of this Directorsâ Report.

DISCLOSURES UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

Your Company has neither filed any application nor any proceeding pending under the Insolvency and Bankruptcy Code, 2016 during the reporting year, hence no disclosure is required under this section.

Further, there are no details required to be reported with regard to difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions as your Company has not done any settlement with any Bank or Financial Institutions since its inception.

ACKNOWLEDGEMENTS

Your Directors would like to place on record their gratitude for the cooperation received from lenders, our valued customers, regulatory bodies, shareholders and other stakeholders. The Board, in specific, wishes to place on record its sincere appreciation of the contribution made by all the employees towards growth of the Company.

For and on behalf of the Board of DirectorsHarvinder Pal Singh Place: Gurugram Chairman cum Managing Director

Date: July 11, 2022 DIN: 00333754

Mar 31, 2019

DEAR MEMBERS,

The Directors are pleased to present the Twenty Ninth Annual Report along with the Audited Financial Statement of your Company for Fiscal 2019.

FINANCIAL SUMMARY/HIGHLIGHTS, STATE OF AFFAIRS

(Rs. in Lakhs)

Particulars	Standalone		Consolidated
Particulars	Mar-19	Mar-18	Mar-19	Mar-18
Revenue	1,37,304.32	97,674.58	1,44,803.66	1,03,124.23
Total Expenses	1,05,610.73	83,606.74	1,11,971.60	90,063.84
Profit before Depreciation and tax	31,693.59	14,067.84	32,832.06	13,060.39
Depreciation and amortization expenses	1,131.89	1,406.00	1,251.12	1,474.27
Profit before Tax	30,561.70	12,661.84	31,580.94	11,586.12
Tax Expense	1 1,067.42	4,447.09	11,431.30	4,105.69
Profit After Tax	19,494.28	8,214.75	20,149.64	7,480.43
Other comprehensive income	2,509.87	0.96	2,516.19	10.67
Total comprehensive income for the year	22,004.15	8,215.71	22,665.83	7,491.10

OPERATIONS, FUND RAISE, PROSPECTS AND FUTURE PLANS

Operational Highlights in brief (Standalone basis)

- The aggregate gross loan portfolio (GLP) of the Company stood at Rs. 6,37,366.71 Lakhs as on March 31, 2019. This represents a year on year (YoY) growth of 25.35% as compared to March 31, 2018.

- Loan amount of Rs. 6,25,192.24 Lakhs was disbursed in FY 18-19, representing an increase of 12.21 % as compared to FY 17-18.

- The Company disbursed 23.39 Lakh loans during FY 1819, an increase of 28.80 % over FY 17-18.

- Average loan amount disbursed per account during FY 18-19 was ''0.27 Lakhs, an decrease of 12.88% from FY 17-18.

- The Company has operations spread across 22 states/ union territories

During the Financial Year under review, Company saw 137.31% increase in its profitability with a net profit of Rs. 19,494.28 Lakhs for the year ended March 31, 2019 as compared to Rs. 8,214.75 Lakhs for the year ended March 31, 2018. Profit before tax increased by 141.37% to Rs. 30,561.70 Lakhs. Total Income has increased from 97,674.58 Lakhs for the year ended March 31, 2018 to 1,37,304.32 Lakhs for the year ended March 31, 2019 which is mainly due to increase in 25.35% of AUM in the Company. Interest income of the Company increased to Rs. 1,1 7,950.47 Lakhs from previous year''s interest income of 95,731.20 Lakhs. Loan Assets Portfolio of the Company increased by Rs. 1,28,887.01 Lakhs during the year reaching 6,37,366.71 Lakhs as on March 31, 2019 as against Rs.5,08,479.70 Lakhs as on March 31, 2018. The Return on Average Loan Assets increased to 3.40% in FY 2018-19 as compared to 1.89% in FY 2017-18. The cost of funds declined to 12.53% in 2018-19 compared to 12.56% in fiscal 2017- 18. On account of the above, the Net Interest Margin improved to 9.45% as against 8.34% in FY 2017-18. Company''s Strong liquidity position provides significant headroom for growth. Company has Long term Credit Rating CARE A- (Upgraded from CARE BBB ); Short term rating CRISIL A1 (Assigned) & and CARE A1 (upgraded from CARE A2); Grading MFI 1 (MFI One).

Operation''s highlights are hereunder

Particulars	March 2019	March 2018
Number of branches	977	809
Amount disbursed (Rs. in Lakhs)	6,25,192.24	5,57,1 65.75
Number of active Clients	31,49,607	24,01,701
Total Assets under management (Rs. in Lakhs)	6,37,366.71	5,08,479.70

Fund raise during FY 2018-19

During the year under review, your Company has continued to diversify the sources of funds and raised a sum of Rs. 5,40,873.98 Lakhs by way of short-term loans, long-term loans, issue of Non-Convertible Debentures, Securitization & Assignments and Commercial Paper, which has helped the Company to achieve higher Assets under management. Out of overall borrowings, Company has raised funds through issuance of Non-Convertible Debentures amounting to Rs. 40,370.00 Lakhs. Subordinated liabilities represents long term source of funds for the Company and the amount outstanding as on March 31, 2019 was Rs. 53,919.68 Lakhs. Further, during the period under review, your company has successfully raised funds through Direct Assignment is Rs. 1,61,458.78 Lakhs.

Please refer the Management Discussion and Analysis Report for more information.

Company''s Prospects, Future Plans and business Overview:

The business of your Company scaled up through increase in number of branches and with new initiatives taken by the Company. Your Company became the first Micro finance Institutions (MFI) to foray into digital lending with no human intervention, thus tapping the millennials with the launch of "Loan Dost" in November 2018, a fintech venture that aims to provide short to medium term personal loans to salaried individuals. This is an app-based platform, which provides instant loans from Rs. 1 0,000 to Rs. 1,50,000 expand user base. The app is backed by strong evaluation processes including psychometric test and fetching bank and tax details with borrower consent. Managed portfolio under the tie-up with IndusInd Bank stood at Rs. 63,261 Lakhs as on March 31, 2019. Your Company intends to step up efforts to diversify revenue sources by increasing the share of cross-sell income. Your Company will continue to expand its geographical footprint in newer regions and will also deepen its reach in the existing states. The Company has enabled 100% branches for cashless disbursement through digital lending initiatives in FY 2018-19, which is a big step towards ensuring client protection. Technology will continue to be at the helm of operations and will be leveraged to enhance business effectiveness and impact.

Please refer the Management Discussion and Analysis Report for more information on your Company''s Business Overview.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company has duly complied with the provision of Section 186 of the Companies Act, 2013 and Rules made thereunder. Details on loans or investment are mentioned in financial statements of this Annual Report. The Company has not given any guarantees to any body corporate on behalf of a third party.

DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS

The policies and procedures adopted by your Company take into account the design, implementation and maintenance of adequate internal financial controls, keeping in view the size and nature of the business. The internal financial controls ensure the orderly and efficient conduct of its business. The controls encompass safeguarding of your Company''s assets, strict adherence to policies, and prevention and detection of frauds and errors against any unauthorized use or disposition of assets and misappropriation of funds. These controls help to keep a check on the accuracy and completeness of the accounting records and timely preparation of reliable financial disclosures. The Audit Committee ensures that all procedures are properly authorized, documented, described and monitored. Job rotation is mandatory across departments to ensure high level of correctness and accuracy. Your Company has in place technologically advanced infrastructure with computerization in all its operations, including accounts and MIS.

Your Company has in place strong internal audit processes and systems which design an annual audit plan to ensure optimum portfolio quality and keep risks at bay. There is a full-fledged in-house Internal Audit department. The Regional Office Audit and Social Audit takes place on a quarterly basis, while Compliance Audit is done on the basis of feedback from other audits.

The Audit Committee of the Board of Directors, comprising of independent directors, periodically reviews the internal audit reports, covering findings, adequacy of internal controls, and ensure compliances. The Audit Committee also meets the Company''s Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system, compliance to accounting policies and procedures, adequacy and effectiveness of the internal controls and systems followed by the Company. Information System Security controls enable the Company to keep a check on technology-related risks and also improve business efficiency and distribution capabilities. Your Company is committed to invest in IT systems, including back-up systems, to improve the operational efficiency, customer service and decision-making process.

High standards of your Company''s internal control systems is adequately reflected in it receiving ISO 27001:2013 Certification post qualifying two stages of audit by third party certification body - Documentation audit and Control Testing audit. This indicates your Company has an integrated and robust Information Security Management System (ISMS) in its business processes & exemplifies that information security and client confidentiality are part of the cornerstones of your Company''s strategic objectives. This approach also ensures that employees supported by IT systems and processes throughout the organization maintain a high standard of security.

Your Company has also introduced "Centralized Shared Services Center" within its subsidiary businesses to create a unified support model across the group. This has also enabled to provide more structured, effective & efficient services across Business reporting, end user application support and in Management of Infrastructure support, security & new requirements centrally. This has enabled a professional support model within the organization and has helped restructuring the teams at different level and brought in significant cost optimization.

MATERIAL EVENT RECORDED subsequent TO THE DATE OF FINANCIAL STATEMENTS

SUBSIDIARY AND ASSOCIATES COMPANIES

During the year under review 2018-19, Company has acquired 1 1,05,493 equity shares of Taraashna Services Limited (TSL) from its existing shareholder MV Mauritius Limited. By virtue of this TSL has become Wholly owned subsidiary of your Company w.e.f . July 27, 2018. Your Company has infused more equity fund of Rs. 2,000 Lakhs in order to expand the business operations of TSL.

In order to comply with the RBI guidelines to maintain qualifying asset and to have more focus on MSME lending, your Company has incorporated Satin Finserv limited (SFL) on August 10, 2018 with an Authorized Share Capital of Rs. 300 Lakhs and Paid-up share capital of Rs. 250 Lakhs. SFL is incorporated with the objective of providing Business loans to SME & MSME borrowers. SFL got the Certificate of Registration (COR) from Reserve Bank of India (RBI) on January 09, 2019 to commence business operations as Non- Banking Finance Company. Your Company has further infused Rs. 2,000 Lakhs to enable it to expand its business and operations.

Business Highlights of Taraashna Services Limited

Taraashna Services Limited (TSL) wholly owned subsidiary''s net worth stood at Rs. 5,1 79.45 Lakhs as at March 31, 2019. TSL is engaged in Business Correspondent activity and has achieved a gross turnover of Rs. 6,828.44 Lakhs during the year mainly from this activity (against gross turnover of Rs. 5,385.79 Lakhs during previous year). TSL has a net profit after tax of Rs. 841.88 Lakhs (previous year net loss after tax ''684.06 Lakhs. TSL is looking for various business opportunities and is hopeful of getting some Business Correspondent arrangements with new Principal partners to have a sustainable growth going forward and achieving desired results.

The present AUM of TSL is spread across 8 states which includes Madhya Pradesh, Gujrat, Rajasthan, Punjab, Maharashtra, Bihar, Uttar Pradesh and Chhattisgarh.

Business Highlights of Satin Housing Finance Limited

Satin Housing Finance Limited, (SHFL) wholly owned subsidiary''s net worth stood at Rs. 4,826.52 Lakhs, as at March 31, 2019. As on that date Capital to Risk Assets Ratio (CRAR) was 111.10% which is well above the regulatory requirement of 12%. SHFL''s total income during the year ended March 31, 2019 is Rs. 707.08 Lakhs as compared to previous period ended March 31, 2018 of Rs. 63.85 Lakhs and net loss after tax during the year ended March 31, 2019 is Rs. 123.36 Lakhs as compared to previous period ended March 31, 2018 of Rs. 50.25 Lakhs.

Business Highlights of Satin Finserv Limited

Satin Finserv Limited, (SFL) wholly owned subsidiary''s net worth stood at Rs. 2,186.83 Lakhs as at March 31, 2019. As on that date Capital to Risk Assets ratio in terms of regulatory requirement is 187.37%, which is well above the regulatory requirement of 15.00%. SFL recently got the certificate of registration from and completed other formalities and statutory registrations to be fully operational. SFLs Total Income during the period ended March 31, 2019 is Rs. 10.38 Lakhs and net loss after tax of Rs. 63.17 Lakhs.

Within a span of two months, SFL has shown decent growth in terms of Sanctions & disbursements of loans. During the period under review, SFL has sanctioned loans of Rs. 1,150.00 Lakhs and has disbursed all the loans. First loan was disbursed on March 28, 2019.

Consolidated Financial Statements

In accordance with Section 129(3) of the Companies Act, 2013 and Regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 the Consolidated Financial Statements of the Company including the financial details of all the subsidiary companies, forms part of this Annual Report. The Consolidated Financial Statements have been prepared in accordance with the Indian Accounting Standards issued by the Institute of Chartered Accountants of India.

Further, a statement containing salient features of the financial statements of the Company''s subsidiaries in Form AOC-1 also form part of the Annual Report. Further, Company has neither any Associates nor any Joint Ventures as on March 31, 2019.

DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

As per the provisions of the Companies Act, 2013, Mr Satvinder Singh (DIN: 00332521) retires by rotation at the ensuing 29^th AGM and being eligible, seeks his appointment. The Board and Nomination & remuneration Committee of the Board recommends his appointment.

Mr Sanjaya Gupta (DIN:02939128), Nominee director of "Asian Development Bank" and Mr Suramya Gupta (DIN- 06816354) Nominee Director of SBI FMO Emerging Asia Financial Sector Fund Pte. Ltd., have resigned from the position of director of the Company with effect from October 15, 2018 and January 07, 2019 respectively. Further Mr Davis Frederick Golding (DIN: 00440024) Independent director of the Company has resigned from the Company w.e.f. April 12, 2019.

The Board wish to place on record its appreciation for the valuable contribution of Mr Sanjaya Gupta, Mr Suramya Gupta and Mr Davis Frederick Golding in the sustained growth of the Company during their tenure as Directors of the Company.

Based on the recommendation of the Board of directors and Nomination and Remuneration Committee of the Company, a proposal for re-appointment of Mr Sundeep Kumar Mehta (DIN-00840544), Mr Rakesh Sachdeva (DIN- 0033371 5) Mr Sanjay Kumar Bhatia (DIN- 07033027), Mrs. Sangeeta Khorana (DIN: 06674198) and Mr Goh Colin (DIN: 069631 78) for second term of 5 (five) years in the capacity of Independent Director of the Company is being included in the Notice of the ensuing AGM to seek your approval.

There were no change in the Key Managerial Personnel during the year under review.

During the year, 7 (Seven) Board Meetings were held. These Board Meetings were held on May 30, 2018, July 11, 2018, August 13, 2018, November 14, 2018, February 04, 2019. February 27, 2019 and March 18, 2019. Details on Board and its Committees are erstwhile mentioned in Corporate Governance section of this Annual Report.

PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS

The Companies Act, 2013 and SEBI (Listing Obligation and Disclosures Requirement) Regulations, 2015 stipulates the performance evaluation of the Directors including Chairperson, Board and its Committees. Further, SEBI vide its circular dated January 5, 2017 issued a guidance note on Board Evaluation for listed companies. In view of the same and in terms of Board approved Nomination and Remuneration policy, the annual evaluation of Directors of their own performance, Board Committees and individual directors (including Independent Directors) based on criteria for the Directors and the Board are done through separate structured questionnaires. The performance of Board and its Committees, individual Directors, and Chairpersons were found satisfactory.

STATEMENT ON DECLARATION "CERTIFICATE OF INDEPENDENCE" U/S 149 (6) FROM INDEPENDENT DIRECTORS

The Board has independent directors and there is appropriate balance of skills, experience and knowledge in the Board to enable the Board to discharge its functions and duties effectively. The Independent Directors have submitted disclosure that they meet the criteria of independence as provided under Section 149(6) of Companies Act, 2013 and SEBI Regulations.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to section 134 (5) of the Companies Act, 2013, the Directors hereby confirm

1. That in the preparation of the annual accounts for the financial year ended March 31, 2019, the applicable accounting standards had been followed along with proper explanation relating to material departures;

2. That they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

3. That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. That they have prepared the annual accounts for financial year ended March 31, 2019 on a going concern basis;

5. That the directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively during the financial year ended March 31, 2019; and

6. That 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 during the financial year ended March 31, 2019.

INFORMATION ON MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL

There is no material order passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.

RELATED PARTY TRANSACTIONS

During the financial year 2018-19, there is no materially significant related party transaction with the Company''s promoters, directors, the management or their relatives, which may have potential conflict with the interest of the Company at large. The Company has also formulated a policy on dealing with the Related Party Transactions (including for material related party transactions) and necessary approval of the Audit Committee and Board of Directors were taken, wherever required in accordance with the Policy. The details of such policies for dealing with all related party transactions are disseminated on the website of the Company www.satincreditcare.com.

In compliance with section 188(1) of the Companies Act, 2013, AOC-2 enclosed as Annexure-I. Further, details of Related Party Transactions as required to be disclosed as per Indian Accounting Standard 24 "Related Party Disclosures" specified under section 133 of the Companies Act, 2013 are given in the Notes to the Financial Statements.

Justification for entering into related party transactions

All Related Party Transactions were placed before the Audit Committee for review and approval. Related Party Transactions were entered at Arm''s Length basis. All Related Party Transactions are subjected to independent review w.r.t compliance with the requirements of Related Party Transactions under the Companies Act, 2013, and Listing Regulations.

Furtherance to this, the remuneration paid to Mr H P Singh, Chairman cum Managing Director and the sitting fee payment to non-executive directors (other than Investor''s nominee) for each Board/Committee meeting(s) attended and professional fees was paid to Mr Davis Frederick Golding, Independent director in addition to sitting fee, shown under Related party disclosures segment under "Notes to the account" of Balance Sheet in terms of Indian Accounting Standard 24 issued by The Institute of Chartered Accountants of India.

AUDITORS & THEIR REPORTS

Statutory Auditors & their Report

M/s Walker Chandiok & Co LLP, Chartered Accountants, bearing Registration No. 001076N/N500013 have been appointed on the recommendation of Audit Committee and Board of Director''s (in conformity with the provisions of sections 139 and 141 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 (includes amendments thereto), as the Statutory Auditors of the Company for a period of 5 years from the conclusion of the twenty seventh AGM (for FY 2017-18) till the conclusion of the thirty second AGM (for FY 2021-22) subject to the provisions of Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 as amended from time to time. Your Company has also received their written consent and a certificate that they satisfy the criteria provided under section 141 of the Companies Act 2013 (includes amendments thereto), and the said appointment is in accordance with the applicable provisions of the Act and rules framed thereunder.

During the year under review, the Auditors had not reported any matter under section 143 (12) of the Act, therefore no details are required to be disclosed under section 134 (3)(ca) of the Act. The Auditors'' Report is unmodified and does not contain any qualification, reservation, adverse remark or disclaimer.

The Board has placed on record its sincere appreciation for the services rendered by M/s Walker Chandiok & Co LLP, as Statutory Auditors of the Company.

Secretarial Auditors & their Report

In terms of section 204 of the Companies Act, 2013 and Rules framed thereunder and on the recommendation of the Audit Committee, the Board of Directors of the Company had appointed M/s S. Behera & Co. Company Secretaries (ICSI PCS Registration No. 5980) as the Secretarial Auditor of the Company for the financial year 2018-19. Secretarial audit report as provided by M/s S. Behera & Co. Company Secretaries is also annexed to this Report, in the prescribed Form MR-3, as Annexure-II. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.

The report confirms that the Company has complied with the provisions of the act, rules, regulations and guidelines and there were no deviations/non-compliance.

Any member interested in hard copy of the Secretarial Audit Report may inspect the same at the Corporate Office of the Company or write to the Company Secretary for a copy. The Board has placed on record its sincere appreciation for the services rendered by M/s S. Behera & Co., Company Secretaries, as Secretarial Auditors of the Company.

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.

However, few instances of misappropriation including embezzlement of cash by the employees amounting to Rs. 290.44 Lakhs were reported. The Company has terminated the services of such employees and also initiated legal action against such employees. The Company has recovered Rs. 32.45 Lakhs from some employees.

AUDIT COMMITTEE

The Company has an Audit Committee in accordance with the provisions of section 177 of the Companies Act, 2013 and in accordance with Regulation 18 of SEBI (LODR) Regulations, 2015 and as per other applicable laws. All members of the Committee are financially literate. The Chairman of the Committee was present at the last Annual General Meeting to answer the queries of the Members. The scope of the activities of the Audit Committee is as set out in Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and read with section 177 of the Companies Act, 2013 and other applicable laws are approved by Board of Directors of the Company. The composition of the Audit committee and the details of meetings attended by the Directors are provided in Corporate Governance Report section of this Annual Report.

COMPLIANCE WITH SECRETARIAL STANDARD

The Company confirms compliance with the applicable requirements of secretarial standards 1 and 2.

DIVIDEND

Directors of your Company have recommended a final dividend (excluding dividend distribution tax) on Preference shares as stated below:

S. No. Preference Shares	Period of dividend	Recommended amount of Dividend per share
1. 12.10% Rated, Cumulative, Non-Convertible and Compulsorily Redeemable Preference Shares	April 01, 2018 to March 31, 2019	Rs. 1.2100
2. 0.01 % Optionally Convertible Cumulative Redeemable Preference Shares	April 01, 2018 to March 31, 2019	Rs. 0.0010

*Amount of dividend is excluding of dividend distribution tax

In order to undertake and carry on future plans, it is necessary to conserve the resources. Your directors are of the opinion of retaining the profits for the year within the Company, and thus have not recommended any dividend on equity shares for the year ended March 31, 2019.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your Company has a vision to drive âholistic empowerment'' of the community and carries CSR initiatives through a trust, qualified to undertake CSR activities in accordance with Schedule VII of the Companies Act, 2013 (includes amendments thereto). Sustainability and social responsibility are an integral element of corporate strategy of the Company. In compliance with section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014, the Company has established the Corporate Social Responsibility Committee (CSR Committee) and the composition, function and details of meetings attended by the Committee Members are provided in the Corporate Governance Report.

The Board adopted the CSR Policy, formulated and recommended by the CSR Committee, and the same is available on the Company''s website i.e. www.satincreditcare.com.

During the year under review, your Company has spent approx. Rs. 85.75 Lakhs on CSR projects/programs. Your Company is in compliance with the statutory requirements in this regard. As per the requirement of Rule 8(1) of The Companies (Corporate Social Responsibilities) Rules, 2014 the Annual Report on CSR is annexed as Annexure III to this report and the same is posted on the website of the Company i.e. www.satincreditcare. com. The Company has carried out the CSR initiatives through Maharaja Agrasen Charitable Hospital Trust (MAHCT), an eligible trust qualified to undertake CSR activities in accordance with Schedule VII of the Companies Act, 2013, MAHCT is in process of establishment of Maharaja Agrasen Medical College, Maharaja Agrasen Nursing Institute, Maharaja Agrasen Paramedical Institute and Maharaja Agrasen Management Institute. The medical college will have a separate section for economically weaker section category patients from across country, wherein patients will be treated free of cost including provision of free medicines and diet. This section will run through CSR funds.

E-VOTING

To widen the participation of shareholders in Company''s decisions pursuant to provisions of Section 108 of Companies Act, 2013 read with Rule 20 of The Companies (Management and Administration) Rules, 2014 as amended and in terms of Regulation 44 of SEBI (Listing Obligations and Disclosures Requirements) Regulation 2015, the Company has provided e-voting facility to its members, in respect of all member''s resolutions to be passed at General Meeting(s) of the Company. The Company is providing this facility to enable them to cast their votes electronically on all resolutions set forth in the Notice. The instruction(s) for e-voting for ensuing Annual General Meeting is provided with Notice to members of this Annual Report. The Company has signed necessary agreements with National Securities Depository Limited and Central Depository Services Limited to facilitate e-voting for members approval in their general meetings or through postal ballots.

To contribute towards greener environment, the Company again proposes to send documents like members meeting notice/other notices, audited financial statements, boards'' report, auditors'' report or any other document, to members in electronic form at the e-mail address provided by them and/or available to the Company by the Depositories. Members who have not yet registered their e-mail address (including those who wish to change their already registered e-mail address) may get the same registered/updated either with their depository participants or by writing to the Company/ RTA.

EMPLOYEES STOCK OPTION PLAN

The shareholders of the Company at their Annual General Meeting held on July 6, 2017 the Nomination and Remuneration Committee of the Company approved a new scheme âSatin Employee Stock Option Scheme 2017'' (ESOS 2017) in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014. ESOS is applicable to all permanent and full-time employees (as defined in the Plan), excluding promoters of the Company.

The eligibility of employees to receive grants under the Plan has to be decided by the Nomination and Remuneration Committee from time to time at its sole discretion.

Vesting of the options shall take place in the manner determined by the Nomination and Remuneration Committee at the time of grant provided the vesting period. Vesting of options shall be subject to the condition that the Grantee shall be in continuous employment with the Company and such other conditions as provided under ESOS 2017. The Exercise Price of each grant is determined by the Nomination and Remuneration Committee at the time of grant.

Presently, stock options have been granted or shares have been issued under the following scheme:

A. Satin Employee Stock Option Scheme 2009 (ESOS 2009)

B. Satin Employee Stock Option Scheme 2017 (ESOS 2017)

Details of Options Granted, Vested and Exercise of Options

I. ESOS 2009

Date of Grant of Options	No of Options Granted	Vesting Date	Vesting out of 1,50,000 Options	No of Options Exercised	Vesting out of 98,300 Options (11,000 Lapsed)	No of Options Exercised	Vesting out of 87,900 Options (9,300 Lapsed)	No of Options Exercised
January 12, 2010	1,50,000	January 12, 2011	50,000	50,000	-	-	-	-
-	-	January 12, 2012	50,000	50,000	-	-	-	-
-	-	January 12, 2013	50,000	50,000	-	-	-	-
December 2, 2013	98,300	December 2, 2014	-	-	29,090	2,5824	-	-
-	-	December 2, 2015	-	-	29,100	22,633	-	-
-	-	December 2, 2016	-	-	29,110	27,243	-	-
December 2, 2016	87,900	December 2, 2017	-	-	-		22,300	21,100
-	-	December 2, 2018	-	-	-	-	19,300	19,300

II. ESOS 2017

Date of Grant of Options	No of Options Granted	Vesting Date	Vesting out of 145200 Options (67800 Lapsed)	No of Options Exercised
August 14, 2017	1,45,200	August 14, 2018*	21400	12200
May 30, 2018	2,26,600	NA	NA	NA

* These options are available for exercise till August 13, 2019

A. Disclosures as per Indian Accounting Standard 102 Share Based Payment issued by ICAI.

1. The Company had ''nil'' share-based payment arrangements during the year ended March 31, 2019.

2. The estimated fair value of each stock option granted in the general employee stock option plan is Rs. 420.75, Rs. 166.98 and Rs. 414.54. This was calculated by applying Black Scholes pricing model. The model inputs were as follows

	ESOS 2009		ESOS 2017		ESOS2017
Inputs	Grant 3		Grant 1		Grant 2
Inputs	3^rd Tranche	1^st Tranche	2^nd Tranche	3^rd Tranche	1^st Tranche	2^nd Tranche
	of Vesting	of Vesting	of Vesting	of Vesting	of Vesting	of Vesting
Date of Grant	December 2,	August 14,	August 14,	August 14,	May 30,	May 30,
	2016	2017	2017	2017	2018	2018
Share Price at grant Date (In Rs.)	438.40	267.38	267.38	267.38	386.65	386.65
Exercise price (In Rs.)	20.00	160.00	160.00	160.00	160.00	160.00
Expected Volatility (%)	60.39	55.86	62.90	62.90	45.31	53.94
Expected Dividends Yield	-	-	-	-	-	-
Contractual Life (in years)	3.08	1.50	2.50	3.50	1.50	2.50
Risk Free Interest Rate (%)	6.03	6.35	6.40	6.45	7.53	7.66

3. Other information regarding employee share-based payment plans is as below:

(Rs. in Lakhs)

Particular	Year ended March 31, 2019	Year ended March 31, 2018
Expense arising from employee share-based payment plans	317.86	Rs. 189.08

B. Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations shall be disclosed in accordance with ''Indian Accounting Standard 33 - Earnings per Share issued by ICAI or any other relevant accounting standards as prescribed from time to time. Diluted EPS is Rs. 40.09.

Effects of Share Options on Diluted Earnings per Share (Accounting year April 01, 2018 to March 31, 2019)

(Rs. in Lakhs)

Particulars:

Net profit for the year ended 2019

Weighted average number of equity shares outstanding during the year ended 2019

Average fair value of one equity share during the year ended 2019

Weighted average number of shares under option during the year ended 2019

Weighted average number of shares under Conversion during the year ended 2019

Exercise price for shares under option during the year ended 2019

Rs. 19,494.28

48,287,570 Shares

420.75, 166.98 & 414.54

297,369 Shares

198,838 Shares

20.00 & 160.00

Computation of earnings per share

Particulars:	Earnings	Shares	Earnings Per Share
Net profit for the year ended 2019	19,494.28	-	-
Weighted average number of shares outstanding during year ended 2019	-	48,287,570	-
Basic earnings per share (Rs.)	-	-	40.37
Dilutive impact of optionally convertible preference shares	64.47		-
Number of shares under option	-	297,369	-
Number of shares under conversion	-	198,838	-
Diluted earnings per share (Rs.)	19,558.75	48,783,777	40.09

C. Details related to ESOS

(i) A description of each ESOS that existed at any time during the year, including the general terms and conditions of each ESOS

S. No.	Particular	Satin ESOP 2009	Satin ESOP I 2010	Satin ESOP II 2010	Satin ESOS Scheme 2017
1.	Date of shareholders'' approval	June 01, 2009	March 26, 2010	December 15, 2010	July 6, 2018
2.	Total number of options approved under ESOS	4,25,000	1,00,000	1,50,000	3,61,400 and such other unvested options under existing ESOP Schemes
3.	Vesting requirements/ Conditions	The actual vesting of options will depend on continuation to hold the services being provided to the Company at the time of exercise of options and such other conditions as mentioned in the ESOP Scheme.	The actual vesting of options will depend on continuation to hold the services being provided to the Company at the time of exercise of options and such other conditions as mentioned in the ESOP Scheme.	The actual vesting of options will depend on continuation to hold the services being provided to the Company at the time of exercise of options and such other conditions as mentioned in the ESOP Scheme.	The actual vesting of options will depend on continuation to hold the services being provided to the Company at the time of exercise of options and such other conditions as mentioned in the ESOS Scheme, 2017.
4.	Exercise price or pricing formula	Rs. 20/- being the Fair Value of the shares of the Company (Computed on the basis of Audited result FY 2008-09).	Rs. 22/- being the Fair Value of the shares of the Company. (Computed on the basis of Audited result FY 2009-10)	Rs. 25/- being the Fair Value of the shares of the Company. (Computed on the basis of Audited result FY 2009-10)	Nomination and Remuneration Committee is free to determine the exercise price based on Market Price
5.	Maximum term of options granted	3 Years	3 Years	3 Years	3 years and 2 years or as the Committee may deem fit.
6.	Source of shares (primary, secondary or combination)	Primary	Primary	Primary	Primary
7.	Variation in terms of options	Not Applicable	Not Applicable	Not Applicable	Variations in Terms of Grants can be done by the Nomination and Remuneration Committee

(ii) Method used to account for ESOS - Fair Value (Black Scholes Model).

(iii) Option movement during the year (For each ESOS):

Particulars	Satin ESOP	Satin ESOS Scheme
	2009	2017¹
Number of options outstanding at the beginning of the period	-	3,06,200
Number of options granted during the year	NA	2,26,600
Number of options forfeited / lapsed during the year	6,000	40,100
Number of options vested during the year	19,300	21,400
Number of options exercised during the year	19,300	12,200
Exercise Price ('' options)	20.00	160.00
Number of shares arising as a result of exercise of options	19,300	12,200
Money realized by exercise of options (Rs. in Lakhs), if scheme is implemented	6.20	19.42
directly by the company
Loan repaid (Rs. in Lakhs) by the Trust during the year from exercise price received	6.20	19.42
Number of options Shifted to the New ESOS Scheme, 2017	6,000	_-
Number of options outstanding at the end of the year	_-	1,25,700
Number of options exercisable at the end of the year	19,300	2,51,700

(iv) Weighted-average exercise prices:

- when the exercise price is equal/exceeds to market price.

