ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation LimitedASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Contents © AHFCL Vision * About Us -Focus on Affordable Housing - Niche Operations - Experienced Management © OurJourney... Our Performance © OurTarget Market... Our Products & Services... Key Differentiators Focused Policies & Guidelines ~ Customized Product Offerings ~ OurPresence Managing Director & CEO's Message Key Highlights in 2014-15 Porifolio Characteristics. Borrower Charactistic: Loan Book Analysis. Excellence in Business Operations Credit Policy designed as Enabler Robust Lending Suite Centralized Decision Making Board of Directors Senior Management Management Director's Report Annexure'A' to Directors’ Report Annexure 'B'to Directors’ Report Annexure 'C'to Directors' Report Independent Auditors’ Report Financial Statements ey v 13 14-15 16 7 7 7 21 21 21 21 23 25 26-27 30 40 48 56 63 70ACen ORO LT and look forward to contribute towards the Government of India's vision of Housing for All by 2022” Un Cara Ey RC MUN RUC LN ogc uae Ren A Belief can transcend horizons A Belief. This is all what we had when Rec Rta Tae rect Caer ary ma CITE Bc) omen aac oa PCN CUR ee eT tea a meni oe ec lower and middle income families in India. All we had was belief backed eee ree eae es POPe Ct mi Ci) questions about providing an access eee tee eee Cae icra U ne ae va eg Pee ee nee ee] Ola eed eT Rod RSL rl mA Lcd Petr CROMER) eet rece) Pee awe em cr este aaa ae nee ee eae near a caen Aspirations of owning a home are COC ZU eS Pe cule gem Ces OneCart Cie mes ned UPR ec a rer3 aN ASPIRE ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 “AHFCL represents the aspirations of people in growing India who want to own a home but ore underserved by financia inslitulions. These creditworthy customers were largely ignored and hence their quest for home often met a dead end due to lack of financing options available to them. We fee! extremely happy and satisfied to have begun playing a role in bringing difference to their lives. We will continue on this mission with same vigor and aim for sustained growth in years to come” Anil Sachidanand Managing Director & CEOAHFCL Vision “To enable home ownership amongst lower and middle income Indian families by providing hassle free housing loan assistance towards acquiring affordable housing 3 units thereby enhancing ; housing stock in Indio”ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 About Us Professionally managed company focusing on «affordable housing segment, to fulfil the ospirations of en lower and middle income (LM) Indian families of Affordable owning ahome. TT) Works on the business philosophy of financial inclusion of LMI families by providing them an access to long, term housing finance. Operations in an income segment underserved by financial institutions. Exclusive focus on retail housing loans (Maximum loan upto Rs.25 lakhs). Niche Cy Centralized set up with decision making at the Head Office. Strong risk assessment practices at every stage of loan processing, thereby ensuring buildup of quality loon book. Promoted by Motilal Oswal Financial Services Lid (MOFSL) - o well-diversified financial services company focused on wealth creation through knowledge. Mr Motilal Oswal is the chairman of fare AHFCL Board, Management Managed by 0 team of professionals having strong experience in Indion housing finance market and headed by Mr. Anil Sachidanand, a veteran of over 25 years in Indian home finance industry.ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Dream Home comes true Mr. Pankaj Sharma works at Mittal Medical Agency ond has been employed there since a decode. Mrs. Neha Pankaj Sharma has @ diploma in dress designing and garment manufacturing. She supports Mr, Pankaj by running a small boutiave in their apartment. Combined earnings of Mr. and Mrs. Shorma helped them to run the family ond have savings, However, their aportment was becoming too cluttered considering the joint fomily and the growing business of Mrs. Sharma. So, their search for a bigger and better home begun. Soon, the similor story of finding the ideal home but not having enough to purchase, brought down the couple’s plans to grinding hell. They ran from pillar 1o post for arranging finance for home purchase without_much success. One day Mr. Sharma heard of AHFCL from his friend and he visited our Akola branch. The team not only understood their requirements but also acted swiftly and handed over the sanction letter to Shorma family within a week. He now owns a duplex apariment and is very happy lo hove found his dream home.ASPIRE ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 + kn tiont ee «eta 736 waeBcum = Ha iene 1 ada tubes stesntaily Shr hd CERT tenn fe tacltaties | one on fee steer atria Crile" bavilotlinie * ondgnirs —7 El Hay. tpeot eos font + frloer dunt ay 2 ies" Beth estes A014 Mya14 ond Jay 204 tug 2018 SpE C7014 Nor DO Dac ZO San 2015 Fab O15 Mar DOS a pee ee pe py pou Loss at 275s ros Bs. 150s ‘Wo Lie ond Hoth oom RS 05 rsa Re SDs ea. 0 Eire Goutal fesse, fess fap foo “+ Ayproel rom WIS ‘fern Aéale Branch noid ces Bs. 1505 dudes aaa. 15 na Aste Ee ...Our Performance Monthly Disbursements (In cs.) 1s.05 0. 5391 60.21 40- 6 2a 558 io uy 8 MT 1686 i i of = Bn Jor2018— May2014 Jun 200414 fg Qe Sp 214002014 NovO14—Dec2OME Jan 2015 Feb 2015 Waranis Cumulative Diduremens 103 112 2449 S071 6757 99.89 13547 18937 249.59 358.64 ~ "We are creating « new paradigm for growAh in the Indian housing finance industry. Our numbers speak for themselves and we surely don't plan to take @ breather yet. Our business model is scalable and we have set up robust business processes in line with our grow expectations. Our branch infrasiructure, manpower and technology platform are set to cater to the — requirements of urcustomer segment.” [on Satish Kotian Chief Operating Officertea Ola Sa teaTe (1 Tailor, Disbursement from Surat Branch This is the story of Mr. Umesh Mandal from Surat. Mr. Umesh Mandal has been in tailoring business since past decade. He has been running this business with his wife in a rented premises and stays with his family in the adjoining room. Due to the couple's regular saving habits, they managed to save a decent amount in the bank. His dream for a home ended when they were able to zero in ona flat in a newly constructed affordable housing project. The savings, however, were not enough and hence Mr. Umesh was looking out for finance towards the purchase of his dream home AHFCL team at Surat was quick to identify the requirements of Mandal family and post carrying out the required due diligence, the team promptly provided housing loan assistance to them. Today, Umesh is a proud owner of a home and happily shares his home purchase experience with his clients. His advice is clear: “Plan to own your home at an early age”. At 31, he is a proud owner of one.11 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Our Target Market... Customers ospiring 10 own @ home bul ore underserved by Banks / HFCs due to challenges faced in income assessment ond gauging repayment Potential + Exclusive focus on retail home loans with maximum loan size up to Rs.25 lakhs Our Products & Services + Home Loans (New/ Resale Purchase) + PlotLoons + Construction Loans + Composite (Plot + Construction Loans) + Home Extension Loans + Home Improvement Loans + Aspire Property Services * Insurance ServicesCURR CMC TL ec a pa ah mice | eat | ee ts Shrilal Parihar Gupta } Dabeli & Seasonal Fruit Seller Di sement from Panvel BranchASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Key Differentiators * Policies and guidelines designed to be enablers in making credit available to deserving target customers ultimately leading to their financial Rr inclusion Policies and rere «They help in identification of customers who have the capability and willingness to pay thereby assisting the appraisal team in taking correct credit decision. * Differentiated proposition in the market with Customized innovative products designed tailoring to the needs iN of target customer segment OTT * Customized product offerings providing flexibility to the customers throughout their loan life cycle + Registered & Corporate Office (Prabhadevi) in Mumbai. + Presence across Maharashtra, Madhya Pradesh, Gujarat and Telangana _ + Maharashtra: ‘Mumbai (Virot, Kalyan and Panvel), Presence ‘Akola, Nashik Nagpur ond Pune (F.C. Road and Tilak Road) + Madhya Pradesh: Indore and Bhopal + Gujarat: Ahmedabad, Surat and Rajkot + Telangana: Hyderabod yy “We have designed our appraisal techniques keeping in mind the characteristics of our customer segment. Our credit leam has an ability to interact with people and not just paper. Our sanction decision is based on holistic evaluation approach helps usto understand the customer better.” Sudhir Menon Head CreditManaging Director & CEO's Message It has been a short but an eventful journey for AHFCL. With business philosophy of providing long term housing finance assistance to the lower and middle income Indian families at the core, AHFCL started its business operations on May 22, 2014 post receiving the formal Cerificate of Registration (CoR) from the National Housing Bank (NHB) on May 19, 2014. The AHFCL team at that point of fime comprised of only 15 employees. With business plan backed by our promoter MOFSL group, all the team had wos rich experience of working in housing finance domain and passion to lend to the underserved Lower and Middle Income (LMI) segment with a change. This change was keeping customerto the fore. AHFCL takes pride in the fact that even today with staff strength of 160, aa employees; this mindset has not changed a bit. The commitment towards our customers has only increased every day, We have been operating as a responsible lending insiitution treating our customers with utmost respect and would continue fo do the same. AHFCL's business processes have been designed keeping our target customer in mind. Accordingly our policies, processes and ullimately the offerings have been tailored to the needs of our customers. While business numbers are only the final outcome, the performance in the short span of first 10 months of business operations show that AHFCL has made a definite difference in the lives of 3565 Indian families. AHFCL hasretained exclusive focus on retail housing loans with maximum loan size up to Rs.25 lakhs. Our average ticket size remains at Rs. 10 lakhs clearly reflecting the commitmentof AHFC| team towards Company's vision The centralized set up with decision making at the Head Office has helped to ensure build-up of quality loan book. AHFCL's strong technology platform enables end to end processing of home loan applications and has been the backbone of business operations As of March 31, 2015, AHFCL loan book stands at Rs.357.36 crs. The Company has its presence across 14 business locations in the states of Maharashtra (Mumbai (3), Nashik, Pune (2), Akola, and Nagpur), Madhya Pradesh (Indore and Bhopal), Gujarat (Ahmedabad, Surat, and Rajkot) and Telangane (Hyderabad) ‘As we move in fo the next financial year and gear up for the first ime having full twelve months of business operations, we look at the future with increased vigor and confidence. We are set fo expand our wings in existing and newer geographies. The number of AHFClites continues fo increase every doy. We continue to strengthen our business processes and the technology support in order fo cater more number of cusiomers in FY'2015-16. Amidst all these changes, one thing remains constant is the AHFCL business philosophy and we well continue to adhere fo the same in letter and spiri Lostly, | thank all ur stakeholders including our promoters MOFSL group, our regulator the NHB, banks / financial institutions, rating agencies, business associates and last but not the least our customers who continue to be our brand ambassadors. Menaging Director & CEOASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Key Highlights in 2014-15 + Cumulotive inwards of 6,106 applicotions amounting to Rs.698 crs i * Cumulative sonctions of 4,740. applications amounting to Rs.522 crs BT * Housing finance assistance provided 3,565 customers. Cumulative Disbursements of Rs. (358.64 crs * Total Income of Rs.23.91 crs + Profit After tax of Rs.2.17 ers. Profitable in the first Oy year of business operations * NoNPA/ Overdue accounts as of March 31,2015, * Capital Adequacy Ratio of 54.19% + Presence across 14 locations across Maharashtra, Madhya Pradesh, Gujarat and Telangana + Total Headcount of 160 employees as of March Key 31,2015 Statistics + Rated “CRISILA+ / Stable” by CRISIL for long term borrowings (As of May 05, 2015) + Rated “ICRA Al+” by ICRA for shor term borrowings “We have a healthy liability mix. Our financial facilities is not just resiricled to banks. We hove raised from Bonk, financial insfitutions and debt markets. Our borrowings comprise of long term borrowings from Banks, Non-Converiible debentures and short term commercial popers. AHFCL has drawdown from seven banks as of March 31, 2015. We have strong funding pipeline to support the Company's growth plans.” Kalpesh Ojha Chief Financial OfficervA ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 .. Borrower Characteristics” Portfolio Characteristics Loan Book Rs.357.36 crs No of Customers 3,565 Weighted Avg. Rate of Interest 13.40% Avg, Ticket Size Rs.10,06 lacs. ‘Avg. UV. 159% ‘va. IR 43.06% ‘Avg. FOIR 46.36% Loan Book Analysis RNs) = Wonbai Reto 1 Wedge Pradesh 1 Coe ss Mdahed Dern GS upto 5 abs 1501 10s 1001 1es 1501-200 15 001. 25tobs Cost per Unit Rs.15.40 lacs Mihly Income Rs.28,427 Mihly instalment Rs. 11,986 Age 36.34 yeors * Median data Product wise Portfolio Split (Amount wise) ARR LO Wow Puchse Reale 1 Patosnenpie Hoe om 1 Hoe ingot Salaried : Self Employed Split (File wise) Solid 1 Sa lodAmit Said Forsan Shopkeeper Disbursement from Panel BranchASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 A Proud Owner... Amit Said's Farsan shop is tucked away in Kamothe, Panvel, Approximately 80 sq ft in size, Amit Said prepares and serves around 50 customers daily in the neighbourhood. Alter arriving in Mumbai many years back Amit Said set up his own Forsan selling business, and since he couldn't afford to own another space fo live in, he decided to stay on rentwith his parents and daughter in Kamothe, Panvel Soon Amit's business started getting prominent in their locality and he managed to cover all his major expenses and bring about enough sovings for their future. Determined to be able to purchase home of his dreams in the city someday, Amit worked persistently. Bul inspite of utilising all his savings, Amit faced financial shortage and approached AHFCL. Team Panvel assisted Amit at every stage to toke him closer to his dreams. Today, Amit hos finally managed to purchase his dream home and is proud owner ofa 1 BHK home for his family in Panvel.