IIFL Finance
IIFL Finance
IIFL Finance
IIFL FINANCE
The Manager, The Manager,
Listing Department, Listing Department,
BSE Limited, The National Stock Exchange of India Ltd.,
Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot C/1, G Block,
Dalai Street, Bandra - Kuria Complex, Bandra (E),
Mumbai 400001. Mumbai 400 051.
BSE Scrip Code: 532636 NSE Symbol: IIFL
Sub: Annual Report for FY 2021-22 and Notice of the 27th Annual General Meeting
Dear Sir/Madam,
Pursuant to the provisions of Regulation 34(1) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, we are submitting herewith the Annual
Report of the Company for FY 2021-22 along with the Notice of the 27th AGM, which is being sent
through electronic mode to the Members.
The Annual Report for FY 2021-22 and Notice of the 27th AGM is also uploaded on the Company's
website at i.e. www.iifl.com and also on the website of Link Intime India Private Limited at
https://instavote.linkintime.co.in.
Thanking You,
Yours faithfully,
Sneha Patwardhan
f1 1c' Company Secretary
02
Encl: As above
CC:
Registered office:
IIFL House, Sun Infotech Park, Road No. 16,
Plot No. B-23, MIDC, Thane Industrial Estate,
Wagle Estate, Thane - 400 604
Corporate office:
802, 8th Floor, Hubtown Solaris,
N. S. Phadke Marg, Vijay Nagar,
Andheri East, Mumbai - 400 069
Tel: +91 22 6788 1000
Email: shareholders@iifl.com | ir@iifl.com
Website: www.iifl.com
Digital propulsion
/indiainfoline
for financial inclusion
/IIFLCorporate
Financial Statements
166-378
Standalone 166
Consolidated 280 Please find our online version at:
https://www.iifl.com/finance/
investor-relations/financials
Disclaimer: This document contains statements about expected future events and financials of IIFL Finance Limited, which are
forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent
risks and uncertainties. There is a significant risk that the assumptions, predictions and other forward-looking statements may not
prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could
cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements.
Accordingly, this document is subject to this disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors
referred to in the Management Discussion and Analysis section of this Annual Report.
About This Report
This Report is addressed to all of our stakeholders as one of our primary
communication pieces. This Report contains comprehensive information on our
operational and financial performance and their influence on our strategic objectives,
resulting in our ability to create sustainable value.
Statutory Reports
Core Values
Our core values serve as a moral compass in all our activities. Fairness, Integrity, and
Transparency – FIT – is the driving force behind all we do at IIFL Finance. We work
with people who fit into our professional ethos. It is our constant endeavor to create
sustainable value for all our stakeholders. We are resolute in the observance of these
values and will let go of any growth opportunities that deem unfit.
F I T
Financial Statements
Fairness Integrity Transparency
Fairness in our transactions Integrity and honesty of Transparency in all
with all stakeholders, including the utmost nature, in the our dealings with
employees, customers, letter, in spirit, and in all stakeholders, media,
communities, regulators, our dealings with people, investors, and the
Government, investors, and internal or external. public at large.
vendors, bereft of fear or favor.
Our Subsidiaries
We, at IIFL Finance, along with our subsidiaries – IIFL Home Finance Limited and IIFL
Samasta Finance Limited – are focused on expanding our retail lending portfolio across
the Gold loan, Business loan, Home loan and Microfinance loan space.
In June 2022, Abu Dhabi Investment Authority (ADIA) announced plans to invest ` 22 Billion
for a 20% stake in IIFL Home Finance, subject to regulatory approvals.
Customers
Shareholders
Digital delivery
Employees
Communities
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Customer base New customers added* Branches in tier II and
tier III locations
Financial Statements
20.6% ` 31.4 ` 165.3 ` 512.1 Billion
Return on equity Earnings Book value per Assets Under Management
per share share (AUM)
` 13 Trillion 41%
Estimated size of the of India’s population
Affordable Housing expected to reside in
market by FY 2025, from urban areas*
` 9 trillion currently
*Source: UN Survey
Statutory Reports
Owning a home is an aspiration for all. We provide easy to avail,
Financial Statements
small-ticket Home loans for the purchase and renovation of
homes and plot purchases for residential construction for salaried
and self-employed individuals, including women borrowers and
co-borrowers. Through our Home loans, we are expanding our
financial inclusion to the marginalized sections of society in Tier I
suburbs, Tier II and Tier III cities. Our loan products are customized,
keeping in mind the first-time home buyers with attractive interest
rates so as to help our customers fulfil their dream of owning a
home.
Strategic Pillars
1 Focused on providing Home loans to mainly first time home buyers from the Tier I
suburbs, Tier II and Tier III cities
2 Support Government’s ‘Housing for All’ mission and provide subsidy benefits to
eligible borrowers under Pradhan Mantri Awas Yojana (PMAY)
3 ‘Jhatpat Home Loan’ – our PAN India product for instant Home loan
disbursement – nearly 100% of the Home loans disbursed during the year were
sourced through Jhatpat loans app
Strategic Pillars
1 A complete digital journey from customer onboarding to model-based
underwriting to automated collections for unsecured Business loans
2 Digital top-up facility for existing customers under secured LAP category
3 Continous monitoring of portfolio and collections based on risk occurrences and
triggers
4 Partnerships with leading fintechs with appropriate risk-sharing arrangements
` 12.3 Trillion
Existing Gold Loan
market size in India
35%
of the gold loan lending in
India is done through the
formal segment, whereas,
65% is still served by the
informal segment*
Statutory Reports
Gold loans assist consumers with their short-term working
Financial Statements
capital requirements and exigencies, linking them with the goal of
financial inclusion. Small enterprises, vendors, traders, farmers,
and salaried persons can get a loan against their gold jewellery
to suit their personal and business needs. We ensure best-in-
class customer service through a rapid and straightforward loan
disbursement process and a nationwide network. Our ‘Gold Loan
at Home’ initiative enables our customers to avail Gold loan from
within the ease of their homes. Offering a secure and paperless
loan experience to the customers, we have expanded our Gold
loan segment without adopting a brick-and-mortar route.
Currently, operating in 19 cities, the Company plans to expand the
‘Gold loan at Home’ initiative to over 50 cities across the country.
Strategic Pillars
1 Presence in over 1,260 towns/cities across 22 states for sourcing
2 Screening customers for previous defaults, scams and negative customer lists
through the in-house loan origination tablet application
3 Strong emphasis on collections and resolution resulting in negligible losses
4 Implementing digitization and strict security measures at the branch level to
reduce costs and contingencies
Strategic Pillars
1 Widespread presence in 17 states and 288 districts
2 Educating customers on the proper use of funds, prompt repayment, and joint
obligation
3 Adequately prepared to promote the goal of financial inclusion through Co-lending,
operating as a Business Correspondent (BC) partner, in collaboration with banks
4 A 100% credit-linked insurance coverage
Opportunities to
Address the Untapped
Microfinance Space
` 2.5 Trillion
Size of the current MFI market in
India, HAS POTENTIAL to grow at a CAGR
of >40% through 2025, driven largely
by the women-oriented MSMEs
The 3-pronged
strategy
of growing
phygitally,
partnership
with fintechs
and fortifying
co-lending is
working well for
the Company.
Dear Stakeholders,
It is a pleasure to write my first letter to all of you as Healthy recovery in the macro
the Chairman of IIFL Finance. I have been associated economy
with the company for the past many years and have
FY 2021-22 was outlined by continuous and durable
witnessed as well as participated in its consistently
recovery in the macro-economy. This recovery was
profitable growth for more than a decade. I am pleased
brought about by the combined efforts of the central
to present to you the Company’s integrated annual
government and the Reserve Bank of India (RBI) – who
report for the FY 2021-22.
used their full might to revive the economy. The growth-
Your Company has scored well on all key parameters focused policies of the government, accommodative
of financial and non-financial performance in the year stance of the central bank, rapid vaccination and
under review. These include growth metrics such as broad-based stimulus measures together pulled out the
loan AUM, branch network, employee addition, digital economy from the pandemic-induced recession. In this
reach, as well as profitability metrics such as post- scenario, it is not surprising that the Indian economy
tax earnings, return ratios, margins, and so on. This grew 8.7% in FY 2021-22, and was the fastest-growing
performance reflects your Company’s ability to identify major economy in the world.
opportunities, build relevant strategies and execute
them efficiently.
Statutory Reports
in FY 2021-22, with outstanding bank credit of confident that your Company is well poised to deliver
` 10.5 Trillion (Source: Care Ratings). Total credit consistently high growth in the present competitive
outstanding from NBFCs is estimated to have grown environment and well positioned to scale greater heights
6-7% during FY 2021-22. in times to come. The road ahead looks promising for
Outlook remains strong for both macro economy as your Company as it leverages enablers such as a strong
well as the NBFC sector. This, despite the emergence balance sheet, operational efficiencies and a scalable
of newer challenges amid longer-than-expected run business model.
Financial Statements
of the Russia-Ukraine war. This geopolitical crisis In the end, I would like to applaud the top management
has posed severe inflationary challenges for global at the Company for their exemplary performance.
economies, propelling central banks to hike rates. As a I would also like to thank the Board of Directors,
result, liquidity could witness some strain, toning down the employees, customers, communities, investors,
economic growth of emerging as well as developed business partners, lenders and all you stakeholders for
countries. India’s economic growth for FY 2022-23 is being the pillars of strength of the Company.
thus, pegged at 7.2% by RBI. AUMs of NBFCs could
Best Regards,
grow in double digit during FY 2022-23.
A. K. Purwar
Progressing forward, responsibly
Your Company has witnessed healthy, all-round growth
during FY 2021-22. The robust performance scorecard
is a culmination of continuous thrust on digitalization,
sharp eye on innovation to build sustainable competitive
advantage and a 360-degree focus on enhancing
customer experience. To this end, your Company
keeps exploring best ways to grow, both organically as
well as through partnerships. The 3-pronged strategy
of growing phygitally, partnership with fintechs and
fortifying co-lending is working well for the Company.
A significant underbanked populace presents unlimited
opportunities for NBFCs. I believe, there is immense
potential for the Company to maximize each of these
strategies and achieve greater scale and efficiency.
Your Company is well poised to capitalize on the
rapidly growing fintech market in India and contribute
to the agenda of financial inclusion. Your Company
will continue to build capabilities of its people, digital
offerings and branch network in the future. And we will
do so in a responsible manner. During the year under
review, we have updated our Enivronmental, Social
and Governance (ESG) policy. Our teams are working
dedicatedly to embed sustainability across all our
activities and create shared value for all stakeholders.
Statutory Reports
robust systems, processes and data analytics will help us I believe, your Company is well poised to contribute
minimize frauds, reduce costs and offer multiple products meaningfully to the financial inclusion of the under-
under one roof. privileged masses and help them to have their rightful
To take an example of our innovative approach to reach share in the nation’s prosperity. Your Company’s mission
large customer base in a cost effective manner, we also enables the Company’s rapid and sustainable
became the first NBFC in India to launch instant business growth, propelled by revolutionary digital technologies our
loan on WhatsApp, covering the complete end-to-end generation is privileged to experience.
Financial Statements
journey of the customer. There has been an overwhelming Before concluding, I would like to extend my heartfelt
response as ubiquity of WhatsApp in India, makes it most gratitude to all you stakeholders for your continued
convenient for customers. support to the company and strong belief in our abilities. It
We understand that our country is too large for any one is our constant endeavor to create sustainable value for all
financial institution or fintech entity to service, Therefore, of you consistently.
we have a partnership approach and we make our core
Best Regards,
APIs for lending freely available to all. Our in-house
technology team is also adept at integrating external Nirmal Jain
APIs. Our last mile reach to the customer, innovative
technologies by fintechs and banks supporting with their
balance sheet under co-lending arrangements; make
unique win-win partnership for wider, deeper and swifter
financial inclusion of smallest enterprises and consumers.
Financial Capital
Our strong capital base, as well
Capital Employed: ` 422 Billion
as diversified sources of funding,
enable us to support our clients Total Equity: ` 64.7 Billion
in their credit needs. Total Debt: ` 357.3 Billion
Vision
To be the most respected
Intellectual Capital Count of unique bank 10 financial services company
Our intangible assets include our tie-ups under Co- in India. Not necessarily the
brand, reputation, technology- lending:
largest or most profitable
based infrastructure, strategic MyMoney App for complete paperless
partnerships with third-party loan disbursements
payment interfaces, tie-ups Introduced ‘Instant Loan on WhatsApp’ Core Values
with banks for Co-lending and
Our core values serve as a
assignments, manage risks
moral compass in all our
and deliver effective customer
service. activities. Fairness, Integrity
and Transparency – FIT – is
the driving force behind all we
Physical Capital No. of branches: 3,296
do. We only work with people
Our wide local presence along who fit into our professional
Towns/Cities: 1,260+
with a digital platform to serve ethos. It is our constant
the underserved population. endeavor to create sustainable
value for all our stakeholders.
We are resolute in the
observance of these values
Human capital Workforce strength: 28,369 and will let go of any growth
Our employees’ skills and Reward structure opportunities that deem unfit
experience is leveraged to deliver Linked with performance and
our financial solutions to the value drivers
customers. Key Enablers
Strong balance sheet
High operational efficiency
Social and Relationship Contribution towards ` 127.4 Million A scalable business model
Capital CSR:
Our relationships with
stakeholders, particularly the
communities in which we
operate.
OUR FOCUS AREAS
Small-ticket size retail
loans
Expanding physical
Kutumb Green Building Initiative presence
Natural Capital Evolving digital platforms
Green Value Partner (GVP)
Our consumption and impact on Strategic tie-ups with
PURPOSE (Platform for Green
natural resources such as energy, banks for Co-lending
Affordable HoUsing & Finance, Through
water, and climate, as well as our Research, Policy & TechnOlogy, for Strategic partnership with
mitigation measures. Sustainable Eco-System) third-party fintech partners
Financial Capital
Statutory Reports
ROE: 20.6%
ROA: 2.7%
Prime Pillars
PAT: ` 11.9 Billion
NIM: 7.0%
Branch Infrastructure Dividend Distributed: ` 3.50 per share Shareholders
We have an extensive branch network EPS: ` 31.4
across India backed by our cutting-edge
Financial Statements
digital infrastructure. This hybrid model Intellectual Capital
gives us our ‘Phygital’ strength.
Co-lending ` 42 Billion
disbursement:
Average monthly users 2.8 lakhs+
of mobile apps:
Customers &
Disbursement through ` 4.17 Billion
Technology digital DIY loans:
Banks
Delivering disruptive products using
innovations in technology is what
Physical Capital
customers expect from us. We take
Total customer base: 8 Million+
great pride in staying ahead of the curve
in discovering the latest trends and No. of customers 2 Million+
added in FY 2021-22:
implementing them in business. Customers
Human capital
Average training hour 4.55
per employee:
Our people Average training hour 2.45
We have never underestimated the per employee led by
power of human capital. If anything, we virtual instructors:
Employees
have always emphasized and endorsed Employee training 2.2 lakhs
the power of building a human connect. hours:
People continue to be our strength, (Above numbers pertain to FY 2021-22)
support and are the backbone on which
we have built our business. Social and Relationship Capital
Loan to first-time 1,51,000+
home buyers:
Total customers 1.75 Million
benefited under
Ethics & Compliance Microfinance loans: Society &
A global environment, characterized Lives impacted 55,561 Community
by tightening compliance standards, is through CSR
interventions:
our competitive advantage. We adhere
to and ensure the strictest standards
of ethics and compliance in all our Natural Capital
dealings with our customers, building Savings under IGBC preliminary certified/
certified projects under management
and promoting a transparent, fair
and unbiased culture of equality and Energy savings: 11,948 MWH p.a.
honesty in all our business transactions. Water savings: 6,90,087 KL p.a. Society
Emission savings: 10,992 Tonnes p.a.
Corporate Overview
the non-banking retail lending space
Retail Lending
Statutory Reports
growth potential
Phygital Partnership
Financial Statements
Network of 3,200+ Innovative digital Unique capability to Harnessing fintech
branches help solutions drive cost source quality retail innovations for
origination, collection optimization, cross & PSL loans for customer sourcing
and physical storage sell and superior banks make a win- and best-in-class
of gold underwriting win partnership experience to
customers
94%
Loans are retail
in nature
18.7 25.0 24.2 33.6 40.2 4.6 7.0 5.0 7.4 12.0
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
13.3 17.9 11.3 15.3 20.6 1.6 2.2 1.5 2.0 2.7
Statutory Reports
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
Financial Statements
Net Interest Margin on
Cost of Funds Balance Sheet Assets
(%) (%)
8.5 8.9 9.3 9.0 8.6 5.9 6.4 6.4 6.9 7.0
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
16.3 18.3 16.6 25.4 23.9 1.6 1.7 2.0 2.0 3.2*
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
* Includes additional impact of 0.85%, on account of RBI circular
dated November 12, 2021
2,856
With the advent of technological advancements and extensive adoption
of online platforms, digital delivery has taken the lead. However, physical
branches continue to be the face of the brand and a hybrid model of physical Branches in Tier II and
and digital delivery, one adopted by IIFL, has become imperative for doing Tier III cities
business today.
At IIFL Finance, we have successfully expanded our reach to Tier II and Tier
III cities. This has enabled us to fill the credit gap to the marginalized sections
of society, leveraging the new Bank-NBFC Co-lending model. We continue to 731
focus on expanding our branch network across the country. During the year New branches added
under review, our physical network grew by 731 branches paving the way for
accelerated growth in the future.
8.5K+
People added
Branch Security
Corporate Overview
This map is a generalized illustration only for the ease of the
reader to understand the locations, and it is not intended
to be used for reference purposes. The representation
of political boundaries and the names of geographical
features/states do not necessarily reflect the actual
position. The Company or any of its directors, officers or
employees, cannot be held responsible for any misuse or
misinterpretation of any information or design thereof.
The Company does not warrant or represent any kind of
connection to its accuracy or completeness.
Statutory Reports
Financial Statements
3,296
Total branches
across India
Regional Split
of Branches
N
20%
East
22%
North
W E
31%
South
27%
West
S
IIFL Finance Limited 27
Propulsion through
Effective Digitization
Intellectual Capital
Financial services technology is undergoing a significant shift. In a competitive environment
of growing cost constraints, wherein swift response is vital, financial institutions have
enhanced their technical processes to support digitization across the value chain.
Compared to traditional bank lending processes, technology has improved NBFC business
models based on process automation and an attempt to lessen dependency on human
procedures. This promotes more inclusivity, higher credit quality, cost-effectiveness, and
faster response time.
We at IIFL Finance are leveraging our digital platform to suit our customers’ ever-changing demands. From customer
onboarding, credit underwriting to loan disbursement and collection, we deliver a completely paperless experience through
our digital platform. We have also made repayments easy and secure for our clients with our fintech integrations. We have
strategic partnerships with Paytm, PhonePe, Google Pay, MobiKwik and BHIM, among other unified payment interfaces.
Gold Loan
During the year under review, IIFL Finance launched Co-branded Prepaid Cards, an innovative product
with ICICI Bank for our Gold loan customers. We tied up with fintech and digital players to get leads
and add new customers to our portfolio. Furthermore, we continued providing digital Gold loan with
online top-up as well as repayment options for our customers with 24X7 servicing.
Home Loan
‘Jhatpat Home Loan’, our PAN India product for instant Home loan disbursement, accounted for
nearly 100% of the Home loans disbursed during the year.
Business Loan
Our unsecured Business loan is a complete digital offering, while under our secured loans we provide
digital top-ups to existing customers. We have also entered into partnerships with leading fintechs
with appropriate risk-sharing agreements.
Microfinance Loan
During the year, our Microfinance loan segment achieved 100% cashless disbursements. We have
also established various digital collection methods, including UPI - Fingpay, UPI through our customer
application - Sakhi, AEPS, UPI collection using WhatsApp, and BBPS, to minimize the risk of carrying
cash in the field. These modes provide real-time, error-free reconciliation and immediate payment
confirmation to customers.
IIFL Finance is
the first entity in
India to launch an
instant Business
loan on WhatsApp
Features
Onboarding Journey
Ease of chat was introduced to make the complex loan journey more convenient
450 Million+ WhatsApp users throughout India may now utilize a 24x7 lending option
to acquire a loan in under 10 minutes
Account aggregator embedded in the route to reduce bank statement drop-offs 27K+
Customers onboarded
Powered by AI Bot to date through the
DIY channel
A powerful AI-bot matches the users’ inputs to the loan offer and streamlines the
application process with KYC and mandate creation
Users can avail a loan of up to ` 1 Million with minimal paperwork and clearance in
5 minutes
` 4.17 Billion
Data Analytics Digital paperless
API Integration with fintech vendors disbursals (DIY)
Machine learning models to assist underwriting
E-KYC & E-Signature
Fraud Checks
Fraud checks are integrated within the journey itself
New age fintech solution which gives fraud score of users is deployed
Corporate Overview
The Company undertook multiple bank partnerships under the RBI circular on Bank-NBFC Co-lending model.
Statutory Reports
Financial Statements
Co-Lending disbursement picking up
5.1%
1.2% 1.2%
0.2% 0.2% 0.1%
Product Offerings - Mobile-first Business Banking Tool for Micro and Small Enterprises
81
Trust Index
78
Fairness at
Score Workplace
82
Credibility of
83
Pride
Management
81
Respect
79
Camaraderie
for People between People
Corporate Overview
Continuous learning and development are crucial for the growth
and retention of employees. We lay a strong focus on developing
our people’s competencies and capacities. We examine our
employees’ training needs and design personalized training
modules using our structured learning programs.
MoneyVersity
Statutory Reports
Our Artificial Intelligence-enabled learning experience platform,
‘MoneyVersity’ is designed to transform the traditional classroom
experience into a digital platform. It provides our people with over
20 distinct learning routes (channels) that are continually updated
to ensure that users have access to the most up-to-date material.
This has helped our employees to nurture their knowledge and
skills on the go, anywhere, anytime. In addition to pure technical
and functional content, it includes information on health and
Financial Statements
wellness, leadership insights, motivational videos, personality
development, financial literacy, technology, and more.
37K 2.45
training hours for all Average hours of
employees training per employee
Leadership Connect
We promote open and transparent
communication and interaction between our
employees and senior management. Our
Managing Director engages in periodic live
connect sessions with all employees through
Facebook Work. Employees are given a chance
to address any complaints or problems in
the open forum and discuss organizational
goals and future plans. Through initiatives
like ‘Ask Nirmal’, ’Townhalls Workplace’, and
‘FaceTime with Business Heads’, we facilitate
communication between our Business Heads
and our employees.
Corporate Overview
At IIFL Finance, we supported our people through
the extensive Covid-19 vaccination drive, offering
vaccine shots to our employees free of cost.
Dedicated vaccination drives encompassing a
wider workforce base were undertaken in major
cities. Employees in other places were also urged
to get vaccinated in their communities, with the
organization providing compensation for vaccine
Statutory Reports
expenses.
Financial Statements
We organized financial planning workshops for
our female employees, empowering them with
knowledge of women-centric investment tools,
healthy money management, asset allocation,
tax saving strategies and crisis management. On
the occasion of International Women’s Day, the
Company also organized a virtual women’s
self-defense workshop to train its employees in
self-defense. Various additional efforts, such as
the development of women-centric groups, flexible
working hours, and safety and wellness programs,
were also implemented.
Statutory Reports
examine relevant topics and resolve any effect
or divergence from the Company’s objectives
and principles. Marquee investors like CDC
have representation on our ESG committee and
guide us with their valuable global experience
in driving ESG initiatives.
Financial Statements
Economic growth
Sustainable financing
Governance and
ethical behavior
Our ESG
Serving our customers
Framework
Community relationships
Environmental stewardship
Kutumb: Green
Pillars of ‘Kutumb’
Affordable Housing Increase public awareness regarding the need of
IIFL Home Finance has been a strong advocate for green housing
creating green, affordable housing. With our ‘Kutumb’ Educate stakeholders by demystifying green
Green Building Initiative, we strive to reduce our building principles and encourage the usage of
natural resource footprint and carbon emissions by environmentally friendly products as well as the
encouraging measures that enable these reductions adoption of relevant technologies
and alleviate climate change impacts while keeping Ensure monitoring and implementation of green
housing affordable for the people. We have done this in building projects
partnership with housing developers and specialists.
IIFL Home Finance has secured a US$ 68 Million loan
with the Asian Development Bank (ADB) to empower
lower-income groups in India to get access to
Our Environmental Impact
affordable green housing. Of the total loans, 80% would
be used to finance loans for women borrowers and rest
would go towards financing Green Certified Housing.
33
Certified green projects
as on March 31, 2022
17,506
Units under Management
during FY 2021-22
6,90,087 KL p.a.
Water Savings
Statutory Reports
to Sustainable Affordable Housing’ was released in 2020-21. It is a handbook that Scan the QR code to download
provides developers, architects, construction engineers, and homeowners with our Green Building Handbook
design and construction instructions for Green Affordable Housing.
Financial Statements
IIFL Home Finance has formed an in-house technical team, dubbed ‘Green Value
Partner (GVP),’ to help developers with green construction approaches and
certification procedures throughout the project life cycle. This initiative is mainly
aimed to promote a continuous supply of green buildings in India by supporting
the developers through certification, documentation and auditing of green building
design and construction.
Energy Saving
By shifting to efficient energy lighting, we aim to reduce our energy consumption. We
have successfully replaced incandescent lights with light-emitting diode (LED) panels
across 15 branches.
Recycling Water
By recycling excess water from the RO water purifier, it can be used in toilets and urinals.
We recycled 16.3 KL of water in FY 2020-21. We have also installed water sensors that
control water use in washrooms.
Waste Management
By giving e-waste and paper to authorized vendors for recycling, we are promoting
recycling. We have a waste management initiative in place that measures our waste
generation and guides appropriate waste disposal methods.
Gold Loan
IIFL Finance provides financing against gold jewellery to low-income groups and underserved applicants at
attractive interest rates, with minimal documentation and a quick response time. We have established Gold
Loan at Home service, where our executives appraise gold in the comfort of clients’ homes to enhance
the convenience of borrowers. Post appraisal, loans are disbursed directly into their bank accounts. The
Company also offers digital top-up and renewal services to its consumers.
Statutory Reports
Loans to first time Subsidies provided Families Benefited
home buyers under CLSS
61%
Loans to female
Financial Statements
owners/co-owners
Business Loans
MSMEs are the country’s economic engines, contributing a considerable amount of GDP and creating
jobs. However, they find it difficult to avail credit due to the unavailability of collateral, credit history,
and documentation. IIFL Finance strives to promote and uplift these MSMEs by bringing them into the
organized space and supporting them with working capital and business growth loans.
47% 72%
First time borrowers Unsecured loans
under unsecured loans less than ` 1 Million
Microfinance
Microfinance is crucial in promoting financial inclusion by giving customers simple access to formal credit,
particularly in semi-urban and rural areas. Women empowerment, microfinance, and rural development
are all interlinked with each other. Through our subsidiary IIFL Samasta Finance, we provide small-ticket
Microfinance loans to self-employed women, through organized Joint Liability Groups (JLGs). Thus helping
the underserved communities advance towards a better tomorrow.
Tanaji Wadekar
Tanaji, who worked as a Pandit (a Priest), struggled to secure a Home loan. He applied to
several banks but was turned down owing to a lack of income proof. One day he received a
call from an IIFL Home loan representative regarding a new branch opening. Being curious
he initiated talks enquiring about Home loan. The representative promptly came to his
residence and discussed the process as well as the benefits of PMAY (U). He was able to
obtain a house loan through IIFL Home loan and is now the happy owner of his home.
Location: Thane | Occupation: Pandit | Loan Amount: ` 6,57,000 | Subsidy Amount: ` 2,26, 564 | Home loan
Sushil Singh
Sushil Singh from Delhi, who belonged to an underprivileged household, never imagined that
he would be able to own a home for his family. He always wanted to own a home. It was
only after he learnt about PMAY (U) through an advertisement that he started looking out
for details of the scheme. He approached several home finance companies to learn more
about this Government scheme. Sushil finally secured his home through IIFL Home loans.
The Company’s Home loans executive assisted Sushil with the Home loan criteria, as well as
advised and supported him to seek Credit Linked Subsidy Scheme (CLSS) under PMAY (U).
Location: Delhi | Occupation: Cab Driver | Loan Amount: ` 27,31,314 | Subsidy Amount: ` 2,35,068 | Home loan
Kumari Sahoo
Kumari Sahoo, a resident of Sandhapur village in Khurdha District, joined IIFL Samasta in
2018. She took up a ` 30,000 Income Generation Loan (IGL), used the full amount to buy
groceries, and opened a new grocery business in the Sandhapur market. She also took out
a ` 40,000 second-cycle loan to acquire more inventory for her store and started making a
consistent income to support her family. Due to the pandemic and subsequent shutdown,
her store was forced to close, and she was unable to pay her EMI on time. Currently, she has
decent earnings to meet her daily basic necessities and other expenses. She is thankful to
IIFL Samasta for providing her with a three-month EMI moratorium and a loan in the time of
need.
Location: Khurda District, Sandhapur Village | Amount Availed: ` 1,20,000 | Microfinance loan
Subodh Kamble
I am really thankful to IIFL, the branch, the staff, and the managers for their cooperation
and for making the process simple. In the future, I will recommend IIFL Gold loan to all
my relatives and friends so that whenever they need funds, they can get in touch with IIFL
instead of going to places where they will have to pay higher interest rates. IIFL offers a lower
interest rate, the maximum value for your gold with no hidden or penalty charges. I trust IIFL
completely.
Statutory Reports
She also availed a top-up loan of ` 25,000 with which she was not only able to increase her
business volume but has doubled her income. Sushilamma is confident in her ability to grow
her business and provides a secure future for herself and her family thanks to Samasta’s
continued support and service. Sushilamma adds that IIFL Samasta is important in assisting
small but ambitious women businesses, and one of her favourite aspects of Samasta is the
honesty with which its business is conducted.
Financial Statements
Vinod Singh
In exactly one day, the loan was deposited into my account. With the aid and cooperation
of the IIFL Finance team, I was able to finish the application process in under 10 minutes.
The procedure is really straightforward and seamless, and I have already recommended it to
every member of my family.
Chaitanya Velye
IIFL Finance’s MyMoney App helped me during my medical emergency. The procedure is
so straightforward that it only took about 15 minutes to finish. The KYC procedure is simple
and can be completed quickly provided you have the necessary documents. Thank you very
much for providing such prompt service. Highly recommended.
Abhijit Borade
I needed a quick loan and required financial assistance. I applied for a loan with IIFL Finance
over WhatsApp. Each time I got stuck, the IIFL team was there to help. The money was sent
to my account without any hassle. For its prompt service, I suggest IIFL WhatsApp Loan to
all of my friends.
H E L P
Health Education Livelihood Poverty
Alleviation
Health Initiatives
IIFL Finance’s healthcare initiatives aim to improve
healthcare access, particularly for the disadvantaged
and underserved, by promoting preventive healthcare,
launching healthcare projects, and supporting medical
research organizations.
Corporate Overview
Last Mile Vaccination: Covid-19
Vaccine Delivery by Drone
IIFL Foundation collaborated with the Central and
State Governments to launch Maharashtra’s first
Covid-19 vaccination distribution through drones to
reach remote terrains in Palghar District’s Jawhar
Taluka. This initiative played an essential role in
Statutory Reports
reaching out to people residing in faraway and
inaccessible areas, where road access was difficult
and time-consuming, resulting in the wastage of
perishable vaccines and other health supplies. As a
result of this initiative, the delivery, which would have
usually taken more than an hour, was accomplished
in little over nine minutes during the initial run.
Financial Statements
Covid-19 Vaccination Drive for
Differently Abled
As part of our Mission Conquer Covid-19, IIFL
Foundation launched a vaccination drive in Mumbai
called ‘Kindness on Wheels’. This project sought
to vaccinate people with special needs who did not
have the means or assistance to visit a vaccination
center.
‘Sakhiyon ki Baadi’
‘Sakhiyon ki Baadi’ is a community-based non-
formal learning initiative in Rajasthan with the goal
of eliminating female illiteracy. IIFL Finance has
established learning centers with contemporary
technology-enabled teaching for children aged 4
to 14. These centers are in locations dominated
by native scheduled tribe populations, where girls
frequently drop out or never attend school. We
also helped women gain access to education by
educating them to become ‘Dakshas,’ who take
on the role of teaching young girls. To support the
development of their technical and intellectual skills,
we use the play-way approach of learning.
13
Districts Covered
32,264
Girls Enrolled to Date
3,495
Boys Enrolled to Date
Corporate Overview
The project ‘Maa Bari’ aims to provide formal
education to children from indigenous tribal
communities. These kids live in Rajasthan’s most
rural areas, with no access to Government schools.
IIFL Foundation collaborated with Tribal Area
Development (TAD) Department to rehabilitate these
‘Maa Bari’ centers, provide necessary infrastructure,
sanitation, and eliminate illiteracy. In 30 ‘Maa Bari’
centers, we have installed digital learning tools,
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established libraries, and developed play areas.
Regular training of teachers by subject matter
experts is also a key focus of this initiative. We have
also installed solar panels to facilitate access to
electricity, solar-powered water pumps, ceiling fans,
and repairing toilet facilities. In addition, we have also
upgraded the ambience by constructing a play area,
setting up a library, and painted walls to create a
Financial Statements
welcoming and warm environment for learning.
353
Children Benefited
6
Staff Supported
‘Rathshaala’
IIFL Foundation started ‘Rathshaala,’ a mobile school
initiative, to meet the needs of the Rabari community.
Children of this community migrate with their
families and livestock for more than eight months of
the year, missing out on the opportunity to continue
their education. Under this initiative, the school’s
learning facilitator is chosen from within the tribe and
trained by our professionals every quarter. According
to the Rajasthan Government’s curriculum, the
children are taught basic and intermediate reading,
writing, and speaking abilities, as well as arithmetic.
200
Tablets Distributed among
5 Government Schools in
the First Phase
Corporate Overview
Under this initiative, IIFL Foundation supports the
education of meritorious girl students in grades 8
through 12 from underprivileged backgrounds through
IIFL Scholarships. An online portal has been developed
to facilitate the application process. We provide
scholarships to students with a family income of less
than ` 4,00,000 per year. Those in the 9th and 10th
grades receive a ` 3,500 scholarship, while students in
the 11th and 12th grades receive a ` 5,000 scholarship.
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We also grant financial support to Ashoka University
for students pursuing higher education and Ph.D.
programs.
Livelihood Initiatives
Financial Statements
IIFL Finance, through its initiatives, supports livelihood
development by promoting animal husbandry, women
employment, and local art & craft.
Daan Utsav
The Covid-19 pandemic had a catastrophic effect on
artisans, craftsmen, and small-scale producers. The
Government offered them just rudimentary assistance.
IIFL Foundation developed daanutsav.iifl.com – an
online platform to link non-profit organizations,
self-help groups, and community-based groups
with customers around the country to support these
disadvantaged people. The participants were provided
‘free’ access to the platform’s services.
Animal Husbandry
The IIFL Foundation supports low-income farmers
in diversifying their revenue streams by encouraging
them to enter the dairy production sector. Our cattle
breed enhancement center offers door-to-door
services to enable cattle owners to keep their herd
and add dairy production as a secondary source of
income.
53
Women Benefited
Bicycle Distribution
Girls are the support system of rural families in India.
They often fall short of quality study time owing to
their responsibilities and long walking distances to
reach their schools. In order to ease their struggle,
IIFL Foundation donated 100 bicycles to girl students
of a Government School in Palghar district of
Maharashtra.
1. Mr. Ramakrishnan Subramanian | 2. Mr. Vijay Kumar Chopra | 3. Mr. Vibhore Sharma | 4. Mr. Nilesh Vikamsey |
5. Mr. R Venkataraman | 6. Mr. Nirmal Jain | 7. Mr. Arun Kumar Purwar | 8. Ms. Geeta Mathur | 9. Mr. Chandran Ratnaswami
1 2 3 4
5 6 7 8 9
Corporate Overview
Policy, Whistle Blower Policy, Vigilance Policy and others.
The composition of the Board of Directors and its We also have in place an ESG policy as our unwavering
Committees are in accordance with the Companies commitment to sustainable business growth and
Act, 2013 and SEBI (Listing Regulations and Disclosure environmental impact.
Requirements) Regulations, 2015 and RBI Master
Directions. The Board of Directors had nine members as of
March 31, 2022, including a woman Director. The Chairman
of the Board is an Independent Director. The Executive,
Board Committees
Non-Executive and Independent Directors make up the The Board has delegated responsibility to numerous
Statutory Reports
bulk of the Board. They bring a wide range of knowledge, Board committees to deal with governance concerns and
experience, talents, and backgrounds to the Board. report back to the Board. Each committee functions under
its own terms of reference, with tasks and responsibilities,
composition, and authority scope all explicitly defined.
The Board frequently reviews the structure and functions
Financial Statements
2 Audit Committee
Executive Directors Nomination and Remuneration Committee
Stakeholders’ Relationship Committee
7
Corporate Social Responsibility (CSR) Committee
Risk Management Committee
Non-Executive Directors
Asset Liability and Management Committee (ALCO)
IT Strategy Committee
Effective Policies
Corporate policies are essential for any business. Our
policies and procedures serve as a road map for day-
to-day operations, guiding our employees and other
stakeholders in maintaining our commitment to ethics,
transparency, and sustainability. The Company recognizes
the inherent dangers of corruption, bribery, and money
laundering as a financial services organization. We take
a zero-tolerance stance against such financial crimes
and are dedicated to conducting business responsibly in
accordance with all current laws and regulations. In this
Mr. Arun Kumar Purwar works as Chairman of Eroute Technologies Private Limited, a fintech Co. He also works as an
Independent Director in Companies across diverse sectors like power, telecom, steel, engineering consultancy, pharma
and financial services. He also acts as an advisor to Mizuho Securities, Japan. He was Chairman of the State Bank of
India (“SBI”) from 2002 to 2006 and Chairman of the Indian Bank Association during 2005 to 2006. He has previously held
positions such as Managing Director of State Bank of Patiala and has been associated in the setting up of SBI Life. Post his
retirement from SBI, he was associated with a leading industry house in setting up the first healthcare focused private equity
fund as well as a non-banking finance company focused on funding real estate projects as well as educational institutions.
He has won a number of awards including the CEO of the year award from the Institute of Technology and Management
(2004), “Outstanding Achiever of the Year” award from the Indian Banks’ Association (2004) and “Finance Man of the Year”
Award by the Bombay Management Association in 2006.
Corporate Overview
Mr. Nilesh Vikamsey is a senior partner at Khimji Kunverji & Co LLP – an 85-year-old Chartered Accountants firm.
Mr. Vikamsey is Committee member of organizations like Indo American Chamber of Commerce, Bombay Chartered
Accountants’ Society (BCAS), the Chamber of Tax Consultants (CTC). He is a trustee in ‘Sayagyi U Ba Khin’ Memorial
Trust (Vipassana International Academy, Igatpuri) & few educational trusts in Mumbai. He is presently a member of the
Advisory Committee on Mutual Funds & Corporate Governance Committee of SEBI, Risk Management Committee of Central
Depository Services (India) Limited (CDSL) and Expert Advisory Committee of Institute of Chartered Accountants of India
(ICAI). He was the President of ICAI in the past. He was an observer on the Board of International Federation of Accountants
and Member of IFAC’s Technology Advisory Group. He was the past Chairman of Federal Bank Limited and member of
IRDA. He was the Chairman of SEBI’s Qualified Audit Report Committee and member of Corporate Governance Committee
Statutory Reports
chaired by Uday Kotak, Primary Market Advisory Committee and Committee on Disclosures and Accounting Standards
(SCODA). He was member of International Auditing and Assurance Standards Board (IAASB) Reference Group for Audits
of Less Complex Entities. He is a Speaker/Chairman, at various seminars, meetings, lectures held by various Committees,
Regional Councils, Branches & Study Circles of ICAI, Bankers Training College of the RBI, Comptroller & Auditor General of
India (C&AG) and various other organizations.
Financial Statements
Fairfax India Holdings Corporation, a Company listed on the Toronto Stock Exchange and is also a Managing Director
of Hamblin Watsa Investment Counsel Limited, a wholly owned investment management company of Fairfax Financial
Holdings Limited.
Mr. Ratnaswami serves on the Boards of, among others, Chemplast Sanmar Limited, Quess Corp Limited, Bangalore
International Airport Limited, National Commodities Management Services Limited, Go Digit General Insurance Limited,
Thomas Cook (India) Limited, Fairbridge Capital Private Limited in India, Zoomer Media, Fairfax India Holdings Corporation
in Canada, Thai Reinsurance, Thailand and Fairfirst Insurance Limited, Sri Lanka. He holds a Bachelor’s degree in Civil
Engineering from IIT Madras, India and MBA from the Rotman School of Management, University of Toronto, Canada.
Social upliftment
Community welfare initiatives
Education to the marginalized and tribal people
Healthcare to the underprivileged
Communities
Statutory Reports
Regular engagement through emails, calls, SMS, Regular
WhatsApp, branch and relationship managers Periodical
Social media communication Annual
Marketing campaigns Need-based
Financial Statements
Investor meets/calls
Annual/quarterly results
Periodical
Investor presentations
Annual/Quarterly
Annual General Meeting
Need-based
Annual Report
Press releases
Town halls
One-on-one meetings
Training and development workshops
Regular
Engagement initiatives
Need-based
Learning through online modules
Digital apps for employees and collection officers
Performance appraisals
Seedhi Baat
During the year, we continued our
Seedhi Baat brand TVC with a series
of three advertisements starring our
brand ambassador Rohit Sharma. These
advertisements were aired on major national
and regional news stations, with each TV
commercial emphasizing a different facet of
Seedhi Baat – honesty, dedication, and the
importance of relationships.
Myth vs Fact
In line with our Seedhi Baat campaign
in which transparency is one of the key
tenets, IIFL Finance conducted a consumer
awareness campaign on social media
platforms to dispel misunderstandings about
loans, particularly Gold loans.
Corporate Overview
We promoted Gold loan schemes at attractive In the third and fourth quarters of the fiscal
rates to our existing customers to help them year, lockdown restrictions were easened
avail credit at affordable interest rates. In and festivities improved the spirits. During
order to create awareness and educate the this period, IIFL Finance launched regional
general public as well as our customers campaigns in which new and current customers
about the schemes, we generated awareness got guaranteed rewards in exchange for
communication messages in multiple procuring a Gold loan from us. These campaigns
languages. were widely publicized on television, print,
outdoor, radio, and digital platforms.
Statutory Reports
‘GL Refer & Win’
From June 2021 to March 2022, we ran a referral program for
our existing customers, leveraging their goodwill toward the
IIFL brand and rewarding them suitably.
2.1 lakhs+
Financial Statements
New customers joined through
the referral program
Rishton Ki Chamak
Covid-19 Advisories
Corporate Overview
Recognition & Appreciation
Awards
Statutory Reports
Recognized as ‘The Most Conferred with ‘Customer Services Bestowed with ‘Financial Inclusion
Preferred Brand’ for Sustained Excellence Award’ at the World Initiative of the Year Award’ at the
Brilliance in Brand Building at BFSI Congress for Our ‘Gold Loan World BFSI Congress
Marksmen Daily Awards at Home’ Initiative
Financial Statements
Identified as ‘India Most Presented the ‘Best Financial Received ‘Best Use of Mobile
Admired Financial Services Inclusion Initiative’ at National Technology in Financial Services’
Provider’ at Asian BFSI Awards for Excellence in BFSI Award for Our ‘WhatsApp Loan’
Leadership Awards Product at the World BFSI Congress
Awarded the ‘Best Finance Honored with ‘The Economic Appreciated with the Impact
App’ for IIFL Finance’s Times Iconic Brand Award’ Digital Influencer Award for
MyMoney App at National #UmeedwaliSeedhiBaat Initiative
Awards for Excellence in
Digital Marketing
Your Directors present the Twenty Seventh Annual Report of IIFL Finance Limited (“your Company/the Company”) together
with the Audited Financial Statements for the Financial Year ended March 31, 2022. The Company is registered with the
Reserve Bank of India (“RBI”) as a Systemically Important Non-Banking Financial Company (“NBFC”) not accepting public
deposits (NBFC-ND-SI).
Under the cloud of COVID-19 pandemic, the year passed with difficult times and uncertainties. The second wave of the
COVID-19 pandemic had a significant impact on lives, livelihoods and business. Despite the raging COVID-19 pandemic and
lockdown, strong recovery and business momentum was witnessed. Your Company has ensured business continuity through
a phygital model wherein the business as well as workforce adopted to this agile way of working.
1. FINANCIAL RESULTS
A summary of the financial performance of your Company and its major subsidiaries, for the Financial Year ended March
31, 2022 is as under:
(` in Million)
Name of the Company Revenue Profit After Tax
IIFL Finance Limited 40,623.09 7,454.84
IIFL Home Finance Limited (“HFC”) 20,860.76 5,779.95
IIFL Samasta Finance Limited (formerly known as Samasta Microfinance
10,127.87 506.04
Limited) (“Samasta”)
A summary of the consolidated and standalone financial performance of your Company, for the Financial Year ended
March 31, 2022, is as under:
(` in Million)
Particulars Consolidated Standalone
2021-22 2020-21 2021-22 2020-21
Gross total income 70,062.79 59,896.89 40,892.53 34,362.05
Profit before Finance Cost, depreciation, share 46,486.87 37,362.87 26,894.08 20,203.04
of loss of Joint Venture, exceptional items and
taxation
Finance Cost 29,910.05 26,258.27 16,156.07 15,549.75
Depreciation 1,216.98 1,056.76 1,064.26 908.83
Profit before share of loss of Joint Venture, 15,359.84 10,047.84 9,673.75 3,744.45
exceptional items and tax
Share of loss from Joint Venture - - - -
Profit before exceptional items and tax 15,359.84 10,047.84 9,673.75 3,744.45
Exceptional items - - - 530.50
Profit before tax 15,359.84 10,047.84 9,673.75 4,274.95
Taxation
-Current tax 3,277.76 3,173.53 1,712.83 972.83
-Deferred tax 193.84 (779.46) 511.79 (167.48)
-Short or excess provision for income tax 5.74 45.67 (5.71) 43.83
Net profit for the year 11,882.50 7,608.10 7,454.84 3,425.77
Other Comprehensive Income 92.14 (243.17) (98.55) (211.07)
Total Comprehensive Income - - 7,356.29 3,214.70
Total Comprehensive Income before Non 11,974.64 7,364.93 - -
Controlling interest
Attributable to:
Owners of the Company 11,971.12 7,358.03 - -
Non-controlling interests 3.52 6.90 - -
Corporate Overview
(` in Million)
Particulars Consolidated Standalone
2021-22 2020-21 2021-22 2020-21
Less: Appropriations
Dividend (1,328.20) (1,135.41) (1,328.21) (1,135.41)
Dividend Distribution Tax - - - -
Statutory Reports
Transfer to/from Other Reserves (3,126.57) (1,624.48) (1,952.30) (686.80)
Change in Minority 3.67 2.73 - -
On account of Merger - - - -
Add: Balance brought forward from the previous 15,472.90 10,872.03 4,586.23 3,193.73
year
Balance to be carried forward 22,992.90 15,472.90 8,662.01 4,586.23
Financial Statements
Transfer to Reserve
The Company during the year under review has transferred below mentioned amount to General Reserve out of the
Retained Earnings. Further, in accordance with Section 45 IC of the Reserve Bank of India Act, 1934, the Company has
also transferred below mentioned amount to Special Reserve.
(` in Million)
Particulars Consolidated Standalone
2021-22 2021-22
Special Reserve during the year (Pursuant to Section 45 IC of the Reserve 2,053.51 1,952.30
Bank of India Act, 1934)
Special Reserve during the year (Pursuant to Section 29C of National 1,156.00 -
Housing Bank Act, 1987)
General Reserve during the year 0.65 0.65
2. REVIEW OF BUSINESS AND OPERATIONS AND STATE y-o-y and Microfinance loans, which grew by 30%
OF AFFAIRS OF YOUR COMPANY y-o-y. The synergistic products of Construction &
During the year under review, your Company’s total Real Estate finance and Capital Market loans continue
income, on a consolidated basis, amounted to to have a declining share in the portfolio.
` 70,062 Million compared to ` 59,897 Million in the We have transferred a substantial part of Construction
previous year. We recorded our highest ever pre- & Real Estate (“CRE”) loan assets that are in the
provision operating profit of ` 23,464 Million during the form of non-convertible debentures to an Alternative
year, driven by volume growth and reduction in cost of Investment Fund. (“AIF”). The AIF has a target fund
funds compared to ` 20,018 Million in the previous year. size of ` 36,000 Million. The above transaction is in
Profit Before Tax stood at ` 15,360 Million compared to line with the Company’s strategy of focusing on retail
` 10,048 Million in the previous year and Profit After Tax lending.
(TCI post non-controlling interest) stood at ` 11,971
The AUM of the Company on standalone basis grew
Million compared to ` 7,358 Million in the previous year.
10% y-o-y to ` 211,086 Million from ` 191,988 Million
Our Loan Assets Under Management (“AUM”) grew in the previous year. The AUM of HFC grew 14%
15% y-o-y to ` 512,098 Million compared to ` 446,880 y-o-y to ` 236,174 Million as of March 31, 2022 from
Million in the previous year. The core segments of ` 206,937 Million in the previous year and that of
our portfolio viz. Home loans, Gold loans, Business Samasta grew 35% y-o-y to ` 64,838 Million as on
loans and Microfinance loans, grew faster at 20% March 31, 2022 from ` 47,956 Million in the previous
y-o-y to ` 476,688 Million compared to ` 396,324 year. Our book continues to get more granular with
Million in the previous year. The primary drivers about 94% of the book as at March 31, 2022 being retail
of the AUM growth were Gold loans, which grew in nature. Moreover, 69% of the retail loans, excluding
by 23% y-o-y, Home loans, which grew by 23% Gold loans, are compliant with RBI’s Priority Sector
Corporate Overview
the Indian economy grew by FY 9.2% in FY 2021-22. FY 2021-22 and shares on which dividends were
This amelioration can be accredited to various growth unclaimed for seven (7) consecutive years, are
policies of the Central Government, reduced interest provided in the General Shareholders Information
rates and expeditious vaccination drive in the country. section of Corporate Governance report forming part
of this Annual Report.
Given the asynchronous nature of the second wave,
India’s Policy response constituted a differentiated 6. KEY INITIATIVES/DEVELOPMENTS
Statutory Reports
response, the Government announced various Public Issue of Debentures
production linked incentive schemes and committed During the year under review, the Company raised
nearly ` 1.97 Trillion for the next five years starting in through public issue of secured, redeemable, Non-
FY 2021-22. Furthermore, the Centre also extended the Convertible Debentures (“NCDs”), an amount
Emergency Credit Line Guarantee Scheme (“ECLGS”) aggregating to ` 8,429.88 Million. Additionally, HFC
till March 31, 2023 to provide credit support to small raised an amount of ` 6,558.23 Million through public
and micro organizations. As of March 2022, loans issue of unsecured, subordinated, redeemable,
sanctioned under ECLGS had crossed ` 3.19 Trillion. NCDs and ` 4,043.87 Million raised through secured,
Financial Statements
redeemable NCDs. These NCDs are listed and traded
(Source: Economic Survey 2021-22, Union Budget
on the National Stock Exchange of India Limited
2022)
(“NSE”) and BSE Limited (“BSE”).
4. DIVIDEND
Issuance of Non-Convertible Debentures on a Private
During the year under review, the Board of Directors Placement basis
of the Company declared and paid an interim dividend
During the year under review, the Company raised
of ` 3.50/- per equity share (175%) (i.e. 1.75 times of
through Private Placement of Redeemable NCDs an
the Face Value of ` 2/- per equity share) in accordance
amount aggregating to ` 7,200 Million. These NCDs
with the Dividend Distribution Policy of the Company.
are listed and traded on NSE and/or BSE.
This led to an outgo of ` 1,328.20 Million (including tax
deducted at source). Your Directors recommend that Additionally, during the year under review, HFC and
the said interim dividend be considered as final. Samasta raised ` 7,650.20 Million and ` 1,248 Million
respectively through Private Placement of Redeemable
In terms of the provisions of Regulation 43A of the SEBI
(Listing Obligations and Disclosure Requirements) NCDs. The NCDs issued by HFC were listed on NSE
Regulations, 2015 (“Listing Regulations”), the Board while NCDs issued by Samasta were listed on BSE.
of Directors of the Company has adopted a Dividend National Housing Bank Refinance
Distribution Policy which is annexed as “Annexure-VII” During the year under review, National Housing Bank
to this report and is also available on the website of
(“NHB”) sanctioned ` 12,950 Million refinance facility to
the Company i.e. https://storage.googleapis.com/iifl-
HFC. HFC availed ` 12,338.40 Million of refinance facility
finance-storage/files/2022-01/Dividend_distribution_
from NHB under various refinance schemes during the
policy_IIFL_Finance_Limited_2022.pdf.
year ended March 31, 2022.
5.
INVESTOR EDUCATION AND PROTECTION FUND
Additionally, during the year under review, Mudra
(“IEPF”)
and NABARD have refinanced ` 2,000 Million and
In accordance with the applicable provisions of ` 13,000 Million respectively under refinance facility
the Companies Act, 2013 (“the Act”) read with to the Company. SIDBI and NABARD have refinanced
Investor Education and Protection Fund Authority ` 2,000 Million and ` 3,600 Million respectively to
(Accounting, Audit, Transfer and Refund) Rules, 2016 Samasta.
(“IEPF Rules”), all unclaimed dividends/interest and
Funds raised by way of other Borrowings
principal on NCDs are required to be transferred by
the Company to the IEPF, after completion of seven During the year under review, the Company raised
(7) years. Further, according to the IEPF Rules, the ` 24,292.50 Million through term loan from various
shares on which dividend has not been claimed by banks. Additionally, during the year under review,
the Members for seven (7) consecutive years or HFC raised ` 31,900 Million through term loans and
more shall be transferred to the demat account of the Samasta raised ` 30,430 Million through term loans
IEPF Authority. from various banks.
Buyback of Overseas Dollar Bond • IIFL Finance was listed as an “Iconic Brand” by
During the year under review, in relation to the US$ the Economic Times.
400 Million, 5.875% Notes Due 2023 (“Notes”), the
• IIFL Finance’s ‘MyMoney App’ received award
Company bought back US $ 60.30 Million worth of
for ‘Quick Loan Approval’ at the Asian BFSI
Notes. The Company had raised US $ 400 Million
Leadership Awards.
through issue of Medium Term Notes under Secured
Medium Term Note Programme in February 2020 at • IIFL Finance received ‘Most Admired Financial
an effective issue price of US $ 998.75 per US $ 1000 Services Company’ Award at the Asian BFSI
of face value, to fund its business growth. Notes of Leadership Awards.
US $ 384 million were outstanding as on March 31,
• IIFL Finance’s ‘MyMoney App’ received Best
2021. During FY 2021-22, the Company had bought
Finance App at National Awards for Excellence in
back Notes of US $ 60.30 Million including US $ 50
Digital Marketing.
Million at par through an open tender offer in March,
2022. The buyback of US $ 50 Million was funded by • IIFL Finance received award for the best financial
corresponding loan of the same amount from a global inclusion initiative at National Awards for
bank. After these buybacks, Notes of US $ 323.70 Excellence in BFSI.
Million remained outstanding as on March 31, 2022.
• IIFL Finance’s #UmeedwaliSeedhiBaat received
Listing of Bonds on NSE IFSC Silver in the Impact Digital Influencer Award
During the year under review, US $ 376 Million of (Best BFSI Campaign in Small Budget Campaign
5.875% Fixed Rate Senior Secured Notes were listed category).
on NSE IFSC Limited on September, 2021. As on March
• IIFL Finance received Great Place to Work
31, 2022, US $ 323.70 Million bonds were outstanding.
Certification.
Non-Convertible Debentures issued to Asian
• IIFL Finance received – The Most Preferred Brand
Development Bank
Award 2021 for Sustained Brilliance in Brand
During the year under review, HFC has raised US $
Building at Marksmen Daily Awards.
68 Million by issue of NCDs to Asian Development
Bank (“ADB”) to improve funding to affordable green • IIFL Finance’s ‘Gold Loan at Home’ product
housing for lower-income groups in India. 80% will be received ‘Customer Services Excellence Award’
earmarked for women borrowers and 20% for green- at the World BFSI Congress.
certified homes.
• IIFL Finance’s ‘WhatsApp Loan’ product received
Co-origination/co-lending tie-up with banks ‘Best Use of Mobile Technology in Financial
During the year under review, the Company and its
Services’ award at the World BFSI Congress.
Corporate Overview
• Mr. Saurabh Kumar, Business Head-Gold Loans, 7. CORPORATE SOCIAL RESPONSIBILITY (“CSR”)
received the ‘Most Admired BFSI Professional’ INITIATIVES
Award at World BFSI Congress.
The CSR Committee of the Board has formulated and
• Mr. Mayank Sharma, Senior Director Investments, recommended to the Board a CSR Policy indicating the
Gold Investments, received the ‘Most Admired CSR activities which can be undertaken by the Company.
BFSI Professional’ Award at the World BFSI The Board approved the CSR Policy which is available
on the website of the Company i.e. https://storage.
Statutory Reports
Congress.
googleapis.com/iifl-finance-storage/files/2022-04/
• IIFL Foundation’s ‘Maa Baadi’ project received CSR_Policy_IIFLFinance_1April2022.pdf
the ‘Best Environment Friendly Project’ Award at
IIFL group has set-up India Infoline Foundation (“IIFL
the Global CSR Excellence & Leadership Awards.
Foundation”) a Section 8 Company incorporated under
• IIFL Foundation’s ‘Drone Vaccine Delivery’ the Act, which acts as the principal arm to undertake
project received the ‘Most Innovative Solution for CSR initiatives on behalf of the Company and its
COVID-19’ award at the Global CSR Excellence & subsidiaries. IIFL Foundation through its CSR initiatives
Financial Statements
Leadership Awards. addresses 4 thematic areas – Health, Education,
Livelihood & Poverty Alleviation, collectively – HELP
• IIFL Foundation received the award for ‘Most
Outstanding Contribution to the Cause of As per Rule 4(2) of the Companies (Corporate Social
Education’ at the Global CSR Excellence & Responsibility Policy) Rules, 2014, IIFL Foundation has
Leadership Awards. registered itself with the Central Government by filing
the e-Form CSR-1 with the Registrar of Companies.
• Ms. Madhu Jain, Director, IIFL Foundation
received the ‘CSR Leadership’ Award at Global The Company has identified focus areas for CSR
CSR Excellence & Leadership Awards. initiatives which includes:
• IIFL Foundation received award for ‘Best Covid • Literacy initiative for Females
Training Solution’ at the Asian CSR Leadership • Development of Medical facilities at Government
Awards. Hospitals
• IIFL Foundation received award for ‘Best CSR • Development of Infrastructure at Government
Practice in Banking and Finance Industry’ at the Schools
Asian CSR Leadership Awards.
• Introduction of Electricity at Government Schools
• IIFL Foundation’s ‘Sakhiyon Ki Baadi’ program • Delivery of vaccines by Drone
received the ‘Best Innovation in CSR Practices
• Support to Educational Research Programs
Award’ at the Asian CSR Leadership Awards.
• Fight against outbreak of COVID-19 pandemic
• IIFL Foundation was recognized as ‘Champion of
Change’ by ET Now for bringing over 36,000 out- • Support to Shelter Home & Education of financially
of-school girl children into education fold. weaker group
• IIFL Foundation received India’s Greatest CSR • Development of market place for women to
Brand recognition by Asia One. promote livelihood
• Ms. Madhu Jain, Director, IIFL Foundation received During FY 2021-22, the Company deployed 2% of its
‘BlackSwan Award for Women Empowerment’ average net profits of the preceding three Financial Year
(computed as per the relevant provisions of the Act) on CSR
from the United Nations Global Compact network
projects, utilizing the required amount on various social
for her impactful leadership towards girl child
development activities, details thereof are mentioned in
education in India.
the CSR Annual Report, attached as “Annexure-I” to this
• IIFL Foundation received Best Sustainability report. The unspent amount of the ongoing project has
Education Program at Global Sustainability been deposited in a separate bank account.
Leadership Awards.
Further, during the year under review, impact
• IIFL Foundation received Sustainable Carbon assessment was not applicable to the Company.
Management Award at Global Sustainability However, the same has been conducted by IIFL
Leadership Awards. Foundation.
Corporate Overview
the Company to conduct remote internal audit A certificate from the Secretarial Auditor of the
in future as well. A comprehensive plan, scoping Company confirming that the Scheme has been
and deployment of data analytics, facilitated implemented in accordance with SBEB Regulations
seamless and effective conduct of remote and as substituted by the SEBI (Share Based Employee
internal audits during the year. Benefits and Sweat Equity) Regulations, 2021 would be
placed at the ensuing Annual General Meeting (“AGM”)
B. Internal Controls over Financial Reporting:
for inspection by Members through electronic means.
Statutory Reports
The Company’s internal financial controls are
commensurate with the scale and complexity of The relevant disclosures pursuant to Rule 12(9) of
its operations. The controls were tested during the Companies (Share Capital and Debentures) Rules,
the year and no reportable material weaknesses 2014 and Regulation 14 of the SEBI (Share Based
either in their design or operations were observed. Employee Benefits and Sweat Equity) Regulations,
The Company has put in place robust policies 2021 are uploaded on the website of the Company
and procedures, which inter alia, ensure integrity i.e. www.iifl.com and the same is available for
in conducting its business, safeguarding of its inspection by the Members at the Registered Office of
Financial Statements
assets, timely preparation of reliable financial the Company on all working days, except Saturdays,
information, accuracy and completeness in Sundays and Public Holidays, during business hours
maintaining accounting records and prevention and through electronic means. Members can request
and detection of frauds and errors. the same by sending an email to shareholders@iifl.
com till the AGM.
12. EMPLOYEES STOCK OPTION SCHEMES (“ESOS”)
The Company has in force the following Schemes The relevant disclosures in terms of Ind AS 102,
which are prepared as per the provisions of SEBI relating to share based payment, forms part of note 40
(Share Based Employee Benefits) Regulations, 2014 of the notes to the Standalone Financial Statements
(“SBEB Regulations”): and note 39 of the notes to the Consolidated Financial
Statements of the Company.
(a) IIFL Finance Employees Stock Option Plan 2007
(“ESOS Scheme 2007”) 13.
PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS
(b) IIFL Finance Employee Stock Option Plan 2008
The details of Loans, Guarantees and Investments
(“ESOS Scheme 2008”)
covered under the provisions of Section 186 of the
(c) IIFL Finance Employee Stock Option Plan 2020 - Act read with the Companies (Meetings of Board and
Merger Scheme (“ESOS Scheme 2020”) its Powers) Rules, 2014 are given in the Standalone
Financial Statements note no. 8, 9 and 39.
Further, no stock options were granted to the
employees during the year under the ESOS Scheme 14. SUBSIDIARY COMPANIES
2007 and ESOS Scheme 2020. As on March 31, 2022, the Company has two (2)
The Company granted 9,25,000 Stock Options to subsidiaries, one (1) step down subsidiary. The
eligible employees during the year under ESOS Scheme Company does not have any Associate(s)/Joint
2008. Venture(s):
During the year under review, 14,360 stock options Sr. No. Name of the Subsidiaries
granted under ESOS Scheme 2008 got lapsed and the 1. IIFL Home Finance Limited
same have been added back to the pool, which can 2. IIFL Samasta Finance Limited*
be used for further grant and 1,98,225 stock options 3. IIHFL Sales Limited
granted under ESOS Scheme 2020 got lapsed and the
*Name of the Company was changed to IIFL Samasta
same are not available for further grant.
Finance Limited from Samasta Microfinance Limited
The aggregate number of stock options outstanding as vide special resolution passed by the Members of the
on March 31, 2022 is 11,47,105 under ESOS Scheme Company at their Extraordinary General Meeting held
2008 and 35,72,033 under ESOS Scheme 2020. on July 24, 2021.
here is no material change in Employees’ Stock
T During the year under review, IIHFL Sales Limited was
Option Scheme during the year under review and the incorporated on September 28, 2021 as a wholly owned
Scheme is in line with SBEB Regulations. subsidiary of HFC, which is a wholly owned subsidiary
Corporate Overview
Systemically Important Non-Deposit taking Company Ms. Sneha Patwardhan - Company Secretary
and Deposit taking Company Directions, 2016, as are the Key Managerial Personnel as per
amended (“RBI Master Directions”), the Management the provisions of the Act and Rules framed
Discussion and Analysis Report is attached as part of thereunder.
the Annual Report.
c.
Appointment and Cessation of Directors and
19. DIRECTORS AND KEY MANAGERIAL PERSONNEL Key Managerial Personnel
Statutory Reports
The Board of Directors of the Company are eminent Appointment/Re-appointment:
persons of proven competence and integrity. Besides
In accordance with Section 152 of the Act read
experience, strong financial acumen, strategic
with Article 157 of the Articles of Association of
astuteness and leadership qualities, they have a
the Company, Mr. Chandran Ratnaswami is liable
significant degree of commitment to the Company and
to retire by rotation at the ensuing AGM and being
devote adequate time to meetings and preparation. In
terms of the requirement of the Listing Regulations, eligible has offered himself for re-appointment.
the Board has identified core skills, expertise and The Board recommends the same for the
Financial Statements
competencies of the Directors in the context of the approval of Members.
Company’s business for effective functioning, which Mr. Vibhore Sharma and Mr. Ramakrishnan
are detailed in the Corporate Governance Report. Subramanian were appointed as Additional
The Board meets at regular intervals to discuss and Directors (Non-Executive Independent) on the
decide on Company/business Policy and strategy,
Board w.e.f. July 01, 2021 and September 06,
apart from other Board business. The Board exhibits
2021 respectively and subsequently the Members
strong operational oversight with regular business
at their Extra Ordinary General Meeting of the
presentations of meetings. The Company has
Company held on September 30, 2021 approved
complied with secretarial standards issued by the
their appointment as Non-Executive Independent
Institute of Company Secretaries of India on Board
Director(s) w.e.f. July 01, 2021 and September 06,
Meetings and General Meetings.
2021 respectively.
a. Directors
Further, pursuant to SEBI (Listing Obligations and
As on March 31, 2022, the Board comprises
Disclosure Requirements) (Second Amendment)
of nine (9) Directors out of which six (6) are
Regulations, 2022, the Chairman of the Board may
Independent Directors including one (1) Woman
be a Non-Executive Director and not related to the
Director.
Managing Director or the Chief Executive Officer.
The Board comprises of Mr. Arun Kumar Purwar As a measure of good corporate governance
–Independent Director & Chairman, Mr. Nirmal practices, the Company suo moto appointed Mr.
Jain and Mr. R Venkataraman as Executive Arun Kumar Purwar as Chairman of the Board
Directors of the Company in their capacity of w.e.f. April 01, 2022.
Managing Director and Joint Managing Director,
respectively. Mr. Nilesh Vikamsey, Mr. Vijay Further during the year, the Board of Directors
Kumar Chopra, Ms. Geeta Mathur, Mr. Vibhore approved appointment of Mr. Nirmal Jain as
Sharma and Mr. Ramakrishnan Subramanian as Managing Director of the Company for the period
Independent Directors. Mr. Chandran Ratnaswami of five (5) years and change in designation of
is a Non-Executive Director of the Company. The Mr. R Venkataraman as Joint Managing Director
Board composition is in compliance with the of the Company for his remaining tenure w.e.f.
requirements of the Act, Listing Regulations and April 01, 2022, respectively. Approval of
the RBI Master Directions. the Members by ordinary resolutions for
regularization of the appointment of Mr. Nirmal
The Board is of the opinion that the Independent
Directors of the Company have the required Jain as Managing Director and change in
integrity, expertise and experience (including the designation of Mr. R Venkataraman as Joint
proficiency). Managing Director has been sought in the Notice
convening the 27th AGM of the Company.
b. Key Managerial Personnel
Cessation:
Mr. Nirmal Jain – Managing Director, Mr. R
Venkataraman - Joint Managing Director, During the year, Mr. Nagarajan Srinivasan resigned
Mr. Rajesh Rajak – Chief Financial Officer and from the Board of Directors of the Company w.e.f.
Corporate Overview
Senior Management Personnel of the Company. The Risk Management Committee
Nomination and Remuneration Policy is attached to The Risk Management Committee comprises of
this Annual Report and is also available on the website Ms. Geeta Mathur, Independent Director (Chairperson
of the Company i.e. https://storage.googleapis.com/ of the Committee), Mr. R Venkataraman, Joint
iifl-finance-storage/files/2021-03/Nomination_and_ Managing Director, Mr. Nilesh Vikamsey, Independent
Remuneration_Policy.pdf Director, Mr. Ramakrishnan Subramanian, Independent
Director and Mr. Sanjeev Srivastava, Chief Risk Officer.
Statutory Reports
The said Policy, the details of Committee meetings
held during the year under review and quorum are The composition, role, terms of reference and powers
provided in the Corporate Governance Report which of the Risk Management Committee are in conformity
forms part of this Annual Report. with the requirements of Regulation 21 of the Listing
CSR Committee Regulations and RBI Master Directions and the same
has been provided in the Corporate Governance Report
The CSR Committee comprises of Mr. Vibhore Sharma,
which forms part of this Annual Report.
Independent Director (Chairman of the Committee),
Financial Statements
Mr. R Venkataraman, Joint Managing Director, The details of Committee meetings held during the
Mr. Nilesh Vikamsey, Independent Director and year under review and quorum are provided in the
Mr. Vijay Kumar Chopra, Independent Director . Corporate Governance Report.
The composition, role, terms of reference and Asset Liability Management Committee
powers of CSR Committee are in conformity with The Asset Liability Management Committee (“ALCO”)
the requirements of the Act and same is provided in comprises of Mr. R Venkataraman, Joint Managing
Corporate Governance Report which forms part of this Director (Chairman of the Committee), Mr. Vijay Kumar
Annual Report. Chopra, Independent Director, Mr. Arun Kumar Purwar,
Independent Director, Mr. Ramakrishnan Subramanian,
The Committee has approved CSR Policy of the
Independent Director, Mr. Rajesh Rajak, Chief Financial
Company and the same is available on the website
of the Company i.e. www.iifl.com. The Annual Report Officer, Mr. Sanjeev Srivastava, Chief Risk Officer and
on CSR activities in accordance with the Companies Mr. Govind Modani, V.P. Treasury.
(Corporate Social Responsibility Policy) Rules, 2014 is The composition, role, terms of reference and powers
attached as “Annexure-I” to this report. of the ALCO are in conformity with the requirements
of the provisions of RBI Master Directions and Asset
The details of Committee meeting held during the
Liability Management (“ALM”) System for NBFCs –
year under review and quorum are provided in the
Corporate Governance Report which forms part of this Guidelines and the same has been provided in the
Annual Report. Corporate Governance Report which forms part of this
Annual Report.
Stakeholders’ Relationship Committee
The details of Committee meetings held during the
The Stakeholders’ Relationship Committee comprises year under review and quorum are provided in the
of Mr. Arun Kumar Purwar, Independent Director Corporate Governance Report which forms part of this
(Chairman of the Committee), Mr. Vijay Kumar Chopra, Annual Report.
Independent Director and Mr. R Venkataraman, Joint
IT Strategy Committee
Managing Director.
The IT Strategy Committee comprises of Mr. Vibhore
The composition, role, terms of reference and powers
Sharma, Independent Director, (Chairman of the
of the Stakeholders’ Relationship Committee are
Committee), Mr. Nilesh Vikamsey, Independent
in conformity with the requirements of the Act and
Director, Ms. Geeta Mathur, Independent Director,
Regulation 20 of the Listing Regulations and the same
Mr. Arun Kumar Purwar, Independent Director, Mr.
has been provided in the Corporate Governance Report
Ramakrishnan Subramanian, Independent Director,
which forms part of this Annual Report.
Mr. Aditya Sisodia, Chief Information Officer/Chief
The details of Committee meeting held during the year Technology Officer, Mr. Mitesh Vora, Head – IT
under review, quorum and status of complaints are Infrastructure, Mr. Sanjeev Srivastava, Chief Risk
provided in the Corporate Governance Report which Officer and Mr. Shanker Ramrakhiani, Chief Information
forms part of this Annual Report. Security Officer.
Corporate Overview
• Declaration by Independent Directors regional and industry experience, cultural
The Company has received necessary and geographical backgrounds, age,
declaration from each Independent Director ethnicity, race, gender that will help us retain
of the Company that they meet the criteria our competitive advantage. The Policy
of independence laid down in Section 149(6) adopted by the Board sets out its approach
of the Act and Regulation 16(1)(b) of the to diversity. The Policy is available on the
Listing Regulations. website of the Company i.e. www.iifl.com.
Statutory Reports
The above declarations were placed before • Remuneration Policy and criteria for
the Board and in the opinion of the Board selection of candidates for appointment of
all the Independent Directors fulfils the Directors
conditions specified under the Act and the
The Company has in place Policy for
Listing Regulations and are Independent
remuneration of Directors and Key
to the management and that there has
Managerial Personnel as well as a well
been no change in the circumstances or
Financial Statements
defined criterion for the selection of
situation, which exist or may be reasonably
candidates for appointment to the said
anticipated, that could impair or impact
positions, which has been approved
the ability to discharge their duties with
by the Board.
an objective of independent judgment and
without any external influence. The nomination and remuneration Policy
All the Independent Directors of the has been disclosed in the Corporate
Company have registered themselves on the Governance Report which forms part of
Independent Directors’ Databank mandated this Annual Report and is also available on
by the Indian Institute of Corporate Affairs the website of the Company i.e. https://
as per the requirements of Rule 6 of the storage.googleapis.com/iifl-finance-
Companies (Appointment and Qualifications storage/files/2021-03/Nomination_and_
of Directors) Rules, 2014. Remuneration_Policy.pdf
• Fit and Proper Criteria & Code of Conduct 21. RISK MANAGEMENT
Your Company has received undertaking Your Company has a well-defined risk management
and declaration from each Director on fit framework in place and a robust organizational
and proper criteria in terms of the provisions structure for managing and reporting on risks.
of RBI Master Directions. The Board of
Directors has confirmed that all existing The Risk Management Committee comprises majorly
Directors are fit and proper to continue to of Independent Directors with Ms. Geeta Mathur,
hold the appointment as Directors on the Independent Director as the Chairperson, Mr. R
Board, as reviewed and recommended by the Venkataraman, Joint Managing Director, Mr. Nilesh
Nomination and Remuneration Committee Vikamsey, Independent Director, Mr. Ramakrishnan
on fit and proper criteria under RBI Subramanian, Independent Director and Mr. Sanjeev
Master Directions. Srivastava, Chief Risk Officer.