- when the exercise price is less than market price

ESOS 2009- Rs. 213.96

ESOS 2017- Rs. 283.78

Weighted-average fair values

- when the exercise price is equal/exceeds to market price.

- when the exercise price is less than market price

-ESOS 2009- Rs. 420.75,

ESOS 2017- Rs. 166.98 and Rs. 254.54

(v) Employee wise details (name of employee, designation, number of options granted during the year, exercise price)

(a) Senior managerial personnel (of Company & its subsidiaries):

Details of Options Granted to Senior Managerial Personnel during financial year 2018-19

S. No.	Name of Employee	Designation	No of Options Granted	Exercise Price (In Rs.)	Company
1	Mr Jugal Kataria	Chief Financial Officer	24,000 160.00		Satin Creditcare Network Limited
2	Mr Dev Verma	Chief Operating Officer	24,000 160.00		Satin Creditcare Network Limited
3	Mr Subir Roy Chowdhury	Chief Human Resource Officer	24,000 160.00		Satin Creditcare Network Limited
4	Mr Sanjay Mahajan	Chief Information Officer	24,000 160.00		Satin Creditcare Network Limited
5	Mr Amit Kumar Gupta	Head-Accounts	2,500 160.00		Satin Creditcare Network Limited
6	Choudhary Runveer Krishanan	Company Secretary & Compliance Officer	2,500 160.00		Satin Creditcare Network Limited
7	Mr Ashish Gupta	Head-Finance	4,000 160.00		Satin Creditcare Network Limited
8	Mr Indrajit Kumar	Dy. Chief Operating Officer	3,000 160.00		Satin Creditcare Network Limited
9	Mr Ajay Kumar	Head-Business HR	1,000 160.00		Satin Creditcare Network Limited
10	Mr Manoj Kumar	Dy. Chief Operating Officer	3,000 160.00		Satin Creditcare Network Limited
11	Mr Mukund Madhav	Dy. Chief Operating Officer	4,000 160.00		Satin Creditcare Network Limited
12	Mr Sushil Kumar Menon	Vice President-IT	6,000 160.00		Satin Creditcare Network Limited
13	Mr Lovneet Goyal	Vice President-IT	6,000 160.00		Satin Creditcare Network Limited
14	Mr Pranav Prakash	Vice President-Operations	4,500 160.00		Satin Creditcare Network Limited
15	Mr Amit Sharma	Chief Executive Officer & Whole Time Director	24,000 160.00		Satin Housing Finance Limited
16	Mr Sachin Sharma	Chief Financial Officer	2,000 160.00		Satin Housing Finance Limited
17	Mr Sanjeev Vij	Chief Executive Officer & Whole Time Director	24,000 160.00		Taraashna Service Limited
18	Mr Abhay Thakkar	Chief Financial Officer	1,500 160.00		Taraashna Service Limited
19	Mr Jitendra Kumar Pandey	Chief Operating Officer	4,000 160.00		Taraashna Service Limited
20	Mr Milind Govindrao Deshmukh	Chief Operating Officer	4,500 160.00		Taraashna Service Limited
21	Mr Punit Sharma	Vice President-HR	3,000 160.00		Taraashna Service Limited

(b) Following employees have received a grant in the reporting year of option amounting to 5% or more of option granted during that year;

S. No.	Name of Employee	Designation	No of Options granted
1.	Mr Dev Verma	Chief Operating Officer	24,000
2.	Mr Jugal Kataria	Chief Financial Officer	24,000
3.	Mr Sanjay Mahajan	Chief Information Officer	24,000
4.	Mr Subir Roy Chowdhury	Chief Human Resource Officer	24,000
5.	Mr Amit Sharma	Chief Executive Officer- Satin Housing Finance Limited	24,000
6.	Mr Sanjeev Vij	Chief Executive Officer- Taraashna Services Limited	24,000

(c) There is no Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant.

(vi) A description of the method and significant assumptions used during the year to estimate the fair value of options including the following information: Requisite details forms part of financial statements.

The details pursuant to SEBI (Share Based Employee Benefit) regulations, 2014 has been placed on the website of the Company www.satincreditcare.com.

ESOS Schemes Compliance Status

ESOS 2009 and ESOS 2017 is in compliance with Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (SEBI ESOS Regulations) and the Companies Act, 2013. The company small place before upcoming AGM, a certificate from the Statutory Auditors of the Company certifying that ESOS 2009 and ESOS 2017 Scheme of the Company is being implemented in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and is in accordance with the resolutions passed by the Members of the Company at a general meeting.

The ESOS Schemes are implemented in accordance with Indian Accounting Standard issued by ICAI and the relevant accounting pronouncements.

Administration of ESOS Schemes

The Nomination and Remuneration Committee of the Board administer the Employee Stock Option Schemes, formulated by the Company from time to time.

POLICIES

Vigil Mechanism/Whistle Blower Policy

The Company has formulated a vigil mechanism through Whistle Blower Policy to deal with instances of unethical behaviour, actual or suspected, fraud or violation of Company''s code of conduct or ethics policy and details of the same are explained in the Corporate Governance Report. The Policy is also available on the Company''s website (www.satincreditcare.com).

Policy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) & Senior Management and Other Employees

Risk Management Policy

The Board has adopted the Risk Management Policy based on the recommendation of the Risk Management Committee in order to assess, monitor and manage risk throughout the Company. Risk is an integral part of any business, and sound risk management is critical for the success of any organization. The Audit Committee reviews adequacy and effectiveness of the Company''s internal control environment to monitor and mitigate the risk through internal audit recommendations including those relating to strengthening of the Company''s risk management policies and systems.

Sexual harassment policy for women under The Sexual Harassment of Women at workplace (prevention prohibition and Redressal) Act, 2013

Your Company has in place a formal policy for prevention of sexual harassment of its employees at workplace. The Company is in compliance with the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 and has adopted a revised policy on Sexual Harassment on August 14, 2017 to prohibit, prevent or deter any acts of sexual harassment at workplace and to provide the procedure for the redressal of complaints pertaining to sexual harassment, thereby providing a safe and healthy work environment.

Further, during the year under review, there was no case filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

DEPOSITS

The Reserve Bank of India in exercise of its powers under The Reserve Bank of India Act, 1934, has granted NBFC-MFI (Serial No. B-1 4.01 394) status to the Company and the Company is NBFC-NDSI. The Board of Directors of the Company has passed a resolution that the Company has neither accepted Public deposit nor will accept deposit during FY2019-20.

RESERVE BANK OF INDIA-REGISTRATION AND DIRECTIONS

Your Company has been following all relevant guidelines issued by Reserve Bank of India from time to time. Further, your Company has Capital Adequacy Ratio of 28.49% as on March 31, 2019. The NonBanking Financial Company - Micro Finance Institutions (Reserve Bank) - Directions, 2011 ("NBFC-MFI Directions") were issued in December 2011 by the Reserve Bank of India (RBI) pursuant to the Reserve Bank of India Act, 1934 ("RBI Act"). The Company satisfies these conditions and was re-classified as a Non-Banking Financial Company - Micro Finance Institution ("NBFCMFI") on November 6, 2013. As a result, the Company is required to comply with the NBFC-MFI Directions. These Directions include guidelines on qualifying assets criteria, asset classification and provisioning, pricing of credit, capital adequacy, multiple lending, over-borrowing, compliances and fair practices. The Company generally complies all conditions and directions issued by RBI from time to time.

CORPORATE GOVERNANCE

The Company has adopted best corporate practices, and is committed to conducting its business in accordance with the applicable laws, rules and regulations. The Company follows the highest standards of business ethics. A report on Corporate Governance forming part of Directors'' Report also enclosed herewith. During the year under review, the Company has obtained C1 as Code of Conduct Assessment Grade from ICRA, which signifies excellent performance pertaining to Transparency, Client Protection, Governance, Recruitment, Client Education, Feedback & Grievance Redressal and Data Sharing.

Satin is subject to the regulations of the RBI (âReserve Bank of India'') and the SEBI(âSecurities and Exchange Board of India'').The Corporate Governance structures and practices at Satin are primarily shaped by the respective regulations. The Compliance Certificate from S. Behra & Co., Company Secretary in Practice regarding compliance of conditions of corporate governance and to certify that none of the director have been debarred or disqualified from being appointed or continuing as directors of the Companies by the Board /Ministry of Corporate affairs or any such authority, under the SEBI LODR Regulations for FY19 is annexed to the Corporate Governance Report which is provided separately in the Annual Report.

PARTICULARS OF EMPLOYEES

In terms of Section 197 (12) of the Companies Act, 2013 read with Rule 5, Sub-Rule (1), (2) & (3) of Companies (Appointment & Remuneration) Rules, 2014, the necessary disclosures are annexed as Annexure IV with this report.

LISTING WITH STOCK EXCHANGES

The equity shares of the Company are listed on BSE Limited (BSE) and National Stock Exchange Limited (NSE).

EXTRACT OF ANNUAL RETURN

In terms of requirement made under Section 92 and Section 134(3)(a) of the Companies Act, 2013 read with applicable rules of The Companies (Accounts) Rules, 2014, extract of annual return forms part of this Directors'' Report and annexed as Annexure V.

OTHER INFORMATION

Information pursuant to section 134 of the Companies Act, 2013 read with Rule 8(3) (a) & (b) of the Companies (Accounts) Rules, 2014 being not applicable and hence not being disclosed.

Further Information pursuant to Rule 8(3) (c) of the above said rule is mentioned below.

(Rs. in Lakhs)

FOREIGN EXCHANGE TRANSACTIONS
S. No. Particulars	March 31, 2019	March 31, 2018
1. Travelling Expenses	26.85	28.99
2. Professional Fee	46.13	74.31
3. Interest Payment - External Commercial Borrowing	381.18	344.49
4. Sitting Fees	1.40	1.20
5. Investment	331.65	-
6. Processing fees	216.11	82.46
7. Investment	33,164,790	-
8. Processing fees	21,611,479	-

ACKNOWLEDGEMENTS

Your Directors would like to place on record their gratitude for the cooperation received from lenders, our valued customers and shareholders. The Board, in specific, wishes to place on record its sincere appreciation of the contribution made by all the employees towards growth of the Company.

For and on behalf of the Board of Directors

H P Singh

Place: Delhi Chairman cum Managing Director

Date : May 08, 2019 DIN: 00333754

Mar 31, 2018

Dear Members,

The Directors are pleased to present the Twenty Eighth Annual Report along with the Audited Financial Statement of your Company for Fiscal 2017-18.

FINANCIAL SUMMARY/HIGHLIGHTS, OPERATIONS, STATE OF AFFAIRS

(Rs. in Crore)

Particulars	Standalone		Consolidated
Particulars	March 2018	March 2017	March 2018	March 2017
Revenue	976.64	776.67	1,031.42	801.47
Total Expenses	958.98	733.84	1023.86	757.60
Profit before Depreciation and tax	17.66	42.83	7.57	43.86
Depreciation and amortization expenses	14.06	5.63	14.74	6.05
Profit Before Tax	3.60	37.20	(7.18)	37.81
Tax expenses	(0.43)	12.70	(3.74)	12.89
(Loss)/Profit after Tax	4.03	24.50	(3.43)	24.92
Less: Share of minority interest	-	-	(0.74)	0.05
Net (Loss)/Profit for the year	4.03	24.50	(2.69)	24.87
Brought forward from Previous Year	109.59	89.99	109.96	89.99
Profit available for appropriation	113.62	114.49	107.27	114.86
Transfer to Statutory Reserve Fund	0.81	4.90	0.81	4.90
Dividend Paid-Preference Share Capital	2.44	-	2.44	-
Dividend Distribution Tax	0.50	-	0.50	-
Surplus carried to Balance Sheet	109.87	109.59	103.52	109.96

OPERATIONS, FUND RAISE, PROSPECTS AND FUTURE PLANS

During the financial years your Company has done well on all parameters. Your Company has undertaken initiatives with an objective to enhance customer reach, improve operating efficiencies, reduce operating cost by implementing cashless system/digitization in 33 Regional Offices and 414 Branches and has disbursed more than Rs. 1070 Crore through cashless mode as of March 31, 2018 which has enhanced the level of reporting system, improving internal control, ensure transparency, promptness and fairness in disclosure. To achieve better efficiency at operating level your Company has also entered into Business Correspondent Agreement for Microfinance business verticle with a leading commercial bank and has started the pilot launch from Siliguri Regional Office in state of West Bengal. Furtherance to this, to achieve optimum utilization of resources available, Company has also entered into Business tie-up agreement(s) (BTA) with a large NBFC, to act as service provider to offer non Microfinance Financial products to Companyâs existing as well as potential customer segments in terms of the BTA and started pilot for disbursement of two wheeler loans from Jodhpur region in state of Rajasthan.

Operational Highlights in brief (Standalone basis):

- The aggregate gross loan portfolio (GLP) of the Company stood at Rs 5,084.80 Crore as on March 31, 2018. This represents a year on year (YoY) growth of40.59 % as compared to March 31, 2017.

- Loan amount of Rs. 5,571.66 Crore was disbursed in FY 17-18, representing an increase of 55.02 % as compared to FY 16-17.

- The Company disbursed Rs.18.16 Lakh loans during FY 17-18, an increase of 15.96% over FY 16- 17.

- Average loan amount disbursed per account during FY 17-18 was Rs. 30,675, an increase of 33.69 % from FY 16-17.

- The Company now cover 18 states/union territories.

Particulars	March 31, 2018	March 31, 2017
Number of branches	809	618
Number of active loan	24,01,701	22,98,095
Total Assets under management including securitized and assigned portfolio (Net of Provision) (Rs. in Crore)	4,989.73	3,555.98

Fund raise during FY 2017-18:

In view of expanding business operations and to meet the capital requirements, the Company has raised equity capital by way of a preferential allotment of 15,43,187 equity shares of Rs. 10 each from âAsian Development Bankâ (ADB), an entity belonging under non-promoter entity, at an issue price of Rs. 416.67 per shares on April 21, 2017 in terms of the Investment Agreement executed on April 10, 2017 and simultaneously issued and allotted 6,58,690 Fully Convertible Warrants to an entity under Promoter Category at an aggregate amount of approx. Rs. 30 Crore at an issue price of Rs. 455.45 per warrant which was subsequently converted into equivalent number of equity shares on June 30, 2017.

The Company has issued and allotted 12,30,098 [0.01% Optionally Convertible Redeemable Preference Shares (âOCRPSâ) of Rs. 10 each] to "Capital First Limited", an entity belonging under non-promoter entity, at an issue price of Rs. 284.53 on August 10, 2017 in terms of Investment Agreement executed on July 08, 2017.

Further, Company has also raised approx. Rs. 150 Crore by way of a Qualified Institutional Placement (QIP) and allotted 49,18,032 equity shares of Rs.10 each to Qualified Institutional buyers (QIBs) at an issue price of Rs. 305 per equity share on October 11, 2017 under the provisions of Chapter VIII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, and section 42 & 62 of the Companies Act, 2013 including the rules made thereunder.

During third quarter your Company has successfully completed third round of equity raise by way of a preferential allotment of 29,85,073 equity shares of Rs. 10 each to âKora Investments I LLCâ and âNordic Microfinance Initiative Fund III KS (formerly known as NMI Fund III KS)â (entities under non-Promoter Category), an entities belonging under non-promoter entity, at an issue price of Rs. 335 per share on December 28, 2017 in terms of Investment Agreements entered on December 19, 2017 and simultaneously issued and allotted 17,91,044 Fully Convertible Warrants(FCW) to an entity under Promoter Category at an aggregate amount of approx. Rs. 60 Crore at an issue price of Rs. 335 per warrant. The Company has also issued and allotted 13,43,283 [0.01% Optionally Convertible Cumulative Redeemable Preference Shares (âOCCRPSâ)] on preferential basis to "IndusInd Bank Limited" (IBL), an entity belonging under non-promoter entity, at an issue price of Rs. 335 per OCCRPS in terms of Investment Agreement executed on December 19, 2017.

Your Company has continued to diversify the sources of funds and raised a sum of Rs. 3,888 crore by way of short-term loans, long-term loans, issue of Non-Convertible Debentures, Securitization & Assignments and Commercial Paper, which has helped the Company to achieve itsâ business target for FY 2017-18. Out of overall borrowings, Company has raised Rs. 2,054 Crore by way of term loan and Rs. 1,111 Crore by way of PTC transactions and proportion of NCD in total borrowing is Rs. 473 Crore. The Company already has borrowing arrangement with large number of lenders and keep on diversifying its lender base. Please refer the Management Discussion and Analysis Report for more information.

Companyâs Prospects, Future Plans and Business Overview:

Financial year under review was an extraordinary year evidencing the impact of currency shortage immediately after demonetization on the repayment of microfinance borrower. Though it has impacted the profitability for the year as a whole, eventually your Company has emerged much stronger and performed satisfactory during the year under review. However, the Company has increased its capital base and started working on cashless model and achieved a milestone of disbursing Rs. 1070 Crore through cashless mode. Moreover, Company has taken several new initiatives to embark on a profitable growth path in difficult time, by writing off NPAs and showed a positive growth during last three quarters in the year under review. Further, your directors are quite hopeful to achieve new milestones of achievement in years to come.

Please refer the Management Discussion and Analysis Report for more information on your Companyâs Business Overview.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company has duly complied with the provision of section 186 of the Companies Act, 2013 and Rules made thereunder. Details on loans or investments are mentioned in financial statements of this Annual Report. The Company has not given any guarantee on behalf of a third party.

DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS

The Company has documented its policies, controls and procedures, covering all financial and operating functions, designed to provide a reasonable assurance with regard to reliability of financial reporting, monitoring of operations, protecting assets from unauthorized use or losses, compliances with regulations, prevention and detection of fraudulent activities etc. The Company has put in place an adequate internal control system to safeguard all its assets and ensure operational excellence. The system also meticulously records all transaction details and ensures regulatory compliance. The Company also has a team of internal auditors to conduct internal audit. The reports are reviewed by the Audit Committee of the Board. Wherever necessary, internal control systems are strengthened and corrective actions initiated. Please refer to the Section âInternal Control Systems and their Adequacyâ in the Management Discussion and Analysis section ofthis report.

MATERIAL EVENT RECORDED SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS

There are no material changes and commitments affecting the financial position of the Company, which has occurred between the end of the financial year of the Company i.e. March 31, 2018 and the date of the Directorsâ Report. Pursuant to the Investment Agreement dated July 8, 2017 entered into by Capital First Limited with the Company and its Promoters, we have received communication from Capital First Limited about their willingness to convert 12,30,098 Optionally Convertible Redeemable Preference Shares (OCRPS) issued at a price of Rs. 284.53 per OCRPS into equivalent number of equity shares, in terms of the aforesaid agreement.

SUBSIDIARY AND ASSOCIATES COMPANIES

During previous financial year 2016-17, Taraashna Services Limited (TSL) became subsidiary of your Company, on acquisition of 87.83% equity stake in TSL. During FY 2017-18, your Company has infused funds of Rs. 12 Crore approx. in two tranches and acquired additional 3.28% stake in TSL. As on March 31, 2018, your Company holds 91.11% stake in tSL.

In order to move towards diversification and to tap new market segment, your Company has incorporated a wholly owned subsidiary âSatin Housing Finance Limitedâ (SHFL) with Authorized Capital of Rs. 15 Crore and paid up Equity Share Capital of Rs.10 Crore on April 17, 2017. Further, to meet regulatory and projected growth of SHFL, Company has infused further equity of Rs. 5 Crore in two tranches. SHFL recently got License from National Housing Board on November 14, 2017, to commence business and operations. As on March 31, 2018, your Company holds 100% stake in SHFL.

Business highlights of Taraashna Services Limited:

Taraashna Services Limited (âTSLâ) is engaged in Business Correspondent activity and during FY 2017-18 has achieved a gross turnover of Rs. 53.83 Crore against total gross turnover of Rs 40.48 Crore during previous year showing a growth of 32.97%. Further, TSL has incurred loss of Rs. 6.63 Crore. Primary reason for the loss is the crystallization of the First Loss Default Guarantee paid/payable to various principal partners amounting to Rs. 20.85 Crore. However, TSL has earned the operational profit before credit cost and tax of Rs. 11.07 Crore Your Company is quite hopeful for TSL in the year to come.

Business highlights of Satin Housing Finance Limited:

Satin Housing Finance Limited, wholly owned subsidiaryâs net worth stood at Rs 14.49 Crore for the period ended March 31, 2018. As on March 31, 2018, regulatory Capital to Risk Assets Ratio (CRAR) was 685.96% which is well above the regulatory requirement of 12%. SHFL has sanctioned loans of Rs. 3.77 Crore and disbursed loans of Rs. 2.11 Crore which led to total income during the period ended March 31, 2018 of Rs 0.69 Crore indicates a positive sign towards growth in this segment. Your Company is quite positive to do well in affordable housing finance segment.

Consolidated Financial Statements:

In accordance with section 129(3) of the Companies Act, 2013 and regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, the Consolidated Financial Statements of the Company, including the financial details of all the subsidiary companies, forms part of this Annual Report. The Consolidated financial statements have been prepared in accordance with the Indian Accounting Standards issued by the Institute of Chartered Accountants of India.

Further, a statement containing salient features of the financial statements of the Companyâs subsidiaries in Form AOC-1 also form part of the Annual Report. Further, Company has neither any Associates nor any Joint Ventures as on March 31, 2018.

DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

All the Directors have varied experience and specialized knowledge in various areas of relevance to the Company. The Board consists of directors appointed as per the provisions of the Companies Act, 2013.

Mr. Arthur Sletteberg (DIN: 07123647), who is liable to retire by rotation and being eligible, offers himself for re-appointment in the ensuing AGM. Further, Nomination & Remuneration Committee and the Board of directors have recommended his reappointment for consideration of the members. Brief resume of Mr. Arthur and his educational/professional qualifications, nature of his working experience, achievements, name(s) of the companies in which he holds Directorships, Memberships and Chairmanships in various Committees and his relationship between directors inter-se are provided erstwhile in the Annual Report.

Mr. Richard Benjamin Butler (DIN: 06574786), Nominee director of MV Mauritius Limited and Mr. Ramesh G Dharmaji (DIN-01186341) Nominee Director of Small Industries Development Bank of India, have ceased to be Directors of the Company with effect from January 19, 2018 and November 08, 2017 respectively. The Board wishes to place on record the appreciation for the valuable contribution of Mr. Richard Benjamin Butler and Mr. Ramesh G. Dharmaji in the sustained growth of the Company during their tenure as Directors of the Company.

The Board, based on the recommendation of the Nomination & Remuneration Committee, appointed Mr. Sanjaya Gupta (DIN: 02939128) as Nominee director to represent âAsian Development Bankâ w.e.f. August 21, 2017 and Mr. Daniel Simpson Jacobs (DIN: 07858118) as Nominee director to represent âKora Investments I LLCâ w.e.f. January 08, 2018 on the Board of the Company.

There were no change in the Key Managerial Personnel during the year under review.

During the year, 6 (six) Board Meetings were held. These Board Meetings were held on May 26, 2017, July 08, 2017, August 14, 2017, November 13, 2017, November 24, 2017 and February 14, 2018.

PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS

The Companies Act, 2013 and SEBI (Listing Obligation and Disclosures Requirement) Regulations, 2015 stipulates the performance evaluation of the Directors including Chairperson, Board and its Committees. Further, SEBI vide its circular dated January 5, 2017 issued a guidance note on Board Evaluation for listed companies. In view of the same and in terms of Board approved Nomination and Remuneration policy, the annual evaluation of directors of their own performance, Board Committees and individual directors (including Independent Directors) based on criteria for the Directors and the Board are done through separate structured questionnaires.

The performance of Board and its Committees, individual Directors, and Chairpersons were found satisfactory.

STATEMENT ON DECLARATION âCERTIFICATE OF INDEPENDENCEâ U/S 149 (6) FROM INDEPENDENT DIRECTORS

Pursuant to section 149(6) and schedule IV of the Companies Act, 2013, the Board has independent directors and there is an appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and duties effectively. The independent directors have submitted a declaration that the independent directors meet with the criteria of independence as required under section 149(6) of the Companies Act, 2013.

DIRECTORSâ RESPONSIBILITY STATEMENT Pursuant to section 134 (5) of the Companies Act, 2013, the Directors hereby confirm:

1. That in the preparation of the annual accounts for the financial year ended March 31, 2018, the applicable accounting standards had been followed along with proper explanation relating to material departures;

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

INFORMATION ON MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL

There is no material order passed by the regulators or courts or tribunals impacting the going concern status and Companyâs operations in future.

RELATED PARTY TRANSACTIONS

During the financial year 2017-18, there is no materially significant related party transaction with the Companyâs promoters, directors, the management or their relatives which may have potential conflict with the interest of the Company at large. The Company has also formulated a policy on dealing with the Related Party Transactions (including for material related party transactions) and necessary approval of the Audit Committee and Board of Directors were taken wherever required in accordance with the Policy. The details of such policies for dealing with all related party transactions are disseminated on the website of the Company www.satincreditcare.com.

Particulars of Contracts or Arrangements with related parties referred to in section 188(1) is given in Form AOC-2 as Annexure-I. Further, details of Related Party Transactions as required to be disclosed by Accounting Standard-18 on âRelated Party Transactionsâ specified under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 are given in the Notes to the Financial Statements.

Justification for entering into related party transactions:

Your Company has entered into affordable housing finance business through a wholly owned subsidiary that can be beneficial for the growth of the Company. In April 2017, the Company has incorporated a wholly owned subsidiary in the name of Satin Housing Finance Limited (âSHFLâ) with Authorized Capital of Rs. 15 Crore and paid up Equity Share Capital of Rs. 10 Crore with the objective of balancing the risk by diversification into secured lending. Further, during the year under review your Company has infused more equity into SHFL in tranches to meet the regulatory requirement to maintain CRAR and to finance its disbursement targets. As on May 30, 2018, SHFLâs Authorized Share Capital and paid up Equity Share Capital stood at Rs. 60 Crore and Rs. 14.96 Crore respectively.

In order to expand the business operations of Taraashna Services Limited (TSL), your Company has also invested approx. Rs. 12 crore in two tranches. Further, the management of TSL is of the view that to meet its budgeted plans, the technological transformation is very essential. In view of this TSL has planned to implement Loan Management System for its operations to reduce the operational and administrative cost. Hence, your Company has entered into a Technology Service Agreement with TSL.

Furtherance to this, the remuneration paid to Mr. H P Singh, Chairman cum Managing Director and the sitting fee payment to nonexecutive directors (other than Investorâs nominee) for each Board/Committee meeting(s) attended are shown under Related party disclosures segment under âNotes to the accountâ of Balance Sheet in terms of Accounting Standard 18 issued by The Institute of Chartered Accountants of India.

AUDITORS & THEIR REPORTS

Statutory Auditors & their Report:

M/s Walker Chandiok & Co LLP, Chartered Accountants, bearing Registration No. 001076N/N500013 have been appointed on the recommendation of the Audit Committee and of the Board of Directors (in conformity with the provisions of sections 139 and 141 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014) (includes amendments thereto), as the Statutory Auditors of the Company for the period of 5 years from the conclusion of the twenty seventh AGM till the conclusion of the thirty second AGM. They have confirmed their eligibility for FY 2018-19 under section 141 of the Companies Act 2013 (includes amendments thereto), and the said appointment is in accordance with the applicable provisions of the Act and rules framed thereunder.

During the year under review, the Auditors had not reported any matter under section 143 (12) of the Act, therefore no details are required to be disclosed under section 134 (3)(ca) of the Act. The Auditorsâ Report is unmodified and does not contain any qualification, reservation, adverse remark or disclaimer.

The Board has placed on record its sincere appreciation for the services rendered by M/s Walker Chandiok & Co LLP, as Statutory Auditors of the Company.

Secretarial Auditors & their Report:

In terms of section 204 of the Companies Act, 2013 and rules framed thereunder and on the recommendation of the Audit Committee, the Board of Directors of the Company had appointed M/s S. Behera & Co. Practicing Company Secretaries (ICSI PCS Registration No. 5980) as the Secretarial Auditor of the Company for the financial year 2017-18. Secretarial audit report as provided by M/s S. Behera & Co. Company Secretaries is also annexed to this Report, in the prescribed Form MR-3, as Annexure-II. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.

Any member interested in hard copy of the Secretarial Audit Report may inspect the same at the Corporate Office of the Company or write to the Company Secretary for a copy.

The Company has received consent from M/s S. Behera & Co. Company Secretaries, for their re-appointment and appointed them as Secretarial Auditor in Board meeting held on May 30, 2018 for the financial year 2018-19.

Reporting of Frauds by Auditors:

During the year under review, the Statutory Auditors and the Secretarial Auditors 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.

However, eighteen instances of misappropriation including embezzlement of cash by the employees amounting to Rs.94 lakh were reported. Company has recovered Rs. 26 lakh and written off Rs. 65 lakh out of the said amount. Consequently, Company has terminated the services of such employees and also initiated legal action against such employees.

AUDIT COMMITTEE

In accordance with regulation 18 of SEBI (LODR) Regulations, 2015 and in accordance with the provisions of section 177 of the Companies Act, 2013 and as per other applicable laws the Company has an Audit Committee. All members of the Committee are financially literate. The Chairman of the Committee was present at the last Annual General Meeting to answer the queries of the Members. The scope of the activities of the Audit Committee is as set out in SEBI (LODR) Regulations, 2015 read with section 177 of the Companies Act, 2013 and other applicable laws are approved by Board of Directors of the Company. The composition of the Audit committee and the details of meetings attended by the Directors are provided in Corporate Governance Report section of this Annual Report.

DIVIDEND

Directors of your Company have recommended dividend of Rs.3,02,51,333.39 (excluding dividend distribution tax) on Preference shares as stated below:

S. No.	Preference Shares	Period of dividend	Type of dividend	Amount (in Rs.)*
1.	12.10% Rated, Cumulative, Non-Convertible and Compulsorily Redeemable Preference Shares	April 01, 2017 to March 31, 2018	Final dividend	3,02,50,000.00
2.	0.01% Optionally Convertible Cumulative Redeemable Preference Shares	December 28, 2017 to March 31, 2018	Final dividend	345.94
3.	0.01% Optionally Convertible Redeemable Preference Shares	August 10, 2017 to March 31, 2018	Final dividend	788.61
4.	0.01% Optionally Convertible Redeemable Preference Shares	April 01, 2018 to till date of conversion (i.e. May 30, 2018)	Interim dividend	198.84
	Total			3,02, 51,333.39

*Amount of dividend is excluding of dividend distribution tax

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your Company has a vision to drive âholistic empowermentâ of the community and carries CSR initiatives through a trust(s), qualified to undertake CSR activities in accordance with schedule VII of the Companies Act, 2013 (includes amendments thereto). Sustainability and social responsibility are an integral element of corporate strategy of the Company. In compliance with section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014, the Company has established the Corporate Social Responsibility Committee (CSR Committee) in the financial year 2014-15 and the composition, function and details of meetings attended by the Committee Members are provided in the Corporate Governance Report.

The Board adopted the CSR Policy, formulated and recommended by the CSR Committee, and the same is available on the Companyâs website.

During the year under review, your Company has spent approx. Rs.114.30 lakh on CSR projects/programs. Your Company is in compliance with the statutory requirements in this regard.

