ANNUAL REPORT 2016 -2017
Annual Report 2016-2017
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Dream big. Start small. But most of all, start.
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INNOVATE. TRANSFORM Today, we are witnessing transformation in fundmentals of entrepreneurial eco-system. This transformation impacts directly the functioning of the start-ups. And this scenario necessitates that we too innovate our strategies and transform ourselves to adopt to the ever-changing environ. Our strategy for the year focussed on both innovation and transformation. Innovation involves re-thinking of existing systems and processes. It implies a need to renew our existing deliverables, such as, academic programs, mentoring,start-up sessions, pitch presentations and investment strategies. Significant transformation shall be endeavoured by leveraging technology and deep engagement with the start-up community. Innovation and transformation involves new ways of engagement and understanding the changing eco-system. We are into building strategic alliances with bodies and organizations with similar objectives, such as, educational institutions, incubators, accelerators, co-working spaces, entrepreneur forums, industrial associations and professional consultants. This ensures improving our operational excellence. Right from its inception, Nativelead always has a culture of continuous learning. This fundamental and unique capability enables us to adopt change and thereby, augment the value creation for the start-up eco system. Our deep culture of learning is the vital key of our innovation and transformation strategy.
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Annual Report 2016-2017
ABOUT NATIVELEAD Nativelead Foundation was founded in the year 2012. Earlier, CII – Madurai Zone came forward to launch Nativelead as skill development initiative. Leading industrialists, R.Dinesh, JMD of TVS & Sons, Karumuttu T Kannan, MD of Thiyagarajar Mills, K.S.Bharath, Chairman of Aparajitha, Dr S.Aravind, ED of Aravind Eye Care Systems, Mr Ligi George, MD of Madras Suspensios, Mr M.D.Vel, MD of Indian Foods and other industry leaders took a keen interest in the initiative, giving the foundation the requisite impetus. And, at earlier stages SAP Labs allocated reasonable grants as part of its CSR program which helped the Foundation in executing and expanding its operations. Later, Mr Nagaraja Prakasam and Mr K.Pandiarajan of MaFoi, both from South TamilNadu and had established themselves elsewhere associated with Nativelead, a turning point in Nativelead’s journey. Nagaraja Prakasam’s expertise as an Angel Investor and start-up eco-system activist helped formulating a professional model that’s adoptable to the native eco-system. This unique model works on four pronged strategy – Enabling, Nurturing, Incubating and Investing. The Foundation has sensitised around 25000 students and 100 + start-ups since its inception. The investment division now operates as separate company, viz., Native Angel Network Association (NAN) launched in the year 2015. NAN currently has four chapters spread across Tamilnadu with a membership of 160+ angels and another two chapters in pipeline. Around 10 pitches have been held in various chapters with over 20 entrepreneurs presenting their ideas. Of the presented ideas, three have been funded with to the tune of INR 110.00 lacs as on date. We are continuously in the process of growing and improving our geographical presence to ensure enhanced engagement! 4
FY 2017 AT A GLANCE
9.52
28.32
INR Lakhs
NLF Income
INR LAKHS
NAN INCOME
7,500 +
240 +
STUDENTS REACHED
START-UPS REACHED
41
ACADEMY PROGRAMS
58
START-UP PROGRAMS
MEMBERSHIP 34 % Erode 29 % Madurai
30 % Coimbatore
19 INVESTORS ENROLLED
7% Trichy
4 PITCH
INVESTMENT 70 % Erode 25 % Coimbatore
5 % Madurai
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SESSIONS
Annual Report 2016-2017
CONTENTS Message from CEO
7
Founding Team
9
Advisory Committee
9
Central Executive Committee
10
Official Consultants
10
Vision, Mission, Strategy & Impact
11
Key Trends
12
A Glimpse at Major Activities of 2016 - 17
14
Native Angel Network Association
20
Financial Report
22
• Nativelead Foundation • Native Angel Network Association
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Sivarajah Ramanathan
Founder & CEO
This is the 5th year of Nativelead and it has been extraordinary! Over the years we have worked on multiple initiatives to strengthen our delivery capability and be focussed execution and delivery. The journey of getting better and being better embodies the spirit of continuous innovation and transformation to remain relevant through changing times. Our innovative strategies without deviating from our basics has revitalized the institution and has reflected in an enormous upsurge in investors and start-ups. In 2014, Madurai’s native entrepreneurs proved their commitment, when around 30 enthusiasts came forward to participate in this initiative as native based angels to address the capital needs of the entrepreneurs from Tier II & III regions. In 2015, we launched a separate investment company Native Angel Network Association, as part of our innovative strategy and to adhere to statutory requirements. The investment arm started as a single chapter in Madurai with around 30 investors has made tremendous growth and now has four chapters with 160+ investors. Throughout its journey, Nativelead has focussed on its objectives - this the glue that bonds all our stakeholders, namely, founders, advisors, investors, mentors & start-ups and connects the foundation to the broader entrepreneurial community. Sivarajah Ramanathan