— a a a “A maiettavels the world inSearch ofwhat-he-needs and returns home to find it Basib Salmani Hair Stylist Disbursement from Panvel Branch21 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Excellence in Business Operations Within a short span of time, AHFCL has been able to olign ils business operations as per the requirements for serving the target lower and middle income customers. The Business processes are customized with an objective fo offer hassle free housing finance solutions to the forget customer segment. Credit Policy designed as enabler AHFCL follows a conservative approach in credit appraisal process. Credit team uses holistic approach in judging the customer's capability and willingness to pay. The team uses in house developed appraisal methodologies combined with assimilation of qualitative information {through employer / business verifications, personal discussions, business site visits etc.) that is used to appraise a borrower. This helps taking credit decision in an informed manner. Robust Lending Suite Technology is the backbone of AHFCI's business operations. Early investment in the technology has paid rich dividends as this has allowed end to end processing of housing loan applications. Further, the system captures business risk at each and every stage of processing. Use of AHFCL technology platform along with defined operating controls as per the business guidelines enobles the team to manage and mitigate the operational risk Centralized Decision Making Credit and disbursement decisions are centralized and are exclusively taken at the Corporate Office. Etfective implementation of maker (Branch) and checker (Corporate Office) concept at these critical points not only minimizes the probability of error in processing but also helps risk monagement. This has helped in building a quality loan book which is in otal complionce to the set business policies and the regulatory requirements.COOTUR TCU MCOTe TO keeping together is progress, working together is success. Sea23 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Board of Directors + Mr Motilal Oswal isthe Chairman and Managing Director of Motilal Oswal Financial Services Ltd. (MOFSL). + He isa Chartered Accountant and storted the business along with co-promoter, Mr. Raamdeo Agarawal in 1987. , For his work and contribution to the capital markets, Yr Mr Motilal Oswal has been felicitated with several awards, * Mr. Motilal Oswal is the Chairman of AHFCL. | ay ‘Mr. Motilal Oswal Chairman Mr Raamdeo Agarawal is the Jt. Managing Director of Motilal Oswal Financial Services Limited (MOFSL) Mr. Agarawal is the man behind the sirong research capobilifies at MOFSL Mr. Agarawal specialises in equity research. He has been authoring the annual Motilal Oswal Wealth Creation Study since 1996. He was also conferred with the Special contribution to Indian Mr. Raamdeo Agarwal Capital Market Award! by Zee Business in 2011 Joint MD, MOFSL AHFCL is professionally managed by Mr. Anil Sachidanand who is a practitioner of over 25 years in home finance business, He has experience working in DHFL, IDBI Bank, HDFC Bank and Profolio Home Finance Company (PHFC), US. Mr. Anil has rich experience in building infrastructure for home finance. He has a proven track record of setting, managing and scaling up diverse business processes. + Mr Anilis MD & CEO of AHFCL. Mr. Anil Sachidanand Managing Director & CEO“Home is a place where you grow up wanting to leave and grow old wanting to get back to” UTC} Serle eeu Ree ica25 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Senior Management + Mr. Satish Kotian is a technically-sophisticated and business- sawy management professional with a pioneering career rellecting strong leadership qualities coupled with vost experience & exoosure of over 20 years in the home finance industry. + Prior to Joining AHFCL, Mr. Satish was with Dewan Housing Finance Corporation Limited (DHFL), Mumbai as Head - IT. Mr. Salish was responsible for commission & execution of ‘Mr. Satish Kotian process improvement project at DHFL. Chief Operating Officer SY - ive SY Sankhe has more than thvee decades of «ich experience in Banking (Union Bank of India for 8 years), Legal, Secretarial and Finance in reputed listed companies In his previous assignment, Mr. Sankhe was with DHFL as Vice President - Company Secretary ond Business & Corporate Legal + Mr Sankhe is member of Bar Council of Maharashtra and Goa. He is also a fellow member of Institute of Company Mr. S. ¥, Sankhe Secretaries of Indio and Associote member of Indian Institule Sr. VP. - Legal of Bonkers & Company Secretary Mr. Kalpesh Ojho hos over 16 years of experience in financial, operations specializing in funds raising, treasury managing, accounts, internal control and statutory compliance. He also has exoertise in long & short term borrowings through instruments like CPs / NCDs, etc. + Mr Kalpesh’s lost stint was with “Reliance ADA Group” as Sr. i Vice President. + Mr Kalpesh is a Chartered Accountant, Company Secretary Mr. Kalpesh Ojha and hos done MFM from JBIMS. Chief Financial Officer26 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Management ay * Mr. Sudhir Menon has 18 years of experience in home loans A industry (with HDFC Ltd) in diverse areas of work including staff management, credit appraisal, legal documentation ‘and handling clientele. + Mr. Sudhir has developed a multi-dimensional business perspective working in diverse roles across credit- underwriting, business development, and_inlernationa experience - working in Dubai and India Mr. Sudhir Menon Head Credit Mr Tahir Shah brings 15+ years of rich technology experience in his current role at AHFCL. He is responsible for end fo end implementation of AHFCL technology platform. He has played a critical role in ongoing enhancements of the lending svite ond attuning the same os per AHFCL’s business requirements. He plays a pivotal role in providing comprehensive training of the lending application to the AHFCL staff gearing them up for optimal use of the technology platform. ‘Mr. Tahir Shah Head Technology Mr. Rajesh Gopinath has 15+ years of experience in housing finance industry working with DHFL, Mahindra Rural Housing, and Birla Home Finance. He has strong domain knowledge ond has leveraged it effectively in building traction, especially in retail housing finance. * His focus area at AHFCL continues to be building a solid business foundation across location by effectively Mr. Rajesh Gopinath coordinating with the teams at the Head office and Branches. Business Developmentaa ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Management Mr. Kalpesh R Dave has 8 years of experience in the field of finance, business development and planning. Prior to joining AHFCL, he was working with DHFL in corporate strategy group and later in retail liability business vertical handling pan India sourcing network. Mr. Kalpesh has expertise in setting and implementing business strategy across functions, planning and budgeting, identification and evaluation of new business opportunities ‘and managing operational improvement initiatives. ‘Mr. Kalpesh Dave Head Corporate Plonning + Mr. Subodh Kuckian is a banking professional with 16 years of experience. + He has outstanding product and operational knowledge in housing finance sector with an expertise in industry analysis, IT business processes (Finacle platform), Key Account Management, and Relationship Management with agencies + Priorto joining AHFCL, Mr. Subodh was associated with IDBI ‘Mr, Subodh Kuchion bank as Assistant General Manager & Center Head - Home Regional Besiness Hood Loans, Mortgage Loans, Auto Loans and Educational Loans. Rest of Maharashtra Mr. Shakir Sheikh is a mortgage finance professional having 27 years of rich experience in the industry. + His expertise covers diverse areos of sales, credit and operations including the legal aspects of home finance business + He has wide exposure in marketing, sales planning, credit risk assessment, credit review analysis and branch operations. Mn Shakir Sheikh *_Prlorto joining AHFCL, Mr. Shakirwas associated with India Shelter Finance Corporotion Limited as legal head Regional Business Head Madhya Pradesh ‘and Gujarat| ia starting J love, e ahd dreams” } / Tee een ot 4 eae Reese ean Dre Mey FmanrvaltCLAM CatASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Directors’ Report To, The Members Aspire Home Finance Corporation Limited Your Directors’ are pleosed to present to you the Second Annual Repo together with the audited Financial Statements or the year ended 31° March, 2015. FINANCIAL RESULTS ‘Summary of Financial results for the year ended 31" March, 2015 is os under: (Amount in Rs.) Forthe | Forthe Period From Sr. No. Particulars yeorended | 1 October, 2013 31” March, 2015 | To 31” Morch, 2014 1__| Gross income 239,092,696 | 4,810,899 2__| Profit Before Interest and Depreciation 84,286,513 | (2,710,989) 3 | Finance Charges 43,374,002 15,760 4 _| Gross Profit 40,912,511 | (2,726,749) 5 | Provision for Depreciation 2,344,683, 25,769 6 _| Net Profit Before Tax 38,567,828 | (2,752,518) 7__| Provision for Tax (Net of Tox) 16,829,834 8 | Not Profit After Tax 21,737,994 | (2,752,518) 9_| Balance of Profit brought Forward (2,752,518) 10 _| Balance available for appropriation 18,985,476 | (2,752,518) 1 Proposed Dividend on Equity Shares e - 12 _| Taxon proposed Dividend - 13. | Transfer to Special Reserve u/s 29C of the NHB Act, 1987 4,347,599 - 14 _| Surplus carried to Balance Sheet 14,637,877 [_ (2,752,518) DIVIDEND No Dividend was declared for the current financial year due fo conservation of Profils fo meet future business requirements of the Company, REVIEW OF BUSINESS OPERATIONS AND FUTURE PROSPECTS During the year under review, your Company earned the gross income of Rs. 239,092,696/- as against Rs. 4,810,899/- in the previous yeor. The total expenditure during the yeor under review was Rs, 200,524,868/- as against Rs. 7,563,417/- in the previous year. The Net Profit alter tax was Rs. 21,737,994/- as against the loss incurred of Rs. (2,752,518)/~in the previous year.<3] ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 The mission of the Company is to focus on the affordable housing segment, cotering to the aspirations of mid and low income Indian families who want io own a home. Your Company would work on the philosophy of Housing Financial Institution enabling credit access to low and middle income segment for purchasing and acquiring affordable housing unis. CAPITAL STRUCTURE Authorised Share Capital In order to meet the future business requirements of the company, the Authorized Share Capital of he ‘Company has been increased from Rs. 20 Crores to Rs. 200 Crores during the financial year 201 4- 2015. Paid-up Share Capital During the reporting period, your Company hos allotted the following additional equity shares to the existing shareholder of the company: i. 8,50,00,000 {Eight Crores Fifty Lokhs) Fully paid up equity shares of Rs. 10/- each aggregate to Rs. 85,00,00,000 (Rupees Eighty Five Crores only) and ii, 10,00,00,000 {Ten Crores) Partly Paid up equity shares of Rs. 10/- each ond paid up valve of Rs. 5/- each aggregate to Rs 50,00,00,000 (Rupees Fitly Crores only} Following table showing the total paid up capital of the Company as on 31st March, 2015 Sr. No, No. of Shares. Paid up value “Amount (Rs.) per share (Rs.) (Face Value Rs. 10/- each) 10,00,00,000 (Fully Paid shares) io/- | _1,00,00,00,000 2. 10,00,00,000 (Partly Paid Up shores) 5s 50,00,00,000 Total Paid up Capital 1,50,00,00,000 DISBURSEMENT During the 10 months of the Housing Finance Business in the year 2014- 2015; the Company disbursed the loan amounting to the tune of Rs.358.64 Crores. NON CONVERTIBLE DEBENTURES (NCD) During the yeor, the Company issued NCD amounting to Rs. 50 Crores on a private placement bosis. The Company's NCDs have been listed on Wholesale Debt Market segment of BSE Limited. NCDs are roted "CRISIL A/stoble” indicating adequate degree of safety regarding timely servicing of financial obligation.Ky ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 COMMERCIAL PAPER (CP) During the year, the Company issued Commercial paper amounting to Rs. 50 Crores. Company's Commercial Paper are rated "|ICRA] Al+” indicating that instrument have very slrong degree of safety regarding imely payment of financial obligation BANK LOANS During the yeor, the Company has received sanctions for Term Loans and cash credit facilities from banks amounting to Rs. 135 crores of which AHFCL availed loans aggregating to Rs. 132 crores as on31"March, 2015 PUBLIC DEPOSITS During the year under review, the Company has not accepted any public deposits within the meaning of the Companies Act, 2013 and rules there under as well as not accepted any public deposit within the meaning of the NHB Directions 2010. Since the company is registered as Housing Finance Institution without accepting Public Deposits. RISK MANAGEMENT FRAMEWORK The Company has in place a mechanism to identity, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis, The risk siralegy laid down by your Company helps foster @ disciplined culture of risk management «and conirol. In conjunction with these praclices, your Company intends lo optimise is capital needs through growth, by achieving highest returns on copital employed while managing risks appropriately. Your Company continuously monitors loan portfolio. Portfolio level delinquency matrices are tracked at regular intervals with focus on detection of early waming signals of stress. These limits are periodically reviewed based on changes in the macro-economic environment, regulatory environment and indusiry dynamics. Existing credit exposure in the portfolio is continuously monitored and reviewed. Key sectors are anolysed in detail to suggest strategies, considering both risks and opportunities. Corrective action, ifrequired, is taken well in advance. Your Company follows the best practice for management of credit risk, marke! risk and operational risk and has put in place a comprehensive Risk Management Policy envisaging a robust risk management programme. PRUDENTIAL NORMS FOR HOUSING FINANCE COMPANIES Notional Housing Bank (NHB) regulates the HFCs and issues guidelines on income