CIN : U65992TN1922PLC001974 Phone : 044 - 2642 1212

044 - 2642 3203

(Established - 1922)
PROSPERITY Registered Office :
SERVICE
SECURITY "APPADURAI BUILDINGS", No. 174 & 177,
VELLALA STREET, PURASAWALKAM, CHENNAI-600 084.
e-mail : theppf@gmail.com Web : www.ppfnidhi.com

ANNUAL
96 th REPORT
Year
2017 - 2018

Date of Meeting:
25- 07- 2018
 96th Year
1922 - 2018
CIN : U65992TN1922PLC001974 Phone : 044 - 2642 1212
044 - 2642 3203

(Established - 1922)
Registered Office : "APPADURAI BUILDINGS",
PROSPERITY
SERVICE
No. 174 & 177, VELLALA STREET,
SECURITY PURASAWALKAM, CHENNAI - 600 084.
e-mail : theppf@gmail.com Web : www.ppfnidhi.com

96 YEARS IN SERVICE
TO ITS MEMBERS

MARCHING TOWARDS CENTENARY

2017 - 18 TO 2022 - 23

Centenary Decade
 96th Year
1922 - 2018

CIN : U65992TN1922PLC001974
Registered Office : "APPADURAI BUILDINGS",
PROSPERITY No. 174 & 177, VELLALA STREET,
SERVICE PURASAWALKAM, CHENNAI - 600 084.
SECURITY
e-mail : theppf@gmail.com Web : www.ppfnidhi.com

OFFICE BEARERS
Chairman : Thiru A.G. RAVISHANKAR, M.Sc.,
Whole Time Directors : Thiru T.S. RAVISANKAR
Thiru N.M. MANIVANNAN, B.A.,
Legal Advisers : Thiru M.A. LAKSHMIPATHI, B.A., B.L.,
Thiru V. RAGHUPATHI, B.A. B.L.,

DIRECTORS

Thiru N. M. Manivannan, B.A., (DIN : 00157036)

Thiru V. Raghupathi, B.A., B.L., (DIN : 00393444)
Thiru T.S. Ravisankar (DIN : 00900542)
Dr. E. Sakthi Aisvarya, M.B.B.S., (DIN : 07267018)
Thiru G.S. Venkataraman (DIN : 00419485)
Thiru M.A. Lakshmipathi, B.A., B.L., (DIN : 00315271)
Thiru P.P. Dhandapani, B.Sc., (DIN : 06588100)
Thiru A.G. Ravishankar, M.Sc., (DIN : 00418872)

Statutory Auditor
M/s. P.T. PONNAIAH & CO., Chartered Accountant.
No.72, B/36, 1 st Floor, L-Block, 21 st Street, Anna Nagar East,
Chennai - 600 102. Ph : 044 2620 2221, 2628 2221. E-mail : ptp@ptpindia.com
ICAI Membership No. 019873, Firm Registration No. 002669-S

Internal Auditor
Mr. ANANTHA PADMANABHA ALSE, Chartered Accountant.
New No.4. Old No.37, Sriman Srinivasa Road, Alwarpet,
Chennai - 600 018, Ph: 044-24990070 email : ananthalse@gmail.com
ICAI Membership No. 200559, Firm Registration No. 009992-S

1
 96th Year
1922 - 2018

BANKERS
LAKSHMI VILAS BANK LTD Purasawalkam Chennai - 600 084
CANARA BANK Purasawalkam Chennai - 600 007
CITY UNION BANK Purasawalkam Chennai - 600 084
STATE BANK OF INDIA Purasawalkam Chennai - 600 007
ALLAHABAD BANK Purasawalkam Chennai - 600 084
LAKSHMI VILAS BANK Madipakkam Chennai - 600 091
ALLAHABAD BANK Madipakkam Chennai - 600 091
ALLAHABAD BANK Peravallur Chennai - 600 082

Registered Office :

"APPADURAI BUILDINGS",
No.174 & 177, Vellala Street, Purasawalkam,
Chennai – 600 084.
Phone : 2642 1212 , 2642 3203
E-mail : theppf@gmail.com
Web : www.ppfnidhi.com

Branch Office :

Madipakkam Branch :
No.26, Velacherry Main Road, Sadasivam Nagar,
Madipakkam, Chennai – 600 091.
Phone : 044 4558 3203
E-mail : theppfmadipakkam@gmail.com

Peravallur Branch :
No.164, Paper Mills Road,
Peravallur, Chennai – 600 082
Phone : 044 - 4269 3203
E-mail : theppfperavallur@gmail.com

2
 96th Year CIN : U65992TN1922PLC001974
1922 - 2018
The Purasawakum
Permanent FFund
und Limited
(Established - 1922)
Regd. Office : "APPADURAI BUILDINGS" No.174 & 177,
PROSPERITY
SERVICE Vellala Street, Purasawalkam, Chennai - 600 084.
SECURITY Phone : 044 - 2642 3203, 2642 1212
e-mail : theppf@gmail.com Web : www.ppfnidhi.com

Notice is hereby given that the NINETY SIXTH Annual General

Meeting of the Shareholders of The Purasawakum Permanent Fund
Limited, will be held on Wednesday 25th July, 2018 at 9.00 a.m. at
"HOTEL PALMGROVE" No. 13, Kodambakkam High Road,
Nungambakkam, Chennai-600034, to transact the business contained
in the Agenda.

All the Shareholders are requested to attend the meeting.

AGENDA

ORDINARY BUSINESS :

1. To receive, consider and adopt the Audited Balance Sheet as at

31st March 2018 along with the Profit & Loss Account and Cash Flow
Statement for the year ended on that date together with the Annexure
and Notes and the Reports of the Directors and Auditors thereon to the
shareholders.

2. To declare dividend on Equity Shares (The Board of Directors have

recommended a dividend at 5% on Equity Shares)

3. To appoint a Director in the place of Thiru N.M. MANIVANNAN,

(DIN: 00157036) who retires by rotation and being eligible, offers himself
for re-appointment.

4. To appoint a Director in the place of Thiru V. RAGHUPATHI,

(DIN: 00393444) who retires by rotation and being eligible, offers himself
for re-appointment.

5. To appoint a Director in the place of Thiru T.S. RAVISANKAR,

(DIN: 00900542) who retires by rotation and being eligible, offers himself
for re-appointment.

3
 96th Year
1922 - 2018
6. To re-appoint Auditors and to fix their remuneration and for this purpose,
to pass with or without modification(s) the following resolution as an
Ordinary Resolution:

"RESOLVED THAT pursuant to provisions of Section 139, 141, 142 and

other applicable provisions of the Companies Act, 2013, if any, read with
the Companies (Audit & Auditors) Rules, 2014, including any statutory
enactment or modification thereof, M/s. P.T. PONNIAH & CO., Chartered
Accountants, (Firm Registration No. 002669-S) be and is hereby
re-appointed as the Statutory Auditors of the Company and to hold the
office from the conclusion of this 96th Annual General Meeting till the
conclusion of 101st Annual General Meeting of the Company, subject to
ratification as to the said appointment at every Annual General Meeting,
if necessary on such remuneration including out of pocket expenses
and other expenses as may be mutually agreed by and between the
Board of Directors and the Auditors.

RESOLVED FURTHER THAT to give effect to above resolution, the Board

of Directors of the Company be and are hereby authorized to take all
necessary steps and to do all such acts, deeds, matters and things which
may deem necessary in this behalf."

SPECIAL BUSINESS:

7. Appointment of Dr. E. SAKTHI AISVARYA (DIN: 07267018) as a

Director.

To consider and, if thought fit, to pass with or without modification(s), the

following Resolution as an Ordinary Resolution:

"RESOLVED THAT Dr. E. SAKTHI AISVARYA (DIN: 07267018) who

was appointed as an Additional Director of the Company at the Meeting
of the Board of Directors of the Company held on 29.01.2018 and who
holds Office as such with effect from 30.01.2018 upto the end of this
Annual General Meeting pursuant to the provisions of Section 161 of the
Companies Act, 2013 and in respect of whom the Nomination and
Remuneration Committee has approved and recommended the
appointment of Dr. E. Sakthi Aisvarya (DIN: 07267018) who is also
member of the Company and possesses minimum qualification shares,

4
 96th Year
1922 - 2018
as a candidate for the office of the Director of the Company who has also
consented, if appointed, to act as a Director of the Company, be and is
hereby appointed as the Director of the Company who is liable to retire by
rotation.

8. Re-Appointment of Mr. T. S. Ravisankar (DIN: 00900542) as Whole

Time Director and to fix his remuneration:

To consider and, if thought fit, to pass with or without modification(s), the

following resolution as a Special Resolution:

"RESOLVED THAT pursuant to the provisions of Sections 196, 197,

Schedule V and all other applicable provisions of the Companies Act,
2013, the Rules made thereunder and the Articles of Association of the
Company, and pursuant to the approval of the Board of Directors at its
meeting held on 11.06.2018, approval of the Company be and is hereby
accorded for the re-appointment of Mr. T.S. Ravisankar, (DIN: 00900542)
as Whole Time Director of the Company for a period of ONE year with
effect from 7th August, 2018 on a remuneration of Rs. 35,000/- (Rupees
thirty five thousand only) per month and conveyance allowance of
Rs.5,000/- (Rupees five thousand only) per month aggregating to
Rs. 40,000/- (Rupees forty thousand only) per month".

"RESOLVED FURTHER THAT subject to the approval of the shareholders

at the general meeting and further subject to the provisions of the
Companies Act, 2013, the Board of Directors be and is hereby authorized
to make such alterations/modifications, if any, from time to time, on the
remuneration/terms and conditions of the appointment of
Mr.T.S. Ravisankar, (DIN: 00900542) as they may deem fit and necessary,
in the best interest of the Company and to do all such acts and deeds as
may be necessary to give effect to this resolution".

"RESOLVED FURTHER THAT in the event of loss or inadequacy of profits

Mr. T.S. Ravisankar (DIN: 00900542) shall be entitled for the above
mentioned remuneration and conveyance allowance, which shall be the
minimum remuneration."

9. Re-Appointment of Mr. N.M. Manivannan (DIN: 00157036) as Whole

Time Director and to fix his remuneration:

5
 96th Year
1922 - 2018
To consider and, if thought fit, to pass with or without modification(s), the
following resolution as a Special Resolution:

"RESOLVED THAT pursuant to the provisions of Sections 196, 197,

Schedule V and all other applicable provisions of the Companies Act,
2013, the Rules made thereunder and the Articles of Association of the
Company, and pursuant to the approval of the Board of Directors at its
meeting held on 11.06.2018, approval of the Company be and is hereby
accorded for the re-appointment of Mr. N.M. Manivannan, (DIN: 00157036)
as Whole Time Director of the Company for a period of ONE year with
effect from 7th August, 2018 on a remuneration of Rs.35,000/- (Rupees
thirty five thousand only) per month and conveyance allowance of
Rs. 5,000/- (Rupees five thousand only) per month aggregating to Rs.
40,000/- (Rupees forty thousand only) per month".
"RESOLVED FURTHER THAT subject to the approval of the shareholders
at a general meeting and further subject to the provisions of the Companies
Act, 2013, the Board of Directors be and is hereby authorized to make
such alterations/ modifications, if any, from time to time, on the remuneration/
terms and conditions of the appointment of Mr. N.M. Manivannan,
(DIN: 00157036) as they may deem fit and necessary, in the best interest
of the Company and to do all such acts and deeds as may be necessary to
give effect to this resolution".
"RESOLVED FURTHER THAT in the event of loss or inadequacy of profits
Mr. N. M. Manivannan (DIN: 00157036) shall be entitled for the above
mentioned remuneration and conveyance allowance, which shall be the
minimum remuneration."
10. Alteration of Articles of Association of the Company
To consider and if thought fit, to pass with or without modification(s) the
following Resolution as Special Resolution:
"RESOLVED THAT pursuant to provision of Section 14 and other
applicable provisions, if any, of the Companies Act, 2013 (including any
amendments thereof re-enactment thereof) (the "Act") and subject to
approval of Shareholders and subject to such other statutory and other
approval as may be required, Article of Association of the Company be
and are hereby altered as under.