Founder & CEO
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Annual Report 2016-2017
In a constant changing start-up eco-system where innovation and transformation are the trailblazers we stand ahead committed to make a difference
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Founding Team
Nagaraja Prakasam Mafoi K Pandiarajan Co-founder & Vice-Chairman
Co-founder & Chairman
Sivarajah Ramanathan
V A Palanikumar Co-founder
Founder & CEO
Advisory Committee
Karumuttu T Kannan Thiagarajar Mills Limited
R Dinesh
TVS Logistics Services Limited
Dr Aravind Srinivasan
Bharath Krishna Sankar Aparajitha Corporate Services P Limited
Mridula Ramesh
Aravind Eye Hospitals
Sundaram Textiles Limited
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Annual Report 2016-2017
Central Executive Committee
K Hari Thiagarajan
Arjun Prakash
Thiagarajar Mills Limited
Anand Thangaraj
Effica Autiomation Limited
S S Auto Mart P Limited
Nagaraja Prakasam Angel Investor
Prative Chend CARE Group of Institutions
R Edwin Samuel Pearl Shipping Agencies
S Susindran Key Ventures P Limited
Sivarajah Ramanathan Founder & CEO
Official Consultants
P Arockiasamy Chartered Accountants
R Kannan
Baskar Perumal
RKRV & Associates
LexHive Consultants
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Mohamed Syed Management Consultant
VISION, MISSION, STRATEGY & IMPACT VISION To achieve inclusive growth through entrepreneurial success in non-metro regions
MISSION Building and continuously improving the components of new age entrepreneurial ecosystem in the focused geographies
STRATEGY 1. Enabling: This is the process of changing the thought process of youngsters to bring out the innovators and entrepreneurs in them. Enabling will happen in colleges, schools and also with the mainstream youth. They will be motivated to come up with potential ideas which can be converted into a marketable product or concept. 2. Nurturing: During this stage, the ideas are validated and consolidated. Viable ideas are taken up for mentoring and later turned into innovative products or ventures. In short, this is the filtering and firming-up stage for ideas. 3. Incubating: This is where an idea takes its first step towards reality. A viable idea when put into the incubation phase is provided with the support necessary to transform it into a commercial venture. 4. Investing: Ventures in the incubation phase will be referred to potential Angel Investors for investment consideration. Adequate investment at the right time is essential for a venture to sustain and grow.
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Annual Report 2016-2017
Key Trends
IMPACT
INCOME - NATIVELEAD (INR lakhs)
• Prevention of Native Brain Drain • Prevention of Urbanization
2015
35.96
• Local Employment creation
2016
53.34
• Creating more native brands
2017
9.52
• Creating more native intellectual properties • Arresting outflow of local money
ACADAMY PROGRAMS
41
• Attracting inflow of external money
39
• Continuous growth of entrepreneurial culture
33
• Global relationships to our city • Access to technology • Access to funds • Access to mentoring
201
5
• Access to business incubation facilities
201
6
201
7
• Access to knowledge • Access to media
START - UP PROGRAMS
• Access to governments • Access to new markets • Access to corporate establishments • Access to top industry leaders • Access to business & social forums
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2015
16
2016
32
2017
58
PITCH SESSIONS
4
INCOME - NAN
(INR lakhs)
3
28.3
2
2
23.97
201
5
201
201
7
6
STUDENTS REACHED 7700
2015
7800
2016
7500
2017
START-UPS REACHED
240 185
90
17
20
16
20
15
20
13
201
6
201
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Annual Report 2016-2017
A Glimpse at Major Activities of 2016 - 17
› Mr Venkateswaran Idea Shaping
Launch of Native Start-up Circle Native Start-up Circle (NSC), an initiative by Nativelead was launched at Madurai on 09-April-2016. Mr.Kunal Upadhyay, Chief Executive, Centre for Innovation Incubation and Entrepreneurship (CIIE), IIM, Ahmedabad formally inaugurated the same. He lauded the initiative and mentioned that investors taking up the role of mentorship is a unique model. The objective is to provide a platform for the start-ups from this region to interact among themselves, share ideas & experiences, conduct lectures, training sessions and similar events. Mr Hari Thiyagarajan, Thiyagarajar Mills and Mr Nagaraja Prakasam, Angel Investor also spoke on the occasion.
› Mr Nagaraja Prakasam Launch of Native Start-up Circle
Start-up Session; Promoting Entrepreneurship An interactive session with start-ups was held at Erode on 07-June-2016. Mr Kannan of Kongu TBI gave an introduction and mentioned that the idea was to inculcate a culture of entrepreneurship in that region. Founder & CEO of Nativelead, Mr Sivarajah Ramanathan enlightened the start-ups on the working model of the foundation envisioned on promoting entrepreneurial spirit, particularly among the youth, by conducting need based entrepreneurship development programmes, facilitating mentorship, promoting network and enabling access to angel investor groups. He further elaborated on the road map of the foundation to meet its goals.