recognition, asset classifications, provisioning, provisioning for bad and dovatiul debts, capital adequacy, accounting and disclosure policies, and fair practice code and asset liabilily management, The Company is in compliance with applicable regulatory norms and guidelines.i) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Your Company's Board has approved Know Your Customer & Anti Money Laundering Policy {KYC & AML Policy} and adheres to the said Policy. The said Policy is in line with the guidelines issued by the Notional Housing Bank. Your Company has in place a Fair Practice Code (FPC), which includes guidelines on appropriate staff conduct when dealing with the customers and on the organisation's policies vis-8-vis client protection. The FPC captures the spirit of the Notional Housing Bank guidelines on fair praclices lo be followed by Housing Finance Companies The National Housing Bank Act, 1987, empowers NHB to levy a penalty on Housing Finance Companies for contravention of the Act or any of its provisions. NHB has not levied any penalty on AHFCL during the year. CAPITAL ADEQUACY RATIO (CAR) The capital adequacy ratio for financial year 2014-2015 was 54.04%. Tier | and Tier I! capital adequacy ratio for 2014-2015 were at 53.53% and 0.51% respectively. HOLDING/SUBSIDIARY COMPANY During the yeor under review, the Company has no Subsidiary Company. However, the Company is a Subsidiary of M/s, Motilal Oswal Securities Limited. DIRECTORS AND KEY MANAGERIAL PERSONNEL The Board of Directors of the Company comprises of three Directors viz. Mr. Motilal Oswal, Mr. Raamdeo Agarawal and Mr. Anil Sachidanand as the First Directors of the Company. Mr. Anil Sachidanand is the Managing Direclor & CEO of the Compary. Mr Raamdeo Agarawal, Director of the Company is liable to retire by rotation and being eligible, offer himself for re-appointment at this Annual General Meeting. Your directors recommend their re-appointment. Itis further confirmed that none of the above directors are disqualified under Section 164 (2) of the Companies Act, 2013, Company is in the process of broad-basing its board by inducting eminent Independent Directors having experience in he field of Banking, Finance, and Administration etc Company has also appointed Mr S. ¥, Sankhe, Company Secretory designated as Sr. VP Legal & Company Secretary and Mr. Kalpesh Ojha, Chief Financial Officer of the Company, as the Key Manogerial Personnel. EMPLOYEE STOCK OPTION SCHEME (ESOS) Your company has approved the Employee Stock Option Scheme at its Exira-Ordinary General Meeting held on 1 6th October, 2014 and company is in the process o grant the option fo the eligible employees’.34 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 CORPORATE SOCIAL RESPONSIBILITY The Provisions of the Corporate Social Responsibility as contained in the Companies Act, 2013 ore presently not applicable to the Company. COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM ‘The Audit Committee consists of the following members; 2. MrMotilal Oswal b. Mr Raamdeo Agarawal cc. MrAnil Sachidanand Terms of reference of the Audit Committe: 2) 40 review all books of accounts and records pertaining to the Company and the conduct of Company's business; b) —torecommend the appointment of the Internal Auditors and the Statutory Auditors to the Board of Directors; to mee! the intemal Auditors and the Statutory Auditors periodically and to discuss the scope of coud, observations of the Auditors and otherrelated matters; 4) 10 review all management letters, reports and other information provided by the auditors of Company; @) to hove discussion with the Internal Auditors periodically about internal control systems and to ensure compliance of internal control systems; and f} to review the quarterly, hall-yearly and annval financial statements before submission to the Board.” The Company has established a vigil mechanism and overseas through the committee, the genuine concerns expressed by the employees and Directors. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concems. The Company has also provided direct access to the Chairman of the Audi! Commitiee on reporting issues concerning the inleresls of co employees and the Company. COMPOSITION OF NOMINATION AND REMUNERATION COMMITTEE The Nomination and Remuneration Committee consists of he following members; 2. Mr Motilal Oswol b. Mr Raomdeo Agarawal © Mr Anil Sachidanand Terms of reference of the Nomination and Remuneration Committee:- @. To appoint senior personnel(s) and Directors in the Company and timely review of performance.35 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 b. —Tolookinto the entire gamut of remuneration packages for the Executive Director(s) and senior personnel’s of the Company and revise their remuneration suitably within the limits prescribed under any statutory acts, amendments, modifications or enactments thereof ¢. _Toformulate and implement one ormore Employees’ Stock Option Scheme(s) for he benefit of the employees including Directors of the Company. d. To determine the commissions payable to the Directors within the prescribed limits and as approved by the shareholders of he Company e. —Toundertake such other acts or activities as may be determined by the Board of the Company. POLICY AGAINST SEXUAL HARASSMENT Company has in place policy against the sexual harassment and the said policy seeks to protect women employees from sexual harassment at the place of work. The primary objective of the same is to safeguard the interest of female employees in the Company and also provides for punishment in case of false and malicious representations. The policy has been communicated to the employees and is also posted on the Company's intranet. During the year, no complaint has been received by he Sexual Harassment Commitee. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013 Housing finance Companies are exemp! from the provisions of the section 186 (except sub- Section (1)) of the Companies Act, 2013 hence the said provision is not applicable to the Aspire Home Finance Corporation Limited PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES For the purpose of the related parly transaction, kindly refer the note no. 25 of the notes to the financial sialement of the Compary. NUMBER OF BOARD MEETINGS During the period under review sixteen (16) Board Meetings were held on 04/04/2014, 25/04/2014, 10/06/2014, 15/07/2014, 17/07/2014, 06/08/2014, 28/08/2014, 11/09/2014, 16/10/2014, 13/11/2014, 26/11/2014, 24/12/2014, 02/01/2015, 29/01/2015, 23/02/2015 and 12/03/2015. Mr. Motilal Oswalis the Chairman of the Board DIRECTORS’ RESPONSIBILITY STATEMENT: In accordance with the provisions of Section 134(5) of the Companies Aci, 2013 the Board hereby submililsresponsibiliy Statement:— 2) inthe preparation of he annual accounts forthe year ended 31st March, 2015, the opplicable accounting standords had been followed along with proper explanation relating to material departures;36 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 b) the directors had selected such accounting policies and opplied them consistently and made judgments and estimates that are reasonable and prudent so as fo give a true and fair view of the state of affairs of the company os ot March 31, 2015 and of the profit and loss of the Company forthe year ended on that date; ¢ the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance wih the provisions of the Companies Ac! for safeguarding the assels of the company and for preventing and detecting fraud and other irregularities; ) the directors had prepared the annual accounts on a going concern bosis; @) that proper infernal financial controls were in place and that the financial controls were ‘odequaie and were operating effectively; and 4) the directors had devised proper systems to ensure compliance with the provisions of all opplicable laws and that such systems were adequate and operating effectively AUDITORS M/s. BS R& Co. LLP Chartered Accountants, Statutory Auditors of the Company retire atthe ensuing Annual General Meeting ond are eligible for re-appoiniment. The Compony has received a Certificate from the Statutory Auditors to the effect that their re-appointment, if made would be in accordance under Section 139 of the Companies Act, 2013 and the rules thereunder as may be applicable. Members are hereby requested fo re-appoint them os Statutory Auditors of the Company till the conclusion of the ensving Annual General Meeting of the Compony and to fix their remuneration subject to ratification of the appointment by the members in the Annual General Meeting of the Company. AUDITORS REPORT The Auditors Report fo the Members on the Accounts of the Company for the financial year ended March 31, 2015 does not contain any qualification and is self-explanatory, hence does not call for eny comment of Board. INTERNAL AUDIT Aspire Home Finance Corporation Limited hos robust internal audit programme, where the internal auditors, an independent firm of chartered accountants, conduct Internal Audit with a view to not only test adherence fo laid down policies and procedures but also to suggest improvements in processes cond systems. COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES The Company's Policy relating to appointment of Directors, payment of Managerial remuneration, Directors’ qualifications, positive atributes, independence of Direciors and other related matters os provided under Section 178(3) of the Companies Act, 2013 is furnished in ‘Annexure A ‘and is attached tothis report37 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 ANNUAL RETURN The extracts of Annual Return pursuant to the provisions of Section 92 read with Rule 12 of the Companies (Monagement and Administration) Rules, 2014 is furnished in ‘Annexure 8' ond is attached to this Report. SECRETARIAL AUDIT REPORT The Board of Directors of the Company has appointed M/s Aabid & Co., Company Secretaries lo conduc! the Secretarial Audit and his Repor! on Company's Secretarial Audit is appended fo this repori as ‘Annexure C’ HUMAN RESOURCE DEVELOPMENT Human resource development is considered important for effective implementation of business plans. Constent endeavours are being made lo offer professional growlh opportunities and recognitions, aport from imparting training lo employees. During the current year, in-house training programmes were provided io employees, inter alia, in lending operations, documentation, KYC, IT sysiem and security, accounls, etc PARTICULARS OF EMPLOYEES The information required pursuant to Section 197 read with Rule, 5 of The Companies (Appointment ond Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company, will be provided fo the members upon request. In terms of Section 136 of the Act, the Report and Accounts are being sent fo the Members and others entilled thereto, excluding the information on employees’ pariiculars which is available for inspection by the Members ot the Registered Office of the Company during 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 a copy thereof, such Member may write fo the Company Secretary inthis regard. MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT No material changes and commitments affecting the financial position of the Company occurred between the end ofthe financial yeario which this financial stolements relate on the date of this report CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Since the Company is not engaged in any monufocluring activity, he particulars relating to conservation of energy and technology absorplion as slioulated in the Componies Act are not opplicable. During the period under review there have been no Foreign Exchange Inflows and Outflows.Ts) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 ACKNOWLEDGEMENT Your Directors wish to place on record their gratitude to the National Housing Bonk, the Company's Customers, Bankers, Members, Debenture holders, Venders and others for the continued support and faith reposed in the Company. The Board also places on record its deep appreciation for the dedication and commitment of the employees at all leve's. The Directors also would like fo thank The BSE Limited, National Securities Depository Limiled, Cenlral Depository Services (India) Limited and the Credit Rating Agencies for heir co-operation For and on behalf of the Board Place: Mumbai ‘Mr. Motilal Oswal Date: 28th April, 2015 ChairmanTCC ODT MT40 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Annexure ‘A’ to Directors’ Report Nomination and Remuneration Policy This Committee and the Policy is formulated in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto. 1 1 1.2 1.3, 14 18 16, VW, 21 2.2 2.3. 24. OBJECTIVE The Nomination and Remuneration Committee (NRC and this Policy shall be in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rvles thereto. The Key Objectives of the Committee would be: To guide the Board in relation to appointment and removal of Directors, Key Managerial Personnel and Senior Management To evaluate the performance of the members of the Board and provide necessary report to the Board for further evalvation of the Board To recommend to the Board on Remuneration payable to the Directors, Key Managerial Personnel and Senior Management. To provide to Key Managerial Personnel and Senior Management reward linked directly to their effor, performance, dedication and achievernent relating to the Company's operations. To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage To devise a policy on Board diversily To develop a succession plan for the Board and to regularly review the plan; DEFINITIONS Act means the Companies Act, 2013 and Rules framed thereunder, as amended from lime lo time. Board means Board of Direciors of the Company. Directors mean Directors of he Company. Key Managerial Personnel means 2.4.1, Chief Executive Officeror the Managing Director or the Manager; 2.4.2. Whole-time director;Al ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 2.4.3. ChiefFinoncial Officer; 2.4.4, Company Secretary; and 2.4.5. such other officer as may be prescribed. 2.5. Senior Management means personne! of the company who are members of ils core management team excluding the Board of Dred including Chief Operating Oficer and 3. ROLE OF COMMITTEE 3.1. Matters to be dealt with, perused and recommended to the Board by the Nomination and Remuneration Committee ‘The Commitiee shall: 3.1.1, Formulate the criteria for determining qualifications, positive attributes and independence of a director. 