6
 96th Year
1922 - 2018
EXISTING ARTICLES
7. Any person may become a
shareholder of the Fund. A
Share may be allotted to one or
more persons jointly or Either
or Survivor on request.
22 (a) The management of the
affairs of the Fund shall vest with
the Board of Directors whose
strength shall not be less than
five and not more than nine.
They shall elect every year soon
after the Annual General
Meeting, from among
themselves, the following office
bearers: (1) Chairman (2) One
or two Whole time Director/s and
(3) One or more Legal Advisers.
Whole time Director/s shall
discharge the function of key
guardian besides the duties as
laid down in the Articles of
Association. Positions (2) and
(3) may be decided by the Board
of Directors from time to time or
as and when required. At every
Annual General Meeting one
third of the Directors, who are
longest in office, shall retire by
rotation and they shall be
eligible for re-election. No
person shall be eligible to hold
office of Director unless he
holds or acquires in his own
name on the date of
appointment/election not less
than Ten thousand Equity
Shares of Re.1/- each. Every
Director, who is an office bearer
shall, when retiring from the
position as director also vacate
his/her office as office bearer.
(A.G.M. dated 18.09.2017)
7
ARTICLES TO BE AMENDED AS
7. Any person may become a
shareholder of the Fund.
22 (a) The management of the affairs
of the Fund shall vest with the
Board of Directors whose strength
shall not be less than Five and not
more than Nine. The Company
shall have the following office
bearers: (1) Chairman (2) One or
two Whole time Director/s (3) One
or more Legal Advisers and (4)
Key Guardians to discharge the
duties as laid down in Articles of
Association, positions (2), (3) & (4)
may be decided by the Board of
Directors from time to time or as
and when required as the case
may be.
At every Annual General Meeting
one third of the Directors, who are
longest in office, shall retire by
rotation and they shall be eligible
for re-election. No person shall
be eligible to hold office of Director
unless he holds or acquires in his
own name on the date of
appointment/election not less than
Twenty Thousand Equity Shares
of Re.1/- each. Every Director,
who is an office bearer shall,
when retiring from the position as
director also vacate his/her office
as office bearer.
 96th Year
1922 - 2018
EXISTING ARTICLES
53 (iii) The surplus if any shall be
appropriated in the manner that
the Board of Directors may
further recommend and carry
forward the balance.
The dividend shall be paid on
shares that have been
outstanding and issued for the
period of atleast 6 months prior
to the date of declaration.
Dividend not drawn within 7
years from the date of
declaration shall be credited to
Investor Education and
Protection Fund, u/s 125 of the
Companies Act, 2013 subject to
any modifications or exemptions
as may be directed by the
Government from time to time.
56. The Key-guardian sub-
committee of the Fund shall
consist of Whole time Director/s
and at the Branches, it shall
consist of two Executives not
below the rank of an Officer as
authorized by the Board. Two of
the Directors other than Whole
time Director/s authorized by the
Board shall conduct a
verification of jewels in the
custody of the Head Office and
such Branch (es) as may be
decided by the Board. The
verification shall be conducted
once in three months. All bonds,
title deeds and jewels shall be
lodged in the strong safes or
boxes, which shall be secured
8
ARTICLES TO BE AMENDED AS
53 (iii) The surplus if any shall be
appropriated in the manner that
the Board of Directors may
further recommend and carry
forward the balance.
Any Dividend declared shall be
paid on shares held as on 31st
March every year.
Dividend not drawn within 7
years from the date of declaration
shall be credited to Investor
Education and Protection Fund,
u/s 125 of the Companies Act,
2013 subject to any modifications
or exemptions as may be
directed by the Government from
time to time.
56. The Key-guardian sub-committee
of the Fund shall consist of not
more than Three Directors
including Whole Time Director/s
and at the Branches, it shall
consist of two Executives not
below the rank of an Officer as
authorized by the Board. All
bonds, title deeds and jewels
shall be lodged in the strong safes
or boxes, which shall be secured
by not less than three/ two locks
as the case may be. Each Key
Guardian Director/Whole Time
Director/s shall hold the key or
keys of one lock of such safes or
boxes. With respect to Branches,
authorized officials shall hold the
keys to the locks of such a safe or
 96th Year
1922 - 2018
EXISTING ARTICLES ARTICLES TO BE AMENDED AS

by not less than three/ two locks boxes. The safes or boxes shall
as the case may be. Each whole be kept in a safe place in the office
time director shall hold the key building of the Fund and shall be
or keys of one lock of such safes opened every working day. If any
or boxes. With respect to document is required to be taken
Branches, authorized officials for reference of a share-holder in
shall hold the keys to the locks the key-guardian's meeting, a fee
of such a safe or boxes. The shall be charged from the
safes or boxes shall be kept in a Shareholders as decided by the
safe place in the office building Board of Directors from time to
of the Fund and shall be opened time.
every working day. In the case
of head office, if at any such
meeting of the key guardians, a
key-guardian is unable to attend,
it shall be open to him on his own
responsibility to depute any
Director to discharge his duties
at such meeting and such
Director shall be eligible for
conveyance as may be fixed by
the Board from time to time. If any
document is required to be taken
for reference of a share-holder
in the key-guardian's meeting, a
fee shall be charged as decided
by the Board of Directors from
time to time.(AGM dated
18.09.2017)

70. Interest payable on loan shall
be paid monthly on or before the
last working day of the month for
which the interest is due.
Interest shall be charged for the
Calendar month in which the
loan is taken, and also for the
Calendar month in which the
loan is repaid provided
70. Interest payable on all loans other
than Property Loan shall be paid
monthly on or before the last
working day of the month for which
the interest is due. Interest shall
be charged for the Calendar
month in which the loan is taken,
and for the Calendar month in
which the loan is repaid. In default

9
 96th Year
1922 - 2018
EXISTING ARTICLES ARTICLES TO BE AMENDED AS

however that where the loan is of payment of interest as provided

repaid within 30 days from the for, default interest shall be
date on which it is availed of, charged at the rate as may be
interest shall be charged as for fixed by the Board of Directors
one month only. In default of from time to time. For the purpose
payment of interest as provided of this rule fraction of a rupee
for, default interest shall be amounting to fifty paise and more
charged at 21% Per annum or shall be reckoned as one rupee.
such other rate as may be fixed
by the Board of Directors from
time to time. For the purpose of
this rule fraction of a rupee
amounting to 50 paise and more
shall be reckoned as one rupee.

FURTHER RESOLVED THAT for the purpose of giving effect to this

Resolution, Mr. T.S. Ravisankar (DIN: 00900542), Whole Time
Director and in his absence Mr. N.M. Manivannan (DIN: 00157036)
Whole Time Director of the Company be and is hereby authorized, on
behalf of the Company, to do all acts, deeds, matters and things as
deem necessary, proper or desirable and to sign and execute all
necessary documents, applications and returns for the purpose of
giving effect to the aforesaid Resolution along with filing of necessary
E-forms with the Registrar of Companies, Tamil Nadu."

By Order of the Board

T.S. RAVISANKAR
Place: Chennai - 600 084. Whole Time Director
DIN: 00900542
Date: 23.06.2018

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 96th Year
1922 - 2018
NOTE :

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT

A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A
MEMBER OF THE FUND. IF IT IS DESIRED TO USE A PROXY, THE INSTRUMENT
APPOINTING THE PROXY, SHOULD BE COMPLETED IN ACCORDANCE WITH SECTION
105(2) OF THE COMPANIES ACT 2013 AND DELIVERED AT THE REGISTERED OFFICE
OF THE COMPANY AT LEAST 48 HOURS BEFORE THE TIME FIXED FOR THE MEETING.
PROXY FORMS CAN BE HAD FROM THE REGISTERED OFFICE OF THE COMPANY.

2. Share holders desiring to have details of information at the Annual General Meeting regarding
any matter in the report or any item in the statements are informed to send their request to
Whole Time Director/Manager of the company seven days prior to the date of the meeting.

3. Shareholders, entitled to attend the Annual General Meeting are requested to bring their
respective share certificate along with their photo ID.

4. Members are requested to intimate the office of any change in the Door numbers and their
addresses with Pin code numbers along with ID proof and address proof.

5. Members / Depositors who have not claimed any amount due to them if any, on the maturity
dates are requested to claim the amount as otherwise the unclaimed amounts have to be
remitted to the Investor Education and Protection Fund of Government of India after 7 years
from the date of maturity of the said Deposits, as required by the provisions of the Companies
Act, 2013 and rules made thereunder.

6. Register e-mail address

To contribute towards greener environment and to receive all documents, notices, including
Annual reports and other communications of the Company, members are requested to register
their e-mail addresses with the Company.

7. Intimate mobile number

Members are requested to intimate their mobile numbers and also changes therein, if any, to
receive communications on deposit renewals and other information from the Company.

8. Members who have been allotted shares up to closing hours of 23.06.2018 are entitled to vote
in the Annual General Meeting.

9. a) As per Ministry of Corporate Affairs Notification No. GSR.908(E) dated 23.09.2016, Nidhi
Companies are exempt from providing e-voting facility.

b) As per Ministry of Corporate Affairs Notification No. GSR.465(E) dated 05.06.2015,

Shareholders who hold shares of more than one thousand rupees in face value or more
than 1% of the total paid-up share capital of the Company whichever is less are eligible
to get Notice of AGM and Annual Report individually.

10. The relative explanatory statement to notice pursuant to Section 102 of the Companies Act,
2013 in respect of the special business as set out in the notice is annexed hereto.

11
 96th Year
1922 - 2018
EXPLANATORY STATEMENT PURSUANT TO SECTION 102
OF THE COMPANIES ACT, 2013

In terms of Section 102 of the Companies Act, 2013, the following

explanatory statement sets out all the material facts relating to
the Special Business stated under Item No.7, 8, 9 and 10 of the
accompanying Notice.

Item No.7
Dr. E. Sakthi Aisvarya (DIN: 07267018) born on 02.06.1992 who was
appointed as an Additional Director of the Company at the Meeting of the
Board of Directors of the Company held on 29.01.2018 and who holds
Office as such with effect from 30.01.2018 upto the end of this Annual
General Meeting pursuant to the provisions of Section 161 of the Companies
Act, 2013 and in respect of whom the Nomination and Remuneration
Committee has approved and recommended the appointment of
Dr. E. Sakthi Aisvarya (DIN 07267018) who is also member of the Fund
and possesses minimum qualification shares, as a candidate for the office
of the Director of the Company who has also consented, if appointed, to act
as a Director of the Company, be and is hereby appointed as the Director of
the Company who is liable to retire by rotation.
The Board recommends the passing of the Ordinary Resolution as set out
in the Item No. 7 of the Notice for the appointment of Dr. E. Sakthi Aisvarya
(DIN: 07267018) as a Director, liable to retire by rotation.
MEMORANDUM OF INTEREST:
Except Dr. E. Sakthi Aisvarya (DIN: 07267018) being the appointee, none
of her relatives, the other Directors of the Company or their relatives or any
Key Managerial Personnel or their relatives is concerned or interested in
the resolution.
Item No.8
Taking into consideration the volume of amendments issued under the
Companies Act, 2013 and other laws and the nature of operations of your
Company and the volume of business, it has been thought fit & proper to
have atleast two Directors who have the requisite knowledge of various
relevant enactments relating to Nidhi Companies and Corporate Laws on

12
 96th Year
1922 - 2018
whole time basis to take care of the administrative and other day to day
operations/activities of your Company's Head office at Purasawalkam and
also at its branches.
Mr. T. S. Ravisankar (DIN 00900542) who has got vast experience of over
49 years in Nidhi Companies, is a suitable person for re-appointment as
Whole time Director of your Company to take care of the administrative and
other day to day operations/activities of your Company's Head Office at
Purasawalkam and also at its branches.
The appointment and terms of remuneration of Mr. T. S. Ravisankar
(DIN 00900542) and if approved by the Members, will be effective from 7th
day of August, 2018 and will be for a period of one year.
The Nomination and Remuneration Committee and the Board of Directors
at their meeting held on 11th June, 2018 have approved the appointment
and terms of remuneration of Mr. T.S. Ravisankar (DIN 00900542) as Whole
time Director of the company, which is subject to approval by members in
general meeting.
Subject to the provisions of the Companies Act, 2013 and the Nidhi Rules,
2014, the remuneration as stated in the resolution above shall be the
minimum remuneration, whether there are profits or not in any financial
year. The Whole time Director shall not be eligible for any sitting fees or any
other perquisites during his tenure.
The Board recommends the resolution as a Special Resolution for approval
of the Shareholders of the Company.
MEMORANDUM OF INTEREST:
Mr. T. S. Ravisankar (DIN 00900542) being the appointee, may be deemed
to be interested in the proposed resolution, as it concerns his re-appointment.
None of their relatives, Key Managerial Personnel or their relatives or other
directors are interested or concerned in the resolution.
Item No.9
Taking into consideration the increased activities of your Company and the
volume of business, it has been thought fit & proper to have atleast two
experienced Directors on whole time basis to take care of the administrative
and other day to day operations/activities of your Company's head office at
Purasawakum and also at its branches.

13
 96th Year
1922 - 2018
Considering the above, it has been thought fit by the Board of Directors to
re-appoint Mr. N. M. Manivannan (DIN: 00157036) who has got rich
experience in the activities of Nidhi Companies as Whole time Director of
your Company to take care of the administrative and other day to day
operations/activities of your Company's Head Office at Purasawalkam and
also at its branches.
Mr. N. M. Manivannan (DIN: 00157036) has got more than 38 years of
working experience in various capacities in Nidhi Companies. Since he
carries with him a very rich experience in managing and administering
Nidhi Companies, your Directors are of the opinion that he may be
considered for the position of Whole Time Director.
The appointment and terms of remuneration of Mr. N. M. Manivannan
(DIN: 00157036) and if approved by the Members, will be effective from 7th
day of August, 2018 and will be for a period of one year.
The Nomination and Remuneration Committee and the Board of Directors
at their meetings held on 11th June, 2018 have approved the re-appointment
and terms of remuneration of Mr. N. M. Manivannan (DIN: 00157036) as
Whole time Director of the company, which is subject to approval by members
in general meeting.
Subject to the provisions of the Companies Act, 2013 and the Nidhi Rules,
2014, the remuneration as stated in the resolution above shall be the
minimum remuneration, whether there are profits or not in any financial
year. The Whole time Director shall not be eligible for any sitting fees or any
other perquisites during his tenure.
The Board recommends the resolution as a Special Resolution for approval
of the Shareholders of the Company.
MEMORANDUM OF INTEREST:
Mr. N. M. Manivannan (DIN: 00157036) being the appointee, may be
deemed to be interested in the proposed resolutions, as it concerns his
appointment. None of their relatives, Key Managerial Personnel or their
relatives or other directors are interested or concerned is concerned or
interested in the resolution.
As required under clause (IV) of Section II of Part II of Schedule V of the
Companies Act, 2013, the requisite information is furnished below:

14
 96th Year
1922 - 2018
I. General Information :

1 Nature of industry: The company is a Nidhi Company

under Section 406 of the Companies
Act, 2013.

2 Date or expected date of 11-09-1922

commencement of commercial
production.

3 In case of new companies, Not Applicable

expected date of commence-
ment of activities as per project
approved by financial
institutions appearing in the
prospectus.