As per the requirement of rule 8(1) of The Companies (Corporate Social Responsibilities) Rules, 2014 the Annual Report on CSR is annexed as Annexure III to this report and the same is posted on the website of the Company i.e. www.satincreditcare.com. The Company has carried out the CSR initiatives through Maharaja Agrasen Charitable Hospital Trust (MAHCT), an eligible trust qualified to undertake CSR activities in accordance with schedule VII of the Companies Act, 2013, MAHCT is in process of establishment of Maharaja Agrasen Medical College, Maharaja Agrasen Nursing Institute, Maharaja Agrasen Paramedical Institute and Maharaja Agrasen Management Institute. The medical college will have a separate section for economically weaker section category patients, wherein patients will be treated free of cost including provision of free medicines and diet. This section will run through CSR funds.

E-VOTING

To widen the participation of shareholders in Companyâs decisions pursuant to provisions of section 108 of Companies Act, 2013 read with rule 20 of The Companies (Management and Administration) Rules, 2014 as amended and in terms of regulation 44 of SEBI (Listing Obligations and Disclosures Requirements) Regulation 2015, the Company has provided e-voting facility to its members, in respect of all membersâ resolutions to be passed at General Meeting(s) of the Company. The Company is providing this facility to enable them to cast their votes electronically on all resolutions set forth in the Notice. The instruction(s) for e-voting for ensuing Annual General Meeting is also provided with notice to members of this Annual Report. The Company has signed necessary agreements with National Securities Depository Limited and Central Depository Services Limited to facilitate e-voting for members approval in their general meetings or through postal ballots.

REGISTER E-MAIL ADDRESS

To contribute towards greener environment, the Company again proposes to send documents like members meeting notice/other notices, audited financial statements, boardsâ report, auditorsâ report or any other document, to members in electronic form at the e-mail address provided by them and/or available to the Company by the Depositories. Members who have not yet registered their e-mail address (including those who wish to change their already registered e-mail address) may get the same registered/updated either with their depository participants or by writing to the Company.

EMPLOYEES STOCK OPTION PLAN

In order to develop and implement a long term incentive program to attract, motivate and retain the talent in a competitive environment, the Company has formulated and implemented âEmployees Stock Option Schemes (ESOS Schemes)â which provides for grant of equity shares of Satin Creditcare Network Limited to employees of the Company and itâs subsidiaries. The scheme provide for grant of options to employees of the Company and itâs subsidiaries that vest in a graded manner and that are to be exercised within a specified period.

The Company had allotted 4,25,000 equity shares to Satin Employees Welfare Trust at Rs. 20 each (including premium of Rs. 10 each) on November 27, 2009. The Company had further allotted 1,00,000 shares to Satin Employees Welfare Trust at Rs. 22 each (including premium of Rs. 12 each) on June 22, 2010. The Company had further allotted 1,50,000 shares to Satin Employees Welfare Trust at Rs. 25 each (including premium of Rs. 15 each) on April 21, 2011. These shares were allotted at a value which is over the fair market value of these share at the time of allotment and thus no expense has been recognized. As against 4,25,000 Equity Shares issued to Satin Employees Welfare Trust under Satin ESOP 2009, the Company granted 1,50,000 Options to two employees of the Company as per the terms of Satin ESOP 2009 on January 12, 2010. These entire options are vested and exercised as per terms set out under ESOP 2009. Further, the Company granted 98,300 Options to various employees as per the terms of Satin ESOP 2009 on December 02, 2013. Out of98,300 shares granted, 25,824 were exercised on December 02, 2014 and 22,633 were exercised on December 03, 2015 and 27,243 were exercised on December 03, 2016. Further, the Company has granted 87,900 Options Equity Shares to various employees as per the terms of Satin ESOP 2009 on December 02, 2016. Out of 87,900 shares granted, 21,100 were exercised in between December 2, 2017 to February 1, 2018. The exercised shares transferred in terms of ESOP Scheme 2009 are required to be lock in period of one year from the date of transfer of shares from Satin Employees Welfare Trust to employees. Further, as the Satin Employee Stock Options Scheme, 2017 (Satin ESOS, 2017) has come into operations and all unvested options are transferred to the Satin ESOS 2017 from July 6, 2017, Company has granted 1,45,200 Options to various employees as per the terms of Satin ESOS 2017 on August 14, 2017.

DISCLOSURE UNDER SECTION 62 OF THE COMPANIES ACT, 2013, RULE 12 OF COMPANIES (SHARE CAPITAL AND DEBENTURES) RULES, 2014, SEBI (SHARE BASED EMPLOYEE BENEFITS) REGULATIONS, 2014 AND THE SEBI (EMPLOYEE STOCK OPTIONS SCHEME AND EMPLOYEE STOCK PURCHASE SCHEME) GUIDELINES 1999, FOR THE YEAR ENDED MARCH 31, 2018

The Board of Directors of your Company has approved an Employeesâ Stock Option Scheme during the Year 2009 and 2010 in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (hereinafter referred to as âSEBI Regulationsâ) with the objective of strengthening employee bond with the Company and creating a sense of ownership. Your Board felt it appropriate to extend Employee Stock Options to permanent employees in the management staff, including Managing Director and Whole-time Director(s) in order to motivate and retain the best talent. Further, during the year the Company has amended the scheme as per the new regulations i.e. SEBI (Share Based Employee Benefit) regulations, 2014. On July 6, 2017, Company came up with Satin Employee Stock Option Scheme, 2017 (âSatin ESOS, 2017â), which is drawn in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, to create, grant, offer, issue and allot from time to time, in one or more tranches, options not exceeding 3,61,400 representing 0.96% of the paid-up capital of the company as on March 31, 2017 (or such other adjusted figure for any bonus, stock splits or consolidations or other reorganization of the capital structure of the Company as may be applicable from time to time including the shares lying with the Trust that may remain unutilized pursuant to non-exercisability of options granted under Satin ESOP 2009, 2010 (I) and 2010 (II), to or for the benefit of permanent employees of the Company and its subsidiaries whether working in India or outside India; Directors of the Company, whether a Whole-time Director or not but not an Independent Director; and such other employees and persons as may be permitted under the applicable laws and as may be approved by the Committee, from time to time, on such terms and conditions, as contained in the Scheme.

A. Disclosures in terms of the âGuidance note on accounting for employee share-based paymentsâ issued by ICAI or any other relevant accounting standards.

1. The Company had ânilâ share-based payment arrangements during the year ended March 31, 2018.

2. The estimated fair value of each stock option granted in the general employee stock option plan is Rs.420.75 and Rs. 166.98. This was calculated by applying Black Scholes pricing model. The model inputs were as follows:

Inputs	Satin ESOP 2009			ESOS SCHEME 2017
Share price at grant date (In Rs.)	416.50			264.90
Vesting	First	Second	Third	First	Second	Third
Exercise price (In Rs.)	20	20	20	160	160	160
Expected volatility (%)	60.39	60.39	60.39	55.86	62.90	62.90
Expected dividends yield	-	-	-	-	-	-
Contractual life (in years)	-	0.70	1.70	0.40	1.40	2.40
Risk free interest rate	6.09%	6.04%	6.03%	6.35%	6.40%	6.45%

3. Other information regarding employee share-based payment plans is as below:

Particular	Year ended March 31, 2018	Year ended March 31, 2017
Expense arising from employee share-based payment plans	Rs. 1,89,07,983	Rs.52,03,662

B. Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations shall be disclosed in accordance with âAccounting Standard 20 - Earnings Per Shareâ issued by ICAI or any other relevant accounting standards as prescribed from time to time: Rs. 0.25.

Effects of Share Options on Diluted Earnings per Share (Accounting year April 01, 2017 to March 31, 2018):

Particulars
Net profit for the year ended 2018 (in Rs.)	1,08,37,968
Weighted average number of equity shares outstanding during the year ended 2018	4,21,66,114 Shares
Average fair value of one equity share during the year ended 2018	420.75 & 166.98
Weighted average number of shares under option during the year ended 2018	4,05,567 Shares
Weighted average number of shares under Conversion during the year ended 2018	11,34,552 Shares
Exercise price for shares under option during the year ended 2018 (in Rs.)	20 & 160

Computation of earnings per share:

Particulars	Earnings	Shares	Earnings Per Share
Net profit for the year ended 2018 (Rs.)	1,08,37,968	-	-
Weighted average number of shares outstanding during year ended 2018	-	4,21,66,114	-
Basic earnings per share (Rs.)	-	-	0.26
Number of shares under option	-	4,05,567	-
Number of shares under conversion	-	11,34,552	-
Diluted earnings per share (Rs.)	1,08,35,395	43,70,6,233	0.25

C. Details related to ESOS

(i) A description of each ESOS that existed at any time during the year, including the general terms and conditions of each ESOS

S. No.	Particular	Satin ESOP 2009 (Remarks)	Satin ESOP I 2010 (Remarks)	Satin ESOP II 2010 (Remarks)	Satin ESOS Scheme 2017
a)	Date of shareholdersâ approval	June 01, 2009	March 26, 2010	December 15, 2010	July 6, 2018
b)	Total number of options approved under ESOS	4,25,000	1,00,000	1,50,000	3,61,400 and such other unvested options under existing ESOP Schemes
c)	Vesting requirements/ Conditions	The actual vesting of options will depend on continuation to hold the services being provided to the Company at the time of exercise of options and such other conditions as mentioned in the ESOP Scheme.	The actual vesting of options will depend on continuation to hold the services being provided to the Company at the time of exercise of options and such other conditions as mentioned in the ESOP Scheme.	The actual vesting of options will depend on continuation to hold the services being provided to the Company at the time of exercise of options and such other conditions as mentioned in the ESOP Scheme.	The actual vesting of options will depend on continuation to hold the services being provided to the Company at the time of exercise of options and such other conditions as mentioned in the Satin ESOS, 2017.
d)	Exercise price or pricing formula	Rs. 20/- being the Fair Value of the shares of the Company (Computed on the basis of Aaudited result FY 2008-09).	Rs. 22/- being the Fair Value of the shares of the Company. (Computed on the basis of Audited result FY 2009-10)	Rs. 25/- being the Fair Value of the shares of the Company. (Computed on the basis of Audited result FY 2009-10)	Nomination and Remuneration Committee is free to determine the exercise price based on Market Price
e)	Maximum term of options granted	3 Years	3 Years	3 Years	3 years or as the Committee may deem fit.
f)	Source of shares (primary, secondary or combination)	Primary	Primary	Primary	Primary
g)	Variation in terms of options	Not Applicable	Not Applicable	Not Applicable	Variations in Terms of Grants can be done by the Nomination and Remuneration Committee

(ii) Method used to account for ESOS - Fair Value (Black Scholes Model).

(iii) Option movement during the year (For each ESOS):

Particulars	Satin ESOP 2009 (Remarks)	Satin ESOP I 2010 (Remarks)	Satin ESOP II 2010 (Remarks)	Satin ESOS Scheme 2017 (Remarks)*
Number of options outstanding at the beginning of the period	1,20,700	1,00,000	1,50,000	3,61,400#
Number of options granted during the year	-	-	-	1,45,200
Number of options forfeited / lapsed during the year	12,900	-	-	67,800
Number of options vested during the year	22,300	-	-	-
Number of options exercised during the year	21,100	-	-	-
Number of shares arising as a result of exercise of options	21,100	-	-	-
Money realized by exercise of options (INR/Rs.), if scheme is implemented directly by the company	Rs. 4,22,000	-	-	-
Loan repaid by the Trust during the year from exercise price received	Rs. 4,22,000	-	-	-
Number of options Shifted to the New ESOS Scheme, 2017	1,33,600	1,00,000	1,50,000	-
Number of options outstanding at the end of the year	-	-	-	3,06,200
Number of options exercisable at the end of the year	44,600	-	-	77,400

- Figures of Outstanding Options under Satin ESOS, 2017 are reported considering figures of Existing ESOP Scheme and Satin ESOS, 2017

- 9300 options expired/lapsed under earlier ESOP Scheme in FY 2016-17 are adjusted.

(iv) Weighted-average exercise prices :

- when the exercise price is equal/exceeds to market price: NA

- when the exercise price is less than market price- Rs. 20 and Rs. 160

Weighted-average fair values

- when the exercise price is equal/exceeds to market price: NA

- when the exercise price is less than market price- Rs. 420.75 and Rs. 166.98.

(v) Employee wise details (name of employee, designation, number of options granted during the year, exercise price)

(a) Senior managerial personnel

	Details of Options Granted to Senior Managerial Personnel during this financial year
S. No.	Name of Employee	Designation	Number of Option granted during the year	Exercise Price (in Rs.)	Company
1.	Mr. Sanjay Mahajan	Chief Information Officer	12,000	160	Satin Creditcare Network Limited
2.	Mr. Subir Roy Chowdhury	Chief Human Resource Officer	12,000	160	Satin Creditcare Network Limited
3.	Mr. Dev Vrat Tiwari	Head Legal	1,200	160	Satin Creditcare Network Limited
4.	Mr. Sanjeev Vij	Chief Executive Officer	12,000	160	Taraashna Services Limited
5.	Mr. Punit Sharma	AVP-Human Resource	3,000	160	Taraashna Services Limited
6.	Mr. Milind Govindrao Deshmukh	Chief Operating Officer	4,500	160	Taraashna Services Limited
7.	Mr. Abhay Thakkar	Chief Financial Officer	1,200	160	Taraashna Services Limited
8.	Mr. Kuldeep Singh Yadav	Company Secretary	1,200	160	Satin Housing Finance Limited

(b) Following employees has received a grant in the reporting year of option amounting to 5% or more of option granted during that year;

S. No.	Name of Employee	Designation	No of Options granted
1.	Mr. Sanjay Mahajan	Chief Information Officer	12,000
2.	Mr. Subir Roy Chowdhury	Chief Human Resource Officer	12,000
3.	Mr. Sanjeev Vij	Chief Executive Officer	12,000

The details pursuant to SEBI (Share Based Employee Benefit) regulations, 2014 has been placed on the website and web link of the same is www.satincreditcare.com.

POLICIES

Vigil Mechanism/Whistle Blower Policy:

The Company has formulated a vigil mechanism through Whistle Blower Policy to deal with instances of unethical behaviour, actual or suspected, fraud or violation of Companyâs code of conduct or ethics policy and details of the same are explained in the Corporate Governance Report. The Policy is also available on the Companyâs website.

Policy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) & Senior Management and Other Employees:

In pursuance of the Companyâs policy to consider human resources as its invaluable assets, to pay equitable remuneration to all Directors, Key Managerial Personnel (KMP), Senior Management and other employees of the Company with objective to have diversified Board and to harmonize the aspirations of human resources consistent with the goals of the Company and also in terms of section 178 of the Companies Act, 2013 and regulation 19 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Nomination and Remuneration Committee had approved âpolicy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) & Senior Management and Other Employeesâ. The aforesaid policy was approved by the Board of Directors vide its meeting dated February 10, 2016. The Company shall periodically conduct familiarization programme for the independent directors, their roles, rights, responsibilities, nature of the industry in which the Company operates and its business model, etc. The detail of such familiarization programmes is disclosed on the Companyâs website i.e. www.satincreditcare.com.

Risk Management Policy:

The Board of Directors has adopted the Risk Management Policy based on the recommendation of the Risk Management Committee in order to assess, monitor and manage risk throughout the Company. Risk is an integral part of any business, and sound risk management is critical for the success of any organization. The Audit Committee reviews adequacy and effectiveness of the Companyâs internal control environment to monitor and mitigate the risk through internal audit recommendations including those relating to strengthening of the Companyâs risk management policies and systems.

Sexual harassment policy for women under The Sexual Harassment of Women at workplace (prevention prohibition and Redressal) Act, 2013:

Your Company has in place a formal policy for prevention of sexual harassment of its employees at workplace. The Company is in compliance with the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 and has adopted a revised policy on Sexual Harassment on August 14, 2017 to prohibit, prevent or deter any acts of sexual harassment at workplace and to provide the procedure for the redressal of complaints pertaining to sexual harassment, thereby providing a safe and healthy work environment.

Further, during the year under review, there was no case filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

CORPORATE GOVERNANCE

As required under regulation 17 to regulation 27 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Uniform Equity Listing Agreements executed with the Stock exchanges, a detailed report on corporate governance has been provided in a separate section which forms part of this annual report. The Company has complied with the requirements of Corporate Governance that have to be made in this regard. The requisite certificate from M/s S. Behera & Co., Practicing Company Secretary (ICSI PCS Registration No. 5980) regarding compliance with the conditions of Corporate Governance as stipulated in schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed to this report.

PARTICULARS OF EMPLOYEES

In terms of section 197 of the Companies Act, 2013 read with rule 5, sub-rule (1), (2) & (3) of Companies (Appointment & Remuneration) Rules, 2014, the necessary disclosures are annexed as Annexure IV with this report.

LISTING WITH STOCK EXCHANGES

The equity share of the Company is listed on BSE Limited (BSE) and National Stock Exchange Limited (NSE).

Pursuant to Board approval dated November 09, 2016, your Company is voluntarily delisted from the Calcutta Stock Exchange (âCSEâ) with effect from January 19, 2018 vide their approval letter dated January 18, 2018. Your Company is now listed with National Stock Exchange and Bombay Stock Exchange, i.e., NSE and BSE. Your Company has no due pending with the any stock exchange.

EXTRACT OF ANNUAL RETURN

In terms of requirement made under section 92 and section 134(3)(a) of the Companies Act, 2013 read with applicable rules of The Companies (Accounts) Rules, 2014, extract of annual return forms part of this Directorsâ Report and annexed as Annexure V.

OTHER INFORMATION

Information pursuant to section 134 of the Companies Act, 2013 read with rule 8(3) (a) & (b) of the Companies (Accounts) Rules, 2014 being not applicable and hence not being disclosed.

Further Information pursuant to rule 8(3) (c) of the above said rule is mentioned below.

ACKNOWLEDGEMENTS

For and on behalf of the Board of Directors

H P Singh

Place: Delhi (Chairman cum Managing Director)

Date: May 30, 2018 (DIN: 00333754)

Mar 31, 2017

Dear Members,

The Directors take pleasure in presenting the Twenty Seventh Annual Report of Satin Creditcare Network Ltd. (SCNL/Satin/Company) together with the Audited Accounts for the financial year ended March 31, 2017.

FINANCIAL SUMMARY/HIGHLIGHTS, OPERATIONS, STATE OF AFFAIRS

Amount in Rs. (Crores)

Particulars	Current Year	Previous year
Gross Income	776.67	558.52
Expenses	732.78	467.60
Profit before Depreciation and tax	43.89	90.92
Depreciation and amortization expenses	5.63	2.88
Profit Before Exceptional, Corporate Social Responsibility Expense, Extraordinary	38.25	88.04
Items And Tax
Exceptional Items	-	-
Profit Before Extraordinary Items, Corporate Social Responsibility Expense And Tax	38.25	88.04
Corporate Social Responsibility Expense	1.05	0.51
Extraordinary Items	-	-
Profit Before Tax	37.20	87.53
Tax Expense	12.70	29.59
Profit after Tax	24.50	57.94
Brought forward from Previous Year	92.76	47.00
Profit available for appropriation	117.26	104.94
Transfer to Statutory Reserve Fund	4.90	11.59
Proposed Dividend-Preference Share Capital @12.34%	-	0.49
Dividend Distribution Tax	-	0.10
Surplus carried to Balance Sheet	112.36	92.76

Figures based on standalone results;

OPERATIONS, PROSPECTS AND FUTURE PLANS

The Company disbursed 1,566,368 loans totaling Rs. 3,594.03 Crores during the year ended March 31, 2017 against Rs. 3,606.11 Crores during the previous year. The net outstanding portfolio (including managed portfolio and net of provisions) as at March 31, 2017 is Rs.3, 555.98 Crores. The total number of branches are 618 as at March 31, 2017 as against 431 as at March 31, 2016. Satin started its JLG operations in May 2008 from the state of Uttar Pradesh, and since then has diversified its JLG lending operations to Madhya Pradesh, Jammu & Kashmir, Uttarakhand, Bihar, Maharashtra, Himachal Pradesh, Rajasthan, Punjab, Haryana, Chandigarh, Chhattisgarh, Jharkhand, West Bengal, Delhi and Gujarat. During the financial year 2016-2017, the Company has raised Rs. 110.00 Crores as sub debt during the financial year 2016-17.

Your Company acquired 7,977,239 Equity Shares of M/s Taraashna Services Limited (erstwhile Taraashna Services Private Limited) (TSL/Taraashna) equivalent to 87.83% stake of TSL. By virtue of acquisition of 7,977,239 Equity Shares, TSL became subsidiary of your Company. TSL initially incorporated as private limited company, became a deemed public limited company after acquisition of 87.83% stake by Satin Creditcare Network Limited, consequent upon change in constitution, Taraashna has received a fresh certificate of incorporation on May 12, 2017. Pursuant to the acquisition of Taraashna by Satin, the Board of Directors of Satin had allotted 1,087,456 Equity Shares of Rs. 10 each at an issue price of Rs. 457.82 per share (including premium of Rs. 447.82 per share) on a Preferential basis to persons and entities belonging to promoter and non-promoter group pursuant to swap of shares of the Company to the shareholders of M/s Taraashna Services Limited in accordance with the provisions of Companies Act, 2013 read with rules made there under and also pursuant to the provisions of Chapter VII of SEBI (ICDR) Regulations, 2009.

Furtherance to this, your Company raised approx. Rs.250 Crores by way of a Qualified Institutional Placement (QIP) and allotted 4,529,970 equity Shares of Rs.10 each to Qualified Institutional buyers (QIBs) at an issue price of Rs.551.88 per equity share on October 03, 2016 under the provisions of Chapter VIII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, and Section 42 of the Companies Act, 2013 including the rules made there under.

In view of expanding business operations, in order to augment the capital base and to meet the capital requirements, the Company has also raised equity capital by way of a Preferential Allotment of 1,543,187 Equity shares of Rs. 10 each to "Asian Development Bank" (ADB) at an issue price of Rs. 416.67 per shares on April 21, 2017 and simultaneously issued and allotted 658,690 Fully Convertible Warrants to an entity under Promoter Category of the Company at an aggregate amount of approx. Rs. 30.00 Crores at an issue price ofRs.455.45 per warrant.

During the year 2016-17, the Company has raised borrowings of Rs. 3,732 Crores by way of Term Loans, Non-Convertible Debentures ("NCDs"), Commercial Papers and Other working capital limits which was 77% higher as compared to Rs. 2,105.45 Crores raised during 2015-16. Further, the Company has raised Rs 795.03 Crores by way of securitization and assignment of receivables which was 41% lower as compared to Rs 1,355.97 Crores raised during 2015-16 due to demonetization. The Company has raised Rs. 25 Crores by issuance of 2,50,00,000, 12.10% Rated, Cumulative, Non-Convertible, Compulsorily Redeemable Preference Shares of face value of Rs.10 each in accordance with the provisions of Section 42, 55 and 62 of the Companies Act, 2013 read with Rules made there under of The Companies (Share Capital and Debentures) Rules, 2014.

The Company already has borrowing arrangement with a large number of lenders and continuing on the track of diversification of sources; the Company has initiated relationship with 13 new lenders.

Operational Highlights:

Particulars	March 2017	March 2016
Number of branches	618	431
Amount disbursed (Rs. in Crores)	3,594.03	3,606.11
Number of active loan	22,98,095	18,51,113
Total Assets under management including securitized and assigned portfolio (Net of Provision) (Rs. in Crores)	3,555.98	3,248.01

Figures based on standalone results;

Company''s Prospects, Future Plans and Business Overview:

The business of your Company increased during the year in spite of a challenging environment on account of demonetization. In order to further its diversification efforts, the Company is expanding into new geographical territories during the current financial year. The Company is hopeful of achieving better performance during the current year on the back of its efforts to diversify its geographic presence along with diversification of its product portfolio to other growth segments.

Please refer the Management Discussion and Analysis Report for more information on your Company''s Business Overview.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company has duly complied with the provision of Section 186 of the Companies Act, 2013 and Rules made there under. Details on loans or investment are mentioned in financial statements of this Annual Report. The Company has not given any guarantees to anybody corporate on behalf of a third party.

DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The Company has proper and adequate system of internal control geared towards achieving efficiency in its operations, safeguarding assets, optimum utilization of resources and compliance with statutory regulations. Testing of such control systems forms a part of Internal Audit (IA) function. The scope and authority of IA function is defined in the IA policy.

The team of Internal Auditors of the Company conducts audits of various departments based on an annual audit plan covering key area of operations. Internal Audit reviews and evaluates the adequacy and effectiveness of internal controls, ensuring adherence to operating guidelines and systems and recommending improvements for strengthening them. Your Company has instituted various preventive or control measures in the loan approval process to mitigate the risk of extending loans to non-existent borrowers or fictitious borrower. The Company has continued its efforts to align its processes and controls with best practices and has put in place a process wise internal control framework across the Company.

MATERIAL EVENT RECORDED SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS

During the current financial year, the Company has incorporated a wholly owned subsidiary in the name of "Satin Housing Finance Limited" (SHFL) with Authorized Capital of Rs.150,000,000 and paid up Equity share Capital of Rs.100,000,000 with the objective of balancing the risks of your Company by diversification into secured lending and also by diversification of its portfolio from purely rural towards rural / semi urban and urban markets. Company''s foray into the housing finance segment will enable the Company to have a diversified customer base and is in line with the Company''s strategy to diversify into other financial products. Company''s entry into this new business segment and focus on affordable housing will provide another growth engine that will contribute towards the growth of the enterprise as a whole. The Company is in the process of filing an application with the ''National Housing Bank'' (NHB) for registration to commence business relating to housing finance. Further, the Board of Directors of the Company have proposed to infuse fresh funds into SHFL to meet the initial business needs of SHFL.

Furtherance to this, your Company intends to issue securities for an aggregate amount not exceeding Rs.300 Crores or its equivalent in one or more tranches. Accordingly, the Board of Directors of the Company vide its meeting held on May26, 2017 approved that equity or equity-linked debt capital raising be undertaken by the Company, which would involve creating, offering, issuing and allotting securities to eligible investors, and recommended same to the members approval at Extraordinary General Meeting at such price or prices, at a discount or premium to market price or prices in such manner and on such terms and conditions as may be deemed appropriate by the Board at its discretion, taking into consideration market conditions and other relevant factors and wherever necessary in consultation with lead managers and other advisors, either in one or more foreign currencies or Indian Rupees inclusive of such premium as may be determined by the Board, all in accordance with applicable laws.

SUBSIDIARY AND ASSOCIATES COMPANIES

By virtue of acquisition of 87.83% equity stake of M/s Taraashna Services Limited (TSL), TSL became subsidiary of your Company. Further, as stated above, Company has incorporated a wholly owned subsidiary "Satin Housing Finance Limited" (SHFL) with Authorized Capital of Rs.150, 000,000 and paid up Equity share Capital of Rs. 100,000,000

In accordance with Section 129(3) of the Companies Act 2013, we have prepared consolidated financial statements of the Company including its subsidiary which forms part of the Annual Report. Further, a statement containing salient features of the financial statements of the Company''s subsidiary in Form AOC-1 as Annexure-I also forms part of the Annual Report. SHFL became subsidiary of the Company after March 31, 2017 and hence the same is not considered for the purpose of disclosure.

Further, Company has neither any Associates nor any Joint Ventures as on March 31, 2017.

DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)

Mr. Satvinder Singh (DIN: 00332521) retire by rotation and being eligible, offers himself for re-appointment. Further Nomination & Remuneration Committee and the Board of Directors have recommended his re-appointment for consideration of the members.

Mr. Davis Frederick Golding (DIN: 00440024) resigned from the Board as investor Director (Nominee Director for M/s ShoreCap II Limited) w.e.f. August 10, 2016. In view of his rich experience, knowledge and contribution to the organization, he was appointed as Additional Director in the Capacity of Independent Director w.e.f August 30, 2016. Pursuant to Section 149, 150, 152, 161 and other applicable provisions of the Companies Act, 2013 and the Rules made there under, read with Schedule IV of the Companies Act, 2013, and as per Articles of Association of the Company, Mr. Davis Frederick Golding appointed as a Non-Executive and Independent Director of the Company, who have submitted a declaration that he meets the criteria for independence as provided in Section 149(6) of the Companies Act, 2013. The Nomination & Remuneration Committee and the Board of Directors have also recommended his appointment for consideration of the shareholders. Mr. Davis Frederick Golding will hold the position (if appointed by members) as Independent Director of the Company to hold office for a period of five years from the date of his appointment as additional director(s) or till such earlier date as may be determined by any applicable statutes, rules, regulations or guidelines and not liable to retire by rotation.

Further, during the year under review Mr. Kasper Svarrer (DIN: 0725247), Nominee Director (Representing Danish Microfinance Partners K/S) and Mr. Sujan Singh Chawla (DIN: 00333619), Non-Executive and Independent Director, resigned from the Company w.e.f July 08, 2016 and August 10, 2016 respectively. The Board has appreciated their contribution on Satin''s Board.

Mr. Ramesh Gururaj Dharmaji (DIN: 01186341) appointed by the Board of Directors of the Company as Nominee Director of Small Industries Development Bank of India (SIDBI) w.e.f. July 18, 2016.

Brief resume of Directors, their educational and professional qualifications, nature of their working experience, their achievements, name(s) of the companies in which they hold directorships, memberships and chairmanships in various Committees, their shareholding in the Company, relationship between directors inter-se are provided in Corporate Governance Report forming part of the Annual Report.

During the year 7 (Seven) Board Meetings were held. These Board Meetings were held on April 25, 2016, May 30, 2016, June 30, 2016, August 10, 2016, November 09, 2016, February 10, 2017 and March10, 2017.

PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS

During the year under review, the Board of Directors of the Company carried out Annual Evaluation of its own performance, its Committees and individual directors (including Independent Directors) based on criteria and framework adopted by the Board and in accordance with existing regulations. The manner of evaluation was conducted after consideration of parameters through set of questionnaire(s). The policy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) and Senior Management and other Employees contains the methodologies of evaluation criteria. The Board found its own performance of each Director individually and of its various Committees satisfactory.

STATEMENT ON DECLARATION "CERTIFICATE OF INDEPENDENCE" U/S 149 (6) FROM INDEPENDENT DIRECTORS

Pursuant to Schedule IV and Section 149(6) of the Companies Act, 2013, the Board has Independent Directors and there is an appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and duties effectively. The independent directors have submitted a declaration that the independent directors meet with the criteria of independence as required under Section 149(6) of the Companies Act, 2013.

DIRECTORS'' RESPONSIBILITY STATEMENT Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors hereby confirm:

1. That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

2. That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

3. That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. That the directors had prepared the annual accounts on a going concern basis;

5. That the directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

6. That 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.

INFORMATION ON MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL

There are no material orders passed by the regulators or courts or tribunals impacting the going concern status and Company''s operations in future.

RELATED PARTY TRANSACTIONS

During the financial year 2016-17, there is no materially significant Related Party Transaction with the Company''s Promoters, Directors, the Management or Relatives which may have potential conflict with the interest of the Company at large. The Company has also formulated a policy on dealing with the Related Party Transactions (including for material related party transactions) and necessary approval of the Audit Committee and Board of Directors were taken wherever required in accordance with the Policy. The details of such policies for dealing with all related party transactions are disseminated on the website of the Company, www.satincreditcare.com.

Particulars of Contracts or Arrangements with related parties referred to in Section 188(1) is given in Form AOC- 2 as Annexure-

II. Further, details of Related Party Transactions as required to be disclosed by Accounting Standard-18 on "Related Party Transactions" specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 are given in the Notes to the Financial Statements.