All the Directors of the Company have The role, terms of reference and powers of the Risk
affirmed compliance with the Code of Management Committee are in conformity with the
Conduct of the Company. The Declaration requirements of Regulation 21 of the Listing Regulations
of the same is provided in the Corporate and RBI Master Directions and the same has been
Governance Report which forms part of this provided in the Corporate Governance Report. The
Annual Report. Risk Management Committee is authorized to
• Board Diversity monitor and review risk management plan and is also
The Company recognizes and embraces empowered, inter alia, to review and recommend to the
the importance of a diverse Board in its Board the modifications to the Risk Management Policy.
success. The Company believes that a The Risk Management Policy is approved by the Board
truly diverse Board will leverage difference and inter alia, includes identification of risks, including
in thought, perspective, knowledge, skills, strategic, financial, credit, market, liquidity, security,
Corporate Overview
27. CREDIT RATING
The Company’s financial discipline and prudence is reflected in the strong credit ratings prescribed by rating agencies. The
following Credit ratings were assigned to the Company as on March 31, 2022.
Rating as on Rating as on
Rating Agency Product
March 31, 2022 March 31, 2021
Non-Convertible Debentures CARE AA Stable CARE AA Negative
Statutory Reports
CARE Long Term Bank Facilities CARE AA Stable CARE AA Negative
Subordinate Debt CARE AA Stable CARE AA Negative
Non-Convertible Debentures [ICRA]AA (Stable) [ICRA]AA (Negative)
Commercial Paper [ICRA]A1+ [ICRA]A1+
Subordinate Debt [ICRA]AA (Stable) [ICRA]AA (Negative)
Long Term Bank Lines [ICRA]AA (Stable) [ICRA]AA (Negative)
Financial Statements
ICRA Limited Long Term Principle Protected Equity PP-MLD[ICRA] AA
PP-MLD [ICRA AA (Negative)
Linked Debenture (Stable)
Long Term Principle Protected Market PP-MLD[ICRA] AA
PP-MLD [ICRA]AA (Negative)
Linked Debenture (Stable)
• During the year, CARE & ICRA reaffirmed the rating and has revised the outlook from Negative to Stable.
Corporate Overview
Section 134 of the Act The Joint Statutory Auditors’ compliance with the conditions of Corporate
Report is enclosed with the financial statements in the Governance is attached to the report on Corporate
Annual Report. Governance.
31. SECRETARIAL AUDIT Your Company has complied with all the norms
The Board had appointed M/s. Nilesh Shah & prescribed by the RBI including the Fair Practices Code,
Anti Money Laundering and Know Your Customer
Associates, Practicing Company Secretaries to
(“KYC”) guidelines besides other guidelines.
Statutory Reports
conduct Secretarial Audit of the Company for FY
2021-22. The Secretarial Auditor had conducted the 35. COMPLIANCE WITH THE SECRETARIAL STANDARDS
audit and their report was placed before the Board. The Board of Directors affirms that the Company has
The report of the Secretarial Auditor is annexed complied with the applicable mandatory Secretarial
herewith as “Annexure–II” to this report. There are no Standards issued by the Institute of Company
qualifications or observations in the report. Secretaries of India.
Pursuant to Regulation 24A of the Listing Regulations, 36. DEPOSITS
Financial Statements
a listed company is required to annex a secretarial During the period under review, your Company did
audit report of its material unlisted subsidiary to its not accept/renew any deposits within the meaning of
Directors’ Report. The Secretarial Audit Reports of the Section 73 of the Act and the Rules made thereunder.
material subsidiaries of the Company i.e. IIFL Home
37. DIRECTORS’ RESPONSIBILITY STATEMENT
Finance Limited and IIFL Samasta Finance Limited for
FY 2021-22 is annexed herewith as “Annexure–III” & Pursuant to the requirement under Section 134(5) of
“Annexure-IV” respectively to this Report. the Act and to the best of their knowledge and belief
and according to the information and explanation
32. REPORTING OF FRAUDS BY AUDITORS obtained by your Directors, your Directors hereby
During the year under review, the Joint Statutory confirm that:
Auditors and the Secretarial Auditor have not reported
a) in the preparation of the annual accounts, the
any instances of frauds committed in the Company by
applicable accounting standards had been
its Officers or Employees to the Audit Committee under
followed and there were no material departures;
Section 143(12) of the Act, details of which needs to be
mentioned in this Report. b)
the directors had selected such accounting
policies and applied them consistently and made
33. RBI DIRECTIONS judgments and estimates that are reasonable and
Your Company complies with the direction(s), prudent so as to give a true and fair view of the
circular(s), notification(s) and guideline(s) issued by the state of affairs of the Company at the end of the
RBI as applicable to your Company as a Systemically Financial Year and of the profit of the Company
Important Non-Deposit taking NBFC. for that period;
The Company has in place the system of ensuring c) the directors had taken proper and sufficient care
compliance with applicable provisions of Foreign for the maintenance of adequate accounting
Exchange Management Act, 1999 and rules made records in accordance with the provisions of the
thereunder as amended from time to time. Act for safeguarding the assets of the Company
and for preventing and detecting fraud and other
34. CORPORATE GOVERNANCE irregularities;
The Company is committed to maintain the highest
d) the directors had prepared the annual accounts
standards of Corporate Governance and adhere to
on a going concern basis;
the Corporate Governance requirements set out by
Securities and Exchange Board of India. The Company e) the directors had laid down internal financial
has also implemented several best Corporate controls to be followed by the Company and that
Governance practices as prevalent globally. The report such internal financial controls are adequate and
on Corporate Governance as stipulated under the were operating effectively; and
Listing Regulations and the RBI Master Directions f)
the directors had devised proper systems to
forms an integral part of this Report. The requisite ensure compliance with the provisions of all
certificate from M/s. Nilesh Shah & Associates, applicable laws and that such systems were
Practicing Company Secretaries confirming adequate and operating effectively.
(iv) The Central Government has not prescribed the maintenance of cost records for any of the products of the Company
under sub-section (1) of Section 148 of the Act and the Rules framed thereunder.
(v) There is no change in nature of business of the Company during the year.
(vi) The Company has not defaulted in repayment of loans from banks and financial institutions.
(vii) There were no delays or defaults in payment of interest/principle of any of its debt securities.
Particulars Catalyst Trusteeship IDBI Trusteeship Milestone Trusteeship HSBC Limited Vistra ITCL (India)
Limited Services Limited Services Private Limited
Limited
Address GDA House, 1st Floor, Asian Building, GDA House, 1st Floor, Level 24, HSBC 6th Floor, The IL&FS
Plot No. 85 S. No. 94 Ground Floor, 17, Plot No. 85 S. No. 94 Main Building, 1 Financial Center ,
& 95, Bhusari Colony R. Kamani Marg, & 95, Bhusari Colony Queen’s Road, Plot No. C–22, G
(right), Kothrud, Pune – Ballard Estate, (right), Kothrud, Pune– Central Hong Block, Bandra Kurla
411038 Mumbai- 400001 411038 Kong. Complex Bandra
(East), Mumbai
400051
Contact +912249220555 +912240807001 +912262886119 +85228418100 +912269300000
Details
Email ID complianceCTL- itsl@idbitrustee. COMPLIANCE@ isvmenatbd@ VistraITCL.
Mumbai@ctltrustee. com MILESTONETRUSTEE. hsbc.com Support@vistra.
com IN com
Website www.catalysttrustee. www.idbitrustee. www.milestonetrustee.in www.gbm. www.vistraitcl.com
com com hsbc.com
39. APPRECIATION
Your Directors place on record their sincere appreciation for the assistance and guidance provided by the Reserve Bank
of India, the Ministry of Corporate Affairs, the Securities and Exchange Board of India, government and other regulatory
Authorities, stock exchanges, other statutory bodies, Company’s bankers, Members and employees of the Company for
the assistance, cooperation and encouragement and continued support extended to the Company.
Your Directors also gratefully acknowledge all stakeholders of the Company viz. customers, Members, dealers, vendors,
banks and other business partners for the excellent support received from them during the year. Our employees
are instrumental in helping the Company scale new heights, year after year. Their commitment and contribution
is deeply acknowledged. Your involvement as Members is also greatly valued. Your Directors look forward to your
continuing support.
Corporate Overview
The Annual Report on Corporate Social Responsibility (CSR) Activities of IIFL Finance Limited
[Pursuant to clause (o) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 9 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014]
Statutory Reports
• Fairness in all our transactions
• Integrity and Honesty in letter, in spirit and in all our dealings with people
• Transparency in all our dealings with various stakeholders
By applying these values to the CSR projects, the Company, undertakes initiatives that create sustainable growth and
empowers underprivileged sections of society.
The focus areas prioritized by the Company in its CSR strategy are given below:
Financial Statements
• Literacy initiative for Females
• Development of Medical facilities at Government Hospitals
• Development of Infrastructure at Government Schools
• Introduction of Electricity at Government Schools
• Delivery of vaccines by Drone
• Support to Educational Research Programs
• Fight against outbreak of COVID-19 pandemic
• Support to Shelter Home & Education of financially weaker group
• Development of market place for women to promote livelihood
The CSR Projects of the Company are managed by India Infoline Foundation (“IIFL Foundation”). IIFL Foundation through
its CSR initiatives addresses 4 thematic areas – Health, Education, Livelihood & Poverty Alleviation, collectively –
HELP.
The CSR Policy adopted by the Company is available on the website of the Company i.e. https://storage.googleapis.
com/iifl-finance-storage/files/2022-04/CSR_Policy_IIFLFinance_1April2022.pdf
4
r. Nirmal Jain was appointed as Managing Director of the Company w.e.f. April 01, 2022 and that Mr. Nirmal Jain
M
ceased to be the Chairman and Member of the Committee w.e.f. April 28, 2022.
Details of CSR projects is available on the website of the Company i.e. https://www.iifl.com/finance/iifl-foundation
4. IMPACT ASSESSMENT OF CSR PROJECTS IN PURSUANCE OF SUB-RULE (3) OF RULE 8 OF THE COMPANIES
(CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014:
Further, during the year under review impact assessment was not applicable to the Company. However, the same has
been conducted by IIFL Foundation in respect of ‘Sakhiyon ki Baadi’ program.
Sr. Financial Year Amount available for set-off from Amount required to be set-off for the
No. preceding Financial Years (in `) Financial Year, if any (in `)
7. CSR OBLIGATION:
a. Two percent of average net profit of the Company as per Section 135(5) 8,20,00,000/-
b. Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years NIL
c. Amount required to be set off for the Financial Year, if any NIL
Corporate Overview
(b) Details of CSR amount spent against ongoing projects for the Financial Year:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sr. Name of Item from Local area Location of the project Project Amount Amount spent Amount Mode of Mode of Implementation
No. the Project the list of (Yes/No) duration allocated for the in the current transferred Implementation Through Implementing
activities in project Financial Year to Unspent - Direct Agency
Schedule (in `) (in `) CSR Account (Yes/ No)
VII to the for the
Act project as
State District per Section Name CSR
Registration
Statutory Reports
135(6)
(in `) number
1. Sakhiyon Promoting No Rajasthan Udaipur, 4 years 5,42,77,088.17/- 2,96,77,088.17/- 2,46,00,000/- No IIFL CSR00002470
ki Baadi Education Pratapgarh Foundation
2. Phulwari Promoting No Rajasthan Sarada 4 years 10,00,000/- 10,00,000/- Nil No IIFL CSR00002470
(Maa Bari) Education Foundation
TOTAL 5,52,77,088.17/- 3,06,77,088.17/- 2,46,00,000/-
(c) Details of CSR amount spent against other than ongoing projects for the Financial Year:
Financial Statements
(1) (2) (3) (4) (5) (6) (7) (8)
Sr. Name of the Item from Local Location of the project Amount spent Mode of Mode of Implementation
No. Project the list of area for the project Implementation – Through Implementing
activities in (Yes/No) (in `) – Direct Agency
Schedule State District (Yes/No) Name CSR
VII to the Registration
Act number
1. IIM Udaipur Promoting No Rajasthan Udaipur 90,00,000/- No IIFL CSR00002470
Education Foundation
2. Development Promoting No Rajasthan Udaipur 19,50,000/- No IIFL CSR00002470
at Government Healthcare Foundation
Hospital
3. Vaccine delivery Promoting No Maharashtra Palghar 9,80,000/- No IIFL CSR00002470
using Drone Healthcare Foundation
4. Ambulance Promoting No Tamil Nadu Coimbatore 24,51,530/- No IIFL CSR00002470
Healthcare Foundation
5. Development of Promoting No Rajasthan Rajsamand 12,75,000/- No IIFL CSR00002470
Ophthalmic Ward Healthcare Foundation
6. SevaKutir – Promoting No Madhya Khandwa 34,73,333.33/- No IIFL CSR00002470
Learning centre Education Pradesh Foundation
7. Government Promoting No Rajasthan Rajsamand 10,00,000/- No IIFL CSR00002470
School – Science Education Foundation
Laboratory
8. Solar installation Promoting No Maharashtra Palghar 11,11,320/- No IIFL CSR00002470
at Government Education Foundation
School
9. Mission Conquer Promoting No Maharashtra Palghar 24,00,000/- No IIFL CSR00002470
Covid – Oxygen Healthcare Foundation
Concentrators
10. Cycle Distribution Promoting No Maharashtra Palghar 1,71,700/- No IIFL CSR00002470
for students Education Foundation
(Girls)
11. Shelter Home Vocational Yes Maharashtra Mumbai 10,00,000/- No IIFL CSR00002470
skills Foundation
among
Children
12. School for Promoting Yes Maharashtra Mumbai 4,12,200.94/- No IIFL CSR00002470
Underprivileged Education Foundation
13. Developing Bazaar Eradicating No Maharashtra Nashik 11,88,012.97/- No IIFL CSR00002470
Hub – Gulabi Poverty Foundation
Gaon
14. Vaccination Drive Promoting Yes Maharashtra Mumbai 3,09,814.58/- No IIFL CSR00002470
Healthcare Foundation
TOTAL 2,67,22,911.82/-
(8b+8c+8d+8e)
9. (a) Details of Unspent CSR amount for the preceding three Financial Years:
Sr. Preceding Amount Amount Amount transferred to any fund specified Amount
No. Financial Year transferred to spent in the under Schedule VII as per Section 135(6), if remaining to
Unspent CSR Reporting any be spent in
Account under Financial Name Amount (in `) Date of transfer succeeding
Section 135(6) Year (in `) of the Financial Years
(in `) Fund (in `)
1. 2020-21 - - - - - -
2. 2019-20 - - - - - -
3. 2018-19 - - - - - -
TOTAL - - - - - -
(b) Details of CSR amount spent in the Financial Year for ongoing projects of the preceding Financial Years:
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sr. Project ID Name of the Financial Project Total amount Amount spent on Cumulative Status of
Project Year in duration allocated for the project in the amount spent the project -
No. which the the project reporting Financial at the end Completed /
project was (in `) Year (in `) of reporting Ongoing
commenced Financial Year
(in `)
1. IIFL-CSR- Sakhiyon ki 2020-21 4 years 9,00,00,000/- 2,96,77,088.17/- 3,89,21,193.17/- Ongoing
SKB01 Baadi
TOTAL 9,00,00,000/- 2,96,77,088.17/- 3,89,21,193.17/-
IIFL Foundation launched a scholarship to be awarded to Girls pursuing academic education in 9th grade and
upwards till Graduation.
The project is planned to support education of 1,000 girls in the State of Bihar, West Bengal, Odisha, Karnataka,
Tamil Nadu, Rajasthan and Maharashtra. A set of selected students studying in 9th and 10th Grade will be awarded a
Corporate Overview
scholarship of ` 3,500/- each, while those studying in 11th grade all the way till Graduation shall receive a scholarship
amounting to ` 5,000/- each.
Developing the dormant wards at the Maharana Bhupal Government Hospital, Udaipur (Rajasthan), to setup
Operation Theatres (“OT”), Intensive Care Unit (“ICU”), Outpatient Department (“OPD”), Cabins for Senior Doctors &
Resident Doctors and waiting area for family Members of the patients.
Statutory Reports
The development is carried along with installation of required medical equipment in the OT, OPD and ICU and
furnishing of the wards (Ceiling, Flooring, Electrical Fixtures).
IIFL Foundation partnered with Central and State Government to start Maharashtra’s first COVID-19 vaccine delivery
through drones to reach the inaccessible terrains in Jawhar taluka of Palghar district.
Financial Statements
This drone-based vaccine delivery is one of the country’s first vaccine delivery operations with a
5 kg payload capacity and range covering 25 kms in 9 minutes, which otherwise takes over 70 minutes to cover by
road (due to hilly region & poor road condition).
v. Ambulance:
Donated an Ambulance (Tamil Nadu) to offer free of cost service to marginalized population dwelling in rural
settlements.
IIFL Foundation helped to setup an Ophthalmic Ward at the Primary Health Centre (“PHC”) at Khamnore (Rural),
Rajasthan. This is the first and only facility of such kind in the Khamnore village, that shall be beneficial to people
residing in the rural hamlets in a radius of 30 kms from PHC. In next phase, IIFL Foundation is planning to setup
Ophthalmic Surgery ward.
A set of community-based learning centre for holistic development of children from marginalized communities.
Children are offered special coaching to excel in academics, given nutritious meals twice a day and engaged in
extra-curricular activities. A mini library with collection of 100 books is setup to improve reading and comprehension
skills. Special sessions are conducted on value education covering themes as – Self Awareness, Responsibility,
Ethics and Morals. The program functions in Khandwa District of Madhya Pradesh.
To improve infrastructure at Government Schools (Rural) and promote better facilities to students, we are
constructing Science Laboratories, Computer room and Sanitation Facility at Government Girls Senior Secondary
School (up to 12th Grade), GP – Khamnore, Rajasthan. Each year, over 500 girls will be benefited from this facility
and they will be enabled to pursue higher education and subsequently careers in science stream.
With this initiative IIFL Foundation intends to provide decentralized energy system to 50 Primary Schools
(Government) of Zilla Parishad at Palghar District (From Vikramgad, Jawahar, Mokhada and Wada), to not only fulfil
their need for electricity, but also helping to use of digital learning systems (Computers & Android Tablets). The
initiative helps to reduce carbon footprint and promotes SDG 7 – Affordable and Clean Energy.
IIFL Foundation donated oxygen concentrators at Maharashtra to Primary Health Care Centers (“PHCs”) &
Government Hospitals. The machines were handed to the local authorities - District Collector (IAS) and Chief
Medical & Health Officer (“CMHO”) of the respective blocks. The oxygen concentrators were installed at the PHCs &
panchayat offices at village level, to save lives of people that tested positive for COVID-19.
Individuals affected from blindness, low vision, hearing impairment, locomotor disability, autism spectrum disorder,
cerebral palsy, muscular dystrophy, multiple sclerosis and multiple disabilities (including deaf-blindness), people
cured from leprosy were covered in this drive.
10. INCASE OF CREATION OR ACQUISITION OF CAPITAL ASSET, FURNISH THE DETAILS RELATING TO THE ASSET SO
CREATED OR ACQUIRED THROUGH CSR SPENT IN THE FINANCIAL YEAR (ASSET-WISE DETAILS):
(a) Date of creation or acquisition of the capital asset(s) – Not Applicable
(b) Amount of CSR spent for creation or acquisition of capital asset(s) – Not Applicable
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their
address etc. – Not Applicable
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital
assets) – Not Applicable
11. SPECIFY THE REASON(S), IF THE COMPANY HAS FAILED TO SPEND TWO PER CENT OF THE AVERAGE NET PROFIT
AS PER SECTION 135(5):
The unspent amount was pertaining to the ongoing projects and the same would be utilized over the period of three
years as stipulated under the Act.
Corporate Overview
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2022
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
Statutory Reports
To (iii) The Depositories Act, 1996 and the Regulations
The Members, and Bye-laws framed thereunder;
IIFL Finance Limited
(iv)
Foreign Exchange Management Act, 1999 and
IIFL House, Sun Infotech Park,
the rules and regulations made thereunder to the
Road No. 16V, Plot No. B-23,
extent of Foreign Direct Investment, Overseas
Thane Industrial Area,
Direct Investment and External Commercial
Wagle Estate, Thane – 400 604
Borrowings, to the extent the same was applicable
Financial Statements
Dear Sir / Madam, to the Company;
We have conducted the secretarial audit of the compliance (v)
The following Regulations and Guidelines
of applicable statutory provisions and the adherence to prescribed under the Securities and Exchange
good Corporate Governance practice by IIFL Finance Board of India Act,1992 (‘SEBI Act’):
Limited (hereinafter called “the Company”). Secretarial
(a) The Securities and Exchange Board of India
Audit was conducted in a manner that provided us a
(Substantial Acquisition of Shares and
reasonable basis for evaluating the corporate conducts/
Takeovers) Regulations, 2011;
statutory compliances and expressing our opinion thereon.
(b) The Securities and Exchange Board of India
Based on our verification of the Company’s Books, Papers,
(Prohibition of Insider Trading) Regulations,
Minutes Books, Forms and Returns filed with regulatory
2015;
authorities and other records maintained by the Company
and also the information provided by the Company, its (c)
The Securities and Exchange Board of
officers, agents and authorized representatives during the India (Issue of Capital and Disclosure
conduct of secretarial audit, we hereby report that in our Requirements) Regulations, 2018 (to the
opinion, the Company has, during the financial year ended extent applicable);
March 31, 2022, complied with the statutory provisions
(d)
The Securities and Exchange Board of
listed hereunder and also that the Company has proper
India (Share Based Employee Benefits)
Board processes and compliance mechanism in place to
Regulations, 2014 (till 12th August, 2021)
the extent, in the manner and subject to the reporting made
and The Securities and Exchange Board of
hereinafter:
India (Share Based Employee Benefits and
We further report that maintenance of proper and updated Sweat Equity) Regulations, 2021 (w.e.f. 13th
Books, Papers, Minutes Books, filing of Forms and Returns August, 2021);
with applicable regulatory authorities and maintaining
(e) The Securities and Exchange Board of India
other records is responsibility of management and of the
(Registrars to an Issue and Share Transfer
Company. Our responsibility is to verify the content of the
Agents) Regulations, 1993, regarding the
documents produced before us, make objective evaluation
Companies Act and dealing with client;
of the content in respect of compliance and report thereon.
We have examined on test basis, the books, papers, minute (f)
The Securities and Exchange Board of
books, forms and returns filed and other records maintained India (Listing Obligations and Disclosure
by the Company and produced before us for the financial Requirements) Regulations, 2015;
year ended March 31, 2022 according to the provisions of: (g) The Securities and Exchange Board of India
(i) The Companies Act, 2013 and the rules made (Depositories and Participants) Regulations,
there under; 2018;
We further Report that, during the year, it was not We further report that during the audit period under
mandatory on the part of the Company to comply with review, following event / action have taken place
the following Regulations / Guidelines: having major bearing on the Company’s affairs:
(a)
The Securities and Exchange Board of India I. Private placement of Secured and Unsecured,
(Delisting of Equity Shares) Regulations, 2021; Redeemable, Non-Convertible Debentures
(b) The Securities and Exchange Board of India (Buy-
1.
During the year ended March 31, 2022,
Back of Securities) Regulations, 2018;
the Company has allotted 5,000 Secured,
Based on the above said information provided by the Redeemable, Non-Convertible Debentures
Company, we report that during the financial year under of Face Value of Rs. 10,00,000 (Rupees
report, the Company has substantially complied with Ten Lakhs only) each aggregating to Rs.
the provisions of the above mentioned Act/s including 5,00,00,00,000 (Rupees Five Hundred Crores
the applicable provisions of the Companies Act, 2013 only) under Series D13 on June 30, 2021.
and Rules, Regulations, Guidelines, Standards, etc.
2. The Company has allotted 1,000 Secured,
mentioned above and we have no material observation
Redeemable, Non-Convertible Market Linked
of instances of non-compliance in respect of the same.
Debentures of Face Value of Rs. 10,00,000
We further report that: (Rupees Ten Lakhs only) each aggregating
The Board of Directors of the Company is duly to Rs. 1,00,00,00,000 (Rupees One Hundred
constituted with proper balance of Executive Directors, Crores only) under Series D14 on September
Non-Executive Directors and Independent Directors. 07, 2021.
Corporate Overview
3.
The Company has allotted 100 Secured, II.
Public Issue of Secured, Redeemable, Non-
Redeemable, Non-Convertible Debentures Convertible Debentures:
of Face Value of Rs. 10,00,000 (Rupees Ten During the year ended March 31, 2022, the
Lakhs only) aggregating to Rs. 10,00,00,000 Company has allotted by the way of public issue
(Rupees Ten Crores only) under Series D15 84,29,879 Secured, Redeemable, Non-Convertible
on January 21, 2022. Debentures of Face Value of Rs. 1,000/- (Rupees
One Thousand only) each aggregating to
Statutory Reports
4.
The Company has allotted 600 Secured,
Rs. 8,42,98,79,000/-
Redeemable, Non-Convertible Debentures
of Face Value of Rs. 10,00,000 (Rupees Note: This Report is to be read along with attached
Ten Lakhs only) each aggregating to Letter provided as “Annexure - A”.
Rs. 60,00,00,000 (Rupees Sixty Crores
only) under Series D16 Option A and 50 Signature:
Unsecured, Subordinated, Redeemable, Name: Nilesh Shah
Non-Convertible Debentures of Face Value For Nilesh Shah & Associates
Financial Statements
of Rs. 1,00,00,000 (Rupees One Crore Company Secretaries
only) each aggregating to Rs. 50,00,00,000 Date: April 28, 2022 FCS: 4554
(Rupees Fifty Crores only) under Series D16 Place: Mumbai C.P.: 2631
Option B on March 24, 2022. UDIN: F004554D000233750 Peer Review No. 698/2020
Dear Sir/Madam,
Sub: Our Report of even date is to be read along with this letter.
1. Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis (by verifying records as
was made available to us) to ensure that correct facts are reflected in secretarial records. We believe that the processes
and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company
and we rely on Auditors Independent Assessment on the same.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
and happening of events, etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of the management. Our examination was limited to the verification of process followed by the Company to ensure
adequate Compliance.
6. Due to COVID-19 outbreak, for some of the information, we have relied on the information, details, data, documents and
explanation as provided by the Company and its officers and agents in electronic form.
7. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
Signature:
Name: Nilesh Shah
For Nilesh Shah & Associates
Company Secretaries
Date: April 28, 2022 FCS: 4554
Place: Mumbai C.P.: 2631
UDIN: F004554D000233750 Peer Review No. 698/2020
Corporate Overview
FORM NO. MR - 3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2022
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
Statutory Reports
To, applicable. Further, there were no compliances required
The Members relating to Foreign Direct Investment, Oversees Direct
IIFL Home Finance Limited Investment except External Commercial Borrowings
(CIN: U65993MH2006PLC166475) during the period under review.
(Formerly known as India Infoline Housing Finance Limited)
V. The following Regulations and Guidelines prescribed
IIFL House, Sun Infotech Park, Road No. 16V,
under the Securities and Exchange Board of India Act,
Plot No. B-23, MIDC, Thane Industrial Area,
1992 (“SEBI Act”) :-
Wagle Estate, Thane, Maharashtra - 400604
Financial Statements
i.
The Securities and Exchange Board of India
We have conducted the Secretarial Audit in compliance
(Substantial Acquisition of Shares and Takeovers)
with the applicable statutory provisions and in adherence
Regulations, 2011 including the provisions
to good corporate practices by IIFL Home Finance Limited
with regard to disclosures and maintenance of
(Formerly known as India Infoline Housing Finance
records required under the said Regulations; [Not
Limited) (hereinafter referred to as ‘the Company’), having
applicable since the shares of the Company are
its Registered Office at IIFL House, Sun Infotech Park, Road
not listed on any stock exchange during the
No. 16V, Plot No. B - 23, MIDC, Thane Industrial Area, Wagle
period under review];
Estate, Thane, Maharashtra - 400604. The Secretarial Audit
was conducted in a manner that provided us a reasonable ii.
The Securities and Exchange Board of India
foundation for evaluating the corporate conducts/statutory (Prohibition of Insider Trading) Regulations, 2015.
compliances and expressing our opinion thereon.
iii.
The Securities and Exchange Board of India
Based on our verification, of the Company’s books, papers, (Issue of Capital and Disclosure Requirements)
minutes books, forms and returns filed and other records Regulations, 2018; [Not applicable since the
maintained by the Company and also the information shares of the Company are not listed on any
provided by the Company, its officers, agents and authorized stock exchange during the period under review];
representatives during the conduct of secretarial audit,
iv.
The Securities and Exchange Board of India
we hereby report that in our opinion, the Company has,
(Share Based Employee Benefits) Regulations,
during the audit period covering the financial year ended
2014; [Not applicable since the shares of the
March 31, 2022, complied with the statutory provisions
Company are not listed on any stock exchange
listed hereunder and also that the Company has proper
during the period under review];
Board-processes and compliance-mechanism in place to
the extent, in the manner and subject to the reporting made v. The Securities and Exchange Board of India (Issue
hereinafter. and Listing of Debt Securities) Regulations, 2008;
Corporate Overview
to invest by way of subscription of 3,05,25,030 (Three Auditors in the Board Meeting held on September
Crore Five Lakh Twenty-Five Thousand and Thirty) 28, 2021. Further, the appointment of M/s. Suresh
Equity shares of Samasta Microfinance Limited, an Surana & Associates LLP, was confirmed in the
Associate Company being 25% of the total issue size 24th Extraordinary General Meeting (“EGM”) held on
at a price of Rs. 16.38/- per equity share aggregating to September 30, 2021 and they were appointed as the
Rs. 49,99,99,991.40/- on Rights Basis. Further the Statutory Auditors of the Company for a further period
Finance Committee in its meeting held on March of 3 years in the said EGM.
Statutory Reports
31, 2022 has accorded approval to invest by way of
v. During the period under review, the Company has made
subscription of 1,38,27,433 (One Crore Thirty-Eight
two allotments of 6,558,231 and 4,043,868 each of
Lakh Twenty-Seven Thousand Four Hundred and
Unsecured and Secured Redeemable Non-Convertible
Thirty-Three) Equity shares of Samasta Microfinance
Debentures respectively to the Public having value
Limited, an Associate Company being 25% of the total
of Rs. 1,000/- (Rupees One Thousand Only) each,
issue size at Rs.10/- each at a price of Rs. 18.08 per
aggregating to Rs. 655,82,31,000 in Tranche I and
equity share aggregating to Rs. 25 Crores (Rupees
404,38,68,000 in Tranche II.
Financial Statements
Twenty Five Crore Only) on Rights Basis.
vi. The Board of Directors of the Company in its meeting
ii. The Finance Committee of the Board in their meeting
held on January 25, 2022 provided their consent
held on September 17, 2021 provided their consent
to offer, Secured/Unsecured/ Listed/Unlisted/
to incorporate a Wholly Owned subsidiary of the
Rated/ Unrated/ Non - Convertible/ Market Linked/
Company named “IIHFL Sales Limited” and the same
Subordinated Debt/ Perpetual Debentures/Fixed
was incorporated on September 28, 2021.
Maturity Debentures, aggregating to Rs. 2,000 Crore
iii.
Pursuant to RBI’s Circular No. DoS. CO.ARG/ on private placement basis during the financial year
SEC.01/08.91.001/2021-22 (“RBI Circular”) dated 2022-23, (i.e. April 1, 2022 to March 31, 2023), in one
April 27, 2021 the term of office for M/s. M.P. Chitale or more tranches and delegated the necessary powers
& Co., Chartered Accountants, (Firm Registration to the Finance Committee.
Number:101851W) Statutory Auditors of the Company
vii. The Company has declared interim dividend @ Rs. 30
has been revised from a term of 5 years to a term of 3
per share on January 25, 2022 in compliance of the
years, i.e. till the Financial Year 2022-23 in the Board
applicable provisions stated in the Act.
Meeting dated September 28, 2021. Further for the
remainder of this revised term, M/s. MP Chitale & Co.
were designated to act as Joint Statutory Auditors
For RMG & Associates
of the Company. Also, the said revision in tenure
Company Secretaries
of Auditors, was approved in the 24th Extraordinary
Firm Registration No. P2001DE016100
General Meeting (“EGM”) held on September 30, 2021.
Peer Review No.: 734 / 2020
iv.
Pursuant to the RBI Circular M/s. Suresh Surana
& Associates LLP, Chartered Accountants, (Firm Place: New Delhi CS Manish Gupta
Registration Number: 121750W/W100010) were appointed Date: 25-04-2022 Partner
as Joint Statutory Auditors with the existing Statutory UDIN: F005123D000198998 FCS: 5123; C.P. No.: 4095
Note: This report is to be read with ‘Annexure’ attached herewith and forms an integral part of this report.
The Members
IIFL Home Finance Limited
(Formerly known as India Infoline Housing Finance Limited)
Our Secretarial Audit Report of even date, for the financial year ended March 31, 2022 is to be read along with this letter:
1. It is the responsibility of the management of the Company to maintain secretarial records, devise proper systems to
ensure compliance with the provisions of all applicable laws and regulations and to ensure that the systems are adequate
and operating effectively.
2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the
Company with respect to secretarial compliances.
3. We believe that audit evidence and information obtained from the Company’s management is adequate and appropriate
for us to provide a basis for our opinion.
4. Wherever required, we have obtained the management’s representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
6. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company.
7. We have conducted online verification & examination of records, as facilitated by the Company, for the purpose of issuing
this Report.
Corporate Overview
Form No. MR-3
SECRETARIAL AUDIT REPORT
For the financial year ended 31st March, 2022
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
Statutory Reports
To, • The Securities and Exchange Board of India
The Members, (Listing Obligations and Disclosure Requirements)
IIFL SAMASTA FINANCE LIMITED Regulations, 2015;
110/3, Lalbagh Main Road, Krishnappa Layout
• The Prevention of Money Laundering Act, 2002
Bengaluru- 560027
and Rules framed there under.
I have conducted the secretarial audit of the compliance
5. Directions, Guidelines and Notifications issued by the
of applicable statutory provisions and the adherence to
Reserve Bank of India from time to time with respect to
Financial Statements
good corporate practices by IIFL Samasta Finance Limited
the ‘Non-Banking Financial Company-Micro Finance
(herein after called the ‘Company’). Secretarial Audit was Institutions’ (NBFC-MFIs)
conducted in a manner that provided me a reasonable
basis for evaluating the corporate conducts/statutory I have also examined compliance with the applicable
compliances and expressing my opinion thereon. clauses of the following:
Based on my verification of the Company’s books, papers, a) Secretarial Standards and Auditing Standards issued
minute books, forms and returns filed and other records by The Institute of Company Secretaries of India;
maintained by the Company and also the information b) The Listing Agreements entered into by the Company
provided and representation made by the Company, its with Bombay Stock Exchange(s) w.r.t. Debt listing.
officers, agents and authorized representatives during
I further report that during the period under review the
the conduct of secretarial audit, I hereby report that in my
Company has complied with the provisions of the Act,
opinion, the company has, during the audit period covering
Rules, Regulations, Guidelines, Standards, etc. mentioned
the financial year ended on 31st March, 2022 complied with
above.
the statutory provisions listed hereunder and also that the
Company has proper Board-processes and compliance- Further, the Board of Directors of the Company is duly
mechanism in place to the extent, in the manner and subject constituted with proper balance of Executive Directors,
to the reporting made hereinafter: Non-Executive Directors, and Independent Directors.
There were no changes in the composition of the Board of
I have examined the books, papers, minute books, forms Directors that took place during the period under review.
and returns filed and other records maintained by the
Company for the financial year ended on 31st March, 2022 Other statutes, Acts, laws, Rules, Regulations, Guidelines
and Standards etc., as applicable to the Company are given
according to the provisions of:
below:
1. The Companies Act, 2013 (the Act) and the rules made
abour Laws and other incidental laws related to labour
L
there under;
and employees appointed by the Company either on its
2.
The Securities Contracts (Regulation) Act, 1956 payroll or on contractual basis as related to wages, gratuity,
(‘SCRA’) and the rules made there under; provident fund, ESIC, compensation etc.;
3. The Depositories Act, 1996 and the Regulations and (i) Acts as prescribed under Direct Tax and Indirect Tax;
Bye-laws framed there under;
(ii)
Acts prescribed under prevention and control of
4. The following Regulations and Guidelines prescribed pollution;
under the Securities and Exchange Board of India Act,
(iii) Acts prescribed under environmental protection;
1992 (‘SEBI Act’): -
(iv) Land Revenue laws of respective States;
• The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,1992; (v) Labour Welfare Act of respective States; and
• The Securities and Exchange Board of India (Issue (vi) Local laws as applicable to various offices of the
and Listing of Debt Securities) Regulations,2008; Company.
Corporate Overview
To,
The Members,
IIFL SAMASTA FINANCE LIMITED
110/3, Lalbagh Main Road, Krishnappa Layout
Bengaluru- 560027
Statutory Reports
1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct
facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable
basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
Financial Statements
4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the company.
7. We have prepared the Secretarial Audit Report based on the Audited Financials with respect to certain financial
Transactions, Loans, and advances etc.
Lakshmeenarayan Bhat
Proprietor
FCS No: 10615
CP No. 15003
Date: 23rd April, 2022
Place: Bengaluru
UDIN: F010615D000183084
With highly secured information systems and with adequate • Skill development for staff has also been a focus area
controls which are currently in place, we are able to manage and various e-learning modules on technology and
our nationwide operations efficiently, market effectively to other business areas are enabled for employees via
our target customers and effectively monitor and control online training and mobile applications thus ensuring
risks. that the learning curve is improved during this period.
The Company remains committed to investing in technology • Organization has adopted DevOps methodology for
to provide a competitive edge and contribute in business application releases and this has benefited us in terms
that is scalable. Digital and analytics continue to be the key of quicker release cycles. These DevOps pipelines
focus areas to bring in agility, availability and relevance. have additionally provided us increased confidence
Data and Cyber Security is also considered as a paramount in our applications releases, while safeguarding the
importance for the organization. sanctity of the release.
Corporate Overview
• Content Deliver Network services is implemented to • Personal Loan cross-sell fully digitalized journey,
enhance the performance of web portals. where we are selling Personal Loan to the existing
Gold Loan, Broking and 5Paisa Customers
• Brand Protection is implemented to protect the abuse
of the IIFL brands. • Digital Finance : Foreclosure module added for
partners
• DNS Security services is implemented to prevent
threats to IIFL from DNS levels. • Fraud scorecard implementation in Small and
Statutory Reports
Medium Enterprise
• Next Generation Antivirus is implemented to enhance
the end point security and server protection from • Salaried Business Loan product launched in
Malwares. Small and Medium Enterprise
• Secure cloud based proxy is implemented to enhance • eNach integration in Small and Medium Enterprise
the capability to align the internet Policy at corporate and Digital Finance
office and broadband branches.
As the Company continues to expand its geographic reach
Financial Statements
• Anti-Phishing solution implemented to protect users and enhance the scale of operations, it intends to further
from phishing attacks. develop and integrate technology to support growth and
• Organization procured cyber insurance cover to protect improve service quality. Technology is a trusted ally in
against financial loss which may occur because of creating business value.
cyber-attack or data leak. FOREIGN EXCHANGE EARNINGS/OUTGO OF THE
• Organization ensured there is no business or STANDALONE COMPANY:
operations impact due to Covid Wave 2 or Covid Wave a) The foreign exchange earnings: Nil
3 situation as robust Business Continuity Plan was
b) The foreign exchange expenditure: ` 2,530.56 Million
already active.
RESEARCH AND DEVELOPMENT (“R & D”):
• Sangrah android application (Collection Application)
has been developed to record collections on digital The Company is engaged in finance and financial services
platforms for Gold Loan, Small and Medium Enterprise and so there were no activities in the nature of research and
and Digital Finance. Collection officers can collect development involved in the business.
money, provide customer receipts and deposit to
Amount of expenditure incurred on Research and
Branch/ Bank.
Development:
• IIFL loans application received positive customer’s
Particulars March 31, 2022 March 31, 2021
sentiments with improved ratings on Play store 4.0
rating and iOS to 4.4 rating. The application is used to Capital Nil Nil
create 20,000+ leads and 30,000+ transactions on a Revenue Nil Nil
monthly basis.
Corporate Overview
1. Mr. Nirmal Jain had been appointed as Managing Director of the Company w.e.f. April 01, 2022.
2. The designation of Mr. R Venkataraman had been changed from Managing Director to Joint Managing Director w.e.f.
April 01, 2022. Further, Mr. R Venkataraman had also been appointed as the Managing Director of IIFL Securities Limited,
another group Company and his entire remuneration was paid by IIFL Securities Limited.
4. Mr. Nagarajan Srinivasan ceased to be Non-Executive Director w.e.f. June 15, 2021.
Statutory Reports
5. Mr. Vibhore Sharma and Mr. Ramakrishnan Subramanian were appointed as Independent Directors w.e.f. July 01, 2021
and September 06, 2021, respectively.
Financial Statements
Date: April 28, 2022 Chairman & Independent Director
Place: Mumbai (DIN: 00026383)
Corporate Overview
Pursuant to RBI Direction DOR.ACC.REC.No.23.21.02.067/2021-22 dated June 24, 2021 the following direction are being
included in the existing dividend policy of the company -
1. The Board of Directors of the Company shall, while considering the proposals for dividend, take into account the following
aspects:
(a) Supervisory findings of the Reserve Bank (National Housing Bank (NHB) for HFCs) on divergence in classification
and provisioning for Non-Performing Assets (NPAs).
Statutory Reports
(b) Qualifications in the Auditors’ Report to the financial statements; and
(c) Long term growth plans of the NBFC.
The Board shall ensure that the total dividend proposed for the financial year does not exceed the ceilings specified in the
guidelines prescribed by RBI.
Eligibility criteria
2. Company will comply with the following minimum prudential requirements to be eligible to declare dividend:
Financial Statements
Table 1: Declaration of Dividend: Minimum Prudential Requirements
3. NBFCs eligible to declare dividend as per paragraph 2 above, may pay dividend, subject to the following:
(a) The Dividend Payout Ratio is the ratio between the amount of the dividend payable in a year and the net profit as per
the audited financial statements for the financial year for which the dividend is proposed.
(b) Proposed dividend shall include both dividend on equity shares and compulsorily convertible preference shares
eligible for inclusion in Tier 1 Capital.
(c) In case the net profit for the relevant period includes any exceptional and/or extraordinary profits/ income or
the financial statements are qualified (including ’emphasis of matter’) by the statutory auditor that indicates an
overstatement of net profit, the same shall be reduced from net profits while determining the Dividend Payout Ratio.
(d) The ceilings on dividend payout ratios for NBFCs eligible to declare dividend are as under:
Accounting period * Net profit for the accounting Rate of dividend Amount of dividend Dividend Pay out
period (` crore) (per cent) (` crore) ratio (per cent)
Corporate Overview
This Corporate Governance Report relating to the year Our Board of Directors (“Board”) has Independent
ended March 31, 2022 has been issued in compliance Directors, highly respected for their professional
with the applicable provisions of Securities and Exchange integrity as well as rich financial and banking
Board of India (“SEBI”) (Listing Obligations and Disclosure experience and expertise. Our Board remains at the
Requirements) Regulations, 2015 and amendments top of the governance pyramid as a custodian of
thereof (“Listing Regulations”) and forms a part of the trust, with the employees at the base. The Corporate
Director’s Report. Governance framework of your Company is based on
Statutory Reports
an effective and Independent Board, separation of the
1.
OUR COMPANY’S PHILOSOPHY ON CORPORATE Board’s supervisory role from the Senior Management
GOVERNANCE team and constitution and functioning of Board
IIFL Finance Limited (“the Company”) follows the Committees, as required under applicable laws.
highest standards of governance and disclosure.
2. BOARD OF DIRECTORS
Over the years, we have strengthened our corporate
governance philosophy and have institutionalized (a) Composition of the Board of Directors
Financial Statements
a robust mechanism of corporate governance. The Board of Directors of the Company has an optimum
Our governance framework enshrines ethical and combination of executive and non-executive directors
responsible conduct of business to create lasting (including one Independent Woman Director) in line
stakeholder value. The governance framework and with the provisions of the Act, Listing Regulations and
philosophy of the Company is inspired by ethics, values RBI Master Directions. The Board provides leadership,
and culture of professionalism. We emulate the ‘best strategic guidance and discharges its fiduciary duties
practices’ that are adhered to in the realm of corporate of safeguarding the interest of the Company and its
governance globally and these practices are integrated stakeholders.
into our growth strategy. Across our day-to-day As on March 31, 2022, the Board of the Company
operations, we conform to complete fairness, integrity consisted of nine (9) Directors. The Chairman of the
and transparency which remain our guiding principles. Board is a Non-Executive Independent Director and
The Company firmly believes that adherence to majority of the Board comprises of Non-Executive
business ethics and sincere commitment to corporate Independent Directors. None of the Directors of the
governance will help the Company to achieve its Company are related to each other. The composition
vision of being the most respected Company in the of the Board is as follows:
financial services space in India. Since inception, the Category Name of the Directors
Promoters have demonstrated exemplary track record Chairman & Independent Mr. Arun Kumar Purwar1
of governance and utmost integrity. The Company is in Director
compliance with the requirements of the Companies Executive Directors Mr. Nirmal Jain (Managing
Director & Promoter)2
Act, 2013 (“the Act”), Listing Regulations and Corporate
Mr. R Venkataraman
Governance and Disclosure norms for Non-Banking
(Joint Managing Director
Financial Companies issued by Reserve Bank of India & Co-Promoter)3
vide Chapter XI of Non-Banking Financial Company – Independent Directors Mr. Vijay Kumar Chopra
Systemically Important Non-Deposit taking Company Mr. Nilesh Vikamsey
and Deposit taking Company (Reserve Bank) Directions, Ms. Geeta Mathur
2016 (“RBI Master Directions”). With the implementation Mr. Vibhore Sharma
of stringent employee Code of Conduct policy and Mr. Ramakrishnan
adoption of a Whistle Blower Policy, the Company has Subramanian
Non-Executive Director Mr. Chandran Ratnaswami
moved ahead in its pursuit of excellence in corporate
other than Independent
governance. The Company has also adopted Code Directors
of Practices and Procedures for Fair Disclosure of
1.
ppointed as Chairman of the Board w.e.f. April 01,
A
Unpublished Price Sensitive Information and Code
2022
of Conduct to regulate, monitor and report Trading
by Insiders and also adopted Internal Guidelines on 2.
ppointed as Managing Director of the Company
A
Corporate Governance in compliance with RBI Master w.e.f. April 01, 2022
Directions. These codes are available on the website of 3.
Change in Designation to Joint Managing Director
the Company i.e. www.iifl.com. w.e.f. April 01, 2022
(c) Brief profiles of the Directors are as follows: SBI, he was associated with a leading industry
The brief profile of the Directors of the Company house in setting up the first healthcare focused
is available on the website of the Company i.e. private equity fund as well as a non-banking
www.iifl.com. finance Company focused on funding real estate
projects as well as educational institutions. He
Mr. Arun Kumar Purwar (Chairman & Independent
has won a number of awards including the CEO of
Director)
the year award from the Institute of Technology
Mr. Arun Kumar Purwar works as Chairman of and Management (2004), “Outstanding Achiever
Eroute Technologies Private Limited, a fintech of the Year” award from the Indian Banks’
Co. He also works as an Independent Director Association (2004) and “Finance Man of the Year”
in Companies across diverse sectors like power, Award by the Bombay Management Association
telecom, steel, engineering consultancy, pharma in 2006.
and financial services. He also acts as an advisor
to Mizuho Securities, Japan. He was Chairman of List of Name of the Category of
Directorship Company Directorship
the State Bank of India (“SBI”) from 2002 to 2006 held in Alkem Independent
and Chairman of the Indian Bank Association other Listed Laboratories Director
during 2005 to 2006. He has previously held Companies Limited
positions such as Managing Director of State Balaji Telefilms Independent
Bank of Patiala and has been associated in the Limited Director
setting up of SBI Life. Post his retirement from
Corporate Overview
Mr. Nirmal Jain (Managing Director) Mr. Vijay Kumar Chopra (Independent Director)
Mr. Nirmal Jain is the founder and Managing Mr. Vijay Kumar Chopra is a fellow Member of
Director of the Company. He holds a PGDM (Post the Institute of Chartered Accountants of India.
Graduate Diploma in Management) from the He was the whole-time Member of SEBI for two
Indian Institute of Management (IIM), Ahmedabad years; prior to that he has been a career banker
and is a rank holder Chartered Accountant and a and has held several top positions during his 37
Cost Accountant. He started his career in 1989 years’ of experience in banking industry. Some of
Statutory Reports
with Hindustan Unilever Limited. He founded his accomplishments include being the Chairman
IIFL Group in 1995. It started as an independent and Managing Director at Corporation Bank and
equity research Company in India. Over the last SIDBI, 3 years as an Executive Director at the
26 years, he has led the expansion of the group, Oriental Bank of Commerce and 31 years in
while remaining focused on financial services. various capacities at the Central Bank of India.
The group through four listed entities, has leading List of Name of the Category of
presence in India’s wealth & asset management, Directorship Company Directorship
Financial Statements
consumer lending, securities trading & discount held in Greenlam Independent
broking spaces. With an impeccable track other Listed Industries Director
record of governance and growth, the group has Companies Limited
attracted marquee investors and won accolades Sheela Foam Independent
internationally. Limited Director
Corporate Overview
companies such as Eicher Motors, Siel Limited (d)
Board Meetings and Directorship/Committee
among others. She has developed, reorganized, Membership(s) of Directors
streamlined and led large national teams. She During the year under review, seven (7) Board Meetings
transitioned from the corporate sector to the were held on the following dates: May 06, 2021, June 15,
development sector as CFO of Helpage India, 2021, July 27, 2021, August 10, 2021, October 27, 2021,
where besides successful implementation January 27, 2022 and March 23, 2022.
of Oracle ERP and setting up processes for
Statutory Reports
In the wake of COVID-19 pandemic and to adhere
budgeting and MIS, she was consistently awarded
to the lockdown and social distancing norms, the
by the Institute of Chartered Accountants and
directors participated in the meetings of the Board
South Asian Federation of Accountants for best
and Committees held during the Financial Year
presentation and transparency in accounts.
2021-22 through video conferencing/other audio-
She has worked in various capacities in large
visual means. The meetings and agenda items taken
organizations such as IBM and Emaar MGF
up during the meetings complied with the Act and
across areas of Corporate Finance, Treasury,
Listing Regulations read with various circulars issued
Financial Statements
Risk Management and Investor Relations. She
by Ministry of Corporate Affairs (“MCA”) and SEBI due
currently serves as an Independent Director in
to COVID-19 pandemic.
various large organizations across manufacturing
and services such as Motherson Sumi Wiring The Company has proper online systems to enable
India Limited, Info Edge (India) Limited and NIIT the Board to review on a half yearly basis compliance
Limited. She also co-chairs the India chapter reports of all laws applicable to the Company, as
of Women Corporate Directors Foundation, a prepared by the Company as well as to assess the
global membership organization and community steps taken by the Company to rectify instances of
of Women Corporate Directors with a mission non-compliances, if any.
to foster a powerful, trusted community of In terms of the provisions of Listing Regulations and
influential Women Corporate Directors. She amendments thereof, none of the Directors on the
is a graduate in Commerce from the Shriram Board of the Company is Member of more than ten
College of Commerce, Delhi University and did (10) specified Committees and none is a Chairman
her articleship with the Price Waterhouse while of more than five (5) specified Committees in which
pursuing her Chartered Accountancy. they are Directors across all the Indian Public Limited
List of Name of the Category of Companies, except Companies incorporated under
Directorship Company Directorship Section 8 of the Act.
held in
Motherson Sumi Independent None of the Directors serve as a Director in more than
other Listed
Companies Wiring India Director ten (10) Public Companies. None of the Independent
Limited Directors serves as an Independent Director in more
NIIT Limited Independent than seven (7) listed entities (Equity Listed). None of
Director the Directors hold directorship in more than seven
(7) listed entities (Equity Listed). None of the Whole
Info Edge (India) Independent
Limited Director Time Director/Managing Director serves as an
Independent Director in more than three (3) listed
IIFL Wealth Independent
entity. Further, none of our Independent Directors
Management Director
serve as Non-Independent Director of any Company,
Limited
on the Board of which any Non-Independent Director
OnMobile Global Independent is an Independent Director. The maximum tenure of
Limited Director the Independent Directors is in compliance with the
Healthcare Independent Act and Listing Regulations.
Global Director All Independent Directors on the Board are Non-
Enterprises Executive Directors as defined under the Act and
Limited
Listing Regulations. The maximum tenure of the
Note: The above list of Directorship of all the Independent Directors is in compliance with the
Directors in other equity listed Companies is as on Act and Listing Regulations. All the Independent
March 31, 2022. Directors have confirmed that they meet the criteria of
Name of the Director (DIN) Date of Category Number Attendance Directorship Membership of
original of Board at last AGM in Indian committees (including
appointment meeting Public Limited IIFL Finance Limited)1
attended Companies
during the (including
year IIFL Finance Member2 Chairman
Limited)3
1.
The Committees considered for the above purpose are those prescribed in the Listing Regulations viz. Audit Committee and Stakeholders
Relationship Committee.
2.
The membership count will include the count in which the Director is Chairman.
3.
Excludes directorship in private companies, foreign companies and companies incorporated under Section 8 of the Act.
4.
Appointed as Chairman of the Board w.e.f. April 01, 2022.
5.
Appointed as Managing Director of the Company w.e.f. April 01, 2022.
6.
Change in designation to Joint Managing Director w.e.f. April 01, 2022.
7.
Appointed as Independent Director w.e.f. July 01, 2021 & September 06, 2021 respectively.
8.
Resigned as Non-Executive Director w.e.f. June 15, 2021.
Note: No recommendation of any Committee which is mandatorily required to have Board approval in FY 2021-22 was rejected/not accepted
by the Board.
Corporate Overview
(e) Board Level Performance Evaluation: (f) Separate meetings of the Independent Directors:
The Nomination and Remuneration Committee has In compliance with the provisions of the Act and
laid down the criteria for performance evaluation of Regulation 25 of the Listing Regulations, a seperate
Executive Directors, Non-Executive Directors including meeting of Independent Directors of the Company
Independent Directors and Board as a Whole. was held on March 24, 2022, inter alia, to discuss the
The criteria for performance evaluation are as under: following:
Statutory Reports
For Chairman: To review the performance of Non-Independent
Directors, the various Committees of the Board
The criteria for evaluation of Chairman, inter alia,
and the Board as a whole;
includes his ability to conduct meetings, ability to elicit
inputs from all members, ability to table and openly To review the performance of the Chairman of the
discuss challenging matters, attendance at meetings, Company;
assistance to board in formulating policies and setting To assess the quality, quantity and timeliness
standards, accessibility, ability to analyze strategic of flow of information between the Company
Financial Statements
situations, ability to project positive image of the management and the Board that is necessary for
Company, compliance with regulatory requirements, the Board to effectively and reasonably perform
impartial in conducting discussions, sufficiently their duties.
committed to the Board, ability to keep shareholders’ Upon the conclusion of the meeting, the Independent
interest in mind during discussions and decisions. Directors expressed their overall satisfaction over the
For Executive Directors: performance of the other Directors and the Board as
The criteria for evaluation of Executive Directors, a whole and some suggestions were being discussed
inter alia, includes their ability to elicit inputs from with the Promoter Director. They also expressed their
all members, ability to table and openly discuss satisfaction over the quality, quantity and timeliness
challenging matters, attendance and participation of flow of information between the Company’s
at meetings, integrating quality and re-engineering, management and the Board / Committees of the
capitalize on opportunities created by economic Board from time to time and performance of Chairman
and technological changes, assistance to board of the Company.
in formulating policies and setting standards and (g) Familiarization programme for Independent
following them, accessibility, ability to analyze strategic Directors:
situations, ability to project positive image of the The Board members are provided with necessary
Company, compliance with regulatory requirements, documents/brochures, reports and internal policies
handling critical situations concerning the group. to enable them to familiarize with the Company’s
For Non-Executive Directors (including Independent
procedures and practices. Periodic presentations are
Directors): made at the Board and Board Committee Meetings on
The criteria for evaluation of Non-Executive Directors, business, operations and performance updates of the
inter alia, includes attendance at the meetings, study Company as well as of the Group. Quarterly updates on
of agenda and active participation, contribution to relevant statutory and regulatory changes applicable
discussions on strategy, participate constructively to the Company and the Group and important legal
and actively in Committees of the Board, exercise of matters pertaining to the Company are discussed at
skills and diligence with due and reasonable care and the Board Meetings. The details of such familiarization
to bring independent judgment to the Board, ability to programmes of the Company may be accessed on
bring in best practices from his / her experience and the website of the Company i.e. https://www.iifl.com/
adherence to the Code of Conduct. investor-relations/corporate-governance.
For Board as a whole: (h) Meetings of the Board:
The criteria for evaluation of the Board, inter alia, Ø Frequency: The Board meets at least once
includes composition and diversity, induction a quarter to review the quarterly results and
programme, team work, performance culture, risk other items of the Agenda. There are minimum
management and financial controls, integrity, credibility, four Meetings of the Board in a calendar year
trustworthiness, active and effective participation by with a maximum gap of 120 days between two
members, proper mix of competencies to conduct and consecutive meetings. Whenever necessary
enough experience to conduct affairs effectively. additional meetings are held. In case of business
Corporate Overview
Quarterly details of foreign exchange exposures Committee. All the Members of the Audit Committee
and the steps taken by the management to limit are financially literate and possess thorough
the risks of adverse exchange rate movement, if knowledge of the financial services industry. Majority
material. of the Committee Members have accounting/financial
Non-Compliance of any regulatory, statutory
management expertise.
nature or listing requirements and shareholders’
The scope of the Audit Committee includes the
service, such as non-payment of dividend, references made under Regulation 18 read with Part
Statutory Reports
delay in share transfer, if any, and other steps C of Schedule II of the Listing Regulations as well as
taken by the Company to rectify instances of Section 177 and other applicable provisions of the Act
non-compliances, if any. besides the other terms that may be referred by the
(j) Minutes of the Meetings: Board and RBI Master Directions. The broad terms of
reference of the Audit Committee are:
The draft Minutes of the proceedings of the Meetings
are circulated amongst the Members of the Board/ (i) Oversight of the Company’s financial reporting
Committees. Comments and suggestions, if any, process and the disclosure of its financial
Financial Statements
received from the Directors are incorporated in the information to ensure that the financial statement
Minutes, in consultation with the Chairman. The is correct, sufficient and credible;
Minutes are confirmed by the Members and signed (ii) Recommendation for appointment, remuneration
by the Chairman of such meeting at any time before and terms of appointment of auditors of the
the next meeting is held or by the Chairman of the Company;
next Board/Committee Meetings. All Minutes of the (iii) Approval of payment to statutory auditors for any
Committee Meetings are placed before the Board other services rendered by the statutory auditor;
Meeting for perusal and noting.
(iv)
Reviewing, with the management, the annual
(k) Post meeting follow-up mechanism: financial statements and auditor’s report thereon
The Company has an effective post meeting follow-up before submission to the Board for approval, with
review and reporting process for the decisions taken particular reference to:
by the Board and Committee(s) thereof. The important a)
Matters required to be included in the
decisions taken at the Board/Committee Meetings Director’s Responsibility Statement to be
which call for actions to be taken are promptly included in the Board’s report in terms of
initiated and wherever required, communicated to clause (c) of sub-section 3 of Section 134 of
the concerned departments/divisions. The action the Companies Act, 2013;
taken report is placed at the immediately succeeding
b) Changes, if any, in accounting policies and
Meeting of the Board/Committee(s) for information
practices and reasons for the same;
and review by the Board/Committee(s).
c) Major accounting entries involving estimates
(l) Confirmation of Independence:
based on the exercise of judgment by
The Board is of the opinion that the Independent management;
Directors fulfill the conditions specified in Listing
d) Significant adjustments made in the
Regulations and the Act and are independent of the
financial statements arising out of audit
management.
findings;
3. BOARD COMMITTEES: e)
Compliance with listing and other
legal requirements relating to financial
In terms of the Act, Listing Regulations and RBI
statements;
Master Directions, the Board has constituted various
Committees. The composition of the various Committees f) Disclosure of any Related Party Transactions;
along with their terms of reference is as under: g) Modified opinion(s) in the draft audit report.
a) AUDIT COMMITTEE (v) Reviewing, with the management, the quarterly
The Audit Committee comprises of four (4) financial statements before submission to the
Independent Directors (Mr. Nilesh Vikamsey, Board for approval;
Ms. Geeta Mathur, Mr. Ramakrishnan Subramanian (vi) Reviewing, with the management, the statement
and Mr. Arun Kumar Purwar). Mr. Nilesh Vikamsey, of uses/application of funds raised through an
an Independent Director, is the Chairman of the issue (public issue, right issue, preferential issue,
Corporate Overview
h)
Understanding the risk assessment inspections (SEBI/Audit/Exchange Audit)
methodology and approving the audit plan and follow up on corrective actions.
i)
Ensuring the adequate audit coverage o) Review the key findings in the monthly
to monitor compliance with policies and Concurrent Audit Reports.
procedures. p) Review the key audit findings with the entity
j) Approving the audit charter. Audit Committees; analyse potential impact
Statutory Reports
k) Receiving the audit reports and deliberating and remediation plans.
on action plans to enhance the internal q)
To formulate and maintain a quality
control environment. assurance and improvement programme
l) Discussing status of (key) open issues from that covers all aspects of the internal audit
the previous audits and remediation action function.
steps taken by the management. During the year under review, the Audit Committee of the
m)
Assessing the performance of IAF. The Company met nine (9) times on May 05, 2021, May 06,
Financial Statements
AC should also periodically assess the 2021, July 27, 2021, October 26, 2021, October 27, 2021,
performance of risk based internal audits for November 22, 2021, January 25, 2022, January 27,
its reliability, accuracy and objectivity. 2022 and March 23, 2022. The necessary quorum was
n) Review the findings identified in the RBI present at the Meetings. The gap between two Audit
Inspection report and other regulatory Committee Meetings was not more than 120 days.
The constitution of the Audit Committee and details of attendance of each Member of the Committee at the aforesaid
Meeting(s) of Committee is given below:
Name of the members Designation Category No. of committee No. of committee
meetings held meetings attended
Mr. Nilesh Vikamsey1 Chairman Independent Director 9 9
Ms. Geeta Mathur Member Independent Director 9 9
Mr. Nagarajan Srinivasan 2
Member Non-Executive Director 9 2
Mr. Vijay Kumar Chopra 3
Member Independent Director 9 9
Mr. Ramakrishnan Subramanian4 Member Independent Director N.A. N.A.
Mr. Arun Kumar Purwar4 Member Independent Director N.A. N.A.
1.
Appointed as Chairman of the Committee w.e.f. April 01, 2022
2.
Ceased to be a Member of the Committee w.e.f. June 15, 2021
3.
Ceased to be a Member of the Committee w.e.f. April 28, 2022
4.
Appointed as Members of the Committee w.e.f. April 28, 2022
Audit Committee meetings are attended by the Chief Financial Officer of the Company and representatives of Statutory
Auditors and Internal Auditors, if required. The Company Secretary acts as the Secretary of the Audit Committee.
The Chairman of the Audit Committee was present at the last AGM of the Company held on June 30, 2021.
b) NOMINATION AND REMUNERATION COMMITTEE
The Nomination and Remuneration Committee (“NRC”) comprises of three (3) Independent Directors (Mr. Vijay Kumar
Chopra, Mr. Nilesh Vikamsey and Mr. Arun Kumar Purwar). Mr. Vijay Kumar Chopra is the Chairman of the Committee.
The scope of the NRC includes the references made under Regulation 19 read with Part C of Schedule II of the Listing
Regulations as well as Section 178 and other applicable provisions of the Act besides the other terms that may be
referred by the Board and RBI Master Directions. The broad terms of reference of the NRC are:
(i) Succession planning of the Board of Directors and Senior Management Employees;
(ii) Identifying and selection of candidates for appointment as Directors/Independent Directors based on certain laid
down criteria;
(iii) Identifying potential individuals for appointment as Key Managerial Personnel and to other Senior Management
positions;
(vii) Administer, monitor and formulate detailed terms During the year under review, the NRC of the Company
and conditions of the employees’ stock option met two (2) times on May 05, 2021 and March 23, 2022.
scheme; The necessary quorum was present at the meetings.
The constitution of the NRC and details of attendance of each Member of the Committee at the aforesaid Meeting(s) of
Committee is given below:
Name of the members Designation Category No. of committee No. of committee
meetings held meetings attended
Mr. Vijay Kumar Chopra Chairman Independent Director 2 2
Mr. Nilesh Vikamsey Member Independent Director 2 2
Mr. Arun Kumar Purwar Member Independent Director 2 2
Mr. Nagarajan Srinivasan1 Member Non-Executive Director 2 1
1.
Ceased to be a Member of the Committee w.e.f. June 15, 2021
During the year under review 2021-22, the NRC also approved matters relating to grant/allotment of stock option(s),
through circular resolutions.
The Company Secretary of the Company acts as the Secretary of the Committee.
The Chairman of the NRC was present at the last AGM of the Company held on June 30, 2021.
The Board of Directors of the Company has approved Nomination and Remuneration Policy of the Company, which
sets out the guiding principles for appointment & remuneration of Directors, Key Managerial Personnel and Senior
Management of the Company. The details of Nomination and Remuneration policy and remuneration paid to Directors
is as follows:
(a) Nomination and Remuneration Policy:
I. Appointment and removal of Directors, Key Managerial Personnel (“KMP”) and Senior Management:
1) Appointment Criteria and Qualifications:
a) A person being appointed as Director, KMP or in Senior Management position should possess adequate
qualification, expertise and experience for the position he/she is considered for appointment.
b) Independent Director:
1) Qualifications of Independent Director(s):
An Independent Director shall possess appropriate skills, experience and knowledge in one or more fields of
finance, law, management, sales, marketing, administration, research, corporate governance, operations or
Corporate Overview
other disciplines related to the Company’s (iii)
The remuneration of the Manager/ CEO/
business. Managing Director/ Whole-Time Director
2) Positive attributes of Independent Directors: is broadly divided into fixed and incentive
pay reflecting short-term and long-term
An Independent Director shall be a person of
performance objectives appropriate
integrity, who possesses relevant expertise
to the working of the Company.
and experience and who shall uphold ethical
In determining the remuneration
Statutory Reports
standards of integrity and probity; act
(including the fixed increment and
objectively and constructively; exercise his
performance bonus), the Committee
responsibilities in a bona-fide manner in the
shall consider the following:
interest of the Company; devote sufficient
time and attention to his professional · the relationship of remuneration
obligations for informed and balanced and performance benchmark;
decision making; and assist the Company · balance between fixed and
in implementing the best corporate incentive pay reflecting short
Financial Statements
governance practices. and long term performance
2) Removal: objectives, appropriate to the
Due to reasons for any disqualification mentioned working of the Company and its
in the Act or under any other applicable Act, rules goals;
and regulations thereunder, the Committee may · responsibility required to
recommend, to the Board with reasons recorded be shouldered, the industry
in writing, removal of a Director, KMP or Senior benchmarks and the current
Management Personnel subject to the provisions trends;
and compliance of the said Act, Rules and · The Company’s performance
Regulations. vis-à-vis the annual budget
3) Retirement: achievement and individual
The Director, KMP and Senior Management performance.
Personnel shall retire as per the applicable b) Non-Executive Director(s):
provisions of the Act and the prevailing Policy of (i)
The Non-Executive Independent
the Company. The Board will have the discretion Director(s) may receive fees for attending
to retain the Director, KMP, Senior Management meeting of Board or Committee thereof.
Personnel in the same position/ remuneration or Provided that the amount of such fees
otherwise even after attaining the retirement age, shall not exceed ` 1,00,000 (Rupees One
for the benefit of the Company. Lac only) per meeting of the Board or
II. Remuneration: Committee or such amount as may be
1) Directors: prescribed by the Central Government
from time to time.
a)
Executive Directors (Managing Director,
Manager or Whole-Time Director): (ii) A Non-Executive Director may be paid
commission on an annual basis, of
(i)
At the time of appointment or re-
such sum as may be approved by the
appointment, the Executive Directors
Board on the recommendation of the
shall be paid such remuneration as
Committee.
may be mutually agreed between the
Company (basis recommendation (iii)
The Committee may recommend to
of the NRC and the Board) within the the Board, the payment of commission,
overall limits permissible under the to reinforce the principles of collective
provisions of the Act. responsibility of the Board.
(ii) The remuneration shall be subject to (iv)
In determining the quantum of
the approval of the Members of the commission payable to the Directors,
Company in General Meeting as per the the Committee shall make its
requirement of the Act. recommendation after taking into
(b) Details of Remuneration paid to Directors during FY 2021-22 and details of number of shares and convertible
instruments held by Directors as on March 31, 2022 is as under:
Name of the Director Designation Salary and Commission Sitting Contribution to Stock No. of equity
perquisites Fees PF and other options shares held
funds, Gratuity
Mr. Arun Kumar Purwar1 Chairman & Independent - 11,00,000 10,70,000 - - 95,000
Director
Mr. Nirmal Jain2 Managing Director 8,49,17,200 - - 18,00,890 - 4,77,19,154
Mr. R Venkataraman3 Joint Managing Director - - - - - 1,09,84,432
Mr. Nilesh Vikamsey Independent Director - 5,00,000 19,40,000 - - 1,65,000
Ms. Geeta Mathur Independent Director - 5,00,000 18,80,000 - - -
Mr. Vijay Kumar Chopra Independent Director - 5,00,000 20,00,000 - - -
Mr. Vibhore Sharma4 Independent Director - 3,75,000 6,60,000 - - -
Mr. Ramakrishnan Subramanian 4
Independent Director - 2,85,000 4,00,000 - - -
Mr. Chandran Ratnaswami Non-Executive Director - - - - - -
Mr. Nagarajan Srinivasan 5
Non-Executive Director - - - - - -
1.
Appointed as Chairman of the Board w.e.f. April 01, 2022
2.
Appointed as Managing Director of the Company w.e.f. April 01, 2022
3.
Change in Designation to Joint Managing Director w.e.f. April 01, 2022 and remuneration of Mr. R Venkataraman is being paid by IIFL Securities Limited,
a group Company.
4.
Appointed as Independent Director w.e.f. July 01, 2021 & September 06, 2021 respectively.
5.
Resigned as Non-Executive Director w.e.f. June 15, 2021.
The term of office of the Managing Director and Joint Managing Director is for five years from the date of their respective
appointments. This employment shall be deemed to be terminated on the occurrence of death, on expiration of tenure,
permanent disability or on resignation, the notice period is as per the Company’s policy.
In the event of termination for any of the reasons specified above, they or their Nominee shall be entitled to receive a
lump sum severance payment, a sum equal to 5 times of the annual salary. The Company has not issued any convertible
instruments.
Corporate Overview
(c) Remuneration to Non-Executive/Independent 2) Approval to issue of duplicate share certificates
Directors: for shares/debentures and other securities
The Non-Executive Independent Directors are paid reported lost, defaced or destroyed, as per the laid
remuneration by way of sitting fees, commission down procedure;
and other expenses (travelling, boarding and lodging 3) Approval to issue new certificates against
incurred for attending the Board/Committee Meetings). subdivision of shares, renewal, split or
The Non-Executive Non-Independent Directors are not consolidation of share certificates/certificates
Statutory Reports
paid any sitting fees.
relating to other securities;
During the year under review, the Independent Directors
4) Approval to issue and allot right shares/bonus
were paid sitting fees of ` 1,00,000 (Rupees One Lakh
shares pursuant to a Rights Issue/Bonus Issue
only) per meeting for Board and Audit Committee
made by the Company, subject to such approvals
meetings and ` 30,000 (Rupees Thirty Thousand only)
as may be required;
per meeting for attending other Committee meetings
plus reimbursement directly related to the actual travel 5)
To approve and monitor dematerialization of
and out-of-pocket expenses, if any, incurred by them. shares/debentures/other securities and all
Financial Statements
Except the Corporate Social Responsibility Committee matters incidental or related thereto;
meetings for which there is no sitting fees payable. 6)
Monitoring expeditious redressal of investors/
Apart from above, the Non-Executive Directors and stakeholders grievances;
Independent Directors are eligible for commission
7) Review of measures taken for effective exercise
as approved by the shareholders of the Company
of voting rights by shareholders;
at the AGM held on June 30, 2021. The amount
of commission is based on the overall financial 8) Review of adherence to the service standards
performance of the Company and Board of Directors. adopted by the listed entity in respect of various
The Independent Directors were granted with ESOPs services being rendered by the Registrar & Share
under the Company’s ESOPs Schemes prior to Transfer Agent;
the notification of the Act and SEBI (Share Based 9) Review of the various measures and initiatives
Employee Benefits) Regulations, 2014 which are taken by the listed entity for reducing the
being exercised after due vesting as per the terms of quantum of unclaimed dividends and ensuring
grants. No ESOP grants were made to the Independent timely receipt of dividend warrants/annual
Directors after the aforesaid notifications in
reports/statutory notices by the shareholders of
compliance with provisions of the Act and SEBI (Share
the Company;
Based Employee Benefits) Regulations, 2014. Apart
from the above, no other remuneration is paid to the 10) All other matters incidental or related to shares,
Non-Executive/ Independent Directors. There are debentures and other securities of the Company.
no pecuniary relationships or transaction of the During the year under review 2021-22, the Company
Non-Executive Directors with the Company. received twenty-two (22) complaints from Equity
The Company has obtained a Directors and Officers shareholders and Non-Convertible Debenture holders
Liabilities Insurance Policy covering all Directors and (investors) including complaints received through
Officers of the Company in respect of any legal action SEBI’s SCORES portal. Complaints were redressed to
that might be initiated against any Director or Officer of the satisfaction of the investors.
the Company.
The details of the Complaints are given below:
The constitution of the Stakeholders Relationship Committee and details of attendance of each Member of the Committee
at the aforesaid Meeting(s) of the Committee is given below:
Name of the members Designation Category No. of committee No. of committee
meetings held meetings attended
Mr. Arun Kumar Purwar Chairman Independent Director 2 2
Mr. Nirmal Jain1 Member Executive Director 2 1
Mr. R Venkataraman Member Executive Director 2 2
Mr. Vijay Kumar Chopra2 Member Independent Director 2 1
1.
Ceased to be a Member of the Committee w.e.f. May 06, 2021.
2.
Appointed as a Member of the Committee w.e.f. May 06, 2021.
The name, designation and address of Company Secretary & Compliance Officer of the Company are as under:
Name and designation: Ms. Sneha Patwardhan, Company Secretary & Compliance Officer
Corporate Office Address: 802, 8th Floor, Hubtown Solaris, N. S. Phadke Marg, Vijay Nagar, Andheri East,
Mumbai – 400069.
Contacts: Tel: +91 22 6788 1000 Fax: +91 22 6788 1010
E-mail: shareholders@iifl.com
The Company Secretary of the Company acts as Secretary of the Committee.
d) CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE
The CSR Committee comprises of three (3) Independent Directors (Mr. Vibhore Sharma, Mr. Nilesh Vikamsey and Mr. Vijay
Kumar Chopra) and one (1) Executive Director (Mr. R Venkataraman). Mr. Vibhore Sharma is the Chairman of the Committee.