4. Financial performance based on given indicators

Year ended

Details 31.03.2018 31.03.2017 31.03.2016

(in Rs) (in Rs) (in Rs)

Total Income 11,92,48,257 12,62,50,059 12,37,69,590

Total Expenses 11,68,46,697 12,44,03,790 12,27,57,988

Profit before Tax 24,01,560 18,46,269 10,11,602

Balance carried over in

Profit & Loss Account
(after Appropriation) 6,23,567 6,55,684 3,98,530

5. Foreign investments or collaborations, if any. Nil

15
 96th Year
1922 - 2018
I. Information about the appointee(s) :

T.S. Ravisankar N.M. Manivannan

Details (DIN 00900542) (DIN: 00157036)
Date of Birth: 20.06.1949 Date of Birth: 11.06.1959
Background details 49 years of experience 38 years of experience
in the Company. Board in Nidhi Company.
member since 2011. Board member since
2012
Past remuneration Rs.3,12,258/- Rs.3,12,258/-

Recognition or Awards Nil Nil

Job profile and his The vast experience of Mr. N.M Manivannan
suitability Mr. T.S. Ravisankar (DIN: 00157036) has
(DIN 00900542) will rich and varied experi
be useful and required ence in administration
on a Whole Time basis of Nidhi Company. His
for efficient working of experi ence would be
the company at the utilized for adminis
head office and tration of the Nidhi
management of the which also has
branches. branches.

Remuneration Salary: Rs. 35,000/- per Salary: Rs. 35,000/- per

proposed. month Conveyance month Conveyance
allowance: Rs. 5000/- allowance: Rs. 5000/-
per month. per month.

Comparative remun Nidhi Companies are a Nidhi Companies are a

eration profile with special class of special class of compa
respect to industry, size companies spread nies spread over
of the company, profile over various parts of various parts of
of the position and Southern India. They Southern India. They
person (in case of are small, medium or are small, medium or
expatriates the relevant large in size and the large in size and the
details would be with remuneration profile remuneration profile
respect to the country of varies depending on varies depending on
his origin). the size of the Nidhi the size of the Nidhi
Company. Compared Company. Compared
to Nidhi Companies of to Nidhi Companies of
similar size, the pro similar size, the
posed remuneration is proposed remune
nominal. ration is nominal.

16
 96th Year
1922 - 2018

T.S. Ravisankar N.M. Manivannan

Details (DIN 00900542) (DIN: 00157036)
Date of Birth: 20.06.1949 Date of Birth: 11.06.1959
Pecuniary relationship NIL, except to the extent NIL, except to the extent
directly or indirectly of remuneration and of remuneration and
with the company, or 4,82,513 Equity Shares 5,02,732 Equity Shares
relationship with the held by him. held by him.
managerial personnel, No relationship with No relationship with
if any. any managerial any managerial
personnel. personnel.

II. OTHER INFORMATION :

Reasons of loss or The company has reported Net profit after

inadequate profits.
Tax of Rs. 17,64,088/- Though the profits
have increased compared to previous year,
the company could not achieve higher level
of profits due to structural changes in policy,
increased competition from new players,
delay in settlement of court cases and
tightness in the money market.

Steps taken or proposed to Reduction in cost of operations, geographical

be taken for improvement
Expected increase in
productivity and profits in
measurable terms
expansion and aggressive marketing efforts.
Considering the nature of the industry, it is
difficult to quantify the proposed improve
ment in measurable terms. It is expected that
the level of profits will improve in the coming
years.

III. DISCLOSURES :

The provisions of Corporate Governance are not applicable to the

company and hence the prescribed disclosures are not furnished.

DOCUMENTS FOR INSPECTION :

Copies of the consent letter to act as Directors provided by the said

Mr. T.S. Ravisankar and Mr. N. M. Manivannan would be available for
inspection by the Members upto the close of the Meeting at the
Registered Office of the Company.

17
 96th Year
1922 - 2018
Item No.10

Due to practical reasons and administrative convenience amendments

to Article 7, 22(a), 53(iii), 56 & 70 of the Articles of Association of the
Company are proposed as mentioned in the Special Resolution.

None of the Directors are interested in the above Resolution. Your

directors recommend the proposed Special Resolution for your
approval.

A copy of the existing Memorandum and Articles of Association is

available for inspection by any member, if so desired, at the Registered
Office of the Company between 10 A.M. and 12 Noon on any working
day by giving prior Notice.

By Order of the Board

for THE PURASAWAKUM PERMANENT FUND LIMITED

T.S. RAVISANKAR
Whole Time Director
DIN: 00900542

Place: Chennai - 600 084.

Date: 23.06.2018.

18
 96th Year
1922 - 2018 CIN : U65992TN1922PLC001974

The Purasawakum
Permanent FFund
und Limited
(Established - 1922)
Regd. Office : "APPADURAI BUILDINGS" No.174 & 177,
PROSPERITY Vellala Street, Purasawalkam, Chennai - 600 084.
SERVICE Phone : 044 - 2642 3203, 2642 1212
SECURITY e-mail : theppf@gmail.com Web : www.ppfnidhi.com

DIRECTORS' REPORT

Your Directors hereby present the 96th Annual Report on the working of
the Fund along with the Audited Balance Sheet as at 31st March 2018, Profit
and Loss Account and Cash flow Statement for the year ended on that date.
1) Salient features of the working of the Fund during the year 2017-18 are
listed below:
i) The Deposits for the year 2017-18 stood at Rs.7406.35 lacs as against
Rs. 7482.33 lacs in the previous year.
ii) Business under Jewel loan portfolio faced a setback due to fluctuating
gold rates and dip in demand from customers. The position as at
31.03.2018, including the business of branches was Rs.1452.35 lacs
as against Rs.1650.81 lacs in the previous year (decline being 198.46
lacs).
iii) Establishment expenses stood at Rs.308.61 lacs for the year
2017-18 as against Rs. 326.30 lacs in the previous year.
iv) During the year under report, gross recoveries in TSL mortgage loan
accounts stood at Rs.182.63 lacs (previous year Rs. 274.42 lacs).
Further 25 accounts got settled for Rs.71.15 lacs. In the case of
chronic accounts before the Court, negotiated settlements are being
attempted to expedite elimination of NPA chronic default accounts.
v) The Company during the year under report, has provided a sum of
Rs.76,28,439/- towards provisioning to cover shortfall in security value,
in respect of mortgage loan accounts (5 borrowers) as required under
MCA Notification No.GSR.258(E) dated 31.03.2014 for loans granted
prior to 31.03.2002 as stipulated in the Notification.
vi) Further, as per the above Notification, provisioning to be made for
mortgage loans granted on or after 01.04.2002 and outstanding as on
31.03.2018 is Rs.1,22,121/- and the value of the properties
(4 properties) is Rs.2,74,30,066/-. Since the value of the property is
more, No provisioning for NPA is made for this category.

19
 96th Year
1922 - 2018
vii) During the year the Company mobilized additional Equity Capital for
Rs.89,78,442/- through Rights Issue - 2018 on 1:1 ratio basis to improve
the NOF position and the Company achieved the 1:20 NOF norms
and presently the ratio is 1:18.15. We take the opportunity to thank the
shareholders who made this possible, by their contribution, reposing
confidence in the management.
viii) The working of the Fund had resulted in a net profit of Rs.17,64,088/-
for the year under report after making required provisioning for NPA
accounts (as per Notification (as in Para (v) above) and provision for
Income Tax Rs.5,03,627/-) as shown below.
WORKING RESULTS :
Figures in Rs.
Particulars Current Year Previous Year
Total Income 11,92,48,257 12,62,50,059
Total Expenses 11,68,46,697 12,44,03,790
Profit Before Tax 24,01,560 18,46,269
(Less): Provision for Taxation (5,03,627) (5,95,000)
(Less)/Add : Deferred Tax Liability/Asset (1,33,845) 5,885
Profit after Tax 17,64,088 12,57,154
Add: Surplus in Profit & Loss A/c 6,55,684 3,98,530
Balance for Appropriation 24,19,772 16,55,684
(Less): Transfer to General Reserve 8,98,103 (10,00,000)
(Less): Proposed dividend including dividend tax 8,98,103 -
Balance carried over in
Profit & Loss A/c. 6,23,567 6,55,684

ix) OCC Limit for Rs.500 lacs against Receivables of the Company
obtained from Lakshmi Vilas Bank is being judiciously utilized. As on
31.03.2018 the Company has utilized the OCC limit upto
Rs.4,88,92,796/-. This advance is further collaterally secured by
Deposit of Title Deed of Land and Building owned by the Company
duly registered at SRO, Purasawalkam, Chennai - 600 007. Necessary
charges were created as per the provisions of the Companies Act,
2013 and the charges still continue.

20
 96th Year
1922 - 2018
2) Performance at a glance :
A) Deposits
The total of Fixed Deposits, Re-Investment Deposits, Savings
Deposits and Recurring Deposit as at 31.03.2018 amounted to
Rs.7406.35 lacs as against Rs. 7482.33 lacs in the previous year.
Being a Nidhi Company, disclosure relating to Deposits accepted
by the Company under Rule 8(3)(5)(v) of Companies (Accounts)
Rules 2014 is not applicable to our Company.
B) Loans
The total loans on Deposits, Jewels and immovable properties as
at 31.03.2018 amounted to Rs.7281.50 lacs as against Rs. 6971.59
lacs in the previous year.
C) Sanctions:
1) Property Loans: During the year 9 new loans were sanctioned
amounting to Rs.61.00 lacs as against Rs.70.50 lacs for 14 loan
accounts in the previous year.
2) Sanctions of Jewel Loans including silver articles amounted to
Rs.2038.76 lacs covering 3518 accounts during 2017-18 as against
Rs.2351.66 lacs covering 3859 accounts during 2016-17.
3) A comparative position of arrears in property loan for the financial
year ended 31.03.2018 and 31.03.2017 is given below :
Rs. in Lacs
2017-2018 2016 - 2017
Financial Year % to % Amount % to
No. % Amount Total No. Total
a) Prompt 53 50.00 0.08 0.00 59 47.97 0.19 0.00
b) Default 22 22.00 18.07 0.62 34 27.64 27.93 0.62
Term Closed:
c) Since settled and
on schedule
d) Others 32 30.00 5046.52 93.05 30 24.39 4214.32 93.05
Total arrears
(a+b+c+d) 5064.67 93.67 4242.44 93.67
Loan Balance 228.83 6.33 286.83 6.33
Over all 107 100.00 5293.50 100.00 123 100 4529.27 100.00
Efforts to get long pending default accounts settled through negotiations
will continue and similarly Court cases also will be closely followed up for
getting early decisions.
4) Branches:
Branches of the Fund opened in Madipakkam and Peravallur are engaged
in mobilizing new business for the Fund particularly in Jewel Loan category.
During the year under report, their performance is good as could be seen
from the chart given below:

21
 96th Year
1922 - 2018
Deposit as on Jewel Loan as
Branch 31.03.2018 on 31.03.2018 Remarks
Rs. Rs.
Madipakkam
No. of A/c's 453 329 These figures
Amount : 3,66,01,261 1,54,76,450 were merged
with Head
Peravallur Office business
No. of A/c's 819 361 figures.
Amount : 5,49,82,436 1,78,50,057

5) Dividend:
Your Board recommends a payment of Dividend at 5% on Equity Share
Capital for the year on share value held as on 31.03.2018 (5% on
Rs.1,79,62,066/- works out to Rs.8,98,103/-). An equivalent amount is
also transferred to General Reserve as per the Nidhi Rules 2014.
6) Compliance to MCA stipulation regarding NOF to Fixed Deposits :
Ministry of Corporate Affairs, Notification No.GSR 258(E) dated 31.03.2014
had stipulated inter alia, that Deposits accepted by the Nidhi Companies
shall not be more than twenty (20) times the Net Owned Fund (NOF) of
the Company. Time for compliance to this regulation has been revised
and for your Company the date set is 31.03.2015. The Company
approached the Regional Director, Southern Region, Ministry of Corporate
Affairs, Chennai seeking extension of time to comply with NOF to Deposits
ratio of 1:20. The Regional Director was kind enough to consider and
grant extension of time up to 31st March 2017. The Company has applied
to the Regional Director (SR) Chennai, seeking further extension of time
upto 31st March 2020, but not got approval. The Company has received
a Notice dated 20.09.2017 from the Assistant Registrar of Companies,
Chennai asking our comments/reply and our Company has sent a reply in
its letter dated 27.09.2017 stating that the Company has filed compounding
application. Further in order to comply with the statutory conditions and
requirements, the Board of Directors decided to achieve the 1:20 ratio by
raising additional Capital by way of Rights Issue on 1:1 Ratio basis and
mobilized an additional Equity Share Capital of Rs.89,78,442/- and thereby
complied with the 1:20 Norms as on 31.03.2018. In addition, there is
increase in Equity Share Capital in the normal course of business to the
extent of Rs.69,600/-.