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Idea Shaping In order to introduce the nuances of shaping an idea into viable business model to the emerging and potential start-ups, Nativelead conducted a knowledge session at Erode on 23-July-2016. Mr Venkateswaran of Venbro Polymers had an enlightening interaction with young start-ups. He explained the basics on conversion of an idea into business model. He also elaborated on the various business models and the ways for choosing the apt one.
Session on Product Market Fit Nativelead had the pleasure of having Mr Karthick Chandrasekar, a management professional with around 12 years of experience in fund management and investment processes. He is currently Partner at Sangam Ventures, New Delhi & Co-founder of Lexstart Consultants, Mumbai for a start-up session at its Madurai office on 23-June-2016. He had and an enlightening interaction with the entrepreneurs titled ‘Product Market Fit’ that delved into the demands of market and the ways to devise the right strategies to fit a product / service into the prevailing marketing environ
Start-up Session; Idea Generation to Biz Model A start-up meet titled ‘Idea Generation to Biz Model’ was held at Coimbatore on 22-October-2017. This session by Mr Nagaraja Prakasam delved about identifying the right idea. According to him, a right idea is a one that approaches a problem and changes the mundane way of doing things through innovative solutions. Transforming the idea into a working business model is a skill that any entrepreneur is to master. Further, he also stressed the significance of perseverance in that activity. Later, he had a one-to-one interaction with the participants responding their queries and doubts. The meet also enabled the start-ups • • • •
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Mentor connect Market connect Branding & promotion support Accelerator program
Annual Report 2016-2017 A booklet on mentoring guidelines was also formally released on the occasion. A panel discussion on Best Mentoring Practices was held as part of the event. Mr Nagaraja Prakkasm, Angel Investor & Mentor and Mr Manjunath, Founder, Sai Happy Farms participated. Mr Chandu Nair moderated the session.
Launch of Native Mentor Circle - Coimbatore Coimbatore chapter takes credit for launching the second Native Mentor Circle. The forum was formally launched on 17-November-2016 with the similar objectives and working model of the first forum at Madurai. It was an honour to have Mr Chandu Nair, Entrepreneur, Angel Investor and Advisor as the chief guest, who delved on the Do’s and Don’ts of mentoring. A mock mentoring session was simulated with a real time mentee was held. A booklet on Guidelines on Mentoring was also released on the occasion.
Launch of Native Mentor Circle - Erode Erode chapter launched the third Native Mentor Circle on 25-November-2016. As with the earlier forums launched by Madurai and Coimbatore chapter it is proposed to enrol entrepreneurs, professionals, investors and academicians in the forum. Guidelines on Mentoring was also released and the first copy was received by Mr VPS Radhakrishnan and Mr Karthikeyan Thangavel. A mock mentor – mentee session was held with the participation of Mr Nagaraja Prakasam and Mr Baskaran, NativeSpecial, Karur.
Launch of Native Mentor Circle - Madurai Nativelead launched Native Mentor Circle (NMC) at Madurai on 26-November-2016 a mentoring forum in line with its strategy of nurturing and incubating native based start-ups. The ultimate goal is to provide consistent exposure to business knowledge, technology and market to start-ups in Tier II & III centres. The foundation was pleased to have Mr Chandu Nair, Entrepreneur, Angel Investor and Advisor as the chief guest. It is proposed to comprise the forum with experienced and qualified entrepreneurs, professionals, investors and academicians.
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Session on Idea Validation
Mr. Praveen Sekar Session on Idea Validation
A knowledge session was held at Coimbatore on 25-March-2017. Mr Praveen Sekar Chairman and CEO of Angel KREA and social investor had an enlightening interaction with the start-ups wherein he educated the audience in the topic “Idea Validation and Value Creation for Start-ups”. Speaking at the session Mr Praveen Sekar said, “We would never purchase any product, for example, a car by just walking into the showroom. A lot of analysis and market research goes behind every purchase, and that’s “Validation of Ideas”. He further stressed that “working on assumptions is the biggest mistake any start-up or entrepreneur does”.
A lot of analysis and market research goes behind every purchase, and that’s
“Validation of Ideas”.
My Story – Success Story of Native Entrepreneur Nativelead had the privilege of organizing a session addressed by Mr Sampath, Managing Director, Ruby Food Products P Ltd in association with Madurai District Tiny and Small Scale Industries Association (MADITSSIA) at Madurai on 31-March-2017. While sharing the experiences of his entrepreneurial journey with the audience he also highlighted the various hurdles an entrepreneur has to face and ways to overcome the same. He appreciated the role played by institutions like Nativelead, MADITSSIA, etc in fostering entrepreneurship.