The terms of reference of the CSR Committee is mentioned below:
1. To review the existing CSR Policy indicating activities to be undertaken as specified in Schedule VII of the Act. The
CSR Policy of the Company may be accessed on the website of the Company i.e. https://www.iifl.com
2. To provide guidance on various CSR activities and to monitor the same.
During the year under review 2021-22, the CSR Committee of the Company met one (1) time on March 24, 2022. The
necessary quorum was present at the Meeting.
The constitution of the CSR Committee and details of attendance of each Member of the Committee at the aforesaid
Meeting of Committee is given below:
Name of the members Designation Category No. of committee No. of committee
meetings held meetings attended
Mr. Vibhore Sharma1 Chairman Independent Director N.A. N.A.
Mr. Vijay Kumar Chopra2 Member Independent Director N.A. N.A.
Mr. Nilesh Vikamsey Member Independent Director 1 1
Mr. R Venkataraman Member Executive Director 1 1
Mr. Nirmal Jain 3
Chairman Executive Director 1 0
1. Appointed as Chairman and Member of the Committee w.e.f. April 28, 2022.
2. Appointed as Member of the Committee w.e.f. April 28, 2022.
3. Ceased to be Chairman and Member of the Committee w.e.f. April 28, 2022.
e) RISK MANAGEMENT COMMITTEE
The Risk Management Committee comprises of three (3) Independent Directors (Ms. Geeta Mathur, Mr. Nilesh Vikamsey
and Mr. Ramakrishnan Subramanian), One (1) Executive Director (Mr. R Venkataraman) and Chief Risk Officer (Mr.
Sanjeev Srivastava). Ms. Geeta Mathur is the Chairperson of the Committee.
Corporate Overview
The scope of the Risk Management Committee 11.
To constitute operating risk management
includes references made under Regulation 21 of the committee and delegate such powers to it as
Listing Regulations and RBI Master Directions. may be deemed necessary;
The broad terms of reference of the Risk Management 12. To formulate a detailed risk management policy
Committee are as under: which shall include:
1.
Reviewing risks including cyber security and a) A framework for identification of internal
Statutory Reports
evaluating the treatment including initiating and external risks specifically faced by the
mitigation actions; Company, in particular including financial,
2.
To monitor and review the overall risk operational, sectoral, sustainability
management plan of the Company including (particularly, ESG related risks), information,
liquidity risk; cyber security risks or any other risk as may
be determined by the Committee.
3. To ensure there is an embedded, robust process
in place throughout the Company to identify, b)
Measures for risk mitigation including
Financial Statements
assess, mitigate and report business risks with systems and processes for internal control
clear lines of ownership; of identified risks.
4.
To drive and co-ordinate risk management c) Business continuity plan.
process covering all areas of risk (including 13.
To ensure that appropriate methodology,
operational, strategic, financial, commercial, processes and systems are in place to monitor
regulatory, reputational etc.); and evaluate risks associated with the business
5. To ensure that the business risk strategy and of the Company;
management processes comply with applicable 14. To monitor and oversee implementation of the
regulatory requirements and corporate risk management policy, including evaluating the
governance principles; adequacy of risk management systems;
6. To ensure that the business risk management 15.
To periodically review the risk management
principles and processes are widely understood policy, at least once in two years, including by
across the Company through adequate induction, considering the changing industry dynamics and
training and awareness programmes; evolving complexity;
7. To periodically monitor and review Company’s 16. To keep the board of directors informed about
key business risks and risk mitigation plans, and the nature and content of its discussions,
advise the Board of business risks which could recommendations and actions to be taken;
materially impact Company’s delivery of its 17. To review the appointment, removal and terms of
business plans, strategy, and reputation, if left remuneration of the Chief Risk Officer (if any).
untreated;
18. To seek information from any employee, obtain
8.
To monitor external developments in the outside legal or other professional advice and
business environment which may have an secure attendance of outsiders with relevant
adverse impact on Company’s risk profile, and expertise, if required.
make recommendations, as appropriate;
19. Any other matter as may be mandated/referred
9. To sponsor specialist reviews of key risk areas as by the Authority/Board.
appropriate;
During the year under review 2021-22, the Risk
10.
To report to the Board on key risks, risk Management Committee of the Company met two
management performance and the effectiveness (2) times on May 05, 2021 and October 26, 2021. The
of internal controls; necessary quorum was present at the meetings.
1.
Appointed as Members of the Committee w.e.f. April 28, 2022.
Corporate Overview
g) IT STRATEGY COMMITTEE 7. Defining approval authorities for outsourcing
The IT Strategy Committee comprises of Mr. Vibhore depending on nature of risks and materiality of
Sharma - Independent Director, Mr. Nilesh Vikamsey - outsourcing;
Independent Director, Ms. Geeta Mathur - Independent 8.
Developing sound and responsive outsourcing
Director, Mr. Arun Kumar Purwar - Independent Director, risk management policies and procedures
Mr. Ramakrishnan Subramanian - Independent commensurate with the nature, scope, and
Director, Mr. Aditya Sisodia - Chief Information Officer/ complexity of outsourcing arrangements;
Statutory Reports
Chief Technology Officer, Mr. Mitesh Vora - Head IT 9.
Undertaking a periodic review of outsourcing
Infrastructure & Cyber Security, Mr. Sanjeev Srivastava strategies and all existing material outsourcing
- Chief Risk Officer, and Mr. Shanker Ramrakhiani - arrangements;
Chief Information Security Officer. Mr. Vibhore Sharma 10.
Evaluating the risks and materiality of all
is the Chairman of the Committee. prospective outsourcing based on the framework
The scope of the IT Strategy Committee includes the developed by the Board;
references made under RBI Master Directions. The
Financial Statements
11.
Periodically reviewing the effectiveness of
broad terms of reference of the IT Strategy Committee policies and procedures;
are:
12. Communicating significant risks in outsourcing
1.
Approving IT strategy and policy documents to the NBFC’s Board on a periodic basis;
and ensuring that the management has put an 13.
Ensuring an independent review and audit
effective strategic planning process in place; in accordance with approved policies and
2. Ascertaining that management has implemented procedures;
processes and practices that ensure that the IT 14.
Ensuring that contingency plans have been
delivers value to the business; developed and tested adequately;
3.
Ensuring IT investments represent a balance 15.
Ensuring that the business continuity
of risks and benefits and that budgets are preparedness is not adversely compromised on
acceptable; account of outsourcing;
4. Monitoring the method that management uses 16.
To work in partnership with other Board
to determine the IT resources needed to achieve committees and Senior Management to provide
strategic goals and provide high-level direction input to them. It will also carry out review and
for sourcing and use of IT resources; amend the IT strategies in line with the corporate
5. Ensuring proper balance of IT investments for strategies, Board Policy reviews, cyber security
sustaining NBFC’s growth and becoming aware arrangements and any other matter related to IT
about exposure towards IT risks and controls; Governance.
6. Instituting an appropriate governance mechanism 17. Any other matter as may be mandated/referred
by the Authority/Board.
for outsourced processes, comprising of risk
based policies and procedures, to effectively During the year under review 2021-22, the IT Strategy
identify, measure, monitor and control risks Committee of the Company met two (2) times on
associated with outsourcing in an end to end August 17, 2021 and February 07, 2022. The necessary
manner; quorum was present at the Meeting.
The constitution of the IT Strategy Committee and details of attendance of each Member of the Committee at the
aforesaid Meeting(s) of Committee is given below:
Name of the Members Designation Category No. of No. of committee
committee meetings
meetings held attended
Mr. Vibhore Sharma1 Chairman Independent Director 2 2
Mr. Nilesh Vikamsey Member Independent Director 2 2
Ms. Geeta Mathur Member Independent Director 2 2
Mr. Arun Kumar Purwar 2
Member Independent Director N.A. N.A.
Mr. Ramakrishnan Member Independent Director N.A. N.A.
Subramanian2
June 30, 2021 Through Video 2:00 p.m. 1. To approve an offer or invitation to subscribe to non-convertible
Conferencing debentures on private placement basis.
2. To approve increase in investment limits for Non-Resident Indians
and Overseas Citizens of India
June 30, 2020 Through Video 11:00 a.m. 1. To approve an offer or invitation to subscribe to non-convertible
Conferencing debentures on private placement basis.
September 30, Hall of Harmony, 10:00 a.m. 1. To approve an offer or invitation to subscribe to non-convertible
2019 Nehru Center, debentures on private placement basis.
Dr. Annie Besant 2. To approve the borrowing limits of the Company and creation of
Road, Worli, charge/security with respect to borrowing.
Mumbai – 3. To re-appoint Mr. Nilesh Vikamsey (DIN: 00031213) as an Independent
400018 Director of the Company.
4. To re-appoint Mr. Arun Kumar Purwar (DIN: 00026383) as an
Independent Director of the Company.
5. To re-appoint Mr. Nirmal Jain (DIN: 00010535) as a Whole-time
Director of the Company.
6. To appoint Mr. Vijay Kumar Chopra (DIN: 02103940) as an Independent
Director of the Company.
7. To re-appoint Ms. Geeta Mathur (DIN: 02139552) as an Independent
Director of the Company.
Postal Ballot:
During the year under review, no resolution was passed through Postal Ballot. None of the business proposed to be
transacted at the ensuing AGM requires passing a resolution through Postal Ballot.
Corporate Overview
Extra Ordinary General Meeting: related to the Securities markets during the last three
During the year under review, an Extra Ordinary General Financial Years.
Meeting of the Company was held on September 30, (iii) Whistle Blower Policy/Vigil Mechanism
2021, to conduct four (4) special businesses out of In compliance with the provisions of the Act and Listing
which two (2) were Special Resolutions. The details of Regulations, the Company has adopted a Whistle
Special Resolutions passed are as follow: Blower Policy and has established the necessary vigil
Statutory Reports
Date of Location Time Whether any Special mechanism for employees to report genuine concerns
EGM Resolutions passed about unethical behavior, actual or suspected fraud
September Through 2:00 1. To approve appointment or violation of the Company’s Code of Conduct or
30, 2021 Video pm of Mr. Vibhore Sharma Ethics Policy. The Policy provides adequate safeguard
Conferencing (DIN-03314559), as an against victimization of Whistle Blower who avails
Independent Director of such mechanism and also provides for the access
the Company. to the Chairman of Audit Committee. None of the
Whistle Blowers have been denied access to the Audit
Financial Statements
2. To approve appointment
of Mr. Ramakrishnan Committee. The said Policy as approved by the Board
Subramanian (DIN: may be accessed on the website of the Company
02192747), as an i.e.https://www.iifl.com/investor-relations/corporate-
Independent Director of governance.
the Company. (iv) Prevention of Insider Trading
In January 2015, SEBI notified the SEBI (Prohibition of
6. DISCLOSURES
Insider Trading) Regulations, 2015 (“PIT Regulations”)
(i) Disclosure on materially significant Related Party
that came into effect from May 15, 2015. Pursuant
Transactions that may have potential conflict with
the interest of the Company at large: thereof, the Company as a listed Company has
formulated and adopted a new code for prevention
The Company has put in place a Policy for Related Party
of Insider Trading incorporating the requirements in
Transactions (“RPTs”) which has been approved by the
Board. The Policy provides for identification of RPTs, accordance with the PIT Regulations, clarifications
necessary approvals by the Audit Committee/Board/ and circulars and the same are updated as and when
Shareholders, reporting and disclosure requirements required.
in compliance with the Act and Listing Regulations. The Insider Code aims at preserving and preventing
All transactions executed by the Company during misuse of unpublished price sensitive information.
the Financial Year with related parties were on arm’s All Designated Persons of the Company are covered
length basis and in the ordinary course of business. All
under the Insider Code, which provides inter alia for
such RPTs were placed before the Audit Committee for
periodical disclosures and obtaining preclearance
its approval, wherever applicable.
for trading in the securities of your Company. The
During the year, the Company has not entered into any
Company has in place, a tracking mechanism for
material contract(s)/ arrangement(s)/ transaction(s)
monitoring trade in the securities of the Company by
with related parties, which could be considered
Designated Persons identified under the Insider Code.
material in accordance with the Listing Regulations,
Further, a structured digital database is maintained,
sub-section (1) of Section 188 of the Act and the Policy
of the Company on materiality of RPTs. The Policy on which contains the names and other particulars
materiality of RPTs and dealing with RPTs as approved as prescribed, of the persons covered under the
by the Board may be accessed on the website of the Insider Code. The Board has also adopted a Code
Company i.e.https://www.iifl.com/investor-relations/ of Practices and Procedures for Fair Disclosure of
corporate-governance. You may refer Note No. 42 of Unpublished Price Sensitive Information (“UPSI”)
the Standalone Financial Statements which contains which also includes details of your Company’s policy
related party disclosures. for determination on ‘legitimate purposes’ as per the
(ii) Details of non-compliance requirements of the PIT Regulations and is available
No strictures/penalties were imposed on your on the website of the Company i.e. https://storage.
Company by the RBI, Stock Exchanges or by the SEBI googleapis.com/iifl-finance-storage/files/2021-07/
or by any statutory / regulatory authority on any matter Code_of_Fair_Disclosure_of_UPSI.pdf
Corporate Overview
The Company’s website contains a separate section namely “Investor Relations” at https://www.iifl.com/finance/
investor-relations/overview where Members related information is available and Members can access the information
as required to be disseminated on the website of the Company pursuant to clauses (b) to (i) of sub-regulation (2) of
Regulation 46 of the Listing Regulations.
Statutory Reports
1. Annual General Meeting Friday, July 08, 2022 at 2:00 p.m.
The Company is conducting the AGM through Video Conferencing / Other Audio Visual
Mode pursuant to the MCA Circular dated May 05, 2020 read with circulars dated April
09, 2020, April 13, 2020 and May 05, 2022 and as such there is no requirement to have
a venue for the AGM. For details please refer to the Notice of the ensuing AGM.
Financial Statements
Results for the quarter ended June 30, 2022- within 45 days from the end of the
quarter
Results for the quarter ended September 30, 2022 - within 45 days from the end of
the quarter
Results for the quarter ended December 31, 2022 - within 45 days from the end of
the quarter
Results for the quarter and year ended March 31, 2023 - within 60 days from the end
of the quarter
3. Book closure date Saturday, July 02, 2022 to Friday, July 08, 2022
4. Interim dividend During FY 2021-22, your Company had declared an interim dividend of ` 3.50/- per
Equity Share on January 27, 2022 and the same was paid on February 11, 2022.
NIFTY vs IIFL
20,000 350
18,000
300
16,000
14,000 250
NIFTY CLOSING
IIFL CLOSING
12,000 200
10,000
150
8,000
6,000 100
4,000
50
2,000
- -
APR MAY JUNE JULY AUG SEP OCT NOV DEC JAN FEB MAR
NIFTY IIFL
YEAR-2021-2022
Corporate Overview
SENSEX vs IIFL
70,000 350
60,000 300
Statutory Reports
50,000 250
SENSEX CLOSING
40,000 200
IIFL CLOSING
30,000 150
20,000 100
10,000 50
Financial Statements
- -
APR MAY JUNE JULY AUG SEP OCT NOV DEC JAN FEB MAR
SENSEX IIFL
YEAR-2021-2022
10. Share transfer system Your Company’s shares are compulsorily traded in dematerialized form. The transfer, if any,
of physical shares are processed and returned to the Shareholders within the prescribed
statutory period.
All share transfers and other share related issues are approved in the Stakeholders
Relationship Committee Meeting, which is normally convened as and when required.
11. Dematerialization of As on March 31, 2022, 99.93% of the paid-up share capital of the Company was in
shares dematerialized form. Trading in equity shares of the Company is permitted only in
dematerialized form through CDSL and NSDL as per notifications issued by SEBI.
13. Address for Ms. Sneha Patwardhan, Company Secretary and Compliance Officer
correspondence 802, 8th Floor, Hubtown Solaris, N. S. Phadke Marg, Vijay Nagar, Andheri East,
Mumbai – 400069.
Email: shareholders@iifl.com
14. Outstanding GDRs/ The Company does not have any outstanding GDRs/ADRs/Warrants as on date. The
ADRs/Warrants or any Company has outstanding unexercised ESOPs (vested or not vested) of 47,19,138 stock
convertible instruments, options as on March 31, 2022 under its ESOP plans which may be exercised by the grantees
conversion date and likely as per the vesting period. Each option granted is convertible into one equity share of the
impact on equity Company. Upon exercise of options by grantees, the paid-up share capital of the Company
will accordingly increase.
15. Credit Rating The list of credit ratings for all instruments have been provided in the Directors’ Report.
9. SHAREHOLDING PATTERN
Categories of Equity Shareholders as on March 31, 2022:
Corporate Overview
10. DISTRIBUTION OF SHAREHOLDING AS ON MARCH 31, 2022
The distribution of shareholders as on March 31, 2022 is as follows:
No. of equity shares No. of shareholders % of shareholders No. of shares % of share Holding
held (range)
1 to 500 54,995 84.65 46,72,324 1.23
501 to 1000 4,725 7.27 35,50,265 0.94
1001 to 2000 2,319 3.57 34,04,048 0.90
Statutory Reports
2001 to 3000 877 1.35 22,09,560 0.58
3001 to 4000 419 0.65 14,82,339 0.39
4001 to 5000 311 0.48 14,56,811 0.38
5001 to 10000 555 0.85 41,90,248 1.10
10001 and more 764 1.18 35,86,33,116 94.48
Total 64,965 100 37,95,98,711 100
11. PROCEEDS FROM PUBLIC ISSUES, RIGHTS ISSUES 13. CEO/CFO CERTIFICATE
Financial Statements
AND PREFERENTIAL ISSUE, AMONG OTHERS The Certificate required under Listing Regulations
Money raised through those Public Issue of Non- duly signed by the CEO and CFO was submitted to the
Convertible Debentures have been utilized for the Board and the same is annexed to this Report.
purposes, as disclosed in the Prospectus, for which it
was raised and there has been no deviation as on date 14. PREVENTION OF SEXUAL HARASSMENT
in the utilization of the moneys so raised.
Your Company recognizes its responsibility and
continues to provide a safe working environment for
12. SUBSIDIARY COMPANIES women, free from sexual harassment and discrimination.
For the FY 2021-22, your Company has two (2) In Compliance with the Sexual Harassment of Women at
Material Subsidiaries i.e. IIFL Home Finance Limited Workplace (Prevention, Prohibition and Redressal) Act,
and IIFL Samasta Finance Limited (formerly known as 2013, the Company has put in place a Policy on prevention
Samasta Microfinance Limited). of Sexual Harassment of Women at Workplace.
The following Complaints were reported pursuant to
During the year under review, IIHFL Sales Limited
Section 22 of the Sexual Harassment of Women at
was incorporated on September 28, 2021 as a wholly
Workplace (Prevention, Prohibition and Redressal) Act,
owned subsidiary of IIFL Home Finance Limited,
2013 for the FY 2021-22:
wholly owned subsidiary of the Company. Accordingly,
IIHFL Sales Limited became the step-down subsidiary a) Number of complaints received in the year: 3
of the Company. b) Number of complaints disposed off during the
year: 3
For the FY 2022-23, your Company has three (3)
subsidiaries out of which two (2) are material c) Number of cases pending as on end of the year: 0
subsidiary i.e. IIFL Home Finance Limited and IIFL d) Number of workshops or awareness programme
Samasta Finance Limited (formerly known as Samasta against sexual harassment carried out: The
Microfinance Limited). Company has conducted training for creating
awareness against the sexual harassment
The Audit Committee reviews the financial statements
against women at work place.
including particulars of investments made by all the
e) Nature of action taken by the employer or district
unlisted subsidiary Companies.
officer: Not applicable
Your Company has a system of placing the minutes
of the Board/Audit Committee and statements of all 15. COMMODITY PRICE RISK OR FOREIGN EXCHANGE
the significant transactions/developments of all the RISK AND HEDGING ACTIVITIES
unlisted subsidiary companies at the Meeting of Board Your Company actively monitors the foreign exchange
of Directors of the Company. movements and takes forward/options covers as
The policy for determining ‘material’ subsidiaries appropriate to reduce the risks associated with
as approved by the Board may be accessed on the transactions in foreign currencies.
website of the Company i.e. https://www.iifl.com/
The Company has not taken any exposure in
investor-relations/corporate-governance. commodity hedging activities.
Corporate Overview
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
[Pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members,
IIFL Finance Limited
Statutory Reports
IIFL House, Sun Infotech Park,
Road No. 16V, Plot No. B-23,
Thane Industrial Area,
Wagle Estate, Thane – 400 604.
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of IIFL Finance
Limited, having CIN: L67100MH1995PLC093797 and having registered office situated at IIFL House, Sun Infotech Park,
Road No. 16V, Plot No. B-23, Thane Industrial Area, Wagle Estate, Thane – 400 604 (hereinafter referred to as ‘the Company’),
Financial Statements
produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read
with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and carried by us and explanations furnished to us by
the Company & its officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the
Financial Year ending on March 31, 2022 have been debarred or disqualified from being appointed or continuing as Directors of
Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority:
To,
The Board of Directors
IIFL Finance Limited
We certify that;
(a)
We have reviewed the financial statements and the cash flow statement of IIFL Finance Limited for the year ended March
31, 2022 and that to the best of our knowledge and belief:
(i) These statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(ii) These statements together present a true and fair view of the Company’s affairs and are in compliance with the
existing accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which
are fraudulent, illegal or violative of the Company’s Code of Conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated
the effectiveness of the Company’s internal control systems pertaining to financial reporting. We have not come across
any deficiencies in the design or operation of such internal controls.
Place: Mumbai
Date: April 28, 2022
This is to confirm that the Company has adopted a Code of Conduct for its Board Members and the Senior Management
Personnel and the same is available on the Company’s website. I confirm that the Company has in respect of Financial Year
ended March 31, 2022, received from the Board Members and Senior Management Personnel of the Company, declaration of
compliance with the Code of Conduct as applicable to them.
Corporate Overview
To the Members of
IIFL Finance Limited
Mumbai
We have examined the compliance of conditions of Corporate Governance by IIFL Finance Limited (‘the Company’), for the
financial year ended on 31st March, 2022, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and
para C and D of Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Statutory Reports
Regulations, 2015 to the extent applicable.
The compliance with conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to the procedures and implementation thereof adopted by the Company for ensuring the compliance of the conditions
of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us and the representations made
by the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in
the above mentioned Regulations.
Financial Statements
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
Nilesh Shah
Place: Mumbai Partner
Date: April 28, 2022 FCS : 4554
UDIN: F004554D000233827 C.P. No. : 2631
Peer Review No. 698/2020
Note: In view of the restrictions imposed by the Government of India on the movement of people across India to contain the
spread of Covid-19 pandemic, which led to the complete lockdown across the nation, we have relied on electronic data for
verification of certain records.
Corporate Overview
3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in
the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%,
30-60%, More than 60%]
No
SECTION D: BR INFORMATION
1. Details of Director/Directors responsible for BR
Statutory Reports
(a) Details of the Director/Directors responsible for implementation of the BR Policy/Policies
1. DIN: 00011919
2. Name: Mr. R Venkataraman
3. Designation: Joint Managing Director
Financial Statements
Sr. No. Particulars Details
1. DIN (if applicable) 00011919
2. Name Mr. R Venkataraman
3. Designation Joint Managing Director
4. Telephone number +91 22 6788 1000
5. Email ID shareholders@iifl.com
Corporate Overview
(b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
Statutory Reports
the Policies on specified principles
3. The Company does not have financial or
manpower resources available for the task
4. It is planned to be done within next 6 months
5. It is planned to be done within the next 1 year
6. Any other reason (please specify):
Keeping in view the Companies nature of
Financial Statements
business i.e. financial services, such Policy
is not applicable to the Company.
In the home loan segment, we provide small ticket In the SME loans segment, we provide working
home loans to borrowers from lower income capital finance to small business owners. We
segments. Our ‘Swaraj’ program specially caters provide small ticket loans, thereby being able
to loans provided under the affordable housing to meet the needs of small scale businesses
category. Our typical borrowers are first time including standalone shops etc. This product
buyers, employed in the informal sector or owning facilitates bank-excluded customers access of
small businesses. With this product we aim to essential capital to keep their business running
address the essential social need of owning a and provides support to the plethora of micro and
house. We have provided over 151,000 loans small scale enterprises that are crucial to India’s
to first time home buyers and 61% of the total economy.
loans are given to female owners/co – owners. (iv) Gold Loans
Affordable housing projects accounted for 93.6% Gold has traditionally been a critical asset for
of the home loan disbursements in FY 2021-22. Indian households and is relied upon to meet
Over 63,400 loans have been given to informal personal and professional financial needs, from
sector. We have provided over ` 13,000 Million
time to time, for example to finance marriages,
subsidy till date to over 55,700 families through
education, medical emergencies, working capital
CLSS subsidy scheme under the Pradhan Mantri
for small businesses etc. We provide loan against
Awas Yojana (PMAY) scheme.
gold, catering to these needs, from a wide network
Platform for Green Affordable Housing and of branches spread all across the Country. Out of
Finance, through Research, Policy and Technology the total loans provided, 64% of the loans are of
for a Sustainable Eco-System or purpose is a less than ` 50,000.
thought leadership initiative aimed at creating and
2. For each such product, provide the following details
enabling ecosystem in India for Green Affordable
in respect of resource use (energy, water, raw material
Housing. Under this programme, a guidebook
etc.) per unit of product (optional):
called ‘Building Green, IIFL Home Loan’s Guide
to Sustainable Affordable Housing’ was released Considering the nature of business of the Company
in 2020-21. It is a handbook that provides and the products/initiatives referred to above, some of
developers, architects, construction engineers, the questions below are not applicable to the Company.
and homeowners with design and construction i.
Reduction during sourcing/production/distribution
instructions for Green Affordable Housing. achieved since the previous year throughout the
With ‘Kutumb’ Green Building Initiative, we strive to value chain?
reduce our natural resource footprint and carbon Not Applicable
emissions by encouraging measures that enable
ii. Reduction during usage by consumers (energy,
these reductions and alleviate climate change
water) has been achieved since the previous
impacts while keeping housing affordable for the
year?
people. The same is being done in partnership
with housing developers and specialists. Please refer to the response under Principle 6.
Corporate Overview
3. Does the Company have procedures in place for 3.
Please indicate the Number of permanent women
sustainable sourcing (including transportation)? If employees.
yes, what percentage of your inputs was sourced IIFL and its subsidiaries had 4,756 permanent women
sustainably? Also, provide details thereof, in about
employees as on March 31, 2022.
50 words or so.
4.
Please indicate the Number of permanent employees
IIFL being a financial services Company does not
with disabilities.
have any goods and raw material utilization as part
Statutory Reports
of its products and services. IIFL’s major material IIFL does not specifically track the number of disabled
requirements are related to office infrastructure, employees. IIFL is an equal opportunity employer and
administration, IT related equipments and services. treats all its employees equally.
Although, there is very limited procurement 5.
Do you have an employee association that is
requirement, the Company takes various initiatives to recognized by management?
have responsible sourcing.
No
4. Has the Company taken any steps to procure goods
Financial Statements
6.
What percentage of your permanent employees is
and services from local & small producers, including
members of this recognized employee association?
communities surrounding their place of work? If yes,
what steps have been taken to improve their capacity Not Applicable
and capability of local and small vendors? 7.
Please indicate the Number of complaints relating to
IIFL, being a financial services Company procures child labour, forced labour, involuntary labour, sexual
its necessary requirements from local suppliers and harassment in the last Financial Year and pending, as
vendors. The Company has taken various initiatives on the end of the Financial Year.
for development of local communities; the details Three (3) cases of sexual harassment were reported
thereof are available in Annual Report on CSR activities in IIFL and NIL cases in its subsidiaries during the
annexed to Directors’ Report. Kindly refer the same.
Financial Year 2021-22 and all were disposed off after
5.
Does the Company have a mechanism to recycle due verification/investigation and appropriate actions
products and waste? If yes, what is the percentage of initiated, if any. No complaints were received in other
recycling of products and waste (separately as <5%, areas.
5-10%, >10%). Also, provide details thereof, in about
8.
What percentage of your under mentioned employees
50 words or so.
were given safety & skill up- gradation training in the
As the Company is not a manufacturing entity; the last year?
waste generated at our premises is being managed
(a) Permanent Employees -77%
through the process of normal waste disposal. Our
Company has defined procedures in place to dispose (b) Permanent Women Employees -90%
off e-waste through authorized e-waste vendors. Most (c)
Casual/Temporary/Contractual Employees -36%
of our Company’s businesses incorporate social and
(d) Employees with Disabilities -N.A.
environmental concerns in its finance operations. As a
recycling initiative waste, water is entirely treated and Safety at work place is looked at in a multidimensional
re-utilized for gardening, flushing and cooling tower approach at IIFL. Following elements fall under the
requirements in two of our large offices. purview of employee safety:
1. Please indicate the Total number of employees. Fire and Safety drills are conducted at regular intervals
by the qualified security inspectors at our zonal,
IIFL and its subsidiaries had 28,995 employees
(including contractual employees) as on March 31, regional and area offices, and awareness drive is also
2022. undertaken at our branches regularly.
2. Please indicate the Total number of employees hired 2. Information Security Awareness & Data Privacy:
on temporary/contractual/casual basis. Information Security Awareness and Data Privacy
IIFL and its subsidiaries had 115 employees as on training is regularly undertaken to ensure that there
March 31, 2022 on temporary/contractual/casual is no data theft or leakage or malicious content which
basis. may disrupt the functioning of the organization.
Corporate Overview
from indigenous tribal communities (Scheduled Tribe). Principle 6
The teachers have been provided academic training 1.
Does the Policy related to Principle 6 cover only the
(English, Hindi and Math), along with introduction to Company or extends to the Group/Joint Ventures/
Digital Literacy as well as basic financial literacy. The Suppliers/Contractors/NGOs/others?
program is spread across 13 districts of Rajasthan.
As mentioned under responses to Principle 2, given the
IIFL Foundation’s Phulwari Project has redeveloped nature of business of the Company this Principle is not
Maa Bari learning centres (rural) by introduction of largely relevant. However, IIFL and its subsidiaries are in
Statutory Reports
Electricity through Solar Energy, to operate Digital compliance with applicable environmental regulations.
Learning System (TV with AV content) and under- 2.
Does the Company have strategies/initiatives to
ground water pump to provide water for drinking and address global environmental issues such as climate
sanitation. The teachers are given academic training change, global warming, etc? Y/N. If yes, please give
by skilled mentors to impart quality education to the first hyperlink for webpage etc.
generation of learners, students from native Scheduled
As an environmentally responsible corporate, IIFL
Tribe communities. To improve enrolment and retention has been striving towards reducing emissions and
Financial Statements
at the learning centre, IIFL Foundation has made imbibing green sustainable infrastructure, processes,
washrooms child-friendly and developed play-area. policies and practices. Energy conservation measures
The IIFL Foundation has supported Government such as installation of energy efficient equipment,
Schools (rural) by construction of classrooms, sensor based lights, HVAC control measures and
science laboratories, computer laboratories, sanitation reducing use of plastic, recycling of used water are
facilities and introduction of digital learning tools some of the key initiatives undertaken by us. IIFL is an
(Android Tablets), to promote enrolment and retention environment friendly organization constantly working
of students. Scholarships have been granted to girls towards developing solutions to minimize its impact
from financially weaker sections, studying in 8th to 12th on the environment.
grade, to encourage them to pursue higher education IIFL through its subsidiary has created a platform
and not drop out due to financial burden. for Green Affordable Housing and Finance,
Livelihood- Further, IIFL Foundation has enabled through Research, Policy and Technology, for
farmers to generate secondary livelihood by a Sustainable Eco-System. It aims at creating and
undertaking dairy production through promotion of enabling ecosystem in India for Green Affordable
Animal Husbandry. Housing. Under this programme, a guidebook called
‘Building Green, IIFL Home Loan’s Guide to Sustainable
Poverty Alleviation – A special Skill Development Affordable Housing’ was released in 2020-21. It is
Training was imparted to women graduates to groom a handbook that provides developers, architects,
them to be job ready in the BFSI industry with an aim construction engineers, and homeowners with design
to increase the share of women professionals in the and construction instructions for Green Affordable
sector. Housing. With ‘Kutumb’ Green Building Initiative, IIFL
For details, please refer Annual Report on CSR activities strive to reduce our natural resource footprint and
annexed to Directors’ Report. carbon emissions by encouraging measures that
enable these reductions and alleviate climate change
Principle 5
impacts while keeping housing affordable for the
1.
Does the Policy of the Company on human rights people. The same is being done in partnership with
cover only the Company or extend to the Group/Joint housing developers and specialists.
Ventures/Suppliers/Contractors/NGOs/Others? 3.
Does the Company identify and assess potential
IIFL follows the Code of Conduct which covers environmental risks? Y/N
IIFL and its subsidiaries. In addition, IIFL’s Whistle Since the Company is not a manufacturing entity, the
Blower Program covers all its internal and external above question is not applicable.
stakeholders. 4.
Does the Company have any project related to Clean
2.
How many stakeholder complaints have been Development Mechanism? If so, provide details
received in the past Financial Year and what percent thereof, in about 50 words or so. Also, if Yes, whether
was satisfactorily resolved by the management? any environmental compliance report is filed?
During the year under review the Company did not Since the Company is not a manufacturing entity, the
receive any complaints with regard to human rights. above question is not applicable.
Corporate Overview
IIFL Foundation worked proactively to support They shall then in return, teach new set of women
communities in fighting the pandemic. Under it’s and girls.
Mission Conquer COVID, IIFL Foundation compiled
Principle 9
‘Covid Relief Kit’ and handed them to Frontline workers
1.
What percentage of customer complaints/consumer
viz. ASHA Workers (Accredited Social Health Activist),
cases are pending as on the end of Financial Year?
ANMs (Auxiliary Nurse Midwife), Anganwadi Workers
and Government employees in rural areas, to promote The Company and its subsidiaries in their normal
Statutory Reports
their safety in line of work. course of business resolve/reply to the customer
grievances within the given timelines. As on March
2.
Are the programmes/projects undertaken through
31, 2022, the numbers of pending complaints are
in-house team/own foundation/external NGO/
negligible i.e. less than 6% of the total complaints
government structures/any other organization?
received during the year and the same have since been
IIFL Finance Limited and its subsidiaries undertake resolved/replied subsequently.
various CSR projects through its wholly-owned
2.
Does the Company display product information on
subsidiary, IIFL Foundation a Section 8 Company
Financial Statements
the product label, over and above what is mandated
incorporated under the provisions of Companies Act,
as per local laws? Yes/No/N.A. /Remarks(additional
2013 (implementing agency).
information)
3.
Have you done any impact assessment of your
Since the Company is not a manufacturing entity, the
initiative?
above question is not applicable.
IIFL Foundation strictly monitors the activities
3.
Is there any case filed by any stakeholder against
undertaken pursuant to the CSR Policy of the
the Company regarding unfair trade practices,
Company. Further, during the year under review impact
irresponsible advertising and/or anti-competitive
assessment was not applicable to the Company.
behavior during the last five years and pending as on
However, the same has been conducted by IIFL
end of Financial Year. If so, provide details thereof, in
Foundation in respect of ‘Sakhiyon ki Baadi’ program.
about 50 words or so.
4.
What is your Company’s direct contribution to
In the ordinary course of business, some customer may
community development projects- Amount in ` INR
have grievance/disputes against IIFL/its subsidiaries.
and the details of the projects undertaken?
IIFL and its subsidiaries always endeavour to maintain
Please refer Annual Report on CSR activities annexed cordial relationship with its customer and attach
to the Directors’ Report. utmost importance to verify/investigate the matters
5.
Have you taken steps to ensure that this community and arrive at an amicable settlement, but in some
development initiative is successfully adopted by the cases where it is not possible, IIFL pursues legal
community? Please explain in 50 words or so. resolution for the same.
Yes. All the community school programs are 4.
Did your Company carry out any consumer survey/
implemented with active participation of the consumer satisfaction trends?
community by constituting Chaupal Committee (a
In the normal course of the IIFL’s services to
school inspiration committee) comprising members customers, the customer service teams do ascertain
from community viz. sarpanch, ward-panch, elderly the satisfaction of the customers as per its systems
members, women representative. They participate and methodologies as also the management assesses
in decisions regarding the school such as location, the customer satisfaction level on important/critical
appointment of teacher, school timing, etc. This areas from time to time. However, no such formal
ensures that the community owns the program and consumer survey/consumer satisfaction trend has
works towards achieving the goals and objectives. been carried out by IIFL.
Community is made a part of the program and is
encouraged to adopt the learning centers, thus
For IIFL Finance Limited
promoting sustainability of the initiative.
The women participants that attend online training
programs on digital literacy and English, are Arun Kumar Purwar
encouraged to hold training sessions for women Date: April 28, 2022 Chairman & Independent Director
and girls from their community and neighborhood. Place: Mumbai DIN: 00026383
FY21
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY22E FY23P
E- Estimate
P- Projected )7.3(
Breaking up the GDP movement quarter-wise, the Q1 of FY In the Q3 of FY 2021-22, GDP growth further slowed to
2021-22 witnessed a record growth of 20.1%. This expansion 5.4% due to sluggish demand in the manufacturing sector
was fueled by higher consumption expenditure and a low- and unanticipated de-growth in the construction sector.
base effect from the previous fiscal year. Many sectors, The economy did, however, experience considerable growth
including auto sales, retail, farm output, construction, and in the services sector, as well as an increase in consumer
exports, have picked up since the end of the June quarter of spending. According to the Economic Survey FY 2021-22,
FY 2021-22. In the second quarter ended September 2021, total consumption is estimated to have grown by 7.0% in FY
India’s GDP growth normalized to 8.4% as business activities 2021-22 with Government consumption remaining the biggest
recovered to a large extent following a major relaxation in contributor as in the previous year. Private consumption is
Covid-19 related restrictions during the year. The growth was also anticipated to have improved significantly to recover
fueled by the agriculture and manufacturing sectors, which 97% of corresponding pre-pandemic output levels, and it
grew by 4.5% and 5.5%, respectively. The economic recovery is expected to witness a stronger rebound with increased
gained traction throughout the festive season, with Diwali vaccine coverage and faster economic activity normalization.
sales reaching a decade high of ` 1.3 Trillion in CY 2021. Furthermore, the Capital markets in India boomed in 9MFY
(Source: Ministry of Statistics and Program Implementation 2021-22 despite all uncertainties. The rate of growth slowed
sequentially for three quarters in a row with the Omicron
(MOSPI), Business Standard)
wave-induced restrictions and rising inflation impacting
Following the US$ 5 Trillion economic dream for India, the economic activity. The Indian economy saw a muted growth
Government announced various Production Linked Incentive of 4.1% in Q4 of FY 2021-22. With a robust recovery across
(PLI) schemes and committed nearly ` 1.97 Trillion for the economic activities and several sectors approaching pre-
next five years, starting in FY 2021-22. Furthermore, the pandemic levels, the Indian economy has made a strong
Center also extended the Emergency Credit Line Guarantee comeback. In addition to this, even private consumption and
Scheme (ECLGS) till March 31, 2023, to provide credit fixed investment estimates have been boosted from previous
support to small and micro organizations. As of March levels in FY 2021-22. Presently, India is in a stronger position
2022, loans sanctioned under ECLGS had crossed ` 3.19 among global economies, with a significantly more robust
Trillion. (Source: Union Budget 2022) financial sector to sustain growth.
Corporate Overview
OUTLOOK The effects of Covid-19 brought a huge slump to the NBFC
The fundamentals of India’s economy remain robust, and industry in the previous fiscal year. The industry which was
the service sector is catching up. This is further backed by already undergoing a major crisis was further affected due to
the corporate sector’s improved performance, as evidenced decline in disbursement. However, with the support and focus
by the uptrend witnessed in the quarterly results. India is of the Government and various liquidity measures by The
expected to witness a GDP growth of 7.2% in FY 2022-23. Reserve Bank of India (RBI) such as repo rate cut, Targeted
The Government’s substantial capital spending program, as Long-term Repo Operations, Special Liquidity Scheme and
Statutory Reports
envisaged in the Union Budget 2022 along with a healthy Partial Credit Guarantee Scheme, NBFCs surpassed their pre-
financial system, is well-positioned to attract private Covid-19 levels of disbursements in the Q4 of FY21. The total
credit outstanding from the NBFCs segment in India for FY
investment by reviving economic activity and boosting
2020-21 stood at ` 23.75 Trillion and is expected to grow by
demand. The Indian economy is buoyed by significant
6% to 7% in the FY 2021-22. This progress was mainly led by
Foreign Exchange reserves which exceed its level of external
growth in the Housing, Auto, Gold and other retail segments
debt, placing it favourably. Furthermore, with the central
which stood resilient even in the previous fiscal year. While
banks globally as well as in India engaging in gradual and
Financial Statements
the disbursement and AUM trends improved in the Q3 and
calibrated withdrawal of liquidity, this would foster growth
Q4 of FY 2021-22, the trend is expected to continue in Q4 of
in a non-disruptive manner. However, the impacts of further
FY 2021-22 due to the limited impact of the third wave of the
outbreak of Covid-19 and its variants and the ongoing
pandemic.
geopolitical crisis owing to the Russia-Ukraine war needs
to be monitored closely. (Source: CRISIL NBFC Report 2021)
INDUSTRY STRUCTURE AND DEVELOPMENTS 17.7 20.1 24.2 27.2 28.7 29.2 31.0
NBFC
In the recent decade, Non-Banking Financial Companies
(NBFCs) have emerged as one of the principal institutions in
providing credit financing to the unorganized underserved
sector. NBFCs have a systematically important role in the
Indian financial system. They provide a means of financial
inclusion for those who do not have easy access to credit.
FY16 FY17 FY18 FY19 FY20 FY21E FY22E
NBFCs have not only revolutionized the way the lending
system operates in India over the last decade, but they NBFC AUM (` Trillion)
have also merged digitization and technology to provide Source: RBI, NHB, MFin, CRISIL Research
customers with a quick and convenient financing experience.
Thus, accessing the large untapped demographic of the Major regulatory updates
Indian subcontinent and setting the way for economic The Reserve Bank of India (RBI) released Circulars for
prosperity. Clarification on Master Circular on Prudential norms on
Focusing on the low-income groups and untapped Income Recognition, Asset Classification, and Provisioning
segments of the society, the NBFCs provide a plethora pertaining to Advances (IRCAP) dated October 1, 2021.
of services, including MSME financing, Home Finance, These circulars are expected to impact income/asset
Microfinance, Gold loan and other retail segments. With recognition for NBFCs.
small-ticket loan forming the major chunk of the business, 1. Due dates as per RBI circulars:
NBFCs have further integrated with Fintech and developed
a) As per November 12, 2022 Circular
newer products of the technological age. Leveraging on
the hybrid model of physical and digital delivery, NBFCs i) NPA classification in case of interest
have unlocked vast opportunities for the decades to come. repayments, Increasing Consumer Awareness
The Government has also shown major focus towards among the borrowers to be complied -
the development of these NBFCs and have been working March 31, 2022
on governance measures to strengthen the systemic ii) Specification of Due date/repayment
importance of the NBFCs. date - December 31, 2021
Corporate Overview
b. SCBs’ NNPA Ratio Share of Top 3 Lender Groups in
NBFCs’ Gross Payables (%)
% 3.0 1.3 0.6 2.3
5 55.6 53.4
51.5
4
Statutory Reports
per cent
2
23.0 22.6
1 20.4
0 20.8
18.4 17.8
PSBs PVBs FBs All SCBs
Financial Statements
Source: RBI Financial Stability Report
SCBs AMC-MFs Insurance Companies
Asset quality has improved across the spectrum as a result
Source: RBI Supervisory Returns and staff calculations.
of the economic recovery. SCBs asset quality is likely to
improve in the future. This is going to benefit the NBFC
industry, on account of co-lending and co-origination Share of Top 4 Lender Groups in
arrangement. Furthermore, banks are the primary HFCs’ Gross Payables (%)
participants in asset sales and securitization by NBFCs.
A rise in the asset quality of SCBs will boost the NBFCs’
45.4 45.7
liquidity and cash flows. However, the impact of the RBI’s 43.1
updated Prudential Norms must be considered.
Due to the Covid-19-induced lockdown, collection efficiency
decreased last fiscal year. The RBI came to the rescue with
21.9 20.5 21.9
a one-time loan restructuring option that gave the NBFC
industry a much-needed reprieve. In comparison to the 20.2
17.9 18.0
previous year, NBFCs are expected to make lower provisions,
assuming they are better placed than in the previous year.
This would allow them to meet their short-term obligations
with relative ease, notwithstanding a drop in collections due Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
20% 21%
600
400
9%
7% 200
4%
0
2015 2018 2019 2020 2025F 2036F
FY17 FY18 FY19 FY20 FY21E FY22P FY23P
(BCG NBFC Sector Update H1FY 2020-21) Covid-19 induced economic slowdown led to a sharp rise
India has a significantly lower urbanization rate than the in GNPA for HFCs during FY 2020-21. According to CRISIL
global standard, with only 35% of the population categorized Research, the GNPA of the Housing Finance industry
as urban, compared to a global average of 54%. In the last increased by 50-60bps on account of income concerns
decade, India’s urban population grew at 3.4 times the rate in low-income group and mid-income group customers
Corporate Overview
as well as self-employed customers and MSMEs. Relief has become stronger over time, with Indians accounting for
measures such as loan moratorium and one time restricting the majority of gold consumed internationally. It has been
under RBI’s Resolution Framework 1.0 and 2.0 provided the observed that rising income levels boost gold demand.
much-needed breather. It is estimated that around 0.5% However, India’s affinity with gold extends beyond economic
to 1.0% of HFC housing loans have been restructured. growth: gold is inextricably linked to the Indian way of life.
With the economy improving and resolution of stressed And, in the future, India’s Gold market will evolve.
cases, the GNPA ratio is expected to decline in FY 2022-
Statutory Reports
Indians seldom sell their gold jewellery due of an emotional
23. Furthermore, the collection efficiency has also improved
affinity to the yellow metal. Instead, they pledge their
post second wave of Covid-19. The HFC space achieved a
collection efficiency of 100% in August 2021, compared to jewellery to lenders in order to obtain a short-term loan. In
78% in September 2020. FY 2020-21, NBFCs retained a 23% stake in the Indian Gold
Finance sector. The total NBFC Gold loan AUM increased
The Housing Finance space has benefitted tremendously by
by an astounding 44%, surpassing ` 4.7 Trillion in
the Government’s ‘Housing for All’ by 2022 mission. Under
FY 2020-21. This demand was fuelled by a 30% year-on-
this mission, the Government implemented the credit-linked
Financial Statements
year uptick in gold prices in fiscal 2020-21. Borrowers
subsidy scheme as a demand side intervention to expand
benefited from a larger loan value on the same collateral,
institutional credit flow to the housing needs of the people
residing in urban regions. Furthermore, under the Pradhan while lenders benefited from a reduced Loan-to-Value (LTV)
Mantri Awas Yojana (PMAY) Urban scheme, close to 50.82 ratio on their previous loans and further rising demand.
lakh houses have been completed out of 113.55 lakh The Gold loan market is likely to maintain its outstanding
sanctioned and under PMAY Gramin scheme 156.77 lakh performance as a result of increasing digitization, a wider
houses have been completed out of 196.39 lakh sanctioned, physical branch network, minimum documentation, and
as of September 2021. faster turnaround time, as well as increased demand
following the Covid-19 pandemic.
(Source: CRISIL Research)
23. Specialized Gold loan NBFCs are expected to drive AUM (Source: BCG Analysis)
growth based on their focused approach along with the new
technological initiatives that allow customers to transact Total Microfinance industry loan book for FY 2020-21 stood
online with ease. at ` 2.6 Trillion. NBFC-MFIs with a share of 31% stood at
` 8.1 Trillion with a growth of 11% YoY. The Microfinance
(Source: Gold.org, IBEF, CRISIL NBFC Report 2021, BCG
business was impacted since the lockdown halted all
analysis) disbursement and collecting activity. The economic
disruptions experienced in FY 2020-21 due to the onset of
MICROFINANCE the pandemic had affected the cashflows of MFI borrowers,
Emerging-market financial systems and institutions have given the vulnerable profile of the borrowers and unsecured
been unable to address the credit needs of low-income nature of the loan. From an industry average of 97% to 99%,
rural consumers. The primary cause for this is a lack of collection efficiencies decreased to less than 10% to 20%.
GNPA levels also increased to 5.4% in FY 2020-21, with 5%
recognized revenue streams and collateral availability
to 6% predicted in FY 2021-22. However, with the recovery
among these low-income households. Further, issues
of the economy and small enterprises, collections have
that make these groups unbankable include their high
been estimated to have improved. The MFI players have
risk and high processing costs connected with modest good capital buffers, disbursements have stepped up, and
loans and saving accounts. To fill this void, Microfinance the disbursements cycle is projected to restart, with the
institutions have arisen as a panacea for the people that GNPA falling to the region of 4% to 5%.
are unable to acquire financial services from mainstream (Source: BCG Analysis, CRISIL NBFC Report 2021)
banking institutions due to collateral requirements. These Major regulatory updates
institutions assist individuals in accumulating assets, a)
The Reserve Bank of India (RBI) released Circular
surviving crises, and establishing small businesses in order dated March 14, 2022 in which it has removed caps
to lift themselves out of poverty. Furthermore, through on the pricing of small loans given by non-banking
making small loans (microcredit), the Microfinance program financial company-microfinance institutions (NBFC-
offers a variety of financial and non-financial services such MFIs), bringing them to the same level as other such
as savings, insurance, guidance, skill development training lenders, including banks. With this, the underwriting of
loans will be done on a risk-based analysis, and a risk
and capacity building as an incentive to promote income-
premium will be charged based on the borrower.
generating activities. The essential features of Microfinance
b) The existing guidelines prescribe a maximum interest
loan are that they are of small amounts, with short tenures,
rate that a microfinance lender could charge on
extended without collateral and the frequency of loan
loans. This is 10 to 12 percentage points above the
repayments is greater than that for traditional commercial
institution’s cost of funds, or 2.75 times the average
loans. Furthermore, Microfinance acts as a potent tool for base rate of the five-largest commercial banks,
empowering women who constitute the largest part of its whichever is lower.
borrower base and has a bigger influence on their socio- c) All microfinance lenders must now put in place a board-
economic growth and empowerment. approved policy for the pricing of loans which should
(Source: CRISIL Research) include a well-documented interest rate model and
Corporate Overview
the different interest rate components, such as cost of OPPORTUNITIES
funds, risk premium, and margin. It should also contain Bank-NBFC Co-Lending model
the range of spread of each component for categories
The Government is encouraging banks to use the
of borrowers and a ceiling on the interest rate and all
co-origination model of financing to address the needs of the
other charges applicable to the Microfinance loan.
Micro, Small and Medium Enterprises (MSME) in the country,
d)
RBI has also raised the annual household income especially in smaller towns. The Reserve Bank of India (RBI)
level to ` 3 lakhs for classification of eligibility to avail revised the co-lending scheme to provide greater operational
Statutory Reports
Microfinance loan, thus increasing the market size. flexibility to lenders with an aim to improve credit flow to
Earlier, the income caps were kept at ` 0.25 lakhs in the unserved and underserved sector of the economy. This
rural areas and ` 2 lakhs in other areas. Also, no limit on helps flow of credit at a lower cost to a wider market. The
lenders will create an opportunity to attract customers Reserve Bank of India’s (RBI)’s decision to enable banks and
from financially stable/good credit background NBFCs (including HFCs) to co-lend is crucial to the progress
category. of NBFCs in India. This has allowed banks and NBFCs to
e) The central bank has also put a limit on the maximum leverage their respective strengths and offer better lending
Financial Statements
repayment value to 50% of the monthly household options to the economically weaker sections. Co-lending is
income to curtail over-lending to customers. Thus, an important tool to increase the microfinance, MSME and
if the household income is ` 3 lakhs, the maximum affordable housing portfolio, a win-win situation for both
loan instalment that a borrower needs to pay cannot banks and NBFCs. Co-lending is anticipated to boost NBFCs’
exceed ` 1.5 lakhs per year. RBI also said that there performance as better loan originators, allowing them to
would be no prepayment penalty on Microfinance loan. reach a broader audience and provide a better customer care
f) Definition of ‘qualifying assets’ stands revised from experience. While banks have greater liquidity, NBFCs have
minimum 85% of its Net Assets to 75%. Hence better reach and origination capabilities. Co-lending, which
Microfinance companies can now increase their non was developed as a means of increasing liquidity, has opened
MFI loans share upto 25% up new opportunities for NBFCs to expand and succeed.
g) Cashflow Analysis of customer is mandatory, it will E-commerce unlocking the potential of Retail lending
help in getting better customers and create strong The Retail lending ecosystem has undergone dynamic
portfolio. Also, it will create scope for higher ticket size shifts with the ever-evolving preferences of the consumer.
and longer tenure loans. Paper-based Retail lending are a day of the past. With new
fintech integrations, Retail lending has undergone ground
OUTLOOK breaking changes. Consumers in India are now digitally
MFI Industry’s gross loan portfolio is likely to grow in the availing instant loans and also using financing services
mid-single digits in FY 2021-22 as loan disbursements like ‘Buy Now and Pay Later’ (BNPL) through e-commerce
increase and economy rebounds. MFIs are expected to platforms. This has unlocked vast opportunities for the
witness increased demand from low-income groups and NBFCs to reach a wide customer base and offer innovative
small businesses, as the pandemic, had prompted them financing solutions. The psychological shift of the consumer
to put their expansion plans on hold. Given the untapped to avail credit for instant gratification has been key to drive
potential of a primarily rural population in need of financial unsecured lending, personal loans as well as credit cards
aid, the MFI business has a bright future. MFI Industry’s in India. BNPL payment in India is expected to grow by
AUM is expected to expand by 18% to 22% in 2022-23. 89.5% on annual basis to reach US$ 6,927.4 Million in 2022.
Furthermore, given the country’s widespread immunization, The BNPL platforms reported a 100% growth in disbursals
the severity of the impact of emerging virus types appears during Diwali 2021. In November 2021, the Banking industry
to be modest. In the long run, data-driven customer-centric recorded over 1.2 Million new credit card additions. Credit
digital development will aid in the improvement of the card transaction value is estimated to reach `51.72 Trillion
complete loan experience from acquisition to servicing, by by FY 2026-27, expanding at a CAGR of 39.22% between FY
allowing customer profile-based solutions and a shift to 2021-22 and FY 2026-27.
paperless lending procedures. MFIs are likely to continue to (Source: ReseachAndMarkets.com, Businesswire)
grow at a healthy rate in the future years. As India strives
to become a US$ 5 Trillion economy by CY 2025, the Underserved Retail and MSME sector
Microfinance business will play a critical role in improving According to MSME Ministry figures as of November 2021,
the lives of millions of low-income families and allowing India had over 63 Million MSMEs employing over 110
them to contribute to the country’s economic progress. Million people and accounting for 29% of the country’s GDP.
(Source: CARE Research, CARE EDGE Research, BCG They are a key element of the rural ecosystem, accounting
Analysis, ICRA Research) for nearly 30 Million MSMEs (51% of all MSMEs). Given
Corporate Overview
the Company has continually innovated and reinvented to assign and securitize assets of ` 133.60 Billion. IIFL has
itself over time and adapted to the dynamic needs of the ` 94.99 Billion in cash and cash equivalents, and committed
Financial Services industry. credit lines from banks and institutions as on March 31,
2022, adequate to meet not only all near-term liabilities but
IIFL Finance Limited (‘the Company’ or ‘IIFL Finance’ or ‘We’
also to fund the growth momentum.
or ‘it’) together with its subsidiaries – IIFL Home Finance
This has a small impact on margins, however it showcases
Limited and IIFL Samasta Finance Limited, provides a wide
the Company’s prudent policy making and resolution to
range of financial services ranging from Gold, Home, Business
Statutory Reports
grow. The Company enjoys surplus liquidity in all maturity
and Microfinance loan, extended through an unrivalled
buckets across all levels of IIFL Finance and its subsidiaries.
network of branches across India. The Company works on a
The Company’s asset quality continues to be among the
hybrid model of physical and digital distribution of financial
best in the industry. Consolidated GNPAs and NNPAs,
services. Through a wide network of 3,296 branches across recognized as per RBI’s updated prudential norms and
1300+ towns/cities, a robust online infrastructure and provisioned according to Expected Credit Loss (ECL) model
innovative mobile platforms, the Company is serving over prescribed in IndAS, stood at 3.15% and 1.82% of loans,
8 Million customers across business segments. respectively. Furthermore, the coverage for NPAs was 123%
Financial Statements
IIFL is led by the first-generation entrepreneurs under ECL provisioning in Ind-AS (including standard asset
Mr. Nirmal Jain and Mr. R. Venkataraman and is supported coverage). The Company’s (Standalone) Capital Adequacy
by various reputable institutional investors, including Fairfax Ratio is 23.85%, including Tier 1 Capital of 16.02%.
Group and British International Investment Group. The Gross NPA (%)
Company believes in values of honesty and transparency. *
1.76% 1.62% 1.74% 2.04% 1.98% 3.15%
The Company’s focus is on keeping loan products
simple, ensuring transparency and displaying unwavering
commitment to its customers. The Company’s highly
skilled and experienced management team is committed to
fostering a growth culture, entrepreneurship, and innovation
within its massive talent pool of 28,369 employees.
Financial performance and operations review
With recovery witnessed across sectors in the FY 2021-22, FY17 FY18 FY19 FY20 FY21 FY22
the Company’s business across its diversified portfolio of * includes additional impact of 0.85%, on account of RBI circular
Gold loan, Home loan, Business loan, Microfinance loan, dated November 12, 2021
Real Estate and Capital Market Finance continued to grow.
During the year, AUM grew by ` 65.22 Billion and 15% YoY Net NPA (%)
to ` 512.10 Billion, while core AUM grew to ` 476.69 Billion. 0.52% 0.58% 0.49% 0.82% 0.89% 1.82%
GR 21%
ore Segment CA
R 18%: C 512.1
Total CAG 446.9
349.0 379.5
312.3
222.8
327.7 397.9 476.7 FY17 FY18 FY19 FY20 FY21 FY22
291.9
180.9 254.9
Loan AUM for core products in facts grew faster YoY
FY17 FY18 FY19 FY20 FY21 FY22 at 20% driven mainly by small-ticket Home loan, Gold
Core Synergistic
loan and Microfinance loan. Gold loan grew by 23%
YoY, Microfinance loan which grew by 30% YoY, and
Small-ticket Home loan which grew by 23% YoY.
The total comprehensive income grew 63% YoY to ` 11.97
Under the Home loan category, the Company’s focus
Billion (post non-controlling interest).
continued to remain primarily on affordable and non-metro
Liquidity in the system improved significantly in FY 2021- customers. These are Small-ticket loan in the affordable
22. The Company raised long-term funds (excluding home segment to both salaried and self-employed sections
assignment/securitization) of ` 157.92 Billion and was able with average ticket size of ` 1.64 Million. Affordable
NIM on On-Book and Income on Off-Book FY17 FY18 FY19 FY20 FY21 FY22
9.6%
8.5%
Focusing on the Retail portfolio, the Company has undertaken
7.3% 7.8% prudent risk management and sufficient provisioning to
maintain asset class and growth across segments. With
6.9% 7.0%
5.9% 6.4% 6.4% technological advancements, fintech innovations, digital
delivery, and paperless loan processing, the Company is
4.0%
at above-the-industry standards. Right from customer
onboarding to loan disbursement, all the processes have
FY18 FY19 FY20 FY21 FY22 been digitized for unsecured Business loans. The Company
has employed artificial intelligence and machine learning
Net interest margin on On-book assets (%)
Assignment and fee income as a % of Off-book for faster and more reliable credit analysis. The Company
has created an end-to-end loan process through WhatsApp
Medium and High-yielding assets at present constitute to provide the borrowers with a seamless borrowing
64% of the AUM. These include Gold loan, Business loan, experience. This includes customer onboarding, digital
Microfinance loan, and Construction finance. application, loan approval, disbursement, and collection.
Corporate Overview
Disclosure of accounting treatment Outlook post the pandemic
There was no deviation in following the treatments The Gold loan industry, despite being a secured product,
prescribed in any of Accounting Standards (AS) in the used to compete with other substitute unsecured financial
preparation of the financial statements of the Company. products in the pre-pandemic era. However, post the
pandemic the lenders have become risk averse and this has
SEGMENTAL OVERVIEW reduced their focus on collateralized loans. This provides
a huge opportunity for the untapped Gold loan industry in
Statutory Reports
Gold loan
India. The overall Gold loan market in India stands at ` 12.3
People of all classes buy gold in the form of jewellery, gold
Trillion. Only 35% of this market is through formal segment,
coins and bars during good times or on auspicious occasions.
while the remaining 65% is still served by the informal
Sentimental value is associated with gold and people are
sources. According to CRISIL Research, Gold loan AUM is
very averse to the idea of selling their gold possessions.
expected to grow at 12-18% in the next two fiscals, owing
65% of gold is held by people in rural areas. According to
to its secured nature and minimum risk of default. With the
the World Gold Council, India’s total gold demand jumped to
economic revival, the Gold loan industry is experiencing an
797.3 tonnes in CY 2021, registering a massive 78.6% jump
Financial Statements
increased demand from small businesses. Leveraging on
from 446.4 tonnes during CY 2020 on the back of recovery
the advanced technological infrastructure, robust online
in consumer sentiments and pent-up demand post Covid-19
platforms, and paperless loan processing, the Company is
related disruptions and the bullish trend is set to continue this
ready to tap the opportunities that are going to arise in the
year as well. The report further noted that jewellery demand
Gold loan sector going ahead.
during CY 2021 was up by 93% at 610.9 tonnes, compared
Mortgage loans
to 315.9 tonnes in CY 2020. Gold loan offers one of the most
reliable credit sources for rural customers. Owning a home provides a sense of stability and is aspired
by many. The Home loan industry in India has doubled in
NBFCs in India comprise 23% of the total Gold loan AUM
the last five years expanding at a healthy CAGR of 15% to
and are expected to maintain their position, owing to strong
` 22.2 Trillion in FY 2021-22. This growth is on account
presence, well-established network, faster processing, and
of increased demand from Tier-II and Tier-III cities, rising
the ability to serve non-bankable customers.
disposable incomes, Government’s support under Pradhan
(Source: CRISIL Research; BCG analysis) Mantri Awas Yojna (PMAY), interest rate subvention
Business overview schemes and fiscal incentives. NBFCs including HFCs have
The Company offers loans against gold jewellery to small a share of 34% of the Indian home loan industry.
Company owners, merchants, dealers, farmers, and salaried (Source: BCG Analysis)
people. These loans are available at competitive rates, Business overview
with minimal paperwork and a quick response time. The
The Company offers loans for residential property purchases,
Company has a robust verification procedure in place, which
house building, home improvement, and plots. It also provides
is overseen by experienced officers who are qualified and
small and medium businesses with mortgage-backed
educated in asset quality processes. The ornaments are kept loans for residential or commercial properties for a variety
in fireproof and burglary-proof vaults at Gold loan branches of purposes, including working capital, business usage,
that are monitored 24X7 under electronic surveillance. commercial property acquisition, and more.The Company’s
FY 2021-22 under review robust foundation allows it to conduct appropriate credit
background checks on applicants. It assists the Company
During the year, the Company put a strong emphasis on
in undertaking appropriate legal and technological security
expansion combined with strong collections and resolutions
assessments. For large mortgage loans, the Company uses
resulting in negligible losses. The Company’s Gold loan AUM
both external and internal property appraisals, including
grew by 23% uniformity needed in YoY to ` 162.3 Billion
assessments by international property specialists.
for the year ended March 31, 2022. As a part of continued
digital expansions, IIFL launched digital Gold loans for top FY 2021-22 under review
up and online renewal of Gold loan. The Company also The Company’s focal point during the year was affordable
started technology backed initiative Gold Loan at home in and non-metro customers leveraging on IIFL Group’s
a few cities. Disbursements under this initiative reached vast network of 3,000+ touch points. Supporting the
` 5,015 Million in FY 2021-22. Furthermore, the Company Government’s ‘Housing for All’ mission, the Company
also tied up with numerous banks for co-lending of Gold benefited more than 55,700 customers with over
loan which witnessed significant traction during the year. ` 13 Billion in loan so far. The Company’s Home loan AUM
Corporate Overview
Business overview Samasta Finance Limited (previously known as Samasta
Microfinance), are both RBI-registered NBFCs, while IIFL
The Company empowers communities by providing income
Home Finance Limited is a National Home Bank-registered
generating microloans, dairy cattle loan, etc. It comprises a
housing finance subsidiary.
granular portfolio with high yields, dominated by women’s
Self Help Groups (SHGs) for income-generating activities. The Company adopts the ‘Three Lines-of-Defence’
model wherein the first line of defence is management’s
FY 2021-22 under review
Statutory Reports
control to ensure adherence to established policies and
IIFL Finance registered and AUM of ` 61.6 Billion in procedures at the business entity-level. Various risk control
FY 2021-22, up 30% YoY, with an increased ticket size of and compliance oversight functions established by the
approx ` 30,000. The Company focused on diversifying into management are the second line of defence. Finally, the
untapped geographies, enhancing operational efficiency third line comprises the internal audit/assurance function.
as well as supporting its customers to increase their
The compliance function is an essential component of the
productivity post the pandemic. As of March 31, 2022, the
Company’s operations. IIFL’s skilled compliance, audit, and
MFI segment had crossed an active customer base of 1.8
Financial Statements
risk management teams are critical in ensuring that all
Million with a branch strength of 807 in 17 states.
procedures adhere to the laws and regulations, not just in
Outlook letter but also in spirit. The risk management discipline is
The MFI loans are mainly addressed towards income established from the top down, but it is applied across the
generating activities. Hence, there is a lot of opportunities for organization. Separate risk managment teams are deployed
NBFC MFIs going ahead due to economic revival. The rural for separate entities.
sector in the country remains substantially underserved IIFL has implemented digital initiatives across the board,
in terms of credit access. Leading to vast opportunities of beginning with loans and credit, as well as customer
growth in the underpenetrated regions. service, internal operations, and human resources.
RISK MANAGEMENT & GOVERNANCE Digitization aids in the rapid growth of businesses,
allowing them to gain momentum and exponentially
Risk management is an important part of the Company’s strengthen utilising a Do-It-Yourself model that uses
business strategy, and it is smoothly incorporated into all cutting-edge technology while requiring minimal physical
of the Company’s activities. The aim of the Company’s infrastructure and people. Less human interaction and
framework is to optimize the risk-return equation while better customer service are both benefits of digitization.
also ensuring strict adherence to all current laws, rules, Furthermore, technology greatly reduces the potential for
and regulations that apply to all of the Company’s business fraud, omissions, and mistakes.
activities.
IIFL’s diverse financial services are subject to a variety of
The Company strives to cultivate a strong and disciplined
risks that are either intrinsic to the Company or susceptible
risk management culture across all of its business
to changes in the external environment. It tries to establish
operations and at all levels of the organization. Under
a strong risk culture throughout the business in order to
the Enterprise Risk Management (ERM) Framework,
maintain the Company’s financial stability. Credit Risk,
the Company adopts a comprehensive approach to risk
Liquidity Risk, Finance Risk, Fraud Risk, Business Risk, and
management and implements an enterprise-wide risk
Reputational Risk are all addressed by risk management
management strategy. IIFL believes that ERM offers a solid
systems that are properly defined. Even during the Covid-19
framework for ensuring that risk-taking actions across the
pandemic, operational throughput was enabled by this
organization are consistent with the business plan, the
robust risk culture. The lessons learned during the lockdown,
Board’s risk appetite, and regulatory requirements.
particularly on the resilience of established systems and
The Company’s primary business is in the financial services procedures, were incorporated into the risk architecture to
industry. IIFL Finance Limited and its subsidiary, IIFL improve it even further.
Corporate Overview
Risk Risk Response Strategies
Compliance Risk • The Company has a full-fledged compliance department manned by knowledgeable and well-
experienced professionals in compliance, corporate, legal and audit functions. The department
guides the businesses/support functions on all regulatory compliances and monitors
implementation of extant regulations/circulars, ensuring all the regulatory compliances,
governance, and reporting of the Company.
Statutory Reports
• The Company has implemented business-specific Compliance Manuals, limit monitoring
systems and Anti Money Laundering (AML) / Know Your Customer (KYC) policies.
• During the year, compliance with corporate acts, including Companies Act, RBI-NBFC regulations,
NHB-HFC regulations and so on was verified by independent secretarial auditors on the holding
company and major subsidiaries. Their reports and recommendations were considered by the
Board and necessary implementations have been initiated.
• The compliance requirements across various service points have been communicated
Financial Statements
comprehensively to all through compliance manuals and circulars. To ensure complete
involvement in the compliance process, reporting processes have been instituted by heads of all
businesses/zones/area offices and departments, through submission of quarterly compliance
reports. The compilations of these reports are reviewed by the Audit Committee/Board and are
also submitted to regulatory authorities, periodically. Besides, the internal auditors verify the
compliances as part of their audit process.
We use technology-led interventions for training our IIFL strives to groom and engage its workforce to help them
employees. It forms the core of the learning journey at the become tomorrow’s leaders. The Company participated and
Company. received the certification of ‘Great Place to work’ (GPTW) in
Through ‘MoneyVersity’ – our learning experience platform a survey that studied and evaluated work culture. As per a
– we have successfully enhanced our stakeholder learning GPTW survey, a great workplace encourages a culture of
experience beyond the proprietary learning content. It has high-trust and high-performance. It is where employees
also given us an exposure to a larger and wider access TRUST their seniors and people they work for. They take
to national and international content of quality. We have PRIDE in their job and ENJOY (Camaraderie) the company
extended our learnings beyond pure functional or technical of their colleagues. Such organizations are distinctly known
content to areas such as Covid-19 impact, health and for their great leadership, consistent employee experience,
wellness, leadership stories and insights, women-centric and sustainable financial performance.
The Company considers performance and potential to Internal Audit is an autonomous function of the Company,
determine employee growth and promotions. We have led by Head-Internal Audit, who works under the direction
clear demarcated parameters of performance measured and supervision of the Audit Committee of the Board.
through Individual Performance Measures (IPMs). These The Company has used the ‘three lines of defence’ risk
set expectations with regards to performance across the governance strategy to handle diverse risks across multiple
organization. Moreover, we also have an effective feedback products and operations. The line management function is
mechanism that regularly helps employees improve their the first line of defence, followed by the Risk management
skills. Together these help align organization’s objectives and Compliance functions, and finally the Audit function.
with employees’ personal goals. Effective and appropriate To evaluate the efficacy of controls, assess compliance
IPMs help the Company reward people’s performance. with controls, and ensure adherence to internal processes
Technology enablement and procedures, the Internal Audit function works closely
with the Risk Management and Compliance Department.
IIFL’s adrenalin serves as a one-stop employee interface
Internal Audit is carried out in accordance with the Audit
for all human resource-related requirements. It is available
Committee’s approved Annual Risk-Based Audit Plan.
as a mobile app and is also easily accessible 24x7 through
Activities are evaluated for audit planning purposes based
intranet.
on their inherent and control risk. On a yearly basis, the
This interface incorporates and enables the yearly Internal Audit Function conducts a risk assessment
survey along with regular connects with employees via exercise to identify the same. The frequency of auditing
AI Bot. These Bots are made available to chat and assist these activities is determined based on the risk assessment.
employees during their employment with the organization. Internal auditing also encompasses all parts of Company,
They help understand employees’ work experience, seek including normal front-end and back-end operations, as
their feedback and suggestions. Furthermore, they also aid well as internal compliances.
in creating a better and conducive work environment
It emphasises the need of inspecting process controls, as
Management Connect well as the Company’s risk-monitoring and fraud-prevention
We understand the importance of regular management methods. The Company has made significant investments
interaction. Our Managing Director, thus, has a periodic live to ensure that its internal audit and control systems are
connect session ‘Ask Nirmal’ with all the employees through adequate and appropriate for the nature of its company,
Facebook@Work. These sessions help the management regulatory requirements, and size of its operations.
discuss the Company overview, goals and future plans, Furthermore, the Company is ISO/IEC 27001:2013 certified,
opportunities and challenges, among others. The sessions and it has built strong information security protocols,
are also open to live questions from employees which the demonstrating our dedication to providing our clients with
management answers. This practice helps align employees reliable and secure technology.
Corporate Overview
The internal control system is supplemented by concurrent OUTLOOK
and internal audits, as well as special audits and regular
With the effects of the Covid-19 pandemic weaning off
reviews by the management. In order to keep up with the
the economy has moved into a revival mode. The impact
increasing speed of digitalization, the Internal Audit function
of the second wave are less than expected and with vast
uses technological interventions to improve efficiency and
inoculations around the country, the economic morale has
effectiveness through system-driven and analytics-based
risen and consumer spending has increased. With safety
auditing. Furthermore, for Company-wide internal audits, the
Statutory Reports
measures in place, the growth momentum for the economy
Company has delegated the audit of major businesses to
looks optimistic going ahead. However, with the rising
separate top firms in order to benefit from expert oversight,
crude price, the Ukraine crisis and potential future Covid-19
a broader and more diverse verification approach and inputs,
outbreak, uncertainty still looms.
and a greater return on investment from the audit process
and benchmark practises. In this regard, the Company has in Different sectors in the economy are undergoing different
place KPMG for NBFC, HFC and MFI businesses. modes of revival. Some are rebuilding and others are
The Board/Audit Committee examines the overall risk expanding. However, there is one thing common. It is the
Financial Statements
management framework as well as the effectiveness of the need of financing. Like all other sectors, NBFCs also took a
management team’s internal controls. On a quarterly basis, hit due to the Covid-19 pandemic. Leveraging on successful
the Audit Committee examines serious cases of fraud and co-lending associations, NBFC’s superior customer service
takes appropriate action. It also focuses on putting in place expertise and digital capabilities, the NBFCs have a bright
the appropriate procedures and controls to enhance the future ahead. AUM growth and collection efficiency are
system and avoid similar incidents from happening again. already above pre-pandemic levels. Asset quality is
Internal processes have been created to guarantee that expected to revive in the next fiscal year.
there are proper checks and balances in place, as well as Gold loans, Home loan and Microfinance loan are expected
regulatory compliance at every level. The internal audit
to perform better than the other segments. Owing to
team performs a risk-based audit of these processes to
its secured nature, Gold loan is experiencing increased
ensure that internal controls for fraud prevention, detection,
demand from the individuals and small business. And
reporting, and remediation are adequate and effective.
owing to its extensive reach, NBFCs are best placed to tap
these opportunities. The Government though its various
INTERNAL FINANCIAL CONTROLS
measure like Housing for All, Credit Linked Scheme (CLSS),
The Company has appropriate internal controls in place Production Linked Incentive Schemes (PLI) across sectors,
with respect to financial statements and operations, as well as financial inclusion paint a brighter future. Over
and they are functioning properly. The Internal Auditors the years, the Company has made investments in people,
examined the design and efficacy of the major controls and processes and technology to deliver a superior customer
found no significant flaws throughout their investigation. experience. The Company is better placed to tap the
Furthermore, Statutory Auditors assessed that the systems upcoming opportunities and face challenges leveraging on
and procedures were appropriate and that the internal its digital infrastructure, a healthy balance sheet and a zeal
financial controls system over financial reporting is working to grow.
successfully.