22
 96th Year
1922 - 2018
As far as your company is concerned the position of NOF to Deposits, at
different years, is as given below:

Net Owned Deposit

Year Funds (all types) Ratio
Rs. in Lacs Rs. in Lacs
2000-2001 132.70 5388.67 1:40.60
2001-2002 140.44 5124.89 1:36.49
2002-2003 137.89 4587.39 1:33.26
2003-2004 143.25 4286.37 1:29.92
2004-2005 156.55 3967.29 1:25.34
2005-2006 160.03 3783.83 1:23.64
2006-2007 170.13 3923.45 1:23.06
2007-2008 174.23 4014.49 1:23.04
2008-2009 165.40 4011.86 1:24.26
2009-2010 169.57 4448.49 1:26.23
2010-2011 197.57 4855.50 1:24.57
2011-2012 239.14 5480.56 1:22.92
2012-2013 271.33 5769.62 1:21.26
2013-2014 279.13 5707.19 1:20.45
2014-2015 287.48 6229.41 1:21.67
2015-2016 295.47 7075.85 1:23.95
2016-2017 308.90 7482.33 1:24.22
2017-2018 408.04 7406.35 1:18.15
7) Directors :
We regret to inform you that the Director Sri N.B. Kothandaraman, M.A.,
F.C.A. passed away on 13.03.2018, who was associated with our Company
for more than 15 years as Director, Adviser and President. The Board
appreciates the remarkable service rendered by him during his tenure.
a) The Directors Thiru N.M. MANIVANNAN, (DIN: 00157036),
Thiru V. RAGUPATHI (DIN: 00393444) and Thiru T.S. RAVISANKAR,
(DIN: 00900542) being longest in office, retire by rotation at this Annual
General Meeting and offer themselves for re-appointment.
b) Dr. E. Sakthi Aisvarya born on 02.06.1992 (DIN: 07267018) who
was appointed as an Additional Director of the Company at the Meeting
of the Board of Directors of the Company held on 29.01.2018 and
who holds Office as such with effect from 30.01.2018 upto the
conclusion of this Annual General Meeting pursuant to the provisions

23
 96th Year
1922 - 2018
of Section 161 of the Companies Act, 2013 and in respect of whom the
Nomination & Remuneration Committee has approved and
recommended the appointment of Dr. E. Sakthi Aisvarya (DIN
07267018) who is also member of the Fund and possesses minimum
qualification shares, as a candidate for the office of the Director of the
Company who has also consented, if appointed, to act as a Director of
the Company, and necessary resolution have been placed before the
members for their consideration. The Board of Directors has
recommended her appointment.
c) The Board has recommended re-appointment of Mr. T.S. Ravisankar
(DIN 00900542) and Mr. N.M. Manivannan, (DIN 00157036) as Whole
Time Directors of the Company with effect from 07.08.2018 for a period
of one year, subject to approval of the shareholders.
8) Meeting of the Board :
The Board met 20 times during the financial year. The intervening gap
between any two meetings was within the period prescribed by the
Companies Act 2013.
9) Reserves:
It is proposed to carry a sum of Rs. 8,98,103/- to Reserves and Surplus
thus increasing the Reserves and Surplus to Rs. 2,28,42,070/-.
10) Compliance Certificate:
a) Your Company is exempted under the Companies Act of 2013 from
the requirement of seeking a Secretarial Compliance Certificate from
a Company Secretary in practice.
b) Compliance certificate dated 23.06.2018 for the Financial Year
2017-18 received from Statutory Auditor with regard to compliance by
the company to the provisions of Nidhi Rules & the Notification(s)
issued by MCA from time to time, attached herewith forms part of this
Report.
11) Auditors:
M/s. P.T. Ponnaiah & Co, Firm Registration No.002669-S, Chartered
Accountants, Statutory Auditors of the Company retires at the end of the
AGM and are eligible for re-appointment. Their continuance of appointment
for a further period of 5 years and payment of remuneration are to be
confirmed and approved at this AGM. Your Company has received a
certificate from the Auditors stating that the appointment if made will be
within the limits prescribed by Section 141 of the Companies Act, 2013.
12) In the year under review, deposits matured up to 31st March 2018 and
remaining unpaid is included under unsecured Loans as the same may
be renewed or refunded in the subsequent months. The Company has
taken necessary steps for repayment/renewal of these deposits. Out of

24
 96th Year
1922 - 2018
Rs.1,92,71,914/- representing 515 accounts and a sum of
Rs.61,64,001/- representing 121 accounts have since been renewed or
repaid up to 15.06.2018.
13) a) During the year under report, a sum of Rs.98,643/- was remitted to
Investor Education and Protection Fund as per Sec.125 of the
Companies Act, 2013 as detailed here under:
(i) Matured and unclaimed deposits Rs. 85,400.00
(ii) Interest Rs. 13,243.00
TOTAL Rs. 98,643.00
b) However, a sum of Rs.20,141.65 as on 31.03.2018 is liable under
Investor Education and Protection Fund as per Sec.125 of the
Companies Act, 2013 as detailed here under:
Matured and unclaimed deposits Rs. 20,000.00
Interest Rs. 141.65
TOTAL Rs. 20,141.65
The above balance of Two Deposits with interest of Rs.20,141.65
relating to one Depositor was not remitted to Investor Education and
Protection Fund, due to legal claims and a pending case in the High
Court of Madras.
c) Further the provisions of section 125(2) of the Companies Act 2013
do not apply, as there was no unpaid dividend pending for more than
7 years.
14) Since the Company is not a manufacturing Company, there is no matter to
report under the provisions of Section 134(3)(m) of the Companies Act,
2013 read with Rule 8 of Companies (Accounts) Rules,2014 with regard
to conservation of energy and technology absorption and there was no
foreign exchange inflow or outflow.
15) The Company has Risk Management Policy to deal with elements of risk
threatening the Company's existence.
16) The Provisions of Sec.135 relating to Corporate Social Responsibility are
not applicable to the Company.
17) Committees Constituted:
i) The provisions of section 149 of the Companies Act, 2013 pertaining
to the appointment of independent Directors do not apply to our
Company as we are not a listed Company.

25
 96th Year
1922 - 2018
ii) As per Sec.177 your Company has constituted an Audit Committee
consisting of three members namely Sri A.G. Ravishankar,
Sri V. Raghupathi and Sri P.P. Dhandapani and there were four
meetings during the Financial Year.
iii) As per Section 178(1) your Company has constituted a Nomination
and Remuneration Committee with respect to appointment of Directors
and other related matters.
iv) As per section 178(5) of the Companies Act 2013, your Company has
constituted a Stakeholders Relationship Committee to review and
address the grievances of the shareholders.
v) The Company has complied with the provisions of Section 177(9) of
the Companies Act, 2013 relating to Vigil mechanism for Directors
and Employees.
18) There were no loans, guarantees or investments made by the Company
under section 186 of the Companies Act, 2013 during the year under
review and hence the said provisions are not applicable.
19) There was no contract or arrangements made with related parties as
defined under section 188 of the Companies Act, 2013 during the year
under review except appointment of Whole Time Directors.
20) Directors Responsibility Statement :-
In compliance with the provisions of Section 134(3)(c) of the Companies
Act, 2013 your Directors hereby confirm that
(i) in preparing the Annual Accounts for the year ended 31st March 2018
all the applicable accounting standards have been followed and
there are no material departures.
(ii) accounting policies were adopted consistently and judgments and
estimates that are reasonable and prudent were made so as to give a
true and fair view of the state of affairs of the Company as at 31st
March 2018 and of the profit and loss of the company for the year
ended on that date.
(iii) proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the
Companies Act 2013 for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities have
been taken.

26
 96th Year
1922 - 2018
(iv) the Annual Accounts have been prepared on a going concern
basis.

(v) the Directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.

21) General:

i) The reports of the Commissioners on the inspection of the immovable

properties and the examination of the Documents, Jewels & Pronotes,
expressing their satisfaction, have been received.

ii) None of the employees of the Company come under the purview of
section 197(12) of the Companies Act 2013 read with Rule 5(2) of the
Companies (Appointment and Remuneration of Managerial
Personnel) Rules 2014.

iii) During the year (2017-18) and upto the date of this Report no events
had occurred which will have a material bearing on the working of the
Fund.

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

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

vi) No Bonus shares were issued during the year under review.

22) Reply to Auditor's remarks at Para (m), (s), (l) and (f) of Note No.21

Note No.21(m)

a) During the year under report, a sum of Rs.98,643/- was remitted to Investor
Education and Protection Fund as per Sec.125 of the Companies Act,
2013 as detailed here under:

Matured and unclaimed deposits Rs. 85,400.00

Interest Rs. 13,243.00

TOTAL Rs. 98,643.00

27
 96th Year
1922 - 2018
b) However, a sum of Rs.20,141.65/- as on 31.03.2017 is liable under Investor
Education and Protection Fund as per Sec.125 of the Companies Act,
2013 as detailed here under:
Matured and unclaimed deposits Rs. 20,000.00
Interest Rs. 141.65
TOTAL Rs. 20,141.65
The above balance of Two Deposits with interest of Rs.20,141.65 relating
to one Depositor was not remitted to Investor Education and Protection
Fund, due to legal claims and a pending case in the High Court of
Madras.
c) Further the provisions of section 125(2) of the Companies Act 2013 do not
apply, as there was no unpaid dividend pending for more than 7 years
Note No.21(s) - D.V. Balasubramaiam : Rs.3,53,100/-
The Fund has filed E.P. at City Civil Court, Chennai and the same has
been numbered as 3141/2005 and the notice has been sent to
D.V. Balasubramanian. The said D.V. Balasubramanian has entered
appearance through his advocate in the E.P.No.3141/2005 and then he
has filed CRP No.1699 of 2006 and obtained interim stay of all further
proceedings in the above EP. The Respondent Counsel has filed Xerox
copy of order obtained by him in M.P.No.1 of 2006 in CRP No.1699 of
2006. Now, CRP No.1699 of 2006 was dismissed by Honorable High
Court by order dated 08.10.2013. In E.P. No.3141 of 2005 the Hon'ble
Court has ordered the arrest, judgment debtor Mr. D.V. Balasubramanian.
Steps are being taken for his arrest.
Note No.21(l) and (f)
Nidhi Rules issued in April 2014 under the new provisions of the Companies
Act, 2013 indicated that the balance provisioning to be made in the case
of TSL NPA Accounts are to be completed by 31.03.2017.
Accordingly, in respect of 5 TSL mortgage loan accounts, (5 borrowers)
the fair market value of the security was short by Rs.2,66,94,111/- as
against the loan amounts due and therefore provisioning to be made for
the year 2017-18 is as shown below:
Provisions, Contingent liabilities and Contingent Assets:
(a) As per the Notification of the Ministry of the Corporate Affairs vide GSR
No.258(E) dated 31.03.2014 and Nidhi Rules, 2014, the provision on
Non-Performing Assets in respect of Mortgage Loans disbursed by the
Company (28 Loans prior to 31.03.2002) and outstanding as on 31.03.2018
is furnished below:

28
 96th Year
1922 - 2018

Breakup Details for 28 mortgage loan accounts (25 Borrowers) as on

31.03.2018 amounting to Rs.50,44,98,363/- out of overall loans under
dispute/court proceedings:
Particulars 23 Accounts 5 Accounts
(Rs.) (Rs.)

Total outstanding in respect of 36,70,04,749 13,74,93,614

mortgage loans
The Fair market value of the
56,30,21,126 11,07,99,503
properties as valued and certified by
Registered Valuer
Shortfall in Security NIL 2,66,94,111

Less : Provision already made upto 1,90,65,672

31.03.2017
Balance to be provided 76,28,439

Provision made for the current year: 76,28,439

(b) Further, as per the above said Notification, provisioning to be made for
mortgage loans granted on or after 01.04.2002 and outstanding as on
31.03.2018 is Rs.1,22,121/- and the value of the property is
Rs.2,74,30,066/-. Since the value of the property is more, no provision for
NPA is required to be made.

(c) In respect of 11 chronic default accounts settled upto 2016-17 with interest
concession left an unrealized default interest of Rs. 6,64,89,557/- and the
same was reduced to Rs.5,69,41,930/- being carried over to subsequent
years to be adjusted against Profits. This is shown as unsecured loan
under Note No. 13.

The company has not recognized any contingent liability or contingent

asset.

23) We give below a status report on the cases pending before the Courts
at Chennai :

a. First Appeal in A.S. No.357 of 2014 filed by P.A. Natraj & Others against
the final decree passed in O.S. No.9952 of 2010 is pending before Hon'ble
High Court of Madras.

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 96th Year
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b. i) O.S. No.6192/2011 filed by M. Erajasimhan against the Purasawakum
Permanent Fund Limited and others, is pending on the file of the
Learned XVI Asst. Judge, City Civil Court, Chennai. In the said matter
I.A. No.12898 of 2011 was filed for an injunction restraining the
defendants from convening the AGM dated 11.08.2011 and the
Learned Judge passed an order, to convene the AGM on 11.08.2011
and not to pass any resolution in the said AGM. Against the said
Order, CRP No.2988 of 2011 was preferred before the Hon'ble High
Court which was pleased to suspend the Order of the Learned
XVI Asst. Judge, City Civil Court, Chennai. Counter has been filed in
the said I.A. No.12898 of 2011 and the matter is pending.

ii) CRP No.2988 of 2011, against I.A. No.12898 of 2011 is pending on

the file of the Hon'ble High Court, Madras.

c. Writ Petition No.5715 of 2012 filed by the Company against the order of
the Labour Court, Chennai with regard to the payment of bonus is pending
for final orders of the High Court of Madras.

d. In the civil suit 596 of 2013 filed against Mr. U. Bhaskaran and Mrs.
Premalatha for recovery of a sum of Rs.26 lacs, the current position is that
beyond filing Vakalat on behalf of defendants, no written statement has
been filed till the date of this report. The matter is pending before the
Hon'ble High Court of Madras. Ex-parte evidence is recorded on our side
since the defendants were not present. Honorable Court was pleased to
allow the Application No.3048 & 309 of 2017 in C.S. No.596 of 2013 both
the application adjourned to 26.07.2017 for framing the issues.

24) Our thanks are due to all the share holders and Bankers for continued
co-operation and goodwill and also to the officials of Ministry of Corporate
Affairs, New Delhi, Regional Director at Chennai and Registrar of
Companies, Chennai. We express our thanks to Legal Counsels, Auditors
and Company Secretary. We sincerely thank all members of the Staff of
the Fund for their diligent service to the Fund.

for and on behalf of the Board of Directors

A.G. RAVISHANKAR
Place: Chennai Chairman
Date: 23.06.2018 (DIN : 00418872)

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 96th Year
1922 - 2018
P.T. PONNAIAH & Co., No.72, B/36, 1 st Floor,
L-Block, 21 st Street,
Chartered Accountants Anna Nagar East,
ICAI Membership No.019873 Chennai - 600 102.
Firm Regn. No.002669-S Ph : 2620 2221, 2628 2221.
email : ptponnaiah@yahoo.co.in

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE PURASAWAKUM PERMANENT FUND LTD.,

1. Report on Ind AS Financial Statements

We have audited the accompanying standalone Financial Statements of

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai which
comprise the Balance Sheet as at March 31, 2018, the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a summary
of significant accounting policies and other explanatory information.

2. Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in

Section 134(5) of the Companies Act, 2013 with respect to the preparation
of these standalone financial statements that give a true and fair view of
the financial position, financial performance and cash flows of the
Company in accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under Section 133
of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of
the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the

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accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.

3. Auditors Responsibility

Our Responsibility is to express an opinion on these financial statements

based on our audit.

We have taken into account the provisions of the Act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made
thereunder.