› Mr. Chandu Nair Launch of Native Mentor Circle - Coimbatore
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Annual Report 2016-2017
Membership
Native Angel Network Association
O
As the only angel network operating in Tier II and Tier III regions from this part of the country, Native Angel Network has made available early stage funding to entrepreneurs of these regions. Our extensive network of chapters, passionate investors, unique model of combination and investment, collaboration with larger networks and successful track record has made us a preferred choice of small and medium entrepreneurs from Tier II & III regions.
ur angel network strength has reached 163 members in FY ’17. The membership rise is manifold and the growth was broad based across all regions and chapters. The growth in membership over the years has been driven by extension of our footprint. Over the years, we are in the process of building a strong native based investor network to enable identifying and connecting budding start-ups with angel investors of Tier II & III regions. In doing so we are furthering our mission of providing stress-free access of angel funding to aspiring and potential small town entrepreneurs.
Madurai
Coimbatore
Hospital Mirror Simplicity Inventivo Take-a-Selfie Makkal Auto
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Inventivo
D
Pitch Sessions
uring the year, we held four pitch sessions – one at Coimbatore, two at Erode and one at Madurai. Ten startups made presentations and five were shortlisted for further processing, namely, nativespecial.com, iEdutopia, V-clean, Inventivo and Take-a-Selfie. As part of the process, specific lead investors were assigned to the selected start-ups to coordinate with the entrepreneurs. On further vetting of the shortlisted ventures, nativespecial. com was selected for investment.
Investments Nativespecial.com an ecommerce portal that creates a supply chain to cater traditional
snacks
to
a
market
throughout India and global Indians, was the
Erode
Status
one that was finalized for investing. With
Circkathon
Declined
exponential
iEdutopia
Shortlisted
Nativespecial.com
Shortlisted
Ve-clean
Shortlisted
increase in population migration there is an increase
in
number
of
people who look forward to connect with their traditional taste and Nativespecial. com’s delivery model is targeted to utilize this emerging huge market opportunity. The ask money was INR 50.00 lacs and the
On-track
investment was made in association with
Pending
made INR 31.50 lacs and the balance was
Indian Angel Network (IAN). Our investors
Inventivo
Shortlisted
made by IAN investors. The due-diligence
Take-a-Selfie
Shortlisted
Holder Agreement was signed. The invest-
Makkal Auto
On-track
ment is to be made in two equal tranches.
Foodly
On-track
successfully.
process was completed effectively and a Share
The first tranche has been completed
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Annual Report 2016-2017
Pitch Presentation Contest, Erode:
Start-up Mania
N
ative Angel Network Association conducted the first annual Pitch Contest for Erode chapter in association with Young Indians (Yi), Confederation of Indian Industry, Erode. The preliminary round was held at Kongu TBI, Erode on 25,Feb2017. The jury panel included representatives from Yi and NAN. The contest was held in two categories, namely, Students and Mainstream. 210 students and 25 mainstream start-ups participated in the first round. Of which, five students and five mainstream start-ups were shortlisted for the final round. The final round was held on 11-March-2017. ‘IoT Enabled Smart Shopping Cart’ and ‘Neotez’ were adjudged winners and runners respectively in mainstream category. Similarly, ‘L-spot’ for posture tracking and drones for civil engineering were the winners and runners in stusent category. Mr Kulesekaran, Assistant Manager, SIDBI, Erode was the chief guest. Mr Anand Thangaraj and Mr D Venkateewaran of NAN, Mr M Chinnaswamy of CII and Mr Yogesh Kumar of Yi also spoke on the occasion. As part of the event, an enlightening panel discussion was held and moderated by Mr Sathya Kumar, Economic & Public Policy Thought Leader. Mr K Premnath, Point Perfect Technologies, Dr Madhan Kumar, ICliniq and Mr Saravanan, 945 Signals were the panellists.
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Pitch Presentation Contest, Madurai:
Aarambam
T
he third edition of Aarambam, annual Pitch Contest at Madurai by Native Angel Network and Young Indians (Yi), Confederation of Indian Industry, Madurai started with the preliminary round being held on 18-February-2017. The total registration for both student and mainstream category was around 110, and 15 each for student and mainstream categories were shortlisted for the preliminary round. The jury comprising NAN and Yi members selected 12 students and 6 mainstream start-ups for the next and final round. The same was conducted on 01-March-2017. Mainstream start-ups ‘Indian Farmers’ Market’, an online marketplace for farm produce and ‘Sportice’, a platform for aggregation and registration of sport events were adjudged has winners and runners respectively. In the student category, ‘Mystic’, an android app for differently abled, ‘Swayam’, learning facilitator through work and a semi-automatic groundnut harvesting machine were announced as winners and runners. Mr Sandeep Nanduri, Commissioner, Madurai Municipal Corporation and Mr P Mahendravel, prominent businessman were the chief guests at the valedictory and prize distribution function.
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Annual Report 2016-2017
Financial Report • Native Angel Network Association
• Nativelead Foundation
22
Independent Auditor’s Report To the members of Native Angels Network Association, Madurai
Report on the Financial Statements We have audited the accompanying financial statements Native Angels Network Association, Madurai which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, Cash Flow Statement for the year ended 31st March 2017 and a summary of significant accounting policies and other explanatory information.