Corporate Overview
Sr. Key Audit Matter Response to Key Audit Matter
no
The Company’s impairment allowance is derived from We evaluated management’s controls over collation of
estimates including the historical default and loss ratios. relevant information used for determining estimates for
Management exercises judgement in determining the management overlays.
quantum of loss based on a range of factors
We tested review controls over measurement of impairment
The most significant areas are: allowances and disclosures in financial statements.
Statutory Reports
- Segmentation of loan book
- Determination of exposure at default
- Loan staging criteria
- Calculation of probability of default / Loss given
default
- Consideration of probability weighted scenarios and
Financial Statements
forward looking macro-economic factors
The application of ECL model requires several data
inputs. This increases the risk of completeness and
accuracy of the data that has been used to create
assumptions in the model.
Refer Note 38A.3 to the Financial Statements.
Information Other than the Financial Statements and and fair view of the financial position, financial performance,
Auditor’s Report Thereon total comprehensive income, changes in equity and cash
The Company’s Board of Directors is responsible for the flows of the Company in accordance with the accounting
preparation of the other information. The other information principles generally accepted in India, including the Indian
comprises the information included in the Board’s Report accounting standards specified under Sec 133 of the Act.
including Annexures to Board’s Report and Management This responsibility also includes maintenance of adequate
Discussion and Analysis report but does not include the accounting records in accordance with the provisions of
financial statements and our auditor’s report thereon. The the Act for safeguarding of the assets of the Company and
Director’s report and Management Discussion and Analysis for preventing and detecting frauds and other irregularities;
report is expected to be made available to us after the date selection and application of appropriate accounting policies;
of this auditor’s report. making judgements and estimates that are reasonable and
prudent; and design, implementation and maintenance of
Our opinion on the financial statements does not cover adequate internal financial controls, that were operating
the other information and we do not express any form of effectively for ensuring the accuracy and completeness
assurance conclusion thereon. of the accounting records, relevant to the preparation and
In connection with our audit of the financial statements, our presentation of the financial statements that give a true and
responsibility is to read the other information and, in doing fair view and are free from material misstatement, whether
so, consider whether the other information is materially due to fraud or error.
inconsistent with the financial statements or our knowledge In preparing the financial statements, management is
obtained in the audit, or otherwise appears to be materially responsible for assessing the Company’s ability to continue
misstated. as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis
When we read the Director’s report and Management
of accounting unless the management either intends to
Discussion and Analysis report, if we conclude that there
liquidate the Company or to cease operations, or has no
is a material misstatement therein, we are required to
realistic alternative but to do so.
communicate the matter to those charged with governance
as required under SA 720 ‘The Auditor’s responsibilities The Board of Directors are also responsible for overseeing
Relating to Other Information’. the Company’s financial reporting process.
Responsibilities of Management and Those Charged with Auditor’s Responsibilities for the Audit of the Financial
Governance for the Financial Statements Statements
The Company’s Board of Directors is responsible for the Our objectives are to obtain reasonable assurance about
matters stated in section 134(5) of the Act with respect to whether the financial statements as a whole are free from
the preparation of these financial statements that give a true material misstatement, whether due to fraud or error, and to
Identify and assess the risks of material misstatement From the matters communicated with those charged with
of the financial statements, whether due to fraud governance, we determine those matters that were of most
or error, design and perform audit procedures significance in the audit of the financial statements of the
responsive to those risks, and obtain audit evidence current period and are therefore the key audit matters. We
that is sufficient and appropriate to provide a basis describe these matters in our auditor’s report unless law or
for our opinion. The risk of not detecting a material regulation precludes public disclosure about the matter or
misstatement resulting from fraud is higher than for when, in extremely rare circumstances, we determine that a
one resulting from error, as fraud may involve collusion, matter should not be communicated in our report because
forgery, intentional omissions, misrepresentations, or the adverse consequences of doing so would reasonably
the override of internal control. be expected to outweigh the public interest benefits of such
communication.
• Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures Other Matters
that are appropriate in the circumstances. Under The standalone financials statements of the company for
section 143(3)(i) of the Act, we are also responsible for the previous year ended March 31,2021 were audited by one
expressing our opinion on whether the Company has of the current joint statutory auditors who had expressed
adequate internal financial controls system in place unmodified opinion vide their report dated May 06,2021.
and the operating effectiveness of such controls.
Report on Other Legal and Regulatory Requirements
• Evaluate the appropriateness of accounting policies 1. As required by the Companies (Auditor’s Report) Order,
used and the reasonableness of accounting estimates 2020 (“the Order”) issued by the Central Government
and related disclosures made by management. in terms of Section 143(11) of the Act, we give in
• Conclude on the appropriateness of management’s use “Annexure A” a statement on the matters specified
of the going concern basis of accounting and, based in paragraphs 3 and 4 of the Order, to the extent
on the audit evidence obtained, whether a material applicable.
uncertainty exists related to events or conditions 2. As required by Section 143(3) of the Act, we report
that may cast significant doubt on the Company’s that:
ability to continue as a going concern. If we conclude
a) We have sought and obtained all the information
that a material uncertainty exists, we are required to
and explanations which to the best of our
draw attention in our auditor’s report to the related
knowledge and belief were necessary for the
disclosures in the financial statements or, if such
purposes of our audit of the financial statements.
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained b)
In our opinion, proper books of account as
up to the date of our auditor’s report. However, future required by law have been kept by the Company
events or conditions may cause the Company to cease so far as it appears from our examination of
to continue as a going concern. those books.
• Evaluate the overall presentation, structure and content c) The Balance Sheet, the Statement of Profit and
of the financial statements, including the disclosures, Loss (including Other Comprehensive Income),
and whether the financial statements represent the the Statement of changes in Equity and the
underlying transactions and events in a manner that Statement of Cash Flows dealt with by this Report
achieves fair presentation. are in agreement with the books of account
Corporate Overview
maintained for the purpose or preparation of the or share premium or any other sources
financial statements. or kind of funds) by the company to or
d) In our opinion, the aforesaid financial statements in any other person or entity, including
comply with the Ind AS specified under section foreign entity (“Intermediaries”), with
133 of the Act, read with Rule 7 of the Companies the understanding, whether recorded
(Accounts) Rules, 2014. in writing or otherwise, that the
Intermediary shall, whether, directly
Statutory Reports
e)
On the basis of the written representations or indirectly lend or invest in other
received from the directors as on 31st March, persons or entities identified in any
2022 taken on record by the Board of Directors, manner whatsoever by or on behalf of
none of the directors is disqualified as on 31st the Company (“Ultimate Beneficiaries”)
March, 2022 from being appointed as a director or provide any guarantee, security
in terms of Section 164(2) of the Act. or the like on behalf of the Ultimate
f)
With respect to the adequacy of the internal Beneficiaries;
financial controls over financial reporting of the
Financial Statements
(b)
The management has represented,
Company and the operating effectiveness of
that, to the best of its knowledge
such controls, refer to our separate Report in
and belief, no funds have been
“Annexure B”.
received by the Company from any
g) With respect to the other matters to be included person or entity, including foreign
in the Auditor’s Report in accordance with the entity (“Funding Parties”), with the
requirements of section 197(16) of the Act, as understanding, whether recorded in
amended: writing or otherwise, that the Company
In our opinion and to the best of our information shall, whether, directly or indirectly, lend
and according to the explanations given to or invest in other persons or entities
us, the remuneration paid by the Company identified in any manner whatsoever
to its managing director during the year is in by or on behalf of the Funding Party
accordance with the provisions of section 197 of (“Ultimate Beneficiaries”) or provide
the Act. any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
h) With respect to the other matters to be included
and
in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, (c) In our opinion and based on the audit
2014, in our opinion and to the best of our procedures, we have considered
information and according to the explanations reasonable and appropriate in the
given to us: circumstances; nothing has come
to our notice that has caused us to
i. The Company has disclosed the impact of
believe that the representations under
pending litigations on its financial position in
sub-clause (a) and (b) contain any
its financial statements- Refer Note No 39
material misstatement.
of the financial statements.
ii.
The Company has made provision, v.
The dividend declared or paid during the
as required under the applicable law year by the Company is in compliance with
or accounting standards, for material section 123 of the Companies Act, 2013.
foreseeable losses, if any, on long-term
For V Sankar Aiyar & Co. For Chhajed & Doshi
contracts including derivative contracts;
Chartered Accountants Chartered Accountants
iii. There has not been any delay in transferring (FRN: 109208W) (FRN: 101794W)
amounts which requires to be transferred to
the Investor Education and Protection Fund G. Sankar M. P. Chhajed
by the Company. Partner Partner
M. No.046050 M. No. 049357
iv. (a) The management has represented that,
to the best of its knowledge and belief, Place: Mumbai Place: Mumbai
no funds have been advanced or loaned Date: April 28, 2022 Date: April 28, 2022
or invested (either from borrowed funds UDIN: 22046050AHZCGQ5516 UDIN: 22049357AHZGAW5720
Corporate Overview
3(vii) (a) According to the information and explanations cess and other material statutory dues in arrears
given to us the Company is generally regular in as at 31 March 2022 for a period of more than six
depositing undisputed statutory dues including months from the date they became payable.
provident fund, employees state insurance,
3(vii) (b) According to the information and explanations
income tax, service tax, sales tax, value added
tax, goods and services tax, cess and other given to us and records of the Company examined
statutory dues as applicable to the Company with by us, there are no cases of non-deposit of
Statutory Reports
the appropriate authorities. We are informed that disputed dues of sales tax or duty of customs or
the provisions of Sales Tax, Customs Duty and duty of excise. According to the information and
Excise Duty are not applicable to the Company. explanations given to us, the following dues of
income tax, service tax and Goods and service
There were no undisputed amounts payable in
tax have not been deposited by the Company on
respect of Provident Fund, Employees’ State
account of dispute as at March 31,2022.
Insurance, Income-tax, Goods and Services Tax,
Name of Statute Nature of Dues Forum where Period to which the Amount Amount
Financial Statements
Dispute is Pending Amount Relates Unpaid Deposited under
(` in Million) protest
(` in Million)
Income Tax Act, 1961 Income Tax Bombay High Court AY 2008-09 - -
Income Tax Act, 1961 Income Tax Bombay High Court AY 2009-10 - -
Income Tax Act, 1961 Income Tax CIT(A) AY 2010-11 21.95 40.60
Income Tax Act, 1961 Income Tax CIT(A) AY 2011-12 25.39 14.80
Income Tax Act, 1961 Income Tax CIT(A) AY 2012-13 80.28 41.89
Income Tax Act, 1961 Income Tax CIT(A) AY 2013-14 9.64 42.61
Income Tax Act, 1961 Income Tax CIT(A) AY 2016-17 61.44 15.40
Income Tax Act, 1961 Income Tax CIT(A) AY 2017-18 38.50 21.73
Income Tax Act, 1961 Income Tax CIT(A) AY 2017-18 - 48.63
Income Tax Act, 1961 Income Tax CIT(A) AY 2018-19 - 48.37
Income Tax Act, 1961 Income Tax CIT(A) AY 2018-19 8.16 36.94
Income Tax Act, 1961 Income Tax ITAT AY 2012-13 88.95 -
Income Tax Act, 1961 Income Tax ITAT AY 2013-14 - 3.83
Income Tax Act, 1961 Income Tax ITAT AY 2016-17 - 13.95
The Finance Act, 1994 Service tax Adjudicating Authority Apr 2007 to March 2.35 0.04
2012
The Finance Act, 1994 Service tax CESTAT Mumbai April 2007 to 13 131.91 2.15
May 2008
The Finance Act, 1994 Service tax CESTAT Mumbai July 2012 to March 158.90 3.39
2014
The Finance Act, 1994 Service tax CESTAT Mumbai July 2012 to March 517.58 13.34
2014
Goods and Service GST GST Appeal Mumbai 01st July ‘17 to 1.81 0.18
tax Act 31st March ‘19
3(viii) As per the information and explanation provided to us and as represented to us, there were no transactions not
recorded in the books of account which have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961.
3(ix) (a) According to the information and explanation given to us and based on our audit procedures, the Company has not
defaulted in repayment of loans or borrowings or in the payment of interest thereon to any lender.
(b) According to the information and explanations provided to us, the company has not been declared as wilful defaulter
by any bank or financial institution or other lender.
(c ) According to the information and explanations and records provided to us the term loans were applied for the
purpose for which the loans were obtained.
(d) According to the information and explanations provided to us, in our opinion the funds raised on short term basis
have not been utilised for long term purposes.
3(xii) The Company is not a Nidhi Company and 3(xix) On the basis of the financial ratios, ageing
hence reporting under clause (xii) of the Order is and expected dates of realisation of financial
not applicable. assets and payment of financial liabilities, and
Corporate Overview
our knowledge of the Board of Directors and transfer to a Fund specified in Schedule VII to
Management plans and based on our examination the Companies Act in compliance with second
of the evidence supporting the assumptions, proviso to sub-section (5) of Section 135 of the
nothing has come to our attention, which causes said Act. Accordingly, reporting under clause
us to believe that any material uncertainty exists 3(xx)(a) of the Order is not applicable for the year.
as on the date of the audit report indicating that
(b) Amount of Rs 24.60 millions remaining unspent
Company is not capable of meeting its liabilities
Statutory Reports
under section (5) of section 135 of Companies
existing at the date of balance sheet as and when
they fall due within a period of one year from the Act, pursuant to any ongoing project, has been
balance sheet date. We, however, state that this transferred to special account in compliance with
is not an assurance as to the future viability of provision of sub section (6) of section 135 of the
the Company. We further state that our reporting said Act.
is based on the facts up to the date of the audit
For V Sankar Aiyar & Co. For Chhajed & Doshi
report and we neither give any guarantee nor any
Chartered Accountants Chartered Accountants
assurance that all liabilities falling due within a
Financial Statements
(FRN: 109208W) (FRN: 101794W)
period of one year from the balance sheet date,
will get discharged by the Company as and when G. Sankar M. P. Chhajed
they fall due. Partner Partner
3(xx) (a) According to the information and explanations M. No.046050 M. No. 049357
given to us, there are no unspent amounts Place: Mumbai Place: Mumbai
towards Corporate Social Responsibility (CSR) Date: April 28, 2022 Date: April 28, 2022
on other than ongoing projects requiring a UDIN: 22046050AHZCGQ5516 UDIN: 22049357AHZGAW5720
Corporate Overview
to future periods are subject to the risk that the internal Note on Audit of Internal Financial Controls Over Financial
financial control over financial reporting may become Reporting issued by the Institute of Chartered Accountants
inadequate because of changes in conditions, or that the of India.
degree of compliance with the policies or procedures may
deteriorate. For V Sankar Aiyar & Co. For Chhajed & Doshi
Chartered Accountants Chartered Accountants
Opinion
(FRN: 109208W) (FRN: 101794W)
Statutory Reports
In our opinion, the Company has, in all material respects, an
G. Sankar M. P. Chhajed
adequate internal financial controls system over financial
Partner Partner
reporting and such internal financial controls over financial
M. No.046050 M. No. 049357
reporting were operating effectively as at March 31, 2022
based on the internal control over financial reporting criteria Place: Mumbai Place: Mumbai
established by the Company considering the essential Date: April 28, 2022 Date: April 28, 2022
components of internal control stated in the Guidance UDIN: 22046050AHZCGQ5516 UDIN: 22049357AHZGAW5720
Financial Statements
(` in Millions)
Particulars Notes As at As at
March 31, 2022 March 31, 2021
Assets
[1] Financial assets
(a) Cash and cash equivalents 4 43,569.37 20,518.72
(b) Bank balance other than (a) above 5 12,518.66 15,406.27
(c) Derivative financial instruments 6 644.13 416.88
(d) Receivables
(i) Trade receivables 7 1,405.43 1,593.73
(ii) Other receivables 7 158.00 5.10
(e) Loans 8 128,840.46 155,942.99
(f) Investments 9 24,488.54 12,042.57
(g) Other financial assets 10 5,185.75 2,079.67
216,810.34 208,005.93
[2] Non-financial assets
(a) Current tax assets (net) 2,270.23 2,468.67
(b) Deferred tax assets (net) 11 1,584.97 2,063.60
(c) Investment property 12 2,885.13 2,640.02
(d) Property, plant and equipment 13 1,348.24 955.44
(e) Capital work-in-progress 14 56.44 65.60
(f) Right to use assets 15 2,972.54 2,793.94
(g) Other intangible assets 16 19.16 9.15
(h) Other non-financial assets 17 3,337.15 3,104.90
(i) Assets held for sale 18 78.44 -
14,552.30 14,101.32
Total Assets 231,362.64 222,107.25
Liabilities And Equity
Liabilities
[1] Financial liabilities
(a) Derivative financial instruments 6 1,494.62 1,186.69
(b) Payables
(I) Trade payables
(i) total outstanding dues of micro enterprises and small 19 - -
enterprises
(ii) total outstanding dues of creditors other than micro 19 861.67 664.22
enterprises and small enterprises
(II) Other payables
(i) total outstanding dues of micro enterprises and small - -
enterprises
(ii) total outstanding dues of creditors other than micro 19 99.06 -
enterprises and small enterprises
(c) Finance lease obligation 15 3,276.24 3,054.22
(d) Debt securities 20 51,052.83 53,446.73
(e) Borrowings (other than debt securities) 21 97,710.68 92,179.83
(f) Subordinated liabilities 22 13,696.40 17,373.98
(g) Other financial liabilities 23 17,844.92 14,854.73
186,036.42 182,760.40
[2] Non-financial liabilities
(a) Current tax liabilities (net) 184.41 185.44
(b) Provisions 24 413.84 315.63
(c) Other non-financial liabilities 25 458.95 638.46
1,057.20 1,139.53
Total Liabilities 187,093.62 183,899.93
[3] Equity
(a) Equity share capital 26 759.20 757.68
(b) Other equity 26.1 43,509.82 37,449.64
44,269.02 38,207.32
Total Liabilities and Equity 231,362.64 222,107.25
See accompanying notes forming part of the financial statements 1 - 59
In terms of our report attached For and on behalf of the Board of Directors
For V Sankar Aiyar & Co. For Chhajed & Doshi of IIFL FINANCE LIMITED
Chartered Accountants Chartered Accountants
Firm Registration No. 109208W Firm Registration No. 101794W
G. Sankar M.P. CHHAJED NIRMAL JAIN R. VENKATARAMAN
Partner Partner Managing Director Joint Managing Director
Membership No. 046050 Membership No. 049357 DIN : 00010535 DIN : 00011919
Place: Mumbai RAJESH RAJAK SNEHA PATWARDHAN
Dated: April 28, 2022 Chief Financial Officer Company Secretary
Corporate Overview
FOR THE YEAR ENDED MARCH 31, 2022
(` in Millions)
Sr. Particulars Notes Year ended Year ended
No March 31, 2022 March 31, 2021
Revenue from operations
(i) Interest income 27.1 35,638.11 30,703.91
(ii) Dividend income 27.2 629.05 701.88
(iii) Fees and commission income 501.52 362.31
Statutory Reports
(iv) Net gain on fair value changes 28 720.32 1,553.43
(v) Net gain on derecognition of financial instruments under 31 3,134.09 651.15
amortized cost category
(I) Total revenue from operations 40,623.09 33,972.68
(II) Other income 29 269.44 389.37
(III) Total Income (I+II) 40,892.53 34,362.05
Expenses
(i) Finance costs 30 16,156.07 15,549.75
(ii) Net loss on derecognition of financial instruments under 31 7,238.33 5,686.45
Financial Statements
amortized cost category
(iii) Impairment on financial instruments 32 (2,242.84) 1,980.68
(iv) Employee benefits expenses 33 5,199.05 4,071.14
(v) Depreciation, amortization and impairment 13, 15 1,064.26 908.83
& 16
(vi) Other expenses 34 3,803.91 2,420.75
(IV) Total Expenses (IV) 31,218.78 30,617.60
(V) Profit before exceptional items and tax (III-IV) 9,673.75 3,744.45
(VI) Exceptional items 35 - 530.50
(VII) Profit before tax (V +VI) 9,673.75 4,274.95
(VIII)Tax expense:
(1) Current tax 36 1,712.83 972.83
(2) Deferred tax 11 & 36 511.79 (167.48)
(3) Current tax expenses relating to previous years 36 (5.71) 43.83
Total tax expense 2,218.91 849.18
(IX) Profit for the year (VII-VIII) 7,454.84 3,425.77
(X) Other Comprehensive Income
(A) (i) Items that will not be reclassified to profit or loss
(a) Remeasurement of defined benefit liability/(asset) 36 9.61 8.99
(ii) Income tax relating to items that will not be reclassified 11 & 36 (2.41) (2.26)
to profit or loss
Subtotal (A) 7.20 6.73
(B) (i) Items that will be reclassified to profit or loss
(a) Cash flow hedge (net) 36 (141.32) (291.04)
(ii) Income tax relating to items that will be reclassified to 11 & 36 35.57 73.24
profit or loss
Subtotal (B) (105.75) (217.80)
Other Comprehensive Income (A+B) (98.55) (211.07)
(XI) Total Comprehensive Income for the year (IX+X) 7,356.29 3,214.70
(XII) Earnings per equity share of face value ` 2 each 37
Basic (`) 19.66 9.05
Diluted (`) 19.54 9.03
See accompanying notes forming part of the financial statements 1 - 59
In terms of our report attached For and on behalf of the Board of Directors
For V Sankar Aiyar & Co. For Chhajed & Doshi of IIFL FINANCE LIMITED
Chartered Accountants Chartered Accountants
Firm Registration No. 109208W Firm Registration No. 101794W
(` in Millions)
Particulars Notes Year ended Year ended
March 31, 2022 March 31, 2021
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 9,673.75 4,274.95
Adjustments for:
Depreciation, amortization and impairment 13, 15 1,064.26 908.83
& 16
Impairment on loans 32 (2,159.60) 1,691.10
Impairment on other financial instruments (83.24) 289.58
(Profit) / loss on sale of assets (0.30) 1.53
(Gain) / loss on termination of lease - Ind AS 116 (3.29) (4.45)
Net (gain) / loss on fair value changes on 28 (721.61) (2,043.68)
investments - realized
Net (gain) / loss on fair value changes on 28 1.29 (40.25)
investments - unrealised
Net (gain) / loss on derecognition of financial 31 (3,134.09) (651.15)
instruments under amortized cost
Employee benefit expenses - share based 30.98 4.36
Employee benefit expenses - others 67.36 78.41
Interest on loans (34,340.12) (30,015.51)
Interest on deposits with banks 27.1 (601.82) (530.90)
Dividend income 27.2 (629.05) (701.88)
Finance cost 15,820.12 15,271.54
Interest expenses - Ind AS 116 15 285.69 245.87
Net (gain) / loss on buy back of debentures (7.85) (2.67)
Income received on loans 39,198.33 23,257.46
Interest received on deposits with banks 603.44 549.51
Finance cost paid (16,456.44) (1,065.94) (14,577.99) (6,270.30)
Operating profit / (loss) before working capital 8,607.81 (1,995.35)
changes
Decrease / (increase) in financial and non financial (183.59) (3,079.94)
assets
Increase / (decrease) in financial and non financial 4,190.62 4,007.03 7,516.55 4,436.60
liabilities
Cash (used in) / generated from operations 12,614.84 2,441.25
Taxes paid (1,509.74) (1,331.32)
Net cash (used in) / generated from operating 11,105.10 1,109.93
activities
Loans (disbursed) / repaid (net) 24,457.45 (9,057.89)
Net cash (used in) / generated from operating 35,562.55 (7,947.96)
activities (A)
Corporate Overview
FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars Notes Year ended Year ended
March 31, 2022 March 31, 2021
Redemption in debentures of subsidiary - 499.88
Purchase of investment property (245.10) (63.08)
Proceeds / (Purchase) of Investments (9,475.65) 8,067.21
Statutory Reports
Dividend income 629.05 701.88
Proceeds / (Deposits) from maturity of deposits 2,905.55 (4,960.05)
placed with Banks
Net cash (used in) / generated from investing (9,271.42) 4,586.51
activities (B)
Financial Statements
Proceeds from issue of equity share (including 86.05 45.59
securities premium)
Payment of stamp duty on account of merger (83.40) -
Dividend paid (including dividend distribution tax) (1,328.20) (1,135.41)
Proceeds from debt securities 15,148.20 9,251.80
Repayment of debt securities (18,357.89) (13,685.10)
Proceeds from borrowings (other than debt 40,323.71 121,298.60
securities)
Repayment of borrowings (other than debt (35,027.92) (97,956.56)
securities)
Proceeds from subordinated liabilities 500.00 6,708.60
Repayment of subordinated liabilities (3,639.71) (6,010.29)
Payment of lease liability (861.32) (699.77)
Net cash (used in) / generated from financing (3,240.48) 17,817.46
activities (C)
NET INCREASE IN CASH AND CASH EQUIVALENTS 23,050.65 14,456.00
(A+B+C)
Add : Opening cash and cash equivalents as at the 20,518.72 6,062.72
beginning of the year
Cash and cash equivalents as at the end of the year 4 43,569.37 20,518.72
See accompanying notes forming part of the 1 - 59
financial statements
In terms of our report attached For and on behalf of the Board of Directors
For V Sankar Aiyar & Co. For Chhajed & Doshi of IIFL FINANCE LIMITED
Chartered Accountants Chartered Accountants
Firm Registration No. 109208W Firm Registration No. 101794W
B. Other Equity
(` in Millions)
Particulars Share Reserves & Surplus Other Comprehensive Total
application Income
money
Capital Securities General Special Capital Debenture Retained Stock Effective Remeasurements
pending
Reserve Premium Reserve Reserve Redemption Redemption Earnings Compensation portion of of defined benefit
allotment
(Note 2) Reserve (Note 4) pursuant to Reserve Reserve (Note 8) Reserve Cash Flow (Note 11)
180
(Note 1)
( Note 3) Section 45 (Note 6) (Note 7) (Note 9) Hedges
IC of Reserve (Note 10)
Bank of India
Act, 1934
(Note 5)
Balance as at April 1, 2020 - 838.85 18,344.36 5,086.05 5,255.11 2,301.11 128.04 3,208.15 174.14 - (14.41) 35,321.40
Profit for the year - - - - - - - 3,425.77 - - - 3,425.77
Other comprehensive income/ (loss) - - - - - - - - - (217.80) 6.73 (211.07)
Notes:
1. Share application money pending allotment: Money received for share application for which allotment is pending.
3. Securities Premium Reserve: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.
STANDALONE STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
4. General Reserve: The reserve can be distributed/ utilized by the Company, in accordance with The Companies Act, 2013.
5. Special Reserve: Pursuant to section 45-IC of the Reserve Bank of India Act, 1934, 20% of the profit after tax for the year has been transferred from Retained Earnings to Special
Reserve.
6. Capital Redemption Reserve: This reserve has been created on redemption of preference shares capital as per section 55 of The Companies Act, 2013.
7. Debenture Redemption Reserve: Pursuant to Section 71 of The Companies Act, 2013 read with Rule 18 of the Companies (Share Capital and Debentures) Rules, 2014 the
Company being an NBFC is required to create Debenture Redemption Reserve of a value equivalent to 25% of the debentures offered through public issue. Pursuant to Ministry of
Corporate Affairs circular dated August 16, 2019, reserve is not required to be created for the Non Convertible Debentures going forward.
8. Retained Earnings: These are the profits that the Company has earned till date, less any transfers to Statutory Reserve, Debenture Redemption Reserve, General Reserve, Dividend
distribution and Capital Redemption Reserve.
9. Stock Compensation Reserve: The employee stock options reserve represents reserve in respect of equity settled share options granted to the employees of the Company and its
Group in pursuance of employee stock options plan.
10. Effective portion of Cash Flow Hedges:These reserve refers to changes in the fair value of Derivative Financial Contracts which are designated as effective Cash Flow Hedge.
11. Remeasurements of defined benefit: This reserve refers to remeasurement of gains and losses arising from experience adjustments, changes in actuarial assumptions and return
181
See accompanying notes forming part of the financial statements ( 1 - 59 )
In terms of our report attached For and on behalf of the Board of Directors
For V Sankar Aiyar & Co. For Chhajed & Doshi of IIFL FINANCE LIMITED
Chartered Accountants Chartered Accountants
Firm Registration No. 109208W Firm Registration No. 101794W
NOTE 1. CORPORATE INFORMATION: similarities to fair value but are not fair value, such as value
in use in Ind AS 36.
Company overview
Fair value measurements under Ind AS are categorized
IIFL Finance Limited (the “Company”) is a Systemically
into Level 1, 2, or 3 based on the degree to which the inputs
Important Non-Banking Financial Company not accepting
to the fair value measurements are observable and the
public deposits (“NBFC-ND-SI”) registered with the Reserve
significance of the inputs to the fair value measurement in
Bank of India (“the RBI”) under section 45-IA of the Reserve
its entirety, which are described as follows:
Bank of India Act, 1934 and primarily engaged in financing
and related activities. The Company had received the Level 1 inputs are quoted prices (unadjusted) in active
certificate of registration from RBI on March 12, 2020, markets for identical assets or liabilities that the
enabling the Company to carry on business as a Non- Company can access at measurement date;
Banking Financial Company. The Company offers a broad
Level 2 inputs are inputs, other than quoted prices
suite of financial products such as gold loan, loans to
included within level 1, (that are not traded in active
Micro, small & medium enterprise (“MSME”), loan against market) that are observable for the asset or liability,
securities and digital finance loans either directly or indirectly; and
The audited financial statements were subject to review Level 3 inputs are unobservable inputs for the valuation
and recommendation of Audit Committee and approval of of assets or liabilities.
Board of Directors. On April 28, 2022, Board of Directors
of the Company approved and recommended the audited (a) Use of estimates and judgements
financial statements for consideration and adoption by the The preparation of the financial statements in
shareholders in its Annual General Meeting. conformity with Indian Accounting Standards (“Ind
AS”) requires the management to make estimates,
NOTE 2. BASIS OF PREPARATION AND PRESENTATION
judgements and assumptions. These estimates,
OF FINANCIAL STATEMENTS:
judgements and assumptions affect the application
The financial statements have been prepared in accordance of accounting policies and the reported amounts of
with the Indian Accounting Standards (“Ind AS”) on the assets and liabilities, the disclosures of contingent
historical cost basis except for certain financial instruments liabilities at the date of the financial statements and
that are measured at fair values at the end of each reporting reported amounts of revenues and expenses during
period as explained in the accounting policies below and the period. Accounting estimates could change from
the relevant provisions of The Companies Act, 2013 (“Act”). period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are
Accounting policies have been consistently applied except
made as the management becomes aware of changes
where a newly issued accounting standard is initially
in circumstances surrounding the estimates. Changes
adopted or a revision to an existing accounting standard
in estimates are reflected in the financial statements in
requires a change in the accounting policy hitherto in use.
the period in which changes are made and, if material,
Historical cost is generally based on the fair value of the their effects are disclosed in the notes to the financial
consideration given in exchange for goods and services. statements.
Fair value is the price that would be received to sell an asset (b) Statement of compliance
or paid to transfer a liability in an orderly transaction between The standalone financial statements of the Company
market participants at the measurement date, regardless of have been prepared in accordance with the provisions
whether that price is directly observable or estimated using of the Act and the Ind AS notified under the Companies
another valuation technique. In estimating the fair value of (Indian Accounting Standards) Rules, 2015 issued by
an asset or a liability, the Company takes into account the Ministry of Corporate Affairs in exercise of the powers
characteristics of the asset or liability if market participants conferred by section 133 read with sub-section (1)
would take those characteristics into account when pricing of section 210A of the Companies Act, 2013 along
the asset or liability at the measurement date. Fair value with the applicable guidelines issued by Reserve
for measurement and/ or disclosure purposes in these Bank of India (“RBI”). In addition, the guidance notes/
financial statements is determined on such a basis, except announcements issued by the Institute of Chartered
for share based payment transactions that are within the Accountants of India (“ICAI”) are also applied except
scope of Ind AS 102, leasing transactions that are within the where compliance with other statutory promulgations
scope of Ind AS 116, and measurements that have some requires a different treatment.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
prepared and presented as per the requirements of
Cheque bounce charges, late payment charges
Ind AS 7 “Statement of Cash Flows”. The disclosure
and foreclosure charges are recognized on a
requirements with respect to items in the Balance
point-in-time basis and are recorded when
Sheet and Statement of Profit and Loss, as prescribed
realized.
in the Schedule III to the Act, are presented by way of
notes forming part of the Financial Statements along Fee and commission expenses with regards
with the other notes required to be disclosed under the to services are accounted for as and when the
notified Accounting Standards and regulations issued services are delivered.
Financial Statements
by the RBI. iii. Income from financial instruments at FVTPL
Note 3. SIGNIFICANT ACCOUNTING POLICIES Income from financial instruments at FVTPL
(a) Revenue recognition includes all gains and losses from changes in
Revenue is recognized to the extent that it is probable the fair value of financial assets and financial
that the economic benefits will flow to the Company liabilities at FVTPL.
and the revenue can be reliably measured and there iv. Assignment transactions
exists reasonable certainty of its recovery.
In accordance with Ind AS 109, in case of
i. Interest income and dividend income assignment transactions with complete transfer
Interest income on financial instruments at of risks and rewards without any retention of
amortized cost is recognized on a time proportion residual interest, gain arising on such assignment
basis taking into account the amount outstanding transactions is recorded upfront in the Statement
and the effective interest rate (“EIR”) applicable. of Profit and Loss and the corresponding
asset is derecognized from the Balance Sheet
Interest on financial instruments measured at fair immediately upon execution of such transaction.
value is included within the fair value movement Further, the transfer of financial assets qualifies
during the period. for derecognition in its entirety, the whole of the
The EIR is the rate that exactly discounts interest spread at its present value (discounted
estimated future cash flows of the financial over the life of the asset) is recognized on the
instrument through the expected life of the date of derecognition itself as interest only
financial instrument or, where appropriate, a strip receivable (interest strip on assignment)
shorter period, to the net carrying amount of the and correspondingly recognized as profit on
financial instrument. The future cash flows are derecognition of financial asset.
estimated taking into account all the contractual
v. Securitization transactions
terms of the instrument.
In accordance with Ind AS 109, in case of
The calculation of the EIR includes all fees paid
securitization transactions, the Company
or received between parties to the contract
retains substantially all the risks and rewards of
that are incremental and directly attributable to
ownership of a transferred financial asset, the
the specific lending arrangement, transaction
Company continues to recognize the financial
costs, and all other premiums or discounts. For
asset and also recognizes a collateralized
financial assets at fair value through profit and
borrowing for the proceeds received.
loss (“FVTPL”), transaction costs are recognized
in the Statement of Profit and Loss at initial vi. Other operational revenue
recognition.
Other operational revenue represents income
Dividend on equity shares, preference shares earned from the activities incidental to the
and on mutual fund units is recognized as business and is recognized when the right to
income when the right to receive the dividend is receive the income is established as per the
established. terms of the contract.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
sale is highly probable and is expected to qualify for (h) Employee benefits
recognition as a completed sale within one year from Defined contribution plans
the date of classification. Non-current assets classified
as held for sale are measured at lower of their carrying The Company’s contribution towards Provident Fund
amount and fair value less costs to sell. and Family Pension Fund are considered as defined
contribution plans and are charged as an expense
(f) Impairment of assets based on the amount of contribution required to
Statutory Reports
As at the end of each accounting year, the Company be made as and when services are rendered by the
reviews the carrying amounts of its PPE, intangible employees and are accounted for on an accrual basis
assets and investment property assets to determine and recognized in the Statement of Profit and loss.
whether there is any indication that those assets have
Defined benefit plans
suffered an impairment loss. If such indication exists,
the PPE, intangible assets and investment property Short term employee benefits: Employee benefits
are tested for impairment so as to determine the falling due wholly within twelve months of rendering
impairment loss, if any. the service are classified as short-term employee
Financial Statements
benefits and are expensed in the period in which
Recoverable amount is the higher of fair value less
the employee renders the related service. Liabilities
costs of disposal and value in use. If recoverable
recognized in respect of short-term employee benefits
amount of an asset is estimated to be less than
are measured at the undiscounted amount of the
its carrying amount, such deficit is recognized benefits expected to be paid in exchange for the
immediately in the Statement of Profit and Loss as related service. These benefits include performance
impairment loss and the carrying amount of the asset incentive and compensated absences
is reduced to its recoverable amount.
Post employment benefits: The employees’ gratuity
When an impairment loss is subsequently reversed, fund scheme represents defined benefit plan. The
the carrying amount of the asset is increased to the present value of the obligation under defined benefit
revised estimate of its recoverable amount, to an plan is determined based on actuarial valuation using
extent that it does not exceed the carrying amount that the Projected Unit Credit Method.
would have been determined had no impairment loss
The obligation is measured at the present value of
been recognized for the asset in prior years. A reversal
the estimated future cash flows using a discount rate
of an impairment loss is recognized immediately in the
based on the market yield on government securities of
Statement of Profit and Loss.
a maturity period equivalent to the weighted average
(g) Share-based payment arrangements maturity profile of the defined benefit obligations at
Equity-settled share-based payments to employees the Balance Sheet date.
and others providing similar services are measured Re-measurement, comprising actuarial gains and
at the fair value of the equity instruments at the grant losses, the return on plan assets (excluding amounts
date. included in net interest on the net defined benefit
The fair value determined at the grant date of the liability or asset) and any change in the effect of
equity-settled share-based payments is expensed on asset ceiling (if applicable) is recognized in other
a straight-line basis over the vesting period, based on comprehensive income and is reflected in retained
the Company’s estimate of equity instruments that earnings and the same is not eligible to be reclassified
will eventually vest, with a corresponding increase in to the Statement of Profit and Loss.
equity. Defined benefit costs comprising current service
Securities premium includes: cost, past service cost and gains or losses on
settlements are recognized in the Statement of Profit
The difference between the face value of the
and Loss as employee benefit expenses. Gains or
equity shares and the consideration received
losses on settlement of any defined benefit plan
in respect of shares issued pursuant to Stock
are recognized when the settlement occurs. Past
Option Scheme.
service cost is recognized as expense at the earlier
The fair value of the stock options which are of the plan amendment or curtailment and when the
treated as expense, if any, in respect of shares Company recognizes related restructuring costs or
allotted pursuant to Stock Options Scheme termination benefits.
In case of funded plans, the fair value of the plan Deferred tax is not recognized for:
assets is reduced from the gross obligation under the
- Temporary differences on the initial recognition
defined benefit plans to recognize the obligation on a
of assets or liabilities in a transaction that is not
net basis.
a business combination and that affects neither
Long term employee benefits: The obligation accounting nor taxable profit or loss
recognized in respect of long-term benefits being long
term compensated absences, is measured at present - Temporary differences related to investments in
value of estimated future cash flows expected to be subsidiaries, associates and joint arrangements
made by the Company and is recognized in a similar to the extent that the Group is able to control the
manner as in the case of defined benefit plan above. timing of the reversal of the temporary differences
and it is probable that they will not reverse in the
(i) Earnings per share foreseeable future; and
Basic earnings per share is calculated by dividing the
-
Taxable temporary differences arising on the
net profit or loss for the year attributable to equity
initial recognition of goodwill.
shareholders (after deducting attributable taxes)
by the weighted average number of equity shares Deferred tax assets are recognized for unused tax
outstanding during the year. losses, unused tax credits and deductible temporary
For the purpose of calculating diluted earnings per differences to the extent that it is probable that future
share, the net profit or loss for the year attributable taxable profits will be available against which they can
to equity shareholders (after deducting attributable be used. Future taxable profits are determined based
taxes) and the weighted average number of equity on business plans and the reversal of temporary
shares outstanding during the year are adjusted for the differences.
effects of all dilutive potential equity shares. Potential Deferred tax assets are reviewed at each reporting
equity shares are deemed to be dilutive only if their date and are reduced to the extent that it is no longer
conversion to equity shares would decrease the net probable that sufficient taxable profits will be available
profit per share from continuing ordinary operations. to allow all or part of the assets to be recovered.
Potential dilutive equity shares are deemed to be
converted as at the beginning of the period, unless The measurement of deferred tax reflects the tax
they have been issued at a later date. The dilutive consequences that would follow from the manner in
potential equity shares are adjusted for the proceeds which the Company expects, at the reporting date,
receivable had the shares been actually issued at fair to recover or settle the carrying amount of its assets
value (i.e. average market value of the outstanding and liabilities. For this purpose, the carrying amount
shares). Dilutive potential equity shares are determined of investment property measured at fair value is
independently for each period presented. presumed to be recovered through sale, and the
Company has not rebutted this presumption.
(j) Taxes on income
For transactions and other events recognized in profit
Current tax
or loss, any related tax effects are also recognized
Current tax is the amount of tax payable on the taxable in profit or loss. For transactions and other events
income for the year as determined in accordance with recognized outside profit or loss (either in other
the applicable tax rates and the provisions of the comprehensive income or directly in equity), any
Income Tax Act, 1961 and other applicable tax laws. related tax effects are also recognized outside profit or
Deferred tax loss (either in other comprehensive income or directly
in equity, respectively).
Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities Deferred tax assets and liabilities are offset when there
in the Company’s financial statements and the is a legally enforceable right to set off assets against
corresponding tax bases used in computation of liabilities, representing current tax and where the
taxable profit and quantified using the tax rates and deferred tax assets and deferred tax liabilities relates
laws enacted or substantively enacted as on the to taxes on income levied by the same governing
Balance Sheet date. taxation laws.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Current and deferred tax for the year or the purpose of SPPI test, principal is the fair value
F
of the financial asset at initial recognition. The principal
urrent and deferred tax are recognized in the
C
amount may change over the life of the financial asset
Statement of profit and loss, except when they relate
to items that are recognized in other comprehensive (e.g., if there are repayments of principal). Interest
income or directly in equity, in which case, the consists of consideration for the time value of money,
current and deferred tax are also recognized in for the credit risk associated with the principal amount
outstanding during a particular period of time and for
Statutory Reports
other comprehensive income or directly in equity
respectively. other basic lending risks and costs, as well as a profit
margin. The SPPI assessment is made in the currency
(k) Financial instruments
in which the financial asset is denominated.
Financial assets and financial liabilities are recognized
in the Company’s Balance Sheet when the Company Contractual cash flows that are SPPI are consistent
becomes a party to the contractual provisions of the with a basic lending arrangement. Contractual terms
instrument. that introduce exposure to risks or volatility in the
Financial Statements
Recognized financial assets and financial liabilities contractual cash flows that are unrelated to a basic
are initially measured at fair value. Transaction costs lending arrangement, such as exposure to changes
and revenues that are directly attributable to the in equity prices or commodity prices, do not give rise
acquisition or issue of financial assets and financial to contractual cash flows that are SPPI. An originated
liabilities (other than financial assets and financial or an acquired financial asset can be a basic lending
liabilities at FVTPL) are added to or deducted from the arrangement irrespective of whether it is a loan in its
fair value of the financial assets or financial liabilities, legal form.
as appropriate, on initial recognition. Transaction costs
An assessment of business models for managing
and revenues directly attributable to the acquisition
financial assets is fundamental to the classification
of financial assets or financial liabilities at FVTPL are
recognized immediately in the Statement of Profit and of a financial asset. The Company determines the
Loss. business models at a level that reflects how financial
assets are managed together to achieve a particular
Financial assets
business objective. The Company’s business model
Classification and measurement does not depend on management’s intentions for
an individual instrument, therefore the business
The Company classifies its financial assets into the
following measurement categories: amortized cost; model assessment is performed at a higher level
fair value through other comprehensive income; and of aggregation rather than on an instrument-by-
fair value through profit or loss. instrument basis.
All recognized financial assets that are within the Debt instruments that are subsequently measured at
scope of Ind AS 109 are required to be subsequently amortized cost are subject to impairment.
measured at amortized cost or fair value on the basis of
the entity’s business model for managing the financial
Financial instruments measured at fair value through
assets and the contractual cash flow characteristics other comprehensive income (“FVTOCI”)
of the financial assets. Debt instruments that meet the following criteria are
Financial instruments measured at amortized cost measured at fair value through other comprehensive
income (except for debt instruments that are
Debt instruments that meet the following criteria
designated as at fair value through profit or loss on
are measured at amortized cost (except for debt
initial recognition):
instruments that are designated as at fair value
through profit or loss on initial recognition): the asset is held within a business model
the asset is held within a business model whose whose objective is achieved both by collecting
objective is to hold assets in order to collect contractual cash flows and selling financial
contractual cash flows; and assets; and
the contractual terms of the instrument give rise the contractual terms of the instrument give
on specified dates to cash flows that are solely rise on specified dates to cash flows that are
payments of principal and interest (“SPPI”) on the solely payments of principal and interest on the
principal amount outstanding. principal amount outstanding.
Interest income is recognized in Statement of profit under the accounting policy on modification and
and loss for FVTOCI debt instruments. Other changes derecognition of financial assets described below.
in fair value of FVTOCI financial assets are recognized
Impairment of financial assets
in other comprehensive income. When the asset is
disposed of, the cumulative gain or loss previously
Company recognizes loss allowances using the
accumulated in reserve is transferred to Statement of Expected Credit Loss (“ECL”) model for the financial
Profit and Loss. assets which are not fair valued through profit and
loss. ECL is calculated using a model which captures
Financial instruments measured at fair value through portfolio performance over a period of time. ECL is a
Profit and Loss (“FVTPL”) probability-weighted estimate of credit losses. A credit
loss is the difference between the cash flows that
Instruments that do not meet the amortized cost or
are due to an entity in accordance with the contract
FVTOCI criteria are measured at FVTPL. Financial
and the cash flows that the entity expects to receive
assets at FVTPL are measured at fair value at the
discounted at the original EIR. Vintage loss curve model
end of each reporting period, with any gains or
is used for ECL computation of retail portfolio which
losses arising on re-measurement recognized in the
involves assessment of performance of segmented
Statement of Profit and Loss. The gain or loss on
portfolio over a time period. The model tracks month-
disposal is recognized in the Statement of Profit and
wise losses during the loan tenor. Vintage loss rate
Loss. models provide a simple, reasonable model for both
Interest income is recognized in the Statement of one-year and lifetime expected credit loss forecasts.
Profit and Loss for FVTPL debt instruments. Dividend For wholesale portfolio, ECL computation is done for
on financial assets at FVTPL is recognized when the each loan account based on CRISIL default study and
Company’s right to receive dividend is established. International Review Board (“IRB”) guidelines.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
facility has not been previously de-recognized Default considered for computation of ECL
and is still in the portfolio. computation is as per the applicable prudential
regulatory norms.
Loss given default (“LGD”) estimates the
normalized loss which Company incurs post Significant increase in credit risk
customer default. It is usually expressed as a
The Company monitors all financial assets, issued
percentage of the Exposure at default (“EAD”).
loan commitments and financial guarantee contracts
Statutory Reports
Effective interest rate (“EIR”) is the rate that
that are subject to the impairment requirements to
discounts estimated future cash flows through assess whether there has been a significant increase
the expected life of financial instrument. For in credit risk since initial recognition. The Company’s
calculating EIR any upfront fees needs to be accounting policy is not to use the practical expedient
excluded from the loans and advance amount. that financial assets with ‘low’ credit risk at the
reporting date are deemed not to have had a significant
Credit impaired financial assets
increase in credit risk.
Financial Statements
A financial asset is ‘credit impaired’ when one or
In assessing whether the credit risk on a financial
more events that have a detrimental impact on the
instrument has increased significantly since initial
estimated future cash flows of the financial asset have
recognition, the Company compares the risk of a
occurred. Credit-impaired financial assets are referred
default occurring on the financial instrument at the
to as Stage 3 assets. Evidence of credit-impairment
reporting date based on the remaining maturity of the
includes observable data about the following events:
instrument with the risk of a default occurring that was
significant financial difficulty of the borrower or anticipated for the remaining maturity at the current
issuer; reporting date when the financial instrument was first
recognized. In making this assessment, the Company
a breach of contract such as a default or past due
considers both quantitative and qualitative information
event;
that is reasonable and supportable, including historical
the lender of the borrower, for economic or
experience and forward-looking information that is
contractual reasons relating to the borrower’s available without undue cost or effort, based on the
financial difficulty, having granted to the borrower Company’s expert credit assessment.
a concession that the lender would not otherwise
Modification and derecognition of financial assets
consider;
A modification of a financial asset occurs when
the disappearance of an active market for a
the contractual terms governing the cash flows
security because of financial difficulties; or
of a financial asset are renegotiated or otherwise
the purchase of a financial asset at a deep modified between initial recognition and maturity
discount that reflects the incurred credit losses. of the financial asset. A modification affects the
amount and/ or timing of the contractual cash flows
A loan is considered credit-impaired when a concession
either immediately or at a future date. In addition, the
is granted to the borrower due to a deterioration in the
introduction or adjustment of existing covenants of an
borrower’s financial condition, unless there is evidence
existing loan would constitute a modification even if
that as a result of granting the concession the risk of
these new or adjusted covenants do not yet affect the
not receiving the contractual cash flows has reduced
cash flows immediately but may affect the cash flows
significantly and there are no other indicators of
depending on whether the covenant is or is not met
impairment.
(e.g., a change to the increase in the interest rate that
Definition of default arises when covenants are breached).
Critical to the determination of ECL is the definition of The Company renegotiates loans to customers in
default. The definition of default is used in measuring financial difficulty to maximize collection and minimize
the amount of ECL and in the determination of whether the risk of default. Loan forbearance is granted in cases
the loss allowance is based on 12-month or lifetime where although the borrower made all reasonable
ECL, as default is a component of the probability of efforts to pay under the original contractual terms,
default (“PD”) which affects both the measurement of there is a high risk of default or default has already
ECLs and the identification of a significant increase in happened and the borrower is expected to be able to
credit risk. meet the revised terms. The revised terms in most of
the cases include an extension of the maturity of the cash flows taking into account the Company’s
loan, changes to the timing of the cash flows of the previous experience of similar forbearance action,
loan (principal and interest repayment), reduction in as well as various behavioral indicators, including
the amount of cash flows due (principal and interest the borrower’s payment performance against the
forgiveness) and amendments to covenants. modified contractual terms. If the credit risk remains
significantly higher than what was expected at initial
When a financial asset is modified, the Company
recognition the loss allowance will continue to be
assesses whether this modification results in
measured at an amount equal to lifetime ECL. The
derecognition. In accordance with the Company’s
loss allowance on forborne loans will generally only
policy, a modification results in derecognition when it
be measured based on 12-month ECL when there
gives rise to substantially different terms. To determine
is evidence of the borrower’s improved repayment
if the modified terms are substantially different from
behavior following modification leading to a reversal
the original contractual terms the Company considers
of the previous significant increase in credit risk.
the following:
Where a modification does not lead to derecognition
Qualitative factors, such as contractual cash flows
the Company calculates the modification gain/
after modification are no longer SPPI, change in
currency or change of counterparty, the extent of loss comparing the gross carrying amount before
change in interest rates, maturity, covenants. If these and after the modification (excluding the ECL
do not clearly indicate a substantial modification, then allowance). Then the Company measures ECL
a quantitative assessment is performed to compare for the modified asset, where the expected cash
the present value of the remaining contractual cash flows arising from the modified financial asset are
flows under the original terms with the contractual included in calculating the expected cash shortfalls
cash flows under the revised terms, both amounts from the original asset.
discounted at the original effective interest. Derecognition of financial assets
In the case where the financial asset is derecognized, The Company derecognizes a financial asset only
the loss allowance for ECL is remeasured at the date when the contractual rights to the asset’s cash flows
of derecognition to determine the net carrying amount expire (including expiry arising from a modification
of the asset at that date. The difference between this with substantially different terms), or when the
revised carrying amount and the fair value of the new financial asset and substantially all the risks and
financial asset with the new terms will lead to a gain rewards of ownership of the asset are transferred
or loss on derecognition. The new financial asset will to another entity. If the Company neither transfers
have a loss allowance measured based on 12-month nor retains substantially all the risks and rewards of
ECL except in the rare occasions where the new loan ownership and continues to control the transferred
is considered to be originated-credit impaired. This asset, the Company recognizes its retained interest
applies only in the case where the fair value of the in the asset and an associated liability for amounts it
new loan is recognized at a significant discount to may have to pay. If the Company retains substantially
its revised par amount because there remains a high all the risks and rewards of ownership of a transferred
risk of default which has not been reduced by the financial asset, the Company continues to recognize
modification. The Company monitors credit risk of the financial asset and also recognizes a collateralized
modified financial assets by evaluating qualitative and borrowing for the proceeds received.
quantitative information, such as if the borrower is in
past due status under the new terms. On derecognition of a financial asset in its entirety, the
difference between the asset’s carrying amount and
When the contractual terms of a financial asset are
the sum of the consideration received and receivable
modified and the modification does not result in
and the cumulative gain/loss that had been recognized
derecognition, the Company determines if the financial
in OCI and accumulated in equity is recognized in the
asset’s credit risk has increased significantly since
Statement of Profit and Loss, with the exception of
initial recognition.
equity investment designated as measured at FVTOCI,
For financial assets modified, where modification where the cumulative gain/loss previously recognized
did not result in derecognition, the estimate of PD in OCI is not subsequently reclassified to the Statement
reflects the Company’s ability to collect the modified of Profit and Loss.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
or sources of income that could generate sufficient convertible notes are allocated to the liability and
cash flows to repay the amounts subject to the write- equity components in proportion to the allocation of
off. A write-off constitutes a derecognition event. the gross proceeds. Transaction costs relating to the
The Company may apply enforcement activities to equity component are recognized directly in equity.
financial assets written off. Recoveries resulting from Transaction costs relating to the liability component
the Company’s enforcement activities will result in are included in the carrying amount of the liability
impairment gains. component and are amortized over the life of the
convertible notes using the effective interest rate
Financial Statements
Financial liabilities and equity Instruments method.
Debt and equity instruments that are issued by the Financial liabilities
Company are classified as either financial liabilities
or as equity in accordance with the substance of the All financial liabilities are subsequently measured
contractual arrangement. at amortized cost using the effective interest rate
method.
Equity instruments
Financial liabilities that are not held-for-trading and
An equity instrument is any contract that evidences are not designated as at FVTPL are measured at
a residual interest in the assets of an entity after amortized cost. The carrying amounts of financial
deducting all of its liabilities. Equity instruments liabilities that are subsequently measured at amortized
issued by the Company are recognized at the proceeds cost are determined based on the effective interest
received, net of direct issue costs. rate method.
Compound instruments The effective interest rate method is a method of
The component parts of compound instruments calculating the amortized cost of a financial liability
(e.g., convertible notes) issued by the Company are and of allocating interest expense over the relevant
classified separately as financial liabilities and equity period. The effective interest rate is the rate that exactly
in accordance with the substance of the contractual discounts estimated future cash payments (including
all fees paid or received that form an integral part of
arrangements and the definitions of a financial liability
the effective interest rate, transaction costs and other
and an equity instrument. A conversion option that
premiums or discounts) through the expected life of
will be settled by the exchange of a fixed amount of
the financial liability, or (where appropriate) a shorter
cash or another financial asset for a fixed number of
period, to the amortized cost of a financial liability.
the Company’s own equity instruments is an equity
instrument. Derecognition of financial liabilities
At the date of issue, the fair value of the liability The Company derecognizes financial liabilities
component is estimated using the prevailing market when, and only when, the Company’s obligations are
interest rate for similar non-convertible instruments. discharged, cancelled or have expired. The difference
between the carrying amount of the financial liability
A conversion option classified as equity is determined derecognized and the consideration paid and payable
by deducting the amount of the liability component is recognized in the Statement of Profit and Loss.
from the fair value of the compound instrument as a
whole. This is recognized and included in equity, net Offsetting of financial instruments
of income tax effects, and is not subsequently re- Financial assets and financial liabilities are offset
measured. In addition, the conversion option classified and the net amount is reported in the Balance Sheet
as equity will remain in equity until the conversion option only if there is an enforceable legal right to offset the
is exercised, in which case, the balance recognized in recognized amounts with an intention to settle on a net
equity will be transferred to other component of equity. basis or to realize the assets and settle the liabilities
Where the conversion option remains unexercised at simultaneously
(n) Goods and service tax input credit a reliable estimate can be made of the amount of
Goods and service tax input credit is accounted for in the obligation
the books in the period in which the supply of goods The amount recognized as a provision is the best
or service received is accounted and when there is no estimate of the consideration required to settle the
uncertainty in availing/ utilizing the credits.
present obligation at the end of the reporting period,
(o) Borrowing costs taking into account the risks and uncertainties
Borrowing costs include interest expense calculated surrounding the obligation. Provisions (excluding
using the EIR method. retirement benefits) are not discounted to their present
value and are determined based on the best estimate
(p) Foreign currencies
required to settle the obligation at the Balance Sheet
In preparing the financial statements, transactions date. These are reviewed at each Balance Sheet date
in currencies other than the entity’s functional and adjusted to reflect the current best estimates.
currency (foreign currencies) are recognized at the
rates of exchange prevailing at the dates of the Contingent liability is disclosed in case of:
transactions. Foreign exchange gains and losses a present obligation arising from past events, when
resulting from the settlement of such transactions
it is not probable that an outflow of resources will
and from the translation of monetary assets and
be required to settle the obligation; and
liabilities denominated in foreign currencies at year
end exchange rates are generally recognized in the a present obligation arising from past events,
Statement of Profit and Loss. when no reliable estimate is possible.
Non-monetary items carried at fair value that are Contingent liabilities are disclosed in the Notes.
denominated in foreign currencies are translated at Contingent assets are neither recognized nor disclosed
the rates prevailing at the date when the fair value was in the financial statements.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(s) Statement of Cash Flows or periods during which the hedged forecast cash
Statement of Cash Flows is prepared segregating the flows affect profit or loss or the hedged item affects
cash flows into operating, investing and financing profit or loss.
activities. Cash flow from operating activities is If the forecast transaction is no longer expected to
reported using indirect method adjusting the net profit occur, the hedge no longer meets the criteria for hedge
for the effects of: accounting, the hedging instrument expires or is sold,
Statutory Reports
terminated or exercised, or the designation is revoked,
changes during the period in operating
then hedge accounting is discontinued prospectively.
receivables and payables transactions of a non-
If the forecast transaction is no longer expected to
cash nature;
occur, then the amount accumulated in equity is
non-cash items such as depreciation, provisions, reclassified to profit or loss.
deferred taxes and unrealised foreign currency
(u) Leases
gains and losses.
The Company assesses whether a contract contains
Financial Statements
all other items for which the cash effects are a lease, at the inception of the contract. A contract is,
investing or financing cash flows. or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of
Cash and cash equivalents (including bank balances)
time in exchange for consideration. To assess whether
shown in the Statement of Cash Flows exclude items
a contract conveys the right to control the use of an
which are not available for general use as on the date
identified asset, the Company considers whether (i)
of balance sheet.
the contract involves the use of identified asset; (ii)
(t) Derivative financial instruments and hedging the Company has substantially all of the economic
The Company holds derivative financial instruments benefits from the use of the asset through the period
to hedge its foreign currency and interest rate risk of lease and (iii) the Company has right to direct the
exposures relating to foreign currency borrowings. use of the asset.
Embedded derivatives are separated from the host As a lessee
contract and accounted for separately if certain
The Company recognizes a right-of-use asset and a
criteria are met.
lease liability at the lease commencement date. The
The Company designates only the change in fair value right-of-use asset is initially measured at cost, which
of the spot element of the forward exchange contract comprises the initial amount of the lease liability
as the hedging instrument in cash flow hedging adjusted for any lease payments made at or before
relationships. The effective portion of changes in fair the commencement date, plus any initial direct costs
value of hedging instruments is accumulated in a cash incurred and an estimate of costs to dismantle and
flow hedge reserve as a separate component of equity. remove the underlying asset or to restore the site on
which it is located, less any lease incentives received.
The forward cost are separately accounted for as a cost
of hedging and are recognized in OCI and accumulated Certain lease arrangements include the option to
in a cost of hedging reserve as a separate component extend or terminate the lease before the end of the
within equity. lease term. The right-of-use assets and lease liabilities
include these options when it is reasonably certain
Cash flow hedges
that the option will be exercised.
When a derivative is designated as a cash flow
The right-of-use asset is subsequently depreciated
hedging instrument, the effective portion of changes in
using the straight-line method from the
the fair value of the derivative is recognized in OCI and
commencement date to the earlier of the end of the
accumulated under the heading of Cash Flow Hedge
useful life of the right-of-use asset or the end of the
Reserve. Any ineffective portion of changes in the
lease term. The estimated useful lives of right-of-use
fair value of the derivative is recognized immediately
assets are determined on the same basis as those of
in profit or loss and is included in the other Income
property, plant and equipment. In addition, the right-of-
line item.
use asset is periodically reduced by impairment losses,
The amount accumulated in equity is retained in OCI if any, and adjusted for certain re-measurements of
and reclassified to profit or loss in the same period the lease liability.
The lease liability is initially measured at the present of ownership to the lessee, the contract is classified
value of the lease payments that are not paid at the as a finance lease. All other leases are classified as
commencement date, discounted using the interest operating leases.
rate implicit in the lease or, if that rate cannot be readily
When the Company is an intermediate lessor, it
determined, the Company’s incremental borrowing
accounts for its interests in the head lease and the
rate. Generally, the Company uses its incremental
sublease separately. The sublease is classified as a
borrowing rate as the discount rate.
finance or operating lease by reference to the right of
Lease payments included in the measurement of the use asset arising from the head lease.
lease liability comprises of fixed payments, including
Critical accounting estimate and judgement
in-substance fixed payments, amounts expected
to be payable under a residual value guarantee and 1. Determination of lease term
the exercise price under a purchase option that the Ind AS 116 Leases requires lessee to determine
Company is reasonably certain to exercise, lease the lease term as the non-cancellable period
payments in an optional renewal period if the Company of a lease adjusted with any option to extend
is reasonably certain to exercise an extension option. or terminate the lease, if the use of such option
is reasonably certain. The Company makes
The lease liability is subsequently measured at
assessment on the expected lease term on lease
amortized cost using the effective interest method. It
by lease basis and thereby assesses whether it
is remeasured when there is a change in future lease
is reasonably certain that any options to extend
payments arising from a change in an index or rate,
or terminate the contract will be exercised.
if there is a change in the Company’s estimate of the
In evaluating the lease term, the Company
amount expected to be payable under a residual value
considers factors such as any significant
guarantee, or if Company changes its assessment
leasehold improvements undertaken over the
of whether it will exercise a purchase, extension or
lease term, costs relating to the termination of
termination option.
lease and the importance of the underlying to
When the lease liability is remeasured in this way, a the Company’s operations taking into account
corresponding adjustment is made to the carrying the location of the underlying asset and the
amount of the right-of-use asset or is recorded in availability of the suitable alternatives. The lease
profit or loss if the carrying amount of the right-of-use term in future periods is reassessed to ensure
asset has been reduced to zero. that the lease term reflects the current economic
Lease liability and the right of use asset have been circumstances.
separately presented in the balance sheet and lease 2. Discount rate
payments have been classified as financing activities.
The discount rate is generally based on the
The Company has elected not to recognize right- incremental borrowing rate specific to the lease
of-use assets and lease liabilities for short term being evaluated or for a portfolio of leases with
leases that have a lease term of less than or equal similar characteristics.
to 12 months with no purchase option and assets
The Company as a lessee
with low value leases. The Company recognizes the
As a lessee, the Company leases assets which
lease payments associated with these leases as
includes gold loan branches/office premises and
an expense in statement of profit and loss over the
vehicles to employees. The Company previously
lease term. The related cash flows are classified as
classified leases as operating or finance leases based
operating activities.
on its assessment of whether the lease transferred
As a lessor significantly all of the risks and rewards incidental to
Leases for which the Company is a lessor is classified ownership of the underlying asset to the Company.
as finance or operating leases. When the terms of the Under Ind AS 116, the Company recognizes right-to-
lease transfer substantially all the risks and rewards use assets and lease liabilities for these leases.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Balance with Banks
- In current accounts 34,908.53 20,210.04
- In Deposit accounts 8,170.64 106.32
- Interest accrued on above fixed deposits 3.73 0.17
Total 43,569.37 20,518.72
Financial Statements
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Balance with Banks in earmarked accounts towards unclaimed amount on NCD 136.07 116.53
and dividend
In deposit accounts (refer note 5.1) 12,324.60 15,230.05
Interest accrued on fixed deposits (refer note 5.1) 57.99 59.69
Total 12,518.66 15,406.27
(` in Millions)
Part II As at March 31, 2022 As at March 31, 2021
Notional Fair Value - Fair Value - Notional Fair Value - Fair Value -
amounts Assets Liabilities amounts Assets Liabilities
Included in above (Part I) are
derivatives held for hedging and risk
management purposes as follows:
(i) Fair value hedging - - - - - -
(ii) Cash flow hedging
- Currency derivatives 36,943.78 458.53 1,494.62 39,396.29 416.88 973.81
- Interest rate derivative 6,955.00 185.60 - 6,955.00 - 212.88
(iii) Net investment hedging - - - - - -
(iv) Undesignated derivatives - - - - - -
Forward exchange contract - - - - - -
Total 43,898.78 644.13 1,494.62 46,351.29 416.88 1,186.69
The Company is exposed to interest rate risk arising from its foreign currency borrowings. Interest on the borrowing is payable
at a floating rate linked to the Benchmark plus Margin. The Company has hedged the interest rate risk arising from the debt
with a ‘receive floating pay fixed’ interest rate swap.
The Company uses Cross Currency Swap Contracts and Forward Exchange Contracts to hedge its risks associated with
interest rate and currency risk arising from the foreign currency loans. The Company designates such contracts in a cash
flow hedging relationship by applying the hedge accounting principles as per IND AS standards. These contracts are stated
at fair value of the spot element of the forward exchange contracts at each reporting date. Changes in the fair value of
these contracts that are designated as effective hedge of future cash flows are recognised directly in the “Cash Flow Hedge
Reserve” under Other Comprehensive Income and the ineffective portion is recognised immediately in the Statement of Profit
and Loss. Hedge accounting is discontinued when the hedged instrument expires or is sold, terminated, or exercised, or no
longer qualifies for hedge accounting.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
There is an economic relationship between the hedged item and the hedging instrument as the terms of the Forward contracts/
Interest Rate Swaps match that of the foreign currency borrowings (notional amount, interest payment dates, principal
repayment date, etc.). The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk
of the Forward contracts/interest rate swaps are identical to the hedged risk components.
(` in Millions)
Particulars As at As at
Statutory Reports
March 31, 2022 March 31, 2021
Notional amount 43,898.78 46,351.29
Carrying amount 850.49 769.81
Line item in the statement of financial position Derivative financial Derivative financial
instrument instrument
Change in fair value used for measuring ineffectiveness for the year (Profit/ (Loss)) (105.75) (217.80)
(` in Millions)
Financial Statements
Impact of hedging item As at As at
March 31, 2022 March 31, 2021
Change in fair value (Profit/ (Loss)) (105.75) (217.80)
Cash flow hedge reserve (Profit/ (Loss)) (105.75) (217.80)
Cost of hedging - -
(` in Millions)
Effect of Cash flow hedge As at As at
March 31, 2022 March 31, 2021
Total hedging gain / (loss) recognized in OCI (105.75) (217.80)
Ineffectiveness recognized in profit/ (loss) - -
NOTE 7. RECEIVABLES
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
(i) Trade Receivables
Receivables considered good - Secured 1,345.00 1,564.65
Receivables considered good - Unsecured * 60.43 29.08
Receivables - credit impaired 0.03 2.95
Total (i) - Gross 1,405.46 1,596.68
Less: Impairment loss allowance (0.03) (2.95)
Total (i) - Net 1,405.43 1,593.73
(ii) Other Receivables
Receivables considered good - Unsecured 158.00 5.10
* Including receivables from Group/Subsidiaries Company (refer note 42.2)
(` in Millions)
Particulars As at March 31, 2021
Less than 6 months 1-2 years 2-3 years More than Total
6 months - 1 year 3 years
(i) Undisputed Trade receivables – considered good 1,593.55 0.05 0.03 0.08 0.02 1,593.73
(ii) Undisputed Trade Receivables – which have - - - - - -
significant increase in credit risk
(iii) Undisputed Trade Receivables – credit impaired - 0.13 0.03 2.79 - 2.95
(iv) Disputed Trade Receivables– considered good - - - - - -
(v) D isputed Trade Receivables – which have - - - - - -
significant increase in credit risk
(vi) Disputed Trade Receivables – credit impaired - - - - - -
Total 1,593.55 0.18 0.06 2.87 0.02 1,596.68
Notes:
1. No trade or other receivables are due from directors or other officer of the company either severally or jointly, with any
other person. No trade or other receivables are due from firms including limited liability partnerships, private companies
in which any director is a partner or a director or a member.
2. The Company has adopted simplified approach for impairment allowance on trade receivables. Expected credit loss
(“ECL”) has been recognized on credit impaired receivables.
3. Trade receivables are non-interest bearing.
NOTE 8. LOANS
(` in Millions)
Particulars As at March 31, 2022
Amortized cost At Fair Value Through Total
Other Comprehensive
Income *
(A)
(i) Term Loans 81,082.82 27,997.37 109,080.19
(ii) Non Convertible Debentures - for financing real estate 17,168.44 - 17,168.44
projects
(iii) Inter corporate deposit - - -
(iv) Related parties 2.02 - 2.02
(v) Others (Dues from Customers etc) 8,543.05 - 8,543.05
Total (A) - Gross 106,796.33 27,997.37 134,793.70
Less: Impairment loss allowance (including Stage 3 ECL on (5,726.46) (226.78) (5,953.24)
Principal ` 1,601.47 Million and Stage 3 Interest ` 397.62 Million)
Total (A) - Net 101,069.87 27,770.59 128,840.46
(B)
(i) Secured by tangible assets (refer note 8.1 and 8.2) 85,762.21 27,997.37 113,759.58
(ii) Secured by intangible assets - - -
(iii) Covered by Bank/ Government guarantees 1,025.16 - 1,025.16
(iv) Unsecured 20,008.96 - 20,008.96
Total (B) - Gross 106,796.33 27,997.37 134,793.70
Less: Impairment loss allowance (5,726.46) (226.78) (5,953.24)
Total (B) - Net 101,069.87 27,770.59 128,840.46
(C)
(I) Loans in India
(i) Public Sector - - -
(ii) Others 106,796.33 27,997.37 134,793.70
Total (C) (I) - Gross 106,796.33 27,997.37 134,793.70
Less: Impairment loss allowance (5,726.46) (226.78) (5,953.24)
Total (C) (I) - Net 101,069.87 27,770.59 128,840.46
(II) Loans outside India (C) (II) - - -
Total C (I) and C (II) 101,069.87 27,770.59 128,840.46
* Loans classified under Fair Value Through Other Comprehensive Income relate to those available for sale in their present
condition.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars As at March 31, 2021
Amortized cost At Fair Value Through Total
Other Comprehensive
Income *
(A)
(i) Term Loans 94,549.65 29,139.42 123,689.07
Statutory Reports
(ii) Non Convertible Debentures - for financing real estate 22,713.41 - 22,713.41
projects
(iii) Inter corporate deposit (refer note 42.2) 4,842.14 - 4,842.14
(iv) Others (Dues from Customers etc) 13,028.09 13,028.09
Total (A) - Gross 135,133.29 29,139.42 164,272.71
Less: Impairment loss allowance (including Stage 3 ECL on (8,095.05) (234.67) (8,329.72)
Principal ` 2,087.08 Million and Stage 3 Interest ` 560.88 Million)
Financial Statements
Total (A) - Net 127,038.24 28,904.75 155,942.99
(B) -
(i) Secured by tangible assets (refer note 8.1 and 8.2) 112,943.47 25,962.75 138,906.22
(ii) Secured by intangible assets - - -
(iii) Covered by Bank/ Government guarantees 1,478.08 - 1,478.08
(iv) Unsecured 20,711.74 3,176.67 23,888.41
Total (B) - Gross 135,133.29 29,139.42 164,272.71
Less: Impairment loss allowance (8,095.05) (234.67) (8,329.72)
Total (B) - Net 127,038.24 28,904.75 155,942.99
(C) -
(I) Loans in India
(i) Public Sector - - -
(ii) Others 135,133.29 29,139.42 164,272.71
Total (C) (I) - Gross 135,133.29 29,139.42 164,272.71
Less: Impairment loss allowance (8,095.05) (234.67) (8,329.72)
Total (C) (I) - Net 127,038.24 28,904.75 155,942.99
(II) Loans outside India (C) (II) - - -
Total C (I) and C (II) 127,038.24 28,904.75 155,942.99
* Loans classified under Fair Value Through Other Comprehensive Income relate to those available for sale in their present
condition.
Notes:
8.1
Secured loans are secured by way of equitable mortgage of property, pledge of shares, hypothecation of assets, company
personal guarantees, physical gold, undertaking to create security.
8.2
Secured loans include loans aggregating to ` 2,003.15 Million (P.Y ` 2,664.76 Million) in respect of which the creation of
security is under process.
8.3
The Company’s assessment of impairment loss allowance on its loans and other assets is subject to a number of
management judgements and estimates. In relation to COVID-19, judgements and assumptions included the extent and
duration of the pandemic, the impacts of actions of governments and other authorities, and the responses of businesses
and consumers in different industries, along with the associated impact on the global economy. Given the dynamic
nature of pandemic situation, the Company’s impairment loss allowance estimates are inherently uncertain due to
severity and duration of the pandemic and, as a result, actual results may differ from these estimates as on the date of
approval of these Standalone Financial Statements.