We conducted our audit in accordance with the Standards on Auditing

specified under Section 143(10) of the Act and the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting. Those
Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement and whether adequate Internal Financial Controls over
Financial Reporting was established and maintained and if such controls
operated effectively in all material respects.

An audit involves performing procedures to obtain audit evidence about

the amounts, the disclosures in the financial statements and adequacy of
the Internal Financial Controls over Financial Reporting and their
operating effectiveness. Our Audit of Internal Financial Controls over
Financial Reporting included obtaining an undertaking of Internal
Financial Controls over Financial Reporting, assessing the risk that
material weakness exits, and testing and evaluating the design and
operating effectiveness of Internal Control based on the assessed risk.

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The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's preparation
of the financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation of the
financial statements.

We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our audit opinion on the Company's
Internal Financial Controls System over Financial Reporting and the
standalone financial statements.

4. a) Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial controls over financial reporting is a

process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles. A company's internal financial control
over financial reporting includes those policies and procedures that

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

and fairly reflect the transactions and dispositions of the assets of the
company;

(2) provide reasonable assurance that transactions are recorded as necessary

to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorisations of
management and directors of the company; and

33
 96th Year
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(3) provide reasonable assurance regarding prevention or timely detection
of unauthorised acquisition, use, or disposition of the company's assets
that could have a material effect on the financial statements.

b) Inherent Limitations of Internal Financial Controls Over Financial

Reporting

Because of the inherent limitations of internal financial controls over

financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any evaluation
of the internal financial controls over financial reporting to future periods
are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may
deteriorate.

5. Opinion

In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone Ind AS financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the accounting
principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company
as at March 31, 2018;

(b) In the case of Statement of Profit and Loss, of the Profit for the year
ended on that date.; and

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

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6. Emphasis of Matter

We draw attention to various paragraphs in Note No.21 with regard to

transfer of the amount to Investor Education and Protection Fund due to
legal disputes, the uncertainty related to the recovery of Accounts
Receivable, Outstandings under Loans against Mortgage of House
Properties (Under dispute / Court proceedings) for several years, charge
of interest on such outstandings and non-recovery of default interest shown
under Loans against Mortgage of House Properties-Unsecured, provision
for NPA under Mortgage Loans and Bad Debts written off during the year
as follows:

Note No.21 (m) : With regard to amount to be transferred to Investor

Education and Protection Fund, the Company could not transfer certain
amounts on account of legal disputes. Our opinion is not qualified in
respect of this matter.

Note No.21 (s) : With regard to Amount Receivable from one borrower
under Loans against Mortgage of House Properties,
Mr.D.V.Balasubramanian, the case is pending before the court.
Our opinion is not qualified in respect of this matter.

Note No.21 (l) and (f) : With regard to 28 Loans against Mortgage of
House Properties (25 borrowers) with huge outstandings pending before
the Honourable courts, recognizing the interest on such borrowings as
Income, Charging of Provision for NPA as expenditure, amount of
unrealized default interest in respect of settled accounts shown under
Loans against Mortgage of House Properties-Unsecured and provision
made to the extent of short fall in the value of security of the House Properties
against the outstandings including interest. Our opinion is not qualified in
respect of this matter.

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7. Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2016, as amended,

issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in "Annexure -A" a statement on the
matters specified in Paragraphs 3 and 4 of the Order.

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

a) We have sought and obtained all the information and explanations

which to the best of our knowledge and belief were necessary for the
purpose of our audit;

b) In our opinion, proper books of account as required by law have been

kept by the Company so far as it appears from our examination of
those books;

c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;

d) In our opinion, the aforesaid standalone financial statements comply

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

e) On the basis of the written representations received from the Directors

as on 31st March, 2018 taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2018 from being
appointed as a director in terms of Section 164 (2) of the Act.

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

financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate report in "Annexure -B"

g) With respect to the other matters to be included in the Auditor's Report

in accordance with

36
 96th Year
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Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to
us, we report that :

i. The company has disclosed the impact and details of pending

litigations against the Company and by the company as disclosed in
the Notes on accounts as per Note No.21.

ii. The Company did not have any Long Term contracts including
derivative contracts for which there were any material foreseeable
losses.

iii. The Company has transferred amounts to Investor Education and

Protection Fund and has not transferred certain amounts reported in
Note 21(m) forming part of the Audited Financial Statements of the
Company.

For P.T. PONNAIAH & CO.,

Chartered Accountants

P.T. PONNAIAH
Partner
Place: Chennai - 84. ICAI Membership No. 019873
Date : 23.06.2018. Firm Registration. No. 002669-S

37
 96th Year
1922 - 2018
P.T. PONNAIAH & Co., No.72, B/36, 1 st Floor,
L-Block, 21 st Street,
Chartered Accountants Anna Nagar East,
ICAI Membership No.019873 Chennai - 600 102.
Firm Regn. No.002669-S Ph : 2620 2221, 2628 2221.
email : ptponnaiah@yahoo.co.in

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 1 under 'Report on Other Legal & Regulatory

Requirement of our report of even date to the financial statements of the
Company for the year ended March 31, 2018.
1. a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b) The Fixed Assets have been physically verified by the management in
a phased manner, designed to cover all the items over a period of the
years, which in our opinion, is reasonable having regard to the size of
the company and nature of its business. Pursuant to the program, a
portion of the fixed asset has been physically verified by the
management during the year and no material discrepancies between
the books records and the physical fixed assets have been noticed.
c) The title deeds of immovable properties are held in the name of the
company.
2. In our opinion, since the company is a NIDHI Company, the relevant clause
of CARO 2016 relating to Inventory is not applicable to the company.
3. a) The Company has not granted any Loans secured or unsecured to
the Companies, Firms or other Parties listed in the register maintained
under section 189 of the Companies Act, 2013. Accordingly, the
provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to
the Company and hence not commented upon. However, the Company
has accepted Fixed Deposits and other Deposits (unsecured) from
Directors & Relatives amounting to Rs. 12,05,931/- (Previous Year -
Rs. 88,316/-).
b) In our opinion and according to the records of the Company, the rate
of interest and other terms and conditions of the Fixed Deposits
(unsecured) taken by the Company from the Directors, are prima facie
not prejudicial to the interest of the Company.
c) In our opinion and according to the records, the Company is regular in
repaying the principal amount as stipulated and has been regular in
payment of interest.

38
 96th Year
1922 - 2018
4. In our opinion and according to the information and explanations given to
us, the company has complied with the provisions of section 185 and I86
of the Companies Act, 2013 in respect of loans, investments, guarantees,
and security.
5. The Company, being a NIDHI Company, has accepted Deposits from its
Shareholders and has complied with the Directions issued as per the
Notifications of the Ministry of Corporate Affairs and Nidhi Rules, 2014. As
such, the provisions of section 73 of the Companies Act, 2013 read with
Rules made there under are not applicable to the company.
6. As informed to us, the maintenance of Cost Records has not been specified
by the Central Government under sub-section (1) of Section 148 of the
Act, in respect of the activities carried on by the company.
7. a) According to information and explanations given to us and on the
basis of our examination of the books of account, and records, the
Company has been generally regular in depositing undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income-Tax, GST and any other statutory dues with the appropriate
authorities. According to the information and explanations given to
us, no undisputed amounts payable in respect of the above were in
arrears as at March 31, 2018 for a period of more than six months
from the date on which they become payable.
b) There are no dues of income tax, sales tax, service tax, duty of customs,
duty of excise, value added tax outstanding on account of any dispute.
The Company does not have any undisputed taxes payable at the
last day of the financial year for a period of more than 6 months
8. In our opinion and according to the information and explanations given to
us, the Company has not defaulted in the repayment of dues to banks.
The Company has taken secured Overdraft and Loan against deposits
from Lakshmi Vilas Bank, Purasawalkam and no other loans are taken
from financial institutions or from the government and has not issued any
debentures.
9. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not raised
moneys by way of initial public offer or further public offer including debt
instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of
the Order are not applicable to the Company and hence not commented
upon. Being a NIDHI Company, Shares are issued to the members for the
purpose of transacting with the company. During the year, the Company
has allotted shares to the extent of Rs.9048042/- which includes
Rs.89,78,442/- by Rights Issue.

39
 96th Year
1922 - 2018
10. Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud by the
Company or on the company by its officers or employees has been noticed
or reported during the year.
11. Based upon the audit procedures performed and the information and
explanations given by the management, the requisite approvals mandated
by the provisions of section 197 read with Schedule V to the Companies
Act are not applicable, as there is no managerial remuneration paid by the
Company.
12. (i) The Company, being a Nidhi Company, has complied with maintaining
more than ten per cent of the total deposits accepted by the company
in unencumbered term deposits.
(ii) During the year, the Company has also achieved the ratio of 1:20 of
Net Owned Funds to Deposits to meet out the liability as specified in
the Nidhi Rules, 2014.
13. In our opinion, all transactions with the related parties are in compliance
with section 177 and 188 of Companies Act, 2013 and the details have
been disclosed in the Financial Statements as required by the applicable
accounting standards.
14. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not made any
preferential allotment or private placement of shares or fully or partly
convertible debentures during the year under review. Accordingly, the
provisions of clause 3 (xiv) of the Order are not applicable to the Company
and hence not commented upon.
15. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered
into any non-cash transactions with directors or persons connected with
him. Accordingly, the provisions of clause 3 (xv) of the Order are not
applicable to the Company and hence not commented upon.
16. In our opinion, the company is not required to be registered under section
45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions
of clause 3 (xvi) of the Order are not applicable to the Company and hence
not commented upon
for P.T. PONNAIAH & CO.,
Chartered Accountants

P.T. PONNAIAH
Place : Chennai - 84 Partner
Dated : 23.06.2018. ICAI Membership No. 019873
Firm Registration. No. 002669-S

40
 96th Year
1922 - 2018
P.T. PONNAIAH & Co., No.72, B/36, 1 st Floor,
L-Block, 21 st Street,
Chartered Accountants Anna Nagar East,
ICAI Membership No.019873 Chennai - 600 102.
Firm Regn. No.002669-S Ph : 2620 2221, 2628 2221.
email : ptponnaiah@yahoo.co.in

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 1 under Report on Other Legal & Regulatory

Requirement of our report of even date to the financial statements of
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai for the year
ended March 31,2018

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

3 of Section 143 of the Companies Act, 2013.

We have audited the internal financial controls over financial reporting of

THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai as of March
31, 2018 in conjunction with our audit of the standalone financial statements
of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and

maintaining internal financial controls based on the internal control over
financial reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit
of Internal Financial Controls over Financial Reporting issued by the Institute
of Chartered Accountants of India. These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to company's policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act, 2013.

Auditors' Responsibility

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

financial controls over financial reporting based on our audit. We conducted
our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting and the Standards on Auditing, issued by

41
 96th Year
1922 - 2018
ICAI and deemed to be prescribed under section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls,
both applicable to an audit of Internal Financial Controls and, both issued by
the Institute of Chartered Accountants of India. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence amount

the adequacy of the internal financial control system over financial reporting
and their operating effectiveness. Our audit of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and
operating effectiveness of internal control based on the assessed risk. The
procedures selected depend upon on the auditor's judgement, including the
assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our audit opinion on the Company's internal
financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process

designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company's
internal financial control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's assets that could have a
material effect on the financial statements.

42
 96th Year
1922 - 2018
Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over

financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud
may occur and not be detected. Also, projections of any evaluation of the
internal financial controls over financial reporting to future periods are subject
to the risk that the internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate

internal financial controls system over financial reporting and such internal
financial controls over financial reporting were operating effectively as at
March 31, 2018, based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls
over Financial Reporting issued by the Institute of Chartered Accountants of
India.

For P.T. PONNAIAH & CO.,

Chartered Accountants

P.T. PONNAIAH
Partner
Place : Chennai
ICAI Membership No. 019873
Dated : 23.06.2018. Firm Registration. No. 002669-S

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 96th Year
1922 - 2018

P.T. PONNAIAH & Co., No.72, B/36, 1 st Floor,

Chartered Accountants
ICAI Membership No.019873
Firm Regn. No.002669-S
L-Block, 21 st Street,
Anna Nagar East,
Chennai - 600 102.
Ph : 2620 2221, 2628 2221.
email : ptponnaiah@yahoo.co.in

CERTIFICATE OF STATUTORY AUDITORS

This is to certify that THE PURASAWAKUM PERMANENT FUND
LIMITED has complied with all the directions specified in the various
Notifications issued by the Ministry of Corporate Affairs from time to time
and Nidhi Rules 2014 subject to the Notes on Accounts forming part of
the Audited Statements of Accounts and the Company has been complying
with all the required Provisions of the Companies Act, 2013 as applicable
to NIDHI Companies and the books of account are maintained in conformity
with the accounting principles generally accepted in India.

It is also certified that THE PURASAWAKUM PERMANENT FUND

LIMITED has complied with the Prudential Norms as required by the
Notifications of the Ministry of Corporate Affairs as amended from time
to time and Nidhi Rules 2014 and provision for sub-standard assets has
been made to the extent required and the details have been given in
Notes on Accounts forming part of the Audited Statements of Accounts
of the Company for the year ended 31st March, 2018.