JUSTIFICATION FOR ENTERING INTO RELATED PARTY TRANSACTIONS

At the time M/s Taraashna Services Limited (TSL) was set up, NBFCs were neither permitted to act as Business Correspondent (BC) for Banks, nor were permitted to take a stake in a for-profit NBFC. Hence, due to regulatory constraints TSL was created, with no shareholding from SCNL. To avoid any conflict of interest and for the benefit of the minority shareholders of SCNL, given the common promoter in SCNL and TSL, the management team took a call to share some part of the TSL''s revenue with SCNL, irrespective of TSL''s profitability. The revenue sharing agreement was signed in FY13. In June 2014, the RBI (vide its circular no. RBI/2013-14/653 DBOD.No. BAPD.BC.122/122.01.009/2013-14 dated 24.06.2014) permitted banks to appoint Non-Deposit taking NBFC as their BCs. As per these new rules, microfinance institutions operating as NBFCs (NBFC-MFIs) could operate as BCs. This was done with a view to help extend banking services to remote areas. In view of the change in regulations and keeping interest of all stakeholders; your Company acquired 7,977,239 Equity Shares of TSL equivalent to 87.83 % stake of TSL. By virtue of acquisition of 7,977,239 Equity Shares, TSL became subsidiary of your Company. Further, Board of Directors of the Company had allotted 1,087,456 Equity Shares of Rs. 10 each at an issue price of Rs. 457.82 per share including premium of Rs. 447.82 per share on preferential basis to persons and entities belonging to Promoter and Non-Promoter group pursuant to swap of shares of the Company to the shareholders of M/s Taraashna Services Limited in accordance with the provisions of Chapter VII of SEBI (ICDR) Regulations, 2009.

Further, during the current financial year, your Company has planned to enter into new business segments that can be beneficial for the enterprise as a whole. In April 2017, the Company has incorporated a wholly owned subsidiary in the name of M/s Satin Housing Finance Limited (SHFL) with Authorized Capital of Rs. 150,000,000 and paid up Equity share Capital of Rs. 100,000,000 with the objective of balancing the risks of your Company by diversification into secured lending and also by diversification of its portfolio from purely rural towards rural/semi urban and urban markets. Company''s foray into the housing finance segment will enable the Company to have a diversified customer base and is in line with the Company''s strategy to diversify into other financial products.. Company''s entry into this new business segment and focus on affordable housing will provide another growth engine that will contribute towards the growth of the enterprise as a whole.

Further, the remuneration paid to Shri H P Singh, Chairman cum Managing Director and the sitting fee payment to Non-Executive Directors (other than Investor''s Nominee) for each Board/Committee meeting(s) attended are shown under Related party disclosures segment under "Notes to the account" of Balance Sheet in terms of Accounting Standard 18 issued by The Institute of Chartered Accountants of India.

AUDITORS & THEIR REPORTS Statutory Auditors & their Report

As per Section 139 of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014, the term of M/s. A.K. Gangaher & Co. (Firm Registration No. 004588N), Chartered Accountants, New Delhi as the Statutory Auditors of the Company expires at the conclusion of 27^th Annual General Meeting of the Company.

The Board of Directors of your Company has recommended appointment of M/s Walker Chandiok & Co LLP, Chartered Accountants (ICAI Registration 001076N/N500013) as the Statutory Auditors of the Company on the recommendation of the Audit Committee, for an initial term of 5 years in their meeting held on May 26, 2017. Accordingly, a resolution, proposing appointment of M/s Walker Chandiok & Co LLP, Chartered Accountants (ICAI Registration 001076N/N500013) as the Statutory Auditors of the Company for a term of five consecutive years i.e. from the conclusion of 27^thAnnual General Meeting till the conclusion of 32^ndAnnual General Meeting of the Company pursuant to Section 139 of the Companies Act, 2013 and the matter forms part of the Notice of the 27^thAnnual General Meeting of the Company. The Company has received their written consent and a certificate that they satisfy the criteria provided under Section 141 of the Act and that the appointment, if made, shall be in accordance with the applicable provisions of the Act and rules framed there under.

M/s. A.K. Gangaher & Co. over many years (since inception of the Company) have successfully met the challenges that the size and scale of the Company''s operations pose for auditors and have maintained the highest level of governance, ethical standards and quality in their audit. The Board placed on record its appreciation for the services rendered by M/s. A.K. Gangaher & Co. as the Statutory Auditors of the Company.

During the year under review, the Auditors had not reported any matter under Section 143 (12) of the Act, therefore no details are required to be disclosed under Section 134 (3)(ca) of the Act.

Secretarial Auditors & their Report

In terms of Section 204 of the Companies Act, 2013 and Rules framed there under and on the recommendation of the Audit Committee, the Board of Directors of the Company had appointed M/s S. Behera & Co. Company Secretaries (ICSI PCS Registration No. 5980) as the Secretarial Auditor of the Company for the financial year 2016-17. Secretarial audit report as provided by M/s S. Behera & Co. Company Secretaries is also annexed to this Report, in the prescribed Form No.-MR-3, is annexed as Annexure-III.

Any member interested in hard copy of the Secretarial Audit Report may inspect the same at the Corporate Office of the Company or write to the Company Secretary for a copy.

The Company has received consent from M/s S. Behera & Co. Company Secretaries, for their re-appointment and appointed them as Secretarial Auditor in Board meeting held on May 26, 2017 for the financial year 2017-18.

Qualifications in Audit Reports

Your Directors do not observe any qualification, reservation or adverse remark or disclaimer made by the statutory auditor in his report and by the company secretary in practice in his secretarial audit report.

AUDIT COMMITTEE

The Company has an Audit Committee in accordance with the provisions of Section 177 of the Companies Act, 2013 and in accordance with Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as per other applicable laws. All members of the Committee are financially literate within the meaning of the Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Chairman of the Committee was present at the last Annual General Meeting to answer the queries of the Shareholders. The scope of the activities of the Audit Committee is as set out in Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and read with Section 177 of the Companies Act, 2013 and other applicable laws are approved by Board of Directors of the Company. The composition of the Audit committee and the details of meetings attended by the Directors are provided in Corporate Governance Report Section of this Annual Report.

DIVIDEND

Directors of your Company have recommended a final dividend of Rs.24,448,630 (excluding dividend distribution tax) which is subject to your approval. The total dividend pay-out for the financial year will amount to Rs.24, 448,630. Further, in order to undertake and carry on future plans, it is necessary to conserve the resources. Your directors are of the opinion of retaining the profits for the year within the Company, and thus have not recommended any dividend on equity shares for the year ended March 31, 2017.

CORPORATE SOCIAL RESPONSIBILITY

The Board of Directors has constituted the Corporate Social Responsibility Committee vide resolution passed in its meeting held on May 26, 2014. As per Section 135 of the Companies Act, 2013, all companies having net worth of Rs. 500 Crore or more, or turnover of Rs.1, 000 Crore or more or a net profit of Rs. 5 Crore or more during any financial year are required to constitute a Corporate Social Responsibility (CSR) committee of the Board of Directors comprising three or more directors, at least one of whom will be an Independent Director. The CSR Committee vide its meeting dated November 07, 2016 approved and recommended to Board for its approval CSR policy with some necessary modifications in previously approved policy which indicates the activities to be undertaken by the Company as specified under Schedule VII and the rules made there under of Companies Act, 2013. Further, the Company in its Board meeting dated November 09, 2016 approved the same.

Further, the composition of the CSR committee and the details of meetings attended by the Directors are provided in Corporate Governance Report section of this Annual Report.

Now as per the requirement of Rule 8(1) of The Companies (Corporate Social Responsibilities) Rules, 2014 the Annual Report on CSR is annexed as Annexure IV to this report and the same is posted on the website of the Company i.e. www.satincreditcare.com.

E-VOTING

The Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the Notice. This is pursuant to Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014 and Regulation 44 of SEBI (Listing Obligations and Disclosures Requirements) Regulation 2015. The above Rule 20 of the Companies (Management and Administration) Rules, 2014 have been amended on March 19, 2015 to introduce a new concept of e-voting i.e. E-Voting at general meeting through an electronic voting system. To comply with the requirements of new Companies Act, 2013 and to ensure good governance for its members, your Company has provided e-voting facility for its general meetings to enable its members to participate in the voting electronically. The instruction(s) for e-voting for ensuing Annual General Meeting is also provided with notice to shareholders of this Annual Report. The Company has signed necessary agreements with National Securities Depository Limited and Central Depository Services Limited to facilitate e-voting for member approval in their general meetings or through postal ballots.

EMPLOYEES STOCK OPTION PLAN

In order to develop and implement a long term incentive program to attract, motivate and retain the talent in a competitive environment, the Company has formulated and implemented "Employees Stock Option Schemes (the Schemes)" which provides for grant of equity shares of Satin Creditcare Network Limited to employees of the Company. These schemes provide for grant of options to employees of the Company that vest in a graded manner and that are to be exercised within a specified period.

The Company had allotted 425,000 equity shares to Satin Employees Welfare Trust at Rs. 20 each (including premium of Rs. 10 each) on November 27, 2009. The Company had further allotted 100,000 shares to Satin Employees Welfare Trust at Rs. 22 each (including premium of Rs. 12 each) on June 22, 2010. The Company had further allotted 150,000 shares to Satin Employees Welfare Trust at Rs. 25 each (including premium of Rs. 15 each) on April 21, 2011. These shares were allotted at a value which is over the fair market value of these share at the time of allotment and thus no expense has been recognized. As against 425,000 Equity Shares issued to Satin Employees Welfare Trust under Satin ESOP 2009, the Company granted 150,000 Options to two employees of the company as per the terms of Satin ESOP 2009 on January 12, 2010. These options are vested and exercised as per terms set out under ESOP 2009. Further, the Company granted 98,300 Options out of remaining 275,000 Equity Shares to various employees as per the terms of Satin ESOP 2009 on December 02, 2013. Out of 98,300 shares granted, 29,090 options were vested and 25,824 were exercised on December 02, 2014 and 29,100 options were vested and 22,633 were exercised on December 03,

2015 and 29,100 options were vested and 27,243 were exercised on December 03, 2016. The exercised shares are in lock in period of one year from the date of transfer of shares from Satin Employees Welfare Trust to employees, further, the Company granted 87,900 Options out of remaining 199,300 Equity Shares to various employees as per the terms of Satin ESOP 2009 on December 02, 2016.

DISCLOSURE UNDER SECTION 62 OF THE COMPANIES ACT, 2013, RULE 12 OF THE COMPANIES (SHARE CAPITAL AND DEBENTURES) RULES, 2014 AND SEBI (SHARE BASED EMPLOYEE BENEFITS) REGULATIONS, 2014 FOR THE YEAR ENDED MARCH 31, 2017

A. The Board of Directors of your Company has approved an Employees'' Stock Option Scheme (ESOS) during the Year 2009 and 2010 in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (hereinafter referred to as "SEBI Regulations") with the objective of strengthening employee bonds with the Company and creating a sense of ownership. Your Board felt it appropriate to extend ESOPs to permanent employees in the management staff in order to motivate and retain the best talent. Further, during the year the Company has not made any amendments in the scheme. Your Company is providing below disclosures in terms of applicable laws.

A. Relevant disclosures in terms of the '' Guidance note on accounting for employee share-based payments'' issued by The Institute of Chartered Accountants of India (ICAI) or any other relevant accounting standards as prescribed from time to time.

1. The Company had ''Nil'' share-based payment arrangements during the year ended March 31, 2017.

2. The estimated fair value of each stock option granted in the general employee stock option plan is Rs.420.75. This was calculated by applying Black Scholes pricing model. The model inputs were as follows

Inputs	Satin ESOP 2009
Inputs	First Grant	Second Grant	Third Grant
Share Price at grant Date	N.A	N.A	N.A.
Exercise price	20.00	20.00	20.00
Expected Volatility	-	-	-
Expected Dividends	-	-	-
Contractual Life	1.17	2.17	3.17
Risk Free Interest Rate	6.09%	6.04%	6.03%

3. The estimated fair value of each share granted in the executive stock plan is Rs.420.75.

4. Other information regarding employee share-based payment plans is as below:

Particular	Year ended March 31, 2017 (Amount in Rs.)	Year ended March 31, 2016 (Amount in Rs.)
Expense arising from employee share-based payment plans	5,203,662.00	3,780,469.00
Expense arising from share and stock option plans	Nil	Nil
Closing balance of liability for cash stock appreciation plan	Nil	Nil
Expense arising from increase in fair value of liability for cash stock appreciation plan	Nil	Nil

B. Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations shall be disclosed in accordance with ''Accounting Standard 20 - Earnings Per Share'' issued by ICAI or any other relevant accounting standards as prescribed from time to time. Diluted EPS is Rs. 7.05.

Effects of Share Options on Diluted Earnings per Share (Accounting year April 01, 2016 to March 31, 2017)

Net profit for the year ended 2017	Rs.244,992,050.45
Weighted average number of equity shares outstanding during the year ended 2017	34,343,902 Shares
Average fair value of one equity share during the year ended 2017	Rs.420.75
Weighted average number of shares under option during the year ended 2017	421,392 Shares
Exercise price for shares under option during the year ended 2017	Rs.20.00

Computation of earnings per share

Particulars	Earnings (Amount in Rs.)	Shares	Earnings Per Share (Amount in Rs.)
Net profit for the year ended 2016 (Rs.)	244,992,050.45	-	-
Weighted average number of shares outstanding during year ended 2016	-	34,343,902	-
Basic earnings per share (Rs.)	-	-	7.13
Number of shares under option	-	449,300	-
Number of shares that would have been issued at fair value:	-	(27,908)	-
Diluted earnings per share (Rs.)	244,992,050.45	34,765,294	*7.05

*Average fair value of one equity shares for the year ended 2017- Rs. 420.75

C. Details related to ESOS

(i) A description of each ESOS that existed at any time during the year, including the general terms and conditions of each ESOS

S. No.	Particular	Satin ESOP 2009 (Remarks)	Satin ESOP I 2010 (Remarks)	Satin ESOP II 2010 (Remarks)
a)	Date of shareholders'' approval	June 01, 2009	March 26, 2010	December 15, 2010
b)	Total number of options approved under ESOS	425,000	100,000	150,000
c)	Vesting requirements	-	-	-
d)	Exercise price or pricing formula	Rs. 20/- being the Fair Value of the shares of the Company (Computed on the basis of Audited result FY 2008-09).	Rs. 22/- being the Fair Value of the shares of the Company. (Computed on the basis of Audited result FY 2009-10)	Rs. 25/- being the Fair Value of the shares of the Company. (Computed on the basis of Audited result FY 2009-10)
e)	Source of shares (primary, secondary or combination)	Primary	Primary	Primary
f)	Variation in terms of options	Not Applicable	Not Applicable	Not Applicable

(ii) Method used to account for ESOS - Fair Value (Black Scholes Model).

(iii) Option movement during the year (For each ESOS):

Particulars	Satin ESOP 2009 (Remarks)	Satin ESOP I 2010 (Remarks)	Satin ESOP II 2010 (Remarks)
Number of options outstanding at the beginning of the period	226,543	100,000	150,000
Number of options granted during the year	87,900	0	0
Number of options forfeited / lapsed during the year	11,167	0	0
Number of options vested during the year	29,110	0	0
Number of options exercised during the year	27,243	0	0
Number of shares arising as a result of exercise of options	27,243	0	0
Money realized by exercise of options (INR/Rs.), if scheme is implemented directly by the company	Rs. 544,860	0	0
Loan repaid by the Trust during the year from exercise price received	Rs. 544,860	0	0
Number of options outstanding at the end of the year	199,300	0	0
Number of options exercisable at the end of the year	26,200	0	0

(iv) Weighted-average exercise prices:

- When the exercise price is equal/exceeds to market price.

- When the exercise price is less than market price- Rs. 20.00.

Weighted-average fair values

- When the exercise price is equal/exceeds to market price.

- When the exercise price is less than market price- Rs. 420.75

(v) Employee wise details (name of employee, designation, number of options granted during the year, exercise price)

(a) Senior managerial personnel

Details of Shares vested to Senior Managerial Personnel during this financial year
S. No.	Name of Employee	Designation	Number of Option granted during the year	Exercise Price (Amount in Rs.)
1	Choudhary Runveer Krishanan	Company Secretary & Compliance Officer	6,000	Rs. 20 each
Total			6,000

(b) Following employees has received a grant in the reporting year of option amounting to 5% or more of option granted during that year;

S. No.	Name of Employee	Designation	No of Options granted
1.	Mr. Dev Verma	Chief Operating Officer	12,000
2.	Choudhary Runveer Krishanan	Company Secretary & Compliance Officer	6,000
3.	Mr. Manoj Kumar	Deputy Chief Operating Officer	6,000
4.	Mr. Mukund Madhav	Deputy Chief Operating Officer	6,000
5.	Mr. Ashish Gupta	Head-Finance	6,000
6.	Mr. Kanhaiyalal Brijkishore Agarwal*	Head-Internal Audit & Risk	6,000

*Note: Resigned on May 05, 2017

(c) There is no identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant.

(iv) A description of the method and significant assumptions used during the year to estimate the fair value of options including the following information:

(a) the weighted-average values of share price, exercise price, expected volatility, expected option life, expected dividends, the risk-free interest rate and any other inputs to the model;

(b) The method used and the assumptions made to incorporate the effects of expected early exercise were,

(c) How expected volatility was determined, including an explanation of the extent to which expected volatility was based on historical volatility;

(d) Whether and how any other features of the option grant were incorporated into the measurement of fair value, such as a market condition.

The details pursuant to SEBI (Share Based Employee Benefit) regulations, 2014 has been placed on the website and web link of the same is www.satincreditcare.com.

POLICIES Vigil Mechanism/Whistle Blower Policy:

The Company has established a vigil mechanism policy vide incorporating and adopting a Whistle Blower Policy for directors & employees pursuant to the requirement under Section 177(9) of Companies Act, 2013 read with Rule 7 of Companies (Meeting of Board & its Powers) Rules, 2014 and pursuant to Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. The aforesaid policy was revised and adopted on February 10, 2016 in view of enactment of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The policy empowers the blower to report concern about unethical behavior, actual or suspected fraud or violation of the Company''s code of conduct or ethics policy. The detailed vigil mechanism is communicated to all the directors and employees and is also disclosed on the website of the Company www.satincreditcare.com. The employees are free to report violations of laws, rules, regulations or unethical conduct to the whistle and ethics officer of the Company

Policy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) & Senior Management and other Employees:

In pursuance of the Company''s policy to consider human resources as its invaluable assets, to pay equitable remuneration to all Directors, Key Managerial Personnel (KMP), Senior Management and other Employees of the Company, to have diversified Board, to harmonize the aspirations of human resources consistent with the goals of the Company and in terms of Section 178 of the Companies Act, 2013 and Regulation 19 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as amended from time to time and Rules/Regulations/Guidelines/Notifications issued by Securities and Exchange Board of India (SEBI) from time to time, this policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management which includes within its a policy for having a Diversified Board and Familiarization Programme for Independent Director has been formulated and approved by the Board of Directors vide its meeting dated February 09, 2015. The aforesaid policy was last revised on February 10, 2016 in view of enactment of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This policy shall act as a guideline for determining, inter-alia, qualifications, positive attributes and independence of Directors, diversification of the Board, matters relating to the remuneration, appointment, removal and evaluation of performance of the Directors, Key Managerial Personnel, Senior Management and other Employees of the Company. The Company shall periodically conduct familiarization Programme for the Independent Directors, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc. The details of such familiarization programmes are disclosed on the Company''s website i.e., www.satincreditcare.com.

Corporate Social Responsibility Policy:

Your Company has recognized importance of "Corporate Social Responsibility" (hereinafter referred to as ''CSR'') therefore it has vide resolution passed in its Board Meeting dated May 26, 2014 has constituted the Corporate Social Responsibility Committee. During the year under review CSR Committee vide its meeting dated November 07, 2016 again reviewed and adopted the CSR policy with required modification. The Board of Directors of the Company adopted revised CSR policy on November 09, 2016 pursuant to the requirement of Section 135(1) & (3) of the Companies Act, 2013 along with The Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time. In the aforesaid backdrop, policy on Corporate Social Responsibility of the Company is broadly modified taking into account the welfare measures for the community at large, so as to ensure the poorer section of the society deriving the maximum benefits. It also aims to contribution to the society at large by way of social and cultural development, healthcare, imparting education, training and social awareness especially with regard to the economically backward class for their development and generation of income to avoid any liability of employment. With a vision of transforming the lives of people from socially weaker and economically disadvantaged sections of society, the Company is committed to ''building possibilities'' to enable them to improve by supporting them through programs in the domains of education, healthcare and environment. As a part of its commitment to Corporate Social Responsibility, during the year, your Company initiated projects for health improvement by contributing to eligible trust and other agencies.

During the year under review, your Company has spent Rs.1.05 Crores on CSR projects/programs. Your Company is in compliance with the statutory requirements in this regard.

Risk Management Policy:

The Company has framed a policy as required under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 to evaluate and monitor company risks and develop comprehensive strategy to mitigate various type of risks and take corrective actions in order to prevent adverse events. The risks involved are Financial Risks, Operational Risks and External Risks. The Internal Audit Team directly reports to the Audit Committee of the Company. Significant audit observations and follow up actions thereon are also reported to the Audit Committee. The Audit Committee reviews adequacy and effectiveness of the Company''s internal control environment and monitors the implementation of audit recommendations, including those relating to strengthening of the Company''s risk management policies and systems.

Related Party Transaction Policy:

Related Party Transaction Policy adopted by the Board of Directors of the Company vide its meeting dated February 09, 2015 pursuant to the compliances under the provisions of the Section 188 of the Companies Act, 2013 read with Rule 15 of The Companies (Meetings of Board and its Powers), Rules, 2014 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. However, same was reviewed and approved by the Board on February 10, 2017 to enhance the objective behind framing the policy and to ensure that Related Party Transactions are managed and disclosed in accordance with the strict legal and accounting requirements to which the Company is subject.

All Related Party Transactions shall require approval of Audit Committee and said Committee will review and may amend this policy from time to time. The policy on Related Party Transaction is posted on the website of the Company i.e. www.satincreditcare.com.

Sexual harassment policy for women under The Sexual Harassment of Women at workplace (prevention prohibition and Redressal) Act, 2013:

Your Company is in compliance with the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 and had adopted a Sexual Harassment Policy on February 09, 2015 which ensure a free and fair enquiry process with clear timelines. Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

MANAGEMENT DISCUSSION AND ANALYSIS

Overview

Your Company is the fourth largest microfinance institution in terms of Gross Loan Portfolio (GLP) as on December 31, 2016 (Source: MFIN, Micrometer Dec 2016)) with a strong presence in 16 states. As of March 31, 2017, your Company had 618 branches and approximately 2,298,007 active clients, compared to 431 branches and 1,851,113 active clients as of March 31, 2016, a growth of 48 % and 24% respectively. Satin started its operations in 1990 as a provider of individual and small business loan and savings services to urban shopkeepers. The Company was registered as an NBFC with the RBI in 1998 and converted into an NBFC-MFI in November, 2013. The business of your Company is primarily based on the joint liability group model of lending ("JLG Model") for providing collateral free, microcredit facilities to economically active women in both rural and semi-urban areas, who otherwise have limited access to mainstream financial service. The Company also offer loans to individual businesses, loans to micro, small and medium-sized enterprises ("MSMEs"), product loans for financing purchase of solar lamps and loans for development of water connection and sanitation facilities. The Company has incorporated a wholly owned subsidiary in the name of "Satin Housing Finance Limited" ("SHFL"). SHFL is in the process of filing an application with the ''National Housing Bank'' ("NHB") for registration to commence business relating to housing finance.

Resources and Liquidity

From fiscal 2016 to 2017, the Company has its (i) total income increased from Rs. 558.52 Crores to Rs. 776.67 Crores, a growth of 39.06%; (ii) profit after tax from continuing operations decreased from Rs. 57.94 Crores to Rs. 24.50 Crores, a decline of 57.71%

(iii) net worth increased from Rs. 324.01Crores to Rs. 662.22 Crores, a growth of 104.38%. Your Company''s funding requirement has increased with the growth of its business. Its total borrowings increased by 40% from Rs.2,748.32 Crore as on March 31, 2016 to Rs. 3,855.35 Crore as on March 31, 2017. Satin meets its funding requirements through a diverse set of sources which includes Loans from Banks and Financial Institutions, Non-Convertible Debentures, External Commercial Borrowings, Commercial Papers and other Sub-Debts. Satin has also securitized some of its future receivables resulting in a reduction in its debt servicing cost. Satin''s capital needs have also been supplemented by equity infusions, and the Company has raised several rounds of Equity Capital with the continued support of its existing and new investors. Satin''s continued business growth, liquidity and profitability will depend on its ability to obtain adequate funding on acceptable terms from relatively stable and cost-effective sources of funds, which in turn depends on its financial performance, capital adequacy levels, credit ratings and relationships with lenders and investor. An event of default, a significant negative ratings action by a rating agency, an adverse action by a regulatory authority or a general deterioration in prevailing economic conditions that constricts the availability of credit may increase Satin''s cost of borrowings and make it difficult for the Company to access financing in a cost effective manner.

Nature of Business

Your Company''s operations are spread across 16 states and union territories in India including Uttar Pradesh, Bihar, Madhya Pradesh, Punjab, Uttarakhand, Rajasthan, Haryana, Maharashtra, Delhi and NCR, Jharkhand, Chhattisgarh, Gujarat, West Bengal, Jammu and Kashmir, Himachal Pradesh and Chandigarh, with a focus on rural and semi urban areas. Satin has adopted a client centric operations methodology that involves direct contact with clients through group trainings and various meetings of group members with center leader which occur at regular intervals. The Company''s operations methodology also includes various pre-defined criterions for area selection, village selection and client selection which we believe helps us mitigate and minimize our operational risks. It has been our strategy to maximize our reach to financially excluded population, which we intend to achieve with the support of our technology-enabled business model. As a part of our effort to improve efficiency and reduce business risks, we are moving towards cashless collections in partnership with ItzCash, a payment solutions company.

Your Company has recently acquired TSL as subsidiary, pursuant to a special resolution passed by the shareholders on July 30, 2016. TSL acts as a business correspondent for banks and provides similar services to other financial institutions in rural and semi-urban areas. As on March 31, 2017, TSL has 155 branches across Madhya Pradesh, Gujarat, Bihar, Rajasthan, Chhattisgarh, Maharashtra, Punjab and Uttar Pradesh. As on March 31, 2017, TSL has provided services in respect of outstanding gross loans aggregating to Rs.449.76 Crores. TSL has partnered with four private sector banks and two NBFCs to provide such services and seeks to expand its association with other banks and financial institutions. The Board of Directors of the Company vide its approval through circulation on August 30, 2016, allotted 1,087,456 Equity Shares of Rs. 10/- each at an issue price of Rs. 457.82 per share including premium of Rs. 447.82 per share on preferential basis to persons and entities belonging to promoter and nonpromoter group pursuant to swap of shares of the Company to the shareholders of M/s Taraashna Services Limited in accordance with the provisions of Chapter VII of SEBI (ICDR) Regulations, 2009.

Further, the Company has significantly increased its branch network and intends to continue adding new branches during the current financial year. Company''s total branches increased form 431 in fiscal 2016 to 618 in fiscal 2017, a growth of 48%. Company''s current operations are focused in certain regions in India, namely Uttar Pradesh, Madhya Pradesh, Bihar and Punjab. Your Company intends to further increase its penetration in some of these regions as well as expand in other states in India where it historically had no operations. Such further expansion will increase the size of its business as well as the scope and reach of its operations and will involve some start-up costs to establish such branches.

As of March 31, 2017, Satin''s long term borrowing was Rs. 2,020.12 Crores and short term borrowing was Rs. 167.56 Crores, compared to long term borrowing of Rs. 1333.49 Crores and short term borrowing of Rs. 144.71 Crores as of March 31, 2016. Total borrowings of the Company as at March 31, 2017 include subordinate debt of Rs. 249 Crores compared to subordinate debt ofRs. 162.22 as of March 31, 2016.

In over 26 years of operation, Satin has developed partnerships with over 77 public sector banks, private sector banks, foreign banks and other domestic and overseas financial institutions. During the year, the Company has been availing various credit facilities from Banks, domestic and international lenders and from institutions for its microfinance operation which is the main activity of the Company.

Your Company has also raised Rs. 250 Crores of Equity Capital by way of Qualified Institutional Placement and had allotted 4,529,970 Equity Shares of Rs. 10/- each to Qualified Institutional Buyers (QIBs) at an issue price of Rs. 551.88 per Equity Share on October 03, 2016. In view of expanding business operations and to augment capital base to meet capital requirement also to maintain resource liquidity your Company also raised Equity capital by way of Preferential Allotment of Equity Shares Rs. 10/each to "Asian Development Bank" (ADB) at an issue price of Rs. 416.67 per shares on April 21, 2017 and simultaneously issue and allot Fully Convertible Warrants to an entity in the Promoter Category of the Company at an aggregate amount of Rs. 30 Crores at an issue price of Rs. 455.45. Further, out of entire consideration payable towards Equity Warrants i.e. Rs. 30 Crores the Company has received Rs. 75,000,000/- i.e., 25% of issue price before allotment of Equity Warrants. Balance 75% shall be infused within 18 months at the time of Conversion of equity warrants.

Credit Analysis and Research Limited (CARE) had upgraded the Long Term Facilities Rating of SCNL to CARE A- (Care A minus) aggregating Rs.2,200 Crores in the month of October, 2016. Further in the month of March, 2017 the rating was revised to BBB attached with a negative outlook

The Company has been awarded by the Chamber of Indian Micro Small and Medium Enterprises ("CIMSME") for "MSME Banking & NBFC Excellence Awards-2016" as the Best NBFC-MFI (NBFC-MFI Category) and as CSR Initiatives & Business Responsibility Award- Runner-up- (NBFC-MFI Category) on January 12, 2017.

The overall liquidity and funding position of the Company is comfortable. The Company has been regular in repayment to all its lenders and has excellent relationship with all the financial institutions and banks.

Industry Scenario

The MFIs have built a large distribution network in urban and rural India which they are leveraging to distribute financial and non-financial products of other institutions to its members at a cost lower than competition. While these MFIs continue to focus on their core business of providing micro-credit services, they seek to diversify into other businesses by scaling up certain pilot projects involving fee-based services and secured lending, and will gradually convert them into separate business verticals or operate them through subsidiaries. The Reserve Bank of India (RBI) has issued a number of circulars and provided the required regulatory clarity. A major outcome of the guidelines was the involvement of credit bureaus to record and monitor the creditworthiness of borrowers. More and more use of Aadhaar as KYC by the industry. RBI had issued license for the formation of SFBs and payment banks to some NBFC-MFI and other entities. We feel that there will be more opportunities for NBFC-MFIs in the financial inclusion space.

During Quarter third of the financial year under review Government of India on November 8, 2016, ceased to recognize Rs. 500 and Rs. 1000 rupee denominated bank notes as legal tender with effect from November 9, 2016.

Impact of Demonetization:

MFI sector adversely affected due to demonetization and due to dependency on cash transaction. During the year under review, your Company has done satisfactorily on all parameters and grown the business considering the challenges posed by demonetization. As your Company is in microfinance business, accordingly largely depends on cash transactions. Due to demonetization there is some negative impact on operations of Company post demonetization. Although RBI suggested number of measures to minimize the negative impact of demonetization and also came up with the notification dated December 21, 2016 and December 28, 2016 with respect to provisioning norms which stated that MFIs has permitted to defer the classification of loan as substandard by additional 90 days during demonetization period to minimize the impact of the same. This was misinterpreted by the local media and by the local agents which led to rumors of loan waivers / re-schedulements and that fuelled by hopes of loan waivers. The overall caps on withdrawal of cash from bank accounts also impacted disbursements and collection. Your Company worked closely with MFIN Focused Action Task Force and met with the local administration in various states to help and educate the customers about the MFI industry and to dispel the rumors aired. Your Company has also educated the customers and helped them to fill the forms for exchange of old currency notes. The Company has also started disbursements to existing borrowers from the amount collected and started digitization drive by rolling out TABs across all branches of the Company. Further, due to increased negative impact of Demonetization, your company has also initiated cashless collections and disbursement to boost the collection and disbursement during demonetization period and to minimize the operational cost.