NOTE 9. INVESTMENTS
(` in Millions)
Particulars As at March 31, 2022
At Fair Value At Cost Total
through
Profit and Loss
(A)
Mutual funds 0.04 - 0.04
Alternate investment funds 9,552.17 - 9,552.17
Security receipts 4,453.91 - 4,453.91
Equity instruments:
in subsidiaries - 14,103.33 14,103.33
in others - - -
Total – Gross (A) 14,006.12 14,103.33 28,109.45
Less: Impairment loss allowance (3,620.91) - (3,620.91)
Total – Net (A) 10,385.21 14,103.33 24,488.54
(B)
(i) Investments outside India - - -
(ii) Investments in India 14,006.12 14,103.33 28,109.45
Total – Gross (B) 14,006.12 14,103.33 28,109.45
Less: Impairment loss allowance (3,620.91) - (3,620.91)
Total – Net (B) 10,385.21 14,103.33 24,488.54
(` in Millions)
Particulars As at March 31, 2021
At Fair Value At Cost Total
through
Profit and Loss
(A)
Mutual funds 118.18 - 118.18
Alternate investment funds 71.06 - 71.06
Equity instruments:
in subsidiaries - 11,853.33 11,853.33
in others - - -
Total – Gross (A) 189.24 11,853.33 12,042.57
Less: Impairment loss allowance - - -
Total – Net (A) 189.24 11,853.33 12,042.57
(B)
(i) Investments outside India - - -
(ii) Investments in India 189.24 11,853.33 12,042.57
Total – Gross (B) 189.24 11,853.33 12,042.57
Less: Impairment loss allowance - - -
Total – Net (B) 189.24 11,853.33 12,042.57
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Plan-Growth
Nippon India Mutual Fund ETF 35.20 1,000.00 0.04
Liquid Bees
Alternate investment fund 9,552.17 71.06
Phi Capital Growth Fund-I 306.78 100,000 100.56 298.40 100,000 43.08
Indiareit Apartment Fund - Class B 20.01 100,000 2.36 22.63 100,000 3.58
IIFL Income Opportunities Fund- - - - 932,923.14 3.9963 2.03
Financial Statements
Special Situation - Class B
IIFL Income Opportunities Fund- - - - 10,278,484.68 3.9963 22.37
Special Situation - Class S
IIFL One Value Fund Series B - 474,523,611.28 10.00 4,895.03 - - -
Class B
IIFL One Value Fund Series B - 415,940,426.88 10.00 4,459.38 - - -
Class C
Faering Capital Growth Fund III 15,500.00 1,000.00 15.01 - - -
IIFL Securities Capital Enhancer 3,999,800.01 10.00 40.29 - - -
Fund - Class S
IIFL Securities Capital Enhancer 1,999.90 10.03 0.02 - - -
Fund - Class E
IIFL One Opportunities FOF - 3,065,261.70 10.00 39.52 - - -
Series 1
Security Receipts 4,453.91 -
ACRE - 110 - Trust 3,825,000.00 951.75 3,620.91 - - -
Arcil-SBPS-049-I- Trust 833,000.00 1,000 833.00
Equity instruments 14,103.33 11,853.33
(in subsidiaries)
IIFL Home Finance Limited 20,968,181.00 10.00 8,254.77 20,968,181.00 10.00 8,254.77
IIFL Samasta Finance Limited 370,740,413.00 10.00 5,848.56 237,683,022.00 10.00 3,598.56
(formerly Samasta Microfinance
Limited)
Total Gross 28,109.45 12,042.57
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
(Unsecured, considered good)
Security deposits 318.51 259.45
Deposit with Exchange 2.50 2.80
Interest strip asset on assignment 4,558.08 1,423.99
Staff advances 0.48 0.47
Insurance receivable 446.57 472.77
Less: Provision on insurance receivable (refer note 10.1) (220.09) (129.26)
Other receivables 23.97 2.75
Other advance 55.73 46.70
(Unsecured, considered doubtful)
Security deposits 3.20 2.81
Less : Provision on security deposits (refer note 10.2) (3.20) (2.81)
Total 5,185.75 2,079.67
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Deferred tax assets
Property, plant and equipment 224.20 27.64 - 251.84
Provisions, allowances for doubtful receivables / loans 1,996.93 (564.31) - 1,432.62
Compensated absences and retirement benefits 32.39 (1.77) (2.42) 28.20
Deduction for drovision for doubtful debts - 55.74 - 55.74
Income amortization (net) (329.37) (795.98) - (1,125.35)
Expenses deductible in future years 6.07 (1.23) - 4.84
Financial Statements
Carry-forward losses on investments - (151.74) - (151.74)
MTM on investment and derivative financial instruments (5.38) 908.93 - 903.55
Cash flow hedge reserve 73.24 - 35.57 108.81
Leases- Ind AS 116 65.52 10.93 - 76.45
Total 2,063.60 (511.79) 33.15 1,584.97
(` in Millions)
Particulars Opening Recognized Recognized Closing
balance in profit and in/ balance
(as on loss account reclassified (as on March
April 1, 2020) * from OCI 31, 2021)
Deferred tax assets
Property, plant and equipment 209.38 14.82 - 224.20
Provisions, allowances for doubtful receivables / loans 1,745.21 251.72 - 1,996.93
Compensated absences and retirement benefits 34.36 0.29 (2.26) 32.39
Income amortization (net) (149.86) (179.51) - (329.37)
Expenses deductible in future years 4.84 1.23 - 6.07
Carry-forward losses on investments 121.19 (121.19) - -
MTM on investment and derivative financial instruments 31.06 (36.44) - (5.38)
Cash flow hedge reserve - - 73.24 73.24
Leases- Ind AS 116 31.90 33.62 - 65.52
Total 2,028.08 (35.46) 70.98 2,063.60
* Includes prior period amount of ` 202.94 Million.
(` in Millions)
Particulars Property (Flats)* Land Total
Gross carrying value
As at April 1, 2020 1,555.53 1,058.74 2,614.27
Additions during the year - 63.08 63.08
Deductions/ adjustments during the year - - -
As at March 31, 2021 1,555.53 1,121.82 2,677.35
Less : Impairment loss allowance - (37.33) (37.33)
Net carrying value as at March 31, 2021 1,555.53 1,084.49 2,640.02
Fair value as on March 31, 2021 1,710.10 1,084.53 2,794.63
(Fair value hierarchy : Level 3)
*Distress value of above flats is ` 1,596.10 Million.
Note 12.1: Management had acquired possession of these properties in satisfaction of the debts and intends to dispose them
in due course, subject to conducive market conditions. These properties have been valued taking into consideration various
factors such as location, facilities & amenities, quality of construction, percentage of completion of construction (as for some
properties the construction is currently on hold), residual life of building, business potential, supply & demand, local nearby
enquiry, market feedback of investigation and ready recknor published by government. These valuations has been performed
by an independent registered valuer registered under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
The fair values are based on market values, being the estimated amount for which a property could be exchanged in an arm’s
length transaction. These properties are not depreciated as they have not been put to use.
(` in Millions)
Particulars Furniture Vehicles Office Buildings Plant & Computer Total
And Fixtures Equipment Equipment
Cost as at April 1, 2020 660.02 11.50 102.24 359.31 195.93 296.07 1,625.07
Additions during the year 169.12 - 11.00 - 45.77 28.80 254.69
Deductions/ adjustments (21.01) - (37.54) - 32.96 (40.76) (66.35)
As at March 31, 2021 808.13 11.50 75.70 359.31 274.66 284.11 1,813.41
Depreciation
As at April 1, 2020 244.52 7.38 50.64 63.45 84.43 162.65 613.07
Depreciation for the year 127.76 1.98 9.74 21.15 49.62 86.84 297.09
Deductions/ adjustments (7.20) - (14.27) - 1.59 (32.31) (52.19)
Up to March 31, 2021 365.08 9.36 46.11 84.60 135.64 217.18 857.97
Net block as at March 31, 2021 443.05 2.14 29.59 274.71 139.02 66.93 955.44
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Projects in progress 51.40 5.04 - - 56.44
Projects temporarily suspended - - - - -
(` in Millions)
Particulars As at March 31, 2021 Total
Less than 1-2 years 2-3 More than
1 year years 3 years
Financial Statements
Projects in progress 62.41 2.26 0.39 0.54 65.60
Projects temporarily suspended - - - - -
No projects were delayed for completion or had exceeded its cost compared to its original plan.
As a Lessee
a) Changes in the carrying value of right to use assets:
(` in Millions)
Particulars Premises Vehicle Total
Opening Balance as at April 1, 2021 2,789.50 4.44 2,793.94
Addition during the year 861.22 - 861.22
Deduction/Adjustment (60.26) - (60.26)
Depreciation during the year (620.32) (2.04) (622.36)
Closing Balance as at March 31, 2022 2,970.14 2.40 2,972.54
(` in Millions)
Particulars Premises Vehicle Total
Opening Balance as at April 1, 2020 2,478.39 8.17 2,486.56
Addition during the year 987.79 0.56 988.35
Deduction/Adjustment (88.17) (1.12) (89.29)
Depreciation during the year (588.51) (3.17) (591.68)
Closing Balance as at March 31, 2021 2,789.50 4.44 2,793.94
b) Break up value of the Current and Non - Current Finance Lease Obligations
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Current lease liabilities 680.49 480.76
Non-current lease liabilities 2,595.75 2,573.46
Total 3,276.24 3,054.22
(` in Millions)
Particulars Premises Vehicle Total
Balance as at April 1, 2020 2,604.81 8.50 2,613.31
Addition during the year 987.79 0.56 988.35
Deduction/Adjustment (92.38) (1.16) (93.54)
Finance cost accrued during the period 245.27 0.60 245.87
Payment of lease liabilities (696.10) (3.67) (699.77)
Closing Balance as at March 31, 2021 3,049.39 4.83 3,054.22
d) Details regarding the contractual maturities of finance lease obligation on an undiscounted basis:
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Less than one year 917.19 712.31
One to two years 816.55 697.95
Two to five years 1,603.41 1,548.28
More than five years 844.40 1,121.78
Total 4,181.55 4,080.32
e) Rental expense recorded for short-term leases was ` 24.64 Million (P.Y ` 7.84 Million)
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Total cash outflow for leases 861.32 699.77
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars Software
Cost or valuation as at April 1, 2021 62.08
Additions during the year 17.69
Deductions /Adjustments -
Statutory Reports
As at March 31, 2022 79.77
Amortization
As at April 1, 2021 52.93
Amortization during the year 7.68
Up to March 31, 2022 60.61
Net block as at March 31, 2022 19.16
(` in Millions)
Financial Statements
Particulars Software
Cost or valuation as at April 1, 2020 39.24
Additions during the year 22.84
Deductions /Adjustments -
As at March 31, 2021 62.08
Amortizations
As at April 1, 2020 32.85
Amortization during the year 20.08
Up to March 31, 2021 52.93
Net block as at March 31, 2021 9.15
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Unsecured, considered good
Prepaid expenses 477.50 109.73
Receivable from securitization trust 2,364.98 2,312.07
Advances for operational expenses* 410.74 501.04
Deposits with government 19.71 18.92
GST input 51.99 159.43
Advance towards gratuity (refer note 33.2) 10.75 2.35
Other assets 1.48 1.36
Total 3,337.15 3,104.90
* Includes foreign currency payments amounting to ` 90.70 Million (P.Y ` 90.70 Million)
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Assets held for sale 78.44 -
Assets held for sale is towards a Company owned property which it intends to sell in the near future.
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
(I) Trade payables
(i) Total outstanding dues of micro enterprises and small enterprises - -
(Refer note 19.1)
(ii) Total outstanding dues of creditors other than micro enterprises and
small enterprises
Outstanding dues of creditors 166.13 115.28
Accrued salaries and benefits 23.20 22.55
Provision for expenses 613.90 518.79
Other trade payables * 58.44 7.60
Total 861.67 664.22
(II) Other payables
(i) Total outstanding dues of micro enterprises and small enterprises - -
(Refer note 19.1)
(ii) Total outstanding dues of creditors other than micro enterprises and 99.06 -
small enterprises
Total 99.06 -
* Including payable to Group /Subsidiaries Company (refer note 42.2)
Note 19.1 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006
The following disclosure is made as per the requirement under The Micro, Small and Medium Enterprises Development Act,
2016 (“MSMED Act”) on the basis of confirmations sought from suppliers on registration with the specified authorities under
MSMED Act:
(` in Millions)
Particulars 2021-2022 2020-2021
(a) Principal amount remaining unpaid to any supplier at the year end - -
(b) Interest due thereon remaining unpaid to any supplier at the year end - -
(c) Amount of interest paid and payments made to the supplier beyond the - -
appointed day during the year
(d) Amount of interest due and payable for the period of delay in making - -
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the Act
(e) Amount of interest accrued and remaining unpaid at the year end - -
(f) Amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues above are actually
paid to the small enterprise, for the purpose of disallowance of a deductible
expenditure under section 23 of the MSMED Act
The aforementioned is based on the responses received by the Company to its inquiries with suppliers with regard to
applicability under the MSMED Act. This has been relied upon by the auditors.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars Outstanding for following periods from due Total
As at March 31, 2021 date of payment
Less than 1-2 years 2-3 More than
1 year years 3 years
(i) MSME - - - - -
(ii) Others 651.14 5.11 0.29 7.68 664.22
Statutory Reports
(iii) Disputed dues – MSME - - - - -
(iv) Disputed dues - Others - - - - -
Total 651.14 5.11 0.29 7.68 664.22
NOTE 20. DEBT SECURITIES
(` in Millions)
Particulars At Amortized Cost
As at As at
March 31, 2022 March 31, 2021
Financial Statements
(i) Non Convertible Debentures* (refer note 20.1) - Secured 49,483.57 51,809.28
Less : Unamortized debenture issue expenses (266.61) (266.23)
Less : Unexpired discount on NCD (15.70) (36.29)
(ii) Interest accrued but not due 1,851.57 1,939.97
Total (A) 51,052.83 53,446.73
Debt securities in India 25,845.54 24,698.91
Debt securities outside India 25,207.29 28,747.82
Total (B) 51,052.83 53,446.73
* The Non Convertible Debentures are secured by way of first pari-passu charge on immovable property, current assets, book
debts, loans and advances including receivables other than those specifically charged.
(` in Millions)
Description of security Coupon/ As at As at
Yield March 31, 2022 March 31, 2021
Secured Rated Listed Redeemable Non-Convertible Debentures. 9.85% 107.69 113.93
Series III. Date Of Maturity 06/12/2022
9.85% Secured Rated Listed Redeemable Non-Convertible Debentures. 9.85% 644.42 646.96
Series IV. Date Of Maturity 06/12/2022
9.85% Secured Rated Listed Redeemable Non Convertible Debenture 9.85% 50.00 50.00
Series D4. Date Of Maturity 17/01/2023
5.875% Secured Medium Term Note. Date of Maturity- 20/04/2023 * 11.03% 24,534.03 28,074.23
(P. Y
11.09%)
9.00% Secured Rated Listed Redeemable Non Convertible Debentures. 9.00% 1,000.00 1,000.00
Series D5. Date Of Maturity 08/05/2023
8.25% Secured Rated Annual Listed Redeemable Non Convertible 8.25% 3,075.30 -
Debentures. Series I. Date Of Maturity 14/10/2023
Zero Coupon Secured Rated Cummulative Listed Redeemable Non 8.25% 714.25 -
Convertible Debentures. Series II Date Of Maturity 14/10/2023
9.75% Secured Rated Listed Redeemable Non Convertible Debentures. 9.75% 1,704.24 1,729.16
Series III. Maturity Date - 07/02/2024
10.20% Secured Rated Listed Redeemable Non Convertible 10.20% 1,118.01 1,133.88
Debentures. Series IV. Maturity Date - 07/02/2024
Gsec Linked Secured Rated Listed Redeemable Non Convertible 8.00% 1,000.00 -
Debentures. Series D14. Date Of Maturity 07/09/2024
8.50% Secured Rated Annual Listed Redeemable Non Convertible 8.50% 940.80 -
Debentures. Series III. Date Of Maturity 14/10/2024
Zero Coupon Secured Ratedcummulative Listed Redeemable Non 8.50% 573.10 -
Convertible Debentures. Series IV. Date Of Maturity 14/10/2024
8.42% Secured Rated Monthly Listed Redeemable Senior Non 8.42% 1,472.51 -
Convertible Debentures. Series V. Date Of Maturity 14/10/2026
8.75% Secured Rated Annually Listed Redeemable Senior Non 8.75% 1,360.83 -
Convertible Debentures. Series VI. Date Of Maturity 14/10/2026
Zero Coupon Secured Rated Cummulative Listed Redeemable Non 8.75% 293.10 -
Convertible Debentures. Series VII. Date Of Maturity 14/10/2026
8.33% Secured Rated Listed Redeemable Non Convertible Debentures. 8.33% 5,000.00 -
Series D13. Date Of Maturity 30/06/2031
8.50% Secured Rated Listed Non Convertible Debentures. Series D15. 8.50% 100.00 -
Date Of Maturity 21/01/2032
8.60% Secured Rated Listed Redeemable Non Convertible Debentures. 8.60% 600.00 -
Series D16 Option A. Date Of Maturity 24/03/2032
8.00% Secured Redeemable Non-Convertible Debentures. Series C6. 8.00% - 2,500.00
Date of Maturity 29/04/2021
Zero Coupon Secured Redeemable Non-Convertible Debentures. 8.75% - 100.00
Series C8. Date of Maturity 30/04/2021
Zero Coupon Secured Listed Rated Redeemable Non Convertible 9.25% - 260.00
Debentures. Series C10. Date of Maturity 25/05/2021
Zero Coupon Secured Non Convertible Debentures - Nifty 50 Index 9.50% - 1,070.12
MLD 2021. D3 Option I. Date of Maturity- 27/09/2021
10.20% Secured Redeemable Non Convertible Debentures. Date of 10.20% - 2,875.00
Maturity 03/11/2021
8.00% 10 Year G-SEC Rate Linked Secured Rated Listed Redeemable 8.00% - 751.80
Non Convertible Debenture Series D8. Date of maturity 01/12/2021
8.00% Secured Rated Listed Redeemable Non Convertible Debenture 8.00% - 2,000.00
Series D6. Date of Maturity 07/01/2022
8.00% Secured Rated Listed Redeemable Non Convertible Debenture 8.00% - 1,000.00
Series D7. Date of maturity 18/02/2022
7.70% Secured Rated Listed Redeemable Senior Non Convertible 7.70% - 1,000.00
Debenture Series D12. Date of maturity 24/03/2022
8.00% Secured Rated Listed Redeemable Senior Non Convertible 8.00% - 2,250.00
Debenture Series D9. Date of maturity 30/03/2022
Total 49,483.57 51,809.28
* Includes hedging cost
210 Annual Report 2021-22
Standalone
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
(a) Term loan (refer note 21.1)
(i) From banks and financial institution (refer note (a) and (b)) 67,313.64 40,542.59
(ii) From others (refer note c) 7,579.25 7,311.00
Less : Prepaid expenses (290.14) (255.64)
(b) Other loans (refer note 21.2)
(i) Cash credit / overdraft (refer note a) 3,200.94 5,433.07
(ii) Securitization liability 19,892.16 39,138.16
Less : Prepaid expenses (117.92) (104.09)
Financial Statements
(c) Interest accrued but not due 132.75 114.74
Total (A) 97,710.68 92,179.83
(B)
Borrowings in India 86,326.43 84,872.52
Borrowings outside India (refer note b) 11,384.25 7,307.31
Total (B) 97,710.68 92,179.83
Notes:
(a) These loans are secured by way of a first pari-passu charge over the current assets in the form of receivables, book
debts, bills, outstanding monies receivables including future movable assets, other than those specifically charged.
(b) D
uring the year ended March 31, 2022, the Company had borrowed ` 3,792.50 Million (equivalent to US$ 50 Million) under the
External Commercial Borrowings towards refinancing of existing outstanding Medium Term Notes. These are secured by way
of all rights, titles, interest, benefits, claims and demands, whatsoever of the Company in, to and in respect of, all present and
future, receivables/assets, including Company’s accounts, operating cash flows, current assets, book debts, stock in trade,
loans and advances and receivables, both present and future to the extent of complying with the Security Coverage Ratio.
(c) These loans are secured by way of first paripassu charge by way of hypothecation on the standard receivables of the company
with asset cover of 1.20 times of the sanction amount.
Fixed: 18,200.00 -
3 - 5 Years 8.45% - 9.75% 3,577.90 - -
1 - 3 Years 8.00% - 9.75% 9,818.80 - -
Less than 1 year 8.00% - 9.75% 4,803.30 - -
(ii) From Others
Floating:** 7,579.25 7,311.00
3 - 5 Years - - 8.62% 7,311.00
1 - 3 Years 8.62% 7,579.25 - -
Total 74,892.89 47,853.59
* The rate of interest for the above term loans from banks is linked to marginal cost of funds based lending rate / treasury bills
plus applicable spread. The above categorization of loans has been based on the interest rates prevalent as on the respective
reporting dates.
** The rate of interest for the above loan is linked to the benchmark plus appropriate spread.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
12.20% Unsecured Redeemable Subordinated Taxable Non
12.20% 230.00 230.00
Convertible Debentures. Date Of Maturity 04/11/2022
Financial Statements
Unsecured Rated Listed Redeemable Non-Convertible Debenture.
10.50% 57.83 57.83
Series VI. Date Of Maturity 06/06/2025
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
Financial Statements
Nirmal Bhanwarlal Jain 47,719,154 12.57% 47,719,154 12.60%
HWIC Asia Fund Class A shares - 0.00% 28,362,530 7.49%
Smallcap World Fund, Inc 19,671,937 5.18% - 0.00%
Parajia Bharat Himatlal 20,388,602 5.37% 19,695,000 5.20%
(vi) During the period of five years immediately preceding the Balance Sheet date, the Company has not issued any shares
without payment being received in cash or by way of bonus shares or shares bought back except for 58,654,556 equity
shares alloted on account of merger during the year ended March 31, 2020.
(vii) Shares reserved for issue under options and contracts/ commitments for sale of shares/ disinvestments, including
the terms and amount: Refer note 40 for details of shares reserved for issue under Employee Stock Option Plan of the
Company.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
amortized through at fair at at fair at fair
cost profit or value amortized value value
loss through cost through through
OCI profit or OCI
loss
Interest on loans 29,210.72 - 4,734.47 33,945.19 24,249.29 - 5,507.96 29,757.25
Interest on investments - 696.17 - 696.17 - 157.50 - 157.50
Interest on deposits with 601.82 - - 601.82 530.90 - - 530.90
banks
Financial Statements
Interest on inter corporate 394.93 - - 394.93 258.26 - - 258.26
deposit
Total 30,207.47 696.17 4,734.47 35,638.11 25,038.45 157.50 5,507.96 30,703.91
NOTE 31. NET (GAIN)/ LOSS ON DERECOGNITION OF FINANCIAL INSTRUMENTS UNDER AMORTIZED COST CATEGORY
(` in Millions)
Particulars FY 2021-22 FY 2020-21
(i) Net gain on derecognition of financial instruments under amortized cost
category
Interest strip on assignment of loans (3,134.09) (651.15)
(ii) Net loss on derecognition of financial instruments under amortized cost
category
Bad debts written off (net) 7,238.32 5,686.45
Total 4,104.23 5,035.30
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Reporting standard Indian Accounting Indian Accounting
Standard 19 Standard 19
(Ind AS 19) (Ind AS 19)
Funding status Funded Funded
Starting period 1-Apr-21 1-Apr-20
Date of reporting 31-Mar-22 31-Mar-21
Period of reporting 12 Months 12 Months
Financial Statements
Assumptions (current year)
Expected return on plan assets 6.96% 6.44%
Rate of discounting 6.96% 6.44%
Rate of salary increase 6.00% 6.00%
Rate of employee turnover For service 4 years For service 4 years
and below 28.00% and below 28% p.a. &
p.a. thereafter 2% p.a.
For service 5 years
and above 2.00%
p.a.
Mortality rate during employment Indian Assured Lives Indian Assured Lives
Mortality Mortality (2006-08)
2012-14 (Urban)
Mortality rate after employment N.A. N.A.
(` in Millions)
Table showing change in the present value of projected benefit obligation FY 2021-22 FY 2020-21
Present value of benefit obligation at the beginning of the year 157.35 145.72
Interest cost 10.13 8.80
Current service cost 33.08 33.48
Past service cost - -
Liability transferred in/ acquisitions 2.04 5.32
(Liability transferred out/ divestments) (2.44) (9.55)
(Gains)/ losses on curtailment - -
(Liabilities extinguished on settlement) - -
(Benefit paid directly by the employer) (0.03) (8.21)
(Benefit paid from the fund) (23.13) (10.23)
The effect of changes in foreign exchange rates - -
Actuarial (gains)/losses on obligations - due to change in demographic (0.08) (2.15)
assumptions
Actuarial (gains)/losses on obligations - due to change in financial assumptions (14.61) (10.11)
Actuarial (gains)/losses on obligations - due to experience 4.75 4.28
Present value of benefit obligation at the end of the year 167.06 157.35
(` in Millions)
Table showing change in the Fair Value of Plan Assets FY 2021-22 FY 2020-21
Fair value of plan assets at the beginning of the year 159.70 121.01
Interest income 10.29 7.31
Contributions by the employer 31.29 40.60
Expected contributions by the employees - -
Assets transferred in/acquisitions - -
(Assets transferred out/divestments) - -
(Benefit paid from the fund) (23.13) (10.23)
(Assets distributed on settlements) - -
Effects of asset ceiling - -
The effect of changes in foreign exchange rates - -
Return on plan assets, excluding interest income (0.34) 1.01
Fair value of plan assets at the end of the year 177.81 159.70
(` in Millions)
Amount recognized in the Balance Sheet FY 2021-22 FY 2020-21
(Present value of benefit obligation at the end of the year) (167.06) (157.35)
Fair value of plan assets at the end of the year 177.81 159.70
Funded status (surplus/(deficit)) 10.75 2.35
Net (liability)/asset recognized in the Balance Sheet 10.75 2.35
(` in Millions)
Net interest cost for current year FY 2021-22 FY 2020-21
Present value of benefit obligation at the beginning of the year 157.35 145.72
(Fair value of plan assets at the beginning of the year) (159.70) (121.01)
Net liability/(asset) at the beginning (2.35) 24.71
Interest cost 10.13 8.80
(Interest income) (10.29) (7.31)
Net interest cost for current year (0.16) 1.49
(` in Millions)
Expenses recognized in the Statement of Profit or Loss for current year FY 2021-22 FY 2020-21
Current service cost 33.08 33.48
Net interest cost (0.16) 1.49
Past service cost - -
(Expected contributions by the employees) - -
(Gains)/losses on curtailments and settlements - -
Net effect of changes in foreign exchange rates - -
Expenses recognized 32.92 34.97
(` in Millions)
Expenses recognized in OCI for current year FY 2021-22 FY 2020-21
Actuarial (gains)/losses on obligation for the year (9.94) (7.97)
Return on plan assets, excluding interest income 0.34 (1.02)
Change in asset ceiling - -
Net (income)/expense for the year recognized in OCI (9.60) (8.99)
(` in Millions)
Balance Sheet reconciliation FY 2021-22 FY 2020-21
Opening net liability (2.35) 24.71
Expenses recognized in Statement of Profit or Loss 32.93 34.97
Expenses recognized in OCI (9.61) (8.99)
Net liability/(asset) transfer in 2.04 5.32
Net (liability)/asset transfer out (2.45) (9.55)
(Benefit paid directly by the employer) (0.03) (8.21)
(Employer's contribution) (31.29) (40.60)
Net liability/(asset) recognized in the Balance Sheet (10.76) (2.35)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Category of Assets FY 2021-22 FY 2020-21
Government of India Assets - -
State Government Securities - -
Special Deposits Scheme - -
Debt Instruments - -
Corporate Bonds - -
Statutory Reports
Cash And Cash Equivalents - -
Insurance fund 177.81 159.71
Asset-Backed Securities - -
Structured Debt - -
Other - -
Total 177.81 159.71
Information for major category of plan assets of gratuity fund is not available with the Company and hence not disclosed
Financial Statements
(` in Millions)
(` in Millions)
Expenses recognized in the Statement of Profit or Loss for next year FY 2021-22 FY 2020-21
Current service cost 39.70 33.08
Net interest cost (0.75) (0.15)
(Expected contributions by the employees) - -
Expenses recognized 38.95 32.93
(` in Millions)
Maturity analysis of the benefit payments: From the Fund FY 2021-22 FY 2020-21
Projected benefits payable in future years from the date of reporting
1st following year 3.54 11.59
2nd following year 3.83 3.08
3rd following year 4.57 3.62
4th following year 4.84 4.18
5th following year 5.20 4.38
Sum of years 6 To 10 38.45 31.70
Sum of years 11 and above 569.46 463.37
(` in Millions)
Sensitivity analysis FY 2021-22 FY 2020-21
Projected benefit obligation on current assumptions 167.07 157.36
Delta effect of +1% change in rate of discounting (23.91) (21.75)
Delta effect of -1% change in rate of discounting 29.65 27.06
Delta effect of +1% change in rate of salary increase 28.25 25.38
Delta effect of -1% change in rate of salary increase (23.31) (20.90)
Delta effect of +1% change in rate of employee turnover 1.84 0.33
Delta effect of -1% change in rate of employee turnover (2.40) (0.59)
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring
at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in
calculating the projected benefit obligation as recognized in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Notes
Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported
figures of OCI are gross of taxation.
Salary escalation & attrition rate are in line with the industry practice considering promotion and demand and supply of the
employees.
Maturity analysis of benefit payments is undiscounted cashflows considering future salary, attrition & death in respective year
for members as mentioned above.
Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation. Value of asset is
considered as fair value of plan asset for the period of reporting.
Qualitative disclosures
Characteristics of defined benefit plan
The Company has a defined benefit gratuity plan in India (funded). The company’s defined benefit gratuity plan is a final salary
plan for employees, which requires contributions to be made to a separately administered fund.
The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the
administration of the plan assets and for the definition of the investment strategy.
Risks associated with defined benefit plan
Gratuity is a defined benefit plan and company is exposed to the following risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability
requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on
the duration of asset.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members.
As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined
by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this
rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government
securities, and other debt instruments.
Asset liability matching risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of
Rule 103 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not
have any longevity risk.
Characteristics of defined benefit plans
During the year, there were no plan amendments, curtailments and settlements.
A separate trust fund is created to manage the Gratuity plan.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Rates & taxes 12.21 1.79
Rent 24.64 7.84
Repairs & maintenance
- Computer 12.26 10.58
- Others* 128.78 65.71
Remuneration to auditors
- Audit fees 4.53 4.46
Financial Statements
- Certification / other services ** 0.51 0.44
- Out of pocket expenses 0.12 -
Software charges* 226.07 111.32
Travelling & conveyance* 136.92 53.37
Corporate social responsibility expenses (refer note 43) 82.00 47.10
Miscellaneous expenses 2.45 4.44
Insurance premium 202.29 236.23
Security expenses 909.54 792.58
Total 3,803.90 2,420.75
*Includes below expenses incurred in foreign currency on accrual basis
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Advertisement and marketing expenses - 1.39
Travelling & conveyance 0.27 -
Repairs & Maintenance: Others 0.26 -
Software charges 0.61 0.92
Legal & professional fees 13.93 1.76
** During the year the Company has paid ` 2.12 Million (P.Y ` 2.30 Million) to the auditors towards certification required
towards Public Issue of Non Convertible Debentures the same has been amortized over the tenure of the borrowings.
(` in Millions)
Reconciliation of income tax expense of the year to accounting year FY 2021-22 FY 2020-21
Profit before tax 9,673.75 4,274.95
Tax using the Company's domestic tax rate (25.17%) 2,434.70 1,075.92
Tax effect of:
Non-deductible expenses 23.51 11.85
Tax-exempt income- Others (includes deduction under section 80JJAA) (45.98) (37.44)
Tax-exempt income- Dividend (158.32) (176.65)
Income taxed at different rates (40.78) (68.67)
Adjustments for current tax for prior periods (5.69) 43.83
De-Recognition of previously recognized deductible temporary differences 11.51 0.34
Total income tax expense 2,218.95 849.18
Effective tax rate 22.94% 19.86%
Risk management is integral to Company’s strategy. The comprehensive understanding of risk management throughout
the various levels of an organization aids in driving key decisions related to risk-return balance, capital allocation and
product pricing. The Company operates under the guidance of the Board approved risk appetite statement that covers
business composition, guidance around gross stage 3 assets and net stage 3 assets, leverage, funding and liquidity, etc.
Additionally, it is also ensured that appropriate focus is on managing risk proactively by ensuring business operations are in
accordance with laid-down risk. A strong risk management team and an effective credit operations structure ensures that
risks are properly identified and timely addressed, to ensure minimal impact on the Company’s growth and performance
Risk Management Structure
The Company has established multi-level risk governance for monitoring and control of product and entity level risks.
The Board of Directors are responsible for the overall risk management approach and for approving the risk management
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
strategies and principles. The Board has constituted the Risk Management Committee (“RMC”) which is responsible for
monitoring the overall risk process within the Company. The RMC is empowered to develop an independent risk strategy
comprising of principles, frameworks, policies and limits and ensuring its effective implementation. Independent function of
Risk management is in place headed by the Chief Risk Officer (“CRO”) who reports to the Chairman with oversight of RMC of
the Board. The Risk department primarily operationalizes risk management framework approved by RMC.
The Company has a well defined risk framework constituting various lines of defence – the first line of defence, consisting of
management, is responsible for seamless integration of risk principles across all businesses. Additionally, it ensures adequate
Statutory Reports
managerial and supervisory controls to ensure compliance and highlight inadequate processes and unexpected events. The
Company has well-defined internal control measures in every process.
Independent risk and policy team constitutes second line of defence which is responsible for identification and assessment
of entity-wide risks. Post its identification, it aims to mitigate risks either through portfolio trigger and caps (Credit risk) or
through ongoing risk control and self assessment (Operational risk).
Internal Audit function is the third line of defence that independently reviews activities of the first two lines of defence and
reports to the Audit Committee of the Board.
Financial Statements
Risk Management Practices
The Company has developed the necessary competency to identify early stress signals and has also defined processes,
including corrective and remedial actions as regards people and processes, for mitigation to ensure minimum damage.
A stress testing mechanism is put in place to carry out the event based sensitivity analysis and identify the accounts under
stress due to expected market movement. In event of susceptibility to external triggers, appropriate risk mitigation would be
undertaken and thereby minimize the losses to the company.
It has initiated a detailed portfolio quality review mechanism which enables analysis of portfolio along various behavioural,
demographic and financial parameters. Additionally, through tie-ups with external bureaus, an analysis of collection
performance coupled with continuous credit assessment for various key segments is undertaken. The practices aid in
proactive course correction thereby modifying credit or sourcing mechanisms, if required. Additionally, application scorecard
has been developed enabling the Company to standardize credit underwriting and improve sourcing quality in the long run.
The Company’s policy is to measure and monitor the overall risk-bearing capacity in relation to the aggregate risk exposure
across all risk types and activities. Information pertaining to different type of risks are identified, analyzed and tested on timely
basis. The same is presented to RMC at periodic intervals.
In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such
as cross currency interest rate swaps are entered to hedge certain foreign currency risk exposures and variable interest rate
exposures.
The Company’s central Treasury department identifies, evaluates and hedges financial risks in close co-operation with the
Company’s operating units. The Board provides written principles for overall risk management, as well as policies covering
specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and
non-derivative financial instruments and investment of excess liquidity. The Company’s Treasury is responsible for managing
its assets and liabilities and the overall financial structure. It is also primarily responsible for the funding and liquidity risks of
the Company.
Note: 38A.1. Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk arises primarily from financial assets such as loans, trade receivables, investments, derivative financial instruments,
and other receivables.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
(` in Millions)
Reconciliation of loss Financial Assets where Financial assets Financial assets for Total
allowance loss allowance for which credit which credit risk has
measured at 12-month risk has increased increased significantly
ECL significantly and and credit impaired
credit not impaired
Financial Statements
Opening ECL March-21 3,545.11 599.09 1,070.30 503.66 2,087.08 560.88 6,702.49 1,663.63
New loans disbursed during 1,697.21 186.45 44.33 12.27 121.15 20.93 1,862.69 219.65
the year
Loans closed/ written off (2,220.24) (397.79) (673.22) (451.51) (1,445.27) (294.28) (4,338.73) (1,143.58)
during the year
Movement in provision 148.64 152.34 194.94 10.30 (69.38) 24.92 274.20 187.56
without change in asset
staging
Movement in provision due (164.66) (23.67) (149.88) (39.54) 907.89 85.17 593.35 21.96
to change in asset staging
Closing ECL March-22 3,006.06 516.42 486.47 35.18 1,601.47 397.62 5,094.00 949.22
(` in Millions)
Reconciliation of loss Financial Assets where Financial assets Financial assets for Total
allowance loss allowance for which credit which credit risk has
measured at 12-month risk has increased increased significantly
ECL significantly and and credit impaired
credit not impaired
Opening ECL March-20 2,240.64 293.43 457.45 149.48 2,973.14 1,318.26 5,671.23 1,761.17
New loans disbursed during 751.89 88.20 412.10 408.62 146.46 32.55 1,310.45 529.37
the year
Loans closed/ written off (421.19) (44.92) (232.68) (36.93) (2,250.74) (1,147.79) (2,904.61) (1,229.64)
during the year
Movement in provision 1,243.22 278.15 42.32 (63.33) (31.39) 65.05 1,254.15 279.87
without change in asset
staging
Movement in provision due (269.45) (15.77) 391.11 45.82 1,249.61 292.81 1,371.27 322.86
to change in asset staging
Closing ECL March-21 3,545.11 599.09 1,070.30 503.66 2,087.08 560.88 6,702.49 1,663.63
(` in Millions)
Reconciliation of Exposure Financial Assets where Financial assets Financial assets for Total
at Default loss allowance for which credit which credit risk has
measured at 12-month risk has increased increased significantly
ECL significantly and and credit impaired
credit not impaired
Principal Others Principal Others Principal Others Principal Others
Opening EAD March-2020 121,932.77 19,085.90 5,131.22 1,344.22 4,130.46 1,318.26 131,194.45 21,748.38
New loans disbursed during 74,792.48 2,102.38 15,062.35 1,009.82 502.25 32.55 90,357.08 3,144.75
the year
Loans closed/written off (53,778.27) (7,699.73) (3,763.26) (981.73) (3,050.05) (1,147.79) (60,591.58) (9,829.25)
during the year
Movement in EAD without (9,476.92) (241.77) (120.00) (152.11) (49.34) 65.05 (9,646.26) (328.83)
change in asset staging
Movement in EAD due to (13,990.39) 199.10 7,092.96 668.19 1,986.22 292.81 (4,911.22) 1,160.10
change in asset staging
Closing EAD March-2021 119,479.67 13,445.88 23,403.27 1,888.39 3,519.54 560.88 146,402.48 15,895.15
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Value of modified assets at the time of modification 18,863.61 25,796.17
Value of modified assets outstanding at end of year 18,815.61 25,574.78
Modification gain/(loss) (48.00) (221.39)
The above modification is in accordance with the provisions defined in the Master Direction Non-Banking Financial Company
- Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 Circular
No DNBR.PD.008/03.10.119/2016-17 dated September 1, 2016 (updated as on March 3, 2022)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
characteristics.
The credit quality review process aims to allow the Company to assess the potential loss as a result of the risks to which it is
exposed and take corrective actions. An independent risk and policy team reviews adherence to policies and processes on a
periodic basis.
Additionally, the Company evaluates risk based on staging as defined in Ind AS, details of which are mentioned below:
Financial Statements
Period Stage 1 Stage 2 Stage 3 Total EAD
March 31, 2022 127,981.99 8,044.69 4,062.06 140,088.74
March 31, 2021 132,925.55 25,291.66 4,080.42 162,297.63
(` in Millions)
Contractual maturities of Total Upto 3 Over 3 Over 6 Over 1 year Over 3 to 5 Over 5
financial liabilities months months to months to 1 to 3 years years years
(including financial guarantee) 6 months year
As at March 31, 2021
Derivative financial instruments 1,186.69 - 212.88 - 973.81 -
Trade payables 664.22 664.22 - - - - -
Other payables - - - - - - -
Finance lease obligation* 4,080.32 180.31 178.03 353.96 1,292.83 953.41 1,121.78
Debt securities 53,446.73 3,933.10 1,431.35 10,024.60 38,057.69 - -
Borrowings (other than debt 92,179.83 11,955.11 15,404.57 20,252.42 28,626.77 15,940.96 -
securities)
Subordinated liabilities 17,373.98 256.72 364.42 4,138.21 530.00 326.89 11,757.75
Other financial liabilities 14,854.73 14,805.62 - - 49.11 - -
Financial guarantee contracts 12,255.43 12,255.43 - - - - -
Total 196,041.92 44,050.50 17,591.23 34,769.20 69,530.21 17,221.27 12,879.53
* The amount represent undiscounted cash flows
Note : Borrowings includes cash credit facilities which has been shown in “over 6 months to 1 year” and “over 1 year to 3
years” in the ratio of 40% and 60% respectively.
(ii)
Financing Arrangements
The Company had access to the following undrawn borrowing facilities at the end of the reporting period
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Floating rate
- Expiring within one year (bank overdraft and other facilities) 14,522.50 4,556.55
- Expiring beyond one year (bank loans) - -
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Floating rate borrowings 59,893.83 53,286.66
Fixed rate borrowings 100,843.55 101,211.87
Project IRR - 6,106.80
Total borrowings 160,737.97 160,605.33
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
The Company had the following floating rate borrowings and cross currency interest rate swap contracts outstanding:
(` in Millions)
As at March 31, 2022 As at March 31, 2021
Weighted Balance % of total Weighted Balance % of total
average borrowings average borrowings
interest interest
Statutory Reports
rate (%) rate (%)
Bank overdrafts, bank loans 8.64% 52,314.58 32.55% 8.63% 45,975.66 28.63%
Non convertible debentures - - - - - -
External Commercial borrowings 8.62% 7,579.25 4.72% 8.62% 7,311.00 4.55%
Inter corporate deposit - - - - - -
Net exposure to cash flow 59,893.83 53,286.66
Financial Statements
interest rate risk
Sensitivity
(i) Profit or loss is sensitive to higher/ lower interest expense from borrowings as a result of changes in interest rates
(assuming other variables constant):
(` in Millions)
Particulars Impact on profit after tax Impact on other components of
equity
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Interest rates – increase by 30 basis points (134.46) (119.63) - -
Interest rates – decrease by 30 basis points 134.46 119.63 - -
(ii) The Company does not have any outstanding variable rate loans given and hence there is no impact on Profit & loss
account due to any such change.
38C.2. Exposure to Currency Risks
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign currency rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign
currency borrowings taken from Financial Institutions, External Commercial Borrowings (ECB) and foreign bond markets.
(i) The Company has hedged its foreign currency exposure through Forwards/ Future and / or Cross Currency Interest Rate
Swaps in such a manner that it has fixed determinate outflows in its functional currency and as such there would be no
significant impact of movement in foreign currency rates on the Company’s profit before tax (PBT).
As at March 31, 2022 (` in Millions)
Particulars USD EUR CHF JPY SGD Other
Currencies
Foreign currency assets (in `)* 644.13 - - - - -
Foreign currency liabilities (in `)* 1,494.62 - - - - -
Net Assets/(Liabilities) (850.49) - - - - -
(ii) Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated
financial instruments
(` in Millions)
Particulars Impact on profit after tax Impact on other components of
equity
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
US$ sensitivity*
`/ US$ - increase by 5% - - (1,343.34) (1,368.01)
`/ US$ - decrease by 5% - - 1,343.34 1,368.01
* Holding all other variables constant,the sensitivity on profit and loss is due to the timing differences of the maturity of the
forward exchange contract. On the date of maturity of the forward exchange contract, the sensitivity of profit and loss to
changes in the exchange rates will be nil.
(ii)
Sensitivity
The table below summarizes the impact of increases/ decreases of the index on the Company’s equity / other assets and
profit for the period. The analysis is based on the assumption that the instrument index has increased / decreased by 5% with
all other variables held constant
(` in Millions)
Particulars Impact on profit after tax Impact on other components of
equity
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Increase 5% 388.57 7.08 - -
Decrease 5% (388.57) (7.08) - -
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Income
Financial assets
Cash and cash equivalents - - 43,569.37
Bank Balance other than above - - 12,518.66
Derivative financial instruments - 644.13 -
Receivables
(i) Trade receivables - - 1,405.43
Financial Statements
(ii) Other receivables - - 158.00
Loans - 27,770.59 101,069.87
Investments 10,385.21 - 14,103.33
Other financial assets - - 5,185.75
Total financial assets 10,385.21 28,414.72 178,010.40
Financial liabilities
Derivative financial instruments - 1,494.62 -
Trade payables - - 861.67
Other payables - - 99.06
Finance lease obligation - - 3,276.24
Debt securities - - 51,052.83
Borrowings (other than debt securities) - - 97,710.68
Subordinated liabilities - - 13,696.40
Other financial liabilities - - 17,844.92
Total financial liabilities - 1,494.62 184,541.79
(` in Millions)
Particulars As at March 31, 2021
Fair Value through Fair value through Amortized cost /
profit or loss Other Comprehensive Cost
Income
Financial assets
Cash and cash equivalents - - 20,518.72
Bank Balance other than above - - 15,406.27
Derivative financial instruments - 416.88 -
Receivables - -
(i) Trade receivables - - 1,593.73
(ii) Other receivables - - 5.10
Loans - 28,904.75 127,038.24
Investments 189.24 - 11,853.33
Other financial assets - - 2,079.67
Total financial assets 189.24 29,321.63 178,495.06
Financial liabilities
Derivative financial instruments - 1,186.69 -
Trade payables - - 664.22
Other payables - - -
(` in Millions)
Particulars As at March 31, 2021
Fair Value through Fair value through Amortized cost /
profit or loss Other Comprehensive Cost
Income
Finance lease obligation 3,054.22
Debt securities - - 53,446.73
Borrowings (other than debt securities) - - 92,179.83
Subordinated liabilities - - 17,373.98
Other financial liabilities - - 14,854.73
Total financial liabilities - 1,186.69 181,573.71
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Financial assets and liabilities Level 1 Level 2 Level 3 Total Carrying Value
measured at fair value - recurring fair
value measurements
As at March 31, 2021
Financial assets
Forward rate agreements and interest - 416.88 - 416.88 416.88
Statutory Reports
rate swaps
Loans - classified under FVTOCI - - 28,904.75 28,904.75 28,904.75
Investments 118.18 - 71.06 189.24 189.24
(i) Mutual funds/ Alternate 118.18 - 71.06 189.24 189.24
investment fund / Others
Total financial assets 118.18 416.88 28,975.81 29,510.87 29,510.87
Financial liabilities
Financial Statements
Forward rate agreements and interest - 1,186.69 - 1,186.69 1,186.69
rate swaps
Total financial liabilities - 1,186.69 - 1,186.69 1,186.69
(` in Millions)
Assets and liabilities which are measured at Total Fair value Carrying value Valuation hierarchy
amortized cost for which fair values are disclosed
As at March 31, 2022
Debt securities ** 50,078.72 51,052.83 Level 3
Borrowings (other than debt securities) 92,452.15 97,710.68 Level 3
Subordinated liabilities 14,045.30 13,696.40 Level 3
Other financial liabilities 17,844.92 17,844.92 -
Total financial liabilities 175,381.82 181,265.56
* Investments in subsidiaries are carried at amortised cost and hence fair value is not disclosed
** For MTN Bond book value is been considered as fair value
(` in Millions)
Assets and liabilities which are measured at Total Fair value Carrying value Valuation hierarchy
amortized cost for which fair values are disclosed
As at March 31, 2021
Financial assets
Cash and cash equivalents 20,518.72 20,518.72 -
Bank Balance other than included above 15,406.27 15,406.27 -
Receivables -
(i) Trade receivables 1,593.73 1,593.73 -
(ii) Other receivables 5.10 5.10 -
Loans 124,479.83 127,038.24 Level 3
Investment in subsidiary* 11,853.33 11,853.33 -
Other financial assets 2,079.67 2,079.67 -
Total financial assets 175,936.65 178,495.06
Financial Liabilities
Trade payables 664.22 664.22 -
Other payables - - -
Debt securities** 53,760.78 53,446.73 Level 3
Borrowings (other than debt securities) 92,192.68 92,179.83 Level 3
Subordinated liabilities 17,964.46 17,373.98 Level 3
Other financial liabilities 14,854.73 14,854.73 -
Total financial liabilities 179,436.86 178,519.49
* Investments in subsidiaries are carried at amortized cost and hence fair value is not disclosed
** For MTN Bond book value is been considered as fair value
38.E.4 Movements In Level 3 Financial Instruments Measured At Fair Value :
The following tables shows the reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities
measured at fair value:
(` in Millions)
Particulars Loans - Classified Alternate Investment Equity
under FVOCI fund
Balances as at April 1, 2021 28,904.75 71.06 -
Issuances 85,935.74 10,526.44 -
Sale of financial instrument classified as level 3 at the (87,069.90) (1,740.46) -
beginning of the financial year
Total gain/ (loss) recognized in profit and loss - 695.13 -
Transfers in - - -
Transfers out - - -
Balances as at March 31, 2022 27,770.59 9,552.17 -
Unrealized gain /(loss) related to balances held at the - 685.67 -
end of financial year
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars Loans - Classified Alternate Investment Equity
under FVOCI fund
Balances as at April 1, 2020 28,248.10 50.01 988.50
Issuances 61,464.56 12.44 -
Sale of financial instrument classified as level 3 at the (60,807.91) (0.06) (1,450.00)
Statutory Reports
beginning of the financial year
Total gain/ (loss) recognized in profit and loss - 8.67 461.50
Transfers in - - -
Transfers out - - -
Balances as at March 31, 2021 28,904.75 71.06 -
Unrealized gain/ losses related to balances held at - (9.46) -
the end of financial year
Financial Statements
38 F. Transferred Financial Assets That Are Derecognized In Their Entirety
During the year ended March 31, 2022, the Company sold loans measured at FVTOCI through assignment deals. The
Company derognized the assets as per IND AS 109 as all the risks and rewards relating to assets were transferred to the buyer.
The table below summarizes the carrying amount of the derecognized financial assets measured at FVTOCI and the gain/
(loss) on derecognition, per type of asset.
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Financial assets derecognized during the year 87,069.90 60,807.91
Gain from derecognition 4,107.08 1,674.58
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Carrying amount of transferred assets measured at amortized cost 19,892.16 39,138.16
Carrying amount of associated liabilities 19,892.16 39,138.16
Fair value of assets 19,888.06 39,151.01
Fair value of associated liabilities 19,888.06 39,151.01
Net position at Fair value - -
NOTE 39. CAPITAL, OTHER COMMITMENTS AND CONTINGENT LIABILITIES AT BALANCE SHEET DATE:
Contingent Liabilities:
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
In respect of Income tax demands (refer note (a) and (b)) 663.06 486.49
In respect of GST/Service tax demands (including interest accrued and refer 831.66 617.50
note (c))
In respect of Profession tax demands (refer note (d)) 1.55 1.55
In respect of Bank guarantees given (refer note (e)) 8,454.96 12,255.43
In respect of Stamp Duty (refer note (f)) 166.60 -
(a) The Company has filed appeal against the said demands raised by the Income Tax Department.
(b) Amount paid under protest with respect to income tax demand is ` 417.70 Million ( P.Y ` 233.89 Million).
(c) Amount paid under protest with respect to service tax demand ` 18.92 Million (P.Y ` 18.92 Million) and with respect to
GST demand ` 0.18 Million (P.Y Nil).
(d) Amount paid under protest with respect to profession tax demand ` 0.47 Million (P.Y ` 0.47 Million).
(e) The above guarantee has been given on behalf of subsidiaries/group companies.
(f) The Company has received demand towards stamp duty on account of the Composite Scheme of Arrangement.The
demand has been raised for a sum of ` 750.00 Million. As per the scheme document any incidental expenses will be
borne by the resulting companies i.e IIFL Finance Limited, IIFL Securities Limited and IIFL Wealth Management Limited
equally. The Company has appealed against the same and paid ` 83.40 Million under protest towards its share of the
liability and shown ` 166.60 Million as Contingent.
(g) Apart from the above, Company is subject to legal proceedings and claims which have arisen in the ordinary course of the
business. The Company’s management does not reasonably expect that these legal actions, when ultimately concluded
and determined, will have material and adverse effect on the Company’s financial position.
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Commitments related to loans sanctioned but undrawn 7,935.49 913.64
Estimated amount of contracts remaining to be executed on capital account 187.51 325.42
Commitments related to Alternate Investment Funds 205.95 20.16
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Grant Price (` Per Share) ` 61.40, ` 82.73, ` 82.02, ` 218.71, ` 61.40, ` 82.73, ` 82.02, ` 218.71 and
` 126.64, ` 252.00, ` 252.00 and ` 126.64
` 271.40
(b) (i) Movement of options during the year ended March 31, 2022
Financial Statements
(Years)
Outstanding as on April 1, 2021 331,525 82.02-218.71 93.70 2.65
Granted during the year 925,000 252.00-271.40 252.52 -
Expired/forfeited during the year 14,360 82.02 82.65 -
Exercised during the year 95,060 82.02-82.73 82.04 -
Outstanding as on March 31, 2022 1,147,105 82.02-271.40 222.89 5.44
Exercisable as on March 31, 2022 177,105 82.02-271.40 92.54 1.14
b) (ii) Movement of options during year ended March 31, 2021
Stock Price: The closing market price on NSE one day prior to the date of grant has been considered for the purpose of Option
valuation.
Volatility: The daily volatility of the stock prices on BSE, over a period prior to the date of grant, corresponding with the expected
life of the Options has been considered to calculate the fair value.
Risk-free rate of return: The risk-free rate being considered for the calculation is the India Government Bond Generic Bid Yield
with a maturity about equal to the expected life of the options.
Time to Maturity: Time to Maturity / Expected Life of Options is the period for which the Company expects the Options to
be live. The minimum life of a stock option is the minimum period before which the Options cannot be exercised and the
maximum life is the period after which the Options cannot be exercised.
Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the three financial
years preceding the date of the grant. The dividend yield for the year is derived by dividing the dividend per share by the
average price per share of the respective period.
The Company has granted Employee Stock Options under IIFL Finance Employee Stock Option Plan 2020 – Merger Scheme
pursuant to aforesaid Composite Scheme of Arrangement.
a) The details of various Employee Stock Option Schemes are as under:
(b) (i) Movement of options during the year ended March 31, 2022
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(b) (ii) Movement of options during year ended March 31, 2021
Particulars Option Range of exercise Weight average Weight average
Outstanding price (in `) exercise price remaining
(in `) contractual life
(Years)
Outstanding as on April 1, 2020 8,265,678 61.48 -182.22 157.65 5.15
Statutory Reports
Granted during the year - - - -
Expired/forfeited during the year 3,458,788 61.48-182.22 173.65 -
Exercised during the year 373,657 61.48-182.22 95.69 -
Outstanding as on March 31, 2021 4,433,233 61.48-182.22 150.40 4.06
Exercisable as on March 31, 2021 2,001,004 61.48-182.22 132.44 3.57
Financial Statements
measurement date, exercise date of the instrument, exercise price, expected life, risk free interest rate, dividend yield, expected
volatility .
Key Assumptions used in Black-Scholes model for calculating fair value as on the date of grant are as follows:
Particulars ESOP 2020
21-Nov-18 4-Sep-18 2-May-18 2-May-18
Stock price (`) 179.63 179.63 179.63 179.63
Volatility 59% 59% 59% 59%
Risk-free Rate 7.21% - 7.40% 7.21% - 7.44% 7.13% - 7.40% 7.13% - 7.34%
Exercise price (`) 177.04 177.04 142.22 142.22
Time to Maturity (Years) 5.39 5.43 5.09 4.84
Dividend yield 1.00% 1.00% 1.00% 1.00%
Weight Average Value (`) 102.29 102.87 106.78 106.94
Stock Price: The fair value of stock as on Appointed Date, i.e., April 1, 2018 (“the Effective date” or the “Date of Modification”)
has been used to value the outstanding grants based on Merchant Banker’s Report.
Volatility: The daily volatility of the stock prices on BSE, based on post demerger traded prices, has been considered to
calculate the fair value.
Risk-free rate of return: The risk-free rate being considered for the calculation is the India Government Bond Generic Bid Yield
with a maturity about equal to the expected life of the options.
Exercise Price: Price of each specific grant has been considered based on equity swap ratio of the Composite Scheme of
Arrangement.
Time to Maturity: Time to Maturity / Expected Life of Options is the period for which the Company expects the Options to
be live. The minimum life of a stock option is the minimum period before which the Options cannot be exercised and the
maximum life is the period after which the Options cannot be exercised.
Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the three financial
years preceding the date of the grant. The dividend yield for the year is derived by dividing the dividend per share by the
average price per share of the respective period.
The Company has not entererd into any transactions with strike off companies.
There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
The clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not
applicable to the Company.
(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:-
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
The Company has disclosed all its Income appropriately and in the ongoing Tax Assessments as well there has not been
any such undisclosed income recognised by the relavant tax authorities.
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
The Company does not possess any benami property under the Benami Transactions (Prohibition) Act, 1985 and rules
made thereunder.
(viii) Disclosure of Borrowings
(a) The quarterly returns and statements of current assets filed by the Company with banks or financial institutions are
in agreement with the books of accounts.
(b) The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it
was taken as at March 31, 2022.
(ix) Wilful Defaulter
The Company has not been declared as Wilful Defaulter by any Bank or Financial Institution or other Lender.
(x) Title Deeds Of Immovable Properties Not Held In Name Of The Company
Title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements
are duly executed in favour of the lessee) are held in the name of the company.
(xi) Disclosure on Loans and Advances
The Company has not granted any loans or advances in the nature of loans either repayable on demand or without
specifying any terms or period of repayment, to promoters, directors, KMPs and the related parties (as defined under the
Companies Act, 2013), either severally or jointly with any other person.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(xii) Ratios
Particulars As at As at
March 31, 2022 March 31, 2021
Capital to risk-weighted assets ratio (CRAR) 23.85% 25.40%
Tier I CRAR 16.02% 17.51%
Tier II CRAR 7.83% 7.89%
Statutory Reports
Liquidity Coverage Ratio for the quarter ended March 31 116.59% 102.76%
Financial Statements
Other related parties IIFL Securities Limited
IIFL Management Services Limited
IIFL Insurance Brokers Limited (Formerly India Infoline Insurance Brokers Limited)
IIFL Wealth Management Limited
IIFL Facilities Services Limited (Formerly IIFL Real Estate Limited)
India Infoline Foundation
India Infoline Employee Trust
IIFL Asset Management Limited
IIFL Wealth Finance Limited
Livlong Protection & Wellness Solutions Limited (Formerly IIFL Corporate Services Limited)
IIHFL Sales Limited (w.e.f September 28, 2021)
5paisa Capital Limited
5paisa P2P Limited
Key managerial personnel Mr. Nirmal Jain
Mr. R. Venkataraman
Mr. Rajesh Rajak
Mr. Sumit Bali (upto June 30, 2020)
Relatives of Key Mr. Shankar Subramanian (Brother of Independent Director Mr. Ramakrishnan Subramanian)
managerial personnel (w.e.f September 06, 2021)
*
The above list includes related parties with whom the transactions have been carried out during the year.
Note 42.1 Significant transactions with related parties
(` in Millions)
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
Interest income
IIFL Securities Limited - 47.55 - 47.55
- (1.30) - (1.30)
IIFL Home Finance Limited 201.61 - - 201.61
(28.38) - - (28.38)
IIFL Facilities Services Limited - 20.40 - 20.40
- (71.05) - (71.05)
IIFL Management Services Limited - 0.13 - 0.13
- - - -
5paisa Capital Limited - 50.73 - 50.73
- (118.20) - (118.20)
(` in Millions)
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
IIFL Samasta Finance Limited (Formerly Samasta 74.51 - - 74.51
Microfinance Limited) (67.70) - - (67.70)
Mr. Shankar Subramanian - - 0.22 0.22
- - - -
Interest expense
IIFL Facilities Services Limited - 89.42 - 89.42
- (84.47) - (84.47)
IIFL Home Finance Limited - - - -
(333.59) - - (333.59)
IIFL Samasta Finance Limited (Formerly Samasta - - - -
Microfinance Limited) (43.65) - - (43.65)
IIFL Management Services Limited - 5.37 - 5.37
- - - -
IIFL Securities Limited - 4.82 - 4.82
- (4.45) - (4.45)
Referral fees income
IIFL Home Finance Limited 0.43 - - 0.43
(1.27) - - (1.27)
Trademark License Fee
IIFL Securities Limited - - - -
- (0.10) - (0.10)
Donation paid
India Infoline Foundation - 82.00 - 82.00
- (47.10) - (47.10)
Arranger/processing fees/brokerage on non convertible debenture/merchant banking fees/other charges
IIFL Securities Limited - 225.68 - 225.68
- - - -
5paisa Capital Limited - - - -
- (0.68) - (0.68)
IIFL Wealth Management Limited - 35.55 - 35.55
- (121.34) - (121.34)
IIFL Samasta Finance Limited (Formerly Samasta 72.13 - - 72.13
Microfinance Limited) - - - -
IIFL Home Finance Limited 15.59 - - 15.59
(6.47) - - (6.47)
Mr. Shankar Subramanian - - 0.01 0.01
- - - -
Rent expenses
IIFL Facilities Services Limited - 19.24 - 19.24
- (17.50) - (17.50)
Commission / brokerage expense
IIFL Securities Limited - 0.88 - 0.88
- (0.19) - (0.19)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
Remuneration paid
Mr. Nirmal Jain - - 86.72 86.72
Statutory Reports
- - (80.01) (80.01)
Mr. Sumit Bali - - - -
- - (5.41) (5.41)
Equity dividend received
IIFL Home Finance Limited 629.05 - - 629.05
(524.20) - - (524.20)
IIFL Samasta Finance Limited (Formerly Samasta - - - -
Financial Statements
Microfinance Limited) (118.84) - - (118.84)
Equity dividend paid
India Infoline Employee Trust Limited - 0.26 - 0.26
- (0.23) - (0.23)
ICD/loan taken**
IIFL Home Finance Limited 4,210.00 - - 4,210.00
(82,387.10) - - (82,387.10)
IIFL Samasta Finance Limited (Formerly Samasta - - - -
Microfinance Limited) (3,450.00) - - (3,450.00)
IIFL Securities Limited - 2,000.00 - 2,000.00
- (22,080.00) - (22,080.00)
IIFL Facilities Services Limited - 42,505.96 - 42,505.96
- (51,061.50) - (51,061.50)
ICD/loan returned**
IIFL Home Finance Limited 4,210.00 - - 4,210.00
(82,387.10) - - (82,387.10)
IIFL Samasta Finance Limited (Formerly Samasta - - - -
Microfinance Limited) (3,950.00) - - (3,950.00)
IIFL Securities Limited - 2,000.00 - 2,000.00
- (22,080.00) - (22,080.00)
IIFL Facilities Services Limited - 42,505.96 - 42,505.96
- (51,061.50) - (51,061.50)
ICD/loan given**
IIFL Securities Limited - 17,390.00 - 17,390.00
- (4,040.00) - (4,040.00)
IIFL Management Services Limited - 500.00 - 500.00
- - - -
IIFL Facilities Services Limited - 26,635.00 - 26,635.00
- (18,963.50) - (18,963.50)
IIFL Home Finance Limited 32,844.00 - - 32,844.00
(11,950.00) - - (11,950.00)
IIFL Samasta Finance Limited (Formerly Samasta 5,500.00 - - 5,500.00
Microfinance Limited) (9,480.00) - - (9,480.00)
5paisa Capital Limited - 6,000.00 - 6,000.00
- (28,130.00) - (28,130.00)
(` in Millions)
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
ICD/loan received back
IIFL Securities Limited - 17,390.00 - 17,390.00
- (4,040.00) - (4,040.00)
IIFL Facilities Services Limited - 26,635.00 - 26,635.00
- (20,722.00) - (20,722.00)
IIFL Management Services Limited - 500.00 - 500.00
- - - -
IIFL Home Finance Limited 32,844.00 - - 32,844.00
(11,950.00) - - (11,950.00)
5paisa Capital Limited - 6,000.00 - 6,000.00
- (29,130.00) - (29,130.00)
IIFL Samasta Finance Limited (Formerly Samasta 5,500.00 - - 5,500.00
Microfinance Limited) (9,480.00) - - (9,480.00)
Investment in subsidiaries
IIFL Samasta Finance Limited (Formerly Samasta 2,250.00 - - 2,250.00
Microfinance Limited) (675.00) - - (675.00)
Sale of investment
IIFL Home Finance Limited 1,440.00 - - 1,440.00
(1,821.23) - - (1,821.23)
IIFL Wealth Finance Limited - - - -
- (2,011.10) - (2,011.10)
Allocation / reimbursement of expenses paid
IIFL Securities Limited - 92.41 - 92.41
- (79.82) - (79.82)
5paisa Capital Limited - 0.42 - 0.42
- - - -
IIFL Wealth Management Limited - - - -
- (4.15) - (4.15)
IIFL Home Finance Limited 9.10 - - 9.10
(5.55) - - (5.55)
IIFL Management Services Limited - 1.76 - 1.76
- (3.95) - (3.95)
IIFL Facilities Services Limited - 14.77 - 14.77
- (11.65) - (11.65)
Allocation / reimbursement of expenses paid others
IIFL Securities Limited - 19.68 - 19.68
- (10.06) - (10.06)
IIFL Wealth Management Limited - 0.00 - 0.00
- (0.06) - (0.06)
5paisa P2P Limited - 0.01 - 0.01
- (0.03) - (0.03)
IIFL Facilities Services Limited - 2.00 - 2.00
- (3.16) - (3.16)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
IIFL Home Finance Limited 2.62 - - 2.62
(13.12) - - (13.12)
Statutory Reports
5paisa Capital Limited - 3.09 - 3.09
- (2.92) - (2.92)
IIFL Management Services Limited - 0.33 - 0.33
- (0.42) - (0.42)
IIFL Samasta Finance Limited (Formerly Samasta 6.57 - - 6.57
Microfinance Limited) - - -
Livlong Protection & Wellness Solutions Limited - 0.19 - 0.19
(Formerly IIFL Corporate Services Limited)
Financial Statements
- - - -
IIHFL Sales Limited - 0.01 - 0.01
- - - -
IIFL Insurance Brokers Limited - 0.02 0.02
- (0.51) - (0.51)
Allocation / reimbursement of expenses received
IIFL Facilities Services Limited 0.87 0.87
- (3.96) - (3.96)
IIFL Management Services Limited 0.26 0.26
- (0.29) - (0.29)
IIFL Securities Limited 27.47 27.47
- (28.25) - (28.25)
IIFL Home Finance Limited 47.59 47.59
(30.15) - - (30.15)
5paisa Capital Limited 8.71 - 8.71
- (4.43) - (4.43)
IIFL Wealth Management Limited - -
- (0.18) - (0.18)
Livlong Protection & Wellness Solutions Limited 0.09 0.09
(Formerly IIFL Corporate Services Limited) - - - -
IIHFL Sales Limited 2.06 2.06
- - -
Allocation / reimbursement of expenses received others
5paisa Capital Limited 0.97 0.97
- (0.89) - (0.89)
5paisa P2P Limited - -
- (0.08) - (0.08)
IIFL Securities Limited 7.27 7.27
- (6.15) - (6.15)
IIFL Home Finance Limited 17.15 - - 17.15
(32.35) - - (32.35)
IIFL Management Services Limited 0.00 0.00
- (0.94) - (0.94)
IIFL Facilities Services Limited 1.01 1.01
- (1.28) - (1.28)
(` in Millions)
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
IIFL Insurance Brokers Limited 0.50 0.50
- (0.22) - (0.22)
IIFL Asset Management Limited - -
- (0.59) - (0.59)
Livlong Protection & Wellness Solutions Limited 0.26 0.26
(Formerly IIFL Corporate Services Limited) - - - -
IIHFL Sales Limited 0.01 0.01
- - - -
Security deposit paid towards rent
IIFL Facilities Services Limited 0.43 0.43
- -
Assignment/Secu transactions paid on behalf
IIFL Home Finance Limited 901.44 - - 901.44
(902.18) - - (902.18)
Non convertible debenture issued
IIFL Facilities Services Limited - -
(1,000.00) (1,000.00)
IIFL Securities Limited 500.00 500.00
(751.80) (751.80)
Non convertible debenture redeemed/buyback
IIFL Management Services Limited 108.11 108.11
- -
IIFL Wealth Finance Limited - -
(813.46) (813.46)
IIFL Facilities Services Limited - -
(222.11) (222.11)
Repayment towards Borrowing
IIFL Management Services Limited - 52.70 52.70
- - - -
IIFL Securities Limited - 40.90 40.90
- - - -
Note 42.2 Closing balances with related parties
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
Other payable
5paisa Capital Limited 1.69 1.69
- (2.08) - (2.08)
5paisa P2P Limited - -
- (0.01) - (0.01)
IIFL Insurance Brokers Limited - -
- (0.30) - (0.30)
IIFL Securities Limited 12.60 12.60
- (2.74) - (2.74)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
IIFL Facilities Services Limited 0.58 0.58
- - - -
Statutory Reports
IIFL Wealth Management Limited 38.44 38.44
- (1.74) - (1.74)
IIFL Samasta Finance Limited (Formerly Samasta 25.03 - 25.03
Microfinance Limited) - - - -
Other receivable
IIFL Insurance Brokers Limited 0.24 0.24
- - - -
Financial Statements
IIFL Management Services Limited 0.01 0.01
-
Livlong Protection & Wellness Solutions Limited - 0.41 - 0.41
(Formerly IIFL Corporate Services Limited) - - - -
IIHFL Sales Limited - 1.08 - 1.08
- - - -
IIFL Facilities Services Limited - - -
- (1.95) - (1.95)
IIFL Home Finance Limited 1.32 1.32
(7.93) - - (7.93)
Security deposit receivable
IIFL Facilities Services Limited - 9.18 - 9.18
- (8.75) - (8.75)
Corporate guarantee given
IIFL Home Finance Limited 8,454.96 - - 8,454.96
(12,255.43) - - (12,255.43)
Outstanding non convertible debenture issued
IIFL Management Services Limited - -
- (22.22) - (22.22)
IIFL Securities Limited 443.00 - 443.00
- (40.90) - (40.90)
IIFL Facilities Services Limited - 0.01 - 0.01
- - - -
Interest accrued on non convertible debenture issued
IIFL Management Services Limited - -
- (3.46) - (3.46)
IIFL Securities Limited 19.67 19.67
- (1.91) - (1.91)
IIFL Facilities Services Limited 0.00 0.00
- - - -
Loan receivable
Mr. Shankar Subramanian - - 2.02 2.02
- - - -
(` in Millions)
Nature of transaction Direct Other related Key managerial Total
subsidiaries parties personnel and
their relatives
Gratuity payable *
Mr. Nirmal Jain - - 1.47 1.47
- - (1.43) (1.43)
Leave encashment payable *
Mr. Nirmal Jain - - 6.44 6.44
- - (4.59) (4.59)
* Based on actuarial valuation report
**ICD Transactions are including Intraday
Wherever amount is less than ` 0.01 Million, shown as ` 0.00
(Figure in bracket represents previous year figure)
(` in Millions)
Particulars FY 2021-22 FY 2020-21
(a) Amount required to be spent 82.00 47.10
(b) Amount of expenditure incurred 57.40 47.10
(c) Shortfall at the end of the year 24.60 -
(d) Total of previous years shortfall - -
(e) Nature of CSR activities Promoting Education and Healthcare,
eradicating poverty
Reason for shortfall: The Company during the year had contributed towards the ongoing projects to IIFL Foundation Limited
and which remained unspent as on March 31, 2022 resulting in shortfall. The unspent amount has been transferred to a
separate Bank account and will be spent during the FY 2022-23.
The Company contributes its CSR requirement to IIFL Foundation Limited, a group Company.
NOTE 44.1 MATURITY ANALYSIS OF ASSETS AND LIABILITIES AS AT MARCH 31, 2022
(` in Millions)
Sr. Particulars Within 12 After 12 Total
No months months
Assets
[1] Financial assets
(a) Cash and cash equivalents 43,569.37 - 43,569.37
(b) Bank balance other than (a) above 10,016.04 2,502.62 12,518.66
(c) Derivative financial instruments - 644.13 644.13
(d) Receivables
(i) Trade receivables 1,405.24 0.19 1,405.43
(ii) Other receivables 158.00 - 158.00
(e) Loans 79,067.93 49,772.53 128,840.46
(f) Investments 0.04 24,488.50 24,488.54
(g) Other financial assets 1,521.01 3,664.74 5,185.75
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Sr. Particulars Within 12 After 12 Total
No months months
[2] Non-financial assets
(a) Current tax assets (net) - 2,270.23 2,270.23
Statutory Reports
(b) Deferred tax assets (net) - 1,584.97 1,584.97
(c) Investment property - 2,885.13 2,885.13
(d) Property, plant and equipment - 1,348.24 1,348.24
(e) Capital work-in-progress 51.40 5.04 56.44
(f) Right of-use assets - 2,972.54 2,972.54
(g) Other intangible assets - 19.16 19.16
(h) Other non-financial assets 850.06 2,487.09 3,337.15
Financial Statements
(i) Assets held for sale 78.44 - 78.44
Total Assets 136,717.52 94,645.12 231,362.64
Liabilities and Equity
Liabilities
[1] Financial liabilities
(a) Derivative financial instruments 62.26 1,432.36 1,494.62
(b) Payables
(I) Trade payables
(i) total outstanding dues of micro enterprises and - - -
small enterprises
(ii) total outstanding dues of creditors other than micro 851.42 10.25 861.67
enterprises and small enterprises
(II) Other payables
(i) total outstanding dues of micro enterprises and - - -
small enterprises
(ii) total outstanding dues of creditors other than micro 99.06 - 99.06
enterprises and small enterprises
(c) Finance lease obligation 680.49 2,595.75 3,276.24
(d) Debt securities 7,743.53 43,309.30 51,052.83
(e) Borrowings (other than debt securities) 29,754.17 67,956.51 97,710.68
(f) Subordinated liabilities 802.68 12,893.72 13,696.40
(g) Other financial liabilities 17,584.73 260.19 17,844.92
[2] Non-financial liabilities
(a) Current tax liabilities (net) 184.41 - 184.41
(b) Provisions 342.83 71.01 413.84
(c) Other non-financial liabilities 458.95 - 458.95
[3] Equity
(a) Equity share capital - 759.20 759.20
(b) Other equity - 43,509.82 43,509.82
Total Liabilities and Equity 58,564.53 172,798.11 231,362.64
Note 44.2 Maturity Analysis Of Assets And Liabilities As At March 31, 2021
(` in Million)
Sr. Particulars Within 12 After 12 Total
No months months
Assets
[1] Financial assets
(a) Cash and cash equivalents 20,518.72 - 20,518.72
(b) Bank balance other than (a) above 13,749.36 1,656.91 15,406.27
(c) Derivative financial instruments - 416.88 416.88
(d) Receivables
(i) Trade receivables 1,593.73 - 1,593.73
(ii) Other receivables 5.10 - 5.10
(e) Loans 110,268.74 45,674.25 155,942.99
(f) Investments - 12,042.57 12,042.57
(g) Other financial assets 1,458.46 621.21 2,079.67
[2] Non-financial assets
(a) Current tax assets (net) - 2,468.67 2,468.67
(b) Deferred tax assets (net) - 2,063.60 2,063.60
(c) Investment property - 2,640.02 2,640.02
(d) Property, plant and equipment - 955.44 955.44
(e) Capital work-in-progress - 65.60 65.60
(f) Right of-use assets 2,793.94 2,793.94
(g) Other intangible assets - 9.15 9.15
(h) Other non-financial assets 420.98 2,683.92 3,104.90
Total Assets 148,015.09 74,092.16 222,107.25
Liabilities and Equity
Liabilities
[1] Financial liabilities
(a) Derivative financial instruments 212.88 973.81 1,186.69
(b) Payables
(I) Trade payables
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro 664.22 - 664.22
enterprises and small enterprises
(II) Other payables
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro - - -
enterprises and small enterprises
(c) Finance lease obligation 480.76 2,573.46 3,054.22
(d) Debt securities 15,318.20 38,128.53 53,446.73
(e) Borrowings (other than debt securities) 47,442.26 44,737.57 92,179.83
(f) Subordinated liabilities 4,693.89 12,680.09 17,373.98
(g) Other financial liabilities 14,805.62 49.11 14,854.73
[2] Non-financial liabilities
(a) Current tax liabilities (net) 185.44 - 185.44
(b) Provisions 253.20 62.43 315.63
(c) Other non-financial liabilities 638.46 - 638.46
[3] Equity
(a) Equity share capital - 757.68 757.68
(b) Other equity - 37,449.64 37,449.64
Total Liabilities and Equity 84,694.93 137,412.32 222,107.25
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
45. DISCLOSURE AS REQUIRED UNDER ANNEX XII- RBI MASTER DIRECTION - NON-BANKING FINANCIAL COMPANY -
SYSTEMICALLY IMPORTANT NON-DEPOSIT TAKING COMPANY AND DEPOSIT TAKING COMPANY (RESERVE BANK)
DIRECTIONS, 2016 DATED SEPTEMBER 01, 2016 AS MAY BE AMENDED FROM TIME TO TIME:
(i) Capital Adequacy Ratio
(` in Millions)
Particulars As at As at
Statutory Reports
March 31, 2022 March 31, 2021
CRAR (%) 23.85% 25.40%
CRAR - Tier I Capital (%) 16.02% 17.51%
CRAR - Tier II Capital (%) 7.83% 7.89%
Amount of subordinate debt raised as Tier- II capital * 13,267.81 13,117.81
Amount raised by issue of perpetual debt instruments.