For P.T. PONNAIAH & CO.,

Chartered Accountants

P.T. PONNAIAH
Partner
Place : Chennai
ICAI Membership No. 019873
Dated : 23.06.2018. Firm Registration. No. 002669-S

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 96th Year
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BALANCE SHEET

AND

PROFIT AND LOSS ACCOUNT

2017 - 2018

45
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
BALANCE SHEET AS AT 31st MARCH, 2018
Note Reporting Reporting
PARTICULARS No. Period as at Period as at
31.03.2018 31.03.2017
Rs. Rs.
I EQUITY AND LIABILITIES
(1) Shareholders Fund
a. Share Capital 1 1,79,62,066 89,14,024
b. Reserves & Surplus 2 2,28,42,070 2,19,76,084
(2) Non-current Liabilities
a. Long-term Borrowings 3 22,63,20,108 42,50,54,820
b. Other Long-Term Liabilities 4 1,42,73,958 76,97,423
(3) Current Liabilities
a. Short Term Borrowings 5 56,86,69,244 35,09,31,510
b. Other Current liabilities 6 1,73,00,613 1,99,48,703
c. Short-Term Provisions 7 24,96,730 10,95,000
TOTAL 86,98,64,789 83,56,17,564
II. ASSETS
(1) Non-current Assets
a Fixed Assets-Tangible Assets 8 2,13,77,337 2,17,76,036
b. Deferred Tax Asset 9 24,661 1,58,506
c. Long term Loans & Advances 10 2,42,42,653 4,28,62,839
d. Other non-current Assets 11 13,82,114 23,23,552
(2) Current Assets
a. Cash & Cash Equivalents 12 9,65,94,168 9,08,06,910
b. Short term Loans & Advances 13 70,39,07,401 65,42,97,033
c. Other Current Assets 14 2,23,36,455 2,33,92,688
TOTAL 86,98,64,789 83,56,17,564
Notes to the financial statements : The Accompanying Notes 1 to 14 and Note 21 - Accounting
Policies and Notes on Accounts form part of this Balance Sheet.

Vide our Report of even date A.G. RAVISHANKAR T.S. RAVISANKAR

Chairman N.M. MANIVANNAN
For P.T. PONNAIAH & Co.,
Chartered Accountants Whole Time Directors
V. RAGHUPATHI
P.T. PONNAIAH
Partner M.A. LAKSHMIPATHI
ICAI Membership No. 019873 P. P. DHANDAPANI
Firm Regn. No. 002669-S
G.S. VENKATARAMAN
Chennai - 600 084. E. SAKTHI AISVARYA
Date : 23.06.2018. Directors

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 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2018
Note For the year For the year
PARTICULARS No. ended ended
31.03.2018 31.03.2017

INCOME Rs. Rs.

I Revenue from operations 15 11,70,50,620 12,22,16,559
II Other Income 16 21,97,637 40,33,500
Total Revenue 11,92,48,257 12,62,50,059
III EXPENSES
a) Employee Benefits Expenses 17 3,08,60,669 3,26,29,650
b) Finance Costs 18 7,15,17,609 7,63,66,633
c) Depreciation & Amortization
Expenses 19 7,30,325 14,77,003
d) Other Expenses 20 1,37,38,094 1,39,30,504
Total Expenses 11,68,46,697 12,44,03,790
IV Profit befor Tax (I+II)-III 24,01,560 18,46,269
V Tax Expense
Less : Tax Expenses
Current Tax 5,03,627 5,95,000
Deferred Tax Asset 1,33,845 (5,885)
VI Profit for the year (IV-V) 17,64,088 12,57,154
VII Earnings Per Share - Basic 0.10 0.14
Diluted 0.10 0.14

Notes to the financial statements : The Accompanying Notes 15 to 20 and

Note 21 - Accounting Policies and Notes on Accounts form part of this statement of profit & loss.

Vide our Report of even date A.G. RAVISHANKAR T.S. RAVISANKAR

Chairman N.M. MANIVANNAN
For P.T. PONNAIAH & Co.,
Chartered Accountants Whole Time Directors
V. RAGHUPATHI
P.T. PONNAIAH
Partner M.A. LAKSHMIPATHI
ICAI Membership No. 019873 P. P. DHANDAPANI
Firm Regn. No. 002669-S
G.S. VENKATARAMAN
Chennai - 600 084. E. SAKTHI AISVARYA
Date : 23.06.2018. Directors

47
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES TO ACCOUNTS ATTACHED TO BALANCE SHEET AS AT 31st MARCH 2018

Note As at As at
No.
PARTICULARS 31.03.2018 31.03.2017

Rs. Rs.
1. SHARE CAPITAL
A. AUTHORISED CAPITAL
2,00,00,000 Equity Shares of Rs.1/- each 2,00,00,000 2,00,00,000
2,00,00,000 2,00,00,000
B. ISSUED, SUBSCRIBED AND FULLY PAID-UP
1,79,62,066 Equity shares of Rs.1/- each 1,79,62,066 89,14,024
1,79,62,066 89,14,024
Number of Equity Shares
At the beginning of the Year 89,14,024 88,28,024
Allotted during the year 90,48,042 86,000
At the end of the year 1,79,62,066 89,14,024
C. List of Share Holders holding more than
5% of total shares Equity Share holders NIL NIL

2. RESERVES AND SURPLUS

i General Reserves-I Opening 2,11,96,520
Add: Transferred during the year 8,98,103 2,20,94,623 2,11,96,520
ii General Reserves - II Opening 90,498 90,498
iii Capital Reserve - Opening 33,261 33,261
iv Capital Redemption Reserve - Opening 121 121
v Surplus in Profit & Loss A/c 6,23,567 6,55,684
2,28,42,070 2,19,76,084
APPROPRIATION
Opening Surplus in Statement of Profit & Loss 6,55,685 3,98,530
Surplus from Statement of Profit & Loss (IV-V) 17,64,088 12,57,154
24,19,773 16,55,684
Transfer to General Reserve 8,98,103 10,00,000
Proposed Dividend including dividend tax 8,98,103 -
Closing Surplus transferred to Balance Sheet 6,23,567 6,55,684
24,19,773 16,55,684

48
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES TO ACCOUNTS ATTACHED TO BALANCE SHEET AS AT 31st MARCH 2018

Note As at As at
No.
PARTICULARS 31.03.2018 31.03.2017

3. NON CURRENT LIABILITIES: Rs. Rs.

Long Term Borrowings:
a. Secured Loans - -
b. Unsecured Loans (Total Deposits
from Shareholders)
Fixed Deposits 52,75,83,480 52,86,36,230
Re-Investment Deposits 18,26,80,080 18,63,68,467
Recurring Deposits 2,16,56,665 2,31,71,700
Savings Deposits 76,01,333 99,75,713
Deposits from Related Parties 11,13,537 86,980
74,06,35,095 74,82,33,090
Less : Deposits maturing within a
period of 12 months transferred to
Short - Term Borrowings 51,43,14,987 32,31,78,270
22,63,20,108 42,50,54,820
Break up of Long Term Borrowings:
Fixed Deposits 8,55,75,475 35,20,13,155
Re-Investment Deposits 13,56,06,633 6,85,41,910
Recurring Deposits 51,38,000 44,99,755
22,63,20,108 42,50,54,820
4. OTHER LONG TERM LIABILITIES:
i). Accrued Interest on Total Deposits
Fixed Deposits 52,67,556 52,47,288
Re-Investment Deposits 1,59,13,890 1,50,94,022
Recurring Deposits 14,61,347 15,39,571
Savings Deposits 26,752 38,679
Deposits from Related Parties 92,394 1,336
2,27,61,939 2,19,20,896
Less : Interest payable on Deposit
maturing within 12 months transferred
to other Current Liabilities 84,87,981 1,42,23,473
1,42,73,958 76,97,423
Break up of Accrued Interest on Long
Term Borrowing (Deposits) :
Fixed Deposits 7,59,594 34,30,806
Re-Investments Deposits 1,31,98,180 39,85,092
Recurring Deposits 3,16,184 2,81,525
1,42,73,958 76,97,423

49
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES TO ACCOUNTS ATTACHED TO BALANCE SHEET AS AT 31st MARCH 2018
Note As at As at
PARTICULARS 31.03.2017
No. 31.03.2018

CURRENT LIABILITIES: Rs. Rs.

5. SHORT TERM BORROWINGS

a. Secured Loan:
Overdraft from Lakshmi Vilas Bank
against security of Fixed Deposits
with Bank for Rs.75 Lakhs 54,61,461 90,265

Overdraft from Lakshmi Vilas Bank

against security of Book Debts with
Colleteral security of Office Land &
Building owned by the company. 4,88,92,796 2,76,62,975

TOTAL A 5,43,54,257 2,77,53,240

b. Unsecured Loans (Deposits from

Shareholders) : Deposits maturing
within a period of 12 months

Fixed Deposits 44,20,08,005 17,66,17,075

Re Investment Deposits 4,70,73,447 11,78,26,557
Recurring Deposits 1,65,18,665 1,86,71,945
Saving Deposits 76,01,333 99,75,713
Deposits from Related Parties 11,13,537 86,980

Total B 51,43,14,987 32,31,78,270

Grand Total (A+B) 56,86,69,244 35,09,31,510

6. OTHER CURRENT LAIBILITIES

(a) Interest Payable on Deposits maturing

within 12 months
Fixed Deposits 45,07,963 18,16,481
Re-Investments Deposits 27,15,719 1,11,08,930
Recurring Deposits 11,45,153 12,58,047
SavingsDeposits 26,752 38,679
Deposits from Related Parties 92,394 1,336

Total A 84,87,981 1,42,23,473

50
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES TO ACCOUNTS ATTACHED TO BALANCE SHEET AS AT 31st MARCH 2018
Note As at As at
PARTICULARS 31.03.2017
No. 31.03.2018

(b) OTHERS : Rs. Rs.

RD Closed accounts 8,25,384 6,08,723

Locker Caution Deposits 8,00,350 7,96,150

Ex-gratia payable to Staff 17,29,205 17,27,160

Sundry Creditors - Expenses 1,44,000 1,52,100

Sundry Creditors -
Staff Security Deposits 1,40,000
Ex-employee bonus - court case 4,90,237
Others 46,83,456 53,13,693 24,41,097

Total B 88,12,632 57,25,230

Grand Total (A+B) 1,73,00,613 1,99,48,703

7. SHORT TERM PROVISIONS

Provision for Taxation 15,98,627 10,95,000
Proposed Dividend 7,65,620 -
Dividend DistributionTax 1,32,483 -
24,96,730 10,95,000
8. NON-CURRENT ASSETS :
FIXED ASSETS :
Tangible Assets as per the Schedule
of Fixed Assets with details of
Gross Block, Depreciation and
Net Block separately enclosed 2,13,77,337 2,17,76,036
2,13,77,337 2,17,76,036

51
 NOTE No.8 - THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
FIXED ASSETS AS ON 31-03-2018
Gross Block Depreciation Net Block
TANGEBLE Additions Deletions Useful For the Deletion W.D.V. W.D.V.
As at As at Up to Up to
ASSETS 01-04-2017 During during 31-03-2018 Life 31-03-2017 Year for the 31-03-2018 As on As on
the Year the year (years) 31.03.2018 year 31-03-2018 31-03-2017

1. Land 61,64,250 61,64,250 61,64,250 61,64,250

2. Building 1,86,21,609 78,185 1,86,99,794 60 48,61,217 2,95,084 51,56,301 1,35,43,493 1,37,60,392

3. Furniture &
Fittings 34,55,484 55,929 35,11,413 10 33,24,871 554 33,25,425 1,85,988 1,30,613

4. Electrical
52

Installations
& Equipments 36,43,270 10,612 36,53,882 10 21,73,597 2,62,234 24,35,831 12,18,051 14,69,673

5. Motor Car 7,56,847 7,56,847 6 5,50,543 1,19,809 6,70,352 86,495 2,06,304

6. Computer &
Softwares 16,63,723 1,86,900 18,50,623 3 16,18,919 52,644 16,71,563 1,79,060 44,804

TOTAL 3,43,05,183 3,31,626 -- 3,46,36,809 1,25,29,147 7,30,325 -- 1,32,59,472 2,13,77,337 2,17,76,036

PREVIOUS YEAR 3,60,84,931 3,23,143 21,02,891 3,43,05,183 1,28,25,656 14,77,003 17,73,512 1,25,29,147 2,17,76,036 2,32,59,275
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES TO ACCOUNTS ATTACHED TO BALANCE SHEET AS AT 31st MARCH 2018

Note As at As at
PARTICULARS 31.03.2018 31.03.2017
No.

Rs. Rs.
9. DEFERRED TAX ASSET
Deferred Tax liability opening 1,58,506
Add : Addition for the year (1,33,845) 24,661 1,58,506
24,661 1,58,506
10. LONG TERM LOANS & ADVANCES :
Secured - considered Good Realisable
after a Period of 12 months
Loans against Mortgage of House
Properties 1,74,39,694 2,18,36,988
Loans against Mortgage of House
Properties - Staff 65,96,459 75,73,663
Loans against Deposits (FD, RID) 2,06,500 1,33,99,663
Loans against Deposits (RD) - 52,525
2,42,42,653 4,28,62,839
11. OTHER NON-CURRENT ASSETS :
TNEB Security Deposits 1,92,971 1,92,971
Minimum Alternate Tax 2,47,705 2,47,705
Deferred Revenue Expenditure
(Long Term) 18,82,876
Less : Payable within
12 months transferred to
Other Current Assets 9,41,438 9,41,438 18,82,876
13,82,114 23,23,552
12. CURRENT ASSETS
CASH AND CASH EQUIVALENTS
Balance with Banks
In Current Accounts with Banks 43,33,125 38,68,693
Cheques on hand 63,48,470 6,98,270
Fixed Deposits with Banks 8,21,16,000 8,06,22,500
Fixed Deposits with Banks - Employees 1,40,000 1,40,000
Cash on Hand 36,56,573 54,77,447
9,65,94,168 9,08,06,910

53
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES TO ACCOUNTS ATTACHED TO BALANCE SHEET AS AT 31st MARCH 2018
Note As at As at
PARTICULARS
No. 31.03.2018 31.03.2017
13. SHORT - TERM LOANS AND ADVANCES: Rs. Rs.
Loans against Mortgage of House
Properties (Under dispute /
Court Proceedings) 50,64,35,554
Less : Provision for
NPA Accounts (Loans
granted before 01.04.2002) 2,66,94,111 47,97,41,443 40,51,78,323
Loans against Mortgage of
House Properties secured
and considered good 2,28,82,806
Provision for NPA Accounts
(Loans granted on or before
01.04.2002) 2,28,82,806 2,86,82,612
Loans against Mortgage of
House Properties - Unsecured 5,69,41,930 6,64,89,557
Other Short term Loans (Secured and
Considered Good) :
Loans against Mortgage of House
Properties - Staff 65,96,459 75,73,663
Jewel & Silver Loans 14,52,34,510 16,50,81,216
Loans against Depsoits (FD & RID) 1,65,89,856 2,39,03,058
Loans against Recurring Deposits 1,63,050 2,51,443
72,81,50,054 69,71,59,872
Less : Loans realisable after 12 months
transferred to Long Term Loans and
Advances 2,42,42,653 4,28,62,839
70,39,07,401 65,42,97,033
Break up of Short Term Loans &
Advances
Loans against Mortgage of House
Properties (Under dispute /
Court Proceedings) 47,97,41,443 40,51,78,323
Loans against Mortgage of House
Properties (Less Provision for NPA
Accounts after 01.04.2002) 54,43,112 68,45,624
Loans against Mortgage of House
Properties - Unsecured 5,69,41,930 6,64,89,557

54
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES TO ACCOUNTS ATTACHED TO BALANCE SHEET AS AT 31st MARCH 2018
Note As at As at
No. PARTICULARS 31.03.2018 31.03.2017

Rs. Rs.