While the Board of your Company feels that in long run, demonetization will be beneficial for the growth of the MFI sector and the Country with curbs on corruptions, money laundering and by ensuring transparency in future, there are also many positives for the MFI sector from demonetization, for instances:

- Budgetary boost for the sector: Allocation for MUDRA scheme doubled, and SIDBI refinancing for unsecured loans at reasonable rates.

- Regulatory clarity: Fear of state intervention for regulated MFIs has been put to rest - RBI is the sole regulator for companies registered as NBFC-MFIs

- Recognition from Central and State governments for the vital role played by MFIs in providing timely credit for the rural population

- Funding available for large established players: Debt funding is available at attractive rates as banks are flushed with liquidity

- Greater awareness about the MFI sector: The event resulted in a massive educational exercise across all levels and all strata of the society

- Impetus on digitization and cashless transactions to benefit all stakeholders Business Review

Despite the negative impact of demonetization on company''s operations, your Company has done satisfactorily during the financial year 2016-17. The Company has disbursed 1,566,341 loans totaling Rs. 3,593.64 Crores during the year ended March 31, 2017 against Rs. 3,606.11 Crores during the previous year. The net outstanding portfolio (including managed portfolio and net of provisions) as at March 31, 2017 is Rs. 3,555.98 Crores. Presently, total number of branches are 618 as on March 31, 2017 as against 431 as on March 31, 2016.

Post demonetization, from November 09, 2016 to March 31, 2017, the Company has raised Rs. 1348 Crores through Debt/NCDs including Sub Debt of Rs. 35 Crores.

The Company has an experienced and stable management team and Board of Directors. The Company is hopeful of performing well during the current year.

Opportunities

We believe there is significant business opportunity and regulatory push in the areas, with the RBI actively supporting NBFC-MFIs, the business correspondent model, MSME segment and affordable housing finance etc. as a means to achieve the objective of financial inclusion for all. We believe there is significant potential for growth in the north, central and eastern states in India, which remain under served by financial institutions or other MFIs. Our primary strategy is to continue to leverage our experience, leadership position and presence in these markets, where there is substantial need, demand and opportunity for microfinance. We intend to expand our reach and operations in the states where we are currently present, both by increasing business transacted through existing branches, and by establishing new branches across the north, central and eastern regions of India. Our primary objective is to have diversified presence across geographies in India with significant growth opportunities for microfinance, which we believe will allow us to maintain stable and sustainable growth of our business and mitigate political and state-specific risks. In addition, our focused expansion in regions with limited availability of financial services will enhance financial inclusion and have a positive social impact, thereby creating goodwill for our Company, which we believe will further our growth. We will continue to evaluate opportunities for alliances, collaborations and partnerships, that meet our strategic and financial return criteria, and to strengthen our portfolio of product.

Challenges

While the regulatory environment has improved the stakeholder''s confidence still continue to be exposed to inherent risks in business model. During Quarter third of the financial year under review Government of India on November 8, 2016, ceased to recognize Rs.500 and Rs.1000 rupee denominated bank notes as legal tender with effect from November 9, 2016. Due to this, there is de-growth in loans by 5% in terms of volumes and 7% in terms of values compared with the Second Quarter of FY 2016-17 and significant downfall in disbursements also (by 48% in terms of volumes and 52% in terms of value) in the industry as a whole (Source: Report on Demonetization-MFIN). Although Reserve Bank of India came up with the notification dated December 21,

2016 and December 28, 2016 with respect to provisioning norms this stated that MFIs has permitted to defer the classification of loan as substandard by additional 90 days during demonetization period. Given that the microfinance borrowers belong to low income segment, customers are more prone to default. Moreover, with MFI operations concentrated in specific geographies, geographic concentration risks persist, these risks include natural disasters, social unrests, or political upheavals. As the Company target to tap the opportunities by entering into new geographical areas, the Company encounter with some key challenges with respect to meeting its expansion plans. Considering changes in state laws and with new partners in industry, opening of new branches and split of existing branches is challenging task before the management. Further, as industry is looking for more partners in coming time, talent acquisition and retention is also one of the major challenges. Training and development for employees and security risk are other potential challenge for the management. We are in the process of changing the entire technology platform for the company by providing tablets to all our field staff. This will bring lot of operational efficiency in the system. However; training a large workforce is a challenging task.

Outlook

The overall outlook for the Microfinance Industry has improved during the financial year 2016-17. There is greater emphasis today on credit score prior to disbursement of loans, and subsequent data sharing with credit bureaus. The credit bureau checks enable MFIs to assess the extent of leverage of prospective customers, and their repayment track record. The Microfinance Institutions Network ("MFIN") was officially recognized as a self-regulatory organization ("SRO") for NBFC Microfinance Institutions in India in June 2014. As an SRO, MFIN has been authorized by the RBI to exercise control and regulation on its behalf in ensuring compliance to regulatory prescriptions and the industry code of conduct. MFIN''s role as SRO also includes research and training responsibilities and submission of MFI financials to the RBI. With various schemes launched by Government for financial inclusion there are greater opportunities in microfinance sectors in the years to come. The focus of government on digital transaction will help in bringing down the operating and administrative cost and in long run, digitalization in transaction will bring transparency and good governance in financial system.

On the regulatory side, the Ministry of Corporate Affairs (MCA) vide its notification dated February 16, 2015, and amendments thereon from time to time, provided the road map for Companies (Indian Accounting Standards) Rules, 2015 (''Ind AS Rules/Ind-AS''). For FY 2016-17, Non-Banking Finance Companies (NBFCs) are not required to apply Ind AS. The Company has its applicability from FY 2018-19 with the comparative figures for FY 2017-18. The other important reform on indirect tax regime is ''Goods and Service Tax'' which will subsume various indirect taxes including central excise duty, services tax, additional customs duty, surcharges and state-level value added tax. Your Company is looking forward to enhanced challenges and increased opportunity from such regulatory reforms.

Risk & Concerns

As you may aware that your Company is exposed to financial, operational and political risks. Our financial performance is exposed to interest rate risk, and an inability to manage our interest rate expenses may have a material adverse effect on our business prospects and result of operations. Our microfinance loans are unsecured and therefore exposed to operational and credit risks. If we are unable to control the levels of our NPAs in future, our financial condition and result of operations may be adversely affected. Further, our clients mainly consist of low income generating women who are economically active and who have limited access to mainstream financial service. While we have developed an operations methodology pursuant to which we follow specific client selection criteria and ensure strict adherence to our internally developed risk policy framework, our clients may, at times, not be able to provide us with accurate or complete information, which may impact our clients sourcing and KYC procedures. Microfinance poses unique risks not generally associated with other forms of lending since it involves transactions with relatively high risk borrowers, and, as a result, we may experience increased levels of nonperforming loans and related provisions and write-offs that negatively impact our results of operations. Our clients are typically poor and illiterate women who have limited sources of income, savings and have limited access to formal banking channels, and therefore may not have any credit history. As a result, our borrowers pose a higher risk of default than borrowers with greater financial resources and more established credit history and better access to employment opportunities and social services. We have also recently introduced MSME financing and venturing in to housing finance business through a wholly owned subsidiary for which we do not have past data on the borrower''s behavior.

While we believe we have adequate risk management controls and have standardized operations methodologies to confirm the creditworthiness of clients, some of our clients may be able to furnish very limited information for us to be able to make accurate assessment. Additionally, our Subsidiary TSL, in its ordinary course of business, has entered into service agreements with financial institutions and banking companies, which require TSL to undertake certain default obligations, specified under the terms of the agreements if the borrowers default in payment of loan over a specified number of days. We require certain statutory and regulatory approvals and licenses for conducting our business and an inability to obtain or maintain such approvals and licenses in a timely manner, or at all, may adversely affect our operations. The industry in which we operate is highly regulated. Regulations governing us may in future become more stringent and onerous and the changes introduced may adversely affect our business prospects and financial performance. An inability to manage our growth or our proposed expansion activities, including new financial products or businesses, could disrupt our business and reduce our profitability. We operate in a highly competitive market and face competition from the organized and the unorganized sector across as well as from state-sponsored social programs, which could adversely affect our business prospects and financial performance. We face significant competition from other MFIs, non-MFI NBFCs, banks and other financial institutions. Our clients are also prone to borrowing from unregulated local money lenders and non-institutional lenders which may lend at higher rates of interest. The cost and availability of capital is dependent, among other factors, on our short-term and long-term credit ratings.

As on March 31, 2017, we had a network of 618 branches spread across 16 states and union territories in India. As a consequence of a large branch network, we may also be exposed to certain risks, including, amongst others:

- Difficulties arising from operating a large and multi-location organization;

- Difficulties arising from coordinating and consolidating corporate and administrative functions;

- Delay in transfer of data from various location to the management;

- Higher technology support services cost to achieve last mile connectivity and operational risks including integration of internal controls and procedures;

- Failure to efficiently and optimally allocate management, technology and other resources across our branch network;

- Failure to manage third-party service providers in relation to any outsourced services;

- Difficulties in the integration of new branches with our existing branch network;

- Difficulties in supervising local operations from our centralized locations;

- Difficulties in hiring skilled personnel in sufficient numbers to operate the new branches locally and management to supervise such operations from centralized locations;

- Failure to maintain the level of client service at all branches; and

- Unforeseen legal, regulatory, property, labour or other issues

To prepare for these risks, Company usually hold in reserve certain percent of assets in cash and in short-term assets. The Company maintains reserves and provisions in its financials for meeting expected or unexpected future contingencies. The Company follows a conservative financial approach by following prudent business and risk management practices.

Your Company is subject to various reporting requirements laid down by RBI including annual filing of certificate from the statutory auditor in relation to compliance with the conditions stipulated for an NBFC-MFI, quarterly return on branch information, reporting on change in directors, auditors, etc. and other reporting requirement under laws applicable to companies in India including under the Indian foreign exchange regulations. We are also required to comply with the directions applicable to systemically important NBFCs. In recent years, existing rules and regulations have been modified, new rules and regulations have been enacted and reforms have been implemented which are intended to provide tighter control and more transparency in India''s asset finance sector. We believe we are materially in compliance with regulations applicable to our Company as an NBFC listed Company.

Adequacy of internal controls

The Company has proper and adequate internal controls systems to ensure that all activities are monitored and controlled against any unauthorized use or disposition of assets, misappropriation of funds and to ensure that all the transactions are authorized, recorded, reported and monitored correctly. For the purpose of correctness and accuracy the process of job rotation is followed in different departments. The Company has adequate working infrastructure having computerization in all its operations including accounts and MIS. The Company is in the process of implementing new technology which will help to have accurate and timely information to take informed decisions.

Company''s Internal Audit department has an annual audit plan based on the risk profile of business activities of the organization. The Company has established an Audit Committee to review and strengthen the adequacy of internal control. The Audit Committee also meet the Company''s Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system, compliance to accounting policies and procedures, the adequacy and effectiveness of the internal control and systems followed by the Company. The Management acted upon the observations and suggestions of the Audit Committee. The Internal Auditors of the Company conduct audit of various departments based on an annual audit plan covering key area of operations and reviews and evaluates the adequacy and effectiveness of internal controls, ensuring adherence to operating guidelines and systems and recommending improvements for strengthening them.

Human Resource Development

The Company has young, capable, experienced and dedicated manpower and various professionals support from in house and external sources with expertise in different areas leading the growth of Company towards better operational and financial position. The number of employees as at March 31, 2017 stood at 5,801 (Previous Year 3864).

DEPOSITS

The Reserve Bank of India in exercise of its powers under The Reserve Bank of India Act, 1934, has granted NBFC-MFI (Serial No. B-14.01394) status to the Company and the Company has no public deposit. The Board of Directors of the Company has passed a resolution that the Company will not accept public deposit during 2017-18.

RESERVE BANK OF INDIA-REGISTRATION AND DIRECTIONS

Your Company has been following all relevant guidelines issued by Reserve Bank of India from time to time. Further, your Company has Capital Adequacy Ratio of 24.14% as on March 31, 2017. The Non-Banking Financial Company - Micro Finance Institutions (Reserve Bank) - Directions, 2011 ("NBFC-MFI Directions") were issued in December 2011 by the Reserve Bank of India (RBI) pursuant to the Reserve Bank of India Act, 1934 ("RBI Act"). The Company satisfies these conditions and was reclassified as a Non-Banking Financial Company - Micro Finance Institution ("NBFCMFI") on November 6, 2013. As a result, the Company is required to comply with the NBFC-MFI Directions. These Directions include guidelines on qualifying assets criteria, asset classification and provisioning, pricing of credit, capital adequacy, multiple lending, over-borrowing, compliances and fair practices. The Company generally complies all conditions and directions issued by RBI from time to time.

CORPORATE GOVERNANCE

As required under Regulation 17 to Regulation 27 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Uniform Equity Listing Agreements executed with the Stock exchanges, a detailed report on corporate governance has been provided in a separate Section which forms part of this annual report. The Company has complied with the requirements of Corporate Governance that have to be made in this regard. The requisite certificate from M/s A. K. Gangaher & Co., the statutory auditors of the company regarding compliance with the conditions of Corporate Governance as stipulated in Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed to this report.

PARTICULARS OF EMPLOYEES

LISTING WITH STOCK EXCHANGES

The Equity Shares of the Company are listed on Calcutta Stock Exchange (CSE), BSE Limited (BSE) and National Stock Exchange Limited (NSE).

In view of ''nil'' trading at CSE, the Board of Directors of the Company as approved for voluntary delist from CSE, as the continued listing there is not serving any benefit to the shareholders. It only adds to the cost of the Company in terms of money and efforts. BSE & NSE have large trading volumes and trading turnover. In view of this, Board of Directors of the Company decided to get the Company delisted from Calcutta Stock Exchange and continue listing with Nationwide Stock Exchanges, i.e., NSE and BSE.

The application for voluntary delisting is pending before CSE.

Your Company has no dues pending with the above said Stock Exchanges.

EXTRACT OF ANNUAL RETURN

OTHER INFORMATION

Information pursuant to Section 134 of the Companies Act, 2013 read with Rule 8(3) (a) & (b) of the Companies (Accounts) Rules, 2014 being not applicable and hence not being disclosed.

Further Information pursuant to Rule 8(3) (c) of the above said rule is mentioned below.

FOREIGN EXCHANGE TRANSACTIONS
S. No.	Particulars	Current Year (Amount in Rs.)	Previous Year (Amount in Rs.)
I	Expenditure/Remittances (Outward) in Foreign Exchange
1	Travelling Expenses	6,978,353.80	4,932,852.80
2	Fees and Subscription		566,249.00
3	Professional Fee	11,316,229.30	8,684,241.00
4	Interest Payment - External Commercial Borrowing	35,504,242.34	33,246,237.00
5	Principal Payment - External Commercial Borrowing	26,412,499.58	-
6	Sitting Fees	20,000.00	30,000.00
7	Business Promotion	256,004.00	505,420.00
8	Share/ Debenture Issue Expenses	6,804,618.00	-
Total		87,291,947.02	47,964,999.80
II	Earning/Remittances (Inward) in Foreign Exchange
	Share Application Money/Share Capital Received	-	414,700,000.00
	Reimbursement of Expenditure	1,317.72	-
Total		1,317.71	414,700,000.00

ACKNOWLEDGEMENTS

For and on behalf of the Board of Directors

Place: Delhi H P Singh

Date: May 26, 2017 (Chairman Cum Managing Director)

DIN: 00333754

Mar 31, 2016

Dear Shareholders,

The Directors take pleasure in presenting the Twenty Sixth Annual Report of the Company together with the Audited Accounts for
the financial year ended March 31,2016.

FINANCIAL SUMMARY/HIGHLIGHTS, OPERATIONS, STATE OF AFFAIRS

(Rs. In Crores)

Particulars Current Year Previous year

Gross Income 558.52 3,24.16

Expenses 467.60 2,75.54

Profit before Depreciation and tax 90.92 48.62

Depreciation and amortization expenses 2.88 1.96

Profit Before Exceptional, Corporate
Social Responsibility Expense,
Extraordinary 88.04 46.66
Items And Tax

Exceptional Items - -

Profit Before Extraordinary Items,
Corporate Social Responsibility
Expense And Tax 88.04 46.66

Corporate Social Responsibility Expense 0.51 0.21

Extraordinary Items - -

Profit Before Tax 87.53 46.45

Tax Expense 29.59 14.73

Profit after Tax 57.94 31.72

Brought forward from Previous Year 47.00 22.51

Profit available for appropriation 104.94 54.23

Transfer to Statutory Reserve Fund 11.59 6.34

Dividend-Preference Share Capital @12.34% 0.49 0.74

Dividend Distribution Tax 0.10 0.15

Surplus carried to Balance Sheet 92.76 47.00

OPERATIONS, PROSPECTS AND FUTURE PLANS

During the year under review, your Company has done well on all parameters and grown the business substantially. The Company has
disbursed 1,688,914 loans totalling Rs. 3,606.11 Crores during the year ended March 31, 2016 against Rs. 2,365.76 Crores during
the previous year. The net outstanding portfolio (including managed portfolio and net of provisions) as at March 31,2016 is Rs.
3,248.01 Crores. Presently, total number of branches are 431 as at March 31,2016 as against 267 as at March 31, 2015. Satin
started its JLG operations from Uttar Pradesh and then extended it to Madhya Pradesh, Jammu & Kashmir, Uttrakhand, Bihar,
Maharashtra, Himachal Pradesh Rajasthan, Punjab, Haryana, Chandigarh, Chhattisgarh, Jharkhand, West Bengal, Delhi and Gujrat. The
Company''s PAR > 60 is 0.24 % as of March 31, 2016 as against 0.12% for previous year. The Company has raised Rs. 80.00 Crores as
sub debt during the financial year 2015-16. During the financial year 2015-16, your Company had undertaken several initiatives
with an objective to enhance customer reach, improve operating efficiencies, reduce operating cost and build up a leadership pool
at various levels. The Company has introduced a loan product for solar lamp where the existing clients of Satin can avail a
product on installment from the nearby branches. The Company has also started Health & Sanitation loan from October 2015. The
Company has disbursed approx. Rs. 0.41 Crore on Health & Sanitation loan till March 31, 2016. We continued to provide
high-quality customer service with robust operating systems. Besides, we strengthened our risk mitigation practices to emerge as
a credible player with a long-term commitment to financial inclusion. Employees are recruited from various sources and are
provided training to improve skills considering the job requirements at different levels. This has enabled the Company to reduce
cost and improve bottom line.

Your Company had submitted an application for converting into a Small Finance Bank (SFB) on January 28, 2015 as per the
''Guidelines for Licensing of Small Finance Banks in the Private Sector'' issued by the Reserve Bank of India (RBI) on November 27,
2014. The Reserve Bank of India (RBI), on September 16, 2015 granted "in-principle" approval to 10 applicants to set up small
finance banks. The 10 (Ten) applicants were chosen from the 72 (Seventy Two) applications received by the RBI. 8 (Eight) out of
10 (Ten) licenses have been given to Microfinance institutions. Some of the large Micro Finance Institutions (MFIs) have got the
in-principle approval to convert in Small Finance Bank. Your Company has not received the in principle approval to convert into
Small Finance Bank. However, the Board feels that there is good opportunity to grow the business without getting the banking
license in medium term.

Further, National Stock Exchange of India Limited has granted listing cum trading approval vide its Circular Ref. no. 847/2015
dated August 24,2015 for 29,081,361 Equity Shares of the Company from August 26,2015. Further, BSE Limited has accorded approval
for listing cum trading for 29,081,361 Equity Shares of the Company vide its letter Ref. DCS/DL/AU/TP/706/2015-16 dated October
16,2015 with effect from October 20,2015.

Operational Highlights:

Particulars March 2016 March 2015

Number of branches 431 267

Amount disbursed (Rs. in Crores) 3,606.11 2,365.76

Number of active loan 18,51,113 11,90,999

Total Assets under management
including securitised and 3,248.01 2,126.01
assigned portfolio (Net of Provision)
(Rs. in Crores)

During the year 2015-16, the Company has raised borrowings of Rs. 2,105.45 Crore by way of Term Loans, Non-Convertible
Debentures ("NCDs"), Commercial Papers and Other working capital limits which was 38% higher as compared to Rs.1,522.79 Crore
raised during 2014-15. Further, the Company has raised Rs. 1,355.97 Crore by way of securitisation and assignment of receivables
which was 64% higher as compared to Rs. 828.30 Crore raised during 2014-15.

The Company already has borrowing arrangement with a large number of lenders and continuing on the track of diversification of
sources, the Company has initiated relationship with 13 new lenders including National Agriculture Bank of Rural Development
("NABARD") which has sanctioned and disbursed Rs. 150 Crore during the year. The Company has successfully placed its first
commercial paper of Rs.50 Crore and first senior unsecured Non-Convertible Debenture during the year. Further, the Company was
the first one to which Micro Units Developments and Refinance Agency ("MUDRA") Bank has sanctioned its first loan. The Company
has also raised subordinate debts of Rs. 80 Crore from institutional lenders which can be classified as Tier-II capital as per
RBI guidelines.

The Company has raised funds through Private Placement by issuance of 61,00,000 equity shares to Promoters and SBIFMO Emerging
Asia Financial Services Pte. Ltd, resulting in a capital infusion of Rs.79.30 crore during the year. The net worth of the Company
& Subordinate Debt as on March 31, 2016 was at Rs. 324.01 crore and Rs. 162.22 crore respectively. Capital adequacy as on March
31,2016 was 16.82% well above the norm of 15% prescribed by RBI.

The Company has redeemed 60,00,000 Preference Shares (i.e. 12% Cumulative, Rated, Non-Participative, Non-Convertible, Compulsory
Redeemable Preference Share) of Rs. 10 Each vide Circular Resolution passed by the Board of Directors on November 24, 2015. The
total dividend pay-out for the period of 241 days (dividend payment date: November 27, 2015) amounted to Rs. 48.88 Lacs
(excluding dividend distribution tax).

The cost of borrowing of the Company has come down 14.29% in 2015-16 as against 15.01% in 2014-15. Reduction was primarily on
account of improved financial performance of the Company and diversification of the source of borrowings.

Company''s Prospects, Future Plans and Business Overview:

The Business of your Company scaled up rapidly through increase in number of branches and employees of the Company. The Company
is expanding its business to new geographical territories. The Company is hopeful in achieving better performance during the
current year. It remains to be seen whether the lew of initiatives announced by the Central Government like ''Make in India''
programme, increased FDI limits in certain sectors, a financial inclusion effort through Pradhan Mantri Jan Dhan Yojana and
India''s improved rating outlook gives a fillip to the performance of the financial sector in the coming year. Acknowledging that
Non-Banking Financial Companies (NBFCs) are engaged in financial lending to different sectors, the Finance Bill-2016 proposes to
extend the benefit to NBFCs. This is a welcome move as NBFC''s account for a big chunk of lending in the country. From a period
of low growth, high inflation and shrinking production, the Central Government has not only strengthened macro-economic
fundamentals, but has also propelled the economy to a higher growth trajectory. Various rating agencies and think tanks have
predicted that India''s growth would accelerate sharply in the next few years. There are some initial indication of interest rate
cut by few bankers, which may help the Company to reduce it''s cost of borrowing. The fluctuation in the foreign currency and
tough competition in the international financial market will continue to be a challenge but your Company foresees better turnover
and increased demand of its quality services.

The Company also planning to enter into financing for Small and Medium scale enterprise (SME) segment to augment their financial
needs and to capture the gap available. The Company feels that SME segment is viable option to diversify portfolio and business
risk.

Please refer the Management Discussion and Analysis Report for more information on your Company''s Business Overview.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company has duly complied with the provision of Section 186 of the Companies Act, 2013 and Rules made thereunder. Details on
loans, guarantees or investment are mentioned in financial statements of this Annual Report.

DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS

The Company has proper and adequate system of internal control geared towards achieving efficiency in its operations,
safeguarding assets, optimum utilization of resources and compliance with statutory regulations. The Company has an Internal
Control System, commensurate with the size, scale and complexity of its operations. Testing of such Control Systems forms a part
of Internal Audit (IA) function. The scope and authority of IA function is defined in the IA policy. The Internal Auditors of the
Company conduct audits of various departments based on an annual audit plan covering key area of operations. Internal Audit
reviews and evaluates the adequacy and effectiveness of internal controls, ensuring adherence to operating guidelines and systems
and recommending improvements for strengthening them. To maintain its objectivity and independence, the Internal Audit function
reports to the Chairman of the Audit Committee of the Board. Your Company has instituted various preventive or control measures
in the loan approval process to mitigate the risk of extending loans to non- existent borrowers or fictitious borrowers. The
Company has continued its efforts to align its processes and controls with best practices and has put in place a process wise
internal control framework across the Company.

SUBSIDIARY AND ASSOCIATE COMPANIES

The Company has neither any subsidiary, associate Company nor any Joint Venture during the financial year 2015-16.

DIRECTORS AND KEY MANAGEMENT PERSONNEL (KMP)

Mr. Davis Frederick Golding (DIN.00440024) who liable to retire by rotation in the ensuing and being eligible offers himself for
re-appointment. Mr. Davis Frederick Golding is representing M/s ShoreCap II Ltd. on the Board of the Company and has shown his
interest for his re-appointment. The Nomination & Remuneration Committee and the Board of Directors have recommended his
re-appointment for consideration of the Shareholders.

Mr. Anil Kumar Kalra (DIN: 07361739)wasappointedasAdditionalDirectoronDecember08,2015. Pursuant to Section 149, 150, 152, 161 and
other applicable provisions of the Companies Act, 2013 and the Rules made thereunder, read with Schedule IV of the Companies Act,
2013, and as per Articles of Association of the Company, Mr. Anil Kumar Kalra appointed as anon- executive and independent
Director of the Company, who have submitted a declaration that he meets the criteria for independence as provided in Section
149(6) of the Companies Act, 2013. The Nomination & Remuneration Committee and the Board of Directors have also recommended his
appointment for consideration of the shareholders. Mr. Anil Kumar Kalra will be appointed as Independent Director of the Company
to hold office for a period of five years from the date of his appointment as additional director or till such earlier date as
may be determined by any applicable statutes, rules, regulations or guidelines and not liable to retire by rotation.

Brief resume of these Director(s), their educational and professional qualifications, nature of their working experience, their
achievements, name(s) of the companies in which they hold directorships, memberships and chairmanships in various Committees,
their shareholding in the Company, relationship between directors inter-se are provided in Corporate Governance Report forming
part of the Annual Report.

Mrs. DeepaA. Hingorani (DIN: 00206310) (nominee director appointed by Danish Microfinance Partners KS), has tendered her
resignation from Company''s Board and in her place, Mr. Kasper Svarrer (DIN: 072252475) has been introduced as an Additional
Director on the Board of the Company on August 12, 2015 to hold office upto the date of the next annual general meeting of the
Company ("AGM") or the last date on which the AGM should have been held, whichever is earlier and liable to retire by rotation.
The Directors has appreciated her contribution on the Satin Board. Further, Mr. Suramya Gupta (DIN: 06816354) (nominee director
of SBIFMO Emerging Asia Financial Sector Fund Pte. Ltd) appointed as an Additional Director on the Board of the Company on August
12,2015 to hold office upto the date of the next AGM of the Company or the last date on which the AGM should have been held,
whichever is earlier and liable to retire by rotation. Further, pursuant to the requirements of Section 161(3) of the Companies
Act, 2013 the designation of Mr. Suramya Gupta (DIN.06816354) and Mr. Kasper Svarrer (DIN: 072252475) were changed to Nominee
Director vide Board meeting held on November 04, 2015. It is pertinent to note that "Nominee Directors" appointed pursuant to
Section 161(3) of the Companies Act, 2013 are not subject to Shareholders'' approval or confirmation (in terms of Section 161(3)
of the Companies Act, 2013) and liable to retire by rotation. After change of designation from Additional Director to Nominee
Director, appointment of Mr. Suramya Gupta (DIN.06816354) and Mr. Kasper Svarrer (DIN: 072252475) are not subject to
Shareholders'' confirmation/approval.

Further, pursuant to the requirements of Section 161(3) of the Companies Act, 2013 the designation of Mr. Davis Frederick Golding
(DIN.00440024), Mr. Richard Benjamin Butler (DIN.06574786) and Mr. Arthur Sletteberg (DIN.07123647) who were appointed as
Investor Directors on the Board of Directors of the Company for the Investments made by M/s ShoreCap II Ltd., M/s MV Mauritius
Ltd. and M/s NMI Fund III KS, respectively, were changed to Nominee Directors vide Board meeting held on November 04, 2015 as the
above said directors'' being nominated on the Board by the various Investors (hereinafter referred to as their respective
organisations) for taking care and looking after the business operations of the Company to the extent and for the best interest
of their Investor Organisations.

During the year 4 (Four) Board Meetings were held. These Board Meetings were held on May 25, 2015, August 12,2015, November
04,2015 and February 10,2016.

PERFORMANCE EVALUATION OF BOARD, COMMITTEES AND DIRECTORS

The Board of Directors of the Company carried out annual evaluation of its own performance, its Committees and individual
directors based on criteria and framework adopted by the Board and in accordance with existing regulations. The manner of
evaluation was conducted after consideration of parameters through set of questioner(s). The policy on Nomination & Remuneration
for Directors, Key Managerial personnel (KMP) and senior management and other employees contains the methodologies of evaluation
criteria. The Board found its own performance of each Director individually and of its various Committees satisfactory.

STATEMENT ON DECLARATION "CERTIFICATE OF INDEPENDENCE" U/S 149 (6) FROM INDEPENDENT DIRECTORS

Pursuant to Schedule IV and Section 149(6) of the Companies Act, 2013, the Board has independent directors and there is
appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and
duties effectively. The independent directors have submitted a declaration that the independent directors meet with the criteria
of independence as required under Section 149(6) of the Companies Act, 2013.

DIRECTOR''S RESPONSIBILITY STATEMENT

Pursuant to section 134 (5) of the Companies Act, 2013, the Directors hereby confirm:

1. That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper
explanation relating to material departures;

2. That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial
year and of the profit and loss of the Company for that period;

3. That the directors had 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;

4. That the directors had prepared the annual accounts on a going concern basis;

5. That the directors, had laid down internal financial controls to be followed by the Company and that such internal financial
controls are adequate and were operating effectively; and

6. That 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.

Information on material order passed by the regulators or courts or tribunal:

There are no material order passed by the regulators or courts or tribunals impacting the going concern status and Company''s
operations in future.

RELATED PARTY TRANSACTIONS

During the financial year 2015-16, there is no materially significant related party transaction with the Company''s promoters,
directors, the management or relatives which may have potential conflict with the interest of the Company at large. The Company
has also formulated a policy on dealing with the Related Party Transactions and necessary approval of the Audit Committee and
Board of Directors were taken wherever required in accordance with the Policy. The Company has also formulated a policy for
determining the material related party transactions and the details of such policies for dealing with related party transactions
are available on the website of the Company i.e. www.satincreditcare.com.

Particulars of Contracts or Arrangements with related parties referred to in Section 188(1) is given in Form AOC- 2 as
Annexure-I. Further, details of Related P arty Transactions as required to be disclosed by Accounting Standard-18 on "Related
Party Transactions" specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,
2014 are given in the Notes to the Financial Statements.

Justification for entering into related party transactions:

In order to broaden the horizon of working areas and to diversify the risk of business, the Company has discussed and approved
the proposal to enter into a service agreement with Taraashna Services Private Limited (a private limited company engaged in the
business of providing business correspondent services) vide resolution passed in its Board meeting held on November 13, 2013.
Except to the extent of directorship/shareholding (directly or through related party), of Mr. H P Singh, Chairman cum Managing
Director and Mr. Satvinder Singh, Director of the company, no other Director or KMP are in anyway concerned or interested in
aforesaid related party transaction. Further, the remuneration is paid to Mr. H P Singh, Chairman cum Managing Director and
sitting fee to non-executive directors (other than Investor''s nominee) for each Board/Committee meeting(s) attended and are shown
under Related party disclosures segment under "notes to the account" of Balance Sheet in terms of Accounting Standard 18 issued
by the Institute of Chartered Accountants of India.