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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the Assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on the audit. We have taken into account the provision 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 there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, 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 true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company’s Directors, as well as evaluating the overall presentation of the financial statements.
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Annual Report 2016-2017
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) b)
in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2017; in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
c)
Report on other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2015 (the Order) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable. 2. As required by Section 143(1) of the Act, we report that; a. b. c. d. e. f. g.
We have obtained all the information and explanations which to the best of our know ledge and belief were necessary for the purposes of our audit. In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. In our opinion, Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement. On the basis of the written representations received from the Directors as on March 31, 2017 taken on record by the Board of Directors none of the directors is disqualified as on March 31, 2017 from being appointed as a Director in terms of Section 164(2) of the Act. 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’ With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. ii. iii.
The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note to the financial statements. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Place: Madurai Date: 19.06.2017 (P.Arockiasamy)
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NATIVE ANGELS ASSOCIATION NATIVE ANGELSNETWORK NETWORK ASSOCIATION
CIN : U74999TN2015NPL102426 CIN : U74999TN2015NPL102426 No-506, West 2nd Street, K.K.Nagar, Madurai-625020 No-506, West 2nd Street, K.K.Nagar, Madurai-625020
Balance Sheet as at March 2017 Balance Sheet as at March 2017 Note No
Particulars I. EQUITY AND LIABILITIES (1) Shareholders' Funds (a) Share Capital (b) Reserves and Surplus (c) Money received against share warrants (2) Share application money pending allotment (3) Non-Current Liabilities (4) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions (e) Defferred Tax Liability
(Rs.) As at 31st March 2017
1 2
3,000 1,21,586 -
3,000 1,07,072 -
-
-
7,92,046 41,369 7,005
24,35,933 72,074 2,670
9,65,006
26,20,749
5
78,972
6
74,913 -
71,752 1,31,034 -
7
6,47,800 54,121 1,09,200 9,65,006
22,74,672 96,991 46,300 26,20,749
3 4 Total
II.Assets (1) Non-current assets (a) Fixed assets (i) Tangible assets (b) Non-current investments (c ) Loans & Advances (d) Deferred tax assets (net) (e) Receivables Under Financing Activity (f) Other non-current assets (2) Current assets (a) Current investments (b) Inventories (c) Receivables Under Financing Activity (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets
As at 31st March 2016
8 9
Total The Notes referred to above form an integral part of the financial statements. As per our report of even date attached For Arockiasamy & Raj Firm Registration Number : Chartered Accountants
P. Arockiasamy Partner Membership No.018348
Director
Place : Madurai
Date : 19-06-2017
25
Director
Annual Report 2016-2017
NATIVE ANGELSNETWORK NETWORK ASSOCIATION NATIVE ANGELS ASSOCIATION
CIN ::U74999TN2015NPL102426 U74999TN2015NPL102426 CIN No-506, No-506,West West2nd 2ndStreet, Street,K.K.Nagar, K.K.Nagar, Madurai-625020 Madurai-625020 Statement of Profit and Loss for the year ended 31st31st March 2017 2017 Statement of Profit and Loss for the year ended March Note No
Particulars I. II. III. IV.
Revenue from operations Other Income
For the year ended 31st March 2017
(Rs.)
For the year ended 31st March 2016
10 11
28,31,667 75,915 29,07,582
23,97,272 23,97,272
12
22,80,095 26,681 5,73,528
13,71,750 2,436 49,800 8,14,470
28,80,304
22,38,456
27,278
1,58,816
-
-
27,278
1,58,816
8,429 4,335
49,074 2,670
14,514 -
1,07,072 -
-
-
14,514
1,07,072
Earning per equity share: (1) Basic 48.38 (2) Diluted The Notes referred to above form an integral part of the financial statements.
356.91 -
Total Revenue (I +II) Expenses: Employee benefit expense Depreciation and amortization expense Preliminary Expenses Written off Other expenses
13
Total Expenses V.
VII.
Profit before exceptional and extraordinary items and tax (III - IV) Exceptional Items ( Provision for standard Assets Reversed) Profit before extraordinary items and tax (V - VI)
VIII.
Extraordinary Items
IX.
Profit before tax (VII - VIII)
X.
Tax expense: (1) Current tax (2) Deferred tax
XI.
Profit/(Loss) from the perid from continuing operations (IX - X) After Tax Profit/(Loss) from discontinuing operations Tax expense of discounting operations Profit/(Loss) from Discontinuing operations (XII XIII)
VI.
XII. XIII. XIV. XV.
Profit/(Loss) for the period (XI + XIV)
XVI.