3.1.2. Identify persons who are qualified to become Director and persons who may be appointed in Key Managerial and Senior Management positions in accordance with the criteria laid down in this policy 3.1.3. Recommend to the Board, appointment and removal of Director, KMP and Senior Management Personnel 3.2. Policy for appointment and removal of Director, KMP and Ser Management 3.2.1. Appointment criteria and qualifications °) The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as Director, KMP or at Senior Management level and recommend to the Board his / her appointment. b) A person should possess adequate qualification, expertise and experience for the position he / she is considered for appoiniment. The Commitee has discretion to decide whether qualification, experiise and experience possessed by a person is sufficient safislactory for the concerned position, d The Company shall not appoint or continue the employment of any person as Whole-lime Director who has atoined the age of seveniy years. Provided that the {erm of the person holding this position may be extended beyond the age of seventy yeors with the approval of shareholders by passing o special resolution based on the explonatory statement annexed to the notice for such motion indicating the iustification for extension of appointment beyond seventy years42 a) b) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 3.2.2. Term /Tenure Managing Director/Whole-time Director: The Company shall appoint or re-appoint any person as its Executive Chairman, Managing Director or Executive Director for a term not exceeding three/ five years at a time. No re- appointment shall be made earlier than one year before the expiry of erm Independent Director: 3.2.4, 3.2.5. ‘An Independent Director shall hold office for a term up to five consecutive years on the Boord of the Company and will be eligible for re-appointment on possing of a special resolution by the Company and disclosure of such appointment in the Board's report. No Independent Director shall hold office for more than two consecutive terms of upto maximum of 5 years each, but such Independent Director shall be eligible for appointment after expiry of three years of ceasing to become an Independent Director. Provided that an Independent Director shall not, during the said period of theee yeors, be appointed in or be associated with the Company in any other capacity, either directly or indirectly. Evaluation The Committee shall carry out evalvation of performance of every Director, KMP and Senior Management Personnel at regular interval (yearly). Removal Due to reasons for any disqualification mentioned in the Act or under any other ‘opplicable Act, rules and regulations thereunder, the Committee may recommend, to the Board with reasons recorded in writing, removal of a Director, KMP or Senior Management Personnel subject to the provisions and compliance of the said Act, rules and regulations. Retirement The Director, KMP and Senior Management Personnel shall retire as per the opplicable provisions of the Act and the prevailing policy of the Company. The Board will have the discretion fo retain the Director, KMP, Senior Management Personnel in the same position/ remuneration or otherwise even after atiaining the retirement age, forthe benefit of he Company.7k} ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 3.3. Policy relating to the Remuneration for the Whole-time Director, Managing 4d 4.2 43 5.1 5.2 81 Director, MP and Senior Management Personnel 3.3.1. Remuneration to Managing/Whole-time / Executive / Managing Director, KMP and Senior Management Personnel: The Remuneration/ Compensation/ Commission etc. 10 be paid to Director / Managing Director etc. shall be governed as per provisions of the Companies Act, 2013 and rules made there under or any other enactment forthe time being in force, 3.3.2. Remuneration to Non- Exec /\ndependent Director: The Non-Executive Independent Director may receive remuneration / compensation /commission as per the provisions of Companies Act, 2013. The amount of siting fees shall be subject to ceiling/ limits as provided under Companies Ac, 2013 and rules made there under or any other enactment or the time being in force. MEMBERSHIP The Committee shall consist of o minimum 3 Members. Minimum 2 members shall constitute « quorum forthe Committee meeting, Term ofthe Committee shall be continued unless terminated by the Board of Directors. CHAIRPERSON The members of the Committee present at the meeting shall choose one amongst them to act «as Chairperson Chairman of the Nomination and Remuneration Commitee meeting could be present at the Annual General Meeting or may nominale some other member lo answer the shareholders’ queries FREQUENCY OF MEETINGS The meeting of the Committee shall be held at such intervals as may be required SECRETARY The Company Secretary of the Company shall act as Secretary of the Commitiee VOTING Matters arising for determination at Committee meetings shall be decided by @ majority of votes of Members presen! and voting and any such decision shall forall purposes be deemed a decision of he Commitee.rv ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 8.2 9. Inthe case of equality of votes, the Chairman of the m ing will have a casting vote. NOMINATION DUTIES ‘The duties of the Committee in relation to nomination matters include: 91 9.2 93 94 95 96 97 98 99 9.10 10. 10.1 10.2 Ensuring that there is an appropriate induction in place for new Directors and members of Senior Management and reviewing its effectiveness; Ensuring thal on appointment to the Board, Non-Executive Directors receive a formal leter of ‘oppoiniment in accordance with the Guidelines provided underthe Act; Identifying ond recommending Directors who are to be pul forward for relirementby rotation. Determining the appropriate size, diversity ond composition of the Board; Developing o succession plan for the Board and Senior Management and regularly reviewing the plan; Evaluating the performance of the Board members and Senior Management in the context of the Company's performance from business and compliance perspective; Making recommendations fo the Board concerning any matters relating lo the continuation in ‘office of any Director al any time including the suspension or termination of service of an Executive Director as an employee of the Company subject othe provision of the law and their service contract. Delegating any ofits powers fo one or more of is members or he Secretary of the Committee; Recommend any necessary changes lo the Board; and, Considering ony other matters, as may be requested by the Board. REMUNERATION DUTIES The duties of he Committee in elation to remuneration matters include: Consider and determine the Remuneration Policy, based on the performance and also bearing in mind that the remuneration is reasonable and sufficient to attract retain and motivate members of the Board ond such other factors as the Committee shall deem appropriate all ‘elements of the remuneration of the members of the Board. Approving the remuneration of the Senior Management including key managerial personnel ‘of the Company maintaining a balance between fixed and incentive poy reflecting short and long term performance objectives appropriate to the working of the Company:vic) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 10.3. Delegating any of ts powers lo one or more of ils members or he Secrelary of the Committee 10.4 Considerany other matiers as may be requested by the Board. 11, REVIEW AND AMENDMENT 11.1 The NRC or the Board may review the Policy as and when it deems necessary 11.2. The NRC may issue the guidelines, procedures, formats, reporting mechanism and manual in supplement and better implementation to this Policy, fit hinks necessary. 11.3 This Policy may be amended or substitvied by the NRC or by the Board as and when required and also by the Compliance Officer where there is any statutory changes necessitating the change in the policy.DROP BY DROP makes an ocean Mr. Ghanshyam Rathore from Indore is one of those stories of emerging India which has its roots in humble beginning and culminates into success. Learning the tricks of readymade garment business from young age, he ultimately plunged into entrepreneurship when he was 30. Since past 10 years, he successfully runs his garments shop in Indore. As the “drop by drop makes an ocean” saying goes, he ensured that he saved every year which helped him to buy a plot. However, his dreams hit a roadblock, when he did not have enough to construct a house on the plot. AHFCL stepped in at the right time and assisted him with a home construction loan on own land. This has helped him in making sure that the plot ultimately is used for the purpose for which it was purchased. We are happy that Ghanshyam will not just have four walls for his house but a lasting legacy for his familyAnnexure ‘B’ to Directors’ ReportASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Annexure ‘B’ to Directors’ Report Form No. MGT-9 EXTRACT OF ANNUAL RETURN ‘as on the financial year ended on 31st March, 2015 [Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Monagement and Administration) Rules, 2014] 1, REGISTRATION AND OTHER DETAILS: i) ii ii i vy vi) vil CIN: U65923MH2013PLC248741 Registration Date: 01/10/2013 Name of the Company: Aspire Home Finance Corporation Limited Category / Sub-Category of the Company: Company Limited by shares/ Indian Non Govt. Company ‘Address of the registered office and contact details: Palm Spring Centre, 2nd Floor, New Link Road, (West), Mumbai- 400064 Whether listed company Yes / No: Yes (Non- Convertible Debentures are listed with BSE Limited) Name, Address and Contact details of Registrar and Transfer Agent, ifany: Link Infime Indio Pu. Ud, C-13, Pannalal Sik Mills Compound, |.8.S.Marg, Bhandup (Wesi], Mumbai - 40078, Phone: +91 22 25963838 I PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY Allthe business activities contributing 10% or more of the total turnover of the company shall be stated:- Sr. No. Name and Description of NIC Code of the % to total turnover main products / services Product / Services of the company 7 Housing Finance Activities 64199 100% Il PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES WANE AND ROWING? SNe.| ADDRESS OF cnyewn —_| suasiouaey | % OF SHARES | armuicaaLe THE COMPANY ASSOCIATE 1 | MOTIAL OSWAL | U65990MH1994PLCO79418 | HOLDING 99.99% 2146) SECURES UMIEDASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 SPIRE IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) j) _ Category-wise Share Holding Category of No. of Shares held at the beginning of Shareholders the yoor No. of Shares held ot the end of the year % Change during the year JA. Promoters indian fei individual uF [NIL 09.00% NIL [00.00% NL fo} Control Gow eStore Govt al Bodies Cor. NI 14999994 1999994 99.99% NI 199999994 199999994 99.99% Ni a} Banks F [Any Ore Sub-total A) (= [NIL 14999997, 2999997 99.99% NIL 199999997 199999997 99.99% NL (2) Foreign fo NRls- raid fo} Ohrer= Individuals el Bodies Coro a Banks 7F [a Aay Other Sub-total (A) = [NIL Nit Nit NL__[NIL Ni NIL Nit NIL Shoreholding of Promoter (A) = | NIL lana +av2) 14999997 14999997 99.99%] NIL 199999997, 199999997 99.99% NIL |B. Public Shareholding 1. Institutions fa Mul Funde Banks / le Control Govt a) State Gow e)Veriore Cop Fund I insurance Companias i Fis Cositol Funds Others pect) [Sub-total (6) (V)-—_[NIL Ni Nit NL [NL Ni Nit Nit Nit (2) Non-Institutions [NIL NIL NIL NiL__[NIL NIL NIL NIL NIL 6] Bodies Corp Tieden DB indvidvals 1 eda choroid hong nominal hore | NL ope ps Re fh 00.01%) NIL 00.0154 NILFol} ASPIRE ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 —n % Category of No. of Shares held at the beginning No. of Shares held et the end of the year | Change Shoreholders of the year during the year Tindvieval howhacen| Holding romial sho copa in excess of Pe llok 2 Ofhers nec - - - Sub-total (8) (2)= [NIL | 3 3 00.07% Nu | 3 3 (00.07%) NIL Totol Public Shareholding ni | 3 3 00.01%] NL | 3 3 (00.01%) NIL (@)=(8)01)+(8)2) ©. Shores held By Custodian for GOR & ADRS Grand Total'A+B+C)|NiL_[ 15000000 | 15000000 [100% | Nit | 200000000 | 200000000| 100% [NIL (ii) Shareholding of Promoters si | shareholder's Shareholding at the beginning of the | Shareholding at the end ofthe year |x... syst change ‘o.| Name year % chang holding No.of — ] %oftotlShares|% of — | No. of wot fot | orng Shores | ofthe company | Shores | Shores Shares ofthe [Shores | jhe year edged / compony [Pledged / bored bered ‘o total o trol shores shares Motilal Oswal Secures Limited | 14999994 | 99.99% Nit |ive99%94 ]ov99% |i Nil 2. | Ma Motilal Oswol 1 nt ff 0.00% Ni Ni 3,_| Me Romeo Agarwal 1 nuff 0.00% Nil Ni 4, | Mr Anil Sachidanond 1 wt ft nu JN Toto 14999997 | 99.99% nt ]ivs999997 [ov90% [nu | nu(ii) 51 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Change in Promoters’ Shareholding (please specify, if there is no change) si] shareholder's Shareholding ot the beginning of the yeor CCumative Shareholding No.| Nome during the Yeor of ota No. uty shores | “atte shores 1. Schon | hares ofthe company ‘ihe beginning ofthe yar 4999994 9.99% NIL NIL “Datewise Increase / Decrease] 1, 26/08/2014 in Promoters Shareholding 5000000 (Aliment 99.99% I NI during the yeorspecthing 2. 24/09/2014 the reasons for increse / 20000000 (Aotment 99.99% decrease eg. aloimes | 3. 09/10/2014 trent / bonus sweat 10000000 flloimen) 99.99% equi et) 4 ianao 10000000 (Alotmen) 99.99% Changes in shareholding of | 5. 04/12/2014 Motilal Oswal Securities 15000000 (ment 99.99% Limited (Allotments) & 19/03/2015 15000000 (Aloment 99.99% 7. 