AUDITORS & THEIR REPORTS

Statutory Auditors & their Report:

M/s A.K. Gangaher & Co., Chartered Accountants, the existing auditors Of the Company retire at the conclusion of this Annual
General Meeting and being eligible, offer themselves for re-appointment. The retiring auditors have furnished a certificate of
their eligibility for re-appointment under Section 139(1) read with Section 141 of the Companies Act, 2013 and Companies (Audit
and Auditors) Rules, 2014. The same was discussed in the Audit Committee meeting. Your directors recommend their re- appointment.
The Company has received audit report from M/s A. K. Gangaher & Co., Chartered Accountants.

Secretarial Auditors & their Report:

In terms of Section 204 of the Companies Act, 2013 and Rules framed thereunder and on the recommendation of the Audit Committee,
the Board of Directors of the Company had appointed M/s S. Behera & Co. Company Secretaries (ICSI PCS Registration No. 5980) as
the Secretarial Auditor of the Company for the financial year 2015-16. Secretarial audit report as provided by M/s S. Behera &
Co. Company Secretaries is also annexed to this Report, in the prescribed Form No. MR-3, is annexed as Annexure-II.

Any member interested in hard copy of the Secretarial Audit Report may inspect the same at the Corporate Office of the Company or
write to the Company Secretary for a copy.

The Company has received consent from M/s S. Behera & Co. Company Secretaries, for their re-appointment for the financial year
2016-17. Your directors recommend their re-appointment.

Qualifications in Audit Reports:

Your Directors do not observe any qualification, reservation or adverse remark or disclaimer made by the statutory auditor in his
report and by the company secretary in practice in his secretarial audit report.

AUDIT COMMITTEE

The Company has an Audit Committee in accordance with the provisions of Section 177 of the Companies Act, 2013 and in accordance
with Uniform Equity Listing agreement with the Stock Exchanges and as per other applicable laws. All members of the Committee are
financially literate within the meaning of the Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The Chairman of the Committee was present at the last Annual General Meeting to answer the queries of the
Shareholders. The Scope of the activities of the Audit Committee is as set out in Regulation 18 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and Uniform Equity Listing Agreements executed with the Stock exchanges read with
Section 177 of the Companies Act, 2013 and other applicable laws are approved by Board of Directors of the Company. The
composition of the Audit committee and the details of meetings attended by the Directors are provided in Corporate Governance
Report section of this Annual Report.

DIVIDEND

The Company has accounted for in its financial statements the necessary dividend for 60,00,000 Fully Paid Up 12% Cumulative,
Rated, Non Participative, Non-Convertible, and Compulsorily Redeemable Preference Shares. Directors of your Company have
recommended an interim dividend Of Rs. 48,88,669/- (Rupees Forty Eight Lacs Eighty Eight Thousand Six Hundred and Sixty Nine
Only) (excluding dividend distribution tax). Further, pursuant to Section 55 of Companies Act, 2013 and rules made thereunder,
60,00,000 Fully Paid Up 12% Cumulative, Rated, Non-Participative, Non- Convertible, Compulsorily Redeemable Preference Shares
aggregating to amount Rs. 6,00,00,000 (Rupees Six Crore only) be redeemed out of the proceeds of a fresh issue of shares made for
the purpose of redemption on November 27,2015, the due date of redemption. These Preference Shares were redeemed on November 27,
2015. Further, in order to undertake and carry on future plans, it is necessary to conserve the resources. Your directors are of
the opinion of retaining the profits for the year within the Company, and thus have not recommended any dividend on equity shares
for the year ended March 31,2016.

CORPORATE SOCIAL RESPONSIBILITY

The Board of Directors has constituted the Corporate Social Responsibility Committees vide resolution passed in its meeting held
on May 26,2014. As per Section 135 of the Companies Act, 2013, all companies having net worth of Rs. 500 Crore or more, or
turnover of Rs. 1,000 Crore or more or a net profit of Rs. 5 Crores or more during any financial year are required to constitute
a Corporate Social Responsibility (CSR) committee of the Board of Directors comprising three or more directors, at least one of
whom will be an independent director. The CSR Committee vide its meeting dated February 09, 2015 approved and recommended to
Board for its approval a policy known as CSR policy, which indicates the activities to be undertaken by the Company as specified
under Schedule VII of Companies Act, 2013. Further, the Company in its Board meeting dated February 09,2015 approved the
detailed CSR policy.

Now as per the requirement of Rule 8(1) of The Companies (Corporate Social Responsibilities) Rules, 2014 the Annual Report on CSR
is annexed as Annexure-III to this report and the same is posted on the website of the Company i.e. www.satincreditcare.com.

E-VOTING

The Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions
set forth in the Notice. This is pursuant to Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and
Administration) Rules, 2014 and Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. The
above Rule 20 of the Companies (Management and Administration) Rules, 2014 have been amended on March 19,2015 to introduce a new
concept of e-voting i.e. E-Voting at general meeting through an electronic voting system. To comply with the requirements of new
Companies Act, 2013 and to ensure good governance for its members, your Company has provided e- voting facility for its general
meetings to enable its members to participate in the voting electronically. The instruction(s) for e-voting for ensuing Annual
General Meeting/Postal Ballot is also provided with notice to shareholders of this Annual Report.

EMPLOYEES STOCK OPTION PLAN

In order to develop and implement a long term incentive program to attract, motivate and retain the talent in a competitive
environment, the Company has formulated and implemented "Employees Stock Option Schemes (the Schemes)" which provides for grant
of equity shares of Satin Creditcare Network Limited to employees of the Company. These s chemes provide for grant of options to
employees of the Company that vest in a graded manner and that are to be exercised within a specified period.

The Company had allotted 4,25,000 equity shares to Satin Employees Welfare Trust @ Rs. 20/- each (including premium of Rs. 10/-
each) on November 27, 2009. The Company had further allotted 1,00,000 shares to Satin Employees Welfare Trust @ Rs. 22/- each
(including premium of Rs. 12/- each) on June 22, 2010. The Company had further allotted 1,50,000 equity shares to Satin
Employees Welfare Trust @ Rs. 25/- each (including premium of Rs. 15/- each) on April 21, 2011.These shares were allotted at a
value which is over the fair market value of these share at the time of allotment and thus no expense has been recognized. As
against 4,25,000 Equity Shares issued to Satin Employees Welfare Trust under Satin ESOP 2009, the Company granted 1,50,000
Options to two employees of the company as per the terms of Satin ESOP 2009 on January 12, 2010. These options are vested and
exercised as per terms set out under ESOP 2009. Further, the Company has also granted 98,300 Options out of remaining 2,75,000
Equity Shares to various employees as per the terms of Satin ESOP 2009 on December 02,2013. Out of 98,300 shares granted, 29,090
options were vested and 25,824 were exercised on December 02, 2014 and 29,100 options were vested and 22,633 were exercised on
December 03,2015. The exercised shares are in lock in period of one year from the date of transfer of shares from Satin Employees
Welfare Trust to employees.

DISCLOSURE UNDER SECTION 62 OF THE COMPANIES ACT, 2013, RULE 12 OF COMPANIES (SHARE CAPITAL AND DEBENTURES) RULES, 2014, SEBI
(SHARE BASED EMPLOYEE BENEFITS) REGULATIONS, 2014 AND THE SEBI (EMPLOYEE STOCK OPTIONS SCHEME AND EMPLOYEE STOCK PURCHASE SCHEME)
GUIDELINES 1999, FOR THE YEAR ENDED MARCH31,2016

A. The Board of Directors of your Company has approved an Employees'' Stock Option Scheme during the Year 2009 and 2010 in
accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 (hereinafter referred to
as "SEBI Regulations") with the objective of strengthening employee bonds with the Company and creating a sense of ownership.
Your Board felt it appropriate to extend ESOPs to permanent employees in the management staff, including Managing Director and
Whole-time Director(s) in order to motivate and retain the best talent. Further, during the year the Company has not amended the
scheme as per the new regulations i.e. SEBI (Share Based Employee Benefit) regulations, 2014.

Annexure

A. Relevant disclosures in terms of the'' Guidance note on accounting for employee share-based payments issued by ICAI or any
other relevant accounting standards as prescribed from time to time.

1. The Company had ''nil''share-based payment arrangements during the year ended March 31,2016.

2. The estimated fair value of each stock option granted in the general employee stock option plan is Rs.73.79. This was
calculated by applying Black Scholes pricing model. The model inputs were as follows:

Satin ESOP 2009

Inputs

First Grant Second Grant Third Grant

Share Price at grant Date N.A N.A N.A.

Exercise price 20 20 20

Expected Volatility - - -

Expected Dividends - - -

Contractual Life 1.08 2.08 3.09

Risk Free Interest Rate 8.59% 8.48% 8.44%

3. The estimated fair value of each share granted in the executive stock plan is Rs. 73.79.

4. Other information regarding employee share-based payment plans is as below:

Inputs Year ended March
31, 2016 Year ended March
31, 2015

Expense arising from employee
share-based payment plans 3,780,469.00 Nil

Expense arising from share and
stock option plans Nil Nil

Closing balance of liability
for cash stock appreciation
plan Nil Nil

Expense arising from increase
in fair value of liability
for cash stock appreciation
plan Nil Nil

B. Diluted EPS on issue of shares pursuant to all the schemes covered under the regulations shall be disclosed in accordance
with ''Accounting Standard 20 - Earnings Per Share'' issued by ICAI or any other relevant accounting standards as prescribed from
time to time. Diluted EPS is Rs. 19.97.

Effects of Share Options on Diluted Earnings per Share (Accounting year April 01,2015 to March 31,2016)

Net profit for the year ended March 31, 2016 Rs. 573,521,264.37

Weighted average number of equity shares
outstanding during the year ended March
31, 2016 28,275,712 Shares

Average fair value of one equity share during
the year ended March 31, 2016 73.79

Weighted average number of shares under
option during the year ended March 31, 2016 447,417 Shares

Exercise price for shares under option
during the year ended March 31, 2016 20.00

Computation of earnings per share

Inputs Earnings Shares Earnings Per
Share

Net profit for the year
ended March 31,2016 (Rs.) 573,521,264.37 - -

Weighted average number
of shares - 28,275,712 -
outstanding during year
ended March 31, 2016

Basic earnings per
share (Rs.) - - 20.28

Number of shares under
option - 447,417 -

Number of shares that
would have been issued
at fair value: - (29,126) -

Diluted earnings per
share (Rs.) 573,521,264.37 287,23,129 *19.97

*Average fair value of one equity shares for the year ended March 31, 2016: Rs.73.79

C. Details related to ESOS

(i) A description of each ESOS that existed at anytime during the year, including the general terms and conditions of each ESOS

Satin ESOP 2009 Satin ESOP I 2010 Satin ESOP II2010
SL.
No. Particular (Remarks) (Remarks) (Remarks)

a) Date of
shareholders''
approval June 01,2009 March 26,2010 December 15, 2010

b) Total number
of options
approved
under ESOS 4,25,000 1,00,000 1,50,000

c) Vesting
requirements - - -

d) Exercise
price or
pricing
formula Rs. 20/- being
the Fair Rs. 22/- being
the Fair Rs. 25/- being
the Fair
Value of the
shares of Value of the
shares of Value of the
shares of
the Company the Company. the Company.
(Computed on the (Computed
on the (Computed on the
basis of Audited
result basis of Audited
result basis of Audited
result
FY 2008-09). FY 2009-10) FY 2009-10)

e) Maximum term
of options
granted 3 Years 3 Years 3 Years

f) Source of
shares
(primary,
secondary Primary Primary Primary
or
combination)

g) Variation in
terms of
options Not Applicable Not Applicable Not Applicable

(ii) Method used to account for ESOS: FairValue (Black Scholes Model).

(iii) Option movement during the year (For each ESOS):

Satin ESOP 2009 Satin ESOP I 2010 Satin ESOP II 2010
Particulars (Remarks) (Remarks) (Remarks)

Number of options
outstanding at
the beginning of
the period 2,49,176 1,00,000 1,50,000

Number of options
granted during
the year 0 0 0

Number of options
forfeited/lapsed
during the 6,467 0 0
year

Number of options
vested during the
year 29,100 0 0

Number of options
exercised during
the year 22,633 0 0

Number of shares
arising as a
result of exercise 22,633 0 0
of options

Money realized by
exercise of
options (INR/Rs.) Rs. 4,52,660/- 0 0
it scheme is
implemented
directly by the
company

Loan repaid by
the Trust during
the year from 2,26,543 0 0
exercise
price received
(INR/Rs.)

Number of options
outstanding at
the end of the 2,26,543 0 0
year

Number of options
exercisable at
the end of the 29,100 0 0
year

(iv) Weighted-average exercise prices:

- when the exercise price is equal/exceeds to market price.

- when the exercise price is less than market price- Rs. 20.00.

Weighted-average fair values

- when the exercise price is equal/exceeds to market price.

- when the exercise price is less than market price-Rs. 73.79.

(v) Employee wise details (name of employee, designation, number of options granted during the year, exercise price)

(a) Senior managerial personnel

Details of Shares vested to Senior Managerial Personnel during this financial year

Sl.
No. Name of Employee Designation Number of Option Exercise Price
granted during
the year

1 Shri Shirish
Chandra Panda Head Internal
Audit 3,167 Rs. 20/-

2 Shri Ajay Kumar Vice President
- HR 2,067 Rs. 20/-

Total 5,234 N.A.

(b) There is no employee has received a grant in any one year of option amounting to 5% or more of option granted during that
year;

(c) There is no Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital
(excluding outstanding warrants and conversions) of the company at the time of grant.

(vi) A description of the method and significant assumptions used during the year to estimate the fair value of options including
the following information:

Necessary disclosures/details pursuant to SEBI (Share Based Employee Benefit) regulations, 2014 has been placed on the website
and weblink Of the same is www.satincreditcare.com.

POLICIES

Vigil Mechanism/Whistle Blower Policy:

The Company has established a vigil mechanism policy vide incorporating and adopting a Whistle Blower Policy for directors &
employees pursuant to the requirement under Section 177(9) of Companies Act, 2013 read with Rule 7 of Companies (Meeting of Board
& its Powers) Rules, 2014 and Clause 49 of Listing Agreement in its Board Meeting dated February 09,2015. The aforesaid policy
is revised on February 10,2016 in view of enactment of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The policy empowers the blower to report concern about unethical behavior, actual or suspected
fraud or violation of the Company''s code of conduct or ethics policy. The detailed vigil mechanism is communicated to all the
directors and employees and is also disclosed on the website of the Company www.satincreditcare.com.

Policy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) & Senior Management and Other Employees:

In pursuance of the Company''s policy to consider human resources as its invaluable assets, to pay equitable remuneration to all
Directors, Key Managerial Personnel (KMP), Senior Management and other employees of the Company, to have diversified Board, to
harmonize the aspirations of human resources consistent with the goals of the Company and in terms of Section 178 of the
Companies Act, 2013 and the listing agreement as amended from time to time and Rules/Regulations/Guidelines /Notifications issued
by Securities and Exchange Board of India (SEBI) from time to time, this policy on nomination and remuneration of Directors, Key
Managerial Personnel and Senior Management which includes within it a policy for having a Diversified Board and Familiarization
programme for Independent Director has been formulated and approved by the Board of Directors vide its meeting dated February 09,
2015. The aforesaid policy is revised on February 10, 2016 in view of enactment of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015. This policy shall act as a guideline for determining,
inter-alia, qualifications, positive attributes and independence of Director, diversification of the Board, matters relating to
the remuneration, appointment, removal and evaluation of performance of the Directors, Key Managerial Personnel, Senior
Management and other employees of the Company. The Company shall periodically conduct familiarization programme for the
independent directors, their roles, rights, responsibilities in the Company, nature of the industry in which the Company
operates, business model of the Company, etc. The details of such familiarisation programmes is disclosed on the Company''s
website i.e. www.satincreditcare.com.

Corporate Social Responsibility Policy:

With a vision of transforming the lives of people from socially weaker and economically disadvantaged sections of society, the
Company is committed to ''building possibilities'' to enable them to improve by supporting them through programs in the domains of
education, healthcare and environment. As a part of its commitment to Corporate Social Responsibility, during the year, your
Company initiated projects for health improvement by contributing to eligible trust and other agencies.

During the year under review, your Company has spent Rs. 51.00 Lacs on CSR projects/programs. Your Company is in compliance with
the statutory requirements in this regard.

Risk Management Policy:

The Company has framed a policy as required under Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 to evaluate and monitor company risks and develop comprehensive strategy to mitigate various type
of risks and take corrective actions in order to prevent adverse events. The risks involved are Financial Risks, Operational
Risks and External Risks. The Internal Audit Team directly reports to the Audit Committee Of the Company. Significant audit
observations and follow up actions thereon are also reported to the Audit Committee. The Audit Committee reviews adequacy and
effectiveness of the Company''s internal control environment and monitors the implementation of audit recommendations, including
those r elating to strengthening of the Company''s risk management policies and systems.

Related Party Transaction Policy:

Related P arty Transaction Policy is adopted by the Board of Directors of the Company vide its meeting dated February 09,2015
pursuant to the compliances under the provisions of the Section 188 of the Companies Act, 2013 read with Rule 15 of The Companies
(Meetings of Board and its Powers), Rules, 2014 and Clause 49(VII) of the Equity Listing Agreement. The aforesaid policy is
revised on February 10,2016 in view of enactment of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The objective behind framing the policy is to ensure that Related Party Transactions are managed
and disclosed in accordance with the strict legal and accounting requirements to which the Company is subject.

All Related P arty Transactions shall require approval of Audit Committee and s aid Committee will review and may amend this
policy from time to time. The policy on Related Party Transaction is posted on the website of the Company i.e.
www.satincreditcare.com.

Sexual harassment policy for women under The Sexual Harassment of Women at workplace (prevention prohibition and Redressal) Act,
2013:

Your company is committed to ensure fair and safe environment for its executives, staff and workers. In compliance of the Sexual
Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013, the company has adopted Sexual Harassment
Policy approved vide Board of Directors meeting held on February 09, 2015 which ensure a free and fair enquiry process with clear
timelines. Your Directors further state that during the year under review, there were no cases field pursuant to the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

MANAGEMENT DISCUSSION AND ANALYSIS

Resources and liquidity

In over 25 years of operation, Satin has developed partnerships with over 50 public sector banks, private sector banks, foreign
banks and other domestic and overseas financial institutions. During the year, the Company has been availing various credit
facilities from Banks, domestic and international lenders and from institutions for its microfinance operation which is the main
activity of the Company. The Company has raised debt funds through Term Loan listed/unlisted Non-Convertible Debenture,
Commercial Papers and Working Capital Facilities and also raised funds through securitization/assignment transactions. Total
borrowings of the Company as at March 31,2016 was Rs. 2,748.32 Crore including subordinate debt of Rs 162.22 Crore.

The Board of Directors of the Company vide its approval through circulation on June 03,2015, allotted 32,30,000 (Thirty Two Lacs
Thirty Thousand) Equity Shares of face value of Rs.10/- (Rupees Ten only) each fully paid-up for cash at an issue price of Rs.
130/- (Rupees One Hundred and Thirty only) including premium of Rs.120/- (Rupees One Hundred and Twenty only) and 28,70,000
(Twenty Eight Lacs Seventy Thousand) Fully Convertible Warrants each convertible into, or exchangeable for, one Equity Share of
face value of Rs.10/- (Rupees Ten only) each at a price (including the Equity Warrant subscription price and the Equity Warrant
exercise price) of Rs.130/- each (Rupees One Hundred and Thirty only). Further, out of entire consideration payable towards
Equity Warrants i.e. Rs. 37,31,00,000/- (Rupees Thirty Seven Crore Thirty One Lakhs Only), the Company has received Rs.
9,32,75,000/- (Rupees Nine Crore Thirty Two Lakhs Seventy Five Thousand Only) i.e. 25% of issue price before allotment of Equity
Warrants. Further, to fuel the growth for the Company, the warrant holders had exercised option to convert all the warrants
issued to them and infused balance amount Rs. 27,98,25,000/- (Rupees Twenty Seven Crore Ninety Eight Lakhs Twenty Five Thousand
Only) i.e. 75% of issue price. These warrants were converted on February 10,2016 and March 21,2016.

Credit Analysis and Research Limited (CARE) has reaffirmed the Long Term Facilities Rating of SCNL of CARE BBB aggregating
Rs.1600 Crores.

The Company generally maintain enough liquidity in the system so as to meet requirement of funds for scheduled disbursements and
repayments to lenders for about 30-45 days. The Company has strong Asset Liability Maturity profile wherein the Company has
positive gap in all time buckets.

In view of the overall positive environment in the Microfinance Industry in India and better regulatory clarity, the overall
liquidity and funding to NBFC-MFI has further improved. The Company has been regular in repayment to all its lenders and has
excellent relationship with all the financial institutions and banks.

Industry Scenario

The Industry has matured with stronger institutions, the credit bureaus are functional, the investors and lenders are back in
business, there is greater focus of the government on financial inclusion with launch of Micro Units Developments and Refinance
Agency (Mudra), greater regulatory clarity, Reserve Bank of India (RBI) considering giving new licence for Small and Payment
banks etc. In view of the above, there are better days ahead for Indian Microfinance industry. Microfinance institutions have
never had it so good in the past six years, at least in terms of receiving funds. Banks have opened their purse strings to MFIs
more than ever with the sector showing steady traction backed by a strong regulatory framework. The Reserve Bank of India on
April 02, 2014 granted in-principle approvals to two institutions to start new universal banks in India. Commercial papers (CPs)
are unsecured money market instruments and help corporate borrowers diversify their sources of short-term funds. CPs are cheaper
than bank loans. The Reserve Bank of India has eased micro finance lending norm of maximum 4 per cent variance in interest rates
for small loans offered to clients living below double poverty line. Limit of the loan amount, for which the tenure of the loan
shall not be less than 24 months, has been raised to Rs. 30,000.00 from the present limit of Rs. 15,000.00.The RBI allowed NBFCs
to issue Masala Bond, rupee denominated overseas bonds to overseas investors and significantly relaxed a number of restrictions.
ECB limit has been increased up to USD 100 million from USD 10 million or equivalent under automatic route for micro finance
activities. The Reserve Bank of India, on August 19,2015 granted "in- principle" approval to 11 entities to set up ''Payments
Banks'' and on September 16, 2015 to 10 applicants to set up "Small Finance Banks". There were several developments at the
national level that have been geared towards making rapid strides towards more inclusive and strategic financial access.
Moreover, alongside increasing schemes and policies to target more segments of the "ultra-poor", there have also been initiatives
towards directed development programmes for the microfinance industry. The budget for the year 2016-17 had several announcements
and proposals by the central government which has positive impact and would be contributory factor for Microfinance sector in
long run.

Business Review

The Company has done well during the financial year 2015-16 as compared to last year and it''s peers in the industry. First time,
the Company has raised floating rate Tier-II Capital (Term Loan). Micro Units Developments and Refinance Agency (MUDRA) Bank has
sanctioned it''s first loan of Rs. 35.00 Crores to the Company. The Company has started cashless disbursement in Gujarat. The
Company has introduced loan product for solar lamp where the existing clients of SCNL can avail a product from the nearby
branches. Satin has disbursed Rs. 14.03 Crores against 2,01,875 loans, for solar lamps as on March 31,2016 in the state of
Haryana, Bihar and Uttar Pradesh.

The Company has received s coring 8 out of 10 in Microfinance Code of Conduct Compliance Assessment (COCA) from "ICRA Management
Consulting Services Limited" on July 17, 2015. The Company has also received "Special Jury Award" 2015 for serving MSME''s from
Chamber of Indian Micro Small & Medium Enterprises (CIMSME) and "India Iconic name in micro finance" Award- 2015 from
International Institute for Business Analysis (IIBA). The equity share of the Company got the listing approval from The Calcutta
Stock Exchange Limited (CSE) on May 19,2015, National Stock Exchange of India Limited (NSE) on August 26,2015 and BSE Limited
(BSE) on October 20,2015.

The Company has an experienced and stable management team and Board Of Directors. The Company is hopeful of performing well
during the current year.

Opportunities

Financial sector development provides small enterprises and households with market access leading to their inclusion in the
regional and ultimately the national economy. The Reserve Bank of India (RBI) has recently increased the limit of eligible
borrowers to whom NBFC-MFI can lend and further liberalized some norms which is good for the growth of the industry and for the
borrowers. This has improved the support and confidence of all stakeholders for the microfinance sector. The Company is operating
in Northern and Central India where the reach of other MFIs is comparatively less and hence there is a huge opportunity to be
tapped and large population to be served. The Company is making all efforts to use its experience of working in the same
geography for last many years.

Challenges

While the regulatory environment has improved the stakeholder''s confidence still continue to be exposed to inherent risks in
business model. Given that the microfinance borrowers belong to low income segment, customers are more prone to default. Client
retention and acquisition are also concern for microfinance industry. Moreover, with MFI operations concentrated in specific
geographies, geographic concentration risks persist, these risks include natural disasters, social unrests, or political
upheavals. As the Company target to tap the opportunities by entering into new geographical areas, the Company encounter with
some key challenges with respect to meeting its expansion plans. Considering changes in state laws and with new partners in
industry, opening of new branches and split of existing branches is challenging task before the management. Further, as industry
is looking for more partners in coming time, talent acquisition and retention is also one of the major challenges. Training and
development for employees and security risk are other potential challenge for the management. The Company is also on verge of
shifting its technology base to improved system. The Reserve Bank of India has issued a series of circulars, directions and
notifications to give the required regulatory clarity. Also the MFI industry has collectively worked to bring back the
stakeholders'' confidence by working responsibly. The Company has a strong and experienced Board having multiple personalities
having experience in different areas. The Company''s senior management team has expertise in their respective field and the
Company has geographical advantage, time tested systems and processes, effective internal audit and risk department, association
with a large number of lenders and clean repayment track record, good credit rating in the sector which helped the Company to
achieve the performance better than its peers. The fluctuation in the foreign currency and tough competition in the international
financial market will continue to be a challenge but your Company foresees better turnover and increased demand of its quality
services.

Outlook

The overall outlook for the Microfinance Industry has improved during the financial year 2015-16. The Reserve Bank of India has
issued a number of circulars and provided the required regulatory clarity. A major outcome of the guidelines was the involvement
of credit bureaus to record and monitor the creditworthiness of borrowers. More and m ore use of Aadhaar as KY C by the industry.
There is greater emphasis today on credit s core prior to disbursement of loans, and subsequent data sharing with credit bureaus.
The credit bureau checks enable MFIs to assess the extent of leverage of prospective customers, and their repayment track record.
Additionally, the Microfinance Institutions Network (MFIN) has prescribed a code of conduct that provides guidelines for MFI
operations, and greater uniformity in their functioning.

With various schemes launched by Government for financial inclusion there is greater opportunities in microfinance sectors in the
years to come.

Risk & Concerns

The Company is exposed to financial, operational and political risks. Because an MFI''s loan portfolio is its most valuable
asset, the financial risks i.e. credit, market, and liquidity are of greatest concern. To prepare for these risks, Company
usually hold in reserve certain percent of assets in cash and in short-term assets. The Company maintain reserves and provisions
in its financials for meeting expected or unexpected future contingencies. The Company follows a conservative financial approach
by following prudent business and risk management practices.

Adequacy of internal controls

The Company has proper and adequate internal controls systems to ensure that all activities are monitored and controlled against
any unauthorised use or disposition of assets, misappropriation of funds and to ensure that all the transactions are authorised,
recorded, r eported and monitored correctly. For the purpose of correctness and accuracy the process of job rotation is followed
in different departments. The Company has adequate working infrastructure having computerization in all its operations including
accounts and Management Information System.

Company''s Internal Audit department has an annual audit plan based on the risk profile of business activities of the
organization. The Company has established an Audit Committee to review and strengthen the adequacy of internal control. The
Audit Committee also meet the Company''s Statutory Auditors to ascertain their views on the financial statements, including the
financial reporting system, compliance to accounting policies and procedures, the adequacy and effectiveness of the internal
control and systems followed by the Company. The Management acted upon the observations and suggestions of the Audit Committee.
The Internal Auditors of the Company conduct audit of various departments based on an annual audit plan covering key area of
operations and reviews and evaluates the adequacy and effectiveness of internal controls, ensuring adherence to operating
guidelines and systems and recommending improvements for strengthening them.

Human Resource Development

The Company has young, capable, experienced and dedicated manpower and various professionals support from in house and external
sources with expertise in different areas leading the growth of Company towards better operational and financial position. The
number of employees as at March 31,2016 stood at 3,864 (Previous Year 1788).

DEPOSITS

The Reserve Bank of India in exercise of its powers under The Reserve Bank of India Act, 1934, has granted NBFC-MFI (Serial No.
B-14.01394) status to the Company and the Company has no public deposit. The Board of Directors of the Company has passed are
solution that the Company will not accept public deposit during 2016-17.

RESERVE BANK OF INDIA-REGISTRATION AND DIRECTIONS

Your Company has been following all relevant guidelines issued by Reserve Bank of India from time to time. Further, your Company
has Capital Adequacy Ratio of 16.82% as on March 31,2016. The Non-Banking Financial Company - Micro Finance Institutions (Reserve
Bank) - Directions, 2011 ("NBFC-MFI Directions") were issued in December 2011 by the Reserve Bank of India (RBI) pursuant to the
Reserve Bank of India Act, 1934 ("RBI Act").The Company satisfies these conditions and was re- classified as a Non-Banking
Financial Company - Micro Finance Institution ("NBFCMFI") on November 6,2013. As a result, the Company is required to comply with
the NBFC-MFI Directions. These Directions include guidelines on qualifying assets criteria, asset classification and
provisioning, pricing of credit, capital adequacy, multiple lending, over-borrowing, compliances and fair practices. The Company
generally complies all conditions and directions issued by RBI from time to time.

CORPORATE GOVERNANCE

As required under Regulation 17 to Regulation 27 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
Uniform Equity Listing Agreements executed with the Stock exchanges, a detailed report on corporate governance has been provided
in a separate section which forms part of this annual report. The Company has complied with the requirements of Corporate
Governance that have to be made in this regard. The requisite certificate from M/s A. K. Gangaher & Co., the statutory auditors
of the company regarding compliance with the conditions of Corporate Governance as stipulated in Schedule V of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 is annexed to this report.

PARTICULARS OF EMPLOYEES

In terms of Section 197 (12) of the Companies Act, 2013 read with Rule 5, Sub-Rule (1), (2) & (3) of Companies (Appointment &
Remuneration) Rules, 2014, the necessary disclosures are annexed as Annexure-IV with this report.

LISTING WITH STOCK EXCHANGES

The equity shares of the Company were Listed on Delhi Stock Exchange Limited, Ludhiana Stock Exchange Limited and Jaipur Stock
Exchange Limited. The Securities and Exchange Board of India (SEBI) vide its order no.(s) WTM/PS/45/MRD/DSA/NOV/2014 dated
November 19, 2014 has derecognised Delhi Stock Exchange Limited and vide Order no.(s) WTM/RKA/MRD/166/2014 dated December 30,2014
has issued and exit order for Ludhiana Stock Exchange Limited. Further, vide SEBI Order no.(s) WTM/RKA/MRD/20/2015 dated March
23, 2015, SEBI has issued exit order for Jaipur Stock Exchange Limited. The company has applied for listing into The Calcutta
Stock Exchange Limited (CSE), BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) and out of three stock
exchanges, the Calcutta Stock Exchange has vide its letter dated May 18,2015 granted listing permission for 25,851,361 equity
shares w.e.f. May 19,2015 for 32,30,000 equity shares on July 14, 2015. National Stock Exchange of India Limited has granted
listing cum trading approval vide its Circular Ref. no. 847/2015 dated August 24, 2015 for 29,081,361 Equity Shares of the
Company with effect from August 26, 2015. Further, BSE Limited has accorded approval for listing cum trading for 29,081,361
Equity Shares of the Company vide its letter Ref. DCS/DL/AU/TP/706/2015-16 dated October 16, 2015 with effect from October 20,
2015. The Non-Convertible Debentures issued by the Company are listed on BSE Limited. Further, pursuant to conversion of
28,70,000 warrants, the Board of Directors of the Company has alloted 14,70,000 equity shares to promoter entities and 14,00,000
equity shares to SBIFMO Emerging Asia Financial Services Pte. Ltd. on February 10, 2016 and on March 21, 2016 respectively. The
Company has applied for listing of 28,70,000 equity shares of the Company with all Stock Exchanges where the shares of the
Company are listed and these shares shall be listed in due course of time.