*Gross of Unamortized Debenture Issue Expenses of `220.39 Million (PY ` 295.05 Million)
Financial Statements
(ii) Disclosure of Investments
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Value of Investments
Gross value of Investments* 28,109.45 12,066.59
(a) In India 28,109.45 12,066.59
(b) Outside India - -
Provision for depreciation/diminution 3,620.91 24.02
(a) In India 3,620.91 24.02
(b) Outside India - -
Net value of investments 24,488.54 12,042.57
(a) In India 24,488.54 12,042.57
(b) Outside India - -
Movement of provisions held towards depreciation on Investments
Opening Balance 24.02 290.78
Add: Provision made during the year 3,620.91 -
Less : Write -off / write-back of excess provisions during the year (24.02) (266.76)
Closing balance 3,620.91 24.02
* Includes Mark to Market Gain of ` 685.67 Million (P.Y ` 82.75 million)
(iii) Derivatives:
(a) Forward Rate Agreement / Interest Rate Swap
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
The notional principal of Forward/swap agreements 43,898.78 46,351.29
Losses which would be incurred if counterparties failed to fulfill their obligation - -
under the agreements.
Collateral required by the NBFC upon entering into swaps - -
Concentration of credit risk arising from the swaps - -
The fair value of swap book (850.49) (769.81)
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Notional principal amount of exchange traded IR derivatives undertaken
- Forward Rate agreements - -
Total - -
Notional principal amount of exchange traded IR derivatives outstanding
- Forward Rate agreements - -
Total - -
Notional principal amount of exchange traded IR derivatives outstanding and - -
not "highly effective"
Mark to market value of exchange traded IR derivative outstanding and not - -
highly effective
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
As at the Balance Sheet date, the Mark to Market/Unrealized Profit/(Loss) on all outstanding Derivative
portfolio comprising of Securities and Equity/Currency Derivatives positions is determined on scrip basis with
net unrealized losses on scrip basis being recognized in the Other Comprehensive Income.
(II) Quantitative Disclosure
(` in Millions)
FY 2021-22 FY 2020-21
Statutory Reports
Currency Interest Rate Currency Interest Rate
Derivatives Derivatives Derivatives Derivatives
Derivatives (Notional Principle Amount):
- For hedging * 36,943.78 6,955.00 39,396.29 6,955.00
Marked to market positions:
a) Asset 458.53 185.60 416.88 -
Financial Statements
b) Liability 1,494.62 - 973.81 212.88
Credit Exposure - - - -
Unhedged Exposures - - - -
* The Company has opted for hedge accounting under IND AS 109 as stated under the significiant accounting
policies.
(iv) Disclosures pertaining to securitization transactions
The Company sells loans through securitization and direct assignment.
(A) The information on securitization done by the Company as an originator is given below:
(` in Millions)
Particulars March 31, 2022 March 31, 2021
Total number of loan assets under par structure 299,960 572,218
Total book value of loan assets 16,820.00 31,650.00
Sale consideration received 16,820.00 31,650.00
The information on securitization of the Company as an originator in respect of outstanding amount of securitized
assets is given below:
(` in Millions)
Particulars March 31, 2022 March 31, 2021
No. of SPVs sponsored by the company for securitization 12 20
transactions
Total amount of securitized assets as per the books of SPVs 19,892.33 33,031.37
sponsored by the company
Total amount of exposures retained by the company to comply with - -
MRR as on the date of Balance Sheet
Other amount of Securtized assets as per the books of SPV - 6,106.80
sponsored by the company
a) Off - Balance Sheet Exposures
First Loss - -
Others - 602.90
b) On - Balance Sheet Exposures
First Loss 2,267.29 3,096.84
Investment in PTC - -
Overcollateralization 2,364.98 2,312.07
Amount of exposures to securitization transaction other than MRR 20.67 26.94
a) Off - Balance Sheet Exposures
i) Exposures to own securitizations
First Loss - -
Others - -
(` in Millions)
Particulars March 31, 2022 March 31, 2021
ii) Exposures to third party securitizations
First Loss - -
Others - -
b) On - Balance Sheet Exposures
i) Exposures to own securitizations
First Loss - -
Others - -
ii) Exposures to third party securitizations
First Loss - -
Others - -
(B) The information on direct assignment of the Company as an originator in respect of par transaction done
during the year is given below:
(` in Millions)
Particulars March 31, 2022 March 31, 2021
Total number of loan assets under par structure 1,187,478 1,083,460
Total book value of loan assets 87,066.31 60,807.91
Sale consideration received 87,066.31 60,807.91
The information on direct assignment of the Company as an originator in respect of outstanding amount of
assets assigned under par structure is given below:
(` in Millions)
Particulars March 31, 2022 March 31, 2021
No. of transactions assigned by the Company 34 22
Total amount outstanding 79,742.37 50,241.91
Total amount of exposures retained by the company to comply with 7,974.24 4,953.93
MRR as on the date of Balance Sheet
a) Off - Balance Sheet Exposures
First Loss - -
Others - -
b) On - Balance Sheet Exposures
First Loss - -
Investment in PTC - -
Exposures to own assigned transactions - -
Amount of exposures to assigned transaction other than MRR - -
a) Off - Balance Sheet Exposures
i) Exposures to own assigned transactions
First Loss - -
Others - -
ii) Exposures to third party assigned tranactions
First Loss - -
Others - -
b) On - Balance Sheet Exposures
i) Exposures to own assigned transactions
First Loss - -
Others - -
ii) Exposures to third party assigned tranactions
First Loss - -
Others - -
257
days upto 2 month months upto & upto 6 & upto 1 year upto 3 year upto 5 year
3 months months
Deposits - - - - - - - - -
Loans & Advances* 12,449.66 14,325.64 14,105.87 30,540.17 28,442.94 34,380.50 1,905.42 1,922.57 138,072.77
Other Advances 3,829.38 2,627.41 3,287.52 660.16 - 7,020.21 - 445.56 17,870.24
Investments - - - - - 189.24 - 11,853.33 12,042.57
Borrowings (Includes foreign currency 4,863.02 5,987.08 5,294.83 17,200.33 34,415.23 67,214.46 16,267.88 11,757.75 163,000.58
borrowings)
Foreign currency assets - - - - - - - - -
Foreign currency liabilities - - - - - - - - -
* Net of ECL Provision of ` 8,329.72 Million
Note : EIR on borrowings has been considered in the last bucket.
Standalone
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(viii) No penalty has been imposed during the year by RBI or other regulators.
(ix) Details of Credit Ratings:
A) Ratings assigned by Credit Rating Agencies:
(` in Millions)
Statutory Reports
Amount Rating assigned Amount Rating assigned
CARE Ratings Non Convertible Debenture 8,250 CARE AA; Stable 8,250 CARE AA;
Limited [Double A; Negative (Double
Outlook: Stable] A; Outlook:
Negative)
CARE Ratings Long Term Bank Facilities 4,000 CARE AA; Stable 4,000 CARE AA;
Limited [Double A; Negative (Double
Financial Statements
Outlook: Stable] A; Outlook:
Negative)
CARE Ratings Subordinate Debt 1,000 CARE AA; Stable 1,000 CARE AA;
Limited [Double A; Negative (Double
Outlook: Stable] A; Outlook:
Negative)
ICRA Limited Non Convertible Debentures 88,663 [ICRA]AA ;Stable 49,033 [ICRA]
Programme AA(Negative)
reaffirmed
ICRA Limited Commercial Paper 80,000 [ICRA]A1+; 80,000 [ICRA]A1+;
programme reaffirmed reaffirmed
ICRA Limited Subordinate Debt 7,450 [ICRA]AA ;Stable 7,450 [ICRA]
Programme AA(Negative)
reaffirmed
ICRA Limited Long Term Bank Lines 57,750 [ICRA]AA ;Stable 57,750 [ICRA]
AA(Negative)
reaffirmed
ICRA Limited Long Term Principle 5,000 PP-MLD[ICRA] 5,000 PP-MLD[ICRA]AA
Protected Equity Linked AA ; Stable (Negative)
Debenture Programme reaffirmed
ICRA Limited Long Term Principle 3,640 PP-MLD[ICRA] 3,640 PP-MLD[ICRA]AA
Protected Market Linked AA ; Stable (Negative)
Debenture Programme reaffirmed
ICRA Limited Commercial Paper 80,000 [ICRA]A1+; 80,000 [ICRA]A1+;
programme (IPO financing) reaffirmed reaffirmed
ICRA Limited Non convertible debenture - - 42,490 [ICRA]AA
programme (Negative);
reaffirmed
CRISIL Limited Non Convertible Debentures 50,000 CRISIL 50,000 CRISIL
* AA/Stable AA/Stable
(Reaffirmed) (Reaffirmed)
CRISIL Limited Subordinate Debt 3,484 CRISIL 3,484 CRISIL
AA/Stable AA/Stable
(Reaffirmed) (Reaffirmed)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
ities^ Outlook: Stable) AA (Negative) to CARE AA
(Stable)
CARE Ratings Limited Subordinate Debt^ CARE AA; Stable (Double A; Change in outlook from CARE
Outlook: Stable) AA (Negative) to CARE AA
(Stable)
ICRA Non-convertible Deben- [ICRA]AA ;Stable Change in outlook from ICRA
ture Programme AA (Negative) to ICRA AA
(Stable)
Financial Statements
ICRA Non-convertible Deben- [ICRA]AA ;Stable Change in outlook from ICRA
ture Programme AA (Negative) to ICRA AA
(Stable)
ICRA Subordinated Debt [ICRA]AA ;Stable Change in outlook from ICRA
Programme AA (Negative) to ICRA AA
(Stable)
ICRA Long-term Bank Lines [ICRA]AA ;Stable Change in outlook from ICRA
AA (Negative) to ICRA AA
(Stable)
ICRA Non-convertible Deben- [ICRA]AA ;Stable Change in outlook from ICRA
ture Programme AA (Negative) to ICRA AA
(Stable)
ICRA Long-term Principal PP-MLD[ICRA]AA ; Stable Change in outlook from
Protected Equity Linked PP-MLD[ICRA]AA (Negative)
Debenture Programme to PP-MLD[ICRA]AA (Stable)
ICRA Long-term Principal PP-MLD[ICRA]AA ; Stable Change in outlook from
protected Market Linked PP-MLD[ICRA]AA (Negative)
Debenture Programme to PP-MLD[ICRA]AA (Stable)
(x) No registration has been obtained from other financial regulators.
(xi) Considering the nature of the business of the entity and transactions entered during the year ended March 31, 2022 &
March 31, 2021 following are having Nil disclosure:
a. Draw down from reserves.
b. Overseas assets (for those with joint ventures and subsidiaries abroad).
c. Off- Balance Sheet SPVs sponsored.
d. Financing of parent company products.
e. Postponement of revenue recognition.
(xii) The Company during the year ended has not exceeded single borrower limit (SGL)/ group borrower limit (GBL) while
performing its lending operations.
(xiii) Remuneration paid to Non Executive Directors:
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Mr. Arun Kumar Purwar 2.17 0.88
Mrs. Geeta Mathur 2.38 1.41
Mr. Nilesh Vikamsey 2.44 1.56
Mr. Ramakrishnan Subramanian (w.e.f September 06, 2021) 0.69 -
Mr. Vibhore Sharma (w.e.f July 01, 2021) 1.04 -
Mr. Vijay Kumar Chopra 2.50 1.51
Total 11.22 5.36
b) Concentration of Exposures
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Total Exposure to twenty largest borrowers / customers 34,474.96 33,768.54
Percentage of exposure to twenty largest borrowers / customers to 24.40% 21.61%
total exposure
c) Concentration of NPAs
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Total exposure to top four NPA accounts 1,240.09 537.64
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
(b) Addition during the year 2,740.24 2,813.84
(c) Reduction during the year (2,758.61) (4,182.13)
(d) Closing balance* 4,062.06 4,080.43
* Includes Interest of ` 397.59 million (P.Y ` 560.88 million)
(iii) Movement of Net NPAs
(a) Opening balance 1,432.46 1,157.31
(b) Addition during the year 1,605.12 1,092.40
Financial Statements
(c) Reduction during the year (974.60) (817.25)
(d) Closing balance 2,062.98 1,432.46
(iv) Movement of provision for NPAs (excluding provision on standard assets)
(a) Opening balance** 2,647.97 4,291.41
(b) Addition during the year 1,135.11 1,721.43
(c) Reduction during the year (1,784.00) (3,364.87)
(d) Closing balance** 1,999.08 2,647.97
** Includes Interest of ` 397.59 Million (P.Y ` 560.88 million)
Note: The above has been computed basis EAD for credit impaired advances.
(xvii). Disclosure of Complaints:
Particulars FY 2021-22 FY 2021-21
i. Number of complaints pending at the beginning of year 11 5
ii. Number of complaints received during the year 3,370 1,007
iii. Number of complaints redressed during the year 3,369 1,001
iv. Number of complaints pending at the end of the year 12 11
Note: It excludes any customer complaints received and redressed by Fintech Partners of the Company
264
4 Increase / Decrease in existing restructured accounts No. of borrowers - - - - - - - - - - -
Amount outstanding - - - - - 136.16 - (0.00) 0.27 136.43 136.43
Provision thereon - - - - - 156.41 - 0.10 (2.29) 154.22 154.22
5 Restructured standard advances which cease to attract higher No. of borrowers - - - - - - - - - - -
provisioning and / or additional risk weight at the end of the
FY 2021 and hence need not be shown as restructured standard
advances at the beginning of the next FY 2022
Amount outstanding - - - - - - - - - - -
Provision thereon - - - - - - - - - - -
6 Downgradations of restructured accounts during the No. of borrowers - - - - - (931) 334 - 597 - -
FY 2021-20222
Details of MSME Accounts Restructured as per instructions given by RBI in its circular dated January 1, 2019:
(` in Millions)
Sr. No. Type of Restructuring Under CDR Mechanism / SME Debt Restructuring Others Total
Mechanism
Asset Classification Standard Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total
Standard Standard
1 Restructured Accounts as on April 1 of the FY 2020 (opening No. of borrowers - - - - - 470 97 20 828 1,415 1,415
figures)*
Amount outstanding - - - - - 219.66 73.30 149.98 352.85 795.80 795.80
Provision thereon - - - - 16.89 50.33 74.91 298.05 440.18 440.18
2 Fresh restructuring during the year 2020-2021 No. of borrowers - - - - - 3,953 6 - 234 4,193 4,193
Amount outstanding - - - - - 2,259.75 3.20 - 132.35 2,395.30 2,395.30
Provision thereon - - - - - 207.73 2.41 - 111.81 321.96 321.96
3 Upgradations to restructured standard category during the FY No. of borrowers - - - - - - - - - - -
2020-2021
Amount outstanding - - - - - - - - - - -
Provision thereon - - - - - - - - - - -
4 Increase / Decrease in existing restructured accounts1 No. of borrowers - - - - - - - - - - -
Amount outstanding - - - - - (5.73) (0.33) (1.45) (1.87) (9.38) (9.38)
Provision thereon - - - - - (0.46) (0.28) (0.71) (1.52) (2.97) (2.97)
5 "Restructured standard advances which cease to attract higher No. of borrowers - - - - - - - - - - -
provisioning and / or additional risk weight at the end of the FY
2021 and hence need not be shown as restructured standard
265
Provision thereon - - - - - - - - - - -
6 Downgradations of restructured accounts during the FY 2020- No. of borrowers - - - - - (183) (34) 8 209 - -
20212
Amount outstanding - - - - - (67.83) (41.12) 44.85 56.47 (7.63) (7.63)
Provision thereon - - - - - (6.33) (23.14) 23.73 51.14 45.39 45.39
7 Fully recovered / Write-offs of restructured accounts during the No. of borrowers - - - - - (178) (57) (5) (563) (803) (803)
FY 2020-2021
Amount outstanding - - - - - (82.66) (29.56) (16.00) (273.75) (401.97) (401.97)
Provision thereon - - - - - (3.87) (24.98) (9.97) (234.45) (273.26) (273.26)
8 Restructured Accounts as on March 31 of the FY 2021(closing No. of borrowers - - - - - 4,062 12 23 708 4,805 4,805
figures)*
Amount outstanding - - - - - 2,323.19 5.49 177.38 266.05 2,772.11 2,772.12
Provision thereon including provision - - - - - 213.96 4.34 87.96 225.03 531.30 531.30
for diminution in fair value
* Excluding the figures of Standard Restructured Advances which do not attract higher provisioning or risk weight (if applicable).
1
PD & LGD rate of last year has been considered for calculation
2
For accounts which have transitioned from one asset category to another, Mar’20 provision has been considered for previous asset category and Mar’21 Provision has been considered for updated asset category
Details of MSME Accounts Restructured as per instructions given by RBI in its circular dated January 1, 2019:
No. of Accounts Restructured Amount (` in Million)
3,004 1,660.14
Standalone
Liability side:
a) Debentures
Secured 24,750.96 1,094.58 - 25,845.54 23,468.81 1,097.55 - 24,566.36
Unsecured (other 13,047.41 648.98 - 13,696.39 16,112.47 1,261.51 - 17,373.98
than falling within the
meaning of public
deposits)
(b) Deferred credits - - - - - - - -
(c) (i) Term loans from 67,063.88 78.32 - 67,142.20 40,286.95 54.65 - 40,341.60
Banks
(ii) Term loans from 7,538.87 53.91 - 7,592.78 7,311.00 53.91 - 7,364.91
Financial Institutions
(iii) Secured Medium 24,450.29 757.00 - 25,207.29 28,037.95 842.42 - 28,880.37
Term Notes
(d) Inter–corporate loans - - - - - - - -
and borrowings
(e) Commercial Paper 0.00 - - 0.00 - - - -
(f) Other Loans 3,200.94 0.51 - 3,201.45 5,433.07 6.16 - 5,439.24
(Overdraft)
(g) Securitization 19,774.25 - - 19,774.25 39,034.07 - - 39,034.07
Total 159,826.60 2,633.30 - 162,459.90 159,684.33 3,316.21 - 163,000.54
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
2. Break – up of Loans and Advances including Bills Receivables [Other than included in (4) below]:
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Assets side (Gross Value)
(a) Secured 114,784.74 140,384.29
Statutory Reports
(b) Unsecured 20,008.96 23,888.41
Total 134,793.70 164,272.70
Note: The above include overdue principal.
3. Break- up of leased assets and stock on hire and other assets counting towards AFC activities:
(` in Millions)
Particulars As at As at
Financial Statements
March 31, 2022 March 31, 2021
(i) Lease assets including lease rentals under sundry debtors
(a) Financial lease - -
(b) Operating lease - -
(ii) Stock on hire including hire charges under sundry debtors
(a) Assets on hire - -
(b) Repossessed Assets - -
(iii) Other Loans counting towards AFC activities
(a) Loans where assets have been repossessed - -
(b) Loans other than (a) above - -
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Current Investments :
1 Quoted :
(i) Shares:
(a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds - -
(iii) Units of mutual funds 0.04 -
(iv) Government Securities
(v) Others (Certificate of Deposits) - -
2 Unquoted:
(i) Shares:
(a) Equity - -
(b) Preference - -
(ii) Debentures and Bonds - -
(iii) Units of mutual funds - -
(iv) Government Securities - -
(v) Others - -
Total (A) 0.04 -
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
(ii) Debentures and Bonds - -
(iii) Units of mutual funds - -
(iv) Government Securities - -
(v) Others (please specify) - -
2 Unquoted:
(i) Shares:
(a) Equity of subsidiary companies 14,103.33 11,853.33
(b) Preference of subsidiary companies - -
(ii) Debentures and Bonds - -
(iii) Units of mutual funds - 118.18
(iv) Government Securities - -
(v) Others
(a) Security Receipts 833.00 -
(b) Alternative Investment Funds 9,552.17 71.06
Total (B) 24,488.50 12,042.57
Grand Total (A+B) 24,488.54 12,042.57
5. Borrower Group-wise Classification of all assets financed as in (2) and (3) above:
(` in Millions)
Category As at March 31,2022 As at March 31,2021
Secured Unsecured Total Secured Unsecured Total
6. Investor group wise classification of all investments (Current and Long Term) in shares and securities (Both quoted
and unquoted) :
(` in Millions)
Category As at March 31,2022 As at March 31,2021
Market Value Book value Market Value Book value
Breakup or fair (Net of provisions) Breakup or fair (Net of provisions)
value or NAV value or NAV
1 Related Parties
a) Subsidiaries* 14,103.33 14,103.33 11,853.33 11,853.33
b) Companies in the same group - - - -
c) Other related parties - - - -
2 Other than related parties 10,385.21 10,385.21 189.24 189.24
Total 24,488.54 24,488.54 12,042.57 12,042.57
* Includes Investments in equity shares of subsidiaries carried at cost and fair value is not disclosed
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
7. Other Information:
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
(i) Gross Non-Performing Assets
(a) Related parties - -
Statutory Reports
(b) Other than related parties* 4,062.06 4,080.43
(ii) Net Non-Performing Assets
(a) Related parties - -
(b) Other than related parties 2,062.98 1,432.46
(iii) Assets acquired in satisfaction of debt (Fair Value) 1,384.28 1,384.28
* Includes Interest of ` 397.59 Million (P.Y ` 560.88 Million)
(xxi) P
articulars as per RBI Directions for auction details (As required in terms of paragraph 26 (4)(d) of Master Direction
- Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking
Financial Statements
Company (Reserve Bank) Directions, 2016 dated September 01, 2016:
Particulars March 31, 2022 March 31, 2021
Number of gold loan accounts 309,450 57,058
Outstanding amount (` Million) 21,149.00 3,099.00
Amount recovered in auction (` Million) 20,875.20 3,083.30
None of the group companies have participated in the above auctions. The above details have been compiled by the
Management and relied upon by the auditors.
50. FRAUD
During the year under review, the Company had come across frauds totalling to ` 118.78 Million (P.Y ` 138.87 Million) in
respect of its lending operations. Out of the above, frauds amounting to ` 13.91 Million (P.Y ` 12.30 Million) has already
been recovered. Suitable action has been taken by the Company to recover the balance amounts.
(` in Millions)
Name of Related Party Outstanding as on Maximum Outstanding
March 31, 2022 during the year
5paisa Capital Limited - 3,500.00
IIFL Management Services Limited - 500.00
IIFL Home Finance Limited - 7,790.00
IIFL Securities Limited - 5,400.00
IIFL Facilities Services Limited - 4,620.00
IIFL Samasta Finance Limited (Formerly Samasta Microfinance Limited) - 3,500.00
(` in Millions)
Name of Related Party Outstanding as on Maximum Outstanding
March 31, 2021 during the year
5paisa Capital Limited - 3,350.00
IIFL Home Finance Limited - 2,260.00
IIFL Securities Limited - 800.00
IIFL Facilities Services Limited - 6,640.00
IIFL Samasta Finance Limited (Formerly Samasta Microfinance Limited) - 3,700.00
52. DISCLOSURE PURSUANT TO SEBI CIRCULAR NO. SEBI/HO/DDHS/CIR/P/2018/144 DATED NOVEMBER 26, 2018
FOR FUND RAISING BY ISSUANCE OF DEBT SECURITIES BY LARGE ENTITIES:
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Outstanding borrowing 162,459.90 163,000.54
Highest Credit Rating During the previous FY along with name of the Credit BWR AA+ BWR AA+
Rating Agency (Pronounced as (Pronounced as
BWR Double BWR Double
A Plus) Outlook: A Plus) Outlook:
Negative by Negative by
Brickwork Ratings Brickwork Ratings
India Pvt Ltd India Pvt Ltd
(` in Millions)
Details of the borrowings FY 2021-22 FY 2020-21
i. 2 years block period FY 2021-2022 and N.A
FY 2022-2023
ii. Incremental borrowing done (a) 52,129.88 34,960.35
iii.
Mandatory borrowing to be done through issuance of debt securities 13,032.47 8,740.09
(b) = (25% of a)
iv. Actual borrowings done through debt securities in FY (c) 15,629.88 15,960.35
v. Shortfall in the mandatory borrowing through debt securities, if any Nil Nil
vi. Reasons for short fall, if any, in mandatory borrowings through debt securities N.A N.A
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Note : Total Liabilities represent Total Liabilities as per Balance Sheet less Total Equity
(ii)
Top 20 large deposits N.A (N.A)
Financial Statements
* The above table excludes details of benefeciary holders of the medium term note bonds
(iv) Funding Concentration based on significant instrument/product:
(` in Millions)
Name of the instrument/product Amount % of Total Liabilities
Non Convertible Debentures 64,749.22 34.61%
(70,820.72) (38.51%)
Term Loans 74,735.50 39.95%
(47,712.68) (25.94%)
Securitisation 19,774.25 10.57%
(39,034.07) (21.23%)
Commercial Paper 0.00 0.00%
0.00 (0.00%)
Cash Credit / Overdraft Facilties 3,200.94 1.71%
(5,433.07) (2.95%)
Note : Total Liabilities represent Total Liabilities as per Balance Sheet less Total Equity
(v) Stock Ratios:
Particulars As at As at
March 31, 2022 March 31, 2021
Commercial papers as a % of total liabilities 0.00% 0.00%
Commercial papers as a % of total assets 0.00% 0.00%
Commercial papers as a % of total public funds 0.00% 0.00%
Non-convertible debentures (original maturity of less than one year) as a % Nil Nil
of total liabilities
Non-convertible debentures (original maturity of less than one year) as a % Nil Nil
of total assets
Non-convertible debentures (original maturity of less than one year) as a % Nil Nil
of total public funds
Other short-term liabilities* as a % of total liabilities 10.83% 9.37%
Other short-term liabilities* as a % of total assets 8.76% 7.76%
*Other short-term liabilities as a % of total public funds 12.47% 10.58%
* Short Term liabilities means total of current liabilities as per note 44.1 & 44.2 to the financial statements as reduced by
current portion of Debt Securities,Borrowings (other than debt securities) and Subordinated Liabilities.
(vi) Institutional set-up for Liquidity Risk Management
The Board of Directors of the Company has an overall responsibility and oversight for the management of all the risks,
including liquidity risk, to which the Company is exposed to in the course of conducting its business.
The Board approves the governance structure, policies, strategy and the risk limits for the management of liquidity risk.
The Board of Directors approves the constitution of the Risk Management Committee (RMC) for the effective supervision,
evaluation, monitoring and review of various aspects and types of risks, including liquidity risk, faced by the Company.
Further, the Board of Directors also approves constitution of Asset Liability Committee (ALCO), which functions as the
strategic decision-making body for the asset-liability management of the Company from risk return perspective and
within the risk appetite and guard-rails approved by the Board.
The main objective of ALCO is to assist the Board and RMC in effective discharge of the responsibilities of asset-liability
management, market risk management, liquidity and interest rate risk management and also to ensure adherence to risk
tolerance/limits set up by the Board.
ALCO provides guidance and directions in terms of interest rate, liquidity, funding sources, and investment of surplus
funds. ALCO meetings are held once in a month or more frequently as warranted from time to time.
Doubtful
Upto 1 Year Stage 3 773.60 206.19 979.79 326.46 206.19 532.65 447.14 168.22 364.43
1 to 3 years Stage 3 143.83 30.13 173.96 111.13 30.14 141.27 32.69 53.37 87.90
273
Loss (Sub- Total -(C)) Stage 3 - - - - - - - - -
Subtotal of NPA (Sub- Total
3,664.46 397.62 4,062.05 1,601.47 397.62 1,999.09 2,062.96 547.26 1,451.83
-(A+B+C))
As on 31 March 2021
(` in Millions)
Asset Classification as per RBI Asset Gross Carrying Amount as per Loss Allowances (Provisions) as Net Carrying Provision Difference
Norms Classification Ind AS required under Ind AS 109 Amount Required as between
as per Ind AS per IRACP Ind AS 109
109 norms provisions
and IRACP
norms
(1) (2) (3) (4) (5)=(3)-(4) (6) (7)=(4)-(6)
Principal Others Total Principal Others Total Total Total Total
Stage 1 119,479.67 7,041.26 126,520.93 3,545.11 528.19 4,073.30 122,447.63 826.93 3,246.38
Standard
Stage 2 23,403.27 1,888.39 25,291.66 1,070.30 132.42 1,202.73 24,088.93 93.61 1,109.11
Subtotal 142,882.94 8,929.65 151,812.59 4,615.41 660.61 5,276.03 146,536.56 920.54 4,355.49
274
Non Performing Assets (NPA)
Substandard (Sub- Total -(A)) Stage 3 2,794.32 373.78 3,168.10 1,574.76 373.78 1,948.53 1,219.57 295.26 1,653.27
Doubtful
Upto 1 Year Stage 3 465.61 97.74 563.35 366.58 97.74 464.32 99.03 128.10 336.22
1 to 3 years Stage 3 224.23 56.76 280.99 119.79 56.76 176.55 104.44 127.96 48.59
More than 3 years Stage 3 35.38 32.60 67.98 25.96 32.60 58.56 9.42 35.28 23.28
Doubtful (Sub- Total -(B)) 725.22 187.10 912.32 512.33 187.10 699.43 212.89 291.34 408.09
55. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA CIRCULAR NO. RBI/2019-20/88 DOR.NBFC (PD) CC. NO.102/03.10.001/2019-20 DATED NOV 04, 2019:
Liquidity Risk Management Framework
As on 31 March 2022
(` in Millions)
Sr. Particulars As at March 31, 2022 As at December 31, 2021 As at September 30, 2021 As at June 30, 2021
No. Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value
(average) (average) (average) (average) (average) (average) (average) (average)
1 Total High Quality Liquid Assets (HQLA) 13,530.93 13,530.93 13,989.13 13,989.13 6,609.20 6,609.20 6,692.57 6,692.57
Cash and Bank Balance 10,375.17 10,375.17 11,876.55 11,876.55 6,181.39 6,181.39 3,310.33 3,310.33
Unencumbered Fixed Deposits 3,155.77 3,155.77 2,112.59 2,112.59 427.80 427.80 3,382.24 3,382.24
Cash Outflows
2 Deposits (for deposit taking companies) - - - - - - - -
3 Unsecured wholesale funding - - 326.09 375.00 4,842.39 5,568.75 - -
4 Secured wholesale funding 2,725.85 3,134.72 2,618.84 3,011.66 1,123.35 1,291.85 2,180.29 2,507.33
5 Additional requirements, of which:
(i) Outflows related to derivative exposures and - - - - - - - -
275
(ii) Outflows related to loss of funding on debt - - - - - - - -
products
(iii) Credit and liquidity facilities 6,493.92 7,468.01 3,762.14 4,326.47 2,191.04 2,519.69 996.39 1,145.84
6 Other contractual funding obligations 17,857.88 20,536.56 19,682.40 22,634.76 18,915.03 21,752.28 18,835.25 21,660.54
7 Other contingent funding obligations - - - - - - - -
8 Total Cash outflows 27,077.65 31,139.29 26,389.46 30,347.88 27,071.81 31,132.58 22,011.93 25,313.71
Cash Inflows
9 Secured lending - - - - - - - -
10 Inflows from fully performing exposures 10,935.29 8,201.47 12,981.57 9,736.17 24,153.67 18,115.26 12,037.95 9,028.46
11 Other cash inflows 15,109.41 11,332.06 13,071.37 9,803.53 10,391.32 7,793.49 9,692.34 7,269.25
12 Total Cash Inflows 26,044.70 19,533.53 26,052.94 19,539.70 34,544.99 25,908.74 21,730.29 16,297.72
276
3 Unsecured wholesale funding - - 4,196.64 4,826.14 - - 1,700.00 1,955.00
4 Secured wholesale funding 15,694.31 18,048.46 1,385.43 1,593.25 2,873.77 3,304.84 4,358.58 5,012.37
5 Additional requirements, of which
(i) Outflows related to derivative exposures - - - - - - - -
and other collateral requirements
(ii) Outflows related to loss of funding on - - - - - - - -
debt products
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Qualitative Disclosure
Liquidity Coverage Ratio (LCR) aims to ensure that NBFC’s maintains an adequate level of unencumbered High Quality
Liquidity Asset (HQLAs) that can be converted into cash to meet liquidity needs for a 30 calendar day time horizon under a
significantly severe liquidity stress scenario.
The Company has robust liquidity risk management framework in place that ensures sufficient liquidity including a cushion
of unencumbered, high quality liquid assets, to withstand a range of stress events,including those involving the loss or
Statutory Reports
impairment of both unsecured and secured funding sources. The Company has implemented the LCR framework and has
maintained LCR well above the regulatory threshold.
HQLA comprises of unencumbered Bank Balances and Fixed Deposit,Cash in Hand, Liquid Investments after appropriate
haircut. The Company maintains sufficient balance of Cash and Bank Balance and liquid Investments which can be easily
liquidated in times of stress.
Liquidity Coverage Ratio results drive by inflow of next 30 days receivable on loans and advances and corresponding outflow
over the next 30 days towards borrowings and other liabilities.
Financial Statements
56. DISCLOSURE PURSUANT TO (SECURITIZATION OF STANDARD ASSETS) RESERVE BANK OF INDIA CIRCULAR NO./
DIRECTIONS, 2021 RBI/DOR/2021-22/85 DOR.STR.REC.53/21.04.177/2021-22 - SEPTEMBER 24, 2021
(` in Millions)
Sr. Particulars As on As on
No. March 31, 2022 March 31, 2021
1 No of SPEs holding assets for securitization transactions originated by the 12 20
originator
(only the SPVs relating to outstanding securitization exposures to be
reported here)
2 Total amount of securitized assets as per books of the SPEs 19,892.33 33,031.37
3 Total amount of exposures retained by the originator to comply with MRR - -
as on the date of balance sheet
Other amount of Securtized assets as per the books of SPV sponsored by - 6,106.80
the company
a) Off-balance sheet exposures
• First loss - -
• Others - 602.90
b) On-balance sheet exposures
• First loss - -
• Others - -
4 Amount of exposures to securitization transactions other than MRR -
a) Off-balance sheet exposures -
i) Exposure to own securitizations
• First loss - -
• Others - -
ii) Exposure to third party securitizations
• First loss - -
• Others - -
b) On-balance sheet exposures
i) Exposure to own securitizations
• First loss 2,267.29 3,096.84
• Others 2,385.65 2,339.01
ii) Exposure to third party securitizations
• First loss - -
• Others - -
5 Sale consideration received for the securitized assets and gain/loss on sale 16,820.00 31,650.00
on account of securitization
(` in Millions)
Sr. Particulars As on As on
No. March 31, 2022 March 31, 2021
6 Outstanding value of services provided by way of post-securitization asset 2.18 5.75
servicing.
7 Performance of facility provided:-
Credit enhancement
(a) Amount paid 2,267.29 3,096.84
(b) Repayment received Nil Nil
(c) Outstanding amount 2,267.29 3,096.84
% of total value of facility provided 7.09% 6.06%
8 Average default rate of portfolios observed in the past. Nil Nil
9 Amount and number of additional/top up loan given on same underlying Nil Nil
asset.
10 Investor complaints (a) Directly/Indirectly received and; (b) Complaints Nil Nil
outstanding
57. DISCLOSURE PURSUANT TO RESERVE BANK OF INDIA CIRCULAR NO. RBI/2020-21/16 DOR.NO.BP.
BC/3/21.04.048/2020-21 DATED AUGUST 06, 2020 ON RESOLUTION FRAMEWORK FOR COVID-19-RELATED
STRESS:
As at March 31, 2022
(` in Millions)
Type of Borrower Exposure Of (A), aggregate Of (A) amount Of (A) amount Exposure
to accounts debt that slipped written off paid by the to accounts
classified into NPA borrowers during classified
as Standard the half-year as Standard
consequent to ended March 31, consequent to
implementation of 2022 implementation of
resolution plan (A) resolution plan
Personal Loans 45.88 17.24 11.30 4.40 72.38
Corporate Loans * 3,909.81 461.46 501.88 1,824.33 2,004.95
of which, MSME's 2,227.66 461.30 467.76 201.95 1,893.64
Others 5.28 0.82 - 2.79 2.92
Total 3,960.98 479.53 513.18 1,831.53 2,080.25
*As defined in Section 3(7) of the Insolvency and Bankruptcy Code, 2016
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
58. DISCLOSURE PURSUANT TO (TRANSFER OF LOAN EXPOSURES) RESERVE BANK OF INDIA CIRCULAR NO. RBI/
DOR/2021-22/86 DOR.STR.REC.51/21.04.048/2021-22 DATED SEPTEMBER 24, 2021:
(a) Details of transferred through assignment in respect of loans not in default:
Particulars FY 2021-22
Count of Loan accounts assigned 1,187,478
Amount of loan accounts assigned (` in Million) 96,740.34
Weighted average maturity (in months) 18
Statutory Reports
Weighted average holding period (in months) 4
Retention of beneficial economic interest 10%
Coverage of tangible security coverage 100%
Rating-wise distribution of rated loans Unrated
Break-up of loans transferred / acquired through assignment / novation and loan participation All Assignment
deals
Instances where we have agreed to replace loans transferred to transferee(s) or pay damages Nil
arising out of any representation or warranty
Financial Statements
(b) Details of stressed loans transferred during the year:
(` in Millions)
Particulars As on March 31, 2022
To ARCs To permitted To other
NPA SMA transferees transferees
Number of accounts 2,938 1 - -
Aggregate principal outstanding of loans transferred 2,992.59 450.00 - -
Weighted average residual tenor of the loans transferred 21.47 27.50 - -
Net book value of loans transferred (at the time of transfer) 2,499.87 597.05 - -
Aggregate consideration 5,480.00 - -
Additional consideration realized in respect of accounts - - - -
transferred in earlier years
Excess Provision reversed on account of transter - - - -
Note:- In addition to the above, the Company has transferred 6,332 additional loans which have been written off, having
an amount outstanding of ` 12,342.68 Million which were part of above consideration.
No stressed loans were transferred during the previous year ended March 31, 2021.
(c) The Company has not acquired any stressed loan during the year and previous year.
(d) Details on recovery ratings assigned for Security Receipts (SR) as on 31st March, 2022:
Recovery Rating^ Anticipated recovery as per recovery rating Book Value (` in Million)
RR1* 100%-150% 3,620.91
Unrated # - 833.00
Total - 4,453.91
^ Recovery rating is as assigned by external rating agency
# Pursuant to regulatory norms, the ARC shall obtain initial rating of SRs from an approved credit rating agency within a
period of six months from the date of acquisition of assets by it.
* Fully provided for
59.
Previous year’s figures are regrouped, reclassified and rearranged wherever considered necessary to confirm to current
year’s presentation.
Place: Mumbai
Dated: April 28, 2022
Corporate Overview
Sr. Key Audit Matter Response to Key Audit Matter
no
1 Information technology (IT) systems used in financial We obtained an understanding of the Group’s IT control
reporting process. environment relevant to the audit.
The Group’s operational and financial processes are We tested the design, implementation and operating
dependent on IT systems due to large volume of effectiveness of the Group’s General IT controls over the key
Statutory Reports
transactions that are processed daily. IT systems which are critical to financial reporting.
We therefore identified IT systems and controls over We also tested key automated and manual controls and logic
financial reporting as a key audit matter for the Group. for system generated reports relevant to the audit that would
materially impact the financial statements.
In addition to above, we have also relied on the work of the
internal auditors and system auditors.
2 Impairment of Financial Assets held at amortised cost: We evaluated appropriateness of the impairment principles
used by management based on the requirements of Ind AS
Financial Statements
Since the loans and advances form a major portion of
109, our business understanding.
the Group’s assets, and due to the significance of the
judgments used in classifying loans and advances We assessed the design and implementation of key internal
into various stages as stipulated in Indian Accounting financial controls over loan impairment process used to
Standard (IND AS) 109 and the management estimation calculate the impairment charge.
of the related impairment provisions this is considered
We evaluated management’s controls over collation of
to be a key audit matter.
relevant information used for determining estimates for
The Group’s impairment allowance is derived from management overlays.
estimates including the historical default and loss ratios.
We tested review controls over measurement of impairment
Management exercises judgement in determining the
allowances and disclosures in financial statements.
quantum of loss based on a range of factors
The most significant areas are:
- Segmentation of loan book
- Determination of exposure at default
- Loan staging criteria
- Calculation of probability of default / Loss given
default
- Consideration of probability weighted scenarios and
forward looking macro-economic factors
The application of ECL model requires several data
inputs. This increases the risk of completeness and
accuracy of the data that has been used to create
assumptions in the model.
Refer note 37A.3 to the Financial Statements.
Corporate Overview
financial controls system in place and the operating requirements regarding independence, and to communicate
effectiveness of such controls. with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
• Evaluate the appropriateness of accounting policies
where applicable, related safeguards.
used and the reasonableness of accounting estimates
and related disclosures made by management. From the matters communicated with those charged with
governance, we determine those matters that were of
• Conclude on the appropriateness of management’s
Statutory Reports
use of the going concern basis of accounting and, most significance in the audit of the consolidated financial
based on the audit evidence obtained, whether statements of the current period and are therefore the key
a material uncertainty exists related to events or audit matters. We describe these matters in our auditor’s
conditions that may cast significant doubt on the report unless law or regulation precludes public disclosure
ability of the Group to continue as a going concern. about the matter or when, in extremely rare circumstances,
If we conclude that a material uncertainty exists, we we determine that a matter should not be communicated
are required to draw attention in our auditor’s report in our report because the adverse consequences of doing
Financial Statements
to the related disclosures in the consolidated financial so would reasonably be expected to outweigh the public
statements or, if such disclosures are inadequate, interest benefits of such communication.
to modify our opinion. Our conclusions are based Other Matters
on the audit evidence obtained up to the date of our
The financial statements of 3 wholly owned subsidiary
auditor’s report. However, future events or conditions
companies have been audited by other auditors. The
may cause the Group to cease to continue as a going
financial statements of 2 subsidiary trusts have been
concern.
audited by one of the joint statutory auditors of the
• Evaluate the overall presentation, structure and content Holding company. The financial statements of the said
of the consolidated financial statements, including the subsidiary companies and trusts reflect total assets of
disclosures, and whether the consolidated financial Rs. 244,170.99 million as at March 31, 2022, Group’s
statements represent the underlying transactions and share of total revenue of Rs. 33,035.96 million, Group’s
events in a manner that achieves fair presentation. share of total net profit of Rs. 5,178.68 million and
• Obtain sufficient appropriate audit evidence regarding Group’s share of total comprehensive income of Rs.
the financial information of the entities or business 5,369.44 million and net cash inflows Rs. 12,927.42
activities within the Group to express an opinion on the million for the year ended on the date as considered in
consolidated financial statements. We are responsible the consolidated financial statements. The reports of
for the direction, supervision and performance of auditors of the said subsidiary companies and trusts
the audit of the financial statements of such entities have been furnished to us by the Management and our
included in the consolidated financial statements opinion on the consolidated financial statements, in so
of which we are the independent auditors. For the far as it relates to the amounts and disclosures included
other entities included in the consolidated financial in respect of these subsidiary companies and trusts, and
statements, which have been audited by other auditors, our report in terms of sub-section (3) and (11) of section
such other auditors remain responsible for the 143 of the Act, in so far as it relates to the aforesaid
direction, supervision and performance of the audits subsidiary companies is based solely on the reports of
carried out by them. We remain solely responsible for the other auditors/ reports of one of the joint statutory
our audit opinion. auditors of the Holding Company.
We communicate with those charged with governance of Our opinion on the consolidated financial statements, and
the Holding Company and such other entities included in our report on Other Legal and Regulatory Requirements
the consolidated financial statements of which we are the below, is not modified in respect of the above matters with
independent auditors regarding, among other matters, the respect to our reliance on the work done and the reports of
planned scope and timing of the audit and significant audit the other auditors.
findings, including any significant deficiencies in internal
The Consolidated Financial Statements of the company for
control that we identify during our audit.
the previous year ended March 31,2021 were audited by one
We also provide those charged with governance with a of the current joint statutory auditors who had expressed
statement that we have complied with relevant ethical unmodified opinion vide their report dated May 06,2021.
d)
In our opinion, the aforesaid consolidated iv. (a)
The respective Managements of the
financial statements comply with the Accounting Holding Company, its subsidiaries
Standards specified under Section 133 of the Act. which are companies incorporated
e)
On the basis of the written representations in India, whose financial statements
received from the directors of the Holding have been audited under the Act, have
Company as on 31st March, 2022 taken on record represented to us that, to the best of
by the Board of Directors of the Holding Company their knowledge and belief, no funds
and its subsidiary company incorporated in India, have been advanced or loaned or
none of the directors of the Group companies invested (either from borrowed funds
incorporated in India is disqualified as on 31st or share premium or any other sources
March, 2022 from being appointed as a director or kind of funds) by the company to or
in terms of Section 164(2) of the Act. in any other person or entity, including
foreign entity (“Intermediaries”),
f) With respect to the adequacy of internal financial with the understanding, whether
controls over financial reporting of the Group and recorded in writing or otherwise,
the operating effectiveness of such controls, refer that the Intermediary shall, directly
to our separate report in Annexure. or indirectly lend or invest in other
g) With respect to the other matters to be included persons or entities identified in any
in the Auditor’s Report in accordance with the manner whatsoever by or on behalf of
requirements of section 197(16) of the Act, as the Holding Company, its subsidiaries
amended: (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on
In our opinion and to the best of our information
behalf of the Ultimate Beneficiaries;
and according to the explanations given to us, the
remuneration paid by the holding Company and its (b)
The respective Managements of the
subsidiary incorporated in India to its managing Holding Company, its subsidiaries
director during the year is in accordance with the which are companies incorporated
provisions of section 197 of the Act. in India, whose financial statements
Corporate Overview
have been audited under the Act, have v. The dividend declared or paid during the year
represented to us that, to the best of by the Holding Company is in compliance
their knowledge and belief, no funds with section 123 of the Companies Act,
have been received by the Holding 2013.
Company, its subsidiaries from any 2. With respect to the matters specified in paragraphs
person or entity, including foreign 3 (xxi) and 4 of the Companies ( Auditor’s Report
Statutory Reports
entity (“Funding Parties”), with the Order, 2020 ( the “Order”/ “CARO” ) issued by Central
understanding, whether recorded in Government in terms of Section 143(11) of the Act,
writing or otherwise, that the Holding to be included in the Auditors report, according to the
Company, its subsidiaries shall information and explanation given to us, and based on
directly or indirectly, lend or invest in the CARO report issued by us for the Holding Company
other persons or entities identified and by the statutory auditors of the three subsidiary
in any manner whatsoever by or on which are companies incorporated in India, included in
behalf of the Funding Party (“Ultimate the consolidated financial statement of the Company,
Financial Statements
Beneficiaries”) or provide any to which reporting under CARO is applicable, we report
guarantee, security or the like on behalf that there are no qualifications or adverse remarks in
of the Ultimate Beneficiaries; and these CARO reports.
(c) In our opinion and based on the audit
procedures we have considered
reasonable and appropriate in the
For V Sankar Aiyar & Co. For Chhajed & Doshi
circumstances performed by us on
Chartered Accountants Chartered Accountants
the Holding Company, its subsidiaries
(FRN: 109208W) (FRN: 101794W)
which are companies incorporated in
India whose financial statements have G. Sankar M. P. Chhajed
been audited under the Act, nothing Partner Partner
has come to our notice that has caused M. No.046050 M. No. 049357
us to believe that the representations Place: Mumbai Place: Mumbai
under sub-clause (a) and (b) contain Date: April 28, 2022 Date: April 28, 2022
any material misstatement. UDIN: 22046050AHZCTN1085 UDIN: 22049357AHZGMJ7348
Corporate Overview
of the internal financial controls over financial reporting OTHER MATTERS
to future periods are subject to the risk that the internal
Our aforesaid reports under section 143(3)(i) of the Act on
financial control over financial reporting may become
the adequacy and operating effectiveness of the internal
inadequate because of changes in conditions, or that the
financial controls over financial reporting in so far as it
degree of compliance with the policies or procedures may
relates to the subsidiary company incorporated in India, is
deteriorate.
based solely on the corresponding report of the auditor of
Statutory Reports
OPINION such company incorporated in India.
In our opinion to the best of our information and according Our opinion is not modified in respect of the above matters.
to the explanations given to us and based on the
consideration of the reports of the other auditors referred
to in the Other matters paragraph below , the Holding
Company and subsidiary company incorporated in India For V Sankar Aiyar & Co. For Chhajed & Doshi
have, in all material respects, an adequate internal financial Chartered Accountants Chartered Accountants
Financial Statements
controls system over financial reporting and such internal (FRN: 109208W) (FRN: 101794W)
financial controls over financial reporting were operating
G. Sankar M. P. Chhajed
effectively as at March 31, 2022 based on the internal
Partner Partner
control over financial reporting criteria established by the
M. No.046050 M. No. 049357
Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Place: Mumbai Place: Mumbai
Financial Controls Over Financial Reporting issued by the Date: April 28, 2022 Date: April 28, 2022
Institute of Chartered Accountants of India. UDIN: 22046050AHZCTN1085 UDIN: 22049357AHZGMJ7348
(` in Millions)
Particulars Notes As at As at
March 31, 2022 March 31, 2021
ASSETS
[1] Financial assets
(a) Cash and cash equivalents 4 62,116.40 26,429.02
(b) Bank balance other than (a) above 5 19,452.94 21,411.54
(c) Derivative financial instruments 6 742.81 503.87
(d) Receivables
(i) Trade receivables 7 1,831.95 1,922.77
(ii) Other receivables 7 158.00 5.10
(e) Loans 8 336,928.94 335,331.60
(f) Investments 9 11,921.61 315.71
(g) Other financial assets 10 9,237.85 4,903.70
442,390.50 390,823.31
[2] Non-financial assets
(a) Current tax assets (net) 2,341.66 2,628.37
(b) Deferred tax assets (net) 11 2,858.11 3,111.43
(c) Investment property 12 2,951.94 2,710.60
(d) Property, plant and equipment 13 1,505.22 1,042.92
(e) Capital work-in-progress 13.1 56.44 65.61
(f) Right to use assets 14 3,275.30 2,985.99
(g) Other intangible assets 15 21.12 11.45
(h) Other non-financial assets 16 3,525.95 3,150.01
(i) Assets held for sale 17 175.51 139.46
16,711.25 15,845.84
Total Assets 459,101.75 406,669.15
LIABILITIES AND EQUITY
Liabilities
[1] Financial liabilities
(a) Derivative financial instruments 6 1,643.91 1,565.76
(b) Payables
(I) Trade payables 18
(i) total outstanding dues of micro enterprises and small
enterprises
(ii) total outstanding dues of creditors other than micro 1,424.27 1,093.91
enterprises and small enterprises
(II) Other payables
(i) total outstanding dues of micro enterprises and small
enterprises
(ii) total outstanding dues of creditors other than micro 99.06 -
enterprises and small enterprises
(c) Finance lease obligation 14 3,606.78 3,265.02
(d) Debt securities 19 78,380.78 83,303.50
(e) Borrowings (other than debt securities) 20 253,190.28 216,243.58
(f) Subordinated liabilities 21 25,680.49 23,019.28
(g) Other financial liabilities 22 28,206.34 20,913.77
392,231.91 349,404.82
[2] Non-financial liabilities
(a) Current tax liabilities (net) 502.09 1,024.39
(b) Provisions 23 641.07 495.75
(c) Other non-financial liabilities 24 1,029.43 1,809.95
2,172.59 3,330.09
Total Liabilities 394,404.50 352,734.91
[3] Equity
(a) Equity share capital 25 759.20 757.68
(b) Other equity 25.1 63,879.09 53,117.45
(c) Non-controlling interest 25.1 58.96 59.11
64,697.25 53,934.24
Total Liabilities and Equity 459,101.75 406,669.15
See accompanying notes forming part of the financial statements 1 - 47
In terms of our report attached For and on behalf of the Board of Directors
For V Sankar Aiyar & Co. For Chhajed & Doshi of IIFL FINANCE LIMITED
Chartered Accountants Chartered Accountants
Firm Registration No. 109208W Firm Registration No. 101794W
G. Sankar M.P. CHHAJED NIRMAL JAIN R. VENKATARAMAN
Partner Partner Managing Director Joint Managing Director
Membership No. 046050 Membership No. 049357 DIN : 00010535 DIN : 00011919
Place: Mumbai RAJESH RAJAK SNEHA PATWARDHAN
Dated: April 28, 2022 Chief Financial Officer Company Secretary
Corporate Overview
FOR THE YEAR ENDED MARCH 31, 2022
(` in Millions)
Sr. Particulars Notes Year ended Year ended
No March 31, 2022 March 31, 2021
Revenue from operations
(i) Interest income 26.1 61,948.69 54,212.05
(ii) Dividend income 26.2 0.01 59.44
(iii) Fees and commission income 27 1,531.99 1,112.55
(iv) Net gain on fair value changes 28 770.69 1,716.05
Statutory Reports
(v) Net gain on derecognition of financial instruments under 31 4,112.27 1,297.66
amortized cost category
(I) Total revenue from operations 68,363.65 58,397.75
(II) Other income 29 1,699.14 1,499.14
(III) Total Income (I+II) 70,062.79 59,896.89
Expenses
(i) Finance costs 30 29,910.05 26,258.27
(ii) Net loss on derecognition of financial instruments under 31 9,042.17 6,482.98
amortized cost category
(iii) Impairment on financial instruments 32 (167.40) 5,203.35
Financial Statements
(iv) Employee benefits expenses 33 9,307.33 7,230.91
(v) Depreciation, amortization and impairment 12, 13, 1,216.98 1,056.76
14 & 15
(vi) Others expenses 34 5,393.82 3,616.78
(IV) Total Expenses (IV) 54,702.95 49,849.05
(V) Profit before tax (III+IV) 15,359.84 10,047.84
(VI) Tax expense:
(1) Current tax 35 3,277.76 3,173.53
(2) Deferred tax 11 & 35 193.84 (779.46)
(3) Current tax expenses relating to previous years 36 5.74 45.67
Total tax expense 3,477.34 2,439.74
(VII) Profit for the year (V-VI) 11,882.50 7,608.10
Attributable to:
Owners of the Company 11,878.93 7,601.18
Non-controlling interest 3.57 6.92
(VIII) Other Comprehensive Income
(A) (i) Items that will not be reclassified to profit or loss
(a) Remeasurement of defined benefit (liabilities)/assets 35 (0.35) 21.48
(ii) Income tax relating to items that will not be reclassified to 11 & 35 0.09 (5.41)
profit or loss
Subtotal (A) (0.26) 16.07
(B) (i) Items that will be reclassified to profit or loss
(a) Cash flow hedge (net) 35 (13.04) (338.79)
(b) Fair value of loans carried at FVTOCI 35 136.53 (7.64)
(ii) Income tax relating to items that will be reclassified to 11 & 35 (31.09) 87.19
profit or loss
Subtotal (B) 92.40 (259.24)
Other Comprehensive Income (A+B) 92.14 (243.17)
(IX) Total Comprehensive Income for the year 11,974.64 7,364.93
Attributable to:
Owners of the Company 11,971.12 7,358.03
Non-controlling interest 3.52 6.90
(X) Earnings per equity share of face value ` 2 each 36
Basic (`) 31.33 20.09
Diluted (`) 31.14 20.04
See accompanying notes forming part of the financial statements 1 - 47
In terms of our report attached For and on behalf of the Board of Directors
For V Sankar Aiyar & Co. For Chhajed & Doshi of IIFL FINANCE LIMITED
Chartered Accountants Chartered Accountants
Firm Registration No. 109208W Firm Registration No. 101794W
(` in Millions)
Particulars Year ended Year ended
Notes
March 31, 2022 March 31, 2021
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 15,359.84 10,047.84
Adjustments for:
Depreciation, amortization and impairment 12, 13, 1,216.98 1,056.76
14 &
15
Impairment on loans 32 (81.59) 4,842.85
Impairment on other financial instruments (85.82) 360.49
(Profit)/loss on sale of assets (3.29) 2.97
(Gain)/Loss on termination - Ind AS 116 0.01 (9.81)
Net (Gain)/loss on fair value changes on investment (771.98) (1,616.74)
- realized
Net (Gain)/loss on fair value changes on investment 1.29 (97.86)
- unrealized
Net (Gain)/loss on derecognition of financial (4,112.27) (1,297.66)
instruments under amortized cost
Employee benefit expenses - share based 30.98 4.36
Employee benefit expenses - others 123.01 157.38
Interest on loans (59,717.13) (53,255.64)
Interest on deposits with banks 26.1 (900.12) (827.29)
Dividend Income 26.2 (0.01) (59.44)
Finance cost 27,354.57 25,944.34
Interest expenses - Ind AS 116 30 307.87 269.44
Loss/(Gain) on buy back of debentures (net) (7.86) (7.06)
Income received on loans 65,763.91 47,390.69
Interest received on deposits with banks 879.13 858.95
Finance cost paid (30,261.74) (264.06) (25,372.17) (1,655.44)
Operating profit before working capital changes 15,095.78 8,392.40
Decrease/(increase) in financial and non financial assets (225.91) (2,476.44)
Increase/(decrease) in financial and non financial 6,214.61 5,988.70 10,433.74 7,957.30
liabilities
Cash (used in)/generated from operations 21,084.48 16,349.70
Taxes paid (2,943.33) (2,952.89)
Net cash (used in)/generated from operating 18,141.15 13,396.81
activities
Loans (disbursed)/ repaid (net) (303.88) (49,265.29)
Net cash (used in)/generated from operating 17,837.27 (35,868.48)
activities (A)
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and (1,007.74) (363.05)
other intangible assets
Sale of property, plant and equipment and other 11.72 20.25
intangible assets
Purchase of investment property (245.14) (63.08)
Proceeds from investments property - 24.10
Proceeds/(Purchase) of Investments (10,752.26) 8,658.75
Corporate Overview
FOR THE YEAR ENDED MARCH 31, 2022 (CONTD.)
(` in Millions)
Particulars Year ended Year ended
Notes
March 31, 2022 March 31, 2021
Dividend received 0.01 59.44
Proceeds/(Deposits) from maturity of deposits 2,035.46 (5,977.98)
placed with Banks
Statutory Reports
Net cash (used in)/ generated from investing (9,957.95) 2,358.43
activities (B)
Financial Statements
Proceeds from debt securities 29,103.19 31,011.80
Repayment of debt securities (32,741.40) (34,101.56)
Proceeds from borrowings (other than debt 121,982.11 121,238.50
securities)
Repayment of borrowings (other than debt (91,239.86) (72,693.40)
securities)
Proceeds from subordinated liabilities 7,058.23 6,708.60
Repayment of subordinated liabilities (4,109.71) (6,010.29)
Payment of lease liability (918.94) (779.31)
Net cash (used in) / generated from financing 27,808.06 44,283.06
activities (C)
NET INCREASE IN CASH AND CASH EQUIVALENTS 35,687.38 10,773.01
(A+B+C)
Add : Opening cash and cash equivalents as at the 26,429.02 15,656.01
beginning of the year
Cash and cash equivalents as at the end of the year 4 62,116.40 26,429.02
See accompanying notes forming part of the
1 - 47
financial statements
In terms of our report attached For and on behalf of the Board of Directors
For V Sankar Aiyar & Co. For Chhajed & Doshi of IIFL FINANCE LIMITED
Chartered Accountants Chartered Accountants
Firm Registration No. 109208W Firm Registration No. 101794W
292
IC of Reserve of National (Note 11)
Bank of India Housing
Act, 1934 Bank Act,
(Note 5) 1987
(Note 6)
Balance as at - 838.85 18,352.60 6,524.65 5,582.94 2,068.70 2,301.11 128.04 11,055.30 174.14 (130.62) - (52.66) 46,843.05 56.40
April 01, 2020
Profit for the year - - - - - - - - 7,601.18 - - - - 7,601.18 6.92
Other comprehensive - - - - - - - - - - (253.52) (5.72) 16.09 (243.15) (0.02)
293
Company (“HFC”) are required to create Debenture Redemption Reserve of a value equivalent to 25% of the debentures offered through public issue. Pursuant to Ministry of Corporate Affairs circular dated August 16, 2019, reserve is
not required to be created for the Non Convertible Debentures going forward.
9. Retained Earnings: These are the profits that the Group has earned till date, less any transfers to Statutory Reserve, Debenture Redemption Reserve, General Reserve, Dividend distribution and capital redemption reserve.
10. Stock Compensation Reserve: The employee stock options reserve represents reserve in respect of equity settled share options granted to the employees of the Company and its Group in pursuance of employee stock options plan.
11. Effective portion of Cash Flow Hedges: This reserve refers to changes in the fair value of Derivative Financial Contracts which are designated as effective Cash Flow Hedge.
12. Remeasurements of defined benefit: This reserve refers to remeasurement of gains and losses arising from experience adjustments, changes in actuarial assumptions and return on plan assets of the defined benefit plan.
See accompanying notes forming part of the financial statements (1 - 47)
In terms of our report attached For and on behalf of the Board of Directors
For V Sankar Aiyar & Co. For Chhajed & Doshi of IIFL FINANCE LIMITED
Chartered Accountants Chartered Accountants
Firm Registration No. 109208W Firm Registration No. 101794W
Has the ability to use its power over investee to Fair value is the price that would be received to
affect its returns sell an asset or paid to transfer a liability in an
orderly transaction between market participants
Generally, there is a presumption that a majority
at the measurement date, regardless of whether
of voting rights result in control. To support this
that price is directly observable or estimated
presumption and when the Holding Company has less
using another valuation technique. In estimating
than a majority of the voting or similar rights of an
the fair value of an asset or a liability, the Group
investee, the Company considers all relevant facts and
takes into account the characteristics of the
circumstances in assessing whether it has power over
asset or liability if market participants would take
an investee, including:
those characteristics into account when pricing
The contractual arrangement with the other vote the asset or liability at the measurement date.
holders of the investee Fair value for measurement and/ or disclosure
Rights
arising from other contractual purposes in these consolidated financial
arrangements statements is determined on such a basis,
except for share based payment transactions
The Holding Company’s voting rights and
that are within the scope of Ind AS 102, leasing
potential voting rights
transactions that are within the scope of Ind
The size of the Company’s holding of voting AS 116, and measurements that have some
rights relative to the size and dispersion of the similarities to fair value but are not fair value,
holdings of the other voting rights holders. such as value in use in Ind AS 36.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Fair value measurements under Ind AS are asset relating to employee benefit arrangements
categorized into Level 1, 2, or 3 based on arising from a business combination are
the degree to which the inputs to the fair measured and recognized in accordance with the
value measurements are observable and the requirements of Ind AS 12, Income Taxes and Ind
significance of the inputs to the fair value AS 19, Employee Benefits, respectively. Where the
measurement in its entirety, which are described consideration transferred exceeds the fair value of
as follows: the net identifiable assets acquired and liabilities
Statutory Reports
assumed, the excess is recorded as goodwill.
Level 1 inputs are quoted prices (unadjusted)
Alternatively, in case of a bargain purchase
in active markets for identical assets or
wherein the consideration transferred is lower
liabilities that the Company can access at
than the fair value of the net identifiable assets
measurement date;
acquired and liabilities assumed, the difference
Level 2 inputs are inputs, other than quoted is recorded as a gain in other comprehensive
prices included within level 1, (that are not income and accumulated in equity as capital
Financial Statements
traded in active market) that are observable reserve. The costs of acquisition excluding those
for the asset or liability, either directly or relating to issue of equity or debt securities are
indirectly; and charged to the Statement of Profit and Loss in
Level 3 inputs are unobservable inputs for the period in which they are incurred Business
the valuation of assets or liabilities. combinations involving entities under common
control are accounted for using the pooling of
b)
The effects of all inter-Group transactions interests method. The net assets of the transferor
and balances have been eliminated on entity or business are accounted at their carrying
consolidation. The accounting policies adopted amounts on the date of the acquisition subject
in the preparation of the consolidated financial to necessary adjustments required to harmonize
statements are consistent with those followed in accounting policies.
the previous year by the Group.
f)
Goodwill is an asset representing the future
c) The consolidated financial statements of the economic benefits arising from other assets
subsidiary companies used in the consolidation acquired in a business combination that are not
are drawn up to the same reporting date as that individually identified and separately recognized.
of the Group, March 31, 2022. Goodwill is initially measured at cost, being the
d) The consolidated financial statements of the excess of the consideration transferred over the
Group have been combined on a line-by-line net identifiable assets acquired and liabilities
basis by adding together like items of assets, assumed, measured in accordance with Ind AS
liabilities, income and expenses, after eliminating 103 – Business Combinations.
intra-group balances, intra-group transactions Goodwill is considered to have indefinite useful
and resulting unrealized profits or losses, unless life and hence is not subject to amortization but
cost cannot be recovered. tested for impairment at least annually. After
e) Business combinations: Business combinations initial recognition, goodwill is measured at cost
are accounted for using the acquisition less any accumulated impairment.
method. At the acquisition date, identifiable Any impairment loss on goodwill is recognized in
assets acquired and liabilities assumed are the Statement of Profit and Loss. An impairment
measured at fair value. For this purpose, the loss recognized on goodwill is not reversed in
liabilities assumed include contingent liabilities subsequent periods.
representing present obligation and they are
measured at their acquisition date fair values For the purpose of impairment testing, goodwill
irrespective of the fact that outflow of resources acquired in a business combination, is from the
embodying economic benefits is not probable. acquisition date.
The consideration transferred is measured at The excess of cost to the Group of its investments
fair value at acquisition date and includes the fair in the subsidiary companies over its share of
value of any contingent consideration. However, equity of the subsidiary companies, at the dates
deferred tax asset or liability and any liability or on which the investments in the subsidiary
companies are made, is recognized as ‘Goodwill’ in their share in the equity, subsequent to the
being an asset in the consolidated financial dates of investments. Net profit and loss/ other
statements. Alternatively, where the share of comprehensive income (“OCI”) for the year of
equity in the subsidiary companies as on the date the subsidiaries attributable to non-controlling
of investment is in excess of cost of investment interest is identified and adjusted against the
of the Group, it is recognized as ‘Capital Reserve’ profit after tax/ other comprehensive income
and shown under the head ‘Reserves and (“OCI”) of the Group in order to arrive at the
Surplus’, in the consolidated financial statements. income attributable to shareholders of the Group.
Goodwill/ Capital reserve has been netted off h) Profit or loss and each component of other
and disclosed in the consolidated financial comprehensive income (“OCI”) are attributed to
statements. Goodwill arising on consolidation is the equity holders of the Holding Company and
not amortized but tested for impairment. to the non-controlling interests, if any.
g) Non-controlling Interest in the net assets of the iii. List of subsidiaries consolidated
consolidated subsidiaries consist of the amount The individual Balance Sheet as at March 31, 2022,
of equity attributable to the minority shareholders Statement of Profit and Loss and cash flow statement
at the date on which investments in the subsidiary for the year ended March 31, 2022 of following
companies were made and further movements subsidiaries are included in consolidation:
iv. Use of estimates and judgments in estimates are reflected in the consolidated financial
The preparation of the consolidated financial statements in the period in which changes are made
statements in conformity with Indian Accounting and, if material, their effects are disclosed in the notes
Standards (“Ind AS”) requires the management to to the consolidated financial statements.
make estimates, judgments and assumptions. These
v. Statement of compliance
estimates, judgements and assumptions affect the
application of accounting policies and the reported The consolidated financial statements of the Group
amounts of assets and liabilities, the disclosures have been prepared in accordance with the provisions
of contingent assets and liabilities at the date of of the Act and the Ind AS notified under the Companies
the consolidated financial statements and reported (Indian Accounting Standards) Rules, 2015 issued by
amounts of revenues and expenses during the period. Ministry of Corporate Affairs in exercise of the powers
Accounting estimates could change from period conferred by section 133 read with sub-section (1) of
to period. Actual results could differ from those section 210A of the Companies Act, 2013 along with the
estimates. Appropriate changes in estimates are applicable guidelines issued by Reserve Bank of India
made as the management becomes aware of changes (“RBI”) and National Housing Bank (“NHB”). In addition,
in circumstances surrounding the estimates. Changes the guidance notes/ announcements issued by the
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Institute of Chartered Accountants of India (“ICAI”) loss (“FVTPL”), transaction costs are recognized
are also applied except where compliance with other in the Statement of Profit and Loss at initial
statutory promulgations require a different treatment. recognition.
vi. Presentation of financial statements
Penal Interest are recognized as income only
he Balance Sheet and the Statement of Profit and
T when revenue is virtually certain which generally
Loss are prepared and presented in the format coincides with receipts.
Statutory Reports
prescribed in the Division III to Schedule III to the Dividend on equity shares, preference shares
Act applicable for Non-Banking Finance Companies and on mutual fund units is recognized as
(“NBFC”). The Statement of Cash Flows has been income when the right to receive the dividend is
prepared and presented as per the requirements of established.
Ind AS 7 “Statement of Cash Flows”. The disclosure
ii. Fees and charges
requirements with respect to items in the Balance
Sheet and Statement of Profit and Loss, as prescribed Fees and charges include fees other than those
Financial Statements
in the Schedule III to the Act, are presented by way that are an integral part of EIR. The fees included
of notes forming part of the consolidated Financial in this part of the Group’s Statement of Profit and
Statements along with the other notes required to be Loss include, among other things, fees charged
disclosed under the notified Accounting Standards for servicing a loan.
and regulations issued by the RBI and NHB.
Cheque bounce charges, late payment charges
NOTE 3. SIGNIFICANT ACCOUNTING POLICIES and foreclosure charges are recognized on a
(a) Revenue recognition point-in-time basis, and are recorded when
realized.
Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Group and Fee and commission expenses with regards
the revenue can be reliably measured and there exists to services are accounted for as and when the
reasonable certainty of its recovery. services are delivered.
i. Interest income and dividend income iii. Income from financial instruments at FVTPL
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
withdrawn from use and no future economic benefits revised estimate of its recoverable amount, to the
are expected from the disposal. Any gain or loss extent that it does not exceed the carrying amount that
arising on derecognition of the property (calculated would have been determined had no impairment loss
as the difference between the net disposal proceeds been recognized for the asset in prior years. A reversal
and the carrying amount of the asset) is included in of an impairment loss is recognized immediately in the
Statement of Profit and Loss in the period in which the Statement of Profit and Loss.
Investment property is derecognized.
Statutory Reports
(g) Share-based payment arrangements
Freehold land and properties under construction are
Equity-settled share-based payments to employees
not depreciated.
and others providing similar services are measured at
(e) Non-current Assets held for Sale the fair value of the equity instruments at the grant date.
Non-current assets are classified as held for sale if The fair value determined at the grant date of the
their carrying amount is intended to be recovered equity-settled share-based payments is expensed
principally through a sale (rather than through on a straight-line basis over the vesting period, based
Financial Statements
continuing use) when the asset is available for on the Group’s estimate of equity instruments that
immediate sale in its present condition subject only to will eventually vest, with a corresponding increase in
terms that are usual and customary for sale of such equity.
asset and the sale is highly probable and is expected
Securities premium includes:
to qualify for recognition as a completed sale within
one year from the date of classification. The difference between the face value of the
equity shares and the consideration received
The Group repossess properties or other assets to
in respect of shares issued pursuant to Stock
settle outstanding recoverable and the surplus (if any)
Option Scheme.
post auction is refunded to the obligors. These assets
physically acquired by the Company under SARFASI The fair value of the stock options which are
Act, 2002 and sale is highly probable has been treated as expense, if any, in respect of shares
classified as assets held for sale, as their carrying allotted pursuant to Stock Options Scheme
amounts will be recovered principally through a sale
(h) Employee benefits
of asset. In accordance with Ind AS 105, the Company
is committed to sell these assets. Non-current assets Defined contribution plans
classified as held for sale are measured at lower of
The Group’s contribution towards Provident Fund
their carrying amount and fair value less costs to sell.
and Family Pension Fund are considered as defined
(f) Impairment of assets contribution plans and are charged as an expense
based on the amount of contribution required to
As at the end of each accounting year, the Group
be made as and when services are rendered by the
reviews the carrying amounts of its PPE, intangible
employees and are accounted for on an accrual basis
assets and investment property assets to determine
and recognized in the Statement of Profit and loss.
whether there is any indication that those assets have
suffered an impairment loss. If such indication exists, Defined benefit plans
the PPE, intangible assets and investment property
Short term employee benefits: Employee benefits
are tested for impairment so as to determine the
falling due wholly within twelve months of rendering
impairment loss, if any.
the service are classified as short term employee
Recoverable amount is the higher of fair value less benefits and are expensed in the period in which
costs of disposal and value in use. If recoverable the employee renders the related service. Liabilities
amount of an asset is estimated to be less than recognized in respect of short-term employee benefits
its carrying amount, such deficit is recognized are measured at the undiscounted amount of the
immediately in the Statement of Profit and Loss as benefits expected to be paid in exchange for the
impairment loss and the carrying amount of the asset related service. These benefits include performance
is reduced to its recoverable amount. incentive and compensated absences.
When an impairment loss is subsequently reverse, Post employment benefits: The employees’ gratuity
the carrying amount of the asset is increased to the fund scheme represents defined benefit plan. The
present value of the obligation under defined benefit effects of all dilutive potential equity shares. Potential
plan is determined based on actuarial valuation using equity shares are deemed to be dilutive only if their
the Projected Unit Credit Method. conversion to equity shares would decrease the net
profit per share from continuing ordinary operations.