Jewel & Silver Loans 14,52,34,510 16,50,81,216

Loans against Deposits (FD & RID) 1,63,83,356 1,05,03,395
Loans against Recurring Deposits 1,63,050 1,98,918

70,39,07,401 65,42,97,033
14. OTHER CURRENT ASSETS
Accrued Interst on Loans
Jewel Loans 72,54,409 90,22,139
Loans against FD and RID 27,35,345 23,05,738
Loans against Recurring Deposits 14,685 28,761

Bank Fixed Deposits Interest receivable 17,18,345 17,10,365

Staff Loans 16,57,415 16,52,816
TDS on Interest from Bank Deposits (FY 2016-17) 30,87,803 24,40,229
TDS on Interst from Bank Deposits for current year 6,01,846 6,47,574
TDS on Rent 3,08,918 3,08,918
Accounts Receivable 3,53,100 7,72,360
Building Sale (Capital Expenditure) 24,15,989 23,73,824
Rental Advance
(Madipakkam & Peravallur) 6,00,000 6,00,000
RD Subscriptions Receivable 1,56,925 2,30,800
Employees Bonus Amt. Court case Invst. 4,90,237 3,57,726
Deferred Revenue Expenditure 9,41,438 9,41,438

TOTAL 2,23,36,455 2,33,92,688

55
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES ATTACHED TO STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 st MARCH 2018
Note As at As at
PARTICULARS 31.03.2017
No. 31.03.2018

15. REVENUE FROM OPERATIONS Rs. Rs.

Interest on Mortgage Loans 7,84,27,007 7,89,93,416
Interest on Special Loans
(Gold & Silver) 2,86,81,593 3,25,79,485
Interest on Deposit Loans 36,87,309 39,30,402
Interest on Recurring Deposit Loans 65,736 1,18,955
Interest on Staff Loans 1,71,092 1,19,062
Interest on Bank Fixed Deposits 60,17,883 64,75,239
11,70,50,620 12,22,16,559
16. OTHER INCOME

Jewels Appraiser Fees 14,21,837 20,02,669

Profit on Sale of Fixed Assets - 32,247
AMC of Lockers 7,75,800 8,04,400
Interest on IT Refund - 14,580
Miscellaneous Income - 11,79,604
21,97,637 40,33,500
17. EMPLOYEE BENEFIT EXPENSES

Salary and Allowances 2,31,26,851 2,35,92,037

Contribution to Provident Fund & Other Fund 26,01,207 26,83,012
Staff Gratuity with LIC 17,68,980 34,02,693
Staff Leave Encashment with LIC 1,17,620 2,75,664
Ex-Gratia to Staff 17,29,205 17,27,160
Payment of Back wages 1/5th Written off 9,41,438 9,41,438
ESI Contribution 28,916 7,646
Remuneration to Wholetime directors 5,46,452 -
3,08,60,669 3,26,29,650
18. FINANCE COSTS

Interest paid to Shareholders on

Deposits accepted by the company
under unsecured loans 6,62,70,205 7,19,19,448
Interest on Bank Overdraft 52,47,404 44,47,185
7,15,17,609 7,63,66,633

56
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES ATTACHED TO STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 st MARCH 2018

Note As at As at
No. PARTICULARS 31.03.2018 31.03.2017

Rs. Rs.
19. DEPRECIATION AND
AMORTIZATION EXPENSES
Depreciation as per note : 8 of Fixed assets 7,30,325 14,77,003
7,30,325 14,77,003

20. OTHER EXPENSES

A. Administrative Expenses
Corporation Tax & Others Taxes 2,16,400 4,12,769
Printing & Stationary 2,72,457 3,18,244
Postage & Telegrams 67,539 60,678
Loss on Sale of Fixed Asset
(Air Conditioner) - 1,49,626
Telephone Charges 1,12,691 1,12,356
Electricity Charges 3,70,610 3,68,950
Remuneration to Auditor 1,20,000 1,20,000
Insurance (Fire, Transit & Fidelity) 2,12,676 3,99,463
Refreshment Expenses 4,80,061 3,64,397
Miscellaneous Expenses 1,12,904 4,30,418
Conveyance to Directors 2,11,350 2,55,900
Conveyance to Whole Time Directors 78,064 -
Conveyance to Others 1,25,167 56,679
Bank charges 99,765 2,91,335
Sitting Fees to Directors 8,59,400 11,80,000
Computer programmer & consulting charges 3,12,000 1,75,330
Repairs & Maintenance
Building Maintanance 31,138 42,068
Electrical Maintanance 9,195 5,258
Genarator Fuel Maintanance 23,530 11,000
Other periodical Maintanance & Repairs 1,29,118 1,61,253
Professional charges 4,77,035 2,32,505
Legal Charges 37,000 6,000

57
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED, Chennai-600 084.
NOTES ATTACHED TO STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 st MARCH 2018
Note As at As at
PARTICULARS 31.03.2017
No. 31.03.2018

Security Guard Charges 3,26,700 3,21,599

Donations & Charity 74,060 57,790
Office Car Fuel & Maintenance 39,849 36,634
Filling Fees 42,000 34,786
Internal Auditor Fees 48,000 48,000
AGM Expenses 2,67,600 2,75,486
Service Tax / GST 1,50,645 2,50,291
Rent paid 8,02,701 7,67,121
Total (A) 61,09,655 69,45,936
OTHERS
Provision for TSL NPA Accounts
(prior to 1.4.2002) 76,28,439 69,84,568
Total (B) 76,28,439 69,84,568
Grand Total (A+B) 1,37,38,094 1,39,30,504

Vide our Report of even date A.G. RAVISHANKAR

T.S. RAVISANKAR
Chairman
N.M. MANIVANNAN
For P.T. PONNAIAH & Co.,
Chartered Accountants Whole Time Directors

P.T. PONNAIAH
V. RAGHUPATHI
Partner
ICAI Membership No. 019873 M.A. LAKSHMIPATHI
Firm Regn. No. 002669-S P. P. DHANDAPANI

G.S. VENKATARAMAN
E. SAKTHI AISVARYA
Chennai - 600 084.
Date : 23.06.2018. Directors

58
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED
31st MARCH, 2018
FOR THE YEAR FOR THE YEAR
PARTICULARS
ENDED 31.03.2018 ENDED 31.03.2017

A. CASH FLOW FROM OPERATING

ACTIVITIES Rs. Rs.

NET PROFIT BEFORE TAX 24,01,560 18,46,269

Adjustment for :
Depreciation 7,30,325 14,77,003
Deferred Revenue Expenditure w/o. - -
Provision for NPA 76,28,439 69,84,568
Bad debts written off - -
Loss on sale of Assets - 1,49,626
Profit on sale of Assets - (32,247)
Income Tax Paid - -

Operating Profit before Working

Capital Changes 1,07,60,324 1,04,25,219

Adjustments for :
Increase / (Decrease)
in Bank Overdraft 2,66,01,017 (83,04,271)
Increase/(Decrease)
in Other Current Liabilities (26,48,090) (16,72,881)
Decrease/ (Increase)
in Other Current Assets (10,56,234) (14,34,354)
(excluding Deferred
Revenue Expenditure)
Reversal of Provision for Income tax - (3,95,000)

Cash generated from operations 3,57,69,485 (13,81,287)

Less : Income Tax paid - -

Net Cash used in operating activities 3,57,69,485 (13,81,287)

59
 96th Year
1922 - 2018
THE PURASAWAKUM PERMANENT FUND LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED
31st MARCH, 2018
FOR THE YEAR FOR THE YEAR
PARTICULARS
ENDED 31.03.2018 ENDED 31.03.2017

B CASH FLOW FROM INVESTING

ACTIVITIES

Purchase of Fixed Assets (3,31,626) (3,23,143)

Sale of Fixed Assets 9,41,438 2,12,000
Deferred Revenue Expenditure
(Long Term) 9,41,438 9,41,438

Net Cash flow from

Investing activities 6,09,812 8,30,295

C CASH FLOW FROM FINANCING

ACTIVITIES
Issue of Shares 90,48,042 86,000
Increase / (Decrease) in Deposits
from Shareholders (net) (75,97,995) 4,06,47,972
Increase / (Decrease) in
Other Long Term Liabilities (net) 65,76,535 42,49,899
(Increase) / Decrease in Loans (net) (3,09,90,182) (3,17,22,638)
Increase in NPA Provision (net) (76,28,439) (69,84,568)
Bad Debts Written off - -

Net Cash flow from

financing activities 3,05,92,039 62,76,665

Net increase in Cash & Cash

Equivalents during the year(A+B+C) 57,87,258 57,25,673
Cash and Cash equivalents as
at beginning of the year 9,08,06,910 8,50,81,237
Cash and Cash equivalents as
at end of the year 9,65,94,168 9,08,06,910

60
 96th Year
1922 - 2018
The Purasawakum PPermanent
ermanent FFund
und Limited,
Chennai - 600 084.
NOTE NO.21
Notes on Accounts forming part of Audited Balance Sheet as at 31st.March,
2018 and Statement of Profit and Loss Account for the year ended on that
date.
Significant Accounting Policies :
(a) Basis of Preparation
The accompanying financial statements have been prepared in compliance with
therequirements under section 133 of the Companies Act,2013 (to the extent)
read with Rule7 of the Companies (Accounts) Rules, 2014 and other generally
accepted accounting principles (GAAP) in India, to the extent applicable under
the historical cost convention, on accrual basis of accounting. GAAP comprises
mandatory accounting standards as specified in Companies (Accounting
Standards) Rules, 2006.
(b) Use of Estimates
The preparation of Financial statement of the company require management to
make estimates that affect the reported amount of assets and liabilities as at the
date of the Financial Statement and the reported amounts includes revenue and
expenses. Although these estimates are based on management's best knowledge
of current events and actions, actual results may ultimately differ from these
estimates, which are recognized in the period in which the results are materialized.
(c) Fixed Assets
Fixed Assets are stated at cost in compliance with AS 10 (Accounting for Fixed
Assets). Cost includes taxes, duties, freight and other incidental expenses
related to acquisition, improvements and installation of the assets.The intangible
assets (Computer Software acquired for internal use) are capitalized in
accordance with the relevant Accounting Standard and included with the Cost
of Computers and Accessories.
(d) Depreciation
Depreciation on all assets has been provided as per Schedule II of the Companies
Act, 2013 based on the useful life and on pro- rata basis with reference to the
date of acquisition of the assets in accordance with AS-6 (Depreciation for Fixed
Assets)
(e) Term Deposits/ Investments
i) The Company is required to maintain 10% of its total deposits (Unsecured
Loans) accepted from the Members with Scheduled Banks as per regulatory
directives contained in Nidhi Rules 2014. The Company is holding total
deposits of Rs.8,21,16,000/- with Scheduled Banks of which the Company
has given lien for overdraft facility to the extent of Rs.75,00,000/- and the
balance of Rs.7,46,16,000/- is in excess of 10% of the Total Deposits
accepted by the Company as on 31.01.2018.
ii) Staff security Deposits of Rs.1,40,000/- is invested in Fixed Deposit with
Canara Bank and shown under the head of Cash and Cash Equivalents in
Note No.12.
iii) Investments: NIL

61
 96th Year
1922 - 2018
(f) Revenue Recognition
The Revenue of the company includes Interest on Loans granted to Members
and has been recognized on Accrual basis. The Company has been charging
interest on the outstanding in respect of Mortgage Loans which are under
Dispute/Court Proceedings.
All these mortgage loans were granted several years back and majority of the
cases are pending before the courts as the borrowers moved the courts for stay
of recovery proceedings through public auction, initiated by the Company. The
company is taking all steps to recover the above outstanding dues through court
and also through negotiations with borrowers wherever possible. The company
has filed recovery suits in three cases, situated outside the Madras Corporation
jurisdiction, which are also included in the total dues.
The outstanding under Loans against Mortgage of properties which are under
dispute /court proceedings with Interest charged on such loans have been
grouped together and shown under Short Term Loans as Loans against Mortgage
of properties (Under dispute/court proceedings) in order to have better control
which are amounting to Rs.50,44,98,363/-The above 28 loans are included in this
category. Interest on Total Loan outstanding in respect of Term closed accounts
under this category was charged at 2% p.m. from 01.04.2006 onwards as per
the provisions contained in the Mortgage Deeds. Subsequently, the company
has provided interest on these outstanding on monthly rest basis with effect from
01.04.2012 and recognized the same as Interest Income in the Statement of
Profit & Loss A/c. The same practice has been followed for the year ended 31st
March, 2018 also as in the earlier years. The provision for TSL NPA Accounts
(prior to 01.04.2002) to the extent of Rs.76,28,439/- has been charged by the
Company as Expenses in the Statement of Profit & Loss under Note No.20(B)-
Other Expenses.
(g) Employee Benefits
(i) Provident Funds and Employees State Insurance Fund (Defined Contribution
Schemes) are administered by Central Government of India and contributions
to the said funds are charged by the company to Profit and Loss Account
on accrual basis.
(ii) Leave encashment benefits to employees and Gratuity Benefits to the
employees are covered under the Group Insurance Policy with Life Insurance
Corporation of India and the contributions are charged to Profit and Loss
Account under Defined Contribution Plan in accordance with AS-15 (Employee
Benefits)
(iii) Loans on mortgage of House Properties includes Rs.65,96,459/- (Previous
Year Rs.75,73,663/-) under staff housing loan scheme.
(iv) Staff Loans and Advances are granted on the personal security and
assignment of their L.I.C. Policies in favour of the company. All such loans
to employees are thus secured and good and recovery of such Loans are
by way of monthly deductions from their salary.
(v) The Bonus dispute before the Labour Court under ID No.93/2009 was
decided in favour of the petitioners upholding their plea of customary bonus
without quantifying the bonus award. However, the company has filed a Writ
against the award in the High Court vide W.P.No.5715 of 2012. The Writ was
admitted & stay granted with the condition to pay one month minimum Bonus
to staff who are on rolls which is subject to disposal of the case.