Your Company has no dues pending with the above said Stock Exchanges.

EXTRACT OFANNUAL RETURN

In terms of requirement made under Section 92 and Section 134(3)(a) Of the Companies Act, 2013 read with applicable rules of The
Companies (Accounts) Rules, 2014, extract of annual return forms part of this Directors'' Report and annexed as Annexure-V.

OTHER INFORMATION

Information pursuant to section 134 of the Companies Act, 2013 read With Rule 8(3) (a) & (b) of the Companies (Accounts) Rules,
2014 being not applicable and hence not being disclosed.

Further Information pursuant to Rule 8(3) (c) of the above said rule is mentioned below:

FOREIGN EXCHANGE TRANSACTIONS

SI.
No. Particulars Current Year (Rs.) Previous Year (Rs.)

I Expenditure/Remittances
(Outward) in Foreign
Exchange

Travelling Expenses 4,932,852.80 2,955,554.00

Fees and Subscription 566,249.00 895,778.00

Professional Fee 8,684,241.00 30,997,352.00

Interest Payment -
External Commercial
Borrowing 33,246,237.00 6,981,343.00

Sitting Fees 30,000.00 20,000.00

Business Promotion 505,420.00 -

Total 47,964,999.8 41,850,027

II Earning/Remittances
(Inward) in Foreign
Exchange

Share Application Money/
Share Capital Received 414,700,000.00 284,374,970.00

External Commercial
Borrowing Received - 633,900,000.00

Reimbursement of
Expenditure - 404,147.00

Total 414,700,000.00 918,679,117.00

ACKNOWLEDGEMENTS

Your Directors would like to place on record their gratitude for the cooperation received from lenders, our valued customers and
shareholders. The Board, in specific, wishes to place on record its sincere appreciation of the contribution made by all the
employees towards growth of the Company.

For and on behalf of the Board of Directors

Place: Delhi HP Singh

Date: May 30,2016 Chairman cum Managing Director

DIN:00333754

Mar 31, 2015

Dear Members,

The Directors lake pleasure in presenting the Twenty Fifth Annual Report of the Company together with the Audited Accounts for the financial year ended 31st March, 2015.

FINANCIAL SUMMANY/ HIGHLIGHTS, OPERATIONS, STATE OFAFFAIRS

(Rs. In Crores)

Particulars Current Year Previous year

Gross Income 324.16 191.65

Expenses 275.54 167.53

Profit before Depreciation and tax 48.62 24.13

Depreciation and amortisation expenses 1.96 0.71

Profit Before Exceptional, Corporate Social Responsibility Expense, Extraordinary Items 46.66 23.41 And Tax

Exceptional Items - -

Profit Before Extraordinary Items, Corporate Social Responsibility Expense And Tax 46.66 23.41

Corporate Social Responsibility Expense 0.21 -

Extraordinary Items - -

Profit Before Tax 46.45 23.41

Tax Expense 14.73 7.85

Profit after Tax 31.72 15.56

Brought forward from Previous Year 22.51 10.14

Profit available for appropriation 54.23 25.70

Transfer to Statutory Reserve Fund 6.34 3.11

Proposed Dividend-Preference Share Capital @12.34% 0.74 0.06

Dividend Distribution Tax 0.15 0.01

Surplus carried to Balance Sheet 47.00 22.51

OPERATIONS, PROSPECTS AND FUTURE PLANS

During the year under review, your Company put in a concerted effort towards increasing efficiency to increase the market reach. The Company has achieved a disbursement of Rs. 2,365.76 Crores against Rs. 1,229.20 Crores during the previous year. The net profit during the year with Rs. 31.72 Crores as against Rs. 15.56 Crores during the previous year showing a growth of 103.86%. Net worth of your Company as on March 31,2015 was Rs. 199.48 Crores with capital adequacy of 15.67 %. Return on Average Assets and Return on Average Net worth for the year were 1.50% and 18.45 % respectively. During the financial year 2014- 15, your Company bad undertaken several initiatives with an objective to enhance customer reach, improve operating efficiencies, reduce operating cost and build up a leadership pool at various levels. We continued to provide high-quality customer service with robust operating systems. Besides, we strengthened our risk mitigation practices to emerge: as a credible player with a long-term commitment to financial inclusion. The Company has built network with suitable partners corresponding to the potential of business in which the company is operating. Employees are recruited from various sources and are provided training to improve skills considering the job requirements at financial levels. This has enabled die Company to reduce cost and improve bottom luck. The company has also stalled operation in the state of Maharashtra. Presently, it has a strong existing distribution network of 267 branches in 11 states of Bihar, Uttar Pradesh, Madhya Pradesh, Jammu & Kashmir, Uttrakhand, Maharashtra, Rajasthan, Punjab, Hanyana and Delhi and a Union Territory of Chandigarh. The Company started its JLG operations from Uttar Pradesh and then extended it to Madhya Pradesh, entered Bihar in financial year 2012 and other states gradually over the year.

Your Company has submitted an application for converting into a Small Finance Bank (SFB) on 28th January, 2015 as per the 'Guidelines for Licensing of Small Finance Banks in the Private Sector1 issued by the Reserve Bank of India (RBI) on 27th November, 2014. ... .

Operational Highlights:

Particulars As on March, 2015

Number of branches 267

Amount disbursed (Rs. in Crores) 2,365.76

Number of active loan 11,90,999

Total Assets under management including securities' 2,140.65 and assigned portfolio (Rs. in Crores)

The Company already has borrowing arrangement with a large number of lenders and have started association with few more institutions to diversify its sources of borrowing.

During the year the authorized share capital of the Company was satisfied video approval of equity shareholders through Extraordinary General Meeting held on 13th March, 2015 from Rs. 130,00,(0,000/- (Rupees One Hundred and Thirty Crore) divided into 3.00,00.000 (Three Crore) Equity Shares of Rs. 10/- (Rupees Ten only)each and 10.00,00.000 (Ten Crore) Preference Shares of Rs. 10'- (Rupees Ten only) each to Rs. 130,00,00,000/- (Rupees One Hundred and Thirty Crore) divided into 4,00,00,000 (Four Crore) Equity Shares of Rs. 10/- (Rupees Ten only) each ("Equity Shares'" and 9,00,00,000 (Nine Crore) Preference Shares of Rs. 10/- (Rupees Ten only) cash ("Preference Shares"). Further, the Company has obtained the approval of equity shareholders through Extraordinary General Meeting held on 13th March, 2015 for allotment of up to 32,30,000 (Thirty Two Lacs Thirty Thousand) Equity Shares of face valve of Rs. 10/- (Rupees Ten only) cash fully paid-up for cash at an issue price of Rs. 130/- (Rupees One Hundred and Thirty only) inducing premium of Rs. 120/- (Rupees One Hundred and Twenty only) to the Promoters and Non-Promoters.

Further, the Company has obtained the approval of shareholders through Extraordinary General Meeting held on 13th March, 2015 for allotment of up to 28.70.000 (Twenty Eight Lacs Seventy Thousand) fully convertible Warrants ("Equity Warrants") to the persons belonging to the Promoter as well as Non-Promoter Category, cash convertible into, or exchangeable for, one Equity Share of face value of Rs. 10/- (Rupees Ten only) each at a price (including the Equity Warrant subscription price and the Equity Waning exercise price) of Rs. 130/- each (Rupees One Hundred and Thirty only) cash, and to issue fresh Equity Shares on the conversion of the Equity Warrants subject to terms and conditions determined by the Board. The objective of Preferential allotment of equity shares and equity warrants is to fund the growth and operations of the Company, including growing the loan book, operating expenses, marketing expenditure, working capital and for augmenting the infrastructure of the Company, provided however, that a portion of the' proceeds of investment received from the concerned promoters shall be used to redeem 12% Cumulative. Rated, Non- participative. Non-convertible, Compulsorily redeemable 60,00,000 (Sixty Lacs) existing Preference shares. The due date of redemption is 27th November 2015. Pending utilization of such proceeds for the redemption of aforesaid Preference shares, the Company shall, subject to applicable law, invest the funds in high quality interest bearing liquid instruments and deposits with the banks for the applicable period until the due date of redemption of Preference shares. However the in-principle approval from Stock Exchange is pending.

Company's Prospects, Future Plans and Business Overview:

Your Company is continuously emphasizing for economy of scale benefit as well as improvement in quality of services which would give competitive advantage. The overall regulatory environment is improving. The Company is hopeful in achieving better performance during the current year. The fluctuation in the foreign currency and tough competition in the international financial market will continue to be a challenge but your Company foresees better turnover and increased demand of its quality services. There are some initial indication of interest rate cut by few bankers, which may help the Company to reduce it's cost of borrowing. Please refer the Management Discussion and Analysis Report for more information on your Company's Business Overview.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Being your Company is under the category of Non-Banking Finance entity registered with Reserve Bank of India, the provision of Section 186 of the Companies Act, 2013 and relevant Rules made there under doesn't apply.

DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS

The Company has proper and adequate system of internal control geared towards achieving efficiency in its operations, safeguarding assets, optimum utilization of resources and compliance with statutory regulations. Your Company has instituted various preventive or control measures in the loan process to mitigate the risk of extending loans to non-existent borrowers or fictitious borrowers.

The Company has continued its efforts to align its processes and controls with best practices and has put in place a process wise internal control framework across the Company. The Internal Auditors of the Company conduct audits of various departments based on an annual audit plan covering key are a of operations. Internal Audit reviews and evaluates the adequacy and effectiveness of internal controls, ensuring adherence to operating guidelines and systems are recommending improvements for strengthening them. There was no material event recorded subsequent to the date of financial statements.

SUBSIDIANY AND ASSOCIATES COMPANIES

The Company doesn't have any Subsidiary, Associate Company and Joint Venture during the financial year 2014-15.

Further, since the Company has no subsidiary, the requirement of formulation of policy for determining 'material' subsidiaries" under clause 49 IV) of the Equity Listing Agreement is not applicable.

DIRECTORS AND KEY MANAGEMENT PERSONNEL (KMP)

Mr. Richard Benjamin Butler (DIN: 06574786) retire by rotation and being eligible offers himself for re-appointment. Mr. Richard Benjamin Butler it representing M V Mauritius Limited on the Board of the Company and has shown interest for his re-appointment. The Nomination & Remuneration Committee and the Board of Directors have recommended his re-appointment for consideration of the shareholders.

Mr. Goh Colin (DIN: 06963178) and Mr. Sanjay Kumar Bhatia (DIN: 07033027) have been appointed as Additional Directors on 12th November, 2014 and 06th December, 2014 respectively. The tenure of their office as Director comes to an end at forthcoming Annual General Meeting of the Company. Pursuant to Section 149,150,152,161 and other applicable provisions of the Companies Act, 2013 and the Rules made there under, read with Schedule IV of the Companies Act, 2013 and as per Articles of Association of the Company, Mr. Goh Colin (DIN: 06963178) and Mr. Sanjay Kumar Bhatia (DIN: 07033027), appointed as a non-executive Director of the Company, who have submitted a declaration that they meet the criteria for independence as provided in Section 149(6) of the Companies Act, 2013. The Nomination & Remuneration Committee anc the Board of Directors have also recommended their appointment for consideration of the shareholders. They will be appointed a< Independent Director of the Company to hold office for a period of live years from the date of their respective appointment as additional director or till such earlier date as may be determined by any applicable statutes, rules, regulations or guidelines and not liable to retire by rotation.

Mr. Ole Peder Sandsbraaten (DIN:06829806) (represents NMI Fund III KS). has tendered his resignation from Company's Board and in his place, Mr. Arthur Stemberg (DIN: 07123647) has been introduced as an Additional Director on 25th May, 2015. The Directors wish to place on record their appreciation for the contribution made by Mr. Ole Peder Sandsbraaten. The Nomination & Remuneration Committee and the Board of Directors have also recommended appointment of Mr. Arthur Stemberg for consideration of the shareholders.

Brief resume of these Directors, their educational and professional qualifications, nature of their working experience, their achievements, name(s) of the companies in which they hold directorships, memberships and chairmanships in various Committees, their shareholding in the Company, relationship between directors inter-section are provided in Corporate Governance Report forming part of the Annual Report.

In order to comply with the new provisions of Companies Act, 2013, the Board Members designated following persons as "Key Managerial Personnel" of the Company with effect from 26thMay. 2014 (vide resolution passed in its meeting held on 26th May. 7014)

SI. No. Name of KMP Designation

1. Shri H P Singh Chairman cum Managing Director

2. Shri Jugd Kataria Chief Finance Officer

3. Choudhany Runveer Krishanan Company Secretary & Compliance Officer

During the year 4 (Four) Board Meetings were held. These Board Meetings were held on 26th May, 2014,08th August, 2014,12th November, 2014 and 09th February, 2015.

MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OFITS COMMITTEE AND INDIVIDUAL DIRECTOR

The Board of directors of the Company has evaluated its own performance and the performance of its Committee(s) and individual directors on various set parameters. The manner of evaluation was conducted after consideration of parameters through set of questionnaire(s). The policy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) and senior management and other employees contains the methodologies of evaluation criteria. The Board found its own performance and performance of each director individually and of its various Committee(s) satisfactory.

STATEMENT ON DECLARATION CERTIFICATE OF INDEPENDENCE" U/S 149(6) FROM INDEPENDENT DIRECTORS

Pursuant to Schedule IV and Section 149(6) of the Companies Act, 2013, the Board has independent directors and there is appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and duties effectively. The independent directors have submitted a declaration that the independent directors meet with the criteria of independence as required under Section 149(6) of the Companies Act, 2013.

DIRECTOR'S RESPONSIBILITY STATEMENT

Pursuant to section 134(5) of the Companies Act, 2013, the Directors hereby confirm:

1. That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

2. That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

3. That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. That the directors had prepared the annual accounts on a going concern basis;

5. That the directors, had laid down internal financial controls to be followed by the Company and that such internal financial control; arc adequate and were operating effectively; and

6. That 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.

Information on material orders passed by the regulators or courts or tribunals:

Pursuant to rule 8(5Xvii) of the Companies (Accounts) Rules, 2014 there are no material orders passed by the regulators or courts or tribunals impacting the going concern status and Company's operations in finite.

RELATED PARTY TRANSACTIONS

During the financial year 7014-1S, then is no materially significant related party transaction with the Pnmpany1' promoters, directors, the management, their subsidiaries or relatives which may have potential conflict with the interest of the Company at large. The necessary disclosures regarding the related party transactions are given in the notes to accounts. The Company has formulated a policy on dealing with the Related Party Transactions and necessary approval of the Audit Committee and Board of Directors were taken wherever required in accordance with the Policy. The Company has also formulated a policy for determining the material related party transactions and the details of such policies for dealing with related party transactions are disseminated on the website (under reports and disclosures Section ' ) of the Company www.satincreditcare.corn

Particulars of Contracts or Arrangements with related parties referred to in Section 188(1) is given in Form AOC- 2 as Annexure -1. Justification for entering into related party transactions:

In order to broaden the horizon of working areas and to diversify the risk of business, the Company has discussed and approved the proposal to enter into a service agreement with Taraashna Services Private Limited (a private limited company engaged in the business of providing business correspondent services) vide resolution passed in its Board meeting held on 13th November, 2013. Except to the extent of directorship/ shareholding (directly or through related party), of Mr. H P Singh. Chairman cum Managing Director and Mr. Satvinder Singh, Director of the company, no other Director or KMP are in anyway concerned or interested in aforesaid related party transaction. Further, the remuneration is paid to Mr. H P Singh. Chairman cum Managing Director and sitting fee to non-executive directors at the rate of Rs. 10,000/- for each Board meeting attended and are shown under Related party disclosures segment under "notes to the account" of Balance Sheet in terms of Accounting Standard 18 issued by The Institute of Chartered Accountants of India.

AUDITORS & THEIR REPORTS

Statutory Auditors & their Report:

M/s A.K. Gangaher & Co., Chartered Accountants, the existing auditors of the Company retire at the conclusion of this Annual General Meeting and being eligible, offer themselves for re-appointment. The retiring auditors have furnished a certificate of their eligibility for re-appointment under Section 139(1) of the Companies Act, 2013 and Companies (Audit and Auditors) Rules. 2014.

The same was discussed in the Audit Committee meeting. Your director! recommend their re-appointment. The Company has received audit report from M/s A. K. Gangaher & Co., Chartered Accountants.

Secretarial Auditors & their Report:

In terms of Section 204 of the Companies Act, 2013 and Rules framed there under and on the recommendation of the Audit Committee, the Board of Directors of the Company have appointed M's S. Behera & Co. Company Secretaries (ICSI PCS Registration No. 980) as the Secretarial Auditor of the Company for the financial year 201S-20I6. The Company has received consent from M/s S. Behera & Co. Company Secretaries, for their appointment.

The Board of Directors has appointed M/s S. Behera & Co. Company Secretaries (ICSI PCS Registration No. 5980) as the Secretarial Auditor of the Company in relation to the financial year 2014-15. The Secretarial Audit for financial year 2014-15 was conducted and the report is available on the Company's website www.satincredltcare.con. Any member interested in hard copy of the Secretarial Audit Report may inspect the same at the Registered Office of the Company or write to the Company Secretary for a copy. Secretarial audit report as provided by M/s S. Behera & Co. Company Secretaries (ICSI PCS Registration No. 5980) is also annexed to this Report as Annexure-II.

Qualifications in Audit Reports:

Your Directors do not observe any qualification, reservation or adverse remark or disclaimer made by the statutory auditor in his report and by the company Secretary in practice in his secretarial audit report.

AUDIT COMMITTEE

The Company has an Audit Committee in accordance with the provisions of Section 177 of the Companies Act, 2013 and in accordance with Equity Listing agreement and as per other applicable laws. All members of the Committee are financially literate within the meaning of the Clause 49 of the listing agreement. The Chairman of the Committee was present at the last Annual General Meeting to answer the queries of the Shareholders. The scope of the activities of the Audit Committee is as set out in clause 49 of the Equity Listing Agreements with the Stock exchanges read with Section 177 of the Companies Act, 2013 and other applicable laws. In terms of Section 1 '7(4) providing the terms of reference for the Audit Committee, the Board has approved a comprehensive guidance note including terms of reference for the Audit Committee working. The composition of the Audit committee and the details of meetings attended by the Directors are provided in Corporate Governance Report Section of this Annual Report.

DIVIDEND

The Company has accounted for in its financial statements the necessary dividend for fully paid up 12% Cumulative, Rated, Non Participative, Non-Convertible, and Compulsorily Redeemable Preference Shares. Directors of your Company have recommended a final dividend of Rs. 74,04,000/-(Rupees Seventy Four Lacs Four Thousand Only) for Fully Paid 6,00,000 Preference Shares for the financial year 2014-15, which is subject to your approval The total dividend pay-out for the financial year will amount to Rs 74,04,000/- (Rupees Seventy Four Lacs Four Thousand Only)(excluding dividend distribution tax). Further, in order to undertake and carry on future plans, it is necessary to conserve the resources. Further, your directors are of the opinion of retaining the profits for the year within the Company, and thus have not recommended any dividend on equity shares for the year ended 31st March, 2015.

CORPORATE SOOAL RESPONSIBILITY

As per Section 135 of the Companies Act, 2013, all companies having net worth of Rs. 500 Crore or more, or turnover of Rs. 1,000 Crore or more or a net profit of Rs. 5 Crore or more during any financial year will be required to constitute a Corporate Social Responsibility (CSR) committee of the Board of Directors comprising trace or more directors, at least one of whom will be an independent director. To meet the requirement of provisions of Sections 135 of the Companies Act 2013. and read with The Companies (Corporate Social Responsibility Policy) Rules, 2014 and Schedule VII of the Companies Act 2013, the Board of Directors has constituted the Corporate Social Responsibility Committees vide resolution passed in its meeting held on 26th May, 2014. The CSR Committee vide its meeting dated 09th February, 2015 approved and recommended to the Board for its approval a policy known as CSR policy, which indicates the activities to be undertaken by the Company as specified under Schedule VII of Companies Act, 2013. Further, the Company in its Board meeting dated 09thFcbruany, 2015 approved the detailed CSR policy.

Now as per the requirement of Rule 8(1) of The Companies (Corporate Social Responsibilities) Rules, 2014 the Annual Report on CSR is annexed as Annexure III to this report and the same is posted on the website of the Company i.e. www.satincreditcare.eom

E-VOTING

The Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the Notice. This is pursuant to section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014 and Clause 35B of the Listing Agreement. The above Rule 20 of the Companies (Management and Administration) Roles, 2014 have been amended on 19thMarch, 2015 to introduce a new concept of e-voting i.e. E-Voting at general meeting through all electronic voting system. To comply with the requirements of new Companies Act, 2013 and to ensure good governance for its members, your Company has provided c-voting facility for its last three general meetings to enable its members to participate in the voting electronically. The intimation(s) for e-voting for ensuing Annual General Meeting is also provided with notice to shareholders of this Annual Report.

EMPLOYEES STOCK OPTION PLAN:

As against 4,25,000 Equity Shares issued to Satin Employees Welfare This under Satin ESOP 2009, the Company granted 1,50,000 Options to two employees of the Company as per the terms of Satin ESOP 2009 on 12 th January, 2010. These Options are invested and exercised as per terms set out under ESOP 2009. As of now, 1,50,000 shares are transferred to employees and are now free from lock- in.

Further, the Company granted 98,300 Options out of remaining 2,75,000 Equity Shares to various employees as per the terms of Satin ESOP 2009 on 02nd December, 2013 out of which 29,090 Options were vested and 25,824 were exercised on 2nd December, 2014. The exercised shares are in lock in period of one year from the date of transfer of shares from Satin Employees Welfare Trust to employees.

INFORMATION REQUIRED TO BE DISCLOSED UNDER SEBI (ESOS & ESPS) GUIDELINES, 1999

Initially, the Company had issued 4,25,000 Equity Shares of Rs. 10/- cash at a Premium of Rs.10/- per share to Satin Employees Welfare Trust under Satin ESOP 2009 on 27th November, 2009 for holding shares on behalf of the Employees and to transfer the said shares to the eligible employees upon exercise of options.

The Company has further, allotted below-mentioned equity shares:

a) 1,00,00) equity shares of Rs. 10/- each at a premium of Rs. 12/- each to Satin Employees Welfare Trust under Satin ESOP 2010 scheme on 22nd June, 2010.

b) 1,50,00) equity shares of Rs. 10/- cash at a premium of Rs. 15/- cash to Satin Employees Welfare Trust under Satin ESOP II 2010 scheme on 21st April, 2011.

Out of 98,300 options granted on 2nd December, 2013,29,090 Options were vested and 25,824 were exercised on 2nd December, 2014.

POLICIES

Vigil Mechanism Whistle Blower Policy:

The Company has established a vigil mechanism policy vide incorporating and adopting a Whistle Blower Policy for directors & employees pursuant to the requirement under section 177(9) of Companies Act, 2013 read with Rule 7 of Companies (Meeting of Board & its Paws) Rules, 2014 and Clause 49 of Equity Listing Agreement in its Board Meeting dated 09"Fcbruany, 2015. The policy empowers the blower to report concern about unethical behavior, actual or suspected fraud or violation of the Company's code of conduct or this policy. The detailed vigil mechanism is communicated to all the directors and employees and is also disclosed on the website of the company www.satincreditcare.com

Policy on Nomination & Remuneration for Directors, Key Managerial Personnel (KMP) & Senior Management and Other Employees:

In pursuance of the Company's policy to consider human resources as its invaluable assets, to pay equitable remuneration to all Directors, Key Managerial Personnel (KMP), Senior Management and other employees of the' Company, to have diversified Board, to harmonize the is privations of human resources consistent with the goals of the Company and in terms of Section 178 of the Companies Act, 2(13 and the listing agreement as amended from time to time and Rules/ Regulations/ Guidelines/ Notifications issued by Securities and Exchange Board of India (SEB1) from time to time, the policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management which includes within It a policy for having a Diversified Board and Familiarization programme for Independent Director has been formulated and approved by the Board of Directors vide its meeting dated 09" February, 2015. This policy shall act as a guideline for determining, inter-alia, qualifications, positive attributes and independence of a Director, diversification of the Board, matters relating to the remuneration, appointment, removal and evaluation of performance of the Directors, Key Managerial Personnel, Senior Management and other employees of the Company. The Company shall familiarize the 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 etc., through various programmes. The details of such familiarisation programmes is posted on the Company's website vide weblink http://ww-w.satinereditcare.com/pdf/Nominatinn- and-Remuneratfon-Policy.pdf.

Corporate Social Responsibility Policy:

Corporate Social Responsibility (hereinafter referred to as 'CSR') is a buzz word now a days for corporate. Even your Company has recognized its importance quite early therefore it has vide resolution passed in its Board Meeting dated 26th May, 2014 has constituted the Corporate Social Responsibility Committee. Further, Corporate Social Responsibility Committee in its meeting dated 09" February, 2015 has framed Corporate Social Responsibility Policy (hereinafter referred to as Policy') pursuant to the requirement of Section 135( 1) & (3) of the Companies Act, 2013 along with The Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time. In the aforesaid backdrop, policy on Corporate Social Responsibility of the Company is broadly framed taking into account the welfare measures for the community at large so as to ensure the poorer section of the society deriving the maximum benefits. It also aims to contribution to the society at large by way of social and cultural development, imparting education, training and social awareness especially with regard to the economically backward class for their development and generation of income to avoid any liability of employment

Risk Management Policy:

The Company has framed a policy under clause 49(VI) of the Listing Agreement to evaluate and monitor company risks and develop comprehensive strategy to mitigate various type of risks and take corrective actions in order to prevent adverse events. The risks involved are Financial Risks. Operational Risks and External Risks.

Related Party Transaction Policy:

Related Party Transaction Policy is adopted by the Board of Directors of the Company vide its meeting dated 09th February. 2015 pursuant to the compliances under the provisions of the Section 188 of the Companies Act, 2013 read with Rule 15 of The Companies (Meetings of Board and its Powers), Rules, 2014 and Clause 49(VII) of the Equity Listing Agreement. The objective behind framing the policy is to ensure that certain Related Party Transactions are managed and disclosed in accordance with the strict legal and accounting requirements to which the Company is subject.

All Related Party Transactions shall require approval of Audit Committee and said Committee will review and may amend this policy from time to time. The policy on Related Party Transaction is posted on website of the Company and weblink of the Company is www.satincreditcare.com/pdf/Related-Party-'Transaction-Policy.pdf.

Sexual harassment policy for women under The Sexual Harassment of Women at workplace (Prevention Prohibition and Redressed) Act. 2013:

Your Company is committed to ensure fair environment for its executives, staff and workers. In compliance of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressed) Act. 2013, the Company has adopted Sexual Harassment Policy approved vide Board of Director's meeting held on 10th January, 2015 which ensures a free and fair enquiry process with clear timelines. Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressed) Act, 2013.

MANAGEMENT DISCUSSION AND ANALYSIS Resources and liquidity

During the year, the Company has been availing various credit facilities from various Banks, lenders and from institutions for its microfinance operation which is the main activity of the Company. The Company has raised debt funds through term loan, cash credit limit, Inter Corporate Deposit, listed/unlisted Non-Convertible Debenture and also raised funds through securitization/ assignment transactions. In over 24 years of operation, Satin has developed partnerships with over 50 public sector banks, private sector banks, foreign banks and other domestic and overseas financial institutions. There have been no delays/defaults in servicing of principal and interest with respect to the said borrowings. The Company has enhanced its trust and credibility with Banks and financial institutions over time thus getting increased exposure from them. During the month officially, 2014, the Company raised subordinated debt (long- term tier-II) of Rs 21 Crores by issuing NCDs the Company has also raised money amounting to approx. Rs. 41.20 Crores and subordinated debt of approx. Rs 21.19 Crores on 23rd December. 2014 is External Commercial Borrowing. The Company has obtained the shareholders' approval at the Extraordinary General Meeting to issue equity shares and warrants convertible into equity. The Company is in the process of taking the necessary approval to close the transaction.

Credit Analysis and Research Limited (CARE) has reaffirmed the Long Term Facilities Rating of SCNL of CARE BBB (Triple B Plus) aggregating Rs. 1.300 Crores.

In view of the overall positive environment in the Microfinance Industry in India and better regulatory clarity, the overall liquidity and funding to MFIs his further improved. The Company has been regular in repayment to all its lenders and has excellent relationship with all the financial institutions and banks.

Industry Scenario

In 2010-11, India's microfinance market was facing difficult time but today, it can be said that the microfinance sector in the India has emerged from this crisis stronger than before. The Industry has matured with stronger institutions, the credit bureaus are functional, the investors and lenders are back in business, there is greater focus of the government on financial inclusion with launch of Micro Units Development and Refinance Agency (Mudra) Bank, greater regulatory clarity, RBI considering giving new license for Small and Payment banks etc. In view of the above, there are better days ahead for Indian Microfinance industry.

Business Review

The Company has done well during the financial year 2014-15 as compared to last year and it's peers in the industry. The Company has leadership position in the underpenetrated North India. The portfolio quality and operating cost of the Company is amongst the best in the industry. The Company has an experienced and stable management team and Board of Directors. The Company is hopeful of performing well during the content year.

Opportunities

Financial sector development provides small enterprises and households with market access leading to their inclusion in the regional and ultimately the global economy. RBI has recently increased the limit of eligible borrowers to whom NBFC-MFI can lend and further liberalized some norms which is good for the growth of the industry and for the borrowers. This has improved the support and confidence of all stakeholders for the microfinance sector. The Company is operating in Northern and Central India and the reach of other MFIs is comparatively less and hence there is a huge opportunity to be tapped and large population to be served. The Company is making all efforts to use its experience of working in the same geography for last many years.

Challenges

While the regulatory environment has improved the stakeholder's confidence still continue to be exposed to inherent risks in business model. Given that die microfinance borrowers belong to low income segment, customers are more prone to default. Moreover, with MFI operations concentrated in specific geographies, geographic concentration risks persist, these risks include natural disasters, social unrests, or political upheavals. The Reserve Bank of India has issued a series of circulars, directions and notifications to give the required regulator/ clarity. Also the MFI industry has also collectively worked to bring back the stakeholders' confidence by working responsibly. The Company has a strong and experienced Board having multiple personalities having experience in different areas. The Company's senior management team has expertise in their respective field and the Company has geographical advantage, lime tested systems and processes, effective internal audit and risk department, association with a large number of lenders and clean repayment track record, good credit rating in the sector which helped the Company to achieve the performance better than its competitors.

Outlook

The overall outlook for the Microfinance Industry has improved during the financial year 2014-15. The Reserve Bank of India has issued a number of circulars and provided the required regulatory clarity. A major outcome of the guidelines was the involvement of credit bureaus to record and monitor the creditworthiness of borrowers. There is greater emphasis today on credit score prior to disbursement of leans, and subsequent data sharing with credit bureaus. The credit bureau checks enable MFIs to assess the extent of leverage of prospective customers and their repayment track record. Additionally, the Microfinance Institutions Network (MFIN) has prescribed a code of conduct that provides guidelines for MFI operations and greater uniformity in their functioning.

Risk & Concerns

The Company is exposed to financial, operational and political risks. Because an Mrfs. loan portfolio is its most valuable asset, the financial risks i.e. credit, market and liquidity are of greatest concern.