The obligation is measured at the present value of
the estimated future cash flows using a discount rate Potential dilutive equity shares are deemed to be
based on the market yield on government securities of converted as at the beginning of the period, unless
a maturity period equivalent to the weighted average they have been issued at a later date. The dilutive
maturity profile of the defined benefit obligations at potential equity shares are adjusted for the proceeds
the Balance Sheet date. receivable had the shares been actually issued at fair
value (i.e. average market value of the outstanding
Re-measurement, comprising actuarial gains and
shares). Dilutive potential equity shares are determined
losses, the return on plan assets (excluding amounts
independently for each period presented.
included in net interest on the net defined benefit
liability or asset) and any change in the effect of (j) Taxes on income
asset ceiling (if applicable) is recognized in other
Current tax
comprehensive income and is reflected in retained
earnings and the same is not eligible to be reclassified Current tax is the amount of tax payable on the taxable
to the Statement of Profit and Loss. income for the year as determined in accordance with
the applicable tax rates and the provisions of the
Defined benefit costs comprising current service
Income Tax Act, 1961 and other applicable tax laws.
cost, past service cost and gains or losses on
settlements are recognized in the Statement of Profit Deferred tax
and Loss as employee benefit expenses. Gains or
Deferred tax is recognized on temporary differences
losses on settlement of any defined benefit plan are
between the carrying amounts of assets and
recognized when the settlement occurs. Past service
liabilities in the Group’s financial statements and
cost is recognized as expense at the earlier of the
the corresponding tax bases used in computation of
plan amendment or curtailment and when the Group
taxable profit and quantified using the tax rates and
recognizes related restructuring costs or termination
laws enacted or substantively enacted as on the
benefits.
Balance Sheet date.
In case of funded plans, the fair value of the plan
Deferred tax is not recognized for:
assets is reduced from the gross obligation under the
defined benefit plans to recognize the obligation on a - Temporary differences on the initial recognition
net basis. of assets or liabilities in a transaction that is not
a business combination and that affects neither
Long term employee benefits: The obligation
recognized in respect of long term benefits such as accounting nor taxable profit or loss
long term compensated absences, is measured at - Temporary differences related to investments in
present value of estimated future cash flows expected subsidiaries, associates and joint arrangements
to be made by the Group and is recognized in a similar to the extent that the Group is able to control the
manner as in the case of defined benefit plan above. timing of the reversal of the temporary differences
(i) Earnings per share and it is probable that they will not reverse in the
foreseeable future; and
Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity -
Taxable temporary differences arising on the
shareholders (after deducting attributable taxes) initial recognition of goodwill.
by the weighted average number of equity shares Deferred tax assets are recognized for unused tax
outstanding during the year.
losses, unused tax credits and deductible temporary
For the purpose of calculating diluted earnings per differences to the extent that it is probable that future
share, the net profit or loss for the year attributable taxable profits will be available against which they can
to equity shareholders (after deducting attributable be used. Future taxable profits are determined based
taxes) and the weighted average number of equity on business plans and the reversal of temporary
shares outstanding during the year are adjusted for the differences.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
which the Company expects, at the reporting date,
to recover or settle the carrying amount of its assets All recognized financial assets that are within the
and liabilities. For this purpose, the carrying amount scope of Ind AS 109 are required to be subsequently
of investment property measured at fair value is measured at amortized cost or fair value on the basis of
presumed to be recovered through sale, and the the entity’s business model for managing the financial
Company has not rebutted this presumption. assets and the contractual cash flow characteristics
For transactions and other events recognized in profit of the financial assets.
Financial Statements
or loss, any related tax effects are also recognized Financial instruments measured at amortized cost
in profit or loss. For transactions and other events
Debt instruments that meet the following criteria
recognized outside profit or loss (either in other
are measured at amortized cost (except for debt
comprehensive income or directly in equity), any
related tax effects are also recognized outside profit or instruments that are designated as at fair value
loss (either in other comprehensive income or directly through profit or loss on initial recognition):
in equity, respectively). the asset is held within a business model whose
Deferred tax assets and liabilities are offset when there objective is to hold assets in order to collect
is a legally enforceable right to set off assets against contractual cash flows; and
liabilities, representing current tax and where the the contractual terms of the instrument give rise
deferred tax assets and deferred tax liabilities relates on specified dates to cash flows that are solely
to taxes on income levied by the same governing payments of principal and interest (“SPPI”) on the
taxation laws. principal amount outstanding.
Current and deferred tax for the year For the purpose of SPPI test, principal is the fair value
Current and deferred tax are recognized in the of the financial asset at initial recognition. The principal
Statement of profit and loss, except when they relate amount may change over the life of the financial asset
to items that are recognized in other comprehensive (e.g. if there are repayments of principal). Interest
income or directly in equity, in which case, the consists of consideration for the time value of money,
current and deferred tax are also recognized in for the credit risk associated with the principal amount
other comprehensive income or directly in equity outstanding during a particular period of time and for
respectively. other basic lending risks and costs, as well as a profit
margin. The SPPI assessment is made in the currency
(k) Financial instruments
in which the financial asset is denominated.
Financial assets and financial liabilities are recognized
in the Group’s Balance Sheet when the Group becomes Contractual cash flows that are SPPI are consistent
a party to the contractual provisions of the instrument. with a basic lending arrangement. Contractual terms
that introduce exposure to risks or volatility in the
Recognized financial assets and financial liabilities are contractual cash flows that are unrelated to a basic
initially measured at fair value. Transaction costs and lending arrangement, such as exposure to changes
revenues that are directly attributable to the acquisition in equity prices or commodity prices, do not give rise
or issue of financial assets and financial liabilities (other
to contractual cash flows that are SPPI. An originated
than financial assets and financial liabilities at FVTPL)
or an acquired financial asset can be a basic lending
are added to or deducted from the fair value of the
arrangement irrespective of whether it is a loan in its
financial assets or financial liabilities, as appropriate,
legal form.
on initial recognition. Transaction costs and revenues
directly attributable to the acquisition of financial An assessment of business models for managing
assets or financial liabilities at FVTPL are recognized financial assets is fundamental to the classification of
immediately in the Statement of Profit and Loss. a financial asset. The Group determines the business
models at a level that reflects how financial assets are present the subsequent changes in fair value in other
managed together to achieve a particular business comprehensive income pertaining to investments in
objective. The Group’s business model does not equity instruments. This election is not permitted if the
depend on management’s intentions for an individual equity investment is held for trading. These elected
instrument, therefore the business model assessment investments are initially measured at fair value plus
is performed at a higher level of aggregation rather transaction costs. Subsequently, they are measured at
than on an instrument-by-instrument basis. fair value with gains and losses arising from changes
Debt instruments that are subsequently measured at in fair value recognized in other comprehensive
amortized cost are subject to impairment. income and accumulated in the ‘Reserve for equity
instruments through other comprehensive income’.
Financial instruments measured at fair value through
The cumulative gain or loss is not reclassified to
other comprehensive income (“FVTOCI”)
Statement of Profit and Loss on disposal of the
Debt instruments that meet the following criteria are investments. Dividends from these investments are
measured at fair value through other comprehensive recognized in the Statement of Profit and Loss when
income (except for debt instruments that are the Group’s right to receive dividends is established.
designated as at fair value through profit or loss on
Reclassifications
initial recognition):
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
12-month ECL, i.e. ECL that result from those the lender of the borrower, for economic or
default events on the financial instrument that contractual reasons relating to the borrower’s
are possible within 12 months after the reporting financial difficulty, having granted to the borrower
date (referred to as Stage 1); or a concession that the lender would not otherwise
consider;
full lifetime ECL, i.e. lifetime ECL that result from
all possible default events over the life of the the disappearance of an active market for a
Statutory Reports
financial instrument (referred to as Stage 2 and security because of financial difficulties; or
Stage 3).
the purchase of a financial asset at a deep
A loss allowance for full lifetime ECL is required for a discount that reflects the incurred credit losses.
financial instrument if the credit risk on that financial
A loan is considered credit-impaired when a concession
instrument has increased significantly since initial
is granted to the borrower due to a deterioration in the
recognition. For all other financial instruments, ECLs are
borrower’s financial condition, unless there is evidence
measured at an amount equal to the 12-month ECL.
that as a result of granting the concession the risk of
Financial Statements
The Group measures ECL on an individual basis, not receiving the contractual cash flows has reduced
or on a collective basis for portfolios of loans that significantly and there are no other indicators of
share similar economic risk characteristics. The impairment.
measurement of the loss allowance is based on the
Definition of default
present value of the asset’s expected cash flows using
the asset’s original EIR, regardless of whether it is Critical to the determination of ECL is the definition of
measured on an individual basis or a collective basis. default. The definition of default is used in measuring
the amount of ECL and in the determination of whether
Key elements of ECL computation are outlined below:
the loss allowance is based on 12-month or lifetime
Probability of default (“PD”) is an estimate of ECL, as default is a component of the probability of
the likelihood that customer will default over a default (“PD”) which affects both the measurement of
given time horizon. A default may only happen ECLs and the identification of a significant increase in
at a certain time over the assessed period, if the credit risk.
facility has not been previously de-recognized
Default considered for computation of ECL
and is still in the portfolio.
computation is as per the applicable prudential
Loss given default (“LGD”) estimates the
regulatory norms.
normalized loss which Group incurs post
Significant increase in credit risk
customer default. It is usually expressed as a
percentage of the Exposure at default (“EAD”). The Group monitors all financial assets, issued loan
commitments and financial guarantee contracts that
Effective interest rate (“EIR”) is the rate that
are subject to the impairment requirements to assess
discounts estimated future cash flows through
whether there has been a significant increase in credit
the expected life of financial instrument. For
risk since initial recognition. The Group’s accounting
calculating EIR any upfront fees needs to be
policy is not to use the practical expedient that
excluded from the loans and advance amount.
financial assets with ‘low’ credit risk at the reporting
Credit impaired financial assets date are deemed not to have had a significant increase
in credit risk.
A financial asset is ‘credit impaired’ when one or
more events that have a detrimental impact on the In assessing whether the credit risk on a financial
estimated future cash flows of the financial asset have instrument has increased significantly since initial
occurred. Credit-impaired financial assets are referred recognition, the Group compares the risk of a default
to as Stage 3 assets. Evidence of credit-impairment occurring on the financial instrument at the reporting
includes observable data about the following events: date based on the remaining maturity of the instrument
with the risk of a default occurring that was anticipated
significant financial difficulty of the borrower or
for the remaining maturity at the current reporting date
issuer;
when the financial instrument was first recognized.
a breach of contract such as a default or past due In making this assessment, the Group considers
event; both quantitative and qualitative information that
is reasonable and supportable, including historical financial asset with the new terms will lead to a gain
experience and forward-looking information that is or loss on derecognition. The new financial asset will
available without undue cost or effort, based on the have a loss allowance measured based on 12-month
Group’s expert credit assessment. ECL except in the rare occasions where the new
loan is considered to be originated-credit impaired.
Modification and derecognition of financial assets
This applies only in the case where the fair value of
A modification of a financial asset occurs when the new loan is recognized at a significant discount
the contractual terms governing the cash flows to its revised par amount because there remains a
of a financial asset are renegotiated or otherwise high risk of default which has not been reduced by
modified between initial recognition and maturity the modification. The Group monitors credit risk of
of the financial asset. A modification affects the modified financial assets by evaluating qualitative and
amount and/ or timing of the contractual cash flows quantitative information, such as if the borrower is in
either immediately or at a future date. In addition, the past due status under the new terms.
introduction or adjustment of existing covenants of an
existing loan would constitute a modification even if When the contractual terms of a financial asset are
these new or adjusted covenants do not yet affect the modified and the modification does not result in
cash flows immediately but may affect the cash flows derecognition, the Group determines if the financial
depending on whether the covenant is or is not met asset’s credit risk has increased significantly since
(e.g. a change to the increase in the interest rate that initial recognition.
arises when covenants are breached). For financial assets modified, where modification
The Group renegotiates loans to customers in financial did not result in derecognition, the estimate of PD
difficulty to maximize collection and minimize the risk reflects the Group’s ability to collect the modified
of default. Loan forbearance is granted in cases where cash flows taking into account the Group’s previous
although the borrower made all reasonable efforts to experience of similar forbearance action, as well
pay under the original contractual terms, there is a high as various behavioural indicators, including the
risk of default or default has already happened and the borrower’s payment performance against the
borrower is expected to be able to meet the revised modified contractual terms. If the credit risk remains
terms. The revised terms in most of the cases include significantly higher than what was expected at initial
an extension of the maturity of the loan, changes to recognition the loss allowance will continue to be
the timing of the cash flows of the loan (principal and measured at an amount equal to lifetime ECL. The
interest repayment), reduction in the amount of cash loss allowance on forborne loans will generally only
flows due (principal and interest forgiveness) and be measured based on 12-month ECL when there
amendments to covenants. is evidence of the borrower’s improved repayment
behaviour following modification leading to a reversal
When a financial asset is modified, the Group considers of the previous significant increase in credit risk.
the following:
Where a modification does not lead to derecognition
Qualitative factors, such as contractual cash flows
the Group calculates the modification gain/ loss
after modification are no longer SPPI, change in
comparing the gross carrying amount before and after
currency or change of counterparty, the extent of
the modification (excluding the ECL allowance). Then
change in interest rates, maturity, covenants. If these
the Group measures ECL for the modified asset, where
do not clearly indicate a substantial modification, then
the expected cash flows arising from the modified
a quantitative assessment is performed to compare
financial asset are included in calculating the expected
the present value of the remaining contractual cash
cash shortfalls from the original asset.
flows under the original terms with the contractual
cash flows under the revised terms, both amounts Derecognition of financial assets
discounted at the original effective interest.
The Group derecognizes a financial asset only when
In the case where the financial asset is derecognized, the contractual rights to the asset’s cash flows expire
the loss allowance for ECL is remeasured at the date (including expiry arising from a modification with
of derecognition to determine the net carrying amount substantially different terms), or when the financial
of the asset at that date. The difference between this asset and substantially all the risks and rewards of
revised carrying amount and the fair value of the new ownership of the asset are transferred to another
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
entity. If the Group neither transfers nor retains arrangements and the definitions of a financial liability
substantially all the risks and rewards of ownership and an equity instrument. A conversion option that
and continues to control the transferred asset, the will be settled by the exchange of a fixed amount of
Group recognizes its retained interest in the asset cash or another financial asset for a fixed number
and an associated liability for amounts it may have to of the Group’s own equity instruments is an equity
pay. If the Group retains substantially all the risks and instrument.
rewards of ownership of a transferred financial asset,
Statutory Reports
At the date of issue, the fair value of the liability
the Group continues to recognize the financial asset
component is estimated using the prevailing market
and also recognizes a collateralized borrowing for the
interest rate for similar non-convertible instruments.
proceeds received.
A conversion option classified as equity is determined
On derecognition of a financial asset in its entirety, the
by deducting the amount of the liability component
difference between the asset’s carrying amount and
from the fair value of the compound instrument as a
the sum of the consideration received and receivable
whole. This is recognized and included in equity, net
and the cumulative gain/loss that had been recognized
Financial Statements
of income tax effects, and is not subsequently re-
in OCI and accumulated in equity is recognized in the
measured. In addition, the conversion option classified
Statement of Profit and Loss, with the exception of
as equity will remain in equity until the conversion option
equity investment designated as measured at FVTOCI,
is exercised, in which case, the balance recognized in
where the cumulative gain/loss previously recognized
equity will be transferred to other component of equity.
in OCI is not subsequently reclassified to the Statement
Where the conversion option remains unexercised at
of Profit and Loss.
the maturity date of the convertible note, the balance
Write-off recognized in equity will be transferred to retained
earnings. No gain/ loss is recognized in Statement of
Loans and debt securities are written off when the
Profit and Loss upon conversion or expiration of the
Group has no reasonable expectations of recovering
conversion option.
the financial asset (either in its entirety or a portion
of it). This is the case when the Group determines Transaction costs that relate to the issue of the
that the borrower does not have assets or sources of convertible notes are allocated to the liability and
income that could generate sufficient cash flows to equity components in proportion to the allocation of
repay the amounts subject to the write-off. A write- the gross proceeds. Transaction costs relating to the
off constitutes a derecognition event. The Group may equity component are recognized directly in equity.
apply enforcement activities to financial assets written Transaction costs relating to the liability component
off. Recoveries resulting from the Group’s enforcement are included in the carrying amount of the liability
activities will result in impairment gains. component and are amortized over the life of the
convertible notes using the effective interest rate
Financial liabilities and equity Instruments
method.
Debt and equity instruments that are issued by the
Financial liabilities
Group are classified as either financial liabilities or
as equity in accordance with the substance of the All financial liabilities are subsequently measured
contractual arrangement. at amortized cost using the effective interest rate
method.
Equity instruments
Financial liabilities that are not held-for-trading and
An equity instrument is any contract that evidences
are not designated as at FVTPL are measured at
a residual interest in the assets of an entity after
amortized cost. The carrying amounts of financial
deducting all of its liabilities. Equity instruments issued
liabilities that are subsequently measured at amortized
by the Group are recognized at the proceeds received,
cost are determined based on the effective interest
net of direct issue costs.
rate method.
Compound instruments
The effective interest rate method is a method of
The component parts of compound instruments calculating the amortized cost of a financial liability
(e.g. convertible notes) issued by the Group are and of allocating interest expense over the relevant
classified separately as financial liabilities and equity period. The effective interest rate is the rate that exactly
in accordance with the substance of the contractual discounts estimated future cash payments (including
all fees paid or received that form an integral part of the rates prevailing at the date when the fair value was
the effective interest rate, transaction costs and other determined. Non-monetary items that are measured
premiums or discounts) through the expected life of in terms of historical cost in a foreign currency are not
the financial liability, or (where appropriate) a shorter retranslated.
period, to the amortized cost of a financial liability.
Exchange differences on monetary items are
recognized in the Statement of Profit and Loss in the
Derecognition of financial liabilities
period in which they arise.
The Group derecognizes financial liabilities when, and
(p) Segment reporting
only when, the Group’s obligations are discharged,
cancelled or have expired. The difference between the The Group’s primary business segments are reflected
carrying amount of the financial liability derecognized based on the principal business carried out, i.e.
and the consideration paid and payable is recognized financing. All other activities of the Group revolve
around the main business. The risk and returns of
in the Statement of Profit and Loss.
the business of the Group is not associated with
(l) Cash and bank balances geographical segmentation, hence there is no
secondary segment reporting based on geographical
Cash comprises cash on hand and demand deposits
segment. As such, there are no separate reportable
with banks. Cash equivalents are short-term balances
segments.
(with an original maturity of three months or less from
the date of acquisition), highly liquid investments that (q)
Provisions, contingent liabilities and contingent
are readily convertible into known amounts of cash assets
and which are subject to insignificant risk of changes Provisions are recognized only when:
in value. Cash and bank balances also include
an entity has a present obligation (legal or
fixed deposits, margin money deposits, earmarked
constructive) as a result of a past event; and
balances with banks and other bank balances which
have restrictions on repatriation. Short term and liquid it is probable that an outflow of resources
investments being subject to more than insignificant embodying economic benefits will be required to
settle the obligation; and
risk of change in value, are not included as part of cash
and cash equivalents. a reliable estimate can be made of the amount of
the obligation
(m) Goods and service tax input credit
The amount recognized as a provision is the best
Goods and service tax input credit is accounted for in estimate of the consideration required to settle the
the books in the period in which the supply of goods present obligation at the end of the reporting period,
or service received is accounted and when there is no taking into account the risks and uncertainties
uncertainty in availing/ utilising the credits. surrounding the obligation. Provisions (excluding
retirement benefits) are not discounted to their present
(n) Borrowing costs
value and are determined based on the best estimate
Borrowing costs include interest expense calculated required to settle the obligation at the Balance Sheet
using the EIR method. date. These are reviewed at each Balance Sheet date
and adjusted to reflect the current best estimates.
(o) Foreign currencies
Onerous contracts
In preparing the consolidated financial statements
of, transactions in currencies other than the entity’s Present obligations arising under onerous contracts
are recognized and measured as provisions. An
functional currency (foreign currencies) are recognized
onerous contract is considered to exist where the
at the rates of exchange prevailing at the dates of the
Group has a contract under which the unavoidable
transactions. Foreign exchange gains and losses
costs of meeting the obligations under the contract
resulting from the settlement of such transactions exceed the economic benefits expected to be received
and from the translation of monetary assets and from the contract.
liabilities denominated in foreign currencies at year
end exchange rates are generally recognized in the Contingent liability is disclosed in case of:
Statement of Profit and Loss. a present obligation arising from past events,
Non-monetary items carried at fair value that are when it is not probable that an outflow of
denominated in foreign currencies are translated at resources will be required to settle the obligation;
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
loss is recognized in the Statement of Profit and Loss
(r) Commitments immediately unless the derivative is designated and
effective as a hedging instrument, in which event the
Commitments are future liabilities for contractual
timing of the recognition in the Statement of Profit and
expenditure, classified and disclosed as follows:
Loss depends on the nature of the hedging relationship
a) Estimated amount of contracts remaining to be and the nature of the hedged item.
executed on capital account and not provided for;
Hedge accounting
Financial Statements
b) Funding related commitment to associate and
The Group designates certain hedging instruments,
joint venture companies; and
which include derivatives in respect of foreign currency
c) Other non-cancellable commitments, if any. risk, as cash flow hedge.
(s) Statement of cash flows At the inception of the hedge relationship, the entity
documents the relationship between the hedging
Statement of Cash Flows is prepared segregating the
instrument and the hedged item, along with its
cash flows into operating, investing and financing
risk management objectives and its strategy for
activities. Cash flow from operating activities is
undertaking various hedge transactions. Furthermore,
reported using indirect method adjusting the net profit at the inception of the hedge and on an ongoing basis,
for the effects of: the Group documents whether the hedging instrument
changes during the period in operating
is highly effective in offsetting changes in fair values
receivables and payables transactions of a non- or cash flows of the hedged item attributable to the
cash nature; hedged risk.
The Group recognizes a right-of-use asset and a When the lease liability is remeasured in this way, a
lease liability at the lease commencement date. The corresponding adjustment is made to the carrying
right-of-use asset is initially measured at cost, which amount of the right-of-use asset or is recorded in
comprises the initial amount of the lease liability profit or loss if the carrying amount of the right-of-use
adjusted for any lease payments made at or before asset has been reduced to zero.
the commencement date, plus any initial direct costs Lease liability and the right of use asset have been
incurred and an estimate of costs to dismantle and separately presented in the balance sheet and lease
remove the underlying asset or to restore the site on payments have been classified as financing activities.
which it is located, less any lease incentives received.
The Group has elected not to recognize right-of-use
Certain lease arrangements include the option to
assets and lease liabilities for short term leases that
extend or terminate the lease before the end of the
have a lease term of less than or equal to 12 months
lease term. The right-of-use assets and lease liabilities
with no purchase option and assets with low value
include these options when it is reasonably certain
leases. The Group recognizes the lease payments
that the option will be exercised.
associated with these leases as an expense in
The right-of-use asset is subsequently depreciated statement of profit and loss over the lease term. The
using the straight-line method from the related cash flows are classified as operating activities.
commencement date to the earlier of the end of the
As a lessor
useful life of the right-of-use asset or the end of the
lease term. The estimated useful lives of right-of-use Leases for which the Group is a lessor is classified
assets are determined on the same basis as those of as finance or operating leases. When the terms of the
property, plant and equipment. In addition, the right-of- lease transfer substantially all the risks and rewards
use asset is periodically reduced by impairment losses, of ownership to the lessee, the contract is classified
if any, and adjusted for certain re-measurements of as a finance lease. All other leases are classified as
the lease liability. operating leases.
The lease liability is initially measured at the present When the Group is an intermediate lessor, it accounts
value of the lease payments that are not paid at the for its interests in the head lease and the sublease
commencement date, discounted using the interest separately. The sublease is classified as a finance or
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
operating lease by reference to the right of use asset alternatives. The lease term in future periods is
arising from the head lease. reassessed to ensure that the lease term reflects
the current economic circumstances.
Critical accounting estimate and judgement
2. Discount rate
1. Determination of lease term
The discount rate is generally based on the
Ind AS 116 Leases requires lessee to determine
incremental borrowing rate specific to the lease
Statutory Reports
the lease term as the non-cancellable period
being evaluated or for a portfolio of leases with
of a lease adjusted with any option to extend
similar characteristics.
or terminate the lease, if the use of such
option is reasonably certain. The Group makes The Group as a lessee
assessment on the expected lease term on lease
As a lessee, the Group leases assets which includes
by lease basis and thereby assesses whether it
gold loan branches/office premises and vehicles to
is reasonably certain that any options to extend
employees. The Group previously classified leases as
or terminate the contract will be exercised. In
Financial Statements
operating or finance leases based on its assessment
evaluating the lease term, the Group considers
of whether the lease transferred significantly all of
factors such as any significant leasehold
the risks and rewards incidental to ownership of the
improvements undertaken over the lease term,
underlying asset to the Group. Under Ind AS 116,
costs relating to the termination of lease and
the Group recognises right-of-use assets and lease
the importance of the underlying to the Group’s
liabilities for these leases.
operations taking into account the location of the
underlying asset and the availability of the suitable
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Part II As at March 31, 2022 As at March 31, 2021
Notional Fair Value - Fair Value - Notional Fair Value - Fair Value -
amounts Assets Liabilities amounts Assets Liabilities
Included in above (Part I) are
derivatives held for hedging and risk
management purposes as follows:
Statutory Reports
(i) Fair value hedging
Options Purchased 43.16 98.69 98.69 55.62 86.99 86.99
(ii) Cash flow hedging
Currency derivatives 40,574.53 458.52 1,545.22 43,027.04 416.88 1,265.89
Interest rate derivative 6,955.00 185.60 - 6,955.00 - 212.88
(iii) Net investment hedging - - - - - -
(iv) Undesignated derivatives
Currency derivative - - - - - -
Financial Statements
Interest rate derivative - - - - - -
Forward exchange contract - - - - - -
Total 47,572.69 742.81 1,643.91 50,037.66 503.87 1,565.76
principal repayment date, etc.). The Group has established a hedge ratio of 1:1 for the hedging relationships as the underlying
risk of the Forward contracts/Cross currency interest rate swaps are identical to the hedged risk components.
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Notional amount 47,529.53 49,982.04
Carrying amount 901.07 1,061.89
Line item in the statement of financial position Derivative financial Derivative financial
instrument instrument
Change in fair value used for measuring ineffectiveness for the year (9.75) (253.52)
(` in Millions)
Impact of hedging item As at As at
March 31, 2022 March 31, 2021
Change in fair value (9.75) (253.52)
Cash flow hedge reserve (9.75) (253.52)
Cost of hedging - -
(` in Millions)
Effect of Cash flow hedge As at As at
March 31, 2022 March 31, 2021
Total hedging gain / (loss) recognized in OCI (9.75) (253.52)
Ineffectiveness recognized in profit or (loss) - -
NOTE 7. RECEIVABLES
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
(i) Trade Receivables
Receivables considered good - Secured 1,345.00 1,564.65
Receivables considered good - Unsecured* 483.87 358.12
Receivables considered good - significant increase in credit risk 3.85 -
Receivables - credit impaired 0.03 2.95
Total (i) - Gross 1,832.75 1,925.72
Less: Impairment loss allowance (0.80) (2.95)
Total (i) - Net 1,831.95 1,922.77
(ii) Other Receivables
Receivables considered good - Unsecured 158.00 5.10
* including receivable from Group Companies (refer note 41.2)
Notes:
1. No trade or other receivables are due from directors or other officer of the Group either severally or jointly, with any other
person. No trade or other receivables are due from firms including limited liability partnerships, private companies in
which any director is a partner or a director or a member.
2. The Group had adopted simplified approach for impairment allowance on trade receivables. Expected credit loss (“ECL”)
has been recognised on credit impaired receivables.
3. Trade receivables are non-interest bearing.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
(i) Undisputed Trade receivables – 46.37 1,781.24 1.07 0.19 - - 1,828.87
considered good
(ii) Undisputed Trade Receivables – which 3.85 - - - - 3.85
have significant increase in credit risk
(iii) Undisputed Trade Receivables – credit - - - 0.03 - 0.03
impaired
(iv) Disputed Trade Receivables– considered - - - - - -
good
Financial Statements
(v) Disputed Trade Receivables – which have - - - - - -
significant increase in credit risk
(vi) Disputed Trade Receivables – credit - - - - - -
impaired
Total 46.37 1,785.09 1.07 0.19 0.03 - 1,832.75
(` in Millions)
Particulars ( As at March 31, 2021) Outstanding for following periods from due date of payment
Not due Less 6 1-2 2-3 years More Total
than 6 months years than 3
months - 1 year years
(i) Undisputed Trade receivables – 12.08 1,624.07 286.49 0.03 0.08 0.02 1,922.77
considered good
(ii) Undisputed Trade Receivables – which - - - - - - -
have significant increase in credit risk
(iii) Undisputed Trade Receivables – credit - - 0.13 0.03 2.79 - 2.95
impaired
(iv) Disputed Trade Receivables– considered - - - - - - -
good
(v) Disputed Trade Receivables – which have - - - - - - -
significant increase in credit risk
(vi) Disputed Trade Receivables – credit - - - - - - -
impaired
Total 12.08 1,624.07 286.62 0.06 2.87 0.02 1,925.72
NOTE 8. LOANS
(` in Millions)
Particulars As at March 31, 2022
Amortized cost At Fair Value Through Total
Other Comprehensive
Income *
(A)
(i) Term Loans 266,370.77 57,124.58 323,495.35
(ii) Non Convertible Debentures - for financing real estate 17,168.44 - 17,168.44
projects
(iii) Related Parties 2.02 - 2.02
(iv) Others (Dues from Customers etc) 10,491.72 - 10,491.72
Total (A) - Gross 294,032.95 57,124.58 351,157.53
Less: Impairment loss allowance (including Stage 3 ECL on (13,728.61) (499.98) (14,228.59)
Principal ` 4,092.20 million and Stage 3 Interest ` 1,124.94
million)
Total (A) - Net 280,304.34 56,624.60 336,928.94
(B)
(i) Secured by tangible assets (refer note 8.1 and 8.2) 213,436.41 57,124.58 270,560.99
(ii) Secured by intangible assets - - -
(iii) Covered by Bank/ Government guarantees 3,449.20 - 3,449.20
(iv) Unsecured 77,147.34 - 77,147.34
Total (B) - Gross 294,032.95 57,124.58 351,157.53
Less: Impairment loss allowance (13,728.61) (499.98) (14,228.59)
Total (B) - Net 280,304.34 56,624.60 336,928.94
(C)
(I) Loans in India
(i) Public Sector - - -
(ii) Others 294,032.95 57,124.58 351,157.53
Total(C) (I) - Gross 294,032.95 57,124.58 351,157.53
Less: Impairment loss allowance (13,728.61) (499.98) (14,228.59)
Total(C) (I) - Net 280,304.34 56,624.60 336,928.94
(II) Loans outside India (C) (II) - - -
Total C (I) and C (II) 280,304.34 56,624.60 336,928.94
* Loans classified under Fair Value Through Other Comprehensive Income relate to those available for sale in their present
condition.
(` in Millions)
Particulars As at March 31, 2021
Amortized cost At Fair Value Through Total
Other Comprehensive
Income *
(A)
(i) Term Loans 260,743.51 52,662.86 313,406.37
(ii) Non Convertible Debentures - for financing real estate projects 22,713.41 - 22,713.41
(iii) Others (Dues from Customers etc) 13,651.49 - 13,651.49
Total (A) - Gross 297,108.41 52,662.86 349,771.27
Less: Impairment loss allowance (including Stage 3 ECL on (13,948.47) (491.20) (14,439.67)
Principal ` 3,828.96 million and Stage 3 Interest ` 1,169.47
million)
Total (A) - Net 283,159.94 52,171.66 335,331.60
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars As at March 31, 2021
Amortized cost At Fair Value Through Total
Other Comprehensive
Income *
(B)
Statutory Reports
(i) Secured by tangible assets (refer note 8.1 and 8.2) 238,337.53 49,451.28 287,788.81
(ii) Secured by intangible assets - - -
(iii) Covered by Bank/ Government guarantees 3,359.70 34.91 3,394.61
(iv) Unsecured 55,411.18 3,176.67 58,587.85
Total (B) - Gross 297,108.41 52,662.86 349,771.27
Less: Impairment loss allowance (13,948.47) (491.20) (14,439.67)
Total (B) - Net 283,159.94 52,171.66 335,331.60
Financial Statements
(C)
(I) Loans in India
(i) Public Sector - - -
(ii) Others 297,108.41 52,662.86 349,771.27
Total (C) (I)-Gross 297,108.41 52,662.86 349,771.27
Less: Impairment loss allowance (13,948.47) (491.20) (14,439.67)
Total (C) (I)-Net 283,159.94 52,171.66 335,331.60
(II) Loans outside India (C) (II) - - -
Total C (I) and C (II) 283,159.94 52,171.66 335,331.60
* Loans classified under Fair Value Through Other Comprehensive Income relate to those available for sale in their present
condition.
Notes:
8.1
Secured loans are secured by way of equitable mortgage of property, pledge of shares, hypothecation of assets, company
personal guarantees, physical gold, undertaking to create security. Loans secured by Government Guarantee are credit
facilities provided under the Emergency Credit Line Guarantee Scheme backed by an unconditional and irrevocable
guarantee provided by Government of India.
8.2 Secured loans include loans aggregating to ` 2,009.43 million (P.Y ` 2,677.98 million) in respect of which the creation of
security is under process.
8.3 The Group assessment of impairment loss allowance on its loans and other assets is subject to a number of management
judgments and estimates. In relation to COVID-19, judgments and assumptions included the extent and duration of
the pandemic, the impacts of actions of governments and other authorities, and the responses of businesses and
consumers in different industries, along with the associated impact on the global economy. Given the dynamic nature
of pandemic situation, the Group’s impairment loss allowance estimates are inherently uncertain due to severity and
duration of the pandemic and, as a result, actual results may differ from these estimates as on the date of approval of
these Consolidated Financial Statements.
8.4 The Group has complied with the RBI circular dated November 12, 2021 - “Prudential norms on Income Recognition, Asset
Classification and Provisioning pertaining to Advances - Clarifications’. On February 15, 2022, RBI allowed deferment till
September 30, 2022 of Para 10 of this circular pertaining to upgrade of non performing accounts. However, the Group
has not opted for this deferment.
NOTE 9. INVESTMENTS
(` in Millions)
Particulars As at March 31, 2022
At Fair Value At Amortised cost Total
through
Profit and Loss
(A)
Mutual funds 0.04 - 0.04
Alternate investment funds 10,992.17 - 10,992.17
Security receipts 4,453.91 - 4,453.91
Debt securities - 95.90 95.90
Equity instruments - 0.50 0.50
Total – Gross (A) 15,446.12 96.40 15,542.52
Less: Impairment loss allowance (3,620.91) - (3,620.91)
Total – Net (A) 11,825.21 96.40 11,921.61
(B)
(i) Investments outside India - - -
(ii) Investments in India 15,446.12 96.40 15,542.52
Total – (B) 15,446.12 96.40 15,542.52
Less: Impairment loss allowance (3,620.91) - (3,620.91)
Total Net (B) 11,825.21 96.40 11,921.61
(` in Millions)
Particulars As at March 31, 2021
At Fair Value At Amortised cost Total
through
Profit and Loss
(A)
Mutual funds 118.18 - 118.18
Alternate investment funds 71.06 - 71.06
Debt securities - 125.97 125.97
Equity instruments - 0.50 0.50
Total – Gross (A) 189.24 126.47 315.71
Less: Impairment loss allowance - - -
Total – Net (A) 189.24 126.47 315.71
(B)
(i) Investments outside India - - -
(ii) Investments in India 189.24 126.47 315.71
Total – (B) 189.24 126.47 315.71
Less: Impairment loss allowance - - -
Total Net (B) 189.24 126.47 315.71
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Direct Plan-Growth
Phi Capital Growth Fund-I 306.78 100,000.00 100.56 298.40 100,000.00 43.08
Financial Statements
Class B
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
(Unsecured, considered good)
Security deposits 409.05 324.19
Deposit with Exchange 2.50 2.80
Interest strip asset on assignment 7,955.28 3,843.01
Staff advances 2.13 1.41
Insurance receivable 505.79 525.24
Less: Provisions on insurance receivables (refer note 10.1) (266.29) (181.73)
Other receivables 573.66 342.08
Other advance 55.73 46.70
(Unsecured, considered doubtful)
Security deposit for rented premises 11.24 11.26
Less: Impairment loss allowance on security deposit (refer note 10.2) (11.24) (11.26)
Total 9,237.85 4,903.70
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Significant components of deferred tax assets and liabilities for the year ended March 31, 2022 are as follows:
(` in Millions)
Particulars Opening Recognized Recognized Closing
balance in profit and in/ balance
(as on April 1, loss account reclassified (as on March
2021) from OCI** 31, 2022)
Statutory Reports
Deferred tax assets
Property, plant and equipment 246.24 31.14 - 277.38
Provisions, allowances for doubtful receivables / loans 3,392.04 (48.14) - 3,343.90
Compensated absences and retirement benefits 58.62 7.24 0.09 65.95
Deduction for Provision for Doubtful debts - 55.74 - 55.74
MTM on derivative financial instruments 68.13 - (60.78) 7.35
Expenses deductible in future years 130.97 6.29 - 137.26
Financial Statements
C/f losses on investments - (151.74) - (151.74)
Cash flow hedge reserve 73.24 908.93 35.57 1,017.74
Fair value of loans carried at FVTOCI 1.92 - (34.36) (32.44)
Leases - Ind AS 116 71.38 13.61 - 84.99
Income amortization (net) (854.51) (1,005.26) - (1,859.77)
Provision for 36(1)(viia) (76.60) (11.65) - (88.25)
Deferred tax assets (net) 3,111.43 (193.84) (59.48) 2,858.11
Significant components of deferred tax assets and liabilities for the year ended March 31, 2021 are as follows:
(` in Millions)
Particulars Opening Recognized Recognized Closing
balance in profit and in/ balance
(as on loss account reclassified (as on March
April 1, 2020) * from OCI** 31, 2021)
Deferred tax assets
Property, plant and equipment 212.03 34.21 - 246.24
Provisions, allowances for doubtful receivables / loans 2,351.63 1,040.41 - 3,392.04
Compensated absences and retirement benefits 67.12 (3.09) (5.41) 58.62
MTM on derivative financial instruments 68.88 (36.44) 35.69 68.13
Expenses deductible in future years 89.26 41.71 - 130.97
C/f losses on investments 142.19 (142.19) - -
Cash flow hedge reserve - - 73.24 73.24
Fair value of loans carried at FVTOCI - - 1.92 1.92
Leases - Ind AS 116 47.47 23.91 - 71.38
Income amortization (net) (549.12) (305.39) - (854.51)
Provision for 36(1)(viia) - (76.60) - (76.60)
Deferred tax assets (net) 2,429.46 576.53 105.44 3,111.43
*Includes prior period amount of ` 202.94 Million.
**Excluding amount of C.Y. ` 28.48 Million (P.Y. ` 23.66 Million) towards tax expense for MTM on derivative financial instruments.
NOTE 12. INVESTMENT PROPERTY (AT COST)
(` in Millions)
Particulars Property (Flats) Building Land Total
(refer note 12.1) * (refer note 12.1)
Gross carrying value
As at April 1, 2021 1,556.02 74.84 1,121.93 2,752.79
Additions during the year - - 259.69 259.69
Deductions/adjustments during the year - - - -
As at March 31, 2022 1,556.02 74.84 1,381.62 3,012.48
Less : Impairment loss allowance/ (0.10) (8.53) (51.91) (60.54)
Adjustment
Net carrying value as at 1,555.92 66.31 1,329.71 2,951.94
March 31, 2022
Fair value as on March 31, 2022 1,759.67 87.80 1,329.89 3,177.36
(Fair value hierarchy : Level 3)
*Distress value of above flats is ` 1,578.97 Million as on March 31, 2022.
(` in Millions)
Particulars Property (Flats) Building Land Total
(refer note 12.1) * (refer note 12.1)
Gross carrying value
As at April 1, 2020 1,556.02 111.83 1,058.85 2,726.70
Additions during the year - - 63.08 63.08
Deductions/adjustments during the year - (36.99) - (36.99)
As at March 31, 2021 1,556.02 74.84 1,121.93 2,752.79
Less : Impairment loss allowance (0.07) (4.79) (37.33) (42.19)
Net carrying value as at 1,555.95 70.05 1,084.60 2,710.60
March 31, 2021
Fair value as on March 31, 2021 1,710.35 86.84 1,084.82 2,882.02
(Fair value hierarchy : Level 3)
Note 12.1: Management has acquired possession of these properties in satisfaction of the debts and intends to dispose them
in due course, subject to conducive market conditions. These properties have been valued taking into consideration various
factors such as location, facilities & amenities, quality of construction, percentage of completion of construction (as for some
properties the construction is currently on hold), residual life of building, business potential, supply & demand, local nearby
enquiry, market feedback of investigation and ready recknor published by government. These valuations has been performed
by an independent registered valuer registered under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
The fair values are based on market values, being the estimated amount for which a property could be exchanged in an arm’s
length transaction. These properties are not depreciated as they have not been put to use.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Additions during the year - 6.69 497.66 0.16 178.06 - 133.65 269.00 1,085.22
Deductions/adjustments - (1.51) (17.81) (1.55) (1.74) (113.72) (9.34) (50.73) (196.40)
As at March 31, 2022 0.86 22.52 1,359.65 15.73 289.72 245.59 401.92 698.90 3,034.89
Depreciation
As at April 1, 2021 - 11.00 424.67 14.66 69.45 84.60 136.80 361.97 1,103.15
Depreciation for the year - 4.60 240.01 2.23 41.16 21.15 82.18 132.65 523.98
Deductions/adjustments - (1.29) (13.88) (1.55) (1.40) (35.17) (7.24) (36.93) (97.46)
Financial Statements
Up to March 31, 2022 - 14.31 650.80 15.34 109.21 70.58 211.74 457.69 1,529.67
Net block as at March 31, 2022 0.86 8.21 708.85 0.39 180.51 175.01 190.18 241.21 1,505.22
(` in Millions)
Particulars Freehold Electrical Furniture Vehicles Office Buildings Plant & Computer Total
Land * Equipment And Equipment Equipment
Fixtures
Cost as at April 1, 2020 0.86 17.94 732.04 17.12 136.04 359.31 198.85 472.81 1,934.97
Additions during the year - 2.36 176.24 - 15.52 - 45.80 62.12 302.04
Deductions/adjustments - (2.96) (28.48) - (38.16) - 32.96 (54.30) (90.94)
As at March 31, 2021 0.86 17.34 879.80 17.12 113.40 359.31 277.61 480.63 2,146.07
Depreciation
As at April 1, 2020 - 10.33 296.40 12.01 67.85 63.45 85.02 258.41 793.47
Depreciation for the year - 2.81 138.54 2.65 16.24 21.15 50.19 143.16 374.74
Deductions/adjustments - (2.14) (10.27) - (14.64) - 1.59 (39.60) (65.06)
Up to March 31, 2021 - 11.00 424.67 14.66 69.45 84.60 136.80 361.97 1,103.15
Net block as at March 31, 2021 0.86 6.34 455.13 2.46 43.95 274.71 140.81 118.66 1,042.92
* The above freehold Land is hypotheticated with Debenture Trustee(s) for issue of secured non-convertible debentures.
No projects were delayed for completion or had exceeded its cost compared to its original plan.
As a Lessee
a) Changes in the carrying value of right to use assets:
(` in Millions)
Particulars Premises Vehicle Total
Opening Balance as at April 01, 2021 2,977.57 8.42 2,985.99
Addition during the year 1,017.53 11.19 1,028.72
Deduction/Adjustment (60.40) - (60.40)
Depreciation during the year (671.35) (7.66) (679.01)
Closing Balance as at March 31, 2022 3,263.35 11.95 3,275.30
(` in Millions)
Particulars Premises Vehicle Total
Opening Balance as at April 01, 2020 2,749.84 21.42 2,771.26
Addition during the year 1,016.45 1.54 1,017.99
Deduction/Adjustment (149.78) (3.63) (153.41)
Depreciation during the year (638.94) (10.91) (649.85)
Closing Balance as at March 31, 2021 2,977.57 8.42 2,985.99
(` in Millions)
Particulars Premises Vehicle Total
Balance as at April 01, 2020 2,890.93 22.60 2,913.53
Addition during the year 1,011.46 1.55 1,013.01
Deduction/Adjustment (160.00) (3.86) (163.86)
Finance cost accrued during the period 268.04 1.41 269.45
Payment of lease liabilities (754.73) (12.38) (767.11)
Closing Balance as at March 31, 2021 3,255.70 9.32 3,265.02
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Two to five years 1,775.02 1,660.16
More than five years 916.20 1,189.18
Total 4,603.27 4,357.21
e) Rental expense recorded for short-term leases was ` 197.59 Million (P.Y ` 130.15 Million)
Financial Statements
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Interest on lease liabilities 307.87 269.45
Expenses relating to leases of low-value assets, excluding short-term leases of 4.59 4.66
low value assets
Depreciation relating to leases 679.03 649.86
Total 991.49 923.97
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Total cash outflow for leases 927.55 767.11
(` in Millions)
Particulars Software
Cost or valuation as at April 01, 2021 79.70
Additions during the year 19.87
Deductions /Adjustments -
As at March 31, 2022 99.57
Amortizations
As at April 01, 2021 68.25
Additions during the year 10.20
Deductions /Adjustments -
Up to March 31, 2022 78.45
Net block as at March 31, 2022 21.12
(` in Millions)
Particulars Software
Cost or valuation as at April 01, 2020 56.69
Additions during the year 23.01
Deductions /Adjustments -
As at March 31, 2021 79.70
Amortizations
As at April 01, 2020 44.18
Additions during the year 24.07
Deductions /Adjustments -
Up to March 31, 2021 68.25
Net block as at March 31, 2021 11.45
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Unsecured, considered good
Prepaid expenses 540.42 143.96
Receivable from securitization trust 2,364.98 2,312.07
Advances for operational expenses 430.32 501.77
Deposit with government 19.71 18.92
GST / Service tax input 51.99 159.43
Advance towards gratuity (refer note 33.2) 11.77 8.25
Capital Advance 0.65 1.82
Other assets 106.11 3.79
Total 3,525.95 3,150.01
* Includes foreign currency payments amounting to ` 90.70 Million (P.Y ` 90.70 Million)
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Assets held for sale 175.51 139.46
Total 175.51 139.46
(i) Assets held for sale is towards a Group’s owned property which it intends to sell in the near future.
(ii) The Group follows various collection mechanisms for recovery of dues from the borrowers, which involves initiating
SARFAESI, actual/physical repossession of assets after eviction in lieu of the loan outstanding and subsequent sale of
repossessed assets via auction process in case of default by the borrowers. The Company’s endeavour is to sell the
re-possessed assets, in a public auction and realise the sale proceeds to recover the Loan amount outstanding at the
earliest. The Customer has all opportunity to repay the Loan amount before finalization of sale of the property and take
back the possession. Since borrowers may settle the loans and in such cases, the property is handed back to them(in
case the property is not yet sold in auction), the Company’s management is of the view that acquiring such properties
does not change the nature of the assets and that such re-possessed assets continue to be classified as financial
assets. Therefore, such re-possessed properties are not classified as Assets Held for Sale as per IND AS 105. Expert
Advisory Committee of the Institute of Chartered Accountants of India has been approached by the Company for an
opinion in the classification of such repossessed assets as “Non- Current Assets Held For Sale”, which is awaited.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Trade payables
(i) Total outstanding dues of micro enterprises and small enterprises - -
Statutory Reports
(Refer note 18.1)
(ii) Total outstanding dues of creditors other than micro enterprises and small
enterprises
Outstanding dues of creditors 228.94 146.91
Accrued salaries and benefits 28.50 23.08
Provision for expenses 1,131.73 914.13
Other trade payables * 35.10 9.79
Financial Statements
Total 1,424.27 1,093.91
(II) Other Payables
(i) Total outstanding dues of micro enterprises and small enterprises - -
(ii) Total outstanding dues of creditors other than micro enterprises and 99.06
small enterprises
Total 99.06 -
Note 18.1 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006
The following disclosure is made as per the requirement under The Micro, Small and Medium Enterprises Development Act,
2016 (“MSMED Act”) on the basis of confirmations sought from suppliers on registration with the specified authorities under
MSMED:
(` in Millions)
Particulars 2021-2022 2020-2021
(a) Principal amount remaining unpaid to any supplier at the year end - -
(b) Interest due thereon remaining unpaid to any supplier at the year end - -
(c) Amount of interest paid and payments made to the supplier beyond the - -
appointed day during the year
(d) Amount of interest due and payable for the period of delay in making - -
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the Act
(e) Amount of interest accrued and remaining unpaid at the year end - -
(f)
Amount of further interest remaining due and payable even in the - -
succeeding years, until such date when the interest dues above are actually
paid to the small enterprise, for the purpose of disallowance of a deductible
expenditure under section 23 of the Act
The aforementioned is based on the responses received by the Group to its inquiries with suppliers with regard to applicability
under the said Act. This has been relied upon by the auditors.
No interest has been paid/is payable by the Group during the year to the suppliers registered under this Act.
(` in Millions)
Particulars Outstanding for following periods from due date of payment
As at March 31, 2021 Unbilled Less than 1-2 years 2-3 More Total
1 year years than 3
years
(i) MSME - - - - -
(ii) Others 335.50 745.33 5.11 0.29 7.68 1,093.91
(iii) Disputed dues – MSME - - - - -
(iv) Disputed dues - Others - - - - -
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Fixed: 68,840.51 62,093.63
More than 5 years 5.00 % - 9.18% 19,359.13 8.60% - 9.18% 6,370.00
3- 5 years 8.20 % - 10.33% 4,915.84 10.05% - 10.33% 300.00
1-3 years 8.25% - 11.50% 37,967.55 8.00% - 15.25% 39,746.83
Less than 1 years 7.75% -15.25% 6,597.99 7.70% - 10.50% 15,676.80
Floating:^ 281.25 2,843.75
1-3 years 0.00% - 8.56% 281.25
Financial Statements
Less than 1 years 7.51% 281.25 8.56% - 9.40% 2,562.50
Zero Coupon: 5,514.82 13,440.60
More than 5 years 8.75% 55.27
3- 5 years 8.50% - 8.75% 335.57 9.00% - 10.30% 1,291.89
1-3 years 8.00 % - 10.30% 3,256.57 9.35% - 9.85% 2,259.53
Less than 1 years 9.35% - 9.85% 1,867.41 8.20% - 10.20% 9,889.18
Commercial Papers (Unsecured): 1,009.00 -
Less than 1 years 6.30 % - 6.35% 1,009.00 - -
Total 75,645.58 78,377.98
^ The floating rate non convertible debentures are linked with Government securities / Treasury Bills interest rates plus
applicable spread.
(` in Millions)
Description of security Coupon/ As at As at
Yield March 31, 2022 March 31, 2021
G-sec Linked Secured Rated Listed Redeemable Market Linked 9.00% 748.00 -
Principal Protected Non Convertible Debentures. Date Of Maturity
30/04/2024
G-sec Linked Secured Rated Listed Redeemable Market Linked 7.75% 500.00 -
Principal Protected Non Convertible Debentures. Date Of Maturity
26/12/2022
8.62% Secured Rated Listed Redeemable Non Convertible 8.62% 190.00 -
Debentures.Series D4.Date Of Maturity 12/03/2028
8.70% Secured Rated Listed Redeemable Non Convertible 8.70% 360.00 -
Debentures.Series D5.Date Of Maturity 16/04/2029
8.70% Secured Rated Listed Redeemable Non Convertible 8.70% 1,090.00 -
Debentures.Series D6.Date Of Maturity 14/05/2030
8.20% Secured Rated Listed Redeemable Non Convertible 8.20% 1,120.00 -
Debentures.Series D7.Date Of Maturity 28/09/2026
8.25% Secured Rated Listed Redeemable Non Convertible 8.25% 2,257.16 -
Debenture. Series I Tranche II. Date Of Maturity 03/01/2025
Secured Rated Listed Redeemable Non Convertible Debenture. 8.25% 267.33 -
Series II Tranche II. Date Of Maturity 03/01/2025.
8.20% Secured Rated Listed Redeemable Non Convertible 8.20% 526.52 -
Debenture. Series III Tranche II. Date Of Maturity 03/01/2027
8.50% Secured Rated Listed Redeemable Non Convertible 8.50% 135.98 -
Debenture. Series IV Tranche II. Date Of Maturity 03/01/2027
Secured Rated Listed Redeemable Non Convertible Debenture. 8.50% 42.49 -
Series V Tranche II. Date Of Maturity 03/01/2027.
8.43% Secured Rated Listed Redeemable Non Convertible 8.43% 537.36 -
Debenture. Series VI Tranche II. Date Of Maturity 03/01/2029.
8.75% Secured Rated Listed Redeemable Non Convertible 8.75% 221.77 -
Debenture. Series VII Tranche II. Date Of Maturity 03/01/2029
Secured Rated Listed Redeemable Non Convertible Debenture. 8.75% 55.27 -
Series VIII Tranche II. Date Of Maturity 03/01/2029
8.59% Secured Rated Unlisted Redeemable Non Convertible 8.59% 4,333.00 -
Debenture. Series Ad I.Date Of Maturity 25/02/2030
5.00% Secured Rated Unlisted Redeemable Non Convertible 5.00% 747.00 -
Debenture. Series Ad II. Date Of Maturity 28/02/2031
Zero Coupon Secured Listed Redeemable Non Convertible 8.20% - 270.60
Debentures. Series B8 Option B. Date of Maturity 06/04/2021
8.00% Secured Redeemable Non-Convertible Debentures. Series 8.00% - 2,500.00
C6. Date of Maturity 29/04/2021
Zero Coupon Secured Redeemable Non-Convertible Debentures. 8.75% - 100.00
Series C8. Date of Maturity 30/04/2021
Zero Coupon Secured Rated Listed Redeemable Non-Convertible 8.70% - 532.56
Debentures. Series B9 Option B. Date of Maturity 30/04/2021
Zero Coupon Secured Rated Listed Redeemable Non Convertible 9.25% - 500.00
Debentures. Series B12 Option 1. Date of Maturity 19/05/2021
Zero Coupon Secured Listed Rated Redeemable Non Convertible 9.25% - 260.00
Debentures. Series C10. Date of Maturity 25/05/2021
Zero Coupon Secured Rated Listed Redeemable Non Convertible 8.80% - 260.00
Debentures. Series B10 Option B. Date of Maturity 25/05/2021
IDFC MCLR Linked Secured Rated Listed Redeemable Non 9.20% - 2,000.00
Convertible Debentures. Series B11. Date of Maturity 28/06/2021
Zero Coupon Secured Non Convertible Debentures - G-Sec MLD 9.50% - 1,070.13
2021. D3 Option I Date of Maturity - 27/09/2021
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Description of security Coupon/ As at As at
Yield March 31, 2022 March 31, 2021
Zero Coupon Secured Rated Listed Redeemable Non Convertible 9.35% - 240.00
Debentures. Series C3 Option 2. Date of Maturity 15/07/2021
Zero Coupon Secured Rated Listed Redeemable Non Convertible 9.35% - 2,350.59
Debentures. Series C3 Option 1. Date of Maturity 26/07/2021
Statutory Reports
Zero Coupon Secured Rated Listed Redeemable Non Convertible 9.25% - 250.00
Debentures. Series B12 Option 2. Date of Maturity 05/08/2021
Zero Coupon Secured Rated Listed Redeemable Non Convertible 9.35% - 967.80
Debentures. Series C4. Date of Maturity 11/08/2021
Nifty Linked Secured Listed Redeemable Non Convertible 9.96% - 1,110.00
Debentures. Date of Maturity 19/10/2021
Nifty Linked Secured Listed Redeemable Non Convertible 9.75% - 1,000.00
Debentures. Date of Maturity 19/10/2021
Financial Statements
Nifty Linked Secured Listed Redeemable Non Convertible 9.87% - 500.00
Debentures. Date of Maturity 19/10/2021
Nifty Linked Secured Listed Redeemable Non Convertible 9.93% - 250.00
Debentures. Date of Maturity 19/10/2021
Zero Coupon Secured Rated Listed Redeemable Non Convertible 10.20% - 100.00
Debentures. Series C9. Date of Maturity 26/10/2021
10.20% Secured Redeemable Non Convertible Debentures. Date of 10.20% - 2,875.00
Maturity 03/11/2021
8.90% Secured Redeemable Non-Convertible Debentures. Series 8.90% - 50.00
B2 Option I. Date of Maturity 03/11/2021
8.00% 10 Year G-SEC Rate Linked Secured Rated Listed Redeemable 8.00% - 751.80
Non Convertible Debenture Series D8. Date of Maturity 01/12/2021
8.00% Secured Rated Listed Redeemable Non Convertible 8.00% - 2,000.00
Debenture Series D6. Date of Maturity 07/01/2022
9.38% Secured Rated Listed Redeemable Non Convertible 9.38% - 500.00
Debentures. Series C3 Option 3. Date of Maturity 24/01/2022
8.00% Secured Rated Listed Redeemable Non Convertible 8.00% - 1,000.00
Debenture Series D7. Date of Maturity 18/02/2022
Nifty Linked Secured Listed Redeemable Non Convertible 8.73% - 127.50
Debentures. Date of Maturity 14/03/2022
7.70% Secured Rated Listed Redeemable Senior Non Convertible 7.70% - 1,000.00
Debenture Series D12. Date of Maturity 24/03/2022
8.00% Secured Rated Listed Redeemable Senior Non Convertible 8.00% - 2,250.00
Debenture Series D9. Date of Maturity 30/03/2022
Zero Coupon Secured Rated Listed Redeemable Non Convertible 9.45% 240.00 240.00
Debentures. Series C7. Date of Maturity 04/04/2022
G-Sec Linked Secured Rated Listed Redeemable Non Convertible 9.35% 298.00 334.00
Debentures. Series C6. Date of Maturity 21/04/2022
9.50% Secured Rated Listed Redeemable Non Convertible 9.50% 2,605.00 2,605.00
Debenture. Series I. Date of Maturity 07/05/2022
9.60% Secured Rated Listed Redeemable Non Convertible 9.60% 366.92 364.44
Debenture. Series I. Date of Maturity 07/05/2022
Zero Coupon Secured Rated Listed Redeemable Non Convertible 9.60% 422.42 437.10
Debenture. Series II - Category II,III & IV. . Date of Maturity
07/05/2022
10.00% Secured Rated Listed Redeemable Non Convertible 10.00% - 250.00
Debentures. SMFL NCD Series 5 Date of Maturity 11/02/2022
10.00% Secured Rated Listed Redeemable Non Convertible 10.00% - 250.00
Debentures. SMFL NCD Series 5 Date of Maturity 11/02/2022
10.00% Secured Rated Listed Redeemable Non Convertible 10.00% - 500.00
Debentures. SMFL NCD Series 5 Date of Maturity 11/02/2022
(` in Millions)
Description of security Coupon/ As at As at
Yield March 31, 2022 March 31, 2021
8.00% Secured Redeemable Non Convertible Debentures. Series 8.00% - 1,250.00
Series D1. Date of Maturity: 18/02/2022
8.61% Secured Rated Listed Redeemable Non Convertible 8.56% 281.25 843.75
Debentures. Series B10 Option A. Date of Maturity 13/05/2022
8.00% Secured Rated Listed Redeemable Senior Non Convertible 8.00% 1,000.00 1,000.00
Debenture Series D10. Date of Maturity 17/05/2022
8.00% Secured Rated Listed Redeemable Non Convertible 8.00% 250.00 250.00
Debenture Series D11. Date of Maturity 26/05/2022
G-sec Linked Secured Rated Listed Senior Redeemable Principal 9.55% 150.00 150.00
Protected Market Linked Non Convertible Debentures. Series 1.
Date of Maturity 02/06/2022
15.25% Secured Redeemable Non-Convertible Debentures. Date of 15.25% 50.00 50.00
Maturity 30/06/2022
Zero Coupon Secured Rated Listed Redeemable Non Convertible 9.55% 580.00 580.00
Debentures. Series C8. Date of Maturity 29/09/2022
Zero Coupon Secured Non Convertible Debentures - Nifty Enhancer 9.50% 219.30 254.50
Structure- MLD 2022. D3 Option II. Date of Maturity 27/09/2022
9.50% Secured Non Convertible Debentures - Tranche II. Series II. 9.50% 331.65 343.16
Date of Maturity 06/12/2022
Zero Coupon Secured Non Convertible Debentures - Tranche II. 9.85% 107.69 113.93
Series III. Date of Maturity 06/12/2022
9.85% Secured Non Convertible Debentures - Tranche II. Series IV. 9.85% 644.42 646.96
Date of Maturity 06/12/2022
G-sec Linked Secured Rated Listed Senior Redeemable Principal 9.65% 150.00 150.00
Protected Market Linked Non Convertible Debentures. Series 2.
Date of Maturity 02/01/2023
9.75% Secured Redeemable Non Convertible Debentures - Series 9.85% 50.00 50.00
D4. Date of Maturity 17/01/2023
10.50% Secured Rated Unlisted Redeemable Non Convertible 10.50% 500.00 1,000.00
Debentures. Date of Maturity 18/03/2023
9.00% Secured Rated Listed Redeemable Non Convertible 9.00% 1,000.00 1,000.00
Debenture Series D5. Date of Maturity 08/05/2023
11.50% Rated, Listed, Senior, Secured, Taxable, Redeemable Non 11.50% 200.00 200.00
Convertible Debentures. Series 1. Date of Maturity 05/06/2023
11.50% Rated, Listed, Senior, Secured, Taxable, Redeemable Non 11.50% 150.00 150.00
Convertible Debentures. Series 1. Date of Maturity 05/06/2023
11.50% Rated, Listed, Senior, Secured, Taxable, Redeemable Non 11.50% 250.00 250.00
Convertible Debentures. Series 1. Date of Maturity 05/06/2023
11.50% Secured Listed, Rated Senior Taxable Redeemable Non- 11.50% 1,000.00 1,000.00
Convertible Debentures. SMFL NCD Series 3. Date of Maturity
21/04/2023
11.50% Secured Listed, Rated Senior Taxable Redeemable Non- 11.50% 150.00 150.00
Convertible Debentures. SMFL NCD Series 3. Date of Maturity
21/04/2023
11.50% Rated, Listed, Senior, Secured, Redeemable, Taxable, INR 11.50% 250.00 250.00
Denominated Non-Convertible Debentures. SMFL NCD Series 4.
Date of Maturity 10/07/2023
9.75% Secured Rated Listed Redeemable Non Convertible 9.75% 1,704.24 1,729.16
Debenture. Series III. Date of Maturity - 07/02/2024
10.20% Secured Rated Listed Redeemable Non Convertible 10.20% 1,118.01 1,133.88
Debenture. Series IV. Date of Maturity - 07/02/2024
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Description of security Coupon/ As at As at
Yield March 31, 2022 March 31, 2021
G-sec Linked Secured Rated Listed Principal Protected Redeemable 9.12% 501.89 501.89
Non Convertible Debentures. Series C 12. Date of Maturity
25/04/2024
G-sec Linked Secured Rated Listed Senior Redeemable Market 9.00% 590.00 590.00
Statutory Reports
Linked Principal Protected Non Convertible Debentures. Date of
Maturity 30/04/2024
G-sec Linked Secured Rated Unlisted Principal Protected 10.30% 200.00 200.00
Redeemable Non Convertible Debentures. Series C 14. Date of
Maturity 27/06/2024
10.33% Secured Rated Listed Redeemable Non Convertible 10.33% 150.00 150.00
Debenture. Series C11. Date of Maturity - 19/12/2025
10.05% Secured Rated Listed Redeemable Non Convertible 10.05% 150.00 150.00
Financial Statements
Debenture. Series C13. Date of Maturity 20/03/2026
5.875% Secured MTN Dollar Bond. Date of Maturity- 20/04/2023 * 11.03% 24,534.03 28,074.23
(P.Y. 11.09%)
8.60% Secured Redeemable Non Convertible Debentures. Series. 8.60% 180.00 180.00
Seris D3.Date of Maturity : 11/02/2028
8.62% Secured Redeemable Non Convertible Debentures. Series. 8.62% - 190.00
Series D4.Date of Maturity 12/03/2028
9.18% Secured Redeemable Non Convertible Debentures. Series 9.18% 3,000.00 3,000.00
C15. Date of Maturity 03/10/2029
8.69% Secured Redeemable Non Convertible Debentures. Series. 8.69% 3,000.00 3,000.00
Series D2. Date of Maturity 12/11/2030.
TOTAL 74,636.58 78,377.98
* includes hedging cost
(b) During the year ended March 31, 2022, the Company had borrowed ` 3,792.50 Million (equivalent to USD 50 Million)
under the External Commercial Borrowings towards refinancing of existing outstanding Medium Term Notes. These
are secured by way of all rights, titles, interest, benefits, claims and demands, whatsoever of the Company in, to and
in respect of, all present and future, receivables/assets, including Company’s accounts, operating cash flows, current
assets, book debts, stock in trade,loans and advances and receivables, both present and future to the extent of complying
with the Security Coverage Ratio.
(c) These loans are secured by way of first paripassu charge by way of hypothecation on the standard receivables of the
company with asset cover of 1.20 times of the sanction amount.
Note 20.1 - Terms of repayment of Term loans
Residual Maturity As at March 31, 2022 As at March 31, 2021
Rate of Interest/ Amount Rate of Interest/ Amount
Yield (` in Millions) Yield (` in Millions)
Term loans from Banks and Financial
institutions:*
Fixed: 22,193.21 14,811.63
More than 5 years 8.70% 90.00
3- 5 years 8.45%-9.80% 1,317.90 8.62% - 11.50% 983.66
1-3 years 8.00% -11.50% 11,247.48 8.10% - 12.00% 8,388.25
Less than 1 year 7.05% -12.00% 9,627.83 7.00% - 12.00% 5,349.72
Floating: 168,815.44 121,584.57
More than 5 years 7.70% - 9.50% 14,259.62 7.80% - 9.50% 10,623.50
3- 5 years 7.70% -9.75% 23,132.28 7.60% - 10.30% 17,387.04
1-3 years 7.40% -11.00% 73,840.97 7.50% - 11.75% 52,238.16
Less than 1 year 6.00%-11.75% 57,582.57 6.21% - 12.15% 41,335.87
Term loans from NHB:
Fixed: 27,636.98 27,455.97
More than 5 years 2.94 % - 6.85 % 6,526.29 3.00% - 8.95% 6,030.38
3- 5 years 2.94 % - 8.18 % 5,941.45 3.00% - 8.95% 5,763.08
1-3 years 2.94 % - 8.18 % 9,098.82 3.00% - 8.95% 7,319.86
Less than 1 year 2.94 % - 8.80 % 6,070.42 3.00% - 8.95% 8,342.65
Term loans from others:**
Floating: 7,579.25 7,311.00
3- 5 years 8.62% 7,579.25 8.62% 7,311.00
Total 226,224.88 171,163.17
* The rate of interest for the above term loans is linked to marginal cost of funds based lending rate/ treasury bills plus
applicable spread. The above categorization of loans has been based on the interest rates prevalent as on the respective
reporting dates.
** The rate of interest for the above loan is linked to the benchmark plus appropriate spread.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Less than 1 year 6.35% - 7.80% 145.94 6.45% - 8.20% 274.35
Total 27,415.93 45,099.28
***The rate of interest for the above loans is linked to marginal cost of funds based lending rate/ fixed deposits plus applicable
spread. The above categorization of loans has been based on the interest rates prevalent as on the respective reporting dates.
Financial Statements
Particulars At Amortized Cost
As at As at
March 31, 2022 March 31, 2021
(A)
(i) Non Convertible Debentures (Refer Note 21.1, 21.2 and 21.3) 24,298.04 21,349.52
Less : Unamortised debenture issue expenses (503.14) (340.35)
(ii) Interest accrued but not due 1,885.59 2,010.11
Total (A) 25,680.49 23,019.28
(B)
Subordinated liabilities in India 22,209.63 19,550.64
Subordinated liabilities outside India 3,470.86 3,468.64
Total (B) 25,680.49 23,019.28
21.2: Non Convertible Debentures – Unsecured includes redeemable non convertible debenture which carries call option
` 100.00 Million (from February 28, 2024), ` 1,265.16 Million (from May 14, 2024), ` 400.00 Million (from June 18, 2025) and
` 300.00 Million (from July 14, 2025) {as at March 31, 2021 Non Convertible Debentures – Unsecured includes redeemable
non convertible debenture which carries call option ` 100.00 Million (from February 28, 2024) , ` 1,265.16 Million (from May
14, 2024), ` 400.00 Million (from June 18, 2025) and ` 300.00 Million (from July 14, 2025)}.
21.3: Includes debentures amounting to ` 110 Million (P.Y ` 110 Million) in respect of which the company is having a call
option at the end of the 5th year from the date of allotment July 20, 2018 and every year there after.
(` in Millions)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Statutory Reports
Nifty Linked Unsecured Listed Subordinated Redeemable Non-
10.15% 671.50 671.50
Convertible Debentures. Date of Maturity 19/04/2024
Financial Statements
Tranche II. Series VI. Date of Maturity 06/06/2025
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Temporary overdrawn bank balances 7,471.86 4,633.92
Payable on account of assignment/securitization 20,233.37 15,811.40
Payable towards NCD 34.60 41.13
Unclaimed dividend 5.19 5.52
Other payables (auction proceeds, retention payable, etc.) (refer note 22.1 and 22.2) 461.32 421.80
Total 28,206.34 20,913.77
Note 22.1: During the year, amount of ` 5.94 million (P.Y ` 3.45 million) was transferred to Investor Education and Protection
Fund (IEPF). ` 0.66 million was pending to be transferred as on March 31, 2021 and was transferred within 30 days of
becoming due. As of March 31, 2022, ` 0.12 Millions (P.Y. ` 0.05 Millions) was due for transfer to the IEPF. The same has been
subsequently transferred.
Note 22.2: Includes liability towards Credit Link Subsidy Scheme received from NHB of ` 0.37 Million (P.Y ` 0.16 Million)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(ii) Reconciliation of the shares outstanding at the beginning and at the end of the year
Statutory Reports
Add: Shares issued during the year 758,035 1.52 499,754 1.00
Outstanding at the end of the year 379,598,711 759.20 378,840,676 757.68
Financial Statements
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets
of the Company after distribution of all preferential amounts. However, no such preferential amount exists currently. The
distribution will be in proportion to the number of equity shares held by the shareholders.
(vi) During the period of five years immediately preceding the Balance Sheet date, the Company has not issued any shares
without payment being received in cash or by way of bonus shares or shares bought back except for 58,654,556 equity
shares alloted on account of merger during the year ended March 31, 2020.
(vii) Shares reserved for issue under options and contracts/ commitments for sale of shares/ disinvestments, including the
terms and amount: Refer note 39 for details of shares reserved for issue under Employee Stock Option Plan of the Group.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Retained Earnings
Opening Balance 15,899.31 11,055.30
Add: Profit for the year 11,878.93 7,601.18
Statutory Reports
Less: Interim dividend (1,328.20) (1,135.41)
Add: Change in minority 3.67 2.73
Add/(Less): Transfer to/ (from) reserves (3,126.57) (1,624.59)
Add: Addition during the year - 0.10
Closing Balance 23,327.14 15,899.31
Stock Compensation Reserve
Financial Statements
Opening Balance 159.06 174.14
Add: Addition during the year 30.98 4.36
Add/(Less): Transfer to/ (from) reserves (48.22) (19.44)
Closing Balance 141.82 159.06
Effective portion of Cash Flow Hedges
Opening Balance (384.14) (130.62)
Add: Other comprehensive income/ (loss) (9.76) (253.52)
Closing Balance (393.90) (384.14)
Fair value of loans carried at FVTOCI
Opening Balance (5.72) -
Add: Other comprehensive income/ (loss) 102.16 (5.72)
Closing Balance 96.44 (5.72)
Remeasurements of defined benefit
Opening Balance (36.57) (52.66)
Add: Other comprehensive income/ (loss) (0.21) 16.09
Closing Balance (36.78) (36.57)
Total 63,879.09 53,117.45
NON-CONTROLLING INTEREST
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Opening Balance 59.11 56.40
Profit for the year 3.57 6.92
Other comprehensive income (0.05) (0.02)
Interim dividend - (1.46)
Change in minority (3.67) (2.73)
Closing balance 58.96 59.11
(` in Millions)
Particulars FY 2021-22 FY 2020-21
On financial On financial On Total On On On Total
assets assets financial financial financial financial
measured classified assets assets assets assets
at at fair value classified measured classified classified
amortized through at fair at at fair at fair
cost profit or value amortized value value
loss through cost through through
OCI profit or OCI
loss
Interest on loans 53,391.17 - 6,833.11 60,224.28 45,495.17 - 7,480.78 52,975.95
Interest on investments 9.01 696.17 - 705.18 12.34 129.12 - 141.46
Interest on deposits with 900.12 - - 900.12 827.29 - - 827.29
banks
Interest on inter corporate 118.93 - - 118.93 267.35 - - 267.35
deposit
Other income 0.18 - - 0.18 - - - -
Total 54,419.41 696.17 6,833.11 61,948.69 46,602.15 129.12 7,480.78 54,212.05
The Group received dividend income amounting to ` 0.01 Million (P.Y ` 59.44 Million).