-
As per our report of even date attached For Arockiasamy & Raj Firm Registration Number : Chartered Accountants P. Arockiasamy Partner Membership No.018348
Director
Place : Madurai
Date : 19-06-2017
26
Director
NATIVE ANGELS NETWORK ASSOCIATION
CIN : U74999TN2015NPL102426 No-506, West 2nd Street, K.K.Nagar, Madurai-625020 NATIVE ANGELS NETWORK ASSOCIATION
CIN : U74999TN2015NPL102426
No-506, West 2nd Street, K.K.Nagar, Madurai-625020 Note 1.1 Disclosure pursuant to Note no. 6(A)(a,b & c) of Part I of Schedule III to the Companies Act, 2013 As at 31st March 2017 Number Rs.
Share Capital
As at 31st March 2016 Number Rs.
Authorised Equity Shares of `10 each
1,00,000
10,00,000
1,00,000
10,00,000
Issued Equity Shares of ` 10 each
300
3,000
300
3,000
Subscribed & Paid up Equity Shares of ` 10 each fully paid
300
3,000
300
3,000
Subscribed but not fully Paid up Equity Shares of `10 each, not fully paid up
-
-
-
-
300
3,000
300
3,000
Total
Note 1.2 Disclosure pursuant to Note no. 6(A)(d) of Part I of Schedule III to the Companies Act, 2013 Particulars Shares Shares Shares Shares
outstanding at the beginning of the year Issued during the year bought back during the year outstanding at the end of the year
Equity Shares Number Rs. 300 300
3,000 3,000
Note 1.3 Disclosure pursuant to Note no. 6(A)(g) of Part I of Schedule III to the Companies Act, 2013 (if more than 5%) Name of Shareholder A.Palani Kumar K.Pandiarajan Nagaraja Prakasam
As at 31st March 2017 As at 31st March 2016 No. of % of No. of Shares % of Holding Shares held Holding held 33.34% 33.34% 100 100 33.33% 33.33% 100 100 33.33% 33.33% 100 100 300 100% 300 100%
27
Annual Report 2016-2017
NATIVE ANGELS NETWORK ASSOCIATION NATIVE ANGELS NETWORK ASSOCIATION
CIN : U74999TN2015NPL102426 CIN2nd : U74999TN2015NPL102426 No-506, West Street, K.K.Nagar, Madurai-625020
No-506, West 2nd Street, K.K.Nagar, Madurai-625020 Note No
( Rs.)
Particulars
For the year ended 31st March 2017
2 Reserves and Surplus Surplus Opening Balance Add:current year surplus
1,07,072 14,514 1,21,586
1,07,072 1,07,072
-
49,800
22,500 1,21,746 6,47,800
58,000 53,461 22,74,672
Total
7,92,046
24,35,933
Total
23,000 16,764 1,605 41,369
23,000 49,074 72,074
74,913
1,31,034
Total
74,913
1,31,034
Total
6,47,800 6,47,800
22,74,672 22,74,672
Total
52,291 1,830 54,121
90,684 6,307 96,991
1,09,200 -
16,300 30,000
1,09,200
46,300
3 Other current liabilities Loans & Advances Native Lead Foundation Duties & Taxes Service Tax Payable TDS Payable Membership Subscription
4 Short-term provisions Audit Fee Payable Staff Salary Payable Income Tax Payable
6 Loans & Advances Staff Loans / Advances
7 Current Investments Fixed Deposits
8 Cash and cash equivalents Balances with banks Cash on hand 9 Other Current Assets Sundry Debtors Advance Tax
For the year ended 31st March 2016
Total
28
NATIVE ANGELS NETWORK ASSOCIATION
CIN : U74999TN2015NPL102426 No-506, West 2nd Street, K.K.Nagar, Madurai-625020
10 Revenue from Operations Membership Subscriptions Incubation Charges Registration Charges Service Charges-Incentive Total 11 Other Income FD - Interest income Total 12 Employee Benefits Expense (Salary & Allowances) Salary Expenses Incentives Staff Welfare Expenses Total
27,49,208 69,564 600 12,295
22,74,672 1,22,600
28,31,667
23,97,272
75,915
-
75,915
-
21,86,667 45,000 48,428
13,46,750 25,000 -
22,80,095
13,71,750
NATIVE ANGELS NETWORK ASSOCIATION CIN : U74999TN2015NPL102426 No-506, West 2nd Street, K.K.Nagar, Madurai-625020 NOTE : 5 - TANGIBLE ASSETS SCHEDULE AS PER COMPANIES ACT, 2013 Original Cost of the Assets Sl No
Date
Asset
Depreciation
Accumulat Deprecia No ed Closing tion Opening of Depreciati Balance as Rate Balance as Addition Deleti Days on as on on SLM (%) on 1.4.2016 on as on 31.3.2017 1.4.2016 23,688 23,688 31.67% 365 943
Depreciati on Charged to Profit & Loss Account 7,502
Deprecia tion on assets sold During the year -
Accumulat WDV as ed on Depreciati on as on 31.03.2017 as on 31.3.2017 8,445 15,243
1
15-02-2016 Laptop
2
03-02-2016 Printer
22,500
-
22,500
31.67%
365
1,129
7,126
-
8,255
14,245
3
17-03-2016 Computer
28,000
-
28,000
31.67%
365
363
8,868
-
9,231
18,769
4
05-04-2016 LED TV
9.50%
361
-
3,185
-
3,185
30,715
2,435
26,681
-
29,116
78,972
Total
74,188
33,900
-
33,900
33,900
-
1,08,088
29
Annual Report 2016-2017
NATIVE ANGELS NETWORK ASSOCIATION