Financial risks begin with the possibility that a borrower may not pay the loan on time with interest (credit risk). They include the possibility that the MFI might lose a significant part of the value of loan portfolio as a result of an economic downturn, hyperinflation, and other externally generated causes (market risk). Fanatical risk can also include changes in interest rates of government lending programs or the possible enforcement of laws. Marked risks include lower prices for borrowers' products and services, which could directly affect their ability or willingness to repay an outstanding loan. MFIs should be particularly aware of liquidity risk the lack or shortage of funds for current and future expenses or loans. Liquidity risk can result from an overly aggressive lending strategy, law levels of on-time payment and seasonal variations of demand or unanticipated expenses.

To prepare for these risks, Company usually hold in reserve certain percent of assets in cash and in short-term assets. The Company maintain reserves and provisions in its financials for meeting expected or unexpected future contingencies. The Company follows a conservative financial approach by following prudent business and risk management practices.

Adequacy of internal controls

The Company has proper and adequate internal controls systems to ensure that all activities are monitored and controlled against any unauthorised use or disposition of assets, misappropriation of funds aid to ensure that all the transactions are authorised, recorded, reported and monitored correctly. For the purpose of correctness and accuracy the process of job rotation is followed in different departments. The Company has adequate working infrastructure having computerization in all its operations including accounts and MIS.

The Company has established an Audit Committee to review and strengthen the adequacy of internal control. The internal auditors of the Company conduct audit of various departments based on an annual audit plan covering key are a of operations and reviews and evaluates the adequacy and effectiveness of internal controls, ensuring adherence to operating guidelines and systems and recommending improvements for strengthening them.

Human Resource Development

The Company has young, capable, experienced and dedicated manpower and various professionals support from in house and external sources with expertise in different areas leading the growth of Company towards better operational and financial position.

The number of employers as at 31st March. 2015 stood at 1788 (Previous Year 1243)

DEPOSITS

The Reserve Bank of India in exercise of its powers under The Reserve Bank of India Act, 1934, has granted NBFC-MFI (Serial No. B-14.01394) statutory to the Company and the Company has no public deposit. The Board of Directors of the Company has passed a resolution that the Company will not accept public deposit during 2015-16.

RESERVE BANK OF INDIA-REGISTRATION AND DIRECTIONS

Your Company has been following all relevant guidelines issued by Reserve Bank of India from time to time. The Company has decided not to accept the public deposits with effect from 20" November, 2004. The Company had intimated the same to Reserve Bank of India. Further, your Company has Capital Adequacy Ratio of 15.67% as on 31' March, 2015. The Reserve Bank of India on 27Â° November, 2014 issued Guidelines for Licensing of Small Finance Banks in the Private Sector. The object of Small Finance Banks shall be to primarily undertake basic banking activities of acceptance of deposits and lending to un served and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganized sector entities by provision of savings vehicles. There will not be any restriction in the are a of operations of small finance banks. The small finance bank will be subject to all prudential norms and regulations of RBI as applicable to existing commercial banks including requirement of maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). In pursuance to aforesaid guidelines the Company on 24" January, 2015 has applied with Reserve Bank of India for a License to operate as 'Small Finance Bank'.

CORPORATE GOVERNANCE

As required under Clause 49 (X) of the Listing Agreement entered into by the Company with the Stock Exchanges, a detailed report on corporate governance has been provided in a separate Section which forms part of this annual report The Company has complied with the requirements of Corporate Governance that have to be made in this regard. The requisite certificate from M/s A. K. Gangaher & Co., the statutory auditors of the company regarding compliance with the conditions of Corporate Governance as stipulated in Clause 49 is annexed to this report.

PARTICULARS OF EMPLOYEES

In terms of Section 197(12) of the Companies Act, 2013 read with Rule 5, Sub-Rule (1), (2) & (3) of Companies (Appointment & Remuneration) Rules, 2014. the necessary disclosures are annexed as Annexure IV with this report.

LISTING WITH STOCK EXCHANGES

Equity Shares of your Company were listed on Delhi Stock Exchange Limited, Ludhiana Stock Exchange Limited and Jaipur Stock Exchange Limited Securities and Exchange Board of India (SEBI) has derecognized all the three exchanges during the financial year 2014-15. The Board of Directors of the Company vide its meeting held on 26" May, 2014 approved the proposal of filing of application with BSE Limited in the interest of all stakeholders of the Company and filed the application on 3
Your Company has no dues pending with the above said Stock Exchanges

EXTRACT OF ANNUAL RETURN

In terms of requirement made under Section 92 and Section 134(3Xa) of the Companies Act. 2013 read with applicable rules of The Companies (Accounts) Rules, 2014, extract of annual return forms part of this Directors' Report and annexed as Annexure V.

OTHER INFORMATION

Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3)(A)(B) of the Companies Accounts), RuIes,20I4

Particulars on Conservation of Energy, Technology Absorption

Being into the business of Non-Banking Financial Business activities, provision pertaining to conservation of energy, technology absorption are not applicable.

ACKNOWLEDGEMENTS

Your Directors would like to place on record their gratitude for the cooperation received from lenders, our valued customers and shareholders. The Board, in successful wishes to plate on accord it since appreciation of the contribution made by all the employees towards growth of the Company.

For and on behalf of the Board of Directors

Place: Delhi (H P Singh)

Dated: 25th May. 2015 Chairman cum Managing Director

Mar 31, 2014

Dear Members,

The Directors take pleasure in presenting the Twenty Forth Annual Report of the Company together with the Audited Accounts for the financial year ended 31st March, 2014.

(Rs. In Lacs)

Particulars Current Year Previous year

Gross Income 19,165.49 9,433.06

Expenses 16,752.75 8,836.67

Profit before Depreciation and tax 2,412.74 596.39

Depreciation and NonCash Expenditure 71.47 61.36

Profit before Tax 2,341.27 535.03

Provision for Tax (including Deferred Tax and other adjustment) 785.51 145.20

Profit after Tax 1,555.76 389.83

Brought forward from Previous Year 1,014.46 702.60

Profit available for appropriation 2,570.22 1,092.43

Transfer to Statutory Reserve Fund 311.14 77.97

Proposed Dividend-Preference Share Capital @12.34% 6.49 -

Dividend Distribution Tax 1.10 -

Surplus carried to Balance Sheet 2,251.49 1014.46

OPERATIONS, PROSPECTS AND FUTURE PLANS

- After successful 2012-13, the financial year 2013-14 has also been a good year for the Company and your Company has performed better than previous year on most parameters. The Company remained focused on microfinance operations. The Company has expanded its outreach by increasing its penetration from existing branches and by opening new branches in the Northern / Central India primarily in the rural and semi urban areas to achieve its objective of financial inclusion. The Company has further strengthened its processes to provide better services to its borrower and maintain good portfolio quality. During the financial year 2012-13, the Company had started operation in the states of Jammu and Punjab and has good portfolio quality in these geographies. We are hopeful of achieving even better results in the current financial year.

- The Company has raised Rs. 1,120.74 Crores (Previous Year Rs. 708.92 Crores) during the financial year 2013-14 through term loan, cash credit limit, inter corporate deposit, Non Convertible Debentures and securitization/ assignment transactions. Your Company has been regular in discharging its liabilities to all lenders and is enjoying cordial relationship with all of them. The Company has for the first time raised Tier II Capital by issuing "12% Cumulative, Rated, Non Participative, Non Convertible and Compulsorily Redeemable Preference Shares".

- During the financial year, the Company has disbursed Rs. 1,22,920.28 Lacs (Previous Year Rs. 62,640.63 Lacs) showing a growth of 96.23% over the previous year. The gross income during the year has been Rs. 19,165.49 Lacs (Previous Year Rs. 9,433.06 Lacs) showing a growth of 103.17% over the previous year. The Net Profit after Tax has increased from Rs. 389.83 Lacs during the financial year 2012-13 to Rs. 1,555.76 Lacs during the financial year 2013-14 showing a growth of 299.09 %.

- Pursuant to provisions of Section 78 of the Companies Act 1956, during the year the Company has utilized an amount of Rs. 69.23 Lacs (Previous Year Rs. 129.23 Lacs) out of Securities Premium Reserves towards writing off the incidental expenditure incurred in issuing Rated, Listed, Secured, Redeemable Non Convertible Debenture and 12% Cumulative, Rated, Non Participative, Non Convertible and Compulsorily Redeemable Preference Shares.

- CARE has upgraded BASEL II andNCD rating of the Company from BBB- (Triple B Minus) to BBB (Triple B). The Grading of the Company is also upgraded from MFI 2 to MFI 2 in July, 2013. The Company has received MFT transparency certificate for the period August 2013 to August 2014.

- The Company has received Non Banking Finance Company - Microfinance Institution (NBFC-MFI) registration certificate dated 06th November, 2013 from the Reserve Bank of India.

- In order to retain its key employees the Board has decided to offer ESOP options to 29 staff members for 98,300 equity shares.

- During the financial year 2013-14, there is further clarity on the regulations for NBFC - MFIs which has improved the confidence of all stakeholders for the microfinance industry. Keeping in view all factors, the Company has budgeted moderate growth for the current financial year. The overall funding position has improved and we are hopeful of performing well during the current financial year.

SUBSIDIARY COMPANIES

The Company had no subsidiary company at any time during the financial year 2013-2014.

DIRECTORS

Shri Davis Frederick Golding retires by rotation and being eligible offers himself for his re-appointment. The Nomination Committee has recommended his re-appointment for consideration of the shareholders.

Shri Rakesh Sachdeva, Shri Sujan Singh Chawla, Shri Sundeep Kumar Mehta and Smt. Sangeeta Khorana are Independent Directors of the Company. As per their existing terms of appointment, the period of their office is liable to determination by retirement by rotation in terms of Section 152 of the Companies Act, 2013. Out of them, Smt. Sangeeta Khorana is liable to retire by rotation at this Annual General Meeting. Smt. Sangeeta Khorana joined the Company on 01st October, 2013 as an Additional Director and as per the provisions of Section 260 of the Companies Act, 1956. She will hold office as a Director only till the date of this Annual General Meeting. Brief resume of these Directors, their educational and professional qualifications, nature of their working experience, their achievements, name(s) of the companies in which they hold directorships, memberships and chairmanships in various Committees, their shareholding in the Company, relationship between directors inter-se are provided in Corporate Governance Report forming part of the Annual Report. The Nomination Committee has recommended their appointment for consideration of the shareholders.

Shri Ole Peder Sandsbraaten was appointed as an Additional Director of the Company in the Board meeting held on 26th May 2014. The tenure of his office as Director comes to an end at the commencement of the forthcoming Annual General Meeting of the members of the Company. The Nomination Committee has also recommended his appointment for consideration of the shareholders.

Shri Naresh Khanna has resigned from Directorship of the Company on 22nd November, 2013. The Directors wish to place on record their appreciation for the contribution made by Shri Naresh Khanna during his tenure.

During the year 4 (four) Board Meetings were held. These Board Meetings were held on 29th May, 2013, 09th August, 2013. 12th November, 2013 and 12th February, 2014.

STATEMENT ON DECLARATION "CERTIFICATE OF INDEPENDENCE" U/S 149 (6)

Pursuant to Schedule IV and Section 149(6) of the Companies Act, 2013, the Board has independent directors and there is appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and duties effectively. The independent directors has submitted a declaration that the independent directors meet with the criteria of independence as required under Section 149(6) of the Companies Act, 2013.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per the Companies Act, 2013, all companies having net worth of Rs. 500 crore or more, or turnover of Rs. 1,000 crore or more or a net profit of Rs. 5 crore or more during any financial year will be required to constitute a corporate social responsibility (CSR) committee of the Board of Directors comprising three or more directors, at least one of whom will be an independent director. Aligning with the guidelines, we have constituted a committee comprising Shri H P Singh (Chairperson), Shri Rakesh Sachdeva, Smt. Deepa A. Hingorani and Smt. Sangeeta Khorana. The committee is responsible for formulating and monitoring the CSR policy of the Company. The Company is in the process of carving the role of the Committee which inter alia shall include to formulate and recommend to the Board, a CSR policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII of the Companies Act, 2013 and to recommend the amount of expenditure to be incurred and monitor the CSR policy of the company from time to time.

E-VOTING

The Company is providing e-voting facility to all members to enable them to cast their votes electronically on all resolutions set forth in the Notice. This is pursuant to section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014. The instruction(s) for e-voting is provided in the Notice.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS PROVIDED UNDER SUB-SECTION (3) OF SECTION 178 OF COMPANIES ACT, 2013

The Company has a Nomination Committee comprising of Shri H P Singh, Shri Rakesh Sachdeva, and Shri Sundeep Kumar Mehta. Shri H P Singh is Chairman of the nomination committee. The nomination committee has been re-constituted with Shri Rakesh Sachdeva being the chairman of the committee and Shri H P Singh and Shri Sundeep Kumar Mehta as the members of the committee with effect from 26th May, 2014. The nomination Committee had formulated the selection crieteria for determining qualification, positive attributes and independence of directors and recommended to the Board of Directors a policy relating to the remuneration for the directors, key managerial personnel and other employees of the Company. The Board shall consider the same in due course of time.

EMPLOYEES STOCK OPTION PLAN:

a) As against 4,25,000 Equity Shares issued to Satin Employees Welfare Trust under Satin ESOP 2009, the Company granted only 1,50,000 Options to the below-mentioned employees as per the terms of Satin ESOP 2009 on 12th January, 2010:

S. No. Name of Employee No. of Options

i) Shri Jugal Kataria 1,00,000

ii) ShriVivekTiwari 50,000

Out of 1,50,000 Options granted to the above-stated employees,

First l/3rd of total options were vested to the said employees on 12th January, 2011 which was duly exercised by them on 12th January, 2011. Subsequently, 33,333 Equity Shares were transferred from Satin Employees Welfare Trust to Shri Jugal Kataria and 16,667 Equity Shares to Shri Vivek Tiwari pursuant to exercising of said options. Second l/3rd of total options were vested to the said employees on 12th January, 2012 which was duly exercised by them on 12th January, 2012. Therefore, 33,333 Equity Shares were transferred from Satin Employees Welfare Trust to Shri Jugal Kataria and 16,667 Equity Shares to Shri Vivek Tiwari pursuant to exercising of said options. Third l/3rd of total options were vested to the said employees on 12th January, 2013 which was duly exercised by them on 12th January, 2013. Hence, 33,334 Equity Shares were transferred from Satin Employees Welfare Trust to Shri Jugal Kataria and 16,666 Equity Shares to Shri Vivek Tiwari pursuant to exercising of said options.

As of now, entire shares are transferred to above employees of the Company and are now free from lock-in.

b) Further to above, the Company granted 98,300 Options against 4,25,000 Equity Shares issued to Satin Employees Welfare Trust under Satin ESOP 2009, to various employees as per the terms of Satin ESOP 2009 on 02nd December, 2013.

INFORMATION REQUIRED TO BE DISCLOSED UNDER SEBI (ESOS & ESPS) GUIDELINES, 1999

Initially, the Company had issued 4,25,000 Equity Shares of Rs. 10/- each at a Premium of Rs.10/- per share to Satin Employees Welfare Trust under Satin ESOP 2009 on 27th November, 2009 for holding shares on behalf of the Employees and to transfer the said shares to the eligible employees upon exercise of options.

The Company has further, allotted below-mentioned equity shares:

a. 1,00,000 equity shares of Rs. 10/- each at a premium of Rs. 12/- each to Satin Employees Welfare Trust under Satin ESOP 2010 scheme on 22nd June, 2010.

b. 1,50,000 equity shares of Rs. 10/- each at a premium of Rs. 15/- each to Satin Employees Welfare Trust under Satin ESOP II 2010 scheme on 21st April, 2011.

Details of stock options as required to be disclosed pursuant to Clause 12 of SEBI (ESOS & ESPS) Guidelines, 1999 as specified below:

S. No. Particulars Satin ESOP 2009 (Remarks)

1. Options Granted till date 2,48,300

2. Pricing Formula Rs. 20/- being the FaiT Value of the shares of the Company (Computed on the basis of Audited result FY 2008-09).

J. Options Vested 1,50,000

4. Options Exercised 1,50,000

5. Total no. of shares arising as a result 1,50,000 of exercise of options

6. Options lapsed NIL

7. Variation of terms of options Not Applicable

8. Money realized by exercise of options Rs. 30,00,000/-

9. Total no. of options in force 98,300

l0. Employee wise details of options granted to

10 (i) Senior Managerial Personnel 1. Shri Jugal Kataria (Chief Financial Officer) - 1,00,000

2. Shri Vivek Tiwari (Chief Operating Officer) -50,000

10 (ii) Any other employee who receives a Please refer the above Table grant in any year of option amounting to 5% or more of option granted during that year

10 (iii) Identified employees who were granted Please refer the above Table options, during any one year, equal to or exceeding 1% of the Issued Capital (excluding outstanding warrants and conversions) of the Company at the time of Grant.

11 Diluted Earnings Per Share (EPS) As all the shares have pursuant to issue of shares on exercise been allotted to the Satin of option calculated in accordance Employees Welfare Trust, with Accounting Standard 20. the EPS for the year ending 31st March, 2014 contains the effect of the same.

12. Where the company has calculated the The Company is calculating employee compensation cost using the employee compensation the intrinsic value of the stock options, cost by using the Fair value the difference between the employee of the shares. compensation cost so computed and Therefore, the requirement the employee compensation cost to disclose the difference that shall have been recognized if it between the employee had used the fair value of the options, compensation cost so shall be disclosed. The impact of this computed and the employee difference on profits and on EPS of the compensation cost 1S not company shall also be disclosed. applicable.

13. Weighted-average exercise prices Not Applicable. and weighted-average fair values of As The Shares of the options shall be disclosed separately Company are listed at DSE, for options whose exercise price either LSE and JSE that do not equals or exceeds or is less than the offer any trading platform market price of the stock therefore the market price of the shares is not available

14 A description of the method and Not Applicable significant assumptions used during the year to estimate the fair values of options, including the following weighted-average information:

(i) risk-free interest rate,

(ii) expected life,

(iii)expected volatility,

(iv)expected dividends, and

(v) the price of the underlying share in market at the time of option grant.

Particulars Satin ESOP 2010 Satin ESOP II2010 (Remarks) (Remarks)

Options Granted till Date Nil Nil

Pricing Formula Rs. 22/- being the Fair Rs. 25/- being the Fair Value of the shares Value of the shares of the Company, of the Company. (Computed on the (Computed on the basis of Audited basis of Audited result FY 2009-10) result FY 2009-10)

Options Vested Not Applicable Not Applicable

Options Exercised Not Applicable Not Applicable

total no. of share Not Applicable Not Applicable arising as a result of exer- cise of options

options lapsed Not Applicable Not Applicable

Variation of Not Applicable Not Applicable terms of option

Money Realized Not Applicable Not Applicable by exercise of option

Total No. of Not Applicable Not Applicable options in force

Employee wise details of options granted to

Senior Managerial Not Applicable Not Applicable Personnel

Any other employee who Not Applicable Not Applicable receive a grant in any year of option amounting to 5% or more of option granted during that year

Identified Not Applicable Not Applicable employees who were granted options, during any one year, equal to or exceeding 1% of the Issued Capital (excluding outstan- ding warrants and conversions) of the Company at the time of Grant.

Diluted Earnings Not Applicable Not Applicable Per Share (EPS) pursuant to issue of shares on exer- cise of option calculated in accordance with Accounting Standard 20. Where the company Not Applicable Not Applicable has calculated the employee compen sation cost using the intrinsic value of the stock options, the difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognized if it had used the fair value of the options, shall be disclosed. The impact of this difference on profits and on EPS of the company shall also be disclosed.

Weighted-average Not Applicable Not Applicable exercise prices and weighted- average fair values of options shall be disclosed separately for options whose exercise price either equals or exceeds or is less than the market price of the stock

A description of Not Applicable Not Applicable the method and significant assum ptions used during the year to estimate the fair values of options, including the following weighted-average information:

(i) risk-free interest rate,

(ii) expected life,

(iii)expected volatility,

(iv)expected dividends, and

(v) the price of the underlying share in market at the time of option grant.

DIVIDEND

The Company has accounted for in its financial statements the necessary Dividend for Fully Paid Up 12% Cumulative, Rated, Non Participative, Non Convertible, and Compulsorily Redeemable Preference Shares. Directors of your Company have recommended a final dividend of Rs.6,49,118 for Fully Paid 60,00,000 Preference Shares for the financial year 2013- 14, which is subject to your approval. The total dividend pay-out for the financial year will amount to Rs.6,49,118 (excluding dividend distribution tax). Further, in order to undertake and carry on future plans, it is necessary to conserve the resources. Your Directors are of the opinion of retaining the profits for the year within the Company, and thus have not recommended any dividend on equity shares for the year ended 31st March, 2014.

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Review

Satin Credit care Network Limited (SCNL) has received the fresh registration certificate from Reserve Bank of India as Non Banking Finance Company - Microfmance Institution (NBFC-MFI). It has reported satisfactory financial and operating performance during the financial year 2013-2014. The disbursement during the year has been Rs. 1,22,920.28 Lacs (Previous Year Rs. 62,640.63 Lacs). The Gross Income during the year has been Rs.19,165.49 Lacs (Previous Year Rs. 9,433.06 Lacs). Depreciation and Non Cash expenditure during the year has been higher at Rs. 71.47 Lacs (Previous Year Rs. 61.36 Lacs). The net prof1it after tax during the year has been at Rs. 1,555.76 Lacs (Previous Year Rs. 389.83 Lacs). SCNL's net worth stood at Rs. 14,558.52 Lacs (Previous Year Rs. 12,365.08 Lacs). The Company plans to concentrate only on Non Banking financial activities during the current financial year.

Resources and liquidity

During the year, the Company relied primarily upon Banks and Financial Institutions for its financial needs. The Company has been availing various credit facilities from Allahabad Bank, Ananya Finance for Inclusive Growth Pvt. Limited, Andhra Bank, AXIS Bank Limited, Bank of India, Bank of Maharashtra, BNP Paribas, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Development Credit Bank Limited, Dhanlaxmi Bank, HDFC Bank Ltd, ICICI Bank Limited, IDBI Bank Limited, IFMR Capital Finance Private Limited, Indian Bank, Indostar Private Limited, Induslnd Bank, ING Vysya bank, M. V. Microfinance Private Limited, Maanaveeya Development & Finance Private Limited, MAS Financial Services Limited, Oriental Bank of Commerce, Reliance Capital Limited, Small Industries Development Bank of India (SIDBI), Societe Generate, Standard Chartered Bank, State Bank of India, State Bank of Mauritius Limited, Syndicate Bank, The Hongkong & Shanghai Banking Corporation Limited, The Ratnakar Bank Limited, The South Indian Bank Limited, Union Bank of India and United Bank of India, Vrjaya Bank and Yes Bank Limited for its microfinance operation which is the main activity of the Company. The Company has raised debt funds through term loan, cash credit limit, Inter Corporate Deposit, listed Non Convertible Debenture and also raised funds through securitization / assignment transactions. The Company has for the first time raised Tier II Capital in the form of "12% Cumulative, Rated, Non Participative, Non Convertible, and Compulsorily Redeemable Preference Shares". In view of the overall environment in the Microfinance Industry in India and better regulatory clarity, the overall liquidity and funding to MFIs has further improved. The Company has been regular in repayment to all its lenders and has excellent relationship with all the financial institutions and banks and is quite hopeful of raising funds in future for growth.

Industry Scenario

The overall industry environment has further improved during the financial year 2013-14. The Reserve Bank of India has issued fresh registration certificates to microfinance institutions registered as non banking finance companies (NBFC-MFI). The Reserve Bank of India has issued number of circulars, directions and guidelines on working of NBFC-MFIs. This has improved the support and confidence of all stakeholders for the microfinance sector. However, the Parliament Panel has rejected Micro Finance Institutions (Development and Regulation) Bill, 2012.

Business Review

SCNL has emerged as the largest Microfinance Institution based in Northern India engaged in providing microcredit on joint liability basis and individual lending basis. The Company has expanded its operations in Bihar, Jammu and Punjab during last two years and the experience and portfolio quality has been good in these new states. This has helped the Company to diversify its geographical outreach. The Company is quite focused on its processes and control and has very good portfolio quality. There is huge demand and supply gap in Northern / Central India and hence opportunity to grow the portfolio. The overall funding to the sector has improved. The Company is hopeful of performing well in the current financial year.

Opportunities

For last many years, there has been focus of the Government and the Reserve Bank of India on financial inclusion and the role of MFIs have been accepted by everybody in achieving this objective. MFIs have played an important role in reaching the unreached and to provide them access to finance at affordable rates. In spite of all the focus, there is still a large segment of society, which does not have access to financial service from the formal financial institutions. The Company is operating in Northern and Central India and the reach of MFIs is comparatively less in these geographies as compared to the Southern and Eastern India and hence there is a huge opportunity to be tapped and large population to be served. The Company is making all efforts to use its experience of working in the same geography for last two decade.

Challenges

Microfinance Industry in India has gone through the most challenging times during the last three years. There was lack of regulatory clarity and perception of all stakeholders was negative towards the sector. There were news about multiple lending, excessive interest rates, coercive recovery practices, lack of transparency etc. in the media and hence the overall opinion of all stakeholders was not positive for the sector in spite of the fact that MFIs were providing credit to a large segment of the unbanked population. The funding to the sector (both debt and equity) was drying. The Reserve Bank of India has issued a series of circulars, directions and notifications to give the required regulatory clarity. The MFI industry has also collectively worked to bring back the confidence of all stakeholders by working responsibly. The issue of over ineptness has been addressed by using Credit Bureau report. The confidence of the stakeholders is increasing and the required debt and equity funding is now available.

The Company has a strong and experienced Board of Directors and senior management team, geographical advantage, time tested systems and processes, effective internal audit and risk department, association with a large number of lenders and clean repayment track record, good credit rating in the sector. This has helped the Company to perform well in comparison to its peers.

Outlook

The overall outlook for the Microfmance Industry has improved during the financial year 2013-14. The Reserve Bank of India has issued a number of circulars and provided the required regulatory clarity. Many domestic banks have restarted lending to the sector which has provided the much needed liquidity. The MFIs have also performed responsibly and hence the overall outlook of all stakeholders has become positive.

Risk & Concerns

The Company is exposed to risks like volatility in the Indian economy change in government policies, regulatory uncertainty, increasing borrowing cost, and competition from the banking sector / other MFIs, volatile economic cycle, market risks, concentration risks and credit risks. The Company manages these risks by maintaining a conservative financial profile and by following prudent business and risk management practices.

Adequacy of internal controls

SCNL has proper and adequate internal controls to ensure that all activities are monitored and controlled against any unauthorized use or disposition of assets and that all the transactions are authorised, recorded, reported and monitored correctly. The Company works in computerized environment and all its operations including accounts and MIS are electronic.

SCNL ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines.

An audit committee is in place to review and strengthen the adequacy of internal control.

Strengthening of internal audit and procedure is a continuous process.

Human Resource Development

SCNL has a team of young, able, experienced and dedicated team of professionals at all levels to support the management. The number of employees as at 31st March, 2014 stood at 1243 (Previous Year 877).

DEPOSITS

The Reserve Bank of India in exercise of its powers under The Reserve Bank of India Act, 1934, has granted NBFC-MFI (Seriol No. B-14.01394) status to the Company and the Company has no public deposit.

RESERVE BANK OF INDIA-REGISTRATION AND DIRECTIONS

Your Company has been following all relevant guidelines issued by Reserve Bank of India from time to time. The Company has decided not to accept the public deposits with effect from 20th November, 2004. The Company had intimated the same to Reserve Bank of India. The Company had submitted an application with Reserve Bank of India for certificate of registration for NBFC-MFI status pursuant to the circular issued by Reserve Bank of India vide its circular RBI/2012-13/319DNBS. CC.PD.No.312 /03rd October, 2001/2012-13 dated 07th December, 2012. The company has received the certificate of registration as NBFC-MFI on 06th November, 2013 (in lieu of old certificate of registration No. B-14.01394 dated 04th February, 2009) from the Reserve Bank of India. The Reserve Bank of India in exercise of its powers under The Reserve Bank of India Act, 1934, has granted NBFC-MFI (Seriol No. B-14.01394) status to the Company Further, your company has Capital Adequacy Ratio of 15.31 % as on 31st March, 2014.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000 the Directors confirm:

1. That in the preparation of the annual accounts, the applicable accounting standards have been followed, along with proper explanations relating to material departures;

2. That they have selected such accounting policies and applied them consistently except where otherwise stated in the notes on accounts, and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of financial year and of the profit of the Company for that period;

3. That they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; and

4. That they have prepared the annual accounts on a going concern basis.

CORPORATE GOVERNANCE

As required under Clause 49 (VI) of the Listing Agreement entered into by the company with the Stock Exchanges, a detailed report on corporate governance has been provided in a separate section which forms part of this annual report. The company has complied with the requirements of Corporate Governance that have to be made in this regard. The requisite certificate from M/s A. K. Gangaher & Co., the statutory auditors of the company regarding compliance with the conditions of Corporate Governance as stipulated in Clause 49 is annexed to this report.

AUDITORS & THEIR REPORT

M/s A. K. Gangaher & Co., Chartered Accountants, the existing auditors of the Company retire at the conclusion of this Annual General Meeting and being eligible, offer themselves for re-appointment. The retiring auditors have furnished a certificate of their eligibility for re-appointment under Section 139 (1) of the Companies Act, 2013 and Companies (Audit and Auditors) Rules, 2014. The same was discussed in the Audit Committee. Your directors recommend their reappointment. The Company has received audit report from M/sA. K. Gangaher & Co., Chartered Accountants and your Directors do not observe any adverse remark therein.

PARTICULARS OF EMPLOYEES

During the year under review, there was no employee who was getting remuneration of Rs. 5,00,000 per month / Rs. 60,00,000/- per annum or more as required under Section 217 (2A) of the Companies Act, 1956 and applicable provisions of the Companies Act, 2013 as amended/notified from time to time and also read with the Companies (Particulars of Employees) Rules, 1975 duly amended by Notification dated 31st March, 2011.

LISTING WITH STOCK EXCHANGES

Your Company is listed with following stock exchanges: For Non Convertible Debentures:

1. Bombay Stock Exchange Limited, Floor 25, P J Towers, Dalai Street, Mumbai - 400001 For Equity Shares:

1. Delhi Stock Exchange Limited, DSE House, 3/1 Asaf Ali Road, New Delhi - 110002.

2. Jaipur Stock Exchange Limited, Stock Exchange Building, Jawahar Lai Nehru Marg, Malviya Nagar, Jaipur - 302017.

3. Ludhiana Stock Exchange Limited, Feroze Gandhi Market, Ludhiana - 141001.

Your Company has paid up to date listing fee to each of above named stock exchanges.

OTHER INFORMATION

Information pursuant to clause (e) of sub section (1) of section 217 of the Companies Act, 1956 read with Companies (Disclosures of particulars in the report of Board of directors) Rules, 1988 being not applicable and hence not being disclosed.

FOREIGN EXCHANGE TRANSACTIONS

S.No. [Particulars Current Year (Rs.) Previous Year (Rs.)

Expenditure/Remittances (Outward) in Foreign Exchange

[Travelling Expenses 29,75,430.00 12,31,332.00l

Fees and Subscription 17,07,139.00 117,569.00

Earning/Remittances (Inward) in Foreign Exchange

Share Application Money NIL 30,00,00,177.00

ACKNOWLEDGEMENTS

Your Directors would like to place on record their gratitude for the cooperation received from lenders, our valued customers and shareholders. The Board, in specific, wishes to place on record its sincere appreciation of the contribution made by all the employees towards growth of the Company.

For and on behalf of the Board of Directors

Place: Delhi HP Singh

Dated: 26th May, 2014 (Chairman Cum Managing Director)

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