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Administration fees & other charges 1,379.35 978.73
Insurance commission 152.64 133.82
Total 1,531.99 1,112.55
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Gain/(loss) on cancellation of forwards, swaps, options and modification - 174.98
Profit on sale of Held for Sale Assets 15.39 -
Marketing, advertisement and support service fees 1 331.51 1,107.84
Miscellaneous income 341.90 185.56
Total 1,699.14 1,499.14
Financial Statements
Particulars On Financial liabilities measured at
Amortized Cost
FY 2021-22 FY 2020-21
Interest on debt securities (refer note 30.1) 8,498.16 8,345.89
Interest on borrowings (other than debt securities) (refer note 30.1) 17,804.30 15,091.90
Interest on subordinated liabilities 2,347.16 1,826.37
Interest on inter corporate deposit 91.95 88.93
Interest expense on lease - Ind AS 116 307.87 269.45
Other borrowing cost (refer note 30.1) 860.61 635.73
Total 29,910.05 26,258.27
Note 30.1: Includes foreign currency expenses amounting to ` 2,515.44 Million (P.Y ` 2,014.39 Million)
NOTE 31. NET (GAIN)/ LOSS ON DERECOGNITION OF FINANCIAL INSTRUMENTS UNDER AMORTISED COST CATEGORY
(` in Millions)
Particulars FY 2021-22 FY 2020-21
(A) Net (gain) on derecognition of financial instruments under amortised
cost category
- Interest strip on assignment of loans (4,112.27) (1,297.66)
(B) Net loss on derecognition of financial instruments under amortised cost
category
- Bad debts written off (net) 9,042.17 6,482.98
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Table Showing Change in the Present Value of Projected Benefit Obligation
Present Value of Benefit Obligation at the Beginning of the Year 281.15 246.37
Interest Cost 17.91 15.32
Current Service Cost 62.95 63.92
Statutory Reports
Past Service Cost - -
Liability Transferred In/ Acquisitions 2.54 11.54
(Liability Transferred Out/ Divestments) (3.27) (13.52)
(Gains)/ Losses on Curtailment - -
(Liabilities Extinguished on Settlement) - -
(Benefit Paid Directly by the Employer) (0.05) (8.28)
Financial Statements
(Benefit Paid From the Fund) (29.96) (17.50)
The Effect Of Changes in Foreign Exchange Rates - -
Actuarial (Gains)/Losses on Obligations - Due to Change in Demographic (0.02) (6.81)
Assumptions
Actuarial (Gains)/Losses on Obligations - Due to Change in Financial Assumptions (23.35) (6.83)
Actuarial (Gains)/Losses on Obligations - Due to Experience 19.80 (3.04)
Present Value of Benefit Obligation at the End of the Year 327.70 281.17
(` in Millions)
Table Showing Change in the Fair Value of Plan Assets FY 2021-22 FY 2020-21
Fair Value of Plan Assets at the Beginning of the Year 258.92 193.93
Interest Income 16.89 12.15
Contributions by the Employer 50.07 65.54
Expected Contributions by the Employees - -
Assets Transferred In/Acquisitions - -
(Assets Transferred Out/ Divestments) - -
(Benefit Paid from the Fund) (29.95) (17.50)
(Assets Distributed on Settlements) - -
Effects of Asset Ceiling - -
The Effect of Changes In Foreign Exchange Rates - -
Return on Plan Assets, Excluding Interest Income (3.92) 4.80
Fair Value of Plan Assets at the End of the Year 292.01 258.92
(` in Millions)
Amount Recognized in the Balance Sheet FY 2021-22 FY 2020-21
(Present Value of Benefit Obligation at the end of the Year) (327.70) (281.17)
Fair Value of Plan Assets at the end of the Year 292.01 258.92
Funded Status (Surplus/ (Deficit)) (35.69) (22.25)
Net (Liability)/Asset Recognized in the Balance Sheet (35.69) (22.25)
Assets recognised in the Balance Sheet under "Other non-financial assets" 11.78 8.25
Liabilities recognised in the Balance Sheet under "Provisions" (47.47) (30.50)
Unfunded gratuity- The above table does not depict unfunded gratuity liability amounting to ` 0.45 Million, correspondingly
expense of the equivalent amount has been charged to Profit and Loss A/c
(` in Millions)
Net Interest Cost for Current Year FY 2021-22 FY 2020-21
Present Value of Benefit Obligation at the Beginning of the Year 281.15 246.37
(Fair Value of Plan Assets at the Beginning of the Year) (258.92) (193.93)
Net Liability/(Asset) at the Beginning 22.23 52.44
Interest Cost 17.91 15.32
(Interest Income) (16.89) (12.15)
Net Interest Cost for Current Year 1.02 3.17
(` in Millions)
Expenses Recognized in the Statement of Profit or Loss for Current Year FY 2021-22 FY 2020-21
Current Service Cost 62.95 63.92
Net Interest Cost 1.02 3.17
Past Service Cost - -
(Expected Contributions by the Employees) - -
(Gains)/Losses on Curtailments And Settlements - -
Net Effect of Changes in Foreign Exchange Rates - -
Expenses Recognized 63.97 67.09
(` in Millions)
Expenses Recognized in the Other Comprehensive Income (OCI) for Current Year FY 2021-22 FY 2020-21
Actuarial (Gains)/Losses on Obligation For the Year (3.57) (16.68)
Return on Plan Assets, Excluding Interest Income 3.92 (4.80)
Change in Asset Ceiling - -
Net (Income)/Expense For the Year Recognized in OCI 0.35 (21.48)
(` in Millions)
Balance Sheet Reconciliation FY 2021-22 FY 2020-21
Opening Net Liability 22.24 52.44
Expenses Recognized in Statement of Profit or Loss 63.97 67.09
Expenses Recognized in OCI 0.35 (21.48)
Net Liability/(Asset) Transfer In 2.52 11.55
Net (Liability)/Asset Transfer Out (3.27) (13.52)
(Benefit Paid Directly by the Employer) (0.05) (8.28)
(Employer's Contribution) (50.07) (65.54)
Net Liability/(Asset) Recognized in the Balance Sheet 35.69 22.25
(` in Millions)
Category of Assets FY 2021-22 FY 2020-21
Government of India Assets - -
State Government Securities - -
Special Deposits Scheme - -
Debt Instruments - -
Corporate Bonds - -
Cash And Cash Equivalents - -
Insurance fund 292.01 258.22
Asset-Backed Securities - -
Structured Debt - -
Other - -
Total 292.01 258.22
Information for major category of plan assets of gratuity fund is not available with the Group and hence not disclosed.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Net interest cost for next year FY 2021-22 FY 2020-21
Present value of benefit obligation at the end of the year 6.42 281.16
(Fair value of plan assets at the end of the year) (63.62) (258.91)
Net liability/ (asset) at the end of the year (57.20) 22.25
Interest cost 21.96 17.91
Statutory Reports
(Interest income) (20.09) (16.89)
Net interest cost for next year 1.87 1.02
(` in Millions)
Expenses recognised in the Statement of Profit or Loss for next year FY 2021-22 FY 2020-21
Current service cost 77.95 62.95
Net interest cost 1.87 1.02
(Expected contributions by the employees) - -
Financial Statements
Expenses recognised 79.82 63.97
(` in Millions)
Maturity Analysis of the Benefit Payments: From the Fund FY 2021-22 FY 2020-21
Projected Benefits Payable in Future Years From the Date of Reporting
1st Following Year 6.89 15.74
2nd Following Year 9.26 5.47
3rd Following Year 10.72 7.24
4th Following Year 11.29 8.29
5th Following Year 12.09 8.68
Sum of Years 6 To 10 74.13 56.07
Sum of Years 11 and above 1,004.79 822.81
(` in Millions)
Sensitivity Analysis FY 2021-22 FY 2020-21
Projected Benefit Obligation on Current Assumptions 327.70 281.17
Delta Effect of +1% Change in Rate of Discounting (44.42) (38.67)
Delta Effect of -1% Change in Rate of Discounting 54.65 47.85
Delta Effect of +1% Change in Rate of Salary Increase 47.75 42.02
Delta Effect of -1% Change in Rate of Salary Increase (40.61) (35.66)
Delta Effect of +1% Change in Rate of Employee Turnover (2.15) (3.84)
Delta Effect of -1% Change in Rate of Employee Turnover 2.08 4.17
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring
at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in
calculating the projected benefit obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Notes
Actuarial gains/losses are recognised in the period of occurrence under Other Comprehensive Income (OCI). All above
reported figures of OCI are gross of taxation.
Salary escalation & attrition rate are in line with the industry practice considering promotion and demand and supply of the
employees.
Maturity analysis of benefit payments is undiscounted cashflows considering future salary, attrition & death in respective year
for members as mentioned above.
Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.
Value of asset is considered as fair value of plan asset for the period of reporting.
Qualitative disclosures
Characteristics of defined benefit plan
The Company has a defined benefit gratuity plan in India (funded). The company’s defined benefit gratuity plan is a final salary
plan for employees, which requires contributions to be made to a separately administered fund.
The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the
administration of the plan assets and for the definition of the investment strategy.
Risks associated with defined benefit plan
Gratuity is a defined benefit plan and company is exposed to the following risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability
requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on
the duration of asset.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members.
As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined
by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this
rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government
securities, and other debt instruments.
Asset liability matching risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of
Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not
have any longevity risk.
Characteristics of defined benefit plans
During the year, there were no plan amendments, curtailments and settlements.
A separate trust fund is created to manage the Gratuity plan.
Note: The above information is as provided by the Actuary, which has been relied upon by the auditors.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Directors sitting fees 13.39 12.01
Office expenses 201.09 160.93
Postage & courier 77.13 42.42
Statutory Reports
Printing & stationery 89.62 56.92
Rates & taxes 19.81 7.81
Rent 197.59 130.15
Repairs & maintenance
- Computer 20.48 18.52
- Others (refer note 34.1) 138.87 73.66
Remuneration to auditors
Financial Statements
- Audit fees 9.99 7.52
- Certification / other services (refer note 34.2) 2.38 2.60
- Out of pocket expenses 0.61 0.77
Software charges (refer note 34.1) 392.56 226.72
Travelling & conveyance (refer note 34.1) 403.02 227.94
Corporate social responsibility expenses (refer note 43) 187.68 126.16
Miscellaneous expenses 84.45 58.51
Insurance premium 202.29 236.23
Security expenses 926.02 814.78
Loss on sale of fixed assets (net) 0.31 14.35
Total 5,393.82 3,616.78
Note 34.2: During the year the Group has paid ` 9.67 Million (P.Y ` 2.30 Million) to the auditors towards certification required
under its Public Issue of Non Convertible Debentures and Secured Medium Term Note Programme, the same has been
amortised over the tenure of the borrowings.
(` in Millions)
Amounts recognised in statement of profit or loss FY 2021-22 FY 2020-21
Current tax expense
Current year 3,277.76 3,173.53
Changes in estimates related to prior years 5.74 45.67
Deferred tax expense
Origination and reversal of temporary differences 193.84 (779.46)
Total 3,477.34 2,439.74
(` in Millions)
Amounts recognised in other FY 2021-22 FY 2020-21
comprehensive income Before tax Tax expense Net of tax Before tax Tax expense Net of tax
Remeasurements of defined (0.35) 0.09 (0.26) 21.48 (5.41) 16.07
benefit liability/ (asset)
Cash flow hedge (net) (13.04) (65.45) (78.49) (338.79) 85.27 (253.52)
Fair value of loans carried at 136.53 34.36 170.89 (7.64) 1.92 (5.72)
FVTOCI
Total 123.14 (31.00) 92.14 (324.95) 81.78 (243.17)
(` in Millions)
Reconciliation of income tax expense of the year to accounting year FY 2021-22 FY 2020-21
Profit before tax 15,359.84 10,047.84
Tax using the Group's domestic tax rate 4,054.76 2,845.62
Tax effect of:
Non-deductible expenses 56.02 35.88
Tax-exempt income - others (includes deduction under section 80JJAA) (355.72) (303.66)
Tax-exempt income- dividend (158.32) (186.90)
Income taxed at different rates (40.78) (72.90)
Others 1.02 6.37
Adjustments for current tax for prior periods 5.66 45.68
Differential tax rate in subsidiary (99.52) 66.97
Recognition of previously unrecognised deductible temporary differences 14.22 2.68
Total income tax expense 3,477.34 2,439.74
Basic and Diluted Earnings Per Share [“EPS”] computed in accordance with INDAS 33 ‘’Earnings per share’’.
DILUTED
Weighted average number of equity shares for computation of basic EPS 379,194,372 378,417,476
Add: Potential equity shares on account conversion of Employees Stock 2,254,850 806,252
Options
Weighted average number of equity shares for computation of diluted C 381,449,222 379,223,728
EPS
Diluted EPS (In `) A/C 31.14 20.04
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
corrective and remedial actions as regards people and processes, for mitigation to ensure minimum damage.
A stress testing mechanism is put in place to carry out the event based sensitivity analysis and identify the accounts under
stress due to expected market movement. The Group’s central treasury department identifies, evaluates and hedges
financial risks in close co- operation with the Group’s operating units. The Board provides written principles for overall risk
management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of
derivative financial instruments and non-derivative financial instruments and investment of excess liquidity. The Group’s
Treasury is responsible for managing its assets and liabilities and the overall financial structure. It is also primarily responsible
for the funding and liquidity risks of the Group.
Financial Statements
Risk management is integral to Group’s strategy. The comprehensive understanding of risk management throughout the
various levels of an organization aids in driving key decisions related to risk-return balance, capital allocation and product
pricing. The Group operates under the guidance of the Board approved risk appetite statement that covers business
composition, guidance around gross non-performing assets and net non-performing assets, leverage, funding and liquidity, etc.
Additionally, it is also ensured that appropriate focus is on managing risk proactively by ensuring business operations are in
accordance with laid-down risk. A strong risk management team and an effective credit operations structure ensures that
risks are properly identified and timely addressed, to ensure minimal impact on the Group’s growth and performance.
Risk Management Structure
The Group has established multi-level risk governance for monitoring & control of product and entity level risks. The Board
of Directors are responsible for the overall risk management approach and for approving the risk management strategies
and principles. The Board has constituted the Risk Management Committee (“RMC”) which is responsible for monitoring the
overall risk process within the Group. The RMC is empowered to develop an independent risk strategy comprising of principles,
frameworks, policies and limits and ensuring its effective implementation. Independent function of Risk management is in
place headed by the Chief Risk Officer (“”CRO””) who reports to the Chief Executive Officer (“CEO”) with oversight of RMC of
the Board. The Risk department primarily operationalises risk management framework approved by RMC.
The group has a well – defined risk framework constituting various lines of defence – the first line of defence, consisting of
management, is responsible for seamless integration of risk principles across all businesses Additionally, it ensures adequate
managerial and supervisory controls to ensure compliance and highlight inadequate processes and unexpected events. The
Group has well-defined internal control measures in every process. Independent risk and policy team constitutes second line
of defence which is responsible for identification and assessment of entity-wide risks. Post its identification, it aims to mitigate
risks either through portfolio trigger and caps (Credit risk) or through ongoing risk control and self assessment (Operational risk)
Internal Audit function is the third line of defence that independently reviews activities of the first two lines of defence and
reports to the Audit Committee of the Board.
Risk Management Practices
The Group has developed the necessary competency to identify early stress signals and has also defined processes, including
corrective and remedial actions as regards people and processes, for mitigation to ensure minimum damage. A stress testing
mechanism is put in place to carry out the event based sensitivity analysis and identify the accounts under stress due to
expected market movement. In event of susceptibility to external triggers, appropriate risk mitigation would be undertaken
and thereby minimize the losses to the Group.
It has initiated a detailed portfolio quality review mechanism which enables analysis of portfolio along various behavioural,
demographic and financial parameters. Additionally, through tie-ups with external bureaus, an analysis of collection
performance coupled with continuous credit assessment for various key segments is undertaken. The practices aid in
proactive course correction thereby modifying credit or sourcing mechanisms, if required. Additionally, application scorecard
has been developed enabling the Group to standardize credit underwriting & improve sourcing quality in the long run.
The Group’s policy is to measure and monitor the overall risk-bearing capacity in relation to the aggregate risk exposure
across all risk types and activities. Information pertaining to different type of risks are identified, analysed and tested on timely
basis. The same is presented to Risk Management Committee at periodic intervals.
In order to minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such
as cross currency interest rate swaps are entered to hedge certain foreign currency risk exposures and variable interest rate
exposures.
The Group’s central treasury department identifies, evaluates and hedges financial risks in close co- operation with the Group’s
operating units. The Board provides written principles for overall risk management, as well as policies covering specific areas,
such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial
instruments and investment of excess liquidity. The Group’s Treasury is responsible for managing its assets and liabilities and
the overall financial structure. It is also primarily responsible for the funding and liquidity risks of the Group.
37A.1. Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
Credit risk arises primarily from financial assets such as trade receivables, investments, derivative financial instruments, other
balances with banks, loans and other receivables.
Credit quality analysis
The following tables sets out information about the credit quality of financial assets measured at amortised cost. Unless
specifically indicated, for financial assets, the amounts in the table represent gross carrying amounts.
(` in Millions)
Particulars As at March 31, 2022
Financial Financial assets Financial Financial Total
Assets where for which assets for Assets where
loss allowance credit risk which credit loss allowance
measured at has increased risk has measured
12-month ECL significantly increased using
and credit not significantly simplified
impaired and credit approach
impaired
Cash and cash equivalents - - - 62,116.40 62,116.40
Bank Balance other than above - - - 19,452.94 19,452.94
Receivables
(i) Trade Receivables 341.02 3.85 0.03 1,487.85 1,832.75
(ii) Other Receivables - - - 158.00 158.00
Loans * 261,052.97 21,225.39 9,723.54 - 292,001.90
Other Financial assets - - - 9,515.38 9,515.38
* Loans comprises of outstanding principal, interest accrued but not due and principal and interest overdue.
(` in Millions)
Particulars As at March 31, 2021
Financial Financial assets Financial Financial Total
Assets where for which assets for Assets where
loss allowance credit risk which credit loss allowance
measured at has increased risk has measured
12-month ECL significantly increased using
and credit not significantly simplified
impaired and credit approach
impaired
Cash and cash equivalents - - - 26,429.02 26,429.02
Bank Balance other than above - - - 21,411.54 21,411.54
Receivables
(i) Trade Receivables 306.35 - 2.95 1,616.42 1,925.72
(ii) Other Receivables - - - 5.10 5.10
Loans * 250,831.64 36,661.05 8,121.49 - 295,614.19
Other Financial assets - - - 5,096.69 5,096.69
* Loans comprises of outstanding principal, interest accrued but not due and principal and interest overdue.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
The Group holds collateral and other credit enhancements against certain of its credit exposures. The loans are collateralised
against equitable mortgage of property, pledge of shares, hypothecation of assets, company personal guarantees, physical
gold, undertaking to create security.
(` in Millions)
Financial Statements
Reconciliation of loss Financial Assets where Financial assets Financial assets Total
allowance loss allowance for which credit for which credit
measured at 12-month risk has increased risk has increased
ECL significantly and significantly and
credit not impaired credit impaired
Principal Others Principal Others Principal Others Principal Others
Opening ECL Mar-21 6,299.92 672.88 1,947.03 557.81 3,828.96 1,169.47 12,075.91 2,400.16
New loans disbursed during 3,234.19 242.21 167.50 18.24 886.09 27.44 4,287.78 287.89
the year
Loans closed/written off (2,780.77) (368.68) (761.45) (456.60) (2,413.82) (506.10) (5,956.04) (1,331.38)
during the year
Movement in provision (159.92) 41.31 716.38 37.00 443.15 399.45 999.61 477.76
without change in asset
staging
Movement in provision due (182.08) 30.69 (111.43) (42.78) 1,347.82 34.68 1,054.31 22.59
to change in asset staging
Closing ECL Mar-22 6,411.34 618.41 1,958.03 113.67 4,092.20 1,124.94 12,461.57 1,857.02
(` in Millions)
Reconciliation of loss Financial Assets Financial assets Financial assets Total
allowance where loss for which credit for which credit
allowancemeasured at risk has increased risk has increased
12-month ECL significantly and significantly and
credit not impaired credit impaired
Principal Others Principal Others Principal Others Principal Others
Opening ECL Mar-20 3,366.21 309.50 908.96 173.25 3,798.87 1,608.83 8,074.04 2,091.58
New loans disbursed 1,808.82 145.65 506.54 412.97 895.56 34.83 3,210.92 593.45
during the year
Loans closed/written off (639.66) (57.53) (245.86) (38.07) (2,738.92) (1,186.70) (3,624.44) (1,282.30)
during the year
Movement in provision 1,914.63 282.17 567.95 (35.75) 594.16 428.52 3,076.74 674.94
without change in asset
staging
Movement in provision due (150.08) (6.91) 209.44 45.41 1,279.29 283.99 1,338.65 322.49
to change in asset staging
Closing ECL Mar-21 6,299.92 672.88 1,947.03 557.81 3,828.96 1,169.47 12,075.91 2,400.16
The following tables show reconciliations from the opening to the closing balance of the exposure at default (EAD) by class
of financial instrument.
(` in Millions)
Reconciliation of exposure Financial Assets Financial assets Financial assets Total
at default where loss allowance for which credit for which credit
measured at 12-month risk has increased risk has increased
ECL significantly and significantly and
credit not impaired credit impaired
Principal Others Principal Others Principal Others Principal Others
Opening EAD Mar-2021 295,179.81 23,859.05 33,977.70 2,681.50 6,962.27 1,163.53 336,119.78 27,704.09
New loans disbursed during 211,565.73 8,574.89 5,013.53 230.05 1,555.29 20.93 218,134.55 8,825.86
the year
Loans closed/written off (131,306.03) (10,332.00) (17,980.69) (1,542.24) (3,894.86) (505.02) (153,181.58) (12,379.26)
during the year
Movement in EAD without (53,945.11) 4,174.79 (2,304.09) (108.55) (105.48) 272.56 (56,354.68) 4,338.80
change in asset staging
Movement in EAD due to (9,827.43) (585.62) 1,690.47 111.85 4,084.70 167.97 (4,052.26) (305.79)
change in asset staging
Closing EAD Mar-2022 311,666.97 25,691.11 20,396.92 1,372.61 8,601.92 1,119.97 340,665.81 28,183.70
(` in Millions)
Reconciliation of exposure Financial Assets where Financial assets Financial assets Total
at default loss allowance for which credit for which credit
measured at 12-month risk has increased risk has increased
ECL significantly and significantly and
credit not impaired credit impaired
Principal Others Principal Others Principal Others Principal Others
Opening EAD Mar-2020 263,416.60 24,479.69 12,397.62 1,739.06 6,525.87 1,608.70 282,340.09 27,827.45
New loans disbursed during 158,027.67 10,176.67 17,084.87 1,091.60 1,279.17 32.55 176,391.71 11,300.82
the year
Loans closed/written off (78,533.05) (4,528.73) (4,108.63) (1,005.19) (3,906.97) (1,189.24) (86,548.65) (6,723.16)
during the year
Movement in EAD without (28,939.48) (6,140.77) (343.38) (25.73) (59.66) 326.82 (29,342.52) (5,839.68)
change in asset staging
Movement in EAD due to (18,791.93) (127.81) 8,947.22 881.77 3,123.86 384.70 (6,720.85) 1,138.68
change in asset staging
Closing EAD Mar-2021 295,179.81 23,859.05 33,977.70 2,681.50 6,962.27 1,163.53 336,119.78 27,704.09
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Value of Modified Assets at the time of modification 23,729.08 30,311.96
Value of Modified Assets outstanding at end of year 25,093.50 29,561.57
Modification Gain/ (Loss) 45.41 (294.66)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
The above modification is in accordance with the provisions defined in the Master Direction Non-Banking Financial Company
- Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 Circular
No DNBR.PD.008/03.10.119/2016-17 dated September 01, 2016 (updated as on February 22, 2019) and the “The Housing
Finance Companies (NHB) Directions, 2010”.
Statutory Reports
different credit transactions.
The Group has established overall credit limits at the level of individual borrowers and counterparties, and groups of connected
counterparties. It manages and controls credit risk by confining the amount of risk it is willing to accept for individual
counterparties, for geographical concentrations, and by closely monitoring such exposures.
The Group has a Credit Risk Policy which is board approved and shared with all credit approving authorities. All customers
will be evaluated on a set of pre-defined parameters as detailed below and accordingly classified into any of the following
categories:
Financial Statements
1. Low Risk
2. Medium Risk
3. High Risk – This category of customers will not be actively sourced by the Group. Any customer, identified as High Risk,
can be funded by the Group basis exceptional comfort and availability of justifying mitigates. The extent and nature of due
diligence will be the highest for this category.
The assessment of a customer being classified into high, medium or low is based on various parameters at the time of
on-boarding which are captured in the Credit Approval Memorandum by the credit manager and validated by the relevant
approving authority. The parameters are as follows:
In order to avoid excessive concentrations of risk, the Group’s policies and procedures include specific guidelines to focus on
spreading its lending portfolio across various products/states/customer base with a cap on maximum limit of exposure for
an individual/Group. Accordingly, the Group does not have concentration risk.
amount of credit lines. Further, the Group has well defined Asset Liability Management (ALM) framework with an appropriate
organizational structure to regularly monitor and manage maturity profiles of financial assets and financial liabilities including
debt financing plans, cash and cash equivalent instruments to ensure liquidity. The Group seeks to maintain flexibility in
funding mix by way of sourcing the funds through money markets, debt markets and banks to meet its business and liquidity
requirements.
(` in Millions)
Contractual maturities of Total Upto 3 Over 3 Over 6 Over 1 year Over 3 to 5 Over 5
financial liabilities months months to months to 1 to 3 years years years
(including financial guarantee) 6 months year
As at March 31, 2021
Derivative financial instruments 1,565.76 - 212.88 18.13 1,265.89 68.86 -
Trade payables 1,093.91 1,031.71 - 62.20 - - -
Other payables - - - - - - -
Finance lease obligation * 4,357.20 193.78 191.42 379.08 1,380.88 1,022.86 1,189.18
Debt securities 78,341.69 6,829.41 5,003.51 16,308.06 42,238.82 1,591.89 6,370.00
Borrowings (other than debt 216,262.45 25,077.17 26,172.76 33,008.04 78,614.62 32,329.98 21,059.88
securities) (Note 1)
Subordinated liabilities 21,349.52 - 620.00 3,489.71 1,230.00 1,317.08 14,692.73
Other financial liabilities 20,913.77 20,862.48 - 2.18 49.11 - -
Financial guarantee contracts 12,255.43 12,255.43 - - - - -
Total 356,139.73 66,249.98 32,200.57 53,267.40 124,779.32 36,330.67 43,311.79
* The amount represent undiscounted cash flows
Note 1: Borrowings includes cash credit facilities, has been slotted in ”over 6 months to 1 year” and “over 1 year to 3 years”
in the ratio of 40% and 60% respectively.
Note 2: In computing the above information with respect to cash credit and overdraft facilities with Banks, the Management
has made certain estimates and assumptions which have been relied upon by the auditors.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(ii)
Financing arrangements
The Group had access to the following undrawn borrowing facilities at the end of the reporting period:
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Floating rate
Statutory Reports
- Expiring within one year (bank overdraft and other facilities) 17,798.73 6,131.55
- Expiring beyond one year (bank loans) - -
Financial Statements
Financial institutions may be exposed to Market Risk in variety of ways. Market risk exposure may be explicit in portfolios of
securities / equities and i struments that are actively traded. Conversely it may be implicit such as interest rate risk due to
mismatch of loans and deposits. Besides, market risk may also arise from activities categorized as off-balance sheet item.
Therefore market risk is potential for loss resulting from adverse movement in market risk factors such as interest rates, forex
rates, equity and commodity prices.
The Group’s exposure to market risk is primarily on account of interest rate risk and Foreign exchange risk.
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Variable rate borrowings 184,199.71 143,807.25
Fixed rate borrowings 168,360.03 172,146.41
Total borrowings 352,559.74 315,953.66
The Group had the following variable rate borrowings outstanding and cross currency interest rate swap contracts outstanding:
(` in Millions)
As at March 31, 2022 As at March 31, 2021
Weighted Balance % of total Weighted Balance % of total
average borrowings average borrowings
interest interest
rate (%) rate (%)
Bank overdrafts, bank loans 8.59% 176,339.21 50.02% 8.63% 133,652.50 42.30%
External Commercial borrowings 8.62% 7,579.25 2.15% 8.62% 7,311.00 2.31%
Non convertible debentures 7.51% 281.25 0.08% 9.15% 2,843.75 0.90%
Net exposure to cash flow 184,199.71 143,807.25
interest rate risk
Currency Interest Rate Swaps 9.36% 3,876.44 1.10% 9.36% 3,675.23 1.16%
An analysis by maturities is provided in note 37(B)(i) above. The percentage of total loans shows the proportion of loans that
are currently at floating rates in relation to the total amount of borrowings.
(b)
Sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates (assuming
other variable constant)
(` in Millions)
Particulars Impact on profit after tax Impact on other components of
equity
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Interest rates – increase by 30 basis points (413.52) (322.84) - -
Interest rates – decrease by 30 basis points 413.52 322.84 - -
Profit or loss is sensitive to higher/lower interest income from loans as a result of changes in interest rates (assuming other
variable constant)
(` in Millions)
Particulars Impact on profit after tax Impact on other components of
equity
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Interest rates – increase by 30 basis points 356.12 337.29 - -
Interest rates – decrease by 30 basis points (356.12) (337.29) - -
(` in Millions)
Particulars USD EUR CHF JPY SGD Other
Currencies
Foreign Currency Assets (in INR)* 416.88 - - - - -
Foreign Currency Liabilities (in INR)* 1,478.77 - - - - -
Net Gap as at 31.03.2021 (1,061.89) - - - - -
*It is fully hedged by forward contract and CCIRS
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial
instruments.
(` in Millions)
Particulars Impact on profit after tax Impact on other components of
equity
Statutory Reports
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
USD sensitivity
INR/USD-Increase by 5% - - (1,343.34) (1,323.97)
INR/USD-Decrease by 5% - - 1,343.34 1,323.97
The sensitivity on profit and loss is due to the timing difference of the maturity of the Cross currency interest rate swap. On
the date of maturity of the Cross currency interest rate swap, the sensitivity of profit and loss to changes in the exchange rates
will be Nil.
Financial Statements
37C.3. Price Risk
(a) Exposure
To manage its price risk arising from investments in equity securities/other assets, the Group diversifies its portfolio.
(b)
Sensitivity
The table below summarises the impact of increases/decreases of the index on the Group’s equity/other assets and profit for
the period. The analysis is based on the assumption that the instrument index has increased by 5% or decreased by 5% with
all other variables held constant.
(` in Millions)
Particulars Impact on profit after tax Impact on other components of
equity
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
Increase 5% 442.47 7.10 - -
Decrease 5% (442.47) (7.10) - -
37D.Capital Management
For the purpose of the Group’s capital management, capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders of the Group. The primary objective of the Group’s capital management is to
maximise the shareholder value. The Group monitors capital in accordance with the capital adequacy ratio prescribed by the
Reserve Bank of India (“RBI”)/ National Housing Bank (“NHB”) as applicable.
The following table shows an analysis of financial instruments recorded at Fair Value hierarchy:
(` in Millions)
Particulars As at March 31, 2022
Fair Value through Fair value through Amortised cost /
profit or loss Other Comprehensive Cost
Income
Financial assets
Cash and cash equivalents - - 62,116.40
Bank Balance other than (a) above - - 19,452.94
Derivative financial instruments 98.69 644.12 -
Receivables
(i) Trade receivables - - 1,831.95
(ii) Other receivables - - 158.00
Loans - 56,624.60 280,304.34
Investments 11,825.21 - 96.40
Other financial assets - - 9,237.85
Total financial assets 11,923.90 57,268.72 373,197.88
Financial liabilities
Derivative financial instruments 98.69 1,545.22 -
Trade payables - - 1,424.27
Other Payables - - 99.06
Finance lease obligation - - 3,606.78
Debt securities - - 78,380.78
Borrowings (other than debt securities) - - 253,190.28
Subordinated liabilities - - 25,680.49
Other financial liabilities - - 28,206.34
Total financial liabilities 98.69 1,545.22 390,588.00
(` in Millions)
Particulars As at March 31, 2021
Fair Value through Fair value through Amortized cost /
profit or loss Other Comprehensive Cost
Income
Financial assets
Cash and cash equivalents - - 26,429.02
Bank Balance other than (a) above - - 21,411.54
Derivative financial instruments 86.99 416.88 -
Receivables
(i) Trade receivables - - 1,922.77
(ii) Other receivables - - 5.10
Loans - 52,171.66 283,159.94
Investments 189.24 - 126.47
Other financial assets - - 4,903.70
Total financial assets 276.23 52,588.54 337,958.54
Financial liabilities
Derivative financial instruments 86.99 1,478.77 -
Trade payables - - 1,093.91
Finance lease obligation - - 3,265.02
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Particulars As at March 31, 2021
Fair Value through Fair value through Amortized cost /
profit or loss Other Comprehensive Cost
Income
Debt securities - - 83,303.50
Statutory Reports
Borrowings (other than debt securities) - - 216,243.58
Subordinated liabilities - - 23,019.28
Other financial liabilities - - 20,913.77
Total financial liabilities 86.99 1,478.77 347,839.06
Financial Statements
statement of financial position.
(` in Millions)
Financial assets and liabilities Level 1 Level 2 Level 3 Total Carrying Value
measured at fair value - recurring fair
value measurements
Financial liabilities
Forward rate agreements /CCIRS - 1,545.22 - 1,545.22 1,545.22
Interest rate derivative - - - - -
Call option included under Debt - 98.69 - 98.69 98.69
securities & Subordinated liabilities
Total financial liabilities - 1,643.91 - 1,643.91 1,643.91
(` in Millions)
Financial assets and liabilities Level 1 Level 2 Level 3 Total Carrying Value
measured at fair value - recurring fair
value measurements
As at March 31, 2021
Financial assets
Forward rate agreements and interest - 416.88 - 416.88 416.88
rate swaps
Call option included under Debt - 86.99 - 86.99 86.99
securities & Subordinated liabilities
Loans - classified under FVOCI - - 52,171.66 52,171.66 52,171.66
Investments 118.18 - 71.06 189.24 189.24
(i) Mutual Funds/Alternate Investment 118.18 - 71.06 189.24 189.24
fund / Others
(ii) Government Securities - - - - -
(iii) Debt Securities - - - - -
(iv) Equity - - - - -
Total financial assets 118.18 503.87 52,242.72 52,864.77 52,864.77
Financial liabilities
Forward rate agreements /CCIRS - 1,265.89 - 1,265.89 1,265.89
Interest rate derivative - 212.88 - 212.88 212.88
Call option included under Debt - 86.99 - 86.99 86.99
securities & Subordinated liabilities
Total financial liabilities - 1,565.76 - 1,565.76 1,565.76
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Assets and liabilities which are measured at Total Fair value Carrying value Valuation hierarchy
amortised cost for which fair values are disclosed
As at March 31, 2022
Financial assets
Cash and cash equivalents 62,116.40 62,116.40
Statutory Reports
Bank Balance other than included above 19,452.94 19,452.94
Receivables
(i) Trade Receivables 1,831.95 1,831.95
(ii) Other Receivables 158.00 158.00
Loans 272,183.14 280,304.34 Level 3
Investment in debt securities 96.40 96.40
Other Financial assets 9,237.85 9,237.85
Financial Statements
Total financial assets 365,076.68 373,197.88
Financial Liabilities
Trade Payables 1,424.27 1,424.27
Finance lease obligation 3,606.78 3,606.78
Debt Securities * 76,628.58 78,380.78 Level 3
Borrowings (Other than debt securities) 241,828.35 253,190.28 Level 3
Subordinated Liabilities 25,918.60 25,680.49 Level 3
Other financial liabilities 28,206.34 28,206.34
Total financial liabilities 377,612.92 390,488.94
(` in Millions)
Assets and liabilities which are measured at Total Fair value Carrying value Valuation hierarchy
amortised cost for which fair values are disclosed
As at March 31, 2021
Financial assets
Cash and cash equivalents 26,429.02 26,429.02
Bank Balance other than included above 21,411.54 21,411.54
Receivables
(i) Trade Receivables 1,922.77 1,922.77
(ii) Other Receivables 5.10 5.10
Loans 280,587.05 283,159.94 Level 3
Investment in debt securities 126.47 126.47
Other Financial assets 4,903.70 4,903.70
Total financial assets 335,385.65 337,958.54
Financial Liabilities
Trade Payables 1,093.91 1,093.91
Finance lease obligation 3,265.02 3,265.02
Debt Securities * 82,107.08 83,303.50 Level 3
Borrowings (Other than Debt Securities) 216,335.22 216,243.58 Level 3
Subordinated Liabilities 23,278.11 23,019.28 Level 3
Other financial liabilities 20,913.77 20,913.77
Total financial liabilities 346,993.11 347,839.06
* For MTN Bond book value is been considered as fair value.
(` in Millions)
Particulars Loans - Classified Alternate Investment Equity
under FVOCI fund
Balances as at April 1, 2021 52,171.66 71.06 0.50
Issuances 124,443.75 10,526.43 -
Re-classified to amortised cost (8,210.67)
Sale of financial instrument classified as level 3 at the (111,780.14) (1,740.46) -
beginning of the financial year
Total gain /losses recognised in profit and loss - 695.14 -
Transfers in - - -
Transfers out - - -
Balances as at March 31, 2022 56,624.60 9,552.17 0.50
Unrealised gain /losses related to balances held at - 685.67 -
the end of financial year
(` in Millions)
Particulars Loans - Classified Alternate Investment Equity
under FVOCI fund
Balances as at April 1, 2020 58,110.66 50.01 989.00
Issuances 69,756.05 12.44 -
Sale of financial instrument classified as level 3 at the (75,695.05) (0.06) (1,450.00)
beginning of the financial year
Total gain /losses recognised in profit and loss - 8.67 461.50
Transfers in - - -
Transfers out - - -
Balances as at March 31, 2021 52,171.66 71.06 0.50
Unrealised gain /losses related to balances held at - (9.46) -
the end of financial year
The following table provide a summary of the amount of the derecognised financial assets during the year and the gain/(loss)
on derecognition, which qualify for derecognition:
(` in Millions)
Particulars FY 2021-22 FY 2020-21
Financial assets derecognised during the year 111,780.13 75,695.04
Gain from derecognition 5,152.65 2,445.34
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Statutory Reports
Particulars As at As at
March 31, 2022 March 31, 2021
Carrying amount of transferred assets measured at amortised cost 24,065.08 38,405.62
Carrying amount of associated liabilities 24,065.08 38,484.40
Fair value of assets 24,057.58 38,418.47
Fair value of associated liabilities 24,060.98 38,497.25
Net position at Fair value - -
Financial Statements
NOTE 38. CAPITAL, OTHER COMMITMENTS AND CONTINGENT LIABILITIES AT BALANCE SHEET DATE:
Contingent Liabilities:
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
In respect of Income tax demands (refer note a and e) 663.07 486.49
In respect of Service tax demands (including interest accrued and refer note (b)) 831.66 617.50
In respect of Profession Tax demands (refer note (c)) 1.55 1.55
In respect of Bank guarantees given (refer note (d)) 8,454.96 12,255.43
In respect of Corporate guarantees given 233.40 233.40
In respect of legal case/ penalties/others 1.58 1.15
Contingent liability in respect of credit enhancement for securitization transaction 1,956.72 1,900.56
In respect of Stamp Duty (refer note (f)) 166.60 -
(a) The Group has filed appeal against the said demands raised by the Income Tax Department.
(b) Amount paid under protest with respect to service tax demand ` 18.92 Million (P.Y ` 18.92 Million)
(c) Amount paid under protest with respect to profession tax demand ` 0.47 Million (P.Y ` 0.47 Million)
(d) The above guarantee has been given on behalf of subsidiaries/group companies.
(e) Amount paid under protest with respect to income tax demand is ` 417.70 Million ( P.Y ` 233.89 Million).
(f) The Group has received demand towards stamp duty on account of the Composite Scheme of Arrangement.The demand
has been raised for a sum of ` 750.00 Million. As per the scheme document any incidental expenses will be borne by the
resulting companies i.e IIFL Finance Limited, IIFL Securities Limited and IIFL Wealth Management Limited equally. The
Company has appealed against the same and paid ` 83.40 Million under protest towards its share of the liability and
shown ` 166.60 Million as Contingent.
(g) Apart from the above, Group is subject to legal proceedings and claims which have arisen in the ordinary course of the
business. The Group’s Management does not reasonably expect that these legal actions, when ultimately concluded
and determined, will have material and adverse effect on the Group’s financial position.
Commitments not provided for:
(` in Millions)
Particulars As at As at
March 31, 2022 March 31, 2021
Commitments related to loans sanctioned but undrawn 24,831.13 15,670.79
Estimated amount of contracts remaining to be executed on capital and 187.51 325.42
operating account
Commitments related to alternate investment funds 205.95 20.16
a) The details of various Employee Stock Option Schemes are as under:
(b) (i) Movement of options during the year ended March 31, 2022
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Key Assumptions used in Black-Scholes model for calculating fair value as on the date of grant are as follows:
ESOP 2008
FY 2021-22 FY 2020-21
6-May-21 19-Aug-21 22-Dec-21 4-Sep-20
Stock price (`) 252.00 252.00 271.40 87.85
Statutory Reports
Volatility 10.00% 10.00% 10.00% 10.00%
Risk-free Rate 5.66% 5.77% 5.81% 6.56%
Exercise price (`) 252.00 252.00 271.40 126.64
Time to Maturity (Years) 5.00 5.00 5.00 5.00
Dividend yield 3.00% 3.00% 3.00% 3.00%
Weight Average Value (`) 34.72 35.40 35.40 21.10
Stock Price: The closing market price on NSE one day prior to the date of grant has been considered for the purpose of Option
Financial Statements
valuation.
Volatility: The daily volatility of the stock prices on BSE, over a period prior to the date of grant, corresponding with the
expected life of the Options has been considered to calculate the fair value.
Risk-free rate of return: The risk-free rate being considered for the calculation is the India Government Bond Generic Bid Yield
with a maturity about equal to the expected life of the options.
Time to Maturity: Time to Maturity / Expected Life of Options is the period for which the Company expects the Options to
be live. The minimum life of a stock option is the minimum period before which the Options cannot be exercised and the
maximum life is the period after which the Options cannot be exercised.
Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the three financial
years preceding the date of the grant. The dividend yield for the year is derived by dividing the dividend per share by the
average price per share of the respective period.
The Group has granted Employee Stock Options under IIFL Finance Employee Stock Option Plan 2020 – Merger Scheme
pursuant to aforesaid Composite Scheme of Arrangement.
a) The details of various Employee Stock Option Schemes are as under:
(b) (i) Movement of options during the year ended March 31, 2022
(b) (ii) Movement of options during the year ended March 31, 2021
Key Assumptions used in Black-Scholes model for calculating fair value as on the date of grant are as follows:
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Stock Price: The fair value of stock as on Appointed Date, i.e., April 1, 2018 (“the Effective date” or the “Date of Modification”)
has been used to value the outstanding grants based on Merchant Banker’s Report.
Volatility: The daily volatility of the stock prices on BSE, based on post demerger traded prices, has been considered to
calculate the fair value.
Risk-free rate of return: The risk-free rate being considered for the calculation is the India Government Bond Generic Bid Yield
with a maturity about equal to the expected life of the options.
Statutory Reports
Exercise Price: Price of each specific grant has been considered based on equity swap ratio of the Composite Scheme of
Arrangement.
Time to Maturity: Time to Maturity / Expected Life of Options is the period for which the Company expects the Options to
be live. The minimum life of a stock option is the minimum period before which the Options cannot be exercised and the
maximum life is the period after which the Options cannot be exercised.
Expected dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the three financial
Financial Statements
years preceding the date of the grant. The dividend yield for the year is derived by dividing the dividend per share by the
average price per share of the respective period.
The Group has not entererd into any transactions with strike off companies
There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
The clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not
applicable to the Group.
(A) The Group has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(B) The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(v)
Undisclosed income
The Group has disclosed all its Income appropriately and in the ongoing Tax Assessments as well there has not been any
such undisclosed income recognised by the relavant tax authorities.
The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.
The Group does not possess any benami property under the Benami Transactions (Prohibition) Act, 1985 and rules made
thereunder.
(a) The quarterly returns and statements of current assets filed by the Group with banks or financial institutions are in
agreement with the books of accounts.
(b) The Group has utilized the borrowings from banks and financial institutions for the specific purpose for which it was
taken as at March 31, 2022.
The Group has not been declared as Wilful Defaulter by any Bank or Financial Institution or other Lender.
(x) Title Deeds Of Immovable Properties Not Held In Name Of The Company
Except the details as disclosed below all the title deeds of immovable properties (other than properties where the Group
is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Group.
(` in Millions)
Particulars Description Gross Title Deeds
Whether title Property held Reason for
of item of Carrying held in the
deed holder since which not being
property Value name of is promoter, date held in the
director or name of the
relative of company
promoter.
director or
employee of
promoter/
director
Investment Property Building 27.50 Borrower to No January 10, Acquired
(Refer note 12) whom loan 2020 in the
has been SARFAESI
given Proceedings
Building 47.34 Borrower to No December 31, Acquired
whom loan 2019 in the
has been SARFAESI
given Proceedings
Non-current Assets Held for Sale Building 96.99 Borrowers No Various dates Properties
(Refer note 17) to whom repossessed
loan has under
been given SARFAESI
Act
Note: Due to the voluminous nature of transactions and sensitivity of the information, individual borrower wise details, in
whose name the title deeds are held are not disclosed.
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
Other related parties IIFL Securities Limited
IIFL Management Services Limited
IIFL Insurance Brokers Limited (Formerly India Infoline Insurance Brokers Limited)
IIFL Wealth Management Limited
IIFL Facilities Services Limited (Formerly IIFL Real Estate Limited)
India Infoline Foundation
India Infoline Employee Trust
Financial Statements
IIFL Asset Management Limited
IIFL Wealth Finance Limited
5paisa Capital Limited
Livlong Protection & Wellness Solutions Limited (Formerly IIFL Corporate Services Limited)
5paisa P2P Limited
Relatives of Key Mr. Shankar Subramanian (Brother of Independent Director Mr. Ramakrishnan Subramanian)
managerial personnel date wef Sept 06, 2021
* The above list includes related parties with whom the transactions have been carried out during the year.
(` in Millions)
Nature of Transaction Other related Key Managerial Total
parties Personnel and their
relatives
Donation paid
India Infoline Foundation 152.70 - 152.70
(118.60) - (118.60)
Arranger/ processing fees /brokerage on non convertible debenture/merchant banking fees
IIFL Wealth Management Limited 43.90 - 43.90
(129.62) - (129.62)
IIFL Securities Limited 464.60 - 464.60
(4.08) - (4.08)
5paisa Capital Limited - - -
(0.68) - (0.68)
Mr. Shankar Subramanian - 0.01 0.01
- - -
Rent expenses
IIFL Facilities Services Limited 19.24 - 19.24
(17.50) - (17.50)
Commission / brokerage expense
IIFL Securities Limited 0.88 - 0.88
(0.19) - (0.19)
Remuneration paid
Mr.Nirmal Jain - 86.72 86.72
- (80.01) (80.01)
Mr.Sumit Bali - - -
- (5.41) (5.41)
Equity dividend paid
India Infoline Emoloyee Trust 0.26 - 0.26
(0.23) - (0.23)
ICD/loan taken
IIFL Facilities Services Limited 42,955.96 - 42,955.96
(51,081.50) - (51,081.50)
IIFL Securities Limited 2,000.00 - 2,000.00
(25,650.00) - (25,650.00)
ICD/loan returned
IIFL Facilities Services Limited 42,955.96 - 42,955.96
(51,081.50) - (51,081.50)
IIFL Securities Limited 2,000.00 - 2,000.00
(25,650.00) - (25,650.00)
ICD/loan given
5paisa Capital Limited 6,000.00 - 6,000.00
(28,130.00) - (28,130.00)
IIFL Facilities Services Limited 26,635.00 - 26,635.00
(27,037.00) - (27,037.00)
IIFL Management Services Limited 500.00 - 500.00
- - -
IIFL Securities Limited 17,390.00 - 17,390.00
(4,367.50) - (4,367.50)
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Nature of Transaction Other related Key Managerial Total
parties Personnel and their
relatives
ICD/loan received back
5paisa Capital Limited 6,000.00 - 6,000.00
(29,130.00) - (29,130.00)
Statutory Reports
IIFL Management Services Limited 500.00 - 500.00
(569.10) - (569.10)
IIFL Facilities Services Limited 26,635.00 - 26,635.00
(29,761.50) - (29,761.50)
IIFL Securities Limited 17,390.00 - 17,390.00
(4,367.50) - (4,367.50)
Allocation / reimbursement of expenses paid
Financial Statements
IIFL Securities Limited 137.05 - 137.05
(124.95) - (124.95)
IIFL Management Services Limited 2.62 - 2.62
(5.22) - (5.22)
IIFL Facilities Services Limited 22.13 - 22.13
(17.29) - (17.29)
5paisa Capital Limited 0.42 - 0.42
- - -
IIFL Wealth Management Limited - - -
(4.15) - (4.15)
Allocation / reimbursement of expenses paid others
IIFL Facilities Services Limited 2.00 - 2.00
(3.17) - (3.17)
IIFL Insurance Brokers Limited 0.11 - 0.11
(0.57) - (0.57)
5paisa Capital Limited 3.96 - 3.96
(3.03) - (3.03)
5paisa P2P Limited 0.01 - 0.01
(0.03) - (0.03)
IIFL Management Services Limited 0.33 - 0.33
(0.43) - (0.43)
IIFL Securities Limited 22.87 - 22.87
(12.17) - (12.17)
Livlong Protection & Wellness Solutions Limited 0.19 - 0.19
(Formerly IIFL Corporate Services Limited) - - -
IIFL Wealth Management Limited - - -
(0.12) - (0.12)
Allocation / reimbursement of expenses received
IIFL Facilities Services Limited 0.87 - 0.87
(3.96) - (3.96)
IIFL Management Services Limited 0.26 - 0.26
(0.31) - (0.31)
5paisa Capital Limited 8.71 - 8.71
(4.57) - (4.57)
IIFL Securities Limited 31.46 - 31.46
(33.53) - (33.53)
Livlong Protection & Wellness Solutions Limited 0.09 - 0.09
(Formerly IIFL Corporate Services Limited) - - -
(` in Millions)
Nature of Transaction Other related Key Managerial Total
parties Personnel and their
relatives
IIFL Wealth Management Limited - - -
(0.18) - (0.18)
Allocation / reimbursement of expenses received others
IIFL Facilities Services Limited 1.02 - 1.02
(1.33) - (1.33)
IIFL Management Services Limited 0.04 - 0.04
(0.94) - (0.94)
IIFL Insurance Brokers Limited 0.70 - 0.70
(0.29) - (0.29)
IIFL Asset Management Limited - - -
(0.59) - (0.59)
India Infoline Foundation - - -
- - -
5paisa Capital Limited 1.30 - 1.30
(0.95) - (0.95)
5paisa P2P Limited - - -
(0.08) - (0.08)
IIFL Commodities Limited - - -
(0.63) - (0.63)
Livlong Protection & Wellness Solutions Limited 0.33 0.33
(Formerly IIFL Corporate Services Limited) - -
IIFL Securities Limited 10.10 - 10.10
(7.96) - (7.96)
Security Deposit Paid
IIFL Facilities Services Limited 0.43 - 0.43
- - -
Sale of investment
IIFL Wealth Finance Limited - - -
(2,011.10) - (2,011.10)
Non convertible debenture Issued
IIFL Facilities Services Limited 0.40 - 0.40
(1,000.00) - (1,000.00)
IIFL Securities Limited 500.00 - 500.00
(751.80) - (751.80)
IIFL Management Services Limited 943.00 - 943.00
- - -
Non convertible debenture Redeemed
IIFL Wealth Finance Limited - - -
(1,038.43) - (1,038.43)
IIFL Facilities Services Limited - - -
(222.11) - (222.11)
Investment in Non convertible debentures/Buyback
IIFL Management Services Limited 1,081.09 - 1,081.09
- - -
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
Statutory Reports
- - -
5paisa Capital Limited 1.75 - 1.75
(2.17) - (2.17)
5paisa P2P Limited - - -
(0.01) - (0.01)
IIFL Wealth Management Limited 40.25 - 40.25
Financial Statements
(10.90) - (10.90)
IIFL Management Services Limited - - -
(0.00) - (0.00)
IIFL Insurance Brokers Limited - - -
(0.36) - (0.36)
IIFL Securities Limited 12.61 - 12.61
(4.52) - (4.52)
Other receivable
IIFL Management Services Limited 0.06 - 0.06
- - -
IIFL Facilities Services Limited - - -
(1.87) - (1.87)
IIFL Insurance Brokers Limited 0.42 - 0.42
- - -
Livlong Protection & Wellness Solutions Limited 0.50 - 0.50
(Formerly IIFL Corporate Services Limited) - - -
India Infoline Foundation 54.90 - 54.90
- - -
IIFL Wealth Management Limited - - -
- - -
Security Deposit receivable
IIFL Facilities Services Limited 9.18 - 9.18
(8.75) - (8.75)
Outstanding non convertible debenture issued
IIFL Facilities Services Limited 0.01 - 0.01
- - -
IIFL Management Services Limited 40.00 - 40.00
(22.22) - (22.22)
IIFL Securities Limited 523.00 - 523.00
(40.90) - (40.90)
IIFL Wealth Finance Limited 267.00 - 267.00
(218.00) - (218.00)
(` in Millions)
Nature of Transaction Other related Key Managerial Total
parties Personnel and their
relatives
Interest accrued on outstanding non convertible debenture issued
IIFL Facilities Services Limited 0.00 - 0.00
- - -
IIFL Management Services Limited - -
(3.46) - (3.46)
IIFL Securities Limited 19.67 - 19.67
(1.91) - (1.91)
IIFL Wealth Finance Limited 19.67 - 19.67
- - -
Loan receivable
Mr. Shankar Subramanian - 2.02 2.02
- - -
Gratuity payable*
Mr.Nirmal Jain - 1.47 1.47
- (1.43) (1.43)
Leave encashment payable*
Mr.Nirmal Jain - 6.44 6.44
- (4.59) (4.59)
* Based on acturial valuation report
Note 42.1. Maturity analysis of assets and liabilities as at March 31, 2022
(` in Millions)
Sr. Particulars Within 12 After 12 Total
No months months
Assets
[1] Financial assets
(a) Cash and cash equivalents 62,116.40 - 62,116.40
(b) Bank balance other than (a) above 14,140.66 5,312.28 19,452.94
(c) Derivative financial instruments - 742.81 742.81
(d) Receivables
(i) Trade receivables 1,831.75 0.20 1,831.95
(ii) Other receivables 158.00 - 158.00
(e) Loans 149,408.85 187,520.09 336,928.94
(f) Investments 3.35 11,918.26 11,921.61
(g) Other financial assets 1,645.92 7,591.93 9,237.85
[2] Non-financial assets
(a) Current tax assets (net) 16.36 2,325.30 2,341.66
(b) Deferred tax assets (net) - 2,858.11 2,858.11
(c) Investment property - 2,951.94 2,951.94
(d) Property, plant and equipment - 1,505.22 1,505.22
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
(` in Millions)
Sr. Particulars Within 12 After 12 Total
No months months
(e) Capital work-in-progress 51.40 5.04 56.44
(f) Right to use assets - 3,275.30 3,275.30
(g) Other intangible assets - 21.12 21.12
Statutory Reports
(h) Other non-financial assets 1,033.47 2,492.48 3,525.95
(i) Assets held for sale 175.51 - 175.51
Total Assets 230,581.67 228,520.08 459,101.75
Liabilities and Equity
Liabilities
[1] Financial liabilities
Financial Statements
(a) Derivative financial instruments 62.26 1,581.65 1,643.91
(b) Payables
(I)Trade payables
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro 1,413.99 10.28 1,424.27
enterprises and small enterprises
(II) Other payables
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro 99.06 - 99.06
enterprises and small enterprises
(c) Finance lease obligation 754.26 2,852.52 3,606.78
(d) Debt securities 12,387.82 65,992.96 78,380.78
(e) Borrowings (other than debt securities) 80,638.30 172,551.98 253,190.28
(f) Subordinated liabilities 978.22 24,702.27 25,680.49
(g) Other financial liabilities 27,946.17 260.17 28,206.34
[2] Non-financial liabilities
(a) Current tax liabilities (net) 502.09 - 502.09
(b) Provisions 504.24 136.83 641.07
(c) Other non-financial liabilities 1,029.43 - 1,029.43
[3] Equity
(a) Equity share capital - 759.20 759.20
(b) Other equity 63,879.09 63,879.09
(c) Non-controlling interest - 58.96 58.96
Total Liabilities and Equity 126,315.84 332,785.91 459,101.75
Note 42.2. Maturity analysis of assets and liabilities as at March 31, 2021
(` in Millions)
Sr. Particulars Within 12 After 12 Total
No months months
Assets
[1] Financial assets
(a) Cash and cash equivalents 26,429.02 - 26,429.02
(b) Bank balance other than (a) above 18,373.21 3,038.33 21,411.54
(c) Derivative financial instruments - 503.87 503.87
(d) Receivables
(i) Trade receivables 1,922.77 - 1,922.77
(ii) Other receivables 5.10 - 5.10
(e) Loans 158,733.12 176,598.48 335,331.60
(f) Investments 4.23 311.48 315.71
(g) Other financial assets 1,923.40 2,980.30 4,903.70
[2] Non-financial assets
(a) Current tax assets (net) 16.13 2,612.24 2,628.37
(b) Deferred tax assets (net) - 3,111.43 3,111.43
(c) Investment property - 2,710.60 2,710.60
(d) Property, plant and equipment - 1,042.92 1,042.92
(e) Capital work-in-progress - 65.61 65.61
(f) Right to use assets - 2,985.99 2,985.99
(g) Other intangible assets - 11.45 11.45
(h) Other non-financial assets 463.21 2,686.80 3,150.01
(i) Assets held for sale 139.46 - 139.46
Total Assets 208,009.65 198,659.50 406,669.15
Liabilities and Equity
Liabilities
[1] Financial liabilities
(a) Derivative financial instruments 212.88 1,352.88 1,565.76
(b) Payables
(I) Trade payables
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro 1,093.91 - 1,093.91
enterprises and small enterprises
(II) Other payables
(i) total outstanding dues of micro enterprises and small - - -
enterprises
(ii) total outstanding dues of creditors other than micro - - -
enterprises and small enterprises
(c) Finance lease obligation 515.51 2,749.51 3,265.02
(d) Debt securities 32,601.10 50,702.40 83,303.50
(e) Borrowings (other than debt securities) 84,287.27 131,956.31 216,243.58
(f) Subordinated liabilities 5,292.78 17,726.50 23,019.28
(g) Other financial liabilities 20,864.65 49.12 20,913.77
[2] Non-financial liabilities
(a) Current tax liabilities (net) 509.61 514.78 1,024.39
(b) Provisions 374.84 120.91 495.75
(c) Other non-financial liabilities 1,809.95 - 1,809.95
[3] Equity
(a) Equity share capital - 757.68 757.68
(b) Other equity - 53,117.45 53,117.45
(c) Non-controlling interest - 59.11 59.11
Total Liabilities and Equity 147,562.50 259,106.65 406,669.15
Corporate Overview
AS AT AND FOR THE YEAR ENDED MARCH 31, 2022 (Contd.)
During the financial year 2021-2022, the Group has spent ` 127.38 Million (P.Y. ` 126.16 Million) out of the total amount of
` 187.68 Million (P.Y. ` 126.16 Million) resulting into shortall of ` 60.29 Million (P.Y. ` Nil). The shorfall amount pertains towards
the ongoing projects. The unspent amount has been transferred to a separate Bank account and will be spent during the
FY 2022-23.The aforementioned amount has been contributed to India Infoline Foundation.
NOTE 44. A
DDITIONAL INFORMATION PURSUANT TO PARA 2 OF GENERAL INSTRUCTIONS FOR THE PREPARATIONS OF
Statutory Reports
CONSOLIDATED FINANCIAL STATEMENTS:
Name of entity in the Group Net Assets i.e Total Share in profit or loss Share in other Share in total
Assets less Total comprehensive income comprehensive income
Liabilities
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated (` in consolidated (` in consolidated (` in consolidated (` in
net assets Million) profit or loss Million) other Million) total Million)
comprehensive comprehensive
income income
Financial Statements
IIFL Finance Limited 46.63% 30,165.72 56.42% 6,703.79 (107.04%) (98.63) 55.16% 6,605.16
Indian Subsidiaries
IIFL Home Finance Limited 37.88% 24,510.32 48.64% 5,779.95 216.02% 199.04 49.93% 5,978.99
Samasta Microfinance 15.35% 9,933.87 4.23% 502.46 (8.92%) (8.22) 4.13% 494.24
Limited
Indian Step down Subsidiary
IIHL Sales Limited 0.04% 28.38 0.23% 27.88 - - 0.23% 27.88
Trust with Residual Beneficial
Interest
Eminent Trust October 2019 0.00% - (4.19%) (497.70) - (4.16%) (497.70)
-
Eminent Trust November 0.00% - (5.36%) (637.45) - (5.32%) (637.45)
2019 -
Subtotal 99.91% 64,638.29 99.97% 11,878.93 100.05% 92.19 99.97% 11,971.12
Non Controlling interest in 0.09% 58.96 0.03% 3.57 (0.05%) (0.05) 0.03% 3.52
subsidiaries
Total 64,697.25 11,882.50 92.14 11,974.64
Place : Mumbai
Dated: April 28, 2022
* IIFL Finance Limited have holding of 74.41% in Samasta Microfinance Limited and 25.00% is been hold by IIFL Home
Finance Limited.
Note: Reporting period for the subsidiary is the same as holding company.
Registered office:
IIFL House, Sun Infotech Park, Road No. 16,
Plot No. B-23, MIDC, Thane Industrial Estate,
Wagle Estate, Thane - 400 604
Corporate office:
802, 8th Floor, Hubtown Solaris,
N. S. Phadke Marg, Vijay Nagar,
Andheri East, Mumbai - 400 069
Tel: +91 22 6788 1000
Email: shareholders@iifl.com | ir@iifl.com
Website: www.iifl.com
Digital propulsion
/indiainfoline
for financial inclusion
/IIFLCorporate
NOTICE
Notice is hereby given that the Twenty Seventh Annual and/or re-enactment(s) thereof, for the time being
General Meeting (“Meeting”) of the Members of IIFL Finance in force) and subject to the relevant provisions of
Limited (“the Company”) will be held on Friday, July 08, 2022 the Memorandum of Association and Articles of
at 2:00 p.m. (IST) through Video Conferencing (“VC”)/Other Association of the Company, SEBI (Listing Obligations
Audio Visual Means (“OAVM”) to transact the following and Disclosure Requirements) Regulations, 2015 as
businesses: amended from time to time and SEBI (Issue and Listing
of Non-Convertible Securities) Regulations, 2021 as
ORDINARY BUSINESS: amended from time to time, the Master Direction-
1. To consider and adopt: Non-Banking Financial Company-Systemically
Important Non-Deposit taking Company and Deposit
(a) T
he audited standalone financial statement(s) of
taking Company (Reserve Bank) Directions, 2016, as
the Company for the Financial Year ended March
amended and other applicable regulations as may be
31, 2022, together with the reports of the Board of amended from time to time to the extent applicable,
Directors and Auditors thereon; and approval of the Members be and is hereby accorded
(b) T
he audited consolidated financial statement(s) to the Board of Directors of the Company (hereinafter
of the Company for the Financial Year ended referred to as “the Board”, which term shall be
March 31, 2022, together with Auditors report deemed to include any Committee which the Board
thereon. may have constituted or hereinafter constitute to
2.
To appoint a Director in place of Mr. Chandran exercise its powers including the powers conferred
Ratnaswami (DIN: 00109215), who retires by rotation by this resolution) to offer or invite subscriptions for
and being eligible, offers himself for re-appointment Non-Convertible Debentures (“NCDs”) including but not
and in this regard, to consider and, if thought fit, to limited to Secured/Unsecured/Listed/Unlisted/ Rated/
pass with or without modification(s), the following Unrated/Non-Convertible/Market Linked/Subordinate
Debt/Perpetual Debentures/Fixed Maturity Debentures,
resolution as an Ordinary Resolution:
in one or more series/tranches, up to ` 100,000 Million
“RESOLVED THAT Mr. Chandran Ratnaswami
(Rupee One Lakh Million Only) on a private placement
(DIN: 00109215), who retires by rotation from the Board basis, to such eligible persons and on such terms and
of Directors pursuant to the provisions of Section 152 conditions as the Board of Directors of the Company
of the Companies Act, 2013 and Articles of Association may, from time to time, determine and consider proper
of the Company, and being eligible, offers himself for and more beneficial to the Company including, without
re-appointment, be and is hereby re-appointed as the limitation, as to when the said NCDs are to be issued,
Director of the Company.” the consideration for the issue, mode of payment,
coupon rate, redemption period, utilization of the
SPECIAL BUSINESS: issue proceeds and all matters connected therewith or
3.
To approve an offer or invitation to subscribe to incidental thereto;
non-convertible debentures to be issued on a private RESOLVED FURTHER THAT the Board of Directors of
placement basis and in this regard, to consider and, if the Company and/or its duly constituted committee be
thought fit, to pass with or without modification(s), the and is hereby authorized to do all acts, deeds, things
following resolution as a Special Resolution: and to take all such steps as may be necessary, proper
“RESOLVED THAT pursuant to the provisions of
or expedient to give effect to this resolution.”
Section 42, 71 and other applicable provisions, if any, 4.
To appoint Mr. Nirmal Jain (DIN: 00010535) as a
of the Companies Act, 2013 read with the Companies Managing Director of the Company and in this regard,
(Prospectus and Allotment of Securities) Rules, 2014 to consider and, if thought fit, to pass with or without
and the Companies (Share Capital and Debentures) modification(s) the following resolution as an Ordinary
Rules, 2014 (including any statutory modification(s) Resolution:
Sneha Patwardhan
Dated: June 09, 2022 Company Secretary
Place: Mumbai ACS - 23266
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e) Increment: Board/NRC can determine the remuneration The Board accordingly recommends the Ordinary
on an annual basis subject to increment not exceeding Resolution set out at Item No. 4 of the Notice for approval
25% p.a. of basic salary, allowances and perquisites. of the Members.
f)
Commission: He shall be paid commission as Except Mr. Nirmal Jain and his relatives, none of the other
permissible under the Companies Act, 2013 (“the Directors and Key Managerial Personnel of the Company
Act”) and as determined by the Board/NRC from time and their respective relatives are in any way concerned or
to time. In addition, he will be eligible for contribution interested, financially or otherwise, in the resolution set out
to provident funds, gratuity and superannuation and at Item No. 4.
leave encashment as per the rules of the Company. The other details of Mr. Nirmal Jain in terms of Regulation
g) Other terms: He shall not be paid any sitting fees or 36(3) of the Listing Regulations and Secretarial Standard 2
any other salary for attending Meetings of the Board of are annexed as Annexure A to this Notice.
Directors or Committees thereof.
Item No. 5
In case of absence or inadequacy of profit in any
As recommended and approved by the Nomination and
financial year, the aforesaid remuneration and
Remuneration Committee (“NRC”) and the Board of
perquisites shall be paid to Mr. Nirmal Jain as minimum
Directors, the Members had at its 24th Annual General
remuneration, subject to provisions of the Act.
Meeting held on September 30, 2019 approved the
h) Termination of Employment: appointment of Mr. R Venkataraman as Managing Director
This employment shall be deemed to be terminated of the Company for a period of 5 years w.e.f. April 23, 2020
on the occurrence of death, on expiration of tenure, till April 22, 2025.
permanent disability or on resignation, the notice The NRC and the Board of Directors of the Company, at their
period will be as per the Company’s Policy. meeting held on March 23, 2022 recommended/approved,
In the event of termination for any of the reasons respectively, change in designation of Mr. R Venkataraman
specified above, he or his Nominee(s) shall be entitled from Managing Director to Joint Managing Director w.e.f.
to receive as a lump sum severance payment, a sum April 01, 2022 upto the remaining tenure i.e. April 22, 2025,
equal to 5 times the annual salary including allowances subject to the approval of the Members.
and perquisites Mr. R Venkataraman is also a Managing Director of IIFL
The terms and conditions of the said appointment may be Securities Limited (“IIFL Securities”) an IIFL Group Company.
altered and varied from time to time by the Board/NRC as it He is drawing his entire remuneration from IIFL Securities
may, in its discretion, deem fit. and not drawing any remuneration from the Company.
5. 5Paisa Capital Limited Mr. Nirmal Jain and Mr. R Venkataraman are the Promoters of 5Paisa
Capital Limited and holds along with their relatives & persons acting in
concert 88,10,698 equity shares i.e. 29.95% in 5Paisa Capital Limited.
The details required as under the Listing Regulations and SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2021/662 dated
November 22, 2021 in connection with the Material Related Party Transactions is attached in Annexure B.
The Board accordingly recommends the ordinary resolutions set out at Item Nos. 6, 7, 8, 9 & 10 of this Notice for approval of
the Members.
Except the above Directors and their relatives, none of the Directors/Key Managerial Personnel/their relatives are, in any way,
concerned or interested, financially or otherwise in the Ordinary Resolutions set out at Item Nos. 6, 7, 8, 9 & 10, respectively.
Sneha Patwardhan
Dated: June 09, 2022 Company Secretary
Place: Mumbai ACS - 23266
Name of the Related Party IIFL Samasta IIFL Facilities IIFL IIFL Securities 5Paisa Capital
Finance Services Management Limited Limited
Limited Limited Services
Limited
Nature of Relationship Subsidiary Other related Other related Other related Other related
party party party party
Nature of concern or interest of the related Financial Financial Financial Financial Financial
party (financial or otherwise)
I. Value and Type of Transaction: Aggregate value of fresh transactions between IIFL Finance limited and its related
parties is as per details mentioned herein below:
Type of transaction Transaction Limits
IIFL Samasta IIFL Facilities IIFL IIFL Securities 5Paisa Capital
Finance Services Management Limited Limited
Limited Limited Services
Limited
Inter-corporate deposits 'ICD'
1. ICD given
1 a) Aggregate ICD given INR 15,000 INR 15,000 INR 15,000 INR 15,000 INR 15,000
Million Million Million Million Million
1 b) Maximum outstanding (ICD given) INR 7,000 INR 7,000 INR 7,000 INR 7,000 INR 7,000
Million Million Million Million Million
2 ICD taken
2 a) Aggregate ICD taken INR 15,000 INR 15,000 INR 15,000 INR 15,000 INR 15,000
Million Million Million Million Million
2 b) Maximum outstanding (ICD taken) INR 7,000 INR 7,000 INR 7,000 INR 7,000 INR 7,000
Million Million Million Million Million
3) Assignment/Securitisation of Loans INR 5,000 - - - -
Million
4) Investment in debentures INR 7,000 INR 7,000 INR 7,000 INR 7,000 INR 7,000
Million Million Million Million Million
5) Issue of debentures INR 7,000 INR 7,000 INR 7,000 INR 7,000 INR 7,000
Million Million Million Million Million
6) Purchase of securities (other than Shares) INR 7,000 INR 7,000 INR 7,000 INR 7,000 INR 7,000
Million Million Million Million Million
7) Sale of securities (other than Shares) INR 7,000 INR 7,000 INR 7,000 INR 7,000 INR 7,000
Million Million Million Million Million
8) Arrangement of Allocation / Reimbursement - INR 80 Million INR 80 Million INR 200 Million INR 50 Million
of expenses to
9) Allocation/Reimbursement of expenses - INR 100 MillionINR 100 MillionINR 150 MillionINR 100 Million
from
10) Rental Agreement - INR 50 Million INR 10 Million - -
11) Share Broker Agreement - - - INR 10 Million -
12) Any other transactions INR 1,000 INR 1,000 INR 1,000 INR 1,000 INR 1,000
Million Million Million Million Million
II. Value of transaction as a percentage of Company’s annual consolidated turnover and value of transaction as a
percentage of subsidiary's annual turnover (based on turnover of Financial Year 2021-22)
Nature of transactions % of % of Company's annual consolidated turnover
subsidiary's
annual
turnover
IIFL Samasta IIFL Samasta IIFL Facilities IIFL IIFL Securities 5Paisa Capital
Finance Finance Services Management Limited Limited
Limited Limited Limited Services
Limited
1 a) Aggregate ICD given 152.3% 21.4% 21.4% 21.4% 21.4% 21.4%
1 b) Maximum outstanding 71.1% 10.0% 10.0% 10.0% 10.0% 10.0%
(ICD given)
2 a) Aggregate ICD taken 71.1% 21.4% 21.4% 21.4% 21.4% 21.4%
2 b) Maximum outstanding 71.1% 10.0% 10.0% 10.0% 10.0% 10.0%
(ICD taken)
3) Assignment/Securitisation 50.8% 7.1%
of Loans - - - -
4) Investment in debentures 71.1% 10.0% 10.0% 10.0% 10.0% 10.0%
5) Issue of debentures 71.1% 10.0% 10.0% 10.0% 10.0% 10.0%
6) Purchase of securities 71.1% 10.0% 10.0% 10.0% 10.0% 10.0%
(other than Shares)
7) Sale of securities (other 71.1% 10.0% 10.0% 10.0% 10.0% 10.0%
than Shares)
8) Arrangement of Allocation/ 0.1% 0.1% 0.3% 0.1%
Reimbursement of - -
expenses to
9) Allocation/Reimbursement 0.1% 0.1% 0.2% 0.1%
of expenses from - -
10) Rental Agreement 0.1% 0.01%
- - - -
11) Share Broker Agreement 0.01%
- - - - -
12) Any other transactions 10.2% 1.4% 1.4% 1.4% 1.4% 1.4%
III. Type, Material terms including Tenure, Rate of Interest, repayment, security, other covenants of the Transactions, source of funds, purpose of use of
funds and Justification as to why the related party transaction is in the interest of the listed entity.
Type of transaction Tenure Interest Security Repayment Source of Purpose of Indebtness Justification as to
Rate Funds use of Funds incurred for why the related party
subscription of transaction is in the
securities interest of the listed
entity
1. Inter-corporate Upto 1 year SBI 1 year Unsecured Bullet From own Working Not applicable. These transactions
deposits given MCLR repayment capital Capital, The Company are regular business
+ Credit on maturity including Treasury ensures that the transactions of the
spread of or payable/ retained management further investment Company and carried
2. Inter-corporate 250 to 350 receivable earnings. and general of surplus funds out at arm's length and
deposits taken basis points. on demand. corporate is being made out in accordance with the
purpose. of the free float of applicable laws.
available funds.
3. Assignment/ a) Contractual The pricing Not applicable The Company may
Securitisation of maturity would be undertake to sell,
Loans of the pool based on assign assets including
a) Assignment of which may be prevailing receivables/ book
loan receivables assigned rates for debts of the Company
assignment in favour of NBFCs/
b) Service Fee for deals with Financial institutions
assignment of b) As long Banks. in accordance with RBI
loan receivables as pool regulations and policies
receivables of the Company.
are
outstanding
4) Investment in Upto 10 years The pricing May be Secured Not From own Working Not applicable. These transactions will
debentures would be or Unsecured applicable capital Capital, The Company be carried out as per
based including Treasury ensures that the the prevailing market
5) Issue of on the retained management further investment price/fair value of
debentures prevailing earnings. and general of surplus funds securities from time to
6) Purchase of market corporate is being made out time as per competitive
securities (other rates/ purpose. of the free float of prices.
than Shares) conditions available funds.
or as per the
7) Sale of securities agreement.
(other than
Shares)
IV. Material terms and Justification as to why the related party transaction is in the interest of the listed entity for other transactions
8) Arrangement Arrangement : Common Overhead expenses incurred by any Company such as technology, infrastructure, legal, advertisement, salaries,
of Allocation/ allocation/ reminbursement in the nature of transfer of Gratuity, Leave encashment, ESOP, Statutory payment or such other activities etc
Reimbursement is payable by/to IIFL Finance limited.
of expenses to
9) Allocation/ Metholdology: Cost allocation for common office overhead expenses is allocated based on time and resource spent on the business
Reimbursement and utilizing /consuming various services including infrastructure. Reimbursement shall be at actual as per the amount spent by the
of expenses respective Companies.
from
10) Rental Agreement - The company shall pay rent to IIFL Facilities Services Limited /IIFL Management Services Limited for premises occupied by it.
Availing premises on Pricing: The rental charge shall be at the prevailing market rates.
rental basis
11) Share Broker The company shall enter into an arrangement with IIFL Securities Limited, who is a SEBI registered intermediary for doing Capital Market
Agreement Transactions through its platform acting as a broker to the Company.
Pricing: At arm’s length basis at prevailing rate charged to other clients by IIFL Securities Limited.