CIN : U74999TN2015NPL102426 No-506, West 2nd Street, K.K.Nagar, Madurai-625020
13 Other Expenses Consultancy and Professional Charges Audit Fee Bank Charges Conveyance Expenses Design Updated Expenses Data Card Expenses Donation Paid Guest Expenses Telephone / Internet Expenses Office Expenses Acessories / Service - Office Meeting Expenses Postal & Courier Printing & Stationery Promotional Expenses Repair & Maintanence Training / Programme Expenses Acessories / Service - System Conference Call Charges Travelling Expenses Event Expenses Filing Fees-ROC Interest on TDS & Income Tax Website Registration / Renewal Miscellaneous Expenses
Total
30
22,000 20,000 3,900 51,652 7,500 - 15,500 9,157 17,581 10,500 18,985 10,019 4,953 32,457 - - 11,500 16,640 3,199 1,35,122 1,58,105 1,600 2,727 3,247 17,184
4,25,000 23,000 856 6,060 2,849 1,000 3,860 16,759 1,75,753 1,000 31,848 6,392 3,102 1,12,931 4,060 -
5,73,528
8,14,470
Independent Auditor’s Report To the members of Nativelead Foundation, Madurai
Report on the Financial Statements We have audited the accompanying financial statements Native Angels Network Association, Madurai which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss for the year ended 31st March 2017 and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Society in accordance with the Accounting Standards of ICAI. This responsibility includes the design, implementation and maintenance of internal control 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.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on the audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, 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 control relevant to the Society’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, 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.
Opinion In our opinion and to the best of our information and according to the explanations given to us, the 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) b)
in the case of the Balance Sheet, of the state of affairs of the Society as at March 31, 2017; in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and
Place: Madurai Date: 19.06.2017 (P.Arockiasamy)
31
Annual Report 2016-2017
NATIVE LEAD FOUNDATION, MADURAI
No-506, West 2nd Street, K.K.Nagar, Madurai-625020 NATIVE LEAD FOUNDATION, MADURAI Balance Sheet as at March 31, 2017 No-506, West 2nd Street, K.K.Nagar, Madurai-625020 BALANCE SHEET AS AT MARCH 31, 2017
LIABILITIES
Schedule
General Fund TDS Payable
1 2
As at March 31, 2017 Rs. Rs. 16,94,210 16,94,210
ASSETS 3
Fixed Asset
1,41,330
Loans & Advance Rent Advance Advances - Native Angles Network Association
4,00,000 89,985
4 5 6
Programme Advance Fixed Deposit TDS Receivable
10,00,000 8,222
Closing Balance Cash on Hand Cash at Bank
3,325 51,348
54,673 16,94,210
For Arockiasamy & Raj Firm Registration Number : 006850S Chartered Accountants P.Arockiasamy Partner Membership No.018348
Founder Trustee
Place : Madurai Date : 28.06.2017
32
Trustee
NATIVE LEAD FOUNDATION, MADURAI
NATIVE LEAD FOUNDATION, No-506, WestMADURAI 2nd Street, K.K.Nagar, Madurai-625020 No-506, West 2nd Street, K.K.Nagar, Madurai-625020 Receipts and Payments Accounts Accounts
For the year of March31, 2017 INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2017 Year Ended March 31, 2017 Income
Schedule 7
Donation Received Training Fees
Rs. 7,43,000 1,00,000
Sundry Income
350
Interest Income SB Interest
5,811
FD Interest
1,03,122 9,52,283
Expenditure Programme Cost
8
Administration Cost
9
10,14,558 7,70,438
Depreciation
3
44,474 18,29,470
Excess of Expenditure Over Income
(8,77,187)
For Arockiasamy & Raj Firm Registration Number : 006850S Chartered Accountants P.Arockiasamy Partner
Founder Trustee
Membership No.018348 Place : Madurai Date : 28.06.2017
33
Trustee
34
Place : Madurai Date : 28.06.2017
P.Arockiasamy Partner Membership No.018348
Firm Registration Number : 006850S Chartered Accountants
For Arockiasamy & Raj
Receipts Opening Balance Cash on Hand Cash at Bank Donation Received Training Fees Sundry Income Interest Income SB Interest FD Interest Fixed Deposit Matured Programme Advance Advance Received Native Angles Network Association Tax Deducted at Source - Collected 5
7
Schedule
47,34,171
5,61,850 27,820
1,08,933 13,75,000 5,86,080
12,31,138 7,43,000 1,00,000 350
Founder Trustee
5,811 1,03,122
6,508 12,24,630
Rs.