27/03/2015 00000000 (Aloxrent) 99.99% 199999994 9.99% Ni NI “Daring the yea, here is no change in he shoreholing of cher promoters iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADR: 3 Shareholding at the Cumulative Shareholding Ne. beginning of the yeor during the Yeor “For Each of the Top 10 Shareholders| No. of shaves Geof orel shaves No. of shares % of otal shares of ‘of the company fhe company ‘A the beginning of the year a 00.01% NIL NIL Date wise Increase / Decrease in Shareholding during the year specifying the reasons fr increase / | Ni Ni Nl NI decrease e.g. allotment / transi / bonus / sweat equity et} {Al the End ofthe year {or on the date of separation, i separated a 00.01% Nl Nt | dering the yea * Other thon Ditectors and Promoters the cond vach of them holding one equity shores ofthe Company. only 3 members Le, Mr, Navin Agorwal, Mr. Ajay Menon and Mr Sar Kamotin52 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 (¥) Shareholding of Directors and Key Managerial Personnel: ener Py Shareholding at the ‘Cumvlative Shareholding Ne. beginning of the yeor during the Year *For Each of the Directors and KMP | No. of shores %ofrotal shares | No. of shares Sof tral shares ofthe company the company At the beginning of the yeor 3 0.01% 3 01% Date wise Increase / Decrease in Shave holding during the yeor specifying the Feosons for nevease / decrease NL NIL NIL NIL {e.g. alotment /ranser / borus/ sweat equi ec): ‘tthe End ofthe yeor NL NIL NL NIL * Nemes of Directors are Mz. Motilal Oswel, Mr Remdeo Agarwal and Mr Anil Sachidanand (each of director helding one equity share of the Company) V. INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment Details Secured Loans Unsecured Deposits Total excluding deposits Loans Indebtedness Indebtedness at the beginning of the financial year 1) Pincipal Amount i) Interest due but not poid Ii) Interest accrued but not de Total (ii) ‘Change in Indebtedness during the financial year + Addition 1,820,036,293 500,000,00% 2,320,086,293 + Reduction 500,000,000 500,000,000 Net Change 1,820,036,293 Indebtedness at he tend of the financial year 1) Pincipal Amount 1,820,036,293 1,820,036,293 i Interest due but not peid ii) Interest accrued but not due | 23,220,549 23,220,549 Total (r++) 1,843,256,042 1,843,256,84253 vi. A ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP) “REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND/OR MANAGER: si No Particulars of Remuneration Name of MD/WTD/Manager ond KMP Total Amount Gross solary (6) Solar as par provision: in section 1711) ofthe 1961 (6 Volue of perquisites u/s 17(2) Income-tax Act, 196 (c] Profits in lieu of salary under section 17(3)Income-tax Act, 1961 Stock Option Sweat Equlry ‘Commission 28 % of proft others, speci Others, please speaiy Toil AY Celing os per the Aet REMUNERATION TO OTHER DIR' ECTORS: *Kindly refer the caption Particulars of Employees of the Directors Report. si Ne Particulars of Remuneration Name of Directors Total Amount Independent Directors + Fee for atending boord / committee meetings + Over, please specify Nil NIL NU NU Nil Total (1) NIL NL NU NU NIL ‘Other Non: ‘ive Drediors vending boord / commits mostings + Commission + Over, please specify NIL NIL NL NIL NIL Total (2) NIL NIL NL NU NIL Total )=1F) NE NL NU NL NI Tefal Managoril Remuneration NIL NL NL NL NIL ‘Overall Ceiling os per the Ac [por 00000/- Board meeting ) 000007. o00007- (000007,ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 C. _*REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD sr No__| Particulars of Remuneration Key Managerial Personnel CEO) Semmany cro. Total 1 | Grose solar {a} Solar oper provisions contained in secion 17(I) ofthe Income-tox Ae, 1961 (8) Volue of perquisites v/s 1712) Income tox Ae, 1961 (2) Profin leu of solary under section 17(3) Income Tax Aer, 1961 2 _| Steck Opfon 3 _| Sweat Eouiy | Commision 05% of proft thes, specty 3 | Others, please Spec Tetal “kindly refer the caption ‘Pariculars of Employees’ of the Directors Report VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: pe Section of Brief Details of ‘Authority ‘Appesl made, the Description Penalty / (RO/ ifeny. Companias Punishment/ Neury (give Detais) Ae Compounding | COURT] fees imposed Peneity (Compouneing ‘A. OTHER OFFICERS IN DEFAULT wea Penalty — (CompouneingAnnexure ‘C’ to Directors’ Report56 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Annexure ‘C’ to Directors’ Report SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31st MARCH 2015 [Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014] To, The Members, Aspire Home Finance Corporation Limited Mumbai We have conducted the Secretarial Audit of the compliances of applicable statutory provisions and the adherence to good corporate practices by Aspire Home Finance Corporation Limited (hereinafter called the company). Secretarial Audit wos conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing opinion thereon. Bosed on our verifications of the Books, Papers, Minute Books, Forms and Returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, We hereby ropor that in ouropinion, the Company hos, during the audit period covering the Financial Year ended on 31st March, 2015 complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance-mechonism in place to the extent, in the manner and subjectto the reporting made hereinafter: We have examined the Books, Papers, Minute Books, Forms and Returns filed and other records maintained by the Company for the Financial Year ended on 31st March, 2015 according to the provisions of: (i) The Companies Act, 2013 {the Aci) andthe Rules made thereunder; (i) The Securities Contracts (Regulation) Act, 1956 {'SCRA] ond the Rules made thereunder. (ii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder. (iv) Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder isnot applicable to the extent of Foreign Direct Investment, Overseas Direct Investment and Exernal Commercial Borrowings; () “The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBIAct):~ a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; b) The Securities and Exchange Board of Indio (Prohibition of Insider Trading) Regulations, 1992;coy ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 The Securities ond Exchange Board of India (Issue of Capital and Disclosure Requirements} Regulations, 2009; d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999; ) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; 4) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents} Regulations, 1993 regarding the Companies Act and dealing with client; 9) The Securities and Exchange Board of India (Delisting of Equily Shares) Regulations, 2009; and ) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; *Only the Provisions of sub-clause (e} of Clause () is applicable to the company. We have also examined Compliance with the applicable clauses of the following (i) Secretarial Standords issued by the Institute of Company Secretaries of India (i) The Notional Housing Bonk Act, 1987 are also applicable to the Company, as Companys registered under Housing Finance Institution. During the period under review the Company has complied with the provisions of the Acts, Rules, Regulations, Guidelines, Standards, elc. mentioned above subject fo the following observations: 1. As informed the Company is in process of appointing Independent Director as per the provisions of Section 149 Clause 6 of Companies Act, 2013 read with (Appointment and Qualification of Director Rules.) 2. As informed the Company is in the process of appointing Woman Director in its Board as per Section 149 of Companies Act, 2013. We further report that The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors exceot the appointment of Independent Director and Woman Director. There were no changesin the composition of he Boord of Directors that ook place during the period underreview: Adequate notices are given to all Directors to schedule the Board Meetings, Agenda and detailed notes on agenda were sent ot least seven days in advance, and @ system exist for seeking and obtaining further information and clarification on the agenda items before the meeting and for meaningful parlicipation al the meetingcot) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 We further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable Laws, Rules, Regulations and Guidelines. We further report that the company has complied with the provisions/ Guidelines/Regulation with respect to issue and listing of Non-convertible debentures. Place: Mumbai For Aabid & Co Date: 28th April, 2015 FCSNo.: 6579 C.RNo.: 6625 (Mohammad Aabid) PartnerASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 ANNEXURE - | {to Secretarial Audit Report) List of documents verified 1 2 Memorandum & Articles of Association of the Company. ‘Annual Report forthe Financiol Year ended 31st March, 2014 Minutes of the meetings of the Board of Directors, Audit Committee, Nomination & Remuneration commitiee, along with Attendance Register held during the financial year under report. Minutes of General Body Meetings held during the financial year under report Agendo papers submited to all the direciors/members for the Board Meetings and Committee meetings. Declarations received from the Directors of the Company pursuant to the provisons of Section 184 of Companies Act, 2013. E-forms filed by the company, from lime to time, under applicable provisons of the Companies Act, 1956 and Companies Aci, 2013 and attachments thereof during the financial year under report. Intimations / documents/ reports / returns filed with the Stock Exchanges pursuant to the provisons of Listing Agreement during the financial year under report Stotutory Registers vz - Register of Directors’ & Key Managerial Personnel (KMP) - Register of Members Register of ChargesASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 ANNEXURE - II {to Secretarial Audit Report) List of Applicable Laws to the Company List of applicable Laws to the Company: Registered office : Palm Spring Centre, 2nd Floor, New Link Road, Malad (West), Mumbai-400064, Maharashtra Corporate office : Motilal Oswal Tower, Gokhale Road, Prabhadevi, Mumbai - 400025 Under the Major Group and Head : 1) Companies Act, 2013. 2) National Housing Bonk Act, 1987 3) SEBI (\ssue And Listing of Debt Securities) Regulations 2008. 4) The Maternity Benefit Act, 1961 5) The Payment of Gratuity Act, 1972 6) The Maharashtra Shops & Establishment Act, 1972 7) The Employee's Stote Insurance Act, 1948 8) Employee's Compensation Act, 1923 9} The Maharashtra State Tox on Professions, Trades, Callings and Employments Act, 1975 10} The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 11) The Employees Provident Funds and Miscellaneous Provisions Act, 1952Lill ba We fel i gee) MC fan of the story of your life. = * Make sure it’s beautiful” as a om Kalyan BranchIndependent Auditors' Report63 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Independent Auditors’ Report To the Members of Aspire Home Finance Corporation Limited Report on the Financial Statement 1 Wehave audited the accompanying financial statements of Aspire Home Finance Corporation Limited (the Company], which comprises the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss and the cash flow slatement for the year then ended, and a summary of significant accounting policies and other explanatory information Management's Responsibility for the Financial Statements 2 The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the ‘Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give o irve and fair view ofthe financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepled in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 3. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the asseis of the Company and for preventing ‘ond detecting frauds ond other irregularities; selection ond application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant o the preparation and presentation of the financial statements that give @ rue and fair view and are free from material misstatement, whether due to fraud or error. Auditors! Responsibility 4 Ourresponsibilty is fo express on opinion on these financial statements based on our ousit. We have taken into account the provisions of the Act, the accounting and auditing standards ‘ond matters which are required to be included in the audit report under the provisions ofthe Act ‘ond the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Seclion 143(10} of the Act. Those Standards require thal we comply with ethical requirements and plan and perform the audit fo obtain reasonable assurance ‘bout whether the financial statements are free from material misstatement, 5 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misslalement of the financial statements, whether due to froud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation and foirry ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Asie Home Finance Corporation Linted Indopnden Auditors Report Cominved) presentation of the financial statements in order to design audit procedures that ore ‘appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has an adequele internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the opproprialeness of accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements. 6 Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion Opinion 7 Inouropinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India (a) _ in the case of the Balance Sheet, of the state of affairs of the Company as at 3] March 2015; {b) in the case of the Statement of Profit and Loss, ofthe profit for the year ended on that date; and (c)__ inthe case of the cash flow statement, of the cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements. 8 As required by the Companies (Auditor's Report] Order, 2015 the Order), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the said Order. 9 Asrequired by section 143(3) of the Act, we repor thot: (a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; (b) in our opinion proper books of account as required by law have been keo! by the Company so far as appears from our examination of those books; ()__ the Balance Sheet, the Statement of Profit and Loss and the cash flow statement dealt with by this report are in agreement with the books of account; (4) in our opinion, the Balance Sheet, the Statement of Profit and Loss and the cash flow slatement comply with he Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 201465 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Asie Home Finance Corporation Linted Indopendent Aueitrs’ Report (Continued) con the basis of written representations received from the directors as on 31 March 2015, and taken on record by the Board of Directors, none of the directors are disqualified os on 31 March 2015, from being appointed as a director in terms of section 164 (2) ofthe Act; and {f) with respectto other matters to be included in the Auditor’ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of ourinformation and according to explanations give fo us: Mumbai 28 April 2015 the Company does not have any pending litigations as at 31 March 2015 which would impactits financial position; the Company did not have any long term contracts including derivative coniracts for which there were any material foreseeable losses; and there were no amounis which were required lo be transferred fo the Investor Education and Protection Fund by the Company. For BS R & Co. LLP Chartered Accountants Firm's Registration No: 101248W/W.-100022 Manoj Kumar Vijai Pariner Membership No: 046882(i) (ii) (wv) (vi) (vi) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Annexure to the Independent Auditors' Report - 31 March 2015 (Referred to in our report of even date) (a) The Compeny has maintained proper records showing full porticulars, including quantitative details and situation of fixed assets (b) The Company hos o regular programme of physical verification of is fixed assets by which oll fixed assels are verified in o phosed manner annually. In our opinion, this, periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification The Company is a service company. Accordingly, i! does not hold any physical inventories. Thus, paragraph 3(i) of the Order is not applicable to the Company. During the year, the Company has granted secured loan to managing director which is covered in the register required under section 189 of the Act. (a) According to the information and explanations provided, the borrower has been regularin the payment of principal and interest (b) According to the information and explanotions provided, there is no overdue balance as at3) March 2015. In our opinion, and according fo the information ond explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature ofits business, with regard to purchase of fixed assets and sale of services. The activilies of he Company do not involve any purchase of inventory and sale of goods. We have not observed any major weakness inthe internal conirol system during the course of the audit. According to the information and explanations given to us, the Company has not accepted tony deposi from the public to which the directives issued by the Reserve Bank of India and the provisions of Section 73 lo Section 76 or any other relevant provisions of the Act and the rules framed there under apply. The Ceniral Government has not prescribed the maintenance of cost records under sub section (1) of section 148 of the Act for any of the activities conducted/services rendered by the Company. Accordingly para 3(vi) of the Orderis not applicable. (2) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including income-iox, service tax and other material statutory dues have been generally regularly depositedWf (vii (on) ®) be) (xi) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation inted Annexe tothe Independent Auditors Report -31 Mach 2015 (Continued) during the year by the Company withthe appropriate authorities. As exalained to us, the Company did not have any dues on account of sales tax, wealth tax, customs duly, excise duly, cess, investor education and protection fund and employees’ slale insurance, to the extent applicable, os at 31 March 2015. {b) According to the information and explanations given to us, there are no dues of income-tax, sales tax, service tox, custom duty, wealth tax, excise duty and cess which have not been deposited with the appropriate authorities on account of any dispute. (c)_ According to the information and explanations given to us, there are no dues of investor education and protection fund in accordance withthe relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder which is required to be transferred. The Company was incorporated on 01 October 2013 and has not completed 5 years since incorporation. Consequently, paragraph 3{vii) of the Order is not applicable to the Company, In our opinion and according to the information and explanations given to us, the Company hos not defaulted in the repayment of dues fo its bankers, debenture holders or to ony other financial institution. According fo the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions, In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the explanation and information given fo us, no material fraud on or by the Company has been noticed orreported during the yeor. For BSR & Co. LLP Chartered Accountants Firm's Registration No: 101248W/W.-100022 Manoj Kumar Vijai Mumbai Pariner 28 April 2015 Membership No: 046882“A loving atmosphere in your Home is the foundation for your life” _— Lata Parihar ‘ Employed at Nagpur Municipal Corporation Disbursement from Nagpur BranchFinancial StatementsASPIRE HOME FINANCE CORPORATION LIMITED Balance Sheet as at 31 March 2015 (Currency: Indian Rupees) ANNUAL REPORT 2014-2015 Note Asat Asai No 31 March 2015 31 March 2014 EQUITY AND LIABILITIES: (1) Shareholders’ Funds: (o) Share capital 3 1,50,00,00,000 15,00,00,000 (b) Reserves and surplus 4 1/89,85,476 (27,52,518) (2} Non-Current Liabilities: {e) Long-term borrowings 5 1,50,55,47,000 (b) Long term provisions 6 1,49,94,693 (3} Current Liabilities: (0) Shortterm borrowings 7 22,00,36,293 (bo) Other current liabilities 8 72,09,69,552 5,07,851 (q] Short-term provisions 9 2,33,63,918 TOTAL 40,038,96,932 14,77,55,333 |. ASSETS: (1) Non-Current Assets: (c) Fixed ossets 10 {) Tangible assets 66,71,144 2,28,290 i) Intangible assets 30,39,594 (b) Long term loans and odvances 11 3,55,30,29,728 15,31,435 (cq) Deferred tox assets (net) 12 28,70,166 (2) Current assets: (6} Current investments 13 20,00,00,000 } Trade receivables 4 1,67,96,247 } Cosh ond cash equivalents 15 16,62,60,428 14,26,70,106 ) Short-term loans and advances 16 5,52,29,625 32,23,822 ) Other current assets 7 1,01,680 TOTAL 4,00,38,96,932 14,77,55,333, Significant accounting policies and notes to financial statements 1 & 2 The notes referred fo above form an integral part of the financial statements. As per our report of even date attached For BSR & Co, LLP Chortered Accountants Firm's Registration No: 101248W/W-100022 Manoj Kumar Vijai Pariner ‘Membership No: 046882 Mumbai 28 April 2015 For and on beholf of the Boord of Directors of Aspire Home Finance Corporation Limited Motilal Oswal Anil Sachidanand Chairman Menaging Dizector & CEO S.¥. Sankhe Kalpesh Ojha Company Secretory Chief Financiol Oificer Mumbai 28 April 2015vA ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Statement of Profit and Loss for the year ended 31 March 2015 (Currency: Indian Rupees) Note For the year Forthe period from No ended 1 Ociober 2013 31 March 2015 to 3] March 2014 Income Income from operations 18 227,714,134 Other income 9 11,378,562 4,810,899 Total (A) 239,092,696 4,810,899 Employee benefits 20 80,524,017 3,175,030 Finance cost 2 43,374,002 15,760 Depreciation and amortization expenses lo 2,344,683, 25,769 Provision for contingencies 2 14,345,174 Other expenses 23 59,936,992 4,346,858 Total (8) 200,524,868 7,563,417 Profit/(loss) before tax (C) = (A) - (8) 38,567,828 (2,752,518) Less: Provision for tax Current tox 19,700,000 Deferred tax (2,870,166) Profit/(loss) after tax 21,737,994 (2,752,518) Earnings per share: Basic 0.44 0.40) Diluted 0.44 (0-40) Face value per share 10 10 Profit after Tax (PAT) 21,737,994 (2,752,518) Significant accounting policies and notes to financial stalements 1 & 2 The notes referred to above form an integral part of the financial statements. AAs per our report of even date attached For BSR & Co, LLP Chortered Accountants Firm's Registration No: 101248W/W-100022 Manoj Kumar Vijai Pariner ‘Membership No: 046882 Mumbai 28 April 2015 For and on beholf of the Boord of Directors of Aspire Home Finance Corporation Limited Motilal Oswal Anil Sachidanand Chairman Menaging Dizector & CEO S.¥. Sankhe Kalpesh Ojha Company Secretory Chief Financiol Oificer Mumbai 28 April 2015vy. ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Cash Flow Statement for the year ended 31 March 2015 (Currency: Indian Rupees) For the year Forthe period from PARTICULARS ended 1 Ociober 2013 31 March 2015 to 3] March 2014 Cosh flows from operating activities Net profit before tox 38,567,828 (2,752,518) Adjustments for: Depreciation ond omortisation 2,344,683 25,769 Inierest on fixed deposits with banks (141,600) (314,348) Provision for standard assets 14,345,174 Provision for gratvity 922,223 Dividend income (4,267,799) (4,496,551) Operating cash flow before working copital changes 51,770,509 (7,537,648) Adjustment for working copital changes: (Increase) / decrease in long-term loans & advances (3,542,004,742) (Increase) / decrease in trade receivables (16,796,247) (Increase) / decrease in shor-term loans & advances (52,005,803) (3,223,822) (Increase) / decrease in other current assels 101,680 Increase / (decrease) other current liabilities 720,461,701 507,851 Increase / decrease) long-term provisions Increase / decreose) in shor'-term provisions 3,391,214 Cash generated from operations (2,835,081,688) (10,253,619) Income taxes (paid) / refunded (9,493,551) (31.435) Net cash provided/ (used) by operating activities (A) (2,844,575,239) (10,285,054) Cash flows from investing activities Injerest received on fixed deposils with bonks 141,600 212,668 Purchase of fixed assets (11,827,131) (254,059) Purchase of mutual fund (200,000,000) Dividend income 4,267,799 4,496,551 Capital advance paid (1,500,000) Net cash provided/ (used) by investing activities (B) (207,417,732) 2,955,160 Cash flows from financing activi Proceeds from issue of equity shares 1,350,000,000 150,000,000 Proceeds from borrowings 1,725,583,293 6,500,000 Repayment of borrowings (6,500,000) Net cash provided/ (used) by financing activities (C) 3,075,583,293 150,000,000 Not increase/ (decrease) in cash and cash equivalents (A+B+C) 23,590,322 142,670,106 Cash and cash equivalents at the beginning of the year 142,670,106 166,260,428 Total cosh & cash equivalents as at end of the year73 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Cash Flow Statement for the year ended 31 March 2015 (Continued) (Currency: Indian Rupees) PARTICULARS For the year Forthe period from ended 1 Ociober 2013 31 March 2015 to 3] March 2014 Components of cash at cash evivalents Cash in hand Balance with bonks In current accounts In fixed deposits Total Cosh & Cash Equivalents as at end of he yeor Summary of significant accounting policies AAs per our report of even date attached For BSR & Co, LLP Chertered Accountants Firm's Registration No: 101248W/W-100022 ‘Manoj Kumar Vijai Parner Membership No: 046882 Mumbai 28 April 2015 166,260,428 5,170,106 137,500,000 166,260,428 142,670,106 For and on behalf of the Boord of Directors of Aspire Home Finance Corporation Limited Motilal Oswal Anil Sachidanand Chairman Monaging Director & CEO S.¥. Sankhe Kalpesh Ojha Company Secretary Chief Financial Oificer Mumbai 28 April 2015vz ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Notes to the financial statements for the year ended 31 March 2015 (Corey ndon Rupes 1 Background Aspite Home Finance Corporation Limited , ‘the Company’ was incorporated in India on 01 October 2013. The Company is registered with National Housing Bank under section 29A of the Notional Housing Bank Act, 1987 with effect from 19 May 2014. The Company is primarily engaged into providing loans for purchase or construction of residential houses. 2 Significant accounting policies 2.1 Basisof preparation The financial statements have been prepared and presented under the historical cost convention and acerual basis of accounting, unless otherwise stated, and in accordance with the generally accepted accounting principles in India ("Indian GAAP"), and conform to the statutory requirements, circulars and guidelines issued by the National Housing Bank (NHB) from time fo time fo the extent they have an impact on the financial statements ond current practices prevailing in India. The financial statements have been prepared to comply in oll moterial respects with the Accounting Standards (“AS”) notified under Section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent copplicable. 2.2 — Useofestimates The preparation of the financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amount of assels and liabilities and disclosure of contingent liabilities on the date of the financial statements. Actual resulis may differ from the eslimates. Any revision to ‘accounting estimalesis recognized prospectively in current and future periods. 2.3 Current-non current classification Allassets are and liabilities are classified into current and non-current. Assets An asset is classified as current when itsasties any of he following criteria: ©. Itis expecied fo be realised in, or is intended for sale or consumption in, the company's normal operating cycle; ltisheld primarily forthe purpose of being traded; Itis expected fo be realised within 12 months after the reporting date; or d. IN cash or cash equivalent unless itis restricied from being exchanged or used lo sele a liability forat least 12 months after the reporting date,75 24 25 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) Significant accounting policies (Continued) Current assets include the current portion of non-current financials assets. Allother assets are classified as non-current, Liabilities liability is classified as currentwhen it satisfies any of the following criteria: ©. __ltis expected to be settled in the company’s normal operating cycle. b. Itisheld primarily for he purpose of being traded; c __ltisdueto be setled within 12 months afterthe reporting date; or d, The company does not have an unconditional right to defer setilement ofthe liability forat least 12 months after the reporting date. Terms of the liability that could, at the option of counterpary, results in its settlement by the issue of equity instruments do not affect its classification Current liabilities include current portion of non-current financial liabilities. Allother liabilities are clossified as non-current. Borrowing cost Ancillary costs incurred for arrangement of borrowings such as upfront fees / brokerages ‘ore period costs and amortized over the tenure of the borrowing as per terms of sanction / agreement Fixed Assets Tangible fixed assets are carried at cost of acquisition less accumulated depreciation and/or ‘accumulated impairment loss if any. Cost comprises the purchase price and any cos! attributable forbringing the asset to its working condition forts intended use. Intangible fixed assets that are acquired by the Company are measured initially at cost After initial recognition, an intangible assets is carried at its cost less any accumulated ‘amoriisation and any accumulated impairment loss. Fixed assets are reviewed ot each reporting date to determine if there is any indication of impoirment. For assets in respect of which any such indication exisis, the assel’s recoverable ‘amount is eslimated. An impairment loss is recognised at carying amount of an asset exceeds its recoverable amount. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset with future net discounted cash flows expected fo be generated by the asset. If such assets ore considered to be impaired, the impairment is recognised by debiting the Statement of Profit ond Loss and is measured as the amount by which the carrying amount ofthe assels exceeds Ihe fairvalue of the assets. IF at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject fo a maximum of depreciated historical cost76 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 2.6 27 28 Significant accounting policies (Continued) Depreciation & Amortisation Tangible Assets Depreciation on all tangible fixed ossets except leasehold improvements is charged over the ‘estimated usetul life of the fixed assets on a written down value atthe rates and in the manner prescribed in Schedule Il of the Companies Act, 2013. The useful life of on asset s the period over which an assel is expected 10 be available for use to the Company. Assels purchased/sold during the yeor are depreciated on a pro-rota basis, based on the aciual number of days he assets have been puto use. In respect of Leaschold Improvements depreciation is provided on the remaining lease period or useful life whicheveris earlier. Intangible Assets Computer softwore is amortised over a period of 5 years Investments Investments thot ore readily realisoble and intended to be held for not more than one year from the dote of acquisition are classified os current investments. All other investments ore classified os long lerm investments Long term investments are carried at cost less any other-than temporary diminution in valve. determined separately for each individual invesiment.Current investments are valued at cost or market/fair value, whichever is lowerNet asset value of mutual units declared is considered as market value for non-exchange traded mutual funds. Profit or loss on sale of investments is determined on the basis of weighted average carrying ‘omount of investments disposed of Loans and advances: Classification and provisioning Housing loans are classified as per NHB guidelines, inlo performing and non-performing cosse's. Further, non-performing assels are classified into sub-siondard, doubiful ond loss ‘ossets and provision made based on criteria stipulated by NHB guidelines. Additional provisions ore made against specific non-performing assets over ond above as stated in NHB guidelines, if in the opinion of the management higher provision is necessary. The Company maintains general provision for standard ossets as stipulated by NHBva 29 2.10 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) Significant accounting policies (Continued) Revenue Recognition a. Interest on Housing Loans (i) Interest income on loans is recognised on accrual basis except in case of non- performing assets where interests recognised on realisation, as per NHB guidelines. Repayment of housing loans is by way of Equoted Monthly Instalments (EMI) comprising principal and interest. Interests calculated on monthly reducing balance in terms of financing scheme opted by he borrower. EMI commences once the entire loan is disbursed. Pending commencement of EM, pre-EMIl interest is charged every month and is accounted on accrval basis b. Fees, other charges and other Interest (i) Upfront processing fees are recovered and recognised at the time of disbursement of loan (i) Fees and additional interest income on delayed EMI/Pre-EMI are recognized on receipt basis. (iii) Income from cheque bouncing charges is recognised on receipt basis. c Income from Investments. (i) Dividend is accounted when the right fo its receipt is established. dé. Other Income fi) In other cases, income is recognized following accrual principles when there is no significant uncertainty as to determination and realization. Employee benefits Defined contribution plans A defined contribution plan is post-employment benefit plan under which an entity pays specified contributions fo a separate en‘ity and has ne obligation to pay any further amounts. The Company makes specified monthly contribulions towards employee provident fund to Government administered provident fund scheme which is a defined contribution plan. The Company's coniributions is recognised as an expense in Statement of Profile and Loss during the period in which the employee renders the related service78 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) Significant accounting policies (Continued) Defined benefit plans The Company's gratuity benefit scheme is © defined benefit plan. The Company's net obligation in respect of the gratuily benefit scheme is calculated by estimating the amount of {uture benefit hat employees have earned in return for their service in the current and prior period; that benefits discounted to determine its present value, and the fair value of any plan asses, if any, is deducied The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Accrued Benefit Method (same as Projected Uni Credit Method), which recognises each period of service as giving rise fo additional unit of employee benefitenillement and measures each unit separately to build up the final obligation The obligation is measured ot the present value of the estimated future cash flows. The discount rates used for determining the present valve of the obligation under defined benefit plon, are based on the market yields on Government securities as at the balance sheet date Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss. Compensated absences The employees of the Company are entitled to cary forward a part of their unavailed / unutiized leave subject to a maximum limit. The employees cannot encash unavailed / unuilized leave. The Company provides for the liability towards compensated absence based on AS- 15 Employee Benefis, Taxation Income tax expense comprises of current tax (.e. amount of tox for he period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of iming differences belween accounting income and toxable income for he period) Current tox Current tax expense is recognized on on annual basis under the taxes payable method, based ‘on the estimated tax liability computed after taking credi for allowances and exemption in accordance with Indian Income-tax Act, 196. Deferred taxation Deferred taxis in respective of the timing differences between accounting and taxable income i.e. differences that originates in one period and are capable of reversal in one or more subsequent periods, recognized for the fulure tax consequences of timing differences beiween the carrying values of assets and liabillies and their respective tox bases, and operating loss carry forwards. Deferred fox assels and liabilities are measured using the enacted or substantively enacted tox,ates al the Balance sheet date.rh) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 2.12 2.13 2.14 Significant accounting policies (Continued) Deferred tax assels are recognized only to the extent there is reasonable certainty that the assels can be realized in future. In case of unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assels are recognized only if there is virtual certainty of realization of such assets supported by convincing evidence. Deferred tox assets are reviewed at each Balance sheet date and appropriately adjusted to reflect the amount that is reasonably / virtually certain o be realized Provisions and contingencies The Company creates o provision when there isa present obligation as a result of a past event that probably requires an outflow of resources and a relioble estimate can be made of the amount of the obligation. A disclosure of a contingent liability is made when there is a possible obligation or present obligations that may, but probably will nt, require an outflow of resources. When there is « possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Provisions are reviewed at each Balance sheet date and adjusted to reflect the current best estimates. [Fit is no longer probable that an outflow of resource would be required to settle the obligotion, the provision is reversed. Contingent osse's are no! recognized in the financials. However, contingent assels are ossessed continually and iit virtuolly certain that an inflow of economic benelis will arise, he csseis ond related income are recognized in the period in which the change occurs. Earnings per share (EPS) The Company reporis basic and diluted earnings per shore in accordance with AS - 20, Earnings Per Share - prescribed in the rules. Basic EPS is computed by dividing the net profi oliribuiable to the eavity shareholders by the weighted average number of equily shares outstanding during the year. Diluted EPS is computed by dividing the net profit attributable to the equity shareholders, for the year, by the weighted average number of equity ond dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutve Leases Lease rentals incurred under operating leose arrangements are charged to the Statement of Profitand Loss on @ straight line basis over the lease termASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) Ast As at 31 March 2015 31 March 2014 re capitd Authorised : 20,00,00,000 {previous year: 2,00,00,000) equity shores of 8s. 10 each 2,000,000,000 200,000,000 100,000,000 200,000,000 Issued / Subscribed / Paid up Paid up: 10,00,00,000 {previous year: 1,50,00,000) equity shares of Rs. 10 each , fully poid-up 1,000,000,000 150,000,000 10,00,00,000 (previous year: Nill equity shores of Rs. 10 each, paid-up value of Rs. 5 each 500,000,000 1,500,000,000 150,000,000 a. Movement in share capital: 31 March 2015 31 March 2014 No of shares Amount No of shares. Amount, Equity shares Outstanding at the beginning of the year 15,000,000 150,000,000 Issued during the year 185,000,000 1,350,000,000 15,000,000 150,000,000 Outstanding at the end of the year 200,000,000 _1,500,000,000_15,000,000__ 150,000,000) During the year, the Company has issued 8,50,00,000 of Rs.10 each, fully paid up ond 10,00,00,000 parily paid equity shares of Rs.10 each (paid up Rs.5) aggregating to Rs.135,00,00,000 to holding company Motilal Oswal Securities Limited b. _Terms/rights attached to equity shares : The Company has only one class of equity shares having o parvalue of Rs 10. Each holder of equity shares is entitled fo one vote. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution ofall preferential amounts.cH ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) During the period ended 31 March 2015, the amount per share dividend recognized 95 distributions to equity shareholders was Rs. Ni Inthe event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, afler distribution of all preferential emounis ‘The distribution will be in proportion to the number of equity shares held by the shareholders. c. Details of Shares held by holding Company / shareholders holding more than 5% shares in the Company 31 March 2015 31 March 2014 a ofshares % holding in % holding in No of sh the class No of shares the class Motilal Oswal Securities Limited Equity shore of Rs. 10 each fly paid-up 99,999,994 100% 14,999,994 100% Ecuity share of Rs. 10 each RS patlly paid-up 100,000,000 100% 1 Ast As ot 31 March 2015 31 March 2014 er vesandsur pl us Statutory Reserve" Opening balance - ‘Add: Additions during the year (refer Note 32} 4,347,599 4,347,599 Surplus / (deficit in Statement of Profit and Loss Opening balance (2,752,518) ‘Add: Profit / (loss) for he yeor 21,737,994 (2,752,518) Less: Transfer to statutory reserve (4,347,599) Closing balance in Statement of Profit and Loss 14,637,877 (2,752,518) 18,985,476 (2,752,518) *As per section 29C of the National Housing Bank Act, 1987ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) As at 31 March 2015 Ast 31 March 2014 gt ernbaro wing Secured redeemable non-converlible debentures* 500,000,000 ‘Terr loons from Banks** 1,100,000,000 Less: Current maturities of long term borrowings (94,453,000) 1,505,547,000 “The debentures are secured by way of an exclusive charge on standard housing loan to the extent of 10% of the outstanding amount of debentures. Terms of debentures are as follows: Description Issue Date [Redemption date| Coupon rate | Nos. Amount 11.25% secured NCD series A] 26-Nov-14 25-Nov-16 11.25% 500 | 500,000,000 “+ Nature of security and terms of repayment for secured borrowings (other than debentures): Allsecured long term borrowings are secured by way of hypothecation of receivable’.e. loans and advances. Repayment terms of term loan from banks are as follow 31 March 2015 Term Loan from banks - Secured Maturities in Rate of Interest T-3 years __-3-Syears after 5 years 11-12% per ennum 515,456,330 289,900,790 294,642,880 Total 1,100,000,000 Total 515,456,330 289,900,790 294,642,880 1,100,000,000ri) ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) Asat Asat 31 March 2015 31 March 2014 6 Long-term provisions Provision for employee benefits Gratuity Other provisions Provision for standard asseis (refer note 31) Totol 7 Short term borrowings Short term loans from barks 827,232 14,167,461 14,994,693 220,036,293 220,036,293 * Secured by way of hypothecation of housing loons given by the Company. These are repayable on demand and carry interest rate of 11 to 12% per annum) 8 — Other current liabilities Current maturities of long term borrowings 94,453,000 Interest accrued and but not due 23,220,549 Statutory liabilities 8,798,698 218,972 Provision for bonus 17,400,000 Book overdraft 537,554,291 Accrued salaries and benefits 31,050 Trode payables 39,543,014 257,829 720,969,552 507,851 9 Short-term provisions Provision for employee benefits Gratuity 94,991 Other provisions Provision for expenses 3,391,214 Provision for taxes 19,700,000 Provision for standard assets (refer note 31) 177,113 23,363,918ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Asie Home Finance Corporation Limited Notsto the financial statements (Continued) - osv'eez | eav'sz oou'se sso'rsz eso'vsz | - ren osc'eee | o9u'se e9e'se eso'vse sun Busavone e109 pve sitneue7, 299k snotong osc'sez | eec‘oir's | zsv'ose'z ces'vre’z | eoc'se | ost'te0'z cee" ti] os0'rsz pre. : ves'eo'e | tvc't9s vei9s sea'o09’e ses'oos'e | - (2) s0ss0 o1qy5u0H4 HO) ves‘ccore | e'iss veils see'009e see'oo9'e 40220 091540444 osc'eze | vrt'tze’9 | wiz‘608't wr'cer't | esc'se | sse’oer’e 96z'922's | 6so'vsz (0) sso oyqy6u pov, veu's0s | cor'tut us 1s'910 suawovordu poysspey ozeere | eev'vz es0'ese es0'éez suowenbe 22140) wee, — | 998 sse'rl sse’rl suoypjoiu 2420 seo'ese't | se9'eat sav'ezt ozs’ 180% ozs’ t80'z soinagy 9 rang osz'eze | esa'sas'e | cve'irs 20°91 eou'se | 9.s'260's tso'vve'y | aso'vsz | swun Bussepo:8 pop pun seinduion sioss0 9141640, 7102 ww Le | staze-eW Le [si0z HW Le | 28=K oy Bnp| sox oy Boum | rioz way | side mreW IF [Bek ay Bunnp | ook oy Baume | yi0z WsY | Py oy lew ssoyonseq | souppy |v ey sowpnpeq | suoupey | sv PIN woyoDeideq Ea) SIPSSD POXIZ OLASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) As at As at 31 March 2015 31 March 2014 Long-term loans and advances Secured, considered good Loans (Standard loans) * 3,529,821,276 Loans to related parties 12,043,901 - Unsecured, considered good Security deposit 1,671,000 - Capital advances 500,000 Advance income tax 9,493,551 31,435 3,553,029,728 531,435 Loans granted by the Company are secured by equitable mortgage/ registered mortgage of the property and/or undertaking to create security ‘and/or personal guarantees and/or assignment of life insurance policies. Deferred tax assets (net) Deferred tax liabilities Difference between book and tax depreciation 672,763 Reserve created u/s 361} 1,410,578 Gross deferred tox labilies 2,083,341 Deferred tax asset . Provision for gratuity 299,215 . Provision for standard assets 4,654,292 Gross deferred tax assets 4,953,507 Net Deferred tox asset 2,870,166 - Current investments Reliance Mutual Fund - Money manager fund direct plan growth option 200,000,000 . (Market value or cost whichever is less) 200,000,000 . Details No. of units 103,903 Net asset value (Market value) 200,594,401 Total book value 200,000,000ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) As at As at 31 March 2015 31 March 2014 14 Trade Receivables Unsecured, considered good Outstanding for © period less than six months from the dote they are due for payment 16,796,247 16,796,247 - 15 Cash and cash equivalents Balances with banks in current accounts 166,260,428 5,170,106 Fixed deposit 137,500,000 166,260,428 142,670,106 16 Short-term loans and advances Secured, considered good Loans (Standard loans) * 43,785,591 - Loans to related parties 642,672 Unsecured, considered good Advance to employee 3,176,773 Prepaid expenses 618,904 44,029 Unamortsed borrowing cost 9,799,456 - ‘Advance to vendors 44,006 Service tox credit receivable 3,020 Loans to sto 338,996 - 55,229,625 17 Other current assets Interest accrued on fixed deposits 01,680, (01,680ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) For the year For the period from ended 1 October to 31 March 2015 31 March 2014 18 Income from operations Inferest income on loans 102,993,908 - Processing fees 86,020,003, : Other fees 38,700,223 - 227,714,134 - 19 Other income Dividend income 4,267,799 4,496,551 Interest on fixed deposits with bonks 141,600 314,348 Net gain/{loss) on sale of investments 6,969,163 - 11,378,562 4,810,899 20 Employee benefit expenses Solaries, wages ond bonus 77,249,489 3,132,774 Contribution to provident and other funds 2,009,987 33,125 Sioff welfare expenses 1,264,541 9,131 80,524,017 3,175,030 21 Finance costs Interest on non convertible debentures 19,417,808 . Inferest on term loans 14,614,771 . Interest on intercompany loans 396,228 - Discount on commercial papers 7,460,750 . Other borrowing cost 523,835 - Financial and bank charges 960,610 15,760 43,374,002 15,760 22 Provision for contingencies Provision on standard assets 14,345,174 14,345,174 .88 ASPIRE HOME FINANCE CORPORATION LIMITED ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) For the year For the period from ended 1 October to 31 March 2015 31 March 2014 23° Other expenses Filing fees 15,113,940 - ‘Commission and brokerage 12,451,116 - Legal & professional charges 11,507,894 1,821,570 Rent 7,843,974 447,246 Power and fue! 2,537,362 - Printing & stationary 1,165,808 190,230, Data processing charges 929,289 - Advertisement and marketing expenses 849,960 17,020 ravelling and conveyance 848,801 41,557 Auditors’ remuneration 633,648 150,349 Communication and data charges 608,662 15,941 Valuation charges 569,364 Office expenses 537,193 87,097 Membership & subscription fees 286,345 : Insurance 226,418 13,476 Rates & axes 5,467 1,332 Peeliminory expenses 1,557,008 Miscellaneous expenses 3,821,751 4,032 59,936,992 4,346,858 Auditors' remuneration: As auditor Statutory audit 275,000 70,000 Limited review of quarterly results 225,000 33,812 500,000 103,812, fox audit fees 50,000 For cerilicalion work 65,000 45,027 Out of pocket expenses 18,648 1 633,648 24 Segmental Reporting The Company is primarily engaged into business of providing loans for purchase or construction of residential houses. Further the Company does not have any separate geographical segment in India. ‘As such there are no separate reportable segment as perAS 17 "Segment Reporting!ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 25 Related Parties (A) Names of related parties by whom controls exercised Motilal Oswal Securities Limited Holding company Motilal Oswal Financial ServicesLimited —- Ultimate holding company (8) _ Fellow subsidiaries with whom transactions have taken place None (C)__ Key managerial personnel MotilolOswal —- Director Roamdeo Agrawal - Director AnilSachidanand - Managing Director and CEO Transactions with related parties are as enumerated below: Transaction FY-2014-15| For the period from 1 October 2013 (Date of incorporation) fill 31 March 2014 Reimbursement of expenses by the Company Motilal Oswal Securities Limited + Preliminary expenses : 508,300 ~ Office expenses 3,178,185 : ~ Rent 5,267,700 45,000 Loan taken Motilal Oswol Securities Limited 10,306,000 6,500,000 Motilal Oswal Financial Services Lid 190,000,000 - Loan repaid Motilal Oswol Securities Limited 10,306,000 6,500,000 Motilal Oswal Financial Services Lid 190,000,000 Interest paid Motilal Oswal Securities Limited 107,631 15,760 Motilal Oswal Financial Services Lid 288,597 - Customer referral fees Motilal Oswal Securities Limited 10,000,000 . Key management personnel Anil Sachidanand (MD and CEO) ~ Remuneration Poid 10,000,000 443,548 = Loon given 13,000,000 : ~ Loan re-payment 313,427 - - Inerest received on loon 263,533 - Balance payable Motilal Oswal Securities Limited 2,860,418, 45,000 Balance receivable Anil Sachidanand (MD and CEO) 12,686,573 3,176,773ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 26 Earnings per Share In accordance with Accounting Standard 20 on Earnings Per Share, the compviation of earnings per share is set out below: 31 March 2015) 31 March 2014 2} Shareholders earnings (os per Statement of Profit and Loss) 21,737,994 (2,752,518) b} Weighted average number of equity shares 48,931,507 6,945,205 <)_ Basic earnings per share {in rupees) 0.44 (0.40) 4) Diluted earnings per share {in rupees) 0.44 (0.40) 27 Contingen jes and commitments @. Contingent liabilities: NIL b. Commitments: Eslimated amounts of contracts remaining to be executed on capital account and not provided for aggregate to 8s. 1,33,79,66,130 28 Disclosure pursuant to Accounting Standard 15 (Revised) - Employee Ben A) Defined contribution plan (Provident fund) ‘Amount of Rs, 10,87,764 is recognised os an expense and included in “Employee benefit expenses” note 20 in he Statement of Profitand Loss. B) Defined benefit plan (Gratuity): The following tables summarise the components of the net benefit of expenses recognised in the Statement of Profit and Loss and the unfunded status and amounts recognised in he Bolance Shee! for the gratuity benefit plan, Statement of Profit and Loss Net Employee benefit expenses Current service cost 922,223 . post service cost - Interest cost - . Expected return from plant asset : : Curtailment cost . : Settlement cost - . Net actuarial gain or loss recognised in the year : : Expenses recognised in the Statement of Profit and Loss 922,223, ~ Experience History 2015 2014 {Goin}/loss on obligation due to change in assumption 64,463 - Experience (gain)/loss on obligation (64,463) Acivarial gain/{loss) on pion assets - :91 ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 28 Disclosure pursuant to Accounting Standard 15 (Revised) - Employee Benefits (Continued) Bolance Sheet Details of provision of gratuity 2015 2014 Liability ot the end of the year 922,223 - Fair value of plan ossels al the end of the year - : Differences : : Unrecognised past service cost - - Unrecognised transition lsbilty - - 922,223 - Changes in the present value of the defined benefit obligation are as follow: 2015 2014 Present valve of obligation al the beginning of the year Current service cost 922,223 . past service cost interest cost - - Benelit paid : : Curtailment cost Settlement cost - - Net actuarial gain or loss recognised in the year - : Liobility at the end of the year 922,223 - Balance sheet reconciliation 2015 2014 Opening Net liability - - Expenses as above 922,223 : Employers contributions Closing net liability 922,223 . Closing provisions at the end of the year 922,223 : Principal actuarial assumptions at the balance sheet date 2015 2014 Interest / Discount Rate 8.75% 7.77% Rate of increase in compensation 8.00% 1.00% Rate of retum fexpected) on plan assets Employee Attrition Rate(Past Service (PS) ) PS: 0 to 37 : 0.5% PS: 0 10 37 : 8% Expected overage remaining service 8.67 9.23ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 29 30 31 Operating leases The Company has taken a carunder operating leases. Gross rental expenses charged forthe year ended 31 March 2015 aggregated 8s. 957,360/- which has been included under the head other expenses Rent, in the Statement of Profitand Loss. Future minimum lease payments for the non-cancellable operating lease are NIL. Future minimum lease payments for the non-cancellable operating loose are gross of sharing of expenses with group companies. Details of dues to micro, small and medium enterprises Trade Payables includes Rs. Nl Previous year: Rs. Nil} payable fo “Suppliers” registered under the Micro, Small and Medium Enterprises Development Aci, 2006. No interest has been paid / is payable by the Company during the year to “Supplirs" registered under this act. The aforementioned is based on the responses received by the Company fo its inquiries with suppliers with regard to opplicabilty under the said act. Provision in respect of standard, sub-standard, doubtful and loss assets are recorded in accordance with guidelines on prudential norms as specified by National Housing Bank and are as follows: Particular As at 31 March 2015, As at 31 March 2014 Long-term provision Housing loan Standard assets 14,167,461 - Sub-standard assets . . Doubiul assets - : Loss assets - - Short-term provision Housing loon Standard assets 177,713 . Sub-standard asses - Doubtul assets - - Loss assets . . Total 14,345,174) -ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 32 Disclosure pursuant to circular no. NHB CND/DRS/Pol circular 61/2013-14 dated 2014 issued by NHB. Statutory Reserve Balance at the beginning 31 March 2015 31 March 2014 0) Statutory Reserve (As per Section 29C of The National Housing Bank Aci, 1987) - - b) Amount of spacial reserve u/s 36(1) (vi) of Income Tax Act, 1961 taken in to account for the purpose of statutory reserve under Section 29C of the NHB Act, 1987 - - 6) Total - Addition / appropriation / withdrawals during the year Ade: ‘Amount transferred (As per Section 29C of The National Housing Bank Act, 1987) - - b) Amount of special reserve u/s 36(1) (vil) of Income Tax Act, 1961 taken in to account for the purpose of statutory reserve under Section 29C of the NHB Act, 1987 4,347,599 - Less o} Amount appropriate (As per Section 29C of The National Housing Bank Act, 1987) . . b) Amount of withdrawn from special reserve v/s 36(1) li] of Income Tox Act, 1961 taken iin to account for the purpose of statutory reserve under Section 29C of the NHB Aci, 1987 : : Bolance at the end of the year 0) Slatulory Reserve (As per Section 29C of The National Housing Bank Act, 1987) : - b) Amount of special reserve u/s 361) (vil) of Income Tax Act, 1961 token in to account for the purpose of statutory reserve under Section 29C of the NHB Act, 1987 4,347,599 . Total 4,347,599 :ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 32. Disclosure pursuant to circular no. NHB CND/DRS/Pol circular 61/2013-14 dated 2014 issued by NHB. (Continued) Disclosure pursuant to circular no. NHB/ND/DRS/POL-No.35/2010-11 dated October 11, 2010 issued by NHB 1. Capital to Risk Asset Ratio (CRAR) Items ‘Asat31 March 2015 As at 31 March 2014 CCRAR (%) 54.04% - CCRAR - Tier | Copital (%) 53.53% CCRAR - Tier Il Capitol (4) 0.51% . Il, Exposure to Real Estate Sector Category Asat31 March 2015 As at 31 March 2014 @) Direct Exposure (i) Residential Mortgage: Lending fully secured by mortgage on residential propery that is or will be occupied by the borrower or that is rented; 3,586,293,440 : (i) Commercial real estate: Lending secured by mortgages on commercial real estates (office building, relail space, multipurpose commercial premises, muli-amily residential buildings, mult-tenanted commercial premises, industrial or ware house space, hotels, land acquisitions, development cand construction, etc.) Exposure would also include non-fund based (NFB) limits; - - (i) Investment in mortgage backed securities (MBS)and other securtised exposures: {0} Residentil - - {b) Commercial real estate b) Indirect Exposure Fund based and non fund based exposures fon National Housing bank (NHB) and Housing Finance Companies (HFCs) - -ASPIRE HOME FINANCE CORPORATION LIMITED | ANNUAL REPORT 2014-2015 Aspire Home Finance Corporation Limited Notes othe financial statements (Continued) 32. Disclosure pursuant to circular no. NHB CND/DRS/Pol circular 61/2013-14 dated 7 April 2014 issued by NHB. (Continued) Disclosure pursuant to circular no. NHB/ND/DRS/POL-No.35/2010-11 dated October 11, 2010 issued by NHB (Continued) Il, Asset Liability Management Maturity pattern of certain items of asset and liabilities - current year Borrowings Advances to 14 doys : 3,418,690 Over 14 doys upto | month - - Over | months upto 2 months 3,577,450 Over 2 months upto 3 months : 3,562,452 Over 3 months upto 6 months 200,000,000 10,922,975 Over 6 months upto | year 94,444 Ad? 22,946,696 Over 1 years upto 3 years 921,011,888 301,009,453 Over 3 years upto 5 years 289,900,790 284,317,200 Over 5 years 294,642,880 2,956,538,524 Toto 1,800,000,000 3,586,293,440 For B§ R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants Aspire Home Finance Corporation Limited Firm's Registration No: 101248W/W-100022 ‘Manoj Kumar Vijai Motilal Oswal Anil Sachidanand Parinar Chairman Managing Director & CEO Membership No: 046882 8. Y. Sonkhe Kalpesh Ojhe Company Secretary Chief Financial Officer Mumbai Mumbai 28 April 2015 28 April 2015NOTESAspire Home Finance Corporation Limited AS PIR E | totsrosvar toner natintutan Sayan Road, oN Opposite Parel ST Depot, Prabhadevi, Mumba 400025 HOME FINANCE Email: info@ahfcl.com | B: + 2239804200 A | oN lesson CIN: U65923MH2013PLC248741