62
 96th Year
1922 - 2018
The Company has also paid Rs.17,25,069/- to 34 employees who were on the
rolls as on 03.12.2012 towards bonus for the earlier years 2003, 2005, 2006 & 2007
as per the Honourable High Court Order dated 03.12.2012 and complied with the
order of the Court. The above Ex-Gratia Payment is subject to final verdict in the
above Writ Petition. The Company has provided one month salary (Basic + D.A.)
as Ex-Gratia from the Financial Year 2013-14 onwards.
However, in respect of the following employees, who have since retired from
service, the amount paid as interim Bonus was deducted and invested in Allahabad
Bank, Purasawalkam, Branch in separate accounts.

Sl. Name of the Date of Amount Collected Accrued Total

No. Employee Retirement at the time of interest
Retirement
Rs. Rs. Rs.
1 Sri C.M. Sampath Kumar 26.08.2014 84,600 11,729 96,329
2 Sri J. Mohan 31.01.2016 95,004 13,172 1,08,176
3 Sri M. Premchander 31.03.2016 62,662 8,693 71,355
4 Sri C. Damodaran 29.09.2016 29,389 1,967 31,356
5 Sri V. Balaraman 30.01.2017 36,731 2,372 39,103
6 Sri R. Ravi 30.01.2017 32,536 2,101 34,637
7 Sri S. Mani 30.06.2017 24,681 24,681
8 Sri M.R. Murthy Kumar 31.01.2018 84,600 84,600
Total 4,50,203 40,034 4,90,237
A sum of Rs.47,07,190/- representing back wages and other benefits due as
per court order and paid to Sri D. Bakthavatchalam, considered as Deferred
Revenue Expenditure to be written off in FIVE equal instalments as shown in Note
No.11 and the same is being written off in FIVE years with effect from Financial Year
2015-16. Accordingly, the amount of Rs.9,41,438/- THIRD Instalment has been
written off in the statement of Profit & loss.
(h) Treatment of Prior Period and Extra Ordinary Items
There are no Prior Period Items and Extra-Ordinary Items occurred during the
year
(i) Taxation
Current tax has been provided to the extent of the amount of tax payable in
respect of taxable income for the year for Rs.5,03,627/-. Deferred Tax
Liability has been created to the extent of timing differences for an amount of
Rs.1,33,845/- The component of Deferred tax is only on account of the non-cash
charge of Depreciation.
(j) Borrowing Cost
No Borrowing cost has been capitalized during the year
(k) Foreign Currency Transactions
There are no Foreign Currency transactions during the year
(l) Provisions, Contingent liabilities and Contingent Assets
(a) As per the Notification of the Ministry of the Corporate Affairs vide GSR No.258(E)
dated 31.03.2014 and Nidhi Rules, 2014, the provision on Non-Performing

63
 96th Year
1922 - 2018
Assets in respect of Mortgage Loans disbursed by the Company (28 Loans prior
to 31.03.2002) and outstanding as on 31.03.2018 is furnished below:

Breakup Details for 28 mortgage loan accounts (25 Borrowers) as on 31.03.2018

amounting to Rs.50,44,98,363/- out of overall loans under dispute/court proceedings:

Particulars 23 Accounts Rs. 5 Accounts Rs.

Total outstanding in respect of mortgage 36,70,04,749 13,74,93,614

loans
The Fair market value of the properties
as valued and certified by Registered 56,30,21,126 11,07,99,503
Valuer
Shortfall in Security NIL 2,66,94,111
Less : Provision already made upto 1,90,65,672
31.03.2017
Balance to be provided 76,28,439
Provision made for the current year: 76,28,439

(b) Further, as per the above said Notification, provisioning to be made for
mortgage loans granted on or after 01.04.2002 and outstanding as on
31.03.2018 is Rs.1,22,121/- and the value of the property is
Rs.2,74,30,066/-.Since the value of the property is more, no provision for
NPA is required to be made.

(c) In respect of 11 chronic default accounts settled upto 2016-17 with interest
concession left an unrealized default interest of Rs.6,64,89,557/- and the
same was reduced to Rs.5,69,41,930/- being carried over to subsequent
years to be adjusted against Profits. This is shown as unsecured loan under
Note No. 13.

The company has not recognized any contingent liability or contingent asset.

(m) Investor Education and Protection Fund

a) During the year under report, a sum of Rs.98,643/- was remitted to Investor
Education and Protection Fund as per Sec.125 of the Companies Act, 2013
as detailed here under:

Matured and unclaimed deposits = Rs. 85,400.00

Interest = Rs. 13,243.00

Total = Rs. 98,643.00

64
 96th Year
1922 - 2018
b) However, a sum of Rs.20,000/- as on 31.03.2018 is liable under Investor
Education and Protection Fund as per Sec.125 of the Companies Act, 2013
as detailed here under:

Matured and unclaimed deposits = Rs. 20,000.00

Interest = Rs. 141.65
Total = Rs. 20,141.65

The above balance of two Deposits with interest of Rs.20,141.65 relating

to one Depositor was not remitted to Investor Education and Protection
Fund, due to legal claims pending in case in the High Court of Madras
and disputes among claimants.

b) Further, the provisions of section 125(2) of the Companies Act 2013 do not
apply, as there was no unpaid dividend pending for more than 7 years.
c) In the year under review, deposits matured up to 31st March 2018 and
remaining unpaid is included under unsecured Loans as the same may be
renewed or refunded in the subsequent months. The Company has taken
necessary steps for repayment/renewal of these deposits. Out of
Rs.1,92,71,914/- representing 515 accounts and a sum of Rs.61,64,001/-
representing 121 accounts have since been renewed or repaid up to
15.06.2018.
(n) Managerial Remuneration
The Directors have waived their remuneration for the year 2017-18
(o) Auditor's Remuneration includes:

2017-2018 2016-2017
PARTICULARS Rs. Rs.
Statutory Audit 75,000 75,000
Tax Aduit (Paid) 45,000 45,000
TOTAL 1,20,000 1,20,000

(p) Related Parties Disclosure:

The Company has accepted Deposits from Directors and their
Relatives which amounts to Rs.12,05,931/- as at 31.03.2018 (Previous Year
Rs.88,316/-).
(q) Earnings Per share (EPS):
The Earnings Per Share (Rs.1/-) of the company is Re.0.10 against from
Re.0.14 from previous year.
(r) Segment Reporting:
Segment Reporting issued by the Institute of Chartered Accountants of India,
considering the nature of the Company's business and its activities/operations
which are based on financing activities, in the domestic market.

65
 96th Year
1922 - 2018
(s) General
1. The clauses relating to Inventory, Quantitative Details, Sundry Debtors,
Sundry Creditors and Payables to SSI Units are not applicable to the Company.
2. Accounts Receivable:
D.V. Balasubramaiam : Rs.3,53,100/-
The Fund has filed E.P. at City Civil Court, Chennai and the same has been
numbered as 3141/2005 and the notice has been sent to D.V.
Balasubramanian. The said D.V. Balasubramanian has entered appearance
through his advocate in the E.P.No.3141/2005 and then he has filed CRP
No.1699 of 2006 and obtained interim stay of all further proceedings in the
above EP. The Respondent Counsel has filed Xerox copy of order obtained
by him in M.P.No.1 of 2006 in CRP No.1699 of 2006. Now, CRP No.1699
of 2006 was dismissed by Honorable High Court by order dated 08.10.2013.
In E.P. No.3141 of 2005 order were pronounced by Hon'ble Court and
judgment debtor Mr. D.V. Balasubramanian has to be arrested. Further steps
are being taken.
3. Advance - Capital Expenditure:
Advance of Rs.24,15,989/- towards expenses for Sale of Building is included
under Building Sale Capital Expenditure.

Vide our Report of even date A.G. RAVISHANKAR

Chairman
For P.T. PONNAIAH & Co.,
Chartered Accountants

P.T. PONNAIAH
Partner T.S. RAVISANKAR
ICAI Membership No. 019873 N.M. MANIVANNAN
Firm Regn. No. 002669-S Whole Time Directors

V. RAGHUPATHI
M.A. LAKSHMIPATHI

P. P. DHANDAPANI
G.S. VENKATARAMAN
E. SAKTHI AISVARYA

Directors

Chennai - 600 084.

Date : 23.06.2018.

66
 96th Year CIN : U65992TN1922PLC001974
1922 - 2018

The Purasawakum
Permanent FFund
und Limited
(Established - 1922)
PROSPERITY Regd. Office : "APPADURAI BUILDINGS" No.174 & 177,
SERVICE Vellala Street, Purasawalkam, Chennai - 600 084.
SECURITY Phone : 044 - 2642 3203, 2642 1212
e-mail : theppf@gmail.com Web : www.ppfnidhi.com

PROXY FORM - MGT 11

[Pursuant to Section 105(6) of the Companies Act, 2013 and rule 19(3)
of the Companies (Management and Administration) Rules 2014]

Name of the Member

Registered Address

Email id

Folio ID/Client ID No.:

I/ We being the member(s) holding .............................................. shares of the above

named Company hereby appoint:
(1) Name : ...................................................................................................
Address : ...................................................................................................

E-mail Id : ....................................Signature .................... or failing him/her

(2) Name : ...................................................................................................

Address : ...................................................................................................
E-mail Id : ....................................Signature .................... or failing him/her

(3) Name : ...................................................................................................

Address : ...................................................................................................
"

E-mail Id : ....................................Signature ................................................

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 96th Annual
General Meeting of the Company to be held on the on Wednesday 25th July, 2018 at 9.00 a.m. at
"Hotel Palmgrove" No. 13, Kodambakkam High Road, Nungambakkam, Chennai - 600 034 and at an
any adjournment thereof in respect of such resolutions, in the manner as are indicated below(s).

67
 96th Year
1922 - 2018
Resol Type of Optional
ution Resolution
Nos. Resolution For Against
ORDINARY BUSINESS
1. Adoption of Accounts Ordinary
2. To declare dividend on Equity Shares
(The Board of Directors have recommended a
dividend at 5% on Equity Shares) Ordinary
3. Re-appointment of Thiru. N.M. MANIVANNAN,
(DIN:00157036) who retires by rotation and
being eligible offers himself for reappointment Ordinary
4. Re-appointment of Thiru. V. RAGHUPATHI,
(DIN:0039344) who retires by rotation and
being eligible offers himself for reappointment Ordinary
5. Re-appointment of Thiru. T.S. RAVISANKAR,
(DIN:00900542) who retires by rotation and
being eligible offers himself for reappointment Ordinary
6. Re-appointment of Statutory Auditor
M/s P.T. Ponniah& Co., Ordinary
SPECIAL BUSINESS
7. Appointment of Dr. E. SAKTHI AISVARYA,
(DIN:07267018) as Director Ordinary
8. Re-appointment of Thiru. T. S. RAVISANKAR,
(DIN: 00900542) as Whole Time Director and
to fix remuneration payable. Special
9. Re-appointment of Thiru. N.M. MANIVANNAN
(DIN: 00157036) as Whole Time Director and
to fix remuneration payable. Special
10. Alteration of Articles of Association of the
Company. Special

Signed this ………… day of July 2018

Affix
Re.1/-
Revenue
Stamp

Signature of the Shareholder(s) Signature of the Proxy holder (s)

NOTES:
1. This form of proxy, in order to be effective, should be duly completed and deposited at the Registered Office of the
Company, not less than 48 hours before the commencement of the Meeting.
2. For the Resolutions, Explanatory statements and Notes, please refer to the Notice of the 96th AGM.
3. It is optional to put "3" mark in the appropriate column against the Resolution indicated in the Box. If you leave the ‘For’
or ‘Against’ column blank against any or all Resolutions, your proxy will be entitled to vote in the manners he/she thinks
appropriate.
4. Please complete all the details including details of member (s) in the above box before submission.
5. Members may note that a person shall not act as a proxy for more than 50 members and holding in aggregate not more
than 5% of the total voting share capital or the Company. A single person may act as a proxy for a member holding more
than 10% of the total voting share capital of the Company provided that such person shall not act as proxy for any other
person. The voting power of such proxy holder shall however be restricted to 5% of the total voting Share Capital of the
Company.

68
 96th Year
94th CIN : U65992TN1922PLC001974
1922 - 2018
2016

The Purasawakum
Permanent FFund
und Limited
(Established - 1922)
Regd. Office : "APPADURAI BUILDINGS" No.174 & 177,
PROSPERITY Vellala Street, Purasawalkam, Chennai - 600 084.
SERVICE
SECURITY
Phone : 044 - 2642 3203, 2642 1212
e-mail : theppf@gmail.com Web : www.ppfnidhi.com

ATTENDANCE SLIP

(Please complete this Attendance Slip and hand it over at the

entrance of the meeting hall)

Folio No/Customer ID...................................

I hereby record my presence at the 96th Annual General Meeting

of the Company being held on Wednesday 25th July 2018 at 9.00

a.m. at "HOTEL PALMGROVE" No. 13, Kodambakkam High Road,

Nungambakkam, Chennai - 600 034.

Name of the Shareholder:.............................................................

Name of the Proxy :......................................................................

(To be filled in case the proxy attends instead of shareholder)
"

..................................................................
Signature of the Shareholder / Proxy

69