Closing Balance Cash on Hand Cash at Bank
TDS on Interest TDS on Professional Fees Programme Advance Advance Paid Native Angles Network Association Tax Deducted at Source- Remitted Fixed Deposit Invested
Payments Programme Cost Administration Cost
No-506, West 2nd Street, K.K.Nagar, Madurai-625020 RECEIPTS AND PAYMENTS ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2017
NATIVE LEAD FOUNDATION, MADURAI
5
Schedule 8 9
3,325 51,348
Trustee
Rs.
47,34,171
54,673
5,12,250 38,970 17,50,000
5,222 3,000 5,85,060
Rs. 10,14,558 7,70,438
No-506, West 2nd Street, K.K.Nagar, Madurai-625020 Receipts and Payments Accounts Accounts For the year of March31, 2017
NATIVE LEAD FOUNDATION, MADURAI Annual Report 2016-2017
35
Computer
Tally ERP Software
5
6
Total
Laptop
60% Block
Camera
4
3
Furniture
2
15% Block
Executive Table
10% Block
Particular
1
S.No
1,85,804
3,600
25,642 21,960
5,847
98,380
30,375
Balance as on 01.04.2016
Schedule No . 3- Fixed Assets
Used More than Used Less than 180 days 180 days
Addition During the year
1,85,804
3,600
-
21,960
25,642
-
-
5,847
98,380
30,375
Total
60%
60%
60%
15%
10%
10%
44,474
2,160
13,176
15,385
877
9,838
3,038
Rate (%) Depreciation
1,41,330
1,440
-
8,784
10,257
-
-
4,970
-
88,542
27,338
Balance as on 31.03.2017
NATIVE LEAD FOUNDATION, MADURAI NATIVE LEAD FOUNDATION, MADURAI No-506, West 2nd Street, K.K.Nagar, Madurai-625020 No-506, West 2nd Street, K.K.Nagar, Madurai-625020 Schedule forming parts of Accounts SCHEDULE FORMING PARTS OF ACCOUNTS
Annual Report 2016-2017
NATIVE LEAD FOUNDATION, MADURAI
NATIVE LEAD FOUNDATION, MADURAI No-506, West 2nd Street, K.K.Nagar, Madurai-625020
forming parts of Accounts No-506, West 2nd Street,Schedule K.K.Nagar, Madurai-625020
SCHEDULE FORMING PARTS OF ACCOUNTS Year Ended March 31, 2017 Schedule No.1 General Fund Balance as on 01.04.2016 Less : Excess of Expenditure Over Income
25,71,397 (8,77,187)
16,94,210 16,94,210
Schedule No. 2 TDS Payable Balance as on 01.04.2016 Add : Collected during the year
11,150 27,820 38,970 (38,970)
Less : Remitted during the year
-
Schedule 4 Advances - Native Angles Network Association Balance as on 01.04.2016 Add : Paid during the year Less : Repaid during the year
49,600 5,12,250 5,61,850 (5,61,850)
-
Schedule No. 5 Programme Advance
Balance as on 01.04.2016
Payments
Receipts
Balance as on 31.03.2017
Sathish Kumar
32,750
1,32,950
1,16,700
49,000
Stalin Jacob
(2,804)
1,66,125
1,34,326
28,995
Venkadeswari
14,600
89,200
63,249
40,551
Sivarajah
11,459
1,96,785
2,36,805
V.A.Palani Kumar
35,000 91,005
5,85,060
35,000 5,86,080
(28,561) 89,985
Schedule No.6 Fixed Deposit (Refer Annexure A) Balance as on 01.04.2016
6,25,000
Add : Invested during the year
17,50,000 23,75,000
Less : Matured During the year
(13,75,000)
10,00,000 10,00,000
36
37
Indian Bank
Indian Bank
Indian Bank
Indian Bank
Indian Bank
2
3
4
5
Name of the Bank
1
Sl.No
ANNEXURE - 1 FIXED DEPOSIT
6493125151
6424660054
6424659628
6424659800
6424659185
Account Number
NATIVE LEAD FOUNDATION, MADURAI No-506, West 2nd Street, K.K.Nagar, Madurai-625020
10,00,000
5,00,000
1,25,000
1,25,000
1,25,000
1,25,000
Deposit Amount
5,00,000
04-01-2017
10,00,000
1,25,000
1,25,000
1,25,000
1,25,000
Maturity Amount
29-03-2016
29-03-2016
29-03-2016
29-03-2016
Deposit Date
04-01-2018
29-03-2017
29-03-2017
29-03-2017
29-03-2017
Maturity Date
No-506, West 2nd Street, K.K.Nagar, Madurai-625020 Annexure - 1 Fixed Deposit
NATIVE LEAD FOUNDATION, MADURAI
6.50%
7.25%
7.25%
7.25%
7.25%
Interest (%)
No.506, Ist floor West IInd street, K.K.Nagar, Madurai -20 Tel : +91 452 4390410 Email : admin@nativelead.org Web : www.nativelead.org