SARALA DEVELOPMENT & MICROFINANCE PRIVATE LIMITED

184, ANDUL STATION ROAD, JHOREHAT, HAORA– 711 302.

MINUTES OF THE SEVENTH MEETING OF THE ASSET LIABILITY MANAGEMENT

Meeting No.-19th Meeting (since Committee constituted)

PRESENT: DESIGNATION

1. Mr. Pranab Rakshit Committee Member

PRESENT IN ATTENDANCE:

Rohit Kumar Singh Company Secretary & Compliance Officer

MATTERS DISCUSSED AT THE MEETING

ITEM NO. 1

Election of the Chairperson & granting leave of absence, if any

Mr. Gautam Mukhoapdhyay elected as the Chairperson of the Meeting, began the proceedings by
giving a brief idea on the agenda for the day’s meeting and ascertaining the quorum, declared the
meeting in order.

As all Members were present there was no question of granting leave of absence.

ITEM NO. 2

To place before the Members the Minutes of the last Meeting held on December 01, 2022;

The Minutes of the Meeting dated December 01, 2022 was confirmed by the Members for signing.

ITEM NO. 3

To Consider and discuss the Action Taken Report;

The Committee Members were informed that based on the suggestion of the Committee Members,
the Accounts Head has worked on the format for presenting the detailed analysis of the cash inflow
which would be presented before the Committee while discussing the next Agenda item. Further,
the Committee Members noted that RBI XBRL Help Desk has communicated us about resolving the
technical glitch related to affixing of Digital Signature on Form DNBS-10 (2019-2020) at the RBI
XBRL portal and the same has been communicated to S.R. Batliboi officials, who would be trying
1
to affix the Digital Signature and completing the same at the earliest and Form DNBS-13 (related to
Overseas Investment) for December, 2022 quarter would also be filed within 1 st week of January, 23
(due date being 15 days from the end of quarter). In relation to Form DNBS-4A and 4B (related to
ALM), the Management is keeping a check on the RBI XBRL site on a regular basis to note if the
technical glitch being faced for uploading the form has been resolved so that the filled form can be
uploaded on the RBI XBRL portal. Further, on being asked, the Accounts Head updated the
Committee that the movement of Quarterly Net Interest Margin in relation to change in Prime
Interest Rate and Pricing of Loan would be presented before the Committee in the next meeting as
he is yet to initiate the process for the same.

ITEM NO.4

To decide the pricing of Loan products for Quarter 4, 2022, January-March, 2023 (to be
effective from January 02, 2023);

The Committee considered the proposed pricing placed before them for Q4 (Jan -Mar, 2023). The
Members after detailed discussion passed the following resolution:

"RESOLVED that the loan products pricing for the 4th quarter January-March, 2023 as decided by
the Asset Liability Management Committee (ALCO) is hereby noted and taken on records and the
Final Lending Rate for the quarter 4 would be ranging between 25.98%-26% (which includes Prime
Lending Rate as decided to be 24.98%, additional risk premium ranging between 1% to 3% as per
the SRO’s district wise risk analysis report, loan processing fees ranging maximum upto 2% as per
the tenure of the loan, Insurance charges premium which will be levied on actual basis as quoted by
the Insurance Company) as per the tenure of the loan and an additional Rs. 20/- will continue to be
charged on every loan application from the prospective or existing borrowers.”

ITEM NO. 5

To place the Financials for the month of December, 2022;

The Financials for the month of December, 2022 were placed for perusal of the Members. It was
noted that as at December 31, 2022, the Loan Portfolio of the Company stood at Rs. 160.08
(including Managed books of Rs. 52 Cr (approx)) and the Outstanding Borrowings stood at Rs. 71
Cr (approx) and the total provisions on portfolio loans (own and managed books) for the date stood
at Rs. 10.55 Cr (approx).

The Members having discussed the Financial Statement in length and suggested that a comparative
analysis of last 3 months financial statements covering major financial figures (like Asset size,
quality analysis, profit analysis, portfolio analysis into standard and NPA, any change in projection
for next 2-3 months, cash flow statement analysis scenario) be placed before the Members for
information.

2
 ITEM NO. 6

To present the ALCO Report as of December 31, 2022 for noting of the Members;

The Members noted the ALCO Report (based on the unaudited figures) as of December 31, 2022
placed before them for perusal. Further, the following were the major highlights which were
observed from the ALCO Report as placed before the Members:

i. Detailed analytical presentation was made for liquidity (inflow-outflow) for next 5 years; the
cumulative outflow up to 3 months reflected around Rs. 12.50 Cr against the inflow of around Rs.
20.30 Cr. and Rs 20 Cr outflow against the inflow of Rs. 40.90 Cr. for the next 1 year;
ii. The Company has repaid all its liabilities and debt obligations without failure till December 31,
2022;
iii. As observed in the ALM statement (through inflow outflow analysis), there is no negative mismatch
for next two years however there was imperative need for the company to source new credit inflow
to wipe out the mismatch seen under the bucket ‘beyond two years’.
iv. The Members noted the ALM Statement as placed before the Members and suggested that the Cash
Inflow should be further summarized bifurcating the same into three parts-Standard, PAR (0-90
days) and NPA assets. Further, a summary sheet should be placed highlighting the Banks/ Financial
Institutions, loan outstanding, last repayment of that lender etc with the above ALM Statement.
v. Further, the Members suggested placing the Net Interest Margin of last 3 quarters for knowing the
cost of borrowings to the Company and rate of interest being charged to the borrowers.

Mr. Gautam Mukhopadhyay thanked the participants for their presence at the meeting with no more
agenda in hand, the meeting thereafter ended with a vote of thanks,

Chairperson
